Tika Primandari, Jakarta – Deputy Foreign Minister Abdurrahman Mohammad Fachir denied that the Foreign Ministry has imposed a ban against foreign journalists from entering Papua to cover human rights cases.

According to Fachir, journalists can enter Papua regardless of reporting material. "There is no ban," said Fachir on Wednesday, January 13, 2016.

Fachir said that foreign journalists will be treated like state guest. For example, the journalists will be questioned about their purpose of visit and whom they will meet during their stay in Indonesia. "But there is no supervision or ban," said Fachir.

Previously, French journalists Cyril Payen was barred from entering Papua after his documentary titled 'Forgotten War of the Papua' was broadcasted on October 18, 2015. Later on November 2015, Payen was declared as a persona non grata and was forbidden to enter West Papua although President Joko Widodo had already revoked the ban on May 2015.

Last year, two French journalists, Thomas Dandois and Valentine Bourrat, were sentenced to prison after they were caught trying to make a documentary about separatist movement in West Papua.

Source: http://en.tempo.co/read/news/2016/01/13/055735674/Ministry-Denies-Ban-Towards-Foreign-Journalists-in-West-Papua

Indonesia urged to lift ban on French journalist after Papua documentary

Jakarta Globe - January 12, 2016

Edo Karensa, Jakarta – Media freedom organization Reporters Without Borders has condemned the Indonesian government for imposing a ban on a French journalist after releasing a documentary on the conflict in Papua.

The group called on President Joko Widodo to honor his promise of opening up the restive province to foreign media.

Bangkok-based reporter Cyril Payen was able to visit Papua in mid-2015 after obtaining all the necessary authorization. But the French Ambassador in Jakarta was summoned to the Indonesian Foreign Ministry after Payen's documentary, "Forgotten War of the Papuas," was broadcast by France 24 on Oct. 18, 2015.

In November, Indonesian officials in Bangkok notified Payen he was now "persona non grata" in Indonesia. Last week, he was told his request for a visa to make another documentary had been rejected.

"We firmly condemn this flagrant violation of media freedom and this discrimination against an independent journalist who has committed no crime," Benjamin Ismaïl, head of RSF's Asia-Pacific desk, wrote in a statement.

Ismail said the move against Payen demonstrates the election promise of President Joko Widodo to open up Papua to foreign journalists was deceptive.

"We urge him to keep this promise and to let foreign journalists do their job without having to fear surveillance, censorship or reprisals by the authorities," he added.

Foreign journalists have long complained of the lengthy and complicated process to obtain permits to report on Papua, the only place in the country where such permission is required.

Permit issuance is rare with each request reviewed by over a dozen government agencies, including the State Intelligence Agency (BIN) and the Indonesian military.

Indonesian ranked 138th from 180 countries in the 2015 Reporters Without Borders press freedom index with a rating of 40.99, behind Thailand, Timor Leste and Brunei.

Source: http://jakartaglobe.beritasatu.com/news/indonesia-urged-lift-ban-french-journalist-papua-documentary/

Extra police sent to Papua

Radio New Zealand International - January 12, 2016

Reports from Indonesia's Papua province say extra police have been deployed to a part of Puncak Jaya regency where three officers were killed in an attack late last month.

Tabloid Jubi reports that about 150 police personnel were deployed to hunt for the perpetrators of the attack on the Sinak Police Headquarters.

The Papua Police Chief, General Paulus Waterpauw has indicated that police believe they know who the suspects are and have homed in on their communities, searching also for stolen ammunition. It's not clear whether the suspects have been found yet.

However local residents say that in their sweep operation, police have burnt a number of houses in up to six villages in the area.

Meanwhile, a large number of frightened villagers in the area have fled from security forces into the bush, according to the United Liberation Movement for West Papua.

The ULMWP claims at least two people have been killed in the police response which has also involved killing of livestock and harassment of innocent villagers.

The Papuan political organisation says the situation in Puncak Jaya has developed into a serious armed conflict, and has urged Indonesia's government to stop sending troops there.

Source: http://www.radionz.co.nz/international/pacific-news/293852/extra-police-sent-to-papua

The dialogue have to be conducted on equal footing: WPNCL

Tabloid JUBI - January 12, 2016

Victor Mambor, Jayapura, Jubi – Vanuatu based West Papua National Coalition for Liberation Acting Chairman Andy Ayamiseba has welcomed the latest initiative by the President of the Republic of Indonesia, Joko Widodo calling for dialogue or negotiations with all sides of the conflict which has lasted to the present day in Papua.

During his working visit to Papua, on 30 December 2015, the President of the Republic of Indonesia, Ir. Joko Widodo has expressed a desire to hold a dialogue (Negotiations) with all sides of the conflict which has lasted up to the present day in Papua.

"The West Papua National Coalition for Liberation (WPNCL) as a political umbrella group which brings together organizations that reject the Indonesian occupation of Papua, has welcomed the initiative of the Indonesian Government. This offer is a democratic and dignified way in resolving the conflict which has lasted up to the present day in Papua. The dialogue have to be conducted on equal footing" said Andy Ayamiseba to Jubi on Monday (11/1/2016).

He added, regarding to the initiative presented by the President of the Republic of Indonesia, the position of the WPNCL as one of the 3 stakeholders of the ULMWP regarding possible negotiations is as follows:

1. The negotiations shall occur between the Indonesian Government and the People of West Papua who reject the occupation of Indonesia over Papua.

2. The negotiations have to be conducted on equal footing between the Indonesian government and the People of West Papua.

3. The negotiations have to be mediated by a third-party State or an interregional organization, be it an international one or a regional one.

4. The proposed Agenda of the negotiations should not be limited to development issues only, but also take account of the root causes of the problem of the conflict in West Papua which include aspects of History, Politics, Human Rights and the Environment.

5. The Negotiations should take place at a neutral venue which will not present a threat to the safety of the negotiators.

6. Before the negotiations take place, Papua must be opened for access to international humanitarian agencies, foreign journalists, as well as the visit of a fact-finding team of the Pacific Islands Forum. The Indonesian Government should withdraw all non-organic troops stationed at outposts in villages.

7. The result of the agreement reached in the negotiations shall be implemented and supervised by a Board which shall be appointed to monitor and evaluate the process on a regular basis.

Source: http://tabloidjubi.com/eng/the-dialogue-have-to-be-conducted-on-equal-footing-wpncl/

MSG Chair calls for Forum mission to Papua

Radio New Zealand International - January 11, 2016

The chairperson of the Melanesian Spearhead Group Manasseh Sogavare is calling on Indonesia to commission a fact finding mission to discuss the situation in West Papua with members of the Pacific Islands Forum.

The Solomon Islands prime minister made the call as he welcomed what he described as Indonesia's change of strategy on West Papua and its approach towards West Papuan separatists.

Alluding to last year's release of high-profile Papuan freedom fighter Filep Karma, the Solomon Islands prime minister says the decision to release Mr Karma is encouraging and speaks well of the Indonesian president Joko Widodo's policies to bring peace to Papua.

Mr Sogavare however says Jokowi's three-pronged approach of welfare, security and dialogue must be consultative to avoid simply paying lip service to the indigenous people of West Papua.

He says the MSG remains committed to a spirit of positive and constructive dialogue to promote welfare and bring peace and security to West Papua.

Source: http://www.radionz.co.nz/international/pacific-news/293861/msg-chair-calls-for-forum-mission-to-papua

Where is the justice for West Papuans?

Tabloid JUBI - January 9, 2016

Victor Mamborm, Jayapura, Jubi – About 150 police personnel were deployed to hunt for the perpetrators of the attack on the Sinak Police Headquarters at Puncak Jaya Regency, Papua, which killed three officers. No one has been arrested as of Thursday.

The operation to chase the rebel group believed to be behind the attack on 28 December was led by Puncak Jaya Police Chief, Adjuct Senior Police Commissionaire Marselis.

Papua Police Spokesperson Senior Police Commissionaire Patridge Renwarin said the police identified two men suspected as the attackers.

"One was identified as the attacker while another one was identified to help open the rear door. Both have not arrested yet," Renwarin told BeritaBenar on Thursday and added the sweeping operation was executed in three villages, namely Nigilome, Pamebut and Weni at Sinak Sub-district.

Papua Police Chief, the Inspector General Paulus Waterpauw said during their operation, the Police managed to find 19 bullets of 7.62×51 mm caliber, 7 ammunitions of AK 47, 44 ammunitions of 7.62×39 mm caliber, and 59 ammunitions of SS1 5.56×45 caliber.

The ammunitions were founded when the Police inspecting the houses of two Sinak residents named Kalenak Murib and Iris Murib, he said without explaining whether both were arrested or not.

Houses burned

An Agengen villager said due to the Police's operation, some residents' houses were burned and a man was shot dead.

"The security personnel who conducted the operation shot down a man suspected to be a member of Free Papua Movement on 3 January. The victim was Gombane Telenggen's brother," said a resident who declined to be named due to security reasons. Gombane Telenggen is one of 25 persons suspected attackers on Sinak Police Headquarters.

He added the Police also burned a kunume (man's house) and some honai (houses). "Four honai were burned in Agenggen Village, while in Pamebut, the entire residents' honai were burned down, except a church," he said to jubi on Wednesday, 6 January.

Fire over the residents' honai was also confirmed by a Papua youth leader, Natan Tebay. Even he said the Police scrutinized six villages in order to find the attackers on Sinak Police Headquarters.

"I got information from Sinak people about the security personnel coming to Gigobak, Agenggen, Cambera, Pamebut, Nigilome and Weni villages to find the rebel. Several households lost their houses because being fired during the raid," said Tebay.

According to him, the residents of those villages do not know anything about the guns seizure and the shooting over the police officers at Sinak Police Headquarters.

"People should not receive the impact of this raid," he said. When being confirmed, Papua Police Spokesperson admitted he received information about a citizen shot for suspected member of Free Papua Movement, but after checking, it was not true.

According to him, searching the victim, the Police and people were not found the body. He also denied the accusation said the Police burned houses during the raid.

"It's not true. No houses were burned. People have also agreed that anyone who caught hiding ammunitions or guns would be penalized. The regent would give them ransom to those who return it," said Renwarin.

Where is the justice for West Papuans?

Paniai Customary Council, John Gobai, regretted the Police's operation that caused the loss of people's houses in Sinak. He said the security personnel are often not professional in doing operation that resulting victims among civilians.

"It has repeatedly happened all the time. In 2013, the similar thing was also happened in Paniai. Every passing vehicle would be raided. As a result, the situation in Paniai became disturbed," he said.

"In Pugo Village, all people were left at that time because of fears. Their houses were burned for the reason that the security forces hunted the rebel group that they called the National Liberation Army-Papua Free Movement who involved in the gunfire with them at Waidide, Pugo Village, Paniai Timur Sub-district," added Gobay.

He also questioned the Police for quickly appointed someone as Sinak Police's attacker.

"Just within 1 x 24 hours after the attack on Sinak Police Headquarters, the Police personnel were directly deployed to search the perpetrators. Papua Police Chief even came directly to Sinak. And the Indonesian Police Chief accused Benny Wenda as the actor behind the attack," he asserted.

"But what about the shooting over four high school students in Paniai at the early December 2014, after 1 x 365 days it had not been revealed yet. In fact the Police have no dare to suspect. Where is the justice for us, the indigenous Papuan?" Gobay questioned.

'Jokowi concerns on investment only'

The security forces' repressive acts and the slow resolution to the cases of violence towards the indigenous Papuan is also highlighted by the Human Rights Working Group (HRWG).

In the press release received by Berita Benar in Papua, the Director of HRWG Rafendi Jamin accused the government under the President Joko Widodo to be more concerned on investment than the settlement of the cases of violence and human rights violations in Papua.

He said Widodo has shown the chronic fear in addressing the conflict and violence in Papua, so tends to respond it as the handling of the issue of separatism.

"It's clearly reflected through repressive and security approaches that are still done excessively by the government. These approaches often sacrifice the civil society who actually does not understand about the real issues that's going on," he said. (Victor Mambor/rom)

Source: http://tabloidjubi.com/eng/where-is-the-justice-for-west-papuan/

Human rights & justice

Government told to make realistic plan to probe past violence

Jakarta Post - January 12, 2016

Fedina S. Sundaryani, Jakarta – The Commission for Missing Persons and Victims of Violence (Kontras) has lambasted the government's claims that it will resolve past human rights abuse cases by the end of the year.

Kontras coordinator Haris Azhar said on Saturday that the government had only made promises last year to resolve the cases, without any visible efforts to do so.

"The plans made by the government have only been circling around from the President's mouth to [the ears of] officials," he said, adding that President Joko "Jokowi" Widodo himself did not have a clear concept of how to resolve the issues.

"[The government] is not transparent, consultative. It does not have clear perimeters and does not resolve any problems."

On Friday, Jokowi said that all major past cases of violent human rights abuses would be resolved by the end of the year. "Everything will be resolved this year," he said at the State Palace, as reported by kompas.com.

Jokowi explained that the case resolutions would be handled by the Office of the Coordinating Political, Legal and Security Affairs Minister, the Attorney General's Office (AGO), the National Police and the National Intelligence Agency (BIN). He added that he was positive that the government would be able to resolve the past issues since the national economy was stable. "We will not look at [the cases'] year. What is positive is that it will be resolved this year. They will be resolved one by one."

Earlier last year, the government announced that it would form a human rights task force consisting of the aforementioned institutions, alongside the Indonesian Military (TNI) and the National Commission on Human Rights (Komnas HAM), which would try to resolve the rights issues via non-judicial mechanisms because of the complex technical problems involved, such as gathering evidence.

The government said that it had committed to resolving seven past human rights violations; the 1989 Talangsari incident in Central Lampung, the 2001 and 2003 Wamena and Wasior incidents in Papua, various kidnappings and unresolved shootings in the 1980s, the 1965 communist purge and the 1998 May riots.

Although the leaders of the relevant institutions had met with each other three times last year, the meetings were halted after former coordinating political, legal and security affairs minister Tedjo Edhy Purdjiatno was replaced in August by the current minister, Luhut Pandjaitan.

Haris explained that resolving the past cases was urgent as it would indicate the government's commitment to victims and their families in the cases. "I am worried that this will just be a process that will fail to bring justice, with no legal consequences," he said.

Haris warned that the government should be careful because they may lose sight of the truth in their rush to resolve the issues. "[The government] cannot just decide that it will be resolved in six months. This is not a soccer match that is limited by time and whatever results [in that time] is accepted," he said.

According to the Setara Institute for Democracy and Peace, the government scored 1.72 out of seven in 2015 for its efforts to settle past human rights abuses, with seven being the best score. In 2014, the government received a score of 1.51.

Source: http://www.thejakartapost.com/news/2016/01/12/govt-told-make-realistic-plan-probe-past-violence.html

Jokowi commits to settling past rights cases this year

Jakarta Post - January 9, 2016

Ayomi Amindoni, Jakarta – President Joko "Jokowi" Widodo has expressed a commitment to resolve a number of past human rights violations by the end of this year.

In a dinner with journalists on Friday night, the President said he had ordered the coordinating politics, legal and security affairs minister, the attorney general, the National Police chief and the head of the National Intelligence Agency (BIN) to seek comprehensive resolutions to unresolved cases of human rights violations.

The President himself did not mention which human rights violations in particular would be addressed.

In a move to show that he is different from his predecessors, Jokowi has repeatedly reiterated his commitment to settling past rights abuses. Nevertheless, he has been criticized for his poor performance on human rights, which is far from his election campaign promise to improve their protection in Indonesia.

Several human rights violations occurred in 2015: Christian-Muslim strife in Tolikara, the burning and demolition of Christian churches in Aceh Singkil, the fatal beating of an anti-mining activist in Lumajang, the creation of internal Shia and Ahmadiyah refugees because of intra-Muslim religious intolerance and the criminalization of freedom of speech and expression are among the cases.

Meanwhile, older unresolved rights cases include a 1989 massacre in Talangsari, Lampung, the forced disappearance of anti-Soeharto activists in 1997 and 1998, the 1998 Trisakti University shootings, the Semanggi I and Semanggi II student shootings in 1998 and 1999, the mysterious killings of alleged criminals in the 1980s, the communist purges of 1965 and various abuses that took place in Wasior and Wamena in Papua in 2001 and 2003, respectively. (bbn)

Source: http://www.thejakartapost.com/news/2016/01/09/jokowi-commits-settling-past-rights-cases-year.html

Women's rights

West Kalimantan women get environmental, legal training

Jakarta Post - January 12, 2016

Severianus Endi, Pontianak – A member of a women's group, Kristina, 33, sat at the side of the room during a recent seminar at a hotel in Pontianak, breast-feeding her baby.

Along with her colleagues, Kristina has attended a number of meetings held in villages by NGO Pena Group in recent years, with topics of discussion ranging from legal and environmental management issues to learning about social changes.

"Initially, we were hesitant because women are often sidelined, but now we voice our thoughts boldly," said Kristina, a resident of Nanga Mau village in remote Sintang regency, West Kalimantan. To reach Pontianak, the provincial capital, she has to travel all night.

Kristina was among 30 women from remote villages in five regencies in West Kalimantan who gathered at Hotel Kapuas Dharma to discuss legal and environmental issues arising from the spread of palm oil plantations in the province.

The women, mostly housewives, have since 2013 been advised by the Pena Group, principally on how to adapt to the spread of plantations. During the meeting, Pena Group also launched a book on its field research entitled Women within the Palm Oil Circle.

Pena Group executive director Rinto said few in-depth studies had been conducted regarding the role of women in society.

"Women's roles are often disregarded, especially with regard to oil palm corporations, whose presence affects society, the economy and the environment. Women are inclined to be more involved in the domestic than the public sector. We are trying to encourage them to be more involved," Rinto said.

"Clearly we refuse to see the whole area turned into oil palm plantations, because the community would no longer have the freedom to manage its resources in accordance with local wisdom. Empowering the community to be able to withstand the situation is vital," said Indonesian Forum for the Environment (Walhi) director Anton P. Wijaya.

To boost their capacities, Pena Group provides legal training to women, with some serving two-week apprenticeships at the Pontianak District Court to get the feeling of court proceedings and legal matters.

West Kalimantan Women's Empowerment, Child Protection and Family Planning Agency head Anna Veridiana Iman Kalis expressed hope that women would be encouraged to fight for an equal role with men.

"As an illustration, at the West Kalimantan provincial administration, of the 52 echelon II officials, only four are women, including me. I hope housewives will be able to achieve what men achieve, though we mustn't forget our nature," said Veridiana.

Researcher DO Srikujam said the survey also compared the condition of women before and after the arrival of oil palm corporations in villages. Before plantations are set up, women are able freely to benefit from the forest bounty. However, after they arrive, land changes hands to investors, and villagers no longer have access to the forest.

"Women also tend to consume more after corporations arrive as they are more used to having cash. Some of them also become minor employees at the companies," said Srikujam.

The province, Anton added, was currently home to 1.1 million hectares of oil palm plantations, while a further 5.3 million is licensed to become plantations.

Source: http://www.thejakartapost.com/news/2016/01/12/w-kalimantan-women-get-environmental-legal-training.html

Sexual & domestic violence

Police arrest couple for parading schoolgirl in nude

Jakarta Post - January 15, 2016

Ganug Nugroho Adi, Sragen, Central Java – The Sragen Police in Central Java have arrested Sukamto, 52, and his wife, Wiji Lestari, 47, for forcing a 15-year-old girl, identified as RS, to walk around their neighborhood nude after accusing the junior high school student of stealing sandals and clothes from the family.

Sragen Police chief Adj. Sr. Comr. Ari Wibowo said on Thursday that the police had nabbed the couple following up on a report from RS' family. "We arrested the couple today [Thursday]. We promptly named them suspects as we already have enough witnesses and evidence," Ari said.

The incident, which took place on Tuesday in Mojorejo subdistrict, Karangmalang, Sragen, started when the couple accused RS of stealing sandals and clothes from their laundry.

RS' brother, Paryono, said the couple, who were also his neighbors, had come over to his house and had expressed their anger by spitting out rough words.

The couple then entered the house, seeking the stolen sandals and clothes. They dragged RS out of the house and forced her to take off her clothes until she was nude. The couple put the stolen cloths around the girl's neck. Sukamto then forced RS to walk around the neighborhood nude.

"We couldn't do anything as we were afraid. The Sukamtos are known to be rude and violent people," Paryono said.

RS walked for about 1 kilometer before several locals finally covered her body with clothes and took her into a house. They also told Sukamto and his wife to stop taking the law into their own hands.

Ari, meanwhile, said the police had received two reports in the case: on pornography and on theft. He said both reports would be followed up on.

In regards to RS' theft case, Ari said that because the suspect was a minor, the case would be settled by sending the girl to her parents. Moreover, the theft case was just a light criminal act.

Ari said that the couple's case, on the other hand, was a serious criminal act. Both could be charged with the 2008 Pornography Law or the 2014 Child Protection Law, which carries a maximum penalty of 10 years in prison.

Ari said the police were still considering which articles to charge the suspects with. Some possible charges could include articles on sexual violence, child protection and pornography.

RS' father, Supriyanto, 47, said he was shocked by what his daughter had experienced. When the incident took place he was out of the regency working as a manual laborer. RS' mother, Marsi, 45, meanwhile, has been paralyzed for years because of an accident and is forced to stay in a wheelchair.

Last month, the National Commission for Child Protection (Komnas PA) said that the number of child-abuse cases in the country had reached an all-time high throughout 2015. The commission called on the government to pay more attention to the issue.

The commission, which operates under the purview of the Social Affairs Ministry, recorded 2,898 reports of violence against children nationwide last year, with 59.3 percent of the reports involving sexual abuse. The number marked a rise from the 2,737 cases recorded in 2014.

Source: http://www.thejakartapost.com/news/2016/01/15/police-arrest-couple-parading-schoolgirl-nude.html

Labour & migrant workers

PT Amtek worker strike continues, expansion halted

Jakarta Post - January 15, 2016

Fadli, Batam – A strike by hundreds of workers from PT Amtek Engineering, an Apple subcontractor, has continued into its fourth day with no sign of ending, leading the company to reportedly cancel the US$20 million expansion of its factory in Batam.

Eleven city councilors met with both the company management and the workers on Thursday, asking the employees to stop the strike, which had been triggered by the company's name change.

"There has not yet been any decision, but we asked the workers to resume work on Friday," said Councilor Uba Ingan Sigalingging.

The workers rejected the change of name and have demanded that the Singaporean company dismiss them and provide severance payment.

Article 163 of Law No. 35/2014 on manpower states that, regarding corporate actions such as a change of name or a merger, a severance allowance is to be provided if the employers or employees decide to end the working relationship.

The deputy chairman of the All-Indonesia Workers Union (SPSI) PT Amtek working unit, Tahan Simanjuntak, said that there had been no agreement reached between the workers and the company. "The strike will continue until our demand for severance allowance has been fulfilled," Tahan said.

Marlen Turnip, another protester, said the workers were demanding that the company comply with the law obliging it to provide a severance allowance to its workers due to the change in company name, by dismissing them first.

Once they were dismissed, he said, it would be okay for them to go back to work with a zero service period or not be reemployed at all.

"What is important is that we receive the severance allowance and get clarity after the change to the company name," said Marlen who has worked at the factory since 2004.

He said the strike was initiated by workers who had worked with the company for over 10 years. Calling for dismissal and the severance allowance were the main reasons for the strike, he added.

Meanwhile, the Batam Free Trade Zone Authority (BPK FTZ) spokesperson, Purnomo Andiantono, revealed that the chief executive officer of Amtek Holding Company, based in Singapore, had decided to cancel the factory expansion, which had initially been scheduled to begin at the beginning of this year.

"Thanks to the deadlock caused by this worker problem, the management have made the decision to cancel the expansion," Purnomo told The Jakarta Post, on Tueday.

He said that the company had also made the decision to move their factory from Batam to Vietnam if the problem was not settled within two weeks. "A strike of that long is the same as the company stopping operation, in other words, closing down," he said.

The workers had said earlier that the company's threat to move the factory to Vietnam was just a bluff.

Purnomo said it was deplorable that the workers were demanding to be dismissed in order to receive a severance allowance from the company but wanted to be re-employed.

The company's management had committed to recognize their service period although it would change its name into Interplex, the name of the US-based company which was taken over by PT Amtek in July 2015, he added. PT Amtek became a sub-contractor for Apple as a result of the takeover.

Meanwhile, PT Amtek Engineering human resources executive in Batam, Cucu Eva Lestari, said that no further meeting between the company and the workers' association or its representatives had been made. "That's all that I can say," Cucu told the Post.

Source: http://www.thejakartapost.com/news/2016/01/15/pt-amtek-worker-strike-continues-expansion-halted.html

Workers strike, block Apple subcontractor factory in Batam

Jakarta Post - January 13, 2016

Fadli, Batam – Some 2,000 workers from PT Amtek Engineering in Batam, Riau Islands province, went on strike as planned on Monday, blocking the main and only entrance to the company's factory.

Gathering at the Cammo industrial area from as early as 6:30 a.m., local time, workers only cleared the entrance gate after 10 military personnel used force to make them move away from the gate.

Reportedly, the workers went on strike as a way of demanding clarity with regard to their status following an announcement of the Singaporean company's plan to change its name.

Meanwhile the company, a subcontractor for Apple, gave the government three months to deal with the strike and threatened to move its factory to Vietnam.

PT Amtek, a Singaporean firm, become a subcontractor for Apple after the former bought Interplex, a company based in the US.

The chairman of the All-Indonesia Workers Union (SPSI) PT Amtek working unit, Parulian Simanjuntak, said the name change from PT Amtek to Interplex was actually made in July 2015. Yet, he said, management never talked about the change with the employees.

Quoting Article 163 of Law No. 13/2003 on Manpower, Parulian claims that a company is required to pay severance allowances to its employees when a change is made to the company's name and also if a company is acquired by another company.

"PT Amtek did not do that even though the company's logo, email and website have been changed to Interplex," Parulian said.

He said that the workers rejected the change of the company from PT Amtek into Interplex. The workers demanded the company dismiss them and give them a severance payment.

Article 163 states that, regarding corporate actions such as a change of name or merger, a severance allowance is to be provided if the employers or employees decide to end the working relationship. "If the company wants to rehire the workers, it is dependant on both sides," he added.

Furthermore, Parulian said that the threat to move the factory from Batam to Vietnam was just a bluff and would be impossible to implement.

He also said that there had not been a meeting between the government and the management of the company. "We talked directly. The government did nothing to fight for our demands," he said.

He added that the strike would be conducted as planned, until the end of this month. If their demand was not met, the strike would be extended.

A company of military personnel were seen guarding the factory site while the workers continued their strike by sitting in front of the factory.

In July last year, Amtek's parent company, Singapore-based Amtek Engineering, officially changed its name to Interplex Holdings Ltd. The company said that the change of name was just a strategy to increase the company's brand awareness in the international market and would not change the status of the workers.

Prior to the strike on Monday, Batam Free Trade Zone Authority (BPK FTZ) spokesperson Purnomo Andiantono and director of goods traffic Tri Novianta Putra led an internal meeting with the government in response to the planned strike and the company's threat to move its factory to Vietnam.

They both received repeated calls from the PT Amtek general manager in Singapore, who asked whether the meeting could ensure there would be no more strike.

"PT Amtek's leader was wrathful as they are dealing with orders from their clients. If the strike continues they will not be able to accept the orders," Purnomo told The Jakarta Post, adding that he could not yet give an assuring answer because the workers planned to continue their strike.

Purnomo said that the strike was rooted in the workers' restlessness over the company's change of name from PT Amtek to Interplex.

He also said that while the company had not actually planned to make any changes, other than in name, the workers worried about their status both now and in the future. "We are still trying to encourage the workers to stop the strike but they insist on continuing," Purnomo said. He also said that PT Amtek, through their lawyer, had informed BPK FTZ that if the workers continued with their strike on Monday, they would inform relevant parties of the closure of their factory in Batam and would move it to Vietnam.

"We are saddened by the situation. The workers should understand that if the factory is shut down they will lose their jobs," Purnomo said on Monday.

Source: http://www.thejakartapost.com/news/2016/01/12/workers-strike-block-apple-subcontractor-factory-batam.html

Tensions rise as workers for Apple contractor plan strike

Jakarta Post - January 12, 2016

Fadli, Batam – Authorities in Batam, Riau Islands, have called on thousands of workers from a major local company to drop plans to begin a three-week strike on Monday, claiming the move could cost employees their jobs and hurt the local economy.

Batam Free Trade Zone Management Agency (BPK FTZ) public relations and promotions director Purnomo Andiantono said the concerns emerged after some 2,000 workers from PT Amtek Engineering Batam last week announced a plan to stage a collective strike from Monday until the end of the month to demand clarity on their employment status following the company's recent decision to change its name.

"Amtek management is furious because the company won't be able to take upcoming orders from clients should the workers stage the strike," Purnomo told The Jakarta Post over the weekend.

Earlier on Friday, Purnomo, BPK FTZ goods traffic director Tri Novianta Putra and representatives from local labor unions held a closed-door meeting to discuss the latter's demands.

The meeting, which was also attended by representatives from the Riau Islands Police and Batam's Manpower Agency, however, ended in a deadlock with the workers insisting that they would strike.

After the meeting, Purnomo said Amtek, through its legal advisor, had informed the BPK FTZ that the company was considering closing its Batam factory should workers refuse to immediately return to work.

"The company said it would move its operations to Vietnam should the strike continue. We are also unhappy with this situation. Workers, meanwhile, should understand that they will lose their jobs if the company closes down its operations here," he said.

Amtek became a subcontractor of cell phone producer Apple when the latter bought US-based company Interplex. The Singaporean company has been in operation in Batam since 1996, carrying out metal stamping and forming. It has an investment value of US$60 million.

Separately, the Indonesian Metal Workers Federation's (FSPMI) Batam chapter official, Suprapto, said workers were unsettled because the company's name change was made without informing them and they feared it could affect their positions.

"The company recently changed its name on its website, email [addresses] and other [documents]. This made workers question whether the change would put their service period back to zero. The company, however, could not explain this," he said.

In July last year, Amtek's parent company, Singapore-based Amtek Engineering Ltd., officially changed its name to Interplex Holdings Ltd.

Tri, meanwhile, gave his assurances that the name change would not affect workers' employment status, saying the strategy was intended to increase the company's brand awareness in the international market. "We will also investigate the possible involvement of any [third] parties in planning the strike," he said.

Last year, President Joko "Jokowi" Widodo instructed the National Intelligence Agency (BIN) to investigate alleged foreign involvement in labor rallies in Batam that led to investors leaving the industrial zone.

Allegations of foreign support for workers have been made by the government since a large-scale and chaotic protest in 2011 that involved at least 10,000 workers on the island.

At least six were injured, including one person who was shot, while three cars were severely damaged during the rally, which aimed at demanding a minimum-wage increase. Every year since, especially at year-end when the government sets the new minimum wage, workers have conducted large-scale rallies.

Suprapto, meanwhile, said the strike was held purely to uphold workers' employment rights. "We are not a threat. We just want to see the core problems settled," he said.

Source: http://www.thejakartapost.com/news/2016/01/11/tensions-rise-workers-apple-contractor-plan-strike.html

Political parties & elections

PKS to stay with Red-White Coalition, says party chief

Jakarta Globe - January 13, 2016

Jakarta – The Prosperous Justice Party, or PKS, has reiterated its commitment to stay with the opposing Red-White Coalition led by Prabowo Subianto amid speculations that it would switch sides and support President Joko Widodo's administration.

Speaking at an annual party congress at Bumi Wiyata Hotel in Depok, just south of the capital, PKS chairman Shohibul Iman said the party will remain true to the coalition, known as the KMP, even as other parties departed.

The National Mandate Party was the latest to join Joko's Awesome Indonesia Coalition last year while the Democratic Party left the Red-White bloc, established to support Prabowo's bid for presidency in 2014, after the Great Indonesia Movement (Gerindra) chairman lost to Joko in the election.

The other two parties, Golkar and United Development Party (PPP) are now facing an internal split with one camp wishing to stay as opposition and the other pressing to join Joko's alliance.

Shohibul promised the PKS will continue to provide constructive criticism and maintain checks and balances on Joko's administration, even though it is likely that the party and Gerindra will be the only two left in the Red-White Coalition.

"PKS believes that the number [of parties] in a coalition is inconsequential. We believe the quality and commitment in supervising the government's duty to provide welfare for people is most important thing," Shohibul said.

Rumors that the Islamic-based party will join the pro-government coalition surfaced last month following a closed-door meeting between Shohibul and Joko at the State Palace on Dec. 21.

Source: http://jakartaglobe.beritasatu.com/news/pks-stay-red-white-coalition-says-party-chief/

Prabowo OKs Golkar's overture to Jokowi

Jakarta Post - January 13, 2016

Jakarta – Gerindra Party patron Prabowo Subianto said he would not oppose a plan by the Golkar Party leadership to join the ruling coalition.

Prabowo said he had given freedom to all political parties under the Red-and-White Coalition, which backed his candidacy in the 2014 presidential election, to join any coalition they saw fit.

"Let me put it this way, I will not only allow Golkar. Even the PKS [Prosperous Justice Party] could also join, if this is in the people's interests. I have no problems with this," Prabowo told reporters on the sideline of the PKS national meeting in Depok, West Java, on Thursday.

Prabowo said he would allow even members of his Gerindra Party to join the government if it was for the greater good. "I will not stand in the way, but I will not ask them to do that," he said.

The camp of Aburizal Bakrie, who is currently in control of Golkar following a decision by the Law and Human Rights Ministry to revoke a decree that had approved the leadership of Agung Laksono, has made overtures to join the ruling coalition of President Joko "Jokowi" Widodo in recent weeks.

On Monday, Aburizal himself held a meeting with Jokowi, during which the Golkar chairman delivered his pledge to support the government.

"As one of the recommendations from the national consolidation meeting we had, the Golkar Party has decided that we can support and can be in the same seat with the government," Aburizal told reporters after the meeting.

Aburizal said the Golkar Party wanted to be part of a stronger government that could solve the country's numerous problems. "We want the government to be able to realize its vision and mission and carry out steps to develop the nation to help our people," Aburizal said.

Aburizal's move followed that of National Mandate Party (PAN) chairman Zulkifli Hasan, who had pledged the party's support for Jokowi's government in September.

Recently, the Islamic-based PKS has also expressed its interests in joining the ruling coalition, especially following the purge of central board members who had steered the party towards nominating Prabowo for the 2014 presidential election.

In November last year, newly elected PKS chairman Sohibul Iman pledged his party's loyalty to the administration of Jokowi. Sohibul made the statement shortly after being sworn in to replace Anis Matta, an ardent supporter of Prabowo.

On Monday, amid the ongoing power struggle within Golkar, the House of Representatives confirmed Ade Komarudin, a senior Golkar politician known for his good relations with the President, as the new House speaker. The inauguration of Ade may signal consolidation within the House, as he is also considered to be loyal to Aburizal Bakrie.

Source: http://www.thejakartapost.com/news/2016/01/13/prabowo-oks-golkar-s-overture-jokowi.html

Mega spares Jokowi from another round of shame

Jakarta Post - January 11, 2016

Margareth S. Aritonang, Jakarta – President Joko "Jokowi" Widodo seemed to enjoy his first public display of equal standing with his patron Megawati Soekarnoputri, chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), during the opening of the ruling party's working meeting on Sunday.

After a series of similar meetings in the past year that involved Megawati making a series of gestures and statements that suggested Jokowi was below her in the political pecking order, the eldest daughter of Indonesia's founding president Sukarno seems to have spared the President from further humiliation.

For the first time, Jokowi was given the opportunity to deliver a speech before the PDI-P national assembly, during which the President applauded the PDI-P's contribution and vision to develop the country as well as presenting his infrastructure development plan that focuses on remote parts of the archipelago.

"The PDI-P remains ideologically consistent as a party and is able to maintain unity to become strong and powerful because of [Megawati's] leadership," said Jokowi in his speech that quickly won applause from the audience.

Jokowi was not given the same opportunity during the PDI-P's national congress in Bali last year, at which Megawati declared that like all PDI-P members, Jokowi was also a party official; a remark that many saw as an attack against Jokowi due to PDI-P members being denied access to the State Palace.

During the Bali congress, Jokowi sat in the front row attentively listening to Megawati's remarks but seemingly struggling to appear unaffected by her remarks.

Sunday's meeting saw Jokowi shaking Megawati's hand without placing his forehead onto her hand – an Indonesian custom reflecting a high level of respect to an older person. However, the gesture can also be perceived as an act of submission and a sign of inferiority.

The atmosphere at the meeting was profoundly different to previous occasions, with Megawati and Jokowi seen exchanging smiles and sitting side by side.

They also engaged in light conversation and whispered to each other while enjoying the performances. Although Megawati delivered strong criticism of the government's performance, she did not position herself as an authority over the former Jakarta governor.

Among other things Megawati claimed that certain state enterprises had been mismanaged and turned into "private corporations" that had abandoned their mission to ensure public welfare. "State firms are treated like private companies that emphasize a solely business approach," she said. She called on the government to reform state companies and overhaul the management of the State-Owned Enterprises Ministry, adding that the PDI-P initiative to establish a House of Representatives task force to investigate irregularities surrounding state-owned port operator Pelindo II was a positive development.

Some observers claimed that Megawati's statement could be construed as a demand that Jokowi replace his trusted aide State-Owned Enterprises Minister Rini Soemarno.

Rini and Megawati were once inseparable friends, traveling overseas together for leisure and shopping. However, things went south after Rini took office last year and she has been absent from PDI-P meetings and functions, including the one on Sunday. Sources within the PDI-P put the warmer interaction between Jokowi and Megawati down to a "mutual understanding of the necessity to improve the management of state-owned companies".

Senior PDI-P politician Hendrawan Supratikno, however, cited "better and more frequent communication" between the Presidential Palace and the PDI-P as the reason for apparent detente.

"Pak Jokowi has become more confident in running the country, while the PDI-P has increased its trust in Pak Jokowi to implement party programs," Hendrawan said.

"Cooperation between Pak Jokowi and Bu Mega is also a give-and-take relationship. We communicate better as we understand each other's expectations," he added.

Many leaders of the ruling coalition were seen among the audience during Sunday's gathering. However, Indonesian Justice and Unity Party (PKPI) founder Sutiyoso, who is now the National Intelligence Agency (BIN) chairman, was notably absent.

The guest list also included National Mandate Party (PAN) chairman and People's Consultative Assembly (MPR) Speaker Zulkifli Hasan, leader of pro-government faction of the United Development Party (PPP) Muhammady Romahurmuziy, Gerindra Party deputy chairman Fadli Zon and Prosperous Justice Party (PKS) senior politician Fahri Hamzah.

Source: http://www.thejakartapost.com/news/2016/01/11/mega-spares-jokowi-another-round-shame.html

Minister accused of meddling in PPP, Golkar to 'create instability'

Jakarta Post - January 10, 2016

Nurul Fitri Ramadhani, Jakarta – Critics have lambasted what they deemed as political intervention from Law and Human Rights Minister Yasonna Laoly in the internal affairs of the Golkar Party and the United Development Party (PPP) that has resulted in leadership crises in both of the parties.

A political communication expert from the University of Indonesia (UI), Effendi Ghazali, said Yasonna, a senior politician from the Indonesian Democratic Party of Struggle (PDI-P), could have an ulterior motive to create instability within parties in the Red and White Coalition.

Effendi said that Yasonna should not hold a position that gave him authority over other political parties. "Members of political parties should not occupy such a high-level official position," Effendi said on Saturday.

Law No. 2/2011 on political parties stipulates that the law and human rights minister has the authority to register and officiate the leadership of a political party.

Late in December last year, the Law and Human Rights Ministry revoked a decree previously recognizing the leadership of Agung Laksono, who was elected in a Golkar national meeting in Ancol, Jakarta, in December 2014. The ministry, however, did not publicly announce that the camp of Agung's rival, Aburizal Bakrie, is now in charge of the party.

Earlier this week, the ministry made a similar move by revoking a ministerial decree that recognized Muhammad Romahurmuziy as leader of the PPP, after he was elected chairman in a national party congress in October 2014. The ministry, however, failed to recognize the presence of a rival camp within the PPP led by Djan Faridz.

The revocations followed the Supreme Court's decision to reject the chairmanship of Agung's camp and Romahurmuziy's camp.

Effendi said that Yasonna could in fact implement a temporary solution to the leadership crisis faced both by the PPP and Golkar, simply by granting the Golkar chairmanship to Aburizal, who was elected at the party's 2009 national meeting in Riau, and the PPP chairmanship to Suryadharma Ali, who was reelected at the national meeting in Bandung in 2011, before the two parties hold a national congress to vote for new leadership.

Yunarto Wijaja, a political analyst from Jakarta-based think tank Charta Politika, blamed Yasonna for being too slow in responding to the Golkar and PPP leadership disputes.

"The only thing that the minister can do now is use his discretionary power to extend the term of the leadership chosen at the Riau congress [for Golkar] and recognize the PPP leadership elected at the Bandung congress," Yunarto said.

Such a decision would give rival camps in both parties time to prepare a national congress that would elect new party leadership, which Yunarto deemed as the best possible solution.

The ministry shrugged off accusations that it was meddling in political parties' internal affairs, saying that it only had the authority to examine administrative documents of the current management structure of parties.

"We have to examine it step by step. All things require a process. People need to be patient," said the ministry's director general of legal administration, Aidir Amin Daud.

Meanwhile, the camp of Romahurmuziy has called off its decision to nominate current Religious Affairs Minister Lukman Hakim as PPP's interim chairman. Lukman was elected as party deputy chairman during the Bandung congress and could automatically occupy the chairman position because party chairman Suryadharma Ali is now a suspect in a graft trial.

"We will have further discussion with other party members, because we want to come up with the very best solution," Romahurmuziy said.

Romahurmuziy said that he would also convene a national meeting later this month and that he had invited Djan's faction to join the meeting.

PPP secretary general Achmad Dimyati Natakusumah, a member of Djan's camp, claimed that the meeting was illegal, as the chairmanship legally belonged to Djan.

"The Supreme Court is the highest court and it has legally granted the chairmanship to Djan. Recognition from the Law and Human Rights Minister is just an administrative matter," he said.

Source: http://www.thejakartapost.com/news/2016/01/10/minister-accused-meddling-ppp-golkar-create-instability.html

PPP devoid of leadership: Romahurmuziy camp

Jakarta Post - January 10, 2016

Callistasia Anggun Wijaya, Jakarta – The Muhammad Romahurmuziy-led camp of the United Development Party (PPP) has claimed that the revocation of a decree that had approved Romahurmuziy's leadership leaves the Muslim-based party without a leader.

The Ministry of Law and Human Right on Friday revoked a decree it had issued last March, which had been based on a party congress in Surabaya. The ministry's move comes after the Supreme Court declared Djan Faridz, who was elected at a party congress in Jakarta, the party's rightful leader.

In a press statement on Friday, PPP senior member Zarkasih Nur said that following the revocation, the party's leadership should normally be returned to the person elected at the Bandung congress in 2011, which was chaired by Suryadharma Ali.

"The term in office of the leaders elected at the Bandung congress already expired in 2015. The current leaders are deemed emergency party leaders," Zarkasih, who is a supporter of Romahurmuziy's camp, said.

Zarkasih added that from the perspective of senior party members, neither the Surabaya nor the Jakarta congress constituted a valid basis for the leadership of the party.

Therefore, he urged both camps to carry out a reconciliation congress to overcome the absence of leadership. He expressed his wish for both factions to unite in vision and mission to lead the party into the future.

Senior members of the party, including Bachtiar Chamsyah, Hamzah Haz and Aisyah Amini, planned to hold a meeting to discuss the matter, said Zarkasih. (bbn)

Source: http://www.thejakartapost.com/news/2016/01/10/ppp-devoid-leadership-romahurmuziy-camp.html

Surveys & opinion polls

Public optimistic about Jokowi's performance

Jakarta Post - January 13, 2016

Nurul Fitri Ramadhani, Jakarta – After a year of political and economic high tides for President Joko "Jokowi" Widodo's administration, people still believe that he can lead this country into calmer seas this year, a survey has found.

The survey released on Tuesday by polling firm Saiful Mujani Research and Consulting (SMRC) showed that 63 percent of 1,220 respondents from the country's 34 provinces are sure that Jokowi will lead this country better this year and can be more firm in decision-making.

The survey, which was conducted from Dec. 10 to 21, also showed that 72 percent of respondents consider that Jokowi has been on the right track to move the country forward, the highest positive attitude toward a government in the last five years.

According to SMRC executive director Djayadi Hanan, the public trust and positive sentiment should make Jokowi more confident this year.

"Jokowi should not be influenced by negative sentiments from elites who show pessimism and say that this country will collapse," Djayadi said during the survey's release at his office on Tuesday.

On the economy, the public feels that the country's performance during 2015 was just so-so, with only 39 percent of respondents considering that it went better than in 2014 and 38 percent seeing no real change. For this year, 51 percent of the respondents placed trust in Jokowi to make things better.

Djayadi said that the public perception about the economic situation was in line with the decreasing rate of inflation. Citing inflation data from the Central Statistics Agency (BPS), he pointed out that when the inflation rate increased, the public's positive perception of the economic situation plunged and it got better when the inflation rate went down.

"This perception could be a valid reference for the government for evaluation because the public itself really feels the impact of inflation," Djayadi said.

However, the survey also reveals that Jokowi still has many challenges ahead, particularly concerning the people's welfare, as 60 percent of respondents still find it difficult to fulfill their basic needs, such as for staple foods, 71 percent are seeing an increase of unemployment, 63 percent consider that the poor are becoming more numerous and 70 percent feel that it is getting more difficult to get jobs.

"Those are big challenges for the President in ensuring a more even distribution of welfare," Djayadi said, adding that Jokowi needed to be more focused on the economic agenda and not be too busy with political ones.

J. Kristiadi, a senior political analyst at the Centre for Strategic and International Studies (CSIS), said he was amazed by the positive attitude of Indonesian people in applauding Jokowi for his performance despite the economic downturn.

"People still trust Jokowi because of his personality. They know he is a good person. He's very simple and close to people. So they still see a hope inside him. No matter that people consider he can lead better this year," Kristiadi said.

Djayadi added that Jokowi needed to show a stronger commitment toward combating corruption as 61 percent out of respondents said they considered that corruption in the country was increasing.

The Corruption Eradication Commission (KPK) is the third most trusted institution, as 82.9 percent of the public said they trusted it, after the Indonesian Military (TNI) with 89.6 percent and the President with 83.7 percent.

Executive director of Jakarta-based pollster Indikator Politik Indonesia, Burhanuddin Muhtadi, said that Jokowi should immediately show his support of the antigraft body through his stance on the revision of the KPK Law.

"He has to show a clear stance toward the revision, whether he is in pro or con. If he doesn't back the KPK, then he fails to prove his anticorruption commitment and will lose support for the 2019 general election," Burhanuddin said.

The survey also showed that the public's perception of the working performance of Jokowi's Cabinet is divided, with 51 percent of respondents having said they were satisfied and the rest saying they were not.

"This can be a reference for Jokowi to evaluate his ministries. If he wants to do another reshuffle, just do it because the public supports him," Djayadi said.

Source: http://www.thejakartapost.com/news/2016/01/13/public-optimistic-about-jokowi-s-performance.html

Environment & natural disasters

Lapindo forced to suspend boring in East Java

Jakarta Post - January 11, 2016

Oil and gas exploration company Lapindo Brantas has suspended operations in East Java's Sidoarjo regency, where people are still traumatized by the mudflow disaster blamed on the company's previous exploration activities.

"All heavy equipment in the drilling location will be taken out today pending a decision from the central government," Sidoarjo Police chief Anwar Nasir said on Monday, as quoted by news portal kompas.com.

The government earlier decided to stop Lapindo's operations due to safety concerns, saying it would reevaluate the safety, geological and social aspects of the drilling.

Nine years ago, a rice paddy in eastern Java suddenly cleaved open and began spewing steaming mud. Before long, it covered an area twice the size of Central Park; roads, factories and homes disappeared under a tide of reeking muck. Twenty lives were lost and nearly 40,000 people displaced, with damages topping $2.7 billion.

The company, which is linked to Golkar Party chairman Aburizal Bakrie, recently announced plans to re-start drilling in March with a target of producing five million standard cubic feet of gas per day (MMSCFD). The new drilling area is located only two kilometers from areas of the mudflow. (cal/dan).(+)

Source: http://www.thejakartapost.com/news/2016/01/11/lapindo-forced-suspend-boring-east-java.html

Graft & corruption

KPK names PDI-P lawmaker bribery suspect

Jakarta Post - January 15, 2016

Haeril Halim and Tama Salim, Jakarta – The Corruption Eradication Commission (KPK) on Thursday named Indonesian Democratic Party of Struggle (PDI-P) politician Damayanti Wisnu Putranti a suspect for accepting bribes from a group of businessman following her arrest by KPK investigators on Wednesday night.

Damayanti, currently a member of House Commission V overseeing infrastructure, is the second PDI-P House lawmaker to be arrested by the KPK since the party won legislative elections in 2014.

Last year, the KPK nabbed PDI-P lawmaker Andriyansah for receiving bribes on the sidelines of the party's congress in Bali. The congress was attended by President Joko "Jokowi" Widodo and party chairwoman Megawati Soekarnoputri.

"DWP [Damayanti] and some other individuals were arrested during the operation. The other individuals have been identified as UWI and DES. They have all been charged under articles 11 and 12 of the 2001 Corruption Law for receiving bribes," KPK chairman Agus Rahardjo told a press briefing at the headquarters of the antigraft body on Thursday.

The individuals identified only as DES and UWI were businessmen who allegedly helped to arrange a S$33,000 bribe to Damayanti. Both articles 11 and 12 carry a maximum penalty of 20 years behind bars.

Meanwhile, Agus said KPK investigators had charged another businessman, identified only as AKH, for bribing the PDI-P politician, adding that AKH would be charged with Article 5 of the 2001 Corruption Law. Article 5 carries a maximum penalty of five years in prison.

Agus further said that Damayanti received the $33,000 in exchange for her work to secure a construction project earmarked for the Public Works and Public Housing Ministry for the 2016 fiscal year.

Damayanti was arrested along with UWI, DES and AKH at four different locations across Jakarta on Wednesday night. The KPK also arrested two drivers, who were later released after undergoing 24 hours of intensive questioning at KPK headquarters.

Agus said that the $33,000 was part of $404,000 promised by AKH to Damayanti and DES for their efforts to secure the project from the Public Works and Public Housing Ministry. "UWI earlier received another $33,000, which was later collected by DWP," Agus said.

Following the arrest, KPK investigators on Thursday sealed a number of buildings in Jakarta thought to house evidence in the bribery case. All four suspects have been sent to the KPK's detention center.

Soon after his arrest, the PDI-P quickly dismissed Adriyansah from the party. Adriyansah was later convicted and sentenced to three years in prison.

Separately, Hendrawan Supratikno, deputy chairman of the PDI-P faction in the House, confirmed the arrest of Damayanti and said that the party would not tolerate any offences that could taint the party's good image.

"[We will dismiss her] immediately, just like we did with Adriansyah," he said on Thursday. Hendrawan acknowledged that Damayanti was known to come from a "well-off" background due to her career in infrastructure development projects.

Earlier on Tuesday, PDI-P chairwoman Megawati Soekarnoputri warned the 4,000 participants of the party's national meeting in Central Jakarta that the party would not tolerate corruption and any members involved in the practice would be dismissed from the party.

Source: http://www.thejakartapost.com/news/2016/01/15/KPK-names-pdi-p-lawmaker-bribery-suspect.html

Kalla claims Jero did nothing wrong in using state funds

Jakarta Post - January 15, 2016

Haeril Halim, Jakarta – Testifying at the Jakarta Corruption Court on Thursday, Vice President Jusuf Kalla defended graft suspect Jero Wacik against the accusation that the former minister misused money from the state budget to cover personal expenses while serving as culture and tourism minister between 2005 and 2009.

Kalla was the vice president for then president Susilo Bambang Yudhoyono when the alleged crime took place. Kalla appeared in court to testify on behalf of Jero, who was standing trail on charges of embezzling Rp 10 billion.

He said that Jero did not violate any regulations because a Finance Ministry regulation issued in 2006 on the use of ministerial funds stipulated that ministers had the prerogative to spend ministerial funds at their discretion on either personal or official use.

The government scrapped the 2006 Finance Ministry regulation, which limited the use of ministerial funds to official activities and replaced it with the 2014 regulation, which gives more room for ministers to spend operational funds at their initiative without requiring them to write accountability reports on the use of the funds as mandated by the 2006 regulation. "As a representative [of the government], it is difficult make a distinction between ministerial duties and daily activities as ministers. Because the [2006] regulation was scrapped, ministers must refer to the 2014 rule. The thinking behind it [the current regulation] is to help ease ministers' jobs," Kalla said on Thursday.

Jero, Kalla said, could use ministerial funds to pay for activities like dinners with colleagues or official guests. He also said that ministerial funds could be used to pay for official activities not covered by individual ministries' budgets.

"For example, a minister has to stay healthy. If he wants to exercise but there is no budget provided by his office then he could use operational funds," Kalla said.

Kalla also said that Jero had in fact delivered on his job as culture and tourism minister by increasing the number of foreign arrivals from 5 million to 7.5 million between 2005 and 2009.

"As a minister he achieved a lot while in office," Kalla said, adding that there were no indications to suggest that Jero abused his position as culture and tourism minister for personal gain.

When pressed by KPK prosecutors if a minister could spend ministerial funds to fund family activities as Jero did, Kalla said: "As I earlier stated, it is impossible to separate the role of a minister's daily life and in official duties."

After the hearing, KPK prosecutors lambasted Kalla for basing his statement on the 2014 Finance Ministry regulation, saying that a new regulation could not be used to defend a violation that happened prior to its passage.

KPK prosecutor Yadyn said that Jero's offenses clearly violated the 2006 regulation, which was applicable when Jero was in office. "We're sticking with the 2006 regulation," Yadyn said. He said the KPK's team of prosecutors were optimistic that the panel of judges would rule in favor of the KPK because witnesses and evidence collected during the nearly three-month trial had proven Jero's guilt.

"We are optimistic that we will win the case because all the collected evidence and testimonies support our argument," Yadyn added.

Source: http://www.thejakartapost.com/news/2016/01/15/kalla-claims-jero-did-nothing-wrong-using-state-funds.html

Suryadharma gets 6 years for haj scam

Jakarta Post - January 13, 2016

Haeril Halim, Jakarta – The Jakarta Corruption Court on Monday sentenced former religious affairs minister and United Development Party (PPP) chairman Surydharma Ali to six years behind bars after he was convicted of embezzling the country's haj funds between 2010 and 2013, causing billions of rupiah in state losses.

"Our examination into the case has found that the defendant is guilty of corruption together with other individuals in the case. We also order him to pay Rp 300 million in fines or he has to serve an additional three months," said presiding judge Aswijon, reading the verdict on Monday.

Suryadharma's verdict also confirms the role of other individuals in the case, including senior PPP politician Hasrul Azwar, a former lawmaker who was in charge of the haj program.

Hasrul, now serving as a member of House of Representatives' Commission III overseeing legal affairs, is accused of having received millions of Saudi reals from a housing project for pilgrims in Saudi Arabia, under Suryadharma's tenure.

The panel of judges also ordered Suryadharma to pay Rp 1.8 billion in restitutions, adding that the PPP politician had to serve another two years behind bars should he fail to pay.

The sentence is lower from the 11 years earlier demanded last week by Corruption Eradication Commission (KPK) prosecutors, in addition to their demand for the politician to be ordered to pay Rp 2.3 billion in restitutions and a Rp 750 million fine.

If within one month he fails to pay the restitutions then his possessions will be confiscated for auction, but if those possessions are valued lower than the demanded amount of money, then he will have to serve another four years behind bars. Failure to pay the fine will result in an additional prison term of six months.

The panel of judges at the court refused to approve the KPK's call to strip Suryadharma of his political right to run for government office in the future, claiming that despite the massive corruption "the handling of the haj program under Suryadharma's tenure had been improved".

Earlier, KPK prosecutors claimed that Suryadharma deserved the hefty sentence because he did not show any remorse, although court evidence had clearly confirmed his guilt in the case, adding that he also gave inconsistent testimony during the nearly four-month-long trial.

Suryadharma condemned the verdict, reminding the panel judges of the consequences of an unjust verdict that was made in a trial that was conducted "in the name of God"."Please give some time for me to consult with my lawyers about whether to challenge the verdict," Suryadharma added.

Meanwhile, KPK prosecutors also expressed dissatisfaction over Monday's verdict, saying they were considering appealing the sentence.

The KPK accused Suryadharma of appointing incompetent haj committee members for the 2010 to 2013 haj program that caused a total of Rp 13 billion in state losses. The KPK said he also falsely registered his family members, adjutants, personal assistants, drivers and campaign team members as haj members so that they could go on haj for free using state funds.

He also appointed his confidants as haj assistants in Saudi Arabia and gave them pocket money totalling Rp 345 million from the haj fund, of which Rp 56 million was funneled into his wife's pockets.

Suryadharma also abused his authority as religious affairs minister to directly appoint consortium companies to provide housing for pilgrims in Jeddah and Madinah and determined the price by his own calculations that cost 15.4 million reals in state losses because of overpricing.

Between 2010 and 2012, Suryadharma also abused his authority to channel haj quota places intended for pilgrims to his relatives, fellow politicians from the PPP and House of Representatives lawmakers, which cost the state Rp 12 billion. In total, Suryadharma gave 1,771 haj seats to parties who did not legally merit them.

Suryadharma also increased the maximum age requirement for pilgrims from 60 to 87 years in order to accommodate House lawmakers and people endorsed by the House to go on haj for free using the haj quota, preventing pilgrims who had been registered on the waiting list for years from going on the haj between 2010 and 2013.

Source: http://www.thejakartapost.com/news/2016/01/12/suryadharma-gets-6-years-haj-scam.html

Setya Novanto skips questioning at AGO

Jakarta Post - January 13, 2016

Jakarta – The lawyer of former House of Representatives speaker Setya Novanto, Firman Wijaya, has confirmed that the Golkar Party politician would not abide by an Attorney General's Office (AGO) summons for questioning scheduled for Wednesday.

"He cannot yet fulfill the AGO summons because his summonsing was premature," Firman said as quoted by kompas.com in Jakarta on Wednesday.

The AGO had intended to question the Golkar deputy chairman over an alleged conspiracy surrounding gold and copper mining firm Freeport's contract extension negotiations, which involved oil tycoon Muhammad Reza Chalid.

Firman said the AGO had previously sent a letter to President Joko "Jokowi" Widodo, asking for his permission to examine Setya. However, President Jokowi had not yet responded to the AGO's request, he said.

"The Attorney General [Prasetyo] has sent a permission request letter to President Jokowi. Why can't we respect our presidential institution? There is also a time limit on the issuance of the permit but why does the attorney general have such an attitude?" asked the lawyer.

Firman further explained that in fulfilling a prosecutor's summons, a suspect was not required to appear at the AGO. He or she could respond to questions raised by prosecutors via a written statement.

In its summons letter, the AGO said it would ask Setya about several issues related to the Freeport mining contract extension.

Firman said, however, that it would be more appropriate for the AGO to seek information about Freeport's contract extension from Energy and Mineral Resources Minister Sudirman Said.

Therefore, he said, it was likely that Setya would give the AGO a written explanation. Firman added that Setya was able to skip the questioning and give only a written explanation to the AGO because the investigation was still at a preliminary stage.

"Giving only a written explanation during questioning is allowed by existing laws. It's legal," he said.

A transcript of a recorded conversation between Setya, Freeport president director Maroef Sjamsoeddin and Reza, which was handed by Sudirman to the House's ethics council, suggested that Setya had promised to facilitate the extension of Freeport's mining contract – set to expire in 2021 – provided the company gave 11 percent of its shares to President Jokowi and 9 percent to Vice President Jusuf Kalla.

Firman said one reason that Setya refused to attend the questioning was because he considered the audio recording, which was used as evidence in the AGO's investigation, to be illegal.

"The AGO is examining Pak Novanto based on an audio recording file we deem illegal. How can it examine someone based on illegal evidence?" asked Firman.

During hearings for Setya's case at the ethics council in December 2015, several council members called into a question the validity of the transcript and audio recording. (ebf)(+)

Source: http://www.thejakartapost.com/news/2016/01/13/setya-novanto-skips-questioning-ago.html

Police back out from Setya investigation

Jakarta Post - January 9, 2016

Fedina S. Sundaryani, Ina Parlina and Nurul Fitri Ramadhani – The National Police say that they will not launch a criminal investigation into former House of Representatives speaker Setya Novanto over his alleged attempt to broker a back room deal with PT Freeport Indonesia.

National Police chief Gen. Badrodin Haiti told reporters on Friday that investigators had already consulted with experts and concluded that there was no legal justification for launching a general crimes investigation as the conversation between Setya, Freeport Indonesia president director Maroef Sjamsoeddin and business tycoon Muhammad Reza Chalid did not violate any articles of the Criminal Code.

"We can't charge them with slander against the President as the Constitutional Court abolished that article. We can't pursue a case of slander against the President because the recording was not made public by Setya, but by the House ethics council hearings," he said at the National Police headquarters in South Jakarta.

Badrodin added that it was also impossible for the police to investigate allegations that Maroef had committed fraud because he did not do anything that could be considered a violation of the Criminal Code.

"This definitely has more indications of being a special crime, which is already being probed by the Attorney General's Office [AGO]," he said.

Late last year, Energy and Mineral Resources Minister Sudirman Said reported Setya to the House ethics council for allegedly claiming to have won the approval of President Joko "Jokowi" Widodo and Vice President Jusuf Kalla to secure shares and projects from Freeport in exchange for helping the company to extend its contract and continue operations at its gold mine in Papua, one of the world's largest.

The report included a transcript and copy of a conversation between Setya, Maroef and Reza.

Following the report, the ethics council held a series of hearings, with testimony from Maroef, Sudirman and Setya himself, to determine whether he had committed a breach of ethics

However, Setya resigned from his post as House speaker before a decision could be made and will become Golkar Party faction leader pending approval.

The AGO has since launched an investigation into the case and claims that the parties involved in the conversation could be charged with conspiracy to commit corruption. Both Maroef and Sudirman have already been questioned while Setya is scheduled to be summoned next week. However, Reza has failed to answer two summons as he left the country days after the AGO announced its investigation.

Setya has also filed a police report against both Sudirman and Maroef for alleged defamation and a violation of the Electronic Information and Transactions (ITE) Law by recording the conversation without his consent.

However, he did not show up to give his testimony against Sudirman and Maroef on Friday, with his lawyer Firman Wijaya saying that Setya had clearly stated his case.

"Our police report is clear enough. It concerns slander, defamation and violation of the ITE Law. It may even come under the Intelligence Law as recording without notice is illegal unless conducted by a law enforcement body," Firman said on Friday.

Meanwhile, after weeks of insisting that special permission from President Jokowi was required to summon Setya, Attorney General M. Prasetyo finally said on Friday that his office would press ahead with summoning Setya without such permission.

"I have ordered [prosecutors] to immediately summon him. [The questioning] will probably be conducted next week," Prasetyo said on Friday. "I'd like to underline that we need no special permission from the President."

Source: http://www.thejakartapost.com/news/2016/01/09/police-back-out-setya-investigation.html

Terrorism & religious extremism

Jakarta attacks: Islamic State militant Bahrun Naim in Syria named as

Reuters - January 15, 2016

Kanupriya Kapoor and Randy Fabi, Jakarta – Seven years ago, Bahrun Naim was quietly running an internet cafe in the small Indonesian city of Solo.

On Thursday he was identified by police as the mastermind behind the deadly attack on Jakarta claimed by Islamic State, pulling the strings from Raqqa, the radical group's de facto capital in Syria.

In between, Naim was arrested in 2011 for illegal arms possession and jailed for three years, and police say that since then he has emerged as a key player in militant networks that have sprouted around Solo and across Central Java.

A year ago, he left for Syria to join the frontlines of IS, and police believe Naim was closely involved in co-ordinating Thursday's assault.

Five of the attackers and two civilians were killed in IS's first strike against Indonesia, the world's most populous Muslim nation where the group wants to establish an Asian beachhead for its "caliphate".

There had been hints of what was to come for weeks. After the co-ordinated attacks across Paris in November, the militant intellectual published a blog in which he explained to his followers how it was easy to move jihad from "guerrilla warfare" in Indonesia's equatorial jungles to a city.

Reuters contacted Naim on November 24 on Telegram social messaging, using details provided by one of his acquaintances. In that exchange, he said there were more than enough IS supporters to "carry out an action" in Indonesia.

"Just waiting for the right trigger," the man identifying himself as Naim said. Naim could not be reached for comment on Thursday.

Intelligence experts say that, not long after that Telegram exchange, intelligence officials began to pick up talk in social messaging chatrooms that an attack on Indonesia was imminent.

"Chatter among Islamists began to become more organised last month and there were discussions for the first time of a multiple attack," said a Jakarta-based security adviser, who monitors radical group discussions on mobile messaging services for the government.

Counter-terrorism officials believe there are at least 1000 sympathisers of the radical jihadist group across Indonesia.

The eavesdropping helped lead police to the arrest of more than a dozen men across the populous island of Java who were suspected of planning attacks over the Christmas and New Year holidays.

Bomb-making materials, a suicide vest and "jihad manuals" were found during the raids. Police said some of those rounded up had received funding and support from Naim, who believes Indonesia should be governed strictly as an Islamic country.

Naim had been planning the attack on Indonesia's capital for a while, Jakarta police chief Tito Karnavian said on Thursday, adding that he clearly had ambitions to become "the leader" of IS in south-east Asia.

Sidney Jones, a Jakarta-based expert on Islamist militants at the Institute for Policy Analysis of Conflict, said in a November report that there was only a slim chance in Indonesia of an attack on the scale seen in Paris, but she warned then that the threat was growing under the government's nose.

She noted that in one blog post, entitled "Lessons from the Paris Attacks", that Naim had urged his Indonesian audience to study the planning, targeting, timing, co-ordination, security and courage of the Paris jihadists.

That said, experts have pointed out that the relatively low death toll in the Jakarta assault suggested the involvement of local, poorly armed militants with little or no training.

In the Telegram exchange with Reuters, Naim also spoke of more mundane affairs, explaining that he enjoyed life in Syria and had no plans to return to Indonesia.

"I move around, depending on where our emir orders us to go. It's good here in Syria. There's electricity, accommodation, water and it's free. The services provided by them are good, cheaper than in Indonesia," he said.

Source: http://www.smh.com.au/world/jakarta-attacks-islamic-state-militant-bahrun-naim-in-syria-named-as-mastermind-20160115-gm6aup.html

Jakarta attacks: Seven dead in multiple attacks linked to Islamic State

Sydney Morning Herald - January 14, 2016

Jewel Topsfield, Jakarta – Seven people have been killed in a terrorist attack in central Jakarta, including five who are believed to be perpetrators linked to the Islamic State.

Multiple explosions hit the city's central business district on Thursday, including two possible suicide bombings. A further 20 people have been injured, some severely, according to Indonesian cabinet secretary Pramono Anung.

Jakarta Police chief Tito Karnavian said the suicide bomber blew himself up outside Starbucks. "As people started to run out of Starbucks, two men who were waiting outside started shooting,"

He said one foreigner died and one is still injured. It is believed one of the victims is Canadian.

Dutch United Nations worker Johan Kieft was confirmed by his colleagues to be "badly injured" after he was shot in the side. Mr Kieft, the head of a Green Economy Unit, was in Starbucks during the explosions.

The police chief said the two men attacked a police posting on nearby Thamrin Road, one of Jakarta's main thoroughfares.

Police found five hand grenades and an explosive device. He said five of the terrorists were killed. "By 3pm the location was cleared," he said.

Mr Karnavian said the terrorist attack was linked to ISIS. "They changed strategy from just attacking Syria to outside places as well," he said. "Like the attack in Paris, Asia is also a target

National police spokesman Anton Charliyan said on Thursday night that the terrorists were "from the ISIS group". "They claimed Indonesia will be in the world headlines," he said. " They said 'they will have a concert'".

When suspected terrorists were arrested before Christmas for allegedly planning attacks in Sumatra, Java and Kalimantan, police seized documents which suggested suspects were planning to "do a concert".

The police spokesman said at the time it was not yet known what concert meant but in the past "bride" had been a code word for suicide bomber.

Husain, an employee at nearby bank, told Fairfax Media: "First there was explosion in front of Starbucks at Marinah just before 11. Then people panicked tried to avoid Starbucks, people ran away. Went to nearby police station and saw a bomb in front of the police station.

"We're terrified, tried to run away shouting 'bomb, bomb'. This guy suddenly was there and opened fire with pistol. Shot the police man in his stomach. After that shot randomly. Witness tried to save police," Husain said.

Another witness, Oly, said the gun shots stopped before police entered a fast food restaurant. "On the streets people just abandoned their vehicles. Just like that and ran," Oly said.

Mr Charliyan said it was unclear whether or not the attackers were killed or fled the scene and police said several suspects had been taken into custody.

But more than an hour after police saying the situation had stabilised, more shots were heard at the scene sending people fleeing and it was still unclear last night how many of the attackers may still be on the loose.

Indonesian President Joko Widodo urged people to remain calm as rumours of attacks in multiple locations swept like wild fire.

Police said reports of similar explosions in Cikini (Central Jakarta), Kuningan (South Jakarta), Simatupang (South Jakarta) and Slipi (South Jakarta), as well as reports of gunshots in the area of Palmerah (West Jakarta) were a hoax. Attacks were limited to the Central Jakarta area, police said.

"Our nation and our people should not be afraid, we will not be defeated by these acts of terror, I hope the public stay calm," President Widodo said on TV station MetroTV.

"We all are grieving for the fallen victims of this incident, but we also condemn the act that has disturbed the security and peace and spread terror among our people."

Reuters reported that Indonesian police have arrested four suspected militants believed to have been involved in the gun and bomb assault in the centre of the capital.

A third bomb was deactivated by the bomb squad around 6.30pm AEDT in the Starbucks parking lot in Central Jakarta.

A UN building near the scene was in lock-down. Some other high-rise buildings in the area were evacuated.

Indonesia's central bank is located in the same area, and a spokesman for the bank said a policy meeting was going ahead and a decision on interest rates would be announced as planned later in the day.

Indonesia has been on edge in recent weeks over the threat posed by Islamist militants and counter-terrorism police have launched a crackdown on people with suspected links to Islamic State.

Terror expert Taufik Andrie told Fairfax Media the style of attack was "similar to the one used in Paris, so it's possible it has an ISIS link to it. They used bomb and guns. But it is also possible it's done by a terrorist with a different agenda."

"What I find interesting is, they were targeting random public. They were attacking a mall. In recent years, terrorists in Indonesia, target officials, police, not public. If it's ISIS, then they are politically saying, Indonesian Islam, is not "the Islam". They do not acknowledge it, even though 90 per cent of Indonesia is Muslim, it's not ISIS islam."

The Australian government is advising people to avoid the area. ""Australians should avoid the affected area, limit their movements and follow the instructions of local authorities. The overall level of advice has not changed. We advise you to exercise a high degree of caution in Indonesia, including Bali," it said on its website.

"Our embassy is making urgent enquiries with local authorities to determine whether any Australians have been affected. This incident is still unfolding and it is too early to determine the scale of damage or extent of casualties," the office for Foreign Affairs Minister Julie Bishop said.

Attorney General George Brandis said the Australian Government has offered law enforcement and intelligence assistance to Indonesia following the deadly attacks in Jakarta today.

"I have contacted my counterpart in Indonesia, the Coordinating Minister for Political, Legal and Security Affairs H. E. Luhut B. Panjaitan, to convey Australia's support," he said.

"The offer follows our recent meeting at the Inaugural Indonesia-Australia Ministerial Council on Law and Security in which we agreed to closer operational and technical counter terrorism cooperation."

The United States Embassy has issued an emergency message to advise all US citizens to avoid the area around Sari Pan Pacific Hotel and Sarinah Plaza in Jalan Sudirman, and Thamrin in Central Jakarta.

Security consultancy firm Hillman Jakarta said told people to limit their movements to "essential only" until the city is confirmed as cleared of all gunmen. It recommended people avoid the Jakarta CBD and all government buildings.

Hours before the attacks fugitive al-Qaeda's leader Ayman al Zawahiri posted a message saying south-East Asia "is ripe for a jihadist revival" and urged attacks like the 2002 Bali bombings that killed 202 people, including 88 Australians.

Al Zawahiri primarily focused on an older 24-minute posting on al-Qaeda's propaganda arm As Sahab on the region, mentioning Indonesia, Malaysia and the Philippines.

That video opens with an old CNN interview with Bali bomber Amrozi Nurhasyim who said "My message for Australians: don't come to places like that ever again... I'm sure that my colleagues will bomb it again." Amrozi was executed over the bombings.

Al Zawahiri's posting contained footage of other Bali bombers and radical Indonesian cleric Abu Bakar Bashir. The US has a US$25 million reward for the capture of Egyptian born al-Zawahiri.

The attacks come after another video was posted on the internet claiming that four extremist Islamic groups in the southern Philippines had merged, creating a new potent threat to the region.Leaders of the groups have pledged allegiance to Islamic State. – with Reuters, AAP

Source: http://www.smh.com.au/world/jakarta-attacks-seven-dead-in-multiple-attacks-linked-to-islamic-state-20160114-gm5uvl.html

Jakarta bombings: multiple fatalities after Indonesian capital hit by gun

The Guardian (Australia) - January 14, 2016

Beh Lih Yi in Jakarta and Oliver Holmes in Bangkok – Up to seven blasts and multiple gunfights hit the Indonesian capital Jakarta on Thursday, including one outside the United Nations building in the centre of the capital, leaving at least seven people dead.

Images from the one of the city's busiest precincts showed a small police booth in the middle of one of Jakarta's main roads, twisted by an explosion with three bodies lying in the street. Another shot showed smoke rising in front of a Starbucks cafe.

Jakarta police spokesman Colonel Muhammad Iqbal said seven people including five attackers were killed, adding that the gun battle took place in a cinema housed in the same building as the Starbucks.

The local Metro TV said 14 gunmen were involved in the attack, which started around 10.30am local time (2.30am GMT). Police declared the attack over shortly after 3pm local time (8am GMT).

There were reports that as many as six attackers had remained inside. Police said four suspected attackers had been arrested.

Risky Julianti, 25, a sales promoter at the Sarinah Mall, had just arrived at work and was changing into her uniform when the first explosion went off. She said she heard at least five more blasts and saw three people dead.

"The building was shaking heavily when the blast happened. An office boy shouted 'bomb, bomb' and we quickly ran out to a church nearby," she told the Guardian. "I was very panicked and I was crying. We heard the blasts as we were running to the church."

A UN regional representative, Jeremy Douglas, said he was getting out of his car by the UN office when a "massive bomb" detonated.

"Chaos & we're going into lock-down," he said on Twitter. "Apparent suicide bomber literally 100m from the office and my hotel. Now gunfire," he adding, saying that he heard six explosions and an ensuing gunfight between police and the attackers.

Edward Rees, a UN worker based in Pakistan who was visiting Jakarta, told the Guardian his colleagues in the Jakarta office heard the explosion. "They are holed up in the office awaiting instructions on what to do next."

No group immediately claimed the attack. Helicopters circled above and armoured vehicles entered the area, an upscale neighbourhood where there are luxury hotels and embassies that was cordoned off by the police.

"We have previously received a threat from Islamic State that Indonesia will be the spotlight," police spokesman Anton Charliyan told journalists. But he added that police did not yet know who was responsible.

Indonesian president Joko "Widodo said in a statement on national TV that the situation was under control and called on people to remain calm. "The state, nation and people should not be afraid of, and lose to, such terror acts," he said.

It is estimated that 500 to 700 Indonesians have joined the Islamic State group in Iraq and Syria and the government has expressed concern their return home could spark attacks. Separatist groups also operate in the country.

Yohanes Sulaiman, a lecturer and political analyst at Universitas Jendral Achmad Yani, said that while it was too early to say who was responsible, Indonesian police might have missed the ploy "because this is a new cell, probably radicalised young men and then exposed to Isis propaganda."

He speculated that the attackers came from a newly created organisation as the assault was "amateurish because their target is unclear, and if reports are right, they are supposed to get in the mall, but stopped, asked to go to the police post, then opened fire."

Indonesia suffered its deadliest attack in 2002, when 202 people were killed in three bomb attacks in the tourist hotspot Bali. Several members of Jemaah Islamiyeh, a violent Islamist militia, were convicted.

Major bomb attacks by extremist groups followed until 2009 when a crackdown weakened their operations. The emergence of Islamic State in Syria and Iraq has raised concerns that the networks will be reinforced.

Authorities have increasingly raise alerts after multiple bomb threats last year.

Police said they foiled a major plot with the arrest of several men allegedly linked to planned suicide bombings in the capital during New Year's Eve celebrations. Raids across a number of cities led to the seizure of bomb making materials and a flag similar to the Islamic State emblem.

Up to 150,000 police and soldiers were deployed across the country on the last day of the year.

As the world's most populous Muslim-majority country, Indonesian religious and civil society organisations have stepped up campaigns to fight the spread of violent extremism.

Neighbouring Malaysia and the Philippines have also focused resources on battling Islamic State, which hopes to spread its influence through partnering with domestic militias abroad.

Source: http://www.theguardian.com/world/2016/jan/14/jakarta-bombings-multiple-casualties-after-indonesian-capital-hit-by-suicide-attacks

Abu Bakar Bashir says he was supporting Palestine not terrorism

Sydney Morning Herald - January 12, 2016

Jewel Topsfield and Amilia Rosa, Cilacap – Radical Indonesian cleric Abu Bakar Bashir has claimed he was wrongly jailed for 15 years on terrorism charges when he was merely donating money to support the Palestinian cause in Gaza.

The extremist preacher, who inspired the Bali bombers, is seeking a judicial review of his 15-year sentence for supporting a terrorist training camp in Aceh.

He told a court in Cilacap on Tuesday that police and prosecutors were insulting Allah when they called military training to defend Islam an act of terror.

Security was tight for the elderly cleric's court appearance in the West Javan town with 1000 police deployed outside the court and other buildings in the town.

Hundreds of supporters attended yelling "Allahu Akbar (God is great)". Some taunted police, claiming they were thugs who cowered before Americans and Malaysians.

Bashir's lawyer, Adnan Wirawan, said after the hearing that Bashir had donated 150 million rupiah (about $AUD15,000) for weapons and military training in Aceh to assist with the liberation of Palestine not carry out terrorism acts in Indonesia..

"We have five witnesses who will testify in two weeks that donations made by Mr Abu Bakar was for Palestine," he said. "The witnesses are stating that donations made by our client was legal."

Bashir was initially convicted of conspiracy over the Bali bombings that killed 202 people, including 88 Australians, but his conviction was quashed after he had served 26 months jail.

However he was arrested again in 2010 and jailed for 15 years for supporting a militant training camp in Aceh.

In a statement read to the court, Bashir told the court he was only helping his fellow Muslims by sending money to support the Palestinian struggle.

"I was not imprisoned because of law, but because of a fabricated story," he said. "I was accused of being an ally of terrorism when they (the militants) weren't training to fight against the country (Indonesia).

Bashir said he was obeying Allah, who ordered Muslims to defend themselves in the Koran. "The police and prosecutor are insulting Allah, the prophet, because they are labelling training to defend Islam as an act of terror," he said.

Bashir said he consulted the Koran after learning on the internet about the military training camp in the mountains of Aceh. "After I reviewed the Koran, I understood that the physical and weapons training in Aceh was intended to fight for Islam... that the training is part of an Islamic duty that needs to be carried out by Muslims, because Allah orders it."

Bashir warned prosecutors and judges who caused problems for the mujahidin (those engaged in jihad) that their actions would not be taken lightly.

"Before you die, repent, don't relax and smile while enjoying the small salary you make from the infidel and the assisting dollars given by the American firaun (pharaohs)," he said. "Be very careful because you will suffer unimaginable pain in hell."

Indonesia was on the highest possible alert for a terror attack over the holiday period, with 11 alleged terrorists – suspected to be planning an attack in December – arrested in the lead-up to Christmas.

Cilacap police spokesman Raden Bintaro said 1000 officers were securing the court and other vital buildings in the Central Javan town. "We asked one school near the court to take the day off as a precaution," he said.

The number of media and Bashir supporters allowed inside the court was strictly controlled. Hundreds watched proceedings from a television inside a media tent in the courtyard. The case was adjourned for two weeks when the witnesses will present their evidence.

Source: http://www.smh.com.au/world/abu-bakar-bashir-says-he-was-supporting-palestine-not-terrrorism-20160112-gm4cra.html

Hard-line & vigilante groups

Royal conflict could benefit vigilante groups, analyst warns

Jakarta Post - January 12, 2016

Bambang Muryanto, Yogyakarta – Ongoing conflict within the Yogyakarta royal family risks triggering a rise in intolerance in the province, according to observer of politics and Islam Noorhaidi Hasan of the Yogyakarta Sunan Kalijaga State Islamic University (UIN).

Speaking at a discussion forum on the dynamics and challenges of plurality in Yogyakarta held at the provincial office of the Religious Affairs Ministry on Monday, Noorhaidi said that internecine warfare among the political elite could see the latter's interests converge with those of vigilante and militant groups.

"The situation in Yogyakarta could become more problematic as the Palace conflict grows following the issuance of the sabda raja and dawuh dalem," he told the forum, which was jointly organized by the Yogyakarta Interfaith Forum (FKUB), Dian Interfidei and the Alliance of Independent Journalists (AJI).

Last year, Yogyakarta Sultan Hamengkubuwono (HB) X issued a sabda raja (royal statement) and dawuh dalem (royal order) naming his eldest daughter Gusti Kanjeng Ratu (GKR) Mangkubumi as his heir. According to Law No. 13/2012 on Yogyakarta's special status, the reigning sultan is also Yogyakarta governor.

The move, however, met protest from the potentate's brothers, who cited the long-standing tradition of appointing male heirs; the royal family has been in conflict since.

Vigilante and militant groups, Noorhaidi warned, could emerge and become stronger while the political elite was in a state of turmoil. In such a situation, he said, the political elite needed support, which unsavory groups could provide or mobilize, in return for support for their own expansion.

Noorhaidi, who is also director of UIN Sunan Kalijaga's postgraduate program, noted that as discourse on Yogyakarta's status increased and calls for power-sharing grew, militant and vigilante groups were similarly expanding.

Yogyakarta, he said, had been home to militant groups since 2000. Among those with headquarters in the province include the Indonesian Mujahidin Council (MMI) and Laskar Jihad.

Other groups have also emerged in recent years, conducting active raids against perceived immorality; they include the Anti-Immorality Movement (GAM), Islamic Jihad Front (FJI) and Indonesian Islamic Front (FUI).

"My research suggests that the reason such groups thrive in Yogyakarta is linked to the populace's openness, its reluctance to reject anything, even radicalism," Noorhaidi said.

Yogyakarta, long known for its tolerance, has in recent years seen a drastic reversal. The Wahid Institute in 2014 ranked Yogyakarta as the second-least tolerant province in Indonesia, and the province last year saw 12 recorded cases of intolerance.

Separately, Yogyakarta Unity and Community Protection Agency (Kesbanglimas) head Agung Supriyono noted the difficulty of maintaining plurality among Yogyakarta's various ethnicities.

Although cases of intolerance were relatively high, he added, no large-scale social conflict had ever erupted in the province. "When conflict does occur, all parties are able to deal with it quickly," he said.

The vigilante group most frequently recorded by The Jakarta Post committing intolerant acts is the FUI, a group against which no legal action has ever been taken. Members of the FUI, indeed, are permitted by authorities to participate in the management of the bus terminal in Ngaben and in offering services to take tourists from Ngaben to the Yogyakarta Palace or the city center.

Source: http://www.thejakartapost.com/news/2016/01/12/royal-conflict-could-benefit-vigilante-groups-analyst-warns.html

Freedom of religion & worship

Disabled urges worship access

Jakarta Post - January 15, 2016

Yogyakarta – An inter-religion community of young disabled members and a number of non-governmental groups in Yogyakarta have sent a petition to President Joko "Jokowi" Widodo and religious organizations to demand an end to discrimination against the disabled in matters of worship and religious education.

"The petition was made given the complaints by disabled groups that face difficulty accessing houses of worship and obtaining the teachings of religious leaders because facilities are only for so-called normal people," Dria Manunggal director Setia Adi Purwanta told reporters in Yogyakarta on Thursday.

Based at the Dria Manunggal office, various NGOs, including the Yogyakarta Legal Aid Institute, Bhinneka Tunggal Ika National Alliance, Inter-religious Youth Group and Inter-Religion Disabled Youth, signed the petition consisting of 11 points.

"Discrimination takes place because religious authorities remain shackled by normal ideology and the thinking that houses of worship are for the able-bodied majority. People with disabilities are regarded a minority and have not been taken into account," said Setia.

Source: http://www.thejakartapost.com/news/2016/01/15/islands-focus-disabled-urges-worship-access.html

Outlawed Gafatar group may cause social tension, violence: BNPT

Jakarta Post - January 13, 2016

Jakarta – The National Counterterrorism Agency (BNPT) has said it is concerned that the outlawed Fajar Nusantara Movement's (Gafatar) activities might trigger social friction, which could lead to violence, although the agency was not worried about terror threats.

BNPT spokesperson Irfan Idris said that Gafatar, established in 2012, was not proven to have committed terrorist acts. The presence of the organization, however, had affected Islam in Indonesia, he said.

"Gafatar did not carry out any physical terror threats. However, it is obvious that this movement has threatened religious beliefs. Gafatar has terrorized Islam in Indonesia because it is far from the mainstream Islamic teachings acknowledged by the government," Irfan said as quoted by kompas.com on Wednesday.

He further said that the BNPT had long monitored the organization, which continually changed its name. The agency was regularly spreading information on the dangers of Gafatar in its base areas to prevent the movement from growing further, he added.

"But we don't yet have exact data on the number of Gafatar followers in Indonesia. Information we have received says that this movement has continued to recruit followers," said Irfan.

He said the BNPT was implementing preventative measures, such as routinely holding dialogues with community members and providing insights about the organization through education channels.

"So, people will not instantly accept its ideology if they are approached by the organization's members," said Irfan.

Earlier, Home Minister Tjahjo Kumolo said Gafatar was not registered with the ministry as an official organization. It was suspected that the organization was connected to recent reports of the disappearance of a number of people across Indonesia.

"We have monitored the organization via the ministry's directorate general of politics and found that at the national level, Gafatar is not registered as an official organization," Tjahjo said on Tuesday. (ebf)(+)

Source: http://www.thejakartapost.com/news/2016/01/13/outlawed-gafatar-group-may-cause-social-tension-violence-bnpt.html

Islamic law & morality

Women hand out free veils in Indonesia to promote stricter form of Islam

ABC Radio Australia - January 14, 2016

Samantha Hawley – Every Sunday in the centre of Jakarta, tens of thousands of Indonesians flock to what is one of the most congested roads in the city.

From early to mid-morning, there is an opportunity to breathe freely on what is known as "car-free Sunday".As the name suggests, cars are banned and the road is opened to a sea of humanity in a city where wide open spaces are few and far between.

This particular Sunday, a group of women see an opportunity to preach a stricter form of Islam. The group's leader, Triken Sholihat, fears Indonesian Muslim women are becoming too liberal in what they wear.

"We will help them to wear the head scarf properly while also explaining the reason and importance of wearing the hijab according to sharia," she tells the ABC. "Many women are not aware that wearing the hijab is obligatory according to the Koran."

Ms Sholihat and her team have brought with them boxes of coloured veils which they distribute for free to women whose head coverings are either non-existent or, in Ms Sholihat's view, too liberally worn.

"We are campaigning for women to wear the head scarf properly, though wearing face cover is not compulsory, it is an option," she says.

She says the hijab should never be transparent and should be long enough to cover a woman's chest. She says some Indonesian women are covering their hair but not their upper body, which is attractive to men.

Some women very willing to cover up more

With the veils in hand the women approach those passing by to give the garments away and teach the recipients "the best way to wear them". Intan Permatedewi jumps at the chance for a free veil and lesson in wearing it.

"I did try and wear a hijab before, but some parts are still exposed, while this one is according to sharia and is fully closed," she says. "From now on I will be wearing the hijab in line with sharia guide."

Ismawati, 12, is also approached and agrees to a dressing lesson. "I only wear a hijab at school. They asked me if I'd be willing to wear one now and I said I will," she told the ABC.

An older woman, Nining, is also happy to oblige. "My hijab was not covered enough like this one, a long cover. With God's will, I will correct the way I wear the hijab," she says.

Shift to Arab interpretation of Islam in Indonesia

Indonesia is widely seen as a moderate Muslim nation, but there is concern that some religious teachings are changing and that beyond the hijab, women are being urged to also cover their faces.

The head of Indonesia's largest Muslim organisation, Nahdlatul Ulama, which has more than 40 million members, says there is a growing trend that is seeing a shift to an Arab interpretation of Islam, which in part is also leading to more Indonesian women wearing full face-covering veils.

"The indication is that there has been a very radical change, not only the change in thinking but the way one is presenting themself in fashion," Nahdlatul Ulama chairman Aqil Siradj says.

And while there are no official figures, he believes there are noticeably more Indonesian women choosing to fully cover their faces.

"I learnt Islam from all parts of Indonesia and none of the Ulemas ordered me to wear Arabic long dress, none of them ordered their female students to wear face covers," he says.

Amanda, 32, started wearing niqab, a veil that covers the entire body and face apart from the eyes, after she graduated from university a decade ago.

"Wearing a face cover is about the strength of faith in somebody, if someone lacks the faith they won't be able to wear a face cover," she says.

"People are wearing face covers because of their obedience to God, what I see from year to year are more women covering their faces."

'When I took it off they were shocked'

But while many Indonesian women choose to wear headscarfs and increasing numbers are donning full face covers, there are also those who are deciding to take them off.

Nur Masuroh removed her hijab a decade ago. "At the time it was hard because I used to wear a large head scarf, and I was amongst friends who were involved in Islamic activities and when I took it off they were shocked," she says.

But she says in contrast to her decision, more women in her circle of friends are now wearing full face cover. "Lately, I've seen that many people, friends and others wear it [face cover]. They started wearing small head scarves and then gradually wore larger ones and in the end cover their face," Ms Masuroh says.

"We can see them in train stations, public places. Back in the early 2000s there were only a couple of them around and now there are many more."

But for now there is only anecdotal evidence of a shift in Islamic teachings and dress and while Indonesia is the world's largest Muslim nation, it is also the world's third-largest democracy, meaning most Indonesian women should be able to wear whatever they like.

Source: http://www.radioaustralia.net.au/international/2016-01-14/women-hand-out-free-veils-in-indonesia-to-promote-stricter-form-of-islam/1535770

Agriculture & food security

Local salt prices slump because of oversupply of imported salt

Jakarta Post - January 12, 2016

Anton Hermansyah, Jakarta – The local price of salt has been dropping because of an abundance of imported salt that had been entering the country during the peak harvest period from June to September, ignoring the rule that prohibits such imports at that time.

In the peak harvest period of 2015, salt prices fell to Rp 200 per kilogram from the break-even fair price of Rp 500 to Rp 600 per kg. The salt farmers made the situation worse by selling their product despite the low price.

"Along with that, there is an NaCl percentage problem. The government insists that the NaCl percentage in the local salt is less than 90 percent, thus imports are still needed," said a researcher from the Public Coalition for Fishery Justice (KIARA) Abdul Halim in the press conference on Jan. 10.

However, the imports have been decreasing and the ratio between imported salt and the local product was around fifty-fifty. According to 2014 data, there were 2,190 tons of harvested salt and 1,950 tons of imported salt in the country.

According to Suhana, the problem with traditional salt production is that the water is contaminated with mud. "With the modern method, crystal-clear salt could be obtained and the production length can be cut to seven days from the traditional duration of 10 days," he said.

The logistics system should be improved as well, Suhana continued, as the traditional salt farms were located away from the main roads, which complicated the ability of big trucks reaching them. Thus, the farmers transport the salt inefficiently with motorcycles. (ags)

Source: http://www.thejakartapost.com/news/2016/01/12/local-salt-prices-slump-because-oversupply-imported-salt.html

Village & rural life

Ministry to involve CSOs in village development project

Jakarta Post - January 14, 2016

Nurul Fitri Ramadhani, Jakarta – The Villages, Disadvantaged Regions and Transmigration Ministry has enlisted the help of civil society organizations (CSO) to address problems at the village level.

"CSOs will have direct involvement with the community. They will collaborate with us to tackle problems within the villages. We have to create innovations based not only what the government wants but what the community wants," the Villages, Disadvantaged Regions and Transmigration Minister, Marwan Jafar, said in a meeting with CSOs and experts on Wednesday.

Several CSOs attended the meeting including representatives from the Alliance of Indigenous People (AMAN), the Agrarian Reform Consortium (KPA), the Indonesian Farmers Union (SPI), human rights watchdog Setara Institute and the advocacy and social policy research institute Prakarsa.

Government policies with regard to villages, Marwan said, do not always match with what villagers really need.

Marwan said that such a discrepancy had occurred in the agrarian sector where problems such as land grabbing continued between villagers and companies because the government did not have a national database on land conflicts.

For data on poverty and ecological crisis at the village level, the government continues to rely on the data supplied by the Central Statistics Agency (BPS), National Development Planning Agency (Bappenas) and the Social Affairs Ministry, all of whom have produced different sets of data.

Marwan believes that the involvement of CSO and experts could help address the problem. "With such a working group, we can share information and explore the best recommendations with regard to future steps. Also, civil society groups could conduct better research on the root cause of agrarian conflicts," Marwan said.

The initiative to involve CSOs in addressing problems at the village level is a follow up to President Joko "Jokowi" Widodo's plan to accelerate development in the country's 73,000 villages, several of which are located in border areas, Marwan said.

The government expects to set up 2,000 developed and independent villages in the next five years and has doubled the allocation of village funds to around Rp 47 trillion (US$3.4 billion) this year to achieve the target.

This year, the village funds are reportedly to be spent entirely on infrastructure projects in the villages; to repair damaged roads, construct irrigation networks and for clean water procurement.

Marwan said the government would hire local villagers as workers and use construction materials, such as cement, sand and bricks, derived from the villages themselves.

"I know that there must be many complaints from CSOs and even from the villagers about the use of the funds, demanding that the funds go toward improving the quality of education and the health sector, but it's the President's decision," Marwan said.

The executive director of the independent watchdog on state and local budgets Pattiro, Sad Dian Utomo, said that the government needed to make sure that the infrastructure projects and investments are not harmful to the local environment.

"Make sure that the projects contribute to the improvement of the villagers lives," Sad said.

Source: http://www.thejakartapost.com/news/2016/01/14/ministry-involve-csos-village-development-project.html

Housing & property

Indonesia allows foreigners to own landed houses

Jakarta Post - January 13, 2016

Jakarta – The government now allows foreigners living in Indonesia to own houses as part of efforts to boost the economy, following the release of a regulation signed by President Joko "Jokowi" Widodo.

Jokowi signed a government regulation on Dec. 22 regarding house ownership for foreigners living in Indonesia, according to the official website of the Cabinet Secretariat on Tuesday.

The regulation stipulates that foreigners who hold resident permits are allowed to own houses under the Right to Use Title.

"Foreigners living in Indonesia are those who are not Indonesian citizens but whose presence provides benefits through opening businesses, working or investing in Indonesia," the regulation stated as quoted by setkab.go.id.

The properties can also be inherited if the owner dies. The heirs must also have resident permits or be Indonesians who married foreigners.

According to the regulation, foreigners are able to own landed houses and apartments. They can own their houses for up to 80 years. The first Right to Use Title lasts for 30 years and it can be extended twice, for 20 and 30 years.

The regulation also stipulates that if the foreigner house owners and the heirs no longer live in Indonesia, they must release or transfer the house to other parties in accordance with the requirements.

"If within a year the house has not been released or transferred, the house will be auctioned by the state and given to the owner of the land title on which the house is built," the regulation stated.

The Agrarian and Spatial Planning Ministry is set to clarify further details on the release and transfer of house ownership in a ministerial decree.

The government previously allowed foreigners to own luxury apartments worth at least Rp 10 billion as part of its first financial stimulus package launched last year in a bid to boost the economy, especially in the sluggish property sector. (rin)(+)

Source: http://www.thejakartapost.com/news/2016/01/13/indonesia-allows-foreigners-own-landed-houses.html

Governance & administration

Current account deficit narrows in 2015: Bank Indonesia

Jakarta Post - January 12, 2016

Ayomi Amindoni, Business – Indonesia narrowed its current account deficit (CAD) to US$17.5 billion (Rp 243.25 trillion) in 2015, a 35 percent improvement on the 2014 deficit, which stood at $27 billion.

Bank Indonesia Governor Agus Martowardojo said one of the drivers behind the improvement was the narrowed deficit in the services transaction account, from $34 billion by the end of 2014 to $31 billion in 2015.

"In 2014, there was a $34 billion services transaction account deficit, but it improved in 2015 to $31 billion. The $31 billion [deficit] is huge. However, the $17 billion current account deficit is an improvement," said Agus at the House of Representatives complex in Jakarta on Monday.

Furthermore, Agus mentioned that in the second and third quarters of 2015, the income account surplus helped ease the CAD. "In the fourth quarter, it was more positive supported by a loan from the government, as well as global bonds and loans from the Asian Development Bank," he said.

In the third quarter of 2015, the balance of payments (BoP) revealed a $1.2 billion surplus in the capital account, slashed by almost a half from the $2.2 billion surplus in the second quarter.

Meanwhile, the CAD in the third quarter of 2015 reached $4 billion, equal to 1.86 percent of gross domestic product (GDP). It was slightly down from $4.2 billion or 1.95 percent of GDP in the second quarter. (ags)(+)

Source: http://www.thejakartapost.com/news/2016/01/12/current-account-deficit-narrows-2015-bank-indonesia.html

Johan Budi appointed presidential spokesman

Jakarta Post - January 12, 2016

Jakarta – President Joko "Jokowi" Widodo appointed former Corruption Eradication Commission cadre Johan Budi Sapto Pribowo as his spokesman on Tuesday, citing Johan's vast experience as a vocal representative.

Johan, Jokowi said, would serve, as of Tuesday, as part of his special staff. "I know Johan Budi is very experienced and he will help me to communicate the government's programs to the public. I'm delighted to have another competent person helping me here at the Palace," he told journalists at the State Palace as quoted by kompas.com.

The appointment was widely expected, with Johan having visited the Palace several times in recent weeks to meet the President and Presidential Chief of Staff Teten Masduki.

Johan, a former journalist at Tempo, spent most of his 10-year career at the KPK as a spokesman.

He also served as head of the prevention division at the commission for a year before Jokowi appointed him acting commissioner in February following the dismissal of then KPK chairman Abraham Samad and commissioner Bambang Widjojanto, who had been named suspects by the police.

Johan was one of 10 candidates who underwent screening at the House of Representatives ahead of elections to choose commissioners to serve between 2015 and 2020.

However, he failed to garner enough votes during the ballot at House Commission III, which oversees legal affairs. He then resigned from the KPK in December, stating that he felt 10 years at the institution was enough, a move praised by many. Johan had previously said that he would accept an offer to become presidential spokesman. "I am ready to help President Jokowi," he said. (rin)(+)

Source: http://www.thejakartapost.com/news/2016/01/12/johan-budi-appointed-presidential-spokesman.html

Tax shortfall in 2015 worst in a decade

Jakarta Post - January 11, 2016

While tax revenues reached an all-time record of Rp 1.06 quadrillion (US$76.1 billion) in 2015, they fell 18 percent or Rp 234 trillion short of the target of Rp 1.29 quadrillion set by the government and lawmakers in the state budget, marking the worst shortfall in a decade.

Based on budget reports that thejakartapost.com collected, 18 percent is the biggest shortfall in 2005-2015 taxation period. The second-biggest was a shortfall of 9 percent in 2014. 2008 was the only year when the tax office recorded a surplus in tax revenue over the targeted amount.

Last year's tax revenue comprised of non-oil and gas tax income of Rp 1.01 quadrillion and oil-gas tax revenue of Rp 49.7 trillion, Finance Minister Bambang Brodjonegoro explained in Jakarta, as reported by kompas.com.

In 2015, the ministry recorded a 12.05 percent increase in non-oil and gas revenue, which compares to revenue growth of 7.8 percent in 2014.

Despite failure to meet the tax revenue target set out in the state budget, Bambang stressed that the tax office in 2015 had collected more non-oil and gas tax revenues than ever before.

"Amid the economic slowdown [...] it managed to grow. Non-oil and gas tax revenue of Rp 1,011 trillion is a new record in Indonesian history," he said, noting that this reflected the tax office's performance, as it was purely collected by tax officials.

Meanwhile, oil and gas tax revenue slumped by 43.1 percent to Rp 49.7 trillion in 2015, from Rp 87.5 trillion in 2014. According to Bambang, the fall in crude oil prices and low crude oil production in the country are to blame.

In the 2016 state budget, the total tax revenue target has been set at Rp 1.36 quadrillion, comprising non-oil and gas tax income of Rp 1.32 quadrillion, and oil-gas tax income of Rp 41.4 trillion.

University of Indonesia taxation expert Darussalam urged the government to revise down the 2016 revenue target to a "more realistic" level.

The 2015 tax shortfall prompted then-head of the Tax Office, Sigit Priadi Pramudito, to step down from his position on Dec. 1. (ami/ags)(+)

Source: http://www.thejakartapost.com/news/2016/01/11/tax-shortfall-2015-worst-a-decade.html

Parliament & legislation

Report filed against Setya Novanto

Jakarta Post - January 12, 2016

Erika Anindita, Jakarta – Government watchdog Civil Society Group for State Officials Observation (LMPPN) filed on Monday a report with the House ethics council (MKD) against former House of Representatives speaker Setya Novanto for an alleged ethics breach.

The group reported Setya to the council in regard to a letter reportedly issued by the Golkar Party politician that the LMPPN claimed indicated a conflict of interest concerning his position as a state official.

The letter, dated Oct. 17, 2015, circulated among the public in October last year. In it, Setya purportedly instructed state-owned oil and gas company Pertamina to make a fuel storage payment for a fuel terminal in Merak in Cilegon, Banten, to facility operator PT Orbit Terminal Merak (OTM), which was reportedly one of Setya's business associates. OTM served as Pertamina's fuel storage partner company.

Setya was House speaker at the time. The LMPPN has accused the lawmaker of using his position as House speaker for personal gain in the matter.

LMPPN spokesperson M. Junaidi said it was expected that the House ethics council would investigate the case and question relevant parties instead of merely accepting Setya's denial.

"We hope this can act as an example to encourage other House members to be accountable and transparent. As House members, they should not prioritize their personal interests above their duties," Junaidi told thejakartapost.com on Monday evening.

Separately, House ethics council deputy chief Sufmi Dasco Ahmad confirmed that it had received the group's report, saying that it had been submitted at 10:58 a.m. on Monday.

Sufmi said, however, that the council would continue to focus on executive-related matters as the House was still warming up after a long recess and Ade Komarudin had only just been inaugurated as the new House speaker, replacing Setya who stepped down in December over an alleged ethics violation related to gold and copper miner PT Freeport Indonesia's mining contract extension renegotiation.

Sufmi said the MKD would process the LMPPN's report along with a pile of other reports it had received. (ebf)(+)

Source: http://www.thejakartapost.com/news/2016/01/12/report-filed-against-setya-novanto.html

Ade Komarudin inaugurated as new House speaker

Jakarta Post - January 11, 2016

Erika Anindita, Jakarta – The House of Representatives (DPR) installed on Monday Ade Komarudin as the new House speaker, replacing Setya Novanto who stepped down on Dec.16 over an alleged ethics breach.

"We, House executives, congratulate the new House speaker. Hopefully, his inauguration will strengthen our institution," House Deputy Speaker Fahri Hamzah said after Ade's inauguration on Monday afternoon.

He was inaugurated during a House plenary meeting that marked the first plenary meeting in the House's new hearing session this year, at the House complex in Senayan, Central Jakarta, on Monday afternoon.

The House's consultative body (Bamus) chose Ade as House speaker to replace Setya in a meeting on Monday morning.

The meeting, which was led by House leaders, faction leaders and the House secretary-general, reportedly did not discuss a letter from the Golkar Party's splinter faction led by Agung Laksono that nominated Agus Gumiwang Kartasasmitas as House speaker.

"The letter was not discussed because the leadership meeting result included as a consideration a letter submitted by the Golkar Party with chairman Aburizal Bakrie and secretary-general Idrus Marham," said the House's NasDem Party faction deputy chairman, Johnny G.Platte, as quoted by kompas.com after the Bamus meeting at the House complex on Monday.

Prior to his appointment as House speaker, Ade served as deputy chairman of the Golkar Party's central executive board (DPP), which was elected at the party's national meeting (Munas) in Bali in November 2014 and led by Aburizal.

Johnny said the House's decision to appoint Ade was in line with Article 87 (4) of the 2014 Legislative Institutions (MD3) Law. The article stipulates that if a House speaker steps down, he or she shall be replaced by a successor from the same political party.

Johnny further explained that shortly after Setya resigned from his position over the alleged misuse of the names of President Joko "Jokowi" Widodo and Vice President Jusuf Kalla in an attempt to renegotiate Freeport Indonesia's mining contract extension, the Aburizal camp proposed Ade as his successor.

Johnny explained that when the Setya case occurred, the DPP Golkar formed at the Riau Munas in 2009, which was led by Aburizal, was still legally valid and Ade's nomination was therefore valid.

"No faction rejected [Ade]. We agreed that this process could continue, including considering formal and procedural principles on the need to fill House leader positions, so that the House's work could run well and meet public expectations," said Johnny. (ebf)(+)

Source: http://www.thejakartapost.com/news/2016/01/11/ade-komarudin-inaugurated-new-house-speaker.html

PKS official Fahri alleges party bid to oust him as house deputy speaker

Jakarta Globe - January 10, 2016

Jakarta – Prosperous Justice Party politician Fahri Hamzah on Sunday confirmed that a party stalwart had urged him to step down as deputy speaker of the House of Representatives, as the party drifts away from opposition bloc the Red-White Coalition.

Salim Segaf Al-Jufri, the chief patron of the party better known as the PKS, had argued he should step aside, Fahri told Detik.com on Sunday.

"There was a private conversation with the PKS chief adviser. But because the request was personal and not a decision of the party as an institution, I responded on a personal level as well," Fahri said, declining to elaborate.

Other PKS officials have been more vocal about him stepping down, Fahri said, pointing to vague remarks made to the media.

"I feel the media reports are ways to shape public opinion against me that I have done something wrong. In my own perspective I have never done anything wrong to violate the law or party regulations," he said.

Calls for him to stand down have intensified since colleague Setya Novanto of the Golkar Party resigned from his post as speaker of the House last month. Setya resigned shortly before the House Ethics Council was due to issue a verdict against him for allegedly attempting to extort mining giant Freeport Indonesia out of $4 billion in shares.

Fahri was a vocal supporter of Setya throughout the ethics tribunal, including making a last-minute bid to replace an ethics council member hostile to the speaker – Akbar Faisal of the National Democratic party (Nasdem) – on the day the council convened to discuss the case. Akbar in turn reported Fahri for ethical violations.

PKS chairman Shohibul Iman recently said the party would not defend Fahri during the ethical violation investigation, before adding that the party had launched an evaluation of all members, particularly those holding public office.

Several senior PKS officials have spoken publicly about the evaluation, but none would explicitly identify Fahri as being among the members under scrutiny.

Speculation of a falling-out between Fahri and other PKS officials escalated after party leaders held a private meeting with President Joko Widodo last month – with Fahri noticeably absent.

In response, Fahri criticized Shohibul for demonstrating support for the president's administration, adding that regardless of his party's decision, he would remain loyal to the opposition bloc.

Source: http://jakartaglobe.beritasatu.com/news/pks-official-fahri-alleges-party-bid-oust-house-deputy-speaker/

Jakarta & urban life

Pluit residents at wits' end over new road to Podomoro property

Jakarta Post - January 9, 2016

Evi Mariani and Dewanti A. Wardhani, Jakarta – Hendrik Thee has been fuming for months about what is happening in front of his house on Jl. Pluit Barat Raya in North Jakarta, where heavy machinery takes up half the street, scraping away an almost 10-meter-wide section of the soil embankment of the canal, uprooting trees and wrecking residents' gardens for "22 hours a day".

No one from the project, which they later learned was an elevated road, ever talked to him about what was happening and local authorities have no answer as to why the residents have to bear the noise pollution, air pollution and the tremors from the construction throughout each day and evening.

"Last night, they worked until 2 a.m.," Hendrik said. He said he had been worrying about the welfare of his 1-year-old and 2-year-old children and his 90-year-old grandmother with all the dust and cement particles entering his house despite his door being closed.

His neighbors, William Hartono, Oky Santosa and Kenan share his sentiment. In fact, hundreds of other residents in the area raised objections to the project, and dozens of them hung banners on their second floor balconies and garden walls, protesting the project – an elevated access road to Agung Podomoro Land's Green Bay apartment and the planned Pluit City on man-made Islet G.

They have several objections including concerns that the elevated road will compromise the strength of the canal embankment, raising the risk of flooding. "If the embankment breaks, hundreds of houses here will drown," William said.

Jl. Pluit Barat Raya is a relatively quiet local road along the east side of Karang Canal, which serves as local access to the luxury housing of Pluit. Along the street are dozens of luxury houses.

In fact, the caretakers of Satya Dharma Buddhist temple and Shiva Mandir Hindu temple also raised objections in a recent consolidation meeting between several residents.

The issues the places of worship raised, among others, were the possibility of noise pollution after the elevated road opened and the loss of parking space for thousands of their congregation members. Worshippers usually park their cars on the wide space on the side of the canal. That space will be gone and replaced by columns for the road.

The residents have spoken with several city officials and sent letters to Jakarta Governor Basuki "Ahok" Tjahaja Purnama, but they finally found out about what was happening in front of their houses from a marketing agent of Pluit City, who gave the residents Pluit City marketing material.

The elevated road is included in the marketing information as "easy access" from the Sedyatmo toll road. The 3D rendering of the plan shows that the road will have two directions, from and to Jl. Pluit Karang Utara.

The city administration did not receive the plan and The Jakarta Post's several attempts to obtain the plan for the elevated road have also been fruitless. But, on a YouTube video uploaded by the city administration on Nov. 2, the head of Bina Marga (Roads) Agency Yusmada Faizal told a city meeting, where Ahok was present, that the road would only be one direction, from Jl. Pluit Karang Utara heading south.

Pramono, a PR officer for Podomoro's subsidiary PT Muara Wisesa Samudra, told the Post the road was built at the request of the city administration and that he was yet to get updated information about whether the road would be two directions or one. "The city administration knows what's best for the public, and we will follow their instruction," he said.

The residents said that later they found out that the elevated road, connecting Jl. Pluit Selatan Raya with Jl. Pluit Karang Utara, was not included in the bylaw on spatial planning for 2010-2030.

Ahok, however, claimed recently that it did not violate the bylaw and if it did he would "just change the spatial planning".

William has also raised questions about the permits and the detailed plan. The city administration has never given the residents any documents.

The residents have also prepared a legal action as a last resort if the city administration does not stop the project. "We do not need the road. It's not congested here, and we know more roads do not mean less traffic. The new elevated road will soon get congested, we know that," Kenan said.

Source: http://www.thejakartapost.com/news/2016/01/09/pluit-residents-wits-end-over-new-road-podomoro-property.html

Armed forces & defense

Army to deploy to eastern outer islands

Jakarta Post - January 12, 2016

Nani Afrida, Jakarta – The Indonesian Military (TNI) will deploy more personnel and additional weapons to protect eastern outer islands, which currently lack security, saying an improved watch on border areas will prevent smuggling, sea crimes, incursions and other threats to Indonesia's sovereignty.

"[TNI] commander Gen. Gatot Nurmantyo is paying more attention to the outer islands. These areas should be managed and equipped not only with additional personnel, but also with weaponry," said Army spokesperson Brig. Gen. Sabrar Fadhilah.

The reinforcement, he said, would be adjusted to conditions on the outer islands, including poor infrastructure that renders them unsuitable for large troop numbers and heavy weapons.

"If we gave [the personnel] motorcycles, it would be useless because the areas have no proper roads. We will calculate and manage the facilities needed, including the personnel because they will directly face the threats, such as incursion, smuggling or any crimes involving sea lanes," Sabrar said.

He stressed that the TNI would also add more security posts in the eastern border area and outer islands, but the decision would depend on the threat level and needs.

"If we learn of threats, of course we will establish security posts, however, if the area just needs monitoring, we don't have to build a security post," Sabrar said.

He declined to elaborate on the estimated number of personnel that would be deployed or how many security posts would be established.

"We will manage gradually by deploying the personnel first, then the weapons later to support their tasks," he said, adding that the military would focus on eastern outer islands near Maluku and Papua.

Gatot earlier revealed to journalists that many outer islands located in eastern Indonesia lacked security personnel and were abandoned.

He cited for example Saumlaki, the main town on Yamdena Island in the southeastern border of Maluku Islands, which has only two Navy security posts and two units of the village supervisory non-commissioned officers (Babinsa).

"This island has one radar, however, if the radar detects foreign planes entering Indonesian territory, the personnel just pray the plane will leave the area soon, because it is impossible to inform Kohanudnas [the National Air Defense Command] to deploy fighter jets from Makassar, South Sulawesi," Gatot said.

Other outer islands such as Liran, Wetar, Kisar and Leti in Southwest Maluku and Alor in East Nusa Tenggara (NTT), lack infrastructure and suitable accommodation.

The Navy chief of staff, Adm. Ade Supandi has said the Navy is developing more main naval bases in several areas in Indonesia to guard the eastern border areas. Some of the naval bases are in Pontianak, West Kalimantan, in Tarakan, North Kalimantan and Sorong, Papua.

It has been reported that the TNI will prioritize building infrastructure as a solution to problems in the outer islands and border areas next year. "We will be prioritizing outer islands and border areas," Gatot said after closing an executive meeting at the military headquarters in Cilangkap, East Jakarta, last month.

Source: http://www.thejakartapost.com/news/2016/01/12/army-deploy-eastern-outer-islands.html

Army strengthens border security areas, considers forming new military

Jakarta Post - January 9, 2016

Marguerite Afra Sapiie, Jakarta – The Indonesian Army will further strengthen military posts in the Indonesian regions bordering other countries with the objective of developing infrastructure and human resources, Army spokesperson Brig. Gen. Muhammad Sabrar Fadhilah said on Friday.

He also said the Indonesian Military would mull over establishing new Military Commands in Papua and Sulawesi.

According to Fadhilah, military posts in border regions now lacked military personnel and infrastructure that supported their mobility, such as roads, transportation and weapons systems, making the bases unable to effectively be at the forefront of safeguarding the country.

"We will improve the infrastructure and place more personnel, since they are the ones who will directly face threats of invasion or smuggling over the sea," Fadhilah told journalists. He gave as an example that currently only two military personnel were placed in a military post on Liran Island, the westernmost island of the Maluku province.

Border regions susceptible to attacks have become a priority, according to Fadhilah, particularly regions such as Maluku, Papua, the Kalimantan borders, Aceh (North Sumatra) and small islands that are mostly located in eastern Indonesia.

The form of development could not be standardized for all military posts in Indonesia, Fadhilah said, since the distinct conditions shaped what needed to be improved in each region.

"For example, speedboats for military personnel placed on islands will bring greater benefits for mobility than motorcycles," Fadhilah said.

Meanwhile, the Army would also aim to form Military Command (Kodam) 13 in Manado, North Sulawesi, to further intensify control of the border regions and to further enhance the security there.

Kodam 13 would oversee three regional commands (Korem) in Manado, Gorontalo province and Palu in Central Sulawesi. The Army would also establish more military district commands (Kodim), the creation of which would be based on necessity.

"This [the formation of new military commands] is for the sake of the national interest, particularly to safeguard Indonesia's sovereignty because the Indonesian Military is responsible to protect outer border regions," said Fadhilah.

The Army was also eyeing the formation of a new Kodam in West Papua to cover sensitive areas, but it was still in the assessment stage and would be developed in the future, Fadhilah added. (bbn)

Source: http://www.thejakartapost.com/news/2016/01/09/army-strengthens-border-security-areas-considers-forming-new-military-commands.html

Criminal justice & prison system

Economy 'more important' than executions: Indonesian Attorney General

Sydney Morning Herald - January 13, 2016

Jewel Topsfield and Amilia Rosa – Indonesia's Attorney-General has hosed down speculation a third batch of executions are imminent saying the nation's economy is "far more important".

Asked if executions would be held this year, Attorney-General Muhammad Prasetyo told Fairfax Media: "We don't know yet".

"Currently we are still focusing on our effort to better the economy, It doesn't mean that's it's not important (to carry out the executions) but there are more important things. Therefore we have not determined when we will carry out the executions."

The Attorney-General's office allocated funds for executions in the 2016 draft budget in September last year, although Mr Prasetyo said at the time they were not budget priorities.

"Fourteen convicts will be executed," he said when reading out the Attorney-General office budget on September 17, 2015.

Mr Prasetyo repeated on December 23 that executions would be held in 2016, prompting headlines such as the Daily Mail's "Fresh agony for British granny Lindsay Sandiford as Bali prepares to execute new batch of drug smugglers in the New Year".

However the Indonesian government now seems determined to play down the executions. Luhut Panjaitan, one of the Indonesian president's most trusted ministers, said this week he didn't want to see them turned into sinetron, Indonesia's melodramatic soap opera.

"Regarding execution for drugs dealers, well, why don't you just wait. We don't need to be noisy, we don't need to make some soap operas," he told reporters.

"When the time arrives, well (whether it is) 20, 30 if necessary 40 altogether (can be) settled. But (the execution) does not need to be exposed, it is not necessary."

Fourteen people were executed in Indonesia last year for drug offences, including Australians Andrew Chan and Myuran Sukumaran. The circus surrounding the executions - including the jet fighter escort of Chan and Sukumaran to the prison island where they were killed – was internationally condemned.

At the time Indonesia's former foreign minister Hassan Wirajuda warned the Indonesian government to tone down its seemingly gleeful rhetoric about plans to execute foreign nationals on death row. "It's as if we enjoy killing people," he told the Jakarta Post.

British grandmother Lindsay Sandiford, who was sentenced to death for cocaine smuggling in 2013, is selling teddy bears and nativity scenes that she and other Kerobokan jail inmates have knitted, in a desperate bid to fund a judicial review.

Her case suffered a setback after her lawyer was arrested for corruption on an unrelated matter and a new lawyer is yet to be appointed,

Meanwhile, the family of Mary Jane Veloso, a a Filipino domestic helper on death row, was visited by her family in Yogyakarta this week.

Veloso was spared from the firing squad in Indonesia at the eleventh hour last year after her alleged human trafficker surrendered on the day of her execution. The mother of two has always maintained her innocence and insisted she was duped into smuggling drugs.

Lawyer Agus Salim told Fairfax Media the Attorney General's office had said they would allow Veloso to submit a judicial review of her case, based on the on-going trial of her alleged human trafficker in the Philippines, at which Veloso will provide video testimony. "Once the trial in the Philippines is over, we believe Mary Jane will be off the (death row list) list," he said.

Source: http://www.smh.com.au/world/economy-more-important-than-executions-indonesian-attorney-general-20160113-gm51wm.html

Foreign affairs & trade

Government to settle issues before joining Trans-Pacific Partnership

Jakarta Post - January 15, 2016

Khoirul Amin, Jakarta – The government intends to voice its concerns and negotiate a few issues with the Trans-Pacific Partnership (TPP) signatories before officially joining the US-led multilateral trade cooperation.

The Trade Ministry's director general for international trade and cooperation, Bachrul Chairi, said on Wednesday that it would take another year for TPP ratification to be completed and during that time the government would thoroughly discuss its concerns surrounding the TPP.

"Indonesia will probably be ready to join the TPP in two years, but there's still a legal gap concerning the matter of state-owned enterprises [...]. We want to negotiate that," he said.

Under the "state-owned enterprises" clause, the TPP treaty requires member countries to ensure equal treatment for state-owned enterprises (SOEs) and private businesses, especially when SOEs receive government backing to engage in commercial activity.

Bachrul said the government would negotiate the matter, especially given the fact that the Constitution mandated that the state was to control natural resources for the people's welfare.

Investment Coordinating Board (BKPM) head Franky Sibarani said there were also a number of concerns regarding investment.

"Under our Investment Law, before [investors] go to international arbitration, there must be a discussion with the Indonesian government [...]. This is what will be a lot of work for us," he said.

Under the "investor-state dispute settlement" (ISDS) clause in the TPP treaty, investors may directly proceed to international arbitration should local governments' regulations harm their businesses in the investment-recipient countries.

Bachrul said that while Indonesia was not a TPP signatory, the partnership was probably open to negotiation in order to expand its membership. The partnership will likely come in force in a year, with South Korea becoming a non-current TPP signatory member ready to join.

Negotiations on the TPP were concluded in October last year by 12 signatory countries, namely Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam and the US.

The TPP draft was both welcomed and challenged by Indonesian business players and analysts. Mahmud Syaltout, an international trade law and policy expert at the University of Indonesia, said previously that joining the TPP could harm Indonesia's agriculture sector.

ASEAN Solidarity Economic Community (ASEC) Indonesia has also summarized discussions by a number of experts and members of the public, saying that the country's state enterprises played a major role in economic development and there was a number of infant businesses that had to be protected.

The association also mentioned that emerging markets Brazil, Russia, India, China and South Africa that were also members of the G-20 did not join the TPP-bandwagon.

Textile business associations, meanwhile, highlighted benefits for Indonesia's textile and footwear industry if the country joined the TPP as the products would be subject to 0 percent tax, making Indonesia competitive with regional counterpart Vietnam, which had joined the TPP.

Bachrul said that to further review benefits and negative impacts of joining the TPP, the government agreed on Wednesday to officially form teams to review future trade agreements and partnerships.

The agreement was reached after a meeting attended by Franky, Trade Minister Thomas Lembong, Industry Minister Saleh Husin, Finance Minister Bambang Brodjonegoro and Coordinating Economic Minister Darmin Nasution, among others.

Source: http://www.thejakartapost.com/news/2016/01/15/govt-settle-issues-joining-trans-pacirfic-partnership.html

Indonesia seeks greater int'l access for its workers

Jakarta Post - January 13, 2016

Khoirul Amin, Jakarta – The government aims to include access for Indonesian laborers in future agreements with trading partners in an attempt to boost the country's trade in services, a top official has said.

Trade Minister Thomas Trikasih Lembong said on Tuesday that the ministry would strive for special market access for the country's workers and services in the negotiations of agreements with trading partners.

"With the fact that trade in services is playing a greater role nowadays and that our economic growth hasn't achieved a certain level that can absorb all available employees, we indeed have an interest in exporting laborers and improving the export of services," he said.

Indonesia is set to continue a number of negotiations with trading partners like Iran, South Korea and the European Union this year, Trade Ministry director for international trade and cooperation Bachrul Chairi said previously.

According to the head of the Agency for the Placement and Protection of Indonesian Migrant Workers (BNP2TKI), Nusron Wahid, with the country's annual economic growth hitting about 5 percent, there are only 1.5 million workers out of 2.8 million who can secure jobs in the domestic market.

There were another 1.3 million who did not have access to the domestic market, but they could possibly tap into overseas markets by providing services in nursing or the automotive sector, he said after signing a memorandum of understanding (MoU) with the Trade Ministry on Tuesday.

Thomas said the calculation of Indonesia's trade balance had to be expanded to not only include merchandise trade, but also trade in services.

The contribution of the trade in services to Indonesia's gross domestic product (GDP) rose from 6 percent in 2011 to 6.4 percent in 2014, according to the World Bank's estimate. The figure is, however, still a far cry from those of Singapore (91.6 percent), Thailand (26.8 percent) and the Philippines (15.7 percent) in 2014.

To further support Indonesia's trade in services, BNP2TKI signed an MoU with the Trade Ministry on Tuesday to help promote Indonesia's semi-skilled services.

Thomas said that his ministry would utilize its Indonesian Trade Promotion Center (ITPC) offices worldwide to promote not only the country's main commodities, but also its services.

Remittances from Indonesia's overseas workers – one of the sources for the country's foreign exchange reserves – surged by 24 percent year-on-year (yoy) to US$10.5 billion last year, as many Middle Eastern employees raised Indonesian housekeepers' wages in response to President Joko "Jokowi" Widodo's previous plan to halt sending unskilled workers overseas, including housekeepers, Nusron said.

Source: http://www.thejakartapost.com/news/2016/01/13/indonesia-seeks-greater-int-l-access-its-workers.html

RI faces growing competition from other ASEAN members

Jakarta Post - January 12, 2016

Khoirul Amin, Jakarta – The government has reiterated its commitment to easing the conduct of business in Indonesia to make the country more competitive with other members of ASEAN ahead of the implementation of the ASEAN Economic Community (AEC).

Speaking during the launch of the three-hour investment licensing service at the Investment Coordinating Board (BKPM) office on Monday, Vice President Jusuf Kalla said Indonesia should be able to improve business efficiency if it wanted to be able to compete with other ASEAN members in attracting foreign investment.

He said Indonesia had to prepare for fierce competition from other ASEAN members, particularly this year with the implementation of the AEC and the ongoing decline in commodity prices. With the implementation of the AEC, Indonesia is a part of an increasing regionally-integrated market. "Competitions are usually won by the most efficient," he said.

BKPM head Franky Sibarani said that he aspired to make Indonesia one of the top 100 countries in terms of ease of doing business next year. "We're targeting that our ease of doing business ranking will be in double-digits in 2017," he said.

According to the World Bank's 2015 ease of doing business ranking, Indonesia ranked 114th out of 189 economies, lagging behind its Southeast Asian peers Singapore (first), Malaysia (18th), Thailand (26th) and Vietnam (78th).

To achieve the required efficiency levels to beat the competition, Indonesia needs to solve problems surrounding interest rates, logistics costs, energy and bureaucracy, according to Kalla.

"As of this January, I think interest rates should be in single digits," he said, implying that most Indonesian banks' interest rates still stood at over 10 percent. Interest rates follow the trend of the Bank Indonesia (BI) benchmark rate.

The BI interest rate has remained unchanged since February last year at 7.5 percent, with the central bank previously stating that it would review the benchmark rate based on economic indicators.

In another development, the Vice President said the government had increased its infrastructure budget by 50 percent this year to Rp 310 trillion (U$22.4 billion) to lower the country's logistics costs.

The government had also signed new contracts for the establishment of 22,000-megawats of new power generation this year, he went on.

In addition, the BKPM started its three-hour licensing service last October for prospective investors with a minimum investment of Rp 100 billion and/or a plan to employ more than 1,000 workers.

The service had shortened the licensing process from 23 days normally to only three hours through the BKPM's one-stop service (PTSP), Franky said.

Seven investors, with investments worth Rp 17.85 trillion, including those in power plants, ports and farming, had availed of the service, he said.

The three-hour service issues permits including principal permits, company deeds, tax identification numbers (NPWP) and land-booking letters issued by the Agrarian and Spatial Planning Ministry.

As of December last year, the BKPM also provides a fast-track permit licensing or "green route" for machinery and equipment imports, which enable companies that are already in the construction stage to obtain permits in around half an hour, from three to five days normally.

BKPM data reveal that 24 companies, with total investments worth Rp 100 trillion, have used the facility so far.

Source: http://www.thejakartapost.com/news/2016/01/12/ri-faces-growing-competition-other-asean-members.html

Mining & energy

PLN striving for higher sales after poor 2015

Jakarta Post - January 14, 2016

Raras Cahyafitri, Jakarta – State-owned power firm PLN has set a high sales target this year, despite the company reporting lackluster growth last year.

The company's head of marketing, Benny Marbun, said the company was aiming for sales growth of 6 percent in 2016, a relatively high target after 2015's performance.

Figures from the company show that electricity sales grew only 2.1 percent in 2015 to 200.6 terrawatt hours (TWh) from the 196.42 TWh sold in 2014.

Benny pointed out that the sluggish electricity sales in 2015 were partly caused by slowing consumption by the industrial sector, which was affected by the country's weak economic growth. Industrial-sector power consumption was 4.31 percent lower in 2015 compared to 2014.

"However, we see a better trend of consumption in the industrial sector, particularly large-scale players such as cement, steel and petrochemicals. They are the driver for development projects and therefore we are expecting good signals for Indonesia's economic growth," Benny said.

He also cited better trends in electricity consumption by the business sector, which grew by 6.5 percent in 2015. That, however, compares with 11.7 percent growth in 2014.

As of the end of 2015, the country had 55,523 megawatts (MW) of electricity capacity. Of the total, 2,458 MW was new capacity added to the national system in 2015.

The electrification ratio was 88 percent as of the end of 2015. However, there are a number of areas that recorded much lower ratios compared to the nationwide figure. Sumatra is one region in the spotlight following frequent blackouts.

PLN regional business director for Sumatra Amir Rosidin said the electricity supply in the region had already improved. According to Amir, Sumatra now has sufficient electricity supply but the reserve margin remains at 15 percent, lower than the 30 percent that is considered safe enough to prevent blackouts caused by disruption in major power plants.

"We are expecting the completion of more power plant projects so that we will have greater capacity. We are aiming to achieve a reserve margin of 30 percent by 2018," Amir said.

The additional capacity is needed because, as forecast by Amir, Sumatra area is likely to see electricity sales growth of around 8 percent this year.

Under the plan, an additional 1,290 MW will come online from new power plants in Sumatra this year, consisting of 635 MW in northern Sumatra and 655 MW in the southern part.

In 2015, Sumatra received additional capacity of 1,340 MW, consisting of the Keramasan and Arun gas turbine power plants, and the coal-fired Pangkalan Susu units 1 and 2, Sumsel V, Banjar Sari, Keban Agung and Sebalang unit 2.

As part of efforts to meet power demand in the future and support economic growth, the government has embarked on a program to generate an additional 35,000 MW by 2019. A number of projects are currently being planned and bids have been opened to attract investors willing to build the required power plants.

Source: http://www.thejakartapost.com/news/2016/01/13/pln-striving-higher-sales-after-poor-2015.html

Economy & investment

BI rate cut to 7.25% with minister at meeting

Jakarta Post - January 14, 2016

Anton Hermansyah & Arief Gunawan S, Jakarta – After maintaining its rate for 11 consecutive months, Bank Indonesia (BI) has slashed the benchmark interest rate by 25 basis points to 7.25 percent.

The first rate cut since February 2015 was decided on after a BI board of governors meeting that was attended by the Coordinating Economic Minister Darmin Nasution. It is the first time the BI has conducted such meeting with a government representative in attendance.

"The reduction of the BI Rate is expected to support previous macroprudential policy-easing measures and the lowering of primary reserves in rupiah. Further easing will take place after rigorous assessments of the domestic and global economy," said BI spokesperson Tirta Segara on Thursday in Jakarta.

BI, he further said, would also strengthen its coordination with the government to control inflation, catalyze growth and accelerate structural reforms, thus supporting sustainable economic growth.

At the same meeting, BI held the deposit facility rate and lending facility rate at 5.25 percent and 7.75 percent, respectively.

Senior economist at Kenta Institute Eric Sugandi said that it was the right time for a rate cut, as inflation and current account deficit (CAD) were in a controllable state and the rupiah's movement was stable.

"The BI rate cut will be followed by a deposit-rate cut [at the bank] and then a loan-rate cut. But the impact on loan growth will be small because the cut will be limited, only 25 bps. A bigger impact would occur if the cut was bigger," he said.

Tirta further said that BI's policy mix would remain focused on maintaining macroeconomic and financial system stability in 2016, while stimulating economic momentum, and that gradual monetary easing would remain consistent with efforts to maintain macroeconomic and financial stability. (ags)

Source: http://www.thejakartapost.com/news/2016/01/14/bi-rate-cut-725-with-minister-meeting.html

Contractors suffer as prices plunge further

Jakarta Post - January 14, 2016

Raras Cahyafitri, Jakarta – With global oil prices continuing their plunge – falling below US$30 on Wednesday – small and locally owned oil and gas companies are at great risk of closure or "bleeding" operations, according to the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas).

"There is a field that has closed, namely Tonga. There are many others, mostly small local firms, that are seriously struggling, such as Tiarabumi Petroleum in South Sumatra," said SKKMigas spokesperson Elan Biantoro, referring to Jakarta-listed Energi Mega Persada's Tonga PSC oil block and Tiarabumi Petroleum's West Air Komering PSC.

In Indonesia, the average cost per barrel is $22, according to figures from SKKMigas. However, there are numerous fields recording higher costs, particularly those located in remote areas with poor infrastructure and offshore operations.

US oil stumbled below $30 per barrel on Wednesday, compared with over $100 in mid-2014, on global glut and concerns over weakening demand from slowing-down China, making it a lot more difficult for companies across the world to operate at a profit.

The oil price plunge has forced global giants to slash jobs and cut spending plans; on Wednesday, BP Plc cut an additional 5,000 jobs, Petroleo Brasileiro SA slashed its spending plans and Petrolian Nasional Bhd. warned it faced several tough years ahead.

In Indonesia, the Tonga oil block mentioned by SKKMigas bears production costs of $40 per barrel, largely because of high transportation costs under a tracking system, according to Elan.

Figures from the company showed that Tonga PSC's net production was at 19 barrels of oil per day (bopd) as of the end of the first nine months of last year.

Other small and local firms are currently suffering, including Sumatera Persada Energi (SPE), which operates the West Kampar PSC. "They are trying to survive, but they're currently bleeding," said SKKMigas deputy for operation Muliawan.

Some international companies are also struggling amid current plunges in the world benchmark. "They include ConocoPhillips' operation in Natuna [South Natuna B], where the offshore and remote location leads to high costs. Production is actually still good and therefore, they intend to farm out some shares. Chevron is currently also concerned with its operation in Kalimantan because it is offshore," Elan said.

He was referring to a recent report that South Natuna B's contractors – namely ConocoPhillips with 40 percent ownership, Chevron with 25 percent and Inpex with 35 percent – were seeking to release part of their stakes to new partners.

ConocoPhillips' and Chevron's representatives in Indonesia declined to comment. Chevron's operation in East Kalimantan covers three main areas, namely North Area, South Area and West Seno.

Business players and global analysts have predicted that the oil price is unlikely to rebound any time soon because the global surfeit is expected to continue rising. Meanwhile, major producers are maintaining oil production, as any reduction will hit their market shares.

Goldman Sachs earlier estimated that the oil price would touch as low as $20 per barrel. The International Monetary Fund (IMF) said that the commodity price could reach $5 to $15 per barrel, driven by the lifting of international embargoes against Iran, which is also a significant oil producer in terms of volume.

The current low oil price is not unprecedented, having dropped to $5 per barrel prior to the 1973 oil crisis. However, the sharp drop of over 60 percent since mid-2014 remains a source of major concern, especially for producers.

Source: http://www.thejakartapost.com/news/2016/01/14/contractors-suffer-prices-plunge-further.html

Cinemas, hotels to be open to foreign investors

Jakarta Post - January 14, 2016

Khoirul Amin, Jakarta – A number of sectors within tourism and the creative economy are to open up to foreign investors, signaling the government's renewed commitment to welcoming overseas investment, a top official has said.

Investment Coordinating Board (BKPM) head Franky Sibarani revealed on Wednesday that the government expected to finalize a new negative investment list (DNI) of between six and seven industrial sectors in the next two weeks as part of the first phase of the new DNI announcement.

"I hope that the [DNI revision relating to] tourism and the creative economy will be announced soon. Among businesses in the [creative economy] sector are film distribution, film production houses and cinema operators. In the tourism sector are hotel chains, tourist attractions and cruises," he said.

Franky told reporters that the new DNI would raise foreign ownership caps in the two industries to more than 50 percent or up to 100 percent.

At present, foreign direct investment is allowed to account for a maximum 49 percent stake in companies providing technical assistance in movie-related production, including film production, production houses, film distribution and movie promotion.

However, foreign investors can still buy shares in cinema operators listed on the stock exchange, according to capital market regulations. Publicly listed Graha Layar Prima, known for its Blitzmegaplex cinema chain, is partly owned by a South Korean company.

Meanwhile, the cap on foreign ownership in tourist businesses like hotels and restaurants currently ranges between 49 and 51 percent.

Accommodation services with foreign ownership currently limited to 49 or 51 percent are two-star hotels, three-star hotels, non-star hotels, homestays and motels, with ASEAN investors allowed up to 70 percent-ownership in motels, according to the current DNI regulation – Presidential Decree No. 39/2014.

Alongside tourism and the creative economy, another 15 industrial sectors are also "open with requirements" to foreign investment at present. Among the sectors are agriculture, forestry, maritime affairs and fisheries, public works and commerce.

The government has previously announced that it will announce a new DNI for the 16 industrial sectors, with a number of business sectors to be opened to foreign direct investment.

Separately, Indonesian Hotel and Restaurant Association (PHRI) head Cyprianus advised the government to maintain ownership of local businesspeople in hotel chains.

"Instead of opening up foreign ownership to 100 percent for two-or-three star hotels, I think the government needs to provide soft loans for locals who have land to develop good-quality hotels," he said.

Voicing similar concerns, Indonesian Consumers Foundation (YLKI) chairman Tulus Abadi said that while the rising cap on foreign ownership in cinemas and accommodation services would give consumers more options, he argued that local ownership should still be maintained.

He added that many joint ventures in tourism and the creative economy formed by local and foreign investors already met most consumers' demands.

In contrast, the Creative Economy Agency (Bekraf) has previously stated that the country needed more foreign direct investment in cinemas, as there was still a wide gap between the number of cinemas and the number of viewers.

There was, the agency claimed, only one screen for every 237,000 Indonesian viewers, a stark contrast with Malaysia, where each screen caters to between 39,000 and 40,000 people.

Source: http://www.thejakartapost.com/news/2016/01/14/cinemas-hotels-be-open-foreign-investors.html

World Bank slashes its Indonesian growth forecast to 5.3 percent in 2016

Jakarta Post - January 11, 2016

Ayomi Amindoni, Jakarta – The World Bank has warned that a continuing economic slowdown in emerging markets will cause substantial spillovers into developing economies and eventually hold back the recovery in advanced economies.

As a result, the bank cut its forecast for global economic growth in 2016 to 2.9 percent from its initial projection of 3.3 percent, but the growth projection is still better than global growth in 2015, which was at 2.4 percent.

The economic growth projection for Indonesia was also slashed to 5.3 percent from an initial projection of 5.5 percent.

Bank Indonesia Governor Agus Martowardojo said the central bank would remain cautious over the development of the global economy, in particular the Chinese economy. Recently, China's capital market experienced tremors and even suspended trading twice in the past week.

Besides, China's move to devalue its currency in August created a risk-off period, when all funds tend to flee to safe assets, according to the BI chief. "The global economy and the situation in China needs to be continuously watched. This is not the end; just the beginning," said Agus in Jakarta on Friday.

In addition, the central bank is also watching the downward trend of crude oil prices and the possibility of another increase in the US Federal Reserve funds rate. "These are the things that we need to continuously follow," he told journalists.

Agus explained that despite the pressure, the rupiah depreciation in 2015 was in the range of 11 percent, better than the Brazilian currency, which depreciated 49 percent, Turkey's, which dropped 33 percent, and that of other countries that depreciated more than 20 percent.

"But Indonesia can maintain above 11 percent. What we need to watch is the rupiah's volatility. If we can maintain its stability, we will be able to create a good business climate and boost our economy," he said.

Agus added that the foreign exchange reserves were enough to provide resistance against external factors and maintain the sustainability of economic growth in 2016.

"We will support the government's efforts to achieve 5.2 to 5.6 percent in growth. We also welcome the World Bank's projection that the Indonesian economy will grow 5.3 percent, as it is in line with the government's target in the state budget," he said.

Indonesia's reserves recorded a US$5 billion month-to-month increase in December 2015 to $105.9 billion. The increased reserves came from the government's foreign debt withdrawal, oil and gas exports and the global bonds issued to cover foreign exchange needs.

Acceleration of budget spending, according to Agus, will have a major impact on economic growth in 2016. "We certainly expect the private sector's role could be better. On the other hand, we know the world commodity prices are still depressed and we appreciate if there are initiatives to search for new export markets and to export more value-added product," he said.

According to the World Bank's January 2016 Global Economic Prospects, a modest recovery in advanced economies continues this year and activity is stable among major commodity exporters.

According to the report, falling commodity prices, flagging trade and capital flows and episodes of financial volatility sapped economic activity and made global economic growth was less than expected in 2015, while firmer growth in 2016 will depend on the stabilization of commodity prices and China's gradual transition towards a more consumption-based growth model.

However, growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016. Meanwhile, developing economies are forecast to expand 4.8 percent in 2016, less than expected earlier, but up from the 4.3 percent growth in 2015. (bbn)

Source: http://www.thejakartapost.com/news/2016/01/09/world-bank-slashes-its-indonesian-growth-forecast-53-percent-2016.html

Indonesia needs new markets: Economists

Jakarta Post - January 10, 2016

Anton Hermansyah, Jakarta – Amid sluggish economic growth in China, a key trading partner of Indonesia, economists have again warned of the importance of finding new markets to offset the risk of trade decline with China.

Institute for Development of Economics and Finance (INDEF) economist Berly Martawardaya said that there were potential alternative markets that could be developed amid China's slowdown, namely India, South Africa, South Korea, and Eastern European countries.

"Trade with India must be developed, not only limited to commodities. India is now one of the biggest markets for our coal, but we need to expand to other sectors. We have exported automotive goods to South Africa, but besides that, more non-oil and gas markets could be developed," Berly told the thejakartapost.com on Jan 8.

Bank Central Asia (BCA) chief economist David Sumual said that the new markets should become Indonesia's markets for value-added goods such as electronics.

"Africa and Latin American countries are potential markets for electronics. Indonesia must invite technologically advanced countries like South Korea and Taiwan to invest here and then export the products to Africa," David said.

On the other hand, he continued, the government should consider joining the Trans Pacific Partnership (TPP), as doing so would allow Indonesia to develop trade with Latin America.

Indonesian Ambassador to India Rizali Wilmar Indrakesuma said that India was a potential market for pharmaceutical products and food. India imports vaccines from Indonesia, and could potentially help Indonesia secure affordable medicine for the national health coverage scheme. India is the biggest generic medicine producer in the world.

"Aside from rice, we can also import meat from India, where water buffalo is bred well. Some Indonesian consumer good brands have entered India, such as Indomie and Mayora," Rizali said.

However, he acknowledged that problems in market expansion also lied in practice and that the government and businesspeople needed to work in tandem.

Unfortunately, many businesspeople are battling a sluggish economy. Adaro Energy president director Garibaldi Thohir said that the company was focusing on efficiency and domestic needs, rather than on expanding its export market.

"How can we expand when the global coal price is weak? Right now we are focusing on using our cash flow to invest in the local market such as through developing [coal-based] power plants," Garibaldi said. (ags)

Source: http://www.thejakartapost.com/news/2016/01/10/indonesia-needs-new-markets-survive-economists.html