APSN Indonesia News Digest 29

Jakarta – Hundreds of Betawi Brotherhood Forum (FBR) members rallied in front of the Senayan City shopping mall Tuesday to demand the restoration of rights to the land on which the mall stands.

According to the protesters, approximately 62,000 square meters of land occupied by Senayan City rightfully belongs to the beneficiaries of the native Betawi, or Jakarta-born, Marzuki family.

In a meeting with representatives of the Marzuki family, members of Senayan City's management said the protesters should file their complaints with the Gelora Bung Karno Foundation, which is responsible for administering the land owned by the state secretariat.

"We are only renting the land for 35 years, starting in 2006. The land, which is owned by the state, is administered by the Gelora Bung Karno management," Senayan City CEO Handaka Santosa told The Jakarta Post.

Gelora Bung Karno director Husein Adiwisastra confirmed the land had been legally rented to the Senayan City management.

The Marzuki family's claim to the land has already been discussed by the Gelora Bung Karno board, Senayan City management and the family, but failed to reach a settlement, he added. "If FBR insists, we should go to court," Husein said.

Indonesian intelligence considered old fashioned

Tempo Interactive - August 6, 2008

Titis Setianingtyas, Jakarta – Andi Widjajanto, a military and intelligence observer from the University of Indonesia, has said that the Indonesian intelligence agency still works in an old fashioned way after 10 years of reform.

He said Indonesia does not even have a regulation for the intelligence agency even though the social, security, cultural, and political situations in the country can change rapidly.

"The regulation is still being discussed," said Andi at the book launching of 'The relationship between the Intelligence Agency and the State in 1946-2004' in Jakarta, on Tuesday (5/8).

He suggested that the intelligence agency stop working for political interests and rather anticipates possible threats against national security.

Ikrar Nusa Bakti, a Researcher from the Politic Study Center at the Indonesian Institute of Sciences (LIPI), agreed with Andi.

He said that compared to reform in the general security sector, reform at the intelligence agency has run slowly. "It is only the intelligence agency that has not been reformed," said Ikrar.

There was a strong indication of the intelligence agency's involvement in the murder of the human rights activist, Munir, in 2004. This is proof that reform at the agency has not happened.

Ikrar went on to say the Munir case also indicates that the intelligence agency still uses the same understanding as in 1965 where the agency worked for the authorized regime.

"It is obvious that our intelligence agency still cannot work professionally," he said.

Actions, demos, protests...

Six protest actions to add to Jakarta's traffic woes today

Tempo Interactive - August 7, 2008

Fery Firmansyah, Jakarta – Six protest actions are scheduled to inundate the main streets of the capital today, Thursday August 7. In order not to be caught in traffic, road users are advised to avoid sections of road that will be used by protesters.

Based upon information from the Metro Jaya regional police Traffic Management Centre, the first protest will take place on Jl. Lapangan Tembak Pekayon in East Jakarta. There, at around 8.30am, hundreds of transport workers from the PT Mayasari Utama bus company will hold an action demanding a wage increase.

At 9am, it will be the turn of the State Minister for Administrative Reforms' office on Jl. Jenderal Sudirman in Central Jakarta to be besieged by demonstrators. There, an action will be held by hundreds of residents from the Sukolilo area in Surabaya, East Java.

At 10am, a demonstration will be held by an alliance of Indonesian Migrant Workers who will be protesting at the Indonesian national police headquarters on Jl. Trunojoyo in South Jakarta.

Also at 10am, the National Statistics Agency (BPS) in Pasar Baru, Central Jakarta, will be besieged by protesters from Indonesian Poor People's Union (SRMI).

Later in the afternoon, at around 2pm, hundreds of traders from the Melawai markets will be protesting the area of the Block M Square.

The final demonstration will be held by the Solidarity Network for the Families of Victims of Human Rights Violations (JSKKP- HAM) in front of the State Palace in Central Jakarta at around 4pm.

[Translated by James Balowski.]

Protests to complement the hustle and bustle of Jakarta today

Detik.com - August 5, 2008

Laurencius Simanjuntak, Jakarta – Actions by residents articulating their aspirations will compliment the hustle and bustle of Jakarta and nearby Tangerang today, Tuesday August 5.

According to data from the Metro Jaya regional police Traffic Management Centre, five protest actions will be held in Jakarta and one in Tangerang.

The first demonstration in Jakarta will held in front of the Department of Transport and Communication on Jl. Medan Merdeka Barat in Central Jakarta at 8am.

The second protest will take place at the offices of PT Mayasari Utama on Jl. Lapangan Tembak in the Cibubur area of East Jakarta between 8am and 3.30pm.

Following this, the Attorney General's Office on Jl. Sisingamangaraja in South Jakarta will also be 'attacked en masse' by demonstrators at 9am.

Also at 9am, the Senayan City area on Jl. Asia Afrika in Central Jakarta will also see the arrival of demonstrators.

Protesters will also be demonstrating in Central Jakarta between 10am to 12noon at the Jakarta High Court building on Jl. Letjen R. Soeprapto.

In the satellite city of Tangerang meanwhile, a protest action will take place in the vicinity of the PT. Panarub Dwi Karya offices on Jl. Karawaci. (lrn/fiq)

[Translated by James Balowski.]

Students call for nationalisation of foreign oil & gas companies

Detik.com - August 4, 2008

Djoko Tjiptono, Jakarta – Scores of student from the Student Action Front for Reform and Democracy (Famred) have again taken to the streets to demand the government nationalise foreign-owned oil and gas companies.

The students arrived at the Exxon Mobil offices on Jl. Jenderal Sudirman in Central Jakarta on August 4 on a convoy of motorbikes. The action was watched over by a number of security personnel.

"We the Indonesian nation have abundant oil and gas wealth. But so far, we the people of Indonesia have not yet been able to enjoy it to the maximum", said action spokesperson Nana when speaking with Detik.com on Monday.

It is for this reason, continued Nana, that they are urging the government to nationalise foreign-owned oil and gas companies. The presence of these foreign oil and gas companies also violates Article 33 of the 1945 Constitution.

During the action, the students brought a number of posters and banners that read, among other things, "Nationalise foreign assets right now in the name of the Indonesian people" and "Based on the people's suffering, starting from this point the Exxon Mobil company has being seized for the people".

Following the protest in front of the Exxon Mobil office, the students then handed out leaflets to street traders and people at the Benhil Market in the Pejompongan area of Central Jakarta. (djo/iy)

Notes:

Article 33 point 2 of the Constitution states that "Branches of production which are important for the state and affect the life of most people shall be controlled by the state", and that that the central government control these natural resources for the benefit of all citizens.

[Translated by James Balowski.]

Aceh

Aceh to drop Koran skills requirement for candidates

Jakarta Post - August 2, 2008

Hotli Simanjuntak, Banda Aceh – Acehnese politicians are no longer required to be proficient in reading the Koran to be eligible for the upcoming national legislative elections.

Following a prolonged public debate, Home Minister Mardiyanto has annulled the controversial article of the 2008 election bylaw that required legislative candidates to pass a Koran recital test. The legal requirement prevails, however, for local politicians contending seats at the provincial and regency legislatures.

Mardiyanto conveyed to Aceh Governor Irwandi Yusuf that his administration was only entitled to set rules pertaining to local parties, in his letter sent to the governor on July 18. "National parties must comply with the 2008 Election Law," Mardiyanto said in the letter.

He also requested explanations from the Aceh provincial administration on test standards and indicators used in conducting the Koran recital tests for local parties' legislative hopefuls.

If the article in question were made compulsory for national elections, it was feared it would have contradicted higher laws – 10/2008 and 22/2007 – on the election of House of Representatives and provincial legislature members.

However, revocation of the article has undoubtedly stirred controversy among local parties in the province.

Aceh People's Party (PRA) secretary-general Thamren Ananda hailed the home minister's decision because the bylaw was contradictory to the two laws.

Cleric Tengku Bulkaini Tanjungan, however, regretted the article's revocation, saying the Koran recital skill was closely related with the special province's Islamic moral values. "Every political party in Aceh, be it local or national, should undergo the test. How could Aceh improve people's morality if their representatives can't even read and understand the Koran?" Bulkani said.

A law lecturer at Syah Kuala University in Banda Aceh, Taqwadin, disagreed with the remarks, saying the home minister had done the right thing.

He said proficiency in Koran recital had no correlation with the behavior of legislators. "Many legislators in this country can read the Koran but they still commit immoral acts," Taqwadin said.

Irwandi said he had predicted the conflict before the ordinance on local parties was submitted to Mardiyanto. "It doesn't mean that we are not receptive to the article on Koran recital being implemented in Aceh, but the problem is that it goes beyond the national law," he said.

Justice delayed for Aceh's human rights abuse victims

Jakarta Post - August 1, 2008

Hotli Simanjuntak, Banda Aceh – Justice for victims of conflict and human rights abuses in once-restive Aceh could be a long time coming, with the government and the court yet to show any commitment to the establishment of a human rights court.

The settlement of unresolved human rights abuses during and after the Aceh conflict, an integral part of the reconciliation and reintegration program, forms a central clause in the peace agreement signed by the government and the then Free Aceh Movement (GAM) in Helsinki on Aug. 15, 2005. The agreement was also incorporated into the 2006 Aceh regional administration law.

The reintegration of former combatants and conflict victims has progressed slowly, with neither civilians nor servicemen implicated in the human rights abuses during the conflict and the military operation (DOM) being brought to trial.

Supreme Court chief justice Bagir Manan has stressed that the court has no authority to try people for past human rights abuses because the 2000 law on human rights trials did not apply retroactively.

"They (trials for human rights abuses) come under the authority of the Indonesian president and the government, which so far have not proposed to establish a human rights court," he said after swearing in the military court here Monday.

The implication is that the Supreme Court could establish an ad hoc court to deal with unresolved human right abuses if the government or the president proposed it.

The 2006 Aceh administration law orders that a human rights court be established one month after the law itself takes effect, meaning the court should have been established in September 2006.

Kontras Aceh coordinator Asiah Uzia has repeatedly criticized the government's slow work in handling the reintegration and the reconciliation program, which she said could undermine the 2009 general elections.

She said the majority of conflict victims and former combatants had yet to receive any compensation from the government, while military officials implicated in human rights abuses during the conflict, the military operations in 1989 and 1998 and the military emergency in 1999-2000 had not been brought to trial.

"The unresolved human rights abuses could be settled if the government showed the political will to set up an ad hoc human rights court," she said.

The Aceh provincial administration could establish a reconciliation and truth commission (KKR) to handle the human rights abuses despite the Constitutional Court's annulment of the law establishing a national commission for reconciliation and truth, she added.

Saifuddin Bantasyam, a legal expert at Syah Kuala University in Banda Aceh, accused the government of buying time in its attempt to protect human rights perpetrators in the province.

He warned that delays in establishing a human rights court would have political implications for the stability and credibility of President Susilo Bambang Yudhoyono's government and the upcoming general elections.

"Local parties could take strategic steps for the upcoming legislative election and legislators who are former rebels will raise the unresolved human rights abuses as a national issue in the domestic and international arena," he said, adding this could worsen the vertical conflict between Aceh and Jakarta.

Ali Zamzami, chairman of the Solidarity for Conflict Victims Brotherhood (SPK HAM), stressed that conflict victims were still waiting for the government to settle the unresolved human rights abuses and that the current peace was not sustainable unless the human rights abuses were resolved.

He also said perpetrators of past human rights abuses could be brought to justice if the government had the political will to set up an ad hoc human rights court.

West Papua

Papuans stage major rally against special autonomy law

Jakarta Post - August 5, 2008

Nethy Dharma Somba, Jayapura – At least 3,000 people mobilized by the Papuan Christian Communication Forum staged a rally in Jayapura on Monday, questioning the functioning of the special autonomy law.

They claimed the law had been in force for seven years, but that most indigenous Papuan people had not seen any improvement in their welfare.

The protesters from 45 churches in Jayapura flocked to the Papuan gubernatorial office at 9 a.m. local time, unfurling banners with slogans including: "Special Autonomy Law – Blessing or Disaster", "Special Autonomy for whom" and Papua Pancasila Yes, Papua Sharia No."

Besides questioning the special autonomy law, protesters opposed campaigns by Jakarta-based groups calling for sharia law in Indonesia.

The protesters, who wore red and white, with a cross on their heads, were received by Papuan provincial administration secretary, Tedjo Suprapto, representing Papuan Governor Barnabas Suebu, who was away. Salmon Yumane, a rally coordinator, said the provincial administration and the Papuan Representatives Council were ignoring local interests by failing to promulgate and enforce regulations needed to put special autonomy into practice.

"How can we assess the achievements of the special autonomy law, if the regulations are not in force," Yumane said. "It seems as if the local administration and council have forgotten to make the regulations, thereby leaving local Papuan people living in poverty," he said.

Rev. Richard Paay, a local speaker at the rally, said the law had been in effect for seven years, but no changes had taken place.

"For seven years, local people who mostly live in poverty, have heard about trillions of rupiah (to be distributed to them), but many Papuans still die due to poor sanitation. Where does the money go?," Paay asked.

Paay said students who wanted to do higher level studies were asked to pay hundreds of thousand of rupiah in entrance fees.

The administration has built modern markets, but Papuan people still had to sell their goods in small alleyways. For whom were the markets built?

Instead of getting benefits from the autonomy law, Papuans only got unfavorable results. "People have been forced to face hardships like joining long lines for kerosene, due to shortages, while prices of basic commodities continue rising, although most Papuans do not have their own incomes," Paay said.

Paay asked the administration to encourage participation from the churches to make the autonomy law effective. "If the administration faces difficulties in implementation, just inform the church... we are ready to give support," he said.

Government accused of neglecting outbreak

Jakarta Post - August 4, 2008

Abdul Khalik, Jakarta – Deaths from cholera increased to 173 in Papua as of Saturday, with lawmakers and civil society groups accusing the local administration and central government of neglecting to prevent the disease from spreading.

Observers warned Jakarta that the government's failure to take action could draw international attention to the troubled province – with accusations of neglecting the Papuans, and fueling questions of Indonesia's ability to govern the area.

Church aid workers in the remote Kamuu valley, Dogiyai regency, confirmed that victims had died from severe diarrhea and vomiting caused by cholera which had been in the area since April.

Catholic priest J. Budi Hernawan from the Jayapura archdiocese said local health authorities and the provincial government had known about the crisis since May, but had failed to act, leading to a more severe outbreak.

"We are afraid the death toll will continue to rise as little has been done so far," he told The Jakarta Post by phone from Jayapura.

Hernawan said the outbreak had spread to the neighboring regency of Paniai, adding that locals were already very angry and desperate because of the government's inaction.

The long delays had lead some Papuans to suspect the government was deliberately neglecting the outbreak and allowing these people to die, he added.

Angry Papuans in Kamuu attacked a settlement of migrants from other parts of Indonesia last week and destroyed a dozen houses, he said, because they assumed the migrants were to blame for the outbreak.

While confirming the presence of Cholera, the Health Ministry had said only 87 people died from 575 infected with the disease, blaming the traditional custom of hugging dead bodies as a source of the infection. "For now, the problems have been solved by the local health authorities," it said in its official website.

The Foreign Ministry also expressed concerns over the increasing number of the deaths, but said it had yet to receive complaints from the international community over the outbreak.

"For the time being, we will leave the problem in the hands of the Health Ministry," Foreign Ministry spokesman Teuku Faizasyah said.

Indonesian Democratic Party of Struggle (PDI-P) lawmaker Andreas Pereira, who recently visited the province, also confirmed receiving a report of people dying from Cholera and urged the government to act quickly.

"I'm afraid the issue will be used by international NGOs to question Indonesia's ability to govern Papua if we continue to do nothing," he said.

University of Indonesia international relations expert Haryadi Wirawan also urged the government to quickly send aid teams to remote areas to prevent the disease from spreading. "By sending sufficient teams of doctors with enough medicine and equipment, we can show the Papuan people and international community we care, and stop the issue from being used to corner us," he said.

Indonesian embassy admits pressure over Papua event

Radio Australia - August 1, 2008

Closer to home, and it's emerged that Indonesian embassy officials tried to invoke a security treaty with Australia early this month to try to stop a gathering in Canberra.

The Australian Capital Territory government has confirmed the recently-signed Lombok treaty was raised in a meeting about a cultural event being held by people who had moved to Canberra from Papua and West Papua in Indonesia.

Presenter: Jeff Waters

Speakers: Yahuda Korwa, Papuan community member; Andrew Robb, Australian opposition foreign affairs spokesman

Waters: Earlier this month... a group of young ethnic Melanesians now living in Canberra... started to organise what they billed as a cultural evening for people from Indonesia's Papua and West Papua provinces. It was to take place in a multicultural venue owned an operated by the Australian Capital Territory government. But then... with only days to go... one of them... Yahuda Korwa... was told the venue was no longer available.

Korwa: Act government talk to me and then they said oh dear sorry, you can't do the west papua cultural night in here because indonesian embassy staff came to here and they said you can't talk political issues in here.

Waters: An ACT government spokeswoman has confirmed there was an approach by Indonesian embassy officials... who invoked the Lombok security treaty... arguing that a political event shouldn't take place in a government building.

But the party did eventually go ahead... after organisers argued back... saying the event was purely cultural.

A spokesman for the Indonesian Embassy in Canberra declined an invitation to be interviewed on the matter... but confirmed representations were made. He said it was the embassy's duty to ask that Australian government buildings not be used for promoting separatist activities.

Yahuda Korwa says it was unfair that the group was asked to explain itself.

Korwa: We came to australia 2006 two years ago because we know in australia is a free country so we can do anything in here.

Mister Korwa was one of more than 40 Indonesians who travelled to Australia in an open boat... seeking political asylum. When they were granted refugee status, it started a diplomatic row, which resulted in the signing... earlier this year of the Lombok Treaty. It underlines Australia's respect for Indonesia's sovereignty over its provinces... and was an agreement negotiated by the previous coalition government.

The coalition's current Foreign Affairs spokesman, Andrew Robb, says that while the treaty shouldn't be used to stop cultural events... political meetings should not be allowed in government buildings.

Robb: There is a tendency from some quarters I think to try and read a lot more into the Lombok Treaty. If the events are purely cultural and not political...

Waters: Well what if they are political, what if someone asks to have a political meeting?

Robb: ...Well the government should not be seen in any situation to aid and abet actions which are of a political nature.

Human rights/law

AGO vows to request death for Muchdi

Jakarta Post - August 7, 2008

Abdul Khalik, Jakarta – Prosecutors will seek the death sentence for Maj. Gen. (ret) Muchdi Purwoprandjono if he is found guilty of involvement in the murder of human rights activist Munir Said Thalib, the Attorney General's Office (AGO) said Wednesday.

The case file submitted by the National Police early this week charged the former senior intelligence officer with murder, which carries a maximum penalty of death, AGO spokesman BD Nainggolan said.

"We will request the maximum penalty. The evidence brought by the police is solid enough to prove Muchdi's involvement," he told The Jakarta Post.

He said a letter connecting the State Intelligence Agency (BIN) to the murder was material evidence linking Muchdi, a former BIN deputy chief, with the high-profile case.

The letter, which had been reported missing, was first mentioned in the trial of former Garuda pilot Pollycarpus Budihari Prijanto, who was sentenced to 20 years in prison for his role in the murder.

Indra Setiawan, a witness in the Pollycarpus trial, testified he had received a classified letter from BIN asking that Pollycarpus be assigned as a security crew member for Munir's flight to Amsterdam.

Munir died from arsenic poisoning, administered during a stopover at Singapore's Changi Airport in September 2004.

Indra claimed the letter was stolen from his car. The recovery of the letter has filled the missing link between BIN and Munir's murder.

Abdul Hakim Ritonga, deputy attorney general for general crimes, said last week the police had obtained a soft copy of the letter, but stopped short of saying whether it would be presented in court as evidence.

Nainggolan said the AGO would bring the case to trial as soon as the police had handed over the accused and all the material evidence. "I think we can bring the case to trial within one or two weeks," he said.

During the Pollycarpus trial, Muchdi was named several times in written testimony by BIN agent Budi Santoso.

Budi testified that Muchdi gave Pollycarpus Rp 10 million (US$1,085) on June 14, 2004, and an additional Rp 3 or 4 million when the former pilot was under investigation in connection with the murder. Muchdi and Pollycarpus have both denied knowing each other.

Nainggolan said other evidence presented in the Pollycarpus trial could also be used to build the case against Muchdi, including a record of 41 calls from the phone numbers allegedly used by Pollycarpus and Muchdi before and after the 2004 murder.

Another former BIN deputy chief M. As'ad has also been linked to the murder. He reportedly signed the once-missing classified letter from BIN.

Human rights activists and lawmakers have demanded the police also arrest former BIN chief A.M. Hendropriyono for his possible connection to the Munir murder. Hendropriyono has denied all accusations against him.

Hundreds of regional regulations cancelled

Tempo Interactive - August 7, 2008

Bernarda Rurit, Yogyakarta – The Home Affairs Department has cancelled 968 of 6,500 regional regulations and draft regulations made by regional governments throughout Indonesia.

Djiman Murdiman Sarosa, Director General for Regional Development at the Home Affairs Department, said that the regulations were cancelled as it was considered they could hamper investment in the regions.

"If many of them were related to illegal levies, why would investors be interested," Djiman told reporters in Yogyakarta, yesterday (6/8).

He explained that the 6,500 regional regulations had been made within the last two years.

In addition to hampering regional investment, these also were not in line with higher level regulations like government regulations, state decrees and presidential decrees.

Indicators used to cancel the regulations were high retribution, high fees for permit arrangements, and down-payments for investor. Djiman said that regional governments had said that the high price of fees was because they wanted to increase their regional revenues.

In order to create a better investment climate, Djiman continued, the government has set up integrated one-door service centers to simplify the issue of licenses for investors. There are now 289 regions applying these integrated one-door services.

Djiman mentioned Yogyakarta as the best city in Indonesia for applying this one-door service. Sragen is the best Regency and has removed fees for permission arrangement for small- and medium-sized enterprises. "This will all help attract investors," said Dliman.

He suggested that good city planning was another way to attract investors, mentioning Cilegon and Batam as references. "Good city planning will make investors feel comfortable," he said.

Labour issues

Indonesia wants higher wages for maids in Malaysia: report

Agence France Presse - August 3, 2008

Kuala Lumpur – Indonesia will seek higher wages for its nationals working as domestic helpers in Malaysia as the cost of living rises, the country's ambassador said in an interview published Sunday.

Dai Bachtiar told the Star daily higher wages would top a list of demands for Indonesian maids here, including more time off and a proper mechanism to resolve disputes with employers.

"If costs are rising here due to higher fuel prices and food prices are going up, then our workers too should be entitled to what is deemed fit by the Malaysian government," he was quoted as saying.

"We also want a system in place whereby if an employer accuses workers of any wrongdoing the issue will be handled with fairness."

Malaysia relies heavily on foreign workers for menial jobs, and the Indonesian embassy says about 300,000 of its national are employed here as maids.

In 2006 Malaysia rejected a proposal to set a minimum wage of 500 ringgit (150 dollars) a month for Indonesian domestic helpers and most are paid between 400-500 ringgit to work for long hours with few days off.

Jakarta will seek the changes at an upcoming meeting in Kuala Lumpur.

Environment/natural disasters

Activists criticize environmental rating

Jakarta Post - August 6, 2008

Adianto P. Simamora, Jakarta – A government environmental report praising some of the country's biggest polluters will lead to further deterioration of the environmental situation, according to green groups.

Furthermore, they said they suspected the Proper (environmental performance rating of companies) rating system was designed to help the polluters improve their image and silence critics.

"Many of the companies in the report are not eligible for green credits," Indonesian Environmental Forum (Walhi) executive director Berry Furqan told The Jakarta Post on Tuesday.

"The assessment shows the government lacks the will to take serious action to improve the environment and force companies to uphold better management of the environment."

The Proper system gives companies a rating of gold (the highest), green, blue, minus blue, red, minus red and black (the lowest), depending on their performance against government environmental management standards. The assessment is not mandatory.

Walhi particularly questioned the minus ratings, which it claimed were created so polluters could avoid receiving the worst rating. "If the government wants to enforce the law, there is no need to use minus blue or minus red. It is not fair," Berry said.

Walhi plans to file an official protest with the environment ministry over the report.

The ministry announced the Proper rating of 516 companies last week based on the companies' air and water pollution control, environmental impact analysis (Amdal) and implementation of corporate social responsibility.

Green ratings were awarded to 46 companies that surpassed the environmental standards set by the government. They included PT Holcim Indonesia, PT Riau Andalan Pulp and Paper Mill, PT Toba Pulp Lestari, Tbk, PT Newmont Nusa Tenggara, PT Chandra Asri, PT Unilever Indonesia, PT Semen Gresik and PT Indah Kiat Pulp and Paper.

The blue rating went to 180 companies that complied with the government's environmental standards, including PT Lapindo Brantas in Sidoarjo, ConocoPhillips Indonesia Ltd, PT Medco EP, PT Pertamina and PT Lippo Cikarang.

The blue minus rating was given to 161 companies including PT Dow Chemical Indonesia, PT Freeport Indonesia, PT Aneka Tambang, PT International Nickel Indonesia and PT Indo Lampung Perkasa. Network for Mining Advocacy (Jatam) coordinator Siti Maimunah said the Proper rating was of greater benefit to companies than to the environment or to communities living near the companies' operational areas.

"The Proper program has prompted the companies to manipulate data," she said. The government assessed companies only by their managerial performance and the documents they submitted, she added.

A member of the Proper team, Gempur Adnan, denied allegations the minus ratings were made to accommodate the interests of big companies. "To meet the minus blue rating is not that easy for companies. They must work hard to improve their environmental management," he said.

He also denied there were any backroom deals with companies, saying the process was completely transparent and came under the review of an independent team consisting of activists and media.

Forest fires hit Riau, Central Java

Jakarta Post - August 6, 2008

Rizal Harahap and Suherdjoko, Pekanbaru, Semarang – Forest fires have broken out in several places in Riau and Central Java provinces over the past few weeks, as this year's dry season hots up.

In Riau, forest fire hot spots have broken out since last week in nine of the 11 regencies/municipalities across the province, creating haze in the skies over Riau during the past week.

The nine regions are Dumai municipality and the regencies of Rokan Hilir, Rokan Hulu, Bengkalis, Siak, Kampar, Indragiri Hulu, Indragiri Hilir and Kuantan Singingi.

Meteorology and Geophysics Agency (BMG) office head in Pekanbaru, Blucher Doloksaribu, said Tuesday there were 111 hot spots across Riau on Aug. 1. The figure had increased to 136 two days later.

Thanks to extensive firefighting efforts, however, BMG Pekanbaru detected only 78 hot spots as of Tuesday.

But Doloksaribu said fires would continue to occur until mid- August because rainfall was decreasing and temperatures were rising. Temperatures are currently reaching around 34.2 degrees Celsius, which increases the likelihood of forest fires, he said.

He therefore reminded local administrations to take necessary steps to deal with the fires to prevent the haze from spreading to the skies of neighboring countries Malaysia and Singapore.

In response to the situation, Riau Governor Wan Abubakar has instructed all affected regencies and municipalities to deal with the fires and keep in touch with the provincial administration for coordination.

He also called on all concession holders in the province to act quickly as soon as fire breaks out in their forests and not to depend on government aid in doing so.

Wan also asked his people not to light fires to burn off fields for farming activities.

"Otherwise, we will always receive protests from neighboring countries. This will create a negative image of Riau in particular and Indonesia in general," Wan said.

He therefore called on the police to take severe action against any company or people that failed to extinguish fires as soon as they broke out.

"Field and forest fires will never come to an end unless such stern action is taken," he said.

Head of Riau's Natural Resources Conservation Office, Rachman Siddik, said fires had occurred in abandoned concession forests, empty fields and forests bordering on horticultural areas.

"Conservation forests so far are secure. Hopefully we will be able to put out the fires within a few days," Rachman said.

Rachman said he had deployed firefighting teams to deal with the fires in Siak, Bengkalis, Indragiri Hilir, Indragiri Hulu and Dumai. Every region gets two teams comprised of 15 people each.

Meanwhile, in Central Java, state forest company Perum Perhutani Unit I said it had received at least six reports of forest fires from across the province since mid-July. The reports include forest fires in Balapulang, East Pekalongan and Banyumas, and on the slopes of Mount Merapi in Magelang regency, which borders Yogyakarta province.

The total area affected by fires is estimated to have reached more than 200 hectares, excluding that on the slopes of Mount Merapi.

Head of the company's forest security section Kurnia Dewi told The Jakarta Post recently that causes of fires ranged from human carelessness to natural factors.

Rare species trade persists in Sumatra

Jakarta Post - August 2, 2008

Khairul Saleh, Palembang – The government should mete out the stiffest punishment against anyone involved in the trade of protected wildlife to deter recurrences of the crime, said a conservationist Friday.

On July 30, the police busted a wildlife trading syndicate involved in a large-scale export of anteaters.

"They have clearly violated the law on the protection of rare wildlife species. Whoever is involved, be they traders on the local level, middlemen, exporters and officials related to the protection and trade of wildlife, should be harshly punished to prevent the same thing from happening," said South Sumatra chapter Indonesian Forum for the Environment (Walhi) head Sri Lestari in Palembang on Friday.

The discovery of large volumes of protected wildlife for export, Lestari said, showed the extent of wildlife trade dealings in Palembang, which have occurred for a long time.

The recent crackdown on the illegal trade illustrated how lax government supervision was on the protection of rare species, she added.

"The current extent of the trade is likely due to backings from corrupt officials," Lestari said.

The anteater (manis javanica) is a protected mammal species in Indonesia and is regulated under the 1990 law on the protection of rare wildlife species, which stipulates that it is prohibited to kill, hurt, hunt, keep or trade in live or dead anteaters, including their parts.

"Violators face a maximum five years' imprisonment and Rp 100 million (US$11,000) in fines," Lestari said. Police on July 30 seized 8.25 tons of frozen anteater meat, 200 tons of dried anteater skin, including 85 anteater gall bladders, all ready for export, from an anteater processing facility in Alang-Alang Lebar, Palembang.

The state is estimated to have incurred a loss into the tens of billions. Based on a press release from the police, the price of anteater meat on the local market can fetch up to Rp 250,000 per kilogram. Police have detained 11 suspects, one of them a Malaysian named E Kong Seng, alias Aseng, 29. According to the police, the detainees will be taken to the National Police headquarters in Jakarta soon.

Aseng admitted to running the business by using a tourist visa. He came to Palembang every two months and returned to Malaysia to extend his visa only to return to Palembang again, doing so repeatedly.

Aseng admitted the illegal trade involved various parties. He confessed to have bribed officers at the airport, port, Natural Resources Conservation Center, and high-ranking police and military officials.

"I got my supply of anteaters from petty traders who come to the factory. We sorted them according to customers' orders. Some ordered live anteaters, but most orders were for the skin," Aseng said.

He said the meat was used for consumption and as a raw material in traditional drugs, while the leather was used to make bags, wallets and home accessories.

The National Police received information from the Singaporean police after they found out that the anteater skin originated from Indonesia.

Based on investigations, there are at least three anteater processing centers in the country, namely Sulawesi, Kalimantan and Sumatra.

Health & education

3.4 million Indonesians lose their sight

Tempo Interactive - August 4, 2008

Dianing Sari, Jakarta – About 1.5 percent of 228 million Indonesians or 3.4 million are suffering from eye problems that leads to blindness. Health Minister, Siti Fadilah Supari, said that it is mostly caused by cataract. "Half of them have cataract," she said at the exhibition of healthy eyes in Jakarta yesterday.

She also mentioned glaucoma, refraction and retina anomaly as other common sight problems found in Indonesia. The number of cataract sufferers increases every year by 0.1 percent.

Prevalence of refraction anomaly reaches 22.1 percent. "More than 10 percent is suffered by children age 10-19 years old," she said. Unfortunately, not every child can afford to buy eyeglasses while 80 percent of blindness can be prevented by medical action.

In response, the Health Department plans to increase the recipients of social health insurance this year from 76.4 million to 100 million.

Siti said the government cannot work on their own for solving this problem. She suggested community organizations, health community centers, hospitals, and Indonesian ophthalmologists associations be involved.

Meanwhile, the Matahati organization, the host of the exhibition of healthy eyes, targeted to give cataract surgery to 5,000 patients.

Sutarto, the chair of Matahati, said one person is blind every three minutes in Indonesia. He explained that among four million people with eye problems, two million have cancer.

War on corruption

Paskah said to help cover up BI scandal

Jakarta Post - August 7, 2008

Jakarta – State Minister for National Development Planning Paskah Suzetta helped cover up the disbursement of Bank Indonesia funds to members of the House of Representatives, a former BI official said Wednesday.

Rizal Anwar Djafara, the former head of BI's public relations bureau, told the Corruption Court that Paskah arranged and attended several meetings to help find an exit strategy in the case, Antara reported.

In 2006, Rizal said, Paskah arranged a meeting between then BI governor Burhanuddin Abdullah and Golkar lawmakers Hamka Yandhu and Bobby Suhardiman, former members of the House's Commission IX on financial affairs, to discuss the issue at a hotel.

"When we (BI officials) arrived, Paskah was not there. But Hamka told us about Paskah's proposal," Rizal said in his testimony as a witness in the trial of Burhanuddin.

The Corruption Eradication Commission (KPK) in its indictment alleges the BI board of governors in 2003 agreed to disburse a total of Rp 100 billion from the BI Indonesian Banking Development Foundation (YPPI). Some Rp 31.5 billion allegedly went to 52 members of Commission IX.

Paskah was then a member of the commission. In December 2005, President Susilo Bambang Yudhoyono appointed him as a minister, replacing Sri Mulyani Indrawati.

The KPK said the money was distributed by former BI communications bureau head Rusli Simanjuntak to Hamka and Antony Zeidra Abidin, another Commission IX member. The alleged misappropriation of the BI funds was first noticed by the Supreme Audit Agency (BPK) during an audit of BI's 2006 financial report.

Rizal said the meeting resulted in an approval of Paskah's three suggestions.

"First, to set up a scenario that the money stopped at Rusli and did not go further to the lawmakers, thus making it Rusli's responsibility. Second, to make a political deal between BI and BPK. Third, to keep the case from going to court," Rizal said.

The KPK alleges BI disbursed the money to the commission members to expedite the settlement of BI liquidity support (BLBI) corruption cases and an amendment to the BI law.

Hamka previously testified to the court each of the commission's 52 members accepted at least Rp 250 million from him and Antony. He also testified he personally gave Rp 1 billion to Paskah in four payments, and Rp 250 million to Malam Sambat Ka'ban, the current forestry minister.

President Susilo Bambang Yudhoyono on Monday summoned Paskah and Ka'ban to respond to the allegations. The ministers have been allowed to retain their posts until investigators formally name them as suspects.

Rizal also told the court BI officials and Antony held two meetings prior to the 2006 meeting. He said in the first meeting, Antony complained to Burhanuddin about being made a scapegoat and questioned why he was the only one named in the BPK audit report.

The court also heard the testimony of former BI analyst Asnar Ashari, who said Antony had asked for Rp 45 billion from BI. "But the bank could only afford Rp 31.5 billion," said Asnar, who admitted to giving the money, together with Rusli, to Antony in five installments.

Rusli and former BI legal affairs deputy Oey Hoey Tiong are currently on trial for distributing the money. Oey is charged with giving Rp 68.5 billion to five former BI officials implicated in the BLBI corruption case.

Ministers' graft scandal has experts divided

Jakarta Post - August 6, 2008

Desy Nurhayati, Jakarta – The move by President Susilo Bambang Yudhoyono to retain two ministers implicated in a major corruption case drew mixed reactions from political analysts here Tuesday.

Syamsudin Harris of the Indonesian Institute of Sciences said Yudhoyono should have taken firm action by firing State Minister of National Development Planning Paskah Suzetta and Forestry Minister Malam Sambat Ka'ban without waiting for a court verdict.

"This is more about a political issue that can be separated from a legal process. The legal process is the concern of the court, but the President can actually initiate a political step (without waiting for the due process of law)," Syamsudin said.

"The point is whether the President still trusts Paskah and Ka'ban because politics is about trust. And unfortunately, he still trusts them."

Yudhoyono decided Monday to take no action against the ministers until a court had proved their involvement in the alleged misuse of Rp 100 billion from Bank Indonesia.

The decision came after Yudhoyono questioned both Paskah and Ka'ban during an hour-long meeting at the presidential office to get clarification about their connection to the case.

Yudhoyono promised to suspend Paskah and Ka'ban as Cabinet ministers if they stood trial for graft and to dismiss them if a court found them guilty.

Syamsudin criticized Yudhoyono for being "inconsistent", as last year he replaced then justice and human rights minister Hamid Awaluddin and state secretary Yusril Ihza Mahendra amid controversy over their involvement in helping the son of former president Soeharto, Hutomo Mandala Putra, reclaim money from London-based BNP Paribas.

"In fact, Hamid and Yusril had not been found guilty in the case. The President should have done the same thing (to Paskah and Ka'ban)," Syamsudin said.

He said the President might have been pressured to be lenient, given that Paskah is a member of the country's largest political party, Golkar, and Ka'ban is former chairman of the Crescent Star Party, one of the coalition parties supporting Yudhoyono's government.

"The action he takes is a politically safe action but it is neglecting the public interest," Syamsudin said.

However, Indra J. Piliang, a political expert from the Centre for Strategic and International Studies, expressed a contradictory view, saying it was the President's prerogative to fire or retain the two ministers.

"The thing is that the President should take immediate action for the sake of maintaining his government's stability during his remaining months in office. In this case, Yudhoyono's leadership is at stake," he said.

"I think the President cannot just replace his ministers right away without more evidence from the court. He should respect the principle of the presumption of innocence."

Indra did not comment on similarities between the Hamid-Yusril case and the Paskah-Ka'ban case, simply saying "the government has been weak since Yusril left the Cabinet".

"Look what happened to the Cabinet after Yusril was dismissed," he said. "It became paralyzed and lost the courage to face the House of Representatives. That was what happened when Yudhoyono ousted his best man."

Another witness names Paskah in BI corruption case

Jakarta Post - August 5, 2008

Andreas D. Arditya, Jakarta – State Minister for National Development Planning Paskah Suzetta has been implicated for the second time in as many weeks in the alleged misappropriation of Rp 100 billion (US$10.9 million) of Bank Indonesia funds.

Former BI deputy governor Aulia Pohan claimed he heard from defendant Rusli Simanjuntak, former BI communications head, that Paskah held a meeting with then BI governor Burhanuddin Abdullah and Rusli in 2005.

"There were several important things Rusli failed to inform me about, such as a meeting between Burhanuddin and Paskah, which was also attended by Rusli, Lukifatul and Lukman Benyamin at Le Meridien Hotel in Jakarta," Aulia said in his testimony.

Aulia, whose daughter is married to the son of President Susilo Bambang Yudhoyono, was responding to a question by prosecutor Agus Salim if he had anything else to disclose. The panel of judges, however, refused to pursue the statement, saying it should come from Rusli himself.

Aulia said Rusli told him about the meeting when Aulia visited him at the Mobile Brigade detention center in Depok in early March 2008. No clarification was given on when exactly the meeting took place and for what purposes.

Last week, Golkar Party legislator Hamka Yandhu testified before the same court that he gave fellow legislators Paskah and Malam Sambat Ka'ban Rp 1 billion and Rp 300 million each from the allegedly misappropriated BI funds in 2003. Ka'ban is the current forestry minister.

Both Paskah and Ka'ban were summoned by the President on Monday to clarify Hamka's allegations.

In his testimony, Aulia said members of the BI board of governors ordered the disbursement of the funds to a public relations committee.

Aulia admitted to ordering Rusli to disburse the money to members of the House of Representatives' Commission IX (which oversees financial affairs) in 2003. "I ordered Rusli to do it because it had been decided earlier on by the board of governors," Aulia said.

The Corruption Eradication Commission (KPK) alleges the BI board of governors agreed in a June 3, 2003, meeting to disburse the money to House Commission IX to resolve the BI liquidity support (BLBI) case and the amendment of the BI law, and to five former BI officials who were implicated in the BLBI corruption case to obtain legal assistance.

Burhanuddin, Rusli and former BI legal affairs deputy Oey Hoey Tiong are standing trial for the case. Aulia and three other former BI deputy governors – Maman Soemantri, Bun Bunan Hutapea and Aslim Tadjuddin – are also implicated in the case.

Aulia insisted the purpose of the disbursement was to promote BI's image in the public, with help from the legislators. The promotion was considered necessary in 2003 after the Supreme Audit Agency gave the bank's 2002 financial report a disclaimer status.

Groups urge KPK to probe Ka'ban, Trimedya for illegal logging

Jakarta Post - August 4, 2008

Abdul Khalik, Jakarta – A letter sent by Forestry Minister Malam Sambat Ka'ban to the police to defend convicted illegal logger Adelin Lis should prompt the KPK to summon him for questioning, civil society groups said Sunday.

The Indonesian Environmental Forum (Walhi) also demanded the Corruption Eradication Commission (KPK) probe Indonesian Democratic Party of Struggle (PDI-P) lawmaker Trimedya Panjaitan for allegedly receiving bribes from Adelin.

Walhi also said Ka'ban had defended Adelin from the moment police had begun investigating her.

"The letters and the statements are indications that Ka'ban has played a role in helping Adelin escape justice in district and high courts," Walhi executive director Berry Nahdian Furqon told The Jakarta Post on Sunday.

On April 21, 2006, Ka'ban sent a letter to the North Sumatra chief of police informing him that Adelin was the holder of a forest concession (HPH) employing thousands of workers, and underlining his contribution to the country's foreign reserve.

That's why, Ka'ban said in his letter, the government must support Adelin's firms.

"Ka'ban stressed that Adelin only violated administrative regulations, not the criminal code. Administrative affairs was the Forestry Ministry's jurisdiction and not the police's, Kaban told the police chief," Berry said.

However, police reported Adelin had illegally cut down trees in protected areas in Mandailing Natal regency and Batang Gadis National Park, both in North Sumatra, and had sold them abroad.

During Adelin's trial, Ka'ban also corresponded with Adelin's lawyer, defending him from criminal charges. In the end, the Medan District Court acquitted Adelin of all charges last year.

The Supreme Court annulled the ruling last Friday, instead convicting Adelin of illegal logging and sentencing him to 10 years imprisonment. However, Adelin fled the country before an arrest could be made.

"Ka'ban must be questioned by the police on why he defended Adelin after the Supreme Court's ruling," Febri Diansyah of the Indonesia Corruption Watch (ICW) said Sunday.

Ka'ban has dismissed all accusations linking him to Adelin, including that he ever met or spoke with the businessman.

Febri said the ICW had documents proving that Rp 250 million (US$27,747) had been transferred from Adelin's account to Trimedya's account in 2006. Trimedya denied the allegation, claiming the account was not his.

Calls mount for ministers implicated in graft to go

Jakarta Post - August 4, 2008

Jakarta – Pressure is mounting for President Susilo Bambang Yudhoyono to dismiss two Cabinet ministers who have been implicated in a 2003 corruption scandal.

The President, however, is holding firm to his preference to hear firsthand the two state officials' versions of their alleged involvement in the case.

Lawmaker Gayus Lumbuun of the Indonesian Democratic Party of Struggle (PDI-P), who is the House of Representatives' honorary council deputy chairman, urged Yudhoyono not to wait for a legal ruling on the involvement of State Minister of National Development Planning/National Development Planning Board (Bappenas) chairman Paskah Suzetta and Forestry Minister Malam Sambat Ka'ban.

"The President should not only rely on a normative legal ruling. He must also take into account the appropriateness of any such violation by his ministers," he said here Sunday as quoted by Antara.

Yudhoyono has summoned Paskah and Ka'ban for questioning on Monday to hear their versions of their alleged involvement in the corruption case where the Bank Indonesia board of governors allegedly paid money from BI's Indonesian Banking Development Foundation (YPPI) to former BI officials and some lawmakers.

Last week, Golkar lawmaker Hamka Yandhu testified in the Corruption Court that Paskah and Ka'ban received Rp 1 billion (US$110,988) and Rp 300 million, respectively, from Rp 31.5 billion allocated by BI officials for members of the former House Commission IX on financial affairs to smooth the way for amendments of the BI Law and resolution of the BI liquidity support corruption case.

Hamka said he personally gave the money to Paskah, Ka'ban and 49 other commission members.

But Ali Mochthar Ngabalin, deputy chairman of the Crescent Star Party (PBB) – of which Ka'ban is a member – called on the President not to rush into a decision to reshuffle the Cabinet following the accusations.

"The President should be wise in handling the case. He should encourage his ministers to focus on their duties instead of thinking about a reshuffle," he said.

Yudhoyono's Democratic Party has left the reshuffle issue to the President.

"We believe in the ongoing legal process and the legal apparatus handling the case. As for the two ministers' positions in the Cabinet, that comes fully under the President's authority," party deputy chairman Anas Urbaningrum said.

Hamka himself reportedly said he did not want to drag his colleagues into the case.

"Pak Hamka did not wish his colleagues to be declared suspects or defendants in the case. He only wanted them to return the money to the state," said Yahya Rasyid, who claimed to be one of his legal advisors, as quoted by kompas.com.

The Corruption Eradication Commission (KPK) has also been urged to seriously pursue Hamka's testimony. "The KPK must pursue those who received payments from the BI fund," Antara quoted Sophian Kasim, chairman of the Relawan Bangsa legal aid center, as saying Sunday.

He said the KPK should not be discriminatory in investigating corruption. "With their extraordinary power, there's no reason for the KPK not to immediately process their cases legally," he said.

Scores of officials grilled, tried for graft

Jakarta Post - August 4, 2008

Bandung, Makassar, Yogyakarta – A total of at least 78 regional high-ranking officials across three provinces are either being tried or investigated for alleged corruption.

Most of those involved in the three provinces, South Sulawesi, West Java and Yogyakarta, are incumbent and former regency legislators.

The Makassar District Court in South Sulawesi last week started the trials for current and former Luwuk regency administration executives and legislators on corruption charges in a case involving more than Rp 1 billion (US$111,000) of regency funds.

The 32 accused are former Luwuk regent Basmin Mattayang, who is currently seeking reelection, former regency secretary Andi Baso Gani, regency financial department head Muhammad Sabila, regency legislative council chairman Hidayat Nur Talib, and 28 current and former legislators in the regency legislative council.

They are accused of having either disbursed or received a total of Rp 1.05 billion from the miscellaneous expenditure allowance in the 2004 regency budget.

For misusing the money, the 32 have been charged with corruption, which carries a maximum penalty of 20 years in prison, the prosecutors said.

In West Java, police are investigating an alleged scam related to a social welfare fund in the Garut regency budget worth a total of Rp 72.02 billion. Forty-five local legislators have been implicated in the case.

The investigation was launched after a report by Garut Government Watch disclosed the findings in an audit by the Supreme Audit Agency (BPK) of the alleged misappropriation of the fund in 2007 through a social security net scheme worth Rp 1.25 billion.

Investigations have found that funds have reportedly been disbursed to the councilors since 2005, reaching a total of more than Rp 72 billion.

"The BPK audit detected many fictitious building projects and nonexistent villages. We will find out where the funds have gone," West Java Police spokesman Sr. Comr. Dade Ahmad told The Jakarta Post in Bandung over the weekend.

Police are now seeking permission from West Java Governor Ahmad Heryawan to question the 45 councilors.

In Yogyakarta, legislator Jarot Subiyanto, also a former regency legislative council chairman, was arrested early last month by Yogyakarta Police for alleged corruption in a textbook procurement project, involving Rp 13 billion.

Two regency executives, head of Sleman education office M Bahrum and project leader Matsoeko, were found guilty in the same case. Six other officials are standing trial in Sleman District Court.

Police are still investigating the case and said it might involve more suspects.

"We have gathered enough evidence about Jarot's involvement and therefore named him a suspect," Yogyakarta Police chief Brig. Gen. Untung S Radjab said after the arrest.

Islam/religion

Indonesian hardliners rally against 'deviant' sect

Agence France Presse - August 4, 2008

Jakarta – Hundreds of white-clad Muslim hardliners took to the streets of the Indonesian capital Monday to demand the government ban a minority Islamic sect branded "deviant" by top clerics.

Firebrand cleric Abu Bakar Bashir was among more than 1,500 protesters from various Islamist groups who chanted slogans, shouted Allahu akbar (God is greater) and waved banners condemning the Ahmadiyah sect.

They blocked the street in front of Jakarta's presidential palace to demand President Susilo Bambang Yudhoyono issue a decree to ban the sect, which has been the subject of months of heated debate.

Bashir, who was convicted but subsequently cleared of conspiracy over the deadly Bali bombings of 2002, told the crowd through a loudspeaker that the sect was "the most dangerous enemy of Islam."

"Ahmadiyah is the enemy of Islam. They are the infidels that have been trying to destroy Islam, not using violence but through their deviant principles," he said. "Ahmadiyah must be dissolved as it is more dangerous than communism."

The controversy has raised questions about tolerance and pluralism in the world's most populous Muslim country, where religious freedom is a constitutional right.

Calls to ban Ahmadiyah have been mounting since June when the government ordered the sect, which has peacefully practised its faith in Indonesia since the 1920s, to stop spreading its belief that Mohammed was not the last prophet.

The ministerial decree fell short of the ban demanded by Muslim leaders after the country's top Islamic body issued a fatwa describing the sect as "deviant."

Ahmadiyah, which claims 500,000 followers in Indonesia, holds that its founder Mirza Ghulam Ahmad was the final prophet and not Mohammed, contradicting a central tenet of mainstream Islam.

'Ulema without borders' to promote global peace

Jakarta Post - August 2, 2008

Abdul Khalik, Jakarta – More than 300 Muslim scholars ended a three-day international conference here Friday with a decision to form an ulema body to address global conflicts within the Muslim world.

"We decide to establish Ulama sans Frontieres (ulema without borders," the scholars from some 70 countries said in their "Jakarta Message" at the close of the third International Conference of Islamic Scholars (ICIS).

They said the front would embrace ulema regardless of their different mazhab (schools of thought) and nationalities to help resolve intra-faith conflicts and wage a campaign for world peace.

These ulema will "play a more active role in waging a campaign of compassion and comprehension", added the statement.

It said the Ulama sans Frontieres would have offices in East Asia/the Pacific, South/Central Asia, the Middle East, Africa, America and Europe.

Indonesian Foreign Minister Hassan Wirayuda, who replaced Vice President Jusuf Kalla to close the conference, praised the establishment of the body as a way to strengthen conflict prevention and peace building.

"With compassion and dedication to peace and social justice, the ulema will bring the message of peace to the Muslim world," he said in his closing remarks to the conference co-hosted by Hassan's office and Nahdlatul Ulama (NU), Indonesia's largest Islamic organization.

Hassan said he hoped the ulema body would be able to formulate measures to overcome political, economic and social barriers in efforts to promote global peace and development.

NU chairman Hasyim Muzadi said Islamic scholars in the new body would be those able to transcend their own national and sect boundaries so all Muslim groups could accept them.

"We have yet to build a culture of peace and dialogue that may overcome the trend of aggression and ignorance that pervades the Muslim world and the rest of humankind.

"But I am confident if we work in concert we can uncover an effective and durable solution to these problems," he said at the closing ceremony.

Practical actions outlined in the "Jakarta Message" for the new body include capacity building of Muslim scholars at all levels in peace building and conflict prevention, the study of conflicts in the Muslim world and the establishment of an early warning system for conflicts at grassroots levels.

The Islamic scholars also vowed to boost the protection of children, women, the elderly and those with disabilities while conducting efforts to empower the Muslim youth and women.

They expressed a commitment to helping eradicate poverty, depravation, illiteracy and all forms of injustice, and encouraged the media to provide balanced and objective coverage of issues in the Muslim communities without creating an Islamophobia or demonizing the religion.

Elections/political parties

PRD activists who have changed their political clothes

Indo Post - August 7, 2008

During the era of Suharto's New Order regime, People's Democratic Party (PRD) activists were very popular. The socialist based organisation was known as a group of young people who resisted Suharto. During the era of reformasi however, they have been unable to find a place for themselves and remain unpopular.

The 1999 general elections were test case for the PRD. As it turned out they failed to garner the 2 percent of the vote required to survive. Since then, the PRD's – which was so popular in the eyes of students devoted to socialism – has gradually dropped out of sight.

In the lead up to the 2009 legislative and presidential elections, they tried to reincarnate themselves with the name Papernas (National Liberation Party of Unity). But, they failed to register themselves with the General Elections Commission. So, where are these prominent party figures that were known as militants during the era of the New Order?

Although they are not taking part in the elections, a number current and former PRD cadre have chosen their own roads to get into parliament. Former PRD leader and the founder of the socialist orientated party, Budiman Sudation, joined the Indonesian Democratic Party of Struggle (PDI-P). Former PRD general chairperson Yusuf Lakaseng now sits as one of the central board of directors with the Star Reform Party (PBR). Former PRD general secretary Faisol Reza meanwhile picked the National Awakening Party (PKB) as his political vehicle. Just recently Papernas general chairperson Dita Indah Sari also decided to join Lakaseng in the PBR.

The political faucet, which was opened wide after the fall of the Suharto regime, gave birth to a multi-party political system. It is this situation that was one of the reasons that these movement activists changed their political direction to one that was more practical. "The parliament must be filled with people who are sincere and clean," said Lakaseng when contacted by the Indo Post last night.

Lakaseng has come forward as one of the PBR's legislative candidates for the Central Sulawesi electoral district. The man born in the Parigi Moutong regency says that there are several factors that will be advantageous to his candidacy. This includes the fact that there are still no people's representatives from the regency where he was born. "I have been developing potential voters for the last two years now", he added.

Lakaseng denies that there are basic ideological differences between the PRD and the PBR, which is ipso facto an Islamic party. According to Lakaseng, the PBR has a socialist-religious base. In addition to this, under the leadership of PBR general chairperson Bursah Zarnubi, the PBR has provided extensive opportunities to young people. "Young people like me have been given the opportunity to become members of the central board of directors," he said.

Another PRD activist who has joined and an established political party is Aan Rusdianto (34). A victim of the 1998 abductions of student activities, he chose the PKB as his political vehicle. The man born in Ciamis, West Java, and drop out from the University of Diponegoro says that his reason for joining the PKB was because of Nursyahbani Katjasungkana, an activist and PKB legislator known as a defender of women's rights. But, soon after the grassroots membership based party split, she was dismissed from her position as the deputy secretary of the Jakarta Special Province regional leadership board.

As an "alumni of the 1998 abductions", said Rusdianto, he is not alone in the PKB. There are also other victims of the abductions such as former PRD leader Faisol Reza. In an email sent to the Indo Post (the Java Post Group) last week, he claimed that he is still a member of the PKB's board of directors in Parung (Bogor). Earlier, news reports appeared saying that Reza had joined the Gerindra Party (Great Indonesia Movement Party, established former army special forces chief Prabowo Subianto). "It is not true that I have joined the Gerindra Party", he wrote.

But, why then did Dita Sari choose to join the PBR, an Islamic based party? Sari does not have a problem with this, because many of the PBR's programs are in accord with her idealism. Among others this includes economic self-sufficiency that is not dependent upon foreigners, the option of abolishing the foreign debt and economic development in rural areas as a priority.

Sudjatmiko, who has not been active with the PRD since 2001, said that the spirit of reform in a democratic framework still requires parties as political vehicles. "Idealistic struggles cannot be carried out from outside the fence," he asserted.

Like Sari and Lakaseng with the PBR, or Reza joining the PKB, Sudjatmiko also has a justification for joining the PDI-P. "The PDI-P is taking up the issues of nationalism, pluralism and populism, it seemed, to be closest to my vision", he said. (cak/nas/pri/tof)

[Translated by James Balowski.]

Parties 'serve corporate interests'

Jakarta Post - August 6, 2008

Dian Kuswandini, Jakarta – Indonesia has seen regime changes, but the tyranny of capital has always determined the road to power, with the democratic process benefiting only the wealthy groups at the expense of the poor majority, political experts said Tuesday.

Politician and law expert Firman Jaya Daeli said because only the wealthy could win costly elections, political parties had long sought support from them to win power, in exchange for privileges that could take the form of policies favorable to the financiers.

"Because capital has played a pivotal role in winning elections, this has opened the door for wealthy groups to enter political parties and seize control of their political agendas, including those designed for the public," Firman, from the Indonesian Democratic Party of Struggle (PDI-P), told a discussion jointly held by the Institute for Policy Research and Advocacy (ELSAM) and the University of Indonesia's (UI) School of Social and Political Sciences.

UI political expert Andrinof Chaniago expressed similar sentiments. "The golden ticket to winning a political race will go to those with huge funds," he said.

"An election victory depends on how much money a political party is investing in it. And no wonder the policies made by those political elites at the House of Representatives have discriminated against the public and served the interests of the wealthy groups who support the parties financially."

Reports are rife that legislative candidates have to donate at least Rp 500 million (US$54,600) to the political party nominating them for the upcoming election in 2009. A number of active and retired military officers reportedly paid up to Rp 3 billion to win support from a political party to contest the Jakarta gubernatorial election last year.

Law expert Abdul Hakim Garuda Nusantara warned the consolidation of political parties and wealthy groups would result in unending power circles, leaving the problem of poverty unresolved.

"Laws and regulations have been made to facilitate capital growth, which will potentially deny the public their interests," Abdul Hakim said.

Citing a few of many examples, he said laws on agriculture, forestry, foreign investment, water resources and electricity were designed to serve wealthy groups.

"While forests, land, water and electricity should benefit the public at large as mandated by the Constitution, these elite political groups formulate regulations that benefit corporations," Abdul Hakim, former chairman of the National Commission on Human Rights, said.

That wealthy groups are ruling the roost is manifest in the failure of nongovernmental organizations to challenge the pro- capital laws in court, he added.

He admitted the state faced difficulties in siding with the disadvantaged majority, mainly due to stiff global competition.

"The competition has forced the state to boost investment in order to woo investors. To boost investment, the government has to support pro-investment laws," Abdul Hakim said. "Unfortunately, while competing, the state is ignoring its own citizens."

Megawati maintains lead over SBY: Survey

Jakarta Post - August 5, 2008

Abdul Khalik – Former president Megawati Soekarnoputri and her Indonesian Democratic Party of Struggle (PDI-P) would sweep to victory in both the legislative and the first-round presidential elections if they were held today, a new survey suggests.

The survey, conducted by the Reform Institute in June and July, confirms the results of several other polls, which found Megawati has slipped past President Susilo Bambang Yudhoyono and the PDI-P is keeping a strong lead over the Golkar Party.

Through interviews with 2,520 respondents in 33 provinces, the Reform Institute survey found 19.4 percent of respondents would vote for Megawati in the presidential election, compared with 19 percent for Yudhoyono.

The finding indicates a sharp decline in Yudhoyono's popularity since his government raised fuel prices in late May.

A previous survey conducted by the same pollster in February and March showed Yudhoyono was supported by 24.8 percent of respondents, with Megawati a distant second with 16.8 percent.

Another survey, conducted by the Centre for Strategic and International Studies (CSIS) last month, found Yudhoyono's popularity had dropped to 14.7 percent, compared with 23.2 percent for Megawati.

Earlier in June the Indo Barometer survey found 30.4 percent of respondents would vote for Megawati, compared with only 20.7 percent for Yudhoyono.

"Our survey found that Yudhoyono's drop in popularity was connected with people's negative assessment of his government's performance, especially after it raised fuel prices at the end of May," Reform Institute executive director Yudi Latif said here Monday.

The survey found 68.18 percent of respondents believed the government's policies had failed in general, with 91.35 percent citing the failure to create jobs as the most disappointing policy, and 81.42 percent pointing to the increase in electricity rates and fuel prices.

The survey also showed increases in popularity since February and March for Yogyakarta Governor Sri Sultan Hamengkubuwono X (up from 5 percent to 7.12 percent), former People's Consultative Assembly speaker Amien Rais (from 2.2 percent to 6.14 percent) and former Army Strategic Reserve Command chief Prabowo Subianto (from 0.3 percent to 3.8 percent).

Former TNI chief Wiranto experienced a drop in popularity with only 3.05 percent backing him in June, down from 4.5 percent in March.

In the survey on support for political parties, 22.58 percent of respondents said they backed the PDI-P, with Golkar trailing with 16.23 percent.

The Democratic Party, the Prosperous Justice Party (PKS) and the National Mandate Party (PAN) came in third, fourth and fifth with 10, 9.84 and 5.61 percent, respectively.

The CSIS survey last month and Indo Barometer's poll in June also confirmed the PDI-P had widened its lead over Golkar.

On the question of vice presidential candidates, the Reform Institute survey saw People's Consultative Assembly speaker Hidayat Nur Wahid make a surprise surge as the most electable candidate, with 22.58 percent of respondents saying they would vote for him.

Sri Sultan, Vice President Jusuf Kalla and Wiranto followed with 15.19, 14.23 and 12 percent, respectively.

Star Reform Party signs contract with poor people's union

Kompas - August 4, 2008

Jakarta – The Star Reform Party or PBR has signed a Minimum Commitment with the Indonesian Poor People's Union (SRMI), which will be used to bind the PBR into struggling for the people's interests if they win the 2009 general elections.

The political contract was signed by PBR Deputy General Chairperson R. Muhammad Syafi'i and party General Secretary Rusman HM Ali during the launch of the PBR's electoral registration number of 29 in Jakarta on Saturday August 2.

The Minimum Commitment asserts that the PBR will struggle for national self-sufficiency through accelerating the rescue of national assets, abolishing the foreign debt and national industrialisation. The PBR was also asked to struggle for healthcare guarantees and free education, not to evict the poor from their homes and provide job opportunities for the people.

"Currently only the PBR has signed it. We will also circulate this political contract among other political parties", said SRMI General Chairperson Marlo Sitompul. If the commitment is not undertaken, the SRMI will challenge, control and put direct pressure on the party concerned. Furthermore, the poor will be asked to immediacy withdraw the mandate that has been given.

In a speech, PBR General Chairperson Bursah Zarnubi said that the party has a responsibility in building and generating the people's trust in the nation. The loss of the people's trust in the nation has occurred because they have been abandoned by their leaders.

"Indonesia needs leaders that can provide a solution to the nation and have a commitment to improve the nation's dignity, it doesn't matter it they are old or young", he said. (mzw)

[Translated by James Balowski. Final two paragraphs on comments by Indo Barometer executive director not translated.]

Dita Sari to stand as Star Reform Party candidate in 2009

Java Post - August 3, 2008

Jakarta – The chairperson of the National Liberation Party of Unity's (Papernas) advisory board, Dita Indah Sari, has decided to run as a legislative candidate under the Islamic based Star Reform Party (PBR). The labour activist has been ranked 1 in the East Java V electoral district that covers Klaten, Boyolali, Sukoharjo and Solo (Surakarta) city.

The East Java V electoral district is expected to be a 'hot zone' in the 2009 general elections because a number of other important party figures have also confirmed that they will take part in the contest for the district. They include the daughter of former president Megawati Sukarnoputri Puan Maharani (Indonesian Democratic Party of Struggle), People's Consultative Assembly speaker Hidayat Nurwahid (Justice and Prosperity Party), senior badminton athlete Icuk Sugiarto (United Development Party) and GKR Wandansari or Gusti Mung (Democrat Party).

"Certainly Dita is not Central Javanese. But her husband is Central Javanese," said the deputy general secretary of PBR's Central Board of Directors, Yusuf Lakaseng yesterday, following the launch of the PBR's electoral number of 29 for the 2009 elections at the PBR's central office in Tebet, South Jakarta.

According to Lakaseng, Sari's recruitment as a PBR legislative candidate was because there was similar segmentation (sic) between the PBR's struggle and that of Dita's, who is also the former general chairperson of the People's Democratic Party Central Leadership Committee (KPP-PRD). "We have indeed opened ourselves up to activist circles," he said.

Moreover added Lakaseng, the party is seriously prioritising youth figures with as many as 60 percent of all PBR's legislative candidates being under the age of 40. "This is to provide impetus for acceleration in political regeneration," he asserted. Sari for example, was born in the East Java city of Medan on December 30, 1972 said Lakaseng, so she is still only 36-years-old.

Lakaseng added that in the 2004 elections, the PBR only garnered 2.7 percent of the vote. For the 2009 elections, he continued, the PBR has set a minimum target of 7 percent. "The thing is, we have now built up our party structures every province throughout Indonesia," said Lakaseng, who is a legislative candidate for the Central Sulawesi electoral district.

When asked for confirmation, Sari said that she had indeed become a PBR legislative candidate for Central Java. Is she afraid of competing against a line-up of popular figures from other parties? "For me, this is precisely the big challenge", she answered laughing.

Sari claimed that she does not have a problem with the PBR being an Islamic based party. This is because much of the PBR's program is in accordance with her [views]. For example, economic independence that is not dependent upon foreigners, the option of abolishing the foreign debt and economic development in rural areas as a priority. "I see the PBR as a party that is trying to introduce Islamic principles with a more open understanding," she said.

Moreover, added Sari, in the coming elections the PBR will apply a majority vote system to determine which legislative candidates are elected. "Although it's not perfect and there is perhaps no party that is perfect, all of this can provide us with a sense of comfort", said the winner of the Ramon Magsaysay Award in 2001 (sic).

What about Papernas then? "Papernas still exists, it hasn't disappeared and it hasn't dissolved into the PBR", she asserted.

The chairperson of the PBR's Central Board of Directors, Bursah Zarnubi said that his party is endeavouring as much as possible to embrace youth. Moreover, 30 of the PBR's legislative candidates are still under the age of 30. The party's quota for legislative candidates above the age of 50 is only 15-20 percent. "New voters must be politically literate. Don't let the party become an oligarchy", he said.

With regard to the agenda for a presidential candidate convention that the PBR plans to hold, Zarnubi explained that Central Board of Director functionaries, including himself, will not be allowed to take part in the convention. "So it is impartial and fair so people don't doubt the PBR's commitment. If there are PBR people who are put forward, there will certainly be an internal sentiment," he explained.

Present at the event to launch the PBR's electoral number of 29 in Jakarta on August 2 were party Deputy General Chairperson Raden Muhammad Syafi'i and the PBR's General Secretary Rusman Ali. The event was also enlivened by artists Dewi Yul and Franky Sahilatua. Yul is reportedly being 'enticed' by the PBR to become one of its legislative candidates. Senior Golkar Party politician and former House of Representatives speaker Akbar Tandjung also came to the event. (pri)

[Translated by James Balowski.]

Housewives challenge Star Reform Party to sign social contract

Detik.com - August 2, 2008

Laurencius Simanjuntak, Jakarta – Around 70 housewives went to the Star Reform Party (PBR) offices on Jl. Abdullah Syafei in Tebet, South Jakarta today to challenge PBR general chairperson Burzah Zarnubi to sign a social contract supporting the poor.

The housewives, who were from the Indonesian Poor People's Union (SRMI), issued the challenge during an event launching the PBR's electoral number of 29 for the 2009 general elections.

SRMI general chairperson and coordinator of the action, Marlo Sitompul, proclaimed this commitment to side with the poor. This included protecting the poor throughout Jakarta from the threat of eviction and fighting for free eduction for primary and high- school students in Jakarta in the context of school registration costs, educational management contributions and examination fees.

During the action, the housewives brought a number of posters and banners. One of these read "PBR don't vacillate in opposing evictions" and "PBR don't vacillate in fighting for free education". They also unfurled a banner reading "Free eduction, free healthcare, oppose evictions, job opportunities".

The PBR's election number launching was attended by PBR members and enlivened by singer Franky Sahilatua and activists Ratna Sarumpaet. (nik/fiq)

[Translated by James Balowski.]

Dita Sari and friends 'changes clothes', join Star Reform Party

Detik.com - August 2, 2008

Laurencius Simanjuntak, Jakarta – It appears that the phenomena of 'changing cloths' is becoming commonplace in the lead up to the 2009 general elections. The Chairperson of the National Liberation Party of Unity (Papernas) Advisory Board, Dita Indah Sari, along with a number of her party colleagues have followed suit and joined the Reform Star Party (PBR).

"I have become a member of PBR, and I have put myself forward to become a legislative candidate. My colleagues meanwhile, not Papernas as an institution, around 40 people [have also joined the PBR]," said the former student activist from the 1990s when met by journalists after attending the PBR's electoral number launching at the offices of the PBR's central board of directors on Jl. KH Abdullah Syafii in Tebet, South Jakarta, on Saturday August 2.

Sari did this because through her own party – a party that will not be participating in the elections – she cannot convey her political aspirations. "I have tried to establish a party, Papernas. But we [faced] many obstacles, that were physical in character, even violence in several places", said the woman whose former party was not verified by the General Elections Commission.

Sari said that although she had moved house, there are no parties that are truly clean. She moved because she wanted her political aspirations to find an outlet. "[I] looked for the best from the worse," she asserted.

Papernas members were involved in physical clashes with the Islamic Defenders Front (FPI) and the Betawi Brotherhood Forum on March 29, 2007. The FPI considers Papernas to following a leftist course and to be taking up communist values. (lrn/gah)

Notes:

In a separate article on the same day, Detik.com reported that also present at the launch was Golkar Party powerbroker Akbar Tanjung, a number of celebrities including singers Dewi Yul (who is also considering running as a PBR candidate) and Franky Sahilatua, activist Ratna Sarumpaet, and representatives of 29 worker, farmer and street trader organisations, Mosque leaders, orphans and homeless people.

[Translated by James Balowski.]

Economy & investment

Bank loans stay strong despite high rate

Jakarta Post - August 7, 2008

Aditya Suharmoko, Jakarta – Despite pressure from high inflation and the upward trend in the Bank Indonesia (BI) benchmark interest rate, bank loans managed to grow at 13.8 percent in the first half of the year from 2007, BI data show.

BI's full-year lending growth target stands at 24.6 percent.

BI deputy director of banking research and regulation Wimboh Santoso said Wednesday bank lending in the first semester grew to Rp 1,190 trillion (US$131.16 billion). At the end of 2007, lending stood at Rp 1,045.7 trillion.

Banks channeled Rp 52.3 trillion in loans in June alone. Wimboh said most of the loans were channeled to the trade and industry sectors, which received Rp 12.9 trillion and Rp 9 trillion in loans in June, respectively.

"Loans to all sectors increased (in the first half of 2008), except for the social services sector and electricity sector," he said. Year-on-year inflation in June stood at 11.03 percent, up from 10.38 percent in May, after the government raised fuel prices on May 24, the Central Statistics Agency (BPS) reported.

Since May, BI has raised its key rate by 100 basis points, bringing its rate to 9 percent. With the increasing BI rate, banks will have to adjust interest rates upward, a move it is feared will dampen demand for new loans.

However, Wimboh said based on first semester lending figures, the high inflation and BI rate had yet to have significant impacts on loans – a statement echoed by Ryan Kiryanto of Bank Negara Indonesia (BNI).

The high BI rate, he said, would not severely affect loans, or economic growth, "as long as the central bank keeps the rate in single digits".

Ryan said he did not see rising lending rates dampening demand for loans from businesspeople in the first semester, particularly those opening businesses in areas outside Java.

Indeed, the mining and agriculture sectors, benefiting from a commodity windfall and located mostly outside Java, absorbed a huge amount of loans in the first half.

"It is good because the economy will have an even distribution, and banks may open business units in regions (outside Java) seeing the amount of loans there," Ryan said.

In the second semester, Ryan said lending would have a similar growth pattern as in the first half. "Most of the loans, in rupiah, will be channeled as, first, working capital loans; second, investment loans; and third, consumer loans."

As for growth in percentages, he said working capital loans would have the most growth, followed by consumer loans and investment loans.

Meanwhile, the high growth in lending in the first half was followed by strict and prudent risk assessments, BI said, as seen in the relatively low rate of nonperforming loans (NPLs).

Gross NPLs stood at 4.1 percent as of the end of June, slightly down from 4.3 percent in May, below the maximum tolerance of 5 percent set by the central bank. Net NPLs declined to 1.7 percent from 1.8 percent.

WTO talks collapse over bad deal

Jakarta Post - August 4, 2008

Henry Saragih, Jakarta – Talks on the World Trade Organization's (WTO) Doha Round have collapsed. With figures on the table for agriculture, non-agricultural market access (NAMA) and services, there are still many issues that need to be examined.

There has been a seven-year deadlock in the Doha Round, or the so-called development agenda, with several meetings on the WTO's exclusive decision making process that involves only a limited number of countries. This process has often been decried as a last-minute (and thoroughly undemocratic) attempt to push through agreements.

The interesting thing about these meetings is the Green Room, in which a select few countries are allowed. These are the G-7: the United States, the European Union, Japan, Australia, Brazil, India and China. Other countries are occasionally invited, but it's more often a highly exclusive club.

And it happened again in Geneva. Indonesian Trade Minister Mari Elka Pangestu, representing the G-33 (a group of developing countries focused on agricultural reform), was brushed aside, despite the fact the G-33's Special Product and Special Safeguard Mechanism (SP/SSM) proposal is one of the most important issues in the Doha Round. And the current condition continues to deteriorate as countries begin blaming each other.

The blame game is fast becoming a tradition, delivered in a text by WTO Director General Pascal Lamy. Despite vast differences in political positions within the areas of negotiation, the text is presented as a package, almost impossible to reject.

The idea is to agree on certain issues, including reducing the US agricultural subsidies by 70 percent to around US$14.5 billion, calls to cut European farm subsidies by 80 percent, cuts in tariffs on industrial goods for NAMA negotiations and reduced figures for SP/SSM.

But the G-7 cannot even agree on the text. The US is in a war of words with India and China, Argentina is unlikely to accept the NAMA proposal, South Africa voiced major concerns and so has Venezuela. And Indonesia is also unhappy with the SP/SSM numbers.

Of course developing countries are unhappy. First, the exclusive nature of the talks is intolerable at best. Second, the text completely disregards development processes in developing countries. The right to protect domestic markets is ignored, with developing countries forced to open up their markets to goods from developed countries.

The World Bank said the current Doha Round will only result in a minuscule $16 billion going to the developing world in 2015. This represents 0.2 percent of an average developing country's national income, or less than a penny a day per person in the developing world.

The costs, however, far outweigh the projected gains. Total tariff losses for developing countries under NAMA negotiations amount to $63 billion. And how about the potential loss of millions of jobs in agriculture and manufacturing due to tariff reductions and increased food imports?

In light of this situation, the WTO – under the guidance of Lamy, the G-7, the US or the EU – should not be allowed to force countries to agree on the text. It is more important to rely on the economic process.

"Let us not allow the time pressure to force us to adopt a take- it-or-leave-it approach to the package. Let us reflect on this," Mari warned.

Many people believe the current Doha deal is a bad deal. So prolonging the talks will only hurt more.

Given the multiple global food, climate, energy and financial crises and the unjust development process in the world, it is time to give countries a chance to preserve the policy space necessary to conduct real solutions. More action is needed to pull us out of the false solution we've been stuck with for seven years.

We need to ask ourselves: Is a new approach is needed to the current unfair multilateral trading system? And with the talks up in smoke, how we can initiate a fairer multilateral trading system?

[The writer is the chairman of the Indonesian Farmers' Union (SPI), and the general coordinator of La Via Campesina, the International Peasants Movement.]

On-year inflation hits 22-month high in July

Jakarta Post - August 2, 2008

Aditya Suharmoko, Jakarta – On-year inflation hit a 22-month high in July as the second-round effects of the May fuel price increases were yet to fully materialize, providing leeway for the central bank to raise its benchmark interest rate.

A higher Bank Indonesia (BI) rate would mean the interest rates of bank loans would also be adjusted upward, discouraging lending for both consumers and companies and adding a threat to economic activities in a country where consumption is the main driver of growth.

The Central Statistics Agency (BPS) reported Friday that inflation in July rose 11.9 percent from a year earlier, up from 11.03 percent in June, due mostly to the increasing prices of food and fuel.

"Foods, particularly eggs and chickens, contributed to inflation... caused by supply shock, as the prices of (chicken) feeds soared," BPS chairman Rusman Heriawan said.

State oil and gas firm PT Pertamina raised the price of 12- kilogram-cylinder liquefied petroleum gas (LPG) by 24 percent on July 1.

Monthly inflation in July rose 1.37 percent from June. BPS surveyed 66 cities, all of which suffered inflation. Manokwari in West Papua had the highest rate at 4.33 percent, while Banda Aceh had the lowest at 0.25 percent.

From January to July, inflation accumulated to 8.85 percent, meaning the government may face difficulties in keeping full-year inflation below its 11.4 percent target.

"It will depend on the next five months. There will be the fasting month (in September), Idul Fitri (in October) and Christmas (in December). If the government wants to keep inflation at around 11 percent, it must keep supply chains," Rusman said.

Danareksa Research Institute chief researcher Purbaya Yudhi Sadewa said inflation in June was "above expectations".

"The (second-round) effects of the fuel prices hike, surprisingly, was seen in July. Increasing price, and shortages, of LPG made inflation worse," Purbaya said. "Rumors of a rise in electricity rates and another rise in fuel prices also increased inflation expectations."

The central bank, Purbaya said, would likely raise its interest rate by 25 basis points to 9 percent at its collegial meeting next week to cushion inflation expectations.

BI had raised its interest rate by 25 basis points for three consecutive months from May. As long as BI maintains its key rate below 9.5 percent, the economy will still grow, while dampening inflation expectations, Purbaya said.

Book/film reviews

Book Review - Unfinished Nation

South China Morning Post - August 3, 3008

[Unfinished Nation: Indonesia Before and After Suharto by Max Lane Verso, HK$223. Reviewed by Tom Fawthrop.]

Much of the traumatic story of Indonesia since independence has been buried in mass graves, secret military archives and censored reports.

The grand silence imposed on the media about what really happened in the coup led by former general Suharto in 1965 against then president Sukarno and his government, plus the orgy of bloodshed and the purge that followed – wiping out up to a million Sukarnoists, Chinese, socialists and communists in a year of CIA-backed terror - is still far from broken.

In the decade since Suharto was ousted by popular indignation and people power on the streets of Jakarta there has been no official investigation and none of Suharto's generals have been held accountable for the slaughter.

Max Lane, an Indonesia specialist and translator of the famous works of Indonesian author Pramoedya Ananta Toer, brings an essential understanding to events in Unfinished Nation. He portrays how Indonesia today is torn between two legacies: the post-independence era of Sukarno, who led a popular nationalist and anti-imperialist government, and the 33 years of military dictatorship that followed.

In the early 1960s the US government was deeply concerned about the developmental direction of this resource-rich nation. Many in Washington saw Indonesia as the region's centrepiece. Then US president Richard Nixon characterised the country as "containing the region's richest hoard of natural resources".

But independence hero Sukarno and his non-aligned policies were major obstacles to the realisation of Washington's geopolitical- economic vision. Moreover, his government had a working relationship with the powerful PKI, the parliamentary communist party Washington feared would eventually win power through the ballox box.

Suharto was a part of a cabal of pro-Washington generals who had been plotting the downfall of their president for several years in consultation with the CIA. The coup agenda was clear: annihilate the two-million strong PKI, wipe out all forms of opposition – especially trade unions – and make the country safe for an influx of American corporations and foreign banks poised to exploit those natural resources.

Suharto's New Order regime, as it was officially known, represented not only a purging of people but a purging of ideas and a rewriting of history. Existing history books were removed from schools.

Sukarno's heroic role in overthrowing Dutch colonial rule disappeared from textbooks. Instead the part played by the Indonesian military was glorified. Schools, universities and the media all received sanitised accounts of history emanating from the newly created History Centre of the Armed Forces. Feature films were commissioned to reinforce this indoctrination and falsification. Leftist books were banned and burned. This Javanese version of cultural Stalinism, which assiduously attempted to destroy all political and social memory, received little attention in western countries at the time.

Lane takes us back to the future when in March last year, nine years after the overthrow of Suharto, the country's attorney general banned 14 history textbooks. The historians' "crime" was they had deviated from the official Suharto version of history, which blamed the killing of seven generals on September 30, 1965, on the PKI. That incident had been used as the pretext to stage the coup against Sukarno and the PKI.

By August last year thousands of textbooks had been seized, the government ignoring public petitions for restraint and reason. In several towns another round of book burning took place.

How can Indonesia fully know itself as a nation without knowing its past, asks Lane. If people cannot gain access to truthful and dissenting accounts of the Sukarno years and what followed, without the usual vilification, then the nation remains without a properly recorded history.

But despite the disinformation during the decades of Suharto's rule, the legend of Sukarno still casts a magical spell on voters; and it was the Sukarno name that propelled his undynamic daughter, Megawati Sukarnoputri, to electoral success in 1999.

In Cambodia the atrocities in the Killing Fields of Pol Pot have been extensively researched and recorded since 1979: Phnom Penh has a well-established documentation centre.

Indonesians, however, are still waiting to find out what really happened in 1965 and 1966. Every nation has to come to terms with its ugly past eventually. Germany and Hitler; Cambodia and Pol Pot; Argentina, Chile and their military death squads and dirty wars.

In an age of truth commissions, trials and international justice, Indonesia is an exception. Suharto's generals are determined to keep a lid on the past and immunity reigns. The impunity of the generals, says Lane, has fuelled their brutality and arrogance and led to more crimes, for example in East Timor.

Suharto is dead, but the nation is still trapped by his sinister legacy. Many Suharto obituaries said his greatest crime was the hoarding of billions of dollars in foreign assets. But his transgressions were much more severe: an estimated one million people were butchered in a year. Meanwhile, Indonesia still lacks a government willing to confront its ghosts.

Unfinished Nation: Indonesia before and after Suharto

Direct Action - August 1, 2008

[Unfinished Nation: Indonesia before and after Suharto. By Max Lane. Verso 2008 312 pages. RRP (Australia) $49.95. Reviewed by Nick Everett.]

In May 1998, Indonesian dictator General Mohammed Suharto was forced out of power when his cabinet ministers and the other generals – faced with escalating mass protests – abandoned him. A second upsurge of protest, drawing in even larger layers of the population in November 1998, forced Suharto's successor as Indonesian president, Bacharuddin Jusuf Habibie, to call elections. These events signalled the end of Indonesia's New Order dictatorship, which had dominated Indonesian political life throughout most of the archipelago's post-colonial history.

Unfinished Nation traces the evolution of Indonesia's political struggle from the stirring of an anti-colonial movement at the beginning of the 20th century through to the post-Suharto era. It tells the story of the real heroes of this struggle: Indonesia's workers, peasants and urban poor, whose sustained mass action was the determining force in overthrowing the New Order regime.

The book's author, Max Lane, writes both from the viewpoint of a participant in this movement – as a close collaborator with Indonesian radicals who formed the Peoples Democratic Party (PRD) in the mid-1990s – and someone who has participated in building solidarity with the anti-dictatorship struggle in Australia. Lane came into contact with the first wave of student protest against Suharto in 1975 as a participant in the Bengkel Theatre, led by dissident playwright WS Rendra. Lane translated one of Rendra's plays, Kisa Perjuangan Suka Naga, into English. The play was published in the US and Australia and later performed in several countries.

In 1981, Lane helped found a journal of Indonesian studies, Inside Indonesia, which has contributed to critical debate on Indonesia and roused interest in solidarity with the anti- dictatorship struggle in the 1990s, particularly among Australian university students. During the 1980s, Lane translated Indonesian novelist Pramoedya Ananta Toer's Buru Quartet, bringing to light a rich historical narrative of Indonesia's national revolution that had been suppressed under the Suharto dictatorship.

Returning to Indonesia in 1990, Lane made contact with a younger generation of Indonesian political activists and witnessed the stirring of a new anti-dictatorship struggle that had begun with a series of mass protests against the World Bank-financed Kedung Ombo dam project. There he met with activists who pioneered the revival of street protest mobilisations, factory strikes and land occupations. Many of these activists went on to form the Partai Rakyat Demokratik (PRD - Peoples Democratic Party), which first emerged from underground in 1994. On his return to Australia, Lane was a founding member of Action in Solidarity with Indonesia and East Timor (ASIET), which played an instrumental role in building solidarity with both Indonesia's anti-dictatorship struggle and East Timor's independence movement in Australia during the 1990s.

In his introduction to Unfinished Nation, Lane explains that his analysis draws the conclusion that "Suharto did not just fall from power – he was pushed and the movement that pushed him from power developed as the result of an arduous, conscious effort to build a political movement, based on mobilising masses of people in action." To understand this revival of aksi (protest action), Lane argues that it is necessary to view the rise of the anti- dictatorship movement, and subsequent struggles, within the history of Indonesia's struggle for national liberation. "Mass mobilisation politics", Lane writes, "played a central role in the anti-colonial struggle that began at the beginning of the twentieth century and continued up until 1945 and in a struggle to 'complete the revolution' that unfolded between 1945 and 1965."

Lane draws strongly on the literary novels of Pramoedya to illustrate how Indonesia's national revolution came into being. Pramoedya was, according to Lane, the central literary figure in Indonesia's national revolution and a committed revolutionary. Pramoedya's novels span a thousand years of Indonesia's history. His most famous novels, This Earth of Mankind, Child of all Nations, Footsteps and House of Glass (known together as the Buru Quartet) tell the story of Indonesia's national awakening. They were written during Pramoedya's incarceration on Buru Island.

The first three novels are narrated by their central character, Minke, based on the writer, journalist and political leader, Tirto Adhisuryo. The first indigenous Indonesian to publish a daily newspaper, Adhisuryo used the paper to promote the struggle against Dutch colonialism and the organisation at the forefront of the struggle, Sarekat Islam (Union of Islamic Traders). The traders were the motive force of independent political and cultural life outside the enclaves of native civil servants employed by the Dutch. Sarekat Islam soon attracted all types of traders as well as workers and peasant farmers, claiming a membership of 2 million by 1919.

Lane explains that this organisation split in 1921, with a massive left wing, opposed to both colonialism and capitalism, forming the Sarekat Rakyat (Peoples Union). It was from this current that the Communist Party of Indonesia (PKI) emerged. Although the PKI was brutally suppressed by the Dutch colonial authorities in 1926-27, and again by Indonesian nationalists during the four-year guerrilla war against Dutch attempts to restore colonial rule in 1945-49, it was to re-emerge again in the post-independence era as a mass political force.

According to Lane, "Political parties, and the mass organizations affiliated to the parties, filled a social and cultural vacuum. Four hundred years of colonial intervention had held back energies that were now unleashed, energies to organise social life." Trade unions and peasant organizations flourished, particularly those affiliated to the PKI and the Indonesian National Party (PNI). By March 1958, 6 million workers were organised in trade unions and hundred of thousands involved in strikes. Workers occupied almost every Dutch-owned company in Indonesia, including mines, plantations, factories and import- export houses.

Increasingly ideological divisions emerged. The PKI and Indonesia's first president, Sukarno – whose political strength arose from their organisation of the proletariat and the peasantry – argued that the national-liberation revolution had not been completed by the independence struggle in 1945-49 and that the economy was still in the grip of Dutch and other foreign business interests. The PKI and Sukarno called for the nationalisation of foreign-owned businesses, a role for workers in the management of state-owned enterprises and distribution of land from landowners to tenant farmers and the landless. The army, the right wing of the PNI and the Islamic parties opposed this perspective, instead seeking cooperation with the US and the other imperialist powers and greater access to the economy by foreign capital.

The struggle came to a head in 1965, when Suharto seized power in a military coup and launched a counter-revolution aimed at destroying the PKI and its mass organisations, which claimed a total membership of 25 million. Despite Sukarno's huge popularity, he had few allies in his cabinet, which was dominated by the right wing of the PNI and the Islamic parties. The army gained increasing economic power as its senior officers asserted themselves as managers (and later owners) of nationalised foreign companies, including more than 400 plantations and scores of commercial, industrial and banking enterprises. Indonesia's military officer caste therefore had a vested interest in Suharto's counter-revolution.

Between 500,000 and 2 million Indonesians were slaughtered by the military and militias connected with the right-wing parties. Lane explains: "Most of these people were leaders, activists or supporters of one component or other of the Indonesian left, [and] many of those killed died horribly, as part of a terror campaign. They were decapitated, disembowelled, dragged behind a truck or otherwise cruelly killed. In addition, hundreds of thousands more were detained, [and] at least 12,000 were further detained for another ten to twelve years."

Commenting on the 1990s anti-dictatorship struggle, Lane observes: "The political party most connected to the struggle to re-establish mass mobilisation as a political method has been the PRD." He also observes that the ideological outlook that underpins the PRD's program of socio-demokrasi kerakyatan (popular social democracy) has continuity with the program of Indonesian socialism espoused in the 1960s by Sukarno and other forces on the left. But he writes: "The PRD has not attempted to build upon the theoretical work done by either Soekarno, the PKI or anybody else active prior to 1965." Lane cites the systematic wipeout of the memory of political history that followed by 1965-67 "ideologicide", and the radically different international context, for this discontinuity.

Despite the counter-revolutionary suppression of the memory of Indonesia's national-liberation revolution prior to 1965, Lane observes that "the historical legacy of a class consciousness developed out of collective national struggle, the charisma of Soekarno and the extraordinary rapidity of the re-emergence and spread of aksi [political activity] remains a fundamental feature of Indonesian politics".

The imposition of harsh neo-liberal policies by successive post- Suharto governments has, according to Lane "deepened class divisions, multiplying socio-economic grievances, creating a huge population of workers, semi-proletarians and peasant farmers collectively suffering under this offensive." Lane concludes, "The method of struggle of the national revolution – mass political mobilisation – has been regained. Political organisation of the popular classes has begun, but remains at an early stage, held back by the counter-revolution's suppression of ideological life, of the people's memory of the national revolution that created Indonesia."

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Book Review - Unfinished Nation

Unfinished Nation: Indonesia before and after Suharto