Surabaya, Cirebon, Yogya, Banyumas – Thousands of workers across the nation staged rallies Friday to commemorate International Labor Day, also known as May Day, rejecting outsourcing and contract-based working systems.

Almost all government officials refused to meet the demonstrators. East Java Governor Soekarwo and his deputy Syaifullah Yusuf were the only officials to received representatives of the workers, but could do nothing to help them.

"We can facilitate meetings between workers, employers and related offices. But we have no right to be involved in companies' private matters," Soekarwo told the workers' representatives.

Outside's the governor's office, thousands of employees from various companies in Surabaya, Sidoarjo and neighboring areas grouped together as the Alliance of Labor Rights Defenders (ABM), shouted their demands, urging the administration to help them in their disputes with their employers.

"It is urgent for us (workers) to find fair solutions to all industrial disputes as thus far workers are always treated unfairly," ABM East Java chapter chairman Jamaludin said in the rally, which was guarded by hundreds of police officers.

Jamaludin said the ABM had recorded the dismissals of more than 16,000 workers in East Java over the past four months; many without receiving the severance pay they are entitled to by law.

Airing similar demands, hundreds of workers and students marked May Day by blockading the main north coastal road in Cirebon, West Java, causing a 2-kilometer-long traffic jam.

The blockade of the road, which connects Jakarta and other cities in West, Central and East Java, started at about 9 p.m. and lasted almost two hours, as protesters burned used tires.

"Indonesian workers are still marginalized and underpaid. The application of the contract-based system means employers dismiss their employees easily," chairman of the Cirebon chapter of the ABM Yoyon Suharyono said.

Meanwhile, hundreds of workers from diverse companies, including retail giant Carrefour, marched from Plaza Ambarukmo to the Yogyakarta Monument to commemorate May Day.

Besides denouncing outsourcing and the contract-based system, the demonstrators, under the banner of the Working People's Union (PRP) demanded companies provide overtime payment. "Many employees work more than eight hours a day, but they do not receive overtime payment," Yudi Fajar, coordinator of the rally said.

In Makassar, workers, activists and journalists from the Alliance of Independent Journalists (AJI) commemorated May Day by holding a peaceful rally in front of the South Sulawesi Governor's office, urging the administration improve the welfare of workers. They demanded the government declare May 1 a national holiday.

In Banyumas regency, Central Java, students from various organizations, along with workers, held a rally to mark May Day. They managed to enter state-run RRI radio station and delivered speeches for about 10 minutes before they continued their rally to the regency's legislative council building. However, no councillors received the demonstrators.

Workers get the giant ball rolling in talks with Jakarta

Jakarta Globe - May 2, 2009

Anita Rachman, Arientha Primanita & Amir Tejo – About 8,000 workers demonstrated against mass layoffs and threatened to reject the outcome of the 2009 legislative elections during a rally to mark International Labor Day, or May Day, in Jakarta on Friday.

Anwar Maruf, coordinator for the national working committee of the Alliance for Workers Demands (ABM) – an umbrella organization of 33 labor groups in the country – said that 700,000 members across Indonesia were demanding that companies prevent mass layoffs and change the contract and outsourcing employment system that often resulted in low wages.

Anwar said that should the government refuse to listen to these demands, workers would reject the outcome of the 2009 elections. "We will never give up, and believe that this action more or less will affect government policy," he said during the annual rally.

A number of trade unions took part in Friday's march from the Hotel Indonesia traffic circle to Merdeka Palace, including the Alliance of Independent Journalists (AJI), the Jabotabek Workers Struggle Federation, the Consortium for Agrarian Reform and Women's Solidarity for Human Rights.

The Jakarta chapter of AJI brought a giant ball to the rally, which was kept up in the air by the crowd from the Hotel Indonesia traffic circle to a spot some 400 meters away from the Merdeka Palace gates – where the inflatable ball was stopped by the police. The rolling of the ball symbolized workers' continuous crusade, organizers said.

"The government does not seem to protect or help workers, they never stand on our side," Anwar said. "That is why this year, we will reject the outcome of both the legislative and presidential elections."

He claimed that most members of his group abstained from voting during the legislative polls. "We have a political stance," he said. "Our members have agreed that we will not vote for leaders who do not side with workers."

Jakarta Deputy Governor Prijanto said the city administration would arrange a meeting between representatives of labor unions, Jamsostek, which is the state pension and workers' insurance firm, and government officials.

The deputy governor, appealing to representatives of nine labor unions during a meeting at City Hall on Friday, said that discussions about workers' rights should not be limited to May Day.

Prijanto promised to arrange a meeting in the next three months to research issues relating to the way companies treated their employees.

"With such a meeting, we can join forces to solve these problems for the sake of our people's welfare, especially the workers," Prijanto said during the talks at City Hall.

He said he welcomed the unions' efforts to engage in dialogue and communicate their demands to the Jakarta government. Union representatives discussed their concerns about the labor law, outsourcing, the contract system and Jamsostek.

"Often the companies do not implement the law and regulations," Prijanto said.

Union representatives and the government reached an agreement to increase communication with the city administration's labor agency about companies' failures to follow labor regulations, Prijanto said.

Despite there being 31,000 factories in Jakarta employing hundreds of thousands of workers, the city's labor agency only has 87 officers to monitor conditions and the performance of the factories' owners.

Unions say that the result of the agency's staffing shortages is companies not being held accountable for breaking labor laws.

Endang Sunarto, from the National Labor Union, said a meeting in the next three months was important for the city administration to find solutions if disputes occurred between employers and workers.

"Since monitoring officers are limited, we would like to help in providing information to the city administration," Endang said. "Then the city can take action to solve labor problems."

Endang said many companies in Kawasan Berikat Nusantara, the industrial zone in North Jakarta, had already laid off workers and filed for bankruptcy.

"They said it was the global financial crises that caused it, but not long after they reopened their businesses and hired outsourced workers," Endang said. ABM members also held a rally in Surabaya, East Java. Some 700 workers rallied in front of the office of East Java Governor Soekarwo, calling for 11 points of change to protect workers, such as stricter law enforcement against companies that violated the minimum wage.

"One of our demands is that troubled labor-intensive companies be forced to become nationalized in order to ensure workers are not laid off," said Jamaludin, the ABM's East Java head.

The East Java governor and his deputy, Saifullah Yusuf, invited labor representatives for a meeting at the East Java administration's office. Soekarwo reportedly wished workers a "happy labor day."

However, he dismissed the possibility of forcing companies to nationalize. "I will follow it up. But, regarding the nationalization, it's not in the capacity of East Java's regional government," Soekarwo said.

Aceh journalists call for decant wage, end to 'envelope culture'

Tempo Interactive - May 1, 2009

Adi Warsidi, Banda Aceh – Journalists in the Aceh provincial capital of Banda Aceh also took to the streets to commemorate International Labour Day on Friday May 1.

During the action that was centred on the Banda Aceh Great Mosque and the Simpang Lima roundabout, the journalists called on media companies to provide a decent wage to their employees in carrying out their duties.

"So that the envelope culture [bribes paid to journalists to print favourable reports] can be avoided by most journalists," said Banda Aceh Alliance of Independent Journalists (AJI) chairperson Mukhtaruddin Yakob in a speech.

The journalists also brought banners reading "Provide a decent wage: Journalists are also workers" and scores of posters with messages calling on workers to join trade unions and for journalists to resist accepting envelopes.

The journalists holding the action came from a number of different trade unions including AJI Banda Aceh, Movie Maker, the Aceh Association of Journalists (PWA Aceh), the Aceh Association of Indonesian Television Journalists (IJTI Aceh), the Aceh Photographic Journalists (PFA) and the Aceh Indonesian Journalists Association (PWI Aceh).

Coinciding with the journalists' demonstration, the Aceh branch of the Indonesian Workers Trade Union (SPBI) Aceh also held an action at the Aceh Regional House of Representatives (DPRA) building. "We are demanding that the regional government pay proper attention to workers rights," said SPBI Aceh chairperson Samsul.

[Translated by James Balowski.]

Workers call on govt to implement six programs of labour struggle

Kompas - May 1, 2009

Jakarta – After holding a demonstration to commemorate International Labour Day at the Hotel Indonesia roundabout and the State Palace in Central Jakarta, protesters from the Indonesian Metal Trade Workers Federation (FSPMI) and several other trade unions continued the action at the House of Representatives (DPR) building in Senayan.

There demands were the same, namely calling on the government and members of the DPR and People's Consultative Assembly (MPR) to implement the six programs of labour struggle.

The first program is the fight to revise the law on the Workers Insurance Scheme (Jamsostek), second to abolish outsourcing and third the struggle for a law on a decent wage and salary structure.

The fourth demand is to strengthen the supervision of labour relations, fifth, the struggle for labour justice that is simple, quick and fair, and finally the struggle for a law to regulate special economic zones to guarantee workers' welfare.

When the workers were making their demands, not one member of the DPR was prepared to meet with them, although this did not diminish the spirit of the protesters.

According to Isnaini, on May 4 the FSPMI will be cooperating with the Workers Challenge Alliance (ABM) and several other trade unions in holding an even bigger action in the West Java provisional capital of Bandung.

"In addition to this, on May 21 a May Day Fiesta will be held. We have already invited a number of government officials. The only ones confirmed to come are the Minister of Labour and Transmigration and [vice presidential hopeful] Prabowo [Subianto]. Other officials meanwhile, including SBY [President Susilo Bambang Yudhoyono] and JK [vice president Jusuf Kalla] have yet to confirm," said Isnaini following the action at the DPR building.

Not long after conveying their demands the demonstrators disbanded in an orderly fashion. A number of other labour groups meanwhile held similar actions at other points in the city including the Hotel Indonesia roundabout and the State Palace. The essence of their demands was for government officials, particularly those who have been recently elected, to pay attention to and improve the fortunes of the working class.

[Translated by James Balowski.]

Spartan accuses Yudhoyono, electoral commission of fraud

Tempo Interactive - May 1, 2009

Nurochman Arrazie, Bandar Lampung – Hundreds of workers and students from the Volunteers of the People's Struggle for the Liberation of the Motherland or Spartan commemorated Labour Day in a protest at the Lampung regional General Election Commission (KPU) offices. They were demanding that the KPU resign because it committed fraud in the recent legislative elections by manipulating the final voter list (DPT).

"Millions of workers in Indonesia were unable to use their right to vote in the April 9 elections because they were not included on the final voter list", said Spartan coordinator Dewa Putu Adi Wibawa on Friday May 1.

The demonstrators marched from the Bandar Lampung Elephant Monument to the KPU offices and the Lampung provincial Election Supervisory Committee (Panwaslu) carrying a bier with the writing "Democracy is Dead".

In front of the KPU office the workers held a theatrical action depicting irregularities in the elections such as money politics, vote inflation and manipulation of the final voter list, which ending with the bier being set on fire.

According to Dewa, the administration of President Susilo Bambang Yudhoyono (SBY) and the KPU colluding to muzzle the political rights of the working class. "The evidence is that only 1.5 million workers out of 6.5 [million] overseas workers were registered as voters. SBY's victory means the continued survival of foreign companies in Indonesia that largely bring suffering the working class and ordinary people", said Dewa.

Dewa also responded positively to the National Human Rights Commission's (Komnas HAM) investigation into manipulation of the final voter list in Lampung. Over the last three days a Komnas HAM team led by commission member Nelson Simanjutak has been investigating human rights violations in the Lampung elections. They have already questioned members of the KPU and the Lampung provincial Panwaslu.

[Translated by James Balowski.]

Journalists in Malang demand reasonable wage

Tempo Interactive - May 1, 2009

Bibin Bintariadi, Malang – Commemorating International Labour Day on May 1, the Alliance of Independent Journalists (AJI) demanded that media employers provide journalists with a decent wage.

According to AJI advocacy division coordinator Heru Triatmojo, many media owners are yet to pay journalists a decent wage. "There are even some who pay wages below the minimum regional wage," said Triatmojo.

The AJI demonstrators held the action at the Malang City Monument Square along with labour organisations from the Malang People's Alliance (ARM).

Triatmojo said that paying journalists a reasonable wage would have a positive impact on advancing the companies. A reasonable wage would influence journalists not to want to or be able to avoid "envelopes" and other forms of bribery, so in the end they would be to act more independently.

Based upon a survey by AJI Malang, a reasonable wage for journalists in Malang would be as much as 2.4 million rupiah a month.

[Translated by James Balowski.]

Thousands of workers in Medan commemorate May Day

Tempo Interactive - May 1, 2009

Soetana Monang Hasibuan, Medan – An estimated thousand or more protesters from the Alliance of Workers and Employees (ABP) held a May Day action in the North Sumatra city of Medan on Friday May 1.

During the action they occupied the road in front of the Medan Regional House of Representatives, and then set off for the North Sumatra governor's office to join up with other worker demonstrators.

According to Tempo's observations, the action proceeded under a tight escort by Medan municipal police. In addition to putting their officiers on alert, police also erected a steel fence in front governor's office and mobilised two water cannons and a Barracuda tactical vehicle.

During the action in front of the governor's office, the protesters demanded that North Sumatra Governor Syamsul Arifin appear to listen to their demands.

[Translated by James Balowski.]

Students, NGOs in Palembang say contract labour inhuman

Kompas - May 1, 2009

Wisnu Aji Dewabrata, Palembang - A International Labour Day demonstration in Palembang, South Sumatra on Friday May 1 took place without the presence of workers.

Instead, the scores of demonstrators at there rally were comprised of students and non-government organisation activist such as the Palembang Legal Aid Foundation (LBH), the Indonesian Forum for the Environment (Walhi) and the Palembang Simpul Urban Poor Linkage (Uplink).

According to Kompas' observations, no workers appeared to take part in the action that was centred on the Waterfall roundabout in which the protesters called for the abolition of contract labour. The groups said that contract labour is inhuman because the rights of contract workers are not respected.

The action was made more interesting because the demonstrators brought effigies symbolising capitalism as the oppressor of the working class. (WAD)

[Translated by James Balowski.]

Workers in Samarinda say elections no solution for working class

Tempo Interactive - May 1, 2009

Firman Hidayat, Samarinda – Hundreds of workers in the East Kalimantan city of Samarinda commemorated International Labour Day by holding speeches in front of the East Kalimantan governor's office on Friday May 1.

Using a sound system on a vehicle, worker representatives took turns in giving speeches in which they criticised the results of the recently held legislative elections. They said that the elections have not resolved labour problems in Samarinda, where workers continued to be threatened by mass sackings in an increasingly sluggish timber industry.

"The elections are not a solution for the working class", said action coordinator Pradarma Rupang in a speech, calling on the regional government to pay more attention to workers. He also called on the government to make the national economy self- reliant without having to depend upon global economic forces such as the United States.

As a result of this dependency and the impact of the global crisis, workers in Samarinda have also been impacted upon. According to Rupang, at least 3,000 workers from the timber company PT Sumalindo Lestari Jaya are threatened with dismissal.

The action preceded in an orderly manner under the guard of 30 or so police from the Samarinda municipal police and a unit of civil police who stopped the demonstrators at the gates to the governor's office. The workers were also disappointed because the East Timor governor failed to meet with them.

[Slightly abridged translation by James Balowski.]

Workers in Yogyakarta demand eight-hour working day

Tempo Interactive - May 1, 2009

Muh Syaifullah, Yogyakarta – Workers and employees in the Central Java city of Yogyakarta used May Day to demand an eight- hour working day saying that workers in shopping centres are forced to work much longer than this.

"There are only a small number who employ workers for eight hours a day, however there are still many shop security guards who work from 8am to 9pm at night," said Sleman regency Working People's Association (PRP) coordinator Yudi Fajar on Friday May 1.

A number of organisations such as the PRP and the Indonesian Carrefour Trade Union (SPCI) held a peaceful action in front of the Yogyakarta Ambarukmo Plaza to commemorate International Labour Day. After holding speeches they marched towards the Yogyakarta Monument to meet up with other workers.

According to Yudi, workers and employees in Indonesia are still in fear of the threat of being dismissed as a result of the global financial crisis. In addition to this, employers are still failing to give workers their full rights such as a salary in accordance with the minimum wage, maternity leave and overtime pay and workers are also still intimidated by employers. "As of March this year, 37 companies in Yogyakarta have dismissed a total of 533 employees," said Yudi.

The hundreds of workers who held the action also demanded job security through the abolition of outsourcing that enchains workers. "Workers must be involved in controlling companies in the form of agreements made democratically," said Yudi.

[Translated by James Balowski.]

Workers hold demo to mark May Day

Jakarta Post - May 1, 2009

Wahyoe Boediwardhana, Malang, East Java – Thousands of workers from companies around Malang staged a rally Thursday to commemorate International Workers' Day on May 1, also known as May Day.

Brandishing banners and posters, the workers marched from Gajayana Stadium to the Malang munici-pality office.

In their speeches, the workers protested against mass layoffs and the outsourcing and contract system, and demanded the administration set up a bylaw on labor protection.

Organized by the Indonesian Workers' Struggle Solidarity (SPBI), they also urged the administration to take action against companies "neglecting their workers' basic rights".

SPBI chairman Lutfi Chafid lambasted several companies for using security officers and police and military personnel to intimidate their workers.

"Many security officers back the employers," he said. "We know that the companies, including a cigarette company, used security forces to frighten us. But we are not afraid since we are struggling for our rights," he said.

He added 19 workers from the cigarette company were dismissed after they tried to set up a workers' union. He also said dozens of workers at a car assembly plant were dismissed after trying to "demand their basic rights".

Lutfi said the SPBI had demanded the government revoke Manpower Law No. 13/2003 and Industrial Relations Law No 2/2004. "The laws have hurt the workers and benefitted the employers," he claimed.

He suggested the government revert to the 1957 manpower law and the 1964 law on dismissals, which he said treated workers fairly.

Journalists in Aceh rally on May Day for better pay

Jakarta Globe - May 1, 2009

Nurdin Hasan, Banda Aceh – Dozens of journalists in Aceh commemorated international Labor Day, or May Day, on Friday by holding a peaceful rally in downtown Banda Aceh.

The journalists called on media owners in the province and across the country to improve the wage standard for their employers, including journalists.

Mukhtaruddin Yakob, chairman of the Independent Journalist Alliance (AJI) in Banda Aceh, said the rally was organized to shed light on the plight of media people in the province, who he said received meager pay from their companies.

"It is sad that some journalists [in the province] are being exploited by the national media," he said. "The journalists get paid only when they file news. Even then, the pay is still below standard."

Mukhtaruddin said that even though Indonesia had recorded rapid media growth, not all companies could afford to pay their journalists decent salaries. He said some journalists were paid below provincial and city minimum wages.

He did not say what the average salary was for journalists in Aceh, but the province's minimum monthly wage is Rp 1.2 million ($115).

The low pay for journalists, according to Mukhtaruddin, an SCTV television correspondent in the area, affects the quality of journalism. "Low wages create a pragmatic journalist, prone to bribes and in turn, not independent to external influence," he said.

He called on journalists to establish a union and continue to improve their craft. Mukhtaruddin said a union could fight for the welfare of journalists and provide a bargaining chip for media workers.

The journalists urged the management of media companies to stop using the global crisis as an excuse to exert pressure on the right of employees to form unions, initiate layoffs and change employment status from permanent to contractual.

The group also asked national media companies to clarify work contracts with their contributors in the province. They also asked the government to continue to protect workers, including their right to organize.

Cirebon workers blockade highway, demand end to contract labour

Detik.com - May 1, 2009

Reno Nugraha, Cirebon – Scores of workers and students took to the streets in the West Java city of Cirebon on May 1 to commemorate International Labour Day, blockading the Jakarta- Cirebon northern coast road at Jl. Brigjen Darsono.

The protesters, who came from the Cirebon City Youth and Social Struggle Alliance also set fire to tyres and held a sleep-in in the middle of the road resulting in a 5 kilometre traffic jam.

In speeches, the workers demanded the abolition of contract labour systems saying that this only brings suffering to workers and benefits the interests of capitalism. "Reject outsourcing systems that treats workers as if they are enslaved, worse still [they] are enslaved by their own country," said action coordinator Hendra on Friday May 1.

As of 2pm the blockade was still in place forcing police to redirect the flow of traffic through alternative routes. (djo/djo)

[Translated by James Balowski.]

Two Papuans detained over plans to demand referendum on May Day

Detik.com - May 1, 2009

Gede Suardana, Denpasar – Denpasar municipal police in Bali have taken two Papua youths into custody who they suspect were planning to join May Day rallies in order to call for a referendum in Papua.

Denpasar police chief Assistant Superintendent Alit Widana said that the two youths were picked up during a raid by police on Jl. Moh Yamin in Denpasar. The street is the access road to the United State Consulate General on Jl. Hayamwuruk.

"Initially there was a request for a permit by Papuan students in Denpasar to demonstrate on Labour Day and we granted it. However we then got information that the action would be used to [promote] Papuan issues", said Widana.

Based on this information, police organised a raid and succeeded in taking the two youths into custody. The pair are currently being questioned by police.

"We confiscated a banner from the pair that blasphemed Indonesia as a colonial state. Meanwhile we gave the other Papuan students who really wanted to demonstrate on labour day permission to continue their action at the Bajra Sandi Monument Square," said Widana. (djo/djo)

[Translated by James Balowski.]

Workers call for freedom of association, reasonable wage

Detik.com - May 1, 2009

Andi Saputra, Jakarta – Hundreds of workers from the Federated Alliance of Independent Trade Unions (FGSBM) held an action in which they marched backwards towards the Department of Labour and Transmigration on Jl. Gatot Soebroto in South Jakarta.

The demonstrators arrived in waves from various areas around Jakarta. "Viva workers, the workers united cannot be defeated," shouted 32-year-old Siti from atop the command bus on Friday May 1.

After marching backwards, the demonstrators – all of whom had entered the parking area in order to avoid causing a traffic jam – took turns in giving speeches.

A number of large posters were brought along with demands such as "Reject outsourcing", "Join together with us" and the like. Scores of flags were also fluttered among the sea of demonstrators. "This is all oppression", added another speaker.

In addition to this, they also called for the right to freedom of association and to organise, the right to a reasonable wage and rejected cheap labour. "Oppose mass dismissals!" shouted the protesters in unison at the urging of a speaker. (asp/aan)

[Translated by James Balowski.]

Giant ball adds to May Day congestion in Jakarta

Detik.com - May 1, 2009

Ari Saputra, Jakarta – A giant orange-coloured ball was rolled around the Hotel Indonesia roundabout on May 1 adding to the congestion caused by thousands of workers commemorating May Day in Jakarta.

The giant ball, with the writing "Decent Wages Yes, Bribes No", was rolled around the roundabout twice by 10 workers from the Alliance of Independent Journalists (AJI) followed by some 2,000 other workers.

The protesters – who overflowed onto the street – caused a massive traffic jam in the direction of Jl. Sudirman and in the opposite direction towards Jl. Jalan MH. Only the busway and one fast lane were able to be used by vehicles.

The police apparently halted the flow of traffic for around 20 minutes in order to control the crowed. The protests then moved of to the State Palace on foot while some held Friday prayers in the nearby Kebon Kacang area. (aan/nrl)

[Translated by James Balowski.]

ABM workers scuffle with police during May Day commemoration

Detik.com - May 1, 2009

Hery Winarno, Jakarta – A worker fell and was trampled during a protest action commemorating Labour Day on Friday May 1. The trigger for the incident was when demonstrators from the Workers Challenge Alliance (ABM) attempted to break through a police blockade in order to approach the State Palace in Central Jakarta.

The incident took place at around 4.30pm when the front ranks of the ABM demonstrators where stopped by police in front of the offices of the Coordinating Minister for People's Welfare on Jl. Medan Merdeka Barat. All of a sudden the workers surged forward breaking through the rope barrier put in place by police.

The police – who were on guard behind the rope barrier – were forced back by the demonstrators. Blows were exchanged and bamboo sticks used to fasten banners were thrown from the direction of police. Police responded by hitting several demonstrators and throwing the bamboo sticks back into the crowd.

It was during this brawl that a woman worker from ABM in the front ranks of the protesters fell. She was even trampled on by police and her own colleagues as they surged back and forwards. Fortunately, her colleagues were able to rescue her and she was not seriously injured.

The brawl continued for around five minutes and as a result, the lanes on Jl. Medan Merdeka Barat from the area of Harmoni and Thamrin were completely closed to traffic. Police also deployed a water cannot and Mobile Police (Brimob) officers to fortify the barricade. (lh/iy)

[Translated by James Balowski.]

Workers call for abolition of contract labour, decent wages

Detik.com - May 1, 2009

Muhammad Nur Abdurrahman, Makassar – International Labour Day was also commemorated by thousands of workers in the South Sulawesi capital of Makassar, who held a long-march to the governor's office.

The workers arrived at the governor's office at around 9am. Earlier they had gathered in the vicinity of the Reformasi toll road. They also brought a truck that was used to transport a sound system.

The workers, who came from the Action Committee for May Day, wore clothes entirely made up of red. They made 11 demands on the government and employers, including among others calling for a reasonable wage and the abolition of labour contact systems.

"May Day is an important holiday for the international working class, it's time for us to rise up and fight this oppression", said action coordinator Muchtar Guntur from atop the truck carrying the sound system.

The action was also joined by members of the Makassar Alliance of Independent Journalists (AJI). "Journalists across Makassar are also of one voice in calling themselves press industrial workers who's fortunes should also be paid attention to by the bosses," said AJI Makassar Chairperson Andi Fadli.

The workers plan to hold Friday prayers on the grounds of the governor's office, after which they will hold a joint prayer for the welfare of the working class in Indonesia. (mna/djo)

[Translated by James Balowski.]

'Squatting action' highlights oppression of domestic workers

Detik.com - May 1, 2009

Muchus Budi R., Solo – Labour Day, May 1, was commemorated in a number of cities and in various ways. In the Central Java city of Solo, scores of workers from the Solidarity Trade Union Federation (FSBSK) held a 'squatting' action to symbolise the oppression of workers, including domestic workers.

The scores of demonstrators proceeded at a squat from the Vastenberg Fort towards the Gladag roundabout, a distance of around 200 metres. A number of male demonstrators wore women's clothing to highlight the role of domestic labourers. Others also played the role of bosses who treat domestic workers in an arbitrary and despotic manner.

Following this they held speeches and sang songs of struggle at the Gladag roundabout. Taking turns, speakers condemned contract labour systems and the inhuman treatment against informal workers who are employed in sub-standard conditions.

In a leaflet that was handed out, the group called for May 1 to be designated as a national holiday. They also rejected contract labour systems and outsourcing, called for the creation of job opportunities with a reasonable wage and an end to wage discrimination. (mbr/djo)

[Translated by James Balowski.]

Actions, demos, protests...

Students rally against ex-military candidates

Jakarta Post - May 6, 2009

Dicky Christanto, Jakarta – A group of students staged a mass rally near the Indonesian Democracy Party of Struggle (PDIP)' Chairwoman Megawati Soekarnoputri's residence in Menteng, Central Jakarta, on Wednesday, pressuring her against choosing a vice presidential running mate with a military background in the upcoming presidential election.

"Please consider that those who currently appear to be the defender of the people are individuals who have had problems with human rights issue," rally coordinator Paulus Nico told journalists on the sidelines of the rally.

Grouped under the Save Indonesia Group, the students originated from several universities in Jakarta, such as the National University, Bung Karno University and the Indonesian Christian University.

Not long before the rally around 20 people grouped under the Megawati Supporter Group had also staged a mass rally at the same location. The group claimed to have brought the voice of PDIP grass roots who wanted the party to name Megawati as its sole presidential candidate.

"We don't want anyone except Megawati to be named as presidential candidate. It is her or the party would face resistance if it dares to name another person as candidate," Herman Pin, one of the supporters, said.

Police detain 65 students in Makassar rally

Jakarta Post - May 5, 2009

Andi Hajramurni, Makassar – About 1,500 students from various state and private universities rallied Monday at the gubernatorial office in Makassar, South Sulawesi, to protest against the newly-endorsed Legal Education Entity Law (BHP).

The peaceful protest turned into a clash in which a number of students and journalists were injured and 65 protesters were detained by the police.

The rally kicked off at the intersection between Jl Urip Sumohardjo, Jl Andi Pangerang Pettarani and Jl Tol Reformasi. Students blocked the roads and addressed the crowd for around an hour, paralyzing traffic along major thoroughfares in Makassar. Students then continued protesting at the South Sulawesi gubernatorial office.

The gathering, supported by dozens of workers, started peacefully. Then students stormed into the office compound to ask Governor Syahrul Yasin Limpo to revoke the BHP law, which they deemed would raise education fees and prevent students from low- income families from continuing their studies.

When a group of student representatives were about to negotiate with gubernatorial office authorities, demonstrators hurled rocks, which fell near hundreds of police officers who were tightly supervising the students' movement. Most of them were angry, and a clash could not be avoided.

Hundreds of fully-equipped members from the elite Mobile Brigade (Brimob) unit, the South Sulawesi Police riot control unit and officers from the Makassar city police immediately dispersed the crowd by firing warning shots in the air and tear gas. The protesters fled to Jl Urip Sumohardjo.

Students crowding Jl Urip Sumahardjo then retaliated, throwing rocks and other hard objects at police officers. Police also used a water cannon to disperse the protesters but students continued throwing rocks at them.

The clash lasted more than an hour. Police and students confronted each other for up to a kilometer along Jl Urip Sumohardjo. Police, at one point, sent in reinforcements of up to 1,000 personnel.

The clash ended after student representatives negotiated with Makassar Police Chief Sr. Comr. Burhanuddin Andi. Police eventually agreed to withdraw and students dispersed.

Police are still providing security at the gubernatorial office and the intersection between Jl Urip Sumohardjo, Jl Andi Pangerang Pettarani and Jl Tol Reformasi.

Burhanuddin said police officers were forced to disperse the crowd because anarchy was spreading. The students intended to besiege the office after initially blockading Jl Urip Sumohardjo.

"The (demonstrators') actions disrupted the public order and led to anarchy, so we dispersed them. We don't prohibit them from holding a rally, but we will not let them disrupt the public order," he said.

Three students injured after rally turns ugly

Jakarta Post - May 5, 2009

Serang – Three students were rushed to the nearest public health clinic in Serang after a Monday rally they staged to demand the arrest of Pandeglang Regent Dimyati Natakusumah at the Banten Prosecutor's Office turned violent.

Encep Rudiyanto, Agus Lani and M. Jidah, students at Pandeglang's Mathlatul Anwar University, suffered injuries after they were beaten by police who tried to dismiss them.

Dozens of students rallied at the prosecutor's office to demand Dimyati's arrest.

According to the students, the regent was believed to be involved in a graft case centered around a Rp 200 billion loan the admi- nistration received from Bank Jabar in 2006.

Pandeglang District Court has sentenced one of Dimyati's subordinates, Abdul Munaf, to 13 months in prison. Prosecutors also named the council speaker M. Acang and his deputies Wahyudi Nurhasan and Aris Turisnadi as suspects in the case.

However, prosecutors have yet to arrest Dimyati and his deputy, Erwan Kurtubi, who were also named suspects in the case in March.

Artistic rally demands rector step down

Jakarta Post - May 4, 2009

Denpasar – Students of Denpasar's Indonesian Institute of the Arts (ISI) commemorated National Education Day by holding traditional art performances in front of the Bali Provincial Legislative Council office on Saturday.

The art performances included a Balinese comical performance called bondres, the barong dance, puppet shows, poetry and painting on canvas.

Noted Hindu high priest Ida Pedanda Sebali Tianyar Arimbawa also gave a speech at the event, which was held to protest the reelection of Prof. I Wayan Rai as ISI rector.

Meanwhile, Rai gave a cold reaction to the pressure to step down. He said students had the right to ask for anything they wanted.

"As long as it does not violate the law, go ahead with the rally," he said.

Aceh

Local party confirms supremacy in Aceh

Jakarta Post - May 4, 2009

Hotli Simanjuntak, Banda Aceh – Autonomy in Aceh has allowed local political elites to trump Jakarta's authority.

After local figures beat national candidates in the gubernatorial election in 2007, a local party founded by former Free Aceh Movement (GAM) combatants has assured itself of a controlling share in the provincial legislature.

The Independent Electoral Commission has confirmed the Aceh Party won 48.89 percent of votes in the April 9 elections, the biggest ever win of any party in the post-reform era.

The Aceh Party will need only to coalesce with, perhaps, the Aceh People's Independent Voice (SIRA), which won just 1.78 percent of votes, to secure an outright majority.

Such a coalition looks ideal to support reigning Governor Irwandy Yusuf, who is himself a member of the Aceh Party, and Deputy Governor Muhammad Nezar, who leads the SIRA.

The SIRA and the remaining four local parties failed to impress, managing to win less than 2 percent of votes. National parties will too play a second fiddle in the new political mapping. President Susilo Bambang Yudhoyono's Democratic Party was the most successful national party in Aceh, but finished a distant second to the Aceh Party, with 10.96 percent of votes.

The Golkar Party came in third with 5.35 percent, followed by the Prosperous Justice Party with 3.82 and the National Mandate Party with 3.70 percent of votes.

Rahmat Zailani, who heads the campaign team of the Aceh People's Party, said his party would internally consolidate following its defeat. "Our loss is perhaps related to our extremely progressive platform, while the truth is that Aceh people simply want to see peace continue to prevail," he said.

Rahmat believes the victory of the Aceh Party reflects the local people's high hopes in the Aceh Party. "It is just normal that people trusted the Aceh Party due to its fight for independence through the Free Aceh Movement," Rahmat said.

The Tsunami, which killed over 150,000 people in 2004, pushed the movement to lay down arms and return to the negotiating table. The Aceh peace deal was inked in July 2005.

Rahmat said the local parties' underachievement stemmed from their poor structure and financial constraints. "The local parties are new political phenomena in Aceh. Their politicians are not used to competing in the elections," he said.

Secretary-general of the United Aceh Party Ilham concured. "Most of our legislative candidates are new faces who are unpopular in Aceh," he said.

Gazali Abbas, chairman of the Safe and Prosperous Aceh Party, said the April election was the most deceptive in Indonesian history, citing rampant voter intimidation. "We reject the election results due to the use of criminal and intimidating ways by certain parties," he said.

West Papua

Man died after being shot by Jayapura police

Jakarta Post - May 6, 2009

Jakarta – Agus Ohee, a resident of Harapan village, Jayapura regency, Papua, who was shot by local police during an attempted arrest, died in Sentani hospital on Wednesday morning.

Agus was reportedly shot at around 5 a.m. local time (3 a.m Jakarta time) on Wednesday and was taken to the hospital, where he was pronounced dead at around 6 a.m..

Jayapura Police chief Adj. Sr. Comr. Mathius Fakhiri told Antara news agency said the incident occurred when local police attempted to arrest a local resident Salmon Ohee, who was drunk and was blocking a main road.

Agus, who was trying to stop the police officers, attacked one of the officer with a bayonet blade. An officer later fired a shot at his leg.

Following the incident, local residents are still blocking the road, which is the only access to Sentani Airport, with stones and logs. Hundreds of passengers missed their flight, after failing to go through the blockade.

At the time of writing, local police are still making persuasion efforts to open the blockade. (dre)

Papuans seek US support for dialogue with Jakarta

Radio New Zealand International - May 8, 2009

West Papua advocates have been urging the United States to apply meaningful pressure on Indonesia for internationally-facilitated dialogue between Jakarta and Papuan leaders.

A member of the West Papua Advocacy Team spoke before a US Congressional panel about threats to human rights and the environment in Indonesia's Papua region.

The NGO has joined with the East Timor and Indonesia Action Network, or ETAN, in urging Washington to move beyond the current Special Autonomy arrangement in Papua to address the growing human rights crisis.

Their appeal came in response to US Secretary of State Hillary Clinton's call for a degree of autonomy for Papuans.

ETAN's John Miller says he doesn't think the statement signals a fresh approach from the previous Bush administration.

"The Papuans themselves are saying that Special Autonomy has failed, and that they would like meaningful discussion which we think the US has the potential – because of (President) Obama's background – to do with Indonesia about what Papua's future should be where everything is on the table."

Human rights/law

Indonesia committed to ratifying ICC, but doubt remains

Jakarta Post - May 5, 2009

Ary Hermawan, Jakarta – It is just "a matter of time" before Indonesia becomes a state signatory to the International Criminal Court (ICC), a Foreign Ministry official said on Monday.

But an analyst alleged that fear of possible intervention by the court was causing the government to drag its feet in ratifying the Rome Statute, the ICC's founding charter.

Foreign Ministry spokesperson Teuku Faizasyah said Indonesia was committed to ratifying the accord, which it has already signed, as mandated by the 2004 presidential decree on a Human Rights National Action Plan.

It, however, has not been ratified by the parliament or signed by the president. "We are still preparing for the ratification. There are a few elements (in the treaty) that need to be discussed," he told The Jakarta Post.

ICC President Song Sang-hyun visited Jakarta last week to push Indonesia, which he called an "important" and "influential" country, to complete the ratification process, which he was told would be done last year.

Faizasyah said the Law and Human Rights Ministry was still conducting a study on the international treaty, adding the government had not yet missed the deadline, as the presidential decree is valid until the end of this year. "The focal point is now the Law and Human Rights Ministry," he said.

The ministry's directorate-general for human rights protection is the agency tasked with studying the convention. Harkristuti Harkrisnowo, who heads the agency, did not answer her phone when contacted.

Noted lawyer and human rights activist Todung Mulya Lubis said he suspects the government was hesitant to ratify the treaty out of fear the ICC would investigate alleged human rights violations currently going on in the country.

"There might be a second thought that the ratification would bring harmful consequence to the government," he said. "This is actually an unnecessary apprehension, but it could undermine the process," he added.

The government has shown its commitment to upholding human rights by ratifying the international covenant on civil rights and establishing a rights tribunal, but critics say it has not done enough to investigate rights abuses in Papua.

The treaty is not retroactive and therefore can only prosecute crimes committed after the date of its establishment: July 1, 2002. It is also effective only after legal measures at the national level have been exhausted. The Munir case, Todung said, could be brought to the court if the government fails to come to a resolution.

The People's Coalition for the Ratification of the ICC, a group of NGOs, however, believes the government is committed to ratifying the treaty, but warned that it should work faster as the current administration is approaching the end of its term. "We cannot wait until the new administration is formed, for it will violate the presidential decree mandating the ratification," coalition member Simon said.

Vote against 'human rights abusers'

Jakarta Post - May 1, 2009

Jakarta – A coalition of civil society groups and human rights activists called on voters not to support candidates accused of committing human rights violations in the past.

Among the activists gathering at Taman Ismail Marzuki (TIM) in Central Jakarta on Thursday were Suciwati, wife of the late human rights activist Munir Said Thalib, Sandyawan Sumardi, a humanitarian, Goenawan Mohamad, a noted columnist, Choirul Anam from Human Rights Working Group (HRWG) and Fikri Jufri, a senior journalist.

Maria Catarina Sumarsih, mother of Bernardinus Realino Norma Irawan, a student demonstrator shot dead in 1998, also attended.

"We gather here now to remind everybody to be aware of these human rights abusers, Wiranto and Prabowo Subianto, who have parties that will likely nominate them for the next president and vice president," Sumarsih, the winner of the 2004 Yap Thiam Hien Award, said.

Prabowo established the Great Indonesian Movement Party (Gerindra) as a vehicle to run for presidency while Wiranto founded the People's Conscience Party (Hanura) for the same purpose.

Officials from both Gerindra and Hanura quickly dismissed the activists' appeal, with Gerindra spokesman Haryanto Taslam telling The Jakarta Post that the comments were nothing more than slander.

"I would never cover up any past human rights violations committed by any member of our party. All of the cases they mentioned have been tried," he said.

Mahfud Siddik, one of the Hanura deputy chairmen, suggested the activists should learn the true meaning of human rights violations. "If they understood the concept, they would know that Wiranto is not a human rights abuser," he said.

Sumarsih claimed that if either leader won they would damage democracy and revert Indonesia to a militaristic and authoritarian era of rule. "We have collected evidence of Wiranto's and Prabowo's human rights violations in the past," she added.

The activists accused Prabowo, former chief of the Army Special Force Command (Kopassus), of the kidnapping and murder of anti- Soeharto activists during the turmoil of 1998.

His deputy, Muchdi Purwoprandjono, former deputy-chairman of the State Intelligence Agency (BIN), was put on trial for the murder of human rights campaigner Munir, but was declared innocent last January.

Meanwhile, Wiranto, as the supreme military commander from 1998 to 1999, was accused of crimes against humanity in East Timor (now Timor Leste). He was also in command during the 1998 May Riot, in which thousands of men and women died on the streets of Jakarta. However, neither Wiranto nor Prabowo have ever faced trial.

"We will definitely not vote for human rights abusers like Wiranto and Prabowo, whom we believe are guilty of murder and kidnapping. What they have done has hurt us greatly," Suciwati said.

Economist Faisal Basri said that if Wiranto or Prabowo led the country, it would damage not only democracy and human rights, but also the economy. "I have convincing information that they don't pay their taxes properly. If they don't fulfil their state obligations, how can they lead this country?" he said. (bbs)

Labour/migrant workers

Few options in the face of outsourcing

Jakarta Post - May 7, 2009

Jakarta – Among the workers who voiced their demands for improved labor conditions during May Day rallies across the country, those employed by outsourcing companies were screaming the loudest.

With increasing numbers of workers being hired through outsourcing companies, concerns for the mistreatment and vulnerability of the labor market is growing.

"Of course I would prefer to be a proper employee but nowadays it is hard to find companies who actually hire someone directly without using any outsourcing services," said Isnani, who works as a junior analyst at a branch of Standard Chartered Bank.

According to Isnani, he first applied to the bank, but Standard Chartered Bank directed him to an outsourcing company, who has been responsible for his employment affairs since.

"I have insurance and the company treats me fairly well, but I still hope I will be promoted as an official employee one day," he said, adding his contract is renewed every six months.

Rekson Silaban, chairman of the Confederation of the Indonesian Prosperous Labor Union (KSBSI), said the government should enact strict rules to limit jobs where laborers can be drawn from outsourcing companies. "Jobs considered part of a company's core business should not be drawn from outsourcing services," Rekson said.

He added workers from outsourcing companies were often unaware they were especially vulnerable to mistreatment and job insecurity due to their weak bargaining position and dependency on contract renewal.

Last week, Mathias Tambing, deputy chairman of the Confederation of the All-Indonesian Workers' Unions (KSPSI), said many employers bribed their way out of violations of the outsourcing system.

Edi, not his real name, who works for a cleaning service in a building in South Jakarta, told The Jakarta Post how bribery had deprived him of his basic working rights. He explained that his company failed to provide insurance when it assigned him to clean the windows of a 15-floor building.

"One day officials from the Manpower Ministry made an impromptu inspection and asked whether we had insurance or not," Edi said.

When the window cleaners answered they had none, the inspectors forbade them from working for a week until the outsourcing company organized rightful insurance for their employees.

"I think there must've been a special arrangement between the outsourcing company and the building management that allowed us to go up there without insurance," Edi said.

Some workers do have the courage and privilege to fight the wrongdoings of outsourcing companies. Tina, not her real name, succeeded in being hired directly by the corporation she worked for rather than through their outsourcing service.

"I had been working through an outsourcing company for three years when they started to delay my pay and demanded I hand over my certificate for them to keep as a guarantee," Tina said.

"I then resigned and applied directly to the electronic company that previously used that outsourcing service to hire me." She added that around 15 of her colleagues joined her in the effort, and all of them were successfully hired.

However, not all outsourced workers have the same bargaining power as Tina. Adi, not his real name, who is a salesman for the electronic giant Philips, has been working through an outsourcing company for more than three years with no sign of being hired directly by Philips.

"I am in an underprivileged position now," he said. "If I have a problem with Phillips, I can't do anything to stand up to them because they're not the one hiring me."

Adi added he has tried several times to apply to other companies, but has discovered they all use the same outsourcing employment system as Philips.

Edi said he has a slim chance of being hired anywhere else, and therefore preferred to stay with his current employer despite its misdemeanors in the past. "With only a junior high school certificate to support me in the labor market, what more can I expect?" he said. (dis)

Labor unions urged to merge amid global financial crisis

Jakarta Post - May 2, 2009

Mustaqim Adamrah, Jakarta – Observing International Labor Day, or May Day, two prominent labor observers urged Indonesia's mushrooming labor unions to merge into several major sector-based confederations to improve workers' bargaining power amid the global economic downturn.

Speaking before thousands of workers and unionists at a gathering organized by state insurance company PT Jamsostek, Payaman J. Simanjuntak, a professor of labor economy at Krisnadwipayana University, said most labor unions face a crisis of confidence as many are politically oriented, sectarian and undemocratic.

"So far, 90 federations, 20 local unions and more than 2,000 company level unions have been registered with the Manpower Ministry, but they represent only 3.4 million workers in the formal sector, while more than 30 million others and 80 million in the informal sector are not represented, mainly because they get no benefits from joining a union," he said.

Payaman, who is a former director general for industrial relations and labor supervision at the Manpower Ministry, pointed out that 50 percent of the federations were born from their mother confederations (a sign they are undemocratic), 25 percent was sectarian (a violation of the law) and the remaining 25 percent were new unions that exist in name only.

"The labor movement has been set back to pre-1973 labor declaration conditions with 90 labor federations fighting for their ideologies, which are pro-labor, sectarian or political in their nature. To be strong, a merger is a must and we need up to five major sectorial confederations to avoid overhead costs and make them effective in negotiations with employers," he said.

Former manpower minister Bomer Pasaribu concurred, saying labor unions and employers should form strong partnerships to improve productivity and workers' skills, two ongoing issues which have never been properly dealt with.

"Such a strong partnership, high competence and pro-labor policy, including laws and regulations, will enable workers to survive the global economic downturn."

Meanwhile, President Susilo Bambang Yudhoyono, who observed May Day by visiting the manufacturing plant of PT Panasonic Electronics in Bogor, asked workers and employers to avoid confrontation in settling industrial disputes.

"Imagine (how it would be if people were confrontational when addressing labor issues). A company would go bankrupt, its management, the owners would suffer losses and employees would be fired. "Prevent that and listen to each other. Employees' welfare, a companies growth and productivity are important," he said.

Tens of thousands of workers hit the streets to celebrate May Day at strategic locations including the Hotel Indonesia traffic circle and Monas monument in Jakarta, demanding the government and employers stop outsourcing jobs.

The workers also challenged presidential candidates to hold a dialog on May 21 to present their programs to improve labor conditions over the next five years. (hdt)

Companies, don't profit from crisis: Unions

Jakarta Post - May 2, 2009

Triwik Kurniasari, Jakarta – Labor unions got together to mark the International Labor Day on Friday, urging private companies across the city not to take advantage of the current global financial downturn to sack workers.

Endang Sunarto from the National Workers Union (SPN) said some private companies, especially in the garment sector, often used the crisis as an excuse to dismiss workers.

"A garment company in Cakung (East Jakarta) shut down and fired its 340 permanent employees, saying it no longer received any orders after the crisis," said Endang after a meeting with Deputy Governor Prijanto at City Hall. "The weird thing is, a few months later it reopened with the same name and hired about 500 contract workers," he said.

He said the company was avoiding hiring permanent workers who were entitled to more benefits than contract workers. "Companies should be honest and fair. They should not take advantage of the situation," said Abdullatief from Jakarta's Commerce, Bank and Insurance Labor Union.

The labor unions demanded the city administration, as well as the central government, monitor all private companies more closely to avoid this kind of scenario.

"Law enforcement is still really poor. The administration should question companies directly," said Bismar, member of the labor union for the chemical, energy, mining and natural gas sectors.

Prijanto assured labor unions the administration would improve the enforcement of labor laws. "I've just heard about this kind of story today. If you come across any violations in your company, I suggest you report it immediately to the city's manpower agency," he said.

More than a thousand former employees of Hotel Indonesia (HI) gathered at the HI traffic circle, urging hotel management PT Hotel Indonesia Natour (HIN) to pay their pensions and social security (Jamsostek). They claimed they had not received any payments since they were fired five years ago while the hotel was being renovated.

Jualeha, a former employee, said she had not received any social security payments yet. "I worked hard in this hotel since 1975. Now I want the benefits I was promised, since I may not be able to work here for much longer because of my age," said the 58-year-old.

Joko Sujono, head of the Former Workers of the Hotel of Indonesia (HIMKI), said workers would fight until the end for their rights.

"We are urging the government and city administration to turn the hotel back to the way it used to be. It is a cultural building, but the government just sold it to a private company. This is not right," said Joko.

HI is the capital's first starred hotel ever, which was inaugurated by former President Soekarno in a bid accommodate participants of the fourth Asian Games in 1962.

In 2004, the hotel was renovated under a private company's supervision. Now it houses the Grand Indonesia mall, the Kempinski Hotel and an office building.

Unions demand better monitoring of outsourcing

Jakarta Post - May 1, 2009

Desy Nurhayati, Jakarta – Labor unions have demanded the government and private companies strictly enforce laws on outsourcing, which they say have been rampantly misused to reduce labor costs.

Weak monitoring by the government has further disadvantaged workers, as the practices itself creates job insecurity, the unions said Thursday.

"Regulations on outsourcing have been misused by employers to reduce their responsibilities over workers' rights for their own benefits and the government is unable to conduct strict supervision to eliminate these unfair practices," Rekson Silaban, chairman of the Confederation of Indonesian Prosperous Labor Union (KSBSI), said.

The 2003 labor law allows major companies to outsource jobs to other companies, but must insure those companies uphold labor laws, something the unions say is not happening. Business people have defended outsourcing, as they say it makes their products more competitive.

Rekson said their is no transparency in outsourcing contracts, and added that many companies have outsourced parts of their core business, a violation of the law.

He also criticized the government for readily giving permissions to companies to outsource, without close monitoring. "Core businesses are not allowed to be outsourced, but this happens because companies can easily obtain permits from manpower authorities."

Thamrin Mosi, president of the Confederation of the Indonesian Workers' Union (KSPI), and Mathias Tambing, deputy chairman of the Confederation of the All-Indonesian Workers' Unions (KSPSI), expressed similar concerns.

"The weak monitoring has something to do with the lack of professional labor inspectors and the lack of attention of regional heads under regional autonomy," Thamrin said.

Mathias cited the fact that many employers have bribed there way out of their violations of the outsourcing system.

Observing May Day, KSBSI will hold a march involving 3,500 labors from the Hotel Indonesia traffic circle in Central Jakarta to the presidential palace. KSPI and KSPSI said they would not hold rallies on Labor Day and would instead use a more diplomatic approach and hold dialogs to fight for workers' rights.

Sastro, national coordinator of the Indonesian Alliance for the Defense of Laborers (ABM), said that the system has severely weakened the bargaining position of laborers' as they lack the power to negotiate for basic commitments like remuneration and working hours.

Director of the Jakarta Legal Aid Institute (LBH) Asfinawati concurred, saying the government had misconceptions about treating employers and workers equally.

"We repeatedly hear the government's pledge to treat the business owners and laborers equally, but it is absolutely clear that it is the laborer with a low salary who needs more protection from the government." (hwa)

Law No 13/2003 on labor

Article 65

The delivery of jobs to other companies shall be done through a written working contract agreement.
Workers protection and requirements for workers at the other company shall be at least the same as working protection and requirements at companies outsourcing the jobs, or in accordance with the provisions of prevailing laws.

Article 66

2. Providers of labor services for supporting activities not related directly to production shall meet the following requirements:

working relations between companies providing labor services exist;
a prevailing working agreement on working relations is a working agreement for a specified period that meets the requirements and/or labor agreement for unspecified period which is signed by both parties;
wage protection and welfare, occupational requirements as well as the arising disputes are the responsibility of companies providing labor services; and
agreement between companies providing labor services and other companies acting as companies providing labor services is made in writing and must contain the articles on this matter in this law

Labor condition in August 2008

The work force totals 111.95 million, up by 2.01 million from 109.94 in August, 2007
The number of people working at home is 102.55 million, up by 2.62 million from 99.93 million in Aug. 2007
Open unemployment is 8.39 percent in Aug. 2008, down from 9.11 percent in the previous year.

Sources: Manpawer Ministry and BPS

Labor unions need greater political leverage

Jakarta Post - May 1, 2009

Today Indonesian workers will celebrate May Day amid deep concern over the weak labor movement and the global financial crisis. Erwin Schweisshelm, director of the Friedrich Ebert Stiftung (FES) Indonesia, which facilitates labor meetings and education programs here and in Europe, addressed these issues in an interview with The Jakarta Post's Ridwan Max Sijabat here on Thursday. The following is an excerpt.

What do you see as the role of labor unions amidst the global economic downturn, with employers preferring to employ cheap, contract-based workers?

In the first place we see that workers and the poor have to pay the bill for the mess that has been created by greedy investment bankers, managers and the like, and by politicians that have failed to regulate financial markets around the world, which gave way to casino capitalism. The economic crisis is a consequence of the credit crunch, it's contract and agency laborers that suffer first. Not only in Indonesia, but also in countries like Germany they are the first to be laid off since they are less protected and are "second class workers" in legal terms. Unions have only limited leverage here since laws are made by the parliament. There have to be limits to outsourcing and the excessive use of agency workers. Unions like the Indonesian Metal Workers Federation (SPMI) do a lot to help their colleagues that are employed by labor agencies. But they have to find allies in politics that will improve the legal framework. Hopefully the new parliament will be more interested in workers issues.

How can unions incorporate this reality when they have traditionally fought only for job security in the formal sector?

That is a valid question. It is very difficult to organize the informal sector because you do not have the traditional employer-employee relationship, but mainly deal with self- employed workers or entrepreneurs. Organizing these people to fight for their interests is different from union organizing since minimum wages, collective agreements, etcetera, do not apply. There are some civil society groups that do this job, through forming associations, helping with microcredit, informal insurance, etcetera. Unions have to pay more attention to this issue, though they still also have to do their job in the formal sector, where only 10 percent of workers are organized in real unions. I also do not want to glorify the informal sector. It's also important to enlarge the formal sector.

What is your comment on the labor movement in Indonesia?

There is shadow and light. Unions are not well organized, even in the formal sector, and have no political allies. But I see a couple of young but professional unions and union leaders in the metal industry, commerce and financial sector and others that have built strong unions with real negotiating power, but who also know that social partnerships are of mutual benefit (to employers and workers) and that industrial action is only a means of very last resort.

What are the major factors preventing the labor movement in Indonesia from becoming stronger?

The labor movement in Indonesia has been strong in the past, in the fight for independence and in the early years of the republic for example. In 1998, the then president Habibie ratified all core labor conventions of the ILO, including the right to organize. Since then, trade unions have been mushrooming in numbers, but not in strength. Trade Unions have to learn to become free, democratic and financially independent, but there has been a lot of progress in the past few years.

Why are workers less interested in unionizing? What is your comment on the reality that more than 90 of labor federations are registered with the government but most have very few members and exist in name only?

A genuine trade union culture is just developing. Members will only be willing to become active and pay the necessary union fees if they receive benefits – in terms of better wages or working conditions at the workplace and at the political level through better protection, improved labor inspection and a sustainable system of social security that would allow workers to participate in shaping their welfare.

Will you share the Germany experience in making strong labor movement, please?!

In my own experience the strength of the German labor movement is due to its unity, since there is only one united national movement; it's not fragmented like in Indonesia. Secondly, German unions are politically independent, but not politically neutral. Their unity and large membership allows the unions to address the politicians with their demands and the politicians cannot afford to ignore a dialogue and consultation with the unions, otherwise they risk political damage.

Do you think the 2003 labor law is too harsh or unconducive to foreign investment?

These are difficult questions. Maybe there are some regulations like the one on compensation packages (pesangon) that deter investment. But as long as there is no unemployment insurance, why should unions give up this protective clause in case of retrenchment? In general, I do not think the law is too harsh. Nowadays, China often has higher wages and better regulations for agency labor than Indonesia, and still growth over there is higher than here. A motivated workforce and social stability are key for increased productivity and thus competitiveness. Decent wages mean sustained domestic demand, which is crucial in this global economic crisis. Improving the quality of human resources is at the bottom of all this and responsible unions will be more than happy to cooperate with employers to improve skills and vocational training.

Environment/natural disasters

Deforestation, climate causing tiger attacks

Jakarta Post - May 7, 2009

Jon Afrizal, Jambi – The impact of the current dry season and deforestation in Kerinci Seblat National Park (TNKS) is believed to be forcing wild tigers to hunt cattle in nearby villages, an official said Wednesday.

Head of the management division at the park, Junaidi, said TNKS officers in Jambi province were searching for tigers believed to be responsible for attacking goats and a cow belonging to residents of the Pungut Hilir and Muara Air villages in Kerinci.

"It's now the dry season, so little trace of the animals can be seen. We cannot conclude whether it was tigers that attacked the cattle or other animals," Junaidi said.

He said M. Nasir, a resident whose cow was reportedly attacked, allegedly fought off the tiger last Friday. Residents claimed the cow's leg was seriously injured but Nasir was fine.

"The fight between Nasir and the tiger lasted three hours. The tiger escaped and ran into the forest. Sanusi suffered no injuries," said one of the residents, Sanusi. He claimed that around 10 tigers frequently roamed in nearby areas.

Junaidi said TNKS officers were having difficultly determining whether the cow was actually attacked by a tiger because it had since been killed by its owner.

However, he said people should remain alert to the possibility of tigers hunting in the vicinity.

He said during the dry season, tigers usually encountered difficulties hunting and so often entered villages searching for food.

"Also during the dry season, cattle and goats leave the villages near the forest to seek out water," Junaidi said.

Damage to the 1.4-million-hectare park largely from deforestation was also forcing tigers to search for food closer to village areas. The park stretches across the four provinces of Jambi, West Sumatra, South Sumatra and Bengkulu.

Deforestation has significantly affected nearly 10 percent of a 250,000 hectare area of forest within the park, located in Jambi.

"Both local residents and newcomers to the area are cutting down trees and essentially cornering the tigers."

Junaidi said the park was currently home to around 125 tigers and doubted the reports of tigers attacking villagers.

"But, it's certainly not possible that the tigers attacked the villages in groups. They are a solitary hunter.

Meanwhile, Kerinci Police Chief Adj. Sr. Comr. Sunarwan Sirat confirmed the attacks.

"We have deployed officers to the villages after receiving information about the tiger attacks. It is indeed true that there was an attack by a tiger," Sunarwan said.

Health & education

Doctors say Indonesia faces bigger threats than swine flu

Jakarta Globe - May 2, 2009

Dessy Sagita & Ismira Lutfia – Doctors on Friday urged the public and the government not to panic over the swine flu issue, and not to ignore more urgent health issues such as dengue fever, which kills thousands of Indonesians every year.

Leonard Nainggolan, an expert on infections and tropical diseases at the state-run Cipto Mangunkusumo Hospital, on Friday said that the public scare over the influenza outbreak should not overshadow other health issues.

"Swine flu is a serious issue, but it's not even here yet. But dengue fever is here and we're facing it right now," he said. Indonesia needs to learn from its experience in dealing with bird flu, which has killed 119 people since 2003, Nainggolan said.

The 1 percent fatality rate for dengue fever pales in comparison to the 80 percent to 90 percent fatality rate for bird flu, but dengue still kills about 1,200 people per year, Nainggolan said. "The fatality figures for dengue fever in our country are high, so we can't ignore the problem," he said.

The government should not reallocate funds set aside to help manage the threat from bird flu or other health problems in favor of directing more money into efforts to contain swine flu, he said. "We should just focus on what we're facing," he said. "We shouldn't waste resources on something that isn't even here yet."

Agus, a microbiology professor at the University of Indonesia, said that the incubation of the swine flu virus, or H1N1 influenza, is only between one and four days. He said that if infected people do not get sick within that time frame, they are unlikely to pass the virus to others.

Agus said there was always the possibility that H1N1 could become a problem in Indonesia, despite claims by some that the virus has a low survival rate in the tropical country.

He said that the virus has been proven to pass between people and human body temperatures are relatively similar regardless of climate, so the threat is real. "Once a person is infected, it can pass to other people – even in a tropical country like Indonesia," he said.

The government, he said, should focus more on raising public awareness about swine flu, rather than spending money to stock up on drugs such as Tamiflu. "Not every case of bird or swine flu needs to be treated with [Tamiflu] – it varies from case to case," he said.

The Foreign Ministry, meanwhile, issued a notice on Tuesday advising Indonesian citizens to be cautious when traveling to and from Mexico or other affected countries.

"We advise Indonesians to avoid or reschedule nonessential travel to Mexico," ministry spokesman Teuku Faizasyah said on Friday, adding that the government would refer to recommendations by the World Health Organization before issuing any further travel warnings.

A number of foreigners from affected countries may arrive in Indonesia for two events this month – the World Ocean Conference in Manado, North Sulawesi, and the annual meeting of the board of governors of the Asian Development Bank in Bali.

Teuku said that the events would take place as scheduled, and that the immigration authorities would take responsibility for monitoring the health of foreigners entering the country.

The Indonesian Embassy in Mexico City has temporarily halted consular services and is currently unable to issue visas because activity in the Mexican capital is currently restricted, Teuku said.

Corruption & graft

Ex-police chief admits to providing 'hitmen'

Jakarta Post - May 8, 2009

Irawaty Wardany, Jakarta – Former South Jakarta Police chief Sr. Comr. Wiliardi Wizar has admitted to receiving an order to provide "hitmen", allegedly used to kill businessman Nasruddin Zulkarnaen, a lawyer revealed Thursday.

Yohanes Jacob, a lawyer for Wiliardi, said the order came from media magnate Sigid Haryo Wibisono in March. However, Jacob denied that Wiliardi knew antigraft chief Antasari Azhar, another key suspect in the sexually motivated murder scandal.

The lawyer said his client had definitely not met suspended Corruption Eradication Commission (KPK) chairman Antasari before the murder took place two months ago.

In a related development, Antasari Azhar was on leave when Nasruddin was shot dead by hit-men on March 14, according to KPK deputy chairman Chandra M. Hamzah.

"I replaced Pak Antasari as acting chairman when he was taking a leave from March 8-15, 2009, for personal reasons," Chandra told a hearing with the House of Representatives' Commission II on legal affairs Thursday.

Along with Wiliardi and Sigid, Antasari is one of nine suspects being detained for the murder of Nasruddin, director of state pharmacheutical company PT Putra Rajawali Banjaran.

Nasruddin died on March 15, a day after he sustained gunshot wounds from a drive-by shooting that took place after he left the Modernland Golf Course in Tangerang, Banten. Antasari has been charged by the Jakarta Police with masterminding the murder.

"Pak Sigid asked my client if he could provide a man for a 'special job'. Whether the job was 'state duty' or something else, I don't know yet," Yohanes told the press at Jakarta Police headquarters. "Pak Wili (Wiliardi) eventually accepted Pak Sigid's request and provided him with a suitable man," Jacop added.

However, the lawyer declined to acknowledge whether or not the job in question was the assassination of Nasrudin.

National Police spokesman Insp. Gen. Abubakar Nataprawira identified the "middleman" provided by Wiliardi as Eduardus Ndopo, aka Edo.

Edo reported the job to Hendrikus Kia Walen and Fransiskus Tadon Keran, whose alleged roles were as field coordinators. The two allegedly recruited a shooter, Heri Santosa, and a motorcycle rider, Daniel Daen, to shoot Nasruddin.

"My client asked Pak Sigid to cash Rp 500 million (US$48,000) for the operation fee," Jacob said. "Pak Sigid gave the money to my client, and he passed it to the man (Edo). So, my client acted as nothing more than just a "courier", he said, adding that Wiliardi did not take a single rupiah.

The transaction allegedly took place in a parking lot in Cilandak Town Square, South Jakarta.

According to Jacob, Sigid and Wiliardi were long time business partners. "They had been close each other for years. That is why my client accepted the request," he said, without elaborating further.

Jacob claimed his client's involvement in the case was a set up, but refused to explain further.

National Police chief Gen. Bambang Hendarso Danuri said Wednesday that Wiliardi was dismissed as South Jakarta police chief and from the police force entirely over the murder.

Media reports say the murder was triggered by a love triangle among Antasari, Nasruddin and golf caddy Rani Juliani. (bbs)

Indonesia's anti-graft chief Antasari Azhar held on killing

The Australian - May 5, 2009

Indonesia's anti-graft chief was arrested yesterday for allegedly masterminding the murder of a company executive in a case that has rattled the country's efforts to fight corruption.

Corruption Eradication Commission (KPK) head Antasari Azhar was declared a suspect after hours of questioning over the murder of Nasrudin Zulkarnaen, the head of a state-owned company and a former KPK witness, Jakarta police chief Wahyono said.

Zulkarnaen was shot dead in March outside a golf course on the outskirts of Jakarta. Media speculation has connected the killing to an alleged love triangle involving the two men and a 22-year- old female golf caddy.

Allegations that Azhar was the mastermind of the killing have thrown into turmoil the work of the KPK, which has claimed high- profile scalps and is considered one of Indonesia's few clean institutions.

"Antasari was arrested and detained this evening," said Jakarta general crimes chief Muhammad Iriawan. "The case falls under Article 340 (on premeditated murder), which carries a maximum sentence of death."

Azhar, who has overseen a series of high-profile investigations into government officials and institutions, has not been officially charged.

Police said nine suspects had been named in connection with the murder of Zulkarnaen, the head of state firm Putra Rajawali Banjaran, who was slain in his car in a co-ordinated assault by attackers on motorcycles.

The suspects reportedly include the murder's alleged financier, newspaper owner Sigid Haryo Wibisono, and a former senior policeman.

The case triggered a storm of speculation in Indonesia, with the Attorney General's Office (AGO) forced to deny it was seeking revenge against Azhar for the high-profile corruption convictions of senior AGO prosecutors.

The AGO raised eyebrows late last week by announcing Azhar was a suspect, despite police and lawyers insisting he was wanted only as a witness. Police said they decided to name Azhar, who is on "temporary leave" from the KPK, as a suspect only after he was questioned yesterday.

While some supporters of the KPK cried foul over the arrest, other anti-corruption campaigners said the move against Azhar marked a step against impunity for the law among Indonesia's powerful.

"All this time there has seemed to be special protection for high-ranking officials, and the AGO may have been afraid this case would have stopped with the police," said Teten Masduki, a spokesman for the global anti-corruption watchdog, Transparency International. "The police have the authority to name someone a suspect. The AG0 didn't follow this rule, but its actions were helpful in the context of Indonesia."

Petrus Balla Pattyona, the lawyer for four men accused of carrying out the killing, said they had tried twice to kill Zulkarnaen and were threatened with death if they failed.

"They said they had received orders to kill and were threatened on their second attempt. (They were told) they were facing an enemy of the country who would divulge national secrets," Pattyona said.

Established in 2003, the independent KPK has earned a reputation for hard-nosed fighting against corruption and has helped to boost the anti-graft credentials of President Susilo Bambang Yudhoyono.

Despite Indonesia's recent gains, Transparency International continues to rate the country among the world's most corrupt. (AFP, AP)

Police say KPK chief Antasari mastermind behind murder

Jakarta Globe - May 5, 2009

Farouk Arnaz & Nivell Rayda – Antasari Azhar, chairman of the Corruption Eradication Commission (KPK), was detained by Jakarta Police on Monday after being declared the suspected mastermind in a complex murder case that has both shocked and captivated the nation.

Police released some details of their investigation on Monday and the intricate maneuvering that led them to slapping the suspect tag on Antasari on a charge of premeditated murder, an offense that can carry the death penalty.

The widely anticipated arrest came after the KPK chief appeared for questioning at National Police headquarters in South Jakarta as a witness in the March 14 shooting death of Nasrudin Zulkarnaen, director of state-owned PT Putra Rajawali Banjaran, near a golf course in Banten.

"We detained him after we summoned him for questioning for seven hours and found a relationship to this murder. We believe he is the mastermind," said National Policespokesman Insp. Gen. Abubakar Nataprawira on Monday evening. "What the motive is will be revealed in court."

There have been many theories and rumors about the murder, the most prominent being that it stemmed from an alleged love triangle among Antasari, Nasrudin and a female golf caddy, Rani Juliani, at the Modernland course where the victim played golf before he was gunned down by two men on a motorcycle.

Jakarta Police Chief Insp. Gen. Wahyono declined to answer when asked by reporters at a packed news conference whether the caddy was having an affair with both men, only saying, "Rani's explanation to us is related to this case and she is now under our protection."

A National Police source familiar with the case said that Antasari was suspected of orchestrating Nasrudin's murder to prevent him from creating a scandal by going public about the KPK chief's alleged affair with Rani. The source said Nasrudin, who had reportedly taken Rani as his third wife, caught her and Antasari together in 2008.

Last week, police detained eight suspects in connection with the murder, some of whom have apparently confessed to playing roles and implicated others. Police released their names on Monday, including two alleged hitmen identified as Heri Santoso and Daniel.

"We started to unravel this case after we arrested suspect H [Heri]. He drove the motorcycle with D [Daniel]. D shot the victim in the head," Wahyono said.

Police nabbed Heri after finding a witness who identified his motorcycle by its license plate number. Police say that after being detained, Heri confessed to shooting Nasrudin together with Daniel on the order of a man named Hendrikus Kia Walen, who has also been detained as a suspect.

Hendrikus said another conspirator, identified as Fransikus, drove a vehicle in front of Nasrudin's BMW to slow him down and give the hitmen an easy target.

According to police, Hendrikus said he received the order to kill Nasrudin from Eduardus Ndopo Mbete, who told police during questioning that he was acting on the orders of Willy Wiliardi, a former South Jakarta Police chief.

Wahyono said police then arrested Sigid Haryo Wibisono, a businessman and former politician, who allegedly funded payments for the conspirators. Based on information from Sigid, Wahyono said, "we then summoned [Antasari]."

In a brief news conference on Sunday, Antasari, flanked by a team of lawyers, said he was ready to defend himself and that the rumors about him were not true.

Disgraced KPK chief faces suspension: Presidential advisor

Jakarta Post - May 3, 2009

Jakarta – President Susilo Bambang Yudhoyono will definitely suspend Corruption Eradication Commission (KPK) chief Antasari Azhar, a suspect in a sex-driven murder scandal, a presidential advisor said Saturday, amid growing pressure to save the integrity of the anti-graft body.

Antasari was named a suspect Friday by the Attorney General's Office (AGO) in connection with the murder of Nasrudin Zulkarnaen, director of state pharmaceutical firm PT Putra Rajawali Banjaran (PRB), on March 14.

"Soon after we receive an official letter from the police about Antasari, the President will certainly issue a letter suspending him," SBY's staff expert of legal affairs Denny Indrayana told The Jakarta Post.

The 2002 KPK law mandates the President to suspend any commission members should they be declared suspects in a criminal case, and to fire them if they stand trial on criminal charges as defendants.

Denny said the four KPK deputies would collectively lead the anti-graft body when Antasari was suspended.

However, former presidential advisor Adnan Buyung Nasution said a collective leadership would not suit the KPK, suggesting the President should summon the four deputies and ask them to choose one acting chairman.

House of Representatives' legal affairs commission head Trimedya Pandjaitan said legislators will soon hold a meeting to discuss Antasari's plight. "The Antasari case is a shock for the KPK. Its image will be blemished as a result," he said.

Earlier Saturday, anti-corruption activists urged the President to immediately suspend Antasari to save the KPK's integrity and credibility in combating corruption.

The murder scandal involving its chairman should not deter the KPK from pressing ahead with its investigations into major graft cases, they added.

"Antasari's case is personal and has nothing to do with the KPK. The institution is more important than Antasari," Indonesia Corruption Watch (ICW) legal researcher Febri Diansyah told a press conference.

He warned rumors had been spread over the Internet and by text messages to degrade and demoralize the KPK and cause people to distrust the anti-graft body.

Febri also said the KPK should feel relieved and empowered to probe more cases once Antasari was suspended, arguing the commission chief had several times intervened and blocked major corruption probes his institution had launched.

Febri cited as example the probe into a bribery scandal involving legislator Agus Condro, which the KPK has stalled for months.

Agus, a legislator from the Indonesian Democratic Party of Struggle (PDI-P), filed a report on an alleged Bank Indonesia (BI) bribery, where he had received Rp 500 million (US$47,000) after Miranda S. Goeltom's election as BI senior deputy governor in 2004.

Agus had been questioned by the KPK but no suspects were named despite the legislator returning the bribery money to the anti- graft body.

"Antasari has become an obstacle for the KPK. So, despite the murder case, Antasari's suspension can be good news," Febri said. "It's like removing a tooth. It will hurt you for a moment, but then you will feel better for a long time afterward," he added.

Another ICW activist, Dadang Tri Sasongko, said Antasari had a poor track record as a senior prosecutor at the AGO. "We knew Antasari was not clean during his previous stint as a prosecutor. But our input to the House was ignored," he said.

Antasari's legal team's spokesman Juniver Girsang denied his client had been named a suspect in the murder case. "We received a letter from the police summoning Antasari as a witness, not as a suspect." Juniver also dismissed as slander rumors Antasari masterminded Nasrudin's murder. (bbs)

Indonesia's anti-corruption czar a murder suspect

Agence France Presse - May 2, 2009

Jakarta – Indonesia's high-profile anti-corruption czar has been named a suspect over the murder of a state company executive, officials said.

Corruption Eradication Commission (KPK) head Antasari Azhar was formally declared a suspect in the drive-by shooting murder of company executive Nasrudin Zulkarnaen late Friday, the Attorney General's Office said.

Police had no comment about the allegations against Antasari, who has headed a strong crackdown on corruption including a series of investigations into prosecutors at the Attorney General's Office, which have proved damaging for officials and institutions involved.

His lawyer said Antasari would be questioned as a witness over the murder of Zulkarnaen, the director of state firm Putra Rajawali Banjaran, who was shot on the outskirts of Jakarta on March 14.

He said Antasari had requested "temporary leave" from his KPK duties to attend to the allegations. The corruption fighter and former prosecutor was one of Zulkarnaen's golfing friends.

Since its establishment in 2003, the independent KPK has gained a reputation as one of the few clean institutions in the country, one of the most corrupt in the world according to Transparency International.

Mining sector costs Indonesia Rp38.4 trillion per year: ICW

Jakarta Post - May 2, 2009

Jakarta – The country loses Rp 38,4 trillion every year from the mining sector, particularly in gas and oil sectors, according to Indonesia Corruption Watch (ICW).

"There are indications that revenues are under-reported every year," said ICW's data center division chief Firdaus Ilyas to tempointeraktif.com.

Firdaus said based on findings from the Supreme Audit Agency (BPK), the total financial losses suffered by the state during the 2000-2008 period from this sector amounted to nearly Rp 346 trillion, or equivalent to twice the state's allocation for the health sector.

The losses were attributed to unaccountability and lack of transparency in management. Moreover, there was also a lack of effective monitoring of the extractive sector by lawmakers.

Islam/religion

NGO protests over church permit revocation

Jakarta Post - May 2, 2009

Depok – Following the Depok municipality's decision to annul the building permit (IMB) for a Protestant Batak Christian (HKBP) church in Cinere, the Setara Institute for Democracy and Peace said Thursday it would protest against the decision.

"The constitution guarantees the right to build houses of worship. Moreover in this case, the church congregation had already secured the building permit prior to the current Depok mayor administration," said Setara executive director Hendardi.

In 1998, the church construction committee received a building permit from the administration to build a church and multifunctional hall on 5,000 square-meters of land. The former Depok mayor, Badrul Kamal, however, suggested the committee stop building the church in May 1999 following a series of protests from nearby residents.

Since early 2008, the committee has repeatedly sent letters to Nurmahmudi Ismail asking for a response, after getting no clarification for nine years.

On March 27, Nurmahmudi finally cancelled the church's building permit.

Elections/political parties

Megawati likely to run with Prabowo

Jakarta Post - May 8, 2009

Dicky Christanto, Jakarta – Megawati Soekarnoputri has no other choice but to pick Great Indonesian Movement Party (Gerindra) head Prabowo Subianto as her running mate for the upcoming presidential election.

Megawati's Indonesian Democratic Party of Struggle (PDI-P) had expected to win some 15 percent of votes in the legislative election, but will have to coalesce with Garindra, the only significant contender that has yet to form a coalition with another party.

PDI-P officials said the party was waiting until the last minute for the General Elections Commission (KPU) to announce the results of the legislative election, scheduled for May 9, before it settles on a coalition partner.

"We want to maximize the remaining time before the KPU announces the results of the vote counting to lobby with those who are interested in building a coalition with the PDI-P for the presidential election," PDI-P secretary-general Pramono Anung told journalists after attending a closed door meeting of the party's central board here Thursday.

The Prosperous Justice Party (PKS), the National Mandate Party (PAN), the National Awakening Party (PKB) and the United Development Party (PPP) have declared they will be part of a coalition with incumbent President Susilo Bambang Yudhoyono's Democratic Party, while the People's Conscience Party (Hanura) and the Golkar Party have formed a third major coalition.

SBY is set to announce his running-mate for his reelection bid on Saturday. Pramono however said that Megawati might have met with Prabowo or with other party leaders to make a personal agreement without any public announcement.

"We should give the chance to these public figures to be able to share their feelings freely in private because we consider it could be more effective than the ones held before and exposed to the public," he said.

He said right now intensive yet serious dialogues had been pursued with several parties and potential figures by the PDI-P. "We are communicating the idea of a coalition with many parties, such as the Great Indonesia Movement Party and they are still underway. Thus let us wait and see about it in the following days."

The 2008 Law on Presidential Elections requires a political party or a coalition of parties to hold at least 20 percent of seats (based on the results of the legislative election) in the House of Representatives to be eligible to field a candidate for the presidential election.

Maruarar Sirait, a PDI-P legislator who also attended the meeting, said a coalition would be possible for the party as long as its potential partner accepts Megawati as the presidential candidate, as decided by the party's national congress.

He acknowledged Prabowo was the only candidate the PDI-P was seriously considering to be Megawati's running mate.

Permadi, a new but influential member of Gerindra, said recently that the party has recommended the nomination of Prabowo as presidential candidate and was pursuing a coalition with other parties to find a running mate.

Many analysts have speculated that Prabowo could be a tough opponent for the incumbent President but, according to recent surveys, Megawati's electability is far higher than Prabowo or Wiranto.

There's no room at the top for Prabowo

Jakarta Globe - May 7, 2009

Markus Junianto Sihaloho – After much wheeling and dealing, the Indonesian Democratic Party of Struggle (PDI-P) on Thursday appeared to have finally put an end to the hopes of a Suharto former son-in-law to run for the presidency on the party's ticket.

Lt. Gen. (ret) Prabowo Subianto has been busy selling his hopes to the PDI-P since it became clear that his fledgling Great Indonesia Movement Party (Gerindra) would garner less than 5 percent of the national votes in the April 9 legislative elections.

By approaching the PDI-P, which will likely get about 14.5 percent of the votes, the two may stand a chance to nominate a pair of candidates for the presidency and the vice presidency in the July 8 elections. Gerindra has since floated a pair of candidates, with Prabowo running for the presidency in tandem with Puan Maharani, the daughter of PDI-P chairwoman Megawati Sukarnoputri, who has reportedly been grooming her to take her place.

But on Thursday, PDI-P secretary general Pramono Anung put an end to the possibility. "It is now 100 percent certain the presidential candidate from the PDI-P will be Mrs. Megawati Sukarnoputri," he said after a party leadership meeting at Megawati's residence in Menteng, Central Jakarta.

"If there is a rumor saying that the PDI-P has another alternative [presidential candidate], we stress that we will be nominating Ibu Mega as the only candidate," he added.

Many political analysts and observers have said that Megawati, who has already failed to be elected to another term and lost to President Susilo Bambang Yudhoyono in 2004, would stand no chance at challenging him in the upcoming presidential elections. Almost all recent political surveys show that Yudhoyono, whose Democratic Party appears set to reap the highest number of votes in the April elections, is the strongest contender for the presidency.

Last month, Pramono said the party would reveal a name to run as Megawati's vice presidential candidate after the plenary meeting. Party sources close to Megawati at the time said they were sure that Prabowo would accept the vice presidential ticket. But Prabowo has since repeatedly stressed that he was aiming for no less than the presidency.

PDI-P loses bid to build coalition with PAN

Jakarta Post - May 7, 2009

Dicky Christanto, Jakarta – The National Mandate Party (PAN) has dashed hopes of a deal with the Indonesian Democratic Party of Struggle (PDI-P), joining forces instead with the Democratic Party of President Susilo Bambang Yudhoyono

PAN vice presidential candidate Hatta Radjasa confirmed his party's commitment to supporting Yudhoyono in the July 8 presidential election when he visited PDI-P leader Megawati Soekarnoputri on Wednesday.

"Pak Hatta held talks with Ibu Megawati on many topics, including PAN's current political stance which is to be with SBY," PDI-P secretary-general Pramono Anung said after the closed-door meeting.

Hatta is the first PAN executive to have officially announced the party's decision to join the coalition with the Democratic Party. No PAN executive appeared at the signing of a parliamentary coalition by 10 parties at the People's Conscience Party (Hanura) office last Friday.

PAN leader Sutrisno Bachir held a series of meetings with counterparts of parties that would form an alliance to fight the Democratic Party-led coalition.

When asked about his visit, Hatta failed to provide a clear answer. He only said his visit was related to state business. "I am here to confirm to Ibu Mega the ownership status of this house. This house is hers now," Hatta said.

Megawati began to live in the house on Jl. Teuku Umar in Menteng upmarket area in Central Jakarta when she took office as the president in 2001. According to regulations, Megawati, in her capacity as former president, was entitled to receive from the state a plot of land and a house in a premium Jakarta location.

Pramono said Hatta also delivered a message from Yudhoyono to Megawati, saying the president expected that the upcoming election could serve as a medium to enhance democracy.

Pramono dismissed any possibility that the PDI-P might name Hatta as the running mate for its presidential candidate Megawati after a proposed coalition between PDI-P and the Great Indonesia Movement Party (Gerindra) looked to crumble.

"Megawati has already pocketed the name of the vice presidential candidate, thus as of now she has the right when and where to announce it," he said. He added that negotiations between PDI-P and Gerindra were still underway.

Megawati is slated to announce her running mate following a PDI-P executive meeting on Thursday. PDI-P chief advisor Taufik Kiemas had warned earlier the party might delay the announcement of its presidential and vice presidential candidates, saying the issue needed to be handled with care.

"We would wait and see the current political situation before coming up with any decision regarding the ticket," Taufik, Megawati's husband, said.

Separately, Arbi Sanit from the University of Indonesia suggested Megawati should drop any plan to have Gerindra founder Prabowo Subianto as her running mate as the latter would not give up his bid for the presidency.

"Instead Megawati should use the opportunity given by Jusuf Kalla who has allowed Golkar members to contest the election under the banner of rival parties. The most strategic yet pragmatic way is for Mega to choose her running mate from Golkar," he said.

Arrest of Antasari Azhar won't hit Yudhoyono's chances

The Australian - May 6, 2009

Stephen Fitzpatrick, Jakarta – The arrest of Indonesia's anti- corruption tsar over a murder will have little impact on President Susilo Bambang Yudhoyono's re-election campaign, analysts say.

This is despite crime fighter Antasari Azhar having been a poster boy for the President.

"Corruption is important but, really, the things that are most important are the costs of basic needs, things in relation to poverty," commentator Sunny Tanuwidjaja, from the Centre for Strategic and International Studies, said yesterday.

And members of an Indonesian elite class who might see Mr Azhar's arrest as reflecting poorly on the President's anti-corruption drive were unlikely to have a big influence on the election result, he added.

"Maybe intellectuals will make the connection, but the ordinary people, they will look to (the success of) programs such as the BLT and BOS (cash handouts for the poor and a school funding program)," he said.

Mr Azhar will face as-yet-unspecified charges relating to the shooting of businessman Nasrudin Zulkarnaen as he left a Jakarta golf course in March. Mr Azhar was arrested on Monday night.

Indonesian media has speculated over a love triangle involving Mr Azhar, Nasrudin and his third wife, golf caddie Rani Juliani. It has been suggested that Mr Azhar was set up over the murder, with evidence reportedly including the secret filming of a sex tape involving him and Ms Juliani in a south Jakarta hotel.

Police are expected to allege that Mr Azhar organised Nasrudin's murder to stop the businessman revealing the affair. Mr Azhar has denied any wrongdoing, and Mr Tanuwidjaja said the affair could, ironically, end up strengthening the Corruption Eradication Commission, of which, until last Friday, Mr Azhar was head.

"There is positive and negative in this," Mr Tanuwidjaja said. "Questions could be asked about the institution's credibility, but the way it handles this, the fact it has asked him to step down, could show that it is quite credible and transparent."

Political scientist Syamsuddin Haris predicted little electoral impact from the scandal, saying the Corruption Eradication Commission was "an independent institution".

The presidential poll, slated for July 8, looks like being a showdown between Mr Yudhoyono, his deputy, Jusuf Kalla, and either former president Megawati Sukarnoputri or her new ally, retired military strongman Prabowo Subianto.

Ms Megawati and Mr Prabowo have done a deal to run a joint ticket but have yet to announce which of them will get top billing on it.

Ms Megawati's Indonesian Democratic Party for Struggle, which won up to 15 per cent of the vote in last month's parliamentary poll, has a solid enough constituency but Mr Prabowo has a family fortune worth billions of dollars to call on.

Mr Yudhoyono confirmed that he had already decided on a running mate but says he will not make his selection known until after results in the parliamentary poll are declared on Saturday.

Having made a clear break with Mr Kalla's Golkar party, Mr Yudhoyono now has the option of selecting a political professional or technocrat for his ticket rather than relying on party affiliation.

And despite predictions that the recent rearranging of Indonesian politics will push him into the arms of Islamist parties to regain office, Mr Yudhoyono looks likely to win with an even bigger mandate.

Dynasties look set to mark next House of Reps

Jakarta Post - May 6, 2009

Apriadi Gunawan, Jakarta/Medan – President Susilo Bambang Yudhoyono's youngest son Edhie Baskoro and former president Megawati Soekarnoputri's daughter Puan Maharani look set to join the House of Representatives after winning legislative seats in their respective provinces, keeping the political legacy of their families alive.

It had long been anticipated both would eventually inherit their parent's current seats sometime in the future.

According to preliminary results from the Center for Electoral Reform, Edhie won a convincing victory for the Democratic Party with nearly 100,000 votes in his electoral district, and father's home province, of East Java. Puan meanwhile grabbed 240,000 votes to win a seat in Central Java, a stronghold of the Indonesian Democratic Party of Struggle (PDI-P) which her mother leads.

Refly Harun, a senior researcher from Cetro, said these candidates won their seats mainly due to their family's popularity and had not yet proved themselves professionally capable of governing their provinces.

"Maintaining a political dynasty is fine as long as the family members involved are politically professional, but most of them are new faces who have little or not experience," he said.

Apart from Edhie and Puan, Ahmad Mumtaz Rais, son of former chairman of the People's Consultative Assembly (MPR) Amien Rais, won a legislative seat as well.

PDI-P's Puti Guntur Soekarno, also Megawati's niece, won more than 17,500 votes in West Java while Megawati's husband Taufiq Kiemas, and his brother, Nazarudin Kiemas, will also likely secure the DPR seats of West Java and South Sumatra respectively.

Amien's son Ahmad and his brother Abdul Rozaq Rais are also expected to secure legislative seats in Central Java. Ahmad won nearly 42,000 votes while Abdul Rozaq won 22,800.

Both old and new faces from North Sumatra will feature in the fresh 560-member House throughout the next five years.

Lawyer cum actor Ruhut Sitompul, who represented the Democratic Party, was the first provincial winner in the legislative election in North Sumatra. Defeated gubernatorial candidate, Abdul Wahab Dalimunthe from the Golkar Party, will accompany 12 other Golkar cadres taking up new legislative seats at the House.

Meanwhile defeated gubernatorial candidate Tri Tamtomo and seasoned politicians Panda Nababan, Trimedya Panjaitan and Yasonna Laoly won seats in North Sumatra for the PDI-P.

As of May 5, the General Elections Commission (KPU) had counted 82.7 million votes from 59 electoral districts in 25 provinces.

According to the current results from the manual vote count, the PD is still leading with 20.71 percent of the votes, followed by the PDI-P with 14.89 percent and Golkar with 14.64 percent.

The Prosperous Justice Party was in fourth place with 8.26 percent, while the National Mandate Party occupied fifth place with nearly 6 percent of the total vote tally. (fmb)

Golkar branches disown Kalla and Wiranto

Jakarta Post - May 5, 2009

Jakarta – Regional branches of the Golkar Party are refusing to acknowledge the pairing of chairman Jusuf Kalla with head of the People's Consience Party (Hanura) Wiranto as candidates for July's presidential election.

Chairmen from various branches are demanding the party hold an extraordinary meeting to ask for an explanation from Kalla on the party's failure to win the legislative election, which could lead to Kalla's unseating.

"Their declaration does not comply with the party's internal mechanisms. The chairman should have consulted with all the party's stakeholders before making any crucial and strategic decisions," Golkar's Malang regency chairman, Aris Budjonegoro, said at the House of Representatives (DPR) Speaker's office in Jakarta on Monday.

"Therefore, along with the other regional branch heads, I am here to meet with Agung Laksono to express our concern and to request that an extraordinary national meeting commence immediately," he added. Aside from being head of the DPR, Agung is the deputy chairman of Golkar.

Aris said he brought along 50 other regional branch heads with him to meet with Agung, and that they represented the will of more than 200 of Golkar's branches located throughout Indonesia. Aris said that Kalla should explain his political moves and strategy in the meeting.

"This is in line with one of the clauses from the result of the previous leadership meeting. The meeting states that the chairman has full authority to commence any necessary political communication, therefore he should explain the development of his moves and strategies in the next meeting," he said.

The chairman's nomination was considered by the party's regional branches as an unwise and emotional decision because it ended the coalition with the winners of the legislative elections, the Democratic Party (PD), Aris said.

"We are still seeing that the most rational decision is to maintain a coalition with PD," Aris said.

The PD wanted Golkar to nominate more than one potential vice presidential candidate for incumbent President Susilo Bambang Yudhoyono (SBY) to run with in the July presidential election.

Kalla and his camp, however, decided to name just Kalla, whose loyalty to SBY had come in to question after he declared his wish to run for president during campaign rallies.

SBY has stressed the importance of having a loyal vice presidential candidate.

Agung said that he would make the input of the region branches a top priority and would present their thoughts to Kalla as soon as possible.

"We are going to have a plenary meeting tomorrow with the other central board executives along with the Golkar chairman. I will directly present their concerns to Pak Kalla as soon as possible," he said.

Agung added that he thought it would be wiser for the party to listen to the regional branches' wishes and hold another leadership meeting as soon as possible. "I think it will be bad for Golkar if they [regional branches] fail to get what they want," he said.

However, Burhanuddin Napitupulu, Golkar deputy chairman and one of Kalla's close aides, played down the concerns of the regional branches, saying the majority of them supported the Kalla-Wiranto partnership. (hdt)

Government ensures end to voter list fiasco

Jakarta Post - May 5, 2009

Jakarta – Learning from the voter list fiasco that marred the legislative elections, the government says it has taken necessary measures to prevent the problem from recurring in July's presidential election.

Home Minister Mardiyanto told a hearing of the House of Representatives' Commission II on domestic affairs the central government was encouraging provincial and regional governments to play a more active role in helping the General Elections Commission (KPU) update the list of eligible voters for the July 8 polls.

"Local government instruments must assist the KPU update the voter list and ensure the validity of the data. The bureaucracy must also intensively raise public awareness of the voter list updating process, which is now underway," he said.

The KPU will complete the process by May 10, but will open registration until May 17. The final voter list will be made public on May 31.

The government and KPU have called on the public to actively check their status on the list with their respective neighborhood unit chiefs.

Political parties and civil society groups claim approximately 40 million of the nation's 171 million eligible voters were prevented from voting in the April 9 legislative election because of to the KPU's failure to register them.

Somehow, many of the dead people, minors and police and military personnel, who are not eligible to vote, were on the list.

The commission and the government came under fire from parties and the public over the voter list.

Both the government and KPU blamed each other for the mess, but on Monday, Mardiyanto acknowledged a lack of coordination between the two institutions might have caused the problem.

"There was a lack of capable human resources when we converted the potential voter list (DP4) into the interim voter list (DPS). The lack of publicity of the interim voter list deterred people from confirming their presence on the list."

The voter list controversy has triggered civil society groups and political parties to file a lawsuit against the commission and the government for ignoring citizens' constitutional right to vote.

KPU chief Abdul Hafiz Anshary said it would be better to resolve the issue with a personal approach. "I believe we can resolve on the issue peacefully and we do not need to fight each other at the Constitutional Court," he said. (hdt)

Kalla could present SBY with tough race, runoff

Jakarta Post - May 4, 2009

Adianto P. Simamora, Jakarta – The entry of Vice President and Golkar chairman Jusuf Kalla in the presidential election is expected to turn it into a three-horse race, and could force President Susilo Bambang Yudhoyono to a runoff.

Centre for Strategic International Studies (CSIS) political analyst J. Kristiadi and Indo Barometer executive director Muhammad Qodari said Kalla could pose a significant threat and possibly even upset Yudhoyono in the presidential race.

"Kalla's candidacy will make the competition tougher, with the incumbent Vice President claiming the credit for his role in the government's achievements over the last five year," Kristiadi told The Jakarta Post on Sunday. "Voters who recognize the achievements could shift their support toward Kalla."

Kalla announced his presidential bid last week. He also unveiled his running mate, Wiranto from the People's Conscience Party (Hanura), making them the first pair to declare their candidacy for the July 8 presidential poll.

Yudhoyono has confirmed his bid but has yet to name a running mate, although during an Asian Development Bank (ADB) meeting in Bali on Sunday he said he had already decided on one.

However, he refused to mention any names, with State Secretary Hatta Radjasa of the National Mandate Party (PAN) and Bank Indonesia Governor Boediono being touted as the strongest candidates.

The Indonesian Democratic party of Struggle (PDI-P), currently second in the legislative election counts, has nominated its chairwoman Megawati Soekarnoputri. The party has not decided on her running mate either, although Prabowo Subianto of the Great Indonesia Movement Party (Gerindra) is considered the most likely choice.

Kristiadi said Kalla's team should work hard to change the public perception that the government's achievements were down to Yudhoyono, as he had claimed in TV ads. He added Kalla should also tout his success in bringing peace to restive regions, including in Aceh, Poso and Maluku, to draw more votes.

Indo Barometer's Qodari said the opportunity for Kalla to steal from Yudhoyono's voter base was wide open. "The election has become unpredictable with Kalla's entry, because he is part of the government and can lay claim its achievements to aid his candidacy," he told the Post.

He added the popularity of presidential candidates would change rapidly depending on campaign strategies.

Golkar decided to nominate Kalla as its presidential candidate after coalition talks with Yudhoyono's Democratic Party were called off.

Kalla said Saturday he had on three occasions asked Yudhoyono whether he would be picked once again as the incumbent's running mate, before deciding to part from the alliance with the Democratic Party.

"No decision was given by Pak Yudhoyono. It means he rejected (me)," Kalla said in Makassar as quoted by kompas.com. "So it's not me who pulled away from the SBY-JK (Yudhoyono-Kalla) coalition."

Democracy must not fail despite troubled polls, scholars say

Jakarta Post - May 4, 2009

Jakarta – The country has encountered a setback in the recent legislative elections, but this should not discourage efforts to continuously preserve and improve its hard-won democracy, a discussion heard Saturday.

Participants at the discussion agreed that despite the voter list fiasco and rampant reports of vote buying that marred the election, the nation relished voters' display of freedom and maturity.

"There are some positive notes concerning the elections, such as the fact there was more freedom and voters exercised their wisdom in selecting candidates and did not take into account religious fanaticism and tribal fragmentation, which is good for democracy," said Muhammadiyah scholar Siti Musdah Mulia.

She warned the unaddressed issues of poverty and social injustice would continue to haunt the development of democracy in the country. "The longer the issues stay unresolved, the more the people will doubt the compatibility of the presidential and multiparty systems," she said.

"In the long run, people will question the legitimacy of democracy in answering those issues, and there is always a chance for certain groups to exploit the disquiet and bring back the authoritarian regime in the name of religion or nationalism."

Catholic priest and philosopher Franz-Magnis Suseno said the democracy in place in Indonesia had yet to reach its full potential and would take time before it could bear fruit.

"We cannot expect democracy to solve all problems all at once, but it will take time. The most important thing is to use the current democratic system as a benchmark for future improvement," he said.

Senior lawyer Adnan Buyung Nasution said the multiparty presidential system had given the country nothing but trouble over the last five years.

"We saw repeated tension between the government and the legislature in the last five years, which caused tremendous inefficiency in the country's governance. Therefore it is crucial to reform the governance system to improve democracy," he said.

He added Indonesia had tried many different systems in the past and none had proved to work.

"We tried a presidential system that awarded huge power to the president and the government during the Old Order and New Order, but we all know both systems ended up in dictatorship," he said.

"So I think Indonesia should try a semi-presidential system, in which the governance is run by the president and a prime minister. The president will play a symbolic role and take care of essential issues such as defense, while the prime minister will be in charge of daily governance of the nation." (hdt)

Kalla-Wiranto opposed by top brass

Jakarta Post - May 3, 2009

Dicky Christanto and Slamet Susanto, Jakarta – Jusuf Kalla's decision to run for president and pick retired general Wiranto as running mate lacks solid support from with in Golkar, which could threaten both his presidential candidacy and position as party chairman.

Senior officials of the Golkar party warned Kalla on Saturday to immediately embrace those opposing his crucial decision in order to counter a serious threat to his presidential bid and chairmanship of the party.

Kalla, the Vice President, declared at his private residence in Jakarta Friday that Wiranto, who currently chairs the People's Conscience (Hanura) Party, is his running mate for the July 8 presidential race.

The declaration was attended by many loyalists. But several top brass of the party were not seen at the event, including Aburizal Bakrie, Muladi, Agung Laksono and Fadel Muhammad, suggesting a bitter internal rift in the Golkar Party.

It is widely known that Aburizal, Muladi and Agung Laksono are among the party's important figures who wanted Golkar to support the reelection bid of the incumbent President Susilo Bambang Yudho-yono, chief patron of the Democratic Party.

"We are now witnessing a star war within the party, thus there is no other way forward for Jusuf Kalla other than to initiate communication with them [his opponents] to avoid any internal damage later on," Golkar deputy chairman Zainal Bintang told The Jakarta Post on Saturday.

Another Golkar leader, who wished to remain anonymous, said Kalla had not invited him or other senior figures, like Aburizal, Muladi and Agung Laksono, to attend his candidacy declaration.

"So there is no communication at all at this point. I was almost jumping from my seat knowing that Jusuf Kalla was announcing Wiranto's candidacy as his running mate," he told the Post.

When asked about what steps Kalla's opponents may take, he acknowledged that the idea was to wait for Kalla's next political move. "We do not intend to do anything but to see where all of this is going first," he said.

Opposition also came from several local branches, which told Kalla to act rationally by joining the Democratic Party's coalition.

"We should be more rational, and... acknowledge that the Jusuf Kalla and Wiranto pairing is not as popular as the incumbent Susilo Bambang Yudhoyono," Samsul Hidayat, regional party offices spokesman, said as quoted by detikcom.

Golkar deputy secretary Rully Chaerul Azwar, an ally of Kalla's, denied any internal split, claiming what was happening now was merely a "lack of coordination" between the regional offices and the central board.

"We will talk about it during a meeting this week in which Jusuf Kalla will officially report his candidacy to the party. Hopefully, we will not face any protests at the meeting," he said.

In Yogyakarta, in an expected move, the National Mandate Party (PAN) decided Saturday to join forces with the Democratic Party and nominated PAN cadre Hatta Rajasa as vice presidential hopeful for Yudhoyono.

Kalla picks Wiranto as running mate

Jakarta Post - May 2, 2009

Dicky Christanto, Jakarta – The Golkar Party and the People's Conscience Party (Hanura) unveiled Vice President Jusuf Kalla and Wiranto as their presidential and vice presidential candidates Friday, becoming the first partnership to declare their bid for the July 8 poll.

The announcement overshadowed the signing of a coalition agreement just a few hours earlier which involved 10 political parties, including Golkar and Hanura, to form a political bloc at the House of Representatives.

The Indonesian Democratic Party of Struggle (PDI-P) and President Susilo Bambang Yudhoyono's Democratic Party (PD) look set to follow suit in the coming days to complete a three-way race for presidency.

Defying a number of surveys that ranked him low in terms of acceptability, Golkar leader Kalla expressed optimism his partnership with former Indonesian Military commander Wiranto would prevail in the presidential election.

"I feel very confident that we can not only compete, but God willing will also win the upcoming presidential election. We have the qualities required to build a more effective and firm administration."

Among those qualities, he added, was the will to tackle problems without hesitation. "Letting oneself be drowned in the sea of hesitation only slows and sometimes prevents leaders from making the right decision for the sake of the people," he said.

Kalla and Wiranto were embroiled in controversy after the vice- president called the founder of Hanura "a free rider" during a Golkar convention in 2004 to select the presidential candidate, which Wiranto won. This year, the two bickered once more, but later held a reconciliation meeting.

Golkar announced a breakaway from its coalition with PD last week after intensive negotiations between the two parties collapsed.

Wiranto said he chose Kalla for a number of logical reasons. "Aside from the chemistry I have with Kalla, obviously Hanura failed to secure more than 10 percent of votes. So, if I insisted on naming myself as a presidential candidate then it would only create a shakier administration later on. I am being realistic," he said.

PD congratulated the Kalla-Wiranto partnership and said it looked forward to "fair competition" in the presidential election.

"The president and vice president have met face to face in the past and agreed that if they had to square off, the competition should be run fairly and in accordance with the rules," Democratic Party deputy chairman Andi Mallarangeng said.

He added his party was ready to cooperate with Golkar after the July 8 presidential election.

Kalla and Wiranto joined leaders from eight other parties – the PDI-P, Golkar, the United Development Party (PPP), Hanura, the Great Indonesia Movement (Gerindra) Party, the Peace Prosperous Party (PDS) and the PKNU (National Ulemas Awakening Party) – in declaring the formation of a parliamentary coalition at the Hanura office earlier on Friday.

Gerindra founder Prabowo Subianto read out the coalition agreement, which stated they were ready to maintain economic sovereignty for the people and strengthen the unity of Indonesia as a nation.

"This coalition is not aimed at disrupting the political process, let alone tailored to disrupt other political parties. Instead, it is aimed at strengthening coordination in all levels of administration."

The United Development Party (PPP) did not sign the pact, citing internal rifts.

Four major parties sign pact to form an opposition

Jakarta Globe - May 2, 2009

Four major political parties on Friday signed a coalition agreement aimed at strengthening their positions in the legislature, party officials said.

The Golkar Party and the Indonesian Democratic Party of Struggle (PDI-P), the 2004 poll winners, entered a coalition that also included two upstart parties – the Great Indonesia Movement Party (Gerindra) and People's Conscience Party (Hanura) – believed to have been among the 10 largest vote getters in the April 9 legislative elections.

The coalition also involved four smaller parties that appear likely not to gain any seats from last month's elections.

But their self-proclaimed "jumbo coalition" agreement stipulated that the four main parties would initially only work together in the legislature at the national level, in the provinces, the districts and municipalities.

"We will talk about [the presidential candidate] later. We unite first, then we will decide on the technicalities. The coalition in the legislature is an initial step to set up a government," said Golkar chairman Jusuf Kalla after the signing at the Hanura party headquarters in Menteng, Central Jakarta.

The other signatories included PDI-P chairwoman Megawati Sukarnoputri, Gerindra founder Prabowo Subianto and Hanura chairman Wiranto.

The prospect of a coalition between the four was doubted by many who said it would be difficult for the parties to agree on a pair of candidates for the presidential and vice presidential elections on July 8.

Noticeably missing from the coalition were the United Development Party (PPP) and the National Mandate Party (PAN), which had earlier been touted as potential coalition members. Their respective chairmen, Suryadharma Ali and Sutrisno Bachir, were absent at the signing.

Suryadharma's deputy, Chozin Chumaidy, said the PPP had not signed the agreement, as the chairman was not mandated by his party to do so. Without the PPP and PAN, the coalition is believed to account for about 38 percent of the votes in the legislative elections. That may translate to about 40 percent of the 560 seats in the House of Representatives.

Bima Arya Nugraha, of the Charta Politika Indonesia private political consultancy, said the coalition could pose a real problem for the government. "This coalition has so much power if they become the opposition. They could be a problem for the government," he said.

Yudhoyono may be driven into Islamic fold

Sydney Morning Herald - May 2, 2009

Tom Allard Herald, Jakarta – Indonesia's President, Susilo Bambang Yudhoyono, is being driven into the arms of the country's Islamic parties, posing questions about the direction of his administration if, as expected, he is re-elected.

Dr Yudhoyono – a retired general who has overseen a moderate, cautiously reformist government – secured a strong win in last month's legislative election while the Islamic parties did poorly compared with 2004. A variety of nationalist parties tied to Dr Soeharto's New Order dictatorship and the military also performed weakly but yesterday five of them announced a "koalisi besar" – grand coalition – to challenge Dr Yudhoyono in the critical July presidential poll.

Whether they can coalesce around a single presidential candidate, or nominate two, remains highly uncertain but they have vowed to use their votes in the country's parliament to stymie the passage of Dr Yudhoyono's policies.

The declaration also means the parties will not support his re- election bid, heightening the likelihood that Dr Yudhoyono's main coalition partner will be the Prosperous Justice Party (PKS), an Islamist Party with its roots in Egypt's Muslim Brotherhood movement.

At least two other Islamic parties are also expected to join the coalition, and gain powerful cabinet positions. PKS, which supports the secular constitution, was instrumental in pressuring Dr Yudhoyono to introduce the two most controversial policies of his term in office.

The first was a loosely framed anti-pornography law that outlaws images, text and even sounds designed to sexually arouse. Indonesia's non-Islamic minorities vehemently opposed the legislation believing it to outlaw, for example, Balinese Hindu erotic dances and the wearing of penis gourds by Papuan tribesmen.

The second contentious policy made it illegal for an Islamic sect, Ahmadiyah, to preach or seek converts openly. Ahmadiyah followers – who do not regard Muhammad as the final prophet – have lived in Indonesia for decades but are hated by the country's fundamentalists.

Lili Romli, a political analyst at the Indonesian Institute of Sciences, said Dr Yudhoyono had to be careful managing a likely coalition with parties who want an "Islamic approach" to government. "I think people's welfare must be the objective of the coalition," he said.

According to opinion polls, Dr Yudhoyono remains hugely popular. One recent survey had more than 80 per cent of respondents supporting his re-election.

"SBY's electability is still very high," said Mr Romli. "I guess he will win the presidential race but his intention to have a strong Parliament that can support his administration may not happen. The grand coalition... will make a strong opposition in Parliament." Further reforms to fix the country's corruption- plagued and inefficient bureaucracy, police and judiciary and promote economic growth could be jeopardised by legislative gridlock, he said.

The grand coalition includes parties led by a former president, Megawati Soekarnoputri, and the current Vice-President, Jusuf Kalla. Members of the grouping include two former generals accused of overseeing human rights abuses during the Soeharto government, Wiranto and Prabowo Subianto.

Coalitions of parties blasted as 'absurd'

Jakarta Post - May 2, 2009

Jakarta – Analysts have called recent moves by parties trying to form coalitions based on power sharing as "absurd", saying Indonesia needs political partnerships that strengthen the constitution and will meet people's needs and demands.

Political observers have slammed elite groups and legislative elections winners for negotiating coalitions based exclusively on power distribution without taking into consideration the aspirations of voters and their expectations for the next five years.

Arya Bima Sugiarto from the Paramadina University, former-student activist Nehemia Lawalata and executive director of the National Survey Institute (LSN) Umar S. Bakry said that based on results so far from the legislative election, the majority of people want nationalist parties and young leaders to enforce change and salvage the country from sectarian conflict, poverty and breakaway movements.

"The coalition should be based on political agendas that benefit the majority of people and offer solutions to the major problems affecting the nation during this prolonged (economic) crisis," Arya Bima said at a discussion in Jakarta on Friday.

Nehemia and Umar said voters were bored with the old faces of Yusuf Kalla, Wiranto and Megawati Soekarnoputri, and they would easily be defeated by the incumbent President if they insist on contending the presidential race.

Siti Zuhro from the Indonesian Institute of Sciences (LIPI) said with the Democratic Party's (PD) victory in the legislative election, Yudhoyono would be too strong for Kalla and Megawati unless a coalition was formed.

"The race will be different if the Golkar Party, the Indonesian Democratic Party of Struggle (PDI-P) or other nationalist parties like Hanura and Gerindra form a major coalition and nominate a pair of young candidates to challenge Yudhoyono," he said.

Yudhoyono is expecting support from a strong coalition including PD, PKS and the National Awakening Party (PKB), which will dominate almost 40 percent of seats in the House of Representatives.

Umar said Yudhoyono would face a difficult battle because of his administration's poor track record.

"More and more people are disappointed with Yudhoyono's red report in all sectors bar security. The government's current programs, including the cash aids and free healthcare for the poor, have not proven effective in alleviating poverty. Also unemployment and his personal performance is far beyond the Middle-Term Development Program."

Mudji Sutrisno, a young intellectual and professor at the Driyarkara Philosophy Institute, called on Megawati to voluntarily step down and play a crucial new role seeking a young party cadre to challenge Yudhoyono.

According to analysts, the pairing of Prabowo and economist Rizal Ramli with political support from the PDI-P, the Great Indonesian Movement Party (Gerindra) and other smaller parties would present a real challenge to SBY, because they share similar political platforms and are fresh figures with political courage, clear concepts and programs offering change for the next five years.

Calls for KPK to broaden its probe into poll fiasco

Jakarta Globe - May 2, 2009

Camelia Pasandaran & Nivell Rayda – Civil society organizations on Friday called for the Corruption Eradication Commission to investigate election commission higher-ups over procurements for the legislative polls.

The organizations, under the umbrella of the Independent Monitoring Organization, said it was not right that the Corruption Eradication Commission (KPK) should investigate only employees from the General Elections Commission (KPU) while ignoring the commissioners themselves.

The organization added that the KPK's probe should not just concentrate on electronic vote tabulation procurements.

"The procurement process also involved KPU commissioners," Arif Nur Alam, director of Indonesia Budget Center, said on Friday. "And these commissioners should also be responsible for the procurement as it was under their supervision."

The Corruption Eradication Commission on Thursday summoned three officials from the KPU over technical problems in the electronic vote-counting system used in the April 9 legislative polls.

The system – which the KPU says cost Rp 40 billion ($3.8 million), in contrast to assertions by the KPK that it cost Rp 103 billion – was designed to provide unofficial results ahead of the finalization of the official manual vote count on May 9.

The KPU had planned to use the system to count 80 percent of the ballots by April 20, but it had barely counted 10 percent of the about 130 million eligible votes by this deadline, prompting an investigation by the KPK.

The day after the deadline, the KPK opened a corruption probe into the use of the system to determine whether the process to procure the technology had been carried out in an honest, transparent manner.

Arif also said the KPK should investigate other procurments by the elections commission, including ballot papers.

"There were many misprinted ballot papers that could not be used, as well as cases of switched ballot papers, which meant the KPU had to reprint the papers," he said.

"The KPK should investigate whether there were irregularities in the ballot paper procurement."

Roy Salam, a researcher at the Indonesian Forum for Budget Transparency, said the KPK should also investigate the inefficient budget usage for voter education programs. "There were several areas in which KPU spending appears excessive," Roy said.

Sulastio, chairman of the Indonesian Parliamentary Center, said the KPK should speed up its investigation to prevent any attempts to destroy evidence. "The KPK should move quickly to investigate these issues as there may be efforts to hide or change the data," he said.

KPK spokesman Johan Budi said that "at the moment there are no plans to summon any of the [KPU] commissioners, but if there is a need to do so, we will."

Money politics tops violations of legislative election law

Jakarta Post - May 1, 2009

Dicky Christanto, Jakarta – Vote buying topped the list of election violations investigated by police during the nine months of election campaigning preceding the April 9 polls.

National Police Chief Gen. Bambang Hendarso Danuri told a hearing with the House of Representatives' Commission II on security that law enforcement agencies investigated more than 600 poll violations, 175 of which involved cases of vote buying, commonly known as "money politics".

Misuse of state facilities ranked second with nearly 90 cases, followed by vandalism with 80 cases and campaigning before the official election season began, where there were more than 60 infringements. The police did however drop more than 130 cases for various reasons, including a lack of evidence.

"State prosecutors are in the process of investigating around 310 cases with the intention of bringing them to court, and are still examining more than 165 cases," Bambang told the House commission Wednesday.

Poll observers had anticipated widespread vote buying would occur throughout the election campaign after the Constitutional Court declared in December that the candidates with the most votes would win legislative seats.

If found guilty of vote buying, a candidate may face disqualification.

Missing in the list of violations, however, was the use of minors in rallies, which occurred almost everywhere and was perpetrated by nearly all political parties.

The lawmakers then grilled Bambang for refusing to handle cases on unregistered voters in the recent elections.

The legislators said the police had misinterpreted the legal system when it argued that cases of possible violations in the overall management of the general elections should be dealt with under the State Administration Law.

"Cases related to voter lists don't fall under the State Administrative Law, thus there is no reason for the police not to conduct an investigation into such cases," Indonesian Democratic Party of Struggle (PDI-P) legislator Gayus Lumbuun said.

Political parties and civil society groups estimate that around 45 million voters were left disenfranchised during the recent legislative elections because they were not registered on the voter lists.

Among those that reported cases to the police only to have them rejected were the Indonesian Legal Aid and Human Rights Association (PBHI) and Elections Supervisory Body (Bawaslu) member Wirdyaningsih. Bawaslu has said the police should have taken action against the General Elections Commission (KPU) for denying voters their constitutional rights.

Gayus said the police could not wash its hands of the serious violations committed by the KPU.

Government/civil service

More women elected, but are they quality?

Jakarta Globe - May 8, 2009

Camelia Pasandaran – Though the number of women elected to the House of Representatives looks set to increase, the quality of the candidates remains suspect, election observers said on Thursday.

Projections from election watchdogs state that the number of women securing seats in the House will increase from 11 percent of the total number of legislators in 2004 to between 14 percent and 17 percent when the new batch are seated in September.

Sri Budhi Eko, director of the Center for Political Research (Puskapol) at the University of Indonesia, said that rather than search for candidates with proven integrity and competence, political parties had more often than not selected female relations of party members to meet the requirement that at least 30 percent of the candidates be female.

"Forty percent of the candidates were recruited based on their relations to political elites," Sri said. "Political parties did not really consider the quality of the candidates, but only recruited persons close to the political elites to fill in the 30 percent quota. This has given birth to a new wave of political dynasties."

The concern was, she said, that rather than pushing for legislation to improve the lot of women and the people in general, the new legislators would become silent lawmakers, beholden to the same old interests.

In the 2004 to 2009 political term, there were a total of 65 female legislators, or 11.6 percent of the total. The unequal percentages between men and women highlights what observers and activists say is the domination of male lawmakers who produce legislation that marginalizes women.

They say female legislators, on the other hand, have helped bring about several key laws, such as those on child protection and human trafficking.

Based on the latest information from the General Elections Commission (KPU), Puskapol data says 73 female candidates, or 14 percent of total lawmakers, are likely to be elected. The Center for Electoral Reform (Cetro) puts the figure at 17.41 percent, or more than 90 candidates.

Cetro said that among the new female legislators were the wife of Democratic Party chairman Syarifuddin Hasan, Ingrid Maria Palupi; the wife of United Development Party (PPP) chairman Suryadharma Ali, Wardatul Asriah; the daughter of South Sulawesi Governor Syahrul Yasin Limpo, Indira Chunda Tita Syafrul; and the daughter of former President Megawati Sukarnoputri, Puan Maharani.

Indonesian Democratic Party of Struggle (PDI-P) lawmaker Ganjar Pranowo said that gender was not significant in politics. "It is a free competition where the winner is the strongest," Ganjar said.

Jojo Rohi of the Election Observer Independent Committee said that it was hard to be optimistic about the results, and parties should educate their new lawmakers. "Political parties recruited female candidates based on popularity and political dynasty, but they ignored the candidates' quality," he said.

House of reps neglects priorities, passing of key bills in doubt

Jakarta Post - May 8, 2009

Jakarta – The clock is ticking for current members of the House of Representatives, many of whom will loose their seat in four months, but there is still no sign they will be able to pass a backlog of crucial bills into law by the deadline.

Instead of completing the ratification of crucial bills, such as the corruption court bill and the state secrets bill, the House has been focusing on less important bills, such as the hospital bill.

"The discussion on the hospital bill is nearing its completion. We are confident that we are going to be able to pass the bill into law before the end of our tenure," deputy chairman of the House Special Committee on the Hospital Bill, Hakim Sorimuda Pohan, said Thursday.

"However, we are going to wait for the ratification of the health bill because it covers a broader scope," he added.

The health bill itself is one of the 39 priority bills that the House aims to ratify by the end of its tenure. The bill has been negotiated by the House and the government for the last four-and-a-half years, according to Hakim.

"We only have one different perception from that of the government on the health bill – the government thinks that the family planning program should be managed by the Health Ministry while we think it has more of a relationship to demographic problems, rather than health problems," Hakim said.

"However, we believe that we can settle our differences as soon as possible and finally pass the health and hospital bills into law," he added.

The state secrets bill, another priority, remains under discussion. Theo L. Sambuaga, chairman of House Commission I on Defense, Intelligence, Foreign Affairs, Communication and Information, said he was fully confident the bill could pass into law by August.

"We have held many intense discussions with the defense minister, along with the communications and information minister, on the bill since last October,

"So far, everything looks good and hopefully by the end of June we can submit the bill ratification proposal to the working committee and finally make it into a law by August," he said.

According to Theo, the intense discussions have managed to resolve 90 out of the bill's 270 inventoried issues so far.

Member of the house Bomer Pasaribu said recently that conflicts of interest between legislators and their individual quests to secure seats for another term had distracted them from meeting deadlines. According to Bomer, the House has managed to pass only 157 of its targeted 284 bills in the past five years.

However, Theo denied that conflicts of interest and recent presidential issues had affected his commission's commitment to passing the bills. "Our commission's legislators remain committed to their jobs, even those who have not been selected for another term, such as me," he said.

A legislator from the Indonesian Democratic Party of Struggle (PDI-P), Ganjar Pranowo, agreed that the July presidential election had not distracted his party's legislators in doing their job of producing laws.

"My special committee on the legislative bodies composition bill remains focused on passing the bill into law before our terms end," he said. (hdt)

Media/press freedom

Violence hindering press freedom in Indonesia

Jakarta Post - May 6, 2009

Wahyoe Boediwardhana, Malang – The Independent Journalists' Alliance (AJI) has recorded 44 incidents of violence against journalists across the country in the past year, calling it the main hindrance to press freedom in Indonesia.

Heru Priyatmojo, advocacy coordinator of the AJI's Malang branch, said there were far more physical and verbal abuse cases, with the reported cases only the tip of the iceberg.

"The cases have become a source of concern for Indonesian journalists, as such violence has become an obstacle for journalists seeking to report on a case or event," he said Monday after a rally organized to commemorate International Press Freedom Day in Malang.

He added 19 of the 44 reported cases involved physical violence, while nine featured verbal abuse or threats, eight involved a ban on coverage, and seven involved journalists' equipment being confiscated.

AJI Malang chairman Abdi Purnomo said one journalist had been murdered in Bali, and one taken hostage in Papua. "We also recorded 13 cases of journalists being criminalized and sued. This also a hindrance to press freedom in Indonesia," he said.

"All cases being heard at various courts are defamation cases. In other countries, articles on defamation and libel are no longer popular and have been wiped out."

However, he warned that journalists were not legally untouchable. "If a journalist commits a crime, such as murder or blackmail, then they deserve to be treated like other criminals," Purnomo said.

"Press institutions should also prevent themselves being used for personal gain, such as practice of news trade or taking bribes, which go against journalism ethics and principles."

The AJI said 34 of the reported cases stemmed from the perpetrators not wishing to have journalists report on certain stories. Others included perpetrators who were disappointed with the reports (five cases) and perpetrators who demanded journalists reveal their sources (two cases).

Police officers dominated the list of perpetrators with 12 cases, followed by civilian officials with seven cases and military officers with five cases. The AJI also recorded violence committed by supporters of gubernatorial candidates and workers (three cases each), while university students, businessmen and thugs had two cases each.

Jakarta had the most incidents of violence against journalists (six incidents), followed by South Sulawesi (five); East Java, North Maluku, Riau and Riau Islands (four), and North Sumatra, West Java and Papua with three cases each.

Press integrity an ongoing battle

Jakarta Globe - May 7, 2009

Ismira Lutfia – A decade has passed since the Indonesian press achieved freedom, yet it is still faced with incomprehensible press laws, the increasing criminalization of the press, a market-driven media and the rise of infotainment in broadcast news reports, panelists said on Tuesday.

In a seminar organized by the Press Council and the UN Educational, Scientific and Cultural Organization (Unesco) to review press freedom in Indonesia, media activists and lawyer Todung Mulya Lubis said that court decisions favoring the press were the exception, often because of loopholes in the Press Law.

"The press still have to rely on the presiding judge's mercy," Todung said, adding that despite the Supreme Court in December advising district court judges to seek the Press Council's expertise when presiding over press libel cases, it did not mean that the judges were obliged to do so because the instructions were not mandatory.

"The judge's decision would still be binding even if it was not made with the Press Council's advice," Todung said, adding that the Press Law itself needed to be revised to make it as comprehensive as possible.

However, he warned that proposing revisions to the law could be like opening a Pandora's box as lawmakers, often the subject of press criticism, could take the opportunity to further emasculate press freedom.

The Press Council's deputy chairman, Leo Batubara, said that despite the passing of the 1999 Press Law, other laws had put pressure on press freedom, such as laws on electronic information, freedom of information, pornography and elections – all passed in 2008– as well as the addition of articles to the Criminal Code that can be used to jail journalists.

According to Leo, those five legal regulations made 2008 "the most deterring year" for the press.

He also said the council has seen a gradual increase in public complaints filed in recent years, something he blamed on the failure of journalists to work to professional standards and unhealthy media management.

"About 70 percent of press publications don't have good management and only a small portion of journalists are competent professionally," Leo said.

Yopie Hidayat, the editor in chief of the business daily Kontan, concurred, saying that "the brightest university graduates often choose to work on the more glamorous side of the communication business such as public relations or broadcasting."

"University graduates who have a sincere interest in becoming journalists are perhaps only those who read Tintin comics," Yopie said, referring to the young reporter character in the legendary Tintin comics created by Belgian author George Remy.

Yopie also said that other challenges faced by Indonesian media were maintaining its impartiality in the face of pressure from various interests surrounding the media and not succumbing to market forces.

"The invisible hands that control the media industry often lead the media to forget its role as one of the pillars of democracy," Yopie said.

Bowing to market trends and the tight competition be tween television stations has also led to the production of ratings- driven programs, said Indonesian Broadcasting Commission chairman Sasa Djuarsa Sendjaja.

"[Market and press] freedom also allow for the freedom to produce programs that have a negative impact and exploit poverty," Sasa said, adding that most popular media programs were those that focused on conflict, celebrities, sensation and sex.

Aid & development

NGOs call for end to water privatization drive

Jakarta Post - May 4, 2009

Niken Prathivi, Denpasar – Various NGOs gathered Saturday to discuss the fallout from funding water access with international loans, as the 42nd annual board of governors' meeting of the Asian Development Bank (ADB) kicked off in Nusa Dua.

The NGOs debtWATCH Indonesia, People's Coalition for the Right to Water (Kruha) and the People's Alliance for the Citarum River (ARUM) held a forum Friday titled Right to Water and the Role of International Financial Institutions.

Sri Lanka's Center for Environmental Justice and the Philippines' Freedom from Debt Coalition also took part in the discussion.

Kruha national coordinator Hamong Santono said loans provided by international financial institutions, such as the World Bank and the ADB, for water supply access had blocked local people from their own water resources.

"Financial institutions' policy sees water as an economical good. Use of water is divided into forms of commercialization, modification and privatization," he said.

"Those institutions always interfere in a debtor's water use policy. For instance, when Indonesia took a US$300 million loan from the World Bank in 1999 to reform its water resources, the government produced Law No. 7/2004 on Water Resources, which strongly emphasizes water's economic value. The law allows the private sector to provide clean water services for the people."

Hamong said exploitation for profit and privatization had flourished in Indonesia, thanks to the water resource law.

"Since then, private companies have competed to provide clean water to the people," he said. "We urge financial institutions, like the ADB, to change their point of view on water. Stop considering water an economic good."

ARUM coordinator Dadang Sudarja called for a review of the $500 million Integrated Citarum Water Resource Management Investment Project (ICWRMIP).

"There are five points on the project that need further explanation to help local people living near the Citarum River," he said.

"The points are on resettlement plans, PR policy, strategic environmental assessment, multi-tranche financing facility schemes, and the project's funding. Should the five points not be clearly explained, we suggest the government halt the project."

The country received the first phase of funding, worth $50 million, early this year. The fund is for the renovation of the West Tarum Canal in Karawang and Bekasi, West Java.

"Such renovation could be a waste of money, as the water would be streamed to industrial needs in Jakarta. So the real agenda has been exposed," Hamong said.

Foreign affairs

Defence review afforded friendly reception in Indonesia

Sydney Morning Herald - May 2, 2009

Tom Allard, Jakarta – The defence white paper crowns a transformation in Australia's strategic perception of Indonesia, as fears of invading hordes from the archipelago are replaced by a far more sanguine view of the country as a partner and friend.

The country's transformation from dictatorship to democracy, its steady economic progress, the winding down of the military's political power and its success in combating Islamic terrorism have underpinned the reversal.

"Indonesia has made remarkable gains in the past decade," the white paper said. "It is likely that these positive trends will continue, and that Indonesia will continue to evolve as a stable democratic state with improved social cohesion."

Reflecting the kind words for Indonesia in the white paper, and the fact that its military was consulted in its drafting and given an advance copy, the country's defence ministry warmly welcomed the document yesterday.

"I believe the defence policy will be targeted to bring world peace," said Brigadier General Slamet Heriyanto, a spokesman for the defence ministry.

The extra spending on submarines, jet fighters and warships was not seen as a provocative gesture but a benign development from an economically successful nation.

"I think it is only natural for a country to do that, if financially speaking it is able to do that," said General Heriyanto. "The important thing is we never see our neighbouring country Australia as a threat but rather as partner who, together with Indonesia participating, is safeguarding the region."

While not expressed openly in the white paper, Indonesia's military capability in terms of fighting wars is poor. Its 300,000-strong army is primarily structured for internal security and its navy and air force are small and poorly equipped.

Andi Widjajanto, from the University of Indonesia, said the spending priorities of President Susilo Bambang Yudhoyono are education rather than the military. "It looks like the defence budget will be reduced in 2008-09," he said.

Economy & investment

Consumers see the gloom lifting

Jakarta Globe - May 6, 2009

Ardian Wibisono – Indonesia's economic blues may be one step closer to fading, at least if consumer sentiment is anything to go by.

Bank Indonesia's monthly consumer confidence survey crossed over into officially "optimistic" territory in April, notching a reading of 102.5, the highest figure since November 2007. Continuing a four-month rise, the index rose 3.9 points from the previous month, largely due to the reasonably calm legislative elections, Bank Indonesia said.

"The peaceful social and political situation after the elections was believed to improve people's expectations about economic conditions. This led to an optimistic consumer confidence index," Bank Indonesia said on its Web site on Tuesday.

BI's Consumer Confidence Index, a survey of 4,600 randomly selected households nationwide, began trending upward in January, after falling to a four-month low of 90.6 in December. A reading below 100 means that consumers are generally pessimistic about their economic future, with readings above that level suggesting overall optimism.

The survey also revealed good news on inflation worries, with fewer consumers expecting prices of goods to increase in the coming months. The survey's price expectation index for the next three months was down 2.8 points to 148.1; for six months, the figure was down 1.1 points to 152.6.

The respondents expected prices of food and tobacco to decrease in the next three to six months as the harvest season approaches and goods are more plentiful.

Eric Alexander Sugandi, an economist at Standard Chartered Bank, said consumer expectations were in line with government and central bank projections on inflation. "Inflationary pressure will continue to decline," he said, citing the effect of lower fuel prices.

Economists and Bank Indonesia are saying inflation should be about 5 percent by the year's end, with a significant drop in June.

Sugandi said a number of events in addition to elections contributed to rising confidence, including a salary increase for public servants.

"Confidence also improved because the global economic crisis seems to be having a limited effect on the domestic economy, or it may just be delayed," he said. "The index could return to pessimistic levels if there are major job cuts ahead showing that the crisis is starting to take hold."

Bank Indonesia acknowledged that the economy would continue to slow in the second quarter, largely due to lower trade figures because of the global economy, weak purchasing power and general uncertainty.

A BI survey of business conditions, also released on Tuesday, showed decreased economic activity in the first quarter. The results echoed a survey by the Central Bureau of Statistics saying business expectations in general were decreasing due to falling domestic and international demand.

Hundreds of cooperatives in Malang liquidated

Jakarta Post - May 4, 2009

Wahyoe Boediwardhana, Malang – Hundreds of cooperatives in Malang city are threatened by insolvency as an increasing number of them go out of business, said a local expert recently.

An expert in economics and financial affairs at the Malang city administration, Abdul Malik said of the 638 registered cooperatives, only 374 remain active to date.

"The cooperatives are no longer active, as shown by the lack of business activities at each cooperative," he said. "Some of them have declared bankruptcy due to capital loss and can no longer hold members' annual meetings."

Malik added that most of the cooperatives were liquidated due to capital loss, and consequently they were unable to compete with banks in providing basic services to their members and the public.

Many banks are able to provide loans at low interest rates easily while cooperatives with limited capital are no longer able to provide such services, prompting people to eventually move back to banks.

"This is a real challenge for the cooperatives. However, they must survive because they are greatly neded by the people," said Malik.

"If this situation continues, it is likely that the 374 cooperatives will not be able to survive and will be threatened with bankruptcy for similar reasons."

In response, Malang city administration spokesman, M. Subkhan, said the municipality would immediately take the necessary steps to address the issue.

"The city administration is currently coordinating with the Indonesian Cooperatives Council (Dekoping) to evaluate the situation of all remaining cooperatives," said Subkhan. "We can only take action after the evaluation."

If a cooperative has to be closed after evaluation, the remaining funds can be injected into a prospective cooperative unit, so the presence of the cooperative could be maintained and services still provided to the people.

The head of the East Java Cooperatives and Small and Medium Enterprises Agency, Brahman Setya, said currently there were Rp 38.4 billion (US$3.62 million) worth of nonperforming loans (NPLs).

The amount is 12 percent of the total Rp 325 billion disbursed by the agency to around 18,000 cooperatives in East Java's 38 regencies and mayoralties from 2003 to 2008. The funds were derived from the provincial budget.

Brahman did not specify the reasons behind the NPLs. He only said that the funds had been intended for small and medium enterprises under the supervision of the cooperatives in East Java.

"Only 21 regencies and cities have been commended as cooperative motivators. We will encourage 17 other regions to earn similar approbation," said Brahman.

Inflation eases, exports fall - further rate cut?

Jakarta Post - May 2, 2009

Benget Besalicto Tnb., Jakarta – Inflation continued to ease in April, giving the central bank lee-way to further cut its key interest rate to spur economic growth, which slowed after a sharp drop in exports as a result of the global financial crisis.

One-year inflation stood at 7.3 percent last month from a year earlier, easing from 7.9 percent in March, Central Statistics Agency (BPS) chairman Rusman Heriawan said Friday.

Benign inflation has prompted the central bank to reduce the interest rate since December, stoking consumer demand in the consumption-driven economy.

A lower BI rate should see banks follow suit by cutting lending rates, spurring loan demand from businesses and individuals alike and, in turn, stimulating the economy.

The central bank will next week meet to decide its rate policy. Its benchmark interest rate currently stands at 7.5 percent.

Indonesia's economy is indeed in need of a stimulus, with investment and exports both hit hard by the global economic downturn, leaving consumption again as its main driver.

Also on Friday, Rusman announced first quarter exports dropped by 32.13 percent to US$22.90 billion as compared to the same period last year. Nonoil and gas exports during the period also plunged by 25.69 percent, to US$19.58 billion from a year earlier.

The global economic crisis dampened global export demand, which eventually pushed down the prices of the world's key commodities, further eroding export revenues for commodity-heavy countries like Indonesia.

Indonesia's exports have been on a decline since October last year, just as the world's liquidity crisis started to escalate. Indonesia's economy, in general, has felt the pinch ever since.

In the first quarter, the economy is estimated to have grown by 4.6 percent, slower than 6.1 percent recorded last year.

As the impacts of the global crisis worsen, the central bank has revised downward its 2009 full-year economic growth forecast to between 3 percent and 4 percent, as exports, export revenue and inward investment continue to plunge.

Initially it forecast a growth of 4 to 5 percent. It also has forecast that full-year exports may contract by as much as 28 percent.

Analysts have said that, in addition to support from the monetary side, by having a low central bank interest rate, the economy will need support on the fiscal front in the form of massive government spending, including the planned stimulus package.

The government's economic stimulus package, which includes infrastructure development, has yet to be fully implemented so far, although it is expected to help cushion the impact of the crisis later on the year.

The government has allocated Rp 73.3 trillion ($6.4 billion) in its stimulus package.

Jakarta sees 0.15 percent deflation in April

Jakarta Post - May 2, 2009

Jakarta – Jakarta's Statistics Agency announced Friday Jakarta experienced a deflation of 0.15 percent in April.

The biggest contributor to the deflation was the decreasing price of clothing. The prices of male apparel decreased by 1.78 percent, the agency reported.

The price of grains, preserved fish, vegetables, spices and shallots decreased while the price of ready-to-eat food products and cigarettes increased by 0.16 percent.

Djamal said Jakarta was one of the 50 cities that experienced deflation out of 66 surveyed cities.

Analysis & opinion

The un(wanted) candidates

Jakarta Post Editorial - May 8, 2009

Upon observing coalition agreements made by the leaders of political parties, the upcoming presidential election, scheduled for July 8, will very likely be a three-horse race. But are the three presidential candidates and their running mates really who the Indonesian public want to see contesting?

The three presidential candidates are incumbent President Susilo Bambang Yudhoyono (who has yet to announce a running mate), incumbent Vice President Jusuf Kalla, who will partner with Gen. (ret) Wiranto, and the camp led by former president Megawati Soekarnoputri, who will most likely partner with Lt. Gen. (ret) Prabowo Subianto.

A good point in observing the presidential candidacy is the fact that the election will not be a one-man show, as had been feared previously by many. Eligible Indonesian voters will be given the opportunity and liberty to choose among the three available candidate pairs.

The question is, however, whether the three candidates – and their potential running mates – truly represent the interests and expectations of voters.

It has been interesting but also discouraging to monitor the maneuvers made by the candidates and to see who they have chosen as partners to contest the election.

The reasons provided by Jusuf Kalla for his choice of Wiranto as his running mate are trivial and difficult to accept in this era of modern leadership and management principles.

Kalla's argument that Wiranto was the perfect match (Wiranto is a Javanese, which would complement Kalla who is non-Javanese; Wiranto has a military background, whereas Kalla has a civilian and business background) were understandable and could have benefited Kalla if he had run for the presidency during the New Order era, when the Java/non-Java and civilian/military dichotomies were prevalent. However, these days such traditional grounds should not be the key and determining factors any more, but shared interests and ideology.

Similar reasons would likely be adopted by Megawati in picking Prabowo as her running mate. It is true Megawati and Prabowo have yet to agree on the final combination of their partnership – whether Megawati will be the presidential candidate and Prabowo the vice presidential candidate, or if Prabowo will be the presidential candidate and a senior official from Megawati's Indonesian Democratic Party of Struggle (PDI-P) will be Prabowo's running mate.

However, one thing is certain: Megawati and Kalla's choices of running mates for the July 8 election were both made with the same goal – to beat Yudhoyono.

Yudhoyono, whose Democratic Party (PD) will very likely top the April 9 legislative election tally, has been relatively quiet and passive in maneuvering to establish a coalition ahead of the presidential election. However, the fact that there are only Islamic parties for it to form a coalition with is no advantage for PD, a centrist party.

The three presidential candidates and their partners are already on the "election menu". They have the constitutional right to contest the election, but in the end it is the Indonesian voters (or to be more precise the eventual voter turnout) that will decide whether one of them will be triumphant enough to be declared the winner.

Discourse: Signs of recovery are there, but not yet sustainable

Jakarta Post - May 8, 2009

Anton H. Gunawan and Reza Y. Siregar are two Indonesian economists, who have recently written the Survey of Recent Developments in the latest Bulletin of Indonesian Economic Studies (BIES), April 2009, published by the Australian National Univesity (ANU) in Canberra. Anton is currently chief economist at Bank Danamon and Reza is a Singapore-based analyst and previously a Faculty member at the University of Adelaide in Australia. The Jakarta Post's Manggi Habir conducted the following interview with them.

Do you see the pick up in the currency and stock market index as an indication that the worst is over and we should see signs of recovery ahead?

Reza: Indeed, the stock exchange index is often considered as a 'leading indicator', and that positive trends from the index could signal a recovery in the economy's real sector. But, I won't interpret the encouraging trends that we saw as signs of a sustained recovery in the domestic economy. We presently face a global financial crisis, unlike the 1997/98 crisis.

The recovery of our economy depends heavily on sustained positive news from the global financial markets, especially from the US, Europe and Japanese markets. So far, economic indicators from these G3 economies remain fragile.

Anton: Don't be deceived by short-term and sentiment-driven phenomena. We need to take a closer look and distinguish two different parts in the economy, the financial markets and the real sector. The recent strengthening of the rupiah and the stock and bond prices were primarily driven by a swing in foreign investor sentiment towards a more optimistic stance.

There is no major change in the economic fundamentals driving financial asset prices. What has changed is the perception of foreign investors on the Indonesian external balance, mainly the current account balance and short-term private external debt. The risks of external exposure are not as high as earlier perceived.

The current account has turned to a surplus, and there has been no strong evidence of refinancing problems for short-term private external debt. Of course, the risks are still there, but not so significant as initially perceived. Secondly, the movements of stock prices are linked to both the movements of stock prices in other countries and the prospects for the Indonesia's economy.

We understand that the worst is not over yet, although there are early signs of the economy stabilizing in China.

From your experience and our past 1997/98 Asian crisis experience, where exactly are we now in the business cycle of a recession? What are the indicators that we should be watching out for and how do we assess whether these signs show a sustainable improving trend?

Reza: We have not reached the turning stage of a recovery. Obviously, there are many more indicators to watch. But we learned from the 1997 crisis that bank lending activity is one critical indicator of any sustained recovery going forward.

Although our banks are less exposed to toxic financial derivatives, conditions remains highly sensitive to the performance of the local economy and indirectly to the global economy. Until banks are willing to lend again, high lending rates will continue providing little support for real sector growth.

Anton: I am afraid that we are still in the downturn phase of the recession, both globally and domestically, especially if we also include the effect of the pandemic swine flu. The key thing to watch is confidence in general and across the sectors.

This can be a key driver for consumption and investment to pick up. To effectively restore confidence, we need to see the financial and capital markets functioning.

Do you feel that enough has been done in Indonesia and the region? If not, what more should be done? There was the failure of two small banks in Indonesia, which was not totally a surprise, but do you foresee more problems with the smaller banks? Is LPS sufficiently capitalized to handle potential problems?

Reza: The commitment to protect bank deposits only up to Rp2 billion was unfortunate, especially when many neighboring countries, such as Singapore, Malaysia and Hong Kong, adopted full guarantees.

Given the stronger reputation of the banking sector in Singapore, the less than full guarantee over bank deposits in Indonesia exposes local banks to a flight to quality. Yes, the concern about inadequate capital undermines the credibility of LPS.

But similar regional institutions may not have the necessary capital to cover full blown bank panics as well. So we need to exhaust all possible measures to instill confidence and to significantly reduce the likelihood of bank-runs in the first place.

Anton: Many measures to stabilize the financial sectors have been taken by the Bank Indonesia and the government, from restoring the tight rupiah liquidity situation in 4Q08, and reducing the pressure of oversupply in the government bonds market, which in turn helped reduce the pressure of "marked-to-market" valuations of banking sector assets.

Strangely enough, we saw that many depositors still did not really value the government's Rp2 billion deposit guarantee program. Many of the depositors still prefer to get higher deposit rates than settling for the maximum guarantee rate set by the Deposit Insurance Company (LPS), making them vulnerable.

The failure of the two smaller banks were not related to the global financial crisis, thus we cannot use that a measure of a bank crisis in Indonesia.

The major concern in the sector is if smaller and medium sized banks cannot cover the negative carry situation (asset yields not sufficient to cover liability costs) and the cost of rising NPLs, which is starting to happen.

How would you assess the government's stimulus package?

Reza: Weak financial systems limit the effectiveness of monetary policy. In Indonesia, Australia and UK, for instance, interest rate policy in recent months had only limited success in generating intended outcomes in the banking sector.

So fiscal policy becomes a very critical counter-cyclical measure. However, the capacity for fiscal expansion depends on the availability of financing and the level of public debt. Finding an appropriate balance between soft (temporary employment, education and health) and hard infrastructure (roads, airports, ports, public housing and railways) projects is necessary for fiscal policy to be effective.

Anton: When we talk about the stimulus package, there are three channels that we have in mind, monetary easing (including the release of bank liquidity and declining key interest rates), declining tax revenues, and rising government spending.

Monetary easing has improved liquidity somewhat, although this has yet to translate into lower lending rates. As for the fiscal stimulus, unfortunately, a big chunk of it cannot really be classified as stimulus.

How can we include the decline of the tax revenues caused by economic downturn (lower economic growth) in the stimulus package. The late approval of the new tax laws which include the cuts in the tax rates and the readjustment of the income tax brackets, can be considered as a blessing in disguise.

The only pure stimulus comes in the form of higher fiscal spending (of around Rp13 trillion). It is just too small compared to the size of the problem; not to mention the usual problem of late spending by the government.

The concern is that a stimulus package requires substantial funding. Where is it coming from? If its government debt, which country has still sufficient room to do this without straining capacity and causing a crowding out effect hurting the private sector?

Reza: Funding from multilateral and major trading partners is critical. During the crisis, borrowing from the central bank is one effective measure to avoid 'crowding out' and to minimize cost.

Close coordination between the Treasury and the Federal Reserve in the US is a good example. In addition to 'cash-support', swap arrangements are also vital in guarding against potential speculative pressures on the local currency.

Anton: The government can give a stimulus by quickly implementing the PPP (public private partnership) infrastructure projects. Just focus on removing all the obstacles of the projects implementation, and you can see the role of the private sector in stimulating the economy, such as in land clearing, additional private financing, etc.

Is there concern about inflationary consequences or is this a mute point, given the weak demand in the economy?

Reza: Sure, inflationary concerns will be the next challenge facing the monetary authorities globally. At this stage, the focus should be on economic recovery, however. Prolonged weak demand and deflationary trends should be avoided at all cost. Beside, inflationary pressure should remain moderate in 2009 and 2010.

Anton: In this kind of recession, I don't think that inflation will matter much.

There is a debate going on about relying more on the local domestic market and diversifying export markets. What are your thoughts on this?

Reza: With the meltdown in global demand, it is understandable that there is a call for a shift to rely more on domestic demand. But the trade sector will continue to be an engine of growth for Asia. Intra-regional trade, production networks and investment in Asia increased tremendously in the last decade.

We have seen the emergence of regional multi-national firms in Asia, including those based in Indonesia, but over 60 percent of their output still targets the US, Europe and Japan (the G3 market).

So the sharing of production and risks has increased among Asian corporations, but the traditional G3 markets will remain dominant in the near future. The emergence of China and India to play a more active leadership role is refreshing.

These countries have also become hubs of production networks among the Asian countries. Efforts by neighboring countries to expand their markets to rapidly growing Middle East economies have also intensified in recent years. Furthermore, commitment on multilateral and bilateral trade and economic cooperation, especially under WTO, is becoming increasingly critical at this stage.

Anton: Indonesia was helped by its own weaknesses in this global financial crisis. Exports are not (traditionally) as high as for neighboring countries, and we are not yet heavily involved in the Asian production networks.

Looking forward, I think we need to do everything simultaneously. The local market is important, while the external market is also important. There is also a trend towards relying less and less on the US as our main export market.

Soldiers' protest: Disobedience to the chain of command

Jakarta Post - May 1, 2009

Imanuddin Razak, Jakarta – A violent protest by soldiers of the Army's 751st Infantry Battalion in Sentani, Jayapura regency, Papua province, on Wednesday was unusual in a military, which rigidly imposes total obedience to the institution's structural chain of command.

It is perhaps the first of such incidents within the Indonesian Military (TNI) since its establishment in 1945. The question is: Why did the soldiers rebel against their commander? Was it just because of the commander's poor leadership? How can the military tame the rebellious province when soldiers themselves act rebelliously?

The soldiers not only disregarded their commanders' order to stop their protest, but also destroyed the infrastructure within the battalion's compound and injured the battalion's deputy commander. Worse, they also ran after journalists attempting to cover the incident and raided the houses of residents neighboring the battalion's compound.

The soldiers' acts were a violation of three of the main guidelines on soldier's behavior and conduct – the Sapta Marga (Soldiers' Commitment), the Sumpah Prajurit (Soldiers' Oath) and the eight-point Wajib TNI (Soldiers' Obligations) – which require soldiers to fully comply with orders from the chain of command, obliging them to maintain the good image of the Indonesian Military (TNI) and a reputation for respect and politeness towards the Indonesian people.

The Army quickly responded to the incident; Army Chief of Staff Gen. Agustadi Sasongko Purnomo announced Thursday that Battalion Commander Lt. Col. Lambok Siahaan has been removed from his position. Disciplinary and administrative sanctions have been imposed on the soldiers that protested.

Earlier on Wednesday, TNI spokesman Air Vice Marshal Sagom Tamboen said the TNI/Army headquarters would thoroughly investigate the case and impose sanctions, including possible termination from active military service, on whoever was involved in the incident. However, it would be unwise if the blame were put solely on the soldiers joining the protest as they might have had some degree of justification – despite their actions being against the law and TNI regulations – in staging it.

Most of the national media have reported that the incident was triggered by the soldiers' disappointment on a decision made by the battalion commander, who had collected money from them to cover air transportation and funeral expenditure for their colleague, a private, who had died of an illness.

Common sense says, however, that it was naive for the soldiers – nearly all of the 1,000-strong battalion – to riot simply over their disappointment at their commander's decision to collect the money for the private's transportation and funeral expenditure. Some media have quoted one of the protesting soldiers as saying that the soldiers' anger was sparked by the commander's frequent skimming of money from the soldiers' allowances.

Tension often rises among soldiers stationed in problematic places for a long time. They depend totally on their salary. Since the fall of Soeharto in 1998, police assumed the responsibility for domestic security and it has become much more difficult for soldiers to earn extra income.

For the sake of the nation the incident in Sentani must be the first and last of its kind. What will happen to our nation if the military, which is supposed to be responsible for helping the police maintain security and order in the country (aside from defending the country), is becomes responsible for instability and disorder?

The army was justified in its decision to immediately impose sanctions on the offending soldiers and dismiss the commander of the battalion, as he was probably the person most responsible for the debacle.

However, the actions were taken too late. A systematic mechanism to prevent such an incident from recurring must be put in place. It should include the promotion of a modern military leadership and management system throughout the TNI. The welfare of TNI soldiers also must be improved, as the lack of this is what prompted the Sentani incident.