Michael McDermott – TeleSUR spoke to Benny Wenda, an exiled West Papuan leader who explained his people's ongoing struggle for independence against Indonesia and their plans for the future.

While today marks Papua New Guinea's Independence from Australia, West Papua, a province on the same island continues its struggle for for self-governance in one of the least publicized and longest-running independence struggles in the world.

West Papuans won their independence from Dutch Colonialism in 1963 and was annexed by Indonesia in 1969 as part of a controversial referendum.

That has led to decades of tension between Indonesia, and West Papuans, who say the relationship is a neo-colonial, and fraught with violence, economic exploitation, and injustice.

Violence and repression

"Indonesia is able to massacre my people. Almost 500, 000 men and women have been killed. While I'm speaking there are arrests and intimidations and imprisonments still going on in West Papua," said Benny Wenda, an exiled West Papuan Indigenous leader. That figure is consistent with human rights organizations' estimates.

Wenda said West Papuans essentially live in an apartheid, or a political system reminiscent of Jim Crow in the U.S. deep South. Without freedom of assembly, for instance, West Papuans cannot legally protest and organize social movements, Wenda said, and as a result, Indonesia currently detains 54 West Papuans as political prisoners. In the last three years, 27 activists had been killed, nearly half this year alone.

Wenda also mentioned Indonesian forces targeting and killing young West Papuan high school boys, almost as a preemptive strike.

"They (the protestors) just sacrifice their lives, just peacefully marching. But Indonesia, they don't like it peacefully, they want violence... Still today, Indonesia gets away with impunity."

Wenda said that countries with their own history of racial strife – most notably the U.S. Australia and New Zealand – helped to train some of the anti-terrorist forces that have killed a number of activists.

Media blackout

Wenda said that West Papua's struggle remained largely unknown because "for the last 50 years we have been fighting with the Indonesian government to gain our freedom, but for 50 years Indonesia has been able to ban journalists."

Journalists from the BBC and ABC Australia could only get into West Papua if they went undercover, despite Indonesia's assertion that "'we allow journalists in.'

International aid organisations such as the Red Cross and the International Peace Brigade have also been banned in the province by Indonesian authorities, said Wenda. Instead West Papuans have increasingly turned to social media to portray their struggle to the world.

From Sep. 30 to Oct. 30, "Rockin' for West Papua" will take place across Australia and the other parts of the world. Wenda said the musical event offers the movement "a weapon" to help fight Indonesian rule, "because in all parts of the world music is powerful, it can change opinions and through the music people can be inspired."

The future fight for independence

West Papua independence leaders have been continually gaining support and solidarity from other nations in the region to advance the fight. "Currently our focus is targeting the pacific countries... We hope we can do our best to mobilise globally," Wenda said

The Pacific Coalition on West Papua, was established in July and features representatives from the governments of the Solomon Islands, Vanuatu, Tuvalu and Nauru. The Melanesian Spearhead Group has also given their support to West Papua and to a lesser extent the Pacific Island Forum.

Wenda said that he and West Papua representatives planned to travel to the United Nations general assembly later this month to raise the issue of independence.

"I am really confident that people in the Pacific – – particularly across the Micronesia, Polynesia and Melanesia – – the governments and the ordinary people are in support, including New Zealand and Australia. Ordinary people are always with us," said Wenda, referencing those two countries' support of Timor-Leste in its independence from Indonesia in 2002.

Wenda said that the West Papua fight had many things in common with other regional independence movements such as Guam and New Caledonia and even the struggles against oppression in Palestine and Western Sahara.

"I think that it is a common struggle with the same sentiment, I hope that people out there, you know the good hearted people, we need their support because this fight is a part of humanity."

Source: http://www.telesurtv.net/english/opinion/West-Papuas-Forgotten-Struggle-for-Independence-20160915-0018.html

Pacific leaders resolve for Papua to be taken up at UN

Radio New Zealand International - September 15, 2016

The Vanuatu prime minister Charlot Salwai says that Forum leaders at last week's summit in the Federated States of Micronesia reached consensus on reports of alleged human rights violations committed by Indonesia in Papua.

According to the Vanuatu Daily Post, this includes the Forum bringing the allegations to the table with Indonesia, and taking up the case at the UN Human Rights Committee.

This comes after the Forum abandoned last year's plan to have a fact-finding mission to Indonesia's Papua region, after Jakarta opposed the idea.

Despite West Papua self-determination and human rights abuses being billed as a leading item for the Forum leaders agenda last week, the summit's resulting communique was light on substance about Papua.

"Leaders recognised the political sensitivities of the issue of West Papua (Papua) and agreed the issue of alleged human rights violations in West Papua (Papua) should remain on their agenda," it read.

The leaders reportedly agreed on the importance of an open and constructive dialogue with Indonesia on the issue.

However the regional response about Papua is increasingly directed at the UN, rather than the Forum which Mr Salwai concedes has very few member states supporting the call for West Papuan self-determination.

He said the five Forum countries who do support it, believe that if there are human rights violations there, it is because of West Papuans' political aspirations.

Mr Salwai said the Forum resolved for these countries to take up the case at the UN Decolonisation Committee and he is going to raise the issue of alleged human rights abuses in West Papua at this month's UN General Assembly in New York.

Source: http://www.radionz.co.nz/international/pacific-news/313397/pacific-leaders-resolve-for-papua-to-be-taken-up-at-un

Leaders independence at Forum questioned

Radio New Zealand International - September 14, 2016

Civil society groups are questioning the independence of island leaders in the Pacific Islands Forum while Australia and New Zealand are at the table.

This comes after what the Pacific Islands Association of NGOs described some outcomes from last week's leaders summit in the Federated States of Micronesia as disappointing.

Its executive director Emele Duituturaga was in Pohnpei and she said the passion and enthusiasm Pacific leaders had for some issues were not reflected in the final communique.

"Well on particular issues like West Papua there is definitely a limitation. We know this because we were on the ground, we were talking to leaders there was a draft text that got watered down. So we do question the extent to which our leaders can be bold and courageous in the presence of our geo-political neighbours like Australia and New Zealand."

Source: http://www.radionz.co.nz/international/pacific-news/313314/leaders-independence-at-forum-questioned

Police, TNI, in pursuit of killer of teacher in Papua

Jakarta Post - September 14, 2016

Marguerite Afra Sapiie, Jakarta – The National Police are stepping up the hunt for the gunman in a mysterious shooting that left a teacher dead in Mulia district, Puncak Jaya, Papua on Monday.

"We're paying [the case] special attention and our personnel remain on alert. There are at least three Mobile Brigade [Brimob] battalions deployed to secure the area," deputy National Police chief Comr. Gen. Syafruddin said on Tuesday.

The National Police will coordinate with Indonesian Military (TNI) personnel to maintain security, he added.

The unidentified assailant shot dead 27-year-old Ezra Patatang, a contract teacher at an elementary school in Mulia district at 6.30 p.m. on Monday, as he moonlighted as an ojek (motorcycle taxi) driver in Karubate village.

A preliminary investigation suggested that Ezra, whose body was found 10 meters from his motorcycle, was shot at close range, Papua Police chief Insp. Gen. Paulus Waterpauw said. Police have sent his body back to his hometown in Masamba, South Sulawesi. (rin)

Source: http://www.thejakartapost.com/news/2016/09/14/police-tni-in-pursuit-of-killer-of-teacher-in-papua.html

Police up security in Papua, hunt down teacher shooter

Jakarta Post - September 14, 2016

Nethy Dharma Somba, Jayapura – Police in Papua have increased security measures by sending two special teams to Puncak Jaya regency following the fatal shooting of a teacher in the regency's Mulia district.

Papua Police chief Insp. Gen. Paulus Waterpauw said Tuesday that the special teams would help local police and Indonesian Military (TNI) personnel in Puncak Jaya to hunt down the perpetrators.

"We will hunt down and arrest the perpetrators who committed the barbaric and inhumane act of shooting and killing a teacher who taught children everyday to become smart," Waterpauw said at Sentani Airport in Jayapura while seeing off the special teams.

Ezra Patatang, 27, who had taught Catholicism for two years at the SDN Kulirik elementary school in Mulia, Puncak Jaya, was shot and killed by unidentified persons in Karubate village, Mulia district on Aug. 12 at around 6:30 p.m. local time.

Aside from having served as a non-permanent teacher at the school, Ezra also drove an ojek motorcycle taxi after teaching. He was also the OMK Catholic Youth leader of the Illaga parish in Mulia.

"That afternoon, he was carrying a passenger from Kota Baru to Kota Lama, where his house is also located. He was then found dead with gunshot wounds," said Markus Tandiayu, a fellow teacher and deputy chairman of the Toraja Family Association's Puncak Jaya chapter.

In Mulia, Ezra lived with his sister Resty Patatang who is also a teacher. "Three months ago, before traveling to Jayapura to teach, I told him to teach the children well and watch the church, and it was the last time I saw my brother," Resty said when met at Sentani Airport in Jayapura.

She recalled that people in her community welcomed her brother and he was often called by his profession as a teacher rather than by his name.

"But why was he killed like this?" she said. Ezra had worked as a temporary teacher in Mulia for the past two years.

Markus expressed hope that authorities would soon capture the perpetrators, adding that as an innocent person who served as an assistant teacher, Ezra should not have been killed. "Ezra served as a teacher to teach children to be able to read and write. He had a noble duty, but shouldn't have been killed," he said.

Based on the crime scene investigation, the bullet hit Ezra at point-blank range on his right temple before piercing through to the back of his head. "When the victim was found, he was about 10 meters from his bike. It appeared to be a struggle before he was shot," said Waterpauw.

Ezra's body was flown on a small plane from Mulia to Sentani Airport where his body was then flown to Makassar, South Sulawesi, on a Batik Air flight, before finally being brought to his hometown of Masamba in Luwuk regency.

All transportation costs were covered by the Puncak Jaya regency administration. "Transportation costs for the body and for the nine family members who accompanied the body have been covered by the Puncak Jaya regency administration," said Markus.

Source: http://www.thejakartapost.com/news/2016/09/14/police-security-papua-hunt-down-teacher-shooter.html

Teacher mysteriously shot dead in Papua

Jakarta Globe - September 13, 2016

Jakarta – 27-year-old teacher Yuni Yesra Patatang was shot dead in Karubate village in the Mulia subdistrict, Puncak Jaya, Papua, on Monday (12/09).

Around 6.30 p.m, Yuni, an honorary teacher at Kulirik state-elementary school, was found dead on a street with two gunshot wounds to her neck and back.

Puncak Jaya Police chief Pol. Supt. Hotman Batubara told Antara news agency that Yuni's body will be sent to her hometown in Tana Toraja, South Sulawesi, on a commercial flight operated by Trigana Air.

The teacher was also working part-time as a motorcycle taxi driver. The police are still investigating the case.

Source: http://jakartaglobe.beritasatu.com/news/teacher-mysteriously-shot-dead-papua/

Forum called out for hollow talk on Papua

Radio New Zealand International - September 13, 2016

Pacific Islands Forum leaders have been accused of hollow talk about listening to the people of the region on important issues like West Papua.

Following last week's Forum leaders summit in Pohnpei, regional civil society groups have voiced disappointment at what they see as a lack of any outcome or substance on the issue of West Papua.

Papua had been one of the big regional issues identified by the Forum secretary-general Dame Meg Taylor as being on the leaders' agenda, ahead of the summit.

However in the end, leaders merely concluded that the issue of alleged human rights violations in West Papua should remain on their agenda.

Furthermore, after the resolution of last year's Forum summit to urge Jakarta to allow a fact-finding mission to West Papua, the matter appears to have dropped off the table.

Dame Meg confirmed in Pohnpei that Indonesian sensitivity over the term "fact-finding" in relation to Papua meant that it would not accept such a mission.

But she said concerns about human rights abuses and the self-determination struggle in West Papua ran deeply in the Pacific and demanded focus from the leaders.

Before the summit, Pacific civil society groups voiced satisfaction with what they called the improved engagement they were being accorded by the Pacific Island Forum.

They identified West Papua as among the key issues needing the Forum's attention and development of meaningful policy discussions.

Taking stock of the Pohnpei summit, Joe Collins of the Australia West Papua Association said that while it was encouraging that Papua was mentioned in the communique, there was no specific action taken.

"There's no doubt there's a huge groundswell of support from the people, civil society organisations and church groups in support of West Papua," he said.

"And for all the talk about (the Forum) being inclusive and listening to the people, the fact that it's not really on the agenda that much would indicate that the leaders are not really listening to the people."

Source: http://www.radionz.co.nz/international/pacific-news/313238/forum-called-out-for-hollow-talk-on-papua

Melanesians' support for West Papua strong – Natuman

Radio New Zealand International - September 12, 2016

Vanuatu's deputy prime minister says the strong support for West Papuans among the people of Melanesia should eventually translate to a co-ordinated regional response.

Joe Nathan admits there are differences of approach on Papua among member governments of the Melanesian Spearhead Group about the bid for full membership by the United Liberation Movement for West Papua.

Mr Natuman said there's been a lot of lobbying of members by Indonesia's government, with announcements of assistance to regional governments. But he said people in Melanesia are firmly in support for helping Papua.

"The population in Melanesia, so far they have been very vocal. Before it was only Vanuatu, but now Solomons, PNG and Fiji. The Churches are involved, the chiefs are involved, the general populace are involved. And I sure that eventually they'll force their attitude regarding human rights, and self-determination and independence in West Papua."

Mr Nathan conceded that the MSG has been a bit compromised due to is budgetary shortfalls, forcing it seek more funding for its operations but he doesn't think Indonesia's promises of help are genuine.

Source: http://www.radionz.co.nz/international/pacific-news/313117/melanesians'-support-for-west-papua-strong-natuman

Geo-politics at play over Leader's lack of expressed commitment on West Papua

Pina - September 12, 2016

Pacific leaders' lack of expressed commitment to action the case of West Papua at their meeting in Federated States of Micronesia may be due to geo politics says Pacific Islands Association of NGOs (PIANGO) executive director, Emele Duituturaga.

"Generally, the result of the 47th Pacific Islands Forum Leaders meeting as articulated in their communique was a mixed one for civil society," Duituturaga said.

"We are happy that some of the issues we pushed for like the Pacific Framework for the Rights of Persons with Disability, Climate Change and disaster risk management, and coastal fisheries were endorsed by the leaders and reflected in the communique."

"For West Papua – while the human rights violations were mentioned, the push by CSOs to have West Papua raised at the United Nations is not reflected," she said.

On West Papua, the 47th PIF Leaders meeting communique stated that "... Leaders recognised the political sensitivities of the issue of West Papua (Papua) and agreed the issue of alleged human rights violations in West Papua (Papua) should remain on their agenda. Leaders also agreed on the importance of an open and constructive dialogue with Indonesia on the issue..."

"An achievement is the agreement to keep the issue of human rights violations should remain on the leaders agenda. We know that a couple of members had hoped the issue of West Papua would be removed altogether."

"We understand from talking individually to leaders and officials that there were robust discussions by the leaders that was quite encouraging. We also know that the draft text reflected their intention to take West Papua to the UN but when the final communique was released, it had been watered down," Duituturaga said.

"It is obvious that geo politics were at play which brings to question whether in fact our leaders can be bold and courageous in the presence of neighbouring powers like Australia and New Zealand."

She said that the 16 CSO representatives at the TROIKA leader's breakfast dialogue felt successful and promising discussions were held on the issue.

"All those present expressed sentiments that the issue of West Papua – both in terms of human rights violations and self-determination were important. What those leaders at the breakfast articulated was that there are provisions in the UN that needed to be followed and utilised to bring the issue to the UN."

"We are concerned that this promising dynamic in the discussion civil society organisation representatives had with leaders at the breakfast was not present at all in the communique."

"Perhaps there is limited value to just talking to a handful and whether that makes an impact to the final discussions that leaders have at the retreat."

"The Samoan Prime Minister, who is the next PIF Chair had stated at the breakfast meeting that the CSO dialogue needed to take place with all the 16 leaders and not just TROIKA and he will see to that for next year's PIF programme. This result (Communique) seems to confirm that this is really what's needed to be done in order for leaders to commit to taking the issue to the UN."

However, Duituturaga said the Pacific Islands Coalition on West Papua (PICWP), which includes Solomon Islands, Vanuatu, Republic of Marshall Islands, Nauru and Tuvalu and PIANGO, is an avenue which CSOs will tap into to continue to push the West Papua agenda at the UN.

"What is encouraging and positive however, is how PICWP member countries have visibly shown their commitment to take up the issue."

Duituturaga said PIANGO will now work individually with those countries for UN intervention on human rights violations and to push for self-determination for West Papua at the UN General Assembly, the UN Human Rights Council and raise these matters with the UN Secretary General (Piang/Pacnews)

Source: http://www.pina.com.fj/index.php?p=pacnews&m=read&o=126936984557d77a24c733731839b1

Papua authorities under fire for not enforcing liquor ban

UCA News - September 12, 2016

Benny Mawel, Jayapura – An Indonesian bishop has accused local authorities in Papua of ignoring an alcohol ban they introduced earlier this year, saying their inaction has contributed to a spate of deaths linked to the consumption of bootleg liquor.

Papua governor Lukas Enembe as well law enforcement agencies and officials signed an "integrity pact" on March 30 that included prohibiting the production, distribution and sale of alcohol.

However, instead of making crackdowns, some officials are helping supply people with alcohol, according to Bishop John Philip Saklil of Timika. He called for authorities to vigorously enforce the ban they put in place.

His call follows a string of deaths linked to adulterated homemade liquor. One of the most serious cases was in late July when seven young men died after drinking bootleg liquor they bought from a kiosk at a market in nearby Dogiyai district.

Inaction from local government and security personnel, as well as general ignorance about bootleg alcohol contributed to the deaths, according to Bishop Saklil, who added that because of such ignorance, the consumption of alcohol particularly bootleg liquor in his diocese, has become widespread.

"People sell bootleg liquor freely and openly, despite not having permits to sell alcohol," he said.

The bishop claimed security personnel must have some role in supplying and selling liquor since people living in areas they can access but others find difficult to reach have a steady supply of alcohol.

"It's impossible they don't know anything about it," he said, suggesting there was a deliberate policy not to enforce the ban imposed earlier in the year.

"The involvement of military and police in supplying and selling liquor and their reluctance to deal with violators of the ban, resulting in them letting perpetrators of crimes go is valid proof."

He referred to the deaths of the seven young men, saying three out of four people suspected of selling of bootleg liquor in the area avoided arrest, while the other was arrested but released a few hours later.

Papua police chief Inspector General Paulus Waterpauw couldn't be reached for comment on the bishop's allegation.

Peneas Lokbere, an activist with rights group Solidarity for the Victims of Human Rights Violations in Papua, said that the Papuan people would face a serious threat if local governments failed to show their willingness to seriously handle the issue.

"There's a growing number of Papuan people falling victim to liquor. This threat must get serious attention from local governments. Ordinary Papuans themselves should be aware of this," he said.

According to Papua police, 86 people have died, 264 have been seriously injured and 839 injured slightly since 2013 in alcohol-related incidents.

Source: http://www.ucanews.com/news/papua-authorities-under-fire-for-not-enforcing-liquor-ban/77088

West Papua leader optimistic about Forum leaders action

Marianas Variety - September 9, 2016

Giff Johnson, Majuro – A West Papua leader is the most optimistic he has been in years about gaining support from this week's Pacific Islands Forum leaders meeting in Pohnpei, Federated States of Micronesia.

Support for West Papua human rights and self-determination has been building throughout the island region over the past year, said Octovianus Mote, the secretary general of the United Liberation Movement for West Papua, who lives in exile in the United States.

"Last year, the Melanesian Spearhead Group and Tonga were the only ones supporting us," said Mote, who was in Majuro to meet President Hilda Heine and government leaders in advance of the Forum summit that opens Wednesday in Pohnpei. "This year, we have support from Micronesian, Polynesian and Melanesian countries."

Key to his optimism is the strong advocacy of Solomon Islands Prime Minister Manasseh Sogavare, who last year appointed the first government envoy for West Papua and provided government funding for his work.

In his meeting with President Heine, Mote said she "made it clear, the Marshall Islands will support us. For the Marshall Islands, human rights is the main issue."

In the region, there are some Melanesian countries that do not have a clear policy on West Papua's struggle for independence from Indonesia. "But on human rights violations by Indonesia, there is no debate on it," Mote said.

"Human rights violations and the struggle for independence are not different issues. Indonesia is violating West Papua's basic right to self-determination."

Mote believes their case for self-determination will finally get back to the United Nations Decolonization Committee for review. West Papua independence leaders have asked the Forum to support a call to the U.N. to review the case of West Papua.

The fact that Indonesia turned down the Sogavare government's request for its West Papua diplomat to visit Jakarta speaks volumes about Indonesia's attitude toward West Papua, Mote said.

"The aim is to open dialogue, but Jakarta says 'no,'" he said, adding that island nations have been under intense pressure from Jakarta to ignore the West Papua issue. "Indonesia's arrogance is unbelievable," he said.

The blunt truth, said Mote, is that West Papua is facing a policy of genocide by Indonesia, and if West Papua does not get help from the United Nations by 2020, it will be too late. "Indonesia is using sovereignty as a means to slaughter people," Mote said. "Australia says this is an 'internal issue.' No, it is not. Sovereignty is not a reason to slaughter your own people."

Human rights atrocities and genocide policies have been well documented by several human rights reports in recent years. "Even the Indonesian Human Rights Commission admitted crimes against humanity (were committed by Indonesia in West Papua)," he said.

The military has killed hundreds of thousands of civilians by wiping out entire villages in remote areas with targeted military operations, he said. The Jakarta government encourages Indonesians to relocate to West Papua, and the military is paving highways and cutting down forests to make way for new settlements through West Papua.

"West Papua is so rich in natural resources," Mote said. "We see all these people coming in every day to fill up our country. When we try to defend our way of life and our land, we are accused of disrupting the government's development programs."

Despite more than a dozen nations raising concerns about human rights abuses by Indonesia during its Universal Periodic Review before the U.N. Human Rights Council in 2012, "Indonesia just ignores it," he said.

He said access to social media and the Internet has been a turning point for West Papua. "We praise the lord that today we have social media so we can get the word out internationally any time," Mote said. "It is really empowering the movement to free West Papua."

But, he said, if there isn't action in the next four years, it will be too late. "2020 is the end," he said. "By then West Papuans will be less than 25 percent of the population, and we won't be able to elect political leaders."

Mote is hopeful that the Forum summit this week in Pohnpei will support taking the West Papua situation to the United Nations for review. "Last year, the Forum agreed to send a fact finding mission to West Papua, but Indonesia wouldn't allow it," Mote said.

"They said it was 'out of your mandate.' There is no reason for the Forum to ask 'allow us to come in' again. It's time to bring this to the United Nations. That's what we want."

Source: http://www.mvariety.com/regional-news/88993-west-papua-leader-optimistic-about-forum-leaders-action

Military ties

TNI strengthens ties with British military

Jakarta Post - September 13, 2016

Jakarta – The Indonesian Military (TNI) has announced the strengthening of a partnership with the UK military following a bilateral meeting between the two countries at the 2016 Annual Chiefs of Defense Conference (CHOD) in the Philippines.

TNI chief of staff Vice Adm. Didit Herdiawan represented the TNI in the recent bilateral talks with Adm. Sir Philip Jones, the UK's first sea lord and chief of naval staff.

"We consider England as a country that has continuously supported democratic reform in Indonesia since 1998. England is also a country that has a strong role in global politics," Didit said as quoted by kompas.com on Monday.

Didit claimed that military relations between the two states had gone from strength to strength, including an ongoing commitment to an agreement signed by both countries' defense ministers in 2012 in London.

The agreement touches on military education, military training and defense industries. "The meeting provides good momentum particularly [to discuss] regional security threats and is expected to contribute to the already good relationship between the two countries," Didit said.

Source: http://www.thejakartapost.com/news/2016/09/13/national-scene-tni-strengthens-ties-with-british-military.html

Human rights & justice

Wiranto vows to settle historic human rights abuses

Jakarta Post - September 15, 2016

Marguerite Afra Sapiie, Jakarta – Coordinating Political, Legal and Security Affairs Minister Wiranto has vowed to settle serious historic human rights violation cases as mandated by President Joko "Jokowi" Widodo because of public demand.

"I will find the solutions even though people doubt that I will do so," he said on Wednesday

The ministry had continuously conducted efforts to settle the historic abuses in comprehensive and transparent manners, so that the solutions would be fair and nondiscriminatory for all parties, not just benefiting certain groups and resulting in injustice for others, Wiranto said.

"We don't want the settlement of historic human rights abuses to create bad implications for the nation in the future," Wiranto said.

The government has vowed to settle at least six major human rights violations, namely the 1965 communist purge, the 1989 Talangsari incident in Central Lampung, the 2001 and 2003 Wamena and Wasior incidents in Papua, various kidnappings and unresolved shootings in the 1980s, the May 1998 riots and the disappereance of activists, then coordinating political, legal and security affairs minister Luhut Pandjaitan said in March.

The team of the National Symposium in April, a government-sponsored event to seek reconciliation for the 1965 mass killings, has submitted the symposium results and now waits for the government to take further action to resolve the country's dark past.

Wiranto asserted the ministry had invited the National Commission of Human Rights and legal experts to the ministry's meetings to get their input. (bbn)

Source: http://www.thejakartapost.com/news/2016/09/15/wiranto-vows-to-settle-historic-human-rights-abuses.html

Freedom of speech & expression

Activists call on Facebook to support users indicted under draconian ITE law

Solidarity Net - September 14, 2016

Jakarta – On Wednesday September 14 the Social Movement for Democracy (GEMA Demokrasi) called on Facebook to take responsibility for revisions to the 2008 Electronic Information and Transactions (UU ITE). This is because of the many internet and Facebook social media users that have been indicted under the law.

Facebook, as an internet technology company, has the largest number of users in Indonesia with more than 14 percent of the country's 102 internet users using Facebook. The social media company however has never shown any concern for Facebookers who have been indicted under the ITE law.

Yet Facebook and its users are both vulnerable to being indicted under the ITE law. Articles 27, 28 and 29 of the law could also make Facebook liable as the party that provides access to information categorised as cybercrime and as the party that shares posts by users who are charged.

GEMA Demokrasi made the call based on based on a report by the Southeast Asia Freedom of Expression Network (SAFENET) that said since 2008 more than 200 people have been reported to police.

They have been indicted after expressing opinions or sharing their status in the form of written words, photographs or videos that were deemed to have spread pornography, tarnished the reputation of a person, insulted religion or other actions subject to the articles under the ITE law.

In 2016 there were between 6-7 cases each month. The largest number of these cases, 53 percent, that have been reported to police have been postings on Facebook.

GEMA Demokrasi is calling on Facebook to be take responsibility for its users that have been reported to the authorities and that it must urge the Ministry of Communication and Information (Kemkominfo) and the House of Representatives (DPR) Commission I to revise the UU ITE.

SAFENET regional coordinator Damar Juniarto is calling on Facebook not to close its eyes to the problem and just make profits. "I think that it's time for this technology company to be reminded of its social responsibly for the business it's running so that doesn't just reap profits but is also be concerned about human rights that exist within the scope of its performance", asserted Juniarto.

[Translated by James Balowski for the Indoleft News Service. The original title of the report was "Marak Kasus Pelanggaran ITE, Facebook Harus Bertanggung Jawab".]

Source: http://www.solidaritas.net/2016/09/marak-kasus-pelanggaran-ite-facebook.html

Poet the latest victim of notorious ITE law

Jakarta Post - September 9, 2016

Jakarta – A controversial poet who criticized a book on influential literary figures in Indonesia was sentenced to five months in jail on Thursday after a Jakarta district court found him guilty of libel for calling the book's author a "scoundrel" on Facebook.

In a packed room inside the East Jakarta District Court, dozens of people gathered to throw support behind the poet, Saut Situmorang, saying that a legal prosecution for cultural critics would set a bad precedence and seriously endanger freedom of expression.

The panel of judges, presided by Bontor Aruan, found him guilty of violating provisions in the Electric Information and Transaction (ITE) law on online defamation.

"The defendant has been legally and with certainty proven guilty of having transmitted information that contains defamation," Bontor said.

Saut was arrested last year in his house in Yogyakarta following a police report filed by an author, Fatin Hamama, who felt offended by his comment on a Facebook page where he called her a "scoundrel" and a "whore".

The poet said he had no qualms about using expletives against Fatin as he believed that she deserved it for manipulating facts.

Saut has strongly criticized Fatin's book in which she lists the 33 most influential Indonesian literary figures, including Denny JA, who is known more as a political analyst and consultant than a poet. In the book, Denny was on a par with Indonesian literary giants such as Chairil Anwar and Pramoedya Ananta Toer, a claim that offended Saut.

After the court session, Fatin told The Jakarta Post that she was content with the judge's decision, although the sentencing was lesser than what was sought by prosecutors who demanded seven months in jail.

"It doesn't matter how long the sentence is. The most important thing is that he has been proven guilty," said Fatin, who frequently expressed that her dignity as a woman was dishonored following Saut's Facebook comment.

A member of Saut's legal team, Asri Vidya Dewi, said that criticism should be responded to with criticism, as there was a consensual agreement between men of letters called Licensia Poetica, which gave writers wide-ranging freedom in articulating words to express ideas.

"She has been invited for a discussion three times by different universities. Those invitations should have become a chance for them to defend their opinions," she said after the court session finished.

Program manager of Satu Dunia (OneWorld-Indonesia), Anwari Natari recently told the Post that the prevailing law posed a serious threat because it provides people with a false sense of security.

"When we have become accustomed to democracy's freedom of expression, this law pops up in contrast," he said. (fac)

Source: http://www.thejakartapost.com/news/2016/09/09/poet-latest-victim-notorious-ite-law.html

Political parties & elections

Government to reverse democratic gains

Jakarta Post - September 15, 2016

Haeril Halim and Nurul Fitri Ramadhani, Jakarta – If the government gets its way, voters in the 2019 legislative elections will have little say in deciding who is elected a legislator in the House of Representatives.

In a proposal that will likely be endorsed by the House, the government plans to change the country's voting system from an open-list variant of proportional representation to one that is closer to the closed-list system used by the authoritarian New Order regime.

Under the new plan, hatched by Home Minister Tjahjo Kumolo, a stalwart member of the Indonesian Democratic Party of Struggle (PDI-P), the government will propose to the House what it calls an "open-limited" system, under which political parties will have the authority to determine which of their candidates fill legislative seats in the House, regardless of the votes garnered by the particular candidates.

Under today's open-list system, used in the 2009 and 2014 legislative elections, voters vote for candidates whose names appear on the ballot paper and candidates are elected after meeting the required quota of votes needed to win a seat.

With the open-limited system proposed by the government, voters receive information about the candidates they vote for, but political parties will still have the final say in determining whether the candidates who meet the quota get a seat in the House.

"We expect to bring this proposal to the House in late September. The General Elections Commission [KPU] expects to have a new law on legislative elections by 2017," Tjahjo told reporters.

Political factions at the House have expressed their preference for a closed-list system, but pro-democracy and electoral watchdogs have campaigned for maintaining the current open-list system for the 2019 elections.

Responding to the campaign, the government is offering a compromise by proposing the open-limited system, a kind of middle ground between the closed-list system and the open-list system.

The majority of factions in the House have backed the government's proposal, saying it would be "fair for both political parties and voters".

"[With this proposal], people will still have the right to vote, but parties can choose the members who show their best performance," Johnny G. Platte, deputy chairman of the NasDem Party faction at the House, said.

Hanura Party politician Dadang Rusdiana said the open-limited system could promote fair competition among candidates.

"This doesn't mean we want to sideline people's voting rights, but in a society where most people don't have enough understanding of politics and one that is also prone to money politics, this system will allow us to punish those who are involved in corrupt practices," Dadang said.

The country applied a closed-list voting system in the 1999 and 2004 legislative elections, but the Constitutional Court scrapped the rule in 2008, responding to a judicial review filed by politicians from the PDI-P and the Democratic Party, both of which claimed the system was undemocratic.

The two largest political factions at the House, the PDI-P and the Golkar Party, meanwhile, said they could accept a more radical proposal and support a wholesale return to the closed-list system.

"The open-list system is not effective because it's too costly and the party politicians chosen by voters are not always qualified. The closed-list system is the best. We only need to force the parties to have a clean and transparent recruitment process," PDI-P legislator Arteria Dahlan said.

Tjahjo said another advantage of the open-limited system is that parties have the authority to replace members who engage in vote-buying during elections. "It's open because people know who they vote for, but it is semi-closed because authority now rests with political parties," Tjahjo said.

Chusnul Mariyah, a political expert from University of Indonesia who served as a KPU commissioner during the 2001 to 2007 period, said the open-limited voting system proposed by the government could potentially create chaos within political parties. "There should be a rule regulating who gets a seat; otherwise the arbitrary nature of it all will create chaos," she said. Source: http://www.thejakartapost.com/news/2016/09/15/govt-to-reverse-democratic-gains.html

House pushes for convicts to run in regional elections

Jakarta Post - September 14, 2016

Nurul Fitri Ramadhani, Haeril Halim and Margareth S. Aritonang, Jakarta – Faith in Indonesian democracy could be further undermined by a House of Representatives plan to allow crooked politicians run in local elections, analysts have warned. The House has agreed to propose a regulation (PKPU) that will allow candidates convicted of minor crimes and serving probation to run in the upcoming concurrent regional elections in February.

It is feared the planned regulation will deal another blow to the existing electoral system, which already allows crime suspects and ex-convicts to run for membership of legislatures or as regional heads.

After weeks of debate, a meeting involving the House, the General Elections Commission (KPU), Election Supervisory Agency (Bawaslu) and the government, came to the unexpected conclusion to permit convicts on probation for minor crimes to run in the elections. The regulation does not include those who have been sentenced to jail terms.

Most factions at the House, with the Golkar Party as the most outspoken in favor, argued that convicts on probation had committed minor offenses or had done so inadvertently and so deserved the chance to run as candidates.

Election watchdogs have condemned the decision as subverting the integrity of regional elections as it would open the door for problematic candidates who have criminal records to become regional leaders.

"There is a possibility that voters will vote for problematic candidates, especially if the candidates portray themselves as victims who have been criminalized by law enforcement," said Titi Anggraini, executive director of election watchdog the Association for Elections and Democracy (Perludem).

The decision also appears to contravene Article 7 of the Regional Elections Law, which stipulates that candidates should never have been convicted.

Analyst Phillips Vermonte questioned the legislative decision to allow convicts to run in regional elections. The head of the Centre for Strategic and International Studies (CSIS) argued that such a decision tainted the core principle of democratic elections.

"We hold elections in order to elect leaders to protect the people from unconstitutional acts. Allowing convicts to run in elections defeats this purpose. How can we expect a convict to uphold the law?" said Phillips.

The KPU is unlikely to be able to reject the House's proposal since Article 9 of the law requires it to consult with the House and the government when arranging technical guidelines for elections and the decisions made in consultation meetings are binding.

KPU commissioner Hadar Nafis Gumay said that in the decision-making for the PKPU, the commissioner no longer had the final say, he could only express opinions. In practice, it is the House that has the power whether to agree or disagree with the regulation. "If the hearing decides that, it doesn't mean we agree with it, but now we can only follow the PKPU as drafted because the results of the consultation are binding on us," Hadar said.

Separately, Home Minister Tjahjo Kumolo insisted that the government would stick to its commitment to create trusted and clean regional leaders. "In principal, the government will follow the KPU. It's common to have a full debate with the legislative body. The House only gave advice on how the regulation should treat those convicted of minor or unintentional violations," Tjahjo said.

Source: http://www.thejakartapost.com/news/2016/09/14/house-pushes-convicts-run-regional-elections.html

Large coalition weakens checks and balances: Expert

Jakarta Post - September 14, 2016

Jakarta – A political expert has warned a large coalition supporting President Joko "Jokowi" Widodo's administration will weaken the system of checks and balances within the government as political parties in such a coalition tend to neglect public concerns and instead fight for the sake of their own interests.

"The presence of opposition parties is needed to ensure the system of checks and balances in the current government runs well," Centre for Strategic and International Studies (CSIS) executive director Philips J. Vermonte said on Tuesday.

He made the statement in response to the result of a recent CSIS survey that found 71 percent of 1,000 respondents believed Jokowi would be able to manage his supporting coalition, specifically after Indonesia's second-biggest party, the Golkar Party, and the National Mandate Party (PAN) decided to support the government.

With Golkar and PAN's support, Jokowi has stronger support at the House of Representatives, with 386 out of 560 lawmakers standing behind him.

The survey also found that, however, 51.4 percent of respondents believed House lawmakers had not monitored the implementation of the legislation properly, although 56.2 percent of those surveyed said the House had done a good job in creating laws.

Golkar lawmaker Nurul Arifin said although her party had joined Jokowi's supporting coalition; it would not hesitate to criticize the government if necessary. "We will remain critical but of course we will deliver criticism through a proper channel," she said. (wnd/ebf)

Source: http://www.thejakartapost.com/news/2016/09/14/large-coalition-weakens-checks-and-balances-expert.html

Minor crimes do not disqualify regional election candidates: House Commission II

Jakarta Globe - September 13, 2016

Jakarta – House of Representatives Commission II, the General Elections Commission, or KPU, and the government have agreed that persons who were convicted of minor crimes will be allowed to participate in regional elections, as long as they were not sentenced to terms of imprisonment.

"Someone guilty of minor crimes, who was not sentenced to jail, may participate [in regional elections]," Rambe Kamarulzaman, chairman of Commission II, which oversees home affairs, said on Tuesday (13/09).

Rambe gave the example of traffic violations, which are considered minor offenses. He said members of the commission were unanimous in their decision and there was no need for the issue to be discussed by the general assembly, as it was not a new law.

"The decision is binding. Everything is in accordance with the regulations. We might have had different opinions, but this decision was reached after deliberations," Rambe said.

Source: http://jakartaglobe.beritasatu.com/news/minor-crimes-not-disqualify-regional-election-candidates-house-commission-ii/

Surveys & opinion polls

Jokowi remains very popular: CSIS

Jakarta Post - September 14, 2016

Margareth S. Aritonang, Jakarta – Despite public outcry and criticism of some of his policies, President Joko "Jokowi" Widodo has maintained a high approval rating, a public opinion survey has found.

In recent months, Jokowi has been under fire for some controversies including the recent fiasco over the citizenship of Arcandra Tahar, the former energy and mineral resources minister. Jokowi's tax amnesty program has also been under scrutiny.

But all of this has not apparently impacted Jokowi's popularity or his perceived acceptability. A recent study by the Jakarta-based Centre for Strategic and International Studies (CSIS) found that a majority of Indonesians approve of him and his performance in government.

Of the 1,000 respondents that the CSIS interviewed for the survey, 66.5 percent said they were satisfied with the work of Jokowi's administration. The survey recorded an 10.1 percent increase in popularity from what the administration achieved last year.

The study found that Jokowi's strongest approval rating came from male respondents who resided in villages across Java. According to the study, his supporters are mostly less educated and come from low-income groups.

They attribute their confidence in Jokowi's administration to improvements in four sectors – the economy, law, politics and the maritime sector. Among these sectors, the administration's economic performance was deemed the most lacking although respondents expressed confidence in the government's commitment to improving the country's economy.

CSIS researcher Arya Fernandes said the high approval rating was due to Jokowi's priority programs to provide accessible health and education through the Health Care and Social Security Agency (BPJS Kesehatan), the Workers Social Security Agency (BPJS Ketenagakerjaan), the Indonesia Health Card (Kartu Indonesia Sehat), the Indonesia Smart Card (KIP) and the Prosperous Family Card (KKS).

"The majority of the people regard these services as beneficial to them," Arya said on Tuesday.

The CSIS conducted the study from Aug. 8 to Aug. 15, not long after Jokowi announced his second Cabinet reshuffle. The study found that public confidence in Jokowi's ability to consolidate political support had also grown after two years of running the country. A majority, 56.8 percent of respondents, perceived more harmonious relations between the executive and legislative bodies.

They are confident that Jokowi can successfully manage the big political coalition that currently supports his administration following the inclusion of the Golkar Party and the National Mandate Party (PAN).

With the Golkar Party and PAN joining with the government, there are 386 out of 560 legislative votes now guaranteed for Jokowi's programs, with 113 opposition votes for the Gerindra Party and the Prosperous Justice Party and 61 "undecided" votes belonging to the Democratic Party, which claims itself to be neutral.

The large legislative support given to Jokowi appears to be a positive thing for some but not for Phillips Vermonte, head of the CSIS, who says it could potentially negate people's voices. "We don't see an effective legislative body that checks the work of the government," he said. "The government will be uncontrollable."

Commenting on the study, Golkar politician Nurul Arifin said the party was long aware of Jokowi's popularity, which motivated the party to nominate him for the 2019 presidential election.

"We have been to more than 50 regencies throughout the country and we can see the massive support from the locals for Jokowi as reflected in the study," Nurul said. "It is clear where the support for Jokowi comes from. Thus, we will focus on nurturing these voters because they are the true voters despite criticisms of the government".

Source: http://www.thejakartapost.com/news/2016/09/14/jokowi-remains-very-popular-csis.html

Environment & natural disasters

Indonesian Islamic Council issues fatwa on forest fires

Reuters - September 15, 2016

Jakarta – Indonesia's highest Islamic council has issued a fatwa on burning land and forests, a government official said on Wednesday (14/09), in an effort to halt the toxic smog that blankets the region each year.

The fatwa is not legally binding but is aimed at discouraging plantation companies and farmers from clearing land using slash-and-burn methods in Southeast Asia's biggest economy.

"There was a meeting between the environment minister and the Indonesian Clerics' Council, which issued fatwa no 30/2016 about forest and land burning law," said ministry spokesman Novrizal Tahar.

"The point is that an act [of burning] that causes environmental damage, according to [the council] decision, is illegitimate."

The council was not immediately available for comment and it was unclear why it had waited so long to make the ruling.

Every year, Indonesia faces criticism from its neighbors Singapore and Malaysia over the smog, euphemistically known as "haze", and its failure to stop the fires from being lit.

Last year's fires were among the worst in the region's history, with billions of dollars worth of environmental damage, weeks of flight and school disruptions and thousands suffering from respiratory disease.

Source: http://jakartaglobe.beritasatu.com/news/indonesian-islamic-council-issues-fatwa-forest-fires/

Activists demand seized timber to rebuild infrastructure

Jakarta Post - September 15, 2016

Hans Nicholas Jong, Jakarta – In June, when flooding and landslides devastated cities in Central Java, including Banjarnegara, renowned University of Indonesia sociologist and lecturer Imam B. Prasodjo said he felt the need to act to help the victims.

Imam asked permission to use illegally logged teak, kept at the Central Java Natural Resources Conservation Agency (BKSDA), to rebuild houses and schools in the affected regions.

"I asked for 409.33 cubic meters of timber to build schools and houses destroyed by the landslide in Banjarnegara. The victims reached out to me to make this request," he said.

However, his request was denied by the Environment and Forestry Ministry's ecosystem and natural resources conservation directorate general. The ministry argued that Law No. 18/2013 on deforestation prevention and management stipulated that timber from illegal deforestation in conservation forests had to be destroyed, if not being used as courtroom evidence.

This prompted Imam, journalist Andy F. Noya and environmentalist Ully Sigar Rusady to file a judicial review against the 2013 law at the Constitutional Court.

Imam said he believed that Article 41 of the law, which outlined the policy, contradicted Article 33 Item 3 of the 1945 Constitution, which said that "Earth, water and natural resources are controlled by the state and should be utilized for the sake of people's welfare."

He further argued the 2013 law was not currently implemented as the majority of illegal timber sat idly at the conservation agency because the government did not have the budget to destroy it.

"I spoke with the director general who said the ministry does not have the financial resources to destroy the illegally forested timber. Instead, they are paying the maintenance cost. If the timber isn't used as legal evidence nor has it been destroyed, then why don't we use it?"

According to data from the Education Ministry, there were 149,552 elementary and junior high school classrooms damaged in 2015.

Imam asked the court to make it legal for people to use timber from conservation forests for social and educational philanthropic purposes.

On Wednesday, the court held the first hearing of the case during which Imam and his team of lawyers presented their stance on the issue.

After they presented their case, justice Patrialis Akbar said that he appreciated the attempt at judicial review. He agreed that trees should not be wasted as they were blessings from God. "[God] gave us these blessings, why burn them?" he said after citing a Quran article stating that trees are blessings from God.

Chief justice Arief Hidayat said that the plaintiffs should think carefully about the implications of the judicial review, such as the possibilities of hindering ongoing legal cases on deforestation. "If the court process is ongoing the evidence can been used [for other purposes]. This could result in pandemonium," he said.

Source: http://www.thejakartapost.com/news/2016/09/15/activists-demand-seized-timber-rebuild-infrastructure.html

More hot spots recorded in West Kalimantan

Jakarta Post - September 14, 2016

Severianus Endi and Novi Abdi, Pontianak/Balikpapan – The number of hot spots across West Kalimantan province has been growing since early this week with some 400 of them detected on Tuesday, increasing from only 140 the previous day.

Despite the high number of hot spots, thick haze was nevertheless not seen in Pontianak, the provincial capital, or in the surrounding regions, thanks to rain of light to medium capacity that has fallen on the areas for the last three weeks.

Giri Darmono of the Meteorology, Climatology and Geophysics Agency (BMKG) said West Kalimantan never experienced full rainy or dry seasons given its location on the equator.

"The dry season here is called the wet dry because there is always a possibility for rain to fall, like what happened in the last three weeks," Giri said.

As of 6 a.m. on Tuesday, he said, 403 hot spots were detected across the province in eight of its 14 regencies and cities. The highest number of hot spots was detected in Ketapang regency, which had 172, followed by Melawi with 78, Sintang with 57, Sekadau with 42 and others with less than 25.

Giri said haze had not yet affected visibility. Between 4 a.m. and 6 a.m. visibility was recorded at between 2,000 and 3,000 meters and it returned to a normal 10,000 meters after 8 a.m.

The West Kalimantan Disaster Mitigation Agency's (BPBD) emergency and logistics division head, Bosman D. Hutahaean, said four helicopters had been deployed to water bomb the area.

A Casa 212 had been in operation to spread 12,800 kilograms of salt for cloud seeding to help speed up the rains.

"Today water bombings will be conducted over the North Kayong, Ketapang and Sanggau regencies with maximum flight capabilities of three-and-a-half hours," Bosman said.

Of the 14 regencies and cities in West Kalimantan, 10 have declared emergency alert statuses for forest and land fires. Also, as many as 3,500 personnel had been deployed to fight the fires.

Provisional data showed that 600.6 hectares of forest and land had caught on fire throughout 2016 so far. They comprised 509 hectares of land belonging to individuals, 1.6 hectares of plantations and 90 hectares of conservation area.

Separately, National Disaster Mitigation Agency (BNPB) spokesman Sutopo Purwo Nugroho, in his release on Monday, said the source of fires came from land clearing for plantations and agriculture in the Sekadau, Ketapang, Landak and Sanggau regencies.

He said thin haze was also spotted in the Katingan regency in Central Kalimantan.

Meanwhile, light and medium intensity rains helped provinces of East Kalimantan, South Kalimantan and North Kalimantan keep free from smoky haze, allowing residents to enjoy clean air.

"It is very likely that this year will be safe [from haze], but we will always be on alert over potential land and forest fires," said Nunuk Kasiyanto, a volunteer firefighter.

The head of the Balikpapan BMKG, Imam Mashudi, described the continuing rainfall during the dry season that had occurred since early this year as a "wet dry season".

Source: http://www.thejakartapost.com/news/2016/09/14/more-hot-spots-recorded-west-kalimantan.html

Heavy punishment key in fight against illegal wildlife trade: Activist

Jakarta Post - September 10, 2016

Rizal Harahap, Pekanbaru, Riau – Wildlife trade will not come to an end until Indonesia's legal system imposes heavy sentences with a deterrent effect on people who illegally hunt or trade animals, an activist has said.

Osmantri, coordinator of the World Wildlife Fund's (WWF) Wildlife Crime Team in Riau, said tough penalties for wildlife poaching in Indonesia were few and far between, which had led to a rapid loss of species in the country.

Meanwhile, he praised the Rengat District Court, which sentenced two Sumatran tiger skin traders to four years in prison and ordered them to pay Rp 60 million (US$4,572) in fines, in a trial on Friday.

"This is the first illegal tiger skin trading case brought to justice in Riau this year. The court's verdict meets the expectations of many people. It's a great achievement. Hopefully, this will have a deterrent effect on other wildlife crime perpetrators," said Osmantri.

He said few judges imposed heavy sentences for wildlife crimes in Sumatra, especially in Riau. "I hope this can serve as reference for court judges across Indonesia."

In the past, Osmantri said, perpetrators of crimes against protected species in Riau had been sentenced to just one or two years in prison.

Based on WWF Riau data, only eight Sumatran tiger skin trading cases were brought to court so far. Four cases had been handled at the Rengat District Court, three at the Pekanbaru District Court and one at the Tembilahan District Court.

"At the Pekanbaru court, for instance, a wildlife crime suspect, who had sold two sheets of tiger skin was sentenced to less than one year in prison," Osmantri lamented. (ebf).

Source: http://www.thejakartapost.com/news/2016/09/09/heavy-punishment-key-in-fight-against-illegal-wildlife-trade-activist.html

RAPP given slap on wrist for breaking moratorium rule

Jakarta Post - September 10, 2016

Hans Nicholas Jong, Jakarta – The government has given the country's leading pulp and paper company PT Riau Andalan Pulp and Paper (RAPP) a slap on the wrist even though it has violated President Joko "Jokowi" Widodo's peatland moratorium policy.

Jokowi issued the policy in 2015 after massive land and forest fires that claimed the lives of 10 people and caused approximately 500,000 cases of respiratory tract infections.

The President ordered that even with licenses, all peatland was prohibited from being cleared until the Peatland Restoration Agency (BRG) finished mapping the location to see which areas were in protected or production zones. Peatland clearing is a major cause of forest fires.

On Friday, PT RAPP admitted that an operation to convert the peatland into a currently ongoing acacia plantation had occurred on their concession on Padang Island, Meranti Islands regency, Riau.

Despite violating Jokowi's moratorium policy, RAPP president director Tony Wenas claimed that the company's operations in the area was legal because it adhered to the company's working plan (RKU), which had been approved by the Environment and Forestry Ministry in 2013.

"We always follow the rules and all the actions we take are in accordance to the decree that we received from the [ministry]," he said after a closed meeting with the ministry and the BRG in Jakarta. Tony added that the operation to convert the peatland had been ongoing since the end of 2014.

The company disclosed the peatland conversion operation after an impromptu visit on Monday by BRG head Nazir Foead, who discovered the area had freshly been planted with acacia seedlings. Nazir decided to pay the visit after receiving a report about the company planting in the area, which has been disputed over by locals for years.

Since RAPP started its operation in Pulau Padang in 2011, residents have been protesting the company's presence, resulting in the ministry issuing a decree that returns 7,000 hectares of land that were initially in the company's concession area to three villages: Bagan Melibur, Mengkirau and part of Lukit. However, the decree has failed to ease tensions, which are still ongoing.

During the visit, Nazir also discovered that the company had built a canal over 3 kilometers long in the middle of the acacia plantation, suspected to be used to dry out the peatland to make way for the acacia seedlings to grow. Tony said the canals were constructed to save water following forest fires last year, not to dry out the peatland.

BRG's education, participation and partnership division deputy Myrna A. Safitri said the agency could not accept the company's excuses as building a canal was also forbidden in peatland areas.

Despite the violation, the ministry decided to only give a verbal warning to the company. "There's no sanction so far," ministry's secretary-general Bambang Hendroyono said. Nazir said the ministry had only given the verbal warning to the company during their meeting.

For now, the government has ordered RAPP to halt all operations in the area while it continues to investigate the company's claims, as well as to resolve the dispute between the company and locals.

Source: http://www.thejakartapost.com/news/2016/09/10/rapp-given-slap-on-wrist-for-breaking-moratorium-rule.html

Gender & sexual orientation

Lawmaker calls for shutdown of LGBT apps

Jakarta Post - September 15, 2016

Jakarta – Following findings by the National Police that some applications widely used by the lesbian, gay, bisexual and transgender (LGBT) community have been used by pedophiles to prey on the nation's children, a House of Representatives lawmaker has urged the government to take action immediately by shutting the apps down.

"Revelation of the 18 [LGBT-oriented] apps uncovered by the National Police should be followed up by the Communications and Information Ministry by taking immediate action to block them," said legislator Reni Marlinawati as quoted by Antara news agency.

Reni also advised the ministry to take a more proactive role to track down other apps allegedly containing pornographic content and intensify supervision on apps in the market.

"In addition, the ministry and law enforcers should impose stern sanctions on those who use social media for running online-prostitution businesses," she asserted.

The National Police made the claim after discovering that AR, a suspected pimp and pedophile who allegedly sold children for sex, was aggressively using applications to post pornographic pictures of the victims in an attempt to lure male customers.

One of the apps AR used was a mainstream social and dating app called Grindr, which is intended for gays and bisexuals to chat, share photos and meet up. The app makes use of a mobile device's geo-location to allow users to locate other users nearby. (dmr)

Source: http://www.thejakartapost.com/news/2016/09/15/lawmaker-calls-for-shutdown-of-lgbt-apps.html

Government mulls banning LGBT applications after child abuse probe

Jakarta Post - September 10, 2016

Jakarta – In a move that may curtail the rights of the country's lesbian, gay, bisexual and transgender (LGBT) community, the government says it is considering banning applications widely used by the LGBT community following the police's claim they have been used by pedophiles to prey on Indonesian children.

One of the apps AR used was a mainstream social and dating app called Grindr, which is designed for gays and bisexuals to chat, share photos and meet up. The app makes use of mobile devices' geolocation to allow users to locate men nearby.

"AR uses Grindr to make it easier to contact victims or customers. We have asked the Communications and Information Ministry to block 18 applications that could potentially be used for this kind of act," Brig. Gen. Agung Setya, National Police Criminal Investigation Agency (Bareskrim) director, told The Jakarta Post on Friday.

The police and the ministry declined to name the other 17 applications planned to be blocked. However, the ministry explained that these applications were geared not only toward gay people, but also to others in the LGBT community.

Although supporting the government's move to crackdown on pedophiles, pro-LGBT activists said there seemed to be an attempt to confuse LGBTs with pedophiles.

"I think the government's idea to block those applications based on AR's case is not right. Not all gay people who use Grindr can be generalized as pedophiles," Teguh Iman of Suara Kita, a pro-LGBT organization, said.

As someone who is familiar with Grindr, Teguh said the app was merely a social application for gay people to talk to each other and create a community.

Besides, Grindr has strict guidelines. It has terms and conditions in which people cannot simply upload naked pictures. Thus, if the police argue that they want to block it because it contains pornography, they also have to justify their terms of pornography, he added.

"In my opinion, pictures of topless men cannot be categorized as pornography. What's their definition of pornography?" he added.

The government should not tie the LGBT community to acts of violence because it could result in the criminalization of minorities, Arus Pelangi chairperson, Yuli Rustinawati, said.

"I support the government's attempt to uncover online child prostitution syndicates, which is very worrying. But, I don't think blocking LGBT-related applications is a solution to this problem," she said.

She added that pedophiles using Grindr to find their victims could also use applications designed for heterosexual people.

Next week, the Communications and Information Ministry said it would conduct a meeting with the police, the National Commission for Child Protection (KPAI), the Social Affairs Ministry, non-profit organizations and other related stakeholders to discuss the issue.

"We will communicate with all related stakeholders next week. Everything is possible, including blocking those applications because the impact is real," Noor Hida, the head of the ministry's sub-directorate for technology and e-business infrastructure said.

Previously, the Police arrested three suspects in an online child prostitution case. AR was arrested during a police raid in a Bogor hotel, West Java. The other suspect, U, acted as a pimp, while E helped AR recruit children.

AR allegedly stalked victims – mostly children aged between 13 to 21 – on social media or through contact one-to-one, then sold them to men for sex at Rp 1.2 million (US$91.20) to Rp. 1.5 million each. In order to smoothen his plan, he used Facebook and other apps to find customers. (win)

Source: http://www.thejakartapost.com/news/2016/09/10/govt-mulls-banning-lgbt-applications-after-child-abuse-probe.html

Graft & corruption

Top court backs KPK in prosecuting firms

Jakarta Post - September 13, 2016

Haeril Halim, Jakarta – After years of deadlock in prosecuting cases involving corporations, the Corruption Eradication Commission (KPK) now has the confidence to start charging companies for graft after the Supreme Court issued a regulation shielding the antigraft body from any potential legal backlash.

A draft of the regulation has been prepared by both the KPK and the Supreme Court and it is expected that the highest court will sign off on it by the end of September in order for it to come into force by early October.

The KPK has often confronted a dilemma because Law No.20/2001 on Corruption already gives it this authority but the Criminal Code (KUHP) only recognizes people as proper subjects of criminal prosecution, not companies.

Thus, the Supreme Court regulation patches up this legal discrepancy between the law and the KUHP and it will protect the KPK from any lawsuits that question its decision to go after corporations.

The draft regulation covers procedures that the KPK and other law enforcement institutions can take in investigations and in naming suspects and bringing companies to court on corruption charges.

An official from a company will stand trial to represent the company and the sentence will come in the form of fines, not prison sentences, because the subject of the legal process is not a person.

KPK commissioner La Ode Muhammad Syarief said the regulation would also guide judges across the country in how they handle cases related to corruption committed by corporations, adding that it would also guide the KPK in how it seized assets belonging to corporations after a conviction had been attained.

In addition to fines, officials who commit corruption in service of their companies can also receive prison sentences. "[With the regulation] judges will have a shared understanding on how to consider cases [on corporate corruption]," Syarief said.

The KPK has so far only prosecuted company officials who commit corruption with state officials for the benefit of their respective companies. The KPK has not yet charged corporations with corruption.

Around 90 percent of cases at the KPK involve companies. Charging companies and seizing their assets, according to the KPK, will produce a deterrent effect in the future.

A number of companies have been at the center of KPK investigations, but the KPK, prior to the existence of the regulation, has been reluctant to charge them. Some of these companies include the nation's third-largest lender, Bank Central Asia (BCA), giant developers PT Sentul City, Agung Sedayu Group and Agung Podomoro Land, and the Lippo Group, a powerful business conglomerate operating in the country.

Supreme Court justice and spokesman Suhadi confirmed the establishment of the regulation and both parties, the antigraft body and the Supreme Court, expect that the regulation will be implemented by early October after the Supreme Court signs off on it in late September.

"The regulation can also be used in money laundering cases involving corporations," Suhadi said, adding that both officials and companies could be punished at the same time under the regulation.

Suhadi said under the regulation, the KPK could charge a company with corruption after finding strong evidence that the money used to bribe state officials in order to receive a preferred policy came from the company.

"A company can also be charged if it is found that money from corruption offences was funneled to the company and even if the money has already been transformed into assets owned by the company. As for its officials, they can receive prison sentences and the company itself can receive fines as punishment," Suhadi said.

Former Democratic Party treasurer Muhammad Nazaruddin, convicted of graft and money laundering, used around 30 companies to channel state projects worth trillions of rupiah every year between 2005 and 2011 for private gain and to those around him.

Meanwhile, graft and money laundering suspect Tubagus Chaeri Wardana allegedly used around 300 companies to siphon off money from state projects from the office of his sister, former Banten governor Ratu Atut Chosiyah, for years. Ratu has also been convicted for graft. None of the companies used by Nazaruddin and Tubagus were prosecuted in the courts.

Furthermore, BCA also received benefits when former Supreme Audit Agency (BPK) chairman Hadi Poernomo, in his capacity as former director general for taxation between 2002 and 2004, unilaterally approved BCA's request for income-tax leniency, a decision the KPK said had triggered around Rp 2 trillion in losses.

However, a controversial pretrial ruling lifted Hadi's suspect status in May 2015, forcing the KPK to stop an investigation into the BCA case.

Source: http://www.thejakartapost.com/news/2016/09/13/top-court-backs-KPK-in-prosecuting-firms.html

Terrorism & religious extremism

Police, military race to lead terror combat

Jakarta Post - September 13, 2016

Nurul Fitri Ramadhani and Margareth S. Aritonang, Jakarta – The country will still have to wait to have more comprehensive counterterrorism measures because of a tug of war between the country's security and defense bodies over the amendment of the Terrorism Law.

The two institutions, the Indonesian Military (TNI) and the National Police, are competing to win the hearts of lawmakers in order to get more power for themselves in being able to act against terrorism included in the amendments.

Article 43B point 1 of the draft amendment stipulates that the policies and national strategies on counterterrorism are to be implemented by the National Police, the TNI and other relevant institutions, but whether the country needs to empower the TNI to have a role in counterterrorism remains unanswered.

The TNI is seeking direct involvement in counterterrorism, requesting that terrorism no longer be defined as a criminal act, arguing that terrorists are now coordinated in large groups and are run and equipped in military fashion.

Under prevailing law, the country has adopted a criminal justice model that considers an act of terrorism to be a criminal action. Thus it is outside of military jurisdiction and only law enforcement agencies can deal with it directly.

"Terrorism is an extraordinary crime, thus it needs extraordinary measures. Preventive measures are needed, but if it doesn't work, then we need repressive acts," the TNI's chief of general staff, Vice Adm. Didit Herdiawan Ashraf, said recently.

According to the 2004 TNI Law, the force may be involved in non-military operations, including counterterrorism operations, under the President's orders.

The police, meanwhile, defended the status quo by saying that the measures should still be under the jurisdiction of the National Police for the sake of protecting human rights.

"The criminal justice system still works well because all things are subjected to the due process of law, all suspects are brought to the courts. They have the right to defend themselves, so their rights are more guaranteed. We see them as criminal suspects, not political fighters," said National Police chief Gen. Tito Karnavian.

But that does not mean the police are clean when it comes to abuses. The National Commission of Human Rights (Komnas HAM) recorded 121 cases of alleged criminals abused by police officers and tortured to death between 2007 and 2016.

The Democratic Party, led by former president and TNI chief of territorial affairs Gen. (ret) Susilo Bambang Yudhoyono, as well as the Hanura Party, previously led by former TNI commander Gen. (ret) Wiranto, want the TNI to be more dominant instead of only acting in an assistance role.

Hanura Party lawmaker Sarifuddin Sudding was pessimistic that the country could anticipate acts of terrorism if the eradication focused only on law enforcement. "We should combine the elements of the police and the TNI and find a way to unite their responsibilities to make a comprehensive regulation," he said.

Special committee deputy chairman Hanafi Rais from the National Mandate Party (PAN) said that the TNI should not be granted a direct role and should only be able to move under the President's order.

"If the TNI want to be involved, they must act under the President's political decision. We still need to have a deeper discussion about it with the TNI. We don't want to change our criminal justice system [to be a war system]," Hanafi said.

Meanwhile, the NasDem Party suggested that the draft be given back to the government until it could resolve the tug of war between the two institutions.

"Indonesia always has problems about jurisdiction among institutions. It's better for the government resolve the war between the police and the TNI before giving the draft amendment to the House," NasDem lawmaker Akbar Faizal said.

"They can be complementary. Good coordination can solve the problems better," said National Counterterrorism Agency (BNPT) chief Comr. Gen. Suhardi Alius.

Source: http://www.thejakartapost.com/news/2016/09/13/police-military-race-lead-terror-combat.html

Religion & morality

Feminists, Islamic wives testify at MK

Jakarta Post - September 9, 2016

Jakarta – The Indonesian Women's Coalition (KPI) faced off with the Association of Islamic Wives at a Constitutional Court (MK) hearing on Thursday, presenting opposing arguments about whether criminalizing extramarital sex and gay sex will benefit the nation.

The KPI said revising the Criminal Code (KUHP) to criminalize adultery and gay sex would destroy many people's lives.

Dian Kartikasari of the KPI said people's reputations and careers could be ruined just because they engaged in casual sex. Moreover, society would stigmatize them after they were put in jail because of their sexual behavior.

In the opposing camp, the Association of Islamic Wives argued that criminalizing sex outside of marriage was important to protect families.

"Casual sex, whether committed by adults or teenagers, has become a form of sexual violence and terror, undermining the resilience of decent families," Titin Suprihatin, the association's chairwoman said.

She said the KUHP should be changed in line with the religious beliefs acknowledged by the country and moral values embraced by its citizens.

Source: http://www.thejakartapost.com/news/2016/09/09/national-scene-feminists-islamic-wives-testify-mk.html

Land & agrarian conflicts

Plantations get military, police backup

Jakarta Post - September 9, 2016

Hans Nicholas Jong, Jakarta – The involvement of police and military personnel in protecting plantations has come under scrutiny as their role may have become a stumbling block in efforts to curb forest fires.

Not only have security force personnel often been reported to side with companies in land disputes against residents, but the police have also recently terminated investigations into last year's fires in Riau.

The Indonesian Forum for the Environment (Walhi) has called on President Joko "Jokowi" Widodo to evaluate the National Police and the Indonesian Military (TNI) conduct in relation to their support for private businesses, especially those that have violated environmental regulations.

"Corporations always use the state apparatus to ease their business, protect their concessions and evict people. We see this everywhere and we believe the situation is getting worse," Walhi chairwoman Nur "Yaya" Hidayati told The Jakarta Post.

According to her, corporations are becoming more aggressive in resisting law enforcement and investigations into alleged illegal practices because they are backed up by the police and the military.

"We can see corporate power getting stronger. For instance, there have already been two cases of investigators from the Environment and Forestry Ministry being blocked by companies [in the course of investigations]," Yaya said.

The first case happened last year, when members of Walhi's South Sumatra branch along with ministry staff investigated a dispute between local rubber planters and a timber plantation at Bumi Makmur village in Musirawas Regency.

As they reached the location, they saw company staff accompanied by police officers evicting people from their rubber plantations, said Walhi member Hadi Jatmiko.

When the team of investigators asked for the eviction to be halted and invited the company for discussions, company staff and the police abused the team, describing them as agents provocateurs and arrested the four members of the team, who were later beaten, according to Hadi.

Musirawas Police chief Sr. Comr. Nurhadi Handayani admitted that police had secured the location, by request of the plantation company, but denied anyone was beaten.

According to a report from the Agrarian Reform Consortium (KPA), the police and the military have long been involved in agrarian conflicts, often siding with businesses.

In 2015, there were 35 cases of companies committing violence, 21 cases involving the police, 16 involving the military, 10 involving other government institutions, eight cases in which gangs were involved and three cases in which local communities were responsible.

In 2014, police were responsible for most violent agrarian conflicts with 34 cases, followed by local communities with 19, companies with 12, six cases involving gangs and military involvement in five cases.

Nur described this data as ironic given that the police and the military are supposed to protect and defend the people.

TNI spokesman Maj. Gen. Tatang Sulaiman said the military did not allow active military personnel to work for private companies as the monitoring or protection of plantations was not the duty of the military.

"There are many who work for palm oil companies as well as oil and gas companies. But they're no longer active in the military. They resigned from the military because maybe they no longer saw a future in the career," he told the Post.

The forestry ministry's law enforcement director-general, Rasio Ridho Sani, also denied the involvement of police officers or TNI officials in backing up palm oil companies involved in illegally clearing land.

"In the case involving PT APSL [Andika Permata Sawit Lestari], the police worked really well. When we were held hostage, the police protected us and helped us to get away from the area," he said.

Rasio was referring to a hostage incident last week, when seven ministry officials were held hostage and threatened with death by a group of people while investigating a forest fire in Riau. (win)

Source: http://www.thejakartapost.com/news/2016/09/09/plantations-get-military-police-backup.html

Reclamation activists named suspects for insulting flag

Jakarta Post - September 9, 2016

Ni Komang Erviani, Denpasar – The Bali Police have named two activists of the Balinese Forum Against Reclamation (ForBali) suspects for allegedly lowering the Indonesian flag at the Bali Legislative Council office on Aug. 25 during a rally against a planned reclamation project in Benoa Bay.

Police accused the two activists of insulting the Red-and-White. I Gusti Putu Dharmawijaya and I Made Joni were named suspects after they were allegedly involved in a rally that was attended by more than 10,000 people from the Balinese customary community and ForBali activists.

During the rally, the national flag was lowered and the ForBali flag was attached under it. Both the national flag and the ForBali flag were then raised together and all the protesters paid tribute to them.

More than 400 Balinese people from several customary villages across Bali flocked to the Bali Police station in Denpasar Wednesday night, following the arrest of Dharmawijaya. He was taken by the police from his workplace at a hotel in Legian Kuta on Wednesday night.

Wearing simple Balinese attire, the protesters shouted "Rakyat bersatu tak bisa dikalahkan!" (united people cannot be beaten down) and "Tolak reklamasi!" (reject reclamation). They demanded the Bali Police release Dharmawijaya.

After several hours interrogation, police finally released him at about 2:35 a.m. on Thursday. However, police have continued proceeding with the case and have summoned Dharmawijaya for another interrogation on Thursday.

After answering 28 questions from the police and then being allowed to go home, Dharmawijaya said that he was shocked by the arrest. "I was shocked because they took me from my workplace without anyone showing a summons letter," Dharmawijaya.

Dharmawijaya said he admitted that he was at the rally, but said he did not see the incident. ForBali legal team leader, Made Suardana, said the arrest was an attempt to criminalize the actions of reclamation activists.

"The police report was made on Sept. 5 and within only two days, on Sept. 7, police named suspects. We don't know who the witnesses were who had been questioned," he said.

Bali Police chief Insp. Gen. Sugeng Priyanto denied the allegation that the arrests were part of police attempts to criminalize the activities of reclamation activists. "I emphasize that there is no attempt to criminalize them. We do not ban protests as long as they don't disturb public order," Sugeng said.

The police, he added, named the two activists suspects after questioning at least seven witnesses and two legal experts. Among the witnesses were police personnel and the security staff at the Bali Legislative Council office.

"We have questioned seven witness, including legal experts. We also have evidence: the video recording, the memory card and the flag," he added.

He stressed that the rally on Aug. 25 received national media coverage, so he claimed many people were asking the Bali Police to follow up on the case.

"There was a high demand from people to follow up on this case. I predicted that there would be a reaction like this [rally], but the law must be upheld. What the Bali police has done is only for the sake of law enforcement. We have no other agenda," he said.

"Bali is an international tourist destination. Let's keep Bali peaceful, safe and prosperous. Don't do anything that could hurt Bali's image as an international tourist destination," he said.

Police said they will charge the suspects under Articles 24 and 66 of the 2009 Law on the National Flag, Language, State Symbols and National Anthem, which carries a maximum five-year imprisonment or Rp 500 million (US$38,500) in fines upon a conviction.

Source: http://www.thejakartapost.com/news/2016/09/09/reclamation-activists-named-suspects-insulting-flag.html

Regional autonomy & separatism

Over 3,000 regulations cancelled in legal overhaul: Home affairs ministry

Jakarta Globe - September 15, 2016

Jakarta – A plan to reform laws and boost development throughout the regions has seen the government scrap 3,143 regional regulations, Home Affairs Minister Tjahjo Kumolo said Wednesday night (14/09).

"The policy is expected to support the government's efforts to boost regional developments as the key of national economy transformation," Tjahjo said.

Regulations which have been cancelled include those which have slowed down investments, licensing and services which have caused a negative effect on the national economy or conflict with higher laws.

The Home Affairs Ministry has published an additional ministerial decree to cancel some regional regulations for Java and Bali. "Such measures are expected to increase the competitiveness within the current competitive era," Tjahjo said.

Previously, President Joko "Jokowi" instructed the ministry to assess thousands of regional regulations in an effort to simplify the country's bureaucracy and in preparation of increasing international competition.

Source: http://jakartaglobe.beritasatu.com/news/3000-regulations-cancelled-legal-overhaul-home-affairs-ministry/

Jakarta & urban life

Legal, social, environmental problems plague reclamation

Jakarta Post - September 15, 2016

Corry Elyda and Nurul Fitri Ramadhani, Jakarta – The reclamation project in Jakarta Bay, the resumption of which has been approved by the government, will continue to cause controversy with critics saying the project is plagued by a plethora of problems.

The government, which initially imposed a moratorium on the project, has been reckless in ignoring the legal, social and environmental consequences of its decision, an activist has warned.

Jakarta Legal Aid Institute (LBH Jakarta) lawyer Tigor Hutapea, who is assisting residents and activists in their legal challenge to the project, said on Wednesday that Coordinating Maritime Affairs Minister Luhut Pandjaitan's decision to resume the developer-driven project of constructing 17 artificial islets contravened a Jakarta court's ruling on the project's viability.

In June, the Jakarta State Administrative Court (PTUN) ordered Jakarta Governor Basuki "Ahok" Tjahaja Purnama to revoke the permit for construction of Islet G in the form of Gubernatorial Decree No. 223/2014. The court argued that the project violated Law No. 27/2007 on the management of coastal areas and small islands as there was no spatial planning and zoning bylaw for the islet.

Islet G is being built by PT Muara Wisesa Samudra (MWS), the subsidiary of giant developer Agung Podomoro Land (APLN), whose former president director Ariesman Widjaja is in prison for bribery related to the project.

"Luhut will violate the law if he insists on continuing with the project," Tigor said. The minister, however, has argued that the court's ruling is not legally binding as the Jakarta administration has decided to appeal it.

Of the 17 proposed islets, seven acquired permits before the draft bylaw on zoning of coastal areas and small islands was approved by the city council.

Then governor Fauzi Bowo issued permits for islets C, D and E for PT Kapuk Naga Indah (KNI), a subsidiary of Agung Sedayu Group. Meanwhile, Ahok issued the construction permits for Islet G as well as four other islets – F, I, K and H. The bylaw was eventually discussed by the city council in 2015 but it has never been passed.

Ariesman's case was related to this bylaw as APLN sought to purchase the councilors' support during the drafting for a change to the contribution the company should make to the city, from 15 percent to only 5 percent of the value of the reclaimed land.

Councilor Prabowo Soenirman of the Gerindra Party said deliberation of the draft bylaw would be postponed until new councilors were elected in 2019. "We have no intention of discussing the draft bylaw even though the minister wants to resume the project," he said.

Besides Islet G, which was under construction, Islet D and half-built Islet C also violated regulations.

The company has constructed commercial buildings on Islet D without a Building Construction Permit (IMB). It also merged the two islets although they were supposed to be separated by a 200-meter channel.

Agung Sedayu claimed, however, that the merger of both islets was only a technical issue and promised the city administration they would later be separated.

Besides legal issues, the project could potentially damage the environment of Jakarta Bay.

Muslim Muin from the Bandung Institute of Technology (ITB), who earned his doctorate in ocean engineering from the University of Rhode Island, said the islets would create canals effectively extending the flow of rivers into the sea. He said this would increase sedimentation along the coast, which if not dredged would cause flooding.

Environment and Forestry Minister Siti Nurbaya Bakar has previously said the developers need to resolve the problems of sedimentation.

Muslim said the project would also change the characteristics of the water in the mangrove area, which would gradually turn from salt water to fresh.

"It will be difficult for the salt water to enter the mangrove area, and this will kill the plants. We will lose the natural resource of the sea as a result of this project," he said.

Jakarta still has 25 hectares of mangrove forest, which have become a conservation area for many species of animals and vegetations, including 17 endangered bird species.

The project has also affected residents in Lontar village in Serang, Banten, where the sand for the project has been mined.

Many residents, who used to be fishermen, seaweed farmers and milkfish farmers, have been forced to switch jobs as they cannot depend on the sea as a result of the sand mining.

Thousands of traditional fishermen who live in and whose livelihoods depend on Jakarta Bay will also be affected by the project. Luhut has promised the government will take care of 12,000 fishermen who live in Jakarta Bay.

Source: http://www.thejakartapost.com/news/2016/09/15/legal-social-environmental-problems-plague-reclamation.html

Coalitions in disarray as election nears

Jakarta Post - September 15, 2016

Safrin La Batu, Jakarta – As the Jakarta gubernatorial election draws near, political coalitions have started to scramble to form alliances to break a deadlock over potential candidates.

The reluctance of the Indonesian Democratic Party of Struggle (PDI-P), the largest faction in the City Council, to support Basuki "Ahok" Tjahaja Purnama, the incumbent governor, has forced other political parties to recalculate their plans for February's election.

Political parties have begun to prepare for the possibility that Indonesia's ruling party may eventually decide not to support Ahok, who has offered to follow PDI-P demands in order to secure the party's support.

The seven political parties under the Kinship Coalition initially supported businessman Sandiaga Uno, the only apparent candidate to stand against Ahok, the frontrunner in the election. However, the Kinship Coalition is collapsing and some coalition members have declared their support for different candidates.

The three political parties in Ahok's camp, namely the Golkar Party, the NasDem Party and the Hanura Party, are also reportedly in a state of disarray following the rumor that the PDI-P, which previously hinted at backing the governor, was preparing to form a separate camp with the NasDem Party.

The PDI-P and the NasDem Party might possibly support Surabaya Mayor Tri "Risma" Rismaharini, who is also a member of the PDI-P, with Batang Regent Yoyok Riyo Sudibyo as her running mate. But the rumor has been brushed aside by a senior politician at the NasDem Party.

"It's not true. We are supporting Ahok," NasDem Party Jakarta branch chairman Bestari Barus told The Jakarta Post on Wednesday. "We are waiting for the PDI-P to join us in supporting Ahok. We are not making a new camp with the party," he said.

PDI-P politicians have not responded to the Post's request for confirmation. The PDI-P has not issued an official statement about who it will support in the upcoming election, but party chairwoman Megawati Soekarnoputri previously hinted that the party would end up nominating Ahok, with deputy governor and party member Djarot Saiful Hidayat as his potential running mate.

Despite signals that the PDI-P will support Ahok, political analysts have warned that since the party has not made a final word, it could unexpectedly nominate a different candidate.

"The only thing that would guarantee PDI-P support for Ahok is if he were to become a member of the party," Paramadina University political analyst Hendri Satrio told the Post. "Until such a time, all things are possible."

Ahok is not a member of any party. He was once a member of the Gerindra Party but left in 2014. PDI-P politicians previously invited Ahok to register with the party so that he could receive party backing in elections.

Meanwhile, members of the Kinship Coalition have divided into at least three different factions. The Gerindra Party and the Prosperous Justice Party (PKS) are set to nominate Sandiaga.

The United Development Party (PPP) and the National Awakening Party (PKB) say they will support lawyer and former law and human rights minister Yusril Ihza Mahendra.

The National Mandate Party (PAN) has also declared its support for former coordinating maritime affairs minister Rizal Ramli. PAN, however, only has two seats on the City Council, a far cry from the 22 seats required for a party or coalition to nominate a candidate.

The only party in the coalition that has not declared a position is the Democratic Party. The Democratic Party has 10 seats on the City Council. Nachrowi Ramli, the head of the party's Jakarta chapter, could not be reached for comment as of Wednesday night.

Ahok is the clear frontrunner in the election, with some members of the public already predicting that he will easily win the election. However, a recent survey by the Public Opinion and Discussion Group showed that 50 percent of the 400 respondents surveyed said they were not sure whether they would vote for Ahok, suggesting that the election could still be competitive.

Source: http://www.thejakartapost.com/news/2016/09/15/coalitions-disarray-election-nears.html

Government to continue reclamation project despite court ruling

Jakarta Post - September 14, 2016

Callistasia Anggun Wijaya and Ayomi Amindoni, Jakarta – The government has given a green light to the controversial reclamation project of Islet G in Jakarta Bay to resume despite the ruling of the Jakarta State Administrative Court (PTUN) that had ordered a halt to any construction activities on the artificial island.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan and Jakarta Governor Basuki "Ahok" Tjahaja Purnama, along with representatives from the Environment and Forestry Ministry, held a meeting on Tuesday on the reclamation project at the Energy and Mineral Resources Ministry where Luhut serves as an acting minister.

"There was no problem with the PTUN's ruling because it was not yet final and binding," he told journalists on Tuesday after the meeting.

In a court ruling issued on June 31 in favor of local fishermen in Jakarta Bay, the PTUN ordered the developer of Islet G, Muara Wisesa Samudra, a subsidiary of property giant Agung Podomoro Land, to halt its reclamation activities because of the environmental damage and social impacts it was causing, as well as its lack of legal standing. The court also ordered Ahok to revoke the city's permit for the development, issued in December 2014.

Furthermore, Luhut said that the government would make a detailed announcement on the issue on Thursday. Tuesday's meeting had several changes in the schedule. Luhut and Ahok were first scheduled to hold a 1 p.m. meeting, but then postponed it to 5:30 p.m and moved it to Luhut's office before announcing that the meeting was again postponed. The meeting proceeded at 7:30 p.m. and was moved to the Energy and Mineral Resources Ministry office.

Previously in the State Palace, Luhut said the decision was taken after conducting thorough studies on the project. The government would also prioritize the welfare and livelihood of as many as 24,000 local fishermen in Jakarta Bay in accordance with the order of President Joko "Jokowi" Widodo.

"Don't say that we will not take care of the fishermen. We will even provide them [with better facilities] with funds from the local administration and from the reclamation projects," Luhut said at the State Palace prior to his meeting with Ahok, adding that he urged the public not to politicize the issue.

The previous coordinating maritime affairs minister, Rizal Ramli, announced in June that the developer of Islet G had committed gross violations as the construction of the artificial island was taking place on top of underwater electricity cables and in shipping lanes. Thus, the government decided the developer should halt the construction, as it would also contribute to environmental damage and disturb vital strategic projects and ship traffic. (rin)

Source: http://www.thejakartapost.com/news/2016/09/14/govt-to-continue-reclamation-project-despite-court-ruling.html

Sermons get political ahead of election

Jakarta Post - September 14, 2016

Jakarta – In the heat of Jakarta's gubernatorial election in which, for the first time in history, the frontrunner is a Christian and a Chinese-Indonesian, the nation's religious authorities are calling on preachers to shun political talk in their sermons.

A fear of rising sectarianism in the election has emerged after Amien Rais, a senior National Mandate Party (PAN) politician, advised congregants during an Idul Adha prayer in a mosque in North Jakarta not to vote for Jakarta Governor Basuki "Ahok" Tjahaja Purnama, who has topped many political polls of late as the most electable candidate.

Amien reportedly told the congregants to vote for a gubernatorial candidate "who does not have a penchant for evictions, who does not serve the interests of capitalists". The former speaker of the People's Consultative Assembly (MPR) confirmed after the sermon that he was referring to Ahok.

Since taking the post of Jakarta governor in 2014, Ahok has carried out evictions to make way for what he claims are important projects for the city. His controversial policies have ignited protests from human rights activists as well as political attacks from his enemies.

The Indonesian Ulema Council (MUI) has rebuked Amien for introducing politics into his sermon, saying that as a senior politician he should have known better. "That is not good. It could become an issue if people use sermons to attack each other," the MUI said.

Houses of worship and educational institutions are among the places where political campaigning, no matter the form, are prohibited during a campaign season. This tradition is in fact stipulated in a General Elections Commission (KPU) regulation.

Abdul Mukti, the secretary-general of Muhammadiyah, said the organization required all of its members to abide by all regulations and laws in the country. Amien served as a former chairman of Muhammadiyah.

He said if Amien, who was once known as leader of the reform movement, was suspected of violating election regulations, then he should be reported to the Elections Supervisory Agency (Bawaslu).

As the Jakarta gubernatorial election draws near, the political heat generated by the event is believed to have encroached into the religious sphere and Amien's case could be the tip of the iceberg.

Sectarianism was an issue during the 2012 Jakarta gubernatorial election when Ahok ran alongside then Surakarta mayor Joko "Jokowi" Widodo. At the time, dangdut singer-cum-preacher Rhoma Irama called on Muslim voters not to vote for Jokowi, whose mother, he falsely claimed, was a Christian.

He made the statement while delivering a sermon at the Al Isra Mosque in West Jakarta. The incident was reported to the Elections Supervisory Committee (Panwaslu).

Talk about Jakarta's election may have also entered into churches. A video on YouTube shows a woman talking in front of a church congregation, praising Ahok and calling him a future leader. It is unclear where or when the video was taken.

Jeirry Sumampow, a spokesperson for the Indonesian Communion of Churches (PGI), said the organization had called on all its members throughout the country to avoid carrying out political campaigns in churches because this could develop into a very sensitive issue. "Houses of worship are places for [conveying] good morality and not politics," he said.

Some political analysts, however, believe that criticizing political figures, even if the criticisms are conveyed in a house of worship, is fine in a democracy as long as the criticism is aimed at improving existing policies.

"Criticism is fine as long as it does not involve attacking a figure racially," Pelita Harapan University political analyst Emrus Sihombing told The Jakarta Post.

Source: http://www.thejakartapost.com/news/2016/09/14/sermons-get-political-ahead-of-election.html

Ahok tells Amien not to use mosques for political activities

Jakarta Post - September 13, 2016

Jakarta – Jakarta Governor Basuki "Ahok" Tjahaja Purnama has told National Mandate Party (PAN) patron Amien Rais not to use mosques to convey political messages to the public.

"Ask Amien Rais. Has he read a call from the Indonesian Ulema Council (MUI) saying that preaching in mosques should not be used for political purposes?" said Ahok in Jakarta on Tuesday.

Ahok made the statement in response to Amien's Idul Adha's sermon, in which he urged Jakartans not to vote for the governor who had evicted many of the city's poor. Amin delivered his Idul Adha sermon at a hospital mosque in North Jakarta.

"Vote for the governor, who is honest and loves the poor people. Don't vote for a governor who regularly evicts [poor residents] and serves the interest of capitalists," said Amien, who acknowledged after the sermon that he was referring to Ahok.

Chairman of the MUI Ma'ruf Amin previously called on preachers not to use mosques to convey political messages or attack certain political figures.

Ahok also criticized Amien's call for PAN to hold an extraordinary congress if the party supported Ahok, who has been endorsed by the Golkar Party, NasDem Party and Hanura Party for the 2017 gubernatorial election.

With only two seats in the Jakarta Legislative Council, PAN is the smallest party in the capital. "It seems as if Amien is the owner of PAN," Ahok added. (bbn)

Source: http://www.thejakartapost.com/news/2016/09/13/ahok-tells-amien-not-to-use-mosques-for-political-activities.html

Students rally to protest reclamation

Jakarta Post - September 11, 2016

Jakarta – The National Association of University Student Executive Bodies (BEM-SI) conducted a rally in Jakarta on Sunday to protest the resumption of the Jakarta Bay reclamation projects following a decision by the government to proceed with the controversial development plan.

BEM-SI members from University of Indonesia, Jakarta State University, Jakarta State Polytechnic and several others protested at the Hotel Indonesia traffic circle during a car free day event.

The protest was designed to inform people about the Jakarta Bay reclamation projects, said Ihsan Munawar, a representative of BEM-SI.

The students believe the ambitious reclamation projects will not deliver positive results for either the local people living in the surrounding area of the Bay or Jakartans more broadly.

"[The administration] claims that reclamation will expand the economy. The economy for whom? The people or the capitalists? Of course it is for the capitalists," he said as quoted by kompas.com.

Local people, especially fishermen, have complained about the possibility of losing their livelihoods and incomes due to the development of the man-made islets.

The construction of the islets will only benefit the capitalists as they will gain a fortune by constructing buildings on the islets, Ihsan said.

Coordinating Maritime Affairs Minister Luhut Pandjaitan said on Friday the government had decided to allow the reclamation projects to continue, including the halted islet G project.

Luhut argued that based on further evaluation and discussion in his ministry, the projects should proceed. (rin)

Source: http://www.thejakartapost.com/news/2016/09/11/students-rally-to-protest-reclamation.html

Criminal justice & legal system

Indonesia should not rush Mary Jane's execution: Activist

Jakarta Post - September 14, 2016

Jakarta – The Indonesian Migrant Workers Network (JBMI) has called into a question President Joko "Jokowi" Widodo's statement that Indonesia would proceed with its plan to execute Philippine death row inmate Mary Jane Veloso during his bilateral meeting with visiting Philippine President Rodrigo Duterte at the State Palace in Jakarta last Friday.

JBMI Hong Kong-Macau coordinator Sringatin said Jokowi's decision showed his administration's uncompassionate character to the fate of migrant workers falling victim to human trafficking and drug syndicates.

"Mary Jane is a victim, just like dozens of Indonesian female migrant workers who are currently facing the death sentence abroad. Moreover, a legal process to charge a recruiter, who had entrapped her, is still ongoing in the Philippines. Will the Indonesian government execute a victim who is still fighting for justice," she said as quoted by kompas.com in a written statement on Wednesday.

Sringatin further said Jokowi's claim that Duterte had given the go-ahead for Veloso's execution as the basis of his move was unacceptable. With such a decision, she said, Jokowi showed that he did not consider the fate of 209 Indonesian migrant workers currently facing the death penalty abroad, 63 of who were female.

"The Indonesian government has adopted the Human Trafficking Law since 2007; thus, the government should uphold both justice and protection for trafficking victims, such as Mary Jane, Merri Utami [an Indonesian drug trafficker whose execution was cancelled in July] and other victims, in line with mandates of this regulation," said Sringatin.

President Jokowi reasserted on Tuesday that Duterte had given the go-ahead to Indonesian legal authorities to process the execution of Mary Jane's death sentence. (ebf)

Source: http://www.thejakartapost.com/news/2016/09/14/indonesia-should-not-rush-mary-janes-execution-activist.html

Investigation warned of police torture claims in Jakarta school case

Sydney Morning Herald - September 13, 2016

Jewel Topsfield and Karuni Rompies, Jakarta – An investigation into the alleged sex abuse of children at a prestigious Jakarta international school warned some of the suspects claimed to have been tortured by police until they confessed.

A report by the National Commission on Human Rights (Komnas HAM), obtained by Fairfax Media, outlines claims by some of the suspects, who were cleaners at the school, that "they were forced to admit their action because they could not stand being tortured any longer".

"With regards to the allegations of torture, Komnas HAM needs to further investigate to uncover the truth," the report says. "We also urge that the legal process is not carried out in ways that violate the law and human rights."

Five Indonesian cleaners, Canadian teacher Neil Bantleman and Indonesian teaching assistant Ferdinant Tjiong have been jailed for up to eleven years for the alleged sexual abuse of three kindergarten children at the school in 2013 and 2014.

Lawyers and family members of the cleaners and teaching staff insist they are innocent and plan to request a judicial review of the case, which is the last legal resort.

Komnas HAM conducted an investigation after receiving complaints in September and October 2014 from lawyers for the cleaners and teachers, lawyers for an alleged victim's family and parents from the Jakarta Intercultural School, who all requested the commission monitor the legal process.

The Komnas HAM investigation was completed while the trial was ongoing in the South Jakarta District Court. The report has never been publicly released.

It details horrific allegations of cigarette burns and beatings that were so severe the wife of one of the cleaners, Syahrial, did not recognise her husband's face because of the wounds and bruises.

Another cleaner – Agun Iskandar – alleged a police investigator covered his face with duct tape, whipped him with a hose, hit his chest, electrocuted him and smeared his genitals with balm and chilli sauce.

"The corroboration is when Epi Gunawan [his brother] paid a visit to the suspect, there were wounds around the eyes and face and scars from cigarette burns," the report says.

"Based on these findings it is clear that the actions committed by investigators of the PPA (women's and children's affairs) Unit of the Jakarta police against the suspects were cruel and inhumane and degraded human dignity."

The report does not explicitly state if it believes the alleged sexual abuse occurred.

However Komnas HAM found at least four human rights violations in the event of the alleged sexual assault at the Jakarta Intercultural School. One of these was a violation of children's rights, especially the right not to be a victim of abuse.

There was also a violation of the right to live (a sixth cleaner, Azwar, died in custody), a violation of the right not to be treated in a cruel, inhumane and demeaning way (the alleged torture of the cleaners) and a violation of the right to a feeling of security.

Police claimed Azwar died from drinking bleach he found in the toilet while in custody. The Komnas HAM report says further evidence, such as an autopsy, was required to establish the actual cause of death.

"In this case, Jakarta police investigators were negligent in failing to prevent actions that could endanger the suspect under their care," the report says.

Its recommendations included that the Indonesian police chief investigate the alleged torture of the cleaners and the alleged network of perpetrators of sexual violence against children at Jakarta Intercultural School and that the school increase its security, such as installing CCTVs on every corner.

Yayah Heriyah told Fairfax Media she did not see her husband, Syahrial, who was a cleaner at Jakarta Intercultural School, until five days after his arrest in 2014. Police said she could not visit prior to this because the investigation was ongoing.

Asked if she was shocked when she saw Syahrial for the first time, she said: "I wasn't just shocked, I didn't recognise him at all. There were bruises all over his body and face but there were more bruises on his face, especially around his eye."

Ms Yayah said the judicial review was the family's last legal avenue. "I hope the Supreme Court will decide that my husband is innocent. There is nothing else we can do, we are just poor people, we can only hope for the best."

The alleged sex abuse at Jakarta Intercultural School has attracted intense international scrutiny and raised questions about the integrity of the Indonesian legal system.

Canadian Prime Minister Justin Trudeau brought up Mr Bantleman's case with Indonesian President Joko Widodo at the G20 summit in China this month. "I'm constantly talking about how important it is to respect the rule of law and to defend Canadians' rights abroad," Mr Trudeau said.

Source: http://www.smh.com.au/world/investigation-warned-of-police-torture-claims-in-jakarta-school-case-20160913-grffx4.html

Philippines president Rodrigo Duterte 'will not interfere' over execution of

Sydney Morning Herald - September 12, 2016

Jewel Topsfield – Indonesian president Joko Widodo caused a storm of controversy on Monday when he appeared to indicate the Philippines president Rodrigo Duterte had given Indonesia the green light to execute Filipina maid Mary Jane Veloso.

Mr Duterte's presidential spokesman sought to clarify reports, insisting there had been no endorsement and Mr Duterte had merely told Mr Joko to follow his own country's laws.

"Follow your own laws. I will not interfere," is what Mr Duterte had actually said when he met Mr Joko in Jakarta last week, presidential spokesman Ernesto Abella told Philippines website GMA News Online.

Veloso was dramatically spared from the firing squad in 2015 after her alleged recruiter, Maria Kristina Sergio, handed herself in to police in Manila just hours before the scheduled execution.

At the time the former Philippines president Benigno Aquino had personally appealed to Indonesian President Joko Widodo to grant Veloso clemency, saying she could be a witness in prosecuting drug syndicates.

However Mr Joko told reporters Mr Duterte had given Indonesia the go-ahead to execute Veloso if it wanted to, according to a story published on the Indonesian Cabinet Secretariat's own website.

Mr Duterte, known as "The Punisher" for his war on drugs, has overseen thousands of traffickers killed since he swept to power and has spoken in favour of reviving the death penalty to combat drugs in the Philippines.

"I explained that Mary Jane brought some 2.6 kilograms of heroin and I explained about the execution postponement at that time," Mr Joko said. "President Duterte's response was 'Go ahead if (you) want to execute (her)."

Mr Joko said Attorney-General Muhammad Prasetyo was following the ongoing legal process in the Philippines for Veloso's alleged recruiter. The comments caused a flurry of panic. Mary Jane was a trending Twitter topic in Indonesia on Monday, with hashtags including #saveMaryJane.

"We demand an immediate explanation from President Duterte and Secretary Yasay, both duty-bound to defend the rights of Filipinos overseas, especially drug trafficking victims like Mary Jane," said Migrante International chairperson Garry Martinez on Facebook.

Veloso, who was arrested in Yogyakarta in 2010 after heroin was found in the lining of her suitcase, always maintained her innocence and insisted she was duped into smuggling the drugs.

The plight of the mother of two struck a chord in Indonesia, given many Indonesian domestic helpers face exploitation when they work overseas.

Just days before Veloso was due to be executed in April last year alongside Australians Myuran Sukumaran and Andrew Chan and six others, #MaryJane was the number two trending topic on Twitter in Indonesia.

On September 5, Rappler reported that Mr Duterte would ask for mercy for Veloso but would be willing to accept what Mr Joko decided. "Well, I may just have to ask (Indonesian President Joko) Widodo in a most respectful and in very, very courteous way. And if my pleadings will fall on deaf ears, I am ready to accept it – for the simple reason I do not doubt the judicial system of Indonesia," he said.

"But if President Widodo will deny it, still I would be grateful that she has been treated very well."

Source: http://www.smh.com.au/world/philippines-president-rodrigo-duterte-will-not-interfere-over-execution-of-mary-jane-veloso-20160912-greq6c.html

Indonesian legal aid, activist call for new legal process for Mary Jane

Jakarta Post - September 10, 2016

Marguerite Afra Sapiie, Jakarta – Indonesia should initiate a new legal process for Filipino death-row inmate Mary Jane Veloso after the Philippines declared her a victim of human trafficking, the Jakarta-based Community Legal Aid Institute (LBH Masyarakat) has said.

"Even though the Philippines declared Mary a victim of trafficking, the ruling has yet to be applied in Indonesia and there should be a new legal process to assert her victim status," LBH Masyarakat director Ricky Gunawan said in Jakarta on Friday.

However, he doubts that the Attorney General's Office (AGO) will set in motion a new legal process to accommodate the judgment from the Philippines because the institution has already accepted the death-penalty ruling of the Supreme Court.

The AGO will probably cling to the nation's legal positivism instead of probing into Mary's case to find out the facts behind her trafficking, Ricky said.

Meanwhile, Daniel Awigra of the Human Rights Working Group (HRWG) said Mary's case was a chance for President Joko Widodo and his administration to start unraveling the syndicates who used people like Mary to run their illicit businesses.

Daniel expects that Philippine President Rodrigo Duterte's visit to Jakarta will inaugurate a new beginning in the war waged by Indonesia and the Philippines against drug networks. (ags)

Source: http://www.thejakartapost.com/news/2016/09/10/lbh-masyarakat-calls-for-new-legal-process-for-mary.html

Intelligence & state security

Promotion for Budi Gunawan politically driven: expert

Jakarta Post - September 11, 2016

Jakarta – The promotion of newly appointed National Intelligence Agency (BIN) chief Budi Gunawan as a four-star police general is politically driven, an analyst said on Sunday.

President Joko "Jokowi" Widodo inaugurated Gen. Budi Gunawan as the nation's new spy chief on Friday, replacing Sutiyoso. Budi, who previously served as National Police deputy chief and held the rank of Comr. Gen., was also promoted to the rank of four-star general by a presidential decree. Usually, only the National Police chief has the rank of four-star general.

"Perhaps [the promotion] was granted as compensation because he failed to become National Police chief. The new rank could also have been given to respect Budi's ability. If so, then it is more politically driven than a professional assessment," Bambang Widodo Umar, an expert in the police from University of Indonesia, said on Sunday as reported by kompas.com.

Budi was on his way to lead the police in 2015 after receiving approval from the House of Representatives. However, Jokowi canceled his nomination after the Corruption Eradication Commission named him a suspect in an alleged corruption case.

Bambang stressed that Budi's main duty as BIN chief was to protect state interests, not to support political parties.

National Police chief Gen. Tito Karnavian has taken the promotion lightly, claiming that despite the fact that there are now two active police generals, he and Budi worked for different institutions. (rin)

Source: http://www.thejakartapost.com/news/2016/09/11/promotion-for-budi-gunawan-politically-driven-expert.html

Budi Gunawan inaugurated as spy chief

Jakarta Post - September 10, 2016

Jakarta – The former deputy chief of the National Police, Comr. Gen. Budi Gunawan, has been inaugurated as the new national spy chief.

President Joko "Jokowi" Widodo inducted Budi as the director of the National Intelligence Agency (BIN) during a ceremony at the State Palace on Friday. Budi replaces retired Army general and former Jakarta governor Sutiyoso, who had led the agency since July 8 last year.

Budi was nominated by President Jokowi through an official letter sent to the House of Representatives by State Secretary Pratikno last Friday. He is a close associate of Indonesian Democratic Party of Struggle (PDI-P) chairwoman Megawati Soekarnoputri.

Source: http://www.thejakartapost.com/news/2016/09/10/budi-gunawan-inaugurated-spy-chief.html

Foreign affairs & trade

Indonesia's trade balance sees August declines

Jakarta Post - September 15, 2016

Ayomi Amindoni, Jakarta – The economy has recorded a US$293.6 million surplus in its August trade balance, with $12.63 billion in exports and $12.34 billion in imports, according to the latest trade data released by the Central Statistics Agency (BPS) on Thursday.

The surplus slightly decreased from the July figure which stood at $598.3 million, as the country saw higher growth in imports than growth in exports. The country's import value of $12.34 billion in August, increased 36.84 percent from the previous month, but down 0.49 percent compared to same period last year. Non-oil and gas imports reached $10.58 billion in August, up 40.9 percent month-on-month (mom) and 2.84 percent year-on-year (yoy).

Likewise, monthly oil imports also increased in August, totaling $1.76 billion, up by 16.55 percent mom, but down by 16.71 percent on a yoy basis.

BPS data show monthly exports have jumped by 32.54 percent in August, but when compared to the same period last year, the value of exports has decreased by 0.74 percent.

The export hike in August was mostly from non-oil exports which stood at $11.5 billion, up by 34.84 percent mom and 2.76 percent yoy. (ags)

Source: http://www.thejakartapost.com/news/2016/09/15/indonesias-trade-balance-sees-august-declines.html

Tourism & hospitality

Beneath the surface of tourism in Bali, a water crisis looms

The Conversation - September 9, 2016

Thomas Wright – "For thrill seekers and chill seekers" – that's the phrase the Today Tonight television program used to show areas in Bali as a freshly rebranded holiday destination, in its recent Brand New Bali series.

But beneath the glamorous surface of cocktails, swimming pools and beach holidays lies an environmental threat that may cause the island to face a water crisis in less than four years.

One segment of Brand New Bali focused on the area of Canggu, hailed as the new "place to be", after Kuta, Legian and Seminyak.

Showcasing one newly opened Australian-owned beach club at Berawa beach, the segment shows Australian visitors, the Australian beach club manager and a local businessman named Ketut talk about the splendours of Canggu and its rise from a small fishing village to a trendy international surf destination.

The beach club sits on an aquifer, underground layers of rock that contain water that can surface through natural springs or be extracted using pumps. Like most tourism businesses and households in the area, the beach club relies on groundwater for daily water consumption.

Lack of management and overconsumption of water can cause aquifers to face groundwater depletion and land subsidence. Although Bali is a lush, tropical island with rich volcanic soil and a more than 1,000-year heritage of rice production, researchers estimate the island will run dry by 2020.

Stress on waterways is more than just a local issue to Bali. It is of global concern, as UNICEF's current campaign World Water Week seeks to highlight.

Balinese opposition to outside investors

Bali's struggle against cashed-up outside investors is most prominent in the "Tolak Reklamasi" movement. Thousands of supporters have joined the movement to reject land reclamation in Benoa Bay, where investors from Jakarta are planning to build hotels and casinos on artificially-built islands.

Protesters claim this will have negative environmental consequences such as flooding, place stress on water and waste management, and destroy dozens of Hindu sacred sites.

While there are many – local residents included – who welcome the booming tourist scene in Canggu and the economic opportunities this offers, researchers warn about rapid and uncontrolled development.

Balinese tourism researcher I Nyoman Darma Putra has addressed the shift from cultural tourism to marine tourism and notes the increasing demand for marine leisure activities by tourists. He cautions against the rapid development of coastal spaces and urges developers to consider Balinese people's religious relationship with the sea, as well as the sustainable management of environmental resources.

Tourism and water

An estimated 60 per cent of Bali's water is consumed by the tourism industry. This not only affects water sources but can disadvantage neighbouring users too.

Stroma Cole's research shows how wealthy tourism operators can afford better technology to access deeper groundwater resources. While most households have wells up to 40 metres deep (some only 12 metres), resorts are reported to drill deeper wells – 60 metres and more – literally sucking up their neighbours' water. The neighbours are then forced to dig deeper or look elsewhere for freshwater.

Although there are laws that regulate water consumption, they are rarely enforced. Most users are unaware of these regulations. As a result, those with financial resources can buy themselves an advantage in accessing resources.

Water tables across Bali have dropped up to 50 metres in the past 10 years in parts of Bali and 60 per cent of its watersheds are declared dry. The damage could become irreversible once aquifers suffer saltwater intrusion, rendering the groundwater useless for domestic purposes.

Bali tourism: who really benefits?

So what benefit may this beach club have to the area? Surely, large developments can bring economic prosperity to semi-urban areas?

The prospects seem bleak. Beach vendors, who have been selling cold drinks and snacks on this stretch of sand in Berawa for years, were forced to move to make way for the new mega-club, and are left fearing for their business. Many of those beach vendors have families to feed. The assumption that more tourism business means more wealth for Balinese residents is also misleading: an estimated 85% of tourism businesses are owned by non-Balinese.

The Today Tonight segment does well in highlighting the popularity of places like Canggu and touches on the special place Bali holds towards its Australian audience. Australians in particular have a close connection to Bali through decades of mass tourism and the market seems to be changing from a budget, all-inclusive version, to a glossy, exotic marine tourism destination.

While an exclusive cocktail in the newest popular beach bar will look good on any traveller's social media feed, consumers, developers and residents alike must consider seriously measures of environmental sustainability, so that generations to come can enjoy the beauty of this wonderful island.

The author makes no claim of representing or speaking on behalf of a Balinese community. Some of the information is based on ethnographic field research the author undertook in the Canggu area between 2015 – 2016 as part of his PhD project.

[Thomas Wright, PhD Candidate in Anthropology, The University of Queensland.]

Source: http://www.smh.com.au/world/beneath-the-surface-of-tourism-in-bali-a-water-crisis-looms-20160909-grc1or.html

Mining & energy

Government warned of risks from policy flip-flop

Jakarta Post - September 9, 2016

Fedina S. Sundaryani, Jakarta – The government's proposed relaxation of an impending export ban of unprocessed mineral ore will raise risks and discourage miners from constructing smelters as per requirements, experts have warned.

Interim Energy and Mineral Resources Minister Luhut Pandjaitan recently proposed that several commodities be allowed an export extension for three to five years, depending on each company's smelter development progress and commodity prices.

Luhut, who is also the coordinating maritime affairs minister, suggested that the ban relaxation be inserted into the upcoming revision of the 2009 Mining Law, which has been included in this year's National Legislation Program (Prolegnas).

However, ReforMiner Institute researcher Komaidi Notonegoro said that only mining companies would reap the benefits of such an extension as they would most likely focus on exporting, instead of meeting domestic demand.

Small mining companies would enjoy the benefit of the relaxed ban as well, but only in the short term, because large companies would still "have the final say" on commodity prices, thanks to latter's vast supplies of mineral ore that dominate the market.

"It's not a matter of whether or not the smaller companies can remain competitive, but they will not be able to dictate the market," he said on Thursday.

In terms of smelter construction, Komaidi said smelter companies would be at a disadvantage as well, while the Processing and Smelting Companies Association (AP3I) has slammed the proposal, saying the extension will create uncertainty for investors about the government's seriousness in developing the downstream sector.

AP3I deputy chairman Jonatan Handojo said that the relaxation would allow larger companies who had been unenthusiastic about constructing smelters to further postpone any development in favor of exporting mineral ore.

The Mining Law revision has been highly anticipated as the ban on raw mineral exports will be implemented on Jan. 12, 2017. The purpose of the ban is to encourage smelter development to strengthen the industry's downstream sector.

The ban was originally scheduled for implementation in 2015, but was pushed back and mining companies have been granted permits to export raw minerals for six months at a time, as long as the mining firms that work on smelter projects deposit 5 percent of their total investments at local banks as collateral.

Data from AP3I show that as many as 27 smelters have been constructed between 2012 and 2016 with a total investment of US$12 billion.

This does not include gold and copper mining giant Freeport Indonesia, whose progress on its planned smelter in Gresik, East Java, remains ambiguous. The government recently granted the company a permit to continue exporting 1.42 million tons until next January.

Meanwhile, Marwan Batubara of Indonesian Resources Studies (IRESS) said the export ban should still apply to commodities that already had many smelter facilities.

"Smelters should still be constructed, but the government can choose what kind of mineral extracts can still be exported and which ones should not. For example, we should not allow exports of nickel because we already have many nickel smelter facilities in the country."

There are 20 smelters dedicated to ferronickel, nickel pig iron and nickel hydroxide with a national demand of 41.6 million wet metric tons (WMT) of nickel ore per annum.

State-owned diversified miner Aneka Tambang (Antam) has already shown enthusiasm for the relaxation of the ban and is ready to start exporting if such an allowance was implemented, as stated by president director Tedy Badrujaman.

Company data reveals that it has 988.2 million WMT in nickel ore reserves, consisting of 580.2 million WMT in high-grade nickel and 408.1 million WMT in low-grade nickel as of last year.

Source: http://www.thejakartapost.com/news/2016/09/09/govt-warned-of-risks-from-policy-flip-flop.html

Fishing & maritime affairs

Fisheries industry asks govt to review policy

Jakarta Post - September 14, 2016

Stefani Ribka, Jakarta – The fisheries industry has asked the government to review a policy on ships that it claims has crippled business.

Businesspeople with the Indonesia Fishery Industry Association (Gappindo) said they had seen a significant drop in exports and production after the Maritime Affairs and Fisheries Ministry put in place a moratorium on the use of foreign-made vessels.

The moratorium, which was implemented from November 2014 to October 2015, froze the operation of vessels with a capacity of 30 gross tons (GT). The ministry required them to undergo permit audits and demanded that their presence be replaced by locally made vessels.

As many as 1,132 ships were pulled from operations during the period of the moratorium. Some 500 ships have been cleared in the audit, but the ministry is standing its ground and obliging locals to only use locally made ships.

"We have no choice but to sell the 500 ships, but it's hard to find buyers from abroad. We ask the government to review its policy because we bought the ships legally, but now the sudden change in regulation has brought us difficulties," Gappindo chairman Herwindo said after meeting with the Indonesian Chamber of Commerce and Industry (Kadin) recently.

Businesspeople said production and exports had dropped significantly within the past couple of years and they questioned Central Statistics Agency (BPS) data showing a positive trend in the industry.

According to the Indonesian Marine Fish Farming Association (Abilindo), the production of groupers is projected to drop to 1,000 tons this year from 4,000 tons in 2014, while the Indonesian Tuna Association (Astuin) said tuna export volumes to Japan dropped by half to 7.5 million kilograms in 2015 from 2014.

BPS data, however, shows the overall industry grew 6.06 percent year-on-year in the second quarter compared to the same period in 2015.

Gappindo members also said the local shipyard industry could build vessels with a capacity of up to around 200 GT, but at higher price tags compared to what was offered overseas.

President Joko "Jokowi" Widodo held on Tuesday a limited Cabinet meeting at the State Palace to discuss the issue.

"I have asked the coordinating maritime affairs minister and the maritime affairs and fisheries minister to take steps to accelerate the development of the fishing industry. Just remove complicated procedures that hinder investments," he said.

The President has issued a presidential instruction to accelerate the fisheries industry but the implementation of it remains uncertain.

Source: http://www.thejakartapost.com/news/2016/09/14/fisheries-industry-asks-govt-to-review-policy.html

Economy & investment

Indonesia plans to further relax negative investment list

Jakarta Post - September 15, 2016

Anton Hermansyah, Jakarta – Investment Coordinating Board (BKPM) head Thomas Trikasih Lembong has promised to delist more sectors from the negative investment list (DNI) after holding a discussion with relevant ministries.

"President Joko Widodo has promised a second, third, and fourth [DNI] revision. But in regard to the details about which sectors they are, I need to discuss with other ministries, through some bureaucratic procedures," he said at the Mandarin Oriental Hotel on Thursday in Jakarta.

Thomas was responding to a US Chamber of Commerce recommendation in the US-Indonesia Investment Initiative 2016. Overall, according to the American Chamber of Commerce (Amcham) Indonesia report, US investors had praised the government's move to reduce the DNI recently, but wanted more revisions to follow.

US Chamber of Commerce executive vice president Myron A. Brilliant told The Jakarta Post that his institution wanted to see that negative investment list continue to shrink. "That would be a positive measure for doing business here," he said.

The government should further liberalize the financial services, oil and gas, e-commerce, and educational services sectors, he added. Those are the four sectors in which many US companies have expertise.

In the government's 10th economic policy package, which was released in January, the medicine ingredients, tourism and creative industries were removed from the DNI. During the announcement, President Jokowi promised more DNI revisions in the future. (ags)

Source: http://www.thejakartapost.com/news/2016/09/15/indonesia-plans-to-further-relax-negative-investment-list.html

Government more realistic about growth

Jakarta Post - September 13, 2016

Prima Wirayani, Jakarta – The government has accepted that its economic growth target for 2017 was over-optimistic.

Finance Minister Sri Mulyani Indrawati told the House of Representatives' Commission XI overseeing financial affairs last week that the economy would expand by 5.1 percent next year, lower than the 5.3 percent stated in the proposed 2017 state budget delivered by President Joko "Jokowi" Widodo last month.

Sri Mulyani, a former World Bank managing director, told lawmakers the government did not intend to repeat this year's budgetary mistakes, which forced it to carry out two rounds of budget cuts amounting to nearly Rp 150 trillion (US$11.4 billion) in anticipation of a massive tax revenue shortfall of Rp 219 trillion.

"I feel more comfortable with 5.1 percent growth next year," Sri Mulyani said. "Even if there is a revision next year, we hope it's an upward one."

It remains unclear how greatly the lower growth target next year will affect state revenues and, consequently spending, as the government is still dealing with this year's quandary of overly ambitious tax targets and lower economic growth than expected.

The country had just begun to recover from a six-year low economic growth rate of 4.79 percent last year, with an earlier expectation of boosting growth to 5.3 percent in the 2016 state budget.

However, after two rounds of budget cuts, Sri Mulyani has settled for between 5 and 5.1 percent growth target for the year as a result of reduced government spending that could hinder its multiplier effect on the overall economy.

For next year, lawmakers' forecasts of an even lower growth rate of 5.05 percent made it clear that they and the government will proceed with a gloomier outlook on the nation's economy.

Sri Mulyani said trade would be the pull factor next year as sluggish global economic conditions would still linger on to result in weak worldwide demand, as reflected in the recent G20 meeting in Hangzhou, China.

The International Monetary Fund (IMF) has slashed its global economic growth forecast to 3.1 percent from 3.2 percent this year and to 3.2 percent from 3.3 percent next year.

Indonesia should get used to seeing its growth relative to the global economic expansion, which currently faced abundant challenges, said Febrio Nathan Kacaribu, head of research for the macro-economy and trade of the University of Indonesia's Institute for Economic and Social Research (LPEM-UI).

"Growing by 5.1 percent next year is already good, relative to global growth," he said by phone on Monday.

Given the country's large population of more than 240 million people, consumer spending would remain the engine of growth, Febrian added, apart from private investment, which could push growth higher.

The government expects that investment will expand by 6.1 percent annually next year, lower than its previous target of 6.4 percent as several business sectors, such as commodities, remain under pressure from the slowing global economy.

Meanwhile, domestic consumer spending growth, which makes up more than half of the GDP last year, is maintained at between 5 percent and 5.1 percent.

Deutsche Bank chief economist Taimur Baig called Indonesia's large, relatively young, population the economy's "blessing" in addition to its growing middle class and rich natural-resource base.

However, he went on, excessive optimism had held Indonesia back in recent years. This affliction manifested in yearning for 7 percent real GDP growth in 2019, expecting surging foreign direct investment despite nationalistic measures and feeling immune from global market volatility.

"This led to the government's macroeconomic forecasts being repeatedly wrong, leading to questions about the coherence of the fiscal and monetary policy framework," he wrote in a research note.

The more prudent and conservative the state budget is, the better it is, said Bank Central Asia (BCA) economist David Sumual.

"If the realization is better than our expectation that can be a bonus for us," he said by phone on Monday, adding that the draft state budget was closely related to market confidence and faith in the country's economy.

Source: http://www.thejakartapost.com/news/2016/09/13/govt-more-realistic-about-growth.html

Banking & taxation

Tax amnesty gets 'religious touch' to boost participants

Jakarta Post - September 15, 2016

Prima Wirayani, Jakarta – Repent and you shall be forgiven. This religious saying seems to suit current conditions as the government seeks to offer forgiveness to disobedient taxpayers by joining hands with religious groups.

Last Sunday, the congregation of the Indonesian Christian Church (GKI) Kayu Putih in East Jakarta received a weekly bulletin that greeted them with the now-famous tax amnesty "Declare, Redeem, Relief" slogan.

The slogan encourages reflection on the importance of paying taxes and being honest. "The reflection contains the writer's concern for actual issues and what Christianity says about them," Rev. Nathanael "Adi" Setiadi said by phone on Wednesday.

The reflection was part of the church's attempt to familiarize its 4,000 members with the government's program.

It held an information dissemination event the night after the tax amnesty program was passed into law on June 28. The event saw a Finance Ministry official speak on the program and attracted 85 members.

The number of participants is considered quite high for an event held late at night, Adi said. The church's board plans to hold another event specifically on tax amnesty procedures.

The tax office admits that several religious groups have held tax amnesty dissemination events to inform the public. These events have helped boost public participation, which is currently below the government's expectations.

As of Wednesday evening, the amount of declared assets stood at just Rp 471 trillion (US$35.61 billion) or 11.8 percent of the Rp 4 quadrillion target. The amount of redemption or penalty payments is also low at Rp 11 trillion, or 6.6 percent of the target. Most of the declared assets, or more than 71 percent, come from onshore accounts.

Satria Anggoro, the South Jakarta 1 tax office head, even claimed that around 3,000 members of a pastoral community had visited his office recently to obtain a tax identification number (NPWP), thanks to such a dissemination event.

Meanwhile, the "religious touch" has now expanded to Muhammadiyah, the second-largest Muslim organization in the country.

Finance Minister Sri Mulyani Indrawati, along with high ranking aides, met with the organization's leaders in a two-and-a-half hour closed-door meeting on Wednesday.

Taxation Director General Ken Dwijugiasteadi and Presidential Chief of Staff Teten Masduki were also seen at the meeting.

Lincolin Arsyad, the chairman of Muhammadiyah's central committee on higher education, research and development, said they had discussed the program in detail, with the minister explicating the program's purpose and benefits.

The meeting ended in harmony. "We will work with the Finance Ministry to hold dissemination events, for example, at Muhammadiyah colleges," Lincolin said, highlighting the organization's 176 colleges scattered across the country.

He was quick to add, however, that the meeting did not discuss Muhammadiyah's plan to file a judicial review on the Tax Amnesty Law at the Constitutional Court.

The government has reportedly tried to delay the submission of the judicial review by asking for time to explain the program to Muhammadiyah's central committee. When asked about the fate of the submission, Lincolin told journalists "to just wait".

Despite its earlier oppositional stance, Muhammadiyah proposed in the meeting that the period of tax amnesty be extended to three years from nine months to allow more time for a proper dissemination process. Lincolin said, however, that Sri Mulyani had told them that the law could not be changed.

The tax amnesty was launched in July and will run in several phases until March 2017. The first phase will end on Sept. 30 and carries the highest importance for the government due to the low rates of tax compliance.

Source: http://www.thejakartapost.com/news/2016/09/15/tax-amnesty-gets-religious-touch-boost-participants.html

Rich Indonesians snap up Singapore homes as taxman beckons

Bloomberg - September 14, 2016

David Roman, Pooja Thakur Mahrotri, and Chanyaporn Chanjaroen, Singapore –Never mind that Singapore is experiencing one of the worst property slumps in its history, demand for luxury housing is suddenly coming from an unexpected group: wealthy Indonesians.

This year's purchases by Indonesian nationals of homes valued at S$5 million ($3.7 million) or more have already nearly quadrupled from last year's total.

The stepped-up buying coincides with the passage of a law in Jakarta aimed at getting Indonesians to repatriate or pay taxes on an estimated $300 billion that had fled to Singapore during previous periods of unrest, lest those who took their money out be found out for tax evasion – a reason cited by three property agents as a primary reason behind the purchases. Indonesians were the top foreign buyers at the luxury OUE Twin Peaks tower, which went on sale in July.

"We're seeing a big increase in Indonesians buying the most expensive property," said Ang Kok Leong, a senior agent at SLP Realty Pte, who cited Indonesians' concerns about Singapore's upcoming move to share financial information as the single biggest motivation for his Indonesian clients.

"These people are generally in tune with this kind of situation back home, so if I'm not about to let the Indonesians know what I have, I will buy in Singapore."

Indonesia, Singapore and other countries are adopting global tax reporting requirements to tell each other about nationals holding assets abroad. Indonesians moving money into property are counting on only assets held in banks, not in real estate, being shared, agents and brokers say.

Surging demand

While the numbers in the official data are small, they show surging demand that likely understates the real total. Indonesians bought 30 Singapore properties valued at S$5 million or more between the start of the year and Aug. 17, compared with only eight such deals for all of 2015, according to the government's Urban Redevelopment Authority. Disclosure of nationality is voluntary.

During the first half of this year, Indonesians bought 189 properties of all values in Singapore, 23 percent more than in the same period last year, data from Cushman & Wakefield Inc. show. While purchases from Chinese and Malaysians declined during the second quarter, transactions by Indonesians rose 19 percent.

Not all Indonesians buying real estate are seeking to avoid taxes, of course, and some may see value in a market that bottomed out in prime areas at the end of 2015. Indonesians are drawn to property in Singapore's center, especially the Orchard Road area where the OUE Twin Peaks towers are located. Apartment prices there have risen 0.6 percent since their low at the end of 2015, according to Cushman & Wakefield.

At the OUE Twin Peaks development, where luxury condos in the second tower of the 36-story high rises went on sale in July, the developer sold almost half the first batch of 86 units with price tags of as much as S$4 million, with Indonesians the top foreign buyers, according to Propnex Realty Pte, a company handling sales for the project.

A Propnex agent who asked not to be identified said the strong demand from Indonesians came as a surprise. It's a marked change from past sales of downtown luxury homes, such as the Marina One Residences last year, when Indonesian buyers accounted for just three of about 200 units sold, Cushman & Wakefield data show.

Indonesian President Joko Widodo's ambitious tax amnesty plan, under discussion since earlier this year and ultimately passed in June, is aimed at repatriating Indonesian cash stashed overseas while giving evaders a way to come clean.

Tax rates

Under the amnesty, Indonesians are to pay a tax rate starting at 4 percent on declared property or funds left overseas. It increases in stages to 10 percent as the amnesty period draws to a close in March. Those who send their money home and keep it in Indonesia for at least three years pay 2 percent and are offered a wide range of possible investments. Those who don't declare and are found out face paying 200 percent of the tax owed.

The tax amnesty deal may attract S$5 billion to S$9 billion of Indonesian funds deposited in Singapore, Sanford C. Bernstein & Co. analysts Kevin Kwek and Norbert Topouzoglou wrote in a July 21 report. Most of the assets are probably invested in properties, securities or businesses, and are thus less likely to be repatriated quickly, they said.

Wealthy clients typically allocate about 20 percent of their assets to property, according to Evrard Bordier, Singapore-based managing partner of Swiss private bank Bordier & Cie. That percentage might increase because of the new tax transparency standards from the Organization for Economic Cooperation and Development that both Singapore and Indonesia have agreed to, he said. They currently don't include reporting on real estate holdings.

Important changes

"This global shift into increased transparency will no doubt result in subtle yet important changes in the portfolio allocation of a typical high-net-worth individual," said Bordier, noting that the global trend toward sharing information across jurisdictions eventually will make hiding money in property difficult.

In response to a request for comment, the Monetary Authority of Singapore and the country's Ministry of Finance said Singapore is ready to help in "any case of suspected cross-border tax evasion."

Singapore and Indonesia have yet to agree to the mechanisms needed for the automatic exchanges of information under OECD tax standards, due to come into effect by 2018. Until then, information transfers including information on property ownership take place upon request between the two tax authorities.

"Expectations of motivating substantial repatriation whilst there are still doubts/lack of clarity may be overly optimistic," Vishnu Varathan, an economist with Mizuho Bank Ltd., said by e-mail. "Declaring taxable monies to be repatriated could subject their accounts/finances to more scrutiny."

Zero tolerance

Yet with the implementation of automatic exchanges of information between Singapore and Indonesia being just "a matter of time," Sum Yee Long, professor of accounting at Singapore Management University, said in an e-mail, "it does not make sense for Indonesians to 'hide' their unreported income in Singapore via property purchases," which can be easily traced.

"The Singapore government has made it very clear that it has zero tolerance for illicit funds," he said.

Singapore is currently mired in its most prolonged housing slump on record. Home prices in the city-state fell for the 11th straight quarter in the three months ending June 30, posting the longest losing streak since records started in 1975.

Singapore's government is holding steadfast on cooling measures it has rolled out since 2009, for fear of inflating a property bubble. The measures, including a stamp duty on foreign buyers, limit the investment appeal of what is still a key high-end housing market in Asia. Wealth advisers and property agents say property is often seen as a conservative investment option and a way to store wealth at a time of economic uncertainty and mediocre returns in financial markets.

Safe haven

"Indonesians see Singapore as a politically stable safe haven," said Jasslyn Yeo, Singapore-based global market strategist for JPMorgan Chase & Co.'s asset management unit. "This is an important factor, especially at this time when you see so much instability in the region."

Indonesian wealth fled the country as far back as the 1960s when violence against ethnic Chinese was part of a campaign by President Sukarno to stamp out Communism. Other periods of instability include 1998, when anti-Chinese riots coincided with the ouster of President Suharto, and thousands of ethnic Chinese took refuge in Singapore and elsewhere.

Unlike Singaporeans, who mostly buy to reside in properties and take time to decide, Indonesians often close deals in a matter of days and aren't picky about details, the agents say. They typically look for amenities such as hot tubs and swimming pools, as well as private elevator entrances, a feature that has become popular in recent years.

"This kind of buyer, sometimes they will come wearing big sunglasses if they're famous, so you don't recognize them, and often they come with their own family agent," said Kent Tan, an agent with realtor Home Guru Pte, who has seen a recent uptick in the number of queries by Indonesians. "These buyers know Singapore's market very well and have known it for many years."

Source: http://www.thejakartapost.com/news/2016/09/14/rich-indonesians-snap-up-singapore-homes-as-taxman-beckons.html

Tax amnesty chokes budget

Jakarta Post - September 9, 2016

Prima Wirayani, Jakarta – As the end of the first phase of the tax amnesty approaches, with little so far to show from the much-vaunted policy, the noose has begun to tighten around the state budget.

On Sept. 30, the first and most critical phase of the amnesty will conclude and the results will determine the program's course until it officially winds up in March 2017.

The figures are not encouraging. As of Thursday evening, the program had only managed to persuade taxpayers to declare Rp 325 trillion (US$25 billion) in assets and repatriate Rp 15.7 trillion of this from overseas.

This is a far cry from what the government had envisioned with a whopping declaration target of Rp 4 quadrillion and Rp 1 quadrillion being repatriated.

At the same time, the size of penalty or redemption payments is pitifully small with a mere 4.5 percent of the Rp 165 trillion target achieved so far. The government had pinned high hopes on the penalties to help plug this year's state budget deficit, which will stem from a taxation revenue shortfall estimated to be Rp 219 trillion.

As if to rub salt into the government's wounds, Bank Indonesia (BI) has slashed its penalty forecast to only Rp 18 trillion this year with an additional Rp 3 trillion in the first three months of 2017, bringing the total sum to Rp 21 trillion. The central bank's original penalty forecast was Rp 53.4 trillion.

And that is not all that BI has revised. In a working meeting on the 2017 state budget at the House of Representatives on Wednesday, BI Governor Agus Martowardojo told members of Commission XI – which oversees finance – that the program was expected to garner less than a fifth of the expected repatriated funds.

Agus, however, tried to be upbeat after the meeting. "That [the repatriated funds figure] is a base-line model and is a conservative figure based on what has been achieved so far," he told reporters after the meeting, which was also attended by Finance Minister Sri Mulyani Indrawati.

The minister herself once told lawmakers that this year's fiscal journey resembled a turbulent flight, through which the government was trying to land safely.

She said the country's economy, which the government predicts will expand by between 5 and 5.1 percent this year from 4.8 percent last year, was comparable to the plane itself, while the people, whose purchasing power has been deteriorating for some time, were the passengers.

The former World Bank managing director had convinced President Joko "Jokowi" Widodo that a second round of budget cuts of Rp 147.6 trillion was necessary to cope with this year's taxation shortfall.

Meanwhile, now that the government seems to have used up its austerity measure options and the tax amnesty has not yielded the desired silver bullet, economists say that increased borrowing to finance the budget may be the only way out.

Center for Reform in Economics (Core) Indonesia research director Mohammad Faisal predicts that the state budget deficit will inch closer to the legal limit of 3 percent of the gross domestic product (GDP) rather than the target of 2.5 percent.

"The list of options open to the government is getting shorter. There is no alternative to increased borrowing, a third round of budget cuts would be too painful for the economy and local administrations to bear," he said.

Institute for Development and Finance (Indef) executive director Enny Sri Hartati and Bank Mandiri senior economist Andry Asmoro concurred with Faisal.

"There's still room to widen the deficit, let's say, to 2.7 percent," Andry said in a telephone interview. As of Aug. 5, the budget deficit stood at 2.08 percent of GDP.

Source: http://www.thejakartapost.com/news/2016/09/09/tax-amnesty-chokes-budget.html