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Indonesia News Digest 41 – November 1-8, 2006

News & issues

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 News & issues

34,000 infected with TB in Central Java

Jakarta Post - November 7, 2006

Semarang – The number of people infected with tuberculosis has reached at least 34,761 in Central Java, an official said Monday.

The head of the communicable disease prevention unit at the Central Java Health Office, Lily Herawati, said this meant that the province, which has a population of 32 million people, has a ratio of 107 people with TB for every 100,000 residents, based on data collected up until the third quarter of this year.

"We're striving to wipe out this disease by ordering each community health center or integrated health service post to search for and monitor the development of TB infections in their area," Lily said.

She said many TB cases remained undetected by health officers, and that the real level of TB infection was probably higher than the official figure.

Out of the total number of people with TB, only 13,010 or 37 percent have been treated by the health office, she said. "Our aim is to treat up to 70 percent of them," she added.

Officials ready crack squad for Bush's visit

Jakarta Post - November 4, 2006

Yuli Tri Suwarni, Bandung – Representatives of the Bogor municipal administration in West Java province, the police and Indonesian Military (TNI) have been holding a number of meetings ahead of President George W. Bush's visit to the Bogor Palace at the end of this month.

The police and TNI have signaled that they will mobilize their best personnel to provide security during the state guest's visit to Bogor. At least 3,000 police personnel, reinforced by TNI troops, will be on duty for the event.

Commander of the Siliwangi Military Command Maj. Gen. George Toisuta said that his office would do its best to assist the police.

"We'll mobilize many troops and do our best and be professional because this task concerns the nation's dignity," he said on the sidelines of a ceremony Friday where Insp. Gen. Paiman handed over the baton to Insp. Gen. Soenarko Danu Ardanto as West Java police chief at the West Java Police Headquarters in Bandung.

Bogor Police chief Sr. Comr. Sukrawadi Dahlan said that security would be fortified by 3,000 police personnel from the regency and local police forces, as well as the West Java Police Headquarters, focusing more on field security. Sukrawadi confirmed that he had held meetings to coordinate security measures.

When asked about security threats that might occur, he cited terrorist acts, street protests and traffic congestion. He confirmed that Bush and his entourage would only visit the Bogor Palace briefly.

Sukrawadi promised to assist demonstrators if they carried out rallies according to procedures. "As long as they obey the rules, we will assist them, and if they don't, we'll take stern actions," he said.

Sukrawadi urged Indonesia's majority Muslim population to uphold the good image of Islam. "We appeal to Muslims to show that Islam is compassionate," he said.

Dirt-broke resort to pawnshops for easy money

Jakarta Post - November 4, 2006

Jakarta – Stay-at-home mom Wahyuni looked relieved as she walked away from the pawnshop in Senen, Central Jakarta. "Thank God, now I will be able to pay for my child's diploma," said the resident of the municipality's subdistrict of Kali Pasir.

She had just pocketed several hundred thousand rupiah in exchange for her gold jewelry. One of her six children recently graduated from a nearby vocational school in Gambir, she explained.

A loyal customer for more than 30 years, Wahyuni said she frequented the pawnshop because it was easy to get money quickly there at low interest rates.

"The rate is much cheaper than the interest charged by the loan shark in my kampong. Even if he values an item at one million rupiah, we only get Rp 900,000 and still have to pay monthly interest," she said.

Hery Wibowo, 35, was at the pawnshop for the same reason. "The repayment plan is very flexible. We can either pay the monthly installment or the interest only, and whenever we cannot pay on the due date, they allow us an extension."

More and more people are relying on the services of government- owned pawnshops. The figures recorded in Perum Pegadaian's annual report more than tripled from a little over 5 million in 1996 to over 16 million in 2005. Clients come not only from the lower class, but also from the middle class.

A tastefully made up woman clutching a Hermes tote bag was among the customers at the pawnshop in Senen on Wednesday.

Rully Yusuf, the business development and operational manager of the regional office of the state-owned pawnshop in Senen, said business peaked in periods like Ramadhan, Idul Fitri, Christmas and New Year's, as well as during the midyear school break.

"During the first two weeks of Ramadhan, we gave out 40 percent more loans. I guess housewives needed extra money to buy supplies for baking Idul Fitri cookies to sell over the holiday," he said Wednesday. He said it was common for people to reclaim their belongings before Idul Fitri.

Rully predicted many more people would come in for loans two weeks after the Idul Fitri holiday. He said that while the pawnshop offered many different services, including deposit services, loans continued to contribute about 98 percent of the office's income.

"The total value of loans has increased tenfold from Rp 414 billion (US$46 million) in 1996 to Rp 4 trillion in 2005."

Indonesia charges three in beheadings

Associated Press - November 3, 2006

Jakarta – Three Muslim men have been charged in the beheadings of three Christian girls in an Indonesian province fraught with sectarian tension, and the suspects could face death sentences if convicted, lawyers said Friday.

The three men – Hasanuddin, Lilik Purnomo and Irwanto Irano – are being charged under Indonesia's harsh anti-terrorism law for their roles in the girls' deaths and wounding of a fourth in Central Sulawesi province in 2005, a statement from the attorney general's Office said.

"Hasanuddin is also accused as the planner or motivator, and faces a maximum penalty of death," said Muanas, a lawyer with the suspects' defense team. The other two men could also be given death sentences if convicted.

Fierce gunbattles between Christians and Muslims from 1998 to 2002 left at least 1,000 people from both faiths dead in the region. A peace agreement ended the worst of the violence, but tensions flared anew after the execution last month of three Roman Catholic militants convicted of leading a 2000 attack on an Islamic school that killed at least 70 people.

Critics say the men did not get a fair trial and allege that religion played a role in their sentencing, noting that only a handful of Muslims were punished, and none given more than 15 years in jail. The executions went ahead despite appeals for clemency, including an appeal by Pope Benedict XVI.

In weeks following the executions, mobs killed two Muslim traders and a prominent Christian priest and at least seven bombs went off in Poso and nearby Palu, none of them deadly.

Indonesia is the world's most populous Muslim nation, with 90 percent of its 220 million people practicing a moderate form of the faith. Central Sulawesi has a roughly equal number of Muslim and Christians.

Muanas said his clients would be tried by a panel of three judges in the Indonesian capital, but that no date has been set. "Hopefully we will be notified next week," he said.

Youth unemployment to get worse over next decade

Jakarta Post - November 1, 2006

Ridwan Max Sijabat, Jakarta – Social scientists warned Tuesday that Indonesia's social problems will get worse over the next 10 years because the bulk of the 11 million unemployed will be aged between 15 and 24 years old.

They said such a situation could spur political instability in line with widespread poverty and other social ills.

Payaman Simanjuntak, a professor of labor economics at the Krisnadwipayana University in Jakarta, said that a recent survey conducted by the National Labor Training Board showed that 64 percent, or almost seven million, of the 11 million unemployed in Indonesia were high school graduates or dropouts aged between 15 and 24.

"These young and poor people mainly work in the informal sector because they do not have the skills needed for the formal sector. They will mature and get married in the next decade. They will remain poor and be unable to afford to send their children to school," he told the Jakarta Post.

The International Labor Organization reported Monday that globally the number of jobless people aged between 15 and 24 has risen sharply and warned that the low rate of global economic growth was failing the young.

Payaman predicted that Indonesia's unemployment rate could increase to 20 percent of its roughly 150 million person workforce by 2015, while the number of poor families, currently estimated at 19.2 million, could double.

"There will be no significant changes in the country's human development index and foreign professionals will grab the domestic labor market."

Payaman, formerly the director general for industrial relations at the Manpower and Transmigration Ministry, criticized the government for only focusing on formal education programs.

"Formal education will only reduce the number of elementary school dropouts and produce incompetent, unskilled high school graduates, and we will have no alternative but to focus on exporting maids and semiskilled workers," he said.

Bomer Pasaribu of the Bogor Institute of Agriculture (IPB) said open unemployment and underemployment accounted for 40 percent of the current 106 million working people in Indonesia.

"Besides allocating part of the education budget to finance training programs, the government should feed the people and cure the sick," he said.

He said the government needed to focus on intensifying soft loans for small- and middle-scale enterprises and revitalizing the agricultural and forestry sectors to absorb unskilled job seekers.

Both men were of the opinion that Indonesia's main problems were its double-digit unemployment rate, worsening poverty, poor human resources quality, low productivity and low-performing government officials.

Bomer, a former manpower minister, is also executive director of the Center for Labor Development Studies (CLDS). He said a foreign investment program would not help solve the unemployment problem in the short term. He cited a recent CLDS survey that found that corruption was the largest cause of unemployment, at 21 percent. Bad infrastructure was to blame for 19 percent of unemployment and a complicated bureaucracy for 15 percent, with tax rulings (11 percent), poor human resources quality (9 percent) and labor regulations (4 percent) rounding out the list.

Quoting the 2005 World Bank Report, he said that Indonesia was ranked 115 out of 155 countries for foreign investment, while neighbor Singapore was ranked second.

Forced evictions start with the 'f' sound

Jakarta Post - November 1, 2006

Anissa S. Febrina, Jakarta – Jakarta may be almost half a millennium old, but when it comes to fire it is nothing more than a child whose fascination with burning stuff started at an early age.

But in a city where more than 300 fires break out every year, there are many reasons for playing with fire. Fire has become Jakarta's most "pragmatic" method of urban renewal. It is considered a "social approach" to wiping out the unwanted, activists and sociologists say.

During the Idul Fitri holiday, fire destroyed four houses in Central Jakarta's Kebon Melati. The three blackened outer walls of one of the houses – all that was left behind – provide a stark contrast to the imposing trade center standing behind them.

"We have been offered compensation for leaving the area several times, but are yet to come to an agreement," said Sholeh, a resident of the desolate neighborhood unit that has "spoiled the view" of Jakarta City Center. The project's management, however, has denied any relation between the ongoing construction and the fire.

Revisiting a fire-ravaged market in South Jakarta's Melawai compound gives one a pretty good idea of what the squatter settlement in Kebon Melati will come to look like. The fire, which occurred in late August 2005, claimed the life of firefighter Subandi and razed several old blocks of Melawai market.

Surrounded by the makeshift stalls of traders from the old market, the site is on its way to becoming a mix-used area consisting of a hotel, apartments and a shopping center.

Interviewed after last year's fire, Prabowo Soenirman, the president director of city market operator PD Pasar Jaya, initially denied vendors' claims the market was going to be redeveloped, as well as any link between the fire and the project.

And the list goes on: In January 2003, 111 kiosks in Senen Market in Central Jakarta were destroyed by fire. The Senen area is currently being redeveloped. In February 2003, fire razed 2,200 kiosks in Southeast Asia's largest textile market, Tanah Abang in Central Jakarta. Two years later, a 14-story air-conditioned modern market stands on the site.

Forensic investigation of fires like those in Tanah Abang and Melawai generally state the cause and origin as a short circuit, or "unknown".

Occurring mostly in densely populated or slum neighborhoods, where the presence of short circuit faults in electrical cables or cords is a latent fire hazard, or in old marketplaces where fire safety systems are substandard, such a conclusion might be justified.

But they are also tools for urban planning and evictions and thus reflect conflicts between different actors in the control and use of urban space, Jerome Tadie of the Institute for Development Research in France said.

Fires involve actors ranging from the government to the inhabitants and less formal intermediaries, he added.

National Police Headquarters' physics forensic investigator Adj. Comr. Darmawan said investigation results indicated a very small percentage of fires were caused by short circuits. This contrasts with Jakarta Fire Department data, according to which almost 70 percent of fires are caused by short circuits.

"We often run into problems investigating fires. The evidence may be incomplete because the building owners have already been in there, salvaging their belongings," Darmawan said

Of the 300 fires that are reported each year on average, less than half are investigated, while the cause of the others remains a mystery. "Fire is indeed an easy way to wipe out an area without being caught as the evidence literally goes up in smoke," he said.

Low-cost apartments in the city, for example, are almost always built on sites were squatter settlements were previously burned down.

International Human Rights Watch criticized in its September report the Jakarta administration for the significant number of cases of forced eviction in the city, including those allegedly involving arson.

The report cited Governor Sutiyoso as saying "these evictions are only to give the people a lesson to respect the law, as legal certainty is one of the major concerns of investors in the capital".

International human rights law, however, requires that all people are protected against forced eviction, regardless of the absence of land title deeds or legal occupancy.

Many people who occupy land in Jakarta do not enjoy the right to housing because it is not available to them or too costly, the report said.

Sociologist Imam Prasodjo said the city administration's focus on only the legal status of squatters or traders was exactly what prompted its "pragmatic" fire approach.

The approach is further justified as the process of acquiring land is often held up by middlemen who cause land values to rise.

"Despite being common knowledge, as long as there is no independent investigation of the cases, they will never be proven arson," he said.

 Aceh

Acehnese eager to vote but lack information - survey

Reuters - November 8, 2006

Ahmad Pathoni, Jakarta – Most people in Indonesia's tsunami-hit Aceh province want to vote in December's landmark elections but many wrongly believe they are not registered to do so, a survey released on Wednesday showed.

The ballot, the first ever direct vote for top posts in the province, is another milestone in efforts to permanently end a conflict that has killed 15,000 people since the Free Aceh Movement (GAM) launched a rebellion against Jakarta in 1976.

Fifty-six percent of 1,233 Acehnese questioned said they were very likely to vote in the Dec. 11 elections, with 33 percent saying they were somewhat likely to vote, a survey by IFES, an international group promoting democracy, showed.

But 68 percent said they did not have very much information about the election while 11 percent said they had no information.

Only 30 percent said they were registered to vote, while 68 percent believed they were not registered and two percent said they did not know.

The results suggested the election registration drive had used names supplied by village heads, and other residency lists, leaving individual voters unaware of their status, IFES said in a statement.

Rakesh Sharma, IFES research manager, said election officials would need to do more to inform voters about their registration. "Perception of registration status is important to determine how prepared people feel for the election," he said in the statement.

Separately at a news conference, the National Democratic Institute (NDI) said an independent audit showed 86.9 percent of an estimated 2.5 million eligible voters in Aceh were registered even though only two thirds of them were aware of that fact.

The chief of the NDI's operations in Indonesia, Paul Rowland, called the registration drive successful, given the fact many Acehnese had been displaced by the December 2004 Indian Ocean tsunami and the insurgency.

"There's no country in the world with 100 percent voters' registration. In a place where many people are displaced, this is a good result," he said.

A former general and a former separatist rebel are among eight candidates running for Aceh governor.

GAM and the Indonesian government signed a truce in August 2005 under Finnish mediation that paved the way for involvement of former rebels in local Aceh politics after they agreed to end their armed struggle for an independent state.

The Helsinki agreement came about after months of talks spurred by the tsunami that left around 170,000 Acehnese dead or missing.

Eight hopefuls declared eligible for Aceh gubernatorial race

Jakarta Post - November 7, 2006

Nani Afrida, Banda Aceh – Eight pairs of candidates are eligible to contest Aceh's Dec. 11 gubernatorial elections, the Aceh Independent Elections Commission declared Monday.

Among the hopefuls running for governor are a retired general and former head of the military district command and a former member of the rebel Free Aceh Movement (GAM).

Former Iskandar Muda Military Command head Maj. Gen. (ret) Djali Yusuf, and GAM's representative on the Aceh Monitoring Mission (AMM) Irwandi Yusuf are two candidates running on independent tickets.

Djali's running mate is Syauqas Rahmatillah, while the chairman of the GAM-affiliated Aceh Center for Referendum Information, Muhammad Nazar, will pair with Irwandi for the deputy governor's post.

Five other candidate pairs were nominated by national political parties.

These include Azwar Abubakar, the former caretaker governor of Aceh, endorsed by the National Mandate Party and the Prosperous Justice Party; and Regional Representatives Council legislator Malek Raden nominated by the Golkar Party, the Democrat Party, the Indonesian Democratic Party of Struggle and the small Indonesian Justice and Unity Party.

A Properous Justice Party lawmaker, Nasir Jamil, will contest the deputy post with Azwar.

Nine pairs of candidates had registered to run for the provincial election but the Aceh Independent Elections Commission has rejected the candidacy of Azwir and Ramidhin Syukur for "administrative reasons". The commission made no further explanation for the exclusion.

"All candidates have informally said they are ready to win and prepared to lose. Formally, we will soon organize an collective signed agreement for peaceful elections," commission head M. Jafar told Reuters. Official campaigning will not start until later this month.

Voting day will also see the Acehnese elect 19 regents and mayors across the tsunami-damanged province.

In a related development, the central government and GAM have agreed to increase the number of police in the province to anticipate potential unrest during the polls. A spokesperson with the AMM said 2,433 police would be deployed to maintain security during the elections.

Earlier, the head of a European Union team that will observe the elections said last week most of the candidates he had met were confident of winning. He said he was concerned that sore losers could cause trouble if their expectations were dashed.

General, rebel among candidates in Indonesia's Aceh

Reuters - November 6, 2006

Banda Aceh – A former Indonesian general and a separatist rebel are among eight candidates running for governor in the once- volatile province of Aceh next month, an election official said on Monday.

The poll, the first ever direct vote for top posts in the province, are a key stage in efforts to permanently end a conflict that has killed 15,000 people since the Free Aceh Movement (GAM) launched a rebellion against Jakarta in 1976.

The December 11 poll will also include votes to choose 19 regents and mayors across Aceh.

The warring parties signed a truce in August 2005 under Finnish mediation that paved the way for involvement of former separatists in local Aceh politics after they agreed to end their armed struggle for an independent state.

Irwandi Yusuf, GAM's representative in the body that currently monitors peace in Aceh and Djali Yusuf, a former general who led Indonesian troops in the province, are among three independent candidates in the race for governor. The other five running are endorsed by national Indonesian parties.

"All candidates have informally said they are ready to win and prepared to lose. Formally, we will soon organize a collective signing agreement on peaceful elections," the head of Aceh's election commission M. Jafar told Reuters.

The head of a European Union team that will observe the elections said last week most of the candidates he had met were so confident of winning that he was concerned sore losers could cause trouble if their expectations were dashed.

Campaigning is only supposed to start later this month, but candidates have tried to get an early start via media appearances and distributing election material across the province.

Former caretaker governor Azwar Abubakar, endorsed by two Muslim-based parties, is leading the pack in opinion polls.

The GAM vote base has been split between Irwandi and Ahmad Humam Hamid, the nominee from Indonesia's top Muslim party who has paired up on a ticket with GAM stalwart Hasbi Abdullah, who wants to become deputy governor.

Abdullah spent years in Indonesian jails after he helped his elder brother Zaini flee Indonesia in the late 1970s. Zaini Abdullah is GAM's self-styled foreign minister.

The Helsinki agreement came about after months of talks spurred by the December 26, 2004 Indian Ocean tsunami that left around 170,000 Acehnese dead or missing.

With elections drawing near, many in Banda Aceh unregistered

Jakarta Post - November 4, 2006

Nani Afrida, Banda Aceh – Aceh's first-ever direct elections are scheduled for December, yet many eligible voters may be unable to cast ballots because they have not registered.

Provincial capital Banda Aceh is home to the highest number of eligible voters for next month's elections, which will see races for governor, regents and mayors, but only about 60 percent have registered, according to data collected by Jurdil Aceh, a provincial election monitoring network.

An official with Jurdil Aceh, T. Ardiansyah, said Friday that 479 volunteers had been deployed to 384 villages in 21 regencies/cities to gather information on the registration of voters. He said 6,834 people were interviewed by the volunteers.

Ardiansyah said in Banda Aceh, the main problem with registering voters was that many were not at home when registration officials came to their houses. "But there are also many people who are apathetic and indifferent about the election. They just don't care," he said.

He said his network also found many people in the province were unaware of whether or not they had already been registered to vote. "Even the head of the Independent Aceh Election Commission (KIP), Jafar, is not aware whether or not he has been registered," Ardiansyah said.

Even though in Banda Aceh up to 40 percent of eligible voters have not been registered, Jurdil Aceh said that overall up to 86.9 percent of eligible voters across the province were registered. "This shows that the elections organizing committee is meeting the people's right to vote," he said.

However, he acknowledged obstacles remained to ensuring the elections were a success, including ghost voters and possible disputes over the results.

Mahdi Syahbandar, the head of a voter registration working group, said the KIP should look into Jurdil's findings. "We will ask KIP representatives at the regency level to follow up on the findings. We still have time before the Nov. 8 deadline to register voters," he said.

The KIP is still verifying that all candidates in the elections have met administrative requirements. This process is expected to be completed Monday, with an announcement of the official list of candidates.

Eleven candidates registered with the KIP, but three have been dropped because they failed a mandatory test on reciting the Koran.

EU mission upbeat Aceh poll to be peaceful

Jakarta Post - November 3, 2006

Ridwan Max Sijabat and Nani Afrida, Jakarta/Banda Aceh – The European Union election monitoring mission is upbeat Aceh's first direct elections, scheduled for December, will proceed peacefully.

Glyn Ford and his eight-member entourage have been in Aceh since Oct. 31 meeting with officials, including Vice President Jusuf Kalla and staff from the Independent Aceh Election Commission (KIP). Ford said he had many reasons to be optimistic about the upcoming elections.

"Present day Achenese society is dramatically different from two years ago. Following the devastating tsunami in 2004 and the signing (on Aug. 15, 2005) of the peace pact, the security situation in Aceh has improved and all Acehnese have cooperated to make the local elections a success, in order to form a democratic government," he said at a press conference in Jakarta on Thursday.

The elections to simultaneously elect a governor and 19 regents and mayors are the last chance to build peace and end the bloody 25-year conflict, said Ford, a British member of the European Parliament. "And it will be unlikely for Aceh to have another such opportunity in the next 25 years if the elections fail."

"The situation in Aceh has been conducive with the Acehnese people pinning their hopes for a better future (on the elections)," he said. However, he warned conflicts might arise after the elections.

Agung P., a researcher from Banda Aceh, expressed a more pessimistic view, saying violence might occur during the elections. One indication, he said, is that the KIP has yet to complete voter registration and other election preparations, but candidates have already been engaging in early campaigning, using pamphlets, banners and inflammatory speeches during the beginning of the recent fasting month.

A new survey conducted by the International Foundation for Election Systems (IFES) shows a majority of Acehnese fear violence during the elections because of the lack of information.

Ford said the European Union Election Observation Mission would work independently and report on any conflicts and violations in the field.

"We have 80 observers who will be deployed to all 21 regencies and municipalities, but we don't expect any conflicts to occur during the elections. Our main mission is to monitor the elections and to convince unsuccessful candidates that they lost in a fair, democratic process," he said.

Besides international observers from the EU, Japan and ASEAN, local election supervision agencies have been invited by the government and the KIP to monitor the elections.

KIP chairman Ikhwannusufa said in Banda Aceh the registration of foreign and domestic monitoring agencies opened Sept. 18 and would close Nov. 22. They are required to meet all administrative requirements and comply with all rules set down by officials.

"Before reporting to the official election monitoring committee, all observers are required to coordinate with the KIP if they find violations during any phase of the elections," he said.

 West Papua

Wife of murdered American at Freeport speaks out

Radio Australia - November 8, 2006

The wife of an American man murdered in Indonesia's troubled Papua province four years ago says she's satisfied justice has been done in the trial which ended this week. Patsy Spier lost her husband Ricky and two close friends in the 2002 attack. The highly politicised case raised questions over the possible involvement of Indonesia's military.

Presenter/Interviewer: Karon Snowdon

Speakers: Patsy Spier, who's husband Rick died in the Timika ambush at Freeport

Snowdon: The leader of the gang on trial for the attack at Movement, received a life sentence. Six accomplices received lesser terms ranging from 18 months to seven years. They were found guilty of the murders of 3 teachers and the serious wounding of 4 other people in the shooting ambush on the road to the Freeport gold and copper mine in 2002.

Accusations had swirled around the case from the outset, that the Indonesian military had ordered the attack to bolster their role in security for the mine. Or alternatively that armed Papuan separatists mistook the convoy of trucks for one belonging to the military. Patsy Spier was present at the trial and believes the right people were convicted.

Spier: Absolutely yes. On the evidence that was presented in court, absolutely.

Snowdon: Does this case leave any questions unanswered for you though?

Spier: The defence had their opportunity to bring any counter information that was with the evidence and they didn't do it, so no there aren't any other unanswered questions for these seven defendants.

Snowdon: And do you think all the questions around the case have been are answered satisfactorily? Of course it was shrouded in controversy when there were accusations made that the Indonesian military was involved either directly or indirectly. What's your view of that?

Spier: That's why I pursued this so intensely from the beginning was to find out who was responsible for this, that was the job of the investigators. And we brought it to the court and if there was information out there on anyone being involved in this ambush this was the time to bring it. Everything possible was done to the letter of the law here and the defence team and the defendants chose not to participate, that was their choice.

Snowdon: As our reporter Geoff Thompson reported from outside the court, the accused and their lawyers, including Janses Sihaloho, boycotted much of the trial stayed away when the verdicts were read out.

Sihaloho (translation): They are scapegoat victims of American and Indonesian Governments. On one side the American Government was pressured by their Congress and Senate"... "And on the other side the Indonesian Government wanted to reactivate military ties with the United States, so once they could say the perpetrators are civilians and not the Indonesian military, the military ties are back on track".

Snowdon: At first unhappy with the Indonesian investigation, Patsy Spier was instrumental in getting the FBI involved and in delaying the renewal of military links between the US and Indonesia, which eventually resumed last year.

Spier: I'm very aware of the documented atrocities the Indonesian military are accused of and that's why it was so important for me to be here to be an advocate for both the defendants and the victims of this crime to make sure that this was a transparent and credible trial.

Snowdon: And you're completely happy with that even given the military's reputation for silencing witnesses through threat and intimidation?

Spier: That was not happening in that courtroom. These were individuals who chose to open fire into five vehicles and there was no return fire at all none of us had weapons.

Snowdon: And do have a better understanding now of why this happened of why this attack took place?

Spier: We were not the intended target.

Snowdon: Who was?

Spier: According to Antonius Wamang he thought he was shooting into the Indonesian military vehicles. But then we became the inrtended targets because he continued to shoot into our vehicles for 35 minutes. What happened to us was not the fault of the Papuans or Indonesians. It was individuals who made a choice that day and Antonius Wamang is being held accountable for that.

Snowdon: Do you have a point of view of the struggle that led to this unfortunate incident, I guess is one way to put it?

Spier: I'm very aware of the Papuan struggle, yes.

Snowdon: And what's your view of it?

Spier: I hope that more information can come out of what is happening in Papua. I have no doubt that the Papuan people wanted justice to happen from this case. This has to be focussed on, this is a murder case if there was more to this story it was the responsibility of the defence team to bring it out, they chose not to and I have to believe that there was nothing else.

Papuans jailed for murder of Americans, Indonesian

Reuters - November 7, 2006

Achmad Sukarsono, Jakarta – A Papuan separatist received a life sentence on Tuesday and six others were handed shorter jail terms for the murder of two Americans and an Indonesian four years ago near a massive US-operated mining complex.

Antonius Wamang and six other defendants had been on trial since July on charges that carried a maximum penalty of death over the attack, which strained Washington-Jakarta relations. Wamang's two main accomplices were sentenced to seven years each while the four others got 18 months as accessories.

The defendants, who consistently protested against the legitimacy of the trial, had walked out of the courtroom and returned to their holding cells before Andriani Nurdin, head of a three-judge panel, read the verdict on Wamang.

"The panel decides to declare (Wamang) guilty of carrying out pre-meditated murder and heavy battery," Nurdin said. Another judge said Wamang's crime was a gross human rights violation and he had shown no remorse.

The verdicts were greeted with angry shouts from scores of supporters of the defendants in the packed courtroom. Ahead of the verdicts they had yelled "SBY, Puppet of America" – referring to Indonesian President Susilo Bambang Yudhoyono – and "Free the Seven Papuans."

But American Patsy Spier, who was wounded and widowed in the ambush, said in a statement she was convinced the verdict was correct.

"I truthfully testified in the proceedings about the attack and how it has affected me," said Spier, who lobbied hard for authorities to investigate and prosecute what she called "a brutal and unprovoked assault."

"I also believe that the sentence of life imprisonment for Antonius Wamang and the sentences for the other defendants are fully warranted and just," she said.

Teachers killed

Those killed were teachers from a school for children of US- based Freeport-McMoRan Copper & Gold Inc.

A Freeport unit runs the lucrative Grasberg mining complex, believed to have the world's third-largest copper reserves and one of the biggest gold deposits, in Indonesia's easternmost province of Papua.

The incident sparked suspicions the Indonesian military was involved, and prompted Washington to demand Jakarta prosecute those behind the killings if it wanted resumption of military ties, severed in the 1990s over Indonesian actions in East Timor.

Tension cooled after Indonesia allowed US investigators into Papua and suspects were arrested and charged.

The prosecution said Wamang and other gunmen were near the mine in late August 2002 to attack Indonesian soldiers who were part of its security detail.

Wamang allegedly thought white cars passing through the mining area carried troops and decided to open fire. In fact, the two vehicles were transporting Americans and Indonesians who worked for the Freeport-run school.

Three people were killed in the initial shooting and four others seriously injured, prosecutors said. The gunmen then shot at three trucks, wounding the drivers of each vehicle.

Washington restored military ties last year with Indonesia, the world's most populous Muslim nation, after expressing satisfaction with cooperation in the Papua case and as a reward for its help in the US-led war on terrorism.

[With additional reporting by Jerry Norton.]

Papua a dangerous trouble spot from any standpoint

Sydney Morning Herald - November 4, 2006

Hamish McDonald – With the near Pacific going pear-shaped on just about every front for Canberra, let us take a look at the crisis that kicked off the year, the Indonesian province of Papua.

It is undoubtedly the most intractable and immediately dangerous of the Melanesian trouble spots, with the risk of drawing us into tension, and even conflict, with our biggest neighbour, Indonesia.

Two new publications on Papua, each by alumni of Australian intelligence outfits, have just arrived, approaching it from very different standpoints. Rodd McGibbon is a former analyst at the Office of National Assessments who spent six years in Jakarta with aid agencies. Now at the Australian National University, he has published a paper called "Pitfalls of Papua" for the Lowy Institute.

Clinton Fernandes is a former Australian Army intelligence officer, now lecturing at the Australian Defence Force Academy in Canberra. His Reluctant Indonesians has been published by Scribe Short Books.

McGibbon puts Papua in the context of an overriding strategic importance for Australia to maintain friendly ties with Indonesia. As Papua is part of the founding Indonesian dream, and immensely resource rich as well, any Australian move against Jakarta's sovereignty there would bring dire consequences, of which we got a taste when Indonesia recalled its ambassador after Australia gave political asylum to 42 Papuans.

Pursuing what he sees as the "unrealistic" and "utopian" notion of Papuan independence would put Canberra out on the political limb, where we were before 1962, when Robert Menzies supported the Dutch efforts to keep Papua out of Indonesia.

Fernandes sees Papua as one who has studied Indonesia, but saw its worst side in the militia atrocities run by the Indonesian army, the TNI, to try to stop East Timor's independence. He sees some of the worst TNI characters reappearing on the Papuan scene.

He also worries about getting stuck on a political limb. This is the limb that Canberra found itself on for 24 years, supporting Jakarta's claims to East Timor and trying to play down the endless stream of atrocities going on there.

McGibbon is dubious about the validity of Papuan nationalism, based on a perceived ethnic difference to other Indonesians. "It is unlikely that Papuan sentiment would have developed in these directions if it were not for the effects of Dutch colonial policy," he says.

But he admits it has deepened and spread far beyond the small elite raised by the Dutch, as a result of army brutality, lopsided development, rape of resources, and the influx of vast numbers of settlers from Java and Sulawesi.

Efforts by the post-Soeharto civilian presidents B.J. Habibie and Abdurrahman Wahid to give the Papuans a special autonomy package, including a Papuan assembly, were undercut before delivery by the next president, Megawati Soekarnoputri.

The current president, Susilo Bambang Yudhoyono, has tried to restore the Wahid reforms, but Papua remains split into two provinces under Megawati's treacherous divide-and-rule scheme, with more violence this year.

McGibbon's book has inspired some conservative comment here that Australians should stop raising more false hopes among the Papuans. He thinks Australia's leaders should try harder to get us to appreciate Indonesia more, understand Papua's place in that country, and thereby "neutralise" this explosive issue in relations.

Yet he also admits Indonesia's policies will be the key factor in whether the Papuans are reconciled. From all he and Fernandes describe, Papuan nationalism has a dynamic largely independent of the ragged support given from here. Barring a bolt from the blue like Habibie's sudden decision amid economic collapse to give East Timor a plebiscite, or the tsunami that led to Aceh peace, the Papuan situation is probably beyond any quick solution.

The Papuans are unhappy, yet their neighbours like Papua New Guinea and the Solomons are hardly an advertisement for independence. Even Fernandes, whom McGibbon lists among the utopian independence crowd, leans to the halfway house. He ponders the much used Malay word "merdeka" – usually translated as political "independence" and drawing a heavy response from the TNI when Papuans use it.

Some anthropologists think "merdeka" is more complex for Papuans, and includes emancipation from oppression and harmony between the past and the present. Fernandes thinks this points towards "new systems of governance based on indigenous modes of authority that ought to be achievable without separating from Indonesia". It's a train of thought worth pursuing in a world where sovereignty and separatism so often clash with bloody results.

Papua defendants refuse to enter plea

Jakarta Post - November 1, 2006

Ary Hermawan, Jakarta – Seven Papuans arrested over the 2002 killings of two Americans and their Indonesian colleague in Papua declined to enter a plea of not guilty Tuesday, saying they were victims of a political deal between Jakarta and Washington.

"We agree to go on with the trial as long as it is not based on the interests of Indonesia and the US," defendant Ishaq Onawame told presiding judge Andriani Nurdin from the visitor's seats. "We are innocent. It is the state's fault," he added.

Andriani said she accepted the decision made by the defendants and announced that the verdict would be read out on Nov. 7.

Prosecutors had earlier demanded the Central Jakarta District Court sentence alleged ringleader Antonius Wamang to 20 years in prison for leading an attack on a convoy carrying PT Freeport Indonesia employees near the company's gold mine in Timika in 2002.

Americans Ricky Lynn Spier, 44, and Edwin Leon Burgen, 71, and Indonesian FX Bambang Riwanto died in the attack.

Prosecutors sought 15 years' jail for Agustinus Anggaibak and Yulianus Deikme for taking part in the shooting and eight years' jail for Ishak Onawame, Esau Onawame, Hardi Sugumol and Yairus Kiwak for assisting Antonius Wamang with logistics.

The seven Papuans have been boycotting the trial since they were indicted, insisting they be tried in Papua. They came to the courtroom but refused to be seated in defendants' seats.

They also asked the court to send Hardi Tsugumol, who has been ill, to Papua for traditional treatment. Hardi has already missed several trials. The prosecutors said they had tried to take Hardi to the police hospital but he had refused to go.

Defense team lawyer Johnson Panjaitan said the trial was "a disgrace" and "degraded the dignity" of the Indonesian judiciary. He said he had not prepared any defense as he no longer had any hope the trial would be fair.

"I know that my client will be punished," he said. "This trial is a hoax." He said he had prepared documents to appeal next week's verdict.

Papuan protesters attending the court erupted after judge Andriani left the court room, yelling "the Indonesian court is rotten" and "the law in this country is dead".

They accused the Indonesian military of being responsible for the attack and demanded that the government stop PT Freeport Indonesia's operations in Papua. The military have denied any involvement in the attack.

Johnson said he believed the trial was part of the Indonesian government's efforts to restore military cooperation with the United States, which was damaged by the deaths of the two American nationals.

Patsy Spier, the widow of Ricky Lynn Spier, calmly took notes throughout the proceedings. She said she was determined to stay in Jakarta for the length of the trial.

 Human rights/law

Indonesia to fight modern slave trade with new laws

Jakarta Post November 6, 2006

Jakarta – A senior Indonesian minister has promised the country will introduce new get-tough measures on human traffickers.

State Minister for Women's Empowerment Meutia F. Hatta told John R. Miller, the director of the US State Department's Office to Monitor and Combat Trafficking in Persons, that Indonesia hoped to pass an anti-trafficking bill currently being debated in the House of Representatives into law by the end of the year.

"We have drafted legislation that will allow harsh punishments for traffickers such as deceitful agents, rapists and corrupt state personnel," Meutia said Saturday.

Meutia and Miller, who is visiting Indonesia at the moment, visited Soekanto Police Hospital in East Jakarta. The hospital runs a clinic for the victims of trafficking, usually women and children, that is financially assisted by the US.

Indonesia is a well-known source, transit and destination country for trafficking. Men, women and children are traded for sexual exploitation and forced labor. Victims are sent to countries including Malaysia, Saudi Arabia, Kuwait, the United Arab Emirates, Hong Kong, Taiwan, Japan, South Korea and Singapore.

Many Indonesian women who go overseas to work as domestic helpers are subjected to exploitation and involuntary servitude, while an unknown number of child domestic workers face forced labor.

Meutia said it was hard for the ministry to trace the exact number of victims who had traveled abroad to work legally or illegally, as domestic helpers or sex workers. "Many of our registered workers in Saudi Arabia, for example, have been transferred to Syria without notification," she added.

The lack of available statistics has meant the crime has long been underestimated by Indonesia.

Meutia sees the legislation as a step forward in the fight against modern slavery in Indonesia. "Trafficking is something that we have to stop. The bill should be passed as quickly as possible, hopefully by the end of the year," said Miller.

Forty-one countries signed in comprehensive laws on trafficking last year, while the US has had such legislation for six years.

"We give tough sanctions. Why not? They were involved in deceiving, raping and beating. The last two convicts were sentenced to 55 years in prison," said Miller.

Miller, who came to observe the victim assistance clinic in the hospital ward, said that the ward would serve as a model for the US, which is yet to develop a similar public facility.

The Recovery Center for Victims of Human Trafficking, which does not charge its patients, receives money from both the Indonesian and the US governments.

The facility, also available in Surabaya, East Java, Makassar, South Sulawesi and Pontianak, West Kalimantan, has given comprehensive medical and psychological treatment to over 1,300 victims of both internal and cross-border trafficking.

"The US is starting to develop education programs in order to change the attitudes of American men on the issue," he said.

Women and children, who are frequently subjected to physical, psychological and sexual abuse, make up 80 percent of victims worldwide. Several factors, such as poverty, exploitative agents and corrupt officials, contribute to trafficking.

"Those workers usually come from underdeveloped countries and go to developed countries," said Miller, who is also the senior advisor to US Secretary of State Condoleezza Rice on human trafficking.

Government to evaluate discriminatory bylaws

Jakarta Post - November 2, 2006

Ary Hermawan, Jakarta – Breaking a long silence on the issue, the Justice and Human Rights Ministry promised Wednesday to review regional bylaws accused of discriminating against minority groups.

Justice and Human Rights Minister Hamid Awaluddin said he would coordinate with the Home Affairs Ministry, which has repeatedly promised to look over the bylaws.

"We will go over the legal construction, the design and the format of these ordinances, so that there will be no bylaws in conflict with the Constitution," he told reporters.

Minority groups have demanded that the government revoke sharia- inspired ordinances already adopted in more than a dozen regencies and mayoralties. Critics have warned that the ordinances endanger the integrity of multicultural and multireligious Indonesia.

An anti-prostitution bylaw enacted by Tangerang regency in 2005 sparked protest after a woman was labeled a prostitute for being out on the street alone at night. Regions such as South Sulawesi and Nanggroe Aceh Darussalam have adopted bylaws requiring state officials to be able to read Arabic.

Activists from Arus Pelangi, a non-governmental organization that promotes the rights of homosexuals and transvestites, protested at the Justice and Human Rights Ministry in September. They claimed their members had been discriminated against and harassed under the local laws.

The group listed at least 28 bylaws it deemed discriminatory, one of which specifically outlawed gays and lesbians. The anti- prostitution bylaw issued by the Palembang mayoralty in 2004 defined prostitution to include homosexuality, lesbianism, sodomy, sexual harassment and "other pornographic acts."

Hamid said his ministry would set a human rights standard for regional ordinances in line with the 2004 law on regional bylaws. "We will evaluate the enacted bylaws to see if their substance is against human rights," he said.

The review, he added, would be carried by officials at the provincial legal and human rights offices. He said the officials would be more proactive in supervising the deliberation of regional ordinances.

The ministry also plans to hold workshops in the regions in December with local officials and regional councillors who are involved in drafting regional bylaws.

"We are forming an evaluation team. We know that the heads of legal divisions at the provincial offices are the ones who should be more proactive in evaluating regional bylaws," Hamid said.

Police wary of UN rapporteur in Munir probe

Jakarta Post - November 1, 2006

Jakarta – The National Police said Tuesday that they would not allow a United Nations representative to take part in the investigation of the murder of human rights campaigner Munir, despite it being an international case.

It is not clear whether the decision could mean that Philip Alston, the UN special rapporteur on extrajudicial killings, will be denied entry to Indonesia. National Police chief Gen. Sutanto said that the UN's involvement was out of the question because it would undermine the country's law enforcement process.

"This is our sovereignty... we want no foreigners interfering in the process," he said at police headquarters. He said assistance would be preferred in the form of technical aid, such as DNA testing.

Alston's announcement that he would press Jakarta to refresh the investigation came after his meeting with Munir's widow, Suciwati, in Washington two weeks ago. Suciwati traveled to the US for 10 days US to seek support from international human rights bodies and Congress. Alston said he planned to come to Indonesia after writing to President Yudhoyono for approval.

The police have said they are now working to gather new evidence, although they have not said what they are looking for.

Munir died aboard a Garuda Indonesia flight to Amsterdam on Sept. 7, 2004. An autopsy found an excessive level of arsenic in his body.

The initial investigation lead to allegations that officials at the State Intelligence Agency (BIN) were involved. Only one person has ever been arrested, Garuda pilot Pollycarpus Budihari Priyanto.

Pollycarpus was originally sentenced to 14 years in prison for forging papers and the murder of Munir. The sentence was recently reduced to two years by the Supreme Court, which upheld the forgery charge but quashed the murder conviction, amid much controversy.

During her trip to the US, Suciwati received an award from non-governmental organization Human Rights First and spoke about her husband's murder. She also met with several US Congressmen, who, according Usman Hamid, an activist friend of Suciwati and Munir, said they would push Congress to consider the murder.

Foreign Minister Hassan Wirayuda recently said that such statements would not affect Indonesia's international position or its relationship with the US.

Munir was an outspoken critic of the military, and at the time of his death had been speaking out about corruption at the Coordinating Ministry for Political and Security Affairs while the President, then the coordinating minister, had been in charge.

He also defended the victims of human rights violations and set up the independent National Commission for Missing Persons and Victims of Violence.

President Yudhoyono, who set up a fact-finding team to investigate Munir's murder, publicly promised that he would ensure that the perpetrators were brought to justice, but has remained silent since the Supreme Court issued its controversial verdict.

Indonesia rejects activist death inquiry

Associated Press - November 1, 2006

The defence minister has rejected calls for a UN inquiry into the death of Indonesia's leading human rights activist, following the acquittal of the only suspect in the poisoning.

Munir Said Thalib, who gained a reputation for exposing abuses by the Indonesian military in the late 1990s, was given a massive overdose of arsenic on a flight from Jakarta to Amsterdam in 2004.

His widow, who suspects the involvement of state intelligence in the murder, met with UN Special Rapporteur Philip Alston in New York last month, asking that he take over the investigation.

Defence Minister Juwono Sudarsono rejected the proposal. "We don't need international intervention," he said, adding that United Nations, foreign governments and human rights groups were welcome to express concern or offer advice about the case. "But our own legal system can handle this."

Munir became violently ill and died two hours before landing at Schipol International Airport. An off-duty pilot with the Garuda national carrier, Pollycarpus Budihari Priyanto, was accused of lacing his food with arsenic, but the Supreme Court threw out the charges last month, saying there was insufficient evidence.

The case attracted international attention, with the US House of Representatives and the European Union parliament among those calling for justice.

It is seen as a key test of whether the government of President Susilo Bambang Yudhoyono can break with the traditions of Suharto, the dictator who ruled Indonesia for 32 years until democracy riots forced him to resign in 1998.

State-sponsored killings were common during Suharto's regime and few were ever punished.

Rights groups have called on authorities to release the conclusions of a fact-finding commission that determined Priyanto had contact with an agent from Indonesia's intelligence agency. That information never surfaced in court.

 Labour issues

Freeport, Kiani deny firing unionists

Jakarta Post - November 2, 2006

Ridwan Max Sijabat, Jakarta – Miner PT Freeport McMoran Indonesia and pulp and paper company PT Kiani Kertas have denied a labor union's claim they intimidated or dismissed workers who tried to organize.

The two firms are among 18 companies and two police precincts reported recently to Manpower and Transmigration Minister Erman Suparno by the Confederation of Prosperous Indonesian Labor Unions (KSBSI) for their allegedly illegal anti-union behavior.

Kiani Kertas spokesman Sukijo confirmed security authorities in Tanjung Redep, East Kalimantan, had deployed 63 Police Mobile Brigade officers to secure the company premises. The move followed a rally to protest the management's rejection of the recent establishment of a new KSBSI union at the company.

"We have vital assets and we don't want the labor unrest to disrupt operations. We need the security officers to ensure the operation will continue," he told The Jakarta Post by phone.

More than 100 workers staged a demonstration Monday to protest the management's rejection of the union at the company and the dismissal of seven activists.

However, Sukijo said no unionists had ever been dismissed from the factory. The management had never intimidated or dismissed workers who wanted to set up a union, he said. "The workers have the right to unionize but they are required to comply with the law in exercising their rights," he said.

A majority of more than 1,300 workers employed in the factory and its industrial forests have joined the forestry sector Confederation of All-Indonesian Workers Unions (KSPSI), which has been the single partner with the management in negotiations to review their collective contracts.

PT Freeport spokesman Mindo Pangaribuan said management had never prohibited employees from setting up unions. The company had involved the KSPSI in negotiations to renew collective labor agreements, he said.

Freeport, a United States-based copper and gold mining company, employs more than 9,000 Indonesian and foreign workers at its Grassberg mine in Timika, Papua. The union has also brought the cases to the labor court.

Law No. 21/2001 on workers and labor unions prohibits the management from intimidating and dismissing workers for their activism. It carries a maximum five-year jail sentence and a maximum fine of Rp 500 million against individuals or corporations violating the law.

The Indonesian Employers' Association (Apindo) confirmed it had received many complaints from labor unions about employers rejecting the establishment of new unions in their companies. Apindo secretary general Djimanto, however, said union leaders often confused legitimate dismissals with unlawful ones.

Recent cases of workers' rights violations as reported by KSBSI

No. Company Location Victim

  1. PT Freeport McMoran Timika, Papua 1 unionist dismissed
  2. PT Dahana, Berau E. Kalimantan unionists transferred
  3. PT Pangan Sari Utama Sorong, Papua 98 workers intimidated Security authorities Pasir regency unionists intimidated
  4. PT Rukun Tripilar West Java unionists dismissed Army officials Pasuruan intimidation
  5. PT S-4 Dumai Riau intimidation Perum PPD Jakarta 3,000 members intimidated, unpaid
  6. PT Mayasari Bhakti Jakarta 7 unionists laid off
  7. PT Mitra Surya Eratama Tangerang 40 workers dismissed
  8. PT Inti Kimiatama Perkasa Medan 3 unionists dismissed
  9. PT Milan Indotex Jakarta unionists not registered with Jamsostek
  10. PT Meindo Elang Indah Balikpapan SBSI units excluded from collective bargaining
  11. PT Sumatra Sarana Sekar Sakti Medan rejection by management of SBSI unit
  12. PT Bara Jaya Utama E. Kalimantan Workers intimidated by hoodlums
  13. PT Karet Alam Aceh unionist dismissed CV Salute, Sukoharjo C. Java nine unionist reprimanded
  14. PT Inti Kimiatama Medan rejection of SBSI Berau Police E. Kalimantan unionists intimidated
  15. PT Kiani Kertas E. Kalimantan seven unionists dismissed

Source: SBSI

Reebok workers fear layoffs

Jakarta Post - November 2, 2006

Tangerang – A total of 6,500 employees of PT Dong Joe Indonesia, which produces Reebok sports apparel, have been out of work since the factory owners fled to their home country, Korea.

"Production ground to a halt, though the workers have received no notice of their dismissal," Hasdanil, the head of Tangerang municipality's manpower agency, was quoted as saying by Tempointeraktif news portal Wednesday.

Hasdanil said the closure of the factory on Jl. Raya Rajeg, Pasar Kemis, would not only affect the 6,500 workers, but also thousands of others working at PT Dong Joe's sister companies shoe producer Spotec and ceramics producer Hankook Keramik.

M. Marbun, the head of the agency division that monitors workplace ethics, believes the owners fled to avoid making severance payments.

"The company's managers said there were no indications of bankruptcy," he said.

 Government/civil service

Yudhoyono risks backlash over wavering graft fight: experts

Agence France Presse - November 6, 2006

P. Parameswaran, Washington – Indonesian President Susilo Bambang Yudhoyono risks political backlash for failing to go after "big fish" under a promised anti-graft drive that propelled him to office, local and international experts say.

Yudhoyono was elected in September 2004 in large part because of his promises to improve governance and fight graft, and appears to have designated the independent commission for the eradication of corruption, or KPK, as his proxy in the battle against the scourge.

But a soon-to-be-released stocktaking report by US, European and Indonesian experts on Yudhoyono's anti-graft initiatives questioned whether they could produce a significant and lasting decline in the level of graft in Indonesia.

"There also is a risk that the government and KPK's anti- corruption initiatives will provoke a political backlash or public disappointment – or both," warned the report.

Part of its findings were cited at a conference organised by the United States-Indonesia Society (USINDO) in Washington.

"On KPK, questions (have been) raised recently by almost everyone in the civil society because when it comes to corruption in high-ranking officials, it stops there," Indonesian legal expert Frans Winarta told the conference.

"It is workable only for those who have no political power, this is really disappointing and I call this situation discriminating law enforcement," he said. "This has to be changed."

Bivitri Susanti of the Center for Indonesian Law and Policy Studies told participants that foreign donors should help empower civil society in cracking down on corruption.

She said donors channelled funds directly to state institutions "without empowering the civil society which actually has a very big role in monitoring the reform process."

The report evaluating Yudhoyono's anti-corruption efforts, to be released in full next month, said "the credibility" of anti- corruption efforts in Indonesia "could be undermined by the appearance of partisanship and/or selectivity."

It warned that "the failure of anti-corruption efforts to punish 'big fish' or to improve the availability or quality of public services could fuel public frustration and cynicism."

The report acknowledged that the number of anti-corruption prosecutions had increased under Yudhoyono, continuing a trend since 2001, and that these punitive measures sent the message that "corruption is not risk-free."

But "to date, there has been only limited action taken against those at the apex of power in Indonesia, namely politicians and generals who currently hold high level positions in the national government, political parties or military," the report said.

It questioned the "notable" absence of any explicit emphasis on investigating and prosecuting corruption by former president Suharto and his family and close associates – despite continued calls to do so from civil society.

Indonesia has an endemic corruption problem and was on Monday ranked 130 – together with Zimbabwe – out of 163 nations on anti-corruption watchdog Transparency International's global corruption perception index for 2006. Last year, it was ranked 137 out of 158 nations.

Indonesia's judicial system also has been tarnished by several high profile cases, including the early release last month from jail of a son of former Indonesian strongman Suharto convicted for paying a hitman to kill a judge.

In another controversial decision last month, a three-member Supreme Court panel overturned a guilty verdict on a pilot, linked to influential figures, convicted of murdering a leading human rights activist.

Golkar 'won't withdraw support'

Jakarta Post - November 6, 2006

Ridwan Max Sijabat, Jakarta – The threat by Golkar Party politicians to withdraw support for the government in protest over the establishment of a controversial advisory team is a bluff, analysts say.

Arbi Sanit and Burhan Effendy, political analysts from the University of Indonesia and the State Islamic University respectively, said Golkar would maintain its politicians in President Susilo Yudhoyono's Cabinet until their term expired in 2009.

"Golkar politicians are making a lot of noise with the aim of forcing President Yudhoyono to reshuffle the Cabinet in the hope that Golkar could place more of its politicians there," Burhan said.

Golkar politicians have been angered by Yudhoyono's establishment of the Presidential Unit for Management of Reform Programs (UKP3R) without consultation with Golkar leader and Vice President Jusuf Kalla.

Marsillam Simanjuntak, who chairs the team, is a seasoned administrator and Golkar critic.

Presidential spokesman Andi Mallarangeng told The Jakarta Post Sunday the President's new team continued to work. Andi denied reports the team's activities had been frozen after Kalla openly expressed his objection to it on Friday.

Andi said last Friday's meeting between Yudhoyono and Kalla at the state palace did not decide to dismantle the new unit. "(The unit) is still working, and I need to stress again that the unit, whatever it functions for, does not overlap with the (powers of) Cabinet," he said.

The new unit could be disbanded when the law on the presidential board of advisors is passed, but that decision would depend on the President's decision, Andi said.

Yudhoyono is scheduled to hold a Cabinet meeting Monday, but it was unclear if the unit's head, Marsillam Simanjuntak, would attend as mandated by the presidential decree establishing the team. Marsillam was not available for comment.

Burhan predicted that a problem may occur in 2008 when Kalla runs for president and challenges Yudhoyono, who will likely seek a second term. Arbi doubts the effectiveness of the newly established team.

"We have already had countless new institutions but they are ineffective. The President should know that the main problem is not the need for new institutions but the way he leads the nation. The President has talked too much and held too many meetings but moved too slowly and had no courage to take concrete actions to solve major problems the nation is facing," he said.

Golkar legislator Yudhi Chrisnandi, a confidante of Kalla, warned that unless Yudhoyono canceled the team, Golkar could withdraw its support for the government and become an opposition party.

"The issue will be raised in the Golkar leadership meeting on Nov. 13-16. So far 16 Golkar chapters have filed a protest about the special team's establishment," he said.

Among other senior Golkar officials disappointed with the establishment of the team is deputy chairman Agung Laksono, who is also House speaker.

Putting a different slant on the issue, Golkar legislator Akil Mochtar said that only Kalla confidantes were disappointed with the establishment of the team but not Golkar politicians from other camps. "Golkar will not drop its support for the government,"' he asserted.

SBY-Kalla rift bursts into open

Jakarta Post - November 4, 2006

Tony Hotland, Jakarta – Vice President Jusuf Kalla made sure on Friday that no one, including President Susilo Bambang Yudhoyono, could defy him without risking a political scandal.

If both men have managed to keep previous disagreements under the rug, the recent furor over Yudhoyono's creation of a new working unit to monitor his programs may be an indication that the two have not been getting along well.

Kalla said Friday he had convinced Yudhoyono that the new working unit was not necessary.

"I and the President agree that the Cabinet already has a built- in system of coordination. I will coordinate the implementation of programs, the details of them, and the ministers will do the rest. There's no need to have more people doing that," he said after opening a Golkar Party convention.

Yudhoyono established his working unit less than two months ago to monitor, control and accelerate his programs. The unit is concentrating on state-owned enterprises, small and medium-sized firms, law enforcement, increasing investment and improving the bureaucracy.

The first sign of scandal was when Yudhoyono floated the idea earlier this year. Kalla was on a trip to Japan. When journalists asked him about the plan, he knew nothing about it.

In the early days, both leaders agreed that Kalla was to focus more on economic issues and Yudhoyono on security and political matters. Some political observers see the creation of the team as an effort by Yudhoyono to encroach on Kalla's domain.

When the team's head, Marsillam Simanjuntak, joined a Cabinet meeting for the first time last week, Kalla also happened to be out of town. The scandal grew as analysts concluded the new unit, which works under the President's direct supervision, only created more layers of bureaucracy and overlapping assignments.

Worse, the decree that established the team said the President was assisted by the Vice President in creating it, which was not the case.

Golkar has warned it could withdraw its support from Yudhoyono, saying he had disrespected their chairman and that the people chosen for the effort were not of good quality.

Marsillam is not a Golkar member, while the unit's first deputy, Lt. Gen. (ret) Agus Widjojo, is Yudhoyono's longtime friend.

Kalla said the decree would not be revoked, but Yudhoyono would review it. "This unit will handle the technical issues. We have enough built-in coordination in the Cabinet," he said.

The review was promised when Kalla met with Yudhoyono at the presidential office, after which the two men attended Friday prayers together for the first time in nearly two years at the State Palace's Baiturrahman mosque.

Meanwhile, presidential spokesman Andi Mallarangeng said after Yudhoyono and Kalla met that the two men were still on the same page. "The meeting wasn't something extraordinary. Things were well-understood and well-discussed," he said.

The rivalry between the two leaders is not new, and is linked to their different styles of leadership and to competition for the public's heart.

When Yudhoyono issued an instruction in 2005 that included him in the selection of directors for state enterprises, it was also seen as an effort to reduce Kalla's power in the economic field.

A rumored rift also sparked media headlines last year when Yudhoyono, on a trip to Washington, insisted on using costly video conferencing to lead Cabinet meetings even after delegating the task to Kalla. The vice president was then absent from those meetings, instead attending Golkar functions or holding his own Cabinet meetings.

 Environment

Water crisis, harvest failures hit parts of East Nusa Tenggara

Jakarta Post - November 4, 2006

Yemris Fointuna, Kupang – After a lengthy drought the situation in East Nusa Tenggara has become critical, with tens of thousands of hectares of paddy fields drying up and residents facing water shortages.

In Kupang regency, West Timor, residents must walk two to three kilometers to fetch water. Similar scenes are playing out in Timor Tengah Selatan regency and northern areas of Fores island.

In Amanuban Selatan district, Timor Tengah Selatan regency, more than 3,000 hectares of rice fields have dried up because there is not enough water in Noelmina River to irrigate the fields.

District head Marthen Aoetpah expressed fear Friday the long drought would spark a food crisis. "Farmers have built a dike along the river to collect water, but to no avail." In Timor Tengah Utara regency, at least 12 villages are reportedly facing food shortages. The regency administration has already distributed free rice to 5,000 residents.

"The administration has distributed about 18 tons of rice," said Primus Siribein, head of the regency's food security agency.

According to data from the East Nusa Tenggara Food Security Agency, more than 110,600 people in 157 villages in eight regencies are facing serious food shortages as a result of the drought.

On Flores island, drought has affected 32 villages in Lembor district, West Manggarai regency, where up to 6,000 hectares of paddy fields have dried up.

"The local administration tried to pump water from wells, but it was ineffective because of the dwindling water supplies," said Deputy Regent Yoseph Ansar Rera.

Some experts have predicted the drought will peak by the end of November, giving way to the rainy season. However, the local meteorology and geophysics agency says the drought could continue through to next month.

"Normally, it would have already started raining by now, but it hasn't turned out that way this year. Even the wind is strong and dry," agency head Albert Kusbagio said.

Orangutans forced to flee Indonesia fires

Associated Press - November 6, 2006

Niniek Karmini, Mantangai – Dozens of endangered orangutans have been driven from their dwindling jungle habitat in Borneo by months of land-clearing fires that have shrouded parts of the region in a choking haze, conservationists said Monday.

Around 43 orangutans have been taken for medical treatment to centers in the Indonesian provinces of Central and West Kalimantan, said Anand Ramanathan, an emergency relief worker with the Washington-based International Fund for Animal Welfare.

Most were beaten by humans after fleeing from the burning jungle to nearby plantations in recent weeks, but several are being treated for respiratory problems and burns, he said.

Farmers and plantation companies set hundreds of land-clearing fires on Borneo and Sumatra each year, sending thick smoke into neighboring Singapore, Malaysia and Brunei. This year's are the worst in a decade.

Monsoon rains have dowsed some of the fires but blazes continue to cause problems in Kalimantan, where visibility was less than 330 feet on Monday, forcing drivers to use their headlights in the daytime.

The Indonesian government has been criticized for failing to act against those responsible for the fires. Jakarta says it is doing all it can.

Indonesia has the highest number of threatened species of mammals in the world, around 146, according to the World Conservation Union.

Fewer than 60,000 orangutans remain in the wild in Indonesia – nearly 90 percent of their habitat has been destroyed by illegal logging and slash-and-burn farming practices. If the rate of deforestation continues, orangutans will disappear from the wild in around a decade, experts say.

Indonesia ranked third for greenhouse emissions

Jakarta Post - November 6, 2006

Abdul Khalik, Jakarta – Indonesia has jumped to third place from 21st behind the United States and China as the world's top contributor of greenhouse gasses because of its clearing and burning of peatland areas, a conservation group and research institute say.

A recent investigation by the Netherlands-based Wetlands International and Delft Hydraulics has revealed that huge areas of wet peatland forests are being drained, burned off and logged in Indonesia, contributing massive amounts of carbon dioxide to the atmosphere.

"Recently calculated emissions of greenhouse gases unexpectedly reveal that Indonesia has the third-largest emissions of the world," said Marcel Silvius of Wetlands International, a non- profit group whose backers include 60 governments and 15 conservation groups.

The study shows the country is failing to achieve targets in the Kyoto Protocol, which it has signed and ratified.

Environment Minister Rachmat Witoelar acknowledged the country's problems and noted the government had launched new programs that took into account peatland and haze problems.

"We have evaluated all our programs to tackle haze, including those to conserve peatland areas. We plan to raise canal levels in many areas, while requiring people's participation at all levels," he told The Jakarta Post on Sunday.

Rachmat said Indonesia would also bring its problems to Association of Southeast Asian Nations (ASEAN) and East Asia Summit in Cebu, Philippines, in December to ask for financial help.

The joint study shows that during the last few decades, emissions from Indonesian peatlands when drained or burned, reached 2 billion tons of carbon dioxide a year – almost a 10th of world greenhouse gas emissions from human activities.

The amount exceed emissions from India or Russia and are almost three times German or British emissions on an annual basis. United States' emissions reach almost 6 billion tons of carbon dioxide while China emits over 4 billion tons.

Indonesia emits 6.5 times as much CO2 from degraded peatlands as it does by burning fossil fuels every year, while it produces more gases than all the efforts of western countries to reduce greenhouse emissions under the protocol.

The international community, however, has overlooked the importance of these problems because it focuses on gasses from fossil fuel emissions, Wetlands says.

Silvius said as the figures would change the global picture on greenhouse gas emissions, which Wetlands would present at the UN-climate Conference in Nairobi on Tuesday.

Peat is undecomposed plant material that has accumulated over thousands of years, storing carbon equivalents equal to 100 years of current global fossil fuel use.

Normally, peat is soaking wet and will not burn. Through drainage, the peat dries, starts decomposing, and emits carbon dioxide. In the tropics, this process is now taking place rapidly and is often accelerated by fires. In this country, peat fires can cover millions of hectares and can last for weeks, sometimes even months.

Specialists from Wetlands and specialist consultancy Delft Hydraulics have mapped, monitored and investigated the country's peat areas. They concluded that over the past decade, a silent disaster has been taking place here and is increasing in magnitude.

The global demand for hardwood, paper pulp and palm oil and local economic development are the driving forces behind the destruction, the agencies say.

The two organizations are calling on global donor community to assist the country to address the problem by including CO2 emissions from peatland degradation in climate change mitigation and establishing a special financing mechanism to restore peat areas.

Experts have warned that greenhouse emissions, the main cause of global warming, could cost the world trillions of dollars in the damage it causes through increased sea levels, flooding and bad weather.

Farmers promised incentives to stop burning forests

Jakarta Post - November 3, 2006

Adianto P. Simamora, Jakarta – The government says it will begin offering farmers incentives to stop clearing land using fire, as part of efforts to stop the annual haze that has become a regional problem.

Planned incentives include providing productive crop seedlings and grants to farmers, according to an official at the State Ministry for the Environment.

"The money will be taken from a proposed US$60 million fund to address the annual forest fire problem," Agus Purnomo, a special assistant on international environmental issues, told The Jakarta Post on Thursday.

That was just one of the proposals announced during a regional workshop on Trans-Boundary Haze Pollution held in Jakarta. Attending the workshop were senior officials from Brunei Darussalam, Indonesia, Malaysia, Singapore and Thailand.

Indonesia is under pressure to deal with the haze, with neighboring countries criticizing Jakarta for its lack of action on the issue. An earlier meeting of environment ministers from the Association of Southeast Asian Nations (ASEAN) was held in Riau to discuss the issue.

Jakarta has yet to pass into law a regional agreement on trans- boundary pollution, which would help speed up assistance from neighboring countries in fighting fires in Indonesian territory.

The proposals from the workshop will be submitted for endorsement at the ASEAN Ministerial Meeting on the Environment in Cebu, the Philippines, on Nov. 9-10.

Indonesia proposed 80 programs to reduce forest fires, including setting up early warning systems in fire-prone areas and strengthening the country's capability to fight forest fires.

Jakarta has long blamed forest fires on land clearance activities by farmers and plantation companies. In response, it has banned the planting of crops on burned land.

"Imposing a kind of status quo on burned land has been effective in reducing forests fire," State Minister for the Environment Rachmat Witoelar told the Post.

The workshop also discussed the establishment of a ministerial steering committee comprising environment ministers from Brunei, Indonesia, Malaysia, Singapore and Thailand.

The committee would monitor haze problems and set up a hotline for the exchange of information in the event of forest fires.

"We must be creative in devising preventive actions. Putting people in jail for carrying matches and kerosene may be one method, but we have to look beyond such measures to be more effective," Rachmat said.

Mudflow victims accuse Lapindo of breaking promises

Jakarta Post - November 2, 2006

Indra Harsaputra, Sidoarjo – Residents of Jatirejo village in Sidoarjo, East Java, took to the streets Wednesday after a monthlong break for Ramadhan, accusing Lapindo Brantas Inc., the company blamed for the mudflow disaster, of failing to meet its promises to compensate victims whose properties have been engulfed by the mud.

The protest, involving hundreds of residents, took place near one of the relief ponds built in the village to contain the mud.

Protesters expressed their objections to the construction of a permanent dike before the company settled compensation payments to the victims, in line with President Susilo Bambang Yudhoyono's instructions.

They blockaded trucks carrying building materials and forced heavy machinery operators to stop work.

"The residents don't think PT Lapindo is serious about its promise to compensate us for our submerged land," a Jatirejo community leader, Anwar, told reporters.

Residents have so far received compensation in the form of a two-year housing lease assistance payment of Rp 5 million (US$555) and Rp 300,000 in living costs per person.

According to an agreement reached three months ago, the company said it would pay Rp 42 million to lease submerged rice fields for two years, but has yet to deliver on that promise.

"Under the agreement all of the rice fields have been registered by a task force. But they still haven't paid us. We have already been quite cooperative and patient," said Anwar.

National Mudflow Mitigation Task Force spokesman Rudi Novrianto said the compensation process had not yet been completed because the company and the local government were still assessing the residents' demands. He said a major issue still being negotiated was the value of affected land and buildings.

Meanwhile, the company successfully completed a mud disposal trial run, with mud flowing through a spillway at a volume of 500 liters per second. The first trial run failed due to technical problems with the pumps, inundating houses in Pejarakan village, Sidoarjo. Scores of residents had to evacuate due to the accident.

"We are ready to channel the mud through the spillway into the Porong River today (Wednesday)," said the head of the mitigation task force, Basuki Hadimulyono.

In a related development, the East Java Police have named the former general manager of Lapindo Brantas, Aswan Siregar, a suspect in the mudflow case.

"With the former general manager we have now named 10 suspects in the case," said East Java Police chief of detectives Sr. Comr. Amhar Azeth.

The management of Lapindo Brantas has not provided updated information on the disaster in Sidoarjo, which began May 29, and has yet to change its original statement that the mudflow was caused by the earthquake in Yogyakarta and Central Java.

Also, the company is being accused of not fulfilling its responsibilities to thousands of residents in the eight villages affected by the mud. It has provided assistance for house leases and compensated dismissed workers whose workplaces were affected by the mudflow, but has not yet paid compensation for land and damaged properties as was instructed by the President.

The Surabaya office of the Legal Aid Institute believes Lapindo Brantas has infringed upon the basic rights of refugees, as recognized by the United Nations, while the Indonesian Forum for the Environment has accused the company of committing a serious environmental crime.

 Foreign affairs

We'll help Indonesia go nuclear

Sydney Morning Herald - November 8, 2006

Mark Forbes, Jakarta – Australia will help Indonesia develop a nuclear program, conduct joint border protection patrols, expand military and intelligence ties and agree to suppress Papuan independence supporters under a historic security treaty to be signed on Monday.

The groundbreaking security treaty would be comprehensive but would not include a formal military alliance, sources close to the negotiations said.

The Foreign Affairs Minister, Alexander Downer, will fly to Indonesia to sign the treaty with his counterpart, Hassan Wirayuda, on Monday. Its details were finalised when the pair met in New York last month.

The treaty will provide a framework for stronger ties and expanded co-operation with Indonesia across a wide range of areas. Sources said it marked a new era in the relationship, putting an end to the diplomatic rift caused when Australia granted 43 Papuans asylum earlier this year.

Both nations will agree to respect each other's territorial integrity. The treaty will recognise Indonesian sovereignty over Papua and commit both countries to suppressing independence activists.

The Indonesia and Australia Framework for Security Co-operation includes a commitment for both nations to help each other in developing nuclear power for peaceful purposes. It opens the way for Australia to sell uranium to Indonesia, which is planning to begin construction of its first nuclear power plant in 2010.

Both nations will also commit to acting to prevent the spread of weapons of mass destruction to other countries in the region.

Intelligence sharing will be boosted, along with joint counter- terrorism operations, sources confirmed. Australia would enhance its and Indonesia's border protection with joint naval and surveillance patrols.

Co-operation will be increased in all areas of law enforcement, with Australia providing resources to Indonesian police, prosecutors and immigration and customs officials.

Military exercises and joint training, including with Indonesia's Kopassus unit, will also increase. Both militaries will be told to draw up specific programs for greater co-operation.

Under six broad principles, the treaty states both nations should be treated as equals, respect the other's values and not interfere in internal affairs.

They also state neither country would allow itself to become a "staging post" for separatist activities – a clause clearly aimed at an Australian crackdown on anti-Indonesian activists.

The treaty goes further than a traditional military treaty, placing more emphasis on broader security issues. It commits both nations to increasing public understanding about the other. Education and advertising campaigns are envisaged to reduce public mistrust, which has shown up in recent polling.

Announcing the negotiations for a treaty earlier this year, Mr Downer promised the process would be transparent. "People will be able to make public submissions long before this treaty is formally ratified," he said.

However, diplomatic sources confirmed the treaty's details had been privately finalised last month, and final approval from the Indonesian cabinet was simply a formality.

Arrangements for the foreign ministers to meet on the island of Lombok on Monday have already been made.

Under Paul Keating, Australia signed a security treaty with Indonesia in 1995, but it was torn up by Jakarta in 1999 amid the tensions surrounding Australia's involvement in East Timor's independence.

The treaty marks a dramatic turnaround after months of diplomatic turmoil fuelled by Australia's decision to grant asylum to 43 Papuan independence supporters.

In response, the Indonesian President, Susilo Bambang Yudhoyono, froze relations with Australia for three months.

Mixed reaction to security treaty with Indonesia

ABC Online - November 8, 2006

Reporter: Lynn Bell

Mark Colvin: The Prime Minister John Howard has welcomed a new Australian-Indonesian security treaty as a sign of the strengthening relationship between the two countries.

The Foreign Minister Alexander Downer will fly to Indonesia on Monday to sign the treaty with his Indonesian counterpart Hassan Wirajuda.

The agreement comes after two years of negotiation, and provides for greater co-operation on border protection, intelligence sharing and counter-terrorism operations. But the President of the International Commission of Jurists in Australia John Dowd says the treaty is unnecessary and has the potential to breed mistrust and resentment. In Canberra Lynn Bell reports.

Lynn Bell: The last security agreement between Australia and Indonesia was developed by Paul Keating and President Suharto in 1995. But less than four years later Indonesia tore it up when Australia led the United Nations intervention into East Timor. The Prime Minister, John Howard, says this new security treaty is a sign that both nations have moved on.

John Howard: I think it's a manifestation of the balanced maturity of the relationship. I welcome it. It will be signed next week by Mr Downer and Dr Wirajuda. It does show that our relationship has moved on and absorbed some of the adversaries surrounding it arising out of East Timor and more recently out of the 43 asylum seekers.

Lynn Bell: The Indonesian Ambassador to Australia, Hamzah Thayeb, says the treaty will strengthen the relationship between the two countries.

Hamzah Thayeb: The big picture is to continuously strengthen the relationship that we have because we cannot do otherwise, like I have been saying for geographic proximity we have to work together and this is just codifying all the principles that we have agreed upon and putting it into a document. The cooperation that we have been doing so far, which is positive.

Lynn Bell: The treaty recognises Indonesian sovereignty over Papua and both nations have agreed to respect each other's territorial integrity. The Foreign Minister, Alexander Downer.

Alexander Downer: Well the Australian government's never supported separatist movements in Indonesia. I mean unless we actually decided in the case of a foreign country that we thought that country should be broken up we would give no comfort or support to separatist movements.

Lynn Bell: But the President of the International Commission of Jurists in Australia, John Dowd, has serious concerns about the agreement, and says it should be the subject of more public debate.

John Dowd: I can see no basis for a treaty with a country that's not under attack and we're not under attack. I think it's a mask for assisting their military; therefore no case has been made for that to happen.

Lynn Bell: The Foreign Minister says the treaty will be subject to full parliamentary scrutiny and the public will be able to make submissions to the Standing Committee on Treaties.

The Greens Leader Bob Brown is also critical of the agreement, saying it's an obsequious concession to Jakarta.

Bob Brown: The Howard govt says it will actually suppress people who want to work towards independence for West Papua. That's undemocratic; it's repugnant to Australian democratic ideals.

Lynn Bell: But the Leader of the Government in the Senate, Nick Minchin rejects that assertion.

Nick Minchin: Can I reiterate in this senate that the treaty does not in any way infringe or seek to infringe on the rights to freedom of expression or freedom of association.

What the treaty does provide is that Australia and Indonesia as governments will not support or participate in activities by an person or entity which constitutes a threat to the stability, sovereignty or territorial integrity of the other.

Lynn Bell: The Greens Senator Kerry Nettle quizzed Nick Minchin further, during question time this afternoon.

Kerry Nettle: Has the Australian government put anything into this security treaty to deal with the issues of any human rights abuses that may occur in Indonesia?

Nick Minchin: Of course we will continue to urge the Indonesian government to investigate allegations of human rights abuses and to ensure that the rights of all Indonesians are protected.

Lynn Bell: The security treaty also paves the way for cooperation on nuclear power for peaceful purposes. So does that mean Indonesia will seek to import uranium from Australia? The Indonesian Ambassador, Hamzah Thayeb.

Hamzah Thayeb: I think uranium is the issue first, you are discussing this issue but if you look at the bigger picture energy is the issue. Oil is of course will not always be there it's depleting. Other sources of energy is important for everybody for the world.

Lynn Bell: Labor supports the plan to boost cooperation on counter-terrorism measures – but its reserving comment on other aspects of the security treaty, until it's been fully briefed.

Mark Colvin: Lynn Bell.

No political, military pressure in Bush visit: Minister

Agence France Presse - November 6, 2006

Jakarta – Indonesian Defence Minister Juwono Sudarsono said political or military issues would not be discussed during US President George W. Bush's impending visit. However, Sudarsono said Indonesia would declare its intent "to maintain good relations with all those who want to enter into partnerships with us, whether they are Russia, China, India or South Korea".

He was alluding to Indonesia's drive to diversify its sources of weaponry. Indonesia has increasingly sought military equipment from countries other than the US, its traditional key source.

Sudarsono told journalists the agenda of discussions during the Bush visit of a few hours here on November 20 would be on "a framework of cooperation that is fundamental in nature – education, health, the matter of disaster prevention and the avian flu".

"There is no relation whatsoever with (any) political or military pressure," Sudarsono said. He said military relations, especially after the revocation of a US military embargo on Indonesia, "will not be specifically discussed".

Hundreds of Indonesian Muslims rallied outside the US embassy in Jakarta Saturday to protest Bush's planned visit, which is part of a regional tour following the annual Asia-Pacific Economic Cooperation summit in Vietnam in November.

 Economy & investment

Private firms attack labor export reforms

Jakarta Post - November 6, 2006

Ridwan Max Sijabat, Jakarta – Private labor exporters are unhappy with a new government policy that requires the businesses to have a minimum capital of Rp 3 billion and pay a Rp 500 million deposit to the government.

The Indonesian Labor Exporters Association (Apjati) and the Indonesian Manpower Development Association (Idea) say the new ministerial decree is confusing and contains red tape that targets prospective migrant workers.

Apjati chairman Husein Alaydrus said that under the decree, only a few major companies would survive because they would still be able to run branch offices in the regions, training centers with qualified instructors and a wide network including foreign partners.

"It would require a company to have a lot of money to be as professional as the government requires," Alaydrus said in a recent meeting with Manpower and Transmigration Minister Erman Suparno.

He questioned the Rp 225 billion in bank deposits the government had collected from labor suppliers and asked why the minister chose to leave the money with state-owned Bank BNI, which offers an interest rate of only 6 percent, compared with the 9 percent on offer at other banks.

In the meeting with Erman, Idea chairman Adrie Nelwan raised the issue of the numerous illegal fees prospective migrant workers are faced with while organizing their departure documents.

"The bureaucratic procedures have been simplified, so that now prospective workers only have to go through 14 desks instead of the 43 desks of the past, but the red tape remains.

"A worker has to spend between two and three million rupiah to obtain documents from the bureaucracy, from the village level through to the immigration level. Workers are also required to undergo several document checks upon their arrival home," Adrie said.

Workers are also now able to apply for their passports from their home villages, allowing them to obtain the necessary papers within two weeks.

The government has reformed its labor export procedures in a effort to increase the number of migrant workers from the current 400,000 a year to 1.5 million.

Labor suppliers also demanded that the government reform corruption in the bureaucracy and encourage state-owned banks to provide soft loans to workers, as well as cooperating with all countries employing Indonesian workers.

They said the labor export law required six government regulations, two presidential regulations and nine ministerial decrees. Of these, only one presidential regulation and two ministerial decrees have been issued and no government regulations have been set to enforce the law.

Migrant Care and Jakak, two non-governmental organizations that provide advocacy for migrant workers, criticized the reform of the labor export program, saying it had been carried out halfheartedly by Erman in an attempt to please the President and retain his cabinet seat in the event of a reshuffle.

"The President has issued a regulation on establishment of an independent body for labor placement overseas and launched a cheap, rapid and secure labor placement program but the agency has yet to be set up while the Manpower and Transmigration Ministry is still playing its dominant role," said Wahyu.

Jarak executive director Achmad Marzuki said that despite the reform, the labor export program had been frequently abused by unauthorized labor exporters supplying children and women as sexual workers overseas.

"From our recent investigations in Malaysia, Singapore and the Middle East, many children and women have been smuggled to be employed as commercial sex workers in entertainment centers and nightclubs. Many others were sent through the official procedure but then they were sold to pimps. This has happened in East Malaysia, Singapore and Saudi Arabia," he said.

Indonesia seeks to reassure investors on corruption, red tape

Agence France Presse - November 2, 2006

Victor Tjahjadi, Jakarta – Indonesia has sought to reassure investors attending a key infrastructure summit that the government is fighting hard to end corruption and slash red tape in Southeast Asia's largest economy.

Hundreds of foreign and domestic investors have been attending the event at which 111 projects worth 19.1 billion dollars are being offered in an urgent bid to rejuvenate the nation's crumbling infrastructure.

Vice president Jusuf Kalla said regular media reports of arrests of corrupt officials were evidence that the government was serious about tackling entrenched graft. "I don't know (if) your countries are (doing) something like that. Maybe the corruption level in your country is low. We are working hard (on) that," Kalla said.

Kalla told delegates that efforts to improve the huge bureaucracy's efficiency were also forging ahead. "I know that the bureaucracy is slowly moving. That's why we have many reforms of the law to make the bureaucracy work well," he said. "We will deliver confidence to anybody who will be starting business in Indonesia," he pledged.

Analysts had warned ahead of the summit that enthusiasm to stump up funds by investors could be tempered by Indonesia's ingrained culture of corruption and lack of efficiency.

While China and India have been enjoying huge attention from investors, Indonesia – the world's fourth most populous nation – has languished on their radar screen, partly due to its poor infrastructure in the first place.

State enterprises minister Sugiharto said the president had sent a clear message that all state officials must improve their work ethic or face dismissal.

"In the coming three years, for those bureaucrats who cannot follow the patterns handed down by the president to the ministers and first echelon officials, we are going to carry out leadership reforms at the lower levels," he told a press conference.

He cited two recent presidential instructions aimed at trimming down red tape on electricity projects as an example. Under these regulations, Sugiharto said, the process of starting project tenders to signing a deal which used to take more than 800 days to complete has been reduced to 12 months. "No slippage can be tolerated, otherwise we will be experiencing power shortages in 2009," the minister said.

Indonesia's is already experiencing alarming energy shortfalls despite the archipelago's vast resources of oil, natural gas and geothermal energy.

On Wednesday, Indonesia's President Susilo Bambang Yudhoyono also moved to assure investors that Jakarta could provide a stable environment for their funds. He said the nation needed some 22 billion dollars per year to devote to infrastructure over the next few years.

Dimitri Pantazaras, a participant from a Bahrain-based private equity fund investor, said that one problem Indonesia faced was a lack of "projects that are properly prepared and equipped with sound feasibility studies. There are not enough feasibility studies for these projects, but I'm sure the government is committed in making these reforms happen," he said.

Indonesia held its first infrastructure summit early last year, soliciting bids for 91 projects worth 22.5 billion dollars. Only nine deals however have since been secured.

Government goes all out to lure investors

Jakarta Post - November 2, 2006

Urip Hudiono, Jakarta – Two key economics ministers have given assurances that Indonesia is committed to addressing the concerns of investors hoping to participate in infrastructural development in Indonesia, having instituted a number of significant reforms over the past year.

Better project execution, smoother land acquisition, and the putting in place of risk-sharing and guarantee schemes are the government's main focuses in answering those concerns, according to Coordinating Minister for the Economy Boediono and Finance Minister Sri Mulyani Indrawati.

The two ministers were speaking during Wednesday's opening discussions with potential investors attending the three-day "Indonesia Infrastructure Conference and Exhibition 2006".

It would seem that the government has learned its lesson, as it was precisely the absence of such guarantees that resulted in the failure of last year's high-profile Infrastructure Summit to attract significant interest from investors.

In terms of improving project implementation, Boediono said the government had established a "project-development fund" to pay for detailed feasibility studies for proposed projects, and to ensure that tender documents were drawn up in compliance with international best practice.

Boediono said that this would ensure that all the proposed projects would be ready to start immediately after the completion of the tender process, thus avoiding additional costs along the way. Assistance from the fund would be provided on a competitive basis for high-priority projects.

Boediono also said the government had issued President Regulation No. 36/2005, as amended by Regulation No. 65/2006, on land acquisition to expedite the process and prevent the cost of project land spiraling out of control as a result of the actions of speculators.

"We all know too well that private investors are reluctant to enter into concession agreements when significant uncertainties about land acquisition remain," he said.

To overcome this, he said the government had set up a "revolving land fund" that had been provided with seed capital of Rp 600 billion (US$65 million) so far. Using this fund, the government would acquire the land needed for important projects, with the investors reimbursing it by installment as the projects began to generate revenue.

Finance Minister Sri Mulyani Indrawati, meanwhile, highlighted the government's commitment to supporting infrastructural development through Finance Minister's Regulation No. 38/2006 on risk-sharing in infrastructure projects.

She said the government had established an "Infrastructure Investment Fund", to which it had allocated Rp 2 trillion out of the state budget in each of the years 2006 and 2007.

This scheme basically envisages the provision of financial compensation for any political risks – including policy changes – that adversely affect a project. It also envisages the extension of concession periods and the sharing of cost overruns arising from any delays in a project or lower demand for a project's output.

However, Sri Mulyani stressed that the risk-sharing and guarantee schemes could only be availed off on a case-by-case basis based upon the legality, quality, affordability and transparency of each project in order to safeguard the interests of the public at large.

"We will be pragmatic and careful as we want the projects to be sustainable and really benefit the public," she said. "We want to give support, but we now have to do things under a new set of laws that emphasize transparency and accountability in this atmosphere of democracy. I'm sure you investors can understand this."

Government guarantees 100 percent ownership for private sector

Jakarta Post - November 2, 2006

Benget Simbolon Tnb., Jakarta – Transportation Minister Hatta Rajasa assured investors Wednesday that private firms – both local and foreign – would still be allowed to own up to 100 percent of infrastructure projects despite the upcoming amendment of the existing transportation legislation.

"I can assure you that there will be no change to the 100 percent private-sector ownership principle in transportation-sector projects," Hatta told the press after addressing a discussion held in conjunction with the "Indonesia Infrastructure Conference and Exhibition 2006".

The current laws governing the transportation sector – the 1992 Railways Law, 1992 Land Transportation Law, 1992 Sea Transportation Law, and 1992 Air Transportation Law – provide that any local or foreign-based company can build, own and operate a transportation facility through a wholly owned subsidiaries.

Amendments to these laws have been drawn up, however, and are currently being deliberated by the House. While the original idea was to allow more scope for private-sector participation in transportation projects, concerns have also been expressed that the amended laws might no longer permit 100 percent ownership of infrastructure projects by private firms.

"The amended laws will end the government's monopoly in the infrastructure sector. Private firms will be given 100 percent free rein to build and operate them without the obligation to enter into joint ventures with state enterprises," he said.

According to Hatta, the railways amendment bill would be passed into law later this year, the sea transportation amendment bill early next year, and the land transportation and air transportation amendment bills in June of next year.

He said the new laws were part of the government's efforts to encourage foreign investors to participate in developing Indonesia's woefully inadequate infrastructure.

Analysts have long decried the abysmal state of the country's physical infrastructure as being a major factor that discouraged investment.

Currently, Hatta said, the government had 17 projects to offer in the transportation sector. Most of the projects involved seaports and airports in Java, Sumatra, Kalimantan and Sulawesi, with the rest consisting of a rail line linking Manggarai in South Jakarta to Soekarno Hatta Airport in the western part of Greater Jakarta, and the double-tracking of rail lines in Greater Jakarta.

Last year, the government offered 10 projects in the transportation sector, which mostly consisted of seaports and airports.

According to Hatta, Indonesia needed investment worth US$7.2 billion to generate annual economic growth of about 7.3 percent in the transportation sector.

While Hatta said that the government would provide guarantees for investors, he added, "But certainly, we'll not be giving blanket guarantees. We'll give guarantees on a case-by-case basis."

On concerns that investors might run up against problems with regional administrations, Hatta said that all the infrastructure projects being offered were public-private partnerships, so that investors would only have to deal with the central government.

Since the rolling out of local autonomy in 2001, many regions have issued local ordinances that conflict with national legislation.

 Opinion & analysis

Policies matter more

Jakarta Post Editorial - November 6, 2006

The Regional Investment Forum here last week presented several business-friendly provincial governors and regional officials, who fully realize that conducive policies and bureaucratic and regulatory environments are more effective than natural resources in attracting investment.

These governors, regents and mayors seem to understand that policy variables – institutional capacity, legal certainty, policy consistency and predictability, public services and local regulations – matter more to investors than natural resources, physical infrastructure, labor supply and productivity.

Regional leaders such as these, who come from Sulawesi, Java and Sumatra, could become a catalyst for other regional chiefs to adopt a more pro-business attitude. With governors, regents and mayors now having to compete in direct elections, job creation, which directly benefits residents, is surely the most effective way to win voters. This means employment will be one of the most, if not the most, important yardstick for measuring the performance of a regional chief executive.

Several provincial administrations have taken the initiative by sending missions overseas to woo investors. Others have hired public relations or consulting companies to advise them on how to design promotional programs and to deal with potential investors.

The rationale is that investment creates jobs, which in turn generates purchasing power to spur consumer demand for various goods and services.

Chief economics minister Boediono reemphasized the crucial importance of investment, when he, speaking at the opening of the forum, urged regional administrations to give top priority to pro-business programs for developing local economies.

As the chief of economic reform, Boediono is fully aware the overseas investment promotion missions conducted by the central government, including recent trips by Vice President Jusuf Kalla to the United States and President Susilo Bambang Yudhoyono to China, will be rendered meaningless if regional administrations do not contribute to improving the business climate.

Business-friendly local administrations are pivotal to national economic growth because most of the country's abundant natural resources are at least in part controlled by the provinces and regencies.

But challenges remain because the excesses of regional autonomy, which was launched in 2001, are still hindering businesses in many areas. Bad local regulations are high on the list of grievances by both domestic and foreign investors.

Most local administrations have yet to realize the important role of good institutions and effective bylaws as risk-management tools for investors in the highly complex market economy. Effective bylaws create a structure of expectations that guide businesspeople in calculating risks.

Many regional administrations take a short-term view in their economic policies, often resorting to ad hoc endeavors to generate as much local revenue as possible right now. Recently, for example, the West Nusa Tenggara administration tried to collect taxes from the heavy equipment and motor vehicles operated by PT Newmont Nusa Tenggara, in violation of the terms of the mining work contract between the American company and the central government.

Businesspeople in many provinces have complained about distortional bylaws issued by local administrations in an overly zealous bid to raise as much fiscal income as possible, without realizing that such rent-seeking will sooner or later kill or push good businesses – the main providers of jobs – out of their areas.

Opening the Regional Investment Forum last Thursday, President Yudhoyono said the central government had scrapped more than 506 local regulations, revised almost 150 others and was examining 824 other bylaws that were inimical to investment.

The excesses should be seen as part of the learning process in the implementation of regional autonomy, and not used as justification to reduce local autonomy. Instead of centralizing overall investment licensing at the Investment Coordinating Board (BKPM) in Jakarta, which is after all contrary to the spirit of regional autonomy, the central government should help empower regional investment offices – Provincial Investment Coordinating Offices (BKPMD) – to enable them to better serve businesses and to manage effective promotion programs.

The new investment legislation currently being deliberated at the House of Representatives, which if passed will replace the 1967 Foreign Investment Law and the 1968 Domestic Investment Law, should decentralize investment licensing (outside the oil and gas, and financial services industries) to local administrations.

The central government needs only to set national standards, such as those on environmental requirements, and national directives on the areas of business closed to private investors, whether domestic or foreign.


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