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Indonesia News Digest 48 – December 23-31, 2006

News & issues

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 News & issues

Ferry carrying hundreds sinks near Java

Associated Press - December 30, 2006

Niniek Karmini, Jakarta – A ferry carrying hundreds of passengers sank in a storm off Indonesia's main island of Java and nearly all were still missing 12 hours later, officials said Saturday.

The "Senopati" went down around midnight Friday en route to Sumarang on central Java from the port of Kumai on Borneo island.

Slamet Bustam, an official at the Semarang port, said waves of up to 15 feet had crashed over the ship's deck around midnight Friday. It was carrying 850 people, he said. The passenger manifest listed 542 people, Transport Minister Hatta Radjasa said.

Ships in Indonesia often carry far more passengers than reported, making it hard for authorities to say with accuracy how many people are on board. Local media put the number of passengers at between 200 and 600.

"The rescuers have been unable to reach the location and we are afraid many have died," Bustam told The Associated Press.

More than 12 hours after the accident, rescue workers in ships and helicopters had found only nine survivors, stranded on a nearby island, he said. Navy Commander Col. Yan Simamora also said there were only nine survivors.

"So far, the rescue team, using helicopters and ships has been searching for other passengers, but limited visibility and bad weather is hampering the rescue," he told Indonesia's El-shinta radio. "Because of the high waves and wind, I'm afraid many have died."

Two warships were searching the area, hindered by poor visibility.

The boat ran into trouble 24 miles off Mandalika island, which is about 190 miles northeast of the capital, Jakarta.

Earlier Friday, a different vessel carrying around 100 people capsized in bad weather off the coast of northwestern Sumatra, killing 31 people, Radjasa said Saturday

Sea accidents are common in Indonesia, the world's largest archipelago nation, where boats are the main way to reach many islands. Safety measures are often poorly enforced and many craft lack sufficient safety equipment.

Hard rains triggered flooding and mudslides earlier this week that so far have killed 146 people in Indonesia and another 12 in neighboring Malaysia. Some 500,000 people have been displaced.

At least 163 other people remain missing in the flooding. Officials fear more deaths will stem from Saturday's storm.

Study to change attitudes to charity

Jakarta Post - December 30, 2006

Ary Hermawan, Jakarta – Theologically, Islam encourages its adherents to perform philanthropic deeds in the widest sense, but Indonesian Muslims often only do so in the light of personal devotion to God.

In reality, they can make charitable donations for wider purposes, such as advancing social justice in the world's largest Muslim country, where most people are poor.

The various forms of Islamic philanthropy, such as zakat (religious tithes) and wakaf (property donations), have been poorly managed as they are seen as being connected with rituals or secretive charities.

A study conducted by the Syarif Hidayatullah State Islamic University (UIN)'s Center for the Study of Religion and Culture (CSRC) aims to tackle this problem by campaigning for a change in the perception of Islamic philanthropy so that charitable donations from Muslims can be used to help fight poverty and increase social justice.

Titled "Islamic Philanthropy and Social Justice", the study found that Indonesian Muslims contribute Rp 19.3 trillion (about US$2.1 billion) to philanthropic causes annually through various forms of religious donation.

During Ramadhan, they donated approximately Rp 6.2 trillion through zakat fitrah, but 51 percent of this was given to mosques and only 45 percent delivered directly to the needy. Only a small amount of the money is distributed through professional organizations, the study said.

"Spiritual motives still dominate philanthropic awareness among Muslims," CSRC director Chaider S. Bamualim said in a speech during the launch Wednesday of four books on Islamic philanthropy. "For that reason, the existing system of religious donations is unable to support the activities of civil society organizations working to better the welfare of the poor," he explained.

The first thing that needed to be done to change the nature of Islamic philanthropy in Indonesia was to rejuvenate the Islamic understanding of Arabic terms such as zakat and wakaf.

The traditional understanding of Islamic philanthropy was incapable of serving as a basis for developing a new kind of philanthropy focused on enhancing social justice.

"The reform has to be paradigmatic so as to be able to accommodate the true purposes of Islamic philanthropy," Chaider said.

Former UIN rector Azyumardi Azra said the proposed paradigmatic transformation was actually already underway. "The paradigm of Islamic philanthropy has shifted from legalism to humanism," he said.

He cited as an example the use of the "care for humanity" slogan by Islamic philanthropic organization Aksi Cepat Tanggap (ACT). "It reflects creativity and concerns for the universal and inclusive values of humanity," added the prominent Muslim scholar.

Azyumardi said he believed that Islamic philanthropy had a bright future. "An important indication of this is that the philanthropic tradition has changed from one of charity to resolving social problems," he said, adding that education and systematic campaigning were still needed to accelerate the transformation.

Since it started its campaign in 2002, the CSRC has published five books on Islamic philanthropy, including the four launched Wednesday, and has held a series of seminars on the subject across the country to disseminate ideas about developing philanthropy in Islam.

SBY rides stable economy to new high in popularity

Jakarta Post - December 29, 2006

M. Taufiqurrahman, Jakarta – President Susilo Bambang Yudhoyono remains popular among the people and if an election were held today he would easily outdo his rivals, a poll said Thursday.

The Jakarta-based Indonesian Survey Institute (LSI) found in its latest poll that the approval rating for Yudhoyono had reached a staggering 67 percent, above the 61 percent of the popular vote he and running mate Jusuf Kalla garnered in the 2004 presidential election.

The LSI interviewed 1,227 people between Dec. 18 and Dec. 22 in all the country's 33 provinces for the poll, which has a 3 percent margin of error.

The survey also discovered that in an election held today, Yudhoyono would win by 41 percent of the vote, easily outdoing Megawati Soekarnoputri of the Indonesian Democratic Party of Struggle, who would take 17 percent, and Kalla, on 4 percent.

Yudhoyono's job approval rating is at a comfortably safe level, far above last year's 56 percent. The perception of a stable economy and rosy prospects for next year have contributed greatly to the improvement in Yudhoyono's ratings.

"In spite of real economic problems, 33 percent of the respondents had a positive perception of the overall economic condition, up from last year's 22 percent," the LSI said in a statement.

The LSI found that 48 percent of respondents were optimistic about improvements in the economic situation next year, an increase on the December 2005 figure of 40 percent.

In politics, however, Yudhoyono gets less credit. There is only slight improvement in his job approval rating for politics. Satisfaction over the general political condition increased from 28 percent last year to 33 percent this year.

LSI researcher Anis Baswedan said that in spite of the lukewarm performance, Yudhoyono's job approval rating remained high because he had no credible opposition.

"The existing opposition consists of figures from the past who have no credibility. This is an important factor that will make SBY gain the upper hand," Anis said, referring to Yudhoyono by his popular nickname.

Responding to the findings, political analyst Sukardi Rinakit of the Soegeng Sarjadi Syndicate said it would be strange if Yudhoyono failed to register an improvement in his job approval.

"Everything about him has worked in his favor. He is seen as a honest and disinterested figure, and is a former general who holds a Ph.D. What's not to like?" Sukardi said.

On a more professional level, Yudhoyono was seen as capable of resolving three serious problems – the rise of Islamic fundamentalism, terrorism and the separatist conflict in Aceh province, Sukardi said.

Economist Umar Juoro of the Center for Information and Development Studies, however, warned of the possibility that Yudhoyono would turn into a risk-averse leader.

"Given his popularity, SBY is unlikely to make drastic policies that have the potential to ruin his image in 2007," Umar said.

Acquitted cleric drops plan to sue government over conviction

Jakarta Post - December 27, 2006

Ary Hermawan, Jakarta – Firebrand cleric Abu Bakar Ba'asyir, whose conviction on terrorism charges was recently overturned, has canceled his plans to sue the government for wrongful imprisonment, his aide announced here Tuesday.

Fauzan Ansori, spokesman for the Ba'asyir-founded Indonesia Mujahidin Council (MMI), said the government had its hands full dealing with the disasters that have been plaguing the country.

He said for the same reason, the cleric will not demand compensation from the government for tarnishing his image by convicting him of involvement in the 2002 Bali bombing.

"(Ba'asyir) will not sue the police because he believes the matter will be settled on Judgment Day," Fauzan told journalists at the Supreme Court.

"After considering the big burden being faced by the government with disasters in many areas of the country, Abu Bakar Ba'asyir will not demand compensation. This will be (his) gift to the nation," he added.

Floods and landslides have killed more than 100 people in Aceh and North Sumatra and forced hundreds of thousands to flee, while a massive "mud volcano" in East Java has inundated six villages and turned 13,000 residents into refugees.

The Supreme Court last week overturned the terror conviction against Ba'asyir by lower courts and ordered the government to clear his name and compensate for the losses he suffered. The court did not explain how the government should rehabilitate his name.

The acquittal sparked outrage and disgust among families of Australian victims of the 2002 Bali blasts. Prime Minister John Howard said he was upset for the families of the 88 Australians who died in the explosions, but said Canberra could not change Thursday's ruling by the Indonesian court.

Ba'asyir had earlier said he was considering suing the National Police for building an "erroneous case" that had led to his imprisonment.

He had even said his team of lawyers were working on the details of the suit and calculating material and intangible losses suffered by Ba'asyir due to his 26-month imprisonment.

Ba'asyir urged the police to disband their antiterror squad, Detachment 88. "The squad cannot be controlled in the field. It only casts aspersions (against Muslim activists)," Fauzan said.

He noted that after the first Bali attack, more than 350 Muslim activists were accused of committing acts of terror.

Ba'asyir, Fauzan added, also asked the police not to curb "religious freedom." The cleric requested they stop questioning people who invited outspoken critics of Western countries to give public sermons.

Fauzan and other MMI leaders came to the Supreme Court to present a token of appreciation to the five justices who had overturned Ba'asyir's conviction. However, the judges refused to accept the so-called Justice Award, citing ethical reasons.

Pregnant teens often face tough choices alone

Jakarta Post - December 23, 2006

Anissa S. Febrina, Jakarta – A friend in need is a friend indeed, the saying goes. Unfortunately, for teenagers with unwanted pregnancies, the lack of "true" friends leads them to seek less-than-friendly ones in their time of trouble.

High school student Eva (not her real name) is among those who sought help with her unwanted pregnancy in all the wrong places.

When she found out she was two months pregnant, the result of unprotected sex with her boyfriend, she desperately sought abortion methods ranging from the classic approach of eating pineapples, to visiting traditional mid-wives. "I did not know what to do and who could help," the 15-year-old said.

While some might argue that a campaign to promote morality works better than teaching young people about safer sex, there is also a need to provide help and options for youngsters who are already in trouble.

Despite the fact that 40 percent of abortion cases in the city involve young single women or girls, Jakarta has few centers to provide them with psychological and educational support.

With a high percentage of unwanted pregnancies among teenagers, Jakarta needs to integrate preventive and "curative" actions, the International Planned Parenthood Federation (IPPF) says. IPPF runs the CMM Youth Center in Pisangan, East Jakarta, as well as 25 others nationwide.

The center receives an average of six calls a day asking for information on safer sex. It sees an unwanted pregnancy every two months, coordinator Bonitha Merlina said Friday.

"For those with unwanted pregnancies, we provide information on the options they can choose, as well as the consequences, be it carrying on with the pregnancy or having an abortion," IPPF vice chairwoman Lismayani said.

Even though abortion is illegal, referring pregnant teenagers to places that provide safe abortions is better for their health than letting them seek unsafe ones.

An IPPF study in 2003 found that 31.7 percent of women with unwanted pregnancies tried traditional methods or herbal medicines before seeking out certified clinics and medical practitioners. Unsafe abortions have contributed to the nation's high maternal mortality rate of 307 per 100,000 live births.

A separate study on the issue recommended providing safe abortions as a woman's reproductive right, accompanied by counseling sessions before and after.

As if the decision about whether to keep her baby were not difficult enough, a pregnant teen often becomes a social outcast, especially when her partner refuses to share the responsibility.

"Ideally, we should work with schools and health institutions to educate teenagers in general and those who already have unwanted pregnancies," IPPF advocacy division head Chatarina Wahyurini said Friday.

Although there are no official regulations on the issue, schools immediately expel students who are found to be pregnant, while their partners do not receive so much as a warning, Wahyurini said.

"If a pregnant student still wishes to continue her studies, she must move to another school. This is sometimes impossible for those from poor families," she added.

The IPPF argues unwanted pregnancies are a social issue, not just a matter of individual mistakes, and thus the consequences should not be discriminatory.

 Aceh

Irwandi named new Aceh governor

Jakarta Post - December 30, 2006

Nani Afrida, Banda Aceh – Former Free Aceh Movement (GAM) rebel Irwandi Yusuf and running-mate Muhammad Nazar won a landslide victory in the first direct election for governor in Nanggroe Aceh Darussalam, the province's Independent Elections Committee announced Friday.

In the final vote counting, the pair won 768,745 votes, or 38.20 percent, of 2,012,370 ballots counted across the province. The result was expected after initial polling on voting day indicated Irwandi, who contested the election as an independent, had won.

"Irwandi Yusuf... won based on the final vote counting we made," committee chairman Muhammad Jaffar told The Jakarta Post.

The announcement was made earlier than the scheduled date of Jan. 2. Irwandi's large win means the result is final and there will be no second round of elections.

"Aceh is suffering from massive floods. All regencies and cities have submitted their results to the provincial center," Jaffar said explaining the early announcement.

Eight pairs of candidates contested the Dec. 11 elections, which were held more than a year after the government and GAM signed a landmark peace deal in August 2005. The agreement ended 29 years of bloody conflict in the province that killed at least 15,000 people.

"Being elected as Aceh governor makes me feel scared. I am scared because there is so much I have to deal with," Irwandi said on hearing the announcement.

Analysts say the new leadership must reduce widespread unemployment in the province and speed up the creation of housing for thousands who are still homeless two years after the tsunami hit.

Officials in charge of rebuilding Aceh say 79,000 houses in the province will be built by March, but many completed houses are empty because of inadequate supporting infrastructure. Around 50,000 tsunami survivors still live in temporary wooden barracks.

Government officials have played down suggestions a victory by a GAM candidate could threaten the peace. Meanwhile, analysts have raised fears that legislators from national parties, which dominate the provincial assembly, may make it hard for Irwandi to govern.

But Golkar, the largest party in the House, said this would not be the case. "We congratulate Irwandi on his victory. The election was held peacefully and democratically and we all have to honor the results," deputy chief Ferry Mursyidan Baldan told Reuters.

Ex-rebel wins governor race in Indonesia's Aceh

Reuters - December 29, 2006

Banda Aceh – A former Free Aceh Movement (GAM) rebel won the first direct election for governor of Aceh province, the electoral commission announced on Friday, a step in a peace deal that ended decades of conflict in Aceh.

Irwandi Yusuf won 38 percent of the total vote, while his closest rival Ahmad Humam Hamid had 16.6 percent, Aceh Independent Election Commission chief Muhammad Zafar told a news conference. The result was widely expected after private polls on voting day showed Yusuf had won.

Yusuf, who contested the election as an independent, is due to assume office in early February, according to the electoral commission's timetable. "I left it to the people. The people made their choice without coercion and money," Yusuf told Reuters.

A veterinarian by training with a Masters degree from Oregon State University, Yusuf was arrested in Jakarta in 2003 and sentenced to nine years in prison for his work as an underground campaigner for the separatist GAM.

Fluent in English, he was appointed GAM's representative to an ASEAN-EU mission tasked with monitoring the peace pact signed on Aug. 15, 2005, in Helsinki under Finnish mediation.

Around 2 million people voted in the Dec. 11 election, 16 months after the government and GAM signed a truce to end almost three decades of fighting that killed 15,000 people. The eight candidates included two retired Indonesian army generals.

Former Aceh military commander Djali Yusuf finished at the bottom with 3 percent of the vote. The military has been accused of gross human rights abuses during anti-rebel campaigns in Aceh.

The peace deal was triggered by the Dec. 26, 2004 tsunami that left 170,000 dead or missing and 500,000 homeless in the province of 4 million.

Analysts have said the new leadership would need to deliver on reducing widespread unemployment and on housing for about 50,000 people still homeless two years after the tsunami.

Aceh is rich in resources ranging from natural gas to coffee, as well as yet-to-be-tapped potential in such areas as tourism, but the long-running conflict hindered the economy, and the tsunami dealt it another massive blow.

Indonesian leaders have played down suggestions a victory by a GAM candidate could threaten the country's integrity.

Some analysts also fear legislators from national parties that dominate the provincial assembly may try to make it hard for Yusuf to govern. But Golkar, the largest party in the national parliament, said that would not be the case.

"We congratulate Irwandi on his victory. The election has been held peacefully and democratically and we all have to honour the results," Ferry Mursyidan Baldan, the deputy chairman of the Golkar faction in parliament, told Reuters.

He said his party was looking forward to cooperating with a Yusuf administration.

Former GAM rebel leader wins Aceh governorship

Kyodo News - December 29, 2006

Christine T. Tjandraningsih, Jakarta – A former rebel negotiator won a landmark gubernatorial election in Indonesia's once-restive Aceh Province, the region's electoral commission announced Friday.

The Aceh Independent Election Commission said Irwandi Yusuf of the now-defunct separatist Free Aceh Movement, better known by its acronym GAM, and running mate former student activist Muhammad Nazar grabbed 38.20 percent of the vote in Indonesia's northernmost province. They ran as independents in the election.

Yusuf's leading vote tally was followed by that of university professor Humam Hamid, a GAM sympathizer, who was nominated by the Muslim-based United development Party, one of the country's major political parties. The official results showed the professor and running mate Hasbi Abdullah got 16.62 percent of the vote.

"Whoever the winner, it is the choice of the Acehnese people, so we must respect it," presidential spokesman Andi Mallarangeng told Kyodo News in a response to Yusuf's victory. "Let's build a new history in Aceh."

From the House of Representatives, which earlier expressed concern over the imminent victory of a GAM gubernatorial candidate, a similar statement was made.

"Because this election has passed through a democratic process and met all the requirements, it is important for us to accept the results. We regard the result as a final one," Yusron Ihza Mahendra of a House commission dealing with home affairs told Kyodo News.

"We only hope that he can govern (Aceh) in the corridor of the unitary state of the Republic of Indonesia and improve security and welfare for the Acehnese people," he added.

Both Yusuf and Nazar were jailed under the administration of then President Megawati Sukarnoputri. Yusuf is the leader of the "young Turks" within GAM.

Born in the Aceh town of Bireuen in 1960, he graduated from Syiah Kuala University in 1987 with a degree in veterinary science and joined its faculty a year later. In 1990, he joined GAM, after the regime of strongman Suharto launched an intensive counterinsurgency campaign in Aceh.

He received a scholarship to Oregon State University in the United States in 1993, and, while studying for a master's degree in veterinary science there, he traveled to Latin America where he received training in the theory and practice of guerrilla warfare.

Armed with the know-how, he entered the GAM military wing in Tiro in North Aceh Regency on his return, helping former GAM Commander Muzakkir Manaf and Sofyan Dawood, initially as a propagandist, then as a speech writer.

His greatest contribution was a review of the GAM military structure that led to its reform and the formation of guerrilla intelligence units in 2000.

In 2003, Yusuf was arrested in Jakarta, tried and sentenced to seven years for rebellion. The sentence was increased to nine years on appeal. But when the tsunami struck Aceh on Dec. 26, 2004, he escaped a flooded prison, made his way abroad and became important behind the scenes during the Helsinki peace negotiations.

When the Aceh Monitoring Mission, consisting of monitors from the European Union and the Association of Southeast Asian Nations, was deployed, Yusuf named GAM liaison.

Nazar, chairman of the Information Center for Aceh Referendum, organized a huge pro-referendum student rally in the provincial capital Banda Aceh in 2000.

He was arrested in February 2003 and sentenced to five years in jail but was released soon after the peace deal between Jakarta and GAM was signed in Helsinki in August last year.

Rich with oil and gas, Aceh has long been a key source of revenue for Jakarta, but little of this money trickled back into the local economy. Unhappy with the treatment, GAM emerged in 1976 and spent three decades fighting for independence, warfare that cost the lives of thousands of civilians.

The December 2004 tsunami, which killed about 170,000 people in Aceh, brought about changed circumstances and views among combatants that eventually led to the Helsinki peace deal last August.

Tsunami's poorest locked out of housing solution

Melbourne Age - December 26, 2006

Lindsay Murdoch – Two years after the Boxing Day tsunami more than 25,000 poor and landless families in the hardest hit area of Indonesia's Aceh province are being denied housing under a massive rebuilding program.

Eric Morris, the United Nations' top official in Aceh, has told The Age that the poorest Acehnese are ineligible for help under Indonesian regulations because they were landless when the tsunami struck. The reconstruction program, the largest in the developing world, is partly funded by Australian donors and the Howard Government.

Mr Morris also said that land title disputes and a shortage of builders and supplies had led to delays in building about 25,000 houses in Aceh this year.

Of the 230,000 people killed by the tsunami in 12 Asian nations, 169,000 were Acehnese. By the time the massive wave swept across Aceh's coastline, 600,000 were left homeless and 141,000 houses had been razed.

While "remarkable" reconstruction had taken place in the past year, Mr Morris said, 70,000 Acehnese were still living in temporary shacks, many in unsanitary conditions.

However, he also said that 12 months ago the same number of people were living in even worse conditions in tents. Mr Morris said government and non-government agencies had built just over 50,000 of 128,000 houses required in Aceh, while the target number for the end of 2006 was 78,000.

But Richard Sandison, Plan Australia's director in Aceh, said that despite set-backs, the reconstruction effort in the province at the northern tip of Sumatra was "on track".

Agencies estimate that $250 million of the $394 million donated by Australians to non-government organisations to help Aceh's victims has been spent. Of $252 million pledged by the Australian Government for programs over four years in Aceh and the devastated island of Nias, $178 million has been spent, government officials said.

Australian aid officials said that their programs, which include rebuilding of the province's main hospital and a port, and training thousands of doctors, nurses, and teachers, have been largely on track.

The World Bank said last week a $US600 million ($A766 million) multi-donor fund for Aceh's reconstruction – that it administers at Indonesia's request – had spent $US238 million, a rate of spending that exceeded expectations despite a "bottleneck" created by disputes over land titles.

The tsunami destroyed or made illegible most of Aceh's land titles.

A Melbourne University study released last week found that construction costs in Indonesia and other tsunami-devastated countries had increased by up to 100 per cent, creating a dramatic under-estimation of the money that is needed to rebuild villages, roads, bridges and other infrastructure.

University researchers also found that institutional bottlenecks, aggravated by "clumsy" bureaucratic procedures, have meant only a fraction of available funds had been utilised.

"There were problems connected to the provision of resources and funds, and also the costs required to complete reconstruction were massively under-estimated," said chief researcher Sisira Jayasuriya, an associate professor of the university.

Oxfam director Barbara Stocking has called for the Indonesian Government to find ways to help the landless.

"There's a risk these people will end up in the slums of the future, despite the huge amounts generously given after the tsunami," Ms Stocking said.

Mr Morris, the UN recovery co-ordinator for Aceh, said landless people made up more than one third of those living in the temporary shack barracks. "These people should be put on a path towards land and home ownership," he said.

Mr Morris said that getting Acehnese into homes was only the first of many challenges for Aceh. After people get houses, they will then need to find a way to make a living. "Two years on, there is still a long way to go," he said.

Homes, jobs elusive for some Indonesian tsunami survivors

Reuters - December 25, 2006

Ahmad Pathoni, Banda Aceh – At 30, Beti has to raise her four young children alone after the 2004 Indian Ocean tsunami snatched her husband, and she has no regular job.

Two years after the disaster, she and her children are still cramped in one of the barracks built to house survivors in Indonesia's hardest-hit province of Aceh, where the giant waves left 170,000 local people dead or missing and half a million displaced.

"I wished I had something I could call a house," Beti told Reuters. Her partitioned 20-square-metre (180 sq ft) shack at Lhong Raya in the provincial capital Banda Aceh is furnished with a foam mattress, a television and radio.

"I have heard promises, but up until know I still don't know when I will get a house," said Beti, who wears a maroon Muslim headscarf.

Beti said the households in the barracks, where clean water is scarce, receive nothing other than 10 kg (22 pounds) of rice, seven ounces of cooking oil and five packs of instant noodle every month. She does odd jobs to survive, often cleaning bottles at a nearby water depot for 25,000 rupiah (less than $3) a day.

Beti's family is one of 3,000 which did not own property before the tsunami and have been categorized by the government as former renters or squatters. About 45,000 people still live in the barracks.

Aid groups and the agency charged with Aceh reconstruction, BRR, have built 57,000 houses so far. Another 20,000 house are still being built and expected to be completed at the end of March 2007.

Reconstruction woes

But Beti's wait for a house may be in vain. BRR will not give those former renters and squatters houses and will instead give each family 40 percent of the value of a house built for survivors who are entitled to property, said Heru Prasetyo, the director for donor relations at the agency.

They can use the money to buy land and apply for micro-credit to build a house, he said.

BRR had earlier promised that 78,000 houses of 128,000 required would be finished by the end of the year, but some work has been delayed because of the difficulty in finding contractors that can carry out large-scale projects, BRR chief Kuntoro Mangkusubroto said.

"We are three months behind and we apologize," he told reporters over the weekend. "We can tell everybody that we have worked very hard, but the truth is there are people who are not happy and that's the way it is. We will improve what we can improve," he said, adding that all houses should be completed by mid-2007.

Some of those who received houses have delayed occupying them due a lack of infrastructure, such as clean water and electricity. Others chose to remain in temporary barracks because they have no means to be independent.

Many of the houses are built using substandard materials after the companies appointed to build them sub-contract the projects to smaller firms, officials and aid groups say.

'We will become lazy'

Beti's neighbor, Darmiyati, who also lost her husband in the tsunami, is keen to move to a permanent house but there isn't one for her.

She has remarried but her new husband has not found work, forcing her to let her two children live with their grandmother in another town. "They should provide jobs for us. We don't like living on handouts because we will become lazy."

Aid workers said the relief effort in Aceh needs to focus more now on restoring the livelihood of tsunami victims to help reduce the danger of over-reliance on handouts.

Ram Mohan Dayasagar, the British Red Cross's Livelihood Manager in Aceh, said that the flood of aid coming into the province on the tip of Sumatra island had in some cases discouraged people from returning to the land.

"One of the problems has been the handouts by agencies followed with the government subsidizing their existence with WFP (World Food Program) food and pocket money expenses."

A progress report released jointly by BRR and donor institutions this month showed 69 percent of working-age men and 36 percent of working-age women in Aceh's urban areas are employed, many of them in reconstruction-related jobs. In rural areas 68 percent of the men and 45 percent of women are working.

But officials say these numbers reflect a bubble economy spurred by reconstruction activity driven in part by foreign aid pledges of $7.1 billion, $5.9 billion of which has been allocated for current and future projects.

But Beti and Darmiyati, the women in the Banda Aceh barrack, can only wonder where all the money has gone. "I heard there's a huge amount of money coming from abroad, but how come we don't even have basic necessities?" Beti asks.

 West Papua

Indonesian military build-up in Papua's Punjak Jaya province

Radio New Zealand - December 29, 2006

There have been fresh warnings of an Indonesian military build-up in the Punjak Jaya region of Papua province.

The Reverend Socratez Sofyan Yoman, who heads the Communion of Baptist churches in Papua, holds grave concerns for the civilian population over reports that more troops are moving in amid a recent series of tensions into Bolakme, West of Wamena near Mulia.

OPM activists of the Goliat Tabuni tribes in the Punjak Jaya region have been raising the banned Morning Star flag in acts of defiance against Indonesian rule. But Reverend Yoman denies reports that Goliat Tabuni members killed two Indonesian military officers near Mulia earlier this month.

He says the killings were carried out by the Indonesian military itself to make it appear like more separatist attacks, in order to justify the troop build-up... "This is their main purpose: additional troops in West Papua and also how to establish a new province, another province, in the Highlands. They're trying to create conflict or destabilise in this area."

Human rights workers warn of conflict in Papua

Agence France Presse - December 26, 2006

Port Moresby – A flag-raising campaign in Indonesian Papua's Highlands could escalate into open conflict between tribal warriors and Indonesian troops, human rights advocates warn.

Free Papua Movement (OPM) activists of the Goliat Tabuni tribes in the Punjak Jaya region have been raising the banned Morning Star flag in acts of defiance against Indonesian rule.

Human rights workers reported that OPM warriors on Sunday occupied Mulia, the Punjak Jaya capital, Paula Makabory of the Papuan-based human rights agency Els-ham and Matthew Jamieson of the Institute for Papuan Human Rights and Advocacy in NSW said.

The warriors withdrew into the mountains yesterday but Indonesian police and troops were preparing to attack them there, they said in a statement.

Goliat Tabuni members were reported in the Indonesian press to have killed two members of the Indonesian military in the mountains near Mulia on December 9 and police were investigating.

Makabory expressed concern that traditional warriors armed with a few rifles, bows and arrows and spears would be up against the Indonesian army and its modern weapons.

"This conflict will cause major casualties, especially amongst the local traditional warriors and members of the local community."

The mountain people had a fierce sense of their own identity as West Papuans and did not want to be part of Indonesia, Makabory said.

Jamieson said the Punjak Jaya incidents obliged Australia to play a role in stopping the conflict in Papua that pitted the Indonesian military against traditional communities.

"By denying free access of international observers and media to West Papua, the Indonesian authorities promote a situation where human rights abuse can occur."

Jamieson said Papuan communities felt that if they did not make a stand now they would be swamped by the Indonesians in the next few years.

He said Canberra's new security treaty with Indonesia put Australia on the side of the Indonesian military and bad Indonesian government policy pitted against Papuan communities.

"Australia is obliged to investigate and stop the senseless destruction of these communities."

 Human rights/law

Military remains above the law, says rights watchdog

Jakarta Post - December 27, 2006

Jakarta – The nation's security forces are still operating above the law as the government's protection of human rights increases, a rights watchdog says.

The Commission for Missing Persons and Victims of Violence (Kontras) said in its year-end report there were bright spots in the government's record on human rights in 2006.

These included the country's upcoming membership of the United Nations Security Council, its term on the United Nations Human Rights Commission and its ratification of the UN conventions on missing persons and indigenous people, along with its regional campaign for increased democracy in Myanmar, Kontras said.

More progress was made in Aceh's peaceful elections, which culminated the peace process in the country's westernmost province, Kontras said.

This record, however, was clouded by what Kontras saw as the government's reluctance to reign in security agencies, the Indonesian Military (TNI), the State Intelligence Agency (BIN) and the National Police, which continue to defy the reform process.

It said in 2006, the military remained autonomous from legal and political controls.

"In terms of professionalism, the TNI registered no significant progress. The institution gave no accountability for human rights violations committed by its members who were involved in shootings, kidnappings, wrongful arrests and physical abuses," Kontras coordinator Usman Hamid said.

This culture of impunity lingered on in the TNI, with many historic cases of human rights abuses involving soldiers remaining unresolved, Usman said.

The military had also successfully opposed efforts to put it under civilian control – indicated in the Defense Ministry's refusal to have soldiers tried in civilian courts for ordinary crimes, he said.

In its report, Kontras also criticized the police for their failure to win the public trust.

"The culture of militarism remains with the police. We have recorded numerous cases of violence, beatings, shootings, the illegal use of arms, wrongful arrests and incarcerations, and the use of torture," he said.

The police were also unable to investigate serious crimes such as the 2004 murder of noted rights campaigner and Kontras founder Munir Said Thalib, he said.

"We have the impression that the police are deliberately dragging their feet in the investigation. They always look for technical reasons to delay the probe," Usman said.

Kontras lambasted BIN for its failure to warn the government about a string of terror attacks committed this year in conflict areas like Central Sulawesi.

BIN was instead busy running a propaganda campaign about the resurgence of communist movements in the country, the rights group added.

"We give BIN a score of 4 out of 10, and if President Susilo Bambang Yudhoyono does not improve, this he will probably flunk next year," Usman said.

Police, prosecutors to appeal Pollycarpus acquittal

Jakarta Post - December 30, 2006

Ary Hermawan, Jakarta – Prosecutors and police said Friday they would file for a review of the Supreme Court's decision to overturn the conviction of the pilot convicted of the murder of human rights activist Munir Said Thalib.

Both the National Police and the Attorney General's Office said they were certain that pilot Pollycarpus Budihari Priyanto was involved in the 2004 murder on board a Garuda Indonesia flight.

Despite his early release from prison last Monday, Pollycarpus must not escape justice, they said, adding that they would work to uncover the truth behind the case.

However, Attorney General Abdul Rahman Saleh could not say when he would submit the final appeal against the conviction overturning to the Supreme Court.

In 2005, Pollycarpus was sentenced to 14 years in prison for the poisoning death of Munir aboard a Garuda flight from Jakarta to Amsterdam via Singapore two years ago.

The Supreme Court overturned the verdict in November but jailed him for two years for falsifying flight documents. He was freed Monday after receiving a three-month sentence reduction.

On Thursday, the pilot pleaded his innocence in the case, saying he was victimized and doubted that Munir was actually murdered. "Polly could say Munir was not killed. We are convinced he was," the attorney general said.

"A doctor in the Netherlands said a large dose of arsenic, which is a deadly poison, was found (in Munir's body). How did the poison get there? Did he consume it? We believe he didn't drink it. He was poisoned," he added. "Big questions (about Pollycarpus) still remain," he said. "We will go after him."

Abdul Rahman said the murder trial revealed facts that linked Pollycarpus to Munir's death. "Why did he falsify the documents? Why did he call up Munir's wife (before boarding)? Why did he offer Munir to exchange their seats? Those questions are still left unanswered," he said.

According to evidence heard during the trial, the pilot, who was off-duty on the flight, swapped his business class seat for Munir's economy class one.

Separately, National Police deputy chief Comr. Gen. Makbul Padmanegara said the pilot's release did not mean he would escape the law. "The Supreme Court ruled that he was guilty of only falsifying the flight documents. Why did he do that?" he asked.

Later in the day, President Susilo Bambang Yudhoyono led a meeting with National Police chief Gen. Sutanto, State Intelligence Agency (BIN) head Syamsir Siregar and Abdul Rahman to discuss the Munir case.

The murder implicated former top BIN officials, according to a report from a fact-finding team sanctioned by the government, but none of them were charged.

Syamsir said after the Friday meeting that BIN would fully cooperate with the police in finding the killers of Munir. The police could again summon former BIN chief Hendropriyono and deputy Muchdi PR for questioning about the case, he said.

"They have been summoned for questioning before. The police could question them again if they want to," Syamsir said, as quoted by detik.com news portal.

Syamsir said BIN had submitted a transcript of phone conversations between Pollycarpus and Muchdi to the police for investigation. The documents are currently being analyzed by the FBI in the United States.

Police plan to summon new witnesses in Munir probe

Jakarta Post - December 29, 2006

Ary Hermawan, Jakarta – Police said here Thursday they would summon new witnesses in an effort to shed light on the 2004 murder of prominent human rights activist Munir Said Thalib.

"We are still looking for new testimonies... from the old witnesses and the new ones," National Police chief Gen. Sutanto said after a security meeting at the Coordinating Ministry of Political, Legal and Security Affairs.

He declined name the new witnesses or the date of the summons. "We can't disclose it now. Please, be patient," he said.

The original murder case implicated former top intelligence officers but none of them have been charged.

Earlier in the day Sutanto said the police might again summon Pollycarpus Budihari Priyanto, the sole suspect in the case and who was released from prison on Monday, for further questioning.

The Supreme Court overturned the murder conviction against Pollycarpus in October, but sentenced him to two years in jail for falsifying flight documents.

"If we have new evidence, anyone involved will be questioned," Sutanto said.

Pollycarpus made his first public appearance Thursday after his release following a three-month sentence reduction granted as part of Christmas celebrations.

He said he fully supported the new investigation into the case and was ready to cooperate with the police. "If they want to reopen the case, please. I will abide by the legal procedures," he said.

Accompanied by his wife Hera Indraswati and lawyer Mohammad Assegaf, Pollycarpus said he denied any wrongdoing. "I was victimized. My case might have been built on mere public opinion or perceptions set by certain people," he said.

He said he believed that Munir was not poisoned aboard the Garuda Indonesia plight from Jakarta to Singapore two years ago. "I'm a pilot. I know that the food on board was sterile for we had conducted a tight security check. It was impossible that the food was contaminated (with poison)."

A Dutch autopsy found a large dose of arsenic in Munir's body and concluded he had been poisoned to death.

Human rights activists, including Munir's widow Suciwati, have accused Pollycarpus of being part of a plot to kill Munir, a staunch critic of the military and the State Intelligence Agency. They also say the pilot attempted to block the investigation by being uncooperative.

Pollycarpus denied being uncooperative with the police. "I was (detained) at the National Police headquarters for 20 months. I answered all the questions posed to me."

He also denied knowing anything about the counterfeited flight documents he allegedly used to get on board the flight with Munir. "All I know is that the documents were legal and I was on board as a professional pilot," he said.

The Solidarity Action Committee for Munir said Pollycarpus may have been involved in killing Munir because he had no clear reason for using such fake documents to get on board the flight to Singapore.

Protests greet early release of Pollycarpus

Jakarta Post - December 27, 2006

Ary Hermawan, Jakarta – The early release of Pollycarpus Budihari Priyanto, the only suspect in the 2004 murder of noted human rights campaigner Munir Said Thalib, sparked protests Tuesday from his widow Suciwati and rights activists.

"It shows that President Susilo Bambang Yudhoyono is not serious about resolving the Munir case," Suciwati said while reading out a joint statement issued by the Solidarity Action Committee for Munir (KASUM).

She said she had talked with presidential spokesman Andi Mallarangeng to ask about Yudhoyono's response to Pollycarpus' release, and about the progress of a police investigation into the murder. "Go ask the police about this," Suciwati quoted Andi as saying. "The answer was hurtful to me," she added.

Pollycarpus, a 45-year old pilot, was freed from Jakarta's Cipinang prison Monday after receiving a three-month reduction in his sentence in honor of Christmas.

He was originally sentenced to 14 years by the Central Jakarta District Court last year on charges of poisoning Munir. Authorities believe the activist was given arsenic on board a Garuda Indonesia flight from Jakarta to Amsterdam two years ago.

The Supreme Court quashed the conviction in October, citing a lack of evidence, but upheld Pollycarpus' two-year sentence for falsifying flight documents.

He was supposed to be released in March 2007, but the government granted him a one-month Christmas remission and an additional two months it said he should have received on Independence Day in August.

Commission for Missing Persons and Victims of Violence (Kontras) coordinator Usman Hamid said the remission was unreasonable.

"If one of the criteria for getting a sentence reduction is to show good conduct as stated in the law, Pollycarpus should not have been granted a remission because he has been unwilling to cooperate with the police in the Munir murder investigation," he argued. "Not being cooperative is not good conduct."

Khoirul Anam of KASUM said Pollycarpus was clearly involved in the plot to kill the activist, but the Supreme Court and Pollycarpus himself never clarified his motives for falsifying flight documents in order to board Munir's flight. "Pollycarpus refused to tell the police who had ordered him to falsify the documents and for what purpose," Khoirul said.

Catholic priest Sandyawan said the release of Pollycarpus on Christmas Eve violated the true message of the birth of Jesus Christ. "An act of forgiveness should be done in the spirit of serving justice, not impunity," he said.

KASUM reiterated its demand that the Yudhoyono administration establish a new fact-finding team to speed the police investigation of the murder.

The President had pledged to resolve the Munir case by revitalizing the probe, but no substantial progress has been made.

Indonesia frees activist murder suspect

Associated Press - December 26, 2006

Jakarta – The only suspect in the poisoning death of Indonesia's most prominent human rights activist was freed from prison after receiving a month's reduction in his sentence as part of Christmas celebrations, a prison official said Tuesday.

Pollycarpus Priyanto, a 45-year-old pilot, was originally sentenced to 14 years on charges of putting a fatal dose of arsenic in Munir Thalib's food while the human rights campaigner was on a flight from Jakarta to Amsterdam two years ago.

The Supreme Court quashed the conviction in October citing a lack of evidence, but upheld Priyanto's two-year sentence for falsifying flight documents. Priyanto has long maintained he was innocent in Munir's death.

Indonesia traditionally cuts prison terms for some inmates on national holidays, and the justice ministry said Tuesday the pilot was one of more than 6,000 non-Muslim convicts to benefit on Christmas.

His one-month reduction made him eligible for release and he left Cipinang prison in the capital, Jakarta, on Monday, said Rosmita, an official at the jail who uses one name.

Activists slammed the decision, saying it showed that President Susilo Bambang Yudhoyono's government was not serious about finding justice for Munir.

"This shows that the government has been halfhearted in finding his killer," said Usman Hamid from Solidarity Action for Munir, who urged that a new fact-finding team be created to probe the murder.

Munir rose to prominence toward the end of Suharto's 32-year dictatorship. He went on to probe killings by Indonesian troops during East Timor's bloody struggle for independence and military-led violence in the separatist provinces of Papua and Aceh.

 Natural disasters

Illegal logging blamed for Sumatra floods, landslides

Jakarta Post - December 29, 2006

Jakarta/Banda Aceh, Langkat – The Forestry Ministry on Thursday blamed the authorities' inability to halt illegal logging for the devastating floods and landslides that have killed at least 118 people on Sumatra island.

Meanwhile, Vice President Jusuf Kalla has continued to blame rapid deforestation for natural disasters across the country.

Earlier, environmental groups Walhi and Greenomics said the disaster in Nanggroe Aceh Darussalam, which has suffered the most from the recent floods, could have been predicted.

However, the Forestry Ministry's director general for forest protection and nature conservation, M. Arman Mallolongan, said it would have been impossible to prevent the floods.

"We knew it would happen, but to regreen all of the denuded areas takes time," he told The Jakarta Post. "It's too bad because it seems that we (the forestry and environment ministries) are the only ones concerned with forest conservation."

Greenomics has said that 2.1 million of Aceh's 3.3 million hectares of forest have been destroyed by legal and illegal logging. The Aceh-Nias Rehabilitation and Reconstruction Agency (BRR) procured 36 percent of its timber for post-tsunami reconstruction work from the seven Aceh regencies currently submerged by floods, the group said.

Arman agreed illegal logging was a problem in Aceh. "The logs and timber being transported across the province, including those used by the BRR, must have been felled illegally."

He said the Forestry Ministry had not issued any logging permits in Aceh. However, he acknowledged that some companies may have secured permits from local administrations. "A company holding a permit would have to have been certified by the provincial, municipal or regency administrations."

"Recently a worker linked to a regent was detained for using a permit for logging in a forest in Central Aceh. But the authorities later released him," he said.

He said the ministry would not issue logging permits for Aceh because most of the trees were in conservation and protected zones.

Irwandi Yusuf and running mate Muhammad Nazar, who look set to win Aceh's recent gubernatorial election, vowed Thursday to take steps to fight illegal logging in the province, detik.com news portal reported.

Flooding in Aceh has killed at least 71 people in six regencies, including 50 victims in Aceh Tamiang. At least 164 others are still missing.

In North Sumatra's Langkat regency, 14 bodies have been recovered from flooded districts as of Thursday, while the bodies of 33 people have been recovered from the scene of a landslide in Mandailing Natal regency.

A spokeswoman for the Indonesian Red Cross in Aceh Tamiang, Rina, said Thursday flooding had yet to subside in five districts and 17 villages.

In Gayo Lues regency, seven villages in Pining district remain cut off due to floods and landslides.

Some flood victims in North Aceh and Bireun regencies have begun returning to their homes. "The number of displaced people is now 252,302," said Iskandar of the Aceh Disaster Response Unit.

More than 203,000 of the displaced are in Aceh Tamiang.

Floods and landslides in North Sumatra also have damaged schools. In Langkat regency, 115 schools were inundated by floods while in Muara Sipongi district, Mandailing Natal regency, landslides damaged 18 schools.

Vice President Jusuf Kalla again blamed natural disasters in Indonesia on the destruction of the country's forests, with the deforestation rate at 2.5 million hectares annually, both due to legal and illegal logging. The reforestation rate is about one million hectares per year.

"This means our forests are shrinking by 1.5 million hectares every year, and that is if the reforestation of the one million hectares is successful," Kalla said in West Lombok, West Nusa Tenggara, where he kicked off a national forest rehabilitation campaign Thursday.

He said those planting trees could not compete with the people cutting them down. "It takes 20 years for a tree to grow big but it only takes 20 minutes to cut it down..."

Angry women loot aid post in Indonesia

Agence France Presse - December 28, 2006

Payabedi – Around a hundred angry and mostly female Indonesian flood victims Thursday looted an aid distribution post, complaining they had not received any food supplies.

The mob of mostly mothers carrying their children stormed the government-managed aid post in Aceh Tamiang, the district worst- hit by the floods which have inundated northern Sumatra over the past week.

Finding no food, the angry women seized what ever came to hand and made off with plastic buckets and cooking utensils.

"Whover took our food will be damned! It is OK for me not to eat but not my child," shouted young mother Saijah carrying her three-year-old son.

After the incident, around 20 police were dispatched to secure the post. Aceh Tamiang district secretary Marzuki said the incident should not have happened and argued the "distribution system has been quite good".

Food and other aid is distributed along a chain from district level down to local neighbourhoods, rather than given to individuals.

A massive relief effort is underway to provide food, water and shelter to victims of the floods, which killed more than 100 people and forced 400,000 to flee.

Aceh Tamiang district was the worst hit, with nearly the whole population of 239,000 evacuated, according to official figures. Some 44 people were killed and 205 are still missing.

Tragedy strikes family trying to escape Indonesian floods

Agence France Presse - December 28, 2006

Payabedi – When his home in Kampung Dalam village was hit by flash floods, Ishak volunteered to stay behind as the boat sent by his wife's family could not carry all 13 people trapped in the house.

Aceh Tamiang district, where they lived, was the worst hit by the floods which inundated northern Sumatra.

His wife Asrianti, 23 and their three-month-old baby daughter, Laila Salisa, were among the 20 people packed into the speedboat intended to carry them to safety. Ishak and four others stayed behind. It was the last time he saw his wife and daughter alive.

Asrianti's sister Muridawati, 31, recounted how they tried to escape. "On Saturday afternoon, my house, with 13 people in it, was trapped by the water," Muridawati told AFP.

"I called my family in Payabedi to send a boat to pick us up, but they didn't reach my house until 11:00 pm that night because of the strong currents," she said.

She was among the eight people from the house who went first in the speedboat. They were heading through the night for higher ground in Payabedi when disaster struck.

"On the way to Payabedi, water entered the boat from the bow, and all 20 people on the boat moved towards the stern, then the boat capsized," she said. Asrianti and her baby went missing in the dark and confusion.

"They found her body the next morning and her baby on Monday," her sister said.

Ishak, who stayed behind to let his wife and child escape, did not find out they were missing until the following day.

"I didn't know my wife was missing until about 9:00 am on Sunday, when her family in Payabedi came and told me. We went searching the hospitals but we didn't find her," he said.

"Her body was found about 200 metres from where the boat capsized. She was buried later on Sunday in Payabedi. Baby Laila was not found until a day later."

Aceh Tamiang was the worst hit by the floods, with nearly the whole population of 239,000 evacuated, according to official figures. Some 44 people were killed and 205 are still missing.

More than 100,000 had returned to their homes by Thursday afternoon, to face a massive clean up of houses filled with mud and water.

Government ignored disaster warnings, acting too slowly - Walhi

Jakarta Post - December 28, 2006

Jakarta – The government did nothing to prepare for the floods and landslides in Nanggroe Aceh Darussalam and North Sumatra that have killed more than 100 people, a leading environmental group says.

"The huge floods and landslides that hit some parts of Sumatra were predictable and could have been anticipated," Indonesian Forum for the Environment (Walhi) disaster manager Sofyan said at the group's headquarters Wednesday.

Last January, Sofyan said Walhi had sent President Susilo Bambang Yudhoyono a warning letter with a map illustrating disaster-prone spots on the island. "The floods and landslides were not natural disasters, but the fruits of daredevil negligence," Sofyan said.

He said 83 percent of the country was vulnerable to disasters. They were predictable in Aceh because much of the province's forests – traditional water catchment areas – had been destroyed. The government was not serious about handling disasters, he said.

"This can be proved by the government's allocation of funds (for disaster management and mitigation) which is only Rp 500 billion (US$55 million) this year for the entire country," he said.

"The government started providing shelters 12 days after a major earthquake hit Yogyakarta earlier this year. While private organizations managed to build 12,000 shelters two days after the disaster," Sofyan said.

The House of Representatives said it would finish deliberating a disaster management bill a year after the 2004 tsunami but lawmakers have still not passed it.

The geography in Aceh made it dangerous to log timber, he said. "The incline in Aceh's landscapes is mostly between 30 and 40 degrees. Once trees in about a one-square-meter area are cut down, the impacts could reach up to 10 kilometers away," he said.

He urged the government to revoke the permits of 10 companies with logging concessions in the province.

Aceh has 3.3 million hectares of forests but a study by Greenomics – a non-governmental organization focusing on mining and forestry – found that 2.1 million hectares in protected and conservation zones have been cut down or converted into farms and plantations.

The degradation of forests has been accelerated by illegal and legal logging for timber used in post-tsunami reconstruction work.

A Greenomics survey says the seven regencies hit by floods in Aceh contributed 36 percent of timber supplied to the Aceh and Nias Rehabilitation and Reconstruction Agency. The group is urging the government to replant the 2.3 million-hectares of forests.

Indonesia faces further disasters if forests not replanted

Agence France Presse - December 27, 2006

Nabiha Shahab, Jakarta – Disasters such as the flash floods which have killed 100 people and displaced more than 400,000 will be repeated unless Indonesia takes swift action to restore forests lost to logging, activists and analysts said Wednesday.

Conservationists and scientists say deforestation reduces the capacity of the ecosystem to regulate the water and also leads to soil erosion and landslides. The Sumatra floods are the latest in a series of disasters blamed on deforestation and environmental degradation.

"This is not the first time disasters like these have happened and the lesson still hasn't been learnt," Togu Manurung from the Bogor Institute of Agriculture said. "Disasters are happening back to back. In the rainy season we have floods and during the dry season we have extreme drought that causes fires and haze," the professor said.

Meteorologists said environmental factors were to blame for the flash floods in Sumatra as rainfall has not been unusually high during the rainy season. "In the case of the recent floods, the environmental support capacity is the most determining factor since there are no unusual phenomena in the rain pattern," analyst Indro Santoso from the meteorological office told AFP.

Ministry of Forestry secretary general Boen Purnama pointed out that floods occurred even in areas with good vegetation coverage when rainfall was excessive. "This is why we need technical structures such as dams and other infrastructure in place," he said.

Manurung said the main blame lay in the extensive deforestation of Sumatra and the Indonesian provinces of Central and South Kalimantan on Borneo.

"The fact is forests in Aceh, North Sumatra and Riau are badly destroyed. It's the same story in Central and South Kalimantan where floods also recently submerged thousands of hectares of land," said Manurung.

"Demand for Indonesian wood and also for land for expansion – including for palm oil plantations – is still high. I flew over Riau recently and saw massive destruction in the area designated for the expansion of the Tesso Nilo National Park," he said.

Indonesia loses about 2.8 million hectares (6.0 million acres) of forests each year – among the highest rates in the world.

Environmental activists said the government should stop issuing permits to convert land for plantation use and revoke forest concessions. "Forest destruction is getting out of hand. Let alone the illegal ones, the legal ones are also destroying the environment," said Greenpeace Southeast Asia's forest campaigner Hapsoro.

Leading environmental group Walhi called on President Susilo Bambang Yudhoyono to warn people of the dangers they faced and to restore the damaged environments.

"We demand the government inform the people, especially those living in high-risk areas, that disaster may hit them at any time," said Walhi director Chalid Mohammad.

"We also demand the government swiftly restore the environment, put an early warning system in place, stop logging and correct the land use policy," he said.

Forestry scientist Manurung agreed people should be alerted to the dangers. "People living in vulnerable areas should know that they are living in 'danger zones' and should be given alternatives," he said.

Forestry ministry official Purnama said they had drawn up a comprehensive disaster map for Java and hoped to finish the one for Sumatra in the coming year. "But even if we have these maps, it is always difficult to communicate this to the residents. They cannot easily move from their homes," he said.

Indonesia, home to more than 220 million people, has already endured numerous tragedies blamed by environmentalists on deforestation.

In June this year, floods and landslides triggered by heavy rains killed more than 200 people in South Sulawesi province. Separate floods killed more than 20 people and forced 40,000 people from their homes in Borneo in the same month.

In 2003 more than 200 people were killed when flash floods tore through Bahorok, a popular riverside resort in North Sumatra. Some officials denied deforestation was the cause of that tragedy.

Activists say floods are man-made

Jakarta Post - December 27, 2006

Jakarta – Deforestation in Nanggroe Aceh Darussalam, sped by post-tsunami reconstruction activities, caused the huge flooding and landslides on Sumatra Island that have so far claimed more than 100 lives there, activists said Tuesday.

"More than 60 percent of Aceh's forests have been destroyed, which in turn has caused floods," spokeswoman Vanda Mutia Dewi of Greenomics, a non-governmental organization focusing on mining and forestry, told The Jakarta Post.

"The deforestation has been sped up by Aceh's reconstruction and rehabilitation work," she said. Dewa Gumay from the Aceh office of Indonesian Forum for the Environment (Walhi) agreed that the disaster on Sumatra was man-made, saying the forests were destroyed to provide timber for housing construction.

Floods have hit the Lhokseumawe, North Aceh, East Aceh, Bireuen, Aceh Tamiang, Bener Meriah and Gayo Lues regencies as well as parts of neighboring North Sumatra.

Aceh province has 3.3 million hectares of forests, including 2.1 million hectares located in protected and conservation zones. But they have been cut down or changed into farms and plantations, Vanda said.

"Our team found timber and logs were freely transported across the province with no legal documents or clear sources from which they were taken," she said.

Both Walhi and Greenomics said the Aceh and Nias Rehabilitation and Reconstruction Agency (BRR) shared responsibility for the disaster.

"The timber procurement by BRR is questionable as the sources are not clear. The agency doesn't care where the timber comes from because they're only concentrating on Aceh's reconstruction, which leads to rampant illegal logging," said Vanda.

A survey by Greenomics found that the seven regencies being hit by floods have contributed 36 percent of the timber for the reconstruction work in Aceh.

According to Walhi, 120,210 cubic meters of timber from illegal logging was seized during 2006, four times as much as last year.

Based on Forestry Ministry data, Aceh has more than 638,000 hectares designated as production forests. No less than 390,000 hectares of them, 300,000 hectares of which are located in protected and conservation zones, have been destroyed by forest concession holders, according to Vanda.

The government granted concessions to five timber companies to provide timber for the BRR early this year.

The agency projected that Aceh's reconstruction would require about 1 million cubic meters of wood, in order to build 120,000 houses from 2005 through 2009.

Dewa said the destruction of river basin areas across Aceh, connected with the damage to forests, also contributed to the floods. "Nearly half of the river basin areas, totaling 1.5 million hectares, have been damaged," said Dewa.

He also blamed the government. "The government's decision to again allow legal logging and widen concession areas for palm oil plantations was a blunder," he said.

Floods, landslides kill at least 80 in northern Indonesia

Reuters - December 25, 2006

Jakarta – Floods and landslides in Indonesia's Aceh and North Sumatra provinces have killed at least 80 people and forced tens of thousands to flee to higher ground, authorities in the region said on Monday.

Aceh, still feeling the devastating effects of the 2004 tsunami, was hardest hit. Ridwan Sulaiman, head of social affairs in the province, said the death toll was now 42, although the figure could go higher as rescuers reach more remote villages.

Authorities said an estimated 42,000 residents had been driven from their homes by the floodwaters. Most of the damage was in Aceh's Tamiang district, on the northern tip of Sumatra island.

Floods killed 17 people, with almost 50,000 made homeless, in neighboring North Sumatra province, officials said.

Landslides triggered by the rains killed another 21 in the province's Muarasipongi district, Hashim Nasution, deputy mayor of Mandailing Natal, North Sumatra, told Elshinta radio.

Nasution said local residents had just returned to their homes after fleeing last week's earthquake. "We are still trying to locate more people. We received a report that at least four people are still missing in the area," he said.

Authorities have blamed heavy rains as well as the effects of deforestation for the destruction. Lack of adequate forest cover leaves the ground less able to absorb excess water.

Sulaiman said some of the waters in Aceh had begun to recede, leaving behind thick mud that complicated rescue and aid efforts. The Bener Meriah regency was cut off and authorities were awaiting a helicopter to survey the damage, he said.

He said the government and aid organizations had sufficient supplies of food, tents and medicine but transport capable of reaching remote areas remained a problem.

Almost exactly two years ago, on December 26, 2004, Aceh was hit by the Indian Ocean tsunami, which left some 170,000 dead or missing in the province.

 Economy & investment

Tax incentives needed to spur business growth, says analyst

Jakarta Post - December 30, 2006

Jakarta – Incentives should be given to businesses to improve their productivity and increase their taxable incomes, an economist says.

Aviliani said increased production would ensure businesses ended up paying more tax, allowing the government to meet revenue targets.

Taxation director general Darmin Nasution estimated Wednesday revenues from taxes as of Dec. 22 would be at 97.5 percent of the Rp 371.7 trillion (about US$40.4 billion) government target.

Aviliani said incentives could be in a form of a reasonable postponement period for property and income tax payments. This would give companies time to grow, she said.

Medium-term increases in income tax and value-added taxes collected would eventually offset any immediate loss in government revenues, she said.

A new tax bill currently being discussed by the House of Representatives includes other incentives, including a tax cut of up to 30 percent during the first six months for every investment worth at least US$100 million.

President Susilo Bambang Yudhoyono has acknowledged the need to provide tax incentives to small and micro-scale businesses to allow them to benefit from the expected growth forecast for next year.

"Fiscal, monetary and banking incentives are demanded by all businesses," Yudhoyono said Thursday in Jakarta. Aviliani urged the government to create policies to ensure the availability of raw materials and otherwise support local industry.

"The aim is to ensure normal flows of production from upstream to downstream."

She noted the government had been unable to secure raw materials for the timber industry after raids on illegal logging operations intensified during past months.

Economic performance - good but not good enough

Jakarta Post - December 28, 2006

Hendarsyah Tarmizi, Jakarta – If the government's macroeconomic targets are used as the yardsticks to assess the country's economic performance this year, the results would be fairly good.

However, if past performance is used as an indicator, the country would score badly because this year's performance is worse than the nation's in 2005.

Most macroeconomic indicators, such as inflation, GDP growth and exports, have met the government's 2006 targets, but they are mostly lower than those recorded in 2005.

The most outstanding achievement in managing the economy was Bank Indonesia in keeping inflation in check.

Bank Indonesia's move to impose a high interest of 12.75 percent on its promissory notes, or SBIs, from November last year until the end of July, has successfully squeezed money circulation and resulted in a sharp decline in inflation.

The central bank has successfully cut down the inflation rate within the level of the goverment's target, albeit at a high cost. The bank is estimated to have spent at least Rp 20 trillion (US$2.2 billion) a year to pay the interest of its SBI notes.

Inflationary pressure first began last November following the hike in fuel prices in October and continued for the year's first semester.

Inflation peaked to as high as 17 percent in January and February before dropping to about 15 percent in March, April and June.

With the tight money policy imposed by the central bank, inflation continued to decline in the second semester. It fell to 15.15 percent in July, 14.9 percent in August, 14.55 percent in September before further diving to 6.29 percent in October and 5.27 percent in November.

The year's annual inflation is estimated to check in at between 5.5 and 6 percent, still within the 5.8 percent target set by the government.

Lower inflation growth has given the central bank much room to reduce the interest rates on its SBIs, which dropped to 11 percent from 11.75 percent in August, to 10.75 percent in October, 10.25 percent in November and 9.75 percent in October, much lower than the government's target of 12 percent.

The lower interest and inflation rates have fueled consumer expenditure during the past three months; the main driving factor in economic growth during the past two years.

Chairman of the Indonesian Retailers Association Handaka Santoso says the cut in the interest rate has resulted in high consumers spending, which in turned boosted retail business.

He estimates that this year, retail business increased by 20 percent to about Rp 50 billion (US$5.5 billion) from about Rp 40 trillion the previous year.

The falls in inflation and interest rates have also renewed business confidence, particularly in the stock market. Trading activities on the Jakarta Stock Exchange have intensified rapidly during the past three months as many investors switch a larger portion of funds from bank deposits to portfolio investments.

Renewed trading on the stock exchange has pushed up the JSX composite index to its highest level in history, breaking the 1,700 barrier.

The index, the main price barometer in the exchange, closed at 1,783.9 on Tuesday, an increase of more than 50 percent from 1,162 at the start of the year.

Easing inflation has also pushed up the rupiah's value against the US dollar to a more realistic level. The rupiah fluctuated between Rp 9,000 and Rp 9,500 during the first 11 months of this year.

In the past two weeks, the currency has strengthened to Rp 9,200 against the greenback, slightly higher than the government's target of Rp 9,300, and far better than last year's average of Rp 9,705.

The impact of the lower SBI rates, however, has not affected the banking industry. Although some banks have lowered their deposit rates to below 9 percent, average lending rates still hover at between 16 and 18 percent. It will therefore take a few more months before businesses are able to get more affordable loans.

According to the chairman of the Indonesian Chamber of Commerce (Kadin), M.S Hidayat, lending rates should drop to about 12 percent to enable industry to generate higher growth.

The country's banking industry is among the business sectors that recorded lower growth this year. New loans extended by local banks rose to about 9 percent as of October to Rp 66 trillion. The central bank has predicted new lending this year would grow by about 13 percent, much lower than the 20 percent booked by the industry in the previous year.

Many banks have put a large amount funds into SBI notes and government bonds instead of extending them as loans to the business sector.

This is one of the reasons for slow growth in the real, or non- financial, sector.

The Industry Ministry has estimated that the country's non-oil and gas sector will grow by 5 percent this year, below its target of 5.25 percent. This would be quite disappointing given the fact that the target had already been cut from the 7.7 percent target set at the start of the year.

Indonesian products, except natural resources-based commodities, such as oil and gas, and mining and agricultural products, have been losing their overseas markets as a result of being unable to compete with cheaper products from China and Vietnam.

Total exports amounted to about $82.21 billion for the January- October period, a 16 percent increase from the same period last year. Meanwhile, oil and gas exports grew by 17.99 percent to $64.67 billion.

Although this year's export growth will likely meet the government's conservative target of 9.4 percent, it will be much lower than the figure recorded in 2005. In 2005, growth in total exports reached 19.53 percent, while that of non-oil and gas exports amounted to 18.55 percent.

The bad news came from the investment front. Despite many efforts to improve the business climate, actual or realized investment continues to fall both in terms of value and in the number of projects involved.

Realized foreign investment for the year up to the end of November plunged by 46 percent to $4.69 billion from $8.67 billion in the same period last year. The same also applied in the case of domestic investment, which fell by 37 percent in value to Rp 16.9 trillion from Rp 26.9 trillion during the first 11 months of 2005. The rate of growth of realized investment was thus far lower than the government's already low target of 7.7 percent.

This put Indonesia's realized investment on a declining curve for the fifth straight month since June.

New investment approvals, however, fared much better amid an improvement in the business confidence indexes produced by independent research agencies.

Foreign investment approvals during the first 11 months of the year rose by 18 percent to $3.88 billion, while domestic investment approvals almost tripled to Rp 157.5 trillion.

With regard to foreign tourist arrivals, the results were also worrying. According to figures issued by the Central Statistics Agency (BPS), the number of foreign tourists totaled only 3.22 million during the first 10 months of this year, representing a 7.91 percent drop from the same period last year.

Foreign tourist arrivals on Bali, the country's most popular tourist destination, plunged even more, amounting to only 1.08 million, or a drop of 17.23 percent compared to the first 10 months of last year.

The unfavorable economic conditions also had an adverse effect on the country's gross domestic product.

According to BPS figures, the GDP grew by only by 5.22 percent during the first nine months of this year, compared to the same period last year.

The growth during January-September was lower than the 5.8 percent projected by the government, and the 5.6 percent growth recorded in 2005.

The slow pace of economic growth had a knock-on effect on state revenues. According to reports from the Finance Ministry, this year's state revenues might come in at between six and eight percent lower than the target

This year's economic performance has been widely affected not only by the sluggish conditions in the domestic market but also the slowdown in the global economy, which has impacted on many of Indonesia's trading partners.

But with more solid economic fundamentals, as reflected by the fall in inflation and interest rates, and an improvement in business confidence over the past several months, the country's economic outlook should be much more promising next year.

If the momentum is properly managed, it is not impossible that 2007 could become the turning point for Indonesia in its quest to regain the high growth rates enjoyed in the early 1990s.

Government investment drive hindered by power shortages

Jakarta Post - December 28, 2006

Benget Simbolon Tnb., Jakarta – The government made a big push in 2006 to lure new foreign investors to Indonesia, but a number of urgent problems continue to keep investors away. One of these problems is a serious shortage of electricity.

As the growth in demand outstrips supply, the country has experienced frequent power blackouts, particularly in Java, Bali and Sumatra, since early this year.

Last month, Java and Bali, where about 80 percent of the electricity is used, experienced electricity shortages of 250 MW when state-owned power firm PT PLN had to cut power due to malfunctions at a number of power plants, including the gas-fired Paiton unit 8 and gas-fired Suralaya unit 6.

The power cuts not only inconvenienced the public, but also had a negative impact on business circles.

Indonesian Employers Association (Apindo) chairman Sofjan said the power shortages caused financial losses to companies because of production cuts, lost work hours and the late delivery of goods to customers. The power shortages also hindered existing industries' expansion plans and dissuaded new investors from starting businesses here.

PLN says the power shortages result from a lack of new investment in power plants between the period of 2000 and 2005.

According to data from last year, Indonesia's installed electricity capacity reached about 25,000 megawatts, most produced in Java and Bali, with about 5,700 MW produced in regions outside of Java and Bali.

With the electricity supply growing by just an average of 7 percent a year, much lower compared to the demand growth of 9 percent a year, the demand-supply gap will continue to widen without new investments in power plants.

PLN predicts that to meet surging demand, Indonesia will need additional electricity production of 10,000 megawatts until 2009. Failing this, the country will face a serious power crisis, meaning more frequent blackouts.

To ward off the looming crisis, the government has taken a number of steps. It has launched a crash program to provide an additional supply of 10,000 MW until 2009. Some 8,000 MW of that will be produced by private companies, while the rest will be produced by PLN with financing to be sourced by issuing new bonds.

The government has secured a number of deals with four companies from China to produce 8,000 megawatts of electricity with coal- fired power plants in Java and Sumatra.

The government said that in the next few years, about 85 percent of power demand would be generated by coal and gas-fired power plants.

It is also preparing the construction of a US$4.8 billion nuclear power plant in Gunung Muria, Central Java, which would have the capacity to produce about 4,000 MW, enough to meet the total power demand in Java, Madura and Bali.

Gorontalo Governor Fadel Muhammad said his administration had secured a cooperation agreement with Russia to build a nuclear power plant in the region. It is expected to start operation late next year.

The government is also promoting alternative energy sources such as geothermal, wind and water power. But still it has indicated that it will prioritize gas and coal-fired power plants and nuclear plants, which are relatively cheaper and faster to construct.

The cost of producing electricity using coal, gas and nuclear power averages more than Rp 100 per kilowatt hour (KWH), compared to more than Rp 600 using oil.

While relying on gas and coal-fired plants could close the electricity demand-supply gap in the near future, analysts have warned it could worsen the country's environmental problems.

Despite a new technology called fly ash to reduce pollution, coal-fired plants still pose an environmental danger.

And considering that Indonesia is one of the world's most corrupt countries, combined with a lack of qualified human resources in the nuclear technology field, there is a risk of a major catastrophe with nuclear plants. One only need look at what happened in Chernobyl, where almost 100,000 people died and thousands more experienced serious health problems after a nuclear accident.

The government must encourage the development of new power plants, which is vital for supporting efforts to attract foreign investors to the country.

But in doing, Jakarta should focus on energy sources that are more environmentally friendly and will benefit the people.

Analysts have said hydroelectric plants should be considered, as their dams could also benefit local people through, among other things, fishery and tourism activities.

 Opinion & analysis

Monster or protector?

Jakarta Post Editorial - December 27, 2006

Few might have ever thought when this nation – through its representatives in the People's Consultative Assembly – agreed in 2001 to establish the Constitutional Court, that the new judicial institution would emerge as such a powerful body that many fear it could undermine democracy itself.

Criticism of the Constitutional Court for annulling the 2004 Truth and Reconciliation Commission Law and for questioning the legitimacy of the Anticorruption Court earlier this month has capped widespread anxiety that the Constitutional Court is exceeding its jurisdiction.

Both domestic and international rights campaigners say the striking down of the Truth and Reconciliation Commission Law will only serve to perpetuate the impunity of those who perpetrate the sort of crimes against humanity that have been such a feature of the Indonesian scene in the past. For its part, the House of Representatives perceives the court ruling as infringing on its legislative powers as the decision to annul the entire statute went far beyond the original petition impugning the legislation.

When it tampered with the 2002 Corruption Eradication Commission Law by declaring the Anticorruption Court, as currently constituted, to be inconsistent with the country's judicial system, many lashed out at the court for undermining the nationwide anticorruption drive.

A group of lawmakers have gone so far as to demand the amendment of the 2003 Constitutional Court Law in order to restrict the court's powers.

In the more than three years since its inception, the court has reviewed no less than 50 statutes and made changes to 28 of them. Some of its decisions won applause, including this month's ruling annulling a Criminal Code provision outlawing "insults" against the presidency, and a June ruling requiring the government to allocate 20 percent of the national budget to education. Some others have drawn criticism, including its ruling against the retroactive application of the antiterrorist legislation in the trials of those linked to the 2002 Bali bombings, and the controversial recognition of West Irian Jaya province.

"Many have perceived us as going against the mainstream," the court's president, Jimly Asshidiqqie, said during a ceremony to commemorate the court's third anniversary last August, referring to its controversial rulings.

Billed as the guardian of the Constitution, the court was intended to ensure that the checks and balances mechanisms, which have proved so unreliable in the past in Indonesia, might finally be allowed to work. Besides having the right to annul laws that it finds are repugnant to the Constitution, the court also has jurisdiction to hear and decide upon moves to impeach the president.

It is obvious, however, that the dispute between the House and the Constitutional Court does not really center on the court's rulings, but rather on the fact that the nine-member court can undo the work of 700 legislators elected by the Indonesian people. The court's judges were selected by the House, or, to be precise, the members of the House legal affairs commission.

While the argument looks valid, the Constitutional Court has taught the lawmakers, as well as the government, the valuable lesson that the law-making process requires competence, as well as political will and compromises.

In fiscal 2006, the House allocated Rp 640 million for each bill it drafted, while the government spent up to Rp 6 billion. The House plans to double this funding next year in a bid to boost productivity in the framing of legislation. Statistics show that the lawmakers have chronic problems with productivity. They endorsed 14 out of the 55 bills in the pipeline in 2005, while this year their performance has only slightly improved, with 37 out of 78 bills being passed.

Quality is another weak spot plaguing the framing of legislation in Indonesia, as the Constitutional Court has pointed out. Therefore, improving the capacity of our lawmakers is imperative; otherwise a tidal wave of challenges to the constitutionality of statutes will ensue. The Constitution, which provides the legal foundation for all legislation, must be upheld if the nation wishes to achieve real democracy and prosperity.

However, it may be dangerous to leave the job of interpreting the Constitution to the Constitutional Court alone. Moreover, there is no longer any institution that can assess the work of the court after it annulled the power of the Judicial Commission to oversee the work of members of the judiciary, including the nine Constitutional Court judges, last July. "The Constitutional Court has the potential to emerge as a superbody," commented worried constitutional law expert Lodewijk Gultom.

Such concerns are worth considering and should spark a debate on how to redraw the rules of the game. As Gultom has put it, a fifth amendment to the Constitution is required to redefine the boundaries of the Constitutional Court's jurisdiction and to reinstate the annual People's Consultative Assembly plenary session to hear and evaluate reports from the high organs of state, including the Constitutional Court.

To make the system of checks and balances effective, no single high organ of state should be able to stand above the others. A healthy discourse on the Constitutional Court's jurisdiction is essential to building an independent court that protects and upholds the Constitution. Otherwise, the court could turn into a monster.


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