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Indonesia News Digest 29 – August 1-8, 2015

News & issues

West Papua Military ties Human rights & justice Labour & migrant workers Freedom of speech & expression Political parties & elections Mass organisations & NGOs Health & education Marriage & polygamy Graft & corruption Terrorism & religious extremism Sex & pornography Agriculture & food security Land & agrarian conflicts Governance & administration Jakarta & urban life Armed forces & defense Foreign affairs & trade Infrastructure & development Economy & investment Analysis & opinion

News & issues

Rachmawati sings praises of Kim Jong-un

Jakarta Post - August 1, 2015

Jakarta – Rachmawati Soekarnoputri, the daughter of first president Sukarno, has said she would like to give an award to North Korean leader Kim Jong-un for his contribution to the fight against neocolonialism.

Rachmawati revealed the plan during a meeting with North Korean Ambassador to Indonesia Ri Jong-ryul on Thursday at her private residence in Central Jakarta.

"Kim Jong-un has similar thoughts to Sukarno. They have similar visions and missions," Rachmawati said as quoted by kompas.com. The world, she said, had treated him unfairly, pigeonholing him as merely a brutal dictator.

"It's Western propaganda. [...] It's the same old story told with certain ulterior motives," she said, adding that her father had also been deemed a dictator by many in the Western world.

In 2002, her Soekarno Education Foundation awarded Kim's grandfather, Kim Il-sung, the same award for his "peacemaking" efforts. Rachmawati, who is also a Gerindra politician, said that her foundation was working out details on how to deliver the award to Kim.

Source: http://www.thejakartapost.com/news/2015/08/01/national-scene-rachmawati-sings-praises-kim-jong-un.html

West Papua

Forum leaders to talk West Papua

Solomon Star News - August 8, 2015

Pacnews – Increased regional awareness of alleged violence and human rights violations in West Papua has convinced the Pacific Islands Forum Secretariat's Specialist Sub-Committee on Regionalism (SSCR) to recommend that it becomes one of the five priority issues to be the agenda of the Pacific Forum Leaders when they meet in Papua New Guinea next month.

The recommendation will go before the Forum Officials Committee (FOC) for a final endorsement, when it meets in Suva next week.

SSCR documents obtained by PACNEWS reveal the Sub-Committee decided to act after an "increasing groundswell of support in the region for the people of West Papua, reflected in part by the media, particularly social media."

In addition, the Sub-Committee received three strong submissions from various interest groups around the region advocating the peaceful resolution of the struggles of the people of West Papua.

In recommending the Sub-Committee's suggestion for the agenda issues, Forum Secretary General, Dame Meg Taylor said since the Leader's statement in 2006, "proponents suggest that the human rights situation has deteriorated. The Sub-Committee acknowledged the Forum's history and regional role in assisting territories achieve self-determination", said Dame Meg.

The 2006 Forum Leaders expressed concerns about reports of violence in Papua and urged Indonesian authorities to bring to justice the perpetrators of serious crimes in the Province of Papua.

Pacific Forum Leaders will be asked to consider the situation in West Papua and publicly express their concerns over human rights and to resolve difference between all parties by peaceful means.

In June this year, the Melanesian Spearhead Group admitted the United Liberation Movement for West Papua as an observer member while Indonesia was granted associate membership.

From submissions made to the Specialist Sub-Committee on Regionalism, three possible actions were recommended.

These include a fact finding ministerial group from the Pacific Islands Forum to West Papua, include West Papua on the UN Decolonisation List and impose sanctions against Indonesian companies and government enterprises found to be committing human rights abuses.

However, the Sub Committee recommends that Leaders consider additional alternative options – "to seek political dialogue with Indonesia, through the Post Forum Dialogue process to discuss human rights situation in West Papua, seek to engage at the ministerial level through the Forum Foreign Ministers and direct the Forum Secretariat to maintain a watching brief and submit a report to the next Leaders meeting."

"Addressing the issue of West Papua issue has the potential to create tension amongst Forum members and with Indonesia given the bilateral relations members have with Indonesia and its status as a Post Forum Dialogue Partner", acknowledges the SSCR report.

The decision on whether the issue will be taken up to the Leaders in Port Moresby next month will be determined by the Forum Officials Committee.

Source: http://www.solomonstarnews.com/news/regional/7793-forum-leaders-to-talk-west-papua

Lawmaker alleges Jewish conspiracy in Papua

Jakarta Post - August 6, 2015

Jakarta – Chairman of House of Representatives Commission I overseeing foreign affairs and defense Mahfudz Siddiq has called for a probe on the alleged presence of Israeli nationals and Jewish religious insignia on houses in Tolikara, Papua.

Mahfudz said that although it was impossible that Israeli nationals had been conducting proselytizing projects in the area, the authority needed to conduct a probe soon.

"Evidence about the presence of Israeli nationals in Papua, as well as photo's of Jewish insignia on houses in the area have been circulating on social media and this is no coincidence," said Mahfudz, a lawmaker from the religious Prosperous Justice Party (PKS) as quoted by tribunnews.com.

Mahfudz claimed that since Judaism was an exclusive faith that does not allow conversion into it by non-Jewish people, he suspected that some of the Israeli nationals were running a political operation in the area.

"It is likely that they are conducting an operation over the whole of Papua and not just Tolikara. The National Police, the National Intelligence Agency [BIN], the Indonesian Military and the Foreign Ministry need to conduct a probe on people with Israeli passports," he said.

Earlier last month, a fatal clash between Christian and Muslim groups in Tolikara led to police shooting guns, the death of one teenager, the torching of a mosque and the destruction of a number of kiosks.

The authorities said that tensions were triggered by a letter from the Tolikara chapter of the Evangelical Church of Indonesia (GIDI), demanding that local Muslims not carry out loud outdoor Idul Fitri prayers on July 17.

Source: http://www.thejakartapost.com/news/2015/08/06/national-scene-lawmaker-alleges-jewish-conspiracy-papua.html

Police grill GIDI chief for Tolikara clash

Jakarta Post - August 5, 2015

Jayapura – The Papuan Police questioned Evangelical Church in Indonesia (GIDI) president Dorman Wandikbo for six hours on Sunday over a fatal incident that occurred in Tolikara on July 17.

Two lawyers represented the GIDI chairman during the questioning, Sr. Adj. Comr. Nurhabri told Antara news agency on Tuesday.

The police had also called the head of the Tolikara chapter of GIDI, Nayus Wenda, and secretary Mathen Jingga for questioning over the same incident. However, they did not answer their summonses.

In addition, two suspects identified by their initials AK and JW are currently being detained for their alleged involvement in the occurrence. A total of 58 witnesses, including 23 police officers, were questioned by the Papuan Police investigating the case.

On the morning of July 17, hundreds of people reportedly confronted and pelted stones at a group of migrant Muslims performing Idul Fitri prayers outside using loudspeakers in Karubaga, Tolikara. This forced the worshippers, who are a minority group in the area, to flee to a nearby local military office for protection.

The mob allegedly set fires that burned down more than 50 kiosks and houses and a musholla. Police released shots, killing one and injuring 11 others during the unrest.

Source: http://www.thejakartapost.com/news/2015/08/05/national-scene-police-grill-gidi-chief-tolikara-clash.html

Government uses diplomatic efforts to approach OPM

Tabloid JUBI - August 3, 2015

Jakarta, Jubi – Coordinating Minister for Political, Legal, and Security Affairs Tedjo Edhy Purdijatno said the government is adopting a persuasive approach to deal with Free Papua Movement (OPM).

"The government put forward a persuasive approach within the framework of development and welfare in order to deal with OPM, "said Tedjo, during a discussion entitled "Vote for Papua" in Jakarta on last week.

He said Indonesian authorities in Papua were actually exploring diplomatic efforts with groups who are seeking independence for Papua. "There are representative of Kemenkopolhukam and the Intelligence Agency State in Papua," he said.

In addition, President Joko Widodo has also urged for fighters hiding in the jungle and mountains in Papua to come out and join the government. "The president always encourages them to jointly develop Papua. However, it can not be forced upon them," he said.

The government will always give space to Papuans who want to come and express their opinions, he said. He said government welfare programs include national granary in Merauke, infrastructure, road construction, and plans to build a cement plant in Papua.

Discussion on "Vote for Papua" was also attended by the Minister of Transportation Indonesia 2009-2011 period, Freddy Numberi and Indonesian Ambassador for the Philippines and former Military Commander VII/Trikora or now known as the Military Command XVII/Cendrawasih Lt. Gen. (Ret.) Johny Lumintang. (Tina)

Source: http://tabloidjubi.com/en/2015/08/03/government-uses-diplomatic-efforts-to-approach-opm/

Military ties

Indonesia to finalize weaponry system plans with Turkey

Jakarta Post - August 1, 2015

Jakarta – Indonesia is ready to finalized cooperation plans with Turkey related to the development of a primary weaponry system (Alutsista).

According to Vice President Jusuf Kalla, the issue was discussed by President Joko "Jokowi" Widodo and Turkish President Recep Tayyip Erdogan during a meeting at the presidential palace on Friday.

The government has appointed state-owned weapons manufacturer PT Pindad to execute the cooperation plans.

"We haven't yet talk about Turkey's investment commitment in the Alutsista development cooperation. But of course we will soon discuss matters related to the joint venture," said Kalla as quoted by kompas.com on Saturday.

Jokowi stated on Friday that one of the issues discussed with Erdogan was the eradication of terrorism, which involved a discussion about the Islamic State (IS).

According to Jokowi, the two countries are ready to increase cooperation in intelligence. He also revealed plans to place Indonesian intelligence officers in Turkey.

PT Pindad previously cooperated with other countries to develop Alutsista. It has plans to develop a medium tank with Turkey's FNSS Defence Systems. The latter will provide training for PT Pindad employees to design and produce the tank.

The first tank prototype will be produced in Turkey with the participation of PT Pindad engineers. The second prototype will be produced in Indonesia by PT Pindad. (edn/kes)(+++

Source: http://www.thejakartapost.com/news/2015/08/01/indonesia-finalize-weaponry-system-plans-with-turkey.html

Human rights & justice

1965 massacre seminar cancelled after intimidation

Tempo.co - August 6, 2015

Raditya Pradipta, Jakarta – A seminar on 1965 massacre in Salatiga, Central Java, was cancelled following an act of intimidation and terror. "The event will be postponed until undetermined time," said the Head of 1965 Massacre Victims Research Institute (YPKP 65), Bedjo Untung, on Thursday August 6.

"Some local organizations called for the locals to wage jihad and attack the seminar," said Bedjo. He added that prior to the seminar, social media was filled with hatred messages, showing communist flag near the seminar site.

"I have confirmed with the committee and such news was nowhere near true. It was a mere manipulation and provocation," he said. "We are fighting for the rights of the victims of massacre, asking the state to reinstate their rights."

The incident is the second thing to happen to YPKP 65 in the past six months. Previously, YPKP 65 meeting in Bukittinggi, West Sumatra, shared the same fate as the locals forced it to end.

Source: http://en.tempo.co/read/news/2015/08/06/055689790/1965-Massacre-Seminar-Cancelled-After-Intimidation

Victims of 1965 killings postpone national meeting following death threats

CNN Indonesia - August 6, 2015

Aulia Bintang Pratama, Jakarta – A national meeting of the Institute for the Study of the 1965-1966 Massacres (YPKP 65) that was to be held mid next week in the Central Java city of Salatiga has been postponed following death threats against organising committee members.

Several YPKP 65 have also been approached by intelligence officer from the national police urging them to postpone the event.

YPKP 65 chairperson Bedjo Untung said that the threats came from the Islamic Defenders Front (FPI) and the Islamic Defenders Guard (GPI) adding that the threats contained many provocative words.

"They are fundamentalist groups who call themselves the FPI and the GPI and use the words of jihad [war] and say that [spilling] the blood of former political prisoners is halal [rightful under Islamic law], said Untung in Jakarta on Thursday August 6.

Untung added that the provocation has in fact affected the mood of the YPKP 65 members that were invited and frightening them.

Yet the national meeting was to be attended by only 50 people, including representatives from the government's National Human Rights Commission (Komnas HAM), the National Commission on Violence against Women (Komnas Perempuan), the Witness and Victims Protection Agency (LPSK) and the Law and Human Rights Ministry.

Further, the location for the event, the LP3S Building, had already been prepared to hold the event. Moreover the building's management, said Untung, had no problems with the venue being used for a YPKP 65 gathering.

"Not only the building management, even the mayor of Salatiga has given approval and support", said Untung.

Untung said that the organising committee however became concerned about continuing with the event after several intelligence officers from the police in Salatiga approached the committee and appealed to them not to hold the national meeting.

Moreover the building management was persuaded to withdraw permission to hold the event. "The police intelligence asked that the national meeting be cancelled, not just postponed", he said.

After some consideration, Untung and the YPKP 65 members planning the meeting decided to postpone the event on the grounds that it could give rise to heavy financial losses if it went ahead. "I anticipated that it could give rise to even greater financial losses", said Untung.

Based on information obtained by CNN Indonesia, the threatening messages called on FPI members to conduct a jihad to wipe out communists. The messages also called on the FPI not to allow the Indonesian Communist Party (PKI) to exist in Indonesia.

Earlier the YPKP 65 had also been accused of putting up hammer-and-sickle flags in Salatiga in the lead up to the national meeting. The news of the flags spread quickly on the social media and attracted many comments from net citizens. The YPKP 65 however has denied responsibility for this provocative action.

"We were indeed to hold a national meeting on August 7-8 in Salatiga. However we have never flown flags of any kind related to communism", said Untung when contacted by CNN Indonesia on Monday August 3. "It's not true, it's a manipulation and provocation", he said.

Untung said that since its formation, the YPKP 65 has never used communist terms or logos and symbols related to communism such as the hammer-and- sickle in any of the events or activities that it has held.

The YPKP 65's activities, said Untung, are related to the struggle for the rehabilitation of the victims of human rights violations in 1965, particularly those that have been stigmatised or treated unfairly by past governments (utd)

[Translated by James Balowski for the Indoleft News Service. The original title of the report was "Dapat Ancaman FPI, Temu Nasional Korban 65 Dibatalkan".]

Source: http://www.cnnindonesia.com/nasional/20150806155400-20-70499/dapat-ancaman-fpi-temu-nasional-korban-65-dibatalkan/

Labour & migrant workers

Workers attack Banyu Urip project site in Cepu

Jakarta Post - August 2, 2015

Bojonegoro, East Java – Thousands of angry workers at a construction site at the Banyu Urip oil field in Bojonegoro, East Java, reportedly destroyed facilities at the site on Saturday after they found that were unable to immediately leave the site at lunchtime.

The incident disrupted production activities at the field, located within the oil-rich Cepu block.

Bojonegoro Police chief Adj. Sr. Comr. Hendri Fiuser said the incident, which took place at the engineering, procurement and construction (EPC 1) area of the Banyu Urip project site in Gayam district, started at noon and lasted 30 minutes.

Prior to the incident, the workers, according to Hendri, were about to leave the site for lunch. However, unlike regular days, only two exit gates were open instead of five. The workers instantly became furious at having to wait in line for so long to leave the site.

"Thousands of workers who had waited so long to leave the site eventually got angry and attacked onsite vehicles and offices at the Cepu block project site," Hendri said as quoted by Antara news agency. He said the number of exit gates had been reduced as a result of changes in management policy.

Banyu Urip is currently the backbone of national production. Crude oil output from the field is expected to increase from 80,000 barrels of oil per day (bopd) to 205,000 bopd, or about 25 percent of the targeted national output of 825,000 bopd.

State-owned oil and gas company Pertamina, through its subsidiary PT Pertamina EP Cepu, holds a 45 percent interest in the Cepu block. ExxonMobil Cepu Ltd., which is a subsidiary of ExxonMobil Corporation, holds another 45 percent and is the operator of the block.

Bojonegoro Regent Suyoto said one car had been burned in the incident. "However, [the workers] did not burn the office," he said.

There are currently five major projects being developed at Banyu Urip, consisting of central processing facilities, an onshore pipeline, an offshore pipeline and mooring tower, a floating storage and off-loading (FSO) vessel and supporting infrastructure.

ExxonMobil Indonesia vice president for public and government affairs Erwin Maryoto said the incident had taken place after subcontract workers, who were employed through Tripatra-Samsung, the EPC 1 contractor, had been unable to leave the site early at lunchtime.

"Several workers became agitated and the situation escalated and [turned into a] disturbance involving property and vehicle damage," he said in a written statement.

Although the situation had been contained, Erwin said the company had decided to reduce production in affected areas. "The safety of our workforce and facilities is our top priority."

Source: http://www.thejakartapost.com/news/2015/08/02/workers-attack-banyu-urip-project-site-cepu.html

Freedom of speech & expression

Jokowi backs defamation law, House may reject provisions

Jakarta Post - August 6, 2015

Ina Parlina and Arya Dipa, Bandung/Bogor – President Joko "Jokowi" Widodo said on Wednesday that he supported the government's proposal to reinstate insulting the president as a criminal offense, although he said that he was personally not a big fan of the idea.

The government is seeking to re-introduce criminal charges for insulting the president in the draft of a Criminal Code (KUHP) amendment, a provision that had been annulled by the Constitutional Court.

"It is still a draft, so why the fuss? I have said I have been mocked and scorned since I was a [Surakarta] mayor, a [Jakarta] governor and now President. I am used to it," Jokowi told reporters at the State Palace on Wednesday.

Jokowi also reminded those concerned that the idea to restore the provisions had actually been proposed by Susilo Bambang Yudhoyono's administration in 2012, but the deliberation had been delayed.

The Constitutional Court scrapped three articles on insulting the president from the KUHP in 2006, but a person can still be charged for defamation if someone files a report against that person, as stipulated in articles 310 and 311.

The most recent case involved South Jakarta District Court judge Sarpin Rizaldi, who sued Judicial Commission (KY) members Suparman Marzuki and Taufiqurrohman Syahuri for publicly criticizing his controversial verdict on the pretrial hearing of Comr. Gen. Budi Gunawan.

Sarpin reported the two KY commissioners to the police after both said that Sarpin had acted beyond his authority to clear Budi of criminal allegations. The KUHP amendment is a legislative priority for the House of Representatives for this year.

Article 263 paragraph 1 of the draft bill says that a person might face a maximum of five years' imprisonment for insulting the president or the vice president. In addition, the article also stipulates that a criminal charge is not applicable for criticism or self-defense.

The proposed article 264 stipulates that a person who distributes or displays writing or imagery defaming the president in public may also face a five-year term of imprisonment.

In the 2006 ruling, the Constitutional Court almost unanimously ruled that the three articles in the KUHP – articles 134, 136 and 137 – undermined the right to freedom of speech mandated by the Constitution and caused uncertainty, as those articles were subject to multiple interpretations.

At that time, the court's ruling, which was made in favor of lawyer Eggi Sudjana and activist Pandapotan Lubis who were facing charges for slandering Yudhoyono and his aides, was applauded by human rights and political activists.

The KUHP, which also ruled that burning pictures of the president and vice president and mocking them in public were insults and the violators were subject to a maximum of six years' imprisonment, was often used by former President Soeharto to silence critics during his 30 years in power.

Jokowi said that he would leave it up to the House to reject the provisions.

Separately, Law and Human Rights Minister Yasonna H. Laoly defended the plan, saying that charges for those insulting the president would ensure equality before the law, arguing that the president, as the head of state, needed to be protected.

"It's unfair and discriminatory if we [common people] can sue [someone for defamation], but the president is excluded," Yasonna said in Bandung, West Java, on Wednesday.

Yasonna also questioned why the plan had only now sparked criticism despite the provisions that were already proposed by the previous administration.

Human rights activist Wahyudi Djafar, who is also a researcher with the Institute for Policy Research and Advocacy (ELSAM), criticized the plan, saying that it would be a setback for democracy.

"Re-introducing the provisions is against the spirit of the reform of the Criminal Code that aims to move on from the legacy of colonialism," he said, adding that the scrapped articles aimed to protect a king or a head of state, not a president or a head of government.

"The lese-majeste provisions are not in line with today's democratic system given that those articles curb freedom of speech, particularly criticism of the government," he added.

Source: http://www.thejakartapost.com/news/2015/08/06/jokowi-backs-defamation-law-house-may-reject-provisions.html

Outrage in Indonesia at bid to revive presidential insult law

Agence France Presse - August 6, 2015

Jakarta – A bid by the Indonesian government to revive an authoritarian- era law that makes insulting the president a crime sparked outrage Thursday, with thousands taking to social media to denounce the plan.

The administration of President Joko Widodo, commonly known as Jokowi, this week proposed reinstating legislation which was used by former dictator Suharto to silence critics during his three decades in power.

The Constitutional Court revoked the law in 2006, eight years after the downfall of Suharto and the introduction of democracy, ruling that it undermined freedom of speech.

The move to reintroduce the law, which could see those who insult the president in public jailed for up to five years, sparked anger online.

"The president should and must be able to be criticised because he, as the head of the government, is running an agenda that concerns the public," tweeted Haris Azhar, chairman of prominent rights group Kontras.

The proposal has also faced criticism in parliament, with most lawmakers opposing it, meaning it is unlikely to become law.

Widodo, whose popularity has fallen after a series of policy missteps, has argued that the revival of the law is aimed at protecting presidents as the symbol of the state.

Teten Masduki, a presidential spokesman, also insisted the law would not be used to suppress criticism.

Source: http://www.thejakartapost.com/news/2015/08/06/outrage-indonesia-bid-revive-presidential-insult-law.html

Bid to revive Suharto-era defamation clause riles activists

Jakarta Globe - August 5, 2015

Jakarta – Indonesian Justice Minister Yasonna Laoly has defended the government's bid to revive an article on defamation against the president through an amendment to the country's Criminal Code, saying it had already been proposed by the previous administration.

"The article was there before," Yasonna said on Wednesday as quoted by Detik.com. "It was presented to the House of Representatives during the SBY presidency," he added, referring to former president Susilo Bambang Yudhoyono.

Yasonna said that the current proposed provision would be different from that filed by the Yudhoyono administration, which had been heavily criticized by human rights and pro-free speech activists as well as the former president's opponents.

The Indonesian Democratic Party of Struggle (PDI-P), the largest party in the House and political vehicle of the current president, Joko Widodo, was an opposition party under Yudhoyono.

"In the past, police had the discretion to arrest someone if they felt that person had insulted the president. Now, a formal complaint from the president is needed," Yasonna said. "If there's no complaint, there's no problem."

He said the proposed restriction would not include criticism of a president's policies and actions. "Criticism is not included. We want people to criticize us. The provision only covers personal insults," he added.

President Joko has promised that the article will not be used to silence critics of the administration, including civil society activists and opposition politicians.

The article "protects critical people. Don't get this wrong," he said on Tuesday. "I personally am fine with people insulting me. I deal with them every day. But we have to think about the long term: protecting the presidency as a symbol of the state, not just me personally."

But activists warn that the article, however well-intentioned, poses a threat to Indonesia's democracy and free speech, which were hard won after the ousting of former president Suharto. Similar provisions were used during Suharto's 32-year iron-fisted rule to silence critics and the opposition.

"The definition of what constitutes an insult is not clear," Haris Azhar, from the nongovernmental Commission for Missing Persons and Victims of Violence (Kontras), told Kompas, arguing that the provision was open to multiple interpretations.

"It is not important to include an article on defaming the president. It should be withdrawn instead because it is outdated. The implications are too vast for Indonesia's democracy."

House of Representatives Speaker Setya Novanto on Tuesday asked the government to reconsider the inclusion of the article, in response to the ongoing criticism. However, he agreed that a president needed some form of protection against slander. "It is the job of all to protect the presidency as an institution," he said.

Jimly Asshiddiqie, who as chief justice of the Constitutional Court struck down the Suharto-era defamation provision from the Criminal Code in 2006, dismissed Yasonna's argument that the article would be directed only against those found to be personally insulting the president.

Jimly, who retired from the Constitutional Court in 2008, said that the Criminal Code already gave all Indonesians, including the president, an opportunity to seek litigation if they felt they were the target of slander or libel.

"The presidency as an institution cannot be insulted because it has no feelings," he said. "A president can feel insulted as a person. If that happens, a president has the same rights as anyone else to go to the police." He added that there should be no specific articles on defamation giving the president greater privileges than other citizens.

Source: http://thejakartaglobe.beritasatu.com/news/inclusion-defamation-clause-causes-controversy/

Government plans to restore defamation articles

Jakarta Post - August 4, 2015

Jakarta – The government is seeking to restore defamation of the president as a criminal offense, a provision that had been removed from the Criminal Code (KUHP).

In its proposed amendment of the KUHP, the government has reintroduced the defamation articles, which had been annulled by the Constitutional Court.

Vice President Jusuf Kalla said it was reasonable to consider the proposal since a president should be respected in every country in the world.

"The president is the head of state, so if someone insults or acts contemptuously against the president, it will [destabilize] the government, so it's fair enough," he said on Monday as quoted by kompas.com.

Lawmakers at the House of Representatives have objected to the restoration of the controversial articles. Aziz Syamsuddin, the head of House of Representatives' Commission III overseeing law and legal affairs, said it was not possible to restore a provision that had been annulled by the Constitutional Court.

The Constitutional Court revoked articles 134 and 136 of the KUHP in 2006, arguing that the articles contravened the right to freedom of speech mandated by the Constitution.

The judicial review of the articles had been requested by lawyer and activist Eggy Sudjana, who was in trouble for accusing then president Susilo Bambang Yudhoyono's aides of accepting luxurious cars from media mogul Harry Tanoesoedibjo.

The Yudhoyono administration had also proposed restoring the articles but no amendment was made. Lawmakers have made amending the KUHP a legislative priority for this year.

Source: http://www.thejakartapost.com/news/2015/08/04/national-scene-govt-plans-restore-defamation-articles.html

Political parties & elections

Political parties overlook women candidates in local elections

Jakarta Post - August 8, 2015

Syofiardi Bachyul Jb and Markus Makur, Padang/West Manggarai, East Nusa Tenggara – The upcoming simultaneous election for regional heads on Dec. 9 will soon become another male-dominated election in the country, as only a small number of women have received support from political parties to run as candidates in the elections.

Data from the General Elections Commission (KPU) shows that 825 candidate pairs have signed up to participate in the upcoming simultaneous elections, which will be held in nine provinces and 260 regencies and municipalities, by the time it closed the second and final round of candidate registration period on Monday.

The data also shows that only 57 women have signed up as a mayoral, regent or governor candidates, while 61 others registered as deputy mayor, deputy regent, or deputy governor candidates. In total, only 118, or 7 percent of the total 1,650 aspiring participants for the upcoming local elections are women.

In East Nusa Tenggara (NTT), the planned nine local elections in the province have only attracted the participation of one women candidate, namely Maria Geong who will run for the deputy regent post in West Manggarai regency with regent candidate Agustinus Ch. Dulla.

The pair has been jointly endorsed by the Indonesian Democratic Party of Struggle (PDI-P), the country's largest political party, and the NasDem Party, which made its maiden participation in legislative elections last year.

Speaking to The Jakarta Post on Thursday, NasDem lawmaker Johnny G. Plate said the party had previously tried to endorse several women candidates for several local elections in the province. However, popularity surveys showed that they have a slim chance of winning the elections.

"We once tried to nominate a woman to run in the Ngada regional election. However, after considering the results of a survey on the candidate's electability, we finally decided to replace her with a male candidate," Johnny said.

The final decision to nominate candidates, Johnny added, rested with the members of the coalition of political parties that nominates them. As a relatively small party, NasDem, according to Johnny, will of course endorse popular candidates to increase their chance of winning the elections.

"The challenge for NasDem in nominating women as regional head candidates, in the end, was their relatively low popularity and our limited political threshold [to nominate candidates in a region]," he said.

Meanwhile in West Sumatra, Rahmi Brisma, who registered as a deputy mayoral candidate for the Bukittinggi mayoral election, is the only women among 84 participants in the province's upcoming 14 local elections.

Rahmi, a property businesswoman, used to serve as the Bukittinggi Regional Legislative Council (DPRD) councilor for the 1999-2004 and 2004-2009 terms, representing the National Mandate Party (PAN).

In the mayoral election, Rahmi and mayoral candidate Harma Zaldi, however, have been jointly endorsed by the Golkar Party and NasDem. "Six weeks before the candidate registration period, PAN's Bukittinggi branch decided to support our nomination, but finally quit at the last minute after the party failed to get a coalition partner to support us. In the end, Golkar and NasDem agreed to back up our nomination," Rahmi told the Post on Friday.

Indonesian Women Coalition (KPI) activist Tanty Herida blamed political parties for their failure in grooming female cadres and for allegedly maintaining the tradition of 'political dowries' in election candidate selection.

"This [dowry] practice is indeed difficult to prove but it has been a public secret that political parties nominate figures capable of preparing billions of rupiah as ammunition," she said.

Source: http://www.thejakartapost.com/news/2015/08/08/political-parties-overlook-women-candidates-local-elections.html

Parties back graft convicts, suspects in polls

Jakarta Post - August 7, 2015

Jakarta – In an apparent sign of the country's waning commitment to battling corruption, ex-convicts and suspects have flocked to run in elections in 11 regions this December.

Unlike in previous local elections, the General Elections Commission (KPU) has allowed former convicts who have been freed for less than five years to nominate themselves as regional head candidates as long as they announce their history publicly or offer explanation letters from their former prisons.

The Constitutional Court annulled a ban on convicts running in elections in the Regional Elections Law on the grounds that it is against the constitution to prohibit someone's political right to contest elections. Since the ruling, the KPU has also allowed suspects to nominate themselves based on the presumption of innocence.

Former Semarang mayor Soemarmo Hadi Saputro, who was dismissed from office in 2012, has prepared to run again for his old position by announcing in a local city newspaper that he is a former graft convict.

Besides Soemarmo, there are at least eight more ex-convicts pending KPU verification to run in the elections. They are Elly Engelbert Lasut in North Sulawesi, Vonny Panambunan in North Minahasa, Jimmy Rimba Rogi in Manado, Abu Bakar Ahmad in Dompu, Utsman Ikhsan in Sidoarjo, Monang Sitorus in Toba Samosir, Jules Warikar in Supiori and Yusak Yaluwo in Boven Digoel.

They are either former regional heads or local council members who were involved in corruption in their respective regions.

Sabu Raijua Regent Marthen Luther Dira Tome and Poso regency secretary Amdjad Lawasa are also running in their respective regions despite currently undergoing legal processes in corruption cases.

The amounts of money embezzled vary from Rp 340 million (US$25,185) to 77 billion. Out of 11 people, three are independent nominees and the remaining eight are supported by party coalitions.

Among them, the Golkar Party, Gerindra, the Prosperous Justice Party (PKS) and the National Awakening Party (PKB) are behind three of the 11 candidates while the National Mandate Party (PAN) and the Indonesian Justice and Unity Party (PKPI) nominated two and the United Development Party (PPP), the Crescent Star Party (PBB), Hanura and NasDem support one.

Senior Golkar politician Yorrys Raweyai said that the party faced a dilemma over the candidacies. "We know that it is of moral concern. However, the Constitution made it possible. Hence, many of our members tried by themselves to fulfill the legal requirements and prove it to us. Moreover, surveys prove their high electability," Yorrys said.

Gerindra vice chairman Sufmi Dasco Ahmad also pointed to the popularity of the candidates as one basis for their nomination. "Surveys among locals proved them to be popular, so let the public decide. Moreover, the candidates have already made an integrity pact with the parties. We also made other calculations too. If they were elected, we would always supervise them," Sufmi said.

Political parties have struggled to compete in 269 elections slated in December. Despite the registration deadline having passed, there are still seven regions that only have one ticket running. The KPU decided on Thursday to extend the registration from Aug. 9 to Aug. 11, encouraging more candidates to apply.

Indonesia Corruption Watch (ICW) researcher Ade Irawan said the graft- related candidates were mostly in the eastern part of Indonesia.

He said the regions were harder to access for the central KPU and central Elections Supervisory Agency (Bawaslu) in Jakarta and more prone to money politics, resulting in the nomination of poor-quality candidates. "In some remote areas, political parties even place their own people to supervise the process or bribe the officials," Ade said. (rbk)

Source: http://www.thejakartapost.com/news/2015/08/07/parties-back-graft-convicts-suspects-polls.html

Lack of candidates to put number of local elections on hold

Jakarta Post - August 4, 2015

Djemi Amnifu and Indra Harsaputra, Kupang/Surabaya – Local election organizers in several regions have failed to attract more than one pair of candidates to sign up to contest elections for regional heads by Monday, the last day of the second and final round of the candidate registration period, which will likely delay local elections in those regions until 2017.

In North Timor Tengah regency in East Nusa Tenggara (NTT), the local General Elections Commission (KPUD) only saw one candidate pair signed up for the upcoming local election by the time it closed the registration desk at 4 p.m. local time.

"The only pair who registered was Raymundus Fernandez and Aloysius Kobes. We extended the registration period from Aug. 1 to 3, but no more candidates registered by the closure," said North Timor Tengah KPUD head Felix Bere Nahak on Monday.

Under General Elections Commission (KPU) Regulation No. 12/2015, the KPUD can extend the registration period once if they have fewer than two tickets running. If there are not enough candidates in a region, they have to delay the regional election until February 2017.

"We will immediately hold a plenary meeting and issue a decision to delay the entire regional head election," Felix said.

Indonesia is planning to hold the simultaneous elections for regional heads in 269 regions on Dec. 9. As of Sunday, however, 10 regencies and municipalities were on the verge of seeing their respective elections delayed as each of them only have one pair of candidates registering for the elections.

Among the regions are North Timor Tengah, Asahan regency in North Sumatra, Tasikmalaya regency in West Java, Purbalingga regency in Central Java, Surabaya municipality in East Java and South Minahasa regency in North Sulawesi.

While local elections in Asahan, Purbalingga, and South Minahasa will continue after other candidate pairs registered on Monday, those in Surabaya and Tasikmalaya remain on the verge of delay after only one candidate pair registered for each of the two elections by the end of the extended registration period.

On Monday, just a few minutes before 4 p.m., the Surabaya KPUD received the candidacy registration of Dhimam Abror and running mate Haries Purwoko for the city's mayoral election. The KPUD, however, returned the registration documents because of administrative glitches.

"After we verified the documents, we could not find the signature of the deputy mayor candidate. So, we will wait until 11:59 p.m. local time," Surabaya KPUD member Purnomo Satriyo Pringgodigdo said. West Java KPUD member Endun Abdulhaq also confirmed that no more candidate pair signing up for Tasikmalaya election. "A prospective candidate from the Gerindra Party indeed came to the KPUD headquarters but only to inform that he is canceling his candidacy plan," he said.

In Asahan, Brig. Gen. (ret.) Nurhalizah and running mate Amir Syarifuddin registered their candidacy at the local KPUD at 3:25 p.m. on Monday. The pair was nominated by the Gerindra Party and the Hanura Party, which have five and four seats respectively at the Asahan Regional Legislative Council (DPRD).

In Purbalingga, the Sugeng-Sutjipto pair, which has been endorsed by the National Awakening Party (PKB), the Democratic Party and the Hanura Party, finally signed up with the local KPUD on Monday.

In South Minahasa, two more pairs of candidates registered by the time the local KPUD closed the extended registration period.

Apriadi Gunawan in Medan, Agus Maryono in Banyumas, Lita Aruperes in Manado and Arya Dipa in Bandung contributed to the article.

Source: http://www.thejakartapost.com/news/2015/08/04/lack-candidates-put-number-local-elections-hold.html

Bawaslu finds bribery, budget misuse ahead of local elections

Jakarta Post - August 4, 2015

Jakarta – The Election Supervisory Agency (Bawaslu) has received reports of irregularities during registration for regional head elections slated to be held in December.

According to the committee, reported irregularities include bribery, misuse of regional budgets (APBD) by incumbents, fake diplomas and support from supposedly neutral civil servants for certain candidates.

"We will report the alleged misuse of state money to the Supreme Audit Agency [BPK] and the alleged bribery to the Financial Transaction Reports and Analysis Centre [PPATK]. We have reported fingered civil servants to the Home Ministry and the Administrative and Bureaucratic Reform Ministry," Bawaslu's Nasrullah said at the agency's headquarters on Monday.

Given strong evidence that a candidate had bought his or her candidacy, Nasrullah said, or spent APBD funds on campaigns, the candidacy would be invalidated and he or she would be removed if incumbent.

"Some potential candidates have told us that they decided not to register after being asked for money by political parties," he said on Monday.

Political analyst Sebastian Salang of Indonesian Legislative Watch said that he had canceled his plan to register as a regional head candidate, as he would have had to pay a bribe to a certain political party.

In order to register as a candidate for the regentship of Manggarai, East Nusa Tenggara, he would have had to gain the support of seven seats on the regional council.

Golkar and the National Awakening Party (PKB) had given him six seats without asking for payment, so he needed only one more seat. Salang, who is also an antigraft activist, refused to disclose the name of the party or the sum involved.

Nasrullah said that he would meet Salang to obtain more information. "We will ask the PPATK to check the bank accounts of the registered candidates, their families, party leaders and executives [to verify the irregularities]," he said.

Another political analyst, Effendi Gazali from the University of Indonesia, said that his team had been conducting research into the current regional election process.

"As a preliminary result, from a sample of candidates and potential candidates, we found that 60 to 70 percent had been asked to pay political parties for their support," Effendi told The Jakarta Post on Monday.

Senior Golkar politician Yorrys Raweyai meanwhile insisted his party was clamping down on such practices. "We will bring anyone found to be involved in bribery to court. But we need evidence, not hearsay and gossip," he said.

Bawaslu has also detected the illegal misuse of APBD funds in the campaigns of some incumbent candidates.

"An incumbent of one of the regions of South Sulawesi will be reported to the BPK in one or two days from now for allegedly using APBD funds for his campaign," Nasrullah said. According to Aulia Andri, Bawaslu's North Sumatra head, a majority of the incumbents in the 23 regencies and municipalities in the province had paid for posters of themselves to be put up on roadsides using state money.

Meanwhile, civil servant partisanship has been reported in Simalungun regency, North Sumatra, where regency secretary Gideon Purba accompanied candidate JR Saragih to registration. Use of fake diplomas has been reported in a number of regions, including Central Sulawesi.

"We will continue to investigate, and continue to get findings in the field," Nasrullah said. (rbk)

Source: http://www.thejakartapost.com/news/2015/08/04/bawaslu-finds-bribery-budget-misuse-ahead-local-elections.html

Mass organisations & NGOs

Muhammadiyah grassroots oppose Shia, Ahmadi talks

Jakarta Post - August 7, 2015

Haeril Halim and Andi Hajramurni, Jakarta – Despite Muhammadiyah's firm stance on protecting beleaguered religious minorities in the country, an internal discussion during the fourth day of the second-largest Islamic organization's national congress (muktamar) on Thursday revealed that many of the organization's members in the region had reservations about the position.

On Thursday afternoon, a proposal to start a Sunni-Shia dialogue mediated by Muhammadiyah was met with rejection from several members, including official representatives from West Papua's Muhammadiyah branch office.

A Muhammadiyah member from West Papua, who wished to remain anonymous, said he could accept the proposal as long as Muhammadiyah's central board specified clear guidelines on how the dialogue would take place.

He also said that such dialogue would be futile given the wide ideological differences between Sunnis and Shiites. "We would like to know what kind of dialogue it will be. Shi'ism is very dangerous," the local Muhammadiyah official said.

Tension in the room rose when others in the audience began talking about other minority groups. Some in the discussion proposed that "Muhammadiyah should follow the Indonesian Ulema Council's [MUI] in declaring that Shia and Ahmadiyah branches were deviant versions of Islam." Many began to chant Allahu Akbar (God is Great) as tensions rose.

Calm only returned after newly elected Muhammadiyah board of leadership member Abdul Mu'ti took the floor to give a lengthy explanation about the plan. Mu'ti acknowledged there were still Muhammadiyah members that had failed to see through the plan due to their conservative views.

"The plan is not to find whether Shia or Sunnni is right or wrong," said Mu'ti, who is also known for his stance on protecting religious minority groups in the country.

In an interview with reporters after the discussion, Mu'ti said that angry participants rejected the plan because they did not have a clear picture of it.

"We have to acknowledge that within Muhammadiyah there remains gaps of knowledge among its members. Today's discussion proves this. At the top leadership level, we're used to having interfaith dialogue with other groups but that does not happen at the grassroots level," Mu'ti said.

Mu'ti further said that the lack of understanding prevailed because Muhammadiyah members came from various educational backgrounds in addition to their different religious experiences.

"The dialogue does not aim to unify the views of the two groups and find out who's right or wrong. We want to have a peaceful coexistence. That is why we want to find out through the dialogue how to live together peacefully," Mu'ti told reporters.

He also said that Muhammadiyah never consider Shi'ism as deviant. "[Muhammadiyah's stance is clear] that we protect [minority groups]," Mu'ti said.

Ahmad Fuad Fanani of the Maarif Institute for Culture and Humanity said that Muhammadiyah should make a move to solve the problem because allowing such hateful sentiments at the grassroots level could bring harmful effects to society in general.

"Muhammadiyah should apply a soft approach with its grassroots members by inviting them for regular discussions on a number of strategic issues that Muhammadiyah is concerned about in society," Fuad told The Jakarta Post after the discussion at the congress.

Source: http://www.thejakartapost.com/news/2015/08/07/muhammadiyah-grassroots-oppose-shia-ahmadi-talks.html

New Muhammadiyah chairman wants to protect minorities

Jakarta Post - August 7, 2015

Haeril Halim, Andi Hajramurni, Makassar – A calm and laid-back plenary session at the Muhammadiyah muktamar (national congress) in Makassar, South Sulawesi, endorsed on Thursday sociology professor Haedar Nashir as chairman of the organization for the 2015-2020 term, replacing outgoing leader Din Syamsuddin.

The election of the 57-year-old scholar raised hope that the organization would maintain its stance on protecting beleaguered minority groups, including Shiite and Ahmadiyah, given his track records as a figurehead of the organization's moderate faction.

Haedar, whose wife Siti Noordjannah Djohantini was also elected as the chairperson of Muhammadiyah's women's auxiliary, Aisyiyah, assumed the top position after all 13 newly elected members of the Muhammadiyah board of leadership unanimously agreed to name him the next chairman.

Shortly after his election, Haedar delivered a speech in which he vowed that under his leadership Muhammadiyah would continue giving protection to all minority groups in Indonesia regardless of their faiths and cultural backgrounds as part of the organization's efforts to bring harmonious relations to this multicultural country.

"Muhammadiyah has the solution that the majority should protect the minority and at the same time the minority should build a synergy with the majority. We will try to prevent conflicts or mediate any developing conflict. We must protect the minority," Haedar said in his speech at the venue of the national congress at Makassar Muhammadiyah University, in Makassar on Thursday night.

In his speech Haedar also congratulated Nadhlatul Ulama (NU) for electing its new chairman during its muktamar in Jombang, East Java, on Wednesday. Haedar vowed to further improve cooperation with NU through a number of strategic partnership programs, including campaigns to protect minority groups in Indonesia.

Haedar also pledged that Muhammadiyah would continue to stay neutral in the country's politics. "Muhammadiyah will stick to its stance of not having an alignment with political parties in the country and will not establish any political party in the future. As an independent organization Muhammadiyah will maintain communications with all political parties," Haedar said.

Meanwhile, Muhammadiyah's new secretary-general, Abdul Mu'ti, said that Haedar was elected in a unanimous decision. "It only took the board of leadership 10 minutes to make its decision on the chairmanship and secretary-generalship."

Haedar topped the list of preferences of the 13 new Muhammadiyah board of leadership members polled on Wednesday after 1,974 out of 2,389 congress participants voted for him to sit on the board. Mu'ti came in fourth place with 1,802 votes.

A political analyst from the State Islamic University (UIN), Syarif Hidayatullah Fuad Fanani, said that Haedar and Mu'ti, whom he considered moderates, were the perfect pair to lead Muhammadiyah.

"Pak Haedar is good at internal bureaucratic reform to deal with internal affairs in Muhammadiyah, while Pak Mu'ti is a good at international relations," Fuad told The Jakarta Post.

Meanwhile, Muhammadiyah observer Kim Hyung-jun from Seoul National University said that he believed Haedar and Mu'ti would keep their promise to protect minority groups in Indonesia. "They are both moderate figures," Kim said.

In a separate election, Haedar's wife Siti was reelected as Aishiyah chairperson after being elected earlier to the women's organization's board of leadership during its congress in Jakarta.

Header and his wife repeated the feat achieved by Muhammadiyah's founder, Islamic cleric Ahmad Dahlan, in 1912 when he was elected to lead Muhammadiyah, while his wife assumed the top post of Aisyiyah.

Source: http://www.thejakartapost.com/news/2015/08/07/new-chairman-wants-protect-minorities.html

Reelected NU chairman pledges to avoid politics

Jakarta Post - August 7, 2015

Ahmad Junaidi, Jombang, East Java – Nahdlatul Ulama (NU), the country's largest Islamic organization, ended its 33rd muktamar (national congress) in Jombang, East Java, on Thursday, appointing senior cleric Ma'ruf Amin as its rais aam (supreme leader) and reelecting Said Aqil Siradj as its chairman.

"I will not bring NU into politics. I will focus on economics, education and health programs," Said said in his victory speech in the congress' plenary session on Thursday morning. Said openly supported Prabowo Subianto in last year's presidential election in a personal capacity and not as the NU leader.

Said's supporters raised the issue of rejecting involvement in practical politics since the beginning of the congress, which was opened by President Joko "Jokowi" Widodo on Saturday night, against their rivals, mainly Hasyim Muzadi, a member of the Presidential Advisory Board, and Salahuddin "Gus Sholah" Wahid, leader of the Tebuireng Pesantren (Islamic boarding school) in Jombang.

When Hasyim was still NU chairman, he was the running mate of then president Megawati Soekarnoputri, who was also the chairwoman of the Indonesian Democratic Party of Struggle (PDI-P), in the country's first direct presidential election in 2004.

In the same presidential election, Gus Sholah, who is the youngest brother of the country's fourth president, Abdurrahman "Gus Dur" Wahid, also ran as the running mate of presidential candidate Wiranto. The election was won by Susilo Bambang Yudhoyono and Jusuf Kalla.

The plenary session also agreed to appoint Ma'ruf, the deputy chairman of the Indonesian Ulema Council (MUI), as rais aam since noted cleric Mustofa "Gus Mus" Bisri refused the position.

"[The congress'] plenary session decided to approve Ma'ruf Amin as rais aam and Said Aqil Siradj as chairman," announced Ahmad Muzakki, who presided over the plenary session.

The appointment of Gus Mus, who is also known as a poet, by a council of nine senior clerics called Ahlul Halli Wal Aqdi (AHWA) triggered disappointment from Hasyim's supporters who have demanded the position of supreme leader should be voted in a direct election.

They accused the AHWA council, which was proposed by the current NU central board (PBNU), of aiming to stop the candidacy of Hasyim. The PBNU repeatedly denied the accusations, saying that the council was aiming to prevent conflicts among senior clerics who wanted to get the supreme leader position and to avoid vote buying practices.

In Makassar, Hasyim was defeated by respected cleric Sahal Mahfud while Said beat Gus Sholah and other candidates, including Golkar politician Slamet Effendy Yusuf.

On Wednesday night, Hasyim's and Gus Sholah's supporters left the congress venue and returned to their base in the Tebuireng pesantren, leaving the venue almost half empty.

The plenary session was resumed at midnight when it was attended by more than half of the participants from NU's 508 chapters across the country and the seven chapters from overseas who have voting rights. Hasyim's supporters reportedly conducted a breakaway congress in Tebuireng, some nine kilometers from the congress' venue in Jombang Alun-Alun.

Both Hasyim and Gus Sholah, who were at the boarding school since the beginning of the congress, denied that the forum was a splintered faction of NU and urged supporters not to organize a rival congress.

Commenting on the bickering in NU's congress, observer Zuhairi Misrawi said it would not lead to the break-up of the organization, which was established on Jan. 31, 1926.

"[The bickering] would not lead to a split-up. It's just a temporary emotional expression," Zuhairi, executive director of the Moderate Muslim Society, told The Jakarta Post on Thursday.

Source: http://www.thejakartapost.com/news/2015/08/07/reelected-nu-chairman-pledges-avoid-politics.html

Moderates rule Muhammadiyah board

Jakarta Post - August 6, 2015

Haeril Halim and Andi Hajramurni, Makassar – The muktamar (national congress)of Muhammadiyah, the country's second largest Muslim organization, chose 13 new members for its leadership board for the 2015-2020 term on Wednesday night, with only two of the newly elected officials considered representatives from the conservative wing of the organization.

Participants of the congress selected 11 individuals deemed to be moderates in the organization to serve as members on the board of leadership. The leaders are Haedar Nashir, Dahlan Rais, Abdul Mu'ti, Busyro Muqoddas, Anwar Abbas, Muhadjir Effendy, Syafiq A. Mughni, Dadang Kahmad, Agung Danarto, Suyatno and Hajriyanto Y. Thohari.

Meanwhile, the two selected leaders considered conservatives were Yunahar Ilyas and Goodwill Zubir.

Mu'ti, who currently serves as Muhammadiyah's secretary, was credited for defending beleaguered minority groups like the Ahmadiyah and Shiite sects despite many conservative clerics in the country declaring the sects to be deviant forms of Islam. The views of Yunahar and Goodwill have often clashed with those of Mu'ti.

"In Muhammadiyah, we can see two sides: those who are deemed conservatives, like Pak Yunahar and Pak Goodwil, and progressives like Pak Mu'ti, who have staked out a bold stance on a number of issues like the persecution of Ahmadis and Shiite followers," Muhammadiyah expert Ahmad Najib Burhani told The Jakarta Post on Wednesday night.

The 13 new leaders are expected to hold a meeting among themselves to determine who will replace retiring Muhammadiyah chairman Din Syamsuddin for the 2015-2020 term. If they fail to reach a consensus, then they are expected to take a vote.

Najib, who is a social researcher at the Indonesian Institute of Sciences (LIPI), said that the public at large should not be concerned by the presence of conservatives on the board of leadership because Muhammadiyah applied a collectivist, collegial philosophy in its decision-making process.

He said that whatever the religious views of the soon-to-be-elected chairman, they would not influence the organization's stance on strategic issues including its stance on minority groups in the country.

The 13 elected leaders were selected by some 2,600 congress participants who cast their ballots on Wednesday afternoon. Each of the participants submitted a list of 13 of their preferred candidates to the congress committee.

As of 10 p.m. Wednesday, Haedar had received the largest number of votes with 1,903 out of a possible 2,600 votes, followed by Yunahar with 1,884 votes, Dahlan with 1,780 votes, Busyro with 1,771 votes, Mu'ti 1,770 votes, Anwar 1,406 votes, Muhadjir 1,255 votes, Syafiq with 1,180 votes, Dadang with 1,126 votes, Suyatno with 1,074 votes, Agung with 1,030 votes, Goodwill with 1,025 votes and Hajriyanto with 950 votes.

There is no guarantee that the leader who tops Wednesday's polling will become the chairman because the decision regarding the organization's chairmanship will be made during a deliberation conducted by the 13 leaders scheduled for Thursday.

In addition to the leadership vote, the muktamar participants also met on Wednesday night to decide what strategic programs the Muslim organization would focus on for the next five years.

Some of the strategic programs included developing programs to defend the rights of beleaguered minority groups like Ahmadiyah, Shiite and other minority groups of other religions. Muhammadiyah also planned to develop programs aimed at reducing tensions between Sunni and Shiite Muslim groups in the country.

"We will give our attention to minority groups," Mu'ti said in his speech regarding strategic issues in front of the muktamar participants.

Source: http://www.thejakartapost.com/news/2015/08/06/moderates-rule-muhammadiyah-board.html

NU could split after Gus Mus named 'rais aam'

Jakarta Post - August 6, 2015

Ahmad Junaidi, Jombang, East Java – Nahdlatul Ulama (NU), the country's largest Islamic organization, will likely be divided into two factions after noted cleric Mustofa "Gus Mus" Bisri was chosen as rais aam (supreme leader) during NU's 33rd muktamar (national congress) in Jombang, East Java, on Wednesday evening.

"Gus Mus was appointed as rais aam and Ma'ruf Amin was chosen as deputy rais aam," said the congress' local committee chairman, Syaifullah "Gus Ipul" Yusuf, as he announced the decision of a council of nine selected senior clerics, called Ahlul Halli Wal Aqdi (AHWA), who were earlier nominated by clerics from NU's 508 chapters nationwide and seven chapters overseas.

Earlier on Wednesday, disappointed by a plenary meeting that approved the AHWA, hundreds of supporters of former NU chairman Hasyim Muzadi left the meeting and returned to their camp at Tebuieng pesantren (Islamic boarding school) in Jombang.

Hasyim approved his supporters to establish a forum as the current NU central board had experienced a demission. Salahuddin "Gus Solah" Wahid, the grandson of NU cofounder Hasyim Asy'ari, was also present.

The camp argued they were blocked from using their rights to convey their protests and they accused a Cabinet minister of interfering in NU's internal affairs. They claimed to be the representatives of 401 branches and 29 provincial representatives.

"Every time we want to convey our position, especially on the AHWA, we are always interrupted by the presiding meeting chairman," said Amri Siregar from NU's South Sumatra chapter.

As this article went to print, voting to elect the next NU chairman was still ongoing, with Said Aqil Siradj considered likely to be reelected.

The appointment of Gus Mus, who is also known as a prominent poet, had been predicted after senior clerics in NU's chapters voted to use a consensus mechanism in the AHWA, defeating less than half of the clerics who rejected the council. Gus Mus tearfully asked the NU participants to show their qualities as religious leaders.

Those clerics who rejected the council said that the system, which was proposed by the NU central board, was an effort to stop the candidacy of Hasyim Muzadi, who is also a member of the Presidential Advisory Board.

The clerics and many other participants expressed their objection to the system since President Joko "Jokowi" Widodo officially opened the congress on Saturday night. They urged that the positions of rais aam and chairman be voted for directly by all participants, as occurred in earlier congresses.

Fahrurrozi of the NU central board said that a consensus system through the AHWA aimed to avoid fights among clerics, as well as vote buying. "The idea of consensus through the AHWA council emerged after the last muktamar in Makassar," Fahrurrozi said on Wednesday.

In Makassar five years ago, Hasyim Muzadi, who was once nominated as vice presidential candidate to accompany presidential candidate Megawati Soekarnoputri from the Indonesian Democratic Party of Struggle (PDI-P) in the presidential election in 2004, was defeated by Sahal Mahfudz.

In that congress, Said Aqil Siradj beat the leader of the Tebuireng pesantren, Gus Sholah, who is also the youngest brother of the country's fourth president Abdurrahman "Gus Dur" Wahid, and other candidates, including former Golkar Party politician Slamet Effendy Yusuf.

Now, in Jombang – the birthplace of NU when it was established by several clerics, including Hasyim Asy'ari, on Jan. 31, 1926 – Gus Sholah, who once ran as a vice presidential candidate with presidential candidate Wiranto in the 2004 presidential election, nominated himself again for the role of NU chairman.

Source: http://www.thejakartapost.com/news/2015/08/06/nu-could-split-after-gus-mus-named-rais-aam.html

NU vows to maintain tolerant, peaceful Islam

Jakarta Post - August 3, 2015

Ahmad Junaidi, Jombang, East Java – Hundreds of Nahdlatul Ulama (NU) youth gathered on Sunday on the sidelines of the country's largest Islamic organization's 33rd muktamar (national congress) to pledge to maintain the organization's tolerant and peaceful identity.

Meeting at KH A. Wahab Hasbullah University in Jombang, East Java, the youths agreed on the need to spread tolerance and peace through various means, including social media, amid increasing hatred and religion-based violence in the country.

Social media activist Savic Ali said he saw huge potential among NU youth as they were avid users of social media.

"If one of the country's largest news portals only has 300 journalists, imagine us starting up an online media outlet with our large numbers. [Or] We can blog on NU teachings," Savic, who is also chief editor of NU Online, the organization's official news site, said.

Savic, a former student activist who took part in the demonstrations that toppled president Soeharto in 1998, also called on NU youth to maintain consistent messages on social media.

"Write consistently, like how we used to read the Koran. Or at least, write once a week. So there will be a lot of writings," he said.

According to NU's official website, quoting a recent poll by the Indonesian Survey Institute, its follower numbers stand at around 84 million.

In his opening speech at the congress on Saturday night, President Joko "Jokowi" Widodo said he hoped NU could maintain its tolerant, peaceful and moderate identity.

"NU, along with Muhammadiyah, could become examples of moderate, tolerant, peaceful and progressive Islam to the world," Jokowi said, also mentioning the name of the country's second-largest Islamic organization.

Also speaking at Sunday's meeting, Ahmad Suaedy, director of the Wahid Institute, saw a big opportunity for Islam in Southeast Asia, especially Indonesia, as the country with the world's largest Muslim population.

"Islam in Southeast Asia, including Islam Nusantara, has a distinctive identity, different from other parts of the world," Suaedy said.

The term Islam Nusantara (Islam of the archipelago), the theme of the congress, has been reaffirmed by NU chairman Said Aqil Siradj.

"Actually it [Islam Nusantara] is not new. It is rooted in tradition. Islam Nusantara is also based on akhlakul karimah [good deeds], nationalism, diversity and humanity," Said told the 3,000 people attending the congress' opening ceremony on Saturday.

Meanwhile, young intellectual Syafiq Hasyim agreed that NU youth could play an important role in spreading tolerance and peace, but said they might face internal challenges from groups that promoted discriminatory teachings.

"We have groups, such as NU Garis Lurus [straight], which is discriminatory [toward other groups], although they are the minority. So NU youth should handle this too," Syafiq, who recently completed his PhD from Freie Universitat Berlin with a dissertation based on research on the Indonesian Ulema Council (MUI), said.

The groups, including NU Garis Lurus, actively criticize other groups such as the Shia, Ahmadiyah and Wahabi, as well as NU's liberal thinkers on social media.

"We could create our own identity, our own culture without excluding other groups. If we can do it, we could play an important role, become dominant without excluding others," Syafiq said.

The NU congress will run until Aug. 5 and discuss several contemporary issues in the Bahtsul Masail (discussing problems) forum, among other things, imposing the death penalty on graft convicts and the status of the Healthcare and Social Security Agency (BPJS Kesehatan) in the view of Islam.

Some events during the five-day muktamar will take place in four major Islamic boarding schools in Jombang, namely Tebuireng, Tambakberas, Denanyar and Darul Ulum.

Source: http://www.thejakartapost.com/news/2015/08/03/nu-vows-maintain-tolerant-peaceful-islam.html

Jokowi calls for tolerance at NU congress

Jakarta Post - August 2, 2015

Ahmad Junaidi, Jombang, East Java – President Joko "Jokowi" Widodo opened on Saturday the 33rd national congress, or muktamar, of the Nahdlatul Ulama (NU), the country's largest Islamic organization, in Jombang, East Java, which held the theme 'Islam Nusantara for Indonesia and World'.

"NU has used religion as a source of tolerance, peace and progressiveness," Jokowi, who wore a black suit and red sarong, said in his remarks. He hoped that Islam in Indonesia could inspire the world and contribute to peace amid violence and radicalism.

First Lady Iriana, several Cabinet ministers and national figures, including former president Megawati Soekarnoputri, who is also chairwoman of the country's largest political party, the Indonesian Democratic Party of Struggle (PDI-P) also attended the opening ceremony.

NU chairman Said Aqil Siradj reaffirmed NU's stance on upholding Islam, which is rahmatan lil alamin (blessing for the universe), moderate, tolerant and in line with the congress' theme of reaffirming Islam Nusantara (Islam in the archipelago) for Indonesia and the world.

Said explained that Islam Nusantara was rooted in Indonesian tradition. "Islam Nusantara is based on religious spirit, akhlakul karimah (good deeds). It is also based on nationalism, diversity and humanity" he said.

NU observer Martin van Bruinessen of Utrecht University, the Netherlands, said Islam Nusantara was Islam that was practiced in the context of culture, which differentiates Islam in Indonesia with that in India, Turkey and Pakistan.

"It's part of the culture, not the core of Islam," Bruinessen told The Jakarta Post. He said Islam in Indonesia was relatively more tolerant toward minorities within Islam, such as the Shiites and Ahmadis.

Thousands of people from across the country and some from overseas, crowded Jombang's alun-alun (town square), the venue for the opening ceremony of the muktamar.

The congress itself will run until Aug. 5 and discuss several contemporary issues in the Bahtsul Masail (discussing problems) forum, among other things, imposing the death penalty on graft convicts and the status of the Healthcare and Social Security Agency (BPJS Kesehatan) in the view of Islam.

The Indonesian Ulema Council (MUI) recently stated that the current implementation of the national health insurance (JKN) program, which is managed by the BPJS Kesehatan, was not in accordance with sharia.

A source at the congress told the Post on Saturday the congress would issue an edict that BPJS Kesehatan was halal (permitted) in Islam.

The Bahtsul Masail forum has prepared five answers and a theological basis on BPJS Kesehatan. The material said that BPJS Kesehatan was categorized as an aqad taawun (insurance agreement) and that the program did not involve riba (interest).

Source: http://www.thejakartapost.com/news/2015/08/02/jokowi-calls-tolerance-nu-congress.html

Race starts for Muhammadiyah leadership

Jakarta Post - August 2, 2015

Haeril Halim/Andi Hajramurni, Makassar – The country's second-largest Muslim organization, Muhammadiyah, held a plenary session on Saturday in Makassar, South Sulawesi, to select a short list of 39 candidates to replace outgoing chairman Din Syamsuddin.

Candidates on the short list will be picked from 82 senior Muhammadiyah members who have registered for the race to replace Din, who has been at the helm of the organization since 2005.

Muhammadiyah Youth Association head Dahnil Anzar Simanjuntak said that 204 members held a muktamar (internal discussion) at the venue of the congress to decide who would be on the list. "Selection is still ongoing. Tomorrow the 39 names will be announced," Dahnil said on Saturday night.

The candidates being scrutinized by the meeting participants included former Corruption Eradication Commission (KPK) chairman Busyro Muqoddas, Malang Muhammadiyah University rector Muhadjir Effendy, Muhammadiyah leadership board member Yunahar Ilyas, Muhammadiyah treasurer Zamroni, Muhammadiyah secretary-general Agung Danarto, Muhammadiyah Youth Association head Sukriyanto AR and Muhammadiyah secretary Abdul Mu'ti.

The names of the 39 candidates will then be presented at a plenary meeting during which 2,500 congress participants will cast their votes. The candidates will fill in the 13 vacant seats on Muhammadiyah's central board.

After participants select 13 people for Muhammadiyah's central board, the elected officials will then hold a closed-door meeting to appoint one of them to take the helm of Muhammadiyah from 2015 to 2020. If no agreement is reached, the 13 members will hold a vote.

Strategic issues to be deliberated were also discussed during the muktamar. In his speech to open a tanwir meeting, Din said the upcoming muktar (chairman) would formulate strategic programs that would affect about 35 million Muhammadiyah members across the country.

"Muhammadiyah will prioritize programs in fields like humanity in national and international state of affairs," Din said.

Muhammadiyah will officially kick of its 47th muktamar on Aug. 3, with the theme Enlightenment for a Progressive Indonesia. The term "Progressive Indonesia" was taken from Muhammadiyah's long-standing concept of an Islam Berkemajuan (Progressive Islam).

"You could say that Islam Berkemajuan is a vision of a modern and moderate Islam. The concept was coined by Muhammadiyah founder KH Ahmad Dahlan," Din said.

"[Progressive Islam] was not designed by Muhammadiyah specifically for Muslims in Indonesia but for all people in the world from all walks of life. This concept also deepens our tolerance for others by putting emphasis on Islam as a moderate religion."

Din further said that Muhammadiyah was currently focusing on tackling issues related to water shortages and agrarian reform. Muhammadiyah has filed judicial reviews with the Constitutional Court to challenge regulations on the management of water resources that violate the Constitution.

Din added that Muhammadiyah should also pay attention to the problem of land reform as the current system sidelined the poor. Muhammadiyah should consider unequal access to land one of the most pressing issues to focus on, he said.

Source: http://www.thejakartapost.com/news/2015/08/02/race-starts-muhammadiyah-leadership.html

Health & education

No link between wages, quality of teachers

Jakarta Post - August 7, 2015

Fedina S. Sundaryani, National – Although the Culture and Education Ministry has continued working to improve the welfare of teachers, it has found that there is no correlation between how much teachers earn and the quality of their work.

The ministry's director general of elementary and secondary education, Hamid Muhammad, said the quality of education in the country was stagnant from 2000 to 2012 despite the fact that the ministry had increased annually the budget for improving teachers' welfare. "We spend a lot [on teachers' remuneration] but when asked whether there is a correlation between the spending and our students' achievements, I have to say no," Hamid said in a discussion in South Jakarta on Wednesday.

Hamid said the ministry had allocated Rp 74 trillion (US$5.4 billion) in 2015 for the remuneration of tenured and contract teachers and that the amount would increase to Rp 84 trillion in next year's budget. According to data from the ministry, there were 2.7 million civil tenured and contract teachers nationwide in the 2012-2013 academic year.

Hamid said that the ministry had also learned that the majority of teachers only sought out to participate in certification and specialization programs in order to receive extra benefits guaranteed by the 2005 Teacher and Lecturer Law, which was implemented in 2007, instead of looking to improve their teaching skills.

"When we first implemented the certification system, we hoped that it would improve the quality of our teachers, who will then receive remuneration. Now it is the other way around, teachers look for remuneration first and quality comes second," he said.

The lack of improvement has been reflected in Indonesia's results in the last Program for International Student Assessment (PISA) conducted by the Organization for Economic Cooperation and Development (OECD), where Indonesia ranked 64 out of 65 countries.

However, Hamid said that the problem was not just the lack of motivation from teachers but also the lack of motivation from provincial administrations, which contributes to the much lower quality of teachers working in remote areas.

"According to the law, provincial administrations are responsible for improving and training their teachers while the ministry is only responsible for setting a standard and making sure that the standard is being met," he said, adding that though some administrations were motivated, they did not have the capacity to finance or facilitate teachers' training.

Meanwhile, Jim Tognolini, senior vice president of the Pearson Assessment Center, agreed that it was important to focus on improving teachers, but emphasized the need to assess what exact qualities the Indonesian government was looking for in its teachers.

Source: http://www.thejakartapost.com/news/2015/08/07/no-link-between-wages-quality-teachers.html

Students apathetic about morning singing

Jakarta Post - August 6, 2015

Corry Elyda, Jakarta – Students have expressed their lack of interest in the compulsory singing of the national anthem or traditional songs before classes that are currently imposed by the Education and Cultural Ministry.

On Wednesday morning, in the front yard of state senior high school SMAN 70 in South Jakarta, students were rebuked by citizenship education teacher Cecep Sulaiman after they playfully sang the national anthem, Indonesia Raya.

"This is our national anthem. We have to show some respect. Do not sing it playfully. Do not laugh or clap. We will repeat the song! Understand!" he yelled.

Cecep was disappointed after only half of the students sang the song wholeheartedly, while others sang it playfully or did not even bother to open their mouth. Some of the students who stood at the back were even busy chatting with their friends.

Rizky Ardani, a 16-year-old student, said that she did not like singing before and after class, as singing it once a week during the flag ceremony was more than enough. "It is boring. It makes me sleepy," she said, adding that she barely remembered the lyrics of some of the songs.

Rizky said she also questioned that singing the songs would improve her nationalism. "For me, nationalism can be displayed in several ways, such as buying local products or simply living in Indonesia," she said.

She was similarly uninterested in other programs of the ministry, which is obliging students to read books that were not textbooks for 15 minutes. "It will be fine if they give us a chance to read comic books," she said.

In a bid to nurture students' character, Education and Cultural Minister Anies Baswedan last month issued Ministerial Regulation No. 23/2015 that obliged students to sing anthems and read books before they begin studying.

Anies argued that the program was created as schools lacked character- building programs. He said that he even found one school that had not conducted a flag ceremony for four years.

Unlike Rizky, 12th-grade student Virania Syifa said that the program would be good for the students. "Many of them forget the lyrics of national songs as we only hear them only during the flag ceremony," she said.

Virania said she also did not mind if they were asked to read books that were not textbooks before classes started. "I love reading novels. So it is not a problem for me," she said.

SMAN 70 spokesman Achmad Muchtar said that his school had started the singing program last week, adding that it did not trouble the students. "We need to force them to sing and read, so they will get used to it," he said.

Achmad said the program was conducted during school hours. "The bell rings at 6:30 a.m. while studies begin at 6:50 a.m.," he said, adding that the remaining time was usually used for various activities like Koran recitals and group exercises.

While the singing program has already begun, the school still needs more time to implement the reading program.

State high school SMAN 6 vice principal for curriculum Husniwati said her school started the singing program on Tuesday. "However, we still try to squeeze the reading program among study hours, so the students do not need to go home later," she said.

She said the management took the reading time from the Koran recitals, which are conducted every morning, or using one of the break times.

Education Agency head Arie Budhiman said that he had not decided how to evaluate the effectiveness of the program. Arie said singing national songs would be easy but he was concerned with schools that did not have an adequate collection of books.

"I hope the Library and Archive Agency can help the school, for example, by providing an electronic library, which is cheaper than providing physical books," he said.

Source: http://www.thejakartapost.com/news/2015/08/06/students-apathetic-about-morning-singing.html

Marriage & polygamy

Defense Ministry permits polygamy

Jakarta Post - August 7, 2015

Jakarta – Defense Ministry spokesman Brig. Gen. Jundan Eko Bintoro confirmed in a letter that circulated among their employees that the ministry allows polygamy.

"[The rules allowing polygamy] have been in effect since July 22," Jundan said as quoted by tempo.co on Friday. The letter contains the ministry's regulation on marriage and divorce for its employees, signed by secretary- general Brig. Gen. Sumardi.

The letter of notice mentioned a rule that states male civil servants in the Defense Ministry are allowed to have multiple wives. The women, however, are not allowed to have multiple husbands. "Read it [the letter of notice] thoroughly. Even though we allow it, the requirements are not easy to fulfill," Jundan added.

The rules stated that all employees, both men and women, are only permitted to have one husband or wife. However, there is a following rule that states the exception for men; it says that a man can have multiple wives if it is not against his religion, and he must fulfill at least one of the additional requirements.

The additional requirements for permission include situations in which the first wife is no longer able to fulfill her duty as a wife, contracts an acute sickness or physical disability or is unable to produce offspring.

Also, the male who wishes to be polygamous must present written consent from his wife, and have enough income to support multiple wives by presenting his income tax report. He must also make a written statement promising to treat the family fairly.

"If any violation of these rules are to be found, we will investigate – he can be fired," said Jundan. (rad/kes)

Source: http://www.thejakartapost.com/news/2015/08/07/defense-ministry-permits-polygamy.html

Graft & corruption

Suryadharma says he only borrows money

Jakarta Post - August 8, 2015

Jakarta – Former religious affairs minister Suryadharma Ali maintains that he did nothing wrong when he spent the ministry's operational funds, saying that he only borrowed the funds and had since returned them.

"If I took the funds for personal use, then they should be considered funds owed. I have proof that I returned the money," he told reporters on Friday.

The Corruption Eradication Commission (KPK) named Suryadharma a graft suspect in early July in a new case centering on the alleged embezzlement of operational funds at the Religious Affairs Ministry.

The decision to name him a suspect was made during an in-depth investigation into a graft case related to 2012-2013 haj pilgrimage funds at the ministry, in which Suryadharma was allegedly involved and had previously been named a suspect.

The KPK named Suryadharma a suspect in the haj graft case in May last year. As for Suryadharma's haj fund graft case, the KPK has wrapped its investigation and is ready to bring the case to court.

Suryadharma has repeatedly questioned the KPK's move to name him a suspect in the haj graft case. "The KPK issued an investigation letter in May last year but also named me a suspect almost at the same time," he said, adding that the antigraft body should have investigated the case before coming to the conclusion.

He also said that the KPK had thus far failed to present evidence to back up its accusations.

According to the KPK's investigation, Suryadharma's alleged actions had cost the country Rp 1.8 trillion (US$132.8 million) in the haj corruption case. Suryadharma said that the Supreme Audit Agency (BPK) had yet to calculate state losses in the case.

In February, Suryadharma filed a pretrial petition at the South Jakarta District Court to challenge the KPK's move in naming him a suspect. The sole judge at the court, Tatik Hadiyanti, however, rejected his petition, saying that the pretrial hearing had no authority to challenge a law enforcement institution's decision to name someone a suspect.

Tatik's ruling contradicts an earlier pretrial ruling by another South Jakarta District Court judge, Sarpin Rizaldi, whose decision in February annulled the suspect status of Comr. Gen. Budi Gunawan in a bribery case and released him from KPK investigation.

According to Suryadharma's lawyer, Humphrey Djemat, Tatik had failed to use her independence as a judge to make "legal innovation" through her interpretation of Article 77 of the Criminal Law Procedures Code (KUHAP), like Sarpin did.

However, Tatik argued that articles 77 and 82 of the KUHAP limited the authority of the pretrial mechanism to the determination of the legality of an arrest or detention, the termination of an investigation or prosecution and request for compensation and rehabilitation. (ind)

Source: http://www.thejakartapost.com/news/2015/08/08/suryadharma-says-he-only-borrows-money.html

Police deliver quick progress in Sarpin case

Jakarta Post - August 8, 2015

Fedina S. Sundaryani, Jakarta – After only four months of investigation, the National Police have wrapped up the case dossiers of two Judicial Commission (KY) members accused of defamation by South Jakarta District Court Sarpin Rizaldi.

National Police detective division chief Comr. Gen. Budi Waseso confirmed that the dossier had been sent on Friday to the Attorney General's Office (AGO) and denied that police investigators had rushed the investigation.

"If the investigation has been finished, what else can be done? [...] We have already questioned everyone, including all the witnesses. If [the AGO] decides the dossier is incomplete then it will be returned to us," Budi said at the National Police headquarters in South Jakarta.

The police named KY commissioners Suparman Marzuki and Taufiqurrohman Syahuri as suspects in the defamation case after Sarpin reported that both had smeared him by criticizing his controversial ruling that favored high- ranking police officer Comr. Gen. Budi Gunawan in a pretrial case in February.

In the ruling, Sarpin ordered the Corruption Eradication Commission (KPK) to stop investigations into the general, now the National Police's deputy chief.

The ruling proved controversial as a pretrial hearing was not authorized to determine the validity of criminal allegations against law enforcement institutions such as KPK at that time.

On Thursday evening, Taufiqurrohman's lawyer, Dedi J. Syamsuddin arrived at the National Police's headquarters to file a complaint following a tip off that the case dossier would be handed over before the investigators had questioned all the expert witnesses as recommended by the two KY commissioners.

"We truly regret the fact that the dossier will be handed over even though our expert witnesses having not been questioned," he said. Dedi said that he submitted a letter to Budi Waseso to request investigators to question the witnesses as it was within Suparman and Taufiqurrohman's rights to recommend their names.

Budi rejected their proposal saying that investigators had no obligation to use the testimonies of all witnesses recommended by suspects. "We have already questioned the expert witnesses [proposed by the KY commissioners] but we do not have to use their opinions," he said.

Shortly after Sarpin issued the controversial ruling in favor of Budi Gunawan, the KY recommended that the Supreme Court, which supervises all judges in the country, impose six months non-hearing status on Sarpin for allegedly violating ethics in the case. The recommendation has yet to be responded to by the court.

The two commissioners have repeatedly argued that their criticism was part of their jobs as KY commissioners, who are tasked with monitoring the independence and integrity of Indonesia's legal system. However, Sarpin, through his lawyer Dion Pongkor, said that the judge was within his rights to file a police report against them.

"Pak Sarpin felt that it was within his rights to report the two commissioners because they had criticized him before he delivered the ruling on [Budi's] case," he said, adding that it was a personal attack instead of a professional one.

Source: http://www.thejakartapost.com/news/2015/08/08/police-deliver-quick-progress-sarpin-case.html

Experts: Police complaints, pretrial motions against KPK must stop

Jakarta Globe - August 7, 2015

Jakarta – Anti-corruption activists and legal experts are calling on Indonesian law enforcers to cooperate in combating a rising trend among corruption suspects of lodging police complaints or pretrial motions against the Corruption Eradication Commission (KPK).

Prominent lawyer and graft suspect Otto Cornelis Kaligis on Tuesday reported the national anti-graft agency to the National Police for alleged "kidnapping" and "abuse of power" – a common strategy among corruption suspects.

Others, such as former religious affairs minister Suryadharma Ali and former Supreme Audit Agency (BPK) chief Hadi Poernomo, have attempted to undermine the KPK by filing pretrial motions against the commission. Legal expert Todung Mulya Lubis said a police complaint is general procedure and remains in accordance to the law as part of a self-defense tactic.

"Filing a report to police is the right of every citizen, including corruptors. Yet, the question is, is the report based on strong evidence?" Todung said.

"We may not be able to stop corruptors from filing anything, yet the police have the authority to refuse reports that are not valid. The police don't have to follow up on every complaint filed by graft suspects," Todung said.

Legal expert Frans Winarta added that the government must put a stop to the alarming trend by instructing the country's law enforcement agencies to support and work with one another.

"The fate of political law in Indonesia lies within the hands of President Joko Widodo. Joko must summon [the police, KPK commissioners and the attorney general] and order those institutions to collaborate in enforcing the law without having to competing against each other. They have to help each other," Frans said on Friday.

"With many reports coming from [suspected] corruptors to the Bareskrim [the National Police's Criminal Investigation Unit], we are expecting the unit to cooperate with the KPK."

Indonesia Corruption Watch (ICW) researcher Ade Irawan urged the police to remain fair and neutral in investigating every report made by graft suspects without drudging up past quarrels with the anti-graft body.

"This is a challenge; accused perpetrators will always attempt to dodge blame and punishment. This is common everywhere in the world," Ade told the Jakarta Globe on Friday. "But more importantly, the law enforcement agency receiving the report must remain objective. Is the complaint tendentious or does it bare a legal basis?"

Ade added that there is currently no need for an official policy to deal with the issue; only the willingness of law enforcers to agree to back each other in combating corruption.

Frans, who is among 48 candidates currently under assessment for the new KPK leadership, said the race includes prominent political and social figures who can potentially revive the beleaguered anti-graft agency and bring it back on track. "But still, it all depends on the House and whether they have the save views as we do," he said.

The KPK's selection committee is still in the process of reviewing each candidate, said ICW's Ade "We hope that whoever will next lead the KPK can bring life and strength back into the agency," he added.

Source: http://thejakartaglobe.beritasatu.com/news/experts-police-complaints-pretrial-motions-KPK-must-stop/

Police to investigate kidnapping and power abuse report against KPK

Jakarta Post - August 7, 2015

Fedina S. Sundaryani, Jakarta – The corruption case involving senior lawyer Otto Cornelis Kaligis has been further complicated as the National Police confirmed that they will investigate a kidnapping and power abuse report filed by Kaligis against the Corruption Eradication Commission (KPK).

The KPK has named Kaligis as a suspect in a bribery case involving three judges in Medan, North Sumatra, and he is currently in their custody.

National Police detective chief Comr. Gen. Budi Waseso said that investigators were currently examining the report filed this week by Kaligis, through his legal team, who accused KPK investigators of kidnapping and abusing their power during his arrest.

"The [report] is currently being examined. If we find any evidence then we will continue the investigation," he told reporters at the National Police headquarters in South Jakarta.

KPK investigators arrested and detained the senior lawyer on July 14 after it found what it claims is evidence that he had orchestrated a scheme to bribe three judges of the Medan State Administrative Court (PTUN Medan).

The arrest of Kaligis came just days after KPK investigators apprehended the three judges – PTUN Medan head Tripeni Irianto Putra, Amir Fauzi and Dermawan Ginting – during a sting operation on July 9 in Medan for allegedly accepting US$20,000 in bribes from Kaligis' aide Yagari "Gerry" Bhastara Guntur, who has also been named and detained as a suspect.

Budi explained that Kaligis' legal team had provided several pieces of evidence, such as an audio recording and testimonies of several witnesses.

"We will later send a letter [to the KPK] after examining the police report and our first act will be to question the victim, in this case Mr. OC Kaligis. Of course we will coordinate with the KPK and ask for their permission as he is currently detained," he said, emphasizing that there was no ill-feeling between the KPK and the police force.

Afterwards, Budi added, officers would most likely question the KPK investigators who had been responsible for Kaligis' arrest at Hotel Borobudur in Central Jakarta.

Previously, one of Kaligis' lawyers, Afrian Bondjol, told The Jakarta Post that his legal team would file a police report against the KPK investigators as it was evident that they had violated legal procedures. "During his forced summons, the presumed investigator did not show him a warrant," he said.

Furthermore, Kaligis' legal team have also filed for a pretrial hearing at the South Jakarta District Court to challenge his arrest, detention and status as a suspect, which will start next Monday.

"We suspect that the KPK violated the procedure on the time frame of summons. Kaligis was summoned on July 13, but received the summons on the same day. The summons should have been sent three days before," Afrian said.

Meanwhile, KPK acting commissioner Johan Budi brushed off Kaligis' police report. "[Kaligis] is welcome to file a report at the [National Police's] detective division. He is fully within his rights to file a report anywhere," he said, as reported by kompas.com.

He reiterated that the KPK had arrested Kaligis in accordance with the proper procedures and was sure that the police force's detective division would confirm this. Furthermore, Johan added that the KPK had yet to receive a formal notification of Kaligis' police report.

Source: http://www.thejakartapost.com/news/2015/08/07/police-investigate-kidnapping-and-power-abuse-report-against-KPK.html

Court orders graft charges against ex-minister Dahlan to be dropped

Jakarta Globe - August 4, 2015

Erwin Sihombing, Jakarta – The South Jakarta District Court has revoked a decision by prosecutors to pursue corruption charges against former state- owned enterprises minister Dahlan Iskan in relation to irregularities in a project to build 21 power transformers across the country between 2011 and 2013. The project is estimated to have been worth Rp 1.06 trillion ($74 million).

Judge Lendrianty Janis, who heard Dahlan's pretrial motion to quash the charges, found that the Jakarta Public Prosecutors' Office had not gathered enough preliminary evidence to declare Dahlan a suspect in the case.

The court found that no witnesses had been examined prior to the decision, thus skipping a critical part of the investigation process as mandated by Indonesia's Code of Criminal Procedures (Kuhap).

The court "grants the plaintiff's motion in its entirety," the judge said in her ruling, referring to Dahlan who filed for the motion. "Therefore, the charges against the plaintiff by the Prosecutors' Office are declared invalid and we order prosecutors to revoke the naming of the plaintiff as a suspect."

The Prosecutors' Office's spokesman Waluyo said his office "will not back down on the case and will prosecute whoever is responsible" but declined to elaborate on any possible further legal moves.

The case revolves around a project to build 21 transformers in Java, Bali and West and East Nusa Tenggara between 2011 and 2013, when Dahlan was a minister. The project was planned in 2009, when Dahlan was president director of state electricity company Perusahaan Listrik Negara.

Of the 21 power transformers, two were found to be malfunctioning and 13 damaged. Dahlan's lawyer Yusril Ihza Mahendra said although the project was initiated by Dahlan, his client never interfered with the tender.

Dahlan "was named a suspect before any evidence was found," arguing that the prosecutors only started examining witnesses after the charges were laid.

The South Jakarta District Court has been in the spotlight for altering the legal status of many corruption suspects since early this year, with many legal experts and activists saying that the court had overstepped its authority.

But a pretrial motion ruling is final and binding, according to the Kuhap, and many are debating whether law enforcers can still lodge an appeal to such rulings, seen as a massive blow to Indonesia's long and arduous fight against corruption.

Dahlan, the owner of Jawa Pos media group, is also being targeted by three other law enforcement bodies: the Attorney General's Office, the East Java Prosecutors' Office and the National Police over four separate graft cases. Dahlan has not been charged in relation to the other cases.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/court-orders-graft-charges-ex-minister-dahlan-dropped/

Terrorism & religious extremism

Islamic State contagion growing in Indonesia

Sydney Morning Herald - August 8, 2015

Tom Allard, Jakarta – In the upmarket Jakarta suburb of Menteng, home to former presidents and diplomats and their enormous mansions, al-Fataa mosque is an incongruous building.

A former Dutch colonial hall converted into a place of worship in the 1950s, the mosque, painted in a faded lime green, is tucked down a ramshackle alley dotted with makeshift restaurants and kiosks.

Next door is a Defence Ministry building. On the other side, a swanky new apartment complex. Barely 200 metres away is the fortified compound for US embassy workers. Less than one kilometre away, the US embassy itself. Australian ambassador Paul Grigson's residence is in the same suburb.

But Fairfax Media can now reveal a shocking secret – the mosque that lies in the geographic heart of Indonesia's power elites is an active recruitment centre for Islamic State (IS), the terrorist group that has seized territory in Syria and Iraq and the imagination of radical Islamists across the world.

Exclusive video footage, provided to Fairfax Media by Indonesian terrorism analyst and documentary filmmaker Noor Huda Ismail, shows a group of young Indonesian men inside al-Fataa pledging allegiance to the IS leader and so-called "caliph" of Muslims, Abu Bakr al-Baghdadi.

Led by a former devotee of the extremist cleric Abu Bakar Bashir, Fauzan al-Anshori, the men gather in a tight circle, their hands entwined in the centre as they recite the "bayat", or pledge, in a mix of Indonesian and Arabic.

The young men first proclaim an oath of devotion to Sheikh Ibrahim bin Awad bin Ibrahim al-Husseini al-Qurayshi, the formal name of Baghdadi.

"I enjoin you to have awe of Allah and that you listen and obey, in good times and bad times," they then chant on the floor of the mosque, before finishing the pledge amid smiles and congratulations.

It's not the only time IS recruiters have attended the mosque. Radical cleric and IS devotee Syamsuddin Uba has been a regular visitor, leading marches of jihadists carrying the IS flag through Jakarta. He would have been preaching there this week, if not for his arrest last week in eastern Indonesia.

The administrator of the mosque, Farihin, tells Fairfax Media he does not support IS, also known as ISIS or ISIL. Even so, he admits a pro-IS banner was hung outside the mosque until authorities forced them to take it down about a month ago, and that IS supporters are allowed to lead religious classes there.

"Anyone can come here as long as their rituals are in accordance with sharia," he says. "The activities are just a response to what is happening in the Middle East."

Farihin denies that IS recruitment takes place at al-Fataa, his assurance undercut somewhat when an associate, Budi Waluyo, volunteers that he supports IS and explains how the recruitment works.

"So many people are interested in Islamic State since the caliphate was declared by Sheikh al-Baghdadi [in June last year]," he says. "They are curious and come to listen. They have different levels of understanding and knowledge of the Koran.

"Some get really deep into the doctrine. Then we talk about different things like how to collect finances. The groups become smaller and smaller and only a few are asked to make the bayat." A rigorous selection process must be completed before you can travel to Syria, he adds.

Al-Fataa is certainly on the radar of Indonesia's security agencies but the fact that pro-IS activities occur so openly there, right next door to the Defence Ministry, is indicative of what many analysts believe is an inadequate response by the Indonesian government to a rising security threat.

As in Australia, the fear is that the growing numbers of Indonesians heading to Syria and Iraq to fight for IS will return, battle-hardened, and launch terrorist actions back home.

After a six-year halt to the violent extremism that besieged the country for seven years from the first Bali bombings in 2002 and took hundreds of lives, including 95 Australians, will the emergence of IS re-energise violent extremism in Indonesia?

Thousands of Indonesians are believed to have made the pledge of allegiance to Islamic State in mosques, prayer rooms, homes and prisons across the country. At least 300, and possibly as many as 700, Indonesians have travelled to Syria and Iraq to join IS.

According to Budi, there are more than 300 with passports ready to go. "It's not just ordinary people," he says. "Civil servants, police, TNI [military personnel] too."

Once in the Middle East, Indonesian jihadists connect with a dedicated military unit for south-east Asian recruits – Katibah Nusantara – in the north-eastern Syrian town of al-Shaddadi.

This hub for Indonesian, Malaysian and Filipino jihadists has its own school and media operation, which trumpets alleged victories on the battlefield via Indonesian-language websites and social media platforms.

In recent months it has posted accounts of the capture of Kurdish-held territories in northern Syria by the unit and a disturbing video of children undergoing weapons training and vowing to become holy warriors.

Like all of the 20,000 foreign fighters in Syria and Iraq, there is a potent attraction for Indonesians in participating in the creation of an Islamic caliphate, the final battle between good and evil supposedly foreshadowed in Hadith literature, the collection of sayings of the prophet Muhammad.

But many are also attracted by the prospect of education and the salary offered by IS to its soldiers, which is significant in a country where tens of millions live on less $2 a day. Katibah Nusantara also boasts of financially supporting the families of its martyrs in Indonesia.

It's a sophisticated operation that has evolved rapidly in the two years since IS established a foothold in Indonesia.

At first, the militant group relied largely on imprisoned clerics who had pledged allegiance to the group, most famously the notorious spiritual leader of Jemaah Islamiah (JI), Abu Bakar Bashir, and another, more influential cleric, Aman Abdurrahman.

Incarcerated in the penitentiary complex on Nusakambangan in central Java, the place where Australian drug smugglers Myuran Sukumaran and Andrew Chan were executed in April, Abdurrahman has set up a blog to translate IS propaganda and lure Indonesian recruits.

While Bashir and Abdurrahman largely tapped into existing radical Islamist networks, including the children of the Bali bombers, new ones are emerging that are increasingly difficult for authorities to monitor.

The networks include members of the diaspora of some 4 million Indonesian migrant workers living abroad who raise funds, distribute propaganda and facilitate the travel of jihadists from Indonesia to Syria and Iraq.

According to one source intimate with the latest intelligence, those networks stretch from Malaysia through to Taiwan, Macau, Hong Kong and the Gulf Arab monarchies. It appears, says the source, that al-Fataa mosque is a "node" in these networks.

Then there are the growing numbers of Indonesians self-radicalising, wooed by IS propaganda on websites and social media.

Among them have been students as young as 16, food hawkers and, reportedly, pilots. Inspired by online jihadist publicity, a brigadier in Indonesia's national police, Syahputra, travelled to Syria in March. He reportedly died in combat, and was hailed as a martyr by Indonesian militants.

In an interview for Noor Huda Ismail's documentary Jihad Selfie, Fauzan al-Anshori laughs as he describes how social media is "speeding up the revolution".

"It is the Jew who invented Facebook, what else, well, [messaging app] whatsapp, for instance," he says. "Thank God it was the infidels who invented them but we're the ones who use them."

Indonesia's Muslim community of more than 200 million people is overwhelmingly moderate but the country has grappled for more than a decade with a small but virulent group of violent Islamist extremists.

In recent years, Indonesian security authorities have led a hugely impressive effort to disrupt JI, capturing or killing hundreds of members and splintering the organisation behind a series of deadly bombings across Bali and Java from 2002 to 2009. But the rise of IS is new terrain for counter-terrorism authorities.

"Indonesian police have done a good job in the past," says Noor Huda Ismail. "But I fear they are oblivious to the risks in the present. I don't want to be an alarmist but the threat posed by Islamic State is real. It is expanding and there is a new cluster of terrorists who operate differently to the old ones."

Certainly IS has spoken about its objective of turning south-east Asia into a province of its worldwide caliphate. It is a "grandiose" objective highly unlikely to succeed but, says Singapore's Prime Minister Lee Hsien Loong, "the threat is no longer over there; it is over here".

Nasir Abbas, a former senior JI member who rejected terrorism and now lectures in terrorism studies at the University of Indonesia, says IS is playing a "long game". "They are not just going to Syria to fight there. They have the intention to come back to this country and do something. It's serious."

Abbas says they are inspired by the prophet Muhammad, who fled Mecca for Medina – the Hijra, or migration, from which the Islamic calendar begins – but returned in triumph to Mecca almost a decade later to create an Islamic state. "They are playing a long game. That's why they are bringing their children to Syria."

The most immediate concern is a return of the mass-casualty attacks that plagued Indonesia from 2002 to 2009, or the emergence of so-called "lone wolf" attacks by IS-inspired militants in Western countries.

So far, the call from the chief IS spokesman Abu Muhammad al-Adnani for its followers to kill "infidels" wherever they find them and by any means necessary has gone unheeded in Indonesia.

But Twitter exchanges between Indonesian fighters in Syria and followers in Indonesia viewed by Fairfax Media have jihadists regurgitating Adnani's advice to "smash [the infidel's] head with a rock, or slaughter him with a knife, or run him over with your car, or throw him down from a high place, or choke him or poison him".

In one exchange, a fighter who calls himself Abu Karimah Indonesia tells a fellow jihadist apparently frustrated by his inability to travel to Syria: "Our leader makes jihad easy for you. Kill any salibis [crusaders] you can find. Salibis can easily be found.

"Process your target. The bigger the better. But if it's difficult, it's more important in jihad to simplify and do it sooner. You can use anything. For example, a car. Video the process... run them over while passing."

In "official" videos posted on YouTube by Indonesian IS adherents in Syria, threats of attacks on Indonesian soil have centred on attacking police, military and government figures. They have also flagged a plot to break Abdurrahman and Bashir out of Nusakambangan prison.

Sidney Jones, a Jakarta-based terrorism analyst with the Institute of Policy Analysis and Conflict, says there are a number of scenarios under which IS could order – or inspire – terrorist attacks in Indonesia.

For the time being, however, she believes that IS will be preoccupied with its battle in Syria and Iraq and solidifying its self-proclaimed caliphate. "They need Indonesians for fighting," she says.

Experts on terrorism are generally unified in assessing that the threat posed by IS is rising, and that the Indonesian government is responding poorly to the challenge. While former president Susilo Bambang Yudhoyono "banned" IS last year, his edict has "no legal force", Jones says.

There are no laws in Indonesia prohibiting membership of IS, training with it or fighting with the group overseas. Prosecutors have had to rely on other offences – such as links to domestic terrorist activities and passport violations, among others – to secure jail time for IS members and recruiters in the courts.

Efforts by the Ministry of Information to shut down pro-IS websites and blogs have been largely futile. The domain names of the sites are simply tweaked and continue to distribute jihadist propaganda.

New terrorism laws are being drafted by Indonesia's anti-terrorism agency but, Jones says, very few members of Indonesia's parliament see the IS threat as a top priority.

They are preoccupied with other bills and controversies – many of them related to their own self-interest, such as laws and regulations governing upcoming regional elections and political party financing.

It could be years, rather than months, before new laws are enacted. In the meantime, more Indonesians are likely to be seduced by IS. "I'm still waiting for my chance to go to Syria," says Budi, animated and excited by the prospect. "I'm still trying to persuade Farihin to go as well."

Source: http://www.smh.com.au/world/islamic-state-contagion-growing-in-indonesia-20150807-gir4vk.html

Sex & pornography

Minister urges parents to monitor kids' phones to prevent child abuse

Jakarta Globe - August 2, 2015

Jakarta – The minister for women's empowerment and child protection has called on parents to snoop on their teenaged children's mobile phones to avoid their exposure to pornography.

"Let me remind all parents to look after and protect their kids... I also want to urge cellphone control, especially when the child is entering junior and senior high schools," Minister Yohana Yembise said on Sunday, as quoted by local news portal Republika.com.

Yohana added that parents should monitor website history on their children's cellphones as the wired world can potentially expose kids to sexual abuse, such as online prostitution.

Noting that there were more than 3,500 child assault cases between 2013 and 2014 lodged across the archipelago, the minister said parental monitoring could reduce sexual abuse involving children.

The Indonesian government has since 2004 blocked access to more than 800,000 porn sites, according to the Communication and Information Technology Ministry.

In May, Yohana announced that the government was drafting a set of rules to prohibit elementary school students using cellphones and to limit junior and senior high school students' access to mobile phones.

Source: http://thejakartaglobe.beritasatu.com/news/minister-urges-parents-monitor-kids-phones-prevent-child-abuse/

Agriculture & food security

Desperate residents rely on water deliveries as lifeline

Jakarta Post - August 8, 2015

Ganug Nugroho Adi and Suherdjoko, Wonogiri/Semarang – Tens of thousands of residents in Java have been depending on clean water being supplied by local authorities over the past several weeks, as a severe water crisis triggered by this year's prolonged dry season has begun to spread on the country's most populated island.

In Wonogiri, Central Java, the regency's Disaster Mitigation Agency (BPBD) reported on Friday that at least 67,300 residents in eight districts had been struggling with a water crisis over the past two few months.

Wonogiri BPBD acting head Bambang Haryanto said that among the worst-hit areas were Pracimantoro district, inhabited by 23,500 residents, and Paranggupito district, a home to 8,400 people.

"People in the affected districts used to get their water supply from wells and ponds, which are now dried up because of the prolonged dry season. They have no option other than waiting for the clean water that we distribute," Bambang said.

Bambang said his agency had dispatched 264 water tanks with capacities of 6,000 liters each to the affected villages since mid-July. In each delivery the agency, however, could only provide a two-day supply of clean water to every village because of the limited number of available tanks.

"We hope the private sector, or individuals, could also help provide immediate clean water assistance to the affected villages. If we seek for other solutions, like building artesian wells or water pipelines, it would be just too late for the residents," Bambang said.

Meanwhile in the Central Java capital city of Semarang, residents in several villages have also reported clean water shortages.

Harjanti, 47, a resident of Rowosari subdistrict, said she must wait for at least two days until an artesian well in her house accumulates enough water to be fetched.

Semarang BPBD logistics affairs head Bambang Rudi said his agency had provided clean water assistance to residents in a number of areas.

"We have already dispatched 100 tanks with a capacities of 5,000 liters each. The water supply is sent to subdistricts that have submitted formal requests for clean water assistance," Bambang said.

Indonesia is home to 240 million people, with around 60 percent of them living on Java. Earlier, farmers in many regions in the country have also reported difficulties in providing sufficient irrigation for their crops because of the long absence of rain, which has been triggered by the El Niqo weather phenomenon.

On Thursday West Java Agriculture and Food Crops Agency head Diden Trisnadi said at least 7,400 hectares of paddy fields in the province had experienced harvest failure caused by the prolonged dry season.

Separately, Wonogiri Agriculture Agency head Safuan said that 6,714 ha of rice fields in the regency had been reportedly abandoned by local farmers because of the severe water crisis. The rice fields, he said, were located within the irrigation system that relies on water from reservoirs and dams.

"As of today, seven reservoirs and 13 dams in the regency have dried up," he said.

Source: http://www.thejakartapost.com/news/2015/08/08/desperate-residents-rely-water-deliveries-lifeline.html

Inept officials, database slow efforts to curb water crisis

Jakarta Post - August 6, 2015

Syamsul Huda M. Suhari, Ganug Nugroho Adi and Suherdjoko, Gorontalo/Surakarta/Semarang – Despite the worsening impacts of this year's prolonged dry season, a lack of coordination among local officials has slowed the government's efforts to provide assistance for farmers and residents in the country's worst-hit regions.

In Gorontalo city, a recent coordination meeting involving officials from Gorontalo province's six regions heated up after some of the participants disagreed about the extent of the impact of the prolonged dry season on the province.

An official from Bone Bolango's Agriculture Agency, for example, reported that 1,081 hectares of corn fields in the regency had suffered from drought over the past few weeks. An official from the province's Pest Control and Plant Protection Agency (BPTPH), meanwhile, insisted that drought had hit only 31 ha of corn fields in the regency.

During the meeting, held on Tuesday at one of the city's biggest hotels, both officials insisted that their respective data was valid and up-to- date.

Gorontalo province's Agriculture Agency head Muljady Mario admitted that many basic statistics on the agriculture sector submitted by local agencies did not match when compared. "This meeting is aimed at examining all that data, to find out which is valid," Muljady said.

Muljady said the Tuesday meeting was critical as the administration needed to know which parts of the region had been worst hit by drought and needed immediate assistance.

"The agency actually has 54 water pumps; each of them has a capacity of between 15 and 20 liters per second. However, we still don't know which areas experienced drought and whether water can still be pumped out there," he said.

Last week, the Public Works and Public Housing Ministry confirmed that over 9,000 ha of rice fields in six provinces, including South Sulawesi, Central Java and East Java, have experienced harvest failure over the past few months due to a prolonged dry season caused by the El Niqo weather phenomenon.

While the dry season in Indonesia normally occurs from April to September, El Niqo has been predicted to extend the dry season until the end of the year.

Despite the long absence of rain in most parts of the country, Agriculture Minister Amran Sulaiman said on Tuesday that the prolonged dry season would not significantly disrupt the country's target of increasing its rice production this year.

The ministry, he said, had also taken many anticipative measures, including developing tertiary irrigation for 1.3 million ha of crop fields and distributing 40,000 units of agricultural equipment and machines. Many farmers, however, said they had yet to feel the impacts of such policies.

Amin Polingala, who grows mustard greens in Tilango district, Gorontalo regency, said he was now relying on a small-capacity water pump to water his vegetables. Last month, he had to spend extra money to buy 30 liters of gasoline to operate the pump. "What else can I do?" he said.

Meanwhile, in Kudus, Central Java, residents in Kalirejo subdistrict have been forced to wash in rivers – where buffaloes are also bathed – as wells and other water resources have recently dried up. "For cooking and drinking, we must spend Rp 3,000 [22 US cents] to buy 40 liters of clean water," Yuyun, a local resident, said.

Also in Central Java, the Wonogiri Disaster Mitigation Agency (BPBD) has continued to distribute clean water to areas in the southern part of the regency that have been struggling with severe water shortages. BPBD head Bambang Haryanto said 207 tanks with a capacity of 6,000 liters had been readied for the task.

Source: http://www.thejakartapost.com/news/2015/08/06/inept-officials-database-slow-efforts-curb-water-crisis.html

Drought sets in across Java, threatening livelihoods and food security

Jakarta Globe - August 3, 2015

Ari Susanto & Vento Saudale, Solo/Bogor/Jakarta – The Central Java government has earmarked funds in anticipation of a clean-water crisis during this year's dry season, which is expected to be unusually long due to the El Nino weather phenomenon.

Officials have expressed concerns that such a severe drought throughout the province could threaten food security across Java, as the area's rice paddies are one of the country's main sources.

"We have decided to allocate Rp 20 billion [$1.4 million] to lessen drought and water deficiency in impacted villages by distributing clean water," Central Java Governor Ganjar Pranowo said in Solo over the weekend

However, Ganjar said one remaining problem is that water sources used for irrigation continue to deplete and eventually crops will fail. The government, he said, was seeking solutions by providing ground water for farming.

"The most plausible way is installing deep wells in farm field areas. Otherwise the farmer will harvest nothing," he said.

In February, President Joko Widodo visited Sukoharjo and urged farmers in Central Java to increase paddy crops by two million tons to reach almost 12 million tons this year. Joko targeted rice production to support his goal of achieving a national rice surplus by 2017 so that the government can end rice imports.

With around 1.8 million hectares of farm field, Central Java produced 10 million tons rice in 2013, which slightly dropped to 9.6 million tons in 2014. Despite the drought, Ganjar was still optimistic paddy production in Central Java would meet the target.

The Central Java Disaster Mitigation Agency (BPBD) has spotted around 500 villages in the province that are experiencing water crises, mainly in the south and northern parts of the province, including in Wonogiri, Sukoharjo, Klaten, Sragen, Boyolali, Purworejo, Kebumen, Cilacap, Purbalingga, Brebes, Tegal, Pemalang, Jepara, Demak, Rembang, Pati, Grobogan and Blora.

BPBD head Sarwa Pramana said that drought would be worse this year as the dry season was predicted to end in or even after November. The Indonesian dry season rarely lasts beyond October.

Five of the 39 dam lakes in the province have already dried up – three in Sragen and one each in Pati and Grobogan – while water levels in more than 15 other dam lakes continue to diminish.

In Klaten, the local government has announced a drought emergency response. The Klaten BPBD has allocated Rp 500 million ($37,000) as it anticipates low water levels in around 34 villages. The agency has already distributed 500,000 liters of clean water to residents.

Meanwhile, around 7,000 hectares of rain-irrigated paddy fields in north Boyolali have been left unplanted as no rain has fallen during the dry season. The area now consists of completely dry terrain with insufficient ground water for irrigation.

"The farmers wait for rain to plant paddy as there are no other water sources," said Bambang Purwadi, a Boyolali agriculture official.

Source: http://thejakartaglobe.beritasatu.com/news/drought-sets-across-java-threatening-livelihoods-food-security/

Land & agrarian conflicts

Government backtracks on land redistribution

Jakarta Post - August 6, 2015

Hans Nicholas Jong, Jakarta – Following pressure from the private sector, the government has backtracked on its new regulation that requires forestry companies to allocate at least 20 percent of their existing concession areas to local people.

According to the Environment and Forestry Ministry on Wednesday, the ministerial regulation only applies to new concession holders that have not gone into production.

"In regards to the 20 percent requirement, the Association of Indonesian Forest Concessionaires [APHI] asked [for the regulation to] not apply to areas that have gone into production as it would disturb their production," the ministry's social and partnership forestry director general, Hadi Daryanto, said on Wednesday.

Therefore, only new concession holders are required to allocate 20 percent of their areas.

"So we don't affect production because production needs investment and investment needs labor. So we have to protect both [business people and indigenous people]. The government acts as a negotiating thread for the interests of multiple parties," Hadi said.

He said that if the new regulation affected business people, then it would also affect investment in the forestry sector. "Why would we want to disturb production? How could we hope people will invest in such a difficult situation?" said Hadi.

Last month, APHI executive director Purwadi Soeprihanto said the regulation would make their forestry business no longer economically viable because it would significantly squeeze their plantation areas.

For this reason, he said, the association had proposed to the government to impose the new regulation only on new concession areas, not on areas that have already been planted.

As many as 154 of the association's members are involved in the industrial forestry business, with a total of 7.45 million hectares of concession areas. They are mostly involved in timber, sago and rubber plantations.

APHI director on industrial timber plantations (HTI), Nana Suparna, said that the leeway was a relief for the industry.

"If the government forces [the regulation on all concession holders], then it would disturb existing working plans," he told The Jakarta Post on Wednesday. "Therefore, I agree very much [on the leeway] and it's so wise [for the government to do so]."

As for new concession holders, Nana said that it would not be a problem for them as long as they could afford to invest under the new regulation.

Even though the ministerial regulation has come into effect, Environment and Forestry Ministry planology director general San Afri Awang recently said that many companies had failed to abide by the regulation.

"Companies have not done that [allocating 20 percent of their concession areas]. I'm not afraid to say that based on data that I've seen, as well as on testimonies from some companies," he said.

According to him, around 430,000 hectares of land has not been allocated to local people under the partnership scheme despite the fact that the government has given leeway to forest concessionaires.

The Indigenous People's Alliance of the Archipelago (AMAN) said that it was not relevant to the indigenous people's demand for the country to restore their rights to manage their customary forests, estimated to encompass 40 million hectares across the country.

AMAN secretary-general Abdon Nababan said that the government should have focused on restoring indigenous people's land rights by mediating conflicts between them and concession holders, instead of focusing on delivering a certain size of land.

"The 20 percent requirement is simplifying the land rights restoration process," he told the Post.

While the government has accommodated business people's demands, Hadi said that it would not hinder the government's plan of redistributing 12.7 million hectares of social forests from 2015 to 2019 to deal with rampant land disputes involving indigenous communities.

"We still have 36.6 million hectares [that could potentially be turned into social forests for indigenous people]," he said.

Source: http://www.thejakartapost.com/news/2015/08/06/govt-backtracks-land-redistribution.html

Governance & administration

Rp 50 million salary proposed for regional heads

Jakarta Post - August 4, 2015

Jakarta – Home minister and PDI-P politician Tjahjo Kumolo proposed on Tuesday increasing regional heads' salaries to Rp 50 million (US$3,713), or five times higher than the current figure. Under the proposal, this would apply to both regents and mayors.

"I have submitted the proposal to the President," Tjahjo said as quoted by www.tribunnews.com. According to Tjahjo, the raise would materialize in 2016 or 2017 on the condition that Indonesian economy had grown by 6.5 percent. Under the planned scheme, a governor's salary could reach Rp 80 million.

A similar raise, he added, could also be applied to Indonesian military and police officers. The proposal would include giving lowest ranking officers a basic salary of Rp 5 million plus a housing option. Tjahjo explained that the increases would be contingent on regional heads' work performances. He also called for stricter supervision of regional heads' earnings as sometimes they also received income from other sectors.

"Law enforcers may misinterpret those extra sources of income, which explains why many regional heads are accused of corruption. We want to fix this," Tjahjo added. (edn/ika)

Source: http://www.thejakartapost.com/news/2015/08/04/rp-50-m-salary-proposed-regional-heads.html

Jokowi worries 'big forces' hampering govt projects, policies

Jakarta Post - August 3, 2015

Raras Cahyafitri, Banggai, Central Sulawesi – President Joko "Jokowi" Widodo has said that numerous big projects in the country are being left idle and unfinished for years because there are "big forces" that consistently hamper the development of government programs and policies.

The president said that he was undeterred and offered political support to speed up the implementation of policies or the realization of a government project.

"If political back up is needed, please tell me. Sometimes even ministers cannot execute a policy because 'big forces' work against them," Jokowi said during the inauguration ceremony of several oil-and-gas projects in Central Sulawesi on Sunday.

To offer an example, Jokowi mentioned the recent policy undertaken by the Maritime and Fisheries Ministry to sink illegal fishing boats. "I needed to order it three times before it was executed," he said.

Many big projects currently under the spotlight surround the oil-and-gas sector and the mineral and coal industries.

There are several big deepwater gas projects, such as the Indonesia Deepwater Development (IDD) by Chevron and the development of a deepwater facility at the Masela block by Inpex, which are currently in a state of uncertainty because contractors are still working on the revision of the projects to make them more economical with a longer contract period.

The issue of the expiring contract of giant copper miner PT Freeport Indonesia is currently also a nightmare for the government.

The company is planning to invest billions of dollars for its underground mining and smelter development yet it needs certainty that it will be able to continue to operate beyond 2021, a complicated issue involving a law and certain regulations that the government are still trying to solve.

Chevron and Freeport bosses recently met to Jokowi to try and solve the issue.

Meanwhile, late last week the government decided to keep the fuel price at its present level despite rising concerns that this price level would result in bigger losses for state-owned Pertamina.

Since late March, the government has set the price of Premium-branded gasoline far below the market price, arguing that the move was needed to maintain people's purchasing power.

Given the fact that there is no fuel subsidy for Premium, the price gap grew higher alongside with the inching upward of the world price. In July, the gap grew from Rp 750 (5 US cents) to Rp 1,950.

Pertamina, the country's biggest dividend payer to the government, has recorded Rp 12 trillion in losses that it has had to bear from selling fuel below the market price.

Apart from promising "political support", Jokowi also called for a re- industrialization program aimed at processing the country's resources in domestic facilities rather than sending them abroad as raw materials.

"To support the downstream industry, there must be energy [infrastructure] that must be built. Integrated projects should be continuously established in all regions so that they will generate a large effect for the country," he said.

On Sunday, Jokowi officially inaugurated several projects integrating the upstream and downstream sectors of oil-and-gas with a total investment of US$5.8 billion.

The projects consisted of the central processing plant operated by the Joint Operating Body Pertamina Medco Tomori Sulawesi, the first shipment of an LNG cargo from the Donggi Senoro LNG Plant to the Arun re-gasification terminal in Aceh, the GG field in the Offshore North West Java block and breaking ground in the development of an ammonia plant owned by PT Panca Amara Utama.

"Potential income for the government will be about $7.02 billion for a 13 year period based on the assumption that the oil price will be listed at $70 per barrel. This assumption is still reliable," Energy and Mineral Resources Minister Sudirman Said said.

Source: http://www.thejakartapost.com/news/2015/08/03/jokowi-worries-big-forces-hampering-govt-projects-policies.html

It's time for a cabinet reshuffle, observers say

Jakarta Globe - August 2, 2015

Andreyka Natalegawa, Jakarta – President Joko Widodo must put careful consideration and thought into planning prospective changes in the composition of his Working Cabinet, observers note as calls for a ministerial reshuffle build into a crescendo.

"If the president thinks that cabinet members are not performing well, he needs to consider different ways of either improving teamwork, administrative processes, or the ministers themselves," said Djayadi Hanan, executive director of Saiful Mujani Research & Consulting (SMRC).

"If he chooses to reshuffle, Joko needs to think very hard about how to communicate this to his own party supporters and the public, without alienating or losing support from either group."

A reshuffle has long been in the cards for Joko's cabinet, despite its relatively short period of existence.

"Even before a year of his administration, Joko's approval rating has plummeted, which means that most of the public is becoming disappointed with his performance," Djayadi said.

"In our surveys, the president's approval rating was around 40 percent. We can compare this to data on the previous president Susilo Bambang Yudhoyono, who received around 65 percent or above in the same period."

"This disappointment is both in terms of Joko's general performance, and in terms of the performance of his cabinet ministers," Djayadi added.

In recent weeks, President Joko has remained guarded on the topic of a prospective cabinet reshuffle. "I never mentioned a reshuffle; the press keeps talking about a reshuffle," Joko said on July 9, in direct contrast to statements from Vice President Jusuf Kalla on the imminence of a reshuffle.

Despite conflicting reports, Djayadi argued that a cabinet reshuffle must be enacted at some point. "When we asked the public for their opinion of ministers, the ratings in general were low. The highest ranking was the 27 percent approval for Minister of Maritime Affairs and Fisheries Susi Pudjiastuti."

"This is a strong warning to the president to make sure his next moves address the concerns of the public, in terms of his performance in the economy, in corruption eradication, and his performance in terms of key political issues," Djayadi said. "There is a need to reshuffle the cabinet. It's there. But the timing is important."

Slowdown and uncertainty

Calls for a cabinet reshuffle have become increasingly common amid slowing growth of the Indonesian economy.

"The current economic slowdown is in part due to the complications in government budget expenditure, which is now very late in terms of disbursement," said Arief Bustaman, a lecturer with the department of economics at Padjadjaran University in Bandung.

"In nearly every ministry, the overall budget absorption is perhaps only 20 percent, which means that many government projects have become very delayed in execution."

According to Djayadi, economic worries have factored deep into into discontent towards Joko's cabinet.

"The disappointment in Jokowi's performance is in large part due to his performance in the economy," Djayadi said, referring to the president by his popular nickname.

"If the economy continues to deteriorate, if the rupiah continues to plummet to the bottom of the sea, and if the price of basic goods and transportation keeps rising, then there will be a point where people will have had enough."

In reshuffling the makeup of his cabinet, Joko may be able to provide much-needed stability in a time of uncertainty

"A cabinet reshuffle could be helpful in increasing investor confidence in Indonesia," Arief said on Saturday. "Currently, it seems there is no coordination between ministries. Their programs are not well coordinated, and it is a pity that the vision and mission of the president's administration have not been executed by the ministers."

In particular, Arief highlighted conflicting economic policy decisions among ministers as a cause for concern.

"The Ministry of Trade is now moving to protectionist policies, while other countries in the region are working towards liberalizing their economies."

"When it comes to coordination between ministries, especially the Ministry of National Development Planning, it seems like there's no guiding planning documents. They don't produce planning documents."

"So these ministries are confused about the direction of their programs in relation to the president's mission," Arief added.

Communication challenges

Djayadi also believes that communication woes have led to discontent, as cabinet members struggle to connect with the public.

"The slowdown of the Indonesian economy is not merely because of the bad performance of the government. It's also because of a slowdown of the economy in general, which is a variable that cannot be entirely controlled by the government."

"The administration has to explain to the public, elegantly, that the economic slowdown isn't just because of the domestic situation."

"Concurrently, the president needs to offset the negative impact of the global economic slowdown by massively building infrastructure projects inside Indonesia using the national budget," Djayadi added.

However, enacting large-scale projects may be easier said than done, as a lack of job security for top officials has led to inaction in government efforts to combat unfavorable economic conditions.

"Some of these processes won't begin within this year, because officials fear that they will get fired if their projects cannot get finished quickly," said Arief.

Djayadi concurred, noting that the president must take an active role in ensuring a sense of stability among cabinet members.

"As a leader, the president needs to give certainty to his cabinet, to make them feel secure enough to do something in their capacity as ministers. If they fear that they'll be fired at any time, they won't work well."

"It's difficult to work well, to make any long-term plans, if there's the threat of being replaced without warning. There's no job security," Djayadi said.

In June, Joko told media outlets to refrain from disrupting minsters with questions regarding a reshuffle.

"Do not disturb ministers who are still at work. Do not create issues. You should not cause a ruckus by asking about the performance reports of the ministers. Only the president needs to know," Joko said.

Political maneuvers

According to observers, Joko will need to take into account an array of competing interests in managing a prospective cabinet reshuffle, as political interests fight to push the president into reallocating ministerial seats. "There is pressure from political elites, both inside and outside the president's circle, that have been pushing the president towards reshuffling the cabinet," Djayadi said.

"Politically, a reshuffle could be the entry point for the president to add up more partisan powers to his coalition, so that the number of seats he commands in national legislature [DPR] adds up to a simple majority, at least."

"Because of its internal changes in some of the opposition parties, more groups are becoming open to cooperating with the president. Joko could take advantage of this situation in the form of granting political concessions, by granting posts to these parties," Djayadi said.

However, bringing opposition elements into the cabinet may spark the ire of camps from within Joko's coalition, who themselves seek to be better represented in any new cabinet.

"The current members of Joko's coalition, many of whom have been there from day one, may not be happy if the number of ministerial of posts they hold now is reduced," said Djayadi. "If the president intends to bring in opposition ministers without revoking posts from his own coalition, then it will come at the cost of losing ministers who are unaffiliated with parties."

Capitulating to political motivations by reducing the number of ministers not affiliated with parties may prove an unpopular move for the president, as public opinion favors the depoliticization of the cabinet.

"If he brings in ministers from parties like Golkar and Gerindra, Joko will be increasing the proportion of political appointments to his cabinet, which betrays the promises he made on the campaign trail," Djayadi said.

During his presidential election campaign, Joko made numerous statements vowing to limit political jockeying in cabinet operations, mandating that all appointees give up any roles within up roles within political parties.

Thus far, Joko's mandate has made little impact, as key cabinet figures like Puan Maharani from the Indonesian Democratic Party of Struggle (PDI-P) maintain their positions within political factions.

Moreover, Joko's drive to reshuffle the cabinet may face obstacles in finding candidates suitable enough to sit in ministerial posts. On June 3, President Joko spoke to chief editors from Indonesia's major news organizations on difficulties in finding people to fill crucial administrative posts, citing a lack of trust and communication.

"I need staffers I can trust," Joko admitted. "My [ideal] staffers would be those who, when they speak, the public believes them, investors believe them, the markets believe them. Their words are irrefutable. I'm still racking my brains. It's hard [to find such people]," Joko added.

Joko's decision to either bow to political or technocratic pressures will be contingent on the president's assessment of his own political stability, analysts note.

"If he bows to political pressure in appointing ministers, it shows that he still suffers from a lack of power," Djayadi said. "But if Joko ignores that, and considers only technocratic and public opinion considerations, then it shows that he's confident in his ability to consolidate his own political power."

According to Djayadi, the president's actions in handling the cabinet reshuffle will be subject to immense public scrutiny, and could have significant impact on public opinion of national leadership moving forward.

"No matter what happens, Joko needs to show us more in the next four years," Djayadi concluded. "He needs to be ready to show the public that he is a leader, otherwise people will continue to be disappointed."

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/time-cabinet-reshuffle-observers-say/

Jakarta & urban life

City hall donates Rp 50b in anti-riot gear to Jakarta military command

Jakarta Globe - August 7, 2015

Jakarta – The Jakarta administration has donated hundreds of motorcycles and thousands of anti-riot equipment worth nearly Rp 50 billion, or $3.7 million, to the local military command to help boost security in the capital.

"We not only want Jakarta to be beautiful and clean but we also want our city to be safe," Governor Basuki Tjahaja Purnama said at City Hall on Friday as quoted by CNN Indonesia. "We hope the military can help police provide security with the motorcycles and equipment."

The governor handed over 326 motorcycles and 2,950 sets of anti-riot gear to the Jakarta Military Command, or Kodam Jaya, which also oversees security in the satellite cities of Bekasi, Depok and Tangerang.

Basuki said he expected the motorcycles to be useful in helping the security forces respond more quickly to riots and other acts of mass disturbance.

"We hope that within at least eight minutes after there's a crime report, the officers can reach the location and stop those who want to hurt Jakarta residents," Basuki said.

The Kodam Jaya commander, Maj. Gen. Agus Sutomo, said he also expected his officers be more agile in beefing up security as part of the capital's surveillance forces.

"We have received the donation from the Jakarta government. I believe this will help us a lot in protecting the capital because the threats facing Jakarta are very complex," he said.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/city-hall-donates-rp-50b-anti-riot-gear-jakarta-military-command/

Keep calm and don't shoot, police chief urges drivers

Jakarta Post - August 5, 2015

Jakarta – The Jakarta Police chief Ins. Gen. Tito Karnavian urged car drivers on Wednesday to keep a cool head in the city with the worst traffic in the world and, most importantly, try not to shoot each other.

Tito's statement came on the heels of two car shooting incidents occurring on toll roads in Jakarta recently.

Last week, a driver shot at another car on the Jakarta Outer Ring Road in Cipayung, East Jakarta. From his Kia Picanto, the driver shot at a Daihatsu Xenia, in response to being suddenly overtaken.

Even though there have been no casualties reported, the case is being handled by the East Jakarta police.

On Sunday, a similar incident occurred involving a Honda Jazz and a Toyota Avanza on the Jagorawi toll road, in Depok. The driver of the Honda has since reported the driver of the Toyota for shooting at his car.

The case is now under investigation with the military police because the shooter, who is still on the run, is allegedly a military officer.

"Both cases in East Jakarta and Depok happened because the drivers were too emotional. They tried to overtake each other," Tito said, as quoted by kompas.com.

Tito also called on car drivers to respect each other, particularly considering that the traffic congestion in the capital was worsening. "Everyone seems to be in a rush. I ask you all to be more patient," Tito said.

He also called on gun users to use their weapons strictly for safety measures and not for threatening others in the traffic. The police, Tito added, would also conduct routine monitoring on gun usage.

Jakarta gained the status as the city with the worst traffic in the world in a 2015 survey carried out by British lubricant producer Castrol. (ika)

Source: http://www.thejakartapost.com/news/2015/08/05/be-patient-don-t-shoot-each-other-jakarta-police-chief-urges-car-drivers.html

Armed forces & defense

Why is Indonesia upgrading two naval bases?

The Diplomat - August 8, 2015

Prashanth Parameswaran – The Indonesian Navy (TNI-AL) is upgrading two of the country's naval bases as part of a broader boost to the country's maritime capabilities, according to local military sources.

A source from TNI-AL told IHS Jane's that it will promote two provincial naval bases to the status of district bases – one located on the island of Tarakan near North Kalimantan (Lantamal XIII) and the other in Sorong (Lantamal XIV) in West Papua – probably by the end of 2015.

Such upgrades are important within the context of Indonesia's two-tier naval basing system as they are indicators of shifting priorities and may signal the greater allocation of resources in the future.

The upgrade of Lantamal XIV is believed to be in line with ongoing preparations for the establishment of a third fleet to be called the Central Fleet.

As I have noted previously, Indonesia currently has two fleets – a Western Fleet (KOARMABAR) based in Jakarta and an Eastern Fleet (KOARMATIM) based in Surabaya. But Indonesian military officials have said they want to create another fleet as they look to increase the country's maritime capabilities.

Meanwhile, the TNI-AL source told IHS Jane's that the upgrade of Lantamal XIII is part of ongoing efforts to strengthen Indonesia's position in Ambalat sea block in the Celebes Sea, where it has an ongoing maritime dispute with neighboring Malaysia.

This, too, comes as no surprise. As I wrote in an earlier piece, Indonesia's disputes with its neighbors is a significant factor that feeds into its defense planning, even if this is often not adequately appreciated among some outside observers.

More specifically, of late, Indonesian officials have been accusing Malaysia of conducting increasing incursions into the country's airspace and waters in the Ambalat area.

In June, information obtained from Tarakan airbase showed that Malaysian warships had been spotted illegally entering Indonesian waters off Ambalat in the district of Nunukan on nine separate occasions. In response, Indonesia's Coordinating Minister for Political Affairs, Security and Law Tedjo Edhy Purdjianto had said that the country would intensify monitoring and tighten border protection on the sea, land and air borders by deploying aircraft from the Tarakan airbase. The Indonesian Navy has also since stepped up its patrols there.

Source: http://thediplomat.com/2015/08/indonesia-to-upgrade-naval-bases-in-boost-to-maritime-capabilities/

Foreign affairs & trade

Government denies protectionism, says Indonesia tariffs among the lowest

Jakarta Post - August 7, 2015

Satria Sambijantoro, Jakarta – Top economic ministers on Thursday rejected mounting accusations that the government is adopting a protectionist trade policy stance as Indonesia's new import tariff policy came under the spotlight in the free-trade global community.

Even after the recent hike in import tariffs, Indonesia's average duty of imported goods stood at around 8.3 percent, Finance Minister Bambang Brodjonegoro explained.

Bambang noted that the figure was among the lowest rates in the World Trade Organization's (WTO) most-favored nation agreement, which regulates trade between member countries.

"Ours was still well below many countries. If you look at China, for example, their rate currently stands at around 9 percent," he said at the State Palace on Thursday. "This means we remain an open country."

The Indonesian government last month raised import tariffs for consumer goods ranging from food and clothes to cars in a move that was intended to support the local manufacturing industry against an influx of overseas products.

Import tariffs for overseas tea and coffee quadrupled from 5 to 20 percent, while for alcohol products the rate was lifted to as high as 150 percent.

International analysts have been critical of the policy, describing it as a misguided populist move from President Joko "Jokowi" Widodo, especially considering Indonesia's economic growth has slowed to six-year low of 4.6 percent in the second quarter.

Analysts from the Lowy Institute for International Policy in Sydney concluded that Jokowi was leaning toward greater protectionism with his set of trade restrictions.

The tariff hikes have given "negative signals" on the government's reform priorities, according to Nomura Holdings, a Japan-based fund manager. The policy reflected the "protectionist tide" of the current government, analysts from Bank of America Merrill Lynch said recently.

Economists from the Singapore-based DBS Group said that the tariff hikes could increase Indonesia's annual inflation by 0.5 percent as consumers' price expectations for consumer goods go up, especially as the policy would affect more than 1,000 items.

Undeterred by the criticism, minister Bambang said that he was now preparing to harmonize certain tariffs that could help domestic industries by promoting imports of raw commodities and discouraging overseas purchase of finished goods.

Indonesia, the largest economy in Southeast Asia, is among the most sought-after markets among regional exporters, thanks to the strong purchasing power of its 250 million citizens.

Household consumption accounts for 55 percent of Indonesia's gross domestic product (GDP). Total imports of consumption goods were valued at US$12.7 billion throughout last year, data from the Central Statistics Agency (BPS) reveals.

"It is our intention to protect our domestic market," Trade Minister Rachmat Gobel told reporters on Thursday. "We may open our market to boost competitiveness, but there should be a protection against the influx of low-quality imported goods."

Coordinating Economic Minister Sofyan Djalil argued that it was not a hypocritical move for President Jokowi, a former furniture exporter, to lobby leaders from Turkey and the UK last month to lower their own tariffs for Indonesian exports, at times when the government was raising duties domestically.

The government was now only looking to fix its "erroneous" policy stance in the past as the economy had been too open for imports of consumption goods, the minister stated. Amid recent criticisms of the import tariff hike policy, Sofyan insisted that Indonesia would continue negotiations with its trade partners regarding the free trade agreements. "We are looking to continue free trade negotiations with the EU. We are still playing with the rules of free trade and WTO."

Source: http://www.thejakartapost.com/news/2015/08/07/govt-denies-protectionism-charges-says-ri-tariffs-among-lowest.html

Relations with Indonesia back on track: Julie Bishop

Sydney Morning Herald - August 5, 2015

Lindsay Murdoch, Kuala Lumpur – Foreign minister Julie Bishop has signalled that Australia's relationship with Indonesia is back on track after a diplomatic freeze over the executions of the Bali nine duo and boat turn-backs.

Ms Bishop said it is in the national interests of both Australia and Indonesia to have a strong relationship after meeting her Indonesian counterpart Retno Marsudi in Malaysia.

"Our relationship has always been strong," she side on the sidelines of a meeting of south-east Asian foreign ministers. "We have faced challenges from time to time," she said.

Ms Bishop said Ms Marsudi spoke strongly in support of Australia's role in the region at a closed meeting of the 10-member Association of South-East Asian Nations.

The meeting between Ms Bishop and Ms Marsudi was the first by any ministers from the two countries since Australia withdrew its ambassador in Jakarta in protest at the death by firing squad of rehabilitated drug smugglers Andrew Chan and Myuran Sukumaran in April.

In a further sign of a normalisation of the relationship Ms Bishop announced that Trade Minister Andrew Robb plans to head a delegation of Australian businessmen to Indonesia soon.

Ms Bishop said despite Australia's falling out with Indonesia over the executions she has kept in contact with Ms Marsudi. "We are neighbours. We have many interests in common," she said.

Ms Bishop also plans to raise in further discussions with Ms Marsudi Indonesia's recent 80 percent cut in live cattle permits to Australia and ways to boost trade.

Ms Bishop also weighed into the highly sensitive debate at the ASEAN meetings over escalating tensions in the South China Sea, despite China's objections to the issue being discussed.

Ms Bishop said she made it plain to the meeting participants that Australia does not take sides in the dispute.

China claims almost all of the oil- and gas-rich region while Malaysia, the Philippines, Vietnam, Brunei and Taiwan have overlapping claims. But Ms Bishop said China has reclaimed much more land in the disputed waters than other nations in the past 18 months.

"We call upon all the countries of south-east Asia and China to respect freedom of navigation through the waters," she said adding that almost 70 percent of Australia's trade passed through the region. We need to see a stop to coercive and unilateral behaviour in the South China Sea," she said.

Source: http://www.smh.com.au/world/relations-with-indonesia-back-on-track-julie-bishop-20150805-gisfei.html

Infrastructure & development

Indonesia needs to make up for lost time on MDGs

Jakarta Post - August 8, 2015

Dylan Amirio, National – The administration of President Joko "Jokowi" Widodo must work harder on meeting the targets set by the UN Sustainable Development Goals (SDGs) program to make up for its dismal performance in achieving the UN Millennium Development Goals (MDGs), which expire this year.

Members of the Civil Society Coalition for Sustainable Development said that they welcomed Indonesia's gesture in agreeing to the Outcome Document on the SDGs at the UN on Aug. 2, saying that the move should push the government to prepare for the implementation of the SDGs within the context of national development.

The next step that the government could take, said International NGO Forum on Indonesian Development (INFID) senior program officer for post-2015 development Hamong Santono, would be President Jokowi attending the upcoming UN General Assembly in New York in September to show Indonesia's commitment to fulfilling the SDGs' 17 development targets by 2030.

"Jokowi's attendance would symbolize Indonesia's leadership and political will in fulfilling the SDGs. Afterwards, Indonesia should waste no time in preparing itself for the goals," he told The Jakarta Post on Friday.

Hamong said that Indonesia's failure to meet the MDGs was caused by a lack of coordination between the central and regional governments. He also blamed the lack of public campaigns on MDGs for contributing to the failure.

Because of the lack of information on the MDG targets being distributed to regional governments and even to ministries, the progress toward improving gender equality, child mortality, maternal health and poverty reduction, among other things, had been minimal, especially in areas where the problems are the most prevalent.

"There are a lot of facts from the field that are not necessarily reflected in official documents charting the progress. We want to know how the government is able to organize the regulatory framework so that the processes toward fulfilling these goals can be achieved," he said.

There should also be efforts to involve civil society in the fulfillment of the SDG targets, said Indonesia Women's Coalition secretary-general Dian Kartikasari.

Failure to involve members of civil society or relevant institutions such as the House of Representatives or regional governments could condemn the government to repeating the mistakes from the MDGs.

Meanwhile, Migrant Care development policy analyst Wahyu Susilo blamed politics for the failure in meeting MDG targets. He said that Indonesia was distracted by political tensions between 2000 and 2005, adding that the country had made little progress in trying to fulfill the targets during the last five years.

"Also, the MDGs were drafted in a top-down sort of system. Even though UN countries adopted it in 2000, the clear focuses of the MDGs were not equally distributed among 'lower' countries. The SDG drafting process is more of a participatory system which Indonesia can be very involved in creating too," Wahyu told the Post.

The SDGs are a set of 17 development goals that rose from the ashes of the MDGs, which were agreed upon by UN member states in 2000 to be fulfilled by 2015.

The SDGs will include a number of goals that were not included in the MDGs, including an emphasis on gender equality, eradication of child marriage, sustainable modern energy and climate change. Some of the MDG goals that will be further explored in the SDGs include the reduction of inequality, ending poverty and sustainable development.

Source: http://www.thejakartapost.com/news/2015/08/08/ri-needs-make-lost-time-mdgs.html

Economy & investment

Indonesians tend to shop instead of save, says OJK

Jakarta Post - August 8, 2015

Jakarta – Indonesians are becoming more consumptive and tend to not save money, says the Financial Services Authority (OJK).

The OJK's statement is based on the declining ratio of the marginal propensity to save (MPS) in the last three years and the increasing ratio of the marginal prosperity to consume (MPC).

According to OJK commissioner Kusumaningtuti S. Soetiono, MPS has been on the decline since 2011. By the end of 2013, the MPS ratio was below that of the MPC. "It shows that people spend more money than they save," she said during a discussion on Saturday as quoted by kompas.com.

Kusumaningtuti said that the high MPC ratio showed that when people had money, they prioritized making purchases instead of saving. In the long term, the habit will affect the availability of funds at banks that can be used to support economic growth.

According to the International Monetary Fund (IMF), the country's gross national savings per gross domestic product (GDP) currently stands at 30.87 percent.

That ratio is below China (48.87 percent), Singapore (46.73 percent) and Korea (35.11 percent), though still above Malaysia, which stands at 29.83 percent. To encourage people to save, the OJK plans to launch a student savings program. (edn/kes)

Source: http://www.thejakartapost.com/news/2015/08/08/indonesians-tend-shop-instead-save-says-ojk.html

'Very ambitious' infrastructure target face stumbling blocks, report says

Jakarta Post - August 6, 2015

Nadya Natahadibrata, Jakarta – The government's "very ambitious" targets for infrastructure investment will be challenged by an unstable regulatory climate for investment, lack of leadership and lack of coordination within government institutions, a recent report says.

Multinational professional services network PricewaterhouseCoopers (PwC), with research support from Oxford Economics, launched a report on Wednesday that said Indonesia may fall short of achieving its target but may still be able to realize 80 percent of the infrastructure investment target under President Joko "Jokowi" Widodo's leadership from 2015 to 2019.

Investment in roads will remain strong and may accelerate, thanks to a new law on land acquisition reviving stalled toll road concessions. The 35 gigawatt (GW) electricity procurement target is also achievable if state- owned electricity firm PLN and independent power producer (IPP) tenders can be accelerated and key public and private partnership (PPP) projects unblocked, according to the report.

But other sectors will not be as supportive of the target, with investments in mineral extraction, oil and gas, water, railways, ports and airports seen as underperforming.

"One thing that is important is stable investment climate. There's a big challenge in Indonesia – for example, people did not have confidence in the legal system," PwC technical adviser Julian Smith told reporters during the launch of the report.

Smith said that improving strategic leadership below the level of the President could accelerate investment and added that it was important to make sure a few pilot projects succeed and could be copied.

"President Jokowi is doing a great job with leadership but he hasn't got all the machinery of the government moving at the same speed as he is. So he needs the next level not only following orders but to display leadership and to be able to make difficult decisions," he added.

The government's infrastructure spending plan over the next five years totaled Rp 2.2 quadrillion (US$162 billion). That was part of the Rp 5.5 quadrillion of expected infrastructure spending during the same period, for projects including 2,650 kilometers of roads nationwide, 1,000 km of new toll roads, 15 new airports and 24 new seaports.

Investment in mineral extraction will be disrupted by low global commodities prices, combined with the impact of the export ban on unprocessed mineral ore, but new mineral smelters may be built and the government could boost the sector by giving financial incentives for on- shore value adding, according to the PwC report.

For the oil and gas sector, investment will be weak due to volatile global oil prices. However, better commercial and administrative regimes could encourage new oil and exploration, with state firms seen leading new gas distribution and oil refining infrastructure with international partners.

Meanwhile, a Constitutional Court ruling on water resources has also dented investor confidence in the sector and the outlook will remain grim unless it is reversed or mitigated.

As for the transportation sector, rail investment will be disrupted by PT KAI's poor historical record on capital expenditure, while ports investment will pick up due to strong political pressure to up logistics performance, although still not meeting the government's target, and airport investment will be burdened by the slow pace of state airport operators in investment.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto said that the government must provide certainty for businesses that participate in infrastructure projects, which take many years to complete.

"Businesses that participate in the projects must have some guarantee that the rule will not be changed as some of the projects need long-term investment. And if the government wants businesses to participate, the rules of the game must be fair and transparent," Suryo said.

According to Smith, investors also have to believe that if they signed a contract with the government, even if the President was not reelected and a new president took office, the contracts would still be honored.

"The Japanese spent a lot of money preparing the [Cilamaya] project and then it took a long time to make a decision. The project was on, it was off, it was on, it was off and finally it was off. So it undermines people's confidence," Smith said, citing an example. "This happens with too many different projects."

Source: http://www.thejakartapost.com/news/2015/08/06/very-ambitious-infrastructure-target-face-stumbling-blocks-report-says.html

Indonesia's growth slows further in second quarter 2015

Agence France Presse - August 5, 2015

Jakarta – Indonesia's growth slid in the second quarter to levels unseen since 2009, government data showed Wednesday, highlighting the uphill battle for President Joko Widodo in expanding Southeast Asia's biggest economy.

The economy grew at 4.67 percent year-on-year in the three months to the end of June, from 4.72 percent in the previous quarter, Indonesia's statistics agency said. First quarter growth was revised up from 4.71 percent.

OCBC Bank economist Wellian Wiranto told AFP the result was "largely disappointing".

"There's no engine to support growth at this point," he said. "We see weakness across the board from household spending to government spending and also investment activities."

The usual contributors to economic growth in Indonesia such as manufacturing, trade and mining slowed compared to the same period last year, the statistics agency said.

Widodo, elected in October, had promised to boost government spending in a bid to kickstart growth in the lagging economy, but the results were not evident in the second quarter figures.

The president won praise for removing hefty, politically sensitive fuel subsidies early in his term, promising to use the funds to overhaul the country's creaking infrastructure.

But expenditure on such projects has been slow, with bureaucracy in the sprawling archipelago of 17,000 islands just one of the factors blamed for holding back the president's plan.

Foreign investors have been reluctant to inject funds into the country, with some observers criticising inconsistency in government policy for the lack of confidence.

Domestic consumption, once a key driver of economic growth in the nation of 250 million people, has also dipped when compared to the same quarter last year.

Widodo has set a growth target this year of 5.2 per cent but has been warned a slowdown in China and a dip in commodity prices – a large chunk of Indonesia's exports – could thwart this goal.

The gloomy global and domestic outlook has prompted some economists to revise down Indonesia's full year growth to below 5 percent.

"Looking ahead, while we don't think growth will drop further, we don't see scope for much of a rebound either," British-based consultancy Capital Economics said. "We are taking down our growth forecast for this year to 4.7 percent from 5.0 percent previously."

Source: http://www.thejakartapost.com/news/2015/08/05/indonesias-growth-slows-further-second-quarter-2015.html

New tax holiday will lure foreign investors: Government

Jakarta Post - August 4, 2015

Satria Sambijantoro, Jakarta – The long-awaited revision of the government's tax holiday policy is expected to attract more investors to enter Indonesia's strategic industries despite the controversies that surrounded the granting such a tax facility in the past.

The new tax holiday policy, slated to be issued this month, would be a good fiscal incentive to attract new investors in pioneer and strategic industries to come to Indonesia, said Haris Munandar, the Industry Ministry's director general for research and development.

He noted that there were already seven companies queuing for the tax holiday facility, as they had been waiting for certainty on the policy's revision. The companies were in the industries of machineries, petrochemicals, papers, textiles and others, he said.

"Some of the companies plan an investment that will last for a very, very long time," Haris said in an interview at his Jakarta office. "And they will need fiscal incentives because their business is high-risk, high- technology with low return in the short-term."

The Indonesian government introduced a tax holiday in 2011 to attract investments in strategic sectors with a huge value of minimum capital outlay of Rp 1 trillion (US$74 million) that has high job creation levels. The facility will exempt investors from paying taxes between five and ten years.

However, economists have said that the tax holiday so far has generated more controversies rather than economic successes. Four years after its inception, the facilities were only given to three companies: PT Energi Sejahtera Mas, PT Petrokimia Butadiene Indonesia and PT Unilever Oleochemical Indonesia.

In this period, negotiation broke off between the Indonesian government with Kuwait Petroleum and Saudi Aramco over the tax holiday proposals for their oil refinery projects.

Last year, the Samsung Group also canceled plans to invest in Indonesia after the Finance Ministry rejected its 30-year tax holiday proposal, with the South Korean electronics manufacturing giant opting to build a factory in Vietnam instead.

"There was resistance from officials in the Finance Ministry's taxation office [regarding the tax holiday policy], with some questioning whether the policy had sufficient legal backing," said Haris. "Such resistance appears to have been resolved now."

In the government's new tax holiday proposal, there will be four new industries eligible to apply for the facility: agriculture processing, marine infrastructure, manufacturing industry in special economic zones (KEK) and other strategic infrastructure.

Specifically for the machineries and communications sector, an investment worth at least Rp 500 billion (US$37 million) would be eligible to apply for the tax holiday facility, Finance Minister Bambang Brodjonegoro said recently.

Bambang said that the new tax holiday would exempt investors from tax obligations from between 5 and 15 years, but the Finance Ministry would have a "discretionary" authority to extend it to 20 years if the investment is considered strategic for the domestic economy.

The Industry Ministry would recommend the list of companies interested and eligible for the tax holiday, with the Finance Ministry having the final say on whether the facility could be granted.

"Investors, especially those in mineral-processing and import-substitution industries, have been asking us about this tax holiday policy," said Franky Sibarani, the head of the Investment Coordinating Board (BKPM), which is responsible for processing business permits in the country.

Amid the current economic slowdown, the BKPM targeted to attract Rp 519.5 trillion in investments from both domestic and foreign investors this year, growing 12 percent from last year's realization of Rp 463.1 trillion.

To achieve this objective, President Joko "Jokowi" Widodo has pledged to cut bureaucratic red tape in Indonesia, a country that was ranked 114 among 189 countries in the World Bank's Ease of Doing Business index, and to make the country a more attractive place to invest.

"If we look at how attractive the investment opportunities in other parts of the world are and then consider a policy like this [tax holiday] and it makes Indonesia a more attractive investment opportunity," said Hemant Bakshi, the president director of PT Unilever Indonesia, a sister company of PT Unilever Oleochemical Indonesia that was granted a tax holiday by the government.

However, while the tax holiday facility is expected to draw new investments in targeted areas in Indonesia, it is important for the government to utilize the tax holiday facility "as prudently as possible", Bakshi suggested.

Source: http://www.thejakartapost.com/news/2015/08/04/new-tax-holiday-will-lure-foreign-investors-govt.html

Inflation to stay in check

Jakarta Post - August 3, 2015

Grace D. Amianti, Jakarta – The annual inflation rate is expected to remain under control through to the end of the year despite concerns the long dry season will affect harvests and eventually lead to higher food prices, analysts and officials have said.

The long dry spell across some Asian countries has been attributed to El Niqo, a weather phenomenon that affects temperature and rainfall. It is feared the situation will lead to crop failures and create distortions in the supply and demand of staple foods.

Enny Sri Hartati, an economist with the Institute for Development of Economics and Finance (Indef), says El Niqo could create a small spike in food prices in the next few months, even though weak consumer demand will continue to drag down inflation.

"I think the annual inflation rate will stay on track and indeed, the rate could be under the target because of declining purchasing power. The demand side has a significant influence on inflation despite a decrease in supply," Enny told The Jakarta Post on Sunday.

The national inflation rate rose by 0.54 percent in June, taking year-on- year (yoy) ratinflation to 7.26 percent. This was lower than the 0.67 percent month-to-month and 7.4 percent yoy rates estimated previously by economists surveyed by Bloomberg.

Central Statistics Agency (BPS) head Suryamin said concerted efforts by the government and Bank Indonesia (BI) had helped lower the June inflation rate, which was relatively low compared to the rate during previous Islamic fasting months of Ramadhan, when prices normally rise as a result of the seasonal increase in demand for food and other goods.

BI Governor Agus Martowardojo said the central bank expected July inflation, which will be announced by the BPS Monday, to come in at 7.13 percent yoy with annual inflation predicted to fall within its target range of 3 percent to 5 percent as a result of weak demand.

As the inflation rate eased, Agus signaled that BI could maintain its benchmark rate, which has stayed at 7.5 percent for five straight consecutive months as the central bank was bracing for a potential US Fed rate increase in September.

According to Enny, the inflation rate in July will be higher than June due to the lingering effects of Ramadhan and the Idul Fitri festivities. However, she was convinced that the July inflation rate had yet to be affected by rising food prices caused by the dry season.

BPS deputy chairman for production statistics Adi Lumaksono likewise said El Niqo would have a minimal effect on July's inflation rate as the dry season usually had a time lag before impacting on consumer prices.

Adi said food production, based on historical data, tended to decrease in the second harvesting season between June and August because of the country's dry season, even though its effect on the annual inflation rate was rather small.

"A hike in inflation is usually caused by Ramadhan and the Idul Fitri festivities because demand rises. So, those festivities are likely to affect July's inflation rate rather than the dry season," Adi told the Post.

DBS Bank's research team has said in a research note that potential impacts from the strengthening El Niqo might be one of the components that lifts food prices next year.

"We forecast inflation to be at average 5.7 percent in 2016, but we see risks that it may remain within the 6-6.5 percent range, depending on how severe the current El Niqo phenomenon turns out to be," the DBS economic team said.

President Joko "Jokowi" Widodo has ordered Coordinating Economic Minister Sofyan Djalil to prepare rescue plans for farmers suffering crop failures as a result of the prolonged dry season.

Jokowi also called for market inspections to combat speculators who might attempt to take advantage of price increases through the hoarding of food commodities.

The State Logistics Agency (Bulog) was also instructed to maintain rice stocks at up to 2.5 million tons until October as the government calculated that El Niqo could reduce the rice harvest by up to 300,000 tons nationwide.

Source: http://www.thejakartapost.com/news/2015/08/03/inflation-stay-check.html

Analysis & opinion

Indonesia's economy has stopped emerging

Bloomberg - August 6, 2015

William Pesek – Indonesia has come a long way since Oct. 20, when Joko Widodo was sworn in as president. Unfortunately, the distance the country has traveled has been in the wrong direction.

Expectations were that Widodo, known as Jokowi, would accelerate the reforms of predecessor Susilo Bambang Yudhoyono – upgrading infrastructure, reducing red tape, curbing corruption. Who better to do so than Indonesia's first leader independent of dynastic families and the military?

In 10 years at the helm, Yudhoyono dragged the economy from failed-state candidate to investment-grade growth star. Jokowi's mandate was to take Indonesia to the next level, honing its global competitiveness, creating new jobs, preparing one of the world's youngest workforces to thrive and combating the remnants of the powerful political machine built by Suharto, the dictator deposed in 1998. After 291 days, however, Jokowi seems no match for an Indonesian establishment bent on protecting the status quo.

Growth was just 4.67 percent in the second quarter, the slowest pace in six years. What's more, a recent MasterCard survey detected an "extreme deterioration" in consumer sentiment, which had plummeted to the worst levels in Asia.

Investors are already voting with their feet. The Jakarta Composite Index has fallen 13 percent from its April 7 record high, one of Asia's biggest plunges in that time. And foreign direct investment underwhelmed last quarter, coming in at $7.4 billion, little changed from a year earlier in dollar terms.

Jokowi has plenty of time to turn things around; 1,535 days remain in his five-year term. But the "halo effect" MasterCard's Matthew Driver says Jokowi carried into office is fast fading as Indonesia's 250 million people flirt with buyer's remorse.

First, Jokowi must step up efforts to battle weakening exports. Indonesia's weak government spending, stifling bureaucracy and conflicting regulations would be impediment enough; slowing world growth makes matters much worse. Jokowi must greenlight infrastructure projects to boost competitiveness and increase the number and quality of jobs.

Next, Jokowi must decide what kind of leader he wants to be: a craven populist or the modernizer Indonesia needs. He has too often resorted to nationalistic rhetoric that hearkens to the Indonesian backwater of old – a turnoff for the multinational executives Jakarta should be courting.

Last month, Jokowi raised import tariffs, while asking visiting U.K. Prime Minister David Cameron to do the opposite by cutting U.K. duties for Indonesian goods. Jokowi isn't helping his constituents by driving up prices for goods while their currency is weakening.

"Rather than pursuing interventionist policies the Indonesian government needs to return to the basics: infrastructure, logistics, and consistency of rules and regulations," economists Arianto Patunru and Sjamsu Rahardja wrote in a report for the Lowy Institute for International Policy. That means taking on entrenched interests and thinking bigger. Take Jokowi's industrialization push. Understandably, he wants to support the development of manufacturing to boost exports and cut a persistent current-account deficit. But Jokowi needs to complement that policy with investments in education and training. With more than 26 percent of its population under 15 (versus 17 percent in China), Indonesia must prepare for the information economy of the future, too.

While it's still early for Jokowi, Indonesia is already paying a price for his mismanagement. The rupiah is down 13 percent over the past 12 months – and the Federal Reserve's first post-quantitative-easing rate hike is still looming on the horizon. It's not an accident that economists now include Indonesia among the emerging markets are now due for a lost decade. The problem for countries like Brazil, Russia, China and Indonesia is their governments grew complacent after multi-year investment booms.

"Very few emerging markets historically have ever been able to make it to the developed countries," Morgan Stanley's Ruchir Sharma told Bloomberg News. "This is a return to normalcy."

It's also a moment to question how far the entire Southeast Asia region has come in recent decades. Thailand is fast losing steam as the latest military junta to rule the nation neglects the economy. Malaysia's currency is at 17 year lows as Prime Minister Najib Razak tries to explain $700 million that allegedly made its way into a bank account he controls. And now Indonesia is losing the investment it worked so hard to win back since Suharto's ouster. Jokowi can still turn things around, but he's got a lot of convincing to do – both inside Indonesia and out.

[This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.]

Source: http://www.bloombergview.com/articles/2015-08-06/indonesia-s-economy-has-stopped-emerging

No return to lese-majeste

Jakarta Post Editorial - August 5, 2015

Indonesia made a step forward in its democracy when in 2006 the Constitutional Court annulled clauses in the Criminal Code on defamation of the president and vice president – while many other countries, not only monarchies, have retained the threat of punishment for such lese-majeste crimes.

The court under Jimly Asshiddiqie at the time ruled that such clauses, part of the Criminal Code inherited from Dutch colonial times, violated constitutional freedoms including the right to seek information, apart from breaching equality before the law.

The plaintiff Eggi Sudjana, a lawyer and politician, had, among other reasons, referred to his right under the Anticorruption Law to seek clarification about reports of corruption within the State Palace, for which he was later sentenced to three months' imprisonment for defaming then president Susilo Bambang Yudhoyono, regardless of the plaintiff's victory at the Constitutional Court. The court stated that the clauses were too vague in defining what constituted insulting the president and vice president.

Rulings of the Constitutional Court are final and binding; nevertheless reported statements such as that of Vice President Jusuf Kalla saying it would be "natural" if the government proposed reinserting defamation of the president and vice president into the revised Criminal Code are disturbing. Such discourse should be ancient history.

The Criminal Code and the Information and Electronic Transactions (ITE) Law have provisions for any citizen who feels he or she has been defamed. Many citizens have been found guilty of defamation under the 2008 ITE Law, raising questions about the limits of defining defamation when updating one's status on a social media account carries the risk of six years' imprisonment and a fine of Rp 1 billion (US$74,211).

Public figures assess their risk of becoming direct targets of adulation or taunts before deciding to join the bandwagon of direct accessibility. Former first lady Ani Yudhoyono provided a good example of a public figure engaging with the masses through her Twitter, Facebook and Instagram accounts, barking at comments she found ridiculous, then apologizing and uploading pictures and comments again. No one felt threatened with the axe of lese-majeste when remarking on her account. She came across as merely being human when she was offended, without appearing to seek further redress.

The mere report that the administration of President Joko "Jokowi" Widodo is throwing about ideas of reinserting the crime of defaming the head of state is further damaging to the government's credibility. Even without clauses about defaming the president and the vice president, all citizens including public officials and the President still have recourse to the relevant clauses under the Criminal Code and the ITE Law. The difference would be that the police would not be allowed to arbitrarily arrest citizens who are believed to have intentionally insulted the president or vice president.

It may be normal for countries to step back and forward in their democracies. But citizens would prefer that their leaders refrained from wasting precious time and rather that they focused on their urgent, vast volume of work in hand.

Source: http://www.thejakartapost.com/news/2015/08/05/editorial-no-return-l-se-majest.html

Monitoring the bureaucracy

Jakarta Post Editorial - August 4, 2015

Amid recent criticism, the police, especially the Jakarta Police, deserve credit for their quick move to unveil corrupt practices behind the lengthy dwelling times at Tanjung Priok seaport, which in mid-June triggered President Joko "Jokowi" Widodo's anger.

The Jakarta Police have named five suspects, including former director general of foreign trade Partogi Pangaribuan. To facilitate the investigation Trade Minister Rachmat Gobel has dismissed Partogi and three other officials implicated in the case.

During his surprise visit to the seaport on June 17, the angry President said he would seek his "own way" to settle the inefficient port handling. Only on Sunday and after a series of actions by the Jakarta Police that included a search of the Trade Ministry's office was the President's plan made public. Jokowi admitted on Sunday to having instructed the police to intervene after he found that his subordinates' efforts to cope with the long-standing problem were ineffective.

Jokowi is not the only one who has lost patience with the dwelling times, or the length of time that cargo sits in a terminal's in-transit storage area, which averages 5.5 days and has been blamed for the high logistics costs in the country, the highest in the ASEAN region.

Of course, as Jokowi stated, the public, including local business players, has to bear the costs of the inefficiency by paying more for the goods they purchase. The high logistics costs have also rendered investment in the country less attractive.

The Jakarta Police's special taskforce set up to investigate the case revealed that paying backhanders to officials at the Directorate General of Foreign Trade was a common practice when importers sought a speedy issuance of import permit letters. One investigator alleged that importers used to go directly to Partogi or his staff depending on how close they were to the senior official.

The first lesson learned from the police's findings so far is of course the fact that bureaucratic reform remains a work in progress before we can realize the clean and efficient governance that we have been yearning for since the start of the reformasi movement in 1998. The ongoing investigation is a strong indication that red tape and, hence, corruption, still characterizes our bureaucracy, regardless of the remuneration program intended to keep civil servants from accepting bribes.

As seaport handling is just part and parcel of Indonesia's large-scale bureaucracy, the investigation should therefore be followed up with reinvigorating the role of inspectorate generals as part of the internal supervision mechanism. The Jakarta Police's move can serve as shock therapy, but the functioning of the bureaucracy partly depends on an effective oversight mechanism from within.

Unfortunately, the problem of internal supervision in the bureaucracy lies in the absence of independence, rather than integrity, on the part of the inspectors. In the hierarchy of our bureaucracy the inspector general falls under the head of an institution, which enables the latter to order the former to drop or halt an investigation.

Source: http://www.thejakartapost.com/news/2015/08/04/editorial-monitoring-bureaucracy.html


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