INFID, August 03, 2006
INFID's Short News Overview No. VII/15: July 15-August 3, 2006
Debt & Poverty
Indonesia, Germany sign 12.5 mln euro debt swap
Indonesia and Germany have signed a third debt swap deal worth 12.5 mln eur and a
10 mln eur new loan/grant agreement, officials said. A statement released by German
Embassy here said the debt swap agreement is just one component of the third debt
swap deal. Another component, focusing on nature park management for the same
amount, is still being prepared.
Under the deal, Indonesia will have to spend approximately 60 bln rupiah to establish
a revolving fund for investment in environmentally-friendly technology. Selected
national banks will administer the fund and channel it into micro and small
enterprises, especially those facing difficulties in obtaining bank loans. In return,
German government will cancel outstanding debts amounting to twice the sum spent
by Indonesian government.
In total, Germany will cancel debts totalling 93.5 mln eur as it has recently announced
a fourth debt swap to support reconstruction efforts following the May 27 earthquake
in Yogyakarta and Central Java.
The statement also said that the new 10 mln eur loan/grant comprises of a 40-year
loan worth 9 mln eur to improve medical services for the poor at Dr Wahidin Hospital
in Makassar, South Sulawesi and a one mln eur grant earmarked for consultancy and
training.
Separately, the Ministry of Finance's Treasury Director Mulia Nasution said the new
loan carries an interest rate of 0.75 pct and will a have 10-year grace period.
Related article:
Minister protests conditions set by creditors for debt swaps:
http://www.infid.be/debt_swap_protest.htm.
Source: AN 3/8
Indonesia no longer facing economic crisis: Vice President
Indonesia is no longer hit by economic crisis because per capita income has reached
US$1,500, Vice President Jusuf [Moron] Kalla said on July 31.
"The economic crisis has actually ended," [Moron] Kalla said in a response to a
speech deliverd by chairman of the Nation Awakening Party (PKB) Muhaimin Iskandar
in the party's national meeting.
The vice president further said Indonesia's per capita income had reached US$1,000
before the crisis hit the country in 1998 and dropped drastically to US$700 during the
crisis.
"The country's per capita income has reached US$1,525. If its per capita income still
stands at US$700, it's correct the crisis still exists but in fact it is not," he said.
After President Susilo Bambang Yudhoyono took office on October 20, 2004, he
moved quickly to implement a "pro-growth, pro-poor, pro-employment" economic
program. He also announced an ambitious anti-corruption plan December 2004.
The State Ministry of National Development Planning (BAPPENAS) released in early
2005 a Medium Term Plan focusing on four broad objectives: creating a safe and
peaceful Indonesia, creating a just and democratic Indonesia, creating a prosperous
Indonesia, and establishing a stable macroeconomic framework for development.
President Yudhoyono and his team have targeted average growth of 6.6 per cent from
2004-2009 to reduce unemployment and poverty significantly. Indonesia's overall
macroeconomic picture is stable and improving, although GDP growth rates have not
yet returned to pre-crisis levels. Indonesia's 4th quarter 2004 GDP growth was 6.1 per
cent, its highest level since the 1997-98 financial crisis, and full year growth in 2004
was 5.1 per cent.
Related article:
Evolution of a Social Welfare System in Indonesia?:
http://www.infid.be/social_welfare_evolution.htm.
Source: AA 31/07
Asian Development Bank supports natural gas project in Indonesia
The Asian Development Bank (ADB) said on Aug. 2 it has approved a
350-million-dollar loan to help develop a major natural gas project in Indonesia. The
Manila-based bank said the multi-billion-dollar Tangguh Liquefied Natural Gas Project
in Irian Jaya Barat province is its first private sector loan in Indonesia's oil and gas
sector. The project will develop, build and operate gas production wells, platforms and
a liquefied natural gas facility to export gas initially to China, South Korea and the
west coast of North America.
Robert Bestani, director general of ADB's private sector department, said the project
encourages the use of clean energy around the region by providing environmentally
benign liquefied natural gas.
"At the same time, it will increase revenue flows to the national, provincial and local
governments," he added. "These funds can accelerate social and economic
development and reduce poverty."
The bank said the project is being developed by the London-based energy firm BP,
which has a significant equity interest in the project. Additional financing would come
from various international investors and banks, including the Japan Bank for
International Cooperation, DPA reported.
"The project is important for Indonesia in its energy development and export efforts,
and it will help Indonesia maintain its position globally as a key liquefied natural gas
export centre," the ADB said.
Source: AN 2/8
General News
Witness Protection Law Passed
Legislators passed a landmark law on July 18 that affords protection to witnesses and
victims of crime during the legal process, but victims' rights advocates complain its
measures are inadequate.
The law, which has been in the pipeline for six years, for the first time allows for the
establishment of an agency to ensure protection of witnesses and victims.
The Witness and Victims Protection Agency (LPSK) is mandated to provide
protection not only to them, but also their relatives if their physical well-being is in
danger. The LPSK will also ensure victims are informed of their rights and receive
appropriate assistance. Among the guaranteed rights for members of the program are
freedom to choose the type of assistance and security protection, including to
assume a new identity and safe location, and right to an interpreter.
The law has been praised in some quarters for broadening the definition of witness
and victims to include those in cases of terrorism, gross violations of human rights,
money laundering, drug crimes and human trafficking and gender-based violence. But
several non-governmental organizations argue that law only gives "half-hearted"
protection.
The Coalition for Witness Protection criticized the new law as merely a carbon copy
of the prevailing KUHAP.
"As a result, the lawmakers failed to include whistle-blowers in the definition of
witness," said the coalition, consisting among others of Indonesian Corruption Watch,
the National Commission on Violence Against Women and the Jakarta Legal Aid
Institute (LBH Jakarta).
Network for Pro-women legislation also criticized a stipulation in the new law which
said that medical assistance and psychological rehabilitation would only be given to
victims of human rights abuse.
"Victims in other cases, especially domestic violence, also need such assistance,"
the network said.
Read more: http://www.infid.be/witness_protection_law.htm.
Related article:
Protecting the Witnesses: http://www.infid.be/protecting_witnesses.htm.
Source: JP 19/7
Lawmakers decry newfound freedom of the press
Lawmakers made a plea on July 19 for the Press Council to rein in the media, which
they said had gone too far in criticizing the House of Representatives.
Apparently dismayed by media reports highlighting political bickering, scandals and
absenteeism, scores of legislators on Commission I on foreign affairs, military and the
press accused news outlets of trying to belittle their contributions to democracy.
"We have produced hundreds of laws that have practically changed the face of this
nation. Yet, the press seems to forget that and only focus on our ills," lawmaker
Sidarto Danusubroto of the Indonesian Democratic Party of Struggle (PDI-P) told a
hearing with the Press Council. He said the media's actions were part of a plan to
return to an authoritarian form of government by making the legislative body look
incompetent.
"Can't the Press Council do something about this?" Sidarto asked.
A similar accusation was made by Yusron Ihza Mahendra, a lawmaker from the
Crescent Star Party (PBB).
"We have performed better than the legislature of the New Order regime, but the press
keeps making slanderous comments about House members, even in respected media
outlets that have the largest circulation in the country," said Yusron, who was a
correspondent for Kompas daily in Tokyo for seven years.
Permadi, another PDI-P legislator, said the thousands of journalists who covered the
House in fact hindered members from performing their duties.
Press Council chairman Ichlasul Amal said the council cannot tell the press what to
report.
"The Press Council has no authority to make regulations, and the press follows only
the journalistic code of ethics," he said.
Press Council member Sabam Leo Batubara said some coverage of House politics is
driven by legislators themselves.
"After all, I know there are dozens of journalists who are on House members' payrolls
and have been used to further their political interests," Sabam said.
House related articles:
House slammed for poor performance: http://www.infid.be/house_slammed.htm.
Cleaning Up the House: http://www.infid.be/clean_up_house.htm.
House should kick out more lawmakers, say activists:
http://www.infid.be/kickout_more_lawmakers.htm.
Source: JP 20/7
Editor to go on trial over publishing cartoon of Muhammad
An Indonesian newspaper editor will stand trial on charges of offending Islam for
publishing a cartoon of the Prophet Muhammad last year, his lawyer said on July 21.
Teguh Santosa, chief editor of Rakyat Merdeka's online edition, said he published the
cartoon to illustrate a story on the controversy surrounding the drawings, which first
appeared ina Danish newspaper. He took the image off the Web site in less than a
day after people complained.
"We just wanted to let people know about the cartoons, which were being strongly
protested at that time," Teguh told The Associated Press. "I believe I am innocent and
ready to face trial."
Teguh has been formally charged and will face trial within the next three weeks, his
lawyer Syahroni said. He faces a maximum penalty of five years imprisonment if found
guilty, said Syahroni.
Related article:
Indonesia detains online news editor over prophet drawings:
http://www.infid.be/cpj_condemn.htm.
Source: AP 21/7
Muslims lash out at Playboy Indonesia's third edition
Indonesian Muslim leaders strongly protested the third edition of the Indonesia
Playboy magazine, urging the police to take stern action against the editors of the
U.S.-based publication, local media reports said on July 17.
The July edition hit newsstands late last week, with its cover featuring a woman
wearing black underpant and grey jacket without wearing a bra. Muslim hardliners
described the magazine as more vulgar than the two previous editions.
"We asked the new Jakarta city police chief to continue prohibit circulation of Playboy
magazine in the capital," a noted Muslim leader M Al-Kaththath told Republika, a
Muslim-oriented Indonesian daily.
Deputy House Speaker Zaenal Ma'arif from the Muslim-based Star Reform Party
urged the police to take strict measures against the magazine, saying that Playboy
Indonesia was "insulting and hurting the feeling among Muslims."
"The police must take a stern action and immediately shut down the Playboy's office,"
Ma'arif was quoted as saying by Detik.com online news portal.
Hidayat Nurwahid from the Prosperous Justice Party and chairman of the People's
Consultative Assembly, accused Playboy Indonesia of violating the country's criminal
laws. While others say the magazine had "intentionally provoked Muslim followers."
Indonesian police have formally named Erwin Armada, Playboy's editor in chief in
Indonesia, and Kartika Gunawan, who posed in lingerie for the first edition, suspects
for violating anti-indecency laws that carry sentences of up to two years and eight
months in prison.
Related articles:
Don't judge a magazine by its cover: http://www.infid.be/magazine_by_cover.htm.
'Playboy's' prosecution setting a bad precedent:
http://www.infid.be/playboy_bad_precedent.htm.
Source: DPA 17/7
Government not taking disasters seriously: NGOs
Non-governmental organizations slammed the government on July 20 for what they
said was a lack of seriousness in handling the procession of disasters the country
has experienced.
This has resulted in a failure to protect citizens, they charged.
"The fact that the government did not speed up the deliberation of the disaster
management bill and has yet to carry out comprehensive mapping of disaster-prone
areas shows that it is not serious about managing the calamities that can occur at
any moment across the archipelago," Indonesian Forum for Environment (Walhi)
executive director Chalid Muhammad said.
Chalid said the government should have taken strategic and concrete steps to protect
its citizens after a tsunami ravaged Aceh and Nias in 2004. Besides failing to map
disaster-prone areas, the activists said, the government has not disseminated
information about the threats these areas face, and has not strengthened the capacity
of people and institutions to deal with emergencies. The inadequate response has
increased the risks for Indonesians, who could face 60 or more disasters this year
alone, Chalid said. He added that the costs would be counted in thousands of deaths
and displacements, and billions of rupiah in losses.
On July 18, the government said it was running out of money for disaster-related
emergency response, with less than Rp 100 billion left out of the Rp 500 billion set
aside for the whole year.
Read more: http://www.infid.be/govt_not_serious.htm.
Disaster related articles:
Muckraking in Java's Gas Fields: http://www.infid.be/muckraking.htm.
Tsunami Hits Indonesia's Java: http://www.infid.be/tsunami_java.htm.
In Indonesia, yet another catastrophe strikes:
http://www.infid.be/catastrophe_strikes.htm.
Tsunami Rumors Spark Panic In Indonesia's Java:
http://www.infid.be/tsunami_rumors.htm.
Another Tsunami, and Again, No Official Warnings:
http://www.infid.be/tsunami_warning.htm.
Minister Admits Tsunami Warning Came Too Late:
http://www.infid.be/tsunami_minister_admits.htm.
Indonesia Pays Dearly for Tsunami Folly:
http://www.infid.be/pay_dearly_tsunami.htm.
Indian Ocean tsunami warning system slowed by politics, technical problems:
http://www.infid.be/tsunami_warning_slowed.htm.
Source: JP 21/7
Govt needs to provide incentives to promote Corporate Social Responsibility
(CSR)
The government should provide incentives to encourage companies to implement
Corporate Social Responsibility (CSR) programs as part of their day-to-day business
activities.
Noke Kiroyan, the chairman of Indonesian Business Link (IBL), a Jakarta-based CSR
advocacy agency, said without incentives such as tax deductions, it would be difficult
to promote CSR in the country.
"The government as a facilitator and regulator could give tax incentives to companies
that seriously implement CSR principles in their business activities," said Noke, who
is also a senior executive of Newmont Pacific Nusantara. He said local companies'
awareness of the need to implement CSR would increase if they were given tax
breaks and suggested the government include such incentives in the tax bill now
being deliberated by the House of Representatives. Noke made the comments while
announcing IBL's plan to hold a two-day conference on CSR in September.
IBL executive director Yanti Koestoer said companies would receive social and
commercial benefits from CSR programs. CSR programs improved relations with
government agencies and increased NGO and community groups trust in business.
This would lead to higher productivity, reduced security risks, improved customer and
employee loyalty and a better corporate reputation and a good brand image, she
added.
Yanti said the conference with the theme "Responsible Business is Good Business"
would be held at the Ritz-Carlton Hotel, Jakarta, on Sept. 7 and 8. Scheduled to be
officially opened by President Susilo Bambang Yudhoyono, it will feature speakers
from the private sector and government including Budiono, the coordinating minister
for the economy and Aburizal Bakrie, the coordinating minister for social welfare.
Business related articles:
Mohamad Sobary: Wealth & social responsibility:
http://www.infid.be/sobary_responsibility.htm.
Politics and Business Mix in Indonesia: http://www.infid.be/politic_business.htm.
What next after new economic policy package:
http://www.infid.be/what_next_package.htm.
Source: JP 22/7
Campaign starts against 'envelope journalism'
Journalists and antigraft activists are taking steps to end the practice of "envelope
journalism", an institutionalized payoff system for reporters.
Officials and businesspeople often offer gifts, money or the use of facilities to
journalists for their reports. Unscrupulous reporters are locally known as wartawan
amplop (envelope journalists).
"The envelope tradition, which is widespread among the news media, could reduce
their credibility and that of their journalists," said Heru Hendratmoko, who chairs the
Alliance of Independent Journalists (AJI), at the launch of the antibribery campaign on
July 22 at the Century Park Hotel in South Jakarta.
"Without credibility, the news media will not be able to play its role as a pillar of
democracy."
Vice President Jusuf [Moron] Kalla said on July 21 he fully supported the campaign
spearheaded by the AJI and would order all government officials to stop giving
journalists money.
Present at the launch were editors and leaders of anticorruption bodies, including Eko
Tjiptiadi from the Corruption Eradication Commission (KPK) and Yunus Husein from
the Financial Transaction Reports Analysis Center (PPATK). Faisal Basri from the
Business Competition Supervisory Commission (KPPU) and Todung Mulya Lubis from
Transparency International (TI) Indonesia were also in attendance. They all put their
weight behind the campaign to fight the "envelope culture" in the media.
Read more: http://www.infid.be/envelope_journalism.htm.
Source: JP 23/7
President asked to drop 'policy-error' decree
More public figures are adding their voices to the chorus of opposition against a
planned government decree that would protect officials from prosecution for
"erroneous" policies. The decree would diminish government control of the public
sector and hamper efforts to ensure good and clean governance in Indonesia, which is
ranked among the world's most corrupt countries, critics say.
"We don't need a ruling that would prevent us from creating a good and clean
government ... one of the main goals of the current regime," People's Consultative
Assembly Speaker Hidayat Nur Wahid said. Hidayat said he would personally ask
President Susilo Bambang Yudhoyono to drop the decree.
Kalla initiated the drafting of the regulation early this year with Home Minister M.
Ma'ruf. Internal mechanisms in government agencies could deal with alleged
corruption cases without necessarily having to involve the police, prosecutors and the
courts, Kalla said. Ma'ruf said last month the decree was necessary because many
regional officials were not doing their jobs over fears they would be prosecuted for
policy mistakes. These worries have led to over-cautious spending and some
development project delays, he said. The central bank has reported that regencies
and municipalities spent only an average of 20 percent of their total budgets last year.
Read more: http://www.infid.be/drop_policy_error.htm.
Source: JP 24/7
Government slammed over palm oil fund
Environmental groups are criticizing the government for setting aside funds to counter
a public relations campaign against its extensive palm oil plantation projects. They
said the money would be better spent on efforts to overhaul the country's oil palm
industry, such as increasing the quality of the product rather than its quantity, and
promoting the use of better seedlings rather than expanded planting to increase
output.
"It (the improved system) should include establishing proper spatial planning, halting
the conversion of forests, and ensuring the rights of local people to sustainable
livelihoods," said Sawit Watch deputy director Abet Nego Tarigan.
Last month, Indonesia and Malaysia agreed to allocate 500,000 euro (US$639,7) to
counter campaigns launched by non-governmental organizations against the
expansion of palm oil plantations in the two countries. The deal was signed in Medan,
North Sumatra, by Indonesian Agriculture Minister Anton Apriyanto and Malaysian
Plantation Industries and Commodities Minister Peter Chin Fah Kui. Both ministers
said the move was prompted by what they called the unfounded accusations of local
and foreign NGOs, who argue palm oil plantations have damaged the environment and
contributed to the destruction of the two countries' remaining natural forests.
Indonesia and Malaysia now account for 84 percent of the world's crude palm oil
production and 88 percent of global exports.
According to the Indonesian Palm Oil Producers Association, Indonesia makes 15
million tons of crude palm oil and two million tons of palm kernel oil annually, making
it the world's biggest palm oil producer.
The palm oil industry contributed over US$6 billion to Indonesia's economy last year.
It employed from 1.5 to two million people, working for more than 200 companies on
more than five million hectares of land across the archipelago.
The government plans to open three million more hectares to palm oil farming by
2009.
Environmentalists have strongly opposed the expansion of palm oil plantations, saying
the slash-and-burn method used to clear the land would trigger massive forest fires
that could send hazardous haze to parts of Indonesia and neighboring countries.
Read more: http://www.infid.be/palm_oil_fund.htm.
Source: JP 3/8
Aceh
BRR surprised by import powers
The Aceh-Nias Rehabilitation and Reconstruction Agency (BRR) has promised to use
the power it has been given by the government to import heavy machinery only to
procure items necessary for reconstruction work.
BRR secretary-general Teuku Kamaruzzaman said that though the license from the
government allowed the agency to import 190 different items, including nuclear
reactors, helicopters, tanks, yachts and heavy machinery, the agency would only use
the license to purchase goods necessary to speed up the sluggish reconstruction
work in Aceh and Nias.
"To tell you the truth, we were surprised by the government's decision to give us such
privileges. But we will only use it for the procurement of items such as ambulances,
rice mills and bulldozers," Kamaruzzaman said.
The Trade Ministry and the Industry Ministry recently issued a joint decree allowing
the BRR to import heavy machinery to help the agency speed up reconstruction work
in the tsunami-struck province. Among the machinery the BRR is allowed to import
through a third party are nuclear reactors, locomotives, trucks, helicopters, cranes
and tanks. The machinery, however, must be second-hand, and any imports require
the approval of the two ministries and a written recommendation from the BRR.
Separately, the secretary-general of the Defense Ministry, Lt. Gen. Sjafrie
Sjamsoeddin, criticized the government's decision to grant the BRR so much power in
importing heavy machinery. In particular, he said the agency should have no authority
in the import of war machines.
Aceh (reconstruction)-related articles:
Aid Groups Are Criticized Over Tsunami Reconstruction:
http://www.infid.be/aid_groups_criticized.htm
Women, the poor singled out by Aceh sharia enforcers: ICG:
http://www.infid.be/aceh_singled_out.htm.
In Aceh, a year of peace but ex-rebels fear for future:
http://www.infid.be/aceh_year_peace.htm.
Source: JP 1/8
Papua
Two defendants get 15 years for clash
The Jayapura District Court on Aug. 3 sentenced two defendants to 15 years in jail
each for their involvement in a deadly clash with police on March 16 in Abepura,
Papua.
Sixteen people have now been convicted over the clash, with seven more still waiting
to hear their verdicts. The violence took place in front of Cendrawasih University,
during a protest against giant mining company PT Freeport Indonesia.
Four police officers and a member of the Air Force died when they were attacked by
protesters, who were demanding the government close down the Freeport mine
because of environmental concerns and mine's failure to improve the welfare of
Papuans.
The two defendants sentenced on Aug. 3 -- Fredinandus Pakage and Luis Gedi --
were found guilty of violating Article 214 of the Criminal Code, on ignoring police
orders and committing violence against police officers resulting in death.
Papua related articles:
Papuan Trials Open Despite Protest: http://www.infid.be/papuan_trials_open.htm.
Papuans continue protesting trial: http://www.infid.be/papuan_protesting_trial.htm.
TAPOL letter to SBY on police violations in West Papua:
http://www.infid.be/papua_tapol_selvi.htm.
Papua Responds to Sound of Forests Falling:
http://www.infid.be/papua_responds_forest.htm.
'To end illegal logging, we should improve our trade policy':
http://www.infid.be/logging_trade.htm.
Source: JP 3/8
Governor against Papua split
Papua province has a new governor but the appointment has been overshadowed by a
row over Jakarta's decision to split the province in two.
Barnabas Suebu was inaugurated by Indonesian Home Minister Muhammad Maaruf at
a ceremony in Jayapura on July 24.
His previous experience as governor of Papua and as Indonesian ambassador to
Mexico enabled him to narrowly defeat two other Papuan candidates in March
elections.
Court challenges delayed his inauguration. On July 23, the same official party from
Java attended a similar ceremony in Manokwari for Octavianus Atururi, the new
governor of the separate province called West Irian Jaya.
Governor Suebu already has stated his disapproval of Papua being divided.
Related articles:
Civil servants rally over Papua election dispute:
http://www.infid.be/papua_civil_servants.htm.
President agrees on evaluation of Papua special autonomy law:
http://www.infid.be/eval_spec_law.htm.
Source: CM 26/7
Abbreviations
AA Asia Pulse/Antara
AFP Agence France-Presse
AN Antara News
AP Associated Press
DPA Deutsche Presse Agenteur
JP The Jakarta Post
CM The Courier Mail
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