INFID, August 17, 2006
INFID's Short News Overview No. VII/17: August 11-17, 2006
Debt & Poverty
World Bank halts Indonesia loans
The World Bank has cancelled three loans for infrastructure projects after it exposed
corrupt practices and is reportedly demanding millions of dollars in refunds.
Agreements for loans totalling $US1.5 million yet to be disbursed were abandoned
over alleged bribery in the hiring of consultants, the World Bank says in a letter to
Finance Minister Sri Mulyani. The bank has found evidence supporting allegations of
bribes and the making of other illicit payments in respect of three consulting contracts
entered into by the Indonesian government, it reportedly says in the letter. The loans
were made through the Public Works Ministry with consultants WSP International. No
details were given about the consulting company. The Indonesian government signed
two of the agreements for a regional transport project in eastern Indonesia in 2002,
and another for a separate roads infrastructure project in 2003 and 2004. The bank
has also requested refunds worth about $US4.6 million that has already been
disbursed through the agreements. The World Bank has yet to respond to the report.
Public Works Minister Djoko Kirmanto rejects the accusation of the World Bank.
According to Djoko, the tender process of the two projects was in line with procedures
and the appointment of the winners was previously approved by the World Bank. He
stressed that this financial institution cannot abruptly cancel loans only based on
suspicions and the World Bank has not provided any evidence for the findings
Related articles:
WB cancels two infrastructure projects on graft allegations:
http://www.infid.be/wb_cancels_projects.htm.
Public Works Minister Rejects World Bank's Accusation:
http://www.infid.be/wb_minister_rejects.htm.
Indonesia Told to Return US$4.7m After Probe:
http://www.infid.be/wb_return_graft.htm.
Sources: SAT 14/8, TI 16/8
Indonesia Natural Gas Pipeline Project Gets US$75M ADB Loan
The Asian Development Bank said on Aug 10 it will provide Indonesia a US$75 million
loan to aid the construction of a natural gas pipeline from South Sumatra province to
West Java province.
"The ADB will also support loans of up to $125 million to PT Perusahaan Gas Negara
(PGAS.JK) provided by other international financial institutions and commercial
banks," an ADB statement said, without elaborating.
The planned 661-kilometer pipeline is one of two that state-owned Perusahaan Gas
Negara is building to alleviate a natural gas shortage in West Java province, said the
statement, without elaborating on the timetable for its construction.
The ADB is part of a consortium led by BP PLC (BP) that signed an agreement earlier
this month with international lenders including Japan Bank for International
Cooperation, BNP Paribas S.A. (13110.FR) and Standard Chartered (STAN.LN) for
15-year loans totaling $2.61 billion for the Tangguh liquefied natural gas facility.
The ADB loans reflect the multilateral lender's mandate to support Indonesia's
economic growth through the development of environmentally friendly energy projects.
ADB on MDG in Asia: http://www.infid.be/mdg_asia_may_miss.htm.
Source: DJ 10/8
Civilian Supremacy
RI military in urgent need of reform
The United States Congress recently passed a contentious bill that allocates over
US$6 million to Indonesia for military equipment and training in 2007. Two checks will
be issued: $4.5 million under Congress' Foreign Military Financing program and $1.28
million under Congress' International Military Education and Training program. While
these figures fall $2 million below the Bush Administration's request, they represent a
multi-million dollar increase over 2006 totals.
The bill, passed by the U.S. House in June, sparked immediate controversy. Decried
as one of the world's most egregious militaries, Indonesian troops have a reputation
for being abusive, corrupt and largely above the law. With such a funding increase
from Washington, one expects to hear of significant improvements in Indonesia
military's ethical standards and practices. But that is far from the case.
Read more: http://www.infid.be/military_urgent_reform.htm.
Related article:
Two faces of the TNI -- Sidoarjo and Koesmayadi:
http://www.infid.be/military_two_faces.htm.
Making sense from the Koesmayadi arms probe:
http://www.infid.be/arms_probe_koesmayadi.htm.
Source: JP 14/8
General News
Media body concerned by attacks on Indonesian journalists
The International Federation of Journalists expressed concern on Aug 16 about
violence against journalists in Indonesia, calling on the government to do more to
prevent attacks. According to data from the Indonesian Alliance of Independent
Journalists, 64 attacks against journalists in the country were recorded in the past
year, the IFJ said in a statement.
"It is vital that these records are noted and action is taken to ensure these assaults
on press freedom no longer continue and those responsible for these cowardly
attacks are held accountable," IFJ president Christopher Warren said.
Since August 2005 one Indonesian journalist has been murdered, one abducted, one
imprisoned and 34 assaulted, according to data from the alliance. Twelve journalists
were intimidated and seven faced lawsuits.
The most dangerous places were Jakarta, East Java and Aceh, where there were 13,
eight and eight cases of violence against journalists respectively. There were 23
cases of mob assaults, while government officials were responsible for 14 acts of
violence and police for eight, the alliance figures showed.
"It is deeply concerning that violence is going unchecked. The Indonesian government
must do more to make it clear that attacks on journalists are an anathema to
democracy," Warren added.
IFJ Statement: http://www.infid.be/ifj_concerned.htm.
Source: AFP 16/8
No end in sight to Sidoardjo mudflow
Hot mud that has been flowing from a gas well in Sidoarjo, East Java, since May 29
breached a dam on Aug 10, forcing thousands of more people from their homes. Later
in the day Vice President Jusuf Kalla led an emergency meeting to discuss the
continuing environmental and human disaster.
The dam, which was built to contain the mud and keep it from nearby villages, was
breached for a second time at around 9 a.m. This comes days after the local turnpike
operator declared the toll road linking East Java towns to the provincial capital
Surabaya had to be closed for a third time because of the mud. The operator said the
turnpike would be closed indefinitely. Some 20 train departures were canceled and
two main roads were blocked as residents used all manner of vehicles, including
tractors and bulldozers, to flee villages in Porong district.
An estimated 12,000 people have now been forced from their homes by the mudflow.
The company that drilled the well for its gas operations, Lapindo Brantas Inc.,
continues to publish advertorials in newspapers claiming it is doing all it can to stem
the flow of mud. State Minister for the Environment Rachmat Witoelar earlier said the
government planned to build a larger dam to contain the mud. A report by the State
Ministry for the Environment says many of the elements contained in the mud are
highly toxic and hazardous.
An executive and a number of employees of Lapindo have been detained by police on
charges of violating environmental laws. The firm is partly owned by the family of
Coordinating Minister for the People's Welfare Aburizal Bakrie.
To date, the mud has covered some 210 hectares of land in Sidoarjo.
Related articles:
As mud flows in Sidoarjo, residents ask what next:
http://www.infid.be/mudflow_what_next.htm.
Mud may force Sidoarjo residents out for good: http://www.infid.be/mud_for_good.htm.
Disasters in Waiting: http://www.infid.be/disaster_in_waiting.htm.
Source: JP 11/8
Criminal Code bill finalized
The 25-year-old draft revision of the Criminal Code has been finalized and will soon be
submitted to the House of Representatives for deliberation despite some contentious
passages, an official said on Aug 10.
Muladi, who chairs a government team to draft the bill, said he had submitted it to
Justice and Human Rights Minister Hamid Awaluddin for signing by President Susilo
Bambang Yudhoyono. He said the draft retained passages criminalizing the
establishment of a communist organization and the espousal of similarly leftist ideas.
"This country has had a traumatic experience with communism," he said, citing the
fact that France still criminalizes the promotion of Nazism, while Germany bans the
establishment of Nazi-oriented organizations.
The draft also retains articles banning the defamation of the president. These were
often used by the Soeharto regime to jail the dictator's critics, as well as
pro-democracy activists.
"All countries apply such a law," Muladi said. "We will keep it with some
adjustments."
Related article:
Experts point to holes in Criminal Code draft:
http://www.infid.be/criminal_code_holes.htm.
Source: JP 11/8
Indonesia delays execution of death row Christians
Indonesian authorities have delayed the imminent execution of three Christians found
guilty in 2001 of violence against Muslims for at least six days, the national police
chief said.
"I have received reports from the Central Sulawesi police chief and results from an
agreement reached by the police administration and local officials there, that it is now
planned after August 17," Sutanto said.
Fabianus Tibo, Dominggus da Silva and Marianus Riwu had been due to face a firing
squad at 12:15 am on Aug 12 local time.
The last-minute reprieve for three Indonesian Christians on death row has been
welcomed by activists and relatives.
Amnesty International, along with other critics of the Poso case, have said the men's
original trial was unfair. Angry Muslim mobs besieged the court during their trial and
there were reports of intimidation of judges and their legal team. Amnesty hailed the
decision by the government and urged it "to immediately transform this act of
clemency into the commutation of their death sentences," it said in an e-mail to AFP.
The reprieve was granted after Pope Benedict XVI dispatched on Aug 11 a request for
clemency to Indonesian President Susilo Bambang Yudhoyono, though government
officials denied there was a connection.
Unimpressed by the decision to stay the execution, church leaders are continuing to
demand the abolition of the country's capital punishment system.
In their letter to President Susilo Bambang Yudhoyono, Indonesian Bishops
Conference (KWI) leaders said Indonesia had ratified an international convention on
civil and political rights, which required the acknowledgement and respect of citizens'
right to live.
"We appeal to the government ... to abolish capital punishment for good," KWI said in
a letter signed by chairman Julius Kardinal Darmaatmadja SJ and secretary-general
Arch Bishop I. Suharyo Pr.
The stay of the Christians' execution angered many Muslims in Poso. Cleric Adnan
Arsal, who chairs the Poso Muslims Fighting and Family Forum, told The Jakarta
Post on Aug 12 that if the convicts were not executed, Muslims in Poso and Tojo
Una-Una would stage a massive rally.
"We'll see what happens after the Independence Day celebrations. If the execution
doesn't take place as promised it will insult the Muslim victims," Adnan said.
But the delay brought some relief to Christians groups in Palu. Priest Jimmy
Timbelaka said it would allow police to investigate the 16 people who lawyers claimed
were the real masterminds of the conflict.
Related articles:
No more death penalty: Bishops: http://www.infid.be/no_more_death_penalty.htm.
Catholics' execution a 'pay-off' for Bali: http://www.infid.be/poso_payoff_bali.htm.
Delayed execution stirs controversy:
http://www.infid.be/poso_execution_delayed.htm.
Activists gear up for fight to save Indonesian death row Christians:
http://www.infid.be/poso_activists_gear_up.htm.
Indonesia readies for Christian executions:
http://www.infid.be/poso_ready_execution.htm.
Pope Appeals for Clemency in Indonesia:
http://www.infid.be/poso_pope_appeals.htm.
Thousands Protest Poso Executions: http://www.infid.be/poso_thousands.htm.
Factbox-Indonesian capital punishment:
http://www.infid.be/factbox_capital_punishment.htm.
Sources: AFP 12/8, JP 13/8
Human rights commission wants Ahmadiyah protected
The National Commission on Human Rights has asked the government to guarantee
the security of Ahmadiyah followers to ensure members of the religious sect can live
in peace and worship freely. Commissioner for individual freedoms Chandra Setiawan
said in Mataram on Aug 11 the government should abide by a 2005 law ratifying the
International Convention on Civilian and Political Rights.
"In order to provide security assurance for Ahmadiyah members in Indonesia, we have
written to the President (Susilo Bambang Yudhoyono) and the National Police chief
(Sutanto). The letter is intended to ensure that Ahmadiyah members can perform their
daily rituals again and that their children can go to school," Chandra said.
Chandra said after ratifying the international convention into law, the government was
obliged to protect people's freedom to worship. He said the groups that drove
Ahmadiyah members out of their hometowns in Ketapang hamlet in West Lombok
and Praya in Central Lombok, had violated sect members' human rights.
The Ahmadiyah faith developed out of Islam in India in the late 19th Century. Its
members believe that the prophet Mizra Ghulam Ahmad is God's last messenger after
Muhammad.
Groups in Indonesia have been the subject of attacks by Muslim groups after the
Indonesian Council of Ulema (MUI) outlawed the faith in a fatwa earlier this year.
Read more: http://www.infid.be/hr_ahmadiyah.htm.
Related articles:
Goodbye Pluralism: http://www.infid.be/goodbye_pluralism.htm.
Religious leaders call for promotion of tolerance:
http://www.infid.be/call_for_tolerance.htm.
Source: JP 12/8
Aceh
Shariah not welcomed: GAM; Vast majority back Shariah: Poll
The First Minister of Aceh Freedom Movement (GAM) Malik Mahmud Al Haytar has
declared that the introduction of Syariat Islam in Aceh is not welcomed by the
Acehnese.
"What we want is a peace and pluralism for the Acehnese,' Malik told journalists, after
speaking at an international conference to mark the first anniversary of the Aceh
peace agreement at Hotel Shangri-la Jakarta, on Aug 14.
He said that GAM's struggle was not based on religious principles and this is still the
position today. GAM has nothing to do with things that have been happening in Aceh
recently. "It think this is not what the Acehnese people want,' he said.
Malik went on to say that Islam in Aceh has always been traditional Islam. "Islam has
been the religion of the Acehnese for a very long time.'
He said that this was the first time he had heard about the use of caning as a form of
punishment in Aceh. This has never been a part of the tradition of Islam in Aceh.
But a recent survey showed that vast majority of Aceh back Islamic Law. According to
an opinion poll released on Aug 10 some 90% of people in Aceh province say they
agree with Islamic laws that punish gamblers with caning and force women to cover
their heads in public.
Aceh is the first province in secular but Muslim-majority Indonesia to be allowed to
implement laws based on the Islamic legal code, or Sharia. Religious police currently
enforce laws criminalizing consumption and sale of alcohol, gambling, non-Islamic
dress and illicit relations between men and women. Punishment is either by fines,
short prison terms or light caning.
Some 90% of respondents in a poll by the respected Indonesian Survey Circle said
the laws were "in line with their wishes." The survey was conducted based on
face-to-face interviews with 440 respondents in mid-July, with a margin error of
approximately 4.8 percentage points.
The implementation of the laws is being watched closely by other provinces in
Indonesia that want to introduce similar laws. Members of the country's Christian
minority as well as some moderate Muslims have expressed concerns about the
development. Some local women's rights activists have said they don't agree with the
laws, but fear speaking out against them because in doing so they may be portrayed
as anti-Islam.
Related articles:
Why Islam is the new Marx: http://www.infid.be/islam_new_marx.htm.
A year of peace embraced at birthplace of Indonesia's Aceh rebels:
http://www.infid.be/aceh_peace_embraced.htm.
Citizens Caned: http://www.infid.be/independence_reports.htm.
Most local people think former rebel leaders can lead Indonesia's Aceh: survey:
http://www.infid.be/aceh_rebel_can.htm.
Gus Dur, Gadis honored with press award: http://www.infid.be/press_award_gg.htm.
Acehnese optimistic of lasting peace one year after peace deal:
http://www.infid.be/aceh_peace_optimistic.htm.
Indonesia's Aceh to vote in December – Jakarta:
http://www.infid.be/aceh_vote_december.htm.
BRR slammed for funding Aceh military operations:
http://www.infid.be/aceh_brr_slammed.htm.
Sources: TI 14/8, AP 10/8
Papua
Indonesia denies knowledge of Papuans' departure for Australia
Indonesia's military on Aug 14 denied a report that it had allowed dozens of Papuan
asylum-seekers to leave Indonesia as part of a strategy to pressure Canberra on its
immigration policies.
Indonesia was aware the Papuans would sail to Australia in January and let the
voyage go ahead believing Jakarta could benefit, a report in the Sunday Age alleged,
citing a former Australian Defence Department intelligence analyst.
Indonesian army specialists in psychological operations "knew they were going, and
believed this was beneficial," the analyst, Mark Davies, was quoted as saying by the
Australian newspaper. Jakarta's handling of the row that erupted after their arrival
showed "a canny ability to penetrate the Australian government's 'decision cycle' to
attain favourable results," Davies reportedly said in an unpublished report. The
Indonesian military knew Canberra was "locked in" to taking tough action against
illegal immigrants as it had politically exploited the issue and feared an ongoing influx,
the report said.
Indonesian military spokesman Ahmad Yani however denied the claims.
"There is no indication that we knew," he told AFP.
"I very much doubt this analysis," he said of the report, which he said he had not yet
seen himself.
Forty-two of the 43 Papuans were given short-term protection visas, sparking a
serious diplomatic row between the two nations, with Jakarta withdrawing its
ambassador and Canberra drafting a tough new immigration law in response. But
Australian Prime Minister John Howard on Aug 14 ditched plans for the law, saying he
did not have sufficient support in parliament. The bill was seen by many as a way to
appease Indonesia and an effort to discourage further Papuans from heading to
Australia for asylum, but Howard denied the government was kowtowing to its
neighbour.
The diplomatic row also gave Indonesia's military greater scope for expansion in
Papua, Davies also concluded, according to the Sunday Age. The case's "most
enduring irony could be that Australia helped Indonesian military expansion in that
part of Indonesia closest to the land mass of Australia itself," the report said.
Related articles:
Indonesian Strategy 'Defeats' Australia: http://www.infid.be/papua_psyops.htm.
Cultural understanding necessary in Papua:
http://www.infid.be/papua_cultural_understanding.htm.
Source: AFP 14/8
Chinese plan for timber investment in Papua opposed
Environmental and business groups joined hands on Aug 15 in opposing a Chinese
company's plan to invest in forestry in Papua, saying the project could accelerate the
destruction of forests in the resource-rich province. The government is conducting a
feasibility study on the plan by China Light to establish a timber processing factory in
Papua. Some of the products would reportedly support the construction of facilities for
the 2008 Beijing Olympics.
Bogor-based environmental group Telapak and the Indonesian Furniture Industry and
Handicrafts Association (Asmindo) said the planned project could pose serious
threats to Papua's remaining pristine forests, as well as harming the country's
revenues from furniture exports.
Telapak investigator Yayat Afianto said the US$1 billion scheme would further reduce
the province's remaining natural forests and fuel illicit logging practices.
"Indonesia and China have not yet established detailed action plans to monitor timber
trading between the two countries. That poses a threat to Papua's forests," he said.
He said the absence of such action plans would allow several timber companies
accused of involvement in illegal logging to supply the Chinese company with illicitly
sourced lumber, thus fueling more illegal forest destruction in Papua.
Telapak's investigation found that about 300,000 cubic meters of merbau (intsia) are
smuggled monthly from Papua to China. The investigation, conducted jointly with the
London-based Environmental Investigation Agency (EIA), found that the wood was
manufactured into flooring in China and sold through scores of home improvement
chain stores in Europe and the United States.
The Chinese government denied it was plundering the world's rain forests, including
Papua's, to meet its booming demand for wood, calling the allegations groundless.
"The Chinese government consistently upholds and practices collective international
responsibility, opposing and cracking down on illegal logging and illegal wood
imports," China's State Forestry Administration spokesman Cao Qingyao said.
Related articles:
Environmentalists say European firms using stolen Indonesian wood:
http://www.infid.be/logging_european.htm.
China denies plundering world's rain forests: http://www.infid.be/logging_china.htm.
Source: JP 16/8
Government sees lengthy Freeport contract revision
The government has indicated that the process of reviewing and possibly revising the
mining contract of PT Freeport Indonesia may not be completed until next year.
"We are still waiting for the outcome of a special team formed by the House to review
Freeport's contract and operations, and from the Finance Ministry on royalty issues,"
said Energy and Mineral Resources Minister Purnomo Yusgiantoro.
"The ministry wants to speed up the process and wrap it up as soon as possible. But
we cannot do that since other institutions are also involved in the process. We hope
to be able to complete it by this year, but that is unlikely to happen," he said.
He reiterated the revisions would likely be related to securing the government a
greater share of the revenue from Freeport's mining operation in Timika, Papua, which
has become a frequent target of protests from the local community and legislators.
Purnomo, however, refused to say what percentage of revenue the government was
seeking.
Freeport, a local unit of the world's largest gold and copper miner, Freeport-McMoran
Copper & Gold Inc, has on numerous occasions said it has lived up to all of its
financial obligations to the government. The company's total output in 2005 was 1.46
billion pounds of copper and 2.8 million ounces of gold. It paid around US$1.2 billion in
taxes to the government.
Environmentalists and politicians have urged the government to revise Freeport's
mining contract, saying the company, despite its huge annual profits, has failed to
make significant contributions to the improved welfare of local tribes. They also allege
massive environmental pollution at the mining site. The Papua administration has on
several occasions urged the central government and Freeport to show greater
commitment to the development of the country's easternmost province.
Source: JP 14/8
Abbreviations
AFP Agence France-Presse
AP Associated Press
JP The Jakarta Post
SAT The Southeast Asia Times
TI Tempo Interactive
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