INFID, October 13, 2006
INFID's Short News Overview No. VII/23: Sep 29-Oct 13, 2006
Debt & Poverty
Indonesia pays off IMF debt
Within a week, Indonesia will finish repaying all its debts to the International Monetary
Fund (IMF), ending an eight-year, up-and-down relationship with the global financial
agency.
The central bank notified the IMF of the payment plan on Oct. 5, Bank Indonesia (BI).
"As of today we no longer have any more debts to the IMF. We are now a regular
member, and no longer a `sick' member receiving treatment," he told a media briefing
after BI's Board of Governors meeting.
"We expect this will provide more room for Indonesia's economy to grow with more
confidence and in a healthier fashion without being burdened by the IMF debt."
Indonesia will pay the remaining US$3.2 billion of its principle and interest to the
Fund, Deputy Governor Hartadi A. Sarwono said.
The central bank repaid $3.7 billion of Indonesia's then approximately $7 billion in
remaining debt to the IMF in June, following President Susilo Bambang Yudhoyono's
request to settle the debt within the next two years. The IMF debt does not actually
come due until 2010.
The repayment will save the country some $500,000 from this year's interest
payments, which were expected to reach $22 million. Finance Minister Sri Mulyani
Indrawati, who first proposed repaying the IMF debt ahead of schedule, said recently
that Indonesia could save at least $100 million in interest payments by 2010.
Sri Mulyani, a former IMF executive director, had argued for the earlier debt repayment
considering the debt's increasing funding costs, while the money only functioned as a
standby loan to strengthen Indonesia's foreign exchange reserves.
Indonesia still has to pay Rp 63.5 trillion ($6.9 billion) in interest this year on its $61
billion in foreign debts, which may make the significance of the IMF debt repayment
questionable except as a matter of national pride.
INFID Press Release: http://www.infid.be/Statement_Payment_IMF.pdf.
Related article:
Kalla: IMF no longer authorized to control Indonesia's policies:
http://www.infid.be/imf_kalla.htm.
Source: JP 6/10
Civilian Supremacy
Indonesia accepts Russian export credits for procurement of weapons system
The Indonesian government finally agreed to accept state credit worth 1bn US dollars -
equivalent to 10 trillion rupiah - offered by the Russian government to purchase
primary weapons systems for TNI. The government would only need to obtain approval
from the DPR [House of Representatives] Commission I to proceed with procurement
plans.
"We have discussed it and the finance minister has advised that the debt and GDP
ratio needs to be maintained at the current level," Defence Minister, Juwono
Sudarsono, said on 9 October 2006.
According to Juwono, the interest rates would range between 5.6 and 5.8 per cent per
annum. These rates were lower than commercial banks in the Organization for
Economic Cooperation and Development (OECD) member countries which reached
eight per cent. The minister further said that the government would only need to
determine the allocations of the funds for the procurement of Sukhoi jetfighters for the
Indonesian Air Force and submarines for the navy in the first year. Meanwhile, funds
for the army would be allocated in the second year.
Russia offered the credit in March 2006 when the secretary-general of the Department
of Defence, Lt-Gen Sjafrie Sjamsoeddin, visited Moscow to meet the Russian Finance
Ministry's officials. The credit would be disbursed in five year terms with a 15-year
repayment term. Therefore, the procurement of weapons systems would be conducted
between the two governments without involving a third party.
Source: BMA 11/10
Indonesian Army Denies Illegal Arms Purchase
Indonesia's military denied on Oct. 3 any links with four Indonesians charged in the
United States with a conspiracy to export arms. U.S. officials said last week that six
people had been arrested in Guam, a U.S. territory in the Pacific, and charged with
conspiring to sell arms to Sri Lankan rebels and customers in Indonesia.
"The TNI (Indonesian army) requires our partners abroad to have a valid export license.
If there were accusations that the TNI is buying illegal arms, this can't be true,"
military chief Air Marshal Djoko Suyanto said.
The U.S. officials said four of the men -- two Indonesians, a Singaporean and a Sri
Lankan -- intended to export surface-to-air missiles, machine guns, ammunition and
night vision goggles to the Tamil Tigers, considered a terrorist group by the United
States. The men were identified as Haniffa Bin Osman, 55, a citizen of Singapore;
Erick Wotulo, 60, and Haji Subandi, 69, of Indonesia; and Thirunavukarasu
Varatharasa, 36, a Sri Lankan.
Osman, Wotulo and Subandi also were charged with conspiracy to provide material
support to a foreign terrorist organisation and money laundering. Suyanto confirmed
that Wotulo was a retired Indonesian general from the marine corps. The three other
Indonesians are accused of trying to export night vision goggles and long-range sniper
telescopic sights to Indonesia and are civilian, he said.
Source: Reuters 3/10
General News
Indonesia appoints new head of team probing activist's murder
Indonesian police named on Oct. 6 a new chief to the government-sanctioned team
tasked with re-investigating the murder of a leading human rights campaigner, a
spokesman said.
The Supreme Court this week overturned the conviction of pilot Pollycarpus Priyanto,
the only person jailed over the 2004 arsenic poisoning of activist Munir on a flight to
Amsterdam with the national carrier Garuda.
A government-sanctioned team was appointed to probe the case in December 2004
and it has already completed an unpublished report which alleged Priyanto had links
to the powerful national intelligence agency (BIN).
Activists have said that President Susilo Bambang Yudhoyono's direct intervention to
boost the team's investigating powers would be needed to uncover the true
masterminds behind an alleged conspiracy to kill Munir. National police spokesman
Paulus Purwoko said that the naming of one-star general Surya Dharma Nasution as
the new head was in line with instructions from the president to "revitalise
investigation" into Munir's death.
But activists said the reappointment of Brig. Gen. Surya Dharma Nasution to lead the
police team probing the murder of human rights champion Munir will only undermine
the police and the President's credibility. Surya led the police team formed in 2004 to
investigate the murder but was later replaced by Brig. Gen. Marsudi Hanafi, now
South Sumatra deputy police chief.
"He was replaced by Marsudi because he failed," Commission for Missing Persons
and Victims of Violence (Kontras) executive director Usman Hamid said on Oct. 7..
Rachlan Nasidik, the executive director of rights group Imparsial, said the
government-sanctioned fact-finding team had filed a report to the President that Surya
was among officers reluctant to investigate Munir's murder.
Related articles:
Indonesia: Acquittal Bolsters Impunity for Munir's Murder:
http://www.infid.be/munir_impunity_hrw.htm.
Indonesian Pilot acquitted of killing rights activist:
http://www.infid.be/munir_pilot_acquitted.htm.
Pilot 'exonerated' in Munir murder: http://www.infid.be/munir_exonerated.htm.
'Unreasonable court verdicts could lead to the death of common sense':
http://www.infid.be/munir_unreasonable.htm.
US Hopes Indonesia Will Prosecute Killers Of Rights Activist:
http://www.infid.be/munir_us_hope.htm.
Munir Probe Chief Failed Before: Activists: http://www.infid.be/munir_chief_fail.htm
Munir's family sues Garuda Airlines for 13 billion rupiah:
http://www.infid.be/munir_sues_garuda.htm.
Activists deman release of Munir report:
http://www.infid.be/munir_demand_release.htm.
Analysts urge intelligence reform: http://www.infid.be/munir_urgent_reform.htm.
Source: AFP 6/10
Indonesian governor implicates police in Poso unrest
The governor of Indonesia's religiously-divided Central Sulawesi said on Oct. 4 that
police may have been involved in inciting unrest in the town of Poso. Governor H.B.
Paliudju said that he met with the provincial police chief as well as Muslim and
Christian religious leaders on Oct. 1, a day after four low-explosive blasts increased
tensions in the town.
"I received reports that soon after (one of the) bombs exploded several days ago, the
police told people that Christians were gathering strength to strike," he told reporters.
"But after they checked... this was not true. There were about 20 onlookers, but there
were no plans for counter-attacks," he added.
He also said that the religious leaders had indicated there was "involvement of police
in inciting acts of violence and terror in Poso", but did not give any further details.
Central Sulawesi police spokesman Muhammad Kilat said that police were "checking
the truth of the accusation and finding out whether there are facts to support it."
Clashes between people of the two faiths in 2000 and 2001 claimed about 1,000 lives.
Related articles: http://www.infid.be/poso_mob_attacks.htm.
Source: AFP 4/10
Police chief's wealth questioned
House of Representatives Speaker Agung Laksono asked Gen. Sutanto on Oct. 3 to
clarify Corruption Eradication Commission findings his personal wealth had soared
since becoming National Police chief.
The KPK announced on Oct. 3 that Sutanto's total assets soared by more than 140
percent from Rp 2.4 billion (US$260,960) in 2001 to Rp 5.9 billion by the first half of
this year. The amount of his bank deposits rocketed from Rp 75 million to Rp 4.2
billion, the commission said.
KPK director of wealth reporting and monitoring Muhammad Sigit said Sutanto
reported in his disclosure that the bank deposits did not come from third parties.
"We can find out whether the increase in his wealth makes sense by knowing his
earnings as National Police chief because he doesn't have any other businesses,"
Sigit said.
National Police spokesman Insp. Gen. Paulus Purwoko said the increase was normal
and "logical", given Sutanto's top job in the force. Sutanto's monthly salary and
allowances were significantly higher than other senior members of the force, he said.
He declined, however, to disclose how much Sutanto was paid a month. The
institution authorized to give out such information was the police finance department,
he said.
Read more: http://www.infid.be/corruption_police_chief.htm
Corruption related article:
Corruption watchdog wants tough line on crooked councillors:
http://www.infid.be/corruption_tough_line.htm.
Source: JP 4/10
Aceh
Foreigners to monitor Aceh poll
Over a hundred foreign monitors will work with local observers in the upcoming direct
elections in Aceh, while several candidates have failed the required Koran recital test
and are now ineligible to run in the December polls.
Aceh Independent Elections Commission chief M. Jafar said on Oct. 6 that at least
140 foreign monitors had expressed willingness to come to the province to monitor the
elections for mayors, regents and governor.
"The European Union has said it will bring in 100 volunteers and the Japanese
government will send 40 to monitor the Aceh elections," Jafar said.
Apart from foreign observers, three national organizations and one local group have
also registered with the commission to help monitor the elections.
Jafar said the commission had released an ordinance detailing election observation
procedures. Any group wanting to serve in a monitoring capacity will have to meet
several requirements, including its profile, having clear funding resources, a minimum
number of observers and deployment areas, and must also be a non-partisan group.
Registrations can be made up until to Nov. 22.
Meanwhile, 17 of the 290 candidates have failed Koran recital tests.
He said each candidate had to pass the Koran recital test under the province's 2006
qanun (bylaw) on the elections of governors, mayors, regents and their deputies. In
article 33 of the bylaw it is stated that candidates must perform all the obligations of
their religions and that Muslim candidates must pass Koranic tests.
Apart from electing the governor, Aceh will simultaneously hold elections for mayors,
regents and deputy mayors and regents for its 19 cities and regencies.
Source: JP 7/10
Papua
Churches want Abepura probe
The Association of Papua Churches (PGGP) wants the government to set a team to
probe a series of alleged human rights abuses during a bloody clash between
demonstrators and police on March 16 in Abepura. Association head Bishop Leo
Laba Ladjar made the request on Sep. 29 to National Human Rights Commission
Papua branch chairman Albert Rumbekwan.
The PGGP has investigated the violence and submitted its findings to the commission
in Papua. Albert said the commission would take the PGGP's findings to its Jakarta
office. Five security officers died in the clash with protesters demanding closure of
mining company PT Freeport operation in the province.
Related article:
Families of Abepura suspects lodge complaint with Komnas HAM:
http://www.infid.be/papua_abepura_lodge.htm.
Source: JP 30/9
Papua kampongs to get funding
Papua Governor Barnabas Suebu has earmarked Rp 100 million (US$ 10,852) in
special autonomy funding to be disbursed to each of the kampongs throughout the
country's easternmost province starting next year.
Since Papua has 2,600 kampongs, a total of Rp 260 billion will be distributed, Suebu
said at the regional conference of the Indonesian Democratic Party of Struggle (PDI-P)
in Biak over the weekend. According to the governor, the funds will be used to finance
four key sectors: education, health, infrastructure and community economic
empowerment. The money will be channeled through Bank Papua, which will be
assigned to set up a branch office in each kampong. Each branch will have a World
Bank-trained advisor to ensure the funds are disbursed effectively.
In addition to handing out the funds, the Papuan provincial administration will build
polyclinics in all 2,600 kampongs next year and supply each with a nurse, the
governor said.
In the education sector, Suebu said, the local administration plans to build 10 model
boarding schools with a capacity of 2,000 students each. "Activities at the schools to
be built will be equal to the education level offered by the Pelita Harapan School in
Jakarta. We will be able to do this because we have the money," he said.
Frans Maniagasi, a member of the Jakarta-based Papuan working group, said the
special autonomy development program must be realistic.
"We can put our ideals high in the sky, but there must be those who can make them
into reality on the ground," he said in Jayapura on Oct. 3.
Frans said the most important step for Suebu and his deputy governor, Alex
Hasegem, was to prepare a legal instrument as a guideline in implementing special
autonomy. Otherwise, he said, it would be difficult to ensure the money was spent
properly.
Meanwhile, Agus Alue Alua, chairman of the Papuan People's Assembly, urged both
the regional and central governments to design an official Papuan Special Autonomy
program charged with improving the welfare of the Papuan people.
"The special autonomy fund, intended mainly to improve the welfare of local people,
constitutes the government's response to the Papuans' call for freedom. The money
should be utilized maximally to empower the people in the kampongs, and not to
finance travel by government officials," he said.
Papua related article:
Papua Opens Doors for Donors: http://www.infid.be/papua_opens.htm.
Papuan refugees face closer scrutiny: http://www.infid.be/papuan_refugees.htm.
Source: JP 4/10
Abbreviations
AFP Agence France-Presse
AP Associated Press
BMA BBC Monitoring Asia Pacific
JP The Jakarta Post
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