INFID, October 13, 2005
INFID's Short News Overview No. VI/21: 7-13 October, 2005
General News
Indonesia not to reopen bond deals
Indonesia's government does not intend to reopen any bond deals, Rahmat
Waluyanto, head of debt portfolio management of the finance ministry said on Oct. 7.
He was responding to media reports that the ministry was considering reopening the
30-year dollar bond.
Indonesia sold $600 million worth of 30-year sovereign bonds on Oct. 5, at a price that
would yield 8.625 percent. The issue was part of a total of $1.5 billion worth of 10- and
30-year sovereign bonds. It was the second sovereign bond issue this year.
A senior bond analyst said the issue's higher amount than was originally planned
indicated a vote of approval from the market on the recent policy decision.
Finance minister Jusuf Anwar has said the government had issued a total of 46.5
trillion rupiah ($4.64 billion) worth of government bonds so far this year, above the 43.3
trillion rupiah target set in the budget.
Global bond more than 4 times oversubscribed:
http://www.infid.be/bond_oversubscribed.htm.
The Virtuous Circle Begins: http://www.infid.be/virtuous_circle.htm.
Source: Reuters 7/10
Govt ignores Constitutional Court on fuel
The government said on Oct. 10 that it would not back down from its decision to raise
fuel prices by an average of 126.6 percent, despite a warning by the Constitutional
Court that the decision had been made on a shaky legal basis.
Constitutional Court President Jimly Asshidiqie sent a letter to President Susilo
Bambang Yudhoyono on Oct. 6, telling him that his presidential decree on fuel price
hikes lacked a firm legal foundation. The letter was issued after a meeting of the
court's judges, and copies were sent to other state institutions, including the House of
Representatives.
Jimly said Presidential Decree No. 55/2005 on the new retail prices of oil-based fuels,
which was signed by Susilo on Sept. 30, had improperly used the Oil and Gas
Industry Law (No. 22/2001) as its legal basis. The court ruled in December last year
that the Oil and Gas Law had to be amended as it found that a number of its
provisions were repugnant to the 1945 Constitution, including the article on the
determination of fuel prices for the domestic market. The Constitutional Court ruled
that such determination must not be based on market prices, but the government
should instead set them based on people's purchasing power.Leaving fuel prices at
the mercy of the international market would be contrary to the Constitution, it added.
Responding to the letter, the government said it would ignore it.
Source: JP 11/07
TNI plan condemned
The Indonesian Military's (TNI) plan to reactivate its territorial command drew strong
criticism from the country's top politicians on Oct. 6 as they claimed the move would
pave the way for the military's involvement in politics.
"Reviving the territorial command is the wrong medicine for the disease we are dealing
with. The move is only a tool to revive militarism. We should oppose that kind of
intention as early as possible," said former president Abdurrahman "Gus Dur" Wahid
said.
TNI chief Gen. Endriartono Sutarto said on Oct. 5 that he would take the necessary
measures to crack down on terrorist attacks in the country by reactivating the
military's territorial command. He announced the plan after President Susilo Bambang
Yudhoyono, speaking at the 60th anniversary of the TNI, urged the military to take an
active role in the fight against terrorism following the recent bomb blasts in Bali. The
territorial function covers the regional level, handled by the Regional Military Command
(Kodam) to the village level, handled by non-commissioned officers assigned to
villages and subdistricts.
Gus Dur said he doubted that the move would be an effective means to stop terrorists
from taking action in the country.
Speaking along the same lines, Speaker of the People's Consultative Assembly
(MPR) Hidayat Nur Wahid said the move was inappropriate because the military
should only support the National Police and National Intelligence Agency (BIN) in
fighting terrorism, not take over the job. He feared that the plan would create conflict
between the military and police officers as well as BIN's intelligence officers in the
field.
A political observer from the Centre for Strategic and International Studies, J. Kristiadi,
said that the move was a violation of Law No. 34/2004 on the military, which stipulates
that the TNI territorial function shall be eliminated within five years after the law is
issued.
The coordinator of the Commission for Missing Persons and Victims of Violence
(Kontras), Usman Hamid, on Oct. 5 also condemned the plan. He believes it is
irrelevant to reactivate the territorial commands to prevent terrorism because the TNI
already has enough regional intelligence networks.
Hamid explained that the TNIs intelligence network could already be found at every
Regional Military Command (Kodam) in Indonesia and they have already been
integrated into the community. In addition to this, the Anti-Terrorism Law already
provides extra powers and capabilities to the TNI to prevent criminal acts of terrorism.
It is because of this that Hamid believes that steps to reactivate the territorial
commands are only to improve the TNIs public image. They want to create an image
that the TNI is still needed by society, said Hamid.
Stay in the Barracks: http://www.infid.be/military_stay_barrack.htm.
Military fight against terrorism could be the terror itself:
http://www.infid.be/military_terror_itself.htm.
Sources: JP 7/10, INS 5/10
One Year SBY
Indonesians think that President Susilo Bambang Yudhoyono is performing
satisfactorily on just about everything - except the economy. And that exception has
plunged his popularity to its lowest point since he took office 11 months ago.
The results of the latest poll, conducted late last month by a prominent think-tank, the
Indonesian Survey Institute (LSI), showed that his approval rating had dropped to 63
per cent. A similar poll done in November, a month after he assumed the presidency,
showed a whopping approval rating of 80 per cent.
His deputy Jusuf Kalla suffered a similar fate, dropping from 77 per cent last
November to 58 per cent in the latest one.
The latest poll, the fifth by the institute since last November, suggested that
Indonesians think the President has not delivered on his promises to alleviate poverty,
cut joblessness and control rising prices of basic needs.
Nearly half of the 1,000 respondents felt that the economy is worse than this time last
year.
In fact, LSI executive director Saiful Mujani thinks that the President's rating would
drop even further if the poll, held between Sept 22 and 26, was done after the
announcement of fuel price hikes and the suicide bombings in Bali.
SBY still popular despite a year of tough decisions:
http//www.infid.be/sby_still_popular.htm.
The silver lining after Susilo's first year in office: http://www.infid.be/sby_silver.htm.
Problems Loom as Indonesia President Marks First Year:
http://www.infid.be/sby_loom.htm.
Source: ST 7/10
Corruption cases: former religious affairs minister, supreme court chief
Former religious affairs minister Said Agil Hussein Al Munawwar and his former
subordinate Taufiq Kamil went on trial on Oct. 6 for a haj fund scandal, for which they
could be sentenced to life in prison if convicted. The two are being tried separately at
the Central Jakarta District Court on charges of embezzling more than Rp 700 billion
(US$70 million) of haj funds. In a 57-page indictment, prosecutors accuse the two
defendants of abusing their power by spending huge amounts of money from the
Ummah Trust Fund (DAU), the Haj Reserves Fund (DAH), the DAU Fund
Management bank account and the Employees' Welfare Fund at their office.
"The defendant (Said Agil) violated Law No. 31/1999 and Law No. 20/2001 on
corruption by embezzling state funds to enrich himself, others and private
companies," said chief prosecutor Ranuwihardja. The 2001 antigraft law carries a
maximum sentence of life in prison. Ranuwihardja said that during the 2001 pilgrimage
season, the Ministry of Religious Affairs handed over Rp 885 million to the DAU --
which was set up under Presidential Decree No. 22/2001 to support Islamic education
and the development of haj facilities -- while a total of Rp 16 billion and $982,784 were
used as reserve funds and for the operations of the Haj Management Agency (BPIH).
Lawyers for the defendants said their clients could not take all of the blame for
payments to state auditors and legislators, because the payments were made by
BPIH.One of the lawyers, Muhammad Assegaf, also said prosecutors could not
charge their clients with embezzling money from the Ummah Trust Fund "because the
only money they spent came from the interest accumulated by the fund".
Meanwhile, Supreme Court chief Bagir Manan on Oct. 7 denied allegations that he
received payoff money that was given via the Court's officials. Earlier, the Corruption
Eradication Commission (KPK) arrested five officials of the Supreme Court and a
judge-turned-lawyer, Harini Wiyoso, for their alleged involvement in a case of bribery.
Harini Wiyoso was a member of the legal team for businessman and cousin of the
country's former president Soeharto, Probosutedjo, who was convicted for abusing
reforestation funds that caused the state over Rp 100 billion (about US$10 million) in
losses. KPK officials confiscated sums of $400,000 and Rp 800 million, which they
believed were to be used as bribes to win an appeal case. Harini's lawyer, Firman
Wijaya, said on Oct. 6 that her client had prepared $500,000 to be given to Bagir
Manan, who is also a member of the panel of judges in Probosutedjo's appeal.
Anti-Graft Body Falls Short of Expectations: http://www.infid.be/graft_fall.htm.
Sources: JP 7/10 8/10
Regional News
Aceh
The chairman of the Aceh Monitoring Mission (AMM) Pieter Feith appealed to the
members of the Free Aceh Movement (GAM) in Sweden and other foreign countries to
return to Aceh. According to Feith, the return of GAM leaders residing in foreign
countries was not included in the Memorandum of Understanding in Helsinki.
Therefore, the return of GAM leaders to Aceh will boost the public trust on the
security in Aceh. "Their return will improve the condition in Aceh," said Feith. Feith
promised that the AMM would help the government to determine autonomy for Aceh
as expected by GAM. Regarding security, Feith said that both the AMM and
Indonesian government provided a security guarantee for GAM leaders in Sweden.
"The armed conflict is over," Feith said. Feith added that he once brought up this
matter to the GAM leaders in Sweden on when they would return to Aceh, but until
now they only responded with that they are thinking about it.
Pieter Feith, who heads a team of European Union and Southeast Asian monitors,
said GAM's top leaders could play a "very important" role in the future of the
resource-rich province.
GAM's leader Hasan di Tiro has lived in Sweden since 1979 and other top leaders
have also been based there for years. Some have Swedish citizenship.
Chief Aceh peace monitor urges Sweden-based Aceh rebels to return soon:
http://www.infid.be/aceh_return_soon.htm.
Sources: TI 8/10, AFP 12/10
Papua
The government has delayed indefinitely the establishment of the much-awaited
Papuan People's Assembly (MRP), blaming a dispute among local religious leaders
and local authorities over the composition of the assembly. The government earlier
promised to complete the selection process of 42 assembly members last week and
to install them on Oct. 15. The inauguration was earlier scheduled for Oct. 3 and 8,
but was postponed again later.
However, the director general of national integrity at the Ministry of Home Affairs,
Sudarsono Hardjosoekarto, said the MRP's composition was still problematic as the
Protestants and Catholics had yet to decide on their representation.
The Special Autonomy Law No. 21/2001 for Papua mandates the central government
and the Papuan administration set up the MRP as a powerful political body to
represent community groups, including tribes, religions and women's groups.
However, the law does not specify the composition of each grouping in the assembly.
Under the law, the MRP is authorized to deal with problems in the troubled province,
from human rights abuses to developing the province.
Critics have said that the government was buying time setting up the MRP as it
appeared reluctant to give the body wide-ranging powers as mandated by the
autonomy law.
Why should Papua aspire to full independence?:
http://www.infid.be/papua_full_independence.htm.
The West Papua Report: http://www.infid.be/papua_rfk_sept05.htm.
Source: JP 12/10
Abbreviations
AFP Agence France-Presse
AP Associated Press
INS Indoleft News Service
JP The Jakarta Post
TI Tempo Interactive
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