INFID, November 11, 2004
INFID's Short News Overview No. 32: November 5-11, 2004
Minal Aidin Wal Faizin. Mohon Maaf Lahir dan Batin.
Wishing you Peace, Happiness and A Blessed Idul Fitri!
INFID Related Issues
Autopsy Report for Human Rights Activist Munir handed over
The Dutch Foreign Minister confirmed that report on the autopsy, conducted on the
body of the late Munir has been handed over to the Indonesian Foreign Office by the
Dutch Embassy in Jakarta today (Nov. 11, 2004). Munir had died on a flight bound for
Amsterdam on Sept 7, 2004 (see INFID's SNO No. V/23: September 3-9, 2004).
According to the Dutch official it is due to international diplomatic rules that the report
was not handed over directly to the widow of the Human Rights activist, who claimed
the right to be the first to read the report. According to unconfirmed reports from NGO
circles in Jakarta the Indonesian Foreign Office is presently withholding this report
maintaining that the Co-ordinating Minister for Politics, Law and Security has to grant
permission to hand over the report to the widow. The long time that has passed since
the autopsy took place in mid-September and the extreme care applied by Dutch
authorities in the preparation of this report have already sparked intense speculations
about the actual cause of the Munir's death. The manoeuvres of Indonesian authorities
could further fuel this speculation.
Source: HOM, den Haag
European Countries Offer Debt Swap to Indonesia
A deputy of the chief economics minister Jannes Hutagalung said that four European
donor countries have offered to Indonesia a debt swap agreement. Under the
agreement part of the Indonesian debts will be cut and used to help finance
development programs in the country. A memorandum of understanding will be signed
with Britain, France and Italy, Hutagalung said. The Netherlands also has indicated its
interest in signing a debt swap agreement, he said after the signing of a debt swap
agreement with Germany on Monday. Germany has offered to swap Indonesian debt
with a grant to finance environmental development, offering to cut more Indonesian
debt for a similar purpose.
Source: AA 9/11
Indonesia Utilizes Only 44.6% of Loan from Donors: Report
The country has succeeded in utilizing only 44.6 per cent or US$1.24 billion of
US$2.9 billion in loans from the donor consortium of Consultative Group on Indonesia
(CGI) in 2004, an official report said. Altogether in the first three quarters of 2004, only
41.44 per cent or US$5.98 billion of US$14.45 billion in foreign loans available for the
year have been used, the National Development Planning Board (Bappenas) said.
In 2004 project loans used so amounted to US$1.19 billion or 49 per cent of the
project loans available and program loans used amounted to 452.5 million or 39.35 per
cent of the amount available. Bappenas secretary Koensatwanto said project loans
have been more donor-driven, with the donors requiring that basic material and
technical consultant be provided by the donor countries.
Source: AA 9/11
Govt to seek debt write-off program: Finance Minister
Finance Minister Jusuf Anwar said the ratio between the country's foreign debt and its
gross domestic product has now dropped to 60 percent from over 100 percent a few
years ago. He said the government would not only strive to reduce the amount of the
country's foreign debt but also lower the costs such commitment fees.
"Commitment fees we have to pay to the World Bank alone amount to US$1.5 billion
and to the ADB US$2.3 billion per year while we have yet to receive the loans," he
said.
He said the government would try to reduce its credit-fee burden by conducting a
review of its pospecctive loans in which it would decide whether to relocate, close or
waive those loans altogether. The goverment would also seek to obtain debt write-off
programs or swap its debts with environment, city bus and public housing programs,
he said.
Source: AA 5/11
General News
Economy Better, Investment Uncompetitive: WB
The World Bank said it has revised its forecast for gross domestic product (GDP)
growth in Indonesia for 2004 to 4.9 pct from 4.5 pct previously. The government
forecast is for GDP to grow 4.8 pct this year. The bank also revised up its forecast for
2005 GDP growth to 5.4 pct from 5.0 pct, in line with the government's projection.
The Bank said the economy grew by 4.7 percent during this year's first semester,
while the unemployment rate in May was down to 7.4 percent from 8.5 percent in
August 2003. The government had set an economic growth target of 4.8 percent for
this year. Newly elected President Susilo Bambang Yudhoyono, however, is
expecting to be able to reach a GDP growth of between 5 percent and 7 percent, and
an unemployment rate of 6 percent for the country's 212 million people, in the next
year.
While projecting a pickup in growth, the World Bank reiterated its concerns on the
poor domestic investment climate. The World Bank pointed to its recent Doing
Business Survey 2005 report, which shows that it takes 151 days for investors to start
a business in Indonesia -- five times longer than in Malaysia or Thailand.
The full WB report can be found at:
http://lnweb18.worldbank.org/eap/eap.nsf/All/2DA786CAE06BE84885256F460013F284?opendocument
Sources: AFX 9/11, JP 10/11
Cut Fuel Subsidy: WB
The World Bank has recommended that the government cut fuel subsidies, as they
have done nothing to alleviate poverty. World Bank senior economist for Indonesia
Jehan Arulpragasam said that the rationale behind the subsidies was questionable as,
in general, they benefited the rich five times more than they did the poor, and had
created distortions in the fuel market. Arulpragasam explained that the distortion in
fuel prices had lead to widespread fuel smuggling to neighboring countries, and
worsening air pollution problems due to the public's excessive consumption of fuel.
The new government of Susilo Bambang Yudhoyono is under pressure to cut down
costly fuel subsidy spending as oil prices have surged to record levels. The oil hike
has inflated the 2004 fuel subsidy allocation from the planned Rp 14.5 trillion to Rp
59.2 trillion, a huge sum when looked at in the light of the Rp 70 trillion allocated on
development spending.
The government has decided not to raise fuel prices during the remainder of this year
as people prepare to celebrate the year-end festivities at Idul Fitri, Christmas and the
New Year. But officials have acknowledged that fuel prices might have to be increased
next year in line with developments in the international oil price in a bid to ease the
pressure on the state budget.
Fiscal Policy Strangles Indonesian Economy: http://www.infid.be/fiscal_policy.htm.
Source: JP 10/11
Buyat Bay Contaminated: Environment Minister
The joint team for handling the case of Buyat Bay, North Sulawesi, found that there
was arsenic contamination in the waters. But announcement of the findings would
have to wait for a ministerial coordinating meeting that will discuss follow-up policies;
the meeting will be attended by relevant institutions
Minister of Environment Rachmat Witoelar said on Nov. 8 that some parameters like
the arsenic level in the sediments, community wells and fish on the sea bed were
potentially harmful for Buyat residents' health. In the ministerial meeting, they would
synchronize findings from other sectors in order to find a technical mechanism to
address Buyat case. He admitted that there were indeed some abnormalities in Buyat
Bay, as indicated by diseases suffered by the locals such as skin diseases.
Despite the results, PT Newmont Minahasa Raya maintained on Nov. 9 that the bay
was free of contamination. Dave Baker, Newmont's senior vice president for
environmental management, said that elevated levels of arsenic were to be expected
in the tailings solid because of the mineralogy of the ore body. "The tailings system
was designed so that the arsenic would be in a safe chemically stable form that is
locked into the sediment and not released into the environment," he said in a
statement. Baker claimed that the system has worked as designed.
"It is confirmed by multiple previous scientific studies as well as 8 years of PT NMR
monitoring data that show arsenic concentrations in seawater to be well below
Indonesian and international seawater standards," he said.
Newmont, which operated in the area for six years up until Aug. 31, disposed of its
tailings in Buyat Bay. It has maintained that the tailings had been detoxified.
Sources: MC 9/11, JP 10/11
Resume Military Ties with US: Expert
The reelection of President George W. Bush is expected to offer a greater opportunity
for the resumption of Indonesian military ties with the United States and to clear the
way for more aid to help in the domestic fight against terrorism.
Bara Hasibuan, a former congressional fellow and the National Mandate Party (PAN)'s
director of international relations, said that for the sake of his global campaign against
terror, President Bush would persuade the U.S. Congress to lift its embargo on the
Indonesian Military. According to Bara, Bush had in fact sought to end the military
embargo on Indonesia after he took power for his first four-year term.
Bara said that the new Bush administration would also keep disbursing aid to the
Indonesian government to help it with the antiterror drive. "But the Indonesian
government must be proactive in reaching out for it and leave its passive approach
behind," he added.
Foreign Minister Hasan Wirayudha after meeting President Susilo Bambang
Yudhoyono on Nov.4 Hasan told reporters that Indonesia also hopes that the US
government will strengthen bilateral relations, particularly in military cooperation, and
increase cooperation in the war on terrorism.
He said that at the government level for the past several years the US administration
wanted to better military relations with Indonesia. He said the obstacle was not in
government but in Congress.
A Win for Indonesia Military: http://www.infid.be/military_awin.htm.
Sources: JP 6/11, BWM 4/11
House endorsed Ryamizard as TNI Chief
In a move that could worsen its relationship with President Susilo Bambang
Yudhoyono, the House of Representatives' defense commission said it had endorsed
Army chief Gen. Ryamizard Ryacudu's nomination as new Indonesian Military (TNI)
chief.
"We have endorsed the nomination of Ryamizard (as TNI chief). We hope the
President will install him soon," House Commission I chairman Theo L. Sambuaga
said.
House Commission I had been assigned to discuss former President Megawati
Soekarnoputri's letter on the appointment of Ryamizard as acting TNI chief following
the resignation of Gen. Endriartono Sutarto.
Susilo sent a letter to House leaders last week to withdraw Megawati's letter, but they
ignored his letter, arguing that Megawati was the legitimate president when she
submitted the letter.
"Legally, Gen. Ryamizard has become the new TNI chief, but the inauguration will
depend on President Susilo," commission member Happy Bone Zulkarnaen said.
General Endriartono Sutarto has reiterated he would not quit as head of Indonesia's
armed forces unless the president asked him to do so.
TNI Polemic Shows Military's Political Clout: http://www.infid.be/military_political.htm.
Sources: JP 6/11, AFP 7/11
Ex-E Timor Governor Acquitted of Human Rights Violations
Indonesia's Supreme Court on Nov. 4 acquitted the former governor of East Timor of
charges of gross human rights violations in 1999 when its people voted to separate
from Indonesia.
In the ruling the five-member panel said they "did not find the defendant guilty of
committing crimes as accused."
In the judicial review filed by Soares soon after he was sentenced to three years in
jail, his lawyers submitted new evidence to show his innocence and to secure his
release. Among the new evidence was a statement, signed by all members of the
East Timor parliament. The statement said Soares "was innocent, because at the
time of the incident, the power was in the hands of the Indonesian military and police"
and that he "had no power to prevent the incident from happening." There was also a
letter from East Timor President Xanana Gusmao, declaring him "a figure of peace
and reconciliation."
In Indonesia's legal system, a judicial review filed with the Supreme Court is allowed
as long as the defendant can show new evidence for his or her case.
The decision, which follows the quashing of convictions against others implicated in
the violence, means that among 18 people sentenced by an Indonesian human rights
tribunal for East Timor atrocities, none remain behind bars. Rights groups say the
tribunal was a sham. Both the United States and the European Union said the trials
fell short of justice. Although the latest ruling was made independently of newly
elected President Susilo Bambang Yudhoyono, it is unlikely to reflect well on his
pledges to clean up the country's graft-riddled judicial system.
However, Attorney General Abdul Rahman Saleh said on Nov. 9 that there was still a
chance that prosecutors could build new cases and name new suspects for crimes
against humanity in the former Indonesian province. Abdul Rahman was responding to
a demand from two human rights groups, the Commission for Missing Persons and
Victims of Violence (Kontras) and Imparsial, which called on his office to find new
suspects for the human rights abuses in East Timor. Kontras and Imparsial said in a
joint statement that the acquittal of former East Timor governor Abilio Soares of
human rights violations coincidentally opened up a new legal avenue for bringing those
responsible for the bloodshed to justice.
Sources: Kyodo 4/11, JP 5/11 10/11
Regional News
Aceh
November 1
A number of ministers arrived in Aceh to seek input before deciding on whether or not
to extend the state of civil emergency in Aceh which will end on November 19. The
delegation included the Coordinating Minister for Political, Legal and Security Affairs,
Widodo AS, the Coordinating Minister for Social Welfare, Alwi Shihab, the Minister of
Home Affairs, M. Ma'ruf, Indonesian Police Chief General Da'i Bachtiar and Attorney
General Abdul Rahman Saleh. Upon arriving in Aceh, the ministers immediately held
a closed meeting with local government officials, which lasted some two hours.
November 2
Coordinating Minister for Political, Legal and Security Affairs, Widodo AS said the civil
emergency in Aceh might be extended. The state of civil emergency in Aceh will end
on November 18. Following this it could be extended for the entire province, part of the
province or be reduced [to a state of civil authority], he said.
November 5
A military spokesman Ari Mulya Asnawi said Indonesian soldiers killed seven
suspected rebels in two gunbattles in Aceh. Troops gunned down four alleged
members of the Free Aceh Movement in the eastern Aceh district of Pidie on Nov. 4.
Four others were killed near the provincial capital, Banda Aceh, he said.
Acehnese Want Peace: http://www.infid.be/aceh_peace.htm.
Sources: AP 5/11, Indoleft 2/11
Documents
Paper on Post-Election Indonesia
The INFID Liaison Officer, Klaus H. Schreiner gave a presentation at a seminar jointly
organised by the German-Indonesian Society, Hamburg and the HSH Nordbank,
Hamburg. Among the speakers were Dr. Rüdiger Machetzki, Institute for Asian
Studies (Hamburg) and Dr. Matthias Umlauf, HSH Nordbank (Hamburg). The following
text presents a first assessment of the political situation in post-election Indonesia.
Quo Vadis Indonesia? Bestandsaufnahme und Perspektiven nach den
Präsidentschaftswahlen: http://www.infid.be/Quo-Vadis-Indonesia.pdf.
Abbreviations
AA Asia Pulse/Antara
AFP Agence France-Presse
AP Associated Press
DPA Deutsche-Press Agenteur
JP The Jakarta Post
MC miningindo.com
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