INFID, March 31, 2006
INFID's Short News Overview No. VII/1: March 2006
Debt & Poverty
World Bank approves $37 billion debt write-off
World Bank member nations on March 28 approved a long-awaited $37 billion debt
relief package for 17 impoverished countries that included ways to compensate the
development lender for the write-off.
The approval brings to an end months of tough negotiations among the World Bank`s
biggest donors over how to fund future loans by the bank`s low-interest lending arm,
the International Development Association.
The 40-year term of debt cancellation will begin on July 1. It will cover debt service
payments of the 17 countries to the World Bank on debt accumulated to the end of
December 2003, allowing governments to increase spending on programs that reduce
poverty.
"This is a historic agreement combining increased financing with debt relief, which will
help poor countries meet the Millennium Development Goals," World Bank President
Paul Wolfowitz said.
The package covers countries that graduated from the Heavily Indebted Poor
Countries Initiative, or HIPC, a global debt relief plan approved in 1996 that was based
on good economic performance.
Read more: http://www.infid.be/debt_wb_approves.htm &
http://www.infid.be/debt_wb_agrees.htm.
Source: Antara 29/03
Govt accepts Japan's $1 billion loan offer
The government has in the end agreed to accept Japan's offer of a new US$1 billion
yen loan package to support Indonesian development this year, but will continue to
negotiate the terms and conditions of the projects that the loans are intended to help
finance. State Minister for National Development Planning Paskah Suzetta said the
government would continue negotiations on the Indonesian request that the projects
employ at least 70 percent local consultancy content, and at least 40 percent local
product content.
Coordinating Minister for the Economy Boediono had earlier indicated that Indonesia
should avoid rejecting the offer, although he said that the final decision would be up to
Paskah. The state minister's decision came after the Japanese ambassador, Yutaka
Iimura, requested a response to the offer by not later than March 31, which marks the
end of Japan's fiscal year. He also said that he hoped a definitive decision would be
made by March 9 to allow Japan time to post the loans as official development aid
allocations in its budget.
Japan plans to help finance nine infrastructure projects with the new loan package,
including the construction of a subway line in Jakarta. Last year, Japan committed
114.83 billion (some $1.07 billion) through the Consultative Group on Indonesia (CGI)
to help finance eight major infrastructure projects, aside from grants for the
tsunami-stricken Aceh province.
This year, however, a new interest rate of 1.5 percent, up from 1.3 percent previously,
will be applied to a number of loans on consideration that Indonesia's gross domestic
product has increased to such an extent that Indonesia is now classified as a
lower-to-middle-income bracket country.
Although the new rates will only apply to three general term projects, with the others
all being preferential term projects with lower interest rates of between 0.4 and 0.75
percent, the issue had proven to be a constraint on the negotiations, besides the local
content issue and a lack of preparedness on the Indonesian side for implementation of
some of the projects.
The government hopes to raise Rp 35.11 trillion ($3.7 billion) from foreign loans to help
cover this year's budget deficit, which is expected to reach Rp 22.4 trillion.
Read more: http://www.infid.be/debt_japan_1billion.htm &
http://www.infid.be/debt_ri_japan_at_odds.htm.
Source: JP 10/03
Indonesia still has Post Program Monitoring status
The International Monetary Fund (IMF) has not yet changed Indonesia's status to that
of “post program dialog,” as was stated by Paskah Suzetta the Minister of National
Development Planning and concurrently Chief of the National Development Planning
Agency (Bappenas). This means that Indonesia's status is still that of “post program
monitoring.” Stephen Schwartz, the IMF representative for Indonesia, said the
relations between the IMF and the Indonesian government can be assumed to be a
dialog. There is no obligation for Indonesia to follow the recommendations given. IMF's
recommendations can be accepted or refused by the Indonesian government.
Schwartz's statement also acted as a clarification that the undertaken dialog was the
reflection of the discussion, not as a change that had been described. He added that,
such a suggestion be referred to as 'post program monitoring'.
When asked about the government's plan to reschedule debt disbursement, Schwartz
said that so far there had not been any dialog on this matter nor as regards any plan
to accelerate debt payment.
Paskah and the Minister of Finance Sri Mulyani, several times in front of the House XI
Commission, mentioned the intention to speedup the repayment of debt to the IMF
but later on chose a scheme for the paying off of the debt by 2010. Paskah confirmed
that the government is apprehensive that the paying off of the IMF debt faster than
scheduled could invite risk for Indonesia's foreign exchange reserves, which have
reached US$36 billion.
Read more:
RI cancels the speeding up of IMF debt payments:
http://www.infid.be/debt_imf_cancel.htm.
Government Schedules Frequency of IMF Debt Payments:
http://www.infid.be/debt_imf_schedules.htm.
Sources: TI 02/03, BI 27/02
Civilian Supremacy
TNI Immunity a Step Backward: Experts
A government plan to prevent soldiers from being tried for crimes in civilian courts was
a step backward and would further weaken the checks and balances against the
powerful military, a panel of experts said. The 2004 Law on the Military reformed the
military courts system, allowing soldiers to be tried in civilian courts for crimes
against civilians and other violations committed outside the line of duty. Previously, all
crimes committed by soldiers were tried by the military courts, which were criticized
for a lack of transparency and for seldom punishing offenders.
While the 2004 has been passed it has not yet been implemented into policy,
meaning military courts still try soldiers for most crimes. However, new amendments
to the 2004 law drafted by the government would restore the old system, speakers at
a forum on military and police accountability said.
"The jurisdiction of the courts must be based upon the crimes committed," Indonesian
Legal Aid Institute head Munarman said at the discussion.
Munarman said military courts should only have the authority to handle disciplinary
violations committed by soldiers. All other crimes should be under the jurisdiction of
civilian courts, he said.
The military's push for the reinstatement of the old system was mostly due to
entrenched attitudes in the forces, panelists were told. Military top brass had argued
that police and civilian prosecutors lacked the willingness to investigate soldiers
because of a real fear of reprisals if military officials were found guilty.
Read More: http://www.infid.be/military_immunity.htm.
TNI's Halfhearted Reform: http://www.infid.be/military_halfhearted.htm
Source: JP 20/03
Indonesia sets up agency to clean up military business
The Indonesian government has formed an agency to take over the management of
businesses run by the powerful armed forces (TNI), and clean them up. Said Didu, the
secretary to the minister for state enterprises, was quoted by the Detikcom online
news service as saying that the government has set up the TNI Business
Transformation Management Agency.
"This managing agency will take over all TNI businesses," said Didu, who heads a
government team supervising the clean up of military businesses.
The businesses -- ranging from airlines to logging companies -- are a legacy of the
more than three decades of rule by autocratic former president Suharto, when the
armed forces wielded enormous influence over civil affairs. Didu said that the agency
would scrutinise each of the businesses to first verify whether they involved state
assets. The enterprises would then be transformed to comply with existing laws and
regulations. He did not provide details such as who would be involved in the agency
and what its structure would be.
Detikcom also quoted the defence ministry's secretary general, Sjafrie Sjamsoeddin,
as saying that the move was part of the military's ongoing reform.
"TNI has confirmed its readiness (for reforms) to hand over all of its inventory to the
government," Sjamsoeddin said.
Source: AFP 02/03
General News
RI-UK to establish a joint forum
Indonesia and Britain have agreed to establish a joint forum to reduce
misunderstandings between the West and Islam and seek peaceful solutions to
possible areas of conflict. The idea for the proposed Indonesia-United Kingdom
Islamic Advisory Group was announced during British Prime Minister Tony Blair's visit
on March 30.
The prime minister is the first British premier to visit Indonesia since Margaret
Thatcher in 1985. Blair said a close British relationship with Indonesia was of
fundamental importance because the country was the world's most-populous Muslim
nation.
Blair said he would closely work with President Susilo Bambang Yudhoyono to
ensure the forum would be effective. Yudhoyono said the exchange would help build a
peaceful prosperous future for the West and Islam.
Indonesian Ambassador to Britain Marty Natalegawa said the foreign ministries of the
two countries would take immediate steps to set up the forum, the members of which
would likely include Indonesian Muslim scholars who took part in an earlier discussion
with Blair and Yudhoyono.
Blair said he was confident the forum would facilitate interfaith dialog and would bring
about greater understanding between the governments and peoples of different faiths
in the two countries. Din Syamsuddin, the chairman of Muhammadiyah, Indonesia's
second-largest Muslim group, said important ideas came from Blair's discussion with
Islamic clerics. Joining Din in the discussion with Yudhoyono and Blair were noted
cleric Abdullah Gymnastiar, Syarif Hidayatullah State Islamic University (UIN) rector
Azyumardi Azra, senior lecturer Nazaruddin Umar and former religious affairs minister
Quraish Shihab.
Source: JP 31/03
Aceh
Acehnese unsure peace will last: Poll
Six months after the government and Free Aceh Movement (GAM) signed a peace
deal, the Acehnese say they are feeling more secure but many still worry the accord
could break down at any time, a survey says. The poll of 1,015 people in Aceh this
month by the Indonesian Survey Institute (LSI) revealed that 76 percent of the sample
rated the security situation in Aceh from good to excellent.
Nearly 90 percent of those surveyed also rated the performance of the Aceh
Monitoring Mission (AMM) and the Indonesian government in keeping the peace from
good and excellent. But while security got top marks, the Acehnese were far more
downbeat about their living standards. Around 76 percent said life had gotten tougher
since the peace deal, blaming the government for the soaring prices of basic
commodities and high unemployment.
Most Acehnese are also still afraid to talk about politics, especially those living in
areas which were former GAM strongholds. And more than half said they were still
afraid of being arrested for no reason by security forces, while around 50 percent were
unsure if GAM had given up its secessionist ambitions.
Asked about the planned regional elections for the province, 43 percent of Acehnese
said they were not aware of any direct elections, with the lack of knowledge highest in
rural areas. However, a clear majority of 67 percent of those surveyed supported the
establishment of local political parties, and 64 percent backed the idea of fielding
independent candidates for gubernatorial and regional posts. In traditional GAM areas,
about half the population worried they would be coerced into voting for particular
candidates.
LSI chief researcher Anis Baswedan said the survey showed peace in Aceh was
currently about "the absence of conflict" rather than "the presence of freedom" or
justice.
Source: JP 29/03
Papua
Papuans get visa despite Jakarta appeal
Australia has granted temporary visas to all but one of a boatload of asylum seekers
from the Indonesian province of Papua, despite Jakarta's calls for them to be sent
back. Australian Immigration Minister Amanda Vanstone said 42 of the 43 Papuans
who landed at Cape York in January have received temporary protection visas (TPV)
and will be relocated from Christmas Island to Melbourne.
The 36 adults and seven children, who spent five days at sea before arriving on Cape
York, have accused the Indonesian military of conducting genocide in their homeland.
Indonesian President Susilo Bambang Yudhoyono earlier phoned Australian Prime
Minister John Howard, saying the group should not be given political asylum and
should be returned to Indonesia. He gave an assurance they would not be prosecuted.
Indonesia has strongly criticized the decision to grant temporary protection visas,
warning the move could harm bilateral relations.
Read more: http://www.infid.be/papua_visa_condemn.htm.
Related news:
Indonesian agency reports Papuan group angry over Australia visa row:
http://www.infid.be/papua_asylum.htm.
Source: APP 23/03
Papua on brink of more violence: report
Indonesia's restive Papua is on the brink of another surge in violence with the
province's fledgling representative body in danger of imminent collapse, a new report
has warned. Under special autonomy laws meant to provide indigenous Papuans with
more power over their own affairs, Indonesia's government last October agreed to set
up a special council drawn from tribal leaders, religious groups and public figures. The
Papuan People's Council, established after years of delay, was meant to provide a
buffer to rule from distant Jakarta, helping dampen the grievances of Papuan
separatists.
But after demonstrators beat and stoned to death five members of the security forces
at a protest against a US-owned gold mine on March 16, a new report by the
International Crisis Group (ICG) warns the five-month-old council is now in danger of
collapse. Australian Crisis Group analyst Francesca Lawe-Davies said last week's
riots in Jayapura against the giant US-owned Freeport gold and copper mine
highlighted the fragile state of the council. Lawe-Davies said the council, known as the
Majelis Rakyat Papua, or MRP, was the most representative body yet to emerge in
Papua. Sidney Jones, Crisis Group's South-East Asia Director, said if the council was
allowed to fail, separatist sentiment in Papua would only intensify.
Read More: http://www.infid.be/papua_brink.htm.
The National Intelligence Agency (BIN) has accused non-government organisations
(NGOs) of sponsoring the bloody incident in Abepura, West Papua. But NGOs are
pointing the finger at conflicts over the provision of security businesses by the TNI
(Indonesian military) and national police (Polri).
Read more: http://www.infid.be/papua_riot_kontras.htm.
Related articles:
Papua: Halfhearted Autonomy: http://www.infid.be/papua_halfhearted.htm.
An Appeal to Indonesia Concerning Papua: http://www.infid.be/papua_appeal.htm.
Papuan Decry Govt's Attitude: http://www.infid.be/papua_decry.htm.
Stopping political elite from meddling in mining:
http://www.infid.be/papua_stopping.htm.
Probable reasons for the violence in Papua: http://www.infid.be/papua_reasons.htm.
Mine hits deep seam of Papua unrest: http://www.infid.be/papua_mine.htm.
Papuan protests planned to help independence cause: Indonesia:
http://www.infid.be/papua_protest_planned.htm.
Source: TA 23/03, INS 23/03
Abbreviations
AA Asia Pulse/Antara
AFP Agence France-Presse
AP Associated Press
APP Australia Associated Press
BI Bisnis Indonesia
INS Indoleft News Service
JP The Jakarta Post
TA The Age
TI Tempo Interactive
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