INFID, August 26, 2004
INFID's Short News Overview No.V/21: August 20-26, 2004
General News
2005 State Budget Draft
The 2005 State Budget Draft does not guarantee the fulfilment of people's basic rights
because the government put higher priority on government and personnel expenditures
and debt payments than public spending, INFID Executive Secretary Binny Buchori
said in a press conference on August 22.
Binny said that the government has neglected the sectors that really do matter for the
people like education and heath.
"More than 80% of the budget is allocated for government and personel expenditures,
while less than 15% is allocated for programs that are directly beneficial for the
people," Binny said.
Economists have said that the targets set by draft budget were unrealistic and driven
by political motives ahead of the runoff. Businesspeople have also expressed doubt
over the draft, saying the targets contained in the budget are unrealistic and could
harm investment.
"But what is more worrying is that the budget cannot give protection to the people,"
Binny said.
Infid and other organisations like JARI Indonesia, KIKIS, dan Koalisi Perempuan
Indonesia (Indonesian Women Coalition, KPI) reminded the government that there are
40 millions Indonesians unemployed, 100 millions live below the poverty line and that
its infant mortality rate of 307 is the highest in ASEAN countries.
These are examples of problems that the government should seek to solve, Binny
said.
Joint Press Release of INFID-JARI Indonesia-Kikis-KPI (in Indonesian) is available at:
http://www.infid.be/siaran%20pers%20bersama%20APBN%202005.pdf. (English
version will be available soon at http://www.infid.be/jointstatements.html).
2005 Budget 'Unrealistic': http://www.infid.be/state_budget_reports_2004.htm
Sources: BI 23/08, Republika 23/08, own sources
IFC to up investment on positive RI outlook
The International Finance Corporation (IFC), an investment arm of the World Bank,
plans to increase its investment in Indonesia, Southeast Asia's largest economy, on
optimism over the country's economic and political outlooks, a senior official said. IFC
country manager for Indonesia German A. Vegarra said the agency planed to invest
about US$210 million in Indonesia in the next fiscal year starting in June and $250
million in 2006, up from $150 million this year.
"We plan to raise our investment here due to the high economic growth predicted for
the next couple of years and a more stable political condition," Vegarra said during a
press conference on Aug. 25.
He said that aside from developing the country's small-and-medium enterprises and
the agricultural and mining sectors, the investment allocated for next year would go
mostly toward infrastructure, including power and water projects.
Since its founding in 1956, the IFC has committed more than $37 billion of its own
funds and arranged $22 billion in syndicated loans for 2,990 companies in 140
developing countries. The agency has invested about $2.5 billion in Indonesia overall,
making the country the sixth largest recipient of IFC funds.
Read further: http://www.infid.be/wb_ifc.htm.
Source: JP 26/08
NGOs fail to absorb basic issues at grass roots
Representatives of more than 200 non-governmental organizations (NGOs) began a
three-day national conference in Jakarta on Aug. 23 to discuss their roles in society
and address concerns that NGOs have failed to adapt to changes during the reform
era.
A panelist at the meeting, Asmara Nababan from Demos, an organization dealing with
democracy and human rights, said NGOs had failed to absorb the basic issues at the
grassroots level during the democratization era.
He also said NGO activists had failed to educate people about civil rights, including
political rights, leaving politicians to take charge of the issue. He said the result of this
was to turn the reform era into a "pseudodemocracy".
Read further at: http://www.infid.be/ngo_fail.htm.
Source: JP 24/08
Regional News
Aceh
August 21
Military spokesman Lt. Col. Asep Sapari said seven separatist rebels were killed on
August 19 -the day President Megawati Soekarnoputri was visiting the province- in
three separate operations.
August 23
Tjut Kafrawi, commander of rebel forces in eastern Aceh said Indonesia's 15-month
military offensive in Aceh has failed to crush the insurgency and left Indonesian forces
in a quagmire from which they cannot escape. He also pledged that the insurgents
would press on with their struggle for independence regardless of the outcome of the
upcoming presidential elections.
August 24
Army spokesman Lt. Col. Ahmad Yani Basuki said an Indonesian soldier serving in
Aceh opened fire on other troops at an army barracks, killing four and wounding one.
The soldier, whose name wasn't released, has been arrested and is undergoing
psychological tests, he said.
Sources: AFP 21/08, AP 23/08 24/08
Links
Paper: Indonesiens Demokratischer Weg
This paper "Indonesia's democratic journey" is a revised and extended version of a
presentation given at the conference "Indonesia - Democracy at its second attempt"
organised by Evangelisches Missionswerk in Suedwestdeutschland and the
Evangelische Akademie Arnoldshain in July 2004. The paper briefly highlights the
development of democracy in Indonesia since independence and then turns to an
assessment and interpretation of the recent elections and the state of
democratisation in Indonesia.
http://www.infid.be/INDONESIENS%20DEMOKRATISCHER%20WEG.pdf
Report on Death Penalty
Imparsial's report on the Death Penalty Policy in Indonesia: A long way to the
abolition of the death penalty in Indonesia: http://www.infid.be/death-penalty.pdf.
Abbreviations
AFP Agence France-Presse
AP Associated Press
BI Bisnis Indonesia
JP The Jakarta Post
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