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Indonesian Government Asks for Virus Not to be Abused by WHO

2008-03-04T23:35:00.003+07:00

The Indonesian government has received a guarantee that the 15 bird flu virus (H5N1) samples that have been sent to the World Health Organization (WHO) were only to be examined for risk assessment, as to whether the virus is resistant to oseltamivir or not.

“Before the virus was sent, we already had the risk assessment guarantee letter,” said Siti Fadilah Supari, Health Minister, at her residence, Jalan Denpasar, Kuningan, Jakarta, two days ago (1/3).

According to Minister Siti, the bird flu virus samples were sent along with the material transfer agreement (MTA) that the government proposed be signed by the WHO.

If the WHO is willing to sign it, then the government will send more virus samples.

“Otherwise, the government will struggle again,” said Minister Siti.
According to her, the dispatch was a test as to whether the WHO will approve the MTA or not.

In December 2006, the government stopped sending bird flu virus samples.

This policy was taken to prevent multinational companies from using Indonesian virus samples to develop vaccines with a high sales price.

Minister Siti said that with the MTA, the bird flu virus sample dispatch mechanism is more transparent and fair in terms of responsibility towards the virus sending country.

The government's desire to change the mechanism, according to her, is not only useful for bird flu cases but also other diseases.

Under the old mechanism, virus samples were prone to be misused and
could therefore spread again in Indonesia and cause a new cases.

This is because the bird flu virus spread in Indonesia is inappropriate with epidemiology.

“This needs a great deal of attention,” said Minister Siti.

With the new mechanism, she said, the government has tried to overcome the large number of bird flu case in Indonesia.

“With transparency, what ever the virus is used for can be known,” said Minister Siti.

C.A. Nidom, Head of the Avian Influenza Tropical Disease Center Laboratory at Airlangga University, supported the government's measure to start sending bird flu virus samples.

According to him, the government needs to prioritize the bird flu handling in the country instead of fighting for the right in the MTA process at the WHO.

“What we're facing are human lives and the world's community,” said Nidom when contacted yesterday (2/3).

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source :
Margahayu Land
http://margahayuland.blogspot.com/2008/03/indonesian-government-asks-for-virus.html

Abu Dujana Admits Keeping Weapons

2008-03-04T23:35:00.001+07:00

Abu Dujana, the defendant in the alleged terrorism case, admitted keeping weapons and explosives. According to him, the weapons were the remains of the conflict in Ambon, Maluku. “There was an M-16 and a few broken pistols,” said Abu Dujana, answering Wahjono, the chairman of the panel of judges at the South Jakarta District Court, yesterday (3/3).

Despite admitting possessing weapons, none were bought by him. The agenda of the trial yesterday was hearing defendant Abu Dujana's statement.

Abu Dujana was charged by terrorism as possessing, keeping and distributing firearms and explosives. Abu, arrested on June 9, 2007 in Banyumas, Central Java, was charged with Article 9 of the Anti-terrorism Decree. In addition, he was charged with Article 17 of the Anti-terrorism Decree regarding his involvement in terrorism cooperation.

At the trial Abu Dujana a.k.a. Ainul Bahri, denied some of the investigation results in the deposition. According to Abu, his health at that time very much affected his statement he gave to the investigators. A gunshot wound in his left thigh, he said, made him so that he could not concentrate. “The wound on my leg made me tired, dizzy and nauseous,” he said.

Abu also recounted having participated in war training between 1999-2000 in the Philippines, then in Afganistan in 1989. He also acknowledged being acquainted with Noor Din M. Top, the most wanted terrorist fugitive. However, he said, how he knew Noor Din was not like what is written in the deposition, as if they were solidly cooperating in a terror

After hearing the defendant's statement, the trial was resumed by the agenda by reading the charge. The panel of judges' chairman, Wahjono, asked the prosecutor to prepare the charge against Abu Dujana in the trial in the next two weeks.

After the trial, the public prosecutor Narendra Jatna, said Abu Dujana's explanation in the trial this time was his right as a defendant. According to Narendra, the defendant also has the right of objection. However, Narendra believed Abu Dujana only denied certain matters that did not influence his charge of terrorism . “For instance, admitting to keeping firearms and explosives and meeting Noor Din M. Top,” said Narendra.

Asludin Hatjani, a member of Abu Dujana's legal team, did not comment much. She said she would just wait for the charge announcement.

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source :
Margahayu Land
http://margahayuland.blogspot.com/2008/03/abu-dujana-admits-keeping-weapons.html

European Union's Aviation Data Not Complete

2007-07-25T12:57:00.000+07:00

The European Union Commission has not yet the latest and complete data about Indonesian airlines. The data what the Commission asked for before auditing in Indonesia.
According to Transportation Minister, Jusman Syafii Djamal, Europe's side acknowledged it did not have all the data. “The proof is even Garuda Indonesia was regarded as an unknown airline,” he said in Tangerang yesterday (23/7).

He said he was astonished as the data on Indonesia’s aviation by the European Union (EU) was in fact incomplete. This is despite the fact that so far the relationship between Europe and Garuda Indonesia has been going well, for example via Lufthansa or KLM--Dutch airlines.

The request of Indonesian aviation data was related to Europe’s team plan to audit Indonesian aviation. The audit was the Indonesian government's demand to for reviewing the ban against Indonesian airlines from flying to Europe since July 6.

Jusman said Europe's requesting the aviation data was conveyed via facsimile addressed to the Transportation Department on July 22. The letter also conveyed Europe's willingness to come to Indonesia to perform a direct audit.

In addition to the latest data on Indonesian airlines, the Commission asked for the data of the national airlines blueprint , strategic action, implementation deadlines and national aviation authority improvement .

Bambang S. Ervan, Head of the Transportation Department's Public Communication Center, said that the European team will be represented by the European Aviation Safety Agency (EASA). “ They sent a contact person, that is EASA Executive Director Patrick Goudou,” he said. It is estimated that the European team will arrive at the beginning of August.

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tempo

Australia's Howard defends Indonesia terror warning

2007-07-10T17:18:00.000+07:00

Australia's Prime Minister John Howard on Monday defended warnings from his government that a terrorist attack in Indonesia may be imminent, despite there being no direct intelligence that the chances of a strike had increased.

The Foreign Affairs Department reissued a travel advisory to Indonesia on Sunday, warning Australians to rethink travel to the Southeast Asian country because of the threat of terrorist attacks. The advisory did not raise the threat level for attacks.

Foreign Minister Alexander Downer said Sunday the advisory was reissued because of the June 9 arrest in Indonesia of Abu Dujana, an alleged leader of terrorist group Jemaah Islamiyah, and that a terrorist attack "could be imminent."

Jemaah Islamiyah is blamed for several attacks against Western targets in Indonesia over the lastfew years, including two bombings on the resort island of Bali in 2002 and 2005.

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jakarta post

Indonesia Pushes Automotive Market to Australia

2007-06-28T08:40:00.001+07:00

Indonesia will push the automotive market in free trade area (FTA) cooperation with Australia.

The automotive sector is being pushed in order to reduce the trade deficit with Australia, which totals US$1 billion.

“If we can enter FTA, it is expected that automotive sector will become part of the regional production network,” said Mari E. Pangestu, Trade Minister, Wednesday (27/6).

By becoming a part of the regional production network, said Mari, the national industry will have the opportunity to be tutored by Australian and Japanese companies.

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tempo

Gus Dur backs legislators intention to interpellate govt over UNSC resolution

2007-06-24T12:10:00.000+07:00

Former president Abdurrahman Wahid alias Gus Dur said he supported the intention of 120 House of Representatives (DPR) members to exercise their interpellation right over the government`s support to the United Nations Security Council (UNSC) resolution to tighten sanctions on Iran over its uranium enrichment program.

"I back their (lawmakers`) intention to exercise their interpellation right over SBY`s (the president`s) stand in supporting the UNSC resolution on Iran because we have so far always supported Iran`s peaceful nuclear program," Gus Dur told reporters here on Tuesday.

Gus Dur said that so far, the president, the People`s Consultative Assembly (MPR), the House of Representatives (DPR), the Regional Representatives Council (DPD) and the people of Indonesia in general had been supporting Iran`s nuclear program for peaceful purposes.

Therefore, the lawmakers are proposing to exercise their rights to the interpellation over the president`s stand.

According to Gus Dur, the interpellation could be continued with impeachment if the president was proven to have violated the law. After all, Indonesia adopted a free and active foreign policy.

"Therefore, legislators are pleasing to go ahead with their interpellation because there are indications the government is committing more and more violations," Gus Dur said.

Meanwhile, a DPR member of the National Awakening Party (PKB) faction, Effendy Choirie, said a written proposal for the exercise of the interpellation right over the government`s support to the UNSC resolution on Iran was now circulating among House members and was already signed by 74 legislators. The number was expected to increase in the coming days, he said.

On March 24, fifteen members of the United Nations Security Council, including Indonesia, unanimously agreed to tighten sanctions on Iran after it refused to stop its uranium enrichment program.

They agreed to impose a ban on arms sales and expand a freeze on Iranian assets in response to the country`s uranium-enrichment activities which Tehran says are for peaceful purposes but which other countries contend are driven by military ambitions.

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GusDur.Net

Small Communities See Big Future In Teak

2007-06-18T15:28:00.000+07:00

CIFOR headquarters in Bogor was proud host to several major forestry organisations from May 28 - May 30. The reason for the presence on campus was the launch of a new Australian supported initiative to develop profitable smallholder teak plantations in Indonesia.

Known as ‘Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia’ and funded by ACIAR (the Australian Centre for International Agricultural Research) the project's key objectives include:

* Introducing and adapting silvicultural technologies that improve returns for smallholder teak producers
* Identifying and designing financing schemes that provide incentives for smallholder participation in profitable teak production
* Enhancing market access by smallholder teak producers
* Identifying disincentives in policies and regulations in relation to farm management, marketing and financing, as well as making recommendations to improve policies.

Principal partners at the inception meeting included:

* World Agroforestry Center (ICRAF)
* Forestry Research and Development Agency (FORDA) of the Indonesia Ministry of Forestry
* International Center for Applied Finance & Economics (InterCAFE) - Bogor Agricultural University
* School of Resources, Environment and Society - Australian National University (ANU)
* Farm Forestry Consortium (Pokja Hutan Rakyat Lestari)
* Local Tree Grower Cooperative.

A representative from the one of the project’s districts in Yogyakarta, Gunung Kidul, also attended the meeting, as well as participants from WWF-Indonesia and the Ministry of Cooperatives and Small & Medium Scale Enterprises.

The project leader and FORDA secondee, Dede Rohadi, says the project partners examined a range of issues during the three day meeting. These included reviewing lessons learned from past projects that explored similar issues, refining project methodologies, and confirming impact evaluation strategies.

As the project's commissioning partner, CIFOR also ensured the meeting clarified operational issues and strengthened commitments among the project team members in relation to their roles and responsibilities. The first multi-stakeholder meeting at the district level will be organised in late July.

Teak production and furniture manufacturing is a major industry in Java, Indonesia. Logs and sawn timber sales accounted for more than 680,000 m3 of teak valued at nearly AUD $115 million in 2001. In one district alone, Jepara, more than 15,000 factories depend on teak to survive. There are already approximately 1.5 million households in Indonesia growing teak, mostly on degraded land.

But production from the large-scale plantations appears to be in early decline. This is why small-scale producers are important. And ultimately the project aims to help them develop their skills in engaging with the more formal and established teak industry and thereby ensure sustainable supplies of this highly-prized timber.

CIFOR's scientist, Ms. Ani Adiwinata Nawir, who initiated the project with ICRAF’s James Roshetko, says the project will identify and help alleviate the impediments that prevent smallholders from greater industry involvement.

‘There’s a lot of potential for smallholders to feed Indonesia’s timber demand,’ says Nawir, ‘But there are obstacles preventing smallholder teak plantations from succeeding as well as they should. Some of these are poor silvicultural techniques, limited access to credit or capital, limited market knowledge and access, and unfavourable timber regulation policies.’

According to Roshetko, ‘Poor silvicultural techniques often lead to low quality timber and can be difficult for smallholders to improve because of their lack of capital to invest in teak planting. Or they are unable to wait the optimal teak rotation period before having to cut down their trees to get some cash.”

Smallholders also accept prices that are often well below market rates. This is generally due to their limited access to markets, limited market information and inability to resolve transaction costs. Further, government policies -- which have been traditionally designed for large-scale timber production – can restrict the small scale producer.

Given the above issues, a comprehensive, inter-disciplinary approach is required, tackling issues of silviculture, financing, marketing and policy simultaneously. The project will take an action research approach in which project partners improve their understanding of smallholder forestry, as well as its constraints and the measures for overcomingthem.

According to CIFOR’s impact assessment specialist, David Raitzer, the ACIAR project has the potential to generate produce significant long-term livelihood benefits, as smallholder teak can generate substantial income if properly managed. By helping to ensure proper management thorough its focus on silvicultural treatments, financing schemes and marketing, the project may generate AUD $112 million in benefits over 30 years.

Further information:

* For information about the project please email
Dede Rohadi (d.rohadi@cgiar.org).

ACIAR Project Inception Meeting - Improving Economic Outcomes for Smallholders Growing Teak in Agroforestry System in Indonesia.

Information about project stakeholders

* ACIAR: www.aciar.gov.au
* ICRAF: www.worldagroforestrycentre.org
* RI Ministry of Forestry: www.dephut.go.id
* International Center for Applied Finance and Economics
* SRES ANU
* Bogor Agricultural University: www.ipb.ac.id/
* Farm Forestry Consortium
* Yogyakarta District of Gunung Kidul: http://www.gunungkidulkab.go.id/
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cifor

DPR Asked to Evaluate Tangguh Gas Price

2007-06-15T11:40:00.000+07:00

The House of representatives (DPR) has been asked to form a special team to investigate the liquefied natural gas (LNG) sales contract from Tangguh gas field in Papua.

The price of Tangguh gas overseas is regarded as cheaper compared to that of domestic gas sales.

Effendi Situmorang, an oil industry observer, said that the team was aimed at researching and probing the contract and sales price of Tangguh gas.

The special team, he said, comprises DPR members, government officials and the Supreme Audit Agency (BPK).

“The purpose of forming the team is to take responsibility as regards whether the 20-year gas sales contract will result in benefit or loss for the state,” he told Tempo yesterday (13/6).

According to Effendi, the Tangguh gas sales price, US$3.5 per mmBtu on average, is the lowest price in the history of Indonesia's LNG sales.

“LNG price from Tangguh is lower than gas price in domestic market, which is above US$4 per mmBtu on average,” said the former Pertamina's Director of Production Sharing Management (now the Upstream Oil and Gas Executing Body or BPH Migas).

He explained that now the State Electricity Company's (PLN) power plants buy gas at prices above US$4 per mmBtu on average.

Moreover, Tangguh gas sales price can cause price discrimination in LNG from Arun gas field in Aceh and Badak gas field in East Kalimantan.

“Up to now Japan buys LNG from Indonesia at between US$7 and US$8 per mmBtu on average,” said Effendi.

Purnomo Yusgiantoro, Energy and Mineral Resources Minister, disagreed that Tangguh gas sales price was too cheap.

His reason was that the US$3.5 per mmBtu price is the export price (free on board).

“When the goods reach the destination, the price can reach US$7 to US$9,” he told Nieke Indrietta from Tempo.

Purnomo went on to say that around 50 percent of Tangguh's LNG for Sempra is also transferred to other contract to gain a better price.

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source

Humpuss To Issue US$400 Million In Bonds

2007-06-15T11:38:00.001+07:00

PT Humpuss Intermoda Transportasi Tbk. plans to issue bonds worth US$400 million to purchase five ships this year. Earlier, this company that runs a sea transportation business planned to obtain a banking loan to fund its expansion.

Agus Darjanto, President Director of Humpuss Intermoda, said that based on analysis the company has carried out, it had been decided not to obtain a banking loan.

“If we borrow from banks, there is little ‘room to move,’ despite us needing a large amount,” he said after holding a press conference following Annual and Extraordinary General Meetings of Shareholders in Jakarta yesterday (13/6).

Agus said the bonds that will be issued comprise of senior debt amounting to US$350 million with eight year period and junior debt of US$50 million with five year period.

The funds will be the sources of the company's expenditure up until to 2010.

He went on to say that after purchasing the new ships, the company plans to continue securing the company's assets in order to look for new loans.

The funds, said Agus, will be used for refinancing all the company's debts, including bond obligations.
Humpuss has allocated US$159.6 million (around Rp1.4 trillion) to purchase five new ships.

According to Agus, the five ships consist of Panamax ships and chemical tank ships.

As regards Panamax, those we are aiming at are that like the ships of Malaysia, Thailand, Japan and Korea,” he said.
In terms of chemical tank ships, the targets are 13,000 dead weight tons (DWT) ships.

The purpose is to meet the international market segment.

Earlier, Sapto Basuki, Humpuss Intermoda's Corporate Secretary, said that some of the funds for purchasing will be gained from the sales of two oil tank ships whose contract terms have ended and are worth US$36 million (Rp316 billion).

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source

European Commission and Japan Grant US$15 Million for Bird Flu

2007-06-13T18:57:00.001+07:00

The European Union and the Japanese government have given grants amounting to US$10 million and US$5 million respectively for handling the bird flu virus in Indonesia.

The grants were announced during a meeting between the Indonesian government and the donor countries at the “ HPAI in Indonesia: Latest Situation and Future Steps to Control H5N1 Virus” as the theme, at the Gran Melia Hotel, Jakarta, today (13/6).

“The spread of bird flu virus in Indonesia is sporadic and doesn't show any certain pattern. The war against this virus must be applied in all directions, especially as regards animals as the source of infection,” said Bayu Krisnamurthi, Head of the National Team for Bird Flu Handling and Readiness to Face Pandemic Influenza (Komnas FBPI).

It is planned that the grants will be used for supporting activities such as vaccine quality, socialization of fowl vaccination, vaccination officer training, access to vaccine storage and vaccine procurement.

The grants will be divided, for the Agriculture Department US$9.56 million and the remainder for the Komnas FBPI for many activities.

The time to use the grants is between July, 2007 and July, 2009.

Many activities to handle bird flu on animals have been prepared.

However, Musny Suatmojo, Director of Animal Health at the Agriculture Department, refused to give the details.

“Now it's being discussed in the meeting. Tomorrow there'll be certainties as regards the activity details,” he said.

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source

Newmont's Lawsuit Against New York Times Postponed

2007-06-13T18:56:00.000+07:00

The panel of judges at the Central Jakarta District Court postponed the civil claim of PT Newmont Minahasa Raya's President Director, Richard Bruce Ness, against The New York Times newspaper, yesterday (11/6).

The reason is, during the trial headed by judge Heru Pramono, only Newmont's legal adviser, Arief Surowidjojo, was present. As from The New York Times, the side was absent. “The trial is adjouned for a week,” said Heru, closing the trial.

In the lawsuit, Ness regarded The New York Times as having contained the article that defamed his reputation and assassinated his character. The articles were written by the reporter Jane Perlez and were published three times: September 9, 2004; September 24, 2004 and October 7, 2004.

Ness, in his lawsuit, says that the news of The New York Times and several other media of its subsidiaries such as the International Herald Tribune and The Boston Globe, has caused Newmont to suffer loss as what was printed was not true.

The New York Times along with reporter Jane Perlez, contained articles with such headings as, “Spurred by Illness, Indonesians Lash Out at U.S. Mining Giant” on September 9, 2004 and “Gold Mining Company to Pay Indonesia $30 million” on February 17, 2006.

Ness wanted the recovery of his reputation and apology to be published as a first-page story in the newspapers and all media subsidiaries of The New York Times and www.nytimes.com website. He also asked The New York Times to pay immaterial compensation amounting to US$63.930 million.

Richard Bruce Ness was acquitted by the Manado District Court on April 26, 2007. As PT Newmont's President Director, Ness was found not guilty in environmental pollution in the Buyat Bay area.
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source

BI Rate Down by 25 Base Points

2007-06-08T12:30:00.003+07:00

At a meeting of the Bank Indonesia (BI) Governors Board on Thursday (7/6), it was decided to lower the BI rate once again, this time by 25 base points to 8.50 percent from the previous 8.75 percent.

Budi Mulya, BI's Director of Strategic Planning and Public Relations, said that the lowering of the BI rate was based on consideration of the prospects of this year's inflation target of six plus-minus one percent and next year's five plus-minus one percent.

“The decrease was also following our in depth study of the latest economic and financial developments,” he said in Jakarta.

He went on to say that in general, the economy will still continue with a more balanced pattern.

This is reflected in the economic growth target of 5.7 percent, higher than BI's initial projection.

In addition, the Rupiah exchange rate in May also strengthened from an average Rp9.093 against the US dollar in April to Rp8.838 against the US dollar in May, 2007.

“May's inflation was also still maintained.”

Core inflation was recorded at 5.62 percent year on year, the lowest rate in the last six years.

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source

Sarwono Awaits Constitutional Court's Decision

2007-06-08T12:30:00.001+07:00

Jakarta Gubernatorial candidate, Sarwono Kusumaatmadja, acknowledged he could not register as gubernatorial candidate because he was not supported by a political party.

“I can't register anymore,” said Sarwono after attending the material review trial of the Regional Governance Decree at the Constitutional Court, today (7/6).

Now he is waiting for the decision of the Constitutional Court which is still in the middle of its Regional Governance Decree judicial review.

“Because I chose the independent lane,” said Sarwono.

The former Maritime Affairs and Fisheries Minister acknowledged the experts' statement during the Regional Governance Decree judicial review that there should be an opportunity for independent candidates to become regional leaders.

“A non-party lane is in fact needed,” said Sarwono.
He then made an analogy of his candidacy as the Regional Representatives Assembly (DPD) member.

At that time Sarwono did not need to have support from any political party in order to become a DPD member.

“I was elected by the people without going through any political lane,” he said.

The Jakarta Governor Election entered the last day today for the registration of gubernatorial candidates and the deputies at the Regional Election Commission (KPUD) Jakarta.

However, so far there has not been any candidate pairing who have registered at the KPUD.

As already reported, the pair of Sarwono and Jeffry who was previously put forth by the National Mandate Party (PAN) and the National Awakening Party (PKB) have canceled their participation in the Jakarta Governor Election because they did not have 15 percent of the votes of the Provincial Legislative Council (DPRD).
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Former Rose Team Commander Wants Judicial Review of Human Rights Court Law

2007-06-07T16:15:00.000+07:00

Former “Rose Team” Commander, Major (retired) Bambang Kristiono, filed a proposal for s judicial review of the Human Rights Court Decree at the Constitutional Court, yesterday (5/6).

Bambang, via his attorney Mahendradatta, asked the Court to correct Article 43 Point 2 of the Decree No. 26/2006.

“Bambang is worried because the articles can lead him being scrutinized again by the ad hoc Human Rights Court,” said Mahendradatta at the Constitutional Court, yesterday.

Bambang is a former Army Infantry Major who was Battalion 42 Commander Group 4 of Special Force Command (Kopassus) and concurrently “Rose Team” commander.

“Rose Team”was the team involved in kidnapping and making activists disappear by force cases of in 1997-1998.

Bambang was sentenced to 20 months imprisonment by the Supreme Military Court in 2000 and was also dismissed from the Army because of the case.

Mahendratta said Article 43 Point 2 of the law states that the ad hoc Human Rights Court was formed based on the House of Representatives' (DPR) suggestion with the President's decision.

The article's explanation states that the ad hoc Human Rights Court was formed after the House deemed there had been a severe human rights violation during a certain event in a certain time and place prior to the Human Rights Decree being effective.

According to him Mahendratta in the activists kidnapping case, the Human Rights National Commission sent a letter to the House on December 27, 2006, and Bambang's name is in the letter.

The letter states that Bambang can be asked for statement as regards activists kidnapping cases.

“The nebis in idem principle may not be valid for our client,” said Mahendratta.

The trial began with preliminary questioning by the panel of judges led by judge H.A.S. Natabaya.

Constitutional judge Natabaya asked the applicant which constitutional right of him that was infringed due to the decree.

He asked the applicant to strengthen the legal standing of the judicial review.

“The constitutional loss suffered by the applicant is not clear,” he said.

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source

Tax Directorate General Oversees Indosat Tax Problem

2007-06-07T16:14:00.001+07:00

The Tax Directorate General has acknowledged that there has been a decrease in the tax deposits from PT Indosat Tbk.'s revenues during the last couple of years.

However, tax officials have not yet carried out an investigation as there are not any indications of tax manipulations by Indosat, in which Singapore Technologies (ST) Telemedia owns the majority shares.

“We've collected the dossiers but they are insufficient as there must be indications of (tax) manipulation,” said Darmin Nasution, Tax Director General, Jakarta yesterday (5/6).

Signals of the state's losses due to Indosat's tax income and dividend shortfalls amounting to around Rp323 billion were brought up by Dradjad H. Wibowo, a member of the House's Banking and Finance Commission.

According to him, the potential income tax losses are Rp196 billion, the potential loss of revenue from dividends Rp65 billion and the potential loss of income tax from dividends Rp62 billion.

The losses were due to Indosat's mismanagement in carrying out derivative transactions.

Darmin asked that Indosat's tax manipulation allegation not to be taken for granted as it must be proved first.

“It's really a loss or a manipulation. Those must be differed. If it's a loss, we (Tax Directorate Genera) can't do anything. But the Capital Market Supervisory Board (Bapepam) might,” he said.

Wong Heang Tuck, PT Indosat Tbk.'s Finance Director, stated he was ready to be checked by Bapepam regarding Indosat's loss and tax deposit potential loss due to derivative transactions.

However, he denied that the losses were because of mismanagement or foreign currency speculation activities.

“Moreover, derivative transactions are not against tax rules,” he said after the nnual General Shareholders' Meeting (AGM) in Jakarta yesterday.

According to him, Indosat's derivative transactions were included in the financial statement submitted to Bapepam and the United States Security and Exchange Commission (SEC).

Indosat will continue carrying out derivative transactions until the end of Indosat's Dollar bonds I and II issuing terms.

“Indosat has the obligation of hedging at least 50 percent of the total long-term debt obligation.”

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source

Government Prepares CPO Export Duty Increase

2007-06-06T16:09:00.002+07:00

The government will monitor the development of cooking oil price before increasing the export duty on crude palm oil (CPO) export duty.

CPO and cooking oil producers are regarded as not yet having been optimum in terms of market operations.

“If (the ideal cooking oil price) isn't reached, we'll certainly implement (the export duty increase0” said Boediono, Coordinating Minister for the Economy, in Jakarta yesterday (5/6).

Earlier, the government had threatened that it would the raise export duty, which has been 1.5 percent up until now.

This is stated in an agreement between the government and producers that if by June 1, 2007, cooking oil prices have not reached an ideal price of between Rp6,500 and Rp6,800 per kilogram.

However, the price stabilization program, which has been carried out since March, has not yet been successful in decreasing cooking oil prices.

Currently, cooking oil prices are still between Rp8,000 and Rp9,000 per kilogram.

The government planned to implement the domestic market obligation (DMO) policy if cooking oil prices remain high.

According to Boediono, CPO producers are not yet optimum in carrying out market operations (procuring the product in markets).

This is seen from the high CPO export volume, uncontrolled domestic supply and high cooking oil prices.
“Due to increasing CPO prices abroad, we want the players in the business to hold more effective market operations,” he said.

CPO producers circle stated they are ready to procure 150,000 tons for cooking oil price stabilization program this June.

“We're ready to procure 150,000 tons. All producers are committed that the price stabilization program in June will lower prices,” said Akmaludin Hasibuan, General Chairman of the Indonesian Palm Oil Businesspeople Association, when contacted in Jakarta yesterday.

Benny Wahyudi, Director General of Agriculture and Chemical at the Industry Department, said the government will increase export duty and implement DMO policy in July, after the price stabilization program evaluation in June.

Unsuccessful price stabilization program in May was because a lot of suppliers didn't fulfill the procurement commitment,” he said.

Out of the commitment to procure 97,000 tons of CPO, around 35,000 tons had not been realized.

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source

Foreign Languages on Radio to be Regulated

2007-06-06T16:09:00.001+07:00

The Indonesian Broadcasting Commission (KPI) will regulate the use of foreign languages in radio programs.

This is because up to now no such regulation has yet been made.

Currently, the government only regulates the use of foreign languages on television.

M. Izzul Muslimin, a KPI member, said that there were possibilities that the use of foreign languages in radio programs will be the same as for television, that is 30 percent.

“However, perhaps there will be special criteria for radio stations that broadcast programs in foreign languages, for instance Indonesian radio programs specially broadcasted,” said Izzul yesterday (5/6).

It is expected that the regulation will be completed soon and that it does not deviate from the material in the Broadcasting Decree.

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Entrepreneurs Push for Fuel Oil Tax to be Abolished

2007-06-05T09:40:00.001+07:00

Industry players hope that the government is serious in responding the proposal to abolish the industry fuel oil value-added tax (VAT) of 10 percent per liter.

The proposal for the fuel oil tax abolition was in response to the possibility of fuel oil price hikes in line with the increase of the Mid Oil Platts Singapore (MOPS) rate.

“Fuel oil price hikes would clearly put pressure on the industry's position. Therefore, we need policy alternatives to help smoothen the industry's cash flow,” said Thomas Darmawan, Head of Food and Beverages Businesspeople Association Chairman, yesterday (3/6).
On June 1, 2007 Pertamina increased fuel prices.

Diesel is up five percent from the previous level of Rp5.522 per liter to Rp5.797 per liter.

Pertamina increased the price in accordance to the price standard in Singapore of between 2.9 and 12.0 percent compared to the previous period.

The abolition of industry fuel oil tax, said Thomas, would not lower the state's revenues.

The reason for this is that 10 percent VAT will be imposed on ready-goods products.

“With production being smoother, the amount of production goods and the government's VAT will also increase,” said Thomas.

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New Economic Policy Package Being Prepared

2007-06-05T09:38:00.000+07:00

The government will cut the time it takes to issue a business license to 30 days from the previous 197 days.

This decision is one of the policies included in a new economic package that will be launched in a few days’ time.

This package is a development of the economic package that was issued last year.

Boediono, Coordinating Minister for the Economy, explained there are four important points in the package.

These are: investment climate improvement, infrastructure development, financial sector repair and small- and medium-scale enterprise (SME) development.

“In terms of investment climate, there is a reduction in the time involved in processing business licenses,” said Boediono during the Investor Forum II in Jakarta yesterday (30/5).

The Gadjah Mada University (UGM) Economy Faculty Professor emphasized that this economic package was better compared to the previous one, especially in terms of regulations, license processing and taxes.

Financial and non-bank sectors, such as capital market and insurance, will also be improved.

Unlike the previous package, the new one will also discuss SMEs.

M. Ikhsan, a special member of staff of the Coordinating Minister for the Economy, said that previously SME development was discussed in separate package.

However, this time the government will discuss it in one package.

M. S. Hidayat, Head of the Indonesian Chamber of Trade and Industry (Kadin), said he hoped that the new economic package would be more concrete and could be realistically implemented.

“If the government has issued policies, it must be ready to realize them,” Hidayat when contacted by Tempo yesterday.

He also he hoped that the economic package was not like the previous one, which was only a concept.

On the occasion, Boediono also focused on the flow of funds in the capital market.

According to him, flow of funds in the capital market must not always be separated from the real sector.

He cited the State Debt Securities (SUN) and Bank Indonesia Certificate (SBI) trade transactions.

Funds withdrawn by the government from these bonds trades were used for infrastructure development.

Boediono also said there was no need to worry about the capital market's fund flow reversal trend.

The reason for this was because Indonesia's current economic system was already more prepared compared to the time of the economic crisis in 1997.

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Maximum Campaign Fund Donation of Rp1 Billion per Person

2007-06-04T10:43:00.002+07:00

The government has proposed increases in the maximum limit for campaign fund donations from a person, a group and an enterprise in the
next presidential election.

A person may donate a maximum of Rp1 billion, while a group and enterprise Rp5 billion.

This is included in the President and Vice President Election Bill proposed by the government to the House of Representatives (DPR), last Friday.

These limits are higher compared to the provisions in the 2004 President Election Decree when the maximum individual donation was Rp100 million and an enterprise Rp750 million.

Didik Supriyanto, a member of 2004 General Election Supervisory Committee, said he supported the increase of maximum donation amounts.

However, Didik also said he believed that the limits in the government's proposal were too high.

“This in fact allows a person to buy a candidate and a party. Don't be too contrasting with the previous regulation,” he said when contacted yesterday (30/5).

However the maximum limits must also be supported by transparency of campaign fund accounting.

According to Didik, the law must regulate public access in terms of funds transferred to campaign accounts and candidate pairing campaign fund audit results.

However, the House Commission of Governance Deputy Chairman, Priyo Budisantoro, said he considered tit not necessary for he technical provision of campaign funds to be included in the law.

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New Economic Policy Package Being Prepared

2007-06-04T10:43:00.001+07:00

Crude Palm Oil Policy to be Effective from June 1

2007-05-30T16:36:00.003+07:00

Crude palm oil (CPO) producers are to be obligated to set aside some of their products for domestic needs.

The domestic market obligation (DPO) policy will come into effect as from June 1, 2007.

“The DPO implementation is a mandate of the State Decree on Plantations,” said Anton Apriyantono, Agriculture Minister, after accepting bird flu vaccine aid from Chinese government at the Agriculture Department building, Jakarta, yesterday (29/5).

“(The implementation provision) is the Agriculture Minister Decision for a start,” he said

Anton explained that for the time being, the DMO policy was being implemented in order to fulfil domestic cooking oil needs because cooking oil is one of the nine staple household goods.

Therefore, CPO stocks are prioritized for domestic needs.

“It's unfortunate (for producers) if the price abroad is high, but we limit it here,” said Anton.

On the other side, in order to secure domestic stocks, the government cannot determine the price.

“We still leave the price to the market mechanism,” said Anton.

Regarding the CPO quota per producer, he went on to say it will be determined later with the Industry and Trade Departments.

“It can't be set by us alone,” said Anton

What is certain is the minimum limit being calculated based on the company's tax payment and amount shipped abroad.

Anton said that the DMO policy is effective even for companies associated with Malaysia.

Fahmi Idris, the Industry Minister, instead stated that the DMO policy for fulfilling domestic palm oil need will be effective by the end of the month.

He explained domestic CPO needs reach 4.5 million tons per year.

“So the obligation (DMO) amount is between 4.5 million to 5 million tons per year,” he said, on Monday (28/5) at the Vice President's office, Jakarta.

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Prosecutor Rejects Australian Expert Witness’ Statement

2007-05-30T16:36:00.001+07:00

The public prosecutor in the review trial of the illegal drugs case involving Australian citizens--Tan Duc Tan Nguyen, Si Yi Chen and Matthew James Norman—has rejected an expert witness from Australia.

According to prosecutor Olopan Nainggolan at the Denpasar District Court, yesterday (29/5), the statement of Professor James R.P. Ogloff from Monash University was considered not to be relevant with the trial materials.

In his statement, Oglof said that during the last 30 years the number of countries which still implement death penalty continues to decrease.

The prosecutor also objected to the statement because the permit from the Australian Justice Minister for Ogloff was only sent by e-mail the print-out of which was not submitted during the trial.

The convicts' lawyer, Erwin Siregar, stated he brought a copy of Australian Supreme Court's statement that explained about Ogloff's whereabouts.

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MoU Must be Reviewed, Indonesian Workers in Malaysia Suffering Losses

2007-05-29T10:13:00.003+07:00

A number of Indonesian migrant workers activists have asked the government to review the Memorandum of Understanding (MoU) with Malaysia signed in Bali in 2006.

The agreement is regarded as being detrimental to Indonesian citizens working as migrant labors.

Miftah, Chairperson of the Indonesian Migrant Workers Association, said that under the MoU, employers were allowed to seize employees’ passports.

This was despite passports being individual identities which cannot be held by anybody except police and immigration officers.

“But the government easily gives permission that passport is submitted to employers or agents in Malaysia,” Miftah told Tempo yesterday (27/5).

The policy that allows employers to hold passports, said Miftah, actually triggered the large number of trafficking cases.

It is not surprising therefore that the rights of Indonesian workers in that country are often violated.

For example, torture, unpaid salary, prohibition to marry at work place and impediments to meet family members.

“All are human rights violations,” said Miftah.
Anis Hidayah, Executive Director of Migrant Care, questioned the deportation policy carried out by Malaysia.

According to Anis, a lot of Indonesian workers are to be deported due to the wrong recruitment system in Indonesia.

“Indonesia should have been able to struggle to remove the deportation option, and fight for legalization. The documents are legalized because the laborers there actually already have jobs.”

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Tangguh Field's Gas for America Can Be Transferred to Other Buyer

2007-05-29T10:13:00.001+07:00

The sales of some liquefied natural gas (LNG) from Tangguh gas field, Papua, to Sempra, United States, can be transferred to another buyer.

The transfer will be carried out if the LNG sales price is higher than that of Sempra’s.

Eddy Purwanto, Deputy of Marketing and Finance at the Upstream Oil and Natural Gas Business Executing Body, emphasized that the gas transfer from Sempra can be done to any other buyer.

“As long as the sales price is better than Sempra’s,” he told Tempo last weekend.

Based on information received by Tempo, gas sold to Sempra will be transferred to a buyer from Japan.
The reason is, Sempra's LNG facility was built quicker than first planned, in mid 2008.

Sempra signed Tangguh's 20 year gas purchase contract for a volume of 3.7 million tons at the price of US$5.94 per mmBtu.

Eddy went on to say, that the transfer of gas that was bought by Sempra to another buyer has compensations.

“Sempra will obtain certain compensations,” he said.

However, when asked whether the compensation was a penalty that the government must pay, Eddy did not give any answer.

Kurtubi, an oil and gas observer, said that the Tangguh gas sales price, which is under the average gas sales price from Badak refinery in East Kalimantan, will not result in any revenues for the state.

This is because, he said, with investment totaling US$6.5 million and the revenues totaling only US$8.5 billion for 25 years, all revenues are only sufficient to cover the investment costs.

“So what does the state obtain?” he said to Tempo.

Currently, the gas sales contract amounts to 2.6 million tons to Fujian, China for 25 years, with an average price of US$3.35 per mmBtu.

The contract with SK Power Korea amounts to 0.55 million tons for 20 years with US$3.5 per mmBtu sales price.

The contract with Posco Korea 0.55 million tons for 20 years with US$3.36 per mmBtu sales price and Sempra (West Coast, US) 3.7 million tons for 20 years with US$5.94 per mmBtu sales price.

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Supreme Court Annuls Mystic Programs Provision

2007-05-25T13:02:00.002+07:00

The Supreme Court has passed the judicial review proposed by the Association of Indonesian Private Television Stations (ATVSI) against the Indonesian Broadcasting Commission's (KPI) decision on the broadcasting performance guide and broadcasting program standard.

KPI must revoke the provisions, including mystic and pornographic television programs.

ATVSI Chairperson Karni Ilyas acknowledged having received the Supreme Court's decision recently.

“It was already sent to the Association's office this afternoon (yesterday). It was only the summary, the details will follow,” she said when contacted by Tempo yesterday (23/5).

In the decision, the Supreme Court gives three month time for KPI to revoke the letter no. 009/SK/KPI/8/2004.

If within three months the letter is not revoked, the provision will not have any legal force.

According to Karni, actually from the aspect of content, the association agrees with KPI provision.

“We agree that programs with mystic and porn nuance must in fact be limited,” he said.

According to him, the association's claim is more because KPI made the provision earlier than the government.

“In addition, KPI regulates the sanctions. Through the sanction is already regulated in the Broadcasting Decree,” he said.

In article 57 of the decision, for example, factual programs with occult, paranormal and black magic themes may only be broadcasted between 10pm and 3am.

The sanctions stated in article 77 are the forms of written notice, program temporary halt, duration
limitation, fines, freezing television program, turning down license extension up to television station's license revocation.

These sanctions are what the association considered as too heavy.

KPI acknowledged it will study the Supreme Court's decision.

According to KPI member, Don Bosco Selamun, the provision they made for all television stations including TVRI (state-owned television station), is normal.

“Because KPI is given the job in the Broadcasting Decree to protect the society from violence, pornography, sadism and mysticism,” he said.

According to Don Bosco, this KPI provision is different from ATVSI's code of ethics.

“ATVSI's code of ethics are valid for the internal, KPI's decision is general,” he said.
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World Health Assembly Grants Indonesia's Demand

2007-05-25T13:02:00.001+07:00

The World Health Assembly, during the 60th meeting in Geneva, Swiss, granted Indonesia's request for a more transparent mechanism as regards sending bird flu virus samples.

Because of this, developed countries will no longer be able to take advantage of poor countries attacked by bird flu.

“The resolution will bind all members of the World Health Organization (WHO),” wrote I Nyoman Kandun, Director General of Disease Control and Environmental Improvement at the Health Department, in a short message to Tempo yesterday (23/5).

Earlier, Indonesia refused to send H5N1 virus samples to the WHO's collaboration laboratory.

The reason for this is the virus, that must be given freely by infected countries, will later be used for research, including for producing bird flu vaccines.

The problem is, the vaccine made by developed countries will then be sold at an expensive price to the infected countries.

“Bird flu virus is provided free from developing countries, but medicinal companies take on a patent on the vaccines and sell it at an expensive price,” said Health Minister Siti Fadilah Supari.

According to Kandun, in the future the resolution will be followed up with cooperation among governments and among divisions.

The cooperation is aimed at revising the term of reference and documents on virus shipping.

“Virus shipping must be done transparently, responsibly and beneficially for all sides in maintaining the world's health,” he said.

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Indonesia: Market for China's Export Product Remainders

2007-05-24T12:15:00.000+07:00

Indonesian domestic product industries are losing the competition against China's imported goods in the domestic market.

The goods from China which enter Indonesia are export remainders.

Cyrillus Harinowo, BCA's Independent Commissioner, said most of China's goods in Indonesia are export goods remainders.

“So the prices are much cheaper,” he said during the “Dragons at Your Door: China's Position in the World Trade Course and How Indonesian Entrepreneurs Response China's Excellence” discussion yesterday (21/5).

Almost all of Chinese exports to Indonesia are export product remainders sold at a very low price.

It is estimated that Chinese products that enter Indonesia amount to 10 percent of China's total exports.

Cyrillus asked that domestic producers make goods which can compete with China-made products.

This is because tariff and non-tariff impediments for restraining the export goods remainders are also not effective.

“It's difficult to face such goods,” said Cyrillus.
Imposing a 100 percent import duty, he said, would not influence the abundance of Chinese products.

The reason for this is that Chinese products will still be cheaper than the normal prices on the international market.

Cyrillus suggested that producers group together to produce medium quality products in order to face the invasion of Chinese products.

This is because Indonesia can export more natural resources products especially energy source and agriculture products that China does not have.

The University of Indonesia's Chinese Study Center Head, Ignasius Wibowo, said that productivity of workers in China is very high, so China can produce cheap products.

“No bureaucracy impediments and production costs are much cheaper. China has managed to build industrial centers,” he said.

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World Bank Supports Freedom of Information Bill

2007-05-24T12:13:00.000+07:00

The public being ably to access easily information from governmental institutions is considered as one of the important factors in advancing corruption eradication.
This was conveyed by World Bank communication officer, Ahmad Sukarsono.

“Indonesia already has good instruments for corruption eradication, but without public open access, i believe corruption eradication will be more difficult,” said Ahmad during the Workshop of Access to Obtain Information and Good Governance in Indonesia at Le Meridien Hotel, Jakarta, Tuesday (22/5).

According to Ahmad, the Freedom to Obtain Public Information (KMIP) Bill which is being discussed by the House of Representatives (DPR) will be the oxygen for corruption cases in Indonesia.

World Bank as a financial organization which often provides loans, supports this KMIP Bill being passed.

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Medicine Prices in Indonesia Extremely High

2007-05-23T10:09:00.001+07:00

The public buys medicine with a price that is actually higher than the standard price. This fact is rarely realized because the medicines are needed and the consumers are not given an option to use other medicines.

“Patients are often deceived,” said the Head of Indonesian Health Consumers Empowerment Foundation, Marius Widjajarta, in Jakarta yesterday (21/5).

According to Marius, the foundation he is leading has carried out a survey in 25 hospitals in Indonesia. The result is the costs expended by patients for medical devices and medicines reach 60 to 70 percent of the total cost. “This isn't natural. Patients should only spend 30 percent of the total cost for buying medicines,” he said.

Marius assumed that the ruse against patients is practiced by pharmaceutical companies and doctors who give the prescription. Pharmaceutical companies set a high price for medicines they produce. “The difference can be 200 percent of the generic medicines price,” he said.

It is very rare that patients refuse a prescription given by a doctor. In the meantime, doctors have a motive that patients buy the medicines they recommend. “Pharmaceutical companies give commissions to doctors. The commission is a reward as the doctors prescribe the medicines they produce,” said Marius.

This sham actually does not have to happen if the government's role in monitoring the labeling of medicines runs well. The government must also issue a regulation to determine the price of branded medicines.

Director General of Pharmaceutical Service and Medical Device Improvement at the Health Department, Richard Panjaitan, said that the government does not have the authority to determine the prices of branded medicines.

The government is only authorized to determine the prices of generic medicines to be consumed by the public. “For determining medicine’s price, a law is necessary. Now the draft is being composed by us,” he said.

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AGO Reopens BPPC Case

2007-05-23T10:08:00.000+07:00

The Attorney General's Office (AGO) will once again investigate the alleged corruption of the Coordination Body and Clove Marketing (BPPC) which involved Hutomo Mandala Putra a.k.a. Tommy Suharto. The investigation is the AGO's priority as it is considered as the case with the fastest verification process compared to the other Tommy's cases.

“The order to begin investigation was issued on May 7,” said Director of Criminal Act Investigation, Muhammad Salim, yesterday (21/5).

Salim explained that the indications of corruption in the BPPC case are strong. He said these include the requirement that BPPC did not carry out as regulated by the Presidential Instruction No. 1/1992. However, he did not explain it further.

Salim also stressed he will examine all sides related to BPPC, including the former Main Village Unit Cooperative Chairman, Nurdin Khalid. The AGO team, he said, is formulating the role of the main cooperative chairman.

AGO's Civil Director, Yoseph Suardi Sabda, said the alleged corruption in BPPC can be made as a means of disbursing Tommy Suharto's money in Banque Nationale de Paris (BNP) Paribas of the Guernsey branch by the Indonesian government. If the investigation states Tommy's money must be seized, Yoseph believes that the money in Guernsey can be used to pay the compensation. The disbursement can be done through the civil and criminal procedure.

Tommy's lawyer, O.C. Kaligis, is of the opinion that AGO's measure is only a manipulation and seems to be forced. “The main purpose is only the verification of the Guernsey trial,” said Kaligis when contacted by Tempo.

A member of the Indonesian Corruption Watch (ICW) working body, Adnan Topan, is optimistic about the AGO's scenario. “The case hasn't expired. AGO can even name Tommy as a suspect,” he said.

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“England Must Oversee Origins of Oil Palm”

2007-05-21T16:47:00.000+07:00

England, as the biggest palm oil importer in the world after the Netherlands, must set up tight regulations on the origins of palm oil, which is to be a bio-fuel base commodity. This is because the development of a palm oil estate is closely related to deforestation and the orangutan slaughtering.

“We hope that the palm oil plantation will not destroy forests or habitats,” said Director of the Centre for Orangutan Protection (COP), Hardi Baktiantoro, during a rally in front of the British Embassy, Wednesday (16/5). In the rally, four COP activists wore the uniform of plantation officers and carried orangutan puppets, also fuel jerry cans.

Throughout 2006, said Hardi, the rescue team from the Forestry Department and the Nyarumenteng Orangutan Reintroduction Center, Central Kalimantan, managed to save 368 orangutans from a number of palm oil plantations. The plantation workers generally consider orangutans as pests as they eat palm oil leaves. They also chase orangutans from palm oil plantations. As a result, orangutans lose its habitats, water and food sources.

“This cruelty is a violation against the Decree No. 5/1990 on Natural Resources and Ecosystem Conservation. The perpetrators could face five year imprisonment or Rp100 million fine,” he said.

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tempo

Producers Lower CPO Sales Price

2007-05-18T08:32:00.000+07:00

The producers of crude palm oil (CPO) lowered the sales price at the factory level to Rp6,100 per kilogram starting yesterday (14/5). On Friday (11/5), the CPO sales price was Rp6,500 per kilogram.

By the decrease of the CPO sales price at factory level, it is expected that the price of cooking oil can decline to between Rp6,500 and Rp6,800 per kilogram, as expected by the government. The national average retail price of cooking oil is still Rp7,900 per kilogram.

This was an agreement between the government and CPO and cooking oil producers during the cooking oil price evaluation meeting at the Trade Department yesterday.

In the agreement in early May with the producers, the Trade Department threatened it will impose sanctions in the form of a hike in CPO export levies if producers could not lower the cooking oil price to Rp6,500-Rp6,800 on June 1.

Industry Minister, Fahmi Idris, said that producers were ready to supply between 100,000 and 150,000 tons of CPO to Java and outside Java. “As much as 80 percent goes to Java,” said Fahmi after the meeting.

Director General of Agriculture Products Marketing and Processing at the Agriculture Department, Djoko Said Damardjati, said yesterday that producers who are not in the Indonesian Palm Oil Entrepreneurs Association were also willing to provide 10,000 tons of additional CPO, which only awaits the approval of company leaders in Malaysia.

The price of cooking oil up to last weekend in several regions was still high.

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tempo

Some State Officials Do Not Pay Tax

2007-05-18T08:31:00.000+07:00

The Tax Directorate General revealed several names of state officials who have not paid tax or submitted the Yearly Information (SPT) of Tax. “They also don't have a personal tax number (NPWP),” Tax Director General Darmin Nasution told reporters in Jakarta, yesterday (14/5).

Although he has pocketed the names, he refused to explain the identities of state officials who did not pay tax. He was also reluctant to give the details of institutions or departments of the officials who did not report their tax obligation by the Tax SPT because he will first report the cases to President Susilo Bambang Yudhoyono.

Regarding the names of civil officials of echelon IV up to I who neither have NPWP nor submitted Tax SPT, they will be reported to the respective ministry or state institutions. “This is a part of tax intensification to optimize the state revenue,” he said.

A House member, Andi Rahmat, said that the signals of state officials not paying tax have already been there a long time and this could happen. However, there is a possibility that the officials did not intend to break the law or avoid the obligation to pay tax.

The State officials generally have NPWPs. The problem is, he said, they are not accustomd to filling out Tax SPT. “Perhaps many ministers don't know how to fill out Tax SPT,” he said while mentioning that he already filled out his Tax SPT.

Therefore, he said that the Tax Directorate General must intensify the campaign of self assessment of tax much more. “Everybody must have an NPWP, especially those whose income exceeds the income that is tax-free,” he said.

He was sorry that Indonesia does not have a solid system yet like European countries which already implemented NPWP ownership. “In Europe, even people who want to make a call must show his or her NPWP, so they comply with the tax system,” he said.

He still supports the publication of the tax embezzlers. “The Tax Directorate General's findings must be revealed soon so that people feel the obligation to pay tax.”

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tempo

Tax Officials to Hunt Down Sukanto Tanoto

2007-05-18T08:30:00.000+07:00

The Tax Directorate General at the Finance Department will concentrate on hunting down the main players in the Asian Agri Group tax embezzlement case, including the company's owner Sukanto Tanoto and the other shareholders.

Mochamad Tjiptardjo, Director of Tax Intelligence and Investigation at the Finance Department's Tax Directorate General, did not deny the possibility that the Asian Agri's owner could be legally charged.

”If there is proof, then why not? This is already classified as a criminal case,” said Tjiptardjo in Jakarta yesterday (15/5).

“The numbers of the suspects and the amount of the state's losses may increase,” he said

When asked the same question, whether or not the Tax Directorate General would also hunt down Sukanto Tanoto, on a separate occasion, Finance Minister Sri Mulyani Indrawati said, “We'll see how the Tax Directorate General handles the case. But clearly, the government will chase after payment of all the tax debts plus the fines.”

On Monday (14/5), the Tax Directorate General already stated that five Asian Agri Group directors were suspects of tax embezzlement. The five persons' initials are LA, WT, ST, TNK and AN.

Asian Agri is the second biggest holding company in the Grup Raja Garuda Mas – a company owned by Sukanto Tanoto, Indonesia's richest person in 2006 according to Forbes magazine.

According to Tjiptardjo, 18 members of the Tax Directorate General investigation team are working domestically and abroad to search for new findings in the case.

The legal base being used to charge the embezzlers, including those who asked for the manipulation to be carried out, he said, was Decree No. 16/2000 on Tax General Provisions and Procedures.

So far, according to him, the case development was only as far as the involvement of the five Asian Agri directors.

Signs regard new suspects have not yet been reached at this level of the investigation.

It is so far estimated that the state's losses amount to Rp786.3 billion, or around 30 percent from the total funds marked-up by the company which reached Rp2.62 trillion, but this amount could rise.

According to M. Salim, Director of the Attorney General's Office Investigators, the AGO is still analyzing public complaints about Asian Agri’s alleged corruption and tax embezzlement practices.

“We just received the reports last week,” said Salim.

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tempo

Bappenas Reviews Foreign Loan Agreement Clause

2007-05-12T08:37:00.000+07:00

The National Development Planning Agency (Bappenas) will review the clauses in the foreign loan agreement document.

According to the State Minister for National Development Planning, Paskah Suzetta, so far there is not any room for the government to change the current clauses in the foreign loan agreement document. The government could only agree upon the foreign loan agreement document. “Of course this has the potential to cause unfairness for debtor countries (Indonesia),” he said in Jakarta yesterday (10/5).

The composition of the foreign loan agreement document is a crucial phase. During this phase, he said, there must be a mastery of many substances such as financial and legal. “The two aspects are important prerequisites in the negotiation process,” he said.

So that the negotiation agreement is beneficial for Indonesia, the government will compose a guide of negotiations and composition of foreign loan agreement documents. The guide is aimed at making sure the bargaining positions of the government and the donors are equal. As a result, the relation between debtor and creditor is beneficial for each and this reduces the interest of one side. “The guide must be accompanied by the increase of the negotiators' ability,” said Paskah.

On Wednesday (9/5), Bappenas' Director of Development Funding Monitoring and Evaluation, Benedictus Benny Setiawan said the requirements and grant program or loans are made only for the creditors' interest. This can happen because the diplomatic ability of Indonesians is still weak. However, now the government's bargaining position has increased so it can decide by itself the project priority or programs funded by grant or loan in line with the work and development agenda
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11 Japan Loan Bank Projects Delayed

2007-05-11T13:51:00.000+07:00

The National Development Planning Agency (Bappenas) has discovered that the realization of 11 infrastructure projects funded with loans from the Japan Bank for International Cooperation has been delayed.

“The delayed projects belong to the Public Works Department, the Transportation Department, Cipta Karya and Bina Marga,” Benedictus Benny Setiawan, Director of Development Funding Monitoring and Evaluation told Tempo at his office, Jakarta, yesterday (9/5).

Benny explained that the projects were delayed because of land acquisition and project procurement.

Four projects were delayed because of land acquisition problem, Batanghari Irrigation; North Java Corridor Flyover, Tanjung Priok Access Road and Double Double-Track.

The projects which were delayed by procurement are Lower Solo River Improvement, Komering Irrigation Project, PTSL for Water Resources Development and the Railway Electrification and Double Double-Track.

The projects' procurement was hampered due to land acquisition.

The Dumai Port project was delayed by the Indonesian Military (TNI) Navy’s quay demolition.

The problem was settled in the end of 2006, but the process must be accelerated because it is likely to not to be completed on schedule.

The Maritime Education and Training Improvement project is also not in accordance with schedule due to design alterations.

The constraints resulted in the absorption of loans being low.

Benny said that not all of the loans from the Japan Bank were absorbed.

The US$5.95 billion in loans from the Japan Bank is equivalent to 40.8 percent of the total foreign loans for infrastructure projects.

Funds from Japan Bank are allocated for 51 projects.
The delay in projects and fund absorption did not make the government pay commitment fee to Japan Bank.

However, infrastructure facilities cannot be enjoyed soon by the general public and economic costs have occurred.
“Roads were ruined due to high transportation cost,s so goods' prices are also high,” said Benny.
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tempo

Minimum 10 Percent Investment Growth Required

2007-05-10T08:08:00.000+07:00

The government needs investment growth to be 10 percent in order to catch up with the targeted non-oil and gas export growth of 14.5 percent.

Last year, investment growth was only three percent.
Mari Elka Pangestu, Trade Minister, said that investment growth was required in order to increase export growth.

“This year investment growth must be 10 percent, up from last year's three percent,” she said, on Monday (7/5).

She went on to say that the competitiveness of export products in the world market no longer faces the matter of lowest production cost anymore.

“But how to deliver goods quickly and at a low distribution cost,” said Mari.

In order to support investment and export growth, she said the government will prioritize the state budget for building infrastructure.

“Inefficient transportation and logistics are problems that must be solved,” she said Mari.

Muhammad S. Hidayat, Chairman if the Indonesian Chamber of Commerce and Industry (Kadin), acknowledged he was pessimistic about the target set by the government last week.

At that time, the Coordinating Minister for the Economy said that investment amounting to Rp1,180 trillion was needed to reach the economic growth target of 6.8 percent by 2008.

It is expected that most of the investment will come from the private sector because the government can only provide around Rp141 trillion.

“With such target, we can no longer do business as usual. The government must do concrete policies in order to improve investment climate,” Hidayat told Tempo.

According to him, without concrete policies, such as government regulations, presidential regulations,
ministerial regulations or other regulations which separate the authority between central and regional governments, the investment target will not be met.
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tempo

Banks Compelled to Implement International Standard Financial Statement

2007-05-09T16:58:00.000+07:00

Bank Indonesia (BI) will oblige banks to implement the International Financial Reporting Standards/IFRC) by 2010. The implementation of this international-scale international financial reporting standard will be carried out gradually starting next year. “The implementation is gradual, but in 2010 all banks must utilize it,” said Deputy BI Governor Siti Fadrijah in Jakarta yesterday (7/5).

The standard international financial statement are the accounting and reporting standards which are valid internationally. The financial standard accounting statement used by the Indonesian Accountants Association (IAI) is also based on the international provision.

The implementation of the standard international financial statement will influence the evaluation of companies’ or banks’ assets and liability. This affects both profit and loss. If the net difference is negative, the profit decreases automatically. Thus, he said, Bank Indonesia will analyze any concepts or components which will be included in the international standard financial statement analysis.

According to him, BI and IAI are also analyzing accounting standards which are to be included in the international financial statement component. “This (IFRS implementation) must be analyzed carefully so that it doesn't cause an upheaval.”

PT Bank Mandiri 's Director, Pahala N. Mansyuri, said that consistent IFRS implementation will benefit banks in the long term.

However, he is of the opinion that IFRS will face impediments if the international accounting standard component (IAS) 39 is included.
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tempo

President Yudhoyono Announces New Ministers

2007-05-08T08:31:00.000+07:00

President Susilo Bambang Yudhoyono announced several new ministers who will be in the United Indonesia Cabinet at 3.52pm WIB (Western Indonesian Time) in the Credential Room of Merdeka Palace, the Presidential Palace complex, Jakarta, Monday (7/5) .

The new ministers are not that different far from the recent media's reports, including Tempo.

They are Sofyan Djalil, State Minister for State-Owned Enterprises, replacing Sugiharto; Muhammad Nuh, Information and Communication Minister, replacing Sofyan Djalil.

Hendarman Supandji, Attorney General, replaceing Abdul Rahman Saleh; Hatta Radjasa, State Secretary, replaceingYusril Ihza Mahendra; and Andi Mattalata, Justice and Human Rights Minister, replacing Hamid Awaluddin.

The last is Lukman Edy, State Minister for Development of Disadvantaged Regions, replacing Syaifullah Yusuf.

Regarding Home Affairs Minister Mohamad Ma'ruf, now being treated in Singapore for illness, the President is still awaiting the health results from the Presidential Doctors Team and the Singaporean Doctors Team.

When he read out the new ministers' names, the President, wearing red batik and black trousers, was accompanied by Vice President Jusuf Kalla and Coordinating Minister for the Economy Boediono; Coordinating Minister for the People's Welfare Aburizal Bakrie and Coordinating Minister for Political and Security Affairs Widodo AS.

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tempo

BPK Asks BNI to Close London Branch

2007-05-07T11:44:00.000+07:00

The Head of the Supreme Audit Agency (BPK), Anwar Nasution, urged PT Bank Negara Indonesia (BNI) to close their branch office in London. “Just close the bank. It has been a source of problems,” said Anwar when handing over the BPK Examination Results Summary Semester II/2006 to the House of Representatives in Jakarta yesterday (3/5).

Based on the BPK audit into BNI London branch, he said in the last five years, between 2001 and 2005, the branch at the United Kingdom's capital only undermined the head office. For example, the placement of BNI’s foreign funds head office are loaned to foreign companies and caused stagnation of credit.

He said the monetary authority in UK has even asked the BNI London branch to close.

The former BI Deputy Senior Governor did not say in detail about BNI London branch's transactions that BPK considered as problematic. However, based on Tempo's analysis, BPK once questioned the deposit agreement between BNI London and Rio Tinto European Holdings with outstanding per 31 December, 2004 amounting to US$43.8 million. BPK also questioned the promissory notes purchase of Parmalat Participacoes Do Brasil Ltd amounting to US$2 million and SR Gent's credit facility with 13 million pound sterling outstanding.

BNI Managing Director, Sigit Pramono and BNI Secretary , Intan Abdams have not been able to ask for comments. Yesterday, when they were telephoned, Sigit said he was in a meeting.

However, in the BPK report, the Examination Result of Semester I/2006, BNI's board of directors explained, 'In line with the Commissioner's suggestion, we're now asking for a legal opinion based on Indonesian law regarding BNI position in the transaction and we can perform a legal risk assessment over the transaction. BNI London has been asked to stop the transaction with Rio Tinto and to study the termination of current contracts.”

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tempo

Deflation Increase Possibility of BI Rate Decrease

2007-05-04T09:50:00.000+07:00

It is possible that the Bank Indonesia's interest standard (BI Rate) will decrease due to deflation (goods and service's price decreases) last April.

It is estimated that by the end of the year, the BI Rate could reach 8.5 percent.

“The room for a BI Rate decrease is larger,” said Burhanuddin Abdullah, Bank Indonesia (BI Governor) in Jakarta yesterday (2/5).

Deflation, he said, also enlarged the possibility of reaching the inflation target of six percent plusor minus one percent.

“The possibility to reach the inflation target is larger,” he said.

On Tuesday (1/5) the Central Statistic Bureau (BPS) announced there was 0.16 deflation, better compared to in March which underwent inflation of 0.24 percent.

Of 45 cities surveyed by BPS, 30 cities or 66 percent underwent goods and service's price decreases, while the remainders underwent inflation.

The deflation was due to the decrease of prices shown by the decreasing index of food category (11.30 percent) and leisure and sports education (0.03 percent).

The causes of deflation include the drastic decrease of rice and red chili prices as also other vegetables.

In the State Budget 2007, the government targets annual inflation to be 6.5 percent while BI's target is six percent plus-minus one percent.

Currently, the BI Rate is at the level of nine percent.
During the meeting of Governors Board in early April, the central bank did not lower the interest standard as there was a threat of inflation.

Boediono, Coordinating Minister for the Economy, stressed that the deflation in April was extreme.y good agreeable because it strengthened the government's optimism in maintaining economic stability.

Therefore, the government will maintain the low inflation rate maximally in the following months.

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tempo

Cooking Oil Supply to be Increased

2007-05-02T17:37:00.000+07:00

The government and producers have agreed to supply an additional 100,000 tons of cooking oil per month to neutralize unbranded cooking oil in the market.

With this additional supply, the price of unbranded cooking oil target in the market will be between Rp6,300 and Rp6,800 per kilogram.

Currently, the price of unbranded cooking oil is between Rp7,000 and Rp8,000 per kilogram.

Trade Minister Mari Elka Pangestu said that the measure for the additional supply means annulling other options – export tax hikes and cooking oil price subsidies.

“The policy taken was not control over exports or export taxes, but we are trying the form of market operations,” she said after the meeting with oil palm producers association and cooking oil producers yesterday (1/5).

According to Mari, the producers who procure additional cooking oil do not acquire profit.

“However, they obtain cross-subsidies from the profit of exports,” she said.

The 100,000 tons additional cooking oil supply will be ongoing until national crude palm oil production increases.

“It is estimated that in June there will be production increase,” said Industry Minister Fahmi Idris.

The Indonesian Retail Entrepreneurs Association confirmed that so far there have not been any problems regarding cooking oil distribution.

It is estimated that the product's soaring price in the market recently was merely because of price rises at the factory and retail supplier levels.

“There isn't any problem in terms of supply. There are still suppliers, but indeed there were price rises from factories and suppliers,” said the association's chairman, Handaka Santosa, yesterday.

In order to slow down the cooking oil price rises, Handaka agreed upon market operations.

He is even ready to assign association members to hold market operations.

“If we're asked by the government, we'll do it. The association was once asked by the Indonesian Chamber of Commerce and Industry to hold market operations, and we did,” he said.

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tempo

Advertisement Regulation Violators Threatened with Multiple Sanctions

2007-05-02T17:35:00.000+07:00

The Information and Communication Minister Regulation on the Domestic Resources Usage for Advertisement Products Broadcast by Broadcasting Institution, is effective starting yesterday (1/5).

People who violate this new regulation are threatened with multiple sanctions.

Sofyan Djalil, Information and Communication Minister, said the regulation was issued in order to advance the domestic industry's and resources competitive power in broadcasting.

The regulation is in fact already included in the Article 46 Point 11 of the Decree No. 32/2006 on Broadcasting.
Unfortunately, the law does not explain in details about the definition of domestic resources.

As a result, a large number of advertising groups violated the law.

“In practice it’s extremely free,” said Sofyan in Jakarta yesterday (1/5).

According to Emmy Yuhasari, a member of Information and Communication Minister's expert staff, the use of local resources in the law is arranged from the process of production to post-production.

From the aspect of acting, the provision is effective for models, actors, supporting-actors, directors, creative directors, photography directors, lighting directors, production officers, camera persons, audio operators, production assistants, back sound operators and tele-cinema operators.

It is the same with on-line editors, off-line editors, effect editors, graphic artists, animation artists, musicians, music arrangers, effect persons, recording operators, technical advisers, stunt and audio as also visual 3-D special effect editors.

In the implementation, said Emmy, every advertising agency must sign a letter of statement that the advertisement has fulfilled the requirements.

The letter must be handed to television stations.
If anyone is found to have violated the requirements, Emmy said the government will impose multiple sanctions.

First, administrative sanctions that forbids broadcasting of the advertisement on television and radio station.
The agency will be charged under the falsehood article of the Criminal Code.

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tempo

Hilton Hotel Case: Seven Years’ Imprisonment Demanded for Pontjo and Ali Mazi

2007-04-30T09:05:00.000+07:00

The public prosecutors, led by Ali Mukartono, are demanding that the defendants Pontjo Wutowo and Ali Mazi in the Hilton Hotel case each receive seven years in prison.

The prosecutors viewed that the former President Director of PT Indobuildco – Hilton Hotel's management – and former Indobuildco's legal advisor were found to have committed corruption in the case of Hiton's building rights extension.

“The two defendants enriched themselves or the corporation so that the state's finance bore losses,” said prosecutor Ali when reading out the prosecution’s charges at the Central Jakarta District Court, yesterday (1/5).

According to the prosecutor, the two defendants broke the Decree of Corruption Criminal Acts Eradication for extending the Hilton's building rights without permission from Bung Karno Sports Center as the owner of Senayan area land management.

However, said the prosecutor, the status of the land where Hilton (now The Sultan) was erected has changed to be the land managed by the state.

“The defendants should have first obtained the appointment in the form of land use agreement from the management,” said the prosecutor.

In addition to seven year prison term, the prosecutor is demanding a fine to each defendant if Rp500 million or replacement penalty of six month detention.

The prosecutor also demanded the revocation of Indobuildco’s building rights.

In response to the prosecutors' charges, the two defendants did not comment.

After the trial, they kept silent.

However, the defendants' lawyers O.C. Kaligis (Ali Mazi's lawyers) and Frans Winata (Pontjo's lawyer) said they were disappointed.

Frans said he did not understand the prosecutors' charge that his client's action regarding extension request was categorized as corruption case.

“The legal scope is at the state administration or civil,” he said after the trial.