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  Indonesian Law Update:

2006

[Desember 2006]

Indonesia will host the 2nd United Nations Anti-Corruption Conference. The conference will take place in November 2007, where Indonesia' agenda is to expand legal assistance cooperation and push harder countries of corruptor's heaven countries, such as Singapore, to cooperate better with Indonesia in returning corruptors and its corrupted wealth. According to a report, Indonesian corrupted money flew to Singapore are valued at USD 78 billions. 200 persons has been identified to be Indonesian bureaucrats and Indonesian-Chinese businessman.

Temasek facing Class Action for Monopoly of GSM Cellular Fee. The case are now on trial at the Fair Trade Competition Commission (KPPU), where Temasek and other 8 Singapore share ownership breach the Anti Monopoly Law 5/1999 of article 4 (oligopoly), 5 (fix price), 10 (boycott), 11 (kartel), 17 (monopoly), 19 (market leading), 22 (bid collusion), 27 (share dominancy). Once ruled, the Indonesian Telecommunication Regulation body will make further policy to empower the ruling, where it is likely the KPPU will annulled all the initial transaction of the share ownership. Temasek, a Government of Singapore owned-company has 41,9% shares of Indosat, 35% of Telkomsel and soon through a Malaysian special purpose company will own 16,81% shares of XL, three all of them are Indonesian major GSM cellular providers. The buying of Indosat' shares by Temasek in 2002 during Megawati' administration remain a controversy and is against the Indonesian Constitution, according to a big number of businessmen and law practitioners. Some also perceive, that Indonesian corruptors money are behind of all the transactions.

Indonesian Public Services at most Local Government, remain Corrupt. A research by an independent research institute for the Department of Government Officer Empowerment shows, that 27% of 1200 public respondents seeking for public services were illegally offered fast lane services in obtaining deeds & licenses, where in turn the people must bribe or pay illegal fees. 61% responded by accepting or else left with no choice but to wait for some uncertain time for formal public services. This is somewhat the President' Instruction no. 5/2004 (the Acceleration for Corruption Extermination) is aiming to combat at, where said officers are subject to corruption charges.

Indonesian Supreme Court overturned its Ruling to free a Suspect Terrorist. After years of sessions and trials, the said old person, a Principal of an Islamic Boarding School is then entitled by law to regain his good will after illegally detained for 2 years and treated inhuman by the Indonesian police officers. The lower court previously failed to prove his involvement in various terror attacks and terror networks on the Indonesian soil, based on declined witnesses and a star witness who happen to be in prison in the US but never appear before the judges, Al-Faruk. According to the universal teaching of criminal law, no witness/no evidence means no crime, and fictious witness is not in the book of law. The appeal court charged him for immigration violations only, last year. However, the Indonesian policemen remain fully confident on its position, but unable to prove. Lawyers of the said suspect are now preparing to sue a small number of policemen directly involved in the arrest, for its unprofessional conduct. The case has been a 'high level politic' commodity and wrongful, where foreign interests and pressure were clear, according to a number of eminent lawyers.

Indonesian Broadcaster Committee (KPI) released a blackbox of private TV Broadcaster Violations of Laws.  The set of recorded information are of violations made by a number of Indonesian television broadcaster, exposing adultery, abuse, coarse language, pornography and defamation/cornering  during allotted portion and time in the year 2006. This is also based on the community's reports and a number of NGO investigations. Soon in the year 2007, the Indonesian authority will make a prompt legal action towards the management, producers and the directors involved in the broadcasting. The aim are to protect the community from negative impacts based on a number of Indonesian laws and regulations. A number of Indonesian private television broadcaster is known owned by foreign investors, which lately are bankrupt.

Indonesian Constitution Court (MK) revoked article 53 of the Anti Corruption Law. Upon 10 article requested, MK only admit 1 of the article 53 of the establishment of the Anti Corruption Court. The article is considered weak in legal ground, but do not necessarily in contrary to the Indonesian Constitution. The MK then suggest the lawmaker to enact new laws to establish the said court within 3 years. The decision is made considering corruption is an extraordinary crime and the people's opinion.

ASEAN Accelerate its Cooperation. The XII ASEAN Conference at Cebu, the Philippines, stated that 3 pillars in economy, security and culture will be the basis to accelerate the cooperation, a re-statement of Bali 2003 Declaration by the ASEAN Member Countries. The meeting will also prepare for an ASEAN Charter, Convention on the Protection of Migrant Worker, Convention on the Acceleration Preparation ASEAN Community and Cebu Sharing and Caring Community.

KPK reinvestigates 30 out of 52 pending Corruption Cases of Bank Liquidity Support (BLBI) 1997.  The case involved new evidences of assets 'dismissal' by obligors during their debt settlement to the Indonesian Authority, the IBRA, during 2001-2005. A number of suspect from the involved obligors of private entities, IBRA's staffs, notaries and lawyers are now under serious investigation. KPK has the extended authority to investigate business fraud cases leading to public interest' loss and state financial loss. In relation to that, 3 of Indonesian high rank Central Bank officers was held responsible(duringthose time in 1997) and imprisoned for 2 and 3 years. On other BLBI cases, the Minister of Finance urge other 8 major fugitives obligors soon to pay their debts in cash, instead of assets. 6 obligors has previously surrendered. Their personal details has been published through televisions and gained positive community responses. Some of the fugitives, mostly are Indonesian Chinese businessman, stays in Singapore, China and Australia.

The Indonesian Constitution Supreme Court (MK) revoked some Criminal Code Articles. The three articles are of the Defamation towards the Head of State, which are against article 28 (f) of the Indonesian Constitution on the Right and Freedom of Expressions. 4 out of 9 Judges of the MK are of the opinion to dissent the said ruling. Other considerations are, the said articles stipulated during the Dutch Colonialism, historically to protect the Queens' good will and royal dignity. Ever since Indonesia' independence in 1945, big numbers of colonial laws has been annulled and new national law systems introduced. The MK also annulled the laws of Truth and Reconciliation.

Investment to Indonesia from Switzerland increased. The figure of 2005 to 2006 comparisons released from the Indonesian Investment Board, shows that Switzerland, Thailand, Malaysia and Italy increase of investment in Indonesia are of 1,637% (USD 447 millions), 528%, 401,4% (USD2,21 billion) and 102,88% ( USD 216 million), respectively. The decrease are from Japan and China of -61,13% and -43,22% respectively, which favor destinations are to Vietnam and Chine itself. On the other hand, KPK released the corruption index in Indonesia in 2006 is at 130 (out of 163 countries) compared to year 2005 at 143 (out of 158 countries).

Indonesian State Auditor Findings of Corruption at State Owned-Companies. The corrupted funds at 4 state owned-companies are of Rp 85,11 billion (equal to USD 9 million) and USD 4,23 million at Bank Negara Indonesia Pension Fund, 2 other insurance companies, and corruption during the procurement of choppers for state purposes. KPK soon will make further actions responding the reports.

[November 2006]

Indonesian ex Minister of Sea and Fisheries is Arrested for Corruption. The said minister is held responsible for illegal levies of 1% from the collected Rp15 billion (USD 1,7 million) from the municipals in 2004. The business partners private companies for the said program, is also arrested. This the third ex-ministers arrested and criminalized for corruption cases, where 5 other government projects' business partners from private entities are also involved, mostly imprisoned. Another illegal levies corruption case also under investigation by KPK toward the Indonesian ex Consul in Johor Baru, Malaysia in 2003. he was just arrested and held responsible for state financial loss of  USD 1,8 million.

Indonesia Plan to Extend its Continental Shelf. The extension from 200 sea miles to 350 sea miles from the coastline, is based on the proven of natural prolongation. Indonesia, as a archipelagic country under the UNCLOS (United Nations Convention on the Law of the Sea 1982, is entitled to propose it until 2009 to the CCIS - Commission on the Limits of the Continental Shelf), an organ of the UN. Three proposed areas are west of Aceh, south of NTT and north of Papua. The significant benefit of such extensions, are the right to explore economical rights. The Continental Shelf concept was introduced and accepted in the UNCLOS 1982 supported by archipelagic countries such as the United States, Chile and Indonesia, where territorial sea may be extended.

Government Officers, Slashed Down. This is the government of Indonesia's reform plan to reduce the current numbers of government officers from total 4 millions to 2 millions all over Indonesia, gradually. Around 160,000 retired annually, but the government will only recruit new staffs based on urgent necessity, to improve their quality and effectiveness based on integrity, moral and intelligence. In doing so, the government also support through a set of new bills of State Ministerial, of Public Services, of Government Ethics, of Government Administrative Law, and of Government Official Law.

Decrease of Consumption and Tax Payment. The statistic collected by various independent institutions shows that, there has been significant decreases during the year 2006 (until October) compared to 2005. These are for the national consumption for consumer goods, such as electronic goods (0.91% to 21.36% - compiled by the Data Electronics Marketer), luxurious cars (1.350 units in 2006 compared to 3.552 in 2005 - Daimler Chrysler Indonesia), cement for housing (25,852,739 tonnes in 2006 compared to 26,772,727 tonnes in 2005 - Indonesian Cement Association). The Jakarta Tax Office also reported the same decrease of paid taxes around 22,3% at 5 municipals in Jakarta - the Capital City, up to this 2006 tax year. It is expected the real values will resolve December this year.

Singapore Reluctant to Settle Money Laundering Cases for Indonesia. This is according to the update by the Chief of the Indonesian Center for Financial Transaction and Analysis Report (PPATK) Yunus Husein, where only 1 out of 4 proposed Memorandum of Understanding by Indonesia has been responded by Singapore, that is the Mutual Legal Assistance. Others are the Exchange of Information, Extradition and Criminal Exchange. Indonesia has successfully signed the same issues with other 15 countries, soon with Cayman Island, South Africa and Myanmar. Singapore is popular known the heaven for corruptors from the region, well-protected by the government. 

US-ASEAN to Cooperate in 8 Sectors in 2007. The Cooperation also pivoting 30 years of relations between both, a subsequent of plan action to implement Enhanced Partnership 2007-2011. 8 major sector will soon be implemented, such as good governance, combating corruption, IPR, SME's,  reducing HIV/other diseases, and cooperation in IT, communication, technology, energy, disaster management and environmental management.

Bill on Anti Human Trafficking, soon released. The said law of 207 articles will still need another 113 articles to be approved by the parliament, expecting completion end this year. According to the Indonesian Ministry of Woman Empowerment and Affairs, there are 480.000 Indonesian workers illegally recruited abroad, annually. The most illegal entreport are Bali and Batam, which also applied to illegal drugs and smuggling from and to Australia and Singapore.

President Director of PT Newmont Charged for Environmental Detrimental. The said person Richard Ness, an American, is charged for 3 years in prison plus fine of Rp500million (USD 55.000) and Rp 1 billion (USD 120,000). He is held responsible for serious environment detrimental in the area of Buyat Bay in Sulawesi, caused by disposal mercury and unorganic arsen 100 times beyond other bays during the operational of the PT Newmont Minahasa Raya (PT NMR) gold-mining company,. Such method of disposal has been banned in the US and that the company did not have the proper permit to dispose of its waste. The disposal has caused  villagers near the mine complained of tumors, skin rashes and dizziness. The court after at least 20 sessions ruled, that under the Indonesian corporate law, the chief or chairman of the company is held responsible for any company legal actions. Earlier, PT NMR has signed a good will agreement with the Indonesian Government to recover the environment and their strict liability responsibility under the environmental law, adopted internationally, where USD 12 million has been allocated by NMR and USD 30 million in the next 5 years. Newmont stopped mining in 2002 at the Sulawesi site, 2,000 kilometers (1,300 miles) northeast of the capital, Jakarta, after extracting all the gold it could, but kept processing ore there until Aug. 31, 2004, when the mine was permanently shut.

President Susilo Bambang Yudhoyono Establishes a Working Unit. The Presidential Working Unit of 5 major tasks are to accelerate reformation in law, investment, SMEs, bureaucracy administration and economy. The Unit composed of a number of eminent person having integrity, clean background, professional and commitment to progressive reformation, such as Marsilam Simanjuntak (ex General Attorney and State Secretary), Agus Widjojo (Ret. Army General) and Edwin Gerungan (ex Chairman of IBRA). The establishment based on a Presidential Decree, however built up controversies where this extra body is suspected to have more power to touch those the untouchable in corruption.

A Number of Indonesian Governors Stand  for Corruption Trial. The recent is the Governor of West Java Province for corruption in providing lands for the member of the local parliament in 2003 causing USD 3,75 million state loss, others are the Governor of East Kalimantan Province (4 years in jail) and his 24 year daughter (for nepotism and corruption in the daughter's private business in 2005). The other is the Governor for South Sulawesi Province, who previously happen to be a lawyer then charged for direct involvement in document falsification and other crime committed to of state land rights in Jakarta in 2004.  Based on the law 32/2004, the above active governors shall be temporary replaced by the deputies until the trial resume. Indonesia has 33 governors, where previously other 5 governors also face for trial corruption in 2004 only.

Indonesia become the member of UN ECOSOC. The said membership of the UN' organ, the Economic and Social Council, is for the 2 years term, supported by 184 out of 192 member during the United Nations' General Assembly meeting 2 November 2006.   Indonesia represent Asia region together with the Philippines, Iraq and Kazakhstan.

 

[October 2006]

18.000 Indonesians composed 1/3 richest man in Singapore. Their wealth are valued at USD 78 billions. 200 are identified to be Indonesian corruptors and Indonesian-Chinese businessman/bank criminals. The latter are the biggest contributors to the above numbers, such as Liem Sioe Liong and Eka Cipta Widjaja, both Indonesian conglomerates. Singapore adopts a tight banking policy regardless the money sources, where money laundering is also not the concern. According to this, three Singaporeans at Morgan Stanley, including a person awarded best economist in Asia by the Asia Money 2003, Andy Xie, were 'suggested' to resign from their job right after divulging sensitive information, where Andy Xie (of Morgan Stanley Dean Writer) stated that, Singapore played a 'significant role' as a money launderer for Indonesian corruptors and business criminals, especially Indonesian Chinese. Singapore' growth are also fake and unreal because are built on money laundering. His comments were made to respond IMF' meeting delegates comments in September 2006, that Singapore is a success model of globalization.

Indonesia elected to serve as Non-Permanent Members of the Security Council of the United Nations. The said election was supported by 158 out of 192 members of the General Assembly of the United Nations, where Indonesia represent from the Asia continent for the term of 1 January 2007 through 31 December 2008. Other countries elected are Belgium, Italy and South Africa.

Government Officers Must not Accept Parcels: a Policy. The said policy has been effectively implemented since 2004 under the President Susilo Bambang Yudhoyono' administration, where such policy are in order to avoid from indirect bribery or gratification from anyone towards government officers. This policy gained full support not only by the people, but also followed by the business community at large. The KPK this year implement a reverse paradigm, that parcels are given to the staffs and those the less fortunate.

Special Task Force to hunt for Indonesian Bank Criminals. Based on the success of past experiences in arresting Indonesian criminals abroad, the Indonesian government set up a special task force to hunt for 8 biggest bank criminals, abroad. This is in relation to the sanction and offer for them to return their debt in full to the Indonesian government during the liquidity support in 1997-1998, which was stipulated under the Minister of Finance Decision number 151/KMK.01.2006 dated 16 March 2006, due in December 2006. In addition to that, the Indonesian Vice President Jusuf Kalla, recently warned Indonesian-Chinese businessman to obey the Indonesian laws, conduct business ethics, and remain in Indonesia when business gets tough, instead of running away.

14 Corruptors Publicated. 14 Indonesian corruptors identities in details has already been broadcasted through private and government television networks and media, once in a week, according to the General Attorneys Office. The said 14 are those who has been ruled and binding by law and therefore must take effect. The community are requested to increase their awareness of the said fugitives presence, be it in Indonesia or abroad. In relation to that, it was confirmed by the Department of Justice, that almost all of 86 recent corruption cases are on trial, mostly ruled.

The Indonesian Government Settled its Debt to IMF. The USD 4 billion debt was paid in full, covering also the interest. In comparison to other foreign loans, IMF' loan was known with full of terms related to politics rather than to improve economic development.

Malaysia Coast Guard shot 2 Indonesian Fisherman. The incident is however, occurred in the Indonesian waters where the two fisherman were. Under the UN Convention Law of the Sea 1982, the presence of the said fishermen and fishing is considered legal. Lately, the Malaysian government admit and apologize their actions.

9 out of 100 applicants for the Supreme Court Judges. This is the initial number of the candidates for the Indonesian Supreme Court Judges after passing a number of examination by the Indonesian Judicial Committee, where only 3 are from the career judges. The criteria are tight, based on merit system, the qualification also covers intellectuality, moral, clean background, deep investigation of candidate's wealth and proprietary, and commitment to uphold the law and justice in Indonesia. Based on the current poll, the community perceived, that the Indonesian court and judges has fallen to the lowest point of trust, since most judges are considered less intellect, moral hazard, no commitment to uphold law and justice.

The Bill of Government Ethics. The bill emphasize more on moral, ethics and norms applied to all government officials covering from the president and the vice president, members of the parliament, office of the central banks, and all other government institution funded by the state budget. The bill  is to respond the community' complains on bad public services, nepotism in recruitment and low quality of human resources at some institutions. The bill is also expected to change the new paradigm 'to serve the public', instead of the other way around.

[September 2006]

Singapore and Indonesia on the Definition of Corruption. Under the Indonesian laws, corruption defined as an act(s) against the law, act(s) to enrich the one who committed to - including others, including business entity(s), that such acts result to state and/or public financial loss. Bribery and business fraud by individuals and entities is therefore, also covered. Under this definition, Indonesia applied a more progressive definition of corruption than Singapore', where in Singapore corruption covers only of bribery in its sense. This is the result of a meeting of both governments in settlement of money laundering. Singapore is popular known as a country, where many fugitives of bank criminals, corruptors, illegal lodgers and smugglers from Indonesia, stay and live for the past 8 years.

7,038 corruptors out of total 111,000 persons imprisoned and detained.  This is the number of corruptors imprisoned and detained for corruption cases, where those include the very recent of 4 provincial governors (equal to state), 2 ex-ministers, a big number of people' representatives and number of persons of high rank civil officers, including a number of police general and army generals, which are arrested for further investigation and interrogation, under trial and imprisoned for corruption cases in Indonesia. 33 foreigners out of 99 are also those awaiting for capital sentences. The said numbers released by the Minister of Law and Regulation, where numbers is believed will escalates.

Indonesia Urge the World Bank to Disclose Corruptors Accounts. This is addressed by the Indonesian Finance Minister, Ms. Sri Mulyani, during the World Bank - IMF meeting held in Singapore attended by 184 member of Governor of Central Banks. The World Bank assistance and transparency of bank accounts will help the Indonesia program to combat corruption held cross borders. She also urged the front line of the World Bank to adopt an internal reform and to eliminate corruption as Indonesia did, and strongly suggest not to make further advise for Indonesia financial reform. The latter was based on the past experiences during economy crisis in 1998, where the IMF' staffs advises was proven unjustified and has proven to be wrong. The Indonesian Minister of Finance was awarded to be the 'Minister of Finance of the Year 2006' by the Economist magazine.

4 Indonesian Law Students Won the Foreign Minister's Award. The moot court competition was the International Moot Court Asia Cup 2006 held in Hong Kong, where the they were awarded the Best Team, the Best Speaker, and Third Position for the Plea Substance. The said 4 Indonesian law students from the University of Indonesia, defeated law students from the University of Hong Kong, Kyoto University (Japan), Malaya University (Malaysia), Ateneo de Manila University (the Philippines), National University of Singapore, Chulalongkorn University (Thailand). Also in the period of 2005-2006, there are 18 Indonesian students won a number of gold medals at various international science and physics olympiad competitions, including the prestigious award of One Step to Noble, where Indonesian represent the most from the ASEAN region.

8 Australians Sentenced to Death. The ruling issued by the highest court authority of Indonesia, the Mahkamah Agung, in respond to their appeals for committed high crime of trafficking of 8,900 kg illegal drugs into Indonesia through Bali Island, early last year. Another Australian is also committed crime for pedophilia, and recently 3 Australian journalists extradited for visa misuse in a conflicting area, where they were suspected for provocation and agitation.

Indonesian ex-Consul General in Penang (Malaysia) sentenced 3 years Imprisonment. The said person during duty in Malaysia, was committed abused his consular authority for discrimination and corrupted levies to Indonesian Migrant Workers, which has caused state financial loss of USD 3,2 million. Another case in corruption also has brought the Indonesian anti corruption court sentencing from 4, 7 and 12 years to three officials from the General Election Committee.   Another Indonesian fugitive for illegal lodging was also arrested in Beijing, recently. He was rearrested for an attempt to escape. However other 50 suspects are now on the list, where most stayed in Beijing, China.

829 respondents have their says on Indonesian Court and Judges. The Poll shows that 69,0% to 85,4% are not satisfied of judges performances in various verdicts of criminal cases (69,0%), of corruption (85,4%), of human rights (79,7%), and of criminal cases held by public officers (82,5%) and of court mafias (80,6%). Respondents also has shown strong believe, that court mafia are at any level since case registration (75,4%), during sessions (71,2%) and verdict (73,2%. Respondents are also in agreement, that the Supreme Court Judges must be monitored by a separate independent entity (86,9% to 96,4%). A different Indonesian national circulation magazines have its cover story on police performances, where it was found, that passing grade during policemen recruitment are the lowest among other institutions in Indonesia. Bribe and nepotism are also a mere fact during recruitment and promotion. The poll at 10 major cities in Indonesia shall however, do not represent the whole majority in Indonesia.

Indonesian General Attorney dismissed Chairman of Public Attorneys. The said person, the Chairman for the Province of Jakarta, was dismissed for indiciplinary and abuse of authority during a trial for a high profile case. Many Indonesian law institutions and other government institutions are now under serious reform, through expelling big number of the staffs who are committed to corruption, nepotism, indiciplinary and low performances.

The Indonesian Financial Controller Freezed 579 Government Officers Personal Bank Account. This is due to suspicion that around USD 25 billion government funds are identified missing and being suspected misused for personal and family interest and purposes by the said number of government officers and the retired. A big number has its overseas accounts, also detected.

Revision of the Law of the Supreme Court. This is in line with the revision of the Judicial Commission Law planned by the parliament right after its annulment by the Constitution Court due to inconsistency to the Indonesian Constitution, where the said laws allows both institution to take control of judges manners and behaviours. The annulment creates many responses from the legal reformist, where it is well known that 40% Indonesian judges are involved in court mafias, according to a report. A number legal reformist compels the issuance of interim laws by the president to keep the consistency of the law and legal reform.

RI -Malaysia Talks Over the Movement of People. Malaysia now employed many Indonesian workers, from domestic /construction workers to university lecturers, due to Malaysia's progressive development and Malaysia's lack of qualified Malaysian human resources. Indonesia warns Malaysia to protect them better. Up to now there are 1,75 millions Indonesian legal workers, where 2,5 percent are Indonesian intellectuals.

[August 2006]

KPK investigates foreign investment companies. This is due to the community reports of foreign investment companies bribed Indonesian government officers for various interests and purposes. A British foreign investment company is now under consideration to be investigated. Previously, 3 social foundations from Europe were indicated for corruption during the Aceh Tsunami Recovery Program, based on early investigation. The world Bank also cooperate and supported KPK the program to investigate its donor for various program in Indonesia.

US-ASEAN Agreement. The said Trade Investment Framework Agreement has been under discussion since 2002, are initial step before the Free Trade Agreement (FTA) to push more trade and investment between the US and ASEAN until 2010. ASEAN (with 560 million of population) is the 4th largest trade partner for the US, where trade reached US$ 150 billion, annually. The said agreement are sequential trade approaches to ASEAN following China and India.

KPK will make Aceh Province as a model free from corruption. This will be initiated by KPK to investigate all foreign NGOs in Aceh during the Tsunami recovery program since strong indication of corruption, existed. This action is based on article 7 law 20/2001, where private and individual entities committed to business fraud, are subject to criminal charge of corruption. KPK has received at least 14.000 community reports of corruption, where only 54% bear criminal charges.

Indonesian Minister of Trade Mari Elka Pangestu meets Australian Minister of Trade Mark Vaile. The meeting agenda held in Canberra and Brisbane are to discuss over several issues such as the Terms of Reference for the Expert Group, revitalize last years' Action Agenda Trade and Investment Framework, optimizing AUSAID Program for the Indonesia' BPEN (National Development for Export Program), and business meetings between private companies. The major aim are to strengthen economic ties between Indonesia and Australia. 

Private and Business Entity are Subject to Corruption Charges of article 21 UN Convention. This is a new issue to be applied in the revised Indonesian anti corruption law to conform with the article 21 of the UN Convention Against Corruption (UN CAC). The UN CAC stipulates, that corruption charges do apply not only to public officers but also to any parties involved in corruption, directly and indirectly, including private entities. The punishment will cover criminal code and private law.

New Prison at Nusakambangan Island. The new high technology prison at southern island part of Central Java, has 400 cells, which expected will be for corruptors and bank criminals, is now open. The Indonesian Minister of Law and Regulation said, that the prison utilize high technology will help the operation. By the end of this month, the Minister will also consider to publish to television, the said bank criminals and corruptors to make people aware of their presence in the community and report them to the police.

Indonesian Financial Controller investigate 3 Government Departments. The 3 are the Department of Education, Department of Health and Department of Public works, where strong evidences proofed that most projects are identified for mark up, collusion, corruption and nepotism between government officers and private sectors. This has caused state loss are up to 30%.

New Ruling from the Indonesian Constitution Supreme Court. The Court  ruled on article 2 of the Corruption Law. The ruling was that formal evidence is required instead of material evidence for submitting an alleged corruption case before the Anti Corruption Court. The said ruling is final. However, the said ruling was legally not requested by the applicant, which by law is weak in theory, and has never been a case before. The said ruling received a number of protest from the Indonesian General Attorneys, the Indonesian Chief Police and the KPK (the Indonesian Corruption Eradication Commission), which they said the said ruling is in contrary to law teachings and practices.

[July 2006]

KPPU (the Indonesian Anti Competition Commission) Report 2004-2005. During said period, 45% incoming report to KPPU are on transparency of public projects bidding, 10% on cartel, 10% on dominant position and 24% for others. Sanction applies to most of private companies and bidding committees, where both interact through corruption-collusion and nepotism (KKN),and as a result causing state financial loss. In a recent case of public street ligthing in Jakarta, 10 companies received sanctions and must return public money at least Rp 1 billion (USD 1,1 million) each. KPPU identifies three models of KKN: horizontal (between bidding participants by setting price), vertical (collusion between participant and the committee), and a combination of both. The law for Anti Trust and Fair Trade is Law no. 5 year 1999.

Bill on Witness and Victim Protection, passed the parliament. The new law is expected also to disclose crimes at various entities such as in state offices, state enterprises, judicial bodies, police and public attorneys office. The law will support KPK, where the law covers protection to also whistleblowers, and do not limit crime reported. Any parties threaten witnesses are subject 1 to 7 years imprisonment plus fine of Rp40 million to Rp500 million. Additional one third crime penalty applied if threat is conducted by a government officer. According to ICW, there were 39 witness, victim and whistleblowers under threat for defamation charge during 1996 to 2006.

New Banking Regulation on Single Presence Policy. The policy will be in force in August 2006, expecting adoption by all banks by the end of 2008. The policy are based on bad experiences of high non-performing loan, unfortunately occurred mostly at bank with Single Presence ownership. The policy applies to private and government ownership, to allow the central bank to effective monitor and encourage bank consolidation.

KPK (the Indonesian Corruption Eradication Commission) pushes Statutory Declaration for Government Officers. This applies to those at middle management and higher, including those the army officers. The said subjects of law must report any current proprietary and wealth on his/her behalf and/or other, spouse, children, in-laws, and grand children. The report must be submitted to the Internal Monitoring Institution (Inspectorate-General Office) at each of their departments, the tax offices and the KPK office. In the event any findings beyond reported, the court will make summon for clarification to the subjects.

The Indonesia Advocate Association Objects KPK Eavesdropping. The association, one of other 7 associations, argued that this is related to the right of immunity bear by advocates on duty. KPK now has the right to make investigation through eavesdropping, phone tapping, monitoring of bank accounts and other means to collect information to those suspected for corruption by government officials.

New Citizen Law.  The bill passed the parliament approval, where the law reformed on statehood of Indonesia. Statehood of Indonesia remains for Indonesian lives abroad, Indonesian women married to foreign nationals and their marriage give birth to a child born in Indonesia. The important is that a revised definition of so-called 'Indonesian' from its previous law number 62 year 1958.

Indonesia-Singapore establish SEZ. The said SEZ, Special Economic Zone covers Batam Island, Bintan Island and Karimun Island (called BBK) in the territory Indonesia, adjacent to Singapore. The SEZ, managed by a Joint Steering Committee, will allow both countries in managing investment, tax, services, to attract more investment and employment. Investment at BBK was US$4 billion, expected doubled in 2011. Currently, Honeywell successfully manufactured cockpit of Boeing 777 civil airplanes in Bintan.

Russia's WTO membership, delayed. Russia's attempt to join WTO within the last 10 years are supported by 149 WTO member countries, except the US. However its membership delayed due to the trade dispute with the US. Russia currently is the biggest gas explorer in the world, second largest in oil after Saudi Arabia.

Indonesia urges developed nations in WTO to also care about development.  Indonesian Trade Minister, Mari Elka Pangestu, has urged developed nations to show their leadership and flexibility to enable developing nations to make their contributions to World Trade Organization (WTO) negotiations. "As head of the Indonesian delegation and chairperson of the G-33 Group, I am disappointed about the results of the meeting as we all have agreed at the Doha round meeting that (WTO) meetings will not only be about trade liberalization or opening of broader market access but also on development and how all the developing nations can benefit maximally from trade liberalization," she said. Besides fighting for Indonesian interests, Minister Mari, in her capacity as coordinator of the G-33, also voiced the interests and aspirations of the Group. She held a series of coordination meetings with ministers of the G-33 member countries to fight for the Special Products (SP) and Special Safeguard Mechanism (SSM) for developing countries. G-33 has 46 member nations. (ANTARA News).

Seminar Implementation on UN Convention Against Corruption. The seminar held by KPK together with a number of university academics. The result are to empower and broaden the definition of gratification, covering pre-gratification to public legal officers in judicial bodies and sub-criminalization to parties receiving illegal money derived from corruption.

Indonesian Governors Indicated in Corruption. The two governors are from province of West Java and province of Banten, both adjacent to the province of DKI Jakarta, has been investigated by KPK for various corruption indication in a number of government projects. Another governor, from Kalimantan Timur, has been detained by KPK for abuse of authority that lead to corruption. All are active governors. Indonesia consist of 33 provinces equal to states in a federal system, 340 regencies equal to district/city.

Indonesian General Attorney dismissed 2 Senior Attorneys. The said attorneys was considered indicipline by possessing illegal materials. Another 5 senior attorneys (Chairman of Provincial Attorney Office) are also investigated for involvement in court mafias.

[June 2006]

188 community reports of Public Attorneys. This is the number received by the Public Attorneys Commission since its establishment in March 2006, where 45 are directly sent to the office of General Attorney. Reports are unprofessional attitude of public attorneys. The Commission task are to monitor and make recommendation to the General Attorney instead of punishing.

 

Poll on Indonesian Leadership Figure. About only 26,2% of respondents are satisfied of their current leadership in law enforcement in comparison to 50,6% in religion, government officer (27,6%), and member of the parliament men are the lowest (19,4%). In contrast, ex President Soekarno remain the popular leadership figure (64%) followed by Soeharto (54,5%) then Susilo Bambang Yudhoyono (33,3%). The above shows people' perception in the transformation shift from past 35 years authoritarian to present full democracy system in 8 items including politics, economy, law, and education. In general, during present time, 77,1% believe the low commitments of national figure to fight for the Indonesia as a nation and 66,7% remain state power to control the national economy. The poll followed by 782 respondents over 17 years of age  in 10 major cities with 95% index of trust, shall however, do not represent the national perception.

 

Indonesian Police Commission established. The law is the Presidential Decision No 5/2006, chaired by Coordinating Minister of Politics, Laws and Security, the deputy is the Domestic Affairs Minister, with members from NGO academics and other legal professions. The Commission tasks are to support the government in setting up police strategic policies and to respond citizen's report of police public services.

 

Indonesian Bureaucracy score at 8,2 out of scale 10. This is slightly better than India with score 8,95, compared to Singapore (2,2) and Hong Kong (3.1), a report released by PERC in 2005. 3,3 millions of  government officers are serving 230 millions of Indonesian people at 33 provinces and 340 regencies, which are spread into 5 major island and others thousands islands at an area of 1,9 million square kilometers. This is to compare to Singapore with 3 millions people.

 

Police Officer Performances. A recent research conducted by a national circulation newspaper shows, that public disappointment and dissatisfactory to police performance increased significantly 53% to 77%  in 2006 compared to 45% to 65% last year for 5 major police services. The bad performances are, such as involving police creates bribe, creates more problems than solving it, police protecting illegal businesses and human rights violations. Recruitment transparencies to be a police officers are also the main concern with regard to their professionalism and morality , an NGO reported.

  

[May 2006]

59 laws released in 18 months administration of  Susilo Bambang Yudhoyono. This is to compare to previous administration of ex President BJ Habibie (1998-1999), Abdurrahmah Wahid (1999-2001) and Megawati Soekarnoputri (2001-2004 ) which are 66, 51 and 82 laws, respectively. However, according to a research institute, 62% out of 193 law during 1999-2004 significantly bear more political interests than community interests, such as additional political seats orientation. Only 27% of laws having economic and finance interests, 8% community interests, and 7% industrial and development orientation. The new National Legislation Program in 2004 will integrate the legislative and the executive initiatives in releasing new laws emphasizing on community interest.

200 Indonesian Criminals and Corruptors. KPK, the Indonesian Corruption Eradication Commission released its latest info, that the above numbers are those details has been identified who stay and live in Singapore. Mutual Legal Assistance to extradite them between both government has not been yet concluded since end 2004. However, 8 of them has voluntarily surrendered to the Indonesian authority since early this year. Further info on KPK can be obtained at this link.

Bureaucracy Reform. At about 30-40 Indonesian regencies successfully conduct its bureaucracy reform through simplification of public services and annulment of various levies. An example is, the County of Kebumen (in Central Java Province), who successfully operate e-government and applying low cost internet access to its people and free internet access for public schools. The County of Solok (West Sumatera Province) implement one roof public service (for 62 public needs), transparency, public participation, financial support for local government, including reducing chief salary up to 87%. Other successful model regencies for good governances are Sragen and Sidoardjo (Central Java), Jembrana and Tabanan (Bali Province), Pekanbaru (West Sumatera Province), and Gorontalo (Sulawesi Tenggara Province). Those regencies will play as a model for Good Governance for other regencies. Good governance will also implement moral building to reduce KKN, be it at the regional (state) offices or at the central (federal) government. On the contrary, Bogor and Bandung (West Java) considered fail to perform in this area, Ministry of State Government Apparatus Enforcement reported.

133 judges to be investigated for KKN. This is in relation to their decisions releasing 142 Indonesian corruptors during the period of 1999 to 2004. The Indonesian Corruption Watch (ICW) requested the Indonesian Judicial Commission to investigate the said 133 judges, including a number of public attorneys for indication of receiving bribe during the trial process. Other legal profession related to, are also under close surveillance for involvement in court mafia.

 

Indonesian Court Mafia Veil Revealed. This was initiated by a defendant disappointment who revealed soon after a court session in the court room, that he bribed the public attorney Rp 600 million (USD 62,000). This incident now increased public awareness that actors of court mafia are not only the judges, public attorneys, police, and advocate, but also initiated by the disputing parties.

 

Government Procurement. New Presidential Decree number 8 year 2006 amended some article of previous Presidential Decree number 80 year 2003, released. Any goods and services procurement and government’s projects conduct and procedures must be transparent and open to public to access. This law will reduce KKN (Corruption, Collusion and Nepotism) between government officials and business entities.

Zero Sea Piracy at Malacca Strait. According to the International Maritime Bureau, no more sea piracy at Malacca Strait  thank to the effective monitoring by the Indonesian Marine Forces. Most pirates start from Gelasa Strait at northern Sumatera, moving towards South China Sea, a report said. Historically until the 90’s, the pirates hid and stay at Temasek, where Singapore is now. Malacca Strait is the busiest passage lane of 50.000 ships loaded with half of world oil and one third world trade and goods.

11 Big Gratification Cases since November 2005. The above numbers are public officers involved in court mafias covering 3 high rank police officers, 3 judges (one is a court chairman), 2 court registrars, 2 High Court officers and 3 advocates. 3 out of them had been punished for 2 years imprisonment. KPK has also identified officers involved in gratification, corruption and nepotism at various state entities and judicial entities covering for at least 1000 people at the people' assembly, 15 at happens to be the chief of the local assembly, 7 governors and 6 ministers and ex ministers, 4 Chairman of State Enterprises and hundreds of governments officers.

Ambassadors for ASEAN. This is a proposal from a number of US Conggresman through a bill of ‘US Ambassador to the ASEAN’, considering that US-ASEAN trade has reached US 136 billion/year compared to US 130 billion/year between China-ASEAN.

[April 2006]

Nuclear Reactors in Indonesia. IAEA, the International Atomic and Energy Agency, formally allows Indonesia to build nuclear reactors in year 2016, at the latest. It is expected that Indonesia will finalize building 4 reactors with 1,000 MW capacities. Indonesia is considered having the human resources capacity to build nuclear projects.

Indonesian Constitution Supreme Court Ruling. Again, the law 39 year 2004 article 35 paragraph (D) has been annulled due to contrary to the Indonesian Constitution 1945 article 28 H paragraph 2. Out of the total 7 decisions ever made, 4 laws has been partially annulled and the other 3 has been fully annulled by the Constitution Court.

Foreing Visitors to Indonesia, Increased. Foreign Visitors to Indonesia 50.7% are for leisure, 33.83% for businesses purposes. The said researches are based on the Passenger Exit Survey (PES) in 2005 to 10.000 respondents, where most are professionals and business managers groups. Jakarta is the most place to visit (47,48%) following Bali (35,37%).

Commission of Public Attorney established. 8 members tasks are to monitor, control and punish deviations during service to all public attorneys during service. The establishment is based on Presidential Regulation.

Special Legal Treatment Considerations. 8  Indonesian conglomerates having misused and having debt to the Indonesian Government at USD 47 million during the Liquidity Assistance from the Indonesian Central Bank (BLBI) in 1998, are now under consideration by the Indonesian Attorney-General to receive special legal treatment if they return all their debts to the Indonesian Government before end of 2006. Their appearances in Indonesia are voluntarily, since their detail of presence has been identified. However, this issue is still debatable.

Intellectual Property Rights Ratifications. The Government of Indonesia had ratified a number of international conventions since 1995, such as the Paris Convention for Protection of Industrial Property, Paten Cooperation Treaty (PCT), Trademark Law Treaty, Berne Convention, WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty. These had been adopted into national laws, such as the Patent Law, Trademark Law, Copyrights Law, Trade Secrets Law, Industrial Design Law, Integrated Circuit Design Law and Plant Variety Law. All are based on the WTO TRIPs, ratified under Law no. 7 year 1994.

Russian Investment in Indonesia. KaMaz (Kama Automotive Plant) a Russian heavy equipment manufacturer together with an Indonesian company in heavy equipment tools and armors manufacturer PT Pindad, will joint in manufacturing trucks and heavy equipments for mining and construction. Both companies have long track in the said business line and technology.

[March 2006]

Indonesian and Russia on Space Rocket Laucher Spot. Following the negotiation between Indonesia and Russia, it was agreed that both countries will establish a rocket space launcher at Biak, Papua west part of Indonesia territory. Indonesia has the experience in air and space technology for 25 years as proven by the international civil aviation license obtained for civil aircraft manufacturing and technically involvement in manufacturing wing parts of Boeing A380 in 2005.

KPK will takeover Pending Corruption cases. This new regulation will take over all pending corruption cases investigated by the police and the attorney’s office. A number of the said cases had been pending for the last 2 years in various cases, mostly in banking cases.

BLBI Cases Reopen. The Indonesian Attorney-General has indicated to reopen the criminal cases for the particular BLBI cases where most conglomerates received a number of unjust charges. The legal ground for this action is based on the current laws, where unjust rulings disturb social justice.

Bank mediation Dispute Settlement. This entity soon will be established , where the mediation mechanism will provide rooms for bank customers from various disputes with the bank products.

[February 2006]

Draft Bill on Ethnic and Race Elimination. The law will impose to anyone in Indonesia territory a fine Rp100million at most and/or 1 year imprisonment at most for those who intentionally treat better or worse somebody causing injury rights in civil, politic, social, economy, and culture. Indonesia consist of 300-500 different ethnics where 15 major ethnics spread in the west and central part of Indonesia, while other small number of ethnics are in the eastern part of Indonesia.

Ex Ministers Arrested for Corruption. Indonesian ex-Minister of Investment Theo Toemion, will soon return all USD 2,7 million to the government, money being corrupted from Indonesian Investment Year 2002. Theo is under KPK (the Indonesian Corruption Eradication Commission) investigation since last month. Another corruption case, an ex Chief of Indonesian Bank Restructuring Agency (IBRA) is arrested by the State Attorney for corruption and has caused state financial loss of at least USD 50 million by selling state sugar mill company far below market price during his service in 2001. Early this year, Indonesian ex-minister of religion was arrested for corruption of Haj State Fund, the case are still under investigation. Early this month, a number of ex Indonesian Ambassadors and immigration staffs in the Indonesian Consulates in Malaysia are also under investigation for corruption of fees from Indonesian migrant workers in Malaysia. So far 198 out of 228 request released by the Indonesian President for government officers involved in corruptions. Some facing 3 year to 7 years sentences and life sentence charges by the Indonesian Anti Corruption Court.  Indonesia is considered the only country in the region where law supremacy take place, indiscriminately.

Banking Consolidation. The Indonesian Central Banks will soon release new regulation to allow more foreign banks to conduct its business in Indonesia. Currently, out of 131 banks in Indonesia, 41 are foreign shares dominated, with 48,51% ownership of total industry asset compared to 37,45 by the Indonesian government ownership. 12 foreign banks are owned by ultimate shareholders.

Banking Criminals Surrendered. Atang Latief (Lao Cheng Ho), an Indonesian bank fugitive, voluntarily surrendered on Friday 27 January to the Indonesian Police Headquarters after 5 years stay and live in Singapore. He is one of the fugitives of corruption of USD 32,5 million banking liquidity assistance released by the Indonesian Central Bank in 1998. The government of Singapore still reluctant to finalize with Indonesia for mutual assistance on criminals who stay and live in Singapore. Other 3 criminals also surrendered to the Indonesian authority for the same case, all stayed in Singapore.

Claim of Territory. Malaysia claimed the Gosong Island of 1410 sq mile, as part of their territory. However, Malaysia claim has no legal ground, where claim is in contrary to the map Westkust Kalimantan Blad 1 issued in 1905, which island belongs to Indonesia. Previously, Malaysia formally withdrawn their claim of the Ambalat block in 2005 since no legal ground existed. Malaysia’s claim once ruled by the ICJ over Sipadan Ligitan in 2003.

Indonesian Fugitive arrested in LA, the US. The fugitive since 2002 David Nusa Widjaja a.k.a Ng Tjuan Wei, was arrested by the US Federal Bureau of Investigation (FBI) officers and an Indonesian police officer in Los Angeles, then directly sent to and imprisoned in Indonesia. He is one of other 12 bank criminals ruled by the Indonesian High Court for a number of bank crime actions of USD 1,29 billion during the banking crisis in 1997.  This is part of other 12 bank fugitives already ruled for the same crimes of total USD 130 billion. The Indonesian government announced them to voluntarily return or the police will take the same actions, since their full detail of presence and business abroad, mostly in Singapore, identified.

[January 2006]

Poll of Public Satisfaction of the President's Performance. The poll of the President Susilo Bambang Yudhoyono's 15 months in office shows, that In general the public remain proud Susilo, the direct-elected president, being the President of the Republic of Indonesia (78,5% compared to 83,4% in his first 3 months) for his consistency (58,9% compared to 40,3% for the ex President Megawati' term), improvement in political and law enforcement (70%). His economic policy is still appreciated (63,2%), though public still disagrees with the increase of oil prices, tax paying, and rice importation. Indonesia is the only country in the region adopting full democracy and guarantees the people of the freedom of speech and expression, since 1998. The poll was held by a national circulation newspaper on 16-17 January 2006 with 1,622 respondents in 31 provinces, age over 17 years with 95% accuracy. This poll shall however, do not represent the national perceptions.

Indonesian Labor Court, established. Under the law 2 year 2004, this court will replace the Committee of Labor Dispute Settlement. The Labor Court consist of 99 career judges and 160 ad hoc judges, having office at 33 places. This court will run on the Civil Procedure Law instead of the previous procedure law under the labor law. This court will provide more room for argumentation and a firm judgement both for disputing parties in rights, interests and termination.

Supreme Court Distrust Poll. The poll by 811 respondents in 10 big cities in Indonesia shows an approval to replace new supreme judges in full (7,7 to 48,1%) and partly (47,1 to 80,8%), judges are involved in bribe and KKN (89% IN 2006) as to compare to 86,3% IN 2005 and finally, public unsatisfactory of the supreme court professionalism from 54,3% to 73,2%. According to recent bribe case by a conglomerate, 58% respondent strongly believe the involvement in bribe by the Chairman.

Indonesian Judge Arrested. The said Judge for a Social Fund corruption case at South Jakarta Court of First Instance was based on the attempt to blackmailed one of the witness, according to the Indonesian Timtastipikor (Anti Corruption Team). Last month, an advocate, two registrar and a High Court Judge was also arrested and facing criminal charge for bribery. To respond it, the Indonesian Judicial Committee seeks a Presidential Rule as a legal basis to re-elect 49 High Court Judge, which is likely soon get an approval from the President, acting as the Head of State of Indonesia. This action are based on the Anti Corruption Law 31 year 1999.

Canteen Pay. A US based-NGO and New York Times newspaper reported that a US mining company, Freeport-McMoran, has paid millions of US Dollars to the Indonesia security forces (the army and police) to protect their business and sites for years. The moneys, they called it Canteen Pay to feed the staffs lunches, are also paid to a number of personal accounts instead to the government of Indonesia. This modus are a common practice by many other foreign investors in Indonesia.

3 New Laws Soon Released. The three new laws are Laws on Minerals, Energy and Coal (UU Minerba), law on Forestry (UU Kehutanan) and Law on Regional Autonomy (UU Otonomi Daerah).

ASEAN toward an ASEAN Charter. To support its aim to ASEAN 2020, the ASEAN will soon establish its charter. 10 member countries will then appoint their Eminent Person's Group. Indonesia appointed Mr.Ali Alatas, ex Foreign Minister for two periods.

News Draft of supporting Laws on Good Governance. The set of draft of laws aims at an efficient and effective governance, such as the draft of law of Ethics of Governance. The laws is expected to be released upon approval from the House. Other related new draft of laws are Draft of Public Services, Draft of Law of Nationality, and Draft of Law of Civic Administration. The latter law is expected to cover the basic rights for civil for good, services and administration services by the government officers. Current  Law on Good Governance Law is Law 28 year 1999.

KPK received 9200 community reports of corruption by the government officers. However, 80% of the reports are weak in evidences, and only 18 cases under investigation. To support its tasks, KPK (the Indonesian Corruption Eradication Commission) require at least 3 laws, that is the Witness and Victim Protection Law, Freedom to Access Information Law and Cross Examination Law.

 

   

 

 

Indonesian Law Update:

2007

[December 2007]

Indonesian Police is the Most Corrupt Institution. Following the findings by the International Human Rights Commission (IHRC), where the Indonesian Police Institution is on top of human rights violation, now the International Transparency (TI) has its another findings. The score for Indonesia police is the highest of 4,2, compared to the Indonesian parliament and judicial body and political parties (4,1 and 4,0 respectively). The  key finding factors in Indonesia in 3 years in row 2005-2007, found the scores are 4,0-4,2-4,2 (police), 4,0-4,2-4,1 (parliament and judiciary) and 4,2-4,1-4,0 (political parties). The identified problems is of perception, where most people think corruption is defined only for state loss, far from the legal definition covering also bribe, authority misconduct, gifts, a promise to give, and others under the Indonesian Corruption Law. In respect to the corruption extermination by 6 independent and government institutions, the Indonesian Vice President Jusuf Kalla recently also shows his confusion of how confident Indonesia corruptors these days until found guilty by the court and imprisoned. The poll held in Indonesia with 1,010 respondents in big cities in Indonesia , out of 63,199 respondents at 60 countries held by TI.

New KPK Chairman and Deputies, Took Oath. The new chairman Antasari Azhar and other 4 deputies Chandra M Hamzah, Bibid Samad Rianto, Haryono and Mochammad Jasin inaugurated under the President' Decision Number 117/P/2007. The phenomenal predecessors are Chairman Taufiqurachman Ruki, and its 4 deputies Amiens Sunaryadi, Tumpak Hatorangan Panggabean, Sjahrudin Rasul and Erry Riyana Hardjapamekas who took the seat since 2002. The new composition passed the House on 5 December 2007 through tough decision by Commission III, to sit for the period of 2007-2011. Antasari Azhar previously sit as Director at the General Attorney' Office, Chandra was an advocate, Bibit was a police retiree who now a rector of a police university of Bhayangkari, Haryono was staff at BPKP (National Development and Financial Supervisory Body) and M Jasin himself was KPK' Research and Development Director.


Indonesia-Italy Cooperation in Building Corvette Ships. The cooperation covers the initial building of two corvette worth 400 Million Euro to be built in PT PAL shipyard in Surabaya. The Italian company Orizzonte Sistem Navali will also involve an Indonesia electronic state enterprise based in Bandung, West Java, Indonesia, where transfer of technology and design copy rights will then be under the proprietary of Indonesia. The corvettes will be utilized by the Indonesian Navy.

Indonesian Private business Partners under Criminal Investigations and Trials. The Indonesian General Attorneys' Office currently calls an Indonesian businessmen for investigation over a Liquidity Bank Support (BLBI) case involving Rp35 trillion debt in May 1998, such amount then increased to Rp 52,7 trillion in September 1998 bear by the shareholders. Unfortunately the surrendered asset value was only Rp 27 trillion after valuation by the IBRA, a big difference valued by Lehman Brothers who value it at Rp52,6 trillion. In a separate bribe case of fire brigade utilization, a bureaucrat in Makassar is charged for corruption, where he was found for blackmailing the business partner. In another case of bribe to number Indonesian bureaucrats by PT Monagro Kimia (subsidiary of Monsanto Company in the US), the president director of PT Monagro Kimia, Gyanendra Shukla (an India national) attended interrogation process at the General Attorneys' office.

[November 2007]

The Role of ASEAN in the Eye of Indonesians. The signing of ASEAN Charter on the 13th ASEAN Summit conference in Singapore on 20 November 2007, become a milestone of ASEAN for a new beginning of the establishment of a better-managed organization. ASEAN charter will serve as a guidance of interest by ASEAN member countries though the poll shows low expectation of the ability of ASEAN to materialize the Charter. Respondents also perceive a pessimistic attitude over the ability of ASEAN to support a clean government of member countries (69.4%) and to ensure to uphold the law (53.6%). The majority (as mush as 78.3%) are confident that social and culture sector is more likely to be materialized. Positives appreciation is shown by 76.2% respondents in the ASEAN' ability to support the security in the south east region. Meanwhile, 69.9% respondents are optimistic the ability of ASEAN to establish an ASEAN economic community (AEC) 2015. More than 47.2% in contrary to 48,5% of respondents think that ASEAN has yet not succeeded in showing their role to make the region a new economic power. The role of ASEAN in supporting democratization process is also negative, Myanmar issue in particular, where 38.5% perceive ASEAN plays a minimum part in the dispute. 58.3% believed ASEAN also plays a minimum role in dealing with disputes borders. 62.7% respondents stated that ASEAN as an organization doesn’t give much help in combating women and child trafficking in the region. The recent poll was held by an Indonesian national circulation newspapers with 839 respondents over 17 years old in 10 big cities in Indonesia.

Indonesia' Shipbuilding rank 21 of 22 Major Shipbuilding in the World. The rank made by a number of world' maritime magazines recently, are based on the Indonesia PT PAL' (PT Pelabuhan dan Angkutan Laut - Sea Transport and Ports, a State Enterprise) capacity in human resources and facilities ratings.

ASEAN Charter Signed in Singapore on 20 November 2007.The ASEAN charter was established by High Level Task Force on the Drafting of the ASEAN Charter (HLTF), a mandate by the ASEAN through the “Cebu Declaration on the Blue Print of the ASEAN Charter”, signed in the Phillipine on  13 January 2007. Indonesia was represented by the Indonesian Director General for ASEAN Cooperation of the Indonesian Department of Foreign Affairs,  Mr. Dian Triansyah Djani. The ASEAN Charter consist of a Preamble, 13 Sections and  55 Articles, which are the General Principles, declaration and general agreement, legal personality, rights and duties of member states, organizational structure and function, decision-making and procedures, peaceful dispute settlement mechanism, budgeting and finance, procedure and administration, identity symbols, external relations, and general provisions. Indonesia has successfully shown its leadership in the insertion of democracy principles, good governance, human rights protections, regional defense, sustainable development, peaceful meaning of dispute settlement and the establishment of ASEAN Human Rights Entity.

Poll on Military Service. The Indonesian Department of Defense' plan to introduce new law on civil service under the strategic component reserve attract positive responses of 69,5% support by respondents at 10 big cities in Indoneisa, recently. Respondents grounds are their full awareness on potential threat toward Indonesia as a nation, which is remain high (58,6%), threat from its neighbor in particular (60%). Though 65% relied the national defense on Indonesia military, in turn they are doubtful on the quality of war machines (59,6%) and its personnel (55%). An optimistic figure of 42,9% civilians are ready to join the service, though 50,2% are not. Interestingly, Papua (31,6%) rank the highest in percentage to join when civil mobilization is required in the event of state defense of emergency, followed by Surabaya, Jakarta, Makassar and Padang (14,5%, 13,2%, 12,5% and 11,5% respectively). Indonesian military and police are those on top to support the new law (85,7%), followed by government officers (77,4%), private individuals and businessmen (each 69,8%) and students (66,4%). The poll was held by a national circulation newspaper with 850 respondents at 10 major cities in Indonesia.

 

Indonesian Constitution Court Reject to Review article 29(d) Law 30/2002. The individual citizen applicant, argued the article 29(d) is in contrary to article 28(D) paragraph 3 and article 28H paragraph 2, article 28I paragraph 5 and article 28J paragraph 1 of the Indonesian Constitution 1945 on the ground of discrimination for ordinary people' access to become chairman of the Indonesian Anti Corruption Committee (KPK). The law request a minimum academic grade of a university degree to sit as chairman of KPK. The judges argued the limitation of education degree for the chairman of Corruption Committee in law 38/2002 do not necessary in contrary to the Constitution, and is not discriminate on the basis is of the Human Rights Law 39/1999 article 1 (3).


President Susilo Bambang Yudhoyono calls Indonesian to National Heroes Day rememberance. The speech addressed during the National Heroes Day 10 November 2007 in Surabaya, East Java.
 


Ex Minister of Agriculture investigated for Bribe by Monsanto. The case was based on the facts that Mansanto Company alleged for bribing a number of Indonesian high officials in order to a limited release of controversial transgenic products to Indonesian farmers in 2003. The transfer of bribe was amounted at US 700,000.
 

New Draft of Law of Defence Strategic Component. The new law is part of the Military Training and Education Law, a nation-wide compulsory military services for at least 200.000 Indonesian civilians at the age between 18 to 45. Individuals and/or groups, professionals, academics, are the target to be deployed at all time during the state of emergency or war time. The parliament's draft approval is expected, soon. Additional subsidiary law for special training and military education for limited numbers of civilians will be also be implemented.

[October 2007]

Indonesian Constitution Court Rejected the request on Death Penalty Review. The panel of judges of 9, on 30 October ruled the rejection to review the substance and to annul a number of articles on death penalty. The Court ruling are on the ground the law of death penalty under the Narcotic Law 22/1997 do not necessary in contrary to the Indonesian Constitution. Death penalty is considered still applicable under the Indonesian law. The applicant are 5 of Australian Bali Nine facing death penalty for drug possessions in Bali.

Legal note: Bali has long become the heaven for Australians' destination for holiday, business or other purposes. Like most other tourist destinations, in spite of the benefit tourism business, locals are aware of the potential threat of cultural differences, crimes and moral hazards brought by foreign tourists. Balinese, like many other Indonesians, are tolerable. However, crimes are an exception, where many tourist are not aware of the existence of the national law and adat law (Balinese customary law). The Australian Government should from time to time to remind their nationals to be more aware, behave, obey the local laws and Indonesian laws during their stay in Indonesia.

Temasek of Singapore Violated Anti-Monopoly Regulations. The findings released by the Indonesian Fair Competition Supervisory Committee ('KPPU') found that its cross ownership of two cellular providers in Indonesia caused customers loss of Rp 35 trillion between 2003-2006. Temasek, a Government Singapore owned company through its subsidiary company STT, purchased 41.9% share in Indosat and 35% in Telkomsel, both Indonesian major cellular providers. Through share ownership, it allows nomination rights for the boards of directors and commissioners as well as setting policy direction. At Telkomsel, it has passive control (the right to veto decisions made at general meetings of shareholders), while at Indosat it has active control. Such cross-ownership structure indicates the market domination and industry concentration by Telkomsel, while Indosat’s competitiveness has become weakened. The structure also rules over Indonesia’s cellular services business, whereas it indirectly controls more than 80 percent of cellphone users of total 63.8 million customers, it controls 56 percent market share through Telkomsel and 26 percent through Indosat. The KPPU' 5 months and 113 pages of investigation was initially requested by the Labor Union of State-owned Company, but withdrawn. However, the investigation continued  under the ground of public purposes and urgency.

World Food Day, 16 October 2007. The event reminds Indonesians that since 1998, following the 1994 WTO trade liberalization, Indonesia turn to be a net importer of foods as a result of import surges, such as beef (85% import surge in 2000), rice (84% in 1998), corn (72% in 2000), and sugar (50% in 1999) and chicken (121% import surge in 1999). The volume of import for 10 food products in 1996-2005 shows significant increase reaching USD 1.6 billion, annually. These are as a result of agricultural subsidies by developed countries to its farmer, such as 80% by OECD, protection at 34% by the European Union, South Korea (73%), Norway (66%), Japan (64%). Protection and subsidies are the keywords for developed countries to maintain transnational companies - TNC control over the world's food supply. Products protected varied from rice (5.43), sugar (2.04) and milk (1.85). It means, the price are dumped, an unfair trade practices under the WTO rules. TNCs took control of 16 food products around the world, a limited type of wheat, rice, corn and nuts, instead of maintaining other foods grows in a number of developing countries.

Indonesia Awarded Democracy Medal by the International Association of Political Consultant - IAPC. The award decided by the IAPC was on the basis that Indonesia' success in establishing democracy values recently, during the 2004 General Election in particular, where election was successfully held in peace. President Susilo Bambang Yudhoyono on behalf of the people of Indonesian will receive the award during the 40 IAPC World Conference in Nusa Dua, Bali, 12-14 November 2007. Two years ago, the IAPC Democracy Medal were awarded to the President of Republic of Ukraine and President of the Republic of Checz.
 

An Indonesian Corruptor Returned Corrupted Rp 25 billion (USD 3 million) State Fund. The fund was part of the court ruling in a corruption case against Mr Liem in late 2006, where Mr. Liem was involved for corruption and collusion in a release of two pieces of government lands under the proprietary of a State Enterprise, PT Industri Sandang Nusantara (ISN) in Cipadung, West Java. The Supreme Court sentenced him 4 years in jail, plus Rp 1 billion (USD 112,000) fine, together with the President Director of ISN, Kuntjoro Hendartono with 10 years in jail plus Rp 1 billion fine and Rp25 billion compulsory to return the state fund.
 

Cartel Identified on Indonesian Drugs Industries. A new presidential regulation drafted to allow the government and judicial officers to proceed the business and exterminate the cartel and drugs businesses. Minister of Health Siti Fadillah Supari also stresses out that, the findings by a number of research institutes shows, the current drugs businesses created high price of drugs reaching 5 to 200% from the original price distorted by at least 8 points of distributions (factories, wholesalers, retailers, selling point, outlets, and consumers). The cartel involves 5 major drug factories, 200 small and medium size drugs factories, 1,500 distributors, 6,500 pharmacies, 3,000 drug stores, thousands of hospitals and clinics. The enormous profit hit the consumers badly, the poor in particular. The results to avail them to buy, the research also shows that 77% out of 257 respondents buy imitated drugs, where such 40% imitated drug are supplied at 600 drug stores.

[September 2007]

The Indonesian Supreme Court Final Appeal Ruled Time Incorporated and 6 journalist and correspondents to pay Tort for Defamation. The final appeal rulings by the Indonesian Supreme Court number 3215/pdt/2001 publicly announced by the judge panels of three, where Time Incorporated and 6 journalists and correspondents remain wrong for defamation against the goodfaith of Soeharto, the former President of the Republic of Indonesia. Time chairman Donald Morisson and other 6 journalists is fined of Rp1 trillion (USD 9,9 billion) altogether, and must express in writing an apology at national and international circulation media for its misleading and defamation publication edition on 24 May 1999 volume 153 number 20. Time exposed the wealth of Soeharto and family of USD 15 billion, title 'How Indonesia's Longtime Boss Built a Family Fortune', presented by 4 of Time Inc. journalists John Colmey, David Liebhold, Lisa Rose Weaver, and 2 Indonesian correspondents Zamira Lubis and Jason Tedjakesuma. This ruling turns out the previous two lower court rulings, where the Supreme court make an approach of tort for defamation under civil code as requested by Soeharto's lawyer, instead of other articles of the civil code or the law on press and freedom speech, which the defendant legally assumed. The basis for court rulings are on "the act against the law through improper, insufficient and wrongful publication".

Indonesian DVI - the Disaster Victim Identification, meets the Standard Qualification of Developed Countries. The qualification meets the standard adopted by Australia and England. The acknowledgement was mentioned during the international formal meeting earlier, emphasizing the good cooperation between the Indonesian police forces and the department of health of the Republic Indonesia, where one victim' identification may lead to other victims.

A number of High Rank Government Officers under Investigation for Corruption. Indonesian ex-Minister of Manpower Fahmi Idris and its director general are now detained for further investigation for expatriates posting programm at 46 regencies in 2004 causing state fund loss of Rp 9,27 billion, while ex Minister of Law and Human Rights Yusril Ihza Mahendra sit as a witness for corruption of fingerprints government project causing state fund loss of Rp 18 billion. Ex-Indonesian Chief of Army Forces returned an expensive house from an Indonesian Chinese businessmen Henry Leo in a corruption of state budgets of Rp 410 billion. In a BLBI case, Kwik Kian Gie, Bambang Subianto (both ex minister of Finance) and Syafrudin Temenggung (ex Chairman of IBRA)  are now under serious investigation for corruption for releasing policies to assist banks during the financial crash 1997, causing a great financial loss.

7 Chief of District Attorneys, Dismissed. The dismissal by the Indonesian General Attorneys' order was based on the community reports for their misbehave, unprofessional conduct and  breaching the law 30/1980 of Government Officer Conducts. The 7 persons will then face the Public Attorneys Commission for further indiciplinary sanctions.

Indonesian New Foreign Investment Law 25/2007 under challenge for Annulment. The Indonesian Constitution Court received an application to annul the law on the ground that the articles are in contrary to the article 33 of the Indonesian Constitution. The particular articles are article 4 paragraph 2 and 21, stipulating equal treatment between domestic and foreign investors which is perceived unfair. Further the applicant parties argued, domestic investors also do not have the access for special treatment in land titles, immigration issues and import licenses. Therefore, the investment law
25/2007 substantially do not protect domestic investors in real sectors and peasants for land rights. The request are from the YLBHI, PBHI and NGOs.

Indonesia and Russia Concluded Set of Mutual Cooperation Agreements. The 8 sectors of cooperation in sport, energy, mining (USD 4 billion), infrastructure, telecommunication, aviation and defense are expected soon to increase Russia' investment from USD 600 million to USD 1 billion. The signing by both Presidents took place in Jakarta during the official state visit of the President of the Federation of Russia Vladimir Putin, early this month.

Legal Notes: Indonesia has become a potential country in the region to develop war crafts since the availability of technologies and human resources since 1980, such as PT INTI (telecommunication), PT PAL (shipyard, PT PINDAD (war devices and machines) and PT Nurtanio (aircraft).

[August 2007]

Malaysian Prime Minister, Malaysian Chief Police and Malaysian Ambassador, Officially Apologize. Following high tension, strong protest and boycotts from Indonesians, the three high rank officers from Malaysia apologized in writing and orally to the Indonesian President, people of Indonesia and directly to the Indonesian victim abused by Malaysian police.

Again, an Indonesian Referee seriously injured by 4 Malaysian Policemen. The referee Donald Luther Peter Kolobita, was injured after being violated by 4 Malaysian Policemen during the Asian Karate Competition in Negeri Sembilan, Malaysia.  Malaysia denied and refused to apologize. A number of previous violation against humanity by other Malaysians, also never been resolved. The incident increased tension the between both countries.

Bureaucracy Reform for Indonesian Migrant Workers Procedures. The reform was based on the founding of 11 points of offences, where the responsible departments are at Department of Domestic Affairs (for illegal documents release), Department of Foreign Affairs (for not protecting migrant workers) and Department of Human Rights and Law (for immigration matters). All 11 points of offences were found during the departure and arrivals of migrant workers, such founding was based by community reports and surveillances by KPK and department of manpower, where illegal practices occurred and related to bribe, authority abuse and blackmailing towards migrant workers by a number of bureaucrats.
 

Poll of the Member of the Parliament' Performance. The poll held in commemorating its 62 years of its rule in the Indonesian lawmaking and politics. Since reformation 1998, the parliament have undergone significant changes, where member are more educated, younger, and with various background of professions. The Parliament also empowered to take over the control for lawmaking (77 new laws since 2004 for the member for the period of 2004-2009). However, 78% (or 60 laws) of such laws are under the initiative of the government instead by the member of parliament. Respondents perceive that the law qualities degrade since a number of laws (law 22/2004, 27/2004, 32/2004) wholly annulled by the Constitution Court, with argument the laws are in contrary to the constitution. Respondents also are in view that parliament members are less able to control the government (76,3%), less able to well-function (65,6%), less able to respond to public needs (66,7%), less able to be the forefront for national politic accelerator (64%), less able to uphold human rights issues (71,5%), and only aware of its own politic party representation (66,9%). In spite of the above, member of parliaments' images are negative, since they always being absent for hearings (70,4%), late to attend hearings (68,4%), too many trips abroad (74,2%), critism-prove (69,2%). In general, the positive image remain below 30% since they took the seat in 2001. The poll by 822 -
1.379 respondents shall however, do not represent general national perceptions.


Australia Willing to Execute and Extradite two Indonesian Fugitives. Both Indonesian Chinese fugitive bankers are Eko Putranto (ex commissioner of Bank BHS) and Adrian Kiki Irawan (ex Chairman of Bank Surya, who stole USD 175 million) for the  misuse of the BLBI - Indonesian Liquidity Support Funds during the 1997 crisis. Earlier in 2002, another Indonesian Chinese fugitive Hendra Rahardja (stole USD 200 million) has been reported dead by the High Court Australia, which was doubtful since convincing evidences can not be obtained. Australia, like Singapore, has become a heaven for a number of BLBI criminals, where the illegal fund was invested in various  prestigious properties and prestigious buildings in Sydney and Melbourne. Australia and Indonesia signed Extradition Treaty, entered into force on
21 January 1995.

Judges and public Attorneys at the lowest for Obedience Rate. This is in relation to the compulsory report of their personal wealth according to the Indonesian Corruption Extermination Body - KPK, where judges and public attorneys are those the lowest (only 43,77% out of 20.991 staffs) after the government officers, member of the parliament and state enterprises executives, where the statistic obedience rate are 67,564% (out of 61.809 staffs), 70,06% (out of 23.78 staffs) and 73,09% (out of 7413 staffs), respectively.

Again, a Malaysian murdered an Indonesian worker in Malaysia. The two couples, Goo Eng Keng and Chen Pei E who lives in Selangor, murdered Kunarsih with medical status of abnormal death for the reason of stealing milk and chocolate. Migrant Care Malaysia found that she stole because for not being fed. Kunarsih who worked since 11 April 2007, entered Malaysia through an illegal Employment Agent HLZ, chaired by Kelly Lau. Malaysian government, especially Malaysian Minister of Labor Fong Chan Ong has not responded to the case of violation of human rights. In June 2007, Malaysia has been awarded the top for Human Trafficking and Abuse by the US Secretary Office. However, the Malaysian government and the Malaysian court seems impotent to solve the problems.

Vice President' worries of government officer' glamourous lifestyle. The statement was released to respond the National Technology Gathering 2007 held by BPPT (Bureau for Technology Research and Application). He critizesed BPPT' low performance instead of high performance and result and benefit for the people according to their tasks and duties to produce applicable technologies. He also warned to refrain from requesting foreign consultants to do their duties, an undermining statement of domestic capabilities. A number of government office buildings are grandeur, built at prestigious areas, supported with first class facilities and glamour lifestyles funded by people' state and federal budgets and taxes, which however in turn gives no significant result. Vice president requested them to start a modest lifestyle, humble and hardworking.

New Governor for Jakarta. The direct-elected candidates Fauzi Bowo (and Priyanto for deputy) and its competitor Adang Darajatun (and Dani for Deputy) runs for governor seat of Jakarta, with 3,2 million voters out of 11 million inhabitant of Jakarta. The election held on 8 August, where initial result by Election Commission of Jakarta shows that Fauzi gained 1,884 million votes (57,9%) and Adang-Dani gained 1,369 million votes (42,1%). Fauzi Bowo is supported by at least 40 politic parties and community organizations, while Adang is only supported by one politic party, PKS - Partai Keadilan Sejahtera, a relatively new political party. The calculation at 367 voting points was held by 600 volunteers. The volunteers found no fraud during the election.

Ex ministers accused for Corruption. Laksamana Sukardi (ex minister of State Enterprises) was called for investigation sessions at the General Attorney' Office for corruption accusation causing state loss of USD 56 millions, Rokhmin Damhuri (ex minister of Sea and Fisheries) charged for 7 year imprisonment, Glenn M Yusuf (ex Chairman of IBRA) and other ex chairman has been called for series of investigation at the General Attorney' Office for BLBI-related cases of Rp 35 trillion (USD 4 billion) and Rp 37 trillion (USD 4,1 billion) state liquidity funds in 1997-1998. Ex DG of Law and Human Rights was also investigated by KPK for corruption and gratification. A big number of other high rank officers are also under investigations. Lately, AR Soehoed (87 years), ex minister of Industries and 3 others become corruption suspect for corruption during 1988-1998, where a big state funds was used for personal/family expenses.

Indonesian Independent Candidate allowed in the Provincial Governor Election. The judicial review released by the Indonesian Constitution Court (Mahkamah Konstitusi - MK) is to respond the request by pro democracy group, supported by Partai Keadilan Sejahtera (PKS). The request is for the amendment of the law 32 year 2004 by inserting independent candidates clause during provincial election of a direct elected governor in Indonesia. this breakthrough will empower civil rights and democracy, where candidates may not only those from political parties, but also independent person. The request shows, that people of Indonesia are reluctant to support current candidates from political parties but shall also aware for artificial politicians in full democracy system. This judicial review marks another pillar of democracy in Indonesia, the only most democratic country in the region, an archipelagic country of 5,000 populated island with 240 millions of population and 580 different ethnics/dialogues.

[July 2007]

59 local regulation revoked. The number is for the year 2007 out of the total 659 revoked since 2002. The figure was released by the Information Desk of the Department of Domestic Affairs. Most of the revoked are local and provincial regulation of levies and taxes- related, which falls into 4 categories of Budget for Income and Expense for Local Government, local tax, local levies and spatial/territorial management. The above regulations by law are in contrary to President' Regulation number 80 year 2003 and are untraceable/ corrupted by local government officers.

Indonesia to stop importing food and medicine originating from China. The release by the Indonesian Food and Drugs Inspections Body (Badan POM), found that 7 candies brands and 1 toothpaste products contains human-hazardous chemical substance. Formalin in candy and diethylene glycol in toothpaste are two dangerous ingredients contained withn the products, may cause health fatality and death. The director of Food Certification and Inspection of POM strongly urge the authorities to withdraw the products from market.

Minister of Trade Fight against Foreign Illegal IPR Registrars. The plan was established by the minister of trade, following a number of illegal claims of patents by illegal foreign registers of a number of products. The products has been known bearing special, geographical and cultural characteristics of places in Indonesia, covering foods, clothing, wood products and various cultural products. Singapore (wood crafts) and Malaysia (for batik) are those on top of the list who are confidently claim such illegal rights. However, Japan government has dismissed a number of registered products known to be bearing Indonesian characteristics.

Public Officer must Increase Comprehension on Human Rigths. The release by Minister of Law and Human Rights research shows, that the Indonesian public officers need to improve the comprehension on Human rights, those in particular deals with the implementation of people' rights in civil, social, politics and economy. Indonesia has established 426 National Action on Human Rights plan all over Indonesia during 2004-2009, where 423 government officers has been trained for human rights in Australia, Sweden, Norway, Canada, South Africa and France. Unfortunately, still a big numbers, policemen in particular, has no knowledge in human rights. This is respond to strong public criticism on the conduct of the arrest a number of persons. Recent research shows that, police institution are those on the lowest rank in passing grade among other government institutions.  As a result, a big number of policemen stands for criminal trials and imprisoned under the civil law for unprofessional conduct and abuses.

400 public officers dismissed.
The numbers are those dismissed within the last 2 years, after following a number of procedures, where they were identified being indicipline, incompetent, involved in drug and other improper conduct. The report released by the Minister of State Officer Empowerment. Recently, also 60 District Attorneys received sanctions for unprofessional conduct, involved in court mafia and gratification.

35 of 75 Indonesian General Attorneys prepared for the hunt of Corruptors Asset in Singapore and Australia. The initial team of 35 prominent Public Attorneys at the General Attorneys office will settle 3 major corruption case of Bank Liquidity Support from the Central Bank (BLBI) in 1997, where each case has caused state loss at least USD 1,2 billion. The corruptors are  a number fugitive of Indonesian bankers who now stay and live in Singapore and Australia, where they invest in premium apartments and hotels, and shopping malls in Singapore, Melbourne and Sydney. The Indonesian General Attorney, Hendarman Supandji expects other 5 BLBI corruptors will be settled by other 75 prominent public attorneys recruited from all over Indonesia. The team member will soon be announced. Those 8 Indonesian-Chinese corruptors are Atang Latief, Agus Anwar, Ulung Bursa, Lidia Muchtar, Omar Putirai, James Sujono Januardy, Adisaputra Januardy.

48 Sectors are Open to Domestic Investment. The Indonesian Government has decided those sectors must be 100% owned by Indonesians, where nominee scheme are not allowed and become null and void accordingly. The said new regulation of President' Decision are number 76/2007 and 77/2007, were just released early this month.

Reformation of System at the Indonesian Anti Dumping Committee (KADI). The reformation will cover the system and the Government Regulation 34 year 1996 on Anti Dumping Duty and Safeguards. This is in respond to entrepreneurs' and domestic industries' request for KADI to be more protective and proactive in response to the dumped products of electronics, steel and foods from various sources, mostly from China, following its rejection from the market in the US and Europe. The KADI consist by officers from the department of finance, trade, industry and statistic. The reform will cover public legal certainty during investigation, period of investigation, parties' company secrecy, fairness, and in-depth knowledge. KADI promised the reform will be completed in October 2007.

Note: Generally, the KADI should also reform its human resources, where public knew only small number are capable and reliable, those days. A notably criminal case involving 8 KADI member are in 2003, where KADI' Secretary Ms. Halida Miljani (now KADI Chairman) found its 8 members received bribe from one of the party' lawyer in order to drop the case under investigation. They accordingly were expelled after found guilty proven by the Indonesian secret agents who tapped thier office and home phones, fax, mobile phones, and bank accounts.

Foreign Investment Increased at 18.21%The above figure from the Indonesian Coordination Board of Investment (BKPM) is for the January-May 2007 period, which reached USD 3,7 billion of 401 projects. In 2006 it reached only USD 3,13 billion of 377 projects, respectively. In 2007 BKPM expects the investment will reach USD 19,79 billion.

[June 2007]

Reformation of Tanjung Priok Port Authority Increased additional Rp200 billion/month State Revenue. The new so-called Office of Public Services for Port Custom and Clearance now employed full Electronic Data Interchange where contact between the on-site users and the data officers at the port are maintained, electronically. The new system is effective and efficient, cutting-off smuggling, false data, fraud and collusion. Previous 1,300 employees were replaced and 848 new well-trained, educated and professional staffs are securely recruited from all over Indonesia. The new system will officially take place on 1 July 2007, where the state revenue is expected higher than it is now.

A number of ex-Government Senior Officials Stand for Trials for Corruption Cases. The ex-Minister of Sea and Fisheries is ruled for 6 years imprisonment for gratification subject to article 65 paragraph 1 Criminal Code. In a different corruption case, the ex-Chief for Land Office ruled for 3 years, while in the case of fingerscan project, the ex-Director General of Department of Law and Human Rights is charged for 20 years imprisonment under article 2 paragraph 1 and article 18 law 20/2001 of Corruption Law. The ex-Indonesian Ambassador for Malaysia is arrested for corruption charges, including recently under investigation of ex-Chairman of BBD State Bank, chairman of Bukopin state Bank, Director of Operational of State Logistic and ex-Chairman of State Clove Authority. Other 15 Majors and member of Provincial Representative also stand for trial for corruptions. Most of the cases occurred between 1992 to 2003.


Indonesia - Japan Finalized Economic Partnership Agreement (EPA).
The Discussion Record was signed in Tokyo on 22 June 2007, official agreement is expected to be signed in August by both Presidents. Indonesia will play the role for production centre not only for Japan market, but also the region through establishment of Manufacturing Industrial Development Center for the component manufacturing for automotive, electronic and engines to meet Japan' standards. Zero percent tariffs applied to 91% of Indonesian export to Japan, where in turn Indonesia reduce them at 30%. In labor issues, internship of 3-4 years in Japan will be open for hospitality industries. The trade between Japan-Indonesia in 2006 reached USD 12,2 billion for oil & gas to Japan, where in turn USD5,4 billion for non-oil and gas to Indonesia.

Malaysia come to Agree on Migrant Workers new Employment Terms. Following strong international critism and its reputation for Human Trafficking and Violation, Malaysian officials come to Jakarta to agree Indonesia's new terms to protect better Indonesian migrant workers in Malaysia. Indonesian embassy in Kuala Lumpur has now a number of lawyers to increase their legal position in anticipating common abuses by Malaysian employers. Recently, a phenomenal picture in a number of international newspapers shows an Indonesian domestic workers in Malaysia, Ceriyati, stucked at the outside at level 12 building apartment for attempt to escape after receiving several physical abuses by the employer, Ivone Siew, a mistress. Ceriyati was compelled to work 20 hours a day, one day feed and unpaid for 4 months. Ivone Siew and husband, now faces criminal charges. Last April, also two Indonesian domestic workers in Long Island , New York, the US, escaped for the same reasons. They were employed by an American family, Varsha Mahender Sabhani and Mahender Murlidhar Sabhnani for two years, compelled to work for 21 hours a day, unpaid, and abused. The couple now facing serious criminal charges.

Malaysia on top of the list for Human Trafficking and Abuse. The release by the US Secretary Office is based on the worst protection by Malaysia as a host state against migrant workers, where sanction may be imposed towards the Malaysian government. Recently, migrant workers from Bangladesh and Indonesia were found dead caused by violation and abusive treatment by the employers. Malaysians are also repute for not paying migrant workers for months. Big numbers of migrant workers were also arrested without trial and their personal belongings seized by RELA, a controversial Malaysian anti-migrant organization with 500.000 volunteers. Cases causing death of migrant workers involving member of the Malaysian Royal family never been resolved. Malaysian authorities declined the facts. According to the report, other 16 countries on the list includes Bahrain, Oman and Qatar.

Timor Leste President visited Indonesia. Ramos Horta, the direct-elected president meets President of Indonesia Susilo Bambang Yudhoyono in Jakarta, expects to increase economy relation since Indonesia are the main importer into Timor Leste market, through reducing border problems between two countries. Ramos Horta also planning to establish Bahasa Indonesia Faculty in Timor Leste, where Bahasa Indonesia serve as one of the official language in Timor Leste.

New President Instruction number 6 year 2007. The regulation called  'the Policy on the Acceleration of Real Sectors and the Empowerment of Micro Small and Medium Enterprises', aimed at to increase growth and reduce unemployment and poverty. Of 141 guidance for direct actions, over 60 will be handled by the Finance Ministers. The said regulation 6/2007is expected to reach 6,3% growth this year, following 6% growth the first quarter of 2007.

Indonesian Governor of Jakarta Sutiyoso, called to testify for Coroner Inquest Balibo 1975 Trial in Sydney. The delivery of the court summon by the NSW Policemen however, violated the diplomatic immunity attached to envoy Sutiyoso under the Vienna Convention on Diplomatic Relations 1963, where Australia ratified. The incident was the trespassing of two policemen of NSW into Sutiyoso' room 3107 at the Shangri-la Hotel in Sydney in 29 May 2007, during his official invitation by the NSW government of Australia. The police insist they conduct the work as requested by the court. The incident was triggered by a number of Australian NGO opposing the East Timor integration to Indonesia in 1975, causing the death of 5 Australian journalists during gunfire. Australian Ambassador Bill Farmer and NSW Premiere has delivered its  official apology at Sutiyoso' office in Jakarta.

Note: In 2003 Australian security over reactively search-through the Indonesian Minister of Human Rights at the building entrance before the meeting with the Australian General Attorney. He then prompted return to Jakarta. In 2002,  the same incident happen to a Malaysian Trade Minister where dogs were used to search. In 2005, Australian Government granted visas to 42 Indonesians from West Papua disobeying international common practice, triggering tension between both countries and causing the withdrawal of the Indonesian Ambassador in Canberra. In 2006, an inhuman cartoon about the Indonesian President, as part of retaliation was published by the Weekend Australia newspapers. Earlier in October 2002, ASIO and AFP searched houses of a number of Indonesians in Sydney, Melbourne and Perth, but no evidence was found in the name of counter terrorism. The above shows series of the way a number of Australian people and government treated its neighbors.

Indonesian Competiton Committee Found Breach by Temasek. The initial investigation held by the Indonesian Anti Competition Committee found, the article 27 Law 5/1999 was breached through the ownership by Temasek as one entity in two equal business in the same area in Indonesia, that is the cellular providers Telkomsel (35%) and Indosat (42%). Temasek then set out high price for cellular air time, leaving consumers with no option. ----

[May 2007]

Poll on 9 years of Reformation in Indonesia. The poll held by a national circulation newspapers by 875 respondents in 10 big cities in Indonesia, shows that, generally people are not satisfied with the government’s achievement in economy (81,3%), social welfare (77,4%), but less in law (73,7%) and politics/security (69,9%). Answers to the questions in various issues also shows high degree in unsatisfactory results, where people still believe Soeharto’s influence in national politics (87,4%), unsolved corruption by conglomerates (82,7%), May 1998 case trials (90,1%), and high living cost - particularly after the oil increase in 2005 (93,1%). Generally, people also felt that increase price for living are getting worst (57,4%) and people have less access to jobs and businesses (50,2%). These are in contrast to good result of satisfactory in freedom of expressions (49%) and freedom in politics (49,3%). Of the six agenda of reformation, only one not yet achieved, that is the trial of the Soeharto Families for corruption, though most are satisfied in the other 5 agenda of the supremacy of law, KKN extermination, amendment of constitution, regional autonomy and the civil supremacy.

Defense Agreement of Indonesia - Singapore. Following the Extradition Agreement to return Indonesia' asset stole by Indonesian Chinese Businessmen to Singapore at the amount of USD 75 billion in 1997 (according to Merryl Linch), Singapore now agree to sign a defense agreement, where both countries will start a cooperation in defense trainings. Singapore may use a small territory of Indonesia for its air force trainings, while Indonesia have the full access to Singapore's military war crafts and Singapore airspace.

Reshuffle of 68 Indonesian State Enterprises. Following the Susilo Bambang Yudhoyono' administration reshuffle earlier this month, the new minister for State Enterprises Sofyan Djalil, promised to regenerate state enterprises through appointment of new board of directors and commissioners, directed by the Law 19/2003 and PP 45/2005. Currently, 12 State Enterprises are administered by caretakers, where a number of directors resigned.

Indonesia-China Trade will Reach USD 30 Billion in 2010. According to the Indonesian Chamber of Trade and Industry, both countries trade and investments growth reached 18,6 % annually (2001-2006), where mostly are in oil and gas and infrastructure. Major export from Indonesia are chemical products, wood products, pulp and papers, fertilizer and rubber. From China, Indonesia imported iron and steel, spare parts, motorcycle, electronics, data processor and fruits. China has become the fifth export market from Indonesia with volume totaling USD 19,6 billion in 2006. China's investment in Indonesia in 84 projects with value of USD 205 million, are at the 8th position after Singapore, Britain, Japan, Malaysia, Canada, Australia and the Nederland.

Indonesia Gained 185 Votes from 190 UN Members in the UN Human Rigths Council (UN HRC). The votes are to support Indonesia's second term membership in the UN HRC. The other 14 countries are India, the Philippines, Qatar, Bolivia, Nicaragua, Egypt, Angola, South Africa, Madagascar, the Netherland, and Slovenia, will serve for the period of 2007-2010, starting 20 June 2007.

Indonesia - Singapore Concluded the Extradition Agreement. The signing venue in Bali, Indonesia, last 27 April 2007, covers 31 model of crimes, mostly crime in economy, including extradition of corruptors and the return of its assets in Singapore. The agreement applies retroactivity principles for 15 years (or crime since 1992), and Indonesian nationality principle when the crime occurred. Singapore (was called 'Temasek' in the past, a famous place where pirates hid) has the international reputation for 'the heaven for corruptors and bank criminals' and money laundering, mostly from Indonesia, by Indonesian bureaucrats and Indonesian Chinese businessmen/bankers (see: Andy Xie). The agreement however, still requires national legislation by the signing parties, according to the Vienna Convention on the Law of Treaties 1969. 

New Presidential Regulation (PP) for Governor Report. The obligatory PP no. 3 year 2007 stipulate the governors and local governors to submit their performance reports periodically and upon their termination of period to the central government, provincial house of representatives and the community, through local newspapers and electronic media. The community may respond and challenge for further responsibilities of the report under the state administrative law, criminal code and other related laws available to secure the governors and all of its staff works correctly and to secure people's right.

[April 2007]

33 Memorandum of Understanding by 42 Indonesian State Enterprises. The 33 MOUs through synergies between state enterprises are expecting to increase state revenue up to Rp 70 trillion, annually. The cooperation will empower each enterprise in government projects, such as aircraft manufacturer will utilize steels, electrical devices, and use of gas and all other product manufactured by the state enterprises.

54 Indonesians Facing Death Penalty in Malaysia. According to the report from the deputy of Human Rights Working Group (HRWG), 16 of them are Indonesian migrant workers and the remaining are refugees from Aceh during past conflicting time. HRWG asked the United Nations to assist them during trial process in Malaysia, since most workers facing criminal because of unjust treatment from their Malaysian employers, such as unpaid salary for 6 months, abuse and inhuman treatment.

18 Indonesian Judges Reported never been Sanctioned by the Supreme Court. The said numbers of judges are based on 1,200 community reports of which 500 has been investigated for series of professional misconduct and involved in court mafia, as reported by the Judicial Committee (KY). The law they breached is the Ethic Code, where KY has filed recommendation to the Supreme Court. KY also aware that their authority has been slashed down by the Constitutional Court ruling, and expected that under the new bill of KY will empower the President for direct order to put sanctions for the said judges. In a different official occasion, President Susilo Bambang Yudhoyono said, that he is not afraid and will keep maintain the combat of corruption and the imprisoned corruptors, as proven during his administration. His administrative order may be seems to be slow, because he is fully aware about the laws.

16 Supreme Court Candidates' Wealth are Suspicious Following the passing serial test of quality, personal and administration by the 7 members of the Judicial Committee (KY), the said 16 candidate of the supreme court judges now will face people' responses, where it was found that their wealth exceeds their normal income. Previous polls and community reports also result the same findings According to the findings, one candidate of judge owned a house at the value of USD 105.000, others has its monthly household exceeded to USD 6,000 to 13,000 as to compared to their monthly salary at most at USD 1,750. The Judicial Committee will respond to this findings by NGOs. The whole process of election are the second round after the rejection of candidates by the House on the first one conducted by the KY last year.

Poverty Reduced. According to the government official report, the number decreased from 19,14 % (in 2000) to 15,9 % (in 2005) for total population of 225 millions. However, as a respond to the high increase of gas and oil price in the end of 2005, the percentage reached 17,75%. State' budget to reduce poverty has been significantly increased from Rp18 trillion (USD 2 billion) in 2004 to Rp51 trillion (USD 5,5billion) in 2005 and projected at USD 65,5 trillion (USD 6,5 billion) in 2008. 3 Indonesian economists and university lectures pointed out 5 sectors with 0-10 score (0 for worst), in what the government has done, which are, that in providing and distribution of food reached 4-4-5 score, in providing access to education (6-7-6), health care for the people (6-7-4), to tackle poverty (4-4-4) and to handle unemployment (6-4-4). In doing so, the Indonesian President, Susilo Bambang Yudhoyono who obtained his doctoral degree in agriculture from a reputable Bogor Institute of Agriculture in Indonesia, has his strategy for the next 10 to 20 years, so called the Triple Track Strategy: progrowth, projob and propoor.

Indonesian Law Student Won the First Rank of Phillip Jessup International Moot Court Competition. Held by the International Student's Association of the American International Law Community in Washington, USA, the said Indonesian woman of 20 years old law student from the Faculty of Law the University of Indonesia, won the first rank for oralist among other 290 contestants from 95 law schools all over the world. In 2004, again Indonesian law student won for team category. The moot court competition is a simulation court of the International Court of Justice. In Indonesia, most public or state universities entry competition are very tight, with seat to competitors ratio varied at 1: 20 to 1:500.

Poll of the Presidential Advisory Insitutions. The poll with 841 Indonesian respondents over 17 years at 10 major cities shows, that 62%, 59,9% and 66,8% are satisfied, enthusiast and appreciate of the establishment of Presidential Working Unit (UKP3R) in early 2006, the Presidential 4 Staff of Advisors in mid 2006 and recently the addition of 5 staffs of The Presidential Advisors (DPP), respectively. Respondents rationale are based on the disappointment by the performance failure by the current ministers mostly in agriculture/national economic/social problems (32% to 66%), which they agree to dismiss a number of ministers (50% to 77%), and finally that they believe the President has the authority to do so (65,9%). Despite of the above, respondents are also aware the increase of budget to maintain the advisory board may increase national extra budgets. In other official occasion, President Susilo warned leaders to avoid being arrogant, greed, and changing attitude to serve people.
 

Chairman of State Logistics (Bulog), investigated for Corruption. The chairman, Widjanarko Puspoyo, was found corrupt in different government projects, which involves his wife, daughters, son-in-law, nephew and brother. All has been identified and interrogated by the General Attorneys Office. A foreign company is also a suspect. Bulog, has been known for financial sources of political parties, where 3 previous chairman are criminals and now serve their time in jail.

Indonesia-Timor Leste held a Committee on Truth and Peace meeting (KKP). Hearing will be attended by witnesses by the Indonesian ex Foreign Minister Ali Alatas and Indonesia Ambassador for Portugal Fransisco Lopez da Cruz. Other 18 persons will follow, including ex Indonesian Presiden BJ Habibie, Carlos Felipe Belo. and Eurico Guterres. Timor Leste sees Indonesia as the most important neighbor, since Timor Leste' domestic politics and economy remain suffered after the referendum in 1999. Some people of Timor Leste perceived economy and politics are far better prior to the referendum, and the Australian involvement did not help much instead of Timor Gap Agreement which is unfair and far from the end. KKP was established by President of Indonesia Susilo Bambang Yudhoyono and President of Timor Leste Xanana Gosmao in 11 August 2005, has its agenda on 5 meetings and hearings to unveil the final truth and to strengthen peace between two countries. The first was held in Denpasar 19-20 February 2007, and second on 26-30 March 2007 in Jakarta. The following meeting is planned on April, May and June 2007.
 

Presidential Advisory Council, established. Under the President' Decision signed 26 March, the definitive of 9 advisors, appointed. Each eminent person will advise in its particular expertise, such as international relation (by Mr.Ali Alatas), law (Mr. Adnan Buyung Nasution), economy (Mr. Sjahrir), defense and security (Mr. TB Silalahi),  agriculture (Rady A Gani), politics (Ms. Rahmawati Soekarnoputri), religion (Mr. Ma'ruf Amin), social and culture (Mr. Subur Budhi Santosa), and environment and sustainable development (Mr. Emil Salim).

Bill of Human Trafficking Extermination, Passed the House. The tougher law imposed Rp 20 millions to Rp5 billions fines and 3 years to life sentence for various trafficking, and triple sentences by corporate crime. Parties  or labor agents involved will receive additional 1/3 punishment. A number of Indonesians and foreigners indicated committed are identified for human trafficking, including modern form of slavery. According to UNICEF, at least 100.000 Indonesian woman and children are trafficked abroad, annually. The law is part of the Indonesia' commitment to the United Nations Palermo Convention 2001.

PM Australia John Howard Officially Apologize for Shooting Indonesian Fishermen. The shooting incidents early this year by the Australian Coast Guard toward a number Indonesian Fisherman and burning down their ships at the adjacent waters, are now clear that the Indonesian fishermen are still at the Indonesian waters. Australia officially apologize and will recover the loss, and assure the incident will not repeat.

[March 2007]

3,195 Bank Account Numbers of USD 2 billions, Unreported. Those are the numbers found by the Indonesian Director of Accounting and Financial Report of the Department of Finance, where such accounts are at a number of Indonesian state departments and government entities, accounts created before year 2000. Previously the Indonesian State Auditors found a smaller number, 1,303 accounts totaling USD 0,9 billion. The said accounts are considered under the proprietary of the government of Indonesia.

Malaysian Foreign Minister Addressed Official Apology for Trespassing. The trespassing by Malaysian Naval Coast Guards early this March are uncontrollable, in which violates the Indonesian territory at the Indonesia's Ambalat Block Oil Reserve. The Malaysian Foreign Minister addressed the official apology to the Indonesian Foreign Minister during a meeting in Jakarta, recently. The Indonesian Navy seriously may take further actions under the UNCLOS (Law of the Sea 1982) of attacking foreign ships in the waters if so refused to leave.

Indonesians Released at the Malaysian Immigration Office. Thank to the Indonesian embassy officers based on a Norwegian gentlemen report, the 12 Indonesian released after being arrested 10 days for immigration violation. However, the Malaysian authority refused to make legal action towards the labor exploitation and abuses by the Malaysian employer of a hotel services. The same also happen towards a member of the Malay Royal family for causing injury to an Indonesian domestic labor, last year.

Japan Government Provide Soft Loan to the Government of Indonesia. The untied loan for 30 years at 1,5% interest p.a of Rp 1,875 trillion (USD205million) are aimed at the development of social and economy sectors in Indonesia. The Excellency Japan Ambassador for Indonesia, Shin Ebihara, signed the said loan in Jakarta, recently.

Bill of Foreign Investment Soon Released. The final summit meeting of the house on 29 March will decide to or delay the release of the 39 article laws. A number fraction in the house objects the soft laws on the issue of foreign corporation crime, as proven by current number of cases on trial under various laws, committed by foreign investors. The law will now provide single entry for licensing at the BKPM, which is now shall directly responsible to the president instead the minister of trade. The law will provide facilities for those investing in remote areas and able to employ more workers, to enjoy land title, import license, and special fiscal rights.

Advance Micro Devices establish its Representative Office. AMD, the world class micro processor manufacturer, establish its office in Jakarta, the first in Indonesia. The office is aimed at getting closer with the Indonesian market, which is seen prospective. In 2005 AMD' global market share reach 5 percent, where 2006 reach almost 12 percent.

 Increased, Suspicious Financial Transaction (SFT). This is monthly SFT transactions comparisons of 2006 to 2007 as reported by the Indonesian Financial Transaction Analysis Report Center (PPATK)of which monthly SFT are 290 (totaling 3.482) to 352 (11 times daily) respectively, of which the first two months are of 433 to 448 respectively. Since 2002, there has been 7,489 SFT. In 2007, 448 STF has been reported by PPATK to the legal officers for further investigations, however so far the law can only reach bank owners or financial institution involved instead of the customers. It is suspected the moneys are to fund a number of local elections, to pay fines by corruptors and worst are corruptors move to secure its assets.

 A number of Chairman of State Enterprises called for Corruption Suspect. Laksamana Sukardi (ex Minister of State Enterprises) were interrogated for causing state loss during the selling of government Very Large Crude Cruise in 2004. Eddie Wiyono (Chairman of State Electric Enterprise) for causing state loss of USD 2,6 million during the procurement of teo truck mounted electrical power in Borang, South Sumatera, where an Australian businessmen John David McDonald, will be one of the suspect for corruption. Private partner of the Local Government Busway Project was also charged for 5 years imprisoned for state loss of USD1,1 million. Recently, Chairman for State Logistic sit for trial for corruption, where all predecessors happen to be the chairman now are criminals and imprisoned.

Indonesia Chaired the G-33 Meeting. The meeting on 21 March 2007 participated by 25 ministers and 28 member countries, with  agenda to reinforce the bargaining position of G-33 at the next WTO Meeting in April 2007, following Mini Ministrial meeting at Davos in January 2007. Members also aimed at finalizing the Doha Development Agenda' discussion.

Chairman of Logistics State Company become Corruption Suspect. Other 5 inferior staffs were then arrested by the District Attorney Officers after evidences of corruption found, causing state loss of USD 1,1 million in 2001. 3 other private companies part of the corruption, were involved and soon will be arrested and charged. Since 2000, two other Chairman of State Logistic were also involved in corruption ruled the Supreme Court, and they served their time in jail and returned the money to the government (Beddu Amang - 4 years since 2004 and Rahardi Ramelan - 2 years since 2004).

Indonesia and Thailand gained 8,03 point for Corruption Perception. The said numbers range from 0 for the less and 10 for the worst, according to a recent research during January to February 2007 with 1,500 respondents of foreign investors executives at 13 cities in Southeast Asian Countries, held by PERC based in Hong Kong. Indonesia' rank is better than 2006, and in contrary for Thailand and the Philippines (9,40). Singapore (1,20) and Hongkong (1,87) remain the less corrupt. However, PERC admitted that corruption perception are closely related to transparency and freedom of speech, and that foreign business and investors are taking advantages from the corrupted countries and treated them as a save heaven  for corruption.

Indonesian Bureaucrats Fails to Perform. A new poll result by an Indonesian national circulation newspaper with 885 respondents of at least 17 years old at 10 big cities, interviewed by phone in 28 February through 1 March 2007 shows in general that, bureaucrat are opt to be bribed (58%), less discipline (35%), are tied to their political parties (30,3%) and it took long time to deal with them for such a public service (62,9%). Respondents also unsatisfied with their services, in terms of work speed where they tend to be slow (64,7%), ineffective (65,3%), less responsive (64,9%), less discipline (64,6%), less able in details (62,1%) and less hospitable (42,8%). In cities basis, respondents at 9 cities are generally also not satisfied with bureaucrat services. In terms of its various failure in serving the public (particularly in public transportation accidents, recently), the respondents also in agreement the urgency to replace the incapable persons in order to increase its responsibility (51,6%) and performance (47,2%). In Indonesia, particularly during the new order era, it is well known that nepotism and bribe plays significant role in the success of recruitment of public officers/bureaucrats.


PT Freeport Indonesia willing to Contract Renegotiation. The said agreement is made with the House' Working Committee. A number of the contract has been identified unfair for the Indonesian government, also where the company is compelled to take precautions of environment and state revenues. A good progress made is, that  a number of process of raw materials are now conducted in Indonesia instead abroad.

Poll of Bribery by the Indonesian Public Law Officers. A new poll held by Transparency International, an NGO, shows that the court are at the top in terms to initiate for bribe (51%), followed by the police institution (55%) and military institution  (53%). Interestingly, Collusion Corruption and Nepotism (KKN) mostly also persuaded  by multinational companies and big corporations. The polls held with 1700 respondents of business institutions at 32 cities in Indonesia, composed of 89% domestic investment and 11% foreign investment companies with registered business and tax pay numbers.

Indonesia need to Protect more the Ambalat Block Oil Reserve. This is a request by the Indonesian House of Representative to the Indonesian Military Forces with regard to a number of trespassing by the Malaysian coast guards to the Ambalat Area Oil Reserve of Indonesia, recently. The Malaysian Coast Guards then were forced to leave the area by the Indonesian Marine Force. A number of Sea Warcraft has been located in the area,  that is KRI Sutanto, KRI Multatuli, KRI Untung Surapati and KRI Badik..Malaysia in 2004 attempted to claim the said area, but convincing evidence and legal proof can not be brought during the meeting of both countries. A same incident also occurred by the trespassing of two military aircraft of Singapore.

Note: Geo-Politically, Indonesia is surrounded by the Commonwealth countries such as Singapore, Malaysia, Brunei, Hong Kong SAR, Papua New Guinea and Australia. Indonesia (pop. 240 million - 2006) is the only country in the region where the Allies (the US & Britain) lost the war against Indonesians in order to re-colonize Indonesia during the war in 1945 and 1949. Indonesia won the wars and has earlier proclaimed its independence from the Dutch Colony in August 1945, where first acknowledgement came from the Kingdom of Egypt. During 1945- 1950, Dutchmen in the Indonesian soil migrated to their homeland after losing the war. In 1965, all Dutch companies in Indonesia, nationalized. In 1991 Indonesia dismissed the IGGI (Intergovernmental Group on Indonesia - a group of creditors) led by the Dutch, then a new form of CGI in March 1992 established without the Dutch, which then were also dismissed in 2007. Since 1945, all Dutch-identities were revolutionized into Indonesia identity, covering language, education, politics, statehood, laws and culture. The customary law (adat law) and religion law, rebirthed. Modern Indonesian laws, introduced and incepted. Until now, most of the colonial Dutch laws has been replaced by national laws and legislations. Historically, the first kingdom (and other 70 kingdoms before the modern history) in Indonesia was in year 150, where in 1200-1750 the imperium of Indonesia or so-called 'Nusantara' under the Great Majapahit Kingdom in Java identifies the so-called 'The Eight Territories' covering the current modern Indonesia and the current ASEAN member countries, or simply the whole Southeast Asia (from Kra and Pattani in Thailand, Singapore, Brunei, West of Malaysia and Sabah and Labuan of Eastern Malaysia, Mindanao and Manila of the Philippines, East Timor, Vietnam, Taiwan and Madagascar, and the northern part of Australia), where levies were paid, identical culture and the use of language of Bahasa Indonesia were found.

[February 2007]

General Attorney Orders to Push to Search for 12 Indonesian Fugitives. The 5 orders include the cooperation with the Indonesian embassies and consulates abroad to report their presence nearby.  The 12 fugitives are related to the corruption of the Indonesian government Bank Liquidity Support in 1997 (BLBI) for a number of private banks leaded by Indonesian-Chinese. Singapore, unfortunately is the one of the country being uncooperative since Singapore has been well known protecting a number of the said Indonesian bank criminals. The Indonesia' request of retroactive extradition has not been responded by Singapore, whereas the Singapore government request for a long list  discretions has been rejected by the Indonesian government. The 12 persons are Eko Edi Putranto (BLBI Bank Harapan Sentosa/BHS Rp 2,6 trillions), Sherny Kojongian (BLBI BHS), Lesmana Basuki (medium term notes/MTN Rp 209 billion and USD 105 million corruption case), and Tony Suherman (promissory notes and medium term notes/MTN case of Rp 209 billion and USD 105 million), Bambang Sutrisno (BLBI Bank Surya Rp 1,5 trillion), Andrian Kiki Ariawan (BLBI Bank Surya Rp 1,5 trillion), Nader Thaher (Bank Mandiri case), Hary Matalata, Hendro Bambang Sumantri, and Eddy Djunaedi. According to Andy Xie, Indonesian' wealth in Singapore are valued at USD 78 billions, which 200 are identified to be Indonesian-Chinese businessman/bank criminals

Indonesian Middle Class must promote Law Supremacy. An inauguration speech at the Gadjah Mada State University addressed by Profesor Boediono (current Coordinating minister for Economy), warns that a sustainable democracy for Indonesia for the next 9 years must be promoted by the Indonesian middle class. To secure its sincere intention toward reformation, the typical of middle class are expected those particularly who grew free from past corruption collusion and nepotism, instead those who previously enjoyed royal treatment and fed by social and economic priviledges prior to the 1998 reformation. The typical of such Indonesian middle class remain small in numbers, where it is represented by the professionals, NGO, and private entities. In terms of Indonesia's economy these days, it is likely that law supremacy must take place  for a sustainable democracy.

Director General of the WTO Pascal Lamy, Visited Indonesia. The visit purposes are to establish close dialogues on the WTO issues in NAMA, SP, SSM and Special Products with regard to tariffs elimination and market access for the upcoming Doha Round. This is in relation to Indonesia's role as Chairman of the G-33.  On the WTO law, Pascal also admitted that in general the WTO laws are unfair, at least not yet fair, but the legal system now is far better than it used to be. He also admitted that WTO Secretariat pays more attention to the developing countries than to the developed countries. These were addressed during WTO workshop held by the Forum WTO Indonesia, attended by Minister of Foreign Affairs, Minister of Trade, Indonesian Ambassador to WTO, members of the Forum WTO Indonesia and WTO  stakeholders.

Indonesian Police Force under the Department of Domestic Affairs. New laws will put the Police Force not under the President's Office, but under a ministry. In spite of rejection from the Police Forces, the draft however increased big positive responses, where police authority must be limited only to security issues, and not beyond it as it is now. Currently, the police may conduct district attorney's tasks to investigate and interrogate crime suspects. The human resources during recruitment is also the concern, since study shows the policemen recruitment' passing grade is the lowest among other public institution, including bribe and nepotism issues.

New Bill of Anti Corruption. The draft will impose minimum 5 to 20 years imprisonment and life sentence (replacing death sentence) applied to those who corrupted the budget for natural disaster, social disaster and economic crisis. The law also covers corruption by private entities and public international institutions. Maximum of 9 years imprisonment applied to other corruption cases. No more minimum sentence. This new law will replace the law 31/1999 and 20/2001 of Extermination of Corruption Criminal Action (Tipikor).

KPK Cooperate with KY (Judicial Commitee) and PPATK (Center for Financial Transaction Analysis). All the three institutions shall share data and information, including exchange of staffs, education and training. Declined attitude of judges are also covered, where each may report and take legal actions. Other cooperation between the Indonesian government (the General Attorney Office and the Police) and the US (the FBI and the DEA) also recently resulted that, an Indonesian corruption fugitive in the US will soon be arrested and deported for trial in Indonesia.

KPK called a number of Governors for Corruption indications. The governors are from Central Java for a corruption case of public transport procurements and ex governors of South Kalimantan for land procurements public project. Other 7 governors are also investigated for corruption indication, which are from the provinces of West Java, Lampung, North Sumatera, West Sumatera, Riau, Bali and Irian Jaya. A number of regents also called for corruption investigations at various public projects and budgets. Indonesia is the only country in the region where high rank civil and military public officers are called and punished for authority misconduct.

[January 2007]

The Government of Indonesia dismissed the CGI donor group (Consultative Group on Indonesia)The group consist of a number of developed countries to provide financial support was established in 1992. In turn, through tough terms and conditions, CGI was authorized in setting up economy and financial policies for Indonesia. The dismissal are based on the set of failure of CGI's advices and implementation in economy and financial, particularly in settling Indonesian government debt in 2000-2002.

KPK (the Indonesian Corruption Extermination Committee) 'seized' USD 3 mllion Corruptors' Assets in 2006. The number will escalates with additional USD 1,7 million under investigation, where assets seized are vehicles, properties, lands, machineries and office equipments. Assets are seized from 26 cases out of 120 cases in 2006 only. Up to November 2006 there are 15.861 community reports of corruption, where 95 percent assessed and 226 corruption cases are seriously investigated, recently, and 78 cases on trial and 11 cases received verdicts. In 2007, KPK will remain targeting at big amount corrupted by public figures, where in 2006 KPK conducted legal due processes to - including but not limited to - 8 governors, ministers and 3 ex-ministers, army generals and police generals, majors, high rank officers and member of parliaments, and a big number of businessmen.

Poll on Government Performances. A recent poll held on public satisfaction on the month of 27 of the Government administration performances. Generally, the poll shows that the performances reduced from 51,9% to 47,5% in the last 12 months, although generally the people (72%) remain having full trust in the-direct elected President Susilo Bambang Yudhoyono. The poll also shows, that people remain satisfied for the guarantee of freedom of speech and freedom of the press, including freedom to embrace religion. In contrast are to satisfaction to social welfare, economic welfare, political issues, and law reform decreased to 34,1% from 40,0%, 30,5% from 41,7%, 59,9% from 82,2%, to 52,7% from 81%, respectively. However, the respondents realized that the problems faced are enormous, complicated and take times to solve. Indonesia, the most democratic country in the region, composed of 225 million of population, over 50 ethnics and 450 dialogues, 5 religions, spread over 5 big island and other thousand small islands in three time zones.