LAW AND REGULATION

2010, 2009, 2008

[June 2010]

New 2010 Investment Negative List. The list of Presidential Regulation No. 36 Year 2010, extend opportunities for business investors, which also amend limits of shares ownership in eight business sectors. The new list do not applied retroactively for business concluded prior to the new list, unless regulated otherwise. Some of the list are: special permit for Cyclamate and saccharin industry , increase from 55% to 67% to foreign ownership in construction service, maximum of 49% shares in technical movie products,  increased from 65% to 67% at all location for medical sector (specialist hospital, specialist clinic, health support service or clinic laboratory and medical check up), maximum 95% shares for electricity generator above 10MW and partnership required from 1 to 10 MW, maximum 49% for agricultural production in staple food (corn, rice, soy bean) with land above 25 hectare, maximum 49% for mail service with special permit. However construction data provider to BTS remain closed to domestic investment.

[May 2010]

Constitution Court Refuses the Request to Revoke Law on Religion Disgrace 1965. The basis of the ruling is that the government shall bear the sole authority in creating order in the community in the event conflict rose. If such law is revoked, then such authority is missing to conduct a necessary measure to keep the community back in order.  The applicant’ further request is that such law was made in the event of state-marital law, responded by the Court, that all state martial laws have been sorted out through the TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and partly had been revoked. However the Court’ decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion but all at the same basis of reasoning.

Constitution Court Refuses the Request to Revoke Law on Religion Disgrace 1965. The basis of the ruling is that the government shall bear the sole authority in creating order in the community in the event conflict rose. If such law is revoked, then such authority is missing to conduct a necessary measure to keep the community back in order.  The applicant’ further request is that such law was made in the event of state-marital law, responded by the Court, that all state martial laws have been sorted out through the TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and partly had been revoked. However the Court’ decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion but all at the same basis of reasoning.

KPPU: Nine flag carriers Condemned of Cartel Activity. Again, the Indonesian Fair Trade and Business Competition Commission (“KPPU”) decided nine airways companies guilty for cartel activity accusation on fuel surcharge for Rp.587 billion. The airways companies were said beyond reasonable doubt violated article 5 Law Number 5 Year 1999 which restricts collective costing. They are fined Rp.80 billion, calculated from excess of fuel surcharge applied by the airways companies which compared to the cost on May 2006 or reference from Transportation Ministry. KPPU mentioned that from 2006 to 2009, there are Rp.13.84 trillion excess of fuel surcharge applied by the airways companies compared to estimation reference cost. This reference itself was made according to the signed agreement between Head of National Aviation Association (“INACA”) and nine airways companies at May, 4^th 2006 which mentioned the cost will be at average Rp.20 thousands per passenger. However, airways companies still apply the agreement, even it had been revoked. Meanwhile, there is Rp.5 trillion excess existed from the fuel surcharge compared to Transportation Ministry reference cost, from 2008 until 2009. The airways companies also forced to pay damage to the state for Rp.507 billion, as the excess has damaged the passengers ranging from fines of Rp.25 billion plus damages of Rp.162 billion (Garuda Indonesia) to Rp.9 billion fine and damage Rp.62 billion (Sriwijaya Air). All fines and damage costs will be used to renovate airport and public facility. The other charge mentioned that the companies has violated article 21 for infringement when decided production cost was not proven. KPPU mentioned some factors aggravated its decision, as Garuda has conducted the violation repeatedly. KPPU also blame the companies for still applying fuel surcharge nevertheless Minister Stipulation Number 26/ 2010 ordered to abolish fuel surcharge per April 14^th 2010. The stipulation was the revision of Minister Stipulation Number 9/2002.

[April 2010]

Constitution Court: Law 9 year 2009 on Educational Legal Entity, Revoked. The revocation are based on the constitutional breach by the said law as identified that such law put new consequences that (1) people’s now has to fight and pay more for limited seats and proper education at public education institutions, which however such right is secured by the constitution that the responsibility is at the government to provide education, (2) compulsory uniformity for any education institution into so-called Education Legal Entity has lost the meaning of people’ free right to provide proper education, which prohibited their constitutional right to gather and unite as guaranteed by the Constitution, also (3) the assumption made by the Law to consider that all educational institutions in Indonesia has the same quality, and provide six months chance for some less-qualified institutions to adjust their quality, is a mistake. In fact, even between state owned universities, the gap of quality is clear. The Court also unjustified the government defense that the said law will serve and create effectiveness in monitoring educational service. The Court also annulled one article serving as an umbrella article for the law 9 year 2009. Therefore, the Court ordered all regulation to refer back to the law of National System of Education number 20 year 2003. The Applicants were 6 associations representing a number of communities’ interests against the Government of Indonesia, particlualry the MInistry of Education of Indonesia.

Constitution Court: the Law on Religious defame Act On Religions remain Relevant With Constitution. The Court rejected the applicants request to revoke the law  Number 1/PNPS/1965 by Applicants representing a number of people’ interests. The Court ruling is based on the ground, that the government is the sole authority to put their people in order. The Court deemed that, when conflict rises in that particular circumstance, the government stands as the sole authority to apply force measure. Further, the Court deemed if the law is revoked, that government would have no basis to conduct necessary measures if a chaotic situation is occurred. Concerning the argumentation from Applicant stated that this law was made in state martial condition, the Court answered that all state martial laws have been sorted by TAP MPRS Number XIX/MPRS/1966, which law would had been applied, and which would had been revoked. The decision is not anonymous, since one judge made concurrent opinion and one other judge made dissenting opinion.

[March 2010]

22 Migrant Worker Placement Private Organizer License, Revoked. Ministry of Manpower and Transmigration Muhaimin Iskandar, has revoked mobilization permits of 22 Migrant Worker Placement Private Organizer (“PPTKIS”) for committing various infringements. The action was also taken as a warning to other PPTKIS, to bear responsibilities in case the migrant worker suffers damages, said by Minister Muhaimin Iskandar. Muhaimin stated that several infringements that frequently committed are deserved for sanction. Some of the infringements, among others, are placing workers without fulfilling 200 hours training, improper living place, permit misuse and indication of fraud to migrant workers recruit. Violation also occurred upon article 13 Law Number 39 Year 2004 for not depositing Rp.500 million used for responsibility guarantee to any probability of violation. Many migrant workers claimed from suffering damage and bad experiences during placement period caused by PPTKIS negligence. Protecting the migrant worker is obligatory to both government and placement organization, and that from 500 private placement organizations in Indonesia, only a half considered good. The rest are still able to be corrected but some must be shut down, according to the Minister. Thus, Ministry will cooperate with independent auditor to conduct audit to PPTKIS and standardize service to migrant worker. The actions were taken to increase service standard to develop PPTKIS. If violation are found during the audit, the implication are various depends on the violation level, whether correction to increase the service, warning, or assertive sanction measure. Violation in certain cases involving money and criminal aspect will be engaged by law procedure. Those 22 private placement organizations are: PT Fim Anugerah, PT Tulus Widodo Putra, PT Putri Bersaudara, PT Nour Mansour Abadi, PT Barokah Bersaudara, PT Zaya Abadi Ekasogi, PT Jasa Makmur Sejahtera, PT Maju Puta Dewangga, PT Irfan Jaya Saputra, PT Gabila Wadi Amed, PT Muara Mas Globa, PT Assalam Karya Manunggal Putra, PT Bafa Anugerah Persada, PT Permata Gobel Sejahtera, PT Amrita Mahesa Prima, PT Multi Sukses Putranto, PT Dwi Insan Setia Utama, PT Bintang Lima, PT Prime Global Manpower, PT Bin Hamoud Safarindo, PT Asia Primadona Pratama, PT. Assalam Bersaudara.

[February 2010]

Generic Medicine Drugs Regulation. According to statistics released by the Ministry of Health, Rp2,52 trillion are those market sold of generic drugs as to compared  to Rp 21,07 trillion of those patented drugs in year 2005, where in 2009 the figure is Rp 2,37 trillion to Rp30,57 trillion, respectively. The figure represents only 9-10%, annually. Currently, there are 8-12 generic drugs pharmacy companies where 3 are government-owned as to compare to 204 private companies (31 are foreign investment pharmacies).  To resolve the high price, the government has (out of 453 drug types) reduced prices of 106 types, 33 increased and 314 remain. The major problem according to private pharmacies are those generic is less popular, the cheaper price affect people’ confidence over the effect to cure, the law is unenforceable and insufficient to control the distribution and finally that difference of pricing structure. As a result, consumers are drawn and compelled to buy patented 3.4 times higher prices than the generic drug with the equal cure effect, since most clinics and hospitals do not sufficiently promote and are much in preference to sell patented drugs due to free market system. The recent Ministry Regulation HK.0202/Menkes/068/2010 article 4 now stipulate a clause for doctors to compulsory include generic receipt for patients according their medical indications.

Government to Review Legal System for Children and Poor People. The Indonesian President is planning a permanent change in criminal legal system to allow the law to be closer to justice, especially for children and poor people, where the foundation is of a system that the fundamental policy is close-related to social justice and welfare of the people, where law serves better for those poor family, the neglected, disabled persons, under age children facing legal enforcement, children in drug rehabilitation centre, etc. The change shall be related to terms of imprisonment. Dispensation of imprisonment with tight regulation is needed when the criminal doer is an underage children, decrepit, poor people or disabled person. President said that the change is about giving justice to condition where justice is being trampled upon. He gave the example on how a kid stole cellular phone was imprisoned longer than a corruptor, or an old-poor person was imprisoned after stealing cassava for food, just to survive the life. The changes will also to the terms of imprisonment, particularly children inmates, so they can return to their family, instead of the adult inmates. President agrees to give parole by President for about 500 children inmates, including an existing permanent regulation regarding the children inmates.

[January 2010]

KPPU: 8 Indonesian Companies Suspected for Cement Cartel Pricing. The 8 cement companies are Holcim Indonesia, Semen Andalas Indonesia, Semen Padang, Semen Baturaja, Indo Semen Tunggal Perkasa, Semen Gresik, Semen Tonasa, and Semen Bosowa. The said indication was the initial findings by the Indonesian Anti Monopoly Commission (“KPPU”), which was seen by two companies raising its prices at the same structural level, a finding almost the same as previous investigation where the companies deliberately set up prices through idle of production at the factory. The practices caused price increase as a respond to increase of demand as the supply are limited, a practice since 2006 until today. The 8 companies production reached 56 million tonnes, while the consumption only 35 million, where the idle production capacity was approximately 21 million, the together set up a uniform prices, even higher when the coal prices gone down in the market. Coal is used as main energy in the factory. Such practices breached Law 5 year 2009 on Cartel.

[October 2009]

Intentionally-Flaw Law: Susceptible for Revocation. Chairman of the Indonesian Constitutional Court suspected that recent Indonesian flaw-laws are made not because the parliament or law makers are less comprehensive, but merely of political cheating and pressures from time to time. This has significantly seen as the law are not well tailored with a consequence  to be being inharmonious or are in contrary to the Indonesian Constitution as a paramount of law. The law then may result in an unfair law, discriminative, breaching the principle of collectivity and the law firmness. The Indonesian Chairman Constitutional Court is in hope that the predecessor parliament member of 2009-2004 shall work carefully and seriously to maintaining the law tailoring.

New Law on Anti Corruption Courts is susceptible to be Revoked. The said statement was released by the National Law Reformation Consortium (KRHN), Indonesia Corruption Watch (ICW), together with a numbers of other anti-corruptions civil societies. The new laws was tailored and released by the Indonesian parliament a week prior to its tenure, where then the law are not well tailored and are subject to be challenged before the Indonesian Constitutional Court. Points of article are (1) unclear definition of public prosecutors (Article 1 (4)) a definition said to be defined under (unclear) national law, (2) Article 28 on compulsory requirement of court permission for tapping of suspect corruptors, which indeed in contrary to the commitment of a good governance, (3)  Article 26 of judges composition for corruption case defined by the Chairman of First Instance Court, a double standard on the management of a corruption cases, and finally (4) Article 35 on the establishment of anti corruption court at every provinces in Indonesia, which is doubtful due to its bad reputation and mal-administration, including poor judges qualifications and poor performances in fitghting corruption.

Keris, Wayang and Batik, an Indonesian original Common World Heritage of Mankind. Following the UNESCO Recognition of Indonesia original cultural world heritage of Keris and Wayang since 2003, now UNESCO agreed Batik (an Indonesian traditional sheets used for clothing) as Indonesia’ original cultural world heritage since September 2009, a ceremony to be held in Abu Dhabi 2 October 2009.  The Common World Heritage of Mankind of UNESCO is one of three lists made under the UNESCO 2003 on the Protection of Cultural Heritage of Mankind, where Indonesian is one of the ratifying country. The recognition is part if the effortless Indonesian government attempt since 2008, though projects of intensive researches in the field, involving the community and Batik experts at 17 out of 33 provinces all over Indonesia. The UNESCO after 2 years of considerations by 6 countries, considers that Batik indeed is originally an Indonesian nation cultural icon with unique of symbols and philosophy of human life cycle. It represents not only Indonesia, but also mankind. Batik is considered a traditional art with rich of cultural values maintained for generations. The Indonesian Minister of Culture is now attempting to include Angklung (a traditional bamboo music instruments), to be the next recognition by the UNESCO.

[September 2009]

Dispute Over Songs between Indonesia and Malaysia. The Indonesian song titled ‘Terang Bulan’ and Malaysian national anthem called ‘Negaraku’, are exactly same in its introduction and intonation, except for the lyrics and patriotical beat for the Malaysian Anthem. According to Lokananta, an Indonesian State Enterprise in recordings, the Indonesian ‘Terang Bulan’ song was recorder by Lokananta in a choir version at the Republic of Indonesia Government Radio in 1956, a year earlier to Malaysia independence. The recorded song was copied into phonograph and sited in Lokananta Archive in 1965. Lokananta Archive only stated that the said song is an entertainment song or a popular public song, in Keroncong genre categorization, on 11 minute and 15 second duration and without a composer name. The said song rerecorded to a phonograph on 16 March 1965, together with 3 other keroncong genre songs. ‘Terang Bulan’ was popular in Indonesia years before recorded. The old generation who lived on the era of the said song must be agree that the Malaysian national anthem ‘Negaraku’ was copied from ‘Terang Bulan’.

[August 2009]

The Constitution Court – MK, Reject Plaintifs' Request over the Presidential Election Improper Conduct. The panel of judges decision was delivered 12 August 2009, to serve the request from two other presidential candidates, Megawati Soekarnoputri –Prabowo Subianto and Jusuf Kalla-Wiranto, in respond to evidences brought with an assumption that the election was falsely held structurally and systematic, causing the loss of voters of the other candidates by the unprofessional conduct by the Indonesian Election Commission – KPU. After thorough investigations over the facts and laws, the MK found that legal grounds are insufficient, that evidences brought are incomplete and most are merely based on assumption, shall however be neglected by the court. The MK decision confirms the triumph of Susilo Bambang Yudhoyono and Boediono, and therefor to rule for the period of 2009-2014.

[July 2009]

The Indonesian Constitutional Court (MK) permitting the use of ID card or passport to participate in the 2009 Presidential Election 8 July 2009. The said MK final decree stated by Mahfud MD, the head of MK on the court session in the MK building, and signed by 9 constitutional judges. MK stated that every Indonesian nationality who hasn’t registered on the final election participant list can show their valid ID or passport for Indonesian nationals out of the country to use their rights on the 2009 Presidential Election.

[June 2009]

Material Transfer Agreement agreed by the World Health Assembly (WHA). Indonesian Minister of Health figured that 90% success has been reached by the Indonesian party. It is expected that with the SMTA, Indonesia can get direct access for the utilization (the progress, the research, for vaccines uses and the party who uses) of Indonesian viruses or materials being shared to the WHA. WHA is the highest World Healthy Organization hearing forum. Standard Material Transfer Agreement (SMTA) is an agreement to share viruses or sample.

Law No.10/2008 on the Public Information Transparency will enter into force on 1st May 2010. The said Law will stipulate on public institution obligations, such as the executive, the legislative, and the judicative bodies to provide public information regarding the governance they conduct. Three major main obligations for the public institution must be fulfilled: first, is to announce and provide public information regularly. Second, is to provide information concerning the public needs. An example is that, the National Meteorology an Geophysics Body must provide public information on the weather condition, the Public Works institution on the road condition, the Food and Drugs Supervision body on the food that circulate on the market. Third, is to provide report, especially on finance through the web sites or announcement board. For that reason, all public institutions must have a department functioning on the institution performance publication.

[May 2009]

Indonesian Constitution Court (MK) Refused Judicial Review over the Law of Electronic Transaction and Information.  The refusal are for request to annul article 27 paragraph 3 and article 45 paragraphs 1, where MK judges consider those articles  are not in contradiction with the democracy, human rights, and law state principles based on the 1945 Constitution. It also emphasize, that article 27 par 3 is not in contradiction with the principle of law state, where in such respect it is meant as a tool to simplify life in this digital world and to secure the information traffic, which is in line with the art 28 (g), art 1, or art 2 of the 1945 constitution on the protection of humanity value and dignity, further to avoid from lawless community in the digital world. In response to the final and binding judgement, the applicant shows its disappointment, and warned all journalists to be extra careful. He stated that the court decision was twisted, where it only based merely on a private right.

[March 2009]

Indonesian and Australian Government signed MOU on Visa. The annual 100 double -function visa is particularly designed for Indonesian students both for holiday and work, valid for students age of 18-30 years old subject to requirements the ability to speak both countries languages, healthy, good behavior, and single.  The aim of this MOU is to provide chances for Indonesian students to travel and learn about the life, culture, economy of the neighboring country, while working as their source of fund during holiday. Indonesia is the 7^th country in agreement on the implementation of this double function visa. The 100 initial visas is subject to examination the upcoming year.

Indonesian and Australian Government signed MOU Human Trafficking. The MOU is to avoid the case where Indonesia has become a pivot point for this trafficking to Australia. Both Indonesian Minister of Law and Human Rights, Andi Matalata, and Australian Minister of immigration and Citizenship, Chris Evans agree to discuss the details in the upcoming Bali Peace Meeting, such as Rohingya tribe from Burma. For the latter particular case, Indonesia has its policy to provide an immigration detention house in Tanjung Pinang,  while seeks for  an integrated solution in a short time.

New Regulation for Foreign Pharmacy. The new regulation issued by the Minister of Health Number 1010 year 2008, are a compulsory to establish a pharmacy plant in Indonesia to be called as Pharmacy Industry, where pharmacy industry are now entitled to register drugs, drugs containing narcotics for medical use, patent drugs, be it locally manufactured or directly imported. The regulation also refuses suggestions as proposed by group of international pharmacy corporation to change their member status form big seller into pharmacy industry, since they do not have factory in Indonesia. The major goal are to protect society from drug circulation to meet qualifications, such as condition, security, quality, and benefit. Under this new regulation, foreign pharmacy who do not own a factory falls under the category as a big pharmacy seller (PBF), where they activity are limited to importing drugs from the original factory, running administration and dispensary.

[December 2008]

WHO Benefit Sharing Finally Agreed. The World Health Organization (WHO) finally agrees the new mechanism, as strongly proposed by Indonesian Minister of Health replacing the old one sided affairs-mechanism called 'Global Influenza Surveillance Network' to solving bird flu under the WHO Influenza Network Mechanism. The new mechanism will share virus samples implemented under full and transparent Standard Material Transfer Agreement (SMTA), an agreement to put the party such Indonesia parties into first priority in medicine support for free. The Agreement was made during The Intergovernmental Meeting on Pandemic Influenza Preparedness/IGM-PIP in Geneva, Switzerland, on 7-13 December 2008, which was represented by the Indonesian Minister of Health, Ms Siti Fadillah Supari. The previous mechanism applied for 40 years has put developing countries into jeopardy, where virus sample was sent to a private pharmacy company under the WHO for research and to find the cure, but then commercializing and sell them back at high price instead for humanity.

New Regulation for Foreign Pharmacy. The new regulation issued by the Minister of Health Number 1010 year 2008, are a compulsory to establish a pharmacy plant or factory in Indonesia to be categorized as Pharmacy Industry, where this Pharmacy Industry are now entitled to register drugs, drugs containing narcotics for medical use, patent drugs, be it locally manufactured or directly imported. The major goal are to protect society from drug circulation to meet qualifications, such as condition, security, quality, and benefit. Under this new regulation, foreign pharmacy who do not own a factory falls under the category as a big pharmacy seller (PBF), where they activity are limited to importing drugs from the original factory, running administration and dispensary. The regulation also refuses suggestions as proposed by group of international pharmacy corporation to change their member status form big seller into pharmacy industry, since they do not have factory in Indonesia.

[October 2008]

Indonesian Parliament Delayed Draft of Bill of Supreme Court. The bill has been a controversy for the last 2 weeks, only at the articles stipulating the Supreme Court judges to serve the office until age of 70, 5 years longer than the current law. Some people perceive it as at least 30 of the members of justice soon are on retirement this year. The Supreme Court Chairman, Professor Bagir Manan himself previously succeeded a decree extending 2 years additional retirement in June 2006 benefiting 9 judges on retirement. This decree sparked controversy where he is on a 'special agenda', such as to the 2009 election ahead, to maintain the court mafia versus KPK actions and other NGO movements to curb court mafia involving most of the judges, as Berlin Based Transparency International list the Indonesian Supreme Court among the country's most corrupt institution. Currently, there are 48 justices, of whom eight are set to retire in 2008, ten in 2009 and nine in 2010. Bagir himself shall retire 6 October 2008, but if the bill pass the parliament before it, all the judges will remain in the office until 2011.

Two Advocates Organization: in search for legitimacy. It has been a hard time for the Indonesian advocates, particularly the law fresh graduates who seeks for advocate license since May 2008, pinpointed by the competition of two different advocates organization: Kongres Advokat Indonesi (KAI) vs Perhimpunan advokat Indonesia (Peradi). Tracking down the competition, it has been a long story since 1980 until the Advvocate Law Number 18 year 2003 was introduced, stipulating the 8 existing law associations to merge into one organization, namely Peradi. It was also unfortunate for the Peradi who legally failed the basic legal requirement to held a national congress prior to its establishment, failing to meet limitation 2 years after the inception in 2003, meaning passing the limit in 2005. This failure is the basic acclaim by KAI, where KAI further accused Peradi's exclusiveness and not transparent of high fees charges for new members. The KAI then held its own national recruitment in August 2008 at 24 provinces claiming 11,000 existing and new members, and issuing its new card members acknowledged by a number of courts in late September 2008. The initial case was culminated by the Peradi' revocation of a senior lawyer advocate license in May 2008, for some see it merely of a business competition between both, but then triggered other member who dissatisfied with the Peradi' policies so far. The Indonesian Constitutional Court, Minister of Justice and the President Susilo Bambang Yudhoyono suggested both organizations to unite.
 

[August 2008]

Indonesian Broadcasting Commitee Team Published 4 Improper TV Programs.  The programs breached the Law 32/2004, are film with title Bleach (Cartoon), Detective Conan (Cartoon), Naruto (Cartoon), and other High School TV Programs, notably such program did not suit and did not protect students and teenagers morality. Further, the Team found other 84 TV titles of 316 episodes broadcasted by 9 private TV stations (Indosiar, SCTV, TPI, RCTI, Global TV, ANTV, TransTV) and one government TV (TVRI), breach the abovementioned law. Such TV programs contained non-rated of visualization and substance including coarse language, verbal and non verbal violence (physical and non-physical), no rating of norms and classification of audiences.

20 percent Annual Budget for Education Sector. The Indonesian Constitutional Court has its decision in 13 August demanding the Indonesian government to raise up to 20 percent of state annual budget allocated for education sector as  addresses by the Indonesian Constitution 1945. The budget shall raise from Rp 154.2 trillion to Rp 224 trillion next year, where in 2005 was Rp 78,5 trillion. The current 2008 budget of Law 16/2008 was challenged against the Constitution 1945, since Law 16/2008 provide only 15,6% budget portion. The budget is expected to meet education standard all over Indonesia. In line with the decision, two days priori to the 13 August 2008, the President addressed a speech confirming his administration to set higherbudget for education the next annual state budget 2009.

Legal Notes: The Indonesian Constitutional Court decision and government commitment over 20% education budget for 2009 hailed positive responses from teachers and education institutions, particularly state owned-universities. People now noted that 57 state owned-universities (providing 99,360 seats for undergraduate degree leading bachelor degree, annually) all over Indonesia are receiving a very low budget since year 2000, compelling them to set out new independent financial and budgetary as allowed by the National Education Law through BHMN concept. Under the BHMN, 6 state universities (ITB, IPB, UI, UGM, Airlangga and USU) are free to set their own fees and tuitions, which is considered high. Other state universities follows later in 2004. Previously, students are fully funded by the government during 5 to 7 years study period, provided they passed the national examination. Unfortunately, such conception with fee orientation now provide more rooms for the haves but lesser portion below 20% of seats (out of 99,360) for the poor students, who  may not be able to pay high tuition as much as private universities. While it remain undisputable, that prior to the BHMN concept in 2004, the National Entry Exam to Indonesian State Universities are very tough, with annual from 400,000 contestants out of 750,000 high school graduates, the competition rate are 1 to 20 to 1 to 300 (depending on the reputation of state universities and favorite faculties), where the best and the brightest high school graduates are those who studied at state universities filling total 99,360 seats. As for its good reputation, state graduates received positive job market within and outside Indonesia, a university for thousands of foreign students, mostly from Malaysia who studied engineering and medicine. However, as a result of its current independent financial and policy, now state universities orientation are merely of benefit where bright students but poor are given limited access and seats, where in the future its reputation may be at stake.

[July 2008]

Indonesia must Refuse WTO Agreement. The refusal are based on the exclusion G33 of developing countries represented by Indonesia as spokesman, during the WTO meeting in Geneva ending 30 July. Transparency are the keyword where developing countries must be involved during negotiation attended by G7 members Australia, Brasil, China, European Union, India, Japan and the United States. Indonesia on behalf G33 compelled 'Special Products` (SP) and `Special Safeguard Mechanism` (SSM) to be accommodated in the modality draft for agriculture to protect developing countries farmers at villages being the least protected under the WTO Agreements in Agriculture. The WTO mechanism under the scheme allows developed countries to pour big subsidies to its farmers, subsidy not allowed by developing countries. Further, the scheme of trade liberalization is also unfair where duties differs. At the end, food defense are the most vulnerable for most developing countries. However, disagreements between developed countries, existed, such as India and China vs the US and EU. France as member of the EU request EU's clarification and transparency. The WTO meeting has been delayed for 7 years already due to a number of disagreements.
 

Indonesia - Timor Leste Concluded on Timor 1998. The result issued by Truth and Friendship Commission (KKP) established by both countries, primarily suggested, that both government institutions are those responsible for the human rights violation during the East Timor Poll between the pro-East Timor independence versus pro Indonesia integration in September 1999. Since 11 August 2005 the KKP team members recommendations are drawn in seven chapters and one special chapter, emphasize not on legal grounds, but more on the future commitments by both countries to set up a good relationship.

[May 2008]

Temasek of Singapore lost the Case against KPPU. The award by the Indonesian Business Competition Commission - KPPU penalized 9 of cellular telephone operators in Indonesia for monopoly through share ownership at a number of cellular providers in Indonesia. The 9 companies are Temasek Holdings Pte Ltd, Singapore Technology Telemedia Pte. Ltd,  STT Communications Ltd., Asia Mobile Holding Company Pte. Ltd, Indonesia Communications Limited, Indonesia Communications Pte, Singapore Telecommunications Ltd., and Singapore Telecom Mobile Pte. Ltd and PT Telkomsel. The KPPU award are that the 9 companies are found for breaching article 27 Law 5 year 1999 on Competition Law (for unfair competition), KPPU also ordered Temasek and its 8 subsidiaries to sell all of its shares at either PT Telkomsel or PT Indosat within 12 months, where prospective buyers must not have an afiliation with Temasek, and finally fines Temasek (and 8 subsidiaries) and PT Telkomsel to each pay fine of Rp15 billion. The Temasek then also found thier lost at the Appeal Court, where the award are tougher than the KPPU Award.

[March 2008]

Malaysian Subsidiary Company in Media Content Accused for Unfair Trade Practices. The Indonesian Fair Trade Competition - KPPU identified the Astro All Network Plc (Malaysia) - AAMN breached article 19 paragraph c of the Indonesian Competition Law. AAMN has intentionally through its business contract defined and limit distribution and trade of service and/or goods based on the initial investigation, where AAMN monopolized and took control the distribution of the said TV program during the England Football League 2007.

Indonesian Supreme Court Verdict for Australian Heroin Smuggler. Schapelle Corby, one of other member of Bali 9 appeal was accepted but the Court of 3 members of supreme judges rejected her request, where her sentence remain 20 year in jail for smuggling 9,3 kg of heroin to Bali last 2006.

Government Expects ASEAN Charter to be Ratified by July. The Charter is expected to be ratified by July after receiving informal approval from the House, according to a foreign ministry official. The ramification and thorough explanation documents as requested by the House will be submitted in April or May, where the House are very concerned of  decision making, consensus, voting,  the promotion and protection of rights.
 

[February 2008]

Lombok Treaty Signed. The Agreement between Indonesia and Australia was signed in Lombok in November 2006, came into force Thursday 7 February 2008. The Treaty cover ‘greater collaboration’ in areas such as defense, law enforcement, counter-terrorism, maritime security and emergency preparedness, where it includes a key from Indonesia to demand Australia not to support separatist causes in its giant neighbor’ sprawling archipelagic country. The Treaty was signed both minister of foreign affairs, Hassan Wirayudha and Stephen Smith.