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Indonesia Law Update:


[December 2011]

Government Young Officer� Illegal Big Account Modus. The Indonesian center for Financial Report and Analysis � PPATK unveiled thousands of suspicious transactions by local government officers, reaching 1,287 bank accounts of treasurer at local government, 376 by Majors and local government senior officer and 729 Civil Servants� accounts. Their personal bank account reaching billion of Rupiah, far and abnormal from their official income as a government officer. PPATK further details the modus, by way of treasurer� fund withdrawal and transfer, paid to their personal bank account. Treasurer�s account is under the authority of development section, or tax receiving section in the office. The amount transferred can be partly or wholly, where they benefited the gap of time from the budget withdrawal to project payment. Other modus are to intentionally transfer year end budget into their account prior to be re-send to the central government. There is also cash transaction instead of banking transfers, where the number reached 220 transactions with the amount of Rp 500 million to Rp 20 billion. The practices has been under PPATK� investigation since 2005, and is being under suspicion for local government election all over Indonesia.

Indonesian Anti Graft Commission � KPK Received 5,742 reports during 2011. The figure then being under review reached 1,026 with corruption assumptions, where 938 complains were internally investigated by the KPK, 88 complains being coordinated by other related government institutions. Out of 938 complains, 617 complains being taken over under the Deputy of Action in KPK, 204 under the Deputy of Prevention in KPK, 38 to other sections in KPK and the remaining 79 being investigated by the KPK chairmanship. Further, as for the 88 figure, 1 complain being distributed to the police institution, 2 to the general Attorney� Office, 8 complains to State Auditor Office and the remaining 14 to Local Government Supervisory Body.

Judicial Committee: Judges breaches formal law. The release was based on the 2009-2011 research of numerous court decision made by judges all over Indonesia, a research conducted with universities network. The finding indicate 5 major breaches, namely that there are numbers of the accused not being represented by lawyers during trial, decisions not in proportion in considering parties, more and more judges are less able to elaborate witnesses information which in fact is material and factual to the case, the appeal court neglected breach of formal law and being rushed for delivery identified by same day final decision being delivered with the judges closed door decision.

[November 2011]

RI-Malaysia Border in Tanjung Datu border delimitation: both countries to discuss. The border delimitation between Indonesia and Malaysia at Tanjung Datu shall be decided within the law approach. Both countries understood the existing two legal papers applied at the conflicting border, namely the the MoU 1978 signed by Indonesia and Malaysia, and Dutch-British Agreement 1891. according an Indonesian international law scholar, indeed Indonesian negotiator must put its legal frame work that agreement is far more binding than MoU, where MoU serve only as an intent drawn in a piece of paper rather than law between parties. Therefor, the principle of law in general agreement such as �Pacta Sunt Servanda� shall only apply to agreement but not in the MoU. The Agreement 1891 remain in force, and far more descriptive and therefore binding accordingly rather than the MoU 1978 that contains general issue of intention. Another argumentation between both MoU and agreement is, that the 1978 MoU must be followed by an Agreement, instead the other way around. No Agreement is followed by MoU, be it in practice nor in conception or legal academic thought. Following the legal side, the coordinate points of borders between Indonesia and Malaysia at Tanjung Datu determined is also in question, since the coordinate determined unilaterally by he Government of Malaysia was false with no firm method and basis in doing so. The MoU points of coordinate serve only some technical method in determining the coordinate instead the firm and agreeable coordinate points to be drawn in an agreement between Indonesia and Malaysia. It is now up on the Malaysian government side to explain as part of their good intention in doing so and good neighboring principles.

UNESCO: Indonesian Saman Traditional Dance become World Cultural Heritage. Saman has been officially included in November 2011 in the list of intangible cultural heritage, which needs UNESCO�s urgent protection. The said UNESCO statement is to respond Indonesian government proposal to the UNESCO in March 2010. The official statement was addressed during the 6th session meeting in Bali, Indonesia, attended by 500 delegates of 69 countries, International NGO, culture experts and the media. The recognition follows previous UNESCO recognition of Indonesian culture of Angklung (traditional bamboo music instruments), Wayang (puppet doll), and Batik (traditional art sheets). The rationelle to include these into world cultural heritage is to protect its continuance of preservation and originality.

Indonesian Government and Parliament Agree to verify Land Border. The verification is related to land border alignment between Indonesia and Malaysia at the Indonesian territory Camar Bulan and Tanjung Datu. The border was based on the August 1976 dan November 1978 agreement drawn in the MoU between both countries, where that the two areas are splited into both countries, where Indonesia enjoy a bigger area than Malaysia and Malaysia may conduct its activities in the Indonesia side. However. it was initially found now Malaysia� arear has been expanded and in fact occupied �permanently� in the Indonesia area. The Malaysian government denied the findings, even in Indonesia the opinions are splitted into two.

[September 2011]

Indonesia to build a Peacekeeping Center. Indonesian military is establishing a Peacekeeping Center, a simulation center for troops prior entering the conflict area. This center will also serve as a peace keeping all around the world as has been well preformed by the Indonesia� military corps at various UN Peacekeeping program around the world, from the first Indonesian contigent, namely Garuda Contigent 1 in Conga to XXVI. The center will also serve as a center of excellence, with completion of construction this 2011 and will be monitored by the UN Secretary General. Any country may use this center to improve their military capacity.

PTDI Airbus. Indonesia PTDI to cooperate with Spain Airbus Military. The equal partnership between the two major aircraft manufacturing companies are to manufacture new model of CN 295 military version, with capacity to load 73 troops, 48 paratroops, 3 military trucks etc. The version will also for sea patrol/anti submarine and early air warning with 360 degree radar. The CN 295 is another version of CN 235. This aircraft will be fully manufactured in PTDI, Indonesia. Previously PTDI has manufactured with local components varies from 40 to 100 percent, namely CN-212 100%, CN-235 40-60% and NC-295 40%- 60%. Indonesia� PT DI�s has been the leading aircraft manufacturer in Southeast Asia since 1980. the new CN 295 military version has been employed by several countries, such as Finland, Czech, Portugal, Spain, Poland, Brazil, Algeria, Chile, Colombia, Egypt, Ghana, Yordania, and Mexico, with total employed of 75 aircraft and production contact reaching 85 aircraft.

[August 2011]

Immigration Law 2011 under Review. The law released earlier April 2011, is now under judicial review before the Indonesian Constitution Court for particular article of the right of a person for moving as submitted by the 7 Indonesian national advocates, where article 16 of the Immigration Law is against to the Indonesian Constitution article 28A and 28D. During the hearing session of experts, two experts are heard for their opinion, Denny Indrayana (currently deputy for minister of law and human rights) and Ahmad Ramli (academic, state law academic), both are in disagreement with the substance submitted. Denny� point are under the International Law regime, where it is true of principal for political and civil rights under the ICCPR article 12 point 3 as has been ratified and regulated under the law 12 year 2005, both are adopting the same principles of such freedom, but however also implied of declination and limitation of such right of movements. Ahmad Ramli� opinion emphasizes more on the state responsibility as part of state sovereignty. The state is performing its task to protect the territory through immigration law by managing the movement of persons outside or inside the territory in order maintain public order. Therfore, the immigration law may not be construed as a breach of human rights as all other governments in the world implements the sam value in protecting their entry gate from international world.

New Laws, released in late 2011. A number of new laws are released by the Indonesian parliament, namely Law of Supporting Component for State Defense, Law of Intelligence, Law of Judicial Committee (revised), Law of Legal Assistance, and Law of Apartment. The law of Supporting Component for State Defense mainly governs the obligatory of civilians to join the military forces during the time of peace and war. While the law of intelligence governs state authorities to conduct transnational crime, personnel and counter intelligent conducted by state authority such as the police, public attorney and the Indonesian military towards any domestic or foreign threat.  The Law of Legal Assistance managed practicing lawyers to provide pro bono legal services for the needs, funded by state budget and controlled by the minister of law and human rights. Finally the law of Apartment stipulates classification of new high rise housings into general, public, commercial and private use, including obligations for developers.

[July 2011]

KPK Performance Degrade. The said performance of the Indonesian Anti Corruption Extermination has slumped into 56% in the period of 2010-2011, far below 75% during the period of 2008-2009. During the said year KPK breakthrough was highly appreciated for trial and its imprisonment of mostly parliament members, public attorneys, ex-chief police, including chairman of central banks who happen to be Indonesian�s President�s relatives. Unfortunately, the moves in turn put the phenomenal ex KPK Chairman Antasari Azhar and two of its directors (Bibit Samad Rianto and Chandra Hamzah) into political turmoil and victim of slander, which took them to trial as well for crime they did not committed. Two of the directors were released for improper and insufficient evidences. Therefore, public believe that KPK enemies remain strong and keep attacking the anti corruption movement. KPK degrade do not merely of the above attacks, but also loaded with enquiries for investigation reaching 860 cases annually during the period of 2005-2010. The KPK capacity is only at 160 cases, annually, which statistically are corruption-related in goods and services procurement (43%), bribery (29%), budget misuse (17%). The degradation of performances was also identified for KPK under performance in its use of great authority under the Anti Corruption Law 30 year 2002 to take over corruption case which is under the police investigation up to trial and imprisonment. Lastly, is KPK�s under performance to tackle corruption at all levels in the country, not to mention the low human resources at the police institution, general attorneys and the court. The three law institutions performances are far below in public eyes, 25% of public appreciation. However, public still believe there remain good and trusted judges at the court institution (57,9% to 68,6% respondents). The KPK current administration under Chairman Busyro Muqoddas (ex Chairman of Judicial Committee) is seen powerless, which public sees as unsatisfied (60,1%), satisfied (24,4%) and abstain (15,5%). The first period of KPK (2003-2007) was stronger under the chairman of Taufiqurahman Ruki, an ex police officer, where he imprisoned many governors, majors, ministers, and chairman of state committees who was committed to corruption.

Infrastructure Budget Leak. The new mechanism of public tender will minimize the leak of budget in government projects of infrastructure, since those who fails may re-appeal for tender. It is well known that in most projects. The budget reaches Rp1.300 trillion (USD 1.500 million) these years, 4 times higher than in the 1990s. The investment of infrastructure in Indonesia for 2010-2014 in remain high in energy, reaching 15,36 trillion Rupiahs in government project and 61,44 trillion Rupiah for private funded, electricity (125 � 205,79), post and telematic (24 � 215,97), roads (60,82 � 148,45), transportation (85,68 � 258,28), waters (48 � 13,03) and housing (27,19 � 140,33), respectively. The leak is identified, but not easy to investigate. Public can only see the leak for the quality and endurance of the infrastructure after being utilized.

[June 2011]

Poll: Financing the Indonesian Politic Party. The poll was held by a national circulation paper in May 2011 with 745 respondents living in 57 cities all over Indonesia, with a minimum age of 17, figures out that most respondents are aware of corruption turmoil involving 99 members of the political parties for the last 12 years. The reformation era since 1998 has created a strict laws stipulated under the law 2 year 2008, where politic parties financing sources are from the state budgets and politic parties� self financing through profit-making business entities, only. Politic parties are strictly not allowed to seek financing from state companies, foreign individual or companies. However, the poll shows that most respondents are against the idea of financing sources from the state budget (77,6%), state own-companies (80,5%), foreigners (63,85%). Respondents support the idea of self financing from its members (85,2%), individual and companies (70,3%) and politic party own business entity (81,6%). The poll further explained that respondents insufficient politic parties� performance in terms as a medium of people aspiration (76%), education of people� right (66,7%), representing a good qualified and competent politician (81,9%) and failure to perform to unite the nation (81,6%). In another view, the poll also seek a clearer involvement of respondents toward the political party during election, which is sadly mostly are not directly involved with interest, but merely seen as a festival rather than a political education.  The details are that respondents never involved in seminar, discussion (81,9%), never involved during the campaign (74,2%), never contribute goods (92%) or money (92,8%). The poll, however do not represent the national perception over the issues explained with more or less 3,6 error sampling.

Poll: Pancasila ideology need to re-embrace. The need to re-embrace of Pancasila as the only ideology in Indonesia is in urgency, as the 95,7% of 747 Indonesian respondents says during the poll held during 24-27 May 2011. 91,6% also perceive Pancasila must be defended by Indonesians and are still relevant to these days. Pancasila� ideology birth of 1 June is the ideology long embraced by Indonesian long before the birth of the Republic, of 5 rules of representing a state of faith in one God, humanity, unity, sovereignty by the people and social justice. However, the chemistry seems lost since the reformation era 1998, where leaders seeks power but losing the particular character of Pancasila as main identity of Indonesia. The figure become clear from year to year (2006, 2008, 2009, 2010, 2011), where current leaders fails to lead Indonesia� future in 2006 (68,4% agree-27,5% do not agree � 4,2% abstain), 2008 (75,3%-18,9%-5,8%), 2009 (43,8%-44,9%-11,3%),2010 (59,6%-30,6%-9,8%) and 2011 (71,3%-20,3%-7,9%), respectively. Further, the poll figure out that current government is less serious in implementing Pancasila in daily life 2006 (49,6% less serious -44,7%  serious� 5,7% abstain), 2008 (60,6%-34,9%-4,5%), 2009 (42,5%-50,7%-6,8%),2010 (45,6%-46,7%-7,7%) and 2011 (60,5%-32,4%-7,1%). The poll also shows, that social justice is far to reality (71,6%), unity is in danger (49,8%) but tolerance increased year to year 66,2% in 2006, 71,0% in 2008, 77,6% in 2009.

[May 2011]

Poll: Being Happy During Retirement. The Poll held in Indonesia with 650 respondents shows that mostly are willing to be economically well prepare for their retirement. Savings, pension program and insurance are on top of the choices (55,1%), followed by setting up house renting as an investment for extra income (17,3%), take a better health control (13,3%), to keep working (7,3%), no particular preparation (1,9%), keep studying (1,7%) and rely on their children (0,9%). Life expectancy in Indonesia is quite high (67 years) as to compare to the neighbouring countries such as Singapore (81), Malaysia (73), Thaland (70), Cambodia (62), Laos (62) and Myanmar (54).

Indonesia' Energy Souvergnity is in Danger. The danger is merely of the exclusion energy mining from strategic energy sources into commodity, where Presidential or parliament approval is no longer compulsory. Under the new legal regime of regional autonomy, approval now can be obtained from local government to mine energy, coal, gas and oil in particular. As a result, foreign investors are free to mine anywhere without central government approval. This in turn threat Indonesia' energy independence until 2025. Statistic shows, the incontrollable licenses reaches 8.000 mining locations, approved by the local governments, which are controlled mostly by China and India companies. Both countries aggressively supplies their domestic needs of energy, whilst their domestic energy reserve is kept for future domestic needs.The British Petroleum Statistical Review shows, that Indonesia coal reserve is only 4,3 tones (equal to 0,5% world coal reserve), as to compare with China' of 114,5 tones (13,9 world reserve). Indonesia' gas mining data shows, that 28 blocks are under the government control, 77 under joint venture scheme of local-foreign investors, 120 fully foreign ownership and 225 under contract with non-government. The government-foreign investor portion of shares are 25-75 until 2025.

Survey: Soeharto the Populous and Most Successful President. The survey held by Indobarometer, shows that following reformation era for 13 years and 18 month of Susilo Bambang Yudhoyono� 2nd term, 36,5% respondents are in favor of Soeharto, the 2nd president of Indonesia who was in power for 32 years. Yudhoyono himself is on the 2nd in favor (20,9%), Soekarno (9,8%), Megawati (9,2%), BJ Habibie (4,4%) and Abdurrahman Wahid (4,3%). In terms of success, still Soeharto is considered far more succesfull than other Indonesian presidents (40,5%), Yudhoyono (21,9%), Soekarno (8,9%), Megawati (6,5%), BJ Habibie (2,0%) and Abdurahman Wahid (1,85). The poll was held on 25 April 2011 to 4 May 2011 with 1200 respondents age over 17, with the method of questionaire and interview.

ASEAN single currency is not easy. The idea to establish a single currency within the ASEAN region of 10 member countries is not easy, according to the European Union  Trade Commissioner, Karl de Gucht in response to the above idea during the ASEAN Summit meeting. Indonesian Trade Minister Marie Pangestu also responded that EU need 60 years to built a system, including a central bank. Further, economic growth, development, level of social between the ASEAN countries are not that equal to those of the EU member countries. However, the potential remain, with 500 million population of 10 ASEAN member countries, high economy growth, market, USD 1,4 billion total trade values (2009) and resources, it is still possible to establish a single currency.

9 tax fraud modus. The Indonesian police identified 9 method of tax fraud currently upheaveled, involving numerous of taxman under the Ministry of Finance. The first is so-called tax value �modification�, followed by (2) fictious tax forms, (3) taxpayer�s objection �settlement�, (4) omitted of documents of tax objection, (5) taxman acting for the state against himself during the tax court, (6) the use of overseas companies, (7) prohibited shares sales within the company, (8) illegal use of service provided by taxman, and finally (9) withholding tax decision. Since the tax cases are complicated, detailed, highly intellectuality requirement, the tax cases are taken over by government officers special taks forces. The police portion are to arrest.

[April 2011]

Indonesian Anti Law Mafia Task Force received 2529 Complaints. The figure is for the period of 2010 only, recorded until July 2010. Most complaints are on land cases (282), corruption (202), and fraud (149). Other categories falls into public services performed by the government officers, where three most institutions received the most compliant, namely the police (391), court (356) and general attorney office (220). The complaints however do not all relate to corruption, but also mafia issues and low public trusts. The Office of the Anti Mafia has previously identified nine major mafia to combat, namely court mafia, corruption mafia, tax mafia, land mafia, drugs mafia, banking mafia, capital market mafia and fishery mafia. The Office movements in turn created an uneasy environment for the Mafioso, for them to revenge through various possible means to slash down the Anti Mafia eligibility. The Office has identified the three parties who are presently and clearly dangerous, namely the academics who fight on the statehood platform, second is those who directly criticize the President administration�s policies, and thirdly those who criticize the Office itself for its fear being sentenced. The Office further emphasize, that mafia estermination is part of democracy on the ground that mafias has systematically steal people� right over the country�s wealth.

Unsimplified Initiation of AntiDumping Duties. The statement was released by Indonesian Textile Association in respect to the injury and damages suffered by the Indonesian industries, mainly textile. It also applied to other trade defense mechanism, namely safeguard and countervailing duties, as provided under the WTO/GATT Agreement 1994, and has been implemented under various laws and regulation in Indonesia. The WTO noted that since 1994, Indonesian Government initiated 83 anti dumping case, where only 35 reach final determination, statistically -wise 4-5 cases, annually. Meanwhile, the same period, Indonesia has been alleged 157 times for its products being dumped in the foreign market.

Poll: Regional Autonomy Remain in Favour. The Figure shows, that most political parties (9 major parties) are in favor of decentralization system under the regional autonomy mechanism,  since 2001 (55,6%). However, the above figure is seen differently at the elite and public level, mainly the concern over the ripe of corruption at the region in the period of 2004-2011 with 115 corruption cases, where suspects are 8 governors, 23 majors and 84 high rank officers. The corruption legal settlement is seen with pessimism by 49,2% respondents. The Poll further questions respondents, whether the regional autonomy bring the situation into (1) better, (2) good (3) remain bad (4) worsen and (5) abstain, in various segments. The Poll found in terms of a better job, respondents answer is 23,8%-19,4%-13,9%-41,7%-1,2%, while the figure 18,%-30,5%-17,2%-33,5%-0,6% is for life fulfillment chances, 35,4%-24,9%-18,05%-21,0%-0,7% is for infrastructure development, 40,7%-28,8%-16,1%-13,1%-1,1% is for access to better education, 41,9%-32%-14,1%-9,6%-2,4% is for better health care, 16,8%-37,8%-13,8%-14,9%-16,7% is for regional politic stability, 35,4%-34,7%-11,1%-10,0%-8,8% is for public access to for free speech, 27,2%-33,2%-16,4%-12,2%-11,0% is for major performance, 17,3%-19,0%-20,5%-28,7%-14,5% is for corruption legal settlement, 45,5%-37,8%-8,6%-7,4%-0,7% is for security, 36,5%-36,6%-15,6%-7,9%-3,4% is for bureaucracy services, 28,3%-34,8%-16,4%-9,6%-10,9% is for local leadership quality  and finally 34,3%-33,3%-11.9%-13,3%-7,2% is for local regulation quality. To sum up the poll, respondents are of the opinion that regional autonomy succeed, fails and abstain in various social aspects, namely 52,3%-39,8%-7,9% for low education respondents, 48,6%-48,6%-2,8% for middle education respondents and  53,7%-44,1%-2,2% for higher education respondents. The poll by telephone was held with 732 respondents at 57 cities with minimum age of 17 years, shall however do not represent national perception.

[March 2011]

The Indonesian Fair Trade Commission to Catch Up Banking Cartel Practices. The legal action is close-related to the market facts of high rate permanent credit interest practices by big and  dominant major banks (identified as the controller) as then followed by all banks (identified as followers). According to the KPPU officer, KPPU seeks for evidences, specialist, information and documents that related to the doer of the deeds, the initiator, including cartel members. Importantly, KPPU is in search of the cartel agreement or common practices as evidence. The suspicion was initiated by the Indonesian Central Bank, where banks lending rate did not meet significant rate reduce with the central bank. The close investigation and surveillance is planned to be held in the next 3 months.

Impediment of Corruption Extermination: a Structural and Cultural Matter. The main release by the Indonesian Corruption - ICW Indonesia shows, this structural impediment is relevant to the fact of a significant increase of corruption practices from 176 cases (in first semester 2010) to 272 cases (second semester 2010), though the combat never stops. This is relevant to the recent poll during 22-25 February 2011 with 802 respondents in 33 provinces in Indonesia. the poll result shows 77,7% respondents are in agreement that corruptions is getting worst, 18% says it remain the same, 2,4% denied, and 1,9% abstain. The major cause are that 80,9% respondents agree all government officers are corrupt. This figure is relevant to the 86,9% public dissatisfaction of public legal officer actions to uphold the law towards corruption extermination. Further, the poll' other side of cultural side, that the community� cultural attitude itself directly supports the corrupt practices, identified as bribery. 38,2% respondents perceive bribery practice as a common practice instead part of corruption commonly during the licensing process (ID, Driving Licenses) with the public officers. However, the good news is that less and less people these days are aware and are against this bribery practice (61,6%), 65% are against bribery for traffic fines, 88,9% are against bribery during recruitment for public officer and 89,9% against bribery during obtaining business licenses. Other good news that perception gets better of what is determined as corruption, 36,8% are for actions by officer that directly causing public material loss, 30,3% for stealing public funds, 26,9% for actions against the norm and moral values and 6% for others. The ICW urged that combating corruption shall be done both ways, for the government to enforce good corporate governance, but shall be supported by the community not to bribe. Education of honesty shall be initiated right from the early stage at school, a basic and fundamental building of moral and cultural values, which in turn will support the structural level to decrease corruption.

Malaysia Agree on Protection Terms for Indonesian Domestic Workers. The other terms in the renewed MOU between both Manpower Ministers also include compulsory one day weekly holiday, no holding passport by the employer, transfer costs, banking payment for salaries, and increased salaries, which regulation applied to only Indonesian domestic workers.  The 2 years talk of domestic workers by both ministries was initially triggered by numbers of torture by the Malaysian employers towards their Indonesian domestic workers in 2007, which was followed by moratorium by the  Indonesian government by temporary not to send these domestic workers to Malaysia.

[February 2011]

Mindset Reform is Required against Corruption. The statement released during the seminar in anti corruption in Jakarta, recently. Statistic shows that, 180 corruption cases taken over by the KPK during the period of year 2004 to 2010,cases are related mostly in 5 areas, namely, Goods and Services, Procurement (2004:1 case, 2005:12, 2006:8, 2007:14, 2008:18, 2009:16 and 2010:16, total 86 cases), Licensing (0-0-5-1-3-1-0 with total 10 cases), bribery (0-7-2-4-13-12-19, total 57), illegal levies (0-0-7-2-3-0-0, total 12) and finally misuse of local budgets (0-0-5-3-10-8-5, total 31), respectively. It is well noted that corruptors does not only exist at the central government (by creating fictious projects), but also at the local government level (collecting community funds for personal use), including public project consultant (over-billing), or even the community (illegal funds collection). Therefore, to combat this chronic mindset of corruption, early education of anti corruption will be the key for mindset reformation, which is seen to be effective to help them to avoid corruption but to work to increase their welfare.

Corruption at Local Government, the highest. According to the Indonesian Corruption Watch, ICW, within only 6 month of the first semester year 2010, the most vulnerable corruption is at the local government spending budgets with 38 cases only, followed by infrastructure (32), social community (20), education (17), land (8), health (6), energy and electricity (5),  taxation (5), transportation (4),  sports (4), banking (3), court (3), harvest (3), mining (2) and housing (2). 

407 local government regulations in 2010 are irrelevant. The release by the office of the Ministry of Domestic Affairs shows those regulations do not comply with the Law 28 year 2009, noting it as irrelevant to business and investment permit and trading licenses, including illicit regulation related to local taxes and customs which in turn are counter productive. According to the Law 28, the local government (and municipals) are limited to submit regulations related to only taxes for hotel, restaurant, entertainment, advertising, public lighting, parking, soil waters, land and building-related only. The 407 regulations are out of 3000 regulations, where 2593 regulations classified as relevant with the Law 28. The Ministry urged the regulations to be revoked, as 1.878 typical local government regulations has been also revoked during the period of 2002-2009.

33% seats in Public Universities are available for Indonesian Bright High School Graduates in 2011. The free seats are at Public Universities with special track recruitment, so-called �by invitation�, applied to only the brightest high school graduates grade 12 to sit without passing university national exam, based on their last 3 years school excellent study result and high school national exam result (NEM). The said 33% portion covers 53.850 seats out of total 165.034 to enter prestigious and competitive Indonesian Public Universities. The entry exams are direct and one time national examination, with approximately 350.000 to 500.000 participants out of at least 760.000 high school graduates, annually. This high competition examination with national competition rate is  from 1:5 to 1:40, depending on faculties chosen. This is actually an old system being re-applied prior to the Education Law 2001, which recently annulled by the MK. This old system offers a fairer chances bright students to sit regardless their social-economic-financial background, where competition is the key.

Foreign and Domestic Investment increased 54,2% in 2010. The total investment is Rp 208,5 trillion (2010), increased from Rp 135,2 trillion (2009), far above the targeted at Rp 160,1 trillion. The good news does however is quite irrelevant to the increase of employment, since most investment are of consumptions dominated by warehousing, transportation and telecommunication. The Indonesian Investment Board (BKPM) urge investors to setup manufacturing plants in their portfolio, which statistically manufacturing is reduced from 4,4% (2nd quarter 2009) to 4,1% (3rd quarter 2010), as it is also  indicated by the reduce of power consumption for industry at 8,9% (2009 to 2008). The major problem is of bad infrastructure in Indonesia, namely limited power supply (which has been settled accordingly), roads, and ports. This have caused Indonesian� rank for investment go down from 115 (2009) to 121 in 2010, according to the World Bank Report.

The Government to Implement  New Assessment Remuneration Method at 14 Ministrial Offices  The initial release is from the Vice President Office acting as the Independent for Bureaucracy Reformation, chaired by Mr. Erry Riyana (ex KPK deputy) with members from University of Indonesia, Gadjah MAda University, State Enterprises, and the KNKG (National Committee for Governance Policy). The above complete assessment method shall be released mid this February, to be implemented at government re-assessment of staff' integrity, infrastructure, and business process, including Human Resource Management. The report will also stipulate that government staff career monitoring and assessment will be conducted by an independent team and Quality Assurance Team, instead of the internal administration conducted so far. The next only entity to enforce is the National Guidance Committee for Bureaucracy Reformation. Remuneration will be the key credit for government staff performance, those with higher remuneration are those who are good in performance, integrity, and moral. Reward and penalty mechanism will be applied, including publication of staff wrongdoers. The Indonesian Budgetary Body will also be involved in technology-base for ministrial financial report to reduce the contact between the auditor staff and the said ministrial staf' office. The said remuneration program has been earlier-implemented at 3 ministries, namely Finance Minister, State Auditor Office, and the Supreme Court since 2007. The second round will be the office of the State, followed by other 9 offices.

[January 2011]

Indonesia' PDB Exceed USD 700 billion in 2010. The number issued by the World Bank put Indonesia into rank 18 out of 20 countries in the G20, group of countries with significant PDBs. The income per capita also reaches USD 3000 annually (or USD 3,900 PPP - Purchasing Power Parity in 2009), with capital market records for the best value of market share in Asia Pacific as of 31 December 2010, including Indonesia' capital deposit at USD 92,6 billion as of 31 December 2010, the highest ever in the Indonesian economy history.

17 Indonesian Governors, Suspect of Corruption of Provincial and Local Budgets. The number released by the Ministry of Domestic Affairs, mid Januari 2011, where the numbers increased every week or forthnigthly out of the total 33 governors in 33 Indonesian provinces. The number are those not included in other 138 Indonesian Majors/Chiefs of Local Government (out of 459 Majors in Indonesia), suspect of corruption of Local Government Budgets. The corruption suspects now facing charges under the Indonesian Anti Corruption Law, for them illegally spent local budgets for their personal political campaign during the pre-election sessions to run for the governor' seat. The corrupted budget ranged from Rp60billion to Rp100 billion.

Poll of Administration' Performance and Trust. The poll released by a major national circulation newspaper in January 2011 shows, that the administration of Indonesian President Susilo Bambang Yudhoyono' popularity in general has decreased significantly, from 75% (January 2010) to 55% (December 2010), as to compare to the same decrease  in 2009 from 90% (January) to 65% (December). A detailed figure are explained in various areas, where people in perceptions are of being satisfied, not satisfied, and abstain, with figures in corruption extermination are 26%-78,6%-0%, crime busting 40%-60%-0%, politics issues 23,3%-71,7%-4%, human rights violation 25,7%-70,9%-3,4%, public legal officers resettlement 27,6%-70,6%-1,8%, and law empowerment 28,7%-68,3%-3%, respectively. Respondents also asked to view their utmost urgency for the administration to solve, are corruption extermination 31% and economy 21,3%. Others are social welfare 13,6%, law enforcement 12,6%, jobs/employment 10,8%, politics 5,9% and others 2,2%. As of for the 20110, respondents have faith and expect more in better education system (85,2%), health (83,2%), security (80,7%) and freedom of expression (80,4%). The poll was held over the phone with 725 respondents in 33 provinces and 57 majors/cities in Indonesia, with respondent minimum age of 17 in December 29-30, 2010. The poll, however do not represent the general perception of Indonesians.




Indonesia Law Update:


[December to July]

[December 2010]

41 Public Entities Not Transparent in Budget Information. The request by an Indonesian NGO FITRA was based on the KIP Law � Law on Public Information Transparency that came into force early 2010, where it found that only 41 out of 69 are not able to comply with the effective applicable law to disclose its DIPA � Budget Expenditure Fill-in Forms. While other 13 public bodies responded but rejected to disclose the DIPA and the remaining 15 responded and disclosed the DIPA. The total 163 public offices are the target since the request was formally submitted during the month of June and July 2010, covering 34 Ministries, Parliaments (House and Senate), judicial bodies and law enforcers (KPK, Police, the Supreme Court and Constitution Court), governmental non-ministrial entities (19 out of 22) and other entities such as the Commissions, Committee (9 out of 56). The NGO further indicated, lack of responses and unavailable infrastructure and systems are those to be pointed out, which is interesting to see that such most incompetency are at mainly those the judiciary bodies, except KPK. The same qualifications also occurred at the legislative bodies where no responses and DIPA are from those entities, except the Senate Offices. Those the remaining who are good in responses and disclosed its DIPA however also found that number of pages are missing.

The Indonesian Information Commission Held Adjudication Session on Police High Rank Officer� super Bank Account.  The non-litigation session is with regard to the dispute for no responses of information disclosure of 17 police officers bank account between the ICW - the Indonesian Corruption Watch against the Indonesian Police Headquarter. The ICW�s request was previously not responded by the Indonesian Police Headquarter, arguing that the police had earlier released its findings that only 2 accounts are indicated with crimes, where 1 account was untraceable and the other account� owner has passed.

KPK Appreciate the establishment of the Whistle Blower System at Public Offices. The 6 offices are Pertamina (National Oil Company), Tax Office, Custom, PLN (state-owned electricity company), ministry of Agriculture and LPSK � the Witness and Victim Trial Body. The system are directly connected to the KPK office, except Pertamina who allows the whistle blowers to report to the higher rank officer, but still allow them to report to KPK. Upon receiving the information, KPK still conduct initial cross check to minimize trash information, whilst protection of the informant is on top of the priority. So far, the system has gone well and secured to fight against corruption in Indonesia.

Anti Mafia-Special Task Force: Indonesia Mining Mafia is a Collusion between Private Company and Bureaucrat. The Special Task force - established the office of the President of Republic Indonesia,  is now shooting at the mafia in mining, where it is well known that great power and money are in conspiracy with greater power.  The Task Force identified, the mafia moves are unlimited and aggressive, not only within the area of illegal mining, law abuse, but far reach and widespread, which occurred all over the country for a long time. The Task Force identified the abuse are Illegal Mining, Licensing Mafia, KKN (Corruption-Collusion and Nepotism), tax fraud, illegal levy, non-obedient to domestic law, backing, mining royalty, illegal financing for local election, illegal export, plan and mining overlapping , area blockage, social and local culture conflict and environment disaster.

[November 2010]

Poll on Efforts of Corruption Extermination by Law Enforcers. In respond to the recent unsettled notorious case of corruption by a taxman Gayus Tambunan who owned at least Rp98 billion in his personal account, public shows their rage and increase of distrust at 65,8% to mainly to 3 major law institutions, namely the Police, Public Prosecutor, the  Court, and KPK, with result of strong support for death sentence for corruptors (69,3%) including to compel the state to make them and the family poor (65%). Public pessimism for a clean government also reached as low as 65% as no serious effort to combat corruption has been shown by those institutions (90%). The poll was held by a national circulation newspapers R&D recently from 16-19 November 2010 with 681 respondents at minimum age of 17 in 57 cities at 33 provinces.  The detail of the poll shows that of the above 4 institutions, public perceived no serious effort had been attempted by the Police institution (77,2% against serious 20,3%), Public Prosecutor (78,0% / 17,8%), The Court (74,2% / 20,4%) and KPK at the lowest distrust (47,6% / 47,0%), respectively. As for its positive image of the above 4 institutions for 4 periodical events (February 2009, October 2009, November 2009 and November 2010), the figure shows the Police was at 42,7%-41,8%-40,6%-16,4%, the Public Prosecutor (35,1%-34,9%-35,7%-20,0%), the Court (35,2%-37,2%-40,5%-21,4%), while KPK remain the highest positive image (77,5%-48,3%-66,1%-46,3%), respectively. However, some also perceive the case was blown and driven into politic issues as the case involve a high political profile of the leading Golkar Party owner of Bakrie Group who 3 major of its subsidiaries was directly involved in the tax embezzlement through bribery of at least Rp 25 billion to Gayus who himself not only represent as a taxman but also as an attorney for tax payers in the tax court under the Ministry of Finance. The three subsidiaries involved in tax embezzlement are PT Kaltim Prima Coal (KPC), PT Bumi Resources and PT Arutmin. A number of inferior law officers had been imprisoned, but public believe there remain the untouchables. Bakrie Group, an Indonesian tycoon so far has been a suspect for directly responsible for numerous unsettled notorious cases of gigantic business malpractices, such as malpractice mud flow in 2007 (environment disaster) that cost Rp8 trillion, investment/insurance fraud in 2008 and now the other 3 companies in tax embezzlement.

Expatriate Salary Survey: 49 percent salaries are spent in Indonesia. The 2009 Indonesian Central Bank survey covers 365 expatriates who work and live in Indonesia (Java, Bali, East Kalimantan and Riau, with salaries ranges from Rp25million to 50 million (additional package not included), Rp 75 million to Rp 100 miilion (managers and directors level), and over Rp125 million. The survey shows that the 49 percent are spent in Indonesia are for foods, recreation, entertainment and sports, while the 31% are deposited, and remaining 20% are sent to their home town (remittance). Their Salaries are paid directly by their employer in Indonesia (57%), trhough bank transfers (67%), while only small number paid from their principal abroad (20%). Most deposited their salaries in bank, while only 10% do not. Remittance are regularly made to their home town (53%) are those at the manager level (36%) and directors (21%), where directors remits more (60%) than the professionals (47%). The amount remitted mostly are less than Rp 10million (41% respondents), covering portion 20 to 40 percent of salaries, are those at supervisor level (64%). While professional is at 49,9% remittance (5% respondents). The number of expatriate registered in Indonesia reaches 45.384, with various appointment types: direct employment (55,9%), no special tasks  (38,7%), business expansion (13,6%) and business relocation (3,5%). However, 43,9% expatriates are those who choose Indonesia as their personal choice to work. Further, the survey also educational background, where mostly are with bachelors degree (62,4%), post-graduate degree (25,8%) to sit as professional and technician in various business sector, such as processed-industries (35,4%), finance-leasing-services (13%) and Telecommunication and Transportation (12%). Duration of stay mostly are more than for 1 year (84%), with nationalitiy from Asia non ASEAN (50,4%), China(41%), Japan (22%), South Korea (18%), and India (13%).

Indonesia Younger Generation Attitude Survey, 2009. The poll was held by a national circulation newspaper with 980 respondents at 56 years maximum of age. However, the survey in fact emphasize more at the younger of 16 to 30 years. As to respond to the question of what is their idealism, most respondent answers are to help the needs (total 31,4% with 25,2% of 16-30 years, and 35,8% those over 30 years old), being rich (total 28,8% / 36,3% / 25,3%), famous (12,2% / 18,1% / 8%), leader in their community (17% / 25% / 39%), respectively. A to their personal perception, the respondents perceive them as being independent and success (15,3%), productive (14,2%), zeal (12,2%), broken(11,3%) , modern/technology-oriented (7,6%), lazy/sloppy (6,2%), hard worker (5,9%), mind-setter (5,9%), free (5,7%), polite (3,4%), others (6,9%), and abstain (5,4%).

3,000 corruption cases reported by whistle blowers. KPK through its Whistle Blower� System � KWS has received at least 3,314 reports from the community of corruption evidences by the government officers, out of 69,589 visitors from the community. KPK has conducted its preliminary detection and found that 2,600 reports are close to initial evidence of corruption by law enforcers, government officers and high rank persons in the community. The KWS is a secured-system and high-jacked proof that secure any single identity if the sender. The privacy is secured by the system and the authorized person.

Indonesian Constitution Court Concluded 320 Judicial Reviews. Since its establishment in 2003, MK has also annulled 57 laws considered in contrary and or inconsistent to the Indonesian Constitution. The said revoked law, mainly are those drawn with particular political attitude, which is not enforceable for these laws are against to the higher laws.

[October 2010]

Attorney� General Dismissed. The dismissal by the Indonesian President Susilo Bambang Yudhoyono was legally-related to the Indonesian Constitution Court (MK) ruling late September 2010, upon citizen lawsuit against the government for the illegal official term of the current Hendarman Supandji as the Chairman of the Attorney General. MK explains, the Chairman tenure shall officially legally be made in parallel with the President�s term, where in fact it was illegal Supandji had not been officially re-appointed by the President acting as the Head of the State. MK further explained the case was not a failure of the law, but merely an administration mal-practice. Indeed, MK had added a so-called term �sex reconfirmation� to the article 22 (1) sub d Law 16 2004 of the Indonesian Attorney General, reaffirmed the Law is not in contrary to the Constitution 1945 (conditionally constitutional). The MK decision was made following series of court sessions to respond complainant Yusril Ihza Mahendra, who happen to be an ex Minister of Law and Human Rights. The MK decision which was made with two other judges dissenting opinions, where both justified the article shall be interpreted as an integral part of a law instead in particular, and equality before the law legal concept. But simply the MK summarize that the current Attorney-General tenure has no firm legal-official basis with regard to the law, which law 22 itself do not necessarily in contrary to the constitution, but the Court ruling has set out a clear interpretation towards the article, that the Attorney-General tenure must begin and terminate upon the new presidential term.

Legal Note

: the Indonesian Constitution Court - MK decision has set out a new paramount decision in the history of Indonesia in the era of reformation since 1998, where a citizen can immediately dismiss a highest rank government officer through legal procedure and fair trial. Secondly, it is also interesting to know that at this point, the president had never intervene law jurisdiction during and after the court sessions, even the said Attorney General� seat is under President� exclusive and highest authority to appoint (acting as Head of the State). According to an interview weeks after the decision made, the MK Chairman admitted he only once responded to the president� call three days after the ruling day, after a number of missed calls on the same day. President himself asked whether his personal comprehension is in line with the MK judgement. Three days later, the President dismissed the Chairman of the Attorney General. The series of breathtaking sessions has shown that the balance between of the Trias Politica has been well maintained and respected by respectable Indonesian stateman.

Proposed Bill: the Empowerment of Government Officer. The bill proposed by the Ministry of Government Officer Empowerment will stipulate rules applied from recruitment, attendance, competency, integrity to dismissal. The new law will be titled �Dicipline Government Officer Regulation�. Recruitment will be made on-line, transparent and fully objective with orientation to capacity and integrity. Performance will be based on merit system, where additional capability of managerial skills and competency will be a requirement to be in structural seat. The said practice has been conducted successfully at the Ministry of Foreign Affairs, who obtained the ISO standard 9001 since 2008.

400 Bankers in Indonesia not allowed to direct, or own bank until 2023. The list was released by the Indonesian Central Bank, recently, was based on the January 1995 regulation 27/118/KEP/DIR as revised in Central Bank Regulation 5/25/PBI/2003 Fit and Proper Test for bankers. The list collected so far reached 400 name of bankers since 2003 through investigation. The list is a reminder to public to increase their awareness when appointing personnel to conduct banking activities.

Poor Students 20% Quota at Public Universities. Following the annulment of the National Education System Law and the Education Institution Law 9/2006 earlier March this year by the Indonesian Constitutional Law, the government released a new subsidiary regulation 66/2010 effective with transition period until December 2012. The regulation 60/2010 stipulate compulsory portion of 20% seats for poor students at public universities owned by the government. The legal status remains as a State Enterprise, but its financial independence is slashed and revenue generated now is categorized as state non-taxable subject, including the empowerment as Public Service. The previous law entitles public universities to independently control its financial matter, where the control is questionable since the scheme is more on business instead of public service with less protection to the poor.

Indonesian Central Bank regulation for Bank Transparency. The regulation is for banks in Indonesia to publicize its prime lending rate to avoid from cartel practices between banks due to the wide spread of rate between lending and deposit, one of the highest in Southeast Asia� reaching 7 percent as to compare to 4-5%. The said practices is now under serious investigation of banks in calculating its credit rate, including questions of the how banks treat public money. The practice shows clear that banks are merely to seek for nett interest margin (NIM) for a bigger profit for its internal business. The new regulation will be effective in November, where banks must publish its deposit rate and lending rate in media.

New proposed-law to punish the family of the corruptors. The said idea is merely an anger expression by the public for corruption practices by officers in the government and private entities. The ide of the new law is more a perception of corruption as a high crime, but the punishment so far give low effects. The proposed law to punish the family of the corruptors is an opinion addressed by the deputy of the Indonesia KPK, M. Jasin.

[September 2010]

Public Universities an elite for the non-haves students. The statistic released by an education analyst shows that the number of poor students to access public universities has decreased significantly from over 10% (in 1980-1990) to only 4,19% in 2008. While the rich students has reached significantly to 32,4%, respectively. The research is based on so-called Disparity Raw Figure based on students economy background based on the 2003-2008 Census. The major cause is the Education Law 2003 released earlier to allow Reputable Indonesian (National) Public Universities to allow the rich to enter with less qualification, less competitive method and money-base entry. To solve the problem, it is necessary all public universities to back to low cost-basis with more government budget. Further, the entry must be transparent at once with trusted technology system which is accessible all over Indonesia.

Legal Note: Thank to the Indonesian Constitutional Court who in early 2010 has annulled the Law of Education 2003 and Law of Education Institution 2009 to fulfill public need of a good and reputable public school and public universities. Both laws regarded derive characteristic as public servant but driven as private entities, where cost and budgeting is included, and emphasize on money-orientation. Therefor, the both law brought less access to the poor who composed 60% of Indonesians, who is well known where most intelligent students are from. The above research released of lesser portion from over 10% to less than 5% within 8 years, is the fact as a result of both laws. The Constitutional Court itself earlier ruled that the government must obey the law 18/2006 on State Annual Budget 2007, to meet the 20% Educational Sector, annually. The Government then fulfilled it in the 2008 State Annual Budget. Indonesian Public Universities has long been known to its long -proven reputation for its high competitiveness entry (5% to 12% probabilities), research and publication, student-lecture ratio, and best job market nation-wide and international. Some education expert suspect that both annulled law is part of a grand design to weaken Indonesian human resources.

Seven Indonesian State Universities Ranked Asia 200 Top Universities. The 2010 release by the QS University  ( university-rankings/asian-university-rankings/overall) shows the seven universities are Universitas Indonesia (UI- 2010 is at rank 50, 2009 at rank 50), Universitas Gadjah Mada (UGM � 85/63), Universitas Airlangga (UnAir � 109/130), Institut Teknologi Bandung (ITB � 118/80), Institut Pertanian Bogor (IPB � 119/119), Universitas Diponegoro (UnDip � 161/171) and Padjadjaran Unversity (Unpad � 161/201). Some of the universities experience its increase and decrease toward 2009 ranking.

26 Indonesian Politician suspect of Corruption.  The Indonesian KPK publicly announced 26 names mostly from the PDI-P and Golkar Party at the parliament, being suspect for receiving bribes during the election of an Indonesian central Bank Governor Deputy, Miranda Goeltom. The corruption occurred within the period of 1999-2004, charged by the article 5(2) jo article 5(1) letter b or article 11 Law 31/1999 as replaced by Law 20/2001 on Corruption Extermination article Pasal 55 (1). Previously the Anti Corruption Court has penalized other 4 politicians for the same case. KPK now is targeting at other 3 suspect, including the bribery initiator.

Indonesian House to meet National Legislation Program 2010. 70 proposed bills are within the parliament program for the year 2010, which 36 are the initiative of the Parliament and 34 of the government. However only 6 laws been released with 1 rejected during the period of 2009-2010. Since early 2010, 17 drafts of bill has been approved, namely Law draft of Financial Service Authority, Law draft of Common Financial Security System, and the Central Bank. The parliament task period will end on December 2010, but mostly will get slower in October.

House Member Budget for Comparative Study, increased significantly in 2010.The budget increased to Rp162,9 Billion, 7 times higher than 2005 budget of Rp 23,5 billion, the Indonesian Budget center reported at an NGO office Transparency International. The comparative study held abroad is seen merely as a tour rather than for the purpose of the study, which each study reached Rp4 billion. The tour is less significant as it aims to bring values to the law under legislation compared to other relevant countries. Indonesian Corruption watch also commented, the study did not however a good way to answer most problems in the community, since it is not the expert of the member who is on to duty to leave, but the member himself who is less capable of.

[August 2010]

Poll on Bureaucrat Wealth Report. The Report compiled and held by KPK shows, that the compliance rate range is between 58,95% (Public Attorneys) to 100% (Senators) within the legislative institution. While the compliance rate at other state officials at the state Enterprises is at 71%, the Executive (76,72%), the Judicative (89,70%) and the legislative (99,20%). Back to the legislative, there are 6 institutions, namely the Senator reach 100% compliance (with 132 officers/and all complied), followed  by the Parliament member at 97,12% (556/540), the Supreme Court at 89,84% (9945/8935), Police at 73,54% (6913/5084) and the lowest is at the General Attorneys Office at 58,95% (8636/5091). KPK deputy Mochamad Jasin further details that the overall officers number who has complied until the due date as of 12 august is 99.445 (80,3%) out of 123.836 officers who is considered as state administrators. The report is a compulsory under the Law 28 year 1999.

Indonesia to Claim on Oil Spill in Timor Sea. The claim is for damage due to oil spilling caused by explosion of Montara oil rig in Timor Sea, East Nusa Tenggara. The claim responded to the contamination is an �obligation� since the contamination has reached Indonesia� Economic Exclusive Zone and further has caused severe damages to local people at the coast. An Indonesian team has verified the damage suffered by the local people and to report to the President. The contamination at Montara Well Head Platform at Blok West Atlas, Timor Sea began in August 2009 and has spread to water area near Rute Ndao region and Sawu Sea, particularly accros Sabu Raijua region and southern coast of Timor Island. The spill of light crude oil is counted at 64 ton per day (400 barrel). Montara is an Thailand company, which is said to be responsible for the damage.

Dominating Complain for Police Institution. The Indonesian Anti Law Mafia Task Force admitted that among 2,700 reports, complains for police institution is dominating, followed by general attorneys and judges. Mostly they come from regional area, according Yunus Husein, member of Task Force. Task Force ensured that the claims are checked and they are coordinating with other law institutions.

Private enterprisers corrupt suspect are more than politicians. Private Enterprisers conducts corruption more than the politicians, an Indonesian NGO Indonesian Corruption Watch reported. Out of 176 corruption cases in 2010, 61 accuses private sector, which not the same figure last year, where politicians dominates on corruption list. ICW said that corruptions were being premeditated mostly in the procurement of goods process, like bribing, direct appointment, price bubbling, and fictious report. Another corruptors� profession came after private enterprisers are: section head-officer/ field head-officer (56 people), regional parliament members (52), staff in regional governmental office (35), and head of government service (33).

Performance in Bad Political System. People consider that presidential cabinet could not serve effectively. As shown from a poll in four governmental tasks: strengthening national economic, strengthening social welfare, ordering law and human right, and keeping political and security stability; people only believe on the last one�s result (52.4%). Only 25.6% believe in effectiveness of national economic performance, 27.3% believe in effectiveness of social welfare performance, and only 23.6% in law and human right. Oddly, perception to President Yudhoyono is quite fair nonetheless the result of abovementioned percentage. 57% respondent considers Mr. President�s leadership in cabinet is effective. However, people are not satisfied with performance of the ministers (32.4%) though they are presidents� appointee in helping his tasks. People believe that it is because Indonesian political system forced the President to be unable to appoint freely of his minister. Political bargain and President�s accommodative policy to all parties to minimize opposition made the ministers are those the incorrect person at the correct place. Such kind of system is seems to be effective only for 24.8% respondent. When the respondents were to choose between President�s leadership, minister�s performance, and multi-party system, of which made the governance not running well, 53.6% respondents chosen the political system to be blame.

[July 2010]

Indonesian Constitutional Court (�MK�) to host Constitutional Courts Asia 7th Conference. The conference agenda is to discuss election court theme and the declaration of Constitutional Court Association of Asia, called as �Jakarta Declaration�. Participants are from 26 delegations from Azerbaijan, Bangladesh, Brunei Darussalam, Filipina, Cambodia, Kazakhstan, Korea Republic, Laos, Malaysia, Mongolia, Nepal, Pakistan, Tadjikistan. From outer Asia will be Austria, Germany, Turkey, Colombia, Mexico, Morocco and Egypt. To ensure the conference running smoothly, MK is being assisted by Ministry of Foreign Affair, Ministry of Coordination of Politic, Law, and Security, general directorate of highway construction and maintenance, Angkasa Pura, General Directorate of Immigration, and Police. Indonesian MK is appointed to host is due to its success story settling disputes rose during Indonesian general election and its effectiveness in muffling the conflicts in its very young age of establishment.

KPK� difficulty in Investigating High Rank Police Officer�s Account Case. The Indonesian Corruption Eradication Commission (�KPK�) is still undergoing process to find criminal aspect in high rank police officer�s banking accounts case, a pre-request of legal procedure to be completed prior to investigation of  the corruption indication. Deputy of Prevention, M Jassin, admitted the difficulty is regarding to the modus of money transfer to banking account as it could not be directly stated as corruption act. Meanwhile, Indonesian Police is also investigating the case. The case was triggered due to a report of a major Indonesian magazine showing more tens of general police personal account ranging from USD 120 million to USD 1,25 billion as officially reported by the Indonesian Centre for Financial Transaction Analysis and Trace (�PPATK�). The issue has been started in 2005 but no significant progress and clearance has been made. The recent records show the high rank names are Da�I Bachtiar has Rp. 1,2 T, Adang Daradjatun (Rp. 1,1 T), Makboel Padmanegara (Rp. 800 M), Saleh Saaf (Rp. 800 M), Firman Gani (Rp. 800 M), iwan Supanji (Rp. 600 M), rasyid Ridho (Rp. 600 M), Dedi S Komaruddin (Rp. 500 M), Eddy Garnadi (Rp. 400 M), Budi Gunawan (Rp. 400 M), Mathius salempang (Rp. 300 M), Heru Susanto (Rp. 300 M), Cuk Sugiarto (Rp. 250 M), Syarizal (Rp. 200 M), Sujitno Landung (Rp. 200 M), and Dadang Garnida (Rp. 150 M).

75% Decrease of Illegal Logging in Indonesia. The statement was issued by the Chatham House, an Independent Thinking of International Affairs. This success is the answer of Indonesian commitment to decrease emission from forest deforestation and degradation, according to Indonesian Minister of Life Environment Rahmat Witoelar in Chatham House, London, where he said that the problem must be handled incessantly, with cooperation of producer states and consumer states, including a sharpened Indonesian policy, regulation, and strategy to fight the challenges. The data exposed shows Indonesia� strong commitment to overcome challenge in climate change, emission from deforestation and forest degradation, and to fight illegal logging and trading of illegal product, a commitment delivered during the United Nations 2007 Climate Change Conference and succeeded in resulting Bali Roadmap and Bali Action Plan, in Bali. Similar commitment by the Indonesian President Yudhoyono was also expressed during the G20 Summit held on September 2009 in Pittsburgh, where Indonesia was the early state to give its commitment in decreasing 26% emission per 2020, including Forest and Climate Conference. Also during in Oslo May 2010, Indonesia will introduce moratorium for two years since 2011 to stop turf and forest conversion, which will means a great effect to prevent deforestation and climate change. Other country successfully in decreasing of deforestation are Cameron 50% and Amazon Brazil at 50-75%.

[June 2010]

Hundreds of Indonesian Lecturers and Researchers Now Serving in Malaysia. The said numbers are now serving their knowledge in Malaysia�s education institutions from high school to major universities in Malaysia. The demands of Indonesian lecturers and researchers are so high since Malaysia has limited Malaysian educated human resources. According to the Chief of Indonesian Lecturer and Researcher Association in Malaysia (ILRAM), DR. Riza Muhadi, the Indonesian researchers spread in many areas of knowledge. Riza whom also a lecturer a Malaysian International Islam University (UUIM) and the chairman of International Indonesian Scientist Community, these Indonesian highly-international caliber scientist returned home, following the studies abroad, then make their way straight to Malaysia. The statistic shows significant increase in the last 4 years, for example, Indonesian lecturers in UUIM has reached 40, and keep increasing 4 to 5 peoples, annually. Indonesian lecturers also achieve appreciation in Malaysia, as Dr. Seca Gandaseca, lecturing in Universitas Putra Malaysia, was awarded as best lecturer. IIUM, also DR. Irwandi Jaswir as the best researcher in 2009, defeated other competitors from Malaysia and other countries. He also the best young scientist in Asia-Pacific and represented IIUM and Malaysia. The most interesting part is, that surprisingly those Indonesians migrants keep their Indonesian nationalities and spirit as Indonesians.

6 major Indonesian Public Universities Rank inTop 200 Asian University 2010. The list shows that Universitas Indonesia is at the rank 50, Universitas Gadjah Mada (UGM) at rank 85, Universitas Airlangga (109), Institut Teknologi Bandung (113), and Institut Pertanian Bogor (119) and Universitas Diponegoro moves up to ranking 161st best universities in Asia (2010) together with Universitas Padjadjaran, as it�s previously was in ranking 171st.  Q.S. parameters are based on nine indicators in evaluating achievement of Asian universities, covering from (1) academic peer review (research quality) through survey in academic community, (30% portion), (2) students to faculty ratio which indicates student quantity ration to the lecturer (20% portion), (3) citations per paper (15%), (4) review on alumnus job market (10%), (5)papers published per faculty (15%). How the university engages with international relation is also considered as international outlook side, such as foreign student exchange (inbound and outbound) , numbers of international students, numbers of lecturer from abroad taught in the university, all at 2.5% portion, respectively.

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.

Stronger and Clean Figure for KPK Personnel. The figure is required since KPK has been under attack from various corruption mafias through various instruments in politic and judicial institution available. It was only this year that a judicial review has been requested to the Constitution Court toward the Anti Corruption Law, two of KPK executives charged for bribery against a tycoon, one KPK executives charged for plot-murder, the parliament held a useless hearing for KPK duties, withdrawal by the Indonesian police of tens police investigators in KPK, for which those are plots to weaken the KPK both sides. Denny Indrayana, chairman of the Indonesian Anti-Mafia Law Task Force, has identified those moves, then urge the next chairman and executive of KPK shall have a clear, strong, and independent figure. It is also publicly-known that at least 140 corruptors has been brought to jail by KPK for corruption, which creates fears among the corruptors from the parliament members, corrupt judges and attorneys, businessmen and government officers. However, public remain have strong faith in KPK, including its unbeatable supremacy.

2010 Poll on KPK Performances. The Poll held by a major Indonesian national circulation newspaper shows that public�s trust to KPK remain high, including a stronger image day by day, 49.3% in August 2007 up to 49.7% (March 2008), increased to 63.5% (June 2008), and reaches the highest peak 77.5% (February 2009). The strongest blow finally came in middle of 2009 down to 53% after simultaneous attack to its leaders whom captured for criminal conviction in September 2009, but regained its figure to 71,5% (November 2009) indicated by KPK publicly at the Constitutional Court a record of phone-tapping a conspiracy to set down two KPK leaders by a corrupt mafia.  However, the percentage fell down to 54.5% (April 2010 and June 2010), after publication of trial verdict on Antasari Azhar, former chief of KPK suspect of a plot-murder, and the unfinished investigation of Century Case. In terms of duties carried-out, under the Law Number 30 Year 2002, KPK must fail to achieve public satisfaction. KPK� five primer duties and none of them can achieve more than 40% satisfaction as shown by the figure to carry its duty to monitor governance action is of 39.5%, duty to search and investigate 39.1%, duty to prosecute corruption perpetrator 37.7%, duty to prevent corruption 38.9, and Duty to coordinate with Police and General Attorney is only 36.4%. Public�s satisfaction always fluctuated if they are being asked their satisfaction on execution of KPK duties. The poll shows satisfaction never reach 44% (June 2008) then up to 61,4% in February 2009, but decreased to 51.9% (September 2009), raised again to 59.9% (November 2009) and down to 43.6% (June 2010). As an ad-hoc institution, KPK is not a single fighter, because KPK� working mechanism must also coordinates with Police and General Attorney and other institutions in eradicating corruption to create good corporate governance. All reports from public are gathered, selected, and will be determined which information will be taken care by KPK or other institutions. Until 2008, the reports have reached 8,699 reports, but only 95 reports were seriously proceeded by other institutions other than KPK, a decrease of 90% of classification of information to be given and being proceeded by other institution out from KPK� data as recorded from KPK annual report book 2004-2009. A contrary to what KPK has done, the proceeded increased from 27 to 812 reports at the same period 2004-2009 handled by KPK. The next is issue with morality, following three of KPK leaders are troubled with legal disputes, public now demand various requirements to all upcoming candidates. Public mostly believe that moral integrity is vital (80%), and consider legal knowledge are not so important (only 9%). However, public still believe that people with legal expertise is the most suitable (48.6%) to lead KPK. Others background deemed suitable for the position are clergy (17.8%) and academician (10.6%).

[May 2010]

The Indonesian Fair Trade Commission - KPPU Called For Temasek Penalty Payment. Temasek, a Singapore company is subject to pay Rp. 30 billion penalty following the rejection over verdict review by the Indonesian Supreme Court over the cross ownership case in Indosat and Telkomsel, both Indonesian major telecommunication company who Temasek own significant shares.  The rejection indicated Temasek�s legal rights meet its last resort. The decision to pay has been since December 2009 expected to be carried soon after the rejection.

Background: The case initialized in November 19 2007, KPPU ruled that Temasek� shares ownership in both telecommunication service company, Telkomsel and Indosat, violated Law 5/1999 on Restriction on Monopoly and Unfair Trading. Temasek, beyond reasonable doubt, was found guilty in violating article 27 a Law 5/1999. According to the article, business person is restricted to possess majority shares in same types companies with same main business activity, same market, one business person or group whom control 50% of market segment or particular services or goods. AS a result, KPPU ordered Temasek Holdings to end its shares ownership at both companies by releasing all its shares in one company or by reducing 50% ownership in each company, not later than two years after the verdict has been declared final and binding. Reluctant to hear the verdict, Temasek Holding Ltd, ST Telemedia Pte Ltd, STT Communications Ltd. (STT), Asia Mobile Holding Company Pte Ltd (AMHC), Asia Mobile Holdings  Pte Ltd, Indonesia Communications Limited, Indonesia Communications Pte Ltd, Singapore Telecommunications Ltd, Singapore Telecom Mobile Pte Ltd, appeal the verdict to Central Jakarta District Court. In fact, Court strengthened KPPU�s decision. Supreme Court also rejected their appeal through MA verdict Number 496 K/Pdt. Sus/ 2008 at 10 September 2008. Temasek was ordered to release its shares in Indosat and Telkomsel. Temasek agree to release it, but the release was given to Qatar Telecom, one of Temasek partner companies, through STT. Still, Temasek also must pay Rp.15 Billion penalty to State. Temasek states its pursuance to the verdict and waiting the paying order from the Court, since the verdict is still a publication, said Deputy of Corporate Secretary, Ersyah Marianto. PT Telkomsel Tbk. as the holding company and majority-share holdes of Telkomsel mentions its intention to study the verdict. The verdict however will effecting shares ownership in Telkomsel, and coordination for further steps is needed, said Vide President Marketing and Communication Telkom, Eddy Kurnia.

Madiun City Students Invented Anti Seismic Bricks. Nina Milasari and Christima Kartika Bintang Dewi, students from SMAN 5 Madiun (Central Java Province), achieved gold medal for their invention called �The Use of Sugar Factory Dust in Making Seismic Resistant Bricks�, in Environment Project (Inepo) in Istanbul, Turkey. The invented  Brick has proven stronger than common bricks sold at the market. Even tough no official testing from testing institution, they made a manual testing and indicate the brick has 25% stronger than common bricks, made with composition of 15% dust from Sugar Factory waste and 85% clay can hold until 91831.56 Pa. If the brick used for wall, the foundation brick will hold burden from its sides. Anti-seismic brick also promising better profit when sold. Inepo 2010 itself was taken part by 106 finalists from 45 countries and held from 19-22 May 2010.

KPPU: Twenty Indonesian Cooking Oil Producers Involved in Cartel Pricing. The Indonesian Fair Trade and Business Competition Commission (�KPPU�) decided twenty cooking oil producers are guilty for cooking oil cartel pricing and fined with total Rp.290 billion, which damaging consumers at Rp.1.27 trillion for packed cooking oil and Rp.374.29 billion for bulk cooking oil during the period of April until December 2008. The said verdict number 24/KPPU-I/2009 decided the activity violated article 4, article 5, and article 11 Law Number 5 year 1999 concerning Restriction on Monopoly and Unfair Trading. The court session which brought by Chief Dedie S. Martadisastra, and Yoyo Arifardhani and Didik Akhmadi, decided companies as follows � amongst other- are in violation with the said law: (in bulk cooking oil market) Multimas Nabati Asahan, Sinar Alam Permai, Wilmar Nabati Indonesia, Multi Nabati Sulawesi, Agrindo Indah Persada, Musim Mas, Intibenua Perkasatama, Megasurya Mas, Agro Makmur Raya, Nikie Oleo Nabati Industri, Indo Karya Internusa, Smart Tbk, Berlian Eka Sakti Tangguh, and Asian Agro Agung Jaya, (in packed cooking oil market): Multimas Nabati Asahan, Sinar Alam Permai, Multi Nabati Sulawesi, Smart Tbk, Salim Ivomas Pratama dan Bina Karya Prima.

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, 4th 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 14th 2010. The stipulation was the revision of Minister Stipulation Number 9/2002.


(in ascendant order)

April to January

[April 2010]

Constitution Court: Law 9 year 2009 on Education Legal Entity, Revoked. The revocation is based on the constitutional breach by the said law as identified that such law put new consequences that (1) people now have to fight and pay more for limited seats and proper education at most 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.

9 Mafias at War. The war declaration was addressed by the Chairman of the Indonesian Anti Mafia Special Task Force, Deny Indrayana, a task force established and as ordered by the Indonesian president, Susilo Bambang Yudhoyono. The Task Force identified 9 Big Fishes of mafia currently urged to be diminished, those are Court Mafia, Corruption Mafia, Tax and Duties Mafia, Forestry Mafia, Mining Mafia, Drug Mafia, Land Mafia, Banking and Capital Market Mafia, and Fisheries Mafia. The Court mafia sit on the top of the list as it has hurt people� just and law. Currently the task force has received 383 significant public report regarding the mafia practices in Indonesia.

Rp.140 Trillion Tax Money Lost by Tax Embezzlement, Annually. Indonesia has suffered Rp.140 trillion lost every year caused by tax embezzlement which occurred in tax office. 23 % of tax income is stolen, according to a parliament member from Gerindra Party-Faction. State income targeted to obtain Rp.577 trillion from tax, but only received Rp.560 trillion. Ideally, state could obtain up to Rp.700 trillion, where it is urged for all law enforcers to eradicate those perpetrators.

Amnesty Calls for Migrant Worker Protection in Malaysia. The calls for Malaysian government are of the facts found by the Amnesty International, that migrant workers are misleaded and cheated by the Malaysian employers and its agents for good work and high salary, in order to evade poverty, a fact far from reality for they being tortured and exploited. Workers found their working condition deemed as labor exploitation. In the report called �Trapped- The Exploitation of Migrant Workers in Malaysia�, further details that Malaysia highly depends on the migrant workers from Bangladesh, India, Indonesia, Nepal, Myanmar, Filipina and Vietnam, to work at sectors such as construction site, factory, restaurant, domestic working, oil-palm plantation and other job which avoided by local workers. However, the employers� treatment are far from equal, such as improper salary, unsafe working condition, illegal detention and extortion by Malaysian officer with criminal �like approach. The report by the Director of Policy, Michael Bochenek, documented a wide exploitation in Malaysia, in every sector of works, and no effective inspection system in working area and no effective compensation given to workers for their individual claims. The report is based on more than 200 workers (legal or illegal) in July 2009. The report also urge Malaysia Government to upgrade inspection on working places and conduct judicial process upon the migrant abuse, since they fail to serve their responsibility to prevent violation, including exploitation, enforced work, and human trafficking. However as usual, the Malaysian denied the facts, where later then Amnesty found that Malaysian officers often misuse their authority by arresting migrant workers, make a trick on the workers by searching documents, just to end up with forcing the workers to give them some money. Indonesia has earlier responded by not sending any migrant workers since June 2009 until present.

[March 2010]

39 Parliament Members Bribed over the Senior Governor Deputy Election in 2004. The alleged members for the period of 1999-2004 are from PDI-P (19 members), Golkar (12), PPP (4), and TNI/Police faction (4). The case was initialized during the appointment of Ms. Miranda Goeltom, one of the candidate for the Central Bank Deputy, where it is found that she then bribed 39 parliament members to make her pass the examination process by the parliament. The antigraft body KPK emerged the case when Agus Tjondro Prayitno (former legislator of PDI-P) testified before the KPK for he received a traveller�s check of Rp 500 million (US$50,000) from his colleague Emir Moeis, shortly after the House of Representatives approved Miranda's nomination for the position in June 2004.Miranda was elected with 41 out of 54 votes by the House� Commission IX on Banking and Financial, covering most of all of PDI-P's 17 lawmakers in the commission, 15 Golkar legislators and several commission members from other parties. The Financial Transaction Report Analysis Center (PPATK) later identified 400 traveler's checks allegedly linked to legislators mentioned by Agus. The parliament under the law, has the authority to select  among those are KPK members, Chief of Supreme Court, Chairman of the Indonesian Police, Head of Judicial Commission, and other state officer. However, it is clear that the selection process merely relied on the power of money rather than its qualification, where now people questions parliament members� integrity, morality and qualification.

Two Indonesian representations serve in ASEAN Commission of Woman and Children Protection (ACWC). Both are Ahmad Taufik Damanik and Rita Serena Kalibonso, together with another commissioner from ASEAN countries member to build system to monitor children rights implementation in Southeast Asia and other sensitive issues, such as child trafficking issue in Mekong regional which includes Thailand, Vietnam, Laos, Cambodia, and Myanmar and Indonesia-Singapore-Malaysia issue, which is projected for the next three years. Children recruited for army or involved in arm conflict which happened in Mindanao-South Filipina, South Thailand, and Myanmar is part of the concern. ACWC is a new commission established by ASEAN to carry woman and children human right issues.

Modern retail market dominates in Jakarta. The fast-growing market has beaten traditional market in Jakarta by number. Modern retail market is addressed to mini-market, supermarket, department store, convenience store, and hypermarket. While traditional market is mostly known as market in traditional way, multiple seller spread in one area and sell different kind of goods. The figure shows that during the period of 2005-2008, the increase of the modern retail market is at 117% (from 1.014 units to 2.196 units), while traditional market has not build any market (zero percentage number). Among the development of modern retail market in Indonesia, mini-market has shown extraordinary number, as shown by a research for a period from 2003-2008. The figure shows growth 2,058 units to 7,301 units - 254% increase (for minimarket), and (54 units to 135 units - 150%) for Hypermarket , respectively. In terms of area, modern retail market mostly operated in West Java province, with Jakarta in the second position. Both then combines in an area called Jakarta-Bogor-Depok-Tangerang-Bekasi � Jakarta and its satellites (�Jabodetabek�) as the central of modern retail market spread. Hypermarket remain the largest in Jakarta (represents 1/4 in Indonesia). Jakarta to Jabodetabek comparisons chart shows that, mini-market 1.841 units of 4.939 (37.3%), supermarket 200 of 336 (59.5%), department store 120 of 217 (55.3%), hypermarket 35 of 70 (50%). While the figure for the whole modern retail markets Jakarta to Indonesia represents mini-market 25.4%, supermarket 17.4%, department store 19.3%, and hypermarket 25.3%. The figure for traditional markets in Jakarta per 2008 are 151 units, spread in West Jakarta 27 units, North Jakarta 23, Central-Jakarta 39, East Jakarta 33, and South Jakarta 29. Total of stalls spread in the 151 units traditional market are 98,705 units. Total average visitors in the traditional markets in Jakarta each day are 2 million people.

Medicine Cartel under KPPU Invesigation. The 2 months preliminary examination investigation by the Indonesian Anti Trust Auditor Commission (�KPPU�) is on allegation conducted by several business entities of pharmacies that lead to anti trust. The findings indicated of phenomena of industrial concentration and high price of particular medicine types. KPPU monitoring particularly conducted on therapeutic class, after patent right of the originator medicine has expired. The allegation raised based on the consideration that pharmaceutical industry as strategic sector to national economic due to its domestic market-development potency. Type of allegedly medicine cartel are amplodipine class, consist of Amdixal (Sandoz), Divask (Kalbefarma), Norvask (PT Pf), Tensivask (PT DM) with market concentration 55.8% in PT. Pf and 30% in PT. DM, and concentration ratio (CR4) for 93%. Amlodipine product is medicine that contains dihydropiridine derivative calcium-channel blockers which specifically used for cardiovascular related-disease and expire its patent period in 2007. Price of two primary brands for amlodipine class, Norvask and Tensivask, are far above their generic medicine. In respect of preliminary examination, KPPU has scheduled examination agenda addressed to Respondent I (PT. Pf) in 8 March and Respondent II (PT. DM) in 9 March.

Police Monitoring Weakness. Police duty performance is being complained by people for being contradictive with the rules and the need of justice. Complaints received by National Police Commission (�Kompolnas�) increased significantly from 2007 to 2009, from 597 complaints, 344 then 1.446, respectively. From 1.466, the complaints mostly related to poor service (1.151 claims), abuse of authority (239 claims), discrimination (48 claims), discretion (20), and corruption (8 claims). Poor service is related to prolonging cancellation of case, not willing to accept case, or not reporting case progress. Abuse of authority is related to oppression by police, wrongful arrest, wrongful detention, or wrongful search. Corruption is related to operational budget usage and possessing illegal wealth by the police. Discrimination occurred in giving privilege to particular person or case and abiding the poor. Wrong discretion occurred when police intentionally directing a non-criminal case to be measured by criminal procedure. Investigator unit is the most frequently reported in that claims (1.386), followed by traffic police (13), rookie (1), and other units (66). Bribery culture to higher authority resulted on several crime set-up conducted by the police, said Adnan Pandu Praja, member of Kompolnas. Police members are forced to �voluntarily� provide money to higher ranking-officer, such money are indirectly �paid� through criminal set up of persons, then accused the victim for committing crime, and black-mailed them to give amount of money for their freedom. Weakness in external monitoring, exercised by Kompolnas and internal monitoring by Security and Profession Division (�Propam�), leads to this problem, as indicated by three major issues, such as: (1) Claims from public to Kompolnas which directed to regional police monitoring inspectorate, is directed again to local police chief. Thus, any claims wouldn�t be continued by investigation, but only answered by the chief, (2) Misunderstanding concept of independency when Propam investigation towards investigator officer�s violation is considered as intervention of duty by investigator unit, and (3) Esprit des corps, misunderstanding where every officer misdemeanor shall automatically be regarded as spoiling police chief�s reputation. Hence, all violations will be kept to protect chief reputation.

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.

Indonesian Student Invented Pyramid Calculation Pattern. The 15 years student Ibrahim Handoko then was casted by the German Press for his success in formulating an equation used for completing an infinitive pyramid calculation. He did the correct calculation equity it only during his spare times instead, which amazes his teacher who told the press This story wass initialized when Ibrahim intended to help his sister finishing her school work in summing numbers at top element of pyramid. Commonly, the problem is done by summing the digit one by one in each structuring element to find total amount in the pyramid. But using Ibrahim�s pattern, this process could be done more quickly and precisely without counting the digit one by one. Ibrahim then is now being nominated in Best Youth Researcher 2010 in Germany. This son of Budi Handoko and Nuningsih is also awarded for best mathematic person and entitled to represent his district in state-mathematic olympic competition.

Indonesian Government Finance Consultants to be European Government Consultant. The recent request of the Indonesian government finance consultants to foreign finance institutions (such as Spain and Portugal) was conveyed by the Indonesian Secretary of Finance to the World Bank Head of Delegation in Indonesia. The statement instead of an arrogant one, was triggered by the success story of Indonesian finance consultant to curb the ratio decrease to level 30% (October 2009) from 89% debt ratio to GNP (2000). Early in January 2010, the world was shocked by debt crisis potential in Europe. Public debt of 16 European Union members came to average of 84% of Gross National Product (�GNP�) in 2010, beyond the maximum 60% of GNP limit of public debt, according to Development and Stability Pact. Germany which known for its strictness to maintain fiscal stability has been suffered 78% of GNP rising on public debt this year. France public debt has attained 75.8% of GNP on III quarterly period of 2008, while Greece already in the level 120% of GNP in 2010 (Kompas, January 4, 2010). In Asia, Japan�s debt was estimated to reach 53.5 trillion yen, equal as US$ 597 billion, in undergoing budget period 1April 2009-31 March 2010, which already a record for this country.

[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.

Corruption Eradication Commission (�KPK�) to investigate 15 High Rank Police Officers� Accounts. The said 15 account are in a big amount, suspicious and unusual, where in conducting the investigation, the KPK will join with Indonesian Police Head Quarters. This was a request response of the Indonesian Parliament Member from Democrat Faction, since the issue was rolled years ago towards the Police institution but not responded. The case was brought to public after Indonesia Transaction and Report Analysis Center (�PPATK�) found 15 officers and members of Indonesian Police possessing suspicious accounts.

Judicial Commission Found Court Mafia Tape. The court mafia evidences was taped by an advocate, where it was found various modus of court mafia, ranging from statement manipulation, judgement manipulation to evidences manipulation during trial, according to the Indonesian Judicial Commission chairman, Busyro Muqoddas. The same record also occurred at the Indonesian Office of the General Attorneys and Indonesian Police Institution.

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.

17 Indonesian Public Universities ranked as 100 South East Asia� Webomatrics Best Universities. The 17 state-owned universities together with other 5 Indonesian private universities are led by the Gadjah Mada University in the 8th position, followed by other public universities namely, Bandung Institute of Technology (10), University of Indonesia (17), Universitas Negeri Malang (28), Institut Teknologi Sepuluh Nopember (31), Universitas Negeri Surakarta (43), Airlangga University (45), Brawijaya University (58), Diponegoro University (59), Bogor Institue of Agriculture (61), Padjadjaran University (65), Indonesia Education University (67), Sriwijaya University (70), Lampung University (85), STT Telkom (86) and Universitas Negeri Yogyakarta (100). While the privae universities are Universitas Kristen Petra (19), Universitas Gunadarma (24), Universitas Islam Indonesia (74), Universitas Muhammadiyah Surakarta (76) and STMIK Amikom (81). The first to three positions is given to the National University of Singapore, followed by Kasetsart University Thailand, and Prince of Songkla University Thailand. Webometrics affiliate with Spanish National Research Council, releases such list every January and July, annually.

Poll on People�s Response to Law Enforcement in Indonesia. Law enforcement in Indonesia is perceived as slightly fails to assure justice to the people. The general perception shows that 64,5% percent are unsatisfied, followed by 31,9% for satisfied and 3,6% abstain. Indeed, from all of three law enforcement institutions: Police, General Attorney, and Court, the percentage  showing people dissatisfaction on justice needs are no lower than 85% as to compare to their satisfactions reaches 8.9% (Police), 8.2% (General Attorney), and 9.9% (Court). This poll also indicates what type of crime and in what level the unfairness occurred. The Poll categorizes the unfairness into the types of crimes: economic crime (corruption), political crime, and general crime, as the three are related into criminal justice procedure: investigation, court decision, and verdict execution. In economic crime, 60.5% stated that unfairness occurred in investigation, 66.6% in court decision, and 66.6% in verdict execution. In political crime, the figure is 66.6%-66.4%-65.7% and in general crime 50.7%-53.9%-55.2%. The Poll shows the image of three institutions (Police, General Attorney, and Court) within the last five years, Police was gained national respect in June 2006 and September 2009, the time when Police succeeded in terminating terrorist fugitives. All three institutions also gain national respect in September 2009. But as a respond to the bribery case assisted by an Indonesian-Chinese businessmen Anggodo Widjojo  towards a number of government legal officers, where phone  taping record was played in Constitution Court�s session, the image for the three institutions were declined and still declining until this poll was conducted.  Some part of this poll was held by one of national newspaper in Indonesia area, 9-10 February 2010, with 838 respondents with minimum age 17 years old, and also combined the data achieved from periodically poll conducted since 2005 until February 2010. The respondent for this poll are citizens in nine Indonesian major cities, shall however do not represent national perception over the poll.

CMC: 70% Candidates of Judges for Anti Corruption Court Are Not Recommended. The Indonesian Court Monitoring Coalition � CMC and the Coalition concerns are related to the un-transparent of the recruitment and selection process for the above matter. In spite of guarded by a number of the Coalition (the Indonesian Corruption Watch - ICW, Indonesian Transparency Society � MTI and the Indonesian Center of Law and Policy Study), the Judicial Court has set its own qualification, which do not put on priority candidate� skill and competency, integrity and clean track record, proper wealth, not affiliated with political party, and no direct interaction with corruptors. The Coalition found that among 79 candidates, 55 are not recommended since they do not pass the above Coalition�s proposed requirements.

[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.

4 Indonesian Student achieved an Award in Germany. The said 4 Indonesian State UGM Students won a gold medal at the Mondialogo Engineering Award final round held in Stuttgart, German in November 4th, where the four Annisa Utami, Annisa Sekar Palupi, Benny and M. Aqwi Gibran from UGM Chemical Engineering team collaborated with Chalmers University, Sweden. Benny, a 2006 grade student representing UGM, whom paired with Marcus Hodberg from Chalmers University, Sweden, explained their research proposal called Zero Waste Integration in a Small/ Medium Industrial Cluster. UGM team gain first position among 30 finalists from around the world. With a convincing performance, the collaboration snatched one best position out of 8 gold medal gainers in this tournament. This success has awarded the team with 15.000 euro. The award was attended by McLaren Mercedes driver, Luis Hamilton.

Indonesia to lead as Asian coordinator for Asian-Latin America (FEALAC). The appointment resulted from Secretary of Foreign Affair Summit held in two days in Tokyo, Japan, and ended 17 January 2010. According to the Indonesian Secretary of State, Marty Natalegawa, Indonesia is well prepared for bridging Asia and Latin America, as  been proven in the 1955 Asia-Africa Conference in Bandung. With the same spirit, Indonesia shall become likewise in Asia-Latin America cooperation.

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