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Indonesia Law Update


[August to December 2012]

[December 2012]

KPK Performance through 2012. The Indonesian KPK - Anti-Graft Commission has been at the main stage of the Indonesian law enforcement in combating corruption, since the era of Reformation 1998. Two previous solid team generations has put KPK at the top performance in imprisoning a number of corrupt high rank officials, including generals, ministers and judges. The current KPK directors was named the third generation to take lead since December 2011, chaired by Abraham Samad and four other deputies, namely the prominent senior anti-corruption figure Busryo Muqqodas. At the beginning, public expectation was turned down, since none of those in the team were the 8 high profile persons listed as proposed by the independent team. Public suspicion spread become inevitable as parliament� hidden agenda to weaken KPK is clear during the previous generation, as can be seen rivalry between the police department and KPK. However, in fact public disappointment was not proven and can expect more for its first year performances of this new team. Active Police General Djoko Susilo, Senior Deputi Central Bank Miranda Gultom and Minister Andi Malarangeng are only of few names that shocked public for their mega corrupt, then torn down from its top seats into a jail. The team also imprisoned other 74 number of senior parliament members, businessmen, active police generals, senior deputies of the Indonesian central banks, high rank political party officers, majors, governors, and ministers, who found their misfortune luck at the anti corruption court for the last 12 months, where 44 of those had been under investigations, 33 prosecuted, 24 had been legally firmed and 26 executed. Compared to the previous year 2011, the figure was 78-39-40-34 and 35, respectively. One particular identified in this year was, that up-ladder investigation mechanism were adopted to trace the grand actor of a mega corruption cases.

Ailianz to pay fine us 12.4 mil for bribery. The US security Commission (SEC) ruled that Allianz has breached the US anti corruption practices (FCPA) as Allianz has been found guilty for bribing Indonesian goverment officers at USD 650,000 to win 295 Indonesian government insurance contracts between 2001 to 2008. For such contractcs made, the German-based Company took benefit at USD 5.3million.

Indonesia is better than the US in Transparancy of Public Information. Indonesia ranked the 20th, better than Great Britain (27), the US (36), Australia (38) and France (61). As a result, Indonesia become the leader in open government together with the Great Britain in the UN Forum for Open Government Partnership, where 4 commitments haa been put forward, namely the increase to provide information availability, supporting public participation, high integrity applicability, and the increase technology access. Indonesia' reputation are based on transparency managed with accountibility, supported by a critical community, with many information references available, which do not necessary in line with the mainstream.

Bubble Economy in Property. A number of Indonesians watchdog put their concern the bubble economy in property as the increase has been tremendous for the last 2 years or more. The steep price increase reached 300 percent in the last 3 years already, but statistically enormously hit 200 percent in the last 2 years only. The banks and the property stakeholder are those being blame for the bubble-pricing through illogic market mechanism. The bank these days has gone through beyond the limit in providing credit for properties reaching high percent capacity of the property, an area defined as red alert. The said symptoms may blown in the near future and put the bank at risk for rush and closed down. Statistically, credit released by banks figure were 113 in 2006, 148 (2007), 194 (2008), 214 (2009), then significantly hit 242 in 2010 and 301 in 2011 and finally 358 in 2012 (September). An independent NGO Indonesia Property Watch, shows their concern that logically the property increase price shall be comparable to the increase of capital income. Indonesia current capital income is USD 4,000 as to compare to Singapore at USD 35.000, but property price in Indonesia is unbelievable far from its Income per Capita.

[November 2012]

Indonesia to Support Regulation on the Impact of Cross Border-Oil Spill. The initiative is based on Indonesia's experience from handling risks taker of oil spill causing sea accidents and environment deterioration, which spills from the adjacent sea borders. The initiative was addressed by the Indonesian delegates during the 2nd international conference in Bali attended by 12 other countries. The supporting issues are of responsibility over oil spill and environment impact as result from off shores-ridge oil exploration and exploitation. The conference result will be brought to the upcoming International Committee of Maritime Law in January 2013.

Bill of Asset Seizure. The draft has reached its final stage at the parliament, as the draft has been proposed by the Indonesia PPATK - Center of Financial Transaction and Analysis. The law will empower the government through the court to be able to seize assets in Indonesia, which has proven not been obtained legally. The seized assets are those proven obtained from corruption, and will be taken over re-owned by the government and a given legal title as public domain. The bill is expected to support corruption extermination and other related laws namely Law of Money Laundering. However, negative responses spreads from a number of political parties in the parliament.

Law on Gas and Mineral, Revoked. The Indonesian MK - Mahkamah Konstitusi, the Constitution Court revoked the Law 22 year 2001 on the basis the law in consistent and contrary to the article 33 of the Indonesian Constitution 1945. Articles revoked were article 1 item 23, article 4 sub paragraph (3), article 41 paragraph (2), article 44, article 45, article 48 (1), article 59 letter a, article 61, and article 63 Law number 22 year 2001 on Oil and Gas. MK further explained, the said the impact of the revoked law at its early announcement in 2001 has created a new entity named BP Migas, whose took the role in controlling and act as regulatory body, a task indeed according to MK, must fall into the sole authority of the government and may not passed to other entity whatsoever. As result of the said rationale, the entity of BP Migas shall become void. The plaintiff were 12 communities orgabizations, submitted in March 2012 on a basis the law and the BP Migas entity is improper, illegitimate and unlawful, as in fact the law has taken over substantive control of state sovereignty in controlling gas and mineral over the public good, where plaintiffs constitutional right was infringed. The plaintiff further accused the BP Migas in practice acts ultra vires, as it took itself as a party in oil and gas contracts, which is rather an act as a broker in oil and gas exploration upstream contracts and BP Migas took benefits for its own for the public good as stipulated. The parties further ask MK to re-position that the contracting parties shall be state own goverment appointed by the government, instead BP Migas. Following the decision, BP Migas annulled the Law and ordered the Indonesian government � the Ministry of Natural resources to take a measurable transition action in taking over the task from BP MIgas, including to review of the upcoming revised new oil and gas contracts, where the government must a be one of the party. The MK also decided an ultra petitum, on the basis as a �Constituion Guardian�, supported by its previous precedences to rule beyond requested under MK Decision number 006/PUU-III/2005, dated 31 May 2005 ad MK decision number 11/PUU-V/2007, dated 20 September 2007, that the MK may and has deicide to revoke a law potentially indicated to harm and infringe the Indonesian Constitution 1945. According to an Indonesian watchdog of laws, there remain other 12 laws on natural resources potentially harm the Indonesian Constitution.

Again, Indonesian Domestic Worker Abused. The case was of an Indonesian domestic worker reporting being raped by 3 Malaysian Police Officer in Bukit Mertajam, Pulau Penang, Malaysia early Noivember 2012. The three police officers are Nik Sin Mat Lazin, 33, serving in the Malaysian Police Office for 13 years already, Syahiran Ramli, 21, 2 years and 1 month in service and Remy Anak Dana, 25, 1 year and 2 months in service. In general, Indonesian domestic workers with low education and less protection have been a victim of a repeated and subsequent abuses of blackmailing, shooting and rape by the Malaysian Police Officers. The accused three police offiers has been detained awating for trial, while the victim, Ms Miranti is a housemaid originally from Batang Village of Central Java, Indonesia now is under the protection at the Indonesia Consulate General Office in Penang, Malaysia. The Indonesian BNP2TKI - the Indonesian National Body serving Protection Indonesian Workers urged the Malaysian government to re-educate their police officers with bad and inhuman attitude in treating Indonesian workers.

[October 2012]

Defamation Case Overturned. The Prita Case has been turned over by re-appeal (Peninjauan Kembali - PK) court decision at the Mahkamah Agung (MA) - Indonesian Supreme Court, the highest appeal level in the Indonesian legal system, where a defamation case is annulled. The MA dismissed three charges previously submitted by the office of the district attorney for being error and groundless, and hence subsequently MA recover Prita�s reputation under the MA Decison number 22 PK/Pid.sus/2011 released on Monday, 17 September 2012. The case was initiated by a hospital patient name Prita for complains in 2009, but her complains found no luck of responses by the Omni Hospital, where she was a victim of malpractice and Omni' Hospital bad services causing her partial loss of health. Her complains however was secured under the Consumer Law 8/1999. In search of second opinions and supports, Prita then spread her e-mail complain to her peer groups, but unfortunately her email then was treated differently by the Omni Hospital. She instead in turn was charged for defamation under both the civil code and under the Information and Transaction Law � ITE Law 11/2008, and tort for material injury under the Civil Code submitted by Omni Hospital to the Registrar Office in Tangerang, outwest of Jakarta. The case exploded and triggered public rage against Omni Hospital, through support of funding once was famously called �Coinage of Justice�. Public found that justice is a matter of who pays more. The rage increased where then it is lately found that the police and public attorneys enjoyed priviledges health services provided by the Omni Hospital, including a number of lawyers and academic found both the police and legal officers at the court charges are on a weak ground. As for the tort case, Prita loss at two courts, namely the first instance court and appeal court, but then this was overturned at the MA, where Prita was released and discharge from any material claim. As for the 3 criminal charges, Prita won at the first court but lost at the appeal and re-appeal at the MA, then finally she won at the re-review appeal process at the MA. According to analysts and academics and practitioners, the set of laws of ITE Law11/2008 contained twofold protections both for the right and freedom to express and also protects good faith and reputation at the other end. However one must be aware the existing Consumer Law 8/1999, where consumers rights gains the utmost protection, and the producer bear responsible of the provided goods and services. However, the public attorneys and police and court legal officers in practice are prone to protect the reputation side only, which of course are academically much easier to understand rather than to understand and to comprehend and put into details of a complicated legal issue stipulated under the ITE 11/2008 and Consumer Law 8/1999. The MA decision in parallel has put another paramount decision, namely the freedom of speech is again, the utmost right protected by the law.

poll on youth attitude. The poll was held a Kompas national circulation newspaper on 21 to 24 October with 819 respondent ages of 17 years and over at most cities in Indonesia randomly chosen. The poll was released on the day of Sumpah Pemuda (Youth Oath � to Unite), a paramount historical moment in the history of Indonesian young republicans in the fight against the Dutch collonialism, in 1928. the youth hold a youth congress, discussion their nation future and set out a plan of fight but this time it is based on an oath called Sumpah Pemuda Integrating 3 main aims to unite Indonesia in only one land, one nation and one language. As time has lapsed, the poll in 2012 resulted in a great significant change than it was in 2011 and 2010. Generally 73 % youth are of the view that youngmen these days are more individual and caught in their own business rather than social-centrism. They also would rather listen and bound to their peer groups (39%) than to their parents (35%), as this figure is also supported by statistics of vandalism by gangster increase significantly from 128 in 2011 to 339 in 11 months of 2012 only. The increase needs of grouping for peer than social orientation has left far behind the option to join groups with ideology and nationhood vision. Indonesian youth today prefers to join organisation with a view of non social basis, rather than with ideology and politic issue for those who grew in the year of 1970 to 1990s (who are now at their age of 30 to late 40s). The law on Youth number 40 year 2/009 has set out the government be at the central and local office the authority to generate youth powers into sicial organization, but did not succeed so far.

Flaw laws: MK. Many laws flaws since its initial drafts, a recent statement relased by the Mahkamah Konstitusi � MK (Indonesian Constitution Court) identifying a number of review of law requested by citizens over a new release-law. The tendency to submit a review at one side is a good sign, an identification of an awakening of law consciousness in the community in order the build a solid and order state. In spite of that, it is also a fact that laws passed by the parliament are drafted with flaws, be it in the substance, in contrary to the constitution, unsynchronized to other relevant laws. Statistics at MK shows only 27% submission are rejected by the MK, or in other words most new passed laws are eligible for review. The MK Law provided a new passed law may be subject for review within 12 months from it become into force. According to MK, the worst law drafted is the law of natural resources laws, where the court found a load political transactions and unprofessional conduct during drafting. MK suggest to increase the control over the draftkng until the finak stage prior to the release of the law, including the urgency of a good coordination between legal officers. An academic review over the law of natural resources once has released an opinion of 7 points required to synchronize laws and make it works. However, MK also admitted most Indonesian laws passed these days are excellent.

[September 2012]

Indonesian Constitution Court - MK ruling over the Law of Intelligent. The MK refuses 3 points of submission to review material of the Law of Intelligent 17 year 2011. The MK are in the view the intelligent law shall remain as it is and is more than important to exist in order to secure citizen of Indonesia from any hinderance of security, threat and will also serve as a protection from abuse of human rights. The court further emphasize grounds of the law to exist, namely the function, authority, role, state secrets are far more important, but the law itself has its frame of reference in terms of protection. The law provide rule of conduct, professionalism, respect of human rights and are in line with the constitution. Therefore, the court decided not to accept the request by the applicants, a representation of a number of non government organization and 18 individuals who claim themselves as victim of the excessive security treatment by the secret agents during the new order era in Indonesia prior to year 1998. Ground of submission to review are 16 articles of the law bearing the characteristic of abuse-prone, excessive and threat. The law 17 year 2011 was enacted in October 2011, become effective on the date of the stipulation.

High Court Malaysia Ruled 12 years Imprisonment for Torture of an  Indonesian in 2004. The court ruling at Putrajaya in Malaysia is the culmination of justice seek by an Indonesian domestic worker Nirmala Bonat who has been tortured by its Malaysian employer Yim Pek Ha of 44 in 2004. The final ruling is 4 years lower than previously ruled by the lower court with sentence of 18 years, whereas High Court did not see evidence of Yim to hit the victim with an iron glass. The court has proven that Nirmala was in fact tortured by YIm by pressing Nirmala with hot iron, poured Nirmala with hot water causing severe and permanent pain all over the body. The Indonesian Consulate as the representative for Nirmala is in agreement and accept the ruling. The tort proceeding remain for the unpaid salaries and material injury.

16 Indonesian State Universities found for Budget Misuse.  The report released by the Indonesian Parliament Financial Accountability was according to year 2008 to 2010 budget disbursement of procurement of goods and services with a number of misuse categories, totaling of Rp 309 billion at 16 state universities all over Indonesia. The Parliament  accused parties involved to bear responsibilities under the criminal code. The particular misuses are (1) procurement of goods and services specs under the contract required, worth of Rp122,53 billion, (2) state loss at 3 universities worth Rp22,88 billion, (3) insufficient evidence or proof of procurement of goods and services of Rp74,49 miliar. (4) overpricing Rp17,82 miliar, (5) incomplete construction facilities,  Rp9,01 miliar, (6) fictious budget Rp595,70 juta., and (7) no fee imposment delay Rp6,90 miliar.

[August 2012]

Citizen Law Suit on Road Traffic. Two Indonesian citizens filed a citizen law suit against the Indonesian President and the Governor of Greater Area of Jakarta, the capital city of Indonesia, for both failures and soon to take action to control and solve the severe acute road traffic problems in the greater area of Jakarta. Both persons are perceived  to be responsible for the road traffic management. The greater city of Jakarta is a home of 11 millions of people during the day, and a home for 7 million during the night, where the road has been filled with 11.362.396 vehicle, of 8.244.346 motor-cycles and 3.118.050 cars starting the early day at 5 until late night at 10. The ground of the law suit is to compel both the president and the governor to urge them to take actions since the traffic has been tremendously a pain for the road users from and to home and workplace in the city. The registrar office of the Fist Instance Court of Central Jakarta finally accepted the legal complain to go on trial, according to the judge panels. This fenomenal preliminary judge decision marked the third new branch of law suit within the area of civil procedure in Indonesia, following the ordinary civil legal suit and class actions. The first class action filed was in 2003, where the government has been considered being wrongful for not taking action towards legal problem faced by Indonesian migrant workers in Nunukan, Indonesia, adjacent to Malaysia. The second was a case where the government was compelled to establish a social net regulation to reduce poverty. The third case was for national exam for the people with disadvantages.

KPPU - the Indonesian Anti Monopoly suspects Cartel Practices in Bean Price. The suspicion by the KPPU is of the sudden price surge of bean in the Indonesian market, for the period of two weeks of August 2012. KPPU suspected, the importers are behind the unfair trade, as has been proven by the case in 2008, whereas the private companies who hold 74,66 of the bean market (PT Cargill Indonesia at 28% and PT Gerbang Cahaya Utama 47%, the rest are 11%, 10% and 4%) was suspected for controlling the supply of beans into the market as well as the import volume. The reason of failure of crops and global warming is less acceptable. Even worst, the national regulation did not limit other private business to join in into the market. The government have no control over it, as been previously controlled by BULOG � the Indonesian Logistic Body during the Soeharto era.

The Indonesian Financial Intelligence � PPATK reported 11  million Suspicious Transactions. The 11 million transactions are those qualified as nominal transaction with value above Rp 500 million each (equally to USD 55,000 which are suspicious, and are close to corruption qualification, as previously also been caught by the act by KPK � Anti Corruption and extermination Body, a bribe by private entity to a tax officer. PPATK also reported 2,300 bank accounts are suspicious, owned by senior officers at most local government during 2004 to 2011. Yunus Husein, special officer at the office of the President,  those suspicious bank accounts meet a qualification where the transactions are within the family, from husband to wife and children, son-in-law or other members in the family. Yunus denied PPATK moves in tracking accounts is against the law, as this is legally based on the Law 28/2010.

[January to July]

[July 2012]

Indonesia to lend IMF. The amount lend is USD 1 million, as agreed by the Indonesian Central Bank and the Indonesian Government. Indonesia as a lender, wishes the amount to strengthen the IMF liquidity, as well as Indonesia� concern over the economy crisis in Europe. Senior Resident of the IMF Representative Jakarta Office, Milan Zavadjil further stated the amount shall to support developing countries in crisis and mostly to support Europe economy. The commitment has been previously addressed by the Indonesian President Soesilo Bambang Yudhoyono during G20 meeting, as current Indonesia economy is in an excellent shape.

The Government to Draw Bill for Business Partnership. The new legislation is a particular law governing business legal entity other than the common use of business legal entity namely the limited liability form under the Indonesian Company Law. This business partnership has long been in practice, namely business joint cooperation or partnership in the form of firm, commandment - CV and private cooperation - persekutuan perdata. The bill will govern details of rights and duties, internal and external relationship, which was lack under the the archaic Indonesian Civil Code and Trade Law. As to compare with the company law which has long been well governed since 1997, and has been renewed in 2004 and 2007, the partnership business has never been re-regulated and legalized, since its first draft of 30 articles in 1990. The Bill is expected to be released, soon.

Indonesian President Dissatisfaction over Law Upholding. 3 main legal institutions are now under close attention, namely the police,  the Office of the General Attorneys and the National Land Bureau (BPN), as identified by their low performance where as a result a clear increase of social and security hinderance, land use overlaps, land ownership conflicts, corruption and horizontal conflicts in the community. As for corruption, there are 5 sectors of corruption, mostly incurred in the area of state and local budgets - APBN, tax, goods and services procurement, oil and gas, and customs and clearance. In the area of state budgets, it was clearly identified that although efforts has shown positive trends in preventing and to exterminate corruption, however there were remain and a growing numbers of local government involved in corruption of such budgets for the last 2 years. In the procurement, it was the practice of mark up of the normal budget remain a common practice in most public projects. In taxation, there remain a big number of tax payers did not perform in paying their taxes, as well as the need to control over the tax officers from corruption of taxes paid. In customs, deviation of imported goods still an object that cost state lost of prospective taxes. Lastly in oil and gas, the President ordered the BPK - State Financial Auditors and the BPKP - State Auditor for Financial Development to work harder. The President however admitted that the are three main institutions has adopted a good mechanism of control, although a harder effort remain required. The efforts are shown as the general attorney office punished administrative sanction to 120 public attorneys and 63 staffs, while the police has increased its numbers to 10.000 to 25,000 new police officers. Land conflicts reached 8307 cases, where's 4000 has been settled. The figure of problems are expected to be reduced and settled within the next 2 years.

[June 2012]

Pendulum Nusantara, established. Pendulum Nusantara (Nusantara Sea Lane Corridor) is a new concept to re-arrange the management of sea freight corridors within the Indonesian sea waters (territorial seas) covering from Belawan Port at the west end of Indonesia and Sorong at the other east end of Indonesian archipelago (East - West Pendulum). The stopover of ports shall be at major port of Tanjung Priok in Jakarta, Tanjung Perak in Surabaya and Makassar in Sulawesi Island. The concept will serve for domestic goods transportation needs, efficiency and reduce cost up to 50%, with an approach of 'trade follow ships'.

Indonesian International Standard School Regulation on Trial. The citizen lawsuit trial was submitted by group of citizens, lecturers, teachers, and non government organization requesting the Constitutional Court - MK to revoke article 50 paragraph (3) of the National Education System Law number 23 year 2003 in particular regulation of  so-called 'the international standard education system' - RSBI as this article is against the Indonesian Constitution 1945. The 7th sessions at the MK has been held to hear experts' views, namely the Indonesian Minister of Education in 1980, Mr. Daoed Joesoef. His 5 points of view has been widely covered as his opinion considered to be deep and logic, that RSBI must be anulled. He first pointed out he RSBI conducting English language as a medium for both math and science subjects are against the artcile 36 of the Indonesian Constitution 1945 on national language Bahasa Indonesia, where it pnly recognizes Bahasa Indonesia as the only single language to be conducted at school in Indonesia. Further the Constitution 1945 article 31 para 2 has put a clear guidance to the government to conduct a good education for the citizen based on the existing law. Secondly, Daoed Jusuf is in view that values being taught in RSBI in other language than Bahasa Indonesia is merely groundless in Indonesia,  a common adopted values in every nation. The real values embedded in Bahasa Indonesia, as this language has been considered by the UNESCO as a modern language with full ability to construct detailed and complicated meanings in a simple way. Thirdly, Language may not however be a basis of a successful academic achievement standard, where it is found that many Indonesians graduated from foreign universities with flying colors regardless of their foreign language ability. Therefore, the RSBI mechanism is seen as a bad approach in enhancing education in indonesia. Finally, there is a clear misorientation of RSBI' legal basis, as in fact  RSBI was in practice is a special class for students integrated into public school as this is contrary to the law where RSBI shall be another new institution to be established to serve as special school outside the public school. Finally and most importantly, RSBI itself creates new social classes within the school right from the elementary level, as it separates between the smart, less smart, the rich and the less rich students. School must serve as a ground for children to learn togetherness.

[May 2012]

Poll on national awakening. The poll was held by Kompas, a national circulation newspaper research division at 12 cities in Indonesia with 869 respondents age over 17 years with 95% validity, in response to the Indonesia National Awakening on May 20. The day reminds Indonesians to the republican heroes of Indonesia in defending Indonesia as an ultimate and sovereign nation, marked by the establishment of Indische Partij by two Indonesians in fight against the Dutch colonialism in 1908. The said poll shows that most are in agreement the urgency need of a national awakening movement (33,1%) as supported by another 57,2%. this is in response to the bad social condition of the nation identified by high concern over extermination of corruption (16,5%), decrease value of Pancasila and unity (15,6%), weak leadership (13,8%), attack of globalization/liberalization (11,2%), capitalism of economy and gap (9,4%), radicalism and the decrease of tolerance (8.4%), weakness of legal system (5.5%), general politic situation (3,8%), and unemployment/poverty (1,1%). Respondents' perceive that there remain a condition recovery in 5 scales (better-remain good-remain bad-worst-abstain) for achievement in politics and democracy with a figure of 19,8%-21,4%-18,0%-35,6%-5,2%, law enforcement and corruption extermination with a figure of 17,6%-15,3%-25%-39%-3,1%, achievement in social and welfare with figure of 16,7%-29,2%-29,1%-22,4%-2,6%, and finally achievement in economy and unemployment elimination with figure of (10,6%-17,5%-25,9%-43,4%-2,6%).

Poll: Absence of A good man National Figure. The poll was published by Kompas, an Indonesian national circulation newspaper, held between 2-4 May 2012 with 757 respondents randomly chosen in 12 cities in Indonesia shows that a national good man figure is in absence in Indonesia currently, as to compare to the 1998 reformation era. 79,2% respondents agree the major cause is that current Indonesia political system prefers to the elites than the welfare of the people, therefore no single figure is currently acceptable (55%). The public then make a comparison of a perfect political leader to the Soeharto era , BJ Habibie and Abdurrahman Wahid to compromise with current figure Soesilo Bambang Yudhoyono which reach only 7,8% support. Four major question being addressed were responded differently with pessimism. As to compare to the Reformation era 1998, the responds are (1) remain good, (2) better, (3) remain bad, (4) worst and (5) abstain for politics situation figure is 12,3% - 11,8% - 22,6% - 48,5% and abstain 4,8%, and law situation figure is 9,6% - 12,05 - 26,7% - 48,5% - and 3,2%, economy figure is  19,9% - 17% - 23,5% - 38,8% - 1%, social figure is 22,3% - 19,4% - 26,4% - 29,9% - 2,0%, security figure is 21,3% - 16,5% - 22,3% - 39,1% - 08%, cultural figure is 36,3% - 29,2% - 11,9% - 18,8% - and 3,8% and finally for education the figure is 26,8% - 32,9% - 16,4% - 21,9% - and 2,0%. When asked for the major cause of this bad conditions, respondents agree that corruption attitude remain the highest (30,0%) followed by the absence of a good figure (29,6%), weak state practices (20,3%), social negligence (12,7%) and others (5,4%). The respondents are also pessimistic and distrust the reform with total distrust 46,2%, still in trust (28,8%), remain in hope of trsut (22,3%) and abstain 2,6%. When it comes to the comparisons of the previous figure of good, 33,9% IS FOR THE FRIST President Soekarno, Soeharto (14,1%), Abdurrahman Wahid (10,8%), Mohammad Hatta (6,5%), none (23,9%) and abstain 9,6%). The current figure of a good man are low, such as Soesilo Bambang Yudhoyono remain on top (7,8%), BJ Habibie (7,4%), Dahlan ISkan - Coordinating Minister of State Companies (6,%), Jusuf Kalla (4,1%), Megawati (4,1%), others (15,3%) and none of them all 55,1%. The poll was held in respond to the current situation, which however do not represent the national situation.

Improvident State Budgets. The Indonesian Financial Control Body found a huge amount of improvident and wasteful state budgets at the central and local government over the 'official' travels by the government officers. the wasteful of such state budgets is reaching 30-40% (Rp5,0-Rp7,6 Trillion) of total official budget of Rp18 trillion (USD 2,0 billion). The modus are to create improper official traveling , through 3 ways, namely fiction, non-fictious and mark up that are related to the manipulating budgeting. Fictious modus is to create a fictious tickets of airlines and fictious boarding passes. Non-fictious modus is by way of a real official travel but no job report is required. The mark up is the last modus by way of escalating the budgets. The mafia of such loss may be traced right from the beginning of budgeting at the parliament to implementation level at ministries and non-ministries offices. The BPK strongly urge the Indonesian police to keep tracking and sight over the improvident budgets, particularly to government officers at ministries and ministries.

Corruption after 14 years of Reformation. The Indonesian reformation in May 1998 marks a great leap toward a new Indonesia in terms of acceleration in democracy and economic growth, a success story in the region. However, the clean government do not accelerate in line, and reformation is seen merely as a political resultant instead culture, according to Busyro Muqqodas deputy of KPK the Indonesian Anti Corruption Committee. Most people perceive corruption grows and gets worst in the reformation era, where collusion and nepotism remain in the political system as proven by those who took the benefits are those within the inner circle of the elite politics, to sit in the executive, legislative and judicative bodies. While the remaining outer-circle who fought with idealism during 1998 are now spread into 2 categories, those being politically independent or allies with an NGO to keep their independency. According to KPK statistics during the period of 2004 to 2011, the inner circles involved in the term of KKN for corruption-nepotism-collusion are 10 actors, namely high rank government officers with 91 cases, private entities or private individuals (55), parliament members (49), majors (29), governors (8), commissioners (7), chief of ministries (6), judges (4), ambassadors (4) and others (31). As for the modus, government goods and services procurement sits on top of the quantity for 96 cases, which has been the concern by elimination through 2 tight regulations released by the goverment itself, followed by bribery (82), budget misuse (35), illegal levies (12) and licensing (10). the yesr on year statistics shows an increase in the above actors, mostly by government officers. (Source: KPK official site).

[April 2012]

4000 Local Regulations revoked. The Indonesian Ministry of Law and Human Rights revoked 4,000 local regulations being inappropriate, discriminate and are against the higher laws of Law 28 year 2008, a replacement of Law 10 year 2004. In spite of the above, the government loose Rp1,2 trillion (USD 1,35 billion) budgets allocated to set up the 4,000 local regulations, where later it was also found the regulations give even a loss to the local government, instead benefits. Rp 100 million is the budget to draft one local regulation. Therefore, the Ministry establish the Local and Centre Office of Assistance for Law and Human Rights to assist local government in drafting local regulation in order the local regulation to synchronize with other parallel and superior laws and regulations. Statistic shows, that 407 regulations has been revoked (2010), and other 175 expected follows in the first semester in 2011. Along the year 2002 to 2007, 1,878 has been revoked, which are close -related to illegal levies and retribution payments to the local governments. An academic is in view local government autonomy is merely as a freedom to put additional and illegal levies in an instant way regardless the substance. However, good responses to revoke has been shown by the local government.

[March 2012]

MK revoked the Right to Appeal in Pre-trial. The articles revoked by the Indonesian Constitution Court (MK) were both 83 paragraph 1 and 2 the Indonesian Criminal Procedural Code (KUHAP), as those articles are against the Constitution 1945 article 27(1) and 28 D (1). The major rationele are this KUHAP codes do not however properly provide equality before the law for citizens and do not provide a simplified and efficient legal procedure embodied in the Indonesian Constitution 1945. Both articles stipulate the pre-trial, where pre trial is merely a legal procedural mechanism provided for a citizen to sue the police for misappropriate and improper procedure of arrest on the ground of human rights. The court may then conduct the pre-trial, however the particular article 83 is seen unfair as it entitled only to the state officer, the police in this matter, a right not entitled for the citizen in turn. Therefore, the MK revised the unjustified articles of both 83(1) and (2). Both the said articles has long been a legal controversy for its inequality before the law, repressive and unjustified at all. The MK decision overturned this triumphly, another MK paramount decision to a better legal equality in the history of Indonesia.

Smart Consumer is a Must. Along with the trade liberalization followed by imported goods with no standards, the Indonesian Food and Drug Authority - BPOM, warned Indonesians to be more cautious in consuming imported products, mainly foods in the domestic market. The main concern is related to serials of consumer laws, namely the Consumer Protection Law 8 year 1999, Food Law 7 year 1996 and Industrial Law 5 year 1984. BPOM so far can only control improted foods through mechanism of SNI - the Indonesian National Standard covering only 83 product composing only 1 percent products in the domestic market. The SNI is mainly for wheat flour, tyre, gas stove etc. out of thousands illegal products with no labels, manual books or even being registered. Therefore, as for consumer�s internal protection, it is strongly suggested to conduct an internal-defensive consumer mechanism. BPOM suggested 5 steps prior to consuming, first is to be critical, second is to read the products label/manual book/guarantee/expiry date, thirdly is to be aware of the SNI attached label, four is to consume appropriately, and lastly to uphold their own rights under the law. Currently there are identified 1,133 illegal product categories in the domestic market, with 99,9% foods are illegal, which in turn potentially may threat consumer�s right. The business of such illegal foods reached Rp1,7 billion, according to BPOM.

Law 13 year 2003 on Outsourcing, Annulled by MK. The articles ruled being in contrary to the Constitution are article 65(para7), 66 (para 2b), where employer must treat equally those outsource labor to permanent labor with regard to tenure, salary and packages. Previously, companies tend to shift permanent to non permanent status for labour (outsourcing) for efficiency. The new MK decision include the prohibition to outsource labor for its core business (source: MK websites)

[February 2012]

Cyberbullying: Indonesian Parents at top of being Concern. The survey held by Ipsos figures that Idnonesian parent are the most concern and aware over cyberbullying. The Ipsos definition of cyberbullying is limited to where a group of children under 18 years old intentionally intimidate, dismay, threat, or defame other children(s) through means of information technology. The online survey with 18,687  respondents from 24 countries shows, that Indonesian parents ranked the first top with 91% for parents with high concern over cyberbullying toward their children or other children(s), followed by Australian parents (87%), Poland (83%), Sweden (82%), United States (82%), and German (81%). The lowest are Saudi Arabia (29%), Russia (35%), China (49%), Turkey (50%), France (53%), and India (53%). Ipsos further found that it is easy to find Indonesian parents who are aware of cyberbullying, because 53% Indonesian parents are aware of, followed by Swedian parents (51%), India (45%), Australian (35%), and Turkey (34%). Only 12% reported their knowledge of cyberbullying with figure proportion of once or twice knew (6%), sometimes they knew (3%) and often knew (3%). However, 60% parents knew their children is a victim of cyberbullying in social network such as Facebook, cellphone and other mobile devices (42%). Online chatroom (40%), email (32%), and instant messaging (32%). Facebook rank the highest prevalency of cyberbullying with figure of 48% to 68%. (source: Kompas)

Indonesian Ministry of Human Rigth establishes Law Centres. The centre will be located at most provinces, to providing services to the community for legal assistance, legal education, including desks for public complains of misconduct treatment by legal officers, mainly the police during investigation. The minister realize that most professional misconduct occur in the local area. A recent case was a 17 year teenager being arrested without trial, mistreated by the police, causing his arm broken. The center will provide such services to minimize unprofessional conduct.

[January 2012]

1414 Mischievious Judges reported in 2011. The Indonesian committee on Judges, KY - Komisi Judisial reported that there were more than 1,000 judges being complained by the public for being mischievious within the period of the first quarter 2011 last year. However, only 1 judges has been punished, namely Judge Syarifuddin allegedly receiving bribe Rp250 million in 2011, followed by 3 being suspended, 6 warned. As for the first instance of court level, 329 judges were reported, followed by the high court 68, commercial court 37, administrative court 18 and religion court 15 judges. As for region, Jakarta is on top, with 110 complains, 53 for North Sumatera, 49 in East java. KY identified, the low intergrity lies mostly on the judges quality, where recruitment lies on nepotism instead of clean recruitments and merit-based of career valuation.

Indonesian Police Authority Slashed. The bill of National Security 2012 slashed in terms of police power in national security, where the power shall be bear by a compromised  national authorities, the army, the administration, including the community. The bill proposed numerous new conceptions, definitions, functions and tools in handling national security . According to historian, the current police power in holding national security is a misconception of long serve of  Indonesian history, the current police authority is a wrong repetition of Indonesian history in controlling so-called national security. The draft has been in discussion since 2005, and reached its first draft in 2011. The bill incorporates various laws, such as law 34 year 2002 of Indonesia Military Law. The main police power is now limited to only handling social and security order in the community due to the limitation of the Indonesian police human resources and its total failures to control national security. Recently, the police task failures are more evitable and widely covered by domestic and international media since the police are drawn to 'concentrate' more on petty crimes such as the stealing of sandals, underwear, stealing fruits, to killing innocent people rather than to completing tasks in corruption, drug, human trafficking and other white collar crimes. Therefore, police role will be returned to its proportion under the bill. The enactment of the bill of National Defense is expected soon to be released this 2012.

Dark Clouds in Law Enforcement 2011: Poll. The poll held mid December 2011 represents a significant decrease of public trust mainly in the current administration to combating corruption. 12,220 respondents perceive a statistic of minus 7 in December 2011 as to compare to plus 32 and down to plus 5 of trend perception in 2008 and December 2009, respectively. The poll of how good law enforcement in Indonesia details are 1,9%-31,3%-32,6%-18,0%-9,8% and 6,3% for excellent- good-bad-mediocre-very bad and abstain, respectively. The critical pointers are for excellent vs bad and very bad. The poll shows 2,9 margin error at 95 percent trust value to respondents with right to vote. The figure shall however do not represent the real national perception. (source: Kompas)

Poll: local government leadership is appreciated with some notes. The poll by 960 respondents  age over 17 years who live in major cities at 33 provinces in Indonesia earlier this year shows a positive result for development progress. 64 percent positively appreciated the local government effort in their hometown development progresses so far, particularly in education and health. Still the progress is seen more in material development but leaving an adequate immaterial agenda such as maintaining the survival of local culture and moral. However, such development are with some notes. People noted that still the bureaucrats are not free from problems. Almost half of the current local government and its deputies are involved in corruptions. Other cases are the inharmonious relationship between the two in terms of politic affiliation that brought them to the office. The poll figures that when asked is it of good or bad local administration performances, respondents answered 62,4%-35,4%-2,2% for good-bad-abstain, respectively. Further, respondents  figures the same for good-bad-don't know being asked how good in community economy with 45,6%-54,3-0,1%, Heath services 58,3%-40,5%-1,2%, a good and qualified education with 40,0%-59,5%-0,5%, public facilities and public services with 53,8%-44,8%-1,4% and local regulations with figure 43,0%-52,1%-4,9%. The latter issue represented in the figure that people see the governor and major cling more to their political alliance than the public good, with figure 53,2% and 50,9%, respectively. (source: Kompas)




Indonesia Law Update:


August 2013

Indonesian Oil and Gas, government unable to control. The statement was delivered by an Indonesian oil and gas researcher, where he pointed out three sectors remain beyond the control of the Indonesain government, namely capital, technology and ris management. The government shall and must however take control in full of those three factors, and foregn companies in oil and gas shalla ct only as an instrument in developing national oil and gas industry. He further added, the Indonesian government also failed to establish a national blueprint road map in oil and gas and fails to execute the control, as where the current local oil and gas institution act only as regulator only. In capital, the government is even worse, �voluntary� to keep Pertamina insufficient in capital since more than 40 years ago. Pertamina is the only state enterprise who is powerless. Unlike Petronas, the Malaysian state enterprise took back 70% of its revenue for country� welfare.

Indonesian President facing legal claim over direct appointment. The public claim was over the President direct appointment of Patrialis Akbar (previously a politician) to sit as senior judge at the Indonesian Constituion Court, breaching article 9 the Law of Constituion Court (Mahkamah Konstitusi), compelling a clear and transparent recruitment. The claimant is the Civil Society Coalition to Save MK, a group of ICW (Indonesian Corruption Watch), Indonesia Legal Roundtable, Puat UGM (Gajah mada University), ELSAM, LBH Padang, submitted 12 August 2013. The coalition further accused the President is in brach article 15, whereas they see Patrialis do nt meet the qualification of good integrity just and good.


July 2013

INDONESIAN student Won World Championship of Cybersecurity. Firman Azhari, an IT student at the prestigious technology institute, ITB in Bandung won the world competition of Cyber Security held by the Univevrsity of Holloway, London, earlier late June 2013. Firman beated other 14 contestants representing 10 countries, following Firman� easy triumph at the preliminary competition for Asia-Pacific Region held at the National University Singapore. Firman� awared for his technology invention of NFC for highly secured transactions. The juries are from Delft University of Technology of the Dutch and Plymouth Universit, England.

Supreme Court Judicial Review Dismiss Local Regulation on Alcoholic Beverage. The dismissal Regulation is the Presidential Regulation � PR No. 3 year 1997 on Alcoholic Beverege Control, a slightly license to sell alcoholic beverage in public. The Supreme Court right to dismiss a lower regulation the law level again has become another legal paramount in the Indonesian legal history. The Court is in view the PR is not in conform to the public needs of order and security, where alcohol consumption and traded in public has caused more negative than positive impact in Indonesia, therefor must be minimized as much as possible. Thus, alcholol beverage allowed to be sold in class B and C with over 5 alcohol content can only be trade in registered restaurants and hotels instead in public shops or general stores. Other laws in consideration is Health Law No 36/2009, Consumer Protection No 8/1999 and Law on Food No 7/1996. Further the court view that the central government has the sole authority on alcholoc beverage regulation instead local government. As part of legal consequences, the existing local laws prohibiting alcoholic beverages remain in force, as long in concordance to the higher law.

June 2013

Indonesian Navy, a World Class.  The Angkatan Laut  Tentara Nasional Indonesia TNI AL - Indonesian Navy rank the world class navy due to its consistency of inward looking and outward looking to manage its human resources, education and trainings domestically and at foreign school, tour of duty, and strong capability basis to defend and to attack at any military threat. As for its military devices, the Indonesian Navy remain in its path to increase its military war ships, and other supporting machineries, as many of them have been designed, manufactured and build locally, such as for submarines, war ships, fregats, attack-ships, and artilleries. As for inward looking, Indonesian Navy remain in its concentration on land and sea borders adjacent to neighbours, small outermost islands, separatism, terrorism, natural disaster, illegal activities over the border and maritime security. For the outward looking, TNI AL  keep its deep analysis over the strategic regional development, especially within the are of Asia Pacific and anticipating actions towards any potential threat possible and its damages.

INDONESIAN military rank world 15th. The release was officially announced by Global, where sits Indonesia in 15th out of 68 countries all over the world in military strength, where the US, Russia and China remain on the first top. Within such rank 15th, Indonesia�s power index is 0,76, with 438.410 active military personnel, 400 bullet proof vehicles, 444 airfighters, 187 military choppers, whilst Indonesian Marine sits on 150 power index with 139 various warships and USD5,2 million military budget. An Indonesian civil expert on military issues perceive this rank 15 is an exceleent achievement considering its limited budget, million numbers of population and wide geographical to reach. It is far beyond Singapore, with a total area of a small city or Malaysia with its limited are of waters. However, he admitted that Indonesian military forces remain need to work hard to provide a better war machines to reach its Minimum Essential Forces.

Indonesia Generals Class of 1975 Supports Gen Djoko Santoso as Candidate for President. The gathering of 250 Indoneesian Military Academy class of 1975 from army, marine, airforce and police is a sign of full support for Djoko Santoso�, previously an Indonesian Highest Military Commander 2007-2010. Djoko Santoso admitted initially is drawn into this candidancy through a non-Javanese Community of Farmer in Palembang, a province in Sumatera, where he personally then deeply take the support seriously. He then responded by setting a community group organization called ASA, Adil-Sejahtera-Aman, a line of Just, Prosper and Secure. Djoko Santoso is one of a candidate with a perfect qualification in career in military, whose earlier career was Chief Commander in the East of Indonesia (Pangdam Pattimura - 2002), Chief Commander for Greater Jakarta (2003), Chief Army Commander (2005) and finally 3 years as Indonesia Military Commander. Djoko candicany is mostly supported by the Indonesian red barret, Kopasus, an Indonesian elite special forces, rank third in the world special military forces.

KPK to monitor of Recruitment at National Domestic Governance Institute - IPDN. The role by the KPK shall be to slash bribery and nepotism during the recruitment, including monitoring transparency of student candidate during the recruitment at all levels at the IPDN, and its other 7 IPDN campuses in Indonesia. The IPDN has long been known for its bad recruitment for future public servant at the government institution under the Domestic Affairs Ministry. However, for years the recruitment has always been not transparent, nepotism, and full of bribe, and as a result the gradute quality are way too low in terms of integrity and capacity. A number criminals cases also are part of this academy, including suicide, rape and murders to juniors. KPK will also implement tight monitoring to recruitment at the Police Academy, School of Public Attorney and School of Judges.

Malaysian Farming Companies Indicated for Smoke Pollution. The office of the Ministry of Environment released its on site investigation over the crisis of air pollution caused by arm burning by a number of individual and corporate owners, domestic and foreing, including 8 farms concession areas owned by Malaysian companies in Riau, Sumatera, west part of Indonesia.  The 8 Malaysian companies are PT Langgam Inti Hiberida, PT Bumi Rakksa Sejati, PT Tunggal Mitra Plantation, PT Udaya Loh Dinawi, PT Adei Plantation, PT Jatim Jaya Perkasa, PT Multi Gambut Industri, dan PT Mustika Agro Lestari, which is now under deep investigation and are lead to brought the case to the court, soon. The fog from farm burning has caused a critical air quality in the sorroundin of Riau, and spread to Malaysia and Singapore. The practice has long been prohibitied under the Indonesia Enviromental Law 1982.

2013 is seen as the year for Justice Collaborator. The statement was released by the Indonesian Protection for Witness and Victim Authority � LPSK following the reward granted by the state legal officer of conditional release of two Indonesians in a mega corruption case at the Indonesian ministry office and the Indonesian police headquaters. The recent development has shown an increase of individuals to voluntarily become a justice collaborator as statistically shown from 344 in 2011 to 655 individuals in 2012. The percentages reach 100% growth. The 2012 shows 215 individuals only were those reporting for human rights abuses, while 34 are for corruption. The major cases in 2012 involves mega corruption of Rp 100 billion (Simulator case), Rp128 billion (Hambalang case), and the big catch of Asian Agri case of Rp1,3 trillion (USD 1.500 billion). However, there are also challenges where the witnesses also report being threat and revenge by the corruptor and their group. 22 out of 30 reported so, and the state has conducted a full protection instead. Currently LPSK is handling 48 witnesses of corruption cases.

32.000 children workers withdrawn since 2008. The statement was released by the Ministry of Manpower, where those were the figure children taken from their workplace back to school through a program called Children Worker Reduce at Family Hope Program - PPA-KH. The Directorate General of Training and Productivity further details those children below 18 years are taken from the workplaces then returned to school, are those who lives in a poor area, compelled to work to cover their basic economy needs. Statistically, there remain other 300 thousand children, where in 2013 it is expected to withdraw at least 11.000 children from workplaces, where it is also expected that employer not to employ them and parents not to push them to work, while the government has its legal power to enforce through special task forces specially formed.

Poll: Pancasila remain as Ideology. The poll was held by a national circulation paper on 29 to 31 May 2013, one day prior to the birth of Pancasila, five pillars of ideological living guide for Indonesians. The Poll was held over the phone with 712 respondent over 17 years at 11 major cities in Indonesia. Respondents in majority of 97,8% claimed that Pancasila remain as the national ideology. In short, the implementation of Pancasila is shown, that most respondent are willing to and do not mind to live with their neighbor with different religion or tribe (91,7%). However, respondents sees that recent conflicts in unity is in threat, where 45% sees it is bad, 17% choose to remain bad, 20% choose it is still good, 11,5% sees it is proven and better in response to question, �compared to 5 years ago, do you see the community are in favor of nation interest above group interest?�. A brighter side of living in harmony remain in helping other people with different religion (over 75%), a value that is seen solid from to time in Indonesia.

May 2013

Consumers Call Center 153 Established. The Ministry of Trade and BPKN released the said 153 call center for consumer� complaint, and suggest consumer to stop consuming bad products and services and keep make complain to the authority, the National Consumer Protection Body - Badan Perlindungan Konsumen Nasional (BPKN). Bayu Krisnamurthi, deputy minister of trade strongly suggest consumer to be aware by information provided in products or services, such as products with unclear labels, not written in Bahasa Indonesia or worse not to buy fruits sold not in the rights season. Retail business shall also respect the law and consumer� right, as recently noted that BPKN receive 1,253 complains, NGO Consumer receive 2.290 complains, which is mostly is on leasing, banking, housing, insurance electricity, water and airlines. Statistics shows there are 50 million middle class consumers, with thousands of complaints but only less than 20 cases are brought before the court. BPKN can act as mediator prior to the court.

The Urgency of State Asset Recovery Institution. The recent talk over the need to establish a government body - so called state asset recovery, was drawn by a number of law academics due their concern of the lack of legal basis to secure many state assets being lost and could not be recovered. The talks has grown stronger due to the slow progress made by the government to recover assets of 1997 to year 2001 economy crises and wrongful government officer practices, mainly caused by the uncertain regulation and the absence of state independent authority to recover assets being lost to cover the national crisis. The only authority currently in charge to keep is the Indonesian Ministry of Finance through Directorate General of State Asset. The current regulation is seen to be general and limited.

Money Laundering Retroactive Conception Applied to Corruption Cases. The Indonesian Anti-Graft Committee � KPK confidently will move forward in its third case of the application of retroactivity conception in corruption cases in parallel with the money laundering law. The current case is the mega corruption at the Indonesia Police Headquarter, Directorate of Traffic involving the chairman Police General (active) Djoko Susilo, who became suspect for corruption of over Rp 100 billion during his duty, particularly of the driving simulator project in 2011 - 2012. the investigation rolled over the last one year, drawing huge public attention, pulled a number of new suspects of public figures and the subsequent seizures of a number of Djoko� liquid assets known to be illegal during its possession prior to the year 2011. The seized assets of Djoko�s has include not only lands, houses, farms, cars, but also a zoo on behalf  by a number of his relatives, close relatives and two other wives informally married for the last 10 years. The KPK investigation indicated a strong indication of illegal possession as it did not meet to Djoko�s salary profile as a police officer. The KPK is confident to keep forward with the case on the basis of the Indonesian Constitution Court � MK� verdict in 2004 (No. 069/PUU-II/2004), where retroactive (in corruption) is not against the Constitution. The law of money laundering law 25 year 2003 and law 8 year 2010 article 77 on (in support to the article 51 UNCAC) is the basis of such retroactivity, including a reverse argument is a compulsory to the defendant to support such 'ownership' of assets beyond their salary profile. KPK spokesmen in its release early May 2013 admitted, they still receive great public support and information of Djoko�s and other suspects of corruptor assests in possessions they knew, until today.

Note: The MK�s verdict allow the implementation of the conception of retroactivity become an end of debate over years of discussions between Indonesian lawyers with lex generalis and lex specialis legal basis of arguments, where extra ordinary crime is the rationale. The latter also applied to the exclusion presumption of innocent concept of law. The lawyers then agreed that the other principle basis is at the article 1 (2) of the archaic Indonesian Criminal code, that article 1(2) exclude the nullum delictum in extra ordinary case.

MK ruled over pretrial by NGO as third party. The ruling on 21 May 2013 was submitted by two applicants of Indonesian citizen, on behalf the Indonesian Anti Corruption Community � MAKI Masyarakat Anti Korupsi Indonesia, both challenging the interpretation of article 80 law 8 year 1981 on the Indonesian Criminal Procedural Code. Both request the MK to rule by extending the meaning of �third party�, where NGO may be included, and therefore constitutional. A pretrial is a demand by party who is involved and has concern in a case, to question the validity of termination (by state law officer) of the investigation or prosecution of the request for termination of the enforcement of law and justice. Under the said article, �pretrial over a public case being terminated by the legal officer may be requested by general attorney, investigator or other third party�. The MK granted such request in its ruling by including NGO as third party and legally constitutional. The applicants� basis for the request was their 31 times of failure and rejection by the state legal officer to conduct a pretrial since NGO�s illegibility and no sufficient legal standing to act as applicant to pretrial a corruption cases being terminated without reason. Both applicants previously failed its request early this year by challenging article 41 (4) Law of Corruption Eradication. This time, the MK granted their application under the Law 8 year 1981, and therefore NGO now has a firm legal basis to act as third party in corruption cases being terminated by state law officer, the general attorney.

SBY World Stateman Award: 61.000 Churches in Indonesia. Indonesain President Susilo Bambang Yudhoyono has been awarded as World Statement from the Appeal of Conscience Foundation, a spiritual basis organization in New York, the US. The president admitted there remain a number of homework in the domestic affirs in maintaining harmonious relationship between religion in Indoneisa. However, the government guantee that Indonesia will always the best place to worship peacefully in every spot around Indonesia. He also added, that currently Indoneisa has 255.000 masjid, 61,000 curches 13.000 Pura for Hindus, 2.000 temples for Budhist and more than 1.300 Confucius buildings to worship. It may be surprising that 61.000 curches in Indoneisa are no to compare the much smaller number of churches in Great Britain and German. Statistc shows that 85% of Indonesian populations are moslem.

291 Local Chiefs and 1200 Governmet Officers indicated for Corruption since 2004. KPK released a statisctic showing the corruption become more acute, lately. Within the last 9 years in charge, there are huge number public servant involved in corruption, the figure are 291 majors/ governors and 1.200 other public officers (2004 to February 2013). The breakdown figure are 21 governors, 7 deputy governors, 156 city majors, 46 deputy of city majors, 41 majors and 20 deputy of majors, a statistic drawn from the ministry of home affairs, recently. The figure do no include government apparatus of 1.221, wheras 185 has been the accused, 112 punished and 887 imprisoned and the rest 44 sit as witnesses. KPK urged corruption to be slashed down to minimize state budgets for the sake of public goods. He admitted the presence of KPK make corruption extermination possible than before, but he admit the corruption quantity remain the same only more massive structured and systemic.

April 2013

Jail might be the only Option for Unreported Gratification. KPK warned public servant to voluntarily report any single gratification received during performing their public duties in accordance to the article 12B Law 13 year 1999 on Corruption. One who disobey the said article 12B might face 12 years imprisonment and fine of Rp 200 million up to Rp1 billion. KPK recently imprisoned 3 public servant who failed to do so, namely Gayus and Dhana, both junior staf of tax office knowingly for receiving bribes and has been punished for imprisonment for 12 years.

High Price of Properties, a dilemma. A Indonesian senior ecomonimist at a major foreign bank in Jakarta warned that Indonesia current problematic is escalating prices of properties, which also occur at other countries with big cities. He identified that property become the only tools of investments due to the lack absoprsion of real economic from quantiatve easing, or hot money in the market. The only tools seen profitable is property. The government is urged to be more be aware for its negative impact, namely the widen spread of social gap between the poor and the rich in big cities. So far, he added, Indonesian government has put forward regulation on higher tax, including tight policy of Loan to Value to tighten uncontrollable boom of credit for properties, and disaloowing property ownership for foreigners. Another property consultant warned the hikes has reached 25,1% within the first trimester, where amazingly the market absorption is high, where statistic shows demand for upper hig property is 27%, middle up is 22%, middle is 15% and finally lower is 8%.

Money Laundering retroactive applied to corruption. The Indonesian Anti Graft Commitee - KPK confidently will move forward in its third case of the application of retroactivity conception in corruption cases thru the implementation of money laundering practices. the recent case is the police general (active) djoko susilo accused for corruption of over Rp 100 billion during his duty as a coordinator of traffic management at the indonesian police headquarter, particularly at the project of driving simulator in 2011 - 2012. the criminal case has been through over the last one year investigation by kpk, including the involvement of a number of high profile public officers, police officers, private individuals, private compnies, followed by the subsequent seizures of a number of Djoko� liquid assets known to be illegal during its possession prior to the year 2011. the seized assets of Djoko�s has include not only lands, houses, farms, cars, but also a zoo on behalf  by a number of his relatives, close relatives and two other wives informally married for the last 10 years. The KPK investigation indicated a suspicious illegal possession as it did not meet to djoko�s salary profile as a police officer. the KPK is confident to keep forward with the case with the basis of the Constitution Court � MK� verdict in the said case in 2004 (Verdict No. 069/PUU-II/2004), where retroactive is not against the Constitution, and therefore retroactivity is out of the question. The law of money laundering law 25 year 2003 and law 8 year 2010 article 77 on (in support to the article 51 UNCAC) is the basis of such retroactivity, including a reverse argument is a compulsory to the defendant. The verdict to allow the implementation of the conception of retroactivity concluded the years of discussions between Indonesian lawyers with lex generalis and lex specialis basis of arguments, including presumption of innocent which is swept away due to the extraordinary crime classification of corruption. The lawyers then agreed that the other principle basis is at the article 1 (2) of the archaic Indonesian Criminal code, that article 1(2) exclude the nullum delictum in extra ordinary case. KPK spokesmen in it release early May 2013 admitted, they still receive enormous public support through report of Djoko�s and other suspects of corruptor possessions and wealth they knew, until today.

Poll: Military Background for President Candidate is Preferable. The poll held by LKP Lembaga Klimatologi Politik (Politic Climatology Institution) shows that 40,5% Indonesian respondents prefers a president candidate with a military background than civilian with 21,4%. The highly preferred persons are general (Ret.) Prabowo Subianto (Partai Gerindra) with 19,8%, then Gen. (Ret.) Wiranto (Hanura) 15,4%, both are Indonesian army retiree. AS for the civilians, respondents choose Aburizal Bakrie (Partai Golkar) with 14,4% figure, Megawati Soekarnoputri (PDIP) 13,3%, Ani Yudhoyono (Demokrat) 4,8%, Hatta Rajasa (PAN) 3,9%. The rationele for military are their backgrounds fulfill two main requirements namely, managerial skill and solidarity maker, where civilians are seen only posses a managerial one. The candidates under this poll, however are those proposed by political parties, instead an independent candidate which is not allowed by law. Further, the poll shows political party with religious basis is less preferable due to lack of leadership and recent political corruption scandals

Poll: Social Cohesion Mal-Intergrated. The poll was held by a national circulation newspaper between 3 to 5 April 2013 with 658 respondents over 17 years old randomly chosen from the updated Indonesian national phonebook. The poll emphasize more on the recent escalation of conflicts in the community identified socially as not as social disintegration, but correctly defined as social mal-integration as it is identified by numerous collective violent attacks by a group of people tied in one primordial status as an expression disagreement, dislike, and unjust treatment by other groups identified as competitors or outsiders.  The main cause of the above conflicts is economy gap, a statistic figure that has not changed yet since a poll held in September 2011 and November 2012 (89,1%). These collective rages increased since the introduction and the inception of the local autonomy law, through the law number 32 year 2004. The respondents are in the view that as a in spite of such local autonomy, local conflicts potentially are generally triggered by economy gap (28,1%), the existence of community organization with violent approach (14,9%), local election competition between candidates (10,3%), religion issue (6,1), competition between political party (5,6%), ethnic issues (4,6%), others (5,1%), abstain (15,0%) and do not know (10,3%). The two latter figures of total 25% shows, that many respondents are unaware or simply ignorant. In a different figure of the most causal of mis-integration categorized into �weak�, �stronger�, �stable� and �abstain�, the figure shows mostly answers it is getting weaker for local politic elite disintegration (50,3%), local ethnic sentiment (66,1%), religion conflict (74%), and economy gap between the rich and the poor (59,9%). It gets stronger for the same above issues figure is 29,8% - 24,5%, 21,6% and 34,7%, respectively. He figure for stable are 18,6%, 7,9%, 2,8% and 3,7%, respectively. The minority remaining are for abstain. Finally, respondents posed their view in its satisfactory and dissatisfactory over the government performance in various issues, namely to maintain peace in the community (35,9% -satisfied/61,1% dissatisfied), to maintain pluralism (42,4% - 54,7%), to maintain security (35,9% - 62,8%), to reduce potential conflicts (36,8% -59,1%), to settle conflicts (30,9% - 65,8%) and to take necessary action towards violence (28,9% - 67,5%).


Indonesian economy in good shape: a Research.  The research by IPSOS, an independent market research shows that the Indonesian economy growth at the community level is good as identified by the domestic increase of consumption and a shift better way of life at 4 major cities Jakarta,  Medan, Bandung and Surabaya with 1046 respondents at the age of 15 to 64. IPSOS then suggest companies to response to the growth as the market opportunities widened and the demand is high. The research shows that in general 46% respondents are in agreement that their economy is better, as against 36% who are not and 18% declines to agree. 34% admitted a shift of a better lifestyle, 21% admitted their increase and frequent consumption of goods than before, 16% buy a higher class of a brand, 14% put additional items of consumption and 11% change to bigger portion of goods. However, 33% percent did not make not much savings than before. Cities who earned the highest increase are Jakarta (52%), followed by Surabaya (50%), Medan 46% then Bandung 26%. Respondents are those at the age between 15-24 (51%), 25-39 (50%), 40-54 (44%) and 55-64 (30%).

Policial Dynasty: Poll. The poll was held by a national circulation news paper with 749 respondents age over 17 years at 12 cities all over Indonesia shows that 60,2% respondents are in the view against political dynasty in Indonesia. However, the dynasty in politics is seen more in the context of local politics custom where voters are identified by the voluntarily to be bound by primordialism tie, such as vote for a local figure than non-local figure (58,4%), religion (59,4%), together with low economy, education particularly those who lives in the remote area with limited access of information. the Indonesia Ministry of Domestic Affairs identified 57 local incumbent majors currently are building their political dynasty, such as in Banten and East Java where member of the families become successor or leader at the adjacent area of the incumbent. Such nepotism by 62,7% repondents are seen in fact denies an objectives and substantive requirements of a leader such as capacity, integrity and leadership, and a result election is a mere political populous transaction rather than a real dynamic one. The poll further shows that 65,1% are in disagreement of political dynasty, 58,1% agree that dynasty has more negative impact and 60,2% perceive politics dynasty is improper.

February 2013

Poll: Presidential Instruction 2 year 2013. The said instruction emphasize on the national domestic security settlement where the military force is allowed to join the police force in combating and settlement of social conflicts and social cohesion and unity, through dialogues up to forces. The release of the instruction is based on recent unsettled and escalation of horizontal conflicts at some areas in Indonesia, where local government is unable to control. Generally, the poll shows public is in agreement with the said regulation, noting with only 3 out of 10 are in disagreement. As for response to public concern on conflicts, 82% respondents are concerned, 16% are not and 2% abstain. Unfortunately, the unsettled crisis tend to point the disability of the local government as shown by category of proper and improper efforts. Questions posed resulted in different areas: how local government prevent and maintain harmony between religions (46% said the government has done a proper job -46,5% for improper-7,5% abstain), prevent of potential conflict between religions (43,4%-46,3%-10,3%), and settlement of post conflicts (44,8% - 46,2% and 9,0%), respectively. It is also the central government who is pointed for the same qualification, to secure legal settlement post conflicts (22,4% proper - 68,7% improper - 7,3% abstain). On the contrary of the lesser, respondents shows their concern over the implementation of the said presidential regulation, as where security approach may be used (43,9% are worried - 50,8% not worried - 5,3% abstain), potential abuse of Human Rights (60,4% - 29,5% and 10,1%), abuse of laws for particular political interest (74,0% - 17,2% -8.8%), respectively. Finally, respondents are in agreement that the major factor of unsettled conflicts are due to the absence of a formal and informal leader figure to unite and reduce conflicts 70,1%, and intolerance of differences in the community (58,9%). The poll was held by an national circulation papers in 30january 2013 to 1 February 2013 at 12 big cities with 782 respondents over 17 years old with error sampling at +/-3,6%.

KPK Performance Increased: Poll. The poll was held a national circulation newspaper at 10 big cities all over Indonesia with 731 respondent age over 17 years during 13 to 15 February 2013. Recent arrests and blown up mega corruption cases involving chief of political parties and publiic officers has triggered public increase of satisfaction towards KPK performance. Statistic shows a subsequent rate of 46,0%-46,8%-71,7% and 77,8 are the figure of positive image for the each 5 monthly of November 2011-April 2012 - September 2012 and finally February 2013. The same figure were also for public overall satisfaction for KPK performance is 43,8% - 31,1% - 24,2% - 40,2% - 57,6%, respectively. However, there is also the downside of KPK in the eye of public perception at a number of cases such as the Hambalang Corruption Case, Cow Importation Corruption Case and other Mega corruption case, where the figure are significantly lesser than the above poll, which are categorized as unsatisfatory-satisfactory-and abstain for each is (60,3% - 34,1% - 5,6%), (50,5% - 42,3%-7,2%) and (63,6% - 33,4% - 3,0%), respectively. KPK' overall duties shows that corruption are likely to occur more at ministerial offices 18 out of 48 cases in 2012 only, where bribery rank the top with 34 cases out of 48 cases, and main intellectual actor involved mostly are those at the parliament and indiv�dual private entities with each 16 persons.

January 2013

Mahfud MD: Law Enforcement is effective upon the free Strings-attached of Stateman. The statement was addressed in response to Mahfud's concern over the ineffective law upholding, recently. This is identified by the government officer responsible are likely string-attached to its political power with various interests. He urges the government and law officers to compel all level of staffs to be clean and do not tolerate collusions during duties. A leader must be tough and hard. Indonesia in the 50s is a good example of the effectiveness of the government since none of the staffs are involved in corruption, and therefore freed from any interest but public. Pancasila as the ground of Indonesia nationhood is a blessing for Indonesia to be kept united along the history.

Asian Agri Decision: another Paramount Decision in Tax Embezzlement. The Indonenesian Mahkamah Agung - MA, High Court punished an Indonesian company PT Asian Agri for tax emblezzlement by its tax manager with 3 years imprisonment and 14 of its subsidiary companies to pay taxes at 2 times of Rp 1.259.977.695.652 within 1 year effectice from the date of the verdict. The tax manager Suwi Laut or known as Lie Che Sui, was committed for crime by tax falsification and untrue tax report being exercised sequently for years during the period of 2002-2005, infringing the criminal code of self assesment priciple of Indonesian tax law. The MA� paramaount decision is away from the mainstream where usually tax falsification was treated as merely a crime administration with limited fine punishment. The High Court did not folow the mainsteram instead, but a breakthrough to take effect of the law conception of �ultimum remedium� by utilizing criminal code as a tool. The court consider this will entail the crime-awareness of of tax subjects. As a result of tax falsification, the Indonesian Government suffered from tax loss of Rp1,25 triliun, which is broke down into Rp301,4 billion in year 2002, Rp309,6 billion (2003), Rp358,7 billion (2004), and Rp280,4 billion in 2005. The case has brought seven other directors of PT Asian Agri and three other government officer of the Finance Minsiter.

Indonesian RSBI - International Standar School at Public School: Dismissed. The MK in its early year decision shocked the nation with its verdict to annull partially the article 50 paragraph (3) of the National Education System Law 20 year 2003, then subsequently dismiss the said clause of so-called RSBI international standar school at public school all over Indonesia. The decision came into force on the date of the verdict. The said article 50(3) infringed the Indonesian Constitution 1945 article 28C paragraph (1), article 28I paragraph (2), article 32 paragraph (1), (2), (3), and article 36 Constituion 1945. The ground of the verdict of more than 100 pages were of long considerations and excessive 6 long hearings than usual from various stakeholders, including ex minister of edcuation who was in contrary to the RSBI existence since 2006. The major consideration was public school is not allowed to take any single charges to pupils' parents whatsoever, since the consitution has guaranteed 20% or equal to Rp290 trillion (USD 320 billion) state budget, annually. Such illegal charges clearly tend to commercialize public rights, a right has been put forward and is secured by the Constituion 1945. The MK also extended its deisions to three other consideration as that English language command tought at school also infringed the article on Flag and Language of the Constituion 1945, where the conduct of English language in 2 subjects (out of 10) as a standar language at school do not necesariliy and do not guarantee the quality of its gradutes and is not in line with the national education guidance. As for commercialization also has shown a clear discrimination and segregation of social classes between the poor and the rich, where public school seats are traded through so called 'voluntary donation' of pupils parents being set at millions Rupiahs afforded only by the riches, in turn the poor access is limited. The government must secure equality and quality of each of the citizen' right to access education whatsoever. Finally, MK also in its previous decisions made, that the said article has clearly shown a potential harm in the near future of infringemnt of citizens' rights under the constituion 1945. The request of material test of law has been submitted by parents, education activist and NGO activist in late 2011 on the ground of discrimination.

Australian Governmet to pay for Damages. The compensations are for damages of unlawful treatment to 48 Indonesian boat-people children detained in Australia during 2008 - 2011 on the basis of people-smuggling. The Indonesia KPAI - Komisi Perlindungan Anak Indonesia (the Indonesian Comission for Children Protection) further explained those children were merely and in fact are victim of trafficking, and therfor shall be released, instead of being detained and mixed with the elders in jail for more than 6 months, some are for more than 1 year. The children rights� of freedom has been torn away, intentionally through a mistreatment and wrongful judicial process in Australia. The KPAI work together with Komnas HAM (Indonesian Human Rigths Commission) and the Australian Human Rights Comission urge and compell the Australian Government to apologize for its negligence, wrongful judiciary process, detain and abuse of human rights then to pay compensation of damages, accordingly. The case is now being handled by a number of Australian lawyers and NGO.

January 2013. Indonesian Broadcasing Commission Report 2012. The annua report released by the KPI � the Indonesian Broadcasting Commission shows that the most broadcasting TV (private and 1 government) who receive public complains is Metro TV with 30.068, followed by TV One (5.072), Trans TV (2.750), ANTV (883), RCTI (666), SCTV (467), Indosiar (359), MNC 9354), Trans (7 342), Global TV (205), TVRI (22). As for the content, 2011 marked with infotainment, bt 2012 is for soap opera TV. AS for journalism, the KPI took the case with cautious, since the existence of freedom of speech secured by the Law number 32 on Broadcasting and the Constitution UUD 1945. KPI only expect the news created and retransformed remain within the avenue of an educated news broadcasting, which however is limited to article 42 of the Broadcasting law for unfactual news. However, the KPI has its professional audit over the news spread by numbers of private TV stations, namely the breach ethics of journalism, where KPI received mot less than 32.342 complains or covering 74 percent of the total complains within the year 2012, followed individual or group harassment (3.500 complains or 8,3%), breach norms 2.377, breach of programm theme (1.047 or 2,4), uneducated program ( 640 or 1,45%), improper or exposed outfits (370 or 0.86%), improper slot-time broadcast (283 or 0,64%), violence (272 or 0,62%), sex (208 or 0,47%), and broadcast negative impact (192 or 0,44%). In respond to the said input and researches, the KPI has move forward by putting sanctions to most of the TV stations, such as Indosiar 15 sanctions, Trans 7 with 13 sactions, Global TV 12, SCTV 12, RCTI 10, Metro TV 7, ANTV 6, MNC TV 6, TV One 5, and finally the only government TVRI with 3 sanctions.

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