INDONESIAN

LAW UPDATE

2007

[January 2007] to [June 2007]

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

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

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

[February 2007]

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

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

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

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

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

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

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

[March 2007]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[April 2007]

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

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

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

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

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

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

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

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

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

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

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

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

[May 2007]

[June 2007]

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

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

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

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

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

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

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

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

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

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

[July 2007]

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

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

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

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

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

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

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

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

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

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

[August 2007]

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

Note: Only after its very recent prosperity of 25 million population after 50 years of independence, Malaysians are drawn to be overconfident. Malaysia' income per capita reached USD 12,000 in 2005, three times than Indonesia with 1/9 population (Indonesia: 227 millions), where oil is the only source. To some Indonesians, Malaysian recent attitude is understand-able, to allow Malaysians enjoying their very first prosperity and free from Indonesia' political influences. Indonesia took lead in ASEAN region in politics and security and growth since 1960' until year 1997, where Indonesia enjoyed growth since 1970 marked with the operation of Palapa satellite communication in 1976, national construction of fly over and toll roads since 1977, national cars in 1978, national civil airplane-ships-railways/trains-electronics and war devices and machines crafts manufacturing in 1980, and other tremendous developments, where most Indonesian 40 state universities are full with thousands of Malaysians studying engineering, medicine, economics, politics, and culture. Until now, Malaysia still employed a big numbers of Indonesian to give lectures, involved in infrastructure engineering and other social developments in Malaysia. The Malaysian first civil aircraft manufacturing in year 2004 was also established and led by Indonesians.

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

Note: In its 50 anniversary, Malaysia is awarded for top list for human trafficking and abuses by the US Secretary Office. Its independence, merely a gift by the British Imperium, was celebrated in the absence of a number of Indonesian high rank officials who refused to attend the invitation. Malaysia, gain its confidence under the Commonwealth, also reach its economic and politic stability and growth, despite the non-existence of freedom of speech, racial tensions, controlled judicial bodies, virtual democracy and corruption and nepotism by the member of Royal families and the bureaucrats, a worn-out lesson which was adopted by Malaysians from Indonesia' past New Order era of 32 years. During those years of 1970-2000, a big number of Malaysian students and bureaucrats  studied medicine, engineering, politics and culture in Indonesia. Historically, Malaysia was part of the imperium of Indonesian kingdoms in year 900 to 1800, where most of Indonesian root (from Java) now still existed forming the  majority population in Johor and Selangor, the most growing and prosperous states in Malaysia.

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

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

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

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

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

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

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

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

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

[September 2007]

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

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

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

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

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

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

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

[October 2007]

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

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

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

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

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

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

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

[November 2007]

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

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

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

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

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

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

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

[December 2007]

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

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

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

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