[June 2010]

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

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

[May 2010]

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

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

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

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

[April 2010]

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

[March 2010]

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

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

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

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

[February 2010]

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

[January 2010]

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

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2009

[November 2009]

Indonesia and Malaysia finally come to an initial agreement over the Indonesia Domestic workers in Malaysia. The said which issues are crucial due to many human rights abuses by the Malaysian Employers. The points in agreements covers the issue of minimum wages, paid insurance by the employer, one day weekly leave, passports hold by the employee and finally compulsory psychological test for employers prior to employment. The Malaysian government have objection over the paid salaries, admitting that most Malaysians homes are not in the capacity to pay salary of 250 US dollars per month to the domestic workers, particularly after the financial crisis where poor families increases significantly in Malaysia. Indonesia also urge psychological test for Malaysian employers, since in most cases of human rights abuses towards Indonesian domestic workers by the Malaysians are identified that the most Malaysian employers are mentally ill. Transparent and qualified legal system is also another issue in Malaysia, where most criminal cases of human abuses no yet settled.

[October 2009]

Indonesia at Strategic Level in G-20. The Indonesian President Susilo Bambang Yudhoyono in his speech at the G-20 in Pittsburgh last September, welcomes the permanent G-20 as an institution where Indonesia is included. He expected G-20 to bring a better civilization, representing the east and the west, and even Islamic Civilization and a forum to build a much safer world. He is of the opinion that G-20 replacing G-8, will play different significant role than G-7 or G-8, which both G-7 ands 8 only represents developed countries, mostly from Europe, except Japan as Asian representation. Indonesia sit at number 16 on the world’ big economic growth. 

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

[September 2009]

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

[July 2009]

Carrefour's Trading Term: contrary to Article 17(1) Anti Monopoly Law 5/1999. The Indonesian Fair Trade and Business Competition Commission or known as the Anti Monopoly Commission warned the Carrefour, giant retail business in Jakarta to stop implementing a compulsory terms to its suppliers that leads to monopoly and unfair trade practices. Carrefour has in fact plays its significant role, a dominant position to put its suppliers with no choice. The investigation was held 30 days by the Commission, then suggest Carrefour to adjust its terms adequately particularly in advertising materials and lot lease, otherwise further code applies.

[June 2009]

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

[April 2009]

OECD released Lists of Countries who commits to Banking Secrecy. Malaysia, Philippines, Costa Rica, and Uruguay are on the  Organization on Economic Cooperation Development (OECD)  version of Black List, which consider as countries for safe heavens for tax tariff embezzlers. Those countries are on the list for their unwillingness to cooperate in the fight against international tax crime and their refusal to adopt the new rule on finance and banking transparency. The said list was announced on the G-20 High Level Conference in London, where world leaders threat those countries through various sanctions. In respond to this issue, th French President responded by saying that, the age of banking secrecy is over, everyone is eager to put those tax embezzlers on trial and drop a sentence. The banking secrecy policy be concerned will worsen the global economic crisis because it’s covering the real value of assets. OEDC had divided countries into three groups. First are countries with full commitment to the rules and willing to share its tax information (the white list), such as England, China, France, Germany, Russia, and USA. Second are countries commited but has done nothing so far (the grey list), that include Singapore, Belgium, Brunei Darussalam, Chile, Antilles (Nederland), Luxembourg, and Bahamas, Bermuda, Cayman in the Caribbean Islands, together with Switzerland, Liechtenstein, Monaco, and Alpine, which stated their commitment to loosen their Banking Secrecy Policy. Lastly, are countries  abovementioned which have not agree to reform their banking policy (the black list).

Anti Competition Committee (KPPU) initialize  Investigation on Carrefour Suspected for Monopolizing the Market. The investigtion are based on the preliminary data for its market domination toward supplier reaching 66%, while its market domination toward consumer as to compare with other supermarket and hypermarket reaching 40%, Carrefour market domination considered as law infringement. In contrary, Carrefour admits that they never dominate the market as it said. If then the KPPU come to a decision that the monopoly practice does proven in this case, the Temasek case of telecommunication company domination might be repeated.

[March 2009]

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

WIEF: Jakarta Declaration by Islamic Countries. The World Islamic Economic Forum on its the 5^th conference in Jakarta, Indonesia, declared the mutual agreement between Islamic countries called the ‘Jakarta Declaration’. One of the important points is to accommodating the Indonesian government proposal, brought by the Indonesian President Soesilo Bambang Yudhoyono on the structuring the support fund from and used by the syariah (Islamic Law) economic based countries or known by Islamic Expenditure Support Fund. The Jakarta Declaration then establishes seven groups of recommendation, namely (1) recommendation to overcome global financial crisis, (2) steps to secure food product, (3) energy protection, (4) the global development of small and medium size business, (5) the development of business conducting by women in Moslem country, (6) the capacity development of young leader in the Islamic Conference Organization (OKI) country, and (7) the agreement on education development.

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

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

[February 2009]

PT Dirgantara Indonesia (PT DI) Get C212-400 License. Following the cooperation contract with EADS CASA in November 2006, now PT DI (an Indonesian State Enterprise in aircraft manufacturing since 1980) hold a license as a producer and assembler of new type of civil aircraft C212-400 along with a production facility  from San Pablo. According to PT DI President, PT DI is the only company holding such license in the region, which include a license on marketing this aircraft both transportation and military version for Indonesia and ASEAN region. Due to PT DI, instead of its potential market, high demand of this type is shown as indicated by 88 units ordered so far, and will reach 155 units in the next 7 years. The civil aircraft 212-400 has a similar body with the C212-200 previously produced by PT DI, but with a longer nose and a “wing tip” that enable this aircraft to take-off in the shortest runway. In the early 2009, PT DI closed procurement contract of one C212-400 aircraft unit with PT Airfast Indonesia.

Malaysia to home-return 100.000 Indonesian Migrant Workers. The statement  was conveyed by the Malaysian Manpower authority, where those 100,000 out of 1,2 million Indonesian migrant legal workers are from manufacturing sectors. The return are due to economic downfall in Malaysia recently, where like most country' policy, foreigners are on the list to be dismissed to allow local workers to remain to have a job. However, to most employers, most are in favor to Indonesian workers since Indonesians meet all the qualifications as workers with dedication, loyal, diligent and skillful, qualifications that Malays do not posses so far in the business, particularly job requires skills and intelligence. Most Malays prefer job as bureaucrats or landlord. This has become the fact that most jobs in Malaysia are done by expatriates or migrant workers composing more than 20 percent (4,5 millions expatriates) of total Malaysia population of 20 millions.

[October 2008]

ASEAN Charter Ratified. After months of long debate, the Indonesian parliament finally ratified ASEAN Charter on Wednesday, 8 October 2008, the last country in ASEAN to ratify the Charter. The signing of document on ASEAN Charter bill was represented by Minister of Foreign Affairs Hassan Wirayudha, Minister of Trade Mari Elka Pangestu, and Minister of Law and Human Rights Andi Mattalatta, representing 10 Fraction and governments in Commission I at the Parliament. However, questions remain by the parliament of the urgency of ASEAN Charter as a legal ground of ASEAN transformation into a solid organization. Also the disagreement with the voting mechanism (Article 20), a creation of a slower ASEAN and a longer in taking decision. Beside of that, the parliament also disagree with the unclear sanction of ASEAN Charter violation, and human rights body mandate which cannot be guaranteed by the Charter and its effectiveness (Article 1). However, the parliament foresee the Charter to bring benefit for Indonesia. According to Hassan Wirayudha, “ASEAN Charter ratification is a first step of ASEAN transformation to accomplish a full integration as a community in 2015”.

[August 2008]

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

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

Poll: Foreign Investors Control Over Indonesia Economy. The poll held by Setara Institute of 800 respondents age of 17 to 22 in May 2008 shows, that 60,8 percent believe that foreign investors took control the Indonesian economy. The young generation suggested that Indonesia as a nation must take over the control as President Evo Morales of Bolivia did to his country particularly in oil mining. The poll also shows low expectation of 57 percent domestic capability to compete with foreign entrepreneurs, and of 50,7 percent did not agree privatization of potential state enterprises. 56,85 percent respondents also perceive there is an economy draw back in the last 10 years, proven by 76 percent sees development are not for the poor and 60,9 percent believe developments are not in concordance to the Indonesia Constitution in protecting main natural resources and entities for the people' prosperity. In foreign investment, however, an Indonesian economist Chatib Basri from the University of Indonesia argued, that the survey did not meet the review issued by a number of international organization, OECD, IFC, and the world bank who considered Indonesia as a close country for foreign investors due to its updated Investment Law and negative list, ranked Indonesia at 135 out of 170 in open economy index.
 

[July 2008]

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

[May 2008]