*IBRAHIM ISA'S *
*SELECTED INDONESIA NEWS AND VIEWS*
*Tuesday, January 03 – 01- 2012*
*--------------------------------------------------------------*
---*PEOPLE AND NATURAL WEALTH*
*--- ATTORNEY GENERAL'S OFFICE PERFORMED POORLY IN 2011*
*--- 2012: YUDHOYONO'S FINAL CHANCE TO CURB CORRUPTION*
*--- SBY OUTLINES ECONOMIC STRATEGY TO IDX*
*--- SBY MUST LEARN FROM GUS DUR ON RELIGIOUS CONFLICTS*
*---------------------------------------------------------------------------------------------------*
*PEOPLE AND NATURAL WEALTH*
The Jakarta Post Editorial --| Mon, 01/02/2012
We deplore the police's mishandling of the anti-mining protests at the
Sape port in Bima, West Nusa Tenggara, last week that caused the deaths
of two demonstrators and injured more than two dozen.
But revoking the mining license of the Indonesia-Australia joint venture
at the heart of the protest simply because of the incident would mean
that government would succumb to a mob rule — a timid act that could
leave most major mining concessions in a legal blackhole.
Even though investigations are still underway into the underlying
factors behind protests and the causes of the violence, we don't believe
the Sumber Mineral Nusantara-Arc Exploration joint venture was directly
or indirectly involved in that incident.
It is never popular to stand up in defense of big business, let alone
for a foreign company.
But we don't think that Arc Exploration, an Australian gold company that
is publicly listed in Sydney, would risk damaging its reputation by
violating the law to protect a 25,000-hectare mining concession that it
acquired at substantial cost.
Moreover, we reckon the joint venture had gone through more than one
year of bureaucratic and legal processes dealing with various ministries
overseeing mining, forestry and the environment and other local agencies
to obtain its license.
If residents were so fearful of the environmental impact of the mining
operations that they staged massive protests, why then did the Bima
administration award the mining license in the first place?
The mining company halted its explorations immediately after the
incident - a wise corporate action to allow for a cooling-down period.
But Bima Regent Ferry Zulkarnaen cannot immediately revoke the mining
license without due process to ascertain the faults, if any, of the
mining contractor and any malfeasance committed during the licensing
process.
It has been a common phenomenon since the ushering in of our democratic
era in 1998, for the people, who for more than 32 years were completely
excluded from the decision-making process regarding the exploitation of
natural wealth, to become overzealous in asserting their rights.
They sometime release their vent-up frustrations in street protests,
irrationally demanding that the mining contracts in their areas simply
be annulled, claiming that the mines had not benefited the local
community and had instead damaged the environments.
The issue, though, is that the mass protests such as those at the Sape
port last week often attract a wide mixture of pressure groups, informal
leaders and human rights and environment activists. Some represent
genuine causes and legitimate grievances. Other, however, advance
self-serving agendas and stand ready to exploit any situation.
Certainly, businesses are not always right and those that are found
guilty of violating the laws should be brought to justice.
The government should be extra careful in analyzing the main reasons
behind the protests. If such demonstrations are not handled properly,
mobs will have a field day and businesses will be at the mercy of the
law of the jungle.
Mining, together with plantations and fisheries, are the most promising
resource-based ventures in the country and account for nearly 40 percent
of our total exports.
However, legal and regulatory certainty is vitally important for mining
investment because the industry is capital and technology intensive,
highly risky, has a long payback period and operates mostly in remote
areas where basic infrastructure is inadequate.
When a big mining company enters a remote area, its operations generate
a sharp rise in local people's expectations through the impact of its
community-development programs. Many players, individuals or NGOs —
often from outside the mining area — often jump in, trying to use mining
companies as a tool for advancing personal or public interests, offering
advocacy services either to secure fees or to seek popularity and
political prestige.
All these aspects of development should be investigated thoroughly in
analyzing the people's concerns about the mining concession.
** * **
*ATTORNEY GENERAL'S OFFICE PERFORMED POORLY IN 2011*
The Jakarta Post, Jakarta | Sat, 12/31/2011
The Attorney General's Office (AGO) acknowledged on Friday that it had
failed to take the lead in the country's bureaucratic reform and had not
performed well in law enforcement. The office could understand why the
public had given it the thumbs down.
Attorney General Basrief Arief said he had failed to spearhead reform in
his notoriously corrupt institution. The attorney general made the
statement during the annual press review at his South Jakarta office.
Over the year, Basrief said, his office had seen 206 prosecutors and 130
administrative staff punished for acts of indiscipline.
"It's clear that there are still many prosecutors who commit illicit
deeds. We are personally still unsatisfied with our own performance in
serving the people," Basrief said.
According to him, of the 206 prosecutors who received punishment, around
one third of them were
"severely punished" after they were proven to have abused their
authority as law-enforcement officials.
Among 130 administrative staff who received punishment, dozens were
dishonorably discharged because they "had not even gone to their office
at all".
Basrief said he could understand why the public regarded the AGO as
having performed poorly, specifically citing the AGO's weak human
resources as the institution's biggest shortcoming.
"[The AGO's staff] are still weak in terms of moral integrity as well as
technical competency in handling cases," said Basrief who vowed to boost
the human resources sector in 2012 to restore public trust in his
institution.
This year, the AGO has been overwhelmed by many highly controversial
cases involving its prosecutors. Last week, Takalar State Prosecutor's
Office head Rakhmat Harianto was reported to have allegedly blackmailed
a witness for Rp 500 million (US$54,836) in exchange for not making the
witness a suspect in a graft case.
In November, investigators from the Corruption Eradication Commission
(KPK) confiscated Rp 99.9 million from the Cibinong State Prosecutor
Office's parking lot and arrested a prosecutor named Sistoyo for
allegedly taking the money as a bribe.
Also in November, Hari Soetopo, a prosecutor at Lamongan State
Prosecutor's Office hit the headlines after being reported by a woman
for allegedly making her pregnant.
Under Basrief's leadership, the AGO was also condemned by many for its
"generosity" in issuing letters ordering a halt to investigations (SP3).
In 2011, the AGO issued SP3 letters in three high-profile cases: the
floating crane procurement of PT Tambang Batubara Bukit Asam, the asset
takeover of PT Kiani Kertas and the allegation of abuse of power by
South Kalimantan governor Rudi Arifin.
Basrief, however, rejected allegations that there were "backdoor deals"
behind the issuance of SP3 letters, saying that the AGO issued the SP3
letters professionally and based on established laws.
"[In PT Kiani Kertas' case] there was no state loss, the state actually
benefitted," he argued.
Andhi Nirwanto, junior attorney general for special crimes, said that
the only reason the AGO issued SP3 letters was because it could not find
enough proof to bring the case to court.
"There are many who say that the only job of the AGO's special crimes
division is to halt investigations," Andhi said. "But if we don't have
the proof and we insist on bringing the case to court, [the accused]
will eventually be acquitted."
Despite all its flaws, Basrief claimed that the AGO had successfully
prevented Rp 27 trillion (US$2.97 billion) and $ 2,920 in state losses
this year. (sat)
* * *
*2012: YUDHOYONO'S FINAL CHANCE TO CURB CORRUPTION*
Donny Syofyan, Padang | Fri, 12/30/2011
The New Year is approaching. As it is less than one week away, this is a
great time to review and reflect on the previous year while preparing
for the year to come.
It is motivating to reflect on the accomplishments of the previous year,
review our challenges and outcomes and prepare for the year to come with
a new set of goals. A failure to review the past will likely lead us to
fall into the same hole over and over again in the future.
The fight against bribery and corruption has been the watchword this
year, which has witnessed a great number of corruption scandals
involving high-ranking officials, lawmakers, judges and prosecutors.
Muhammad Nazaruddin's alleged involvement in the SEA Games sports
facility construction scandal, the case
of convicted Central Jakarta Commercial Court judge Syarifudin Umar, the
arrest of prosecutor Sistoyo at the Cibinong Prosecutor's Office, to
mention just a few cases, suggest that corruption is really an everyday
occurrence for the Indonesian public.
This might backfire for President Susilo Bambang Yudhoyono in 2012.
Yudhoyono must use 2012 as his final chance to curb corruption and
restore the public trust.
The endless cycle of corruption in 2011 signifies the debacle of reform
leadership. The Democratic Party, which initially appeared on the
country's political stage as a reform party, for instance, has slipped
off the tracks.
Nazaruddin's dismissal as the party's treasurer showed the half-hearted
fight against corruption, since there was no political amputation by
cutting off its wayward elites.
Party chairman Anas Urbaningrum demurred from resigning, which in turn
indicated the party's lackluster opposition of any political scandal on
one side and setting a bad precedent for the country's politics on the
other.
Corruption has become complicated due to trendy political dynasties in
the country's major parties. With Edhi Baskoro Yudhoyono and Puan
Maharani becoming the secretary-general of the Democratic Party and
deputy chairwoman of the Indonesian Democratic Party of Struggle
respectively, the war on corruption is prone to rhetoric and
non-transparency owing to internal resistance.
Rather than setting the scene for future young intellectual politicians,
mainstream parties prefer elite families to maintain their power.
In addition, the collapse of law enforcement agencies to curb corruption
strongly shows that corruption is a multifaceted phenomenon.
President Yudhoyono, therefore, must drive reform. He must give external
bodies more teeth, such
as the Prosecutors Commission that is working to revamp the Attorney
General's Office (AGO) and synergize the Supreme Court and the Judicial
Commission to more closely monitor the courts and develop a better
system for the recruitment of judges.
Much of the President's time will be spent on debating urgent bills in
2012. The House has arrived at a compromise to assign a rank the 64
bills on the National Legislation Program in 2012.
One of the 2012's most pressing bills is an amendment to the 2002
Corruption Eradication Commission Law. During 2011, the idea of
dismantling of the country's most trusted antigraft body came to the
fore, especially supported by lawmakers.
Yudhoyono's commitment to exposing corruption in government and the
House would be in vain without stopping any means to strike and
criminalize the KPK.
Such potential remains because of growing concern that the House will
curtail the antigraft commission's authority. The House's budget
committee even threatened to suspend discussions on the 2012 state
budget to protest the questioning of its leaders by the KPK over graft
allegations in a project administered by the Manpower and Transmigration
Ministry.
Eradicating corruption in Indonesia cannot simply depend upon the
government's law enforcement agencies such as the National Police and
the AGO, considering their corrupt behavior and the closed approaches
they frequently applied to many graft cases.
In a transitional period characterized by strong need for power
survival, it is not wrong to have a "super body". Some countries with
low rankings on corruption indicies still have superbodies like the KPK.
Singapore's Corrupt Practices Investigation Bureau, for example, has
been in existence since 1952. Combating corruption calls for prevention,
not merely enforcement or execution.
It will be quite a job to stamp down corruption to the full in 2013.
Overall, political parties in 2013 will be occupied with encountering
legislative and presidential elections in 2014. Political energy and
resources are centering on political consolidation instead of working
for reform commitment.
An intense war on corruption would damage necessary political coalitions
and alliances prior to 2014 election since no single party aspires to
seeking enemies.
For sure, the bribery fight may work in 2013. Yet such a struggle is no
longer something given specific attention. Ideas of a clean government
will be powerless given short-term and pragmatic power retention.
Things will get worse as government officers and politicians often get
amnesia marked by repeated blackouts on their wrongdoings and vows. It
is public knowledge that many politicians prefer to patronize the people
rather than listen to their concerns. Populism has gone haywire.
The public has a vey low level of tolerance for leaders who disappoint
them. The success of Yudhoyono will be measured by the public trust at
the end of his tenure. The very foundation of the public's trust in
Yudhoyono depends on his promise of clean leadership.
/The writer is a lecturer in the faculty of cultural sciences of Andalas
University, Padang./
* * *
*SBY OUTLINES ECONOMIC STRATEGY TO IDX*
If the stock market was "Kid-Zania", then President Susilo Bambang
Yudhoyono's speech at the first day of trading on Monday was like a
father laying out his financial plans so that the kids could continue
playing grown-ups.
In so many words, Yudhoyono said the Indonesia Stock Exchange (IDX) owed
much of its positive performance in 2011 to prudent fiscal and monetary
policies formed under his stewardship.
The stock market ended a bumpy year on Dec. 30, 2011, with the Jakarta
Composite Index (JCI) at 3,821.99, growing by a modest 3.2 percent
compared to the previous year, making it nonetheless the third best
performer globally in an era of great economic uncertainty.
In his keynote speech, Yudho-yono told stock traders that the country
had to be prepared for another round of uncertainty as decision makers
in the US and Europe were still struggling to avoid another recession.
A government-appointed think tank, the National Economic Committee
(KEN), warned recently that crises in the developed world would weaken
Indonesian exports, create foreign liquidity problems and hurt
investment growth. The committee said Indonesia's financial markets were
poised to bear the brunt of high volatility.
Gloomy outlook aside, there was room for hope, Yudhoyono said,
especially after Fitch Ratings had reinstated the status of Indonesian
sovereign debt to investment-grade level. Yudhoyono said he would
maximize efforts to cash in on the positive momentum.
Yudhoyono's strategy for weathering the external turbulence is to
maintain his style of economic leadership, which has been characterized
by a conservative fiscal policy — meaning a low state budget deficit,
high domestic consumption and double-digit export growth.
In the finalized 2012 state budget, the government predicted revenue of
Rp 1,292.9 trillion with expected state spending of Rp 1,418.5 trillion;
and a budget deficit of 1.5 percent of GDP. Yudhoyono said the 2011
budget deficit stood at 1.3 percent, well below the 2 percent target.The
Finance Ministry said that it hoped to maintain inflation at a maximum
of 5.3 percent this year. The inflation rate stood at 3.79 percent in 2011.
"We have to maintain the fiscal policy, the debt to GDP ratio, inflation
rate and the interest rate. When the government achieves such
conditions, it is the economic actors' time to step up," the President said.
Yudhoyono may argue that the performance of the stock market should
reflect the country's economic fundamentals, which he has vowed to
maintain. However, analysts have long argued that the IDX suffers from a
structural problem of having too much foreign funds in its investment
pool, which makes it extremely vulnerable to external shocks.
Foreign funds traditionally control more than 60 percent of daily
transactions in the stock market, which reached Rp 24.2 trillion by the
end of last year.
Considering the large amount of so-called "hot" money, volatility in the
Indonesian financial market directly translates into more pressure on
the rupiah.
IDX president director Ito Warsito brushed off fears over the inability
to increase the proportion of Indonesian investors, saying that it was
an accepted characteristic of the Indonesian stock market.
He denied that more foreign investors would cause instability in the
secondary market.
"An increase in the number of foreign investors is a logical consequence
of Indonesia being of interest to global investors," he said.
In his speech, Yudhoyono failed to address these concerns, which have
the potential to destabilize the economy. KEN, the economic think tank
that the President personally appointed, warned that Indonesia should
reactivate the currency-swap agreement with China and Japan under the
Chiang Mai Initiative in order quell this single-most detrimental force
in the economy.
* *
*SBY MUST LEARN FROM GUS DUR ON RELIGIOUS CONFLICTS*
Bagus BT Saragih, The Jakarta Post, Jakarta | Fri, 12/30/2011
In the wake of the brutal arson attack against a Shiite Islamic boarding
school in Sampang, Madura, East Java, an activist has called on
President Susilo Bambang Yudhoyono to learn from his predecessor, the
late Abdurrahman "Gus Dur" Wahid, in handling rampant religious conflict
in the country.
"After the fatal attack against Ahmadiyah followers in Cikeusik, Banten,
in February, such religious conflicts continue. This is a result of the
poor and weak leadership of President Yudhoyono, particularly when it
comes to maintaining tolerance in this plural nation," International
Center for Transitional Justice (ICTJ) advocate Usman Hamid said in a
statement made available to /The Jakarta Post/on Friday.
"The President should look at Gus Dur, whose demise will be commemorated
on Dec. 31. Gus Dur was always at the forefront of defending
minorities," he added.
A compound belonging to the Shiite community in Sampang was allegedly
burned down on Thursday by Sunni Muslims, who make up the majority of
the Islamic population in Indonesia.
No casualties were reported.
Several buildings were damaged, including a student dormitory, a mosque,
a kitchen, a store and the home of Shiite Islamic boarding school
principal Tajul Muluk
Approximately 250 Shiites who lost their homes have been evacuated to
the Sampang sports center about 20 kilometers from their neighborhood.
* * *
------------------------------------
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