| By Andi Abdussalam | |
|
|
Sabtu, 31 Mei 2008
BIOFUEL INCREASINGLY IMPORTANT AMID EXPENSIVE OILS
RI STUDYING US RESPONSE ON NAMRU-2 DEAL
| By Andi Abdussalam |
Kamis, 29 Mei 2008
GOVT, PUBLIC TRANSPORT OPERATORS PLAYING 'TUG OF WAR' ON FARES
BY Andi Abdussalam
Jakarta, May 29 (ANTARA) - The government, operators and users of public transportation have been playing a three-sided `tug of war' on tariffs over the past few days following last week's fuel oil price hikes.
While their representatives are still holding talks with the government, public transportation drivers on the ground are unilaterally raising transport fare rates they would ask passengers, often with exchange of harsh arguments, to pay for.
Metromini and mikrolet mini buses in Jakarta, for example, have raised their fares by Rp500 per passenger while air-conditioned buses increased their tariff by Rp1,000 per passenger.
Some drivers even went on strike. Drivers of urban public transportation vehicles (angkot) went on strike in three West Jakarta locations on Wednesday to urge the government to set new fares in adjustment to the newly raised fuel oil prices.
At the same time, the Organization of Public Transportation Owners (Organda) was holding talks with the government, demanding a government subsidy or a fare increase by 30 percent.
Previously, the organization threatened to unilaterally raise public transportation fares by 40 to 50 percent, or call a nation-wide strike if in a week's time the government did not set a fair rate.
"We are resolved to stage a nation-wide strike. We will do it so that passengers no longer need to pay the arbitrarily inflated fares as they do now. The public was already carrying a heavy economic burden so we should not add to their hardships," Organda Chairman Murphy Hutagalung said on Monday.
Besides asking for a subsidy or an increase of 30 percent fare, Organda in a meeting with Vice President Jusuf Kalla on Wednesday, also asked the government to abolish all forms of illegal levies and burdening regulations as well as to improve infrastructure and eliminate illegal public transport operations.
"The five-point demand was formulated during a plenary meeting held by Organda on May 25, 2008. The vice president has received our proposal and he will discuss it with the relevant agencies," said Murphy.
He said that Organda had proposed a subsidy which is equal to the amount of the difference between the old and new fuel oil price hikes. The requested subsidy for premium gasoline, for example, is Rp1,500 which is the difference between its old price of Rp4,500 and its new one Rp6,000.
The government on Friday increased the price of premium gasoline from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 and kerosene from Rp2,000 to Rp2,500. The average increase was 28.7 percent.
"So, the amount of subsidy we are asking for depends on the types of fuel oils that have had their prices raised," Murphy said.
In the meantime, the government has yet to decide whether or not it would provide subsidy to public transportation.
"We have discussed the subsidy problem at the vice presidential office before the government announced fuel price hikes. But no decision has been made because we still need to see its technical aspects," Transportation Minister Jusman Syafii Djamal said.
On Wednesday, the minister attended a meeting between the vice president and the Organda executives to discuss the subsidy and fare problems. Minister Jusman Syafii Djalal said one of the technical aspects was to grant subsidy incorporated with the use of smart cards.
The government is launching a try-out program in certain cities to restrict fuel oil consumption where consumers have to use smart cards when refilling at fuel oil stations.
"We are still considering whether public transportation operators would be provided with subsidy by using smart cards," the minister said after attending the meeting.
Vice President Jusuf Kalla is, however, still considering the Organda's proposal for subsidy. The vice president said previously that public transportation operators had actually been enjoying subsidies.
He referred to certain types of fuel oils which were still subsidized. "There is fuel oil which the government is still providing a 50 percent subsidy," Jusuf Kalla said.
The vice president considered that the increased rate by 30 percent as proposed by Organda was too high, saying fuel oil cost accounted for only 16 percent of all the operation costs of public transportations vehicles.
"So, if transportation fares are to be raised, the appropriate increase is about five percent. For this the government allows it to be increased by 10 percent," the vice president said.
Organda's Jakarta branch had earlier demanded that the Jakarta city administration provide fuel oil subsidy for public transport, reduce the taxes and abolish various other levies transport operators had to pay.
"We want an increase of 40 percent to 50 percent in the tariffs, unless operators of public transportation vehicles are allowed to buy fuel oils at the old (subsidized) price," chairman of Organda's Jakarta branch, Harry Rotty said.
In response to Organda's threat, the government called on public transportation operators not to unilaterally raise their tariffs.
"We have to be aware of the fact that the people cannot afford a high increase in public transportation fares and that high tranport fares will fuel inflation," Minister Jusman Syafii Djamal told a transportation workshop in Aceh on Thursday. (T.A014/A/HAJM/A/S012) 19:55/)
(T.A014/A/A014/A/S012) 29-05-2008 19:57:07
Selasa, 27 Mei 2008
GOVT ALLOWS BASIC TRANSPORTATION COST TO RISE BY 15 PERCENT
By Andi Abdussalam
But in reality, bus and minibus owners or drivers in many parts of the country had already reacted to the fuel oil price hikes announced on Friday (May 25) by increasing their tariffs or suspending operations pending an announcement on new fares by local authorities.
Transportation Minister Jusman Syafii Djamal has written to all governors in the country notifying them about the 15-percent limit on transportation fare raises.
"This should be used as a reference for raising public transportation fares so that any increase in intercity bus economy-class fares or city and rural transportation fares will not be excessive," the minister said in his letter No. AJ.302/1/1/Phb-2008 sent to the governors.
In the government's calculations, as a result of the fuel oil price hikes, the basic cost for the operation of intercity buses increased by about 15 percent.
Based on its calculations, the basic costs for region I, which covers Sumatra, Java, Bali and Nusa Tenggara, increased from Rp100.26 per kilometer per passenger to Rp115, and for region II which covers, Kalimantan and Sulawesi) increased from Rp110 per kilometer per passenger to Rpp126.5.
"With such an increase in transportation operating cost, the rate for intercity bus economy-class fare increase should be at a maximum of 15 percent. This means that in region I, the upper limit fares are set at Rp150 per passenger per kilometer and the lower limit was set at Rp92 per passenger per kilometer, while in region II, the upper limit was set at Rp165 per passenger per kilometer and the lower limit was set at Rp101 per passenger per kilometer," the minister said.
In the meantime, it was reported from a number of provinces in the country that public transportation operators had unilaterally raised transportation fares at a rate ranging from 20 to 35 percent.
Passengers had no choice and were forced to pay the fares they had raised unilaterally. The Organization of Land Transportation Owners (Organda) could understand if some operators had raised their fares while waiting for the government decision.
Organda's branch for
"The 20 percent increase is calculated based on operational costs and increase of spare-parts prices following fuel oil price hikes," he said.
Actually, Organda and local authorities are still discussing fairer rates for the increase in public transportation fares following the fuel oil price hikes.
In
"We are still discussing the rate of fare hikes in
The Jakarta Transportation Council also met with Organda on Tuesday to discuss the fare hikes in
Head of Jakarta Transportation Service Nurachman said that his side would discuss the option of raising fares with Organda. There are other options for Organda in connection with the fuel oil price hikes, which included subsidy and tax cut facilities.
"If subsidy and tax cut facility options are not taken then the public transportation fares should be increased. In calculating it, the a rate should be set not more than 15 percent. Transportation owners should go on strike only as a last option if other options are not met," said Nurachman.
He said that his side has called on Organda not to go on strike because it would have wide impact on the general public while the options of raising fares or providing subsidies were still under discussion.
Organda has previously threatened to go on strike if public transportation fares are not increased soon, or one week at the latest after the fuel oil prices were raised. But Nurachman has predicted that the negotiation process for raising the rate of public transportation fares could need more than one week.
The fact on the ground now is that while discussions were still going on some public transportation owners have unilaterally raised their fares.
Metromini and mikrolet mini buses, for example, have raised their fares by Rp500 per passenger while air-conditioned buses increased their tariff by Rp1,000 per passenger.
Transportation Minister Jusman Syafii Djamal hoped that all relevant parties, including the central government and regional administrations would take concrete steps to help reduce the potentials that could cause high cost economy.
"Illegal levies and other undesired actions that would put burdens on public transportation owners must be reduced," he said.
(T.A014/A/HAJM/A/O001) (T.A014/A/A014/A/O001)
Senin, 19 Mei 2008
CASH ASSISTANCE MAY BREED PEOPLE'S BEGGING MENTALITY
By Andi Abdussalam
Jakarta, May 18 (ANTARA) - While millions of poor families across the country are waiting for direct cash assistance (BLT), many quarters have raised objections to the government's program, saying it could breed the recipients' begging mentality.
Around 19.1 million poor families throughout Indonesia will receive a cash assistance of Rp100,000 each plus cooking oil and sugar packages per month in compensation for the increased price of goods following the government's decision to raise domestic fuel oil prices.
For its BLT program, the government has earmarked Rp41.1 trillion for distribution to the poor beginning in June 2008. The would-be recipients have now begun receiving BLT cards.
"The cards for first stage recipients in ten cities have been distributed. We hope all poor families in the ten cities would have received them on May 21, 2008," Secretary General of the Ministry of Social Affairs Chazali H Situmorang said this week.
Though millions of people are badly in need of the assistance, some quarters have voiced criticism against the government's program.
"We reject the BLT program and other assistance of its kind because it does not solve the essence of problems being faced by the people," Agustinus Edy Kristianto, director of the publication and education affairs of the Indonesian Legal Aid Institute (YLBH), said.
He said that the distribution of BLT and other such assistance like the social safety net (JPS) often missed its target and is prone to misappropriation.
The YLBH executive also criticized the government's plan to raise fuel oil prices, saying the policy constituted a package leading Indonesia to economic liberalism.
"Reducing subsidy is in line with the policy of the International Monetary Fund (IMF) which advocates the market mechanism," Kristianto said.
Rejection of the government's program also came from at least 26 villages in Blitar district, East Java. "The BLT assistance will adversely breed the people to become beggars," Abdul Chamim, chief of Karanggayam village, Srengat subdistrict, said.
Chamim, coordinator of the village heads who rejected the assistance scheme in Blitar, said he objected to the government's plan because it would only trigger conflicts among villagers and create lazy people who were actually expected to be creative in how to get rid themselves of poverty.
"It would be better for the government to cancel the plan and replace it with a program on people empowerment, on health and education, or on a labor-intensive program," Chamim said after a meeting with a number of members of villagers' board of representatives.
Instead of receiving direct cash assistance, the people would prefer to have a job. Therefore, the people want the government to open more job opportunities.
"Many villagers in various regions voiced their aspirations. They said the value of the BLT was too small. They wanted the government to offer more job opportunities instead," Eka Komariah, member of the Regional Representatives Council (DPD), told an interactive discussion on fuel oil price hikes and the effectiveness of the BLT.
Besides, the distribution of the BLT could also create envy and trigger a new conflict in society. According to Tjahjo Kumolo, chairman of the Indonesian Democratic Party of Struggle (PDIP) faction in the House of Representatives (DPR), the direct cash assistance could not be provided equitably so that it would create social envy.
He said that the BLT was to be distributed to the poor based on data collected in 2005. "This would create social envy because it does not cover all poor families," he added.
West Java's Karawang District Head Dadang S. Muchtar said the distribution of a BLT in the past had always created a conflict in society. "This year BLT will undoubtedly create fresh social envy and trigger the outbreak of a social conflict," he said.
He said the government's data on poor families were often inaccurate. People who felt they were poor but gained no assistance would protest.
Therefore, the Karawang district head suggested that the BLT be provided in the form of infrastructure development that would facilitate the people's economic activities.
The same aspirations were also voiced by hundreds of village heads in West Java's Cirebon district. They objected to the BLT, saying it had always served as a trigger of social unrests.
The village heads expressed objections during a training program at Cirebon's Apita Hotel last week. They said they would welcome it if the BLT was changed into a labor-intensive program for villagers.
Momon Sayaman, one of the village heads, said it would be better for the government to use the BLT for developing infrastructure facilities and creating jobs for the local people.
In spite of the objections from many sides, millions of poor families are now still waiting for the assistance as the government has begun distributing BLT cards to the would-be recipients.
Secretary General of the Ministry of Social Affairs Chazali H Situmorang said that for 2008 the assistance would be distributed in two stages.
In the first stage, the assistance for three months will be distributed in June and in the second stage, the assistance for four months will be provided in September.
In the meantime, military and police officers are ready to secure the distribution of the direct cash assistance to 19.1 million poor families.
"The distribution of the BLT is actually the responsibility of regional governments but security officers are ready to help and maintain security," Deputy Police Chief Insp. Gen. Makbul Padmanegara said.
The same thing was also voiced by Indonesian Defense Forces (TNI) Commander General Djoko Santoso. He said that TNI personnel were ready to guard the BLT distribution.
"We will assist police in securing the distribution of the cash assistance," he said. (T.A014/A/HNG/A/S012) (T.A014/A/A014/A/S012) 18-05-2008 15:07:43
Rabu, 14 Mei 2008
RI'S OIL OUTPUT SHOWING UPWARD TREND
By Andi Abdussalam
Jakarta, May 14 (ANTARA) - Government officials are upbeat that Indonesia's oil output will exceed one million barrels per day (bpd) this year after observing an upward trend in the country's oil production since January.
"Indonesia's oil production could exceed one million (bpd) at the end of this year," Head of the Upstream Oil and Gas Regulatory Body (BP Migas), R Priyono, said Tuesday.
According to data made available by BP Migas, Indonesia's average oil output in the last five months was 977,835 bpd. However, the figure is still well below the country's daily oil consumption of about 1.2 million bpd.
In order to narrow or fill the gap between consumption and output, Vice President Jusuf Kalla said the government was planning to raise its oil output by 200,000 bpd to 1.2 million bpd by 2010.
"I think we will be able to raise our crude oil production to 1.2 million bpd by 2010 as we have adequate potential oil resources," he said at a dialog with employees of state oil and gas company Pertamina's processing unit in Balikpapan, East Kalimantan, last week.
According to R Priyono, the prediction that the one-million bpd production level could be exceeded was based on the upward trend in national oil production in 2008.
Priyono said Indonesia's daily crude and condensate production in January was recorded at 955,847 bpd, February 986,848 bpd, March 985,872 bpd, April 978,060 bpd and May 982,550 bpd.
It is expected that the upward trend would help the government raise its oil output and achieve its target since Indonesia had turned from an oil exporting state to an oil importing nation.
Early in 2007, the government announced a target of increasing oil and gas production by 30 percent to 1.3 million barrels per day and 8.5 billion cubic feet per day, respectively by 2009.
Indonesia, once one of the most important oil exporters in the world, has become a net oil importer in recent years due to a continued decline in its crude production.
Its oil output reached its first peak in 1977, at approximately 1.6 million barrels per day, rising from 500,000 barrels per day in only 10 years.
Production peaked a second time in 1995, again just over 1.6 million barrels a day but it began to decline steadily in the years that followed.
The country, now the second smallest member of the Organization of Petroleum Exporting Countries (OPEC), is in a dire need of private investment to boost oil and gas output in its aging fields.
Oil industry observer Dr Kurtubi said Indonesia's failure to manage its oil wealth properly in the past few years had caused its crude oil production to decline and led to its dependence on oil imports which had now placed the country in a difficult position.
Kurubi said that as a result of the improper management of the country's oil potentials, the government was now facing difficulties in maintaining the state budget amid the sky-rocketing crude prices in the world market.
"Indonesia could have reaped huge profits from the current world crude price hikes but mismanagement of our oil potentials has caused us to face difficulties now," Kurtubi said.
In the current situation where crude oil prices have surged to around US$125 per barrel, the government had to spend a large amount of funds on oil imports.
"If we want to be safe and gain profit from world crude price hikes, we have to pump up at least 1.3 million barrels per day. If that level is achieved we will be safe in the face the world oil turbulences," he said.
With an output of 1.3 million barrels per day, the government could afford Rp26 trillion to Rp30 trillion in fuel oil subsidy without having to raise domestic fuel oil prices, Kurtubi said.
According to Vice President Jusuf Kalla, Indonesia has large potentials to raise its oil production to meet its rising consumption, he said.
"We have so far been able to export our oil. The market for our oil is already clear. In this country of 220 million, we will not lose the market," he said.
BP Migas chief R Priyono said the upward trend of the country's oil output could be further boosted now that new oil fields have started production.
He said additional crude production would come from 16 new oil fields whose plan of development (PoD) would be carried out this year. The volume of additional production from the new fields was predicted at 71,000 equivalent barrels of oil per day (boepd).
"We are optimistic the upward trend in Indonesia's oil production would continue," he said. (T.A014/A/HAJM/15:00/....) (T.A014/A/A014/N001) 14-05-2008 14:59:31
Selasa, 13 Mei 2008
TEMASEK TO CHALLENGE JAKARTA COURT`S VERDICT
Jakarta, May 13 (ANTARA) - Singapore's state-owned investment firm Temasek Holdings Pte. Ltd is planning to file an appeal with Indonesia's Supreme Court after its objections against the country's anti-trust body ruling that it had violated Indonesia's anti-monopoly law were rejected by the Central Jakarta District Court last week.
Temasek had previously filed an appeal with the Central Jakarta district court over a ruling in November last year by the Business Competition Supervisory Committee (KPPU) that it and its subsidiaries had violated Indonesia's anti-monopoly law, particularly the law's articles on cross-ownership.
Lukas, a lawyer for Singapore Technologies Telemedia (STT), one of Temasek's subsidiaries, said his client would appeal the Central Jakarta district's verdict, which he said was far from being just and had weakened legal certainty for investment, particularly foreign investment, in Indonesia.
"The verdict is not in line with the basis of cooperation in the protection of investors who have been invited by the Indonesian government," he said.
Lukas said there was a very basic problem as there was no proof that his client controlled majority stakes in Indonesia's Telkomsel and Indosat. This was clearly stated in the notarial deeds on the Singaporean companies participation in the Indonesian firms.
"The charges against STT must fulfill two aspects, namely control of the majority stake and occupying a dominant position in the market, before STT can be declared a violator of Article 27, Law No. 5 / 1999," he said.
The Central Jakarta District Court found on Friday last week that Temasek had violated Article 27 of Law No. 5 /1999 on Monopolistic and Unsound Business Competition Practices.
"Temasek Holdings violated Article 27 point (1), Law No. 5 / 1999," Presiding Judge Andriani Nurdin said.
The court ordered the Singaporean state-owned investment firm to sell or reduce its stakes in the two Indonesian mobile-phone-service providers, Telkomsel and Indosat, bringing forward a deadline.
The court also fined Temasek, Telkomsel, Indosat and each of its subsidiaries Rp15 billion (US$1.6 million) and gave Temasek a choice of relinquishing at least 50 percent of its shares in both Telkomsel and Indosat or letting go of all shares in either company within a year.
The KPPU in November last year found Temasek Holdings guilty of cross-ownership in the two domestic mobile telecommunication companies leading it to abuse its dominant position in the market and to practice monopoly.
The business competition law bars a company from having a controlling stake in another company in the same business sector with a market share of 50 percent or more.
The KPPU said last year Temasek had to let go all indirect shares either in PT Telkomsel or in PT Indosat, and to pay a fine of Rp25 billion for breaching the anti-monopoly law.
Temasek owns a 54.15 percent stake in SingTel Group which holds a 35 percent stake in Telkomsel, while Singapore Technologies Telemedia (STT) which is wholly owned by Temasek controls 75 percent of Asia Mobile Holdings which in turn has a 41.9 stake in Indosat.
The largest market shareholder in Telkomsel was found guilty of violating article 17 of the law, particularly of abusing its dominant power to determine the interconnection tariffs among operators.
The Central Jakarta District Court's ruling last week was welcomed by the KPPU. Litigation Affairs chief of the KPPU Muhammad Reza said his side was satisfied with the court ruling.
"We are satisfied with the court's verdict," he said.
In the meantime, Temasek's subsidiary SingTel said it was disappointed by the court's verdict to reject Temasek's appeal.
"SingTel is deeply disappointed with the Central Jakarta District Court's ruling to uphold the KPPU decision. The court's ruling is without any basis and we object strongly to it. SingTel and SingTel Mobile do not own majority shares in any Indonesian company. Further, neither SingTel Mobile nor SingTel controls Telkomsel. Telkomsel is majority-owned and controlled by PT Telkom," SingTel said in a statement on Friday.
"The facts are Temasek has no shares in Indosat and Telkomsel, and plays no role in their business decisions and operations,' Temasek managing director for strategic relations Goh Yong Siang was quoted as saying by the Strait Times in its website.
According to KPPU chairman Syamsul Maarif, consumers had suffered a loss of between Rp14 trillion and Rp31 trillion over the past three years due to the high cellular phone tariffs determined by the two cellular phone service providers.
"The cellular phone tariff is 40 percent higher than that in neighboring countries," Maarif told MetroTV in a dialog on The Economic Challenge on Monday evening.
But Goh said both Telkomsel and Indosat were regulated businesses, operating within the guidelines of the Indonesian Telecommunications Regulatory Authority (BRTI).
Therefore, Temask would file an appeal with the Supreme Court as soon as possible, he said, adding the Central Jakarta District Court had ignored the government's decision to privatize Indosat.
"The divestment in Indosat was done at the government's request because it needed revenue. The court should have respected the government," Temasek lawyer Todung Mulya Lubis was quoted as saying by the Jakarta Post. (T.A014/A/HAJM/A/O001) 13:00/... ) (T.A014/A/A014/A/O001) 13-05-2008 13:13:00
Minggu, 11 Mei 2008
RI TO QUIT OPEC AMID WORLD OIL PRICE HIKES
By Andi Abdussalam
Jakarta, May 11 (ANTARA) - While polemics were going on on its plan to increase domestic fuel oil prices prompted by world crude price hikes, the Indonesian government came up this week with an idea to quit the Organization of Petroleum Exporting Countries (OPEC).
The idea is plausible. Indonesia is no longer a net oil exporting country. The volume of its imports has exceeded its exports. Thus, Indonesia is no longer an exporting country, which is a plausible reason to quit the OPEC.
The government's intention to say a goodbye to the oil cartel was hailed by the House of Representatives (DPR), yet a number of analysts still saw some benefits if Indonesia maintained its membership in the organization.
Energy and Mineral Resources Minister Purnomo Yusgiantoro said this week Indonesia was likely to quit OPEC after 2008. The plan to quit the oil cartel surfaced at a limited cabinet meeting at the presidential office.
"This year we have already paid our membership fee, so that possibly will quit only after 2009," Purnomo Yusgiantoro said.
The government still has to study the consequences of its plan to quit OPEC. "It (the plan) is just the result of talks at a cabinet meeting. So, we need to study its consequences in detail."
The plan was based on the fact that Indonesia was no longer a net oil exporter, as it had imported oil in large quantities, he said.
President Susilo Bambang Yudhoyono has said Indonesia is no longer an oil exporting country but it had become an oil importing nation.
"That's why at a limited cabinet session, we considered a plan to temporarily quit as an OPEC member while at the same time increasing our oil production," the President said.
The House of Representatives' Energy Commission supported the government plan. The commission's chief Airlangga Hartarto said as an oil importer now Indonesia is disadvantaged of its OPEC membership.
"OPEC is a cartel of countries who seek to maintain world crude prices at a high level. This will harm Indonesia's interest," he said.
The House energy commission has since two years ago called on the government to quit the oil cartel.
House Speaker Agung Laksono said Indonesia's domestic oil prices much depended on the price of world oil. Indonesia's oil production and consumption were quite unbalanced with a production of 925,000 barrels per day while its consumption reached 1.4 million barrels per day.
He said that 15 years ago, Indonesia's daily oil production reached 1.4 million barrels while its consumption reached only about 300,000 barrels per day.
"For this we have a plan to quit the OPEC because it is no longer appropriate for us to remain a member," Agung Laksono said.
He said that Indonesia actually still had large oil reserves it could exploit to boost its production. If Indonesia is able to increase its oil production it should not face difficulties everytime oil prices increased in the world market.
Oil industry observer Dr Kurtubi concurred with the House Speaker. Indonesia could have reaped great profits from the current high world crude oil prices and would not have plunged into its present difficult situation, if it had managed its oil potentials well.
He said Indonesia's failure to manage its oil wealth properly in the past few years had caused its crude oil production to decline and led to its dependence on oil imports which had now placed the country in a difficult position.
In the current situation where crude oil prices have surged to around US$125 per barrel, the government had to spend large amounts of funds to import oil.
"If we want to be safe and gain profit from world crude price hikes, we have to pump at least 1.3 million barrels per day. If that level is achieved we will be safe in the world oil turbulence," he said.
With an output of 1.3 million barrels per day, the government could afford to spend Rp26 trillion to Rp30 trillion on fuel oil subsidy without having to raise domestic fuel oil prices, he said.
But while its production level is nowadays only at 925,000 barrels per day, the government is considering quitting the oil cartel after 2008.
Former OPEC oil analyst Abdul Muin has suggested otherwise, however. He said an OPEC membership would still benefits Indonesia.
"The main benefit for Indonesia in maintaining its OPEC membership is that it will have the guarantee from the organization to obtain oil supply at a lower price," he said.
Therefore, Abdul Muin, who became an OPEC oil analyst between 1994 and 2002, called on the government to consider carefully its plan before deciding to raise fuel oil prices.
"Quitting OPEC would have adverse effects on Indonesia's economy," said Asnawi Bahar, chairman of the Indonesian Chamber of Commerce and Industry for West Sumatra.
He said that if Indonesia quit the organization, it would mean that Indonesia also quit the platform a global economic players.
(T.A014/A/HNG/B003).(T.A014/A/A014/B003) 11-05-2008 21:54:13
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Sabtu, 10 Mei 2008
Indonesian Media Editors Under Malaysia's ISIS International Visitors' Program
1. Malaysia's PM Abdullah Ahmad Badawi (seated: third from left) has a
photo session with Indonesia's media editors at his Putrajaya office
during the heightening of tension between Jakarta and Kuala Lumpur over
the Ambalat issue, Kuala Lumpur, April 2005
2. Indonesian media editors have a picture with Malaysia's Deputy PM Dato
Seri Moh. Najib Tun Razak at his Putrajaya office during the heightening
of the Ambalat issue in April 2005.
3. Indonesian media editors have a piciture with Malaysia's Foreign Minister
Syed Hamid Albar at his office during the Ambalat crisis.
4. Malaysia's ISIS director general, Dato Muhammad Jawhar Hassan has a
photo session with Indonesia's media editors who were invited by the ISIS
to have dialog on Indonesia-Malaysia bilateral issues during the heightening of tension between Jakarta and Kuala Lumpur over the Ambalat issues in April 2005.
Joining the MAHATMA Pranic Exercise Community, Jakarta, May 2003
1. Taking Grade I test of the "MAHATMA" Breath-Taking Exercsie
Community at Jakarta's Cibibur Camping site in may 2003
2. Taking leasure time during the recruitment of the "MAHATMA" Breatheing
Exercise Community
3. Breaking a water pump handle as part of the test to take grade I level in
the "MAHATMA" Breathing Exercise Community in Cibubur, East Jakarta,
in July 2003.
ASEAN Editors Conference VII in Jakarta, Indonesia, April 1999
1. A visit to Indonesian President BJ Habibie at his Bhina Graha presidential
office during the 7th ASEAN Editors Conference in Jakarta, April, 1999
2. Representing ANTAR News Agency as Indonesia's chief delegate to the 7th
ASEAN Editors Conference in Jakarta, Indonesia, April 1999
3. Responding to questions raised by participants of the 7th ASEAN Editors
Conference.
4. Together with other chief delegates of the 7th ASEAN Editors Conference
formulate issues to be recommanded at the end of the event (location at a
hotel in Anyer seaside resort, Banten), April 1999
34th ASEAN-COCI Meeting in Manila, Philippines, May 1999
1. Explaining ANTARA News Agency's proposal from Indonesia to organize
an ASEAN journalist coverage of the 1999 general election in Indonesia
during the 34th meeting of the ASEAN-COCI (Committee on Culture and
Information) in May 1999
2. Visiting Villa Escudero, a famous tourist destination in Manila after
attending the 34th ASEAN-COCI Meeting in May 1999
ANEX Seminar on Editorial Management Seminar, Jakarta, April 1997
1. Photo session with Director General for Graphics and Press Subrata
(fourth left), and ANTARA Managing Director Handjojo Nitimihardjo (third
from left) during an ANEX Seminar on Editorial Management Seminar
in Jakarta, April, 1997
2. Presenting a souvenir to participant of the ANEX Editorial Management
Seminar
3. Receiving a certificate of the ANEX Editorial Management Seminar from
ANTARA's Executive Director Nuh Hatumena (host)
ASEAN Editors Conference VI in Subic, the Philippines, June 1996
1. Attending ASEAN Editors Conference VI in Subic, the Phillippines, June 1996
2. Idem
3. Posing for picture, with the Subic Bay background, in a break on the
sidelines of the ASEAN Editors Conference
4. A Filipino sprinkled bamboo water on an ASEAN jouranalist during a jungle
survival demonstration in Subic, the Philippines in June 1996
Covering APEC Summit in Osaka, Japan, Nov.1995
1. Indonesian journalists pose for a picture during a break amid their
activities covering the Asia - Pacific Economci Cooperation (APEC)
summit in Osaka, Japan, Nov. 1995
2. A picture with ANTARA's Bureau chief for Tokyo, Maria Dian Andrian, taken
at a subway station on the sidelines of APEC summit in Osaka, Nov. 1995
ANEX Environment Workshop, in Jakarta Sept. 1995
1. Chairman of ASEAN News Exchange (ANEX) Environment Workshop, Parni Hadi handed over a certificate to a workshop participant.
2. Environment Minister Sarwono Kusumaatmadja opened and address the opening of an ANEX environment workshop attended by journalists from ASEAN countries held in Jakarta in September 1995.
3. A session of the ANEX workshop
4. ASEAN journalists visit the ASEAN secretariat after attending the workshop in Jakarta on September 1995.
Rabu, 07 Mei 2008
Imam Khomeini's hut in Suburban Tehran
1. A giant picture of Ayatolah Rohula Khomeini hung on the wall of his hut where he used to take a rest or to have contemplation after giving religious sermons in a building hall next to it (picture taken in Sept 1993). 2. Imam Khomeini's hut with an elevated alley connected to the back of a main hall building where he used to give sermons to the audience (desciples). 3. The hall of a building where the audience used to receive religious sermons of Imam Khomeini. The altar with his picutre is where he used to stand to preach for the audience (picture taken in Sept. 1993)
Journalists from NANAP on a visit to Isfahan, Iran, Sept. 1993
1. A joke with other journalists from Non-Aligned News Agencies Pool (NANAP) at Tehran's airport prior to a flight for Isfahan. 2. Same as No.1. 3. NANAP journalists aboard a domestic flight enrote to Isfahan, Iran. 4. Together with journalists from NANAP make an observation tour of a steel factory in Isfahan, Iran.
On NANAP Dev'ment Journalism Workshop in Iran, Sep 1993
1. Photo session after the opening of a Non-Aligned News Agencies Pool (NANAP) Development Journalism Workshop in, Tehran, Sept 1993. 2. Journalists from NANAP attended as observers a parliamentary debate in Tehran.
3. Waiting for a connecting flight at Malaysia's Subang Airport enrote to Iran to attend a NANAP workshop in Tehran.
WORRIES ARISING OVER IMPACT OF GOVT PLAN TO RAISE FUEL PRICES
By Andi Abdussalam
Jakarta, May 7 (ANTARA) - The government's policy to increase fuel oil prices in the near future will adversely affect different sectors of the people's life, raising the unemployment and inflation rates as well as slowing down the country's economic growth and gross domestic product, various quarters here cautioned on Wednesday.
"Almost all economic activities such as agriculture, trade and industry are depending on fuel oil," Sahmin Arasyid, member of the Bangka Belitung Legislative Assembly (DPRD) said.
According to the legislative councillor, the government must therefore be very cautious in deciding to raise fuel oil prices because it is a serious issue. Raising fuel oil prices to solve economic problems could be counter-productive. It could cause economic problems, instead of solving the people's problems.
The government has decided to raise domestic fuel oil prices amid the upward trend of global crude prices, which burdens the state budget.
Crude prices in the world market are now hovering at US$120 a barrel and are expected to push up fuel subsidy to more than Rp125 trillion.
It was previously reported that the finance ministry was considering a plan to raise subsidized fuel oil prices by 28.7 percent starting in June.
Based on the scheme, the price of premium gasoline would be raised from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 per liter and kerosene from Rp2,000 to Rp2,300 per liter.
Sahmin Arasyid said increase in fuel oil prices would push up essential commodity prices. "Commodity prices will go up as transportation and production costs will also increase," he said.
At present basic necessary prices have been skyrocketing. It will be worsened by a fuel price increase. "Raising fuel oil prices would not be able to suppress rocketing commodity prices, and this will harm the interest of poor people," Arasyid said.
People in the lower bracket like fishermen will surely feel the direct impact. Therefore, thousands of fishermen in Cilacap district, Central Java, have expressed their concern. They said it was them who would feel the pinch of fuel price hike.
"In Cilacap, thousands of fishermen, who are now already facing difficulties, will surely bear the brunt of fuel oil price hikes," Chairman of Cilacap's branch of the Indonesian Fishermen Association (HNSI), Indon Cahyono, said.
He said that if the government carried out its plan to raise subsidized fuel oil prices it would seriously affect fishermen, now already felt the impact of previous increases in diesel oil prices. In 2005, the price of diesel oil was raised from Rp2,100 per liter to Rp4,300 per liter
Since then, fishermen have been forced to mix diesel oil with kerosene to run their fishing boats. "If fuel oil prices increased, thousands of fishermen would lose their job as they would not be able to buy fuel oil," Cahyono said.
Fishermen in North Sulawesi also faced the same difficulties. Marietha Kuntag, a North Sulawesi provincial administration official dealing with economic affairs, said a fuel oil price hike would push up the prices of basic necessaries as well as transportation costs and affect the fishermen's activities.
"Fishermen in North Sulawesi in general mainly depend on subsidized fuel oil in their fishing operations. So that an increase in fuel oil prices will undoubtedly affect them," he added.
Concerns were raised not only by those who work in the informal sector but also civil servants. A number of civil servants in Lampung province, Sumatra said an oil price increase would increase the cost of their daily necessaries and reduce their purchasing power.
"Civil servants' salaries were raised by about 15 to 20 percent only but oil prices will be raised by about 30 percent. How could we adjust our income to increasing commodity prices," said Warsan, a civil servant, in Bandar Lampung.
According to a simulation conducted by a research institute, an increase of fuel oil prices will affect the country's inflation, employment, domestic products and poverty as well as economic growth.
"A simulation using a 'time-series' model has shown that a 30-percent increase in the prices of various fuel oils such as kerosene, diesel oil and premium gasoline will cause the unemployment rate to grow by about 16.92 percent a year," said Pri Agung Rakhmanto, executive director of Reforminer Institute, an energy and mining reform research institute, said
He said an increase of just 10 percent in fuel oil prices will result in an inflation rate of more than eight percent and an unemployment rate of 5.6 percent. The impact will obviously be much worse if the fuel oil price increase is 30 percent. Unemployment may swell 24 times its present figure.
Rakhmanto said that the simulation also showed that an increase of 30 percent in fuel oil prices would lead to an annual growth of 8.55 percent in the poverty rate.
When the simulation was done using the consumer price index model, it was found that an increase of 30 percent in fuel oil prices would lead to a growth of 26.94 percent per year in the inflation rate.
According to a simulation using the Gross Domestic Product (GDP) model, Rakhamanto said, a 30-percent fuel oil price hike would also reduce the country's GDP to about -4.11 percent.
"In short, an increase by 30 percent in the fuel oil prices will boost the inflation rate, slow down economic growth, increase the unemployment and poverty rates," he said.
Therefore, House of Representatives Speaker Agung Laksono called on the government not to use the option of raising fuel oil prices to resolve the increasing subsidy problem. "The people are now already facing economic difficulties," he said.
The government could use other options, for example, approaching world lending institutions such as the World Bank or asking the IMF to reschedule its debts, Agung added.
(T.A014/A/HNG/A/E002) - May 7, 2008
Selasa, 06 Mei 2008
A break during NAM's Economic Committee Meeting in Bali, Indonesia, May 1993
1. Taking a break with other journalist colleagues from ANTARA News Agency at Bali's famous tourist resort of 'Tanah Lot' during the coverage of the Non-Aligned Movement (NAM)'s Joint Economic Committee Meeting in Bali, Indonesia, in May 1993. 2. Same as No.1. 3. Shopping at Bali's arts market after covering NAM's Joint Economic Committee Meeting in Bali.
On the Non-Aligned Movement (NAM) summit in Jakarta, September 1992
1. A Yemeni Deputy Prime Minister took a note after an interview during the Non-Aligned Movement (NAM) Summit in Jakarta, Indonesia, In September 1992 2. Activities at Indonesia's ANTARA News Agency's editorial room at the venue of the NAM summit 3. Posing in front of the pictures of NAM's founders at the Jakarta Convention Center (summit venue)
On OANA Feature Writing Workshop in Hanoi, Vietnam, July 1990
1. Addressing the Opening of an OANA (Organization of Asia-Pacific News Agencies) feature writing workshop in Hanoi Vietnam in July 1990. 2. Discussing workshop materials with the workshop instructure 3. A dinner with participants of OANA workshop. 4. A dinner with Vietnamese Vieteran photographers 5. A Xinhua journalist reminded that safe water to drink is bottled one as his friend got diarhoea during the workshop
On ANEX Program
Posing together with ASEAN News Exchange (ANEX) journalists attending an ASEAN Attachment Program at ANTARA headquarters, Jakarta, in Oct-Nov 1989
Minggu, 04 Mei 2008
Jumat, 02 Mei 2008
Malaysian Econ. Minister Dato Mustapa Mohamed (r) Receives Andi
Andi Abdussalam, one of Indonesia's media editors who were on a visit in Malaysia under the ISIS Vistors' Program during the heightening of tension between Jakarta and Kuala Lumpur over the Ambalat issue in April 2005, was welcome by Dato Mustapa Mohamed, National Economic Development Minister at Malaysian Prime Minister's Office, on April 12, 2005
INDONESIAN GOVT LIKELY TO RAISE FUEL PRICES IN JUNE
Jakarta, May 1 (ANTARA) - Amid the upward trend in crude prices in the world market which have reached US$120 per barrel, the government is likely to raise domestic oil prices in June in an effort to reduce subsidy and alleviate the state budget's burden.
"The fuel oil price hike issue will eventually be decided politically. To take the decision is not easy," Energy and Mineral Resources Minister Purnomo Yusgiantoro said on Wednesday.
The government is still studying a proposal by the Indonesian Chamber of Commerce and Industry (Kadin) for an increase in the prices of subsidized fuel oil as part of efforts to address skyrocketing fuel subsidy due to the surging global crude prices.
The global crude prices which are hovering at US$120 a barrel are expected to push up fuel subsidy to more than Rp125 trillion.
"President Susilo Bambang Yudhoyono has hinted that raising the prices of subsidized fuel oil is the last option," the minister said.
An ANTARA source said on Tuesday evening however that the finance ministry was now evaluating a plan to raise subsidized fuel oil prices by 28.7 percent in June.
It was said that the price of premium gasoline would be raised from Rp4,500 to Rp6,000 per liter, diesel oil from Rp4,300 to Rp5,500 per liter and kerosene from Rp2,000 to Rp2,300 per liter.
The source said with the proposed fuel oil price hikes the government would be able to save up to Rp25.877 trillion in fuel oil subsidy funds from the state budget.
About Rp11.5 trillion of the Rp25.877 trillion saved would be allocated as cash assistance funds for 19.1 million poor families in the June 2008 - May 2009 period with each family to receive Rp100,000 per month.
Observers said the government's plan to raise fuel oil prices by an average 28.7 percent next June is unfair to small people because it will be a hard financial blow to them, though the government will provide cash assistance.
"This reflects the government's unwillingness to work hard. If it handles fuel oil issues well, it can avoid losing funds. Raising prices will only harm the interest of small people," Ichsanuddin Noersy said.
Noersy mentioned that the government should first work hard to minimize oil theft through cost recovery, examine the difference between oil production at rigs and the volume of oil in tankers, probe oil corruption, optimize production, open new investment opportunities, revitalize oil refineries and reorganize the downstream oil sector.
"If the government has done all these but still bears a new burden, then it can proceed with raising fuel oil prices," Noersy added.
Noersy said that small people would bear the brunt of the oil price increases although the government would introduce various programs for the poor. The subsidy program for the poor is temporary in nature while the impact of oil price hikes would be permanent. "The government should not announce the fuel oil price hikes at will," he added.
Criticism was also raised by economic observer Tony A Praseyantono. He said that the average increase of 28.7 percent in fuel oil prices is too high and could cause panic among the people.
He said he agreed with the government's intention to increase fuel oil prices based on its need to reduce its fuel oil subsidy but before doing it the government should also take into account the people's objective and psychological conditions. "I think, psychologically, a logical increase should not exceed Rp1,000 per liter because it would be objectively acceptable to the people," he said.
So, he said, the increase should not merely be based on mathematical assumptions but also on considerations of the people's financial capability.
The Organization of Land Transportation Operators (Organda) has also rejected the government's plan to raise fuel oil prices by 28.7 percent. "I absolutely reject the plan. Even now, transportation cost takes 30 percent of our income per capita while in many developed countries, the portion is only 10 percent," Organda chairman Murphy Hutagalung said.
Murphy said, fuel oil price increases were normally always followed by hikes in transportation rates. But under the current circumstances where people's purchasing power had declined, operators could not raise their rates.
At the same time, public transportation operators would also be affected as the prices of spare parts would go up as well. "It happened in 2005 when fuel oil prices increased but the world oil price then had not risen like it has now." he said.
In the meantime, an economist of PT Bank Danamon, Anton Gunawan supported the government's plan to raise subsidized oil prices. "If the government has a plan to increase domestic oil prices it should not delay it because otherwise it would create uncertainty and would harm the country's economy," he said.
He said the government should raise the oil prices soon because it would provide certainty for investors. "The bond market is waiting for it," he added. (T.A014/A/HAJM/B003) 2. 21:00. (T.A014/A/A014/B003) 01-05-2008 00:21:50
GRAFT BODY TO G0 AHEAD AMID POLEMICS WITH LAWMAKERS
Jakarta, April 26 (ANTARA) - The Corruption Eradication Commission (KPK) said on Friday it was determined to go ahead with its investigation tasks amid polemics with legislators about its attempt to search their office rooms over an alleged bribery case.
"Law enforcement will go ahead. All legal instruments will be used. I think all must respect legal process," KPK Chairman Antasari Azhar said on Friday in response to reports that the House of Representatives (DPR) was trying to hamper KPK's attempts to search the office of the legislator who was suspected to have been involved in a bribery case of protected forest conversion in Bintan island.
Antasari said the procedure for enforcing the law had been laid down in the law on procedures which serves as a basis for the KPK to act.
House Speaker Agung Laksono said that the KPK plan to search lawmakers' offices on Tuesday ran counter to standing procedures. The House rejection of the KPK plan was seen by the media that the DPR was trying to hamper KPK's efforts to investigate alleged bribe cases in the House.
Agung Laksono acknowledged he was not preventing KPK personnel from investigating the office of Al Amin Nur Nasution, a member of Commission IV of the DPR. Nasution is now under detention by the KPK over an alleged bribery case of a protected forest conversion.
"I am not hampering the KPK in carrying out its tasks," Agung Laksono said stressing however that the KPK should maintain good relations among institutions in carrying out its tasks.
He said that the KPK plan to search the office of Al Amin was not in line with the standing procedures. The House speaker refused to receive the KPK investigators because the House was still waiting for a clarification from the anti-graft body over the Al Amin case.
Panda Nababan of the Indonesian Democratic Party of Struggle (PDI-P) House faction said however that the KPK had every right to search legislators' offices. "Under the law, the KPK has the right to conduct a search. So, Why not? The matter is regulated in the law which was drafted by the lawmakers themselves," Panda Nababan said.
Panda said the polemics on whether or not the KPK had the right to search lawmakers' offices harmed the interest of DPR as an institution because it was the DPR itself which had authorized the KPK to conduct such search.
"The polemics on it are embarrassing. The KPK was set up by the government and the DPR with the right to conduct a search," Panda Nababan, who is also a member of DPR's Commission III on legal affairs, said.
He said the reason that the search ran counter to the procedures should not lead to polemics. "The reason is only a fabricated one because the KPK also searched the Attorney General's Office, the Supreme Court and the Judicial Commission without following any particular procedure," he added.
Deputy Chairman of DPR's Council of Ethics (BK-DPR) Gayus Lumbun said that under Law No. 30. 2002 on KPK, the anti-graft commission in carrying out its task could ignore other laws.
"But in the interest of the law itself to achieve its goals, the KPK should also pay attention to other things such as legal ethics and avoid ignoring other laws," he said.
The BK-DPR, he said, was ready to bridge the misunderstanding between the KPK and the DPR with regard to the 'incident' when the KPK searched the rooms of certain DPR members. If there has been a good coordination between the KPK and the DPR, and both sides want it, the BK-DPR is ready to facilitate them.
"The problem is that KPK officers left the impression that they ignored the universal legal process of ethics. They just followed their own technical procedures to ransack the rooms while lawmakers were in recess," he said.
After all, the legislative institution was not a sidewalk shop or a SPA shop that could be searched at will, he said.
So, if the DPR wants procedures to be followed, it does not mean that institutionally the DPR tries to hamper legal bodies, including the KPK in conducting an investigation.
"As long as it is carried out through the appropriate legal procedures there will be no problem," Aziz Sjamsuddin, deputy chairman DPR's Commission III which deals with legal affairs, said meanwhile.
Sjamsuddin said the legal action should be taken on the basis of the appropriate procedures for example it should be preceded by coordination with the DPR leadership.
On this problem, Agung Laksono will soon meet with the KPK head following the House's rejection of its request to be allowed to search the offices of problematic legislators.
Speaking at the parliamentary building here on Friday, Agung said the meeting was scheduled for next week. At the meeting he and the KPK chairman would try to form a common perception on procedures that should be heeded in enforcing the law.
Agung said the meeting would not be a form of intervention by the House in the KPK's efforts to investigate corruption cases allegedly implicating some legislators.
Arriving at a common perception on procedures to enforce the law was necessary as the House as a state institution should be respected, he said. Therefore, the rejection was not a step to hamper KPK.
According to Agung, KPK step to search the working rooms of the problematic legislators has a strong reason. But the process of law enforcement should also take the process of investigation into account.
In the meantime, KPK Chairman Antasari Azhar said that the KPK has no problem with the DPR. Therefore, he hoped that the air would be cleared soon so that the KPK could go ahead with its legal enforcement tasks. ***3*** (T.A014/A/HNG/A/S012) (T.SYS/A/A014/A/S012) 26-04-2008 01:01:52
EXTENSION OF RI, US COOPERATION ON NAMRU-2 FACING RESISTANCE
Jakarta, April 25 (ANTARA) - The extension of operation with US Naval Medical Research Unit 2 (Namru2) now under negotiations between Indonesia and the United States is facing resistance from legislators and professionals.
"The government should stop and take over the operation of Namru-2 laboratory," Mutammimul Ula, member of the House of Representatives' Commission I which deals with foreign affairs, said here on Thursday.
During 30 years of operation in Indonesia, Namru-2 failed to provide the country with concrete benefits in the defense and health fields.
Mutammimul Ula claimed that other legislators agreed if the drafting process of a Memorandum of Understanding (MoU) released by the Foreign Ministry is terminated.
"Indonesia has now established cooperation with various institutions like the World Health Organization (WHO) to carry out researches and data transfers," he said adding that therefore the extension of cooperation with Namru-2 was not necessary.
"The government should adversely carry out investigation on allegation that the Namru-2 staffers were involved in intelligence operations," he said.
The US embassy in Jakarta should provide evidence and fact that Namru-2 is not an institution carrying out espionage activities, according to the legislator.
"In whatever case, cooperation should be based on transparency and equality which respects the nation and state sovereignty and benefits both sides," Mutammimul Ula said.
In the meantime, Medical Emergency Rescue Committee (MER-C) and An Nashr Institute also urged the government of Indonesia not to extend its cooperation with the US Naval Medical Research Institute.
The appeal was voiced in a statement signed by MER-C Presidium Chairman Joserizal Jurnalis and An Nashr Institute's Chairman Munarman.
It said the presence of Namru-2 in Indonesia over 30 years now failed to benefit the people.
An agreement between the Indonesian and US governments on Namru-2 operations reached on January 16, 1970, was believed to have caused a loss to Indonesia because of the diplomatic immunity of the Namru-2 staff members, their tax exemption and free accommodation.
Namru-2 was also believed to have violated the cooperation agreement, because of their continued research work even that the contract had expired.
In addition, Namru-2 was also reported not transparent in their information for the Indonesian government and that their operations were allegedly linked to US intelligence operations in Indonesia.
The US embassy in Jakarta said that Namru-2 was a transparent organization which only conducted medical and scientific research work focusing on tropical diseases.
The biomedical research laboratory of Namru-2, according to the US embassy, conducted a series of research work on infectious diseases to serve the interest of the US and Indonesian health ministry as well as of the health of the international community.
The search work was more focused on malaria, virus-related diseases and other infectious diseases including bird flu.
Health Minister Siti Fadilah Supari said Namru-2 had begun conducting researches on communicable diseases in Indonesia in the 1970s but the results of which were not yet concrete for the elimination of contagious diseases in Indonesia.
Therefore, according to the minister, the government should deeply consider it before it decided to extend the cooperation. "Should the cooperation be extended, the government must firmly state its attitude in the new agreement," she said.
Previously, Indonesian Foreign Minister Hassan Wirajuda said decision on the extension of Namru-2 cooperation had not yet been taken. "Still pending," he told reporters on Monday.
He said that the Indonesian government had proposed a draft MoU in November 2007 which the United States still was discussing.
On the diplomatic immunity requested by the United States for 20 Amru-2 staffers, the minister said that it would be restricted.
"We restrict it because it is a research activity not a diplomatic function so that we were of the opinion that not all of them should be granted diplomatic immunity," he said.
Indonesian Defense Minister Juwono Sudarsono said on Thursday that the Indonesian government is persisting in its preparedness to grant diplomatic immunity to only two US Namru-2 staff members.
"We are sticking to our stance that not all of Namru-2 officers will be granted diplomatic immunity. We will give the immunity to only two of the 20 US naval officers with Namru-2," he said.
The minister said besides restricting the number of Namru-2 staff having diplomatic immunity, Indonesia was also insisting that doctors of the Indonesian Navy be assigned in Namru-2 as supervisors.
The need to assign Indonesian supervisors was due to the fact that so far the activities carried out by Namru-2 officers were not transparent.
"We want Indonesian naval officers to be involved in the activities of NAMRU-2," the minister said.
Indonesia and the United States are still negotiating several points for the resumption of their cooperation on Namru-2.
"The discussions are now focused on the United States request for diplomatic immunity for 20 Namru-2 staff members," the minister said. "If we give diplomatic immunity to all of them, we are afraid we will not be able to control or know the things they do or take in the research activities."
US Health Minister Michael O Levitt during a working visit in Indonesia asked the Indonesian government to give diplomatic immunity to Namru-2 staffers.
When the bird flu broke out in Indonesia in June-July, 2005, the Namru-2 cooperation was continued. Namru-2 assisted Indonesia in research on avian influenza virus infection and helped the government send specimens of suspected patients to the Center for Diseases Control and Prevention (CDC)laboratory in Atlanta and the WHO collaboration laboratory in Hong Kong.
Namru-2's contract with Indonesia expired on December 31, 2005 so that all activities with the laboratories were stopped on January 1, 2006.
RI STILL QUESTIONING 'ELEMENTS' HAVING LINKS WITH REINADO
Jakarta, April 22 (ANTARA) - The Indonesian government is still waiting for clarifications about whom Timor Leste President Ramos Horta meant when he said "elements in Indonesia" had had contacts with rebel leader Alfredo Reinado.
Ramos Horta was quoted by the Associated Press as saying in Dili recently there was a possibility rebel army officer Alfredo Reinado, who had tried to assassinate him in an armed attack on his residence but was himself killed in an ensuing shootout, had "a lot of contacts ... with elements in Indonesia".
Horta was shot in the stomach during the pre-dawn attack on February 11, 2008 on his Dili home by rebel soldiers led by Alfredo Reinado.
Indonesian Foreign Minister Hassan Wirajuda who earlier challenged Horta to provide evidence on his statement said on Monday Indonesia was waiting for explanations from Timor Leste on who were the 'elements' referred to by the Timor Leste president.
"We want to hear whether the problem referred to as 'elements' by President Ramos Horta has been overcome," Wirajuda said referring to the arrest by Indonesian police of three Timor Leste citizens last Friday.
The arrest was made based on information provided by the Timor Leste government.
"We rely on the information given by the Timor Leste government as to what it has meant by 'elements'. We don't know whether or not the elements meant are the ones we have arrested or whether there are others," the minister said.
The three Timor Leste citizens who were arrested by the Indonesian police were Egidio Lay Carvalho, Jose Gomes and Ismail Sansao Moniz Soares. They had entered Indonesia illegally.
Last week, in New York, Wirajuda challenged Horta to provide evidence on his allegation. "If Timor Leste can provide evidence, we will be ready to take follow up actions on the allegation," he said.
He said the Indonesian government had an open mind. If there was information, for instance on phone calls or money transfers, it should be given to the Indonesian government. With such information it's easy to trace the people involved, he said.
Also in reaction to Horta's allegation, President Susilo Bambang Yudhoyono asked Timor Leste leaders not to issue any statement that could be interpreted as if there had been elements in Indonesia possibly involved in the shooting on February 11, 2008 of President Jose Ramos Horta.
Yudhoyono said he talked with Ramos Horta on April 10 when the Timor Leste leader was being treated in Australia for gunshot wounds.
"In the phone talk, Ramos Horta briefed me on the investigation being conducted into the shooting incident and asked for assistance from the Indonesian government," Yudhoyono said.
Indonesia sent two high-ranking police officers to Dili on April 13 and April 15 to collect information from the Prosecutor General of Timor Leste and to analyze the information together.
Based on the information, the Indonesian police acted swiftly to locate the suspects. Everything happened quickly, professionally and in a high spirit of cooperation, he said.
"That is why, I was a bit surprised to hear President Ramos Horta's statement because it was my understanding that the telephone conversation on April 10 was not for public knowledge yet. I instructed my ministers and police chief not to disclose the information to the public in order to give an opportunity to the Indonesian police to hunt the suspects," he said.
The three suspects, identified as Egidio Lay Carvalho, Jose Gomes, and Ismail Sansao Moniz Soares, are all members of the military of Timor Leste, who have been involved in rebellious activities, and suspected of involvement in the shooting incident.
Yet, it is not clear who were the 'elements' Horta referred to in his statement when he arrived in Dili from Australia last week.
According to Australian television and radio station ABC on Friday last week, Ramos Horta also accused Indonesian Metro TV journalist Desi Anwar of having assisted Alfredo Reinado to visit Indonesia for an interview in May 2007.
The station in a report quoted Horta as saying he had strong evidence that Anwar, in cooperation with officials in East Nusatenggara (NTT), had helped Reinado obtain fake documents to travel to Indonesia.
Desi Anwar denied the president's allegation, however, saying it was absolutely ridiculous and nonsense. "This is ridiculous, illogical and not true," she was quoted by ANTARA News Agency as saying.
She expressed regret that a president had made allegations without evidence and accurate data. As a head of state, Horta should have obtained accurate information. "As a president, Horta should have been given accurate inputs," Anwar said adding she hoped the Timor Leste president was convalescing well. "I wish him a speedy recovery," she said.
Horta said what Metro TV and "other elements in Indonesia" had done had also contributed to the attempt on his life last February 11.
In the meantime, the Indonesian Army stressed on Tuesday that no serviceman in Indonesia had had any contact with Alfredo Reinado.
"None of them have had any contact with him. Indonesian army members (in East Nusatenggara bordering Timor Leste) only have the duty to guard the border and they are not allowed to enter the neighboring country," Indonesian Army Chief of Staff General Agustadi Sasongko Purnomo said.
He said all soldiers of the Indonesian Defense Forces (TNI) always followed regulations, including in carrying out government policies to uphold national sovereignty and secure the borders with Timor Leste.
"No Indonesian military man is involved. Soldiers follow rules. They only guard the border areas," Agustadi said. (T.A014/A/HAJM/19:35/a014)