INDONESIAN LOCALS PERFORM RITUALS TO WELCOME NEW YEAR

By Andi Abdussalam

     Jakarta, Dec 29 (ANTARA) - While Christians were still enjoying their post-Christmas holidays, some Muslims in the country on Monday performed various rituals to welcome the Islamic New Year, 1 Muharram 1430 Hegira. Besides the Islamic New Year, Javanese also observed the Javanese New Year, 1 Suro, 1942 J, which both fall on the same day.

        Rituals such as the 'Gunung Kawi' offerings in Malang, the 'topo bisu' in Yogyakarta, the 'kungkum' in Semarang were among local traditions, apart from visits to 'sacred' places, were performed to welcome the Islamic New Year.

        In Malang, East Java, for example, thousands of people on Monday attended the "Gunung Kawi" (Mount Kawi) ritual in Wonosari village, to welcome the Islamic New Year. The 'Gunung Kawi' ritual which is held on 1 Muharram or also known as 1 Suro (Javanese New Year, 1 Suro, 1942), was filled with several activities such as an art procession and flower scattering at the Gunung Kawi graveyard.

        The ritual procession by at least 15 art groups also presented statues and offerings of several agricultural commodities such as rice and starchy root crops at the foot of Mount Kawi.

        "This is an expression of gratitude of the people of Gunung Kawi to the Supreme God. Besides, it is also held in honor of Gunung Kawi's respected figures, Eyang Djugo and Raden Mas Imam Sdudjono," said Wonosari village head Kuswanto.

        The Gunung Kawi ritual is an annual event which gets full support from the Malang regional government and has been included in the tourism calendar of events along with other beach and agribusiness tourism events.

        "The art procession will be ended with the burning of 'ogoh-ogoh' puppets which symbolize the evils on earth. We hope by organizing this event, the people will be spared from all sorts of ordeals," he said.

        The burning of the 'ogoh-ogoh' was done on the premises of the Gunung Kawi graveyard. Before the puppets were burnt, they were carried around the village by tens of residents dressed in 'ogoh-ogoh' costumes.

        In Central Java, hundreds of people coming from various cities jammed the Soeharto Monument Sunday night in Bendan Duwur village, South Semarang sub-district to welcome the Islamic and Javanese new years.

        Visitors had since Sunday flocked the area where the Kripik and Kreo rivers meet to perform the 'Kungkum' (bathing) ritual and offer prayers for good fortune in the coming year. Some of the visitors actually descended into the river to soak themselves in the water at 11 pm but others only washed their faces, feet and hands with river water.

        They believed that by washing their bodies in the river, good fortune would be with them throughout the year. "This is for the first time I am taking part in a kungkum ritual. I hope I will be successful in my work," said Antoni who came to the place with six colleagues.

        A local ritual was also held in Yogyakarta. About a thousand Yugyakarta residents on Saturday night conducted a "silent walk" around the palace of Sultan Hamengkuwono X in a ritual locally called 'topo bisu mubeng beteng' to welcome the Javanese and Islamic new years.

        The procession which was kicked off by BBPH Joyo Kusumo, a member of the sultan's extended family, moved from a square north of the palace to a another square on the palace's western side through the Ngabean area, and then headed towards a point south of the palace past the 'pojok beteng kulo' corner before moving to the 'pojok benteng wetan' in the south.

        On arrival at the 'beteng wetan' square, the ritual performers who consisted of men, women and youths, continued their silent walk to the north through Jalan Brigjen Katamso and Jalan Ibu Ruswo before returning to the northern square.

        Throughout the procession, all of the procession's participants had to remain completely silent and walk with their eyes fixed straight ahead. The participants included 'abdi dalam (palace servants) and representatives of various districts in Yogyakarta.

        Procession participants representing the districts of Sleman, Bantul, Gunungkidul, Kulonprogo and Yogyakarta, carried banners showing the insignia of their respective regions.

        Other rituals performed in welcoming the New Year, included visits to sanctified places. In Banten, crowds of visitors on Sunday night flocked to the tomb of Sultan Hasanudin, a highly respected propagator of Islam in Banten province, on the eve of Islamic New Year, 1 Muharram 1430 Hegira.

        At least 3,000 visitors from various regions had since Sunday evening gathered around the tomb located in Banten village, Kasemen sub district, Serang, Banten's provincial capital.

        "I came here for a devotional visit and a period of introspection in entering the Islamic New year, 1 Muharram," Sapri(50), a resident of Tangerang district, said.

        Sapri, who came with his Islamic study group and had been waiting since the evening, had to be patient before he got a turn to enter the tomb complex due to the crowds of visitors. His group wanted to welcome the Islamic New Year at the tomb while offering prayers for Indonesian Muslims and the nation.

        "We hope that our prayers during our visit to the tomb on the eve of the Islamic New Year will be answered by God with His blessings on Muslims," he said.

        Muhammad Sukri (40) of Cikande village in Serang and his family visited the tomb of the Islamic propagator and spent the night on the eve of the Islamic New year. "We offer prayers to God and recite chants in His name during the night asking for safety, spiritual and physical health," he said.

        In the meantime, hundreds of Muslims in Indonesia's easternmost province of Papua welcomed the Islamic New Year with a walk, bazaar and drawing of door prizes on Monday. Hundreds had since 6 am flocked to the Police Mobile Brigade (Brimob) Shooting Range where the Islamic New Year celebrations were centered in Abepura.

        They gathered at the Brimob square before they moved out of the shooting range to the main road connecting Jayapura city with Sentani airport. The walk covered a distance of about three kilometers. They returned to the Brimob square to continue the day's program with a bazaar and a door-prize awarding gathering.

        The walk, bazaar and door prize drawing were enlivened with the performance of 'qasidah' music groups. Monday morning's activities were part of the Joint Chant Recital, Observance and Mid-night Prayers organized since Sunday until early on Monday to welcome the Islamic New Year.  (T.014/A/HAJM/17:50/a014) 29-12-2008 19:02:34

ELECTION BODY RACING AGAINST TIME FOR LOGISTICS PROCUREMENT

By Andi Abdussalam

     Jakarta, Dec 28 (ANTARA) - The government will hold a legislative election on April 9, 2009, but it seems that the General Election Commission (KPU) is racing against time in the remaining three months to prepare the election logistics.

        Even, the procurement of logistics has not yet been put out to tender, raising public concerns that it would affect the election process.

        Secretary General of the Indonesian Forum for Budget Transparency (FITRA), Yuna Farhan, said that the KPU should name the winners of the tender soon and carry out the logistics procurement as scheduled.

        "The printing of ballot papers should have been finished in February so that they would have been distributed in March 2009," she said in a discussion on the tender of the election logistics procurement last week.

        In an effort to remove the barriers that might hamper the preparations and the implementation of the elections, the government on Saturday held a consultation meeting with leaders of the relevant state institutions such as the KPU, the Elections Supervisory Board (Bawaslu), the Elections Supervisory Committee (Panwaslu), the House of Representatives (DPR) and the Constitutional Court (MK).

        One of the issues discussed in the consultation meeting was the procurement of the 2009 election logistics. The government and the KPU agreed to speed up the tender process so that procurement could be made soon.

        KPU Chairman Abdul Hafiz Anshary said the meeting agreed that for the sake of the implementation of the elections, the logistics procurement could be made even if it was not in line with Presidential Decree No. 80/2003. The decree regulates the procurement of government's goods and services.

        "The meeting even discussed the possibility for the government to issue a new presidential decree on the procurement of elections logistics," Anshary said.

        The 2003 decree stipulates that companies which offer the lowest price are to be named winners of the tender. Thus, it is considered that the implementation of the decree will have potential risks because companies with lowest price offers may have no capability to provide enough elections logistics.

        Besides the need to issue a new presidential decree, the meeting also suggested that the government should set the price itself for the logistics procurement in order to prevent naming incompetent companies.

        According to Hafiz, Vice President Jusuf Kalla suggested during the meeting that the price be fixed by a government team with members composing of representatives from the Trade Ministry, the Industry Ministry and the Development and Financial Supervisory Agency (BPKP).

        "So, there are two alternatives, namely whether to call for a tender based on a new presidential decree or based on the vice president's suggestion," the KPU chairman said.

        The solution to speed up the tender process for the procurement of the election logistics will be discussed again between the government and the KPU as well as the Bawaslu this week.

        The tender process for the procurement of the election logistics is now still in the verification stage. Hafiz said logistics should have been distributed to all regions in March 2009.

        According to Yuna Farhan, logistics for the general elections, particularly the ballot papers, should be prepared on time so that the election proceedings would not be disturbed.

        "The KPU should have named the winners of the tender for the procurement of the ballot papers this month (December) to allow the printing process to start in January 2009," she said.

        Hayie Muhammad of the Indonesian Procurement Watch (IPW) expressed the same voice, saying that if the winners of the tender had not yet been decided this month (December), the printing of the ballot papers could be delayed from the target in January.

        "The KPU should pay attention to the ballot paper problem because it will disturb the elections if its distribution is delayed," he said.

        Actually, President Yudhoyono has felt the urgency of naming the tender winners soon. He told a press conference on Saturday that the government hoped the tender for the procurement of the election logistics would be called for as soon as possible.

        After all, the government has promised to disburse the budget for the KPU based on the election preparation stages. The elections should be held in accordance with plans.

        Therefore, the government is trying its best to make the election process run smoothly. It is also prepared to issue a government regulation in lieu of law (Perpu) to overcome problems hampering the implementation of the election.

        "The government is ready to issue a government regulation in lieu of law to overcome laws which have provisions that hamper the elections," the president said.

        So far, there have been findings in the field that there are laws whose provisions are not supportive to the smooth implementation of the elections.

        In this case, according to the president, the government might issue a Perpu to overcome regulations which in the field turned out to cause difficulties for the election process.

        He cited as an example the tight requirements needed for a person to become a member of the Elections Supervisory Committee (Panwaslu). On paper, it is an ideal regulation but in the field it poses difficulties because it is too tight that suitable personnel are difficult to recruit.

        The other problem found is the law which stipulates that a ballot paper would be invalid if it has two check marks during the polls.

        "Based on the law, ballot papers with two check marks are invalid whereas it is quite possible that a voter would place one check mark for the political party and another one for the candidate," the president said.

        He said it was advantageous for the law which stipulated that a ballot paper would be valid if it was ticked with one check mark only. This was because it could lead to many votes to be declared invalid.

        "All These could be overcome by the issuance of a Perpu so that no political party would have its interest harmed," the president said. T.A014/A/HNG/B003) 28-12-2008 22:12:40

PEOPLE THRONG INTERESTING PLACES ON X'MAS HOLIDAYS

By Andi Abdussalam

      Jakarta, Dec 26 (ANTARA) - After year-long hectic days, now is the time for a relaxation during this year-end holidays. People in many parts of the country like Java, Bali, Sumatra and Kalimantan are flocking at tourist destinations and other interesting places.

        Popular tourist destinations and cities are tidying up in an effort to attract both domestic and foreign visitors. Yogyakarta, for example, has prepared various cultural and arts attractions.

        The Culture and Tourism Office of Yogyakarta is making preparations to enliven the New Year festivities and attract visitors. "We are preparing various cultural and arts attractions to entertain tourists during the New Year festivities in five major tourist destinations," Head of the Culture and Tourism Service Dwi Suprayitno said here on Friday.

        He said that with the preparations Yogyakarta hoped to attract many more tourists to the region. The five main destinations include the Tlogo Putri Kaliurang, Gardu Pandang Kaliurang, Wisata Trumpon village, Prambanan Temple and Cangkringan.

        According to Suprayitno, the attractions will include the 'Kuntulan' religious art performance, Malay Orchestra, a fire crackers festivity, a 'jathilan' traditional arts performance and the 'uba rampe'(crop yields) ritual procession.

        On Thursday, about 8,000 holidaymakers flocked to Yoyakarta's 'Parangtritis' beach in the south coast and the number is expected to increase by about 50 percent on the eve of the Islamic New Year on Sunday night, beach coordinator Harianto said.

        Most of the holidaymakers during Christmas came to the beach by motorcycles and cars from outside Yoyakarta, such as Surabaya, Jakarta, Semarang, Solo and Klaten.

        He said the number of tourists who thronged the beach in the morning of Christmas day reached 4,254 while those who entered the area in the evening 3,469.

        Harianto said that the visitors were expected to increase by about 50 percent on the eve of the Islamic New Year of 1 Muharram, which falls on Monday.

        In Bali, Indonesia's tourist resort province,the roads in the city of Denpasar, were almost deserted on Friday as people flocked to recreation centers.

        Economic activities were reduced as many shops, offices, garages or even restaurants were closed for this weekend and New Year holidays.

        Only a limited number of offices and service companies were still open on Friday. Roads in commercial districts in Denpasar such as on Teuku Umar, Imam Bonjol, Diponegoro, Hasanudin streets, which are usually packed with vehicles were also abandoned.

        Main roads such as Ngurah Rai Bypass from the eastern area of Sanur Beach to Nusa Dua resort were also deserted. The lonely scene was also observed in the Ida Bagus Mantra Bypass which stretches along the Bali eastern coast to Karangasem.

        On the other hand, roads leading to Kuata Beach, a favorite tourist destination, were however jammed. Most visitors were domestic holidaymakers from Java.

        Visitors have been flocking Bali since Thursday, causing rooms of small and large hotels almost fully occupied in the tourist resorts of Sanur, Nusa Dua, Kuta, Jimbaran, Ubud and Denpasar.

        High hotel occupancy rates also happened at hotels in Anyer and Carita beaches, Banten province, in the western tip of Java. Secretary of the Indonesian Hotels and Restaurants Association (IHRA) for Banten province, Agus Santoso, said that the occupancy rates of hotels along the Anyer and Carita beaches had reached an average of 80 percent.

        "We have received confirmation from hotel owners that about 80 percent of their rooms were occupied. Some even said that their rooms were all occupied," he said. He said that rooms at Nuansa Bali hotel, which had 110 rooms, for example, had been 100 percent booked. Likewise, Sol-Elite Marbela Hotel public relations officer Shinta Islasari said her hotel also had been fully booked for the December 30 - January 2 holidays.

        Santoso said that the increase in the number of visitors to Anyer and Carita beaches was due to Christmas, school and New Year holidays

        Aside from Java and Bali, holidaymakers also thronged tourist sites in Sumatra. A large number of holidaymakers from various regions in Sumatra, such as Riau, Jambi and Bengkulu visited a number of tourist destinations in the city of Bukittinggi, West Sumatra.

        Sources here said that the tourists came to Bukittingi by car. They crammed the 'Jam Gadang' (Grand Clock) tourism area. The Jam Gadang area includes a site of shopping tourism and culinary centers where domestic and foreign tourists could enjoy special local dishes and purchase souvenirs. Pasar Atas (upper market) market located in this area sells various typical embroidered clothes as well as head scarves and other items.

        Tourist Rizki of Riau said he was having a holiday in Bukittinggi while paying a visit to his relatives in Payakumbuh city in Christmas and New Year holidays.

        Besides Bukittinggi, West Sumatra also has other main tourist destinations such as the Mandeh resort area, the new panorama resort, the Danau Kembar resort (twin lakes), the Mentawai marine tourist spot, the Harau valley and the Puncak Lawang resort.

        In the meantime, holidaymakers in South Kalimantan preferred the so called 'religious tourism.' Hundreds of holidaymakers from South Kalimantan province are taking advantage of the long Christmas, New Year and school holidays to conduct a religious trip to various religious tourism destinations.

        Chairperson of the Indonesian Tours and Travel Association (Asita) for South Kaliantan Armistiany said that many South Kalimantan residents took the opportunity of the long holidays to conduct religious trips to a number of destinations in Java.

        "They visited the tombs of 'Wali Songo' (nine Muslim saints) . The local people called it 'Tour Wali Songo'" Armistiany said. Over the last several days many "Tour Wali Songo" groups have left Banjarmasin for Java. Each group consisted of 100 members and led by a Muslim cleric.

        Armistiany, who is also owner of PT Barito Perkasa Travel & Tour, said many people from South Kalimantan had a keen interest in this type of holidaying. Air tickets of a number of airlines had sold out until end of the year. (T.A014/HNG/A/H-YH)  26-12-2008 22:34:23

MK'S RULING MAY REDUCE WOMEN'S PARLIAMENTARY SEATS

By Andi Abdussalam

Jakarta, Dec 25 (ANTARA) - The widely welcomed Constitutional Court (MK)'s ruling this week which annulled article 214 of law on election is feared to hamper the fulfillment of women's 30 percent seat quota in parliament.

        The Constitutional Court ruled on Tuesday that seats in the country's legislatures would go to the candidates who secured the most votes. The MK annulled article 214, which stipulated that seats were to be distributed to candidates based on their numerical order.

        The United Development Party (PPP), which basically accepts the MK ruling, said it would affect the fulfillment of women's quota in parliament.

        "We initially hope that by putting in advance in the list the number of many female candidates, women would have more chances to be elected members of national and regional legislatures," said Lukman Hakim Saefudin, chairman of the PPP faction in the House of Representatives (DPR).

        The MK's decision will require the General Elections Commission (KPU) to implement the system where national and regional legislative seats are to be distributed to candidates who secure the most votes.

        According to Saefudin, the new ruling will automatically affect political parties' intention in placing their female candidates in the top of their numerical order list.

        "Now, all candidates have equal chance to win, no matter whether they are placed in the first numerical order, in the middle or in the bottom of the list. Therefore, PPP is no longer motivated to place female candidates based on numerical order," said Saefudin.

        With this system, female candidates who are placed in advance based on the numeral order no longer have chances to reap votes from candidates ranked in the bottom of the list.

        "Female candidates must also work hard if they want to win a seat in parliament," Saefudin said.

        He said that with the change in the system, PPP will also change its strategy in the coming elections. The legislative election is scheduled on April 9, 2009.

        "The new ruling will likely change PPP strategy because so far PPP has been accustomed to the numerical order system," Saefudin said.

        In the meantime, the Women Defenders for Pancasila Democracy Movement (GPPDP) has voiced its protest against the MK's ruling.

        Yudha Irlang, member of the Working Group for Female Representation of the GPPDP, said MK through its decision has negated women's struggle for their representation in parliament.

        "The Constitutional Court ruling is questionable. It has discouraged women's struggle," Irlang, who was accompanied by the Indonesian Women's Coalition Secretary General Masruchah, said.

        She said that the annulment of Article 214, Law No. 10/2008 on Legislative Elections negated the substance of other articles in the same law which stipulated the representation of women in parliament.

        Irlang said the law on legislative election had been endorsed by the House of Representatives and the government, where the system to be adopted was a proportional system that could tolerate a specific action for the sake women's representation.

        The distribution of seats based on the collection of most votes is feared to spoil democracy. It is feared that candidates with enough fund sources would use money politics and approach voters.

        Ray Rangkuti, director of non-governmental organization (LIMA), said that the MK decision was feared to lead parties to be involved "vote transactions".

        "It is quite possible for candidates, particularly those who feel themselves not so popular, to involve in votes transactions," he said on the sidelines of a discussion forum in Jakarta on Wednesday.

        Therefore, he said, the Elections Supervisory Board (Bawaslu) and the public at large should keep an eye on the possibility of vote transaction practices. "The election committee at the district level is a place prone to money politics," Rangkuti said.

        In the meantime, Masruchah was of the view that the MK's ruling was adversely contradictory to the constitution. She said that Law No.10/ 2008 on Legislative Elections had accommodated the representation of 30 percent women in parliament.

        The law required that one of each three legislative candidates must be female. With the new stipulation that seats are to be distributed to candidates who secured the most votes, instead of to those listed in advance based on numerical order, the regulation on the female representative would be meaningless, according to Masruchah.

        KPU chairman Hafiz Anshary said however that the MK decision would not affect women's quota in parliament.

        "The MK ruling will not change the quota of women in parliament but the votes they would secure will depend on the voters' choices," he said.

        Abdul Hafiz Anshary at his office said that the KPU would issue a draft regulation on legislative candidacy following the Constitutional Court's decision.

        "The court's decision as a legal product has to be upheld. The KPU will implement the decision by issuing a draft regulation on legislative candidacy. It is now still under deliberation," he said.  (T.A014/HNG/A/E002) 25-12-2008 23:02:19

VIY 2008 TARGET ACHIEVED BUT HARD WORK LIES AHEAD

By Andi Abdussalam

Jakarta, Dec 24 (ANTARA) - Indonesia may now crow about its success in achieving its Visit Indonesia Year 2008 (VIY 2008) target, but another challenge is waiting when it continues its VIY programs amid the global economic crisis in 2009.

        After achieving its VIY 2008 moderate target, set at over 6 million foreign tourist arrivals, Indonesia is eying another target of 6.5 million during the VIY 2009 next year. The government has decided to extend its visit Indonesia year programs from 2008 to 2009.

        Indonesia's tourism program this year successfully set a new record in the number of tourist visits and in the foreign exchange earnings.

        "Indonesia is expected to be visited by at least 6,433,507 foreign tourists until the end of this year or an increase by 16.85 percent compared with that of 2007 which was 5.5 million," Culture and Tourism Minister Jero Wacik told a year-end press conference on Tuesday.

        In term of earning, the foreign tourist visits in 2008 also contributed a high record of foreign exchange revenues to the state amounting to US$7.65 billion. This is the biggest foreign exchange income earned from tourist visits, bigger than the previous highest record of US$5.74 billion in 2000.

        The success this year is thanks to the bigger number of visiting tourists and the bigger spending they made during their stay in Indonesia.

        Based on a passenger exit survey 2008, the average spending per person of visitors in 2008 is recorded at US$1,178, which increased from US$970 in 2007.

        The government when it launched the VIY 2008 early this year set a VIY 2008 target within a range of three grades, namely 7 million (optimistic target), 6.5 million (moderate) and 6 million (pessimistic target).

        Now that it has achieved its moderate target, the government has once again set itself another target of 6.5 million in 2009, a year which is expected to experience a global economic meltdown.

        Culture and Tourism Minister Jero Wacik admitted that in order to achieve the target of foreign tourist arrivals in 2009, Indonesia needed to work hard.

        "We are optimistic we could achieve the foreign tourist arrival target which is set at 6.5 million in 2009 on conditions that all stakeholders, including tourism industry, will continue to make innovation in attracting visitors to the country," the minister said.

        The tourism development in Indonesia next year will be based on marine and MICE (meeting, incentive, convention and exhibition) service tourism concept.

        Indonesia has very interesting marine tourism charms that could be sold to tourists. It has undersea charms that could be cultivated in the form of marine sport tourism. The MICE-based tourism could also be developed in support of available infrastructure such as resorts and international class golf courses.

        These tourism potentials need to be developed further. That's why the VIY as a government's well-planned program in the tourism industry sector has to be continued.

        "Owing to the fact that various achievements have been made and the need to develop tourism industry in the future, we feel that the VIY programs have to be continued in 2009," Jero Wacik said.

        In the meantime, former minister of culture and tourism Joop Ave expressed hope that all stakeholders of tourism industry, beginning from the government, business players down to the people must work hand-in-hand in advancing the country's tourism sector.

        "Achievements made in the tourism sector in 2008 are of good category, but there are heavy challenges lying ahead in 2009," Joop Ave said during the VIY 2008 appreciation night at the 'Sapta Pesona' building in Jakarta on Tuesday.

        The former minister said that tourism industry is a sector which indirectly absorbed a lot of workers. "We should not think of how many foreign tourists visiting the country and how much money has been earned but rather, how many people have relied on this industry," Joop Ave said.

        The tourism sector is one of the biggest contributors to the state coffer and could serve as a means of creating a large number of job opportunities.

        "That's why, the responsibility for the development of the tourism sector should not fall into the government only but also on all parties involved," he said.

        The former tourism minister said that one thing which was most important in developing tourism was that all people must be aware of the importance of tourism.

        "It should be borne in mind that advancing tourism in the country must be made its own sons, not foreigners. So, just turn yourselves as domestic tourists and make visits to your own country," Joop Ave said.

        According to Minister Wacik, the progress of the country's tourism in 2008 was also boosted by domestic tourists. In 2008, a total of 223 million trips were made by domestic visitors, increasing 4.95 percent from 211 million trips in 2007.

        The expenditures of domestic tourists reached Rp107.1 trillion, a slight increase from Rp102 trillion in 2007. ***2*** (T.A014/A/HNG/B003). (T.A014/A/A014/B003) 24-12-2008 22:17:53

GLOOMY OUTLOOK OVERSHADOWS INDUSTRY IN 2009

By Andi Abdussalam

Jakarta, Dec 23 (ANTARA) - The growth of the industrial sector, like other sectors in Indonesia, will slow down amid the global economic crisis in 2009, with the manufacturing industry likely to be affected most.

        The ministry of Industry has predicted that the economic meltdown will badly hit non-oil/gas sectors. But it could not yet provide an exact estimate on the slowing down of the industrial growth in the country in 2009.

        "In the wake of the global economic crisis, we could not courageously provide an exact estimate yet on industrial growth next year. We could only give an estimate of 3.6 percent. If an optimistic figure is expected, we could put it at 4.6 percent," Secretary General of the Industry Ministry Agus Tjahajana said here on Tuesday.

        Hope has been pinned on the manufacturing sector. This sector is expected to contribute significantly to the industrial growth. In the manufacturing sector,a moderate growth at 7.7 percent, or optimistic one at 8.7 percent is expected to come from the transportation equipment industry, machinery and tools. Yet this sector is predicted to suffer a lot from the economic crunch next year.

        Finance Minister Sri Mulyani Indrawati said that the most affected sector next year by the current global economic crisis would be the manufacturing industry.

        "Industry which is predicted to suffer from the most negative impact of the global economic meltdown is the manufacturing sector," the minister said here on Tuesday.

        In the face of the bad conditions the government provides help for industries in order that they would be able to cut their production costs, particularly to prevent workers' layoffs.

        "The government has been doing this. It is trying to reduce industrial costs by, for example, lowering fuel oil prices. We hope that the move would reduce the cost structure of companies," she said.

        The gloomy economic outlook next year is also predicted to overshadow other industrial sectors such as the textile and textile product industry.

        Director General of Textile, Machinery, Metal and Multifarious Industries Ansari Bukhari said the growth of the textile and textile product industry would slow down in 2009.

        "The growth of textile and textile product industry will drop by about 10 to 20 percent," the director general said.

        The same thing will also happen to the steel industry. Most of steel producers will reduce their production. Owing to this fact, the drop in the steel industrial growth is estimated at 30 to 40 percent.

        "But we hope that this condition would not continue to prevail throughout 2009. So far the steel industry in the country has been facing raw materials problems. They purchased expensive raw materials for two or three month stocks. If this problem is overcome, I think their products would be able to compete again with those from other countries," he said.

        Bad conditions are also to be experienced by agro and chemical industries because it is predicted that investment in this sector will also fall as what has happened in 2008.

        Foreign investment in this sector was reduced by almost 50 percent in 2008 from Rp3.3 trillion in 2007 to Rp1.6 trillion this year.

        In the meantime, Director General for Telematics and Transportation Equipment Industry, Budi Dharmadi, expressed optimism for a possible growth in this sector. His optimism is based on the 2006 experience when automotive sales dropped but the industry was still able to grow by about seven percent.

        He said that his office would reinforce two aspects in the face of the global economic crisis next year, namely the financial and commercial aspects. Several principals of automotive and electronic companies are providing assistance in order to reduce distribution costs from the factories to the dealers.

        The optimism is also based on the government's policy to provide incentives, among others in the form of government-borne import duties, government-borne value added tax and deferred income tax.

        "I think there will shortly be companies which will enjoy income tax incentives," the director general said.

        In the automotive sector, according to Budi Dharmadi, the biggest growth contribution will come from cars, namely about 2.8 percent, electronics (2.13 percent) and motorcycles (1.7 percent.

        In the meantime, the property sector will also face a sluggish growth. According to property sector observer Panangian Simanungkalit, the industry's capitalization or sales value in 2009 was predicted to drop to Rp70 trillion.

        Simanungkalit, who is also director of the Indonesian Center for Property Studies, said in 2007 the industry's capitalization reached Rp83 trillion and it was predicted to reach Rp83 trillion in 2008.

        Rising interest rates and oversupplies are the causes of the drop in capitalization. "Because the reference rate remains high, banks have increased their credit interest rates, so that developers have put a brake on expansions," he said.

        He said properties priced below Rp500 million per unit would still grow. Their market was still wide and their prices were relatively low, he said. However, it would be difficult for properties priced above Rp1 billion per unit to grow because they were already in oversupply, he said. (A014/A/HNG/A/S012) 23-12-2008 22:06:59

GOVT TO CUT TRANSPORTATION FARES

By Andi Abdussalam

Jakarta, Dec. 22 (ANTARA) - Commuters and other public transportation users are likely to enjoy as a 'gift' a transportation fare cut at the end of this year, after the government announced on Sunday it was going to lower public transportation fares in the country by about 5.22 percent.

        Probably it is a small 'gift,' yet the fare cuts would at least reduce the burden of commuters and other public transportation users, particularly after transportation fares were raised by about 20 percent last June.

        "We have calculated that we can cut transportation fares by up to 5.22 percent," Transportation Minister Jusman Syafii Jamal said Sunday.

        The government's plan to lower public transportation fares follows its decision recently to cut fuel oil prices amid the steep fall of the world crude in the world market from US$147 a barrel in July to about US$40 per barrel this month.

        The government on Monday last week lowered the prices of premium gasoline from Rp5,500 per liter to Rp5,000 and diesel oil from Rp5,500 a liter to Rp4,800 per liter.

        The lowering of the premium gasoline price was taken for the second time this month. On December 1, it also cut gasoline price from Rp6,000 per liter to Rp5,500.

        As subsidized premium and diesel oil prices were lowered, calls for cuts in public transportation were also raised by the public.

        "Some administrations were quick to response to the fuel price cuts and have been calculating new transportation fares," Minister Jusman Syafii Jamal said.

        The minister, however, said that the regional administration would decide their own inter-city and inner city transportation fares. "West Java administration, for example, has proposed a 4 to 5 percent transportation cut. The new fares are waiting to be approved," he said.

        The cuts by an average of 5.22 percent in transportation fares are smaller than the average 20 percent increase (in Jakarta) last July. The increase by 20 percent was set by the Jakarta regional government based on suggestions made by the Jakarta Transportation Council and proposed to the city councilors.

        The transportation fares were increased in July in response to the government's decision to raise domestic fuel oil prices a month earlier.

        The government increased the prices of premium gasoline, diesel oil and kerosene by an average of 28.7 percent (respectively from Rp4,500 to Rp6,000 per liter, from Rp4,300 to Rp5,500 and from Rp2,000 to Rp2,500).

        As a result, the Organization of Land Transportation Owners (Organda) 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 at that time.

        As alternative, Organda also proposed a subsidy which was 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 tug-of-war between the government and Organda on transportation fare rates was ended with a decision to raise them by about 20 percent.

        The July tariff rates were fixed at Rp2,400 (students are to pay Rp700 only) for express buses and Rp2,280 for regular buses (students would pay only rp700) and Rp2,900 for small buses (minivans).

        Now that the fuel oil prices, including that of diesel oil which is used by many transportation vehicles, have been lowered, the government is also now planning to cut transportation fare rates.

        "The average rational cut is 5.22 percent," Transportation Minister Syafii Jamal said.

        He said that he had asked governors in the country to adjust transportation fare rates to the central government's decision in their respective regions.

        The minister said that one of the regional administrations which had been very quick in responding to the new policy was the West Java regional government. In the Bandung city, capital of West Java, transportation fares have been cut by about Rp500.

        The lowering of transportation fares in West Java was decided in a discussion that involved the Transportation Service Office of the Transportation Ministry, the Organda, the Indonesian Consumers Institute (YLKI) and the Regional Legislative Assembly (DPRD).

        "We have decided a cut by about 4-5 percent in public transpiration fares. The decision is now waiting for the endorsement of the West Java governor," Head of West Java Transportation Service Herli Suherli said.     (T.A014/A/A014/A/F001) 22-12-2008 13:23:02

HOUSE INITIATIVE TO END GOVT DUAL ROLE IN HAJJ BUSINESS

By Andi Abdussalam

Jakarta, Dec 17 (ANTARA) - Labeled as the worst-managed in Indonesia's history, this year's hajj pilgrimage has become the subject of a motion of at least 121 legislators for a parliamentary inquiry into the government's performance in organizing the annual activity.

        The lawmakers proposed on Tuesday the establishment of a hajj inquiry committee which is expected to issue a recommendation that the government should terminate its dual role of regulator as well as operator of hajj pilgrimages which cost over US$700 million per year.

        "We do not rule out the possibility that we will recommend the separation of the government's role as regulator from that as operator of the hajj pilgrimage," House of Representatives (DPR) Speaker Agung Laksono said here on Tuesday.

        The House Speaker made the remarks in response to a proposal submitted by 121 legislators to set up an inquiry committee over the government's organization of the hajj pilgrimage.

        He received the proposal for the inquiry at the DPR building on Tuesday. The proposal was submitted by the initiators, including Abdullah Azwar Anas of the National Awakening Party (PKB) faction and was supported by various political party factions in House such as the factions of Golkar, PKB, the United Development Party (PPP), the National Mandate Party (PAN), the Prosperous Justice Party (PKS), the Reforms Star Party (PBR) and the Indonesian Democratic Party of Struggle (PDI-P).

        Teams fielded by the Regional Representatives Council (DPD) have found weaknesses in the implementation of the hajj pilgrimage programs, describing it as the worst in the history of hajj management in Indonesia.

        "Our teams in Saudi Arabia and at home found that this year's hajj services were the worst one, particularly with regard to accommodations and transportation services," DPD deputy chairman Laode Ida said.

        He said that the location of Indonesian hajj pilgrims' housing accommodation was the farthest this year away from the Haram Mosque, even it is located some 18-19 km away.

        As a result of lack of transportation means that served the Jeddah-Madina-Makkah routes, Indonesian hajj pilgrims were compelled to go on foot. He said that the bad hajj pilgrimage management indicated the failure of the Ministry of Religious Affairs in providing appropriate hajj services.

        In order to overcome the problem, the chief organizer of Indonesian Hajj Pilgrimages (PPIH) in Saudi Arabia, Nur Samad Kamba, said the government should set certain service standards for the hajj pilgrimage program next year to serve as guidance for field officials in carrying out their tasks.

        Service standards are needed to handle the pilgrimage of over 200,000 hajj pilgrims every year.

        "Professional service standards had better be set so pilgrims who pay more will get more service as well. The standards should be set based on an agreement by all parties involved," he said in Jedda on Tuesday.

        He said that the service standards should be made based on professional service paradigm and should be contained in a government decision and working plan.

        Without professional standards, the services rendered by the government during the hajj pilgrimage this year have disappointed hajj pilgrims due to, among other things, delays, expensive airline tickets, inappropriate accommodations and transportation services in Saudi Arabia

        "This indicates that the ministry of religious affairs still applied the trial and error approach, while we should not do so in organizing a religious ritual," Laode said.

        The DPD therefore came up with the idea to propose the separation of the authority as regulator and as operator of the country's hajj pilgrimage services. With regard to this, it supported the proposal by 121 legislators for establishment of an inquiry committee over the organization of 2008 hajj pilgrimage services.

        "The DPD supports the establishment of an inquiry committee on the 2008 hajj pilgrimage services as proposed by several initiators such as Abdullah Azwar Anas of the House Commission VIII on religious affairs," Laode Ida said.

        The legislators have submitted a hajj inquiry committee establishment proposal in their efforts to find facts on the hajj management.

        "The House is trying its best to uncover problems faced in the execution of hajj pilgrim services and to encourage serious efforts to improve it, House Speaker Agung Laksono said.

        One of the improvements is the separation of the government role as regulator from that as operator, while the implementation of the services could be carried out by the private sector and regional governments.

        He said that the House might issue a recommendation to terminate the government's dual function of regulator as well as operator of the annual hajj pilgrimage. This caused efforts to improve hajj pilgrimage services to run very slowly.

        Laksono said the DPR leadership would take follow-up steps on the proposal. The legislators were of the view that the organization of this year's hajj pilgrimage was worse than last year.

        He said the number of legislators proposing the inquiry had exceeded the minimum required by regulations, namely at least 13 legislators from different factions.  (T.A014/A/HAJM/19:45/A014) 17-12-2008 19:48:20

PARTICIPATION IN POLLS IS A RIGHT OR OBLIGATION?

By Andi Abdussalam

Jakarta, Dec 14 (ANTARA) - Less than four months before the quinquennial legislative election is held in Indonesia on April 9, 2009, one of the issues that have surfaced in public discourses is the 'golput' (deliberate non-voters or an acronym for 'golongan putih'), a local term used to refer to a group of eligible voters who decide not to use their voting rights.

        Concerns on a possible increase in the number of 'golputs' have been raised in public debates of late, particularly following a call by a national figure on his sympathizers to stay away from the election.

        The call might not have a significant impact on the voters as a whole. Yet, as it was made by former president Abdurraman Wahid or Gus Dur, who is also former chairman of the largest Muslim organization Nahdatul Ulama (NU), it soon sparked controversies.

        "He should have not made the call. He is a statesman and should not voice anything not good for the nation," General Elections Commission (KPU) Chairman Abdul Hafiz Anshary said.

        Anshary is not alone in disagreeing with the former president's move. The General Chairman of the NU Executive Board Hasyim Muzadi has even stressed that NU members have the obligation to participate in elections.

        Last month, Gus Dur, who is chairman of the Legal Council of the National Awakening Party (PKB) called on PKB regional branches to boycott the legislative, regional representatives (DPD), and presidential elections next year.

        "We will boycott all the elections," Abdurrahman Wahid said.

        Gus Dur called for a boycott to show his discontent with the KPU which only recognized the PKB executive board under Muhaimin Iskandar while the one under his leadership was not registered as the legitimate PKB.

        The KPU recognized the leadership of Iskandar who had won a legal battle against Gus Dur in the leadership split case of the PKB.

        Gus Dur said he was optimistic that his calls would be followed by his supporters. "All of the 420 units of PKB that have the right to take part in the elections will boycott the polls," he said.

        However, KPU chairman Abdul Hafiz Anshary regretted the former president's call, saying the law required all components of the nation to support the implementation of the general elections. The elections would be carried out with the participation of the people.

        According to PBNU general chairman Muzadi, members of NU should not join the 'golput' groups of voters.

        "Casting a vote in the general elections is a process of building the state. In this context, it is obligatory for NU members to involve themselves in it," Muzadi said.

        Muzadi even referred to an NU forum held in Lombok to discuss the matter. In the runup to the general elections in 1997, NU through the Lombok Ulemas forum discussed the legal (religious) aspect of exercising a voting right in the elections.

        "Participation in elections is obligatory. However, NU will not prohibit its members from becoming a 'golput' because it concerns their own personal political interest," he said.

        What has been decided during the Lombok Ulemas forum might be a kind of edict, particularly for Muslim voters, issued to prevent them from boycotting the elections.

        According to the Chairman of the People's Consultative Assembly (MPR), Hidayat Nurwahid, edicts issued by religious organizations that ban people from joining the (golput) group are effective to increase people's participation in the polls.

        "There have been edicts on 'golput' issued by religious organizations such as the one by NU," Nurwahid told the press on Friday.

        Nurwahid, who is former president of the Prosperous Justice Party (PKS) said that such edicts were important to make the elections a success but suggested that people should adopt proportional attitude because there was also a national figure who had called on people not to use their voting rights.

        A high people's participation in the elections indicates that they have become more mature in exercising their democratic rights.

        Therefore, edicts that call on people to cast their votes are good for democracy. An edict is an effective means to prevent people from obeying a call for elections' boycott.

        House of Representatives (DPR) Speaker Agung Laksono, however, does not agree with the issuance of edicts which ban people from withholding their votes from the general elections.

        "I do not agree with the idea because the participation in an election is not an obligation. Our law does not require people to take part in a general election. So, I am just referring to the law. To my mind, it (the idea) is wrong because participating in an election is only a political right," Laksono said on Friday.

        He said the law did not require people to exercise their voting right. "So, what we can do is only giving abstainers good advice and suggestions," he added.

        Laksono said he was also against putting negative labels on people who refused to take part in elections, or who preferred to join 'golput' (abstainer) groups.

        He called on political parties and their leaders to conduct an introspection. "We had better not judge those who join the 'golput' groups. Maybe, it is the behavior of the political parties or their leaders that has to be improved," Laksono said.

        The same opinion is also expressed by Anas Urbaningrum, an executive chairman of the Democrat Party.

        "Edicts banning people from joining the 'golput' groups are not needed because casting a vote in an election is a right not an obligation," he said. "Abstaining from the election is a right, though it is not good for democray."  (T.A014/A/HNG/B003).14-12-2008 23:00:39

GOVT MOVING AT SNAIL'S PACE TO DECIDIE FUEL PRICES

By Andi Abdussalam

Jakarta, Dec 13 (ANTARA) - After sky-rocketing from US$120 a barrel in May to US$147 in July, the world crude price fell to about US$40 a barrel this month, leaving the government confused about how to readjust domestic oil prices.

        When the crude price in the world market hovered at US$120 a barrel in May, the government decided to raise fuel oil prices at home in order to keep its fuel oil subsidies down.

        After transportation and production costs as well as commodity prices had escalated because of domestic fuel oil price increases, the world crude price made a U-turn, while the government, amid mounting public clamor to respond to the downturn, is still moving at a snail's pace. Though it lowered the subsidized premium gasoline price early this month, yet many saw the reduction as insignificant.

        "The government is still waiting for stable trends in the world market to determine the economically realistic level of domestic fuel prices. As soon as we know the realistic level, we will announce it," Energy and Mineral Resources Minister Purnomo Yusgiantoro said here on Friday.

        Oil and Gas Director General Evita Legowo said meanwhile that the government was still studying the lowering of fuel oil prices but her office had found that the economically realistic price of diesel oil was still above the subsidized price of Rp5,500 per liter.

        Previously, based on the calculations of the energy and mineral resources ministry, the economic price of premium gasoline on December 1, was Rp4,800 per liter or below the subsidized price of Rp5,500 a liter.

        Calculations of the fuel oil prices for January 2009 would be based on the average price of oil prices and exchange rates from December 1 to 31, 2008.

        The world crude price has dropped by US$100 a barrel within a period of less than five months since it was recorded at US$147 per barrel in mid July 2008. The price now is about US$40 per barrel and showing a continuous downward trend.

        When the world crude oil price hovered at US$120 a barrel (increasing US$95 in January), the government decided in May 24, 2008 to raise fuel oil prices by an average 28.7, in order to withstand fuel oil subsidy which could reach Rp125 trillion.

        It raised 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.

        With the price increases, the government was expected to be able to save up to Rp25.877 trillion in fuel oil subsidy funds from the state budget.

        In the meantime, it also allocated Rp14,1 trillion for a cash transfer program for some 19,1 million low-income families across the country. The assistance was meant to protect the poor from the impact of the fuel price increase.

        Even though the government had raised fuel oil prices by an average of 28.7 percent in May, the world crude price continued to skyrocket until it reached its peak at US$147 a barrel in July that pushed up the amount of subsidy.

        According to Evita Legowo, the government has pushed up the amount of subsidy for fuel oils. The realization of subsidized budget up to October this year has reached Rp130 trillion, exceeding the subsidy target set at the 2008 revised budget at Rp126 trillion.

        Luckily, after reaching its peak in July, the world crude price began to decline.

        After all, bubble of financial crisis exploded in the United States. In October, crude prices dropped to US$90 a barrel following fear that the financial crisis in the United States would spread to other countries even though the US government had provided a US$700 bailout package for collapsed financial institutions.

        In that conditions, observers warned it may push down the crude prices to US$70 a barrel at the end of the year, cutting state revenues from oil by Rp30 trillion.

        On October 6, the price of 'light-sweet' oil in main contract trading in New York had fallen to US$87.81 per barrel for November shipment, and in London, the price of "Brent North Sea" dropped to US$83.68 per barrel.

        In line with declining prices of crude in the world market, pressures at home that the government should lower fuel oil prices mounted.

        Thus, the government on December 1, 2008 decided to cut the price of subsidized premium gasoline by Rp500 from Rp6,000 per liter effective December 1, 2008, but maintained the price of diesel oil at least until December 31.

        It has promised, however, to lower diesel oil price in January and considered cutting again that of premium gasoline. The rates have yet to be announced.

        "The government will review fuel oil prices each month," Energy and Mineral Resources Minister Purnomo Yusgiantoro said. (T.A014/A/HAJM/17:20/a014) 13-12-2008 17:20:55

DESPITE DEFICIT, RP45 TRILLION OF BUDGETS REMAIN UNSPENT

By Andi Abdussalam

Jakarta, Dec 12 (ANTARA) - The steep decline in the world crude price from US$147 a barrel in July 2008 to below US$50 in December has cut the state budget deficit from Rp94.3 trillion in the 2008 revised state budget to about Rp50 to Rp70 trillion.

        If only the government were able to predict the world crude price and calculate central and regional governments' expenditures realistically, it might not have to set a deficit in its 2008 budget.

        Approaching the year end, it turns out that about Rp45 trillion of the regional budgets for all regions in Indonesia remain unspent. This is regretted by Finance Minister Sri Mulyani Indrawati.

        "Many regions could not absorb the whole of their regional budgets (APBD) so that there are unspent budgets amounting to Rp45 trillion," the finance minister said when opening a "Fiscal Decentralization Policy 2008 Forum" at the Aston Atrium Hotel on Thursday.

        In the revised 2008 state budget, the government had set the budget deficit at 2.1 percent of GDP or Rp94.3 trillion with state expenditures estimated at Rp989.3 trillion and state revenues and grants at Rp895 trillion.

        The government estimates the deficit in the 2008 state budget will be lower than 1.9 percent of the country's gross domestic product (GDP) due in part to a recent drop in global crude prices.

        Virtually, with the crude price drop, the amount of deficit in the state budget for 2008 should have been very small. After all, unspent budgets (SILPA) amount to Rp45 trillion.

        Finance Minister Mulyani regretted the fact that the regional budgets were not absorbed maximally while there was a relatively big deficit in the state budget which reached Rp50 to Rp70 trillion.

        "The deficit means expenditures exceed revenues. Some of the budgets for expenditures were transferred to the regions so that we hope the regions will use them maximally," the minister said.

        Previously, the director general for financial balance of the Ministry of Finance, Mardiasmo estimated that the absorption of budgets transferred to the regions from the 2008 revised budget would reach 95 percent of the total funds of Rp292.4 trillion.

        "We hope that with 95 percent, the absorption this year will increase from that last year, because the funds for Aceh special autonomous region for example has spent 100 percent, and now we are waiting for a report from Papua province on its spending. In the meantime the public allocation funds (DAU) have also been absorbed 100 percent," he said.

        He said that the absorption realization of transferred funds to the regions up to December 9, 2008 had reached about 89 percent. The ceiling of transferred funds to the regions in the 2008 revised budget were recorded at Rp292.4 trillion, consisting of financial balance funds worth Rp278.44 trillion and special autonomous and adjustment funds amounting to Rp13.99 trillion.

        The financial balance funds consisted of Rp179.51 trillion in DAU, Rp77.73 trillion in profit-sharing funds (DBH) and Rp21.20 trillion in special allocation fund scheme (DAK).

        Mardiasmo said that the DAU funds had been distributed 100 percent to the regions, among others for the educational sector while the DBH funds were still waiting for disbursement.

        Although the amount of unspent regional budgets reaches Rp45 trillion this year, the government has no plan to cut its expenditures next year. After all, it is expected that the impact of global financial crisis will begin to be felt in 2009.

        "We are not going to cut the budget as we did last year. Cuts in spending will only be made as a last resort," the finance minister said.

        She said budget cuts or changing the budgets of ministries / government institutions and the regions would only disturb the absorption of budgets in general.

        "We fear that budget cuts will slow budget spending as has happened so far. So, unless absolutely necessary, we will not cut the budget," she added.

        The minister said that new and effective programs were really needed to prevent layoffs or to create new job opportunities for laid off or new workers whose number continued to increase annually by about two million.

        Mulyani said that the 2009 budget included various programs designed to anticipate layoffs, such as the smallholder's credit scheme (KUR) and the national program for people's empowerment (PNPM).

        "Workers' layoffs are likely to happen. So, we have included KUR and PNPM programs in the state budget. We hope it will at least help if layoffs take place or create new job opportunities," the minister said.

        She admitted that the inclusion of priority programs in the state budget for 2009 could cause a bigger deficit in the 2009 budget than those in 2008.

        Citing an example, the minister mentioned the deficit in the revised 2008 budget which was set at 2.1 percent of Gross Domestic Product but its realization was predicted to be one percent only.

        "From the receipt aspect, if the economic activities decline, the revenue target could also decline and thus it will automatically generate bigger deficit," she said.  (T.A014/A/HAJM/19:45/a014) 12-12-2008 19:55:24

INDONESIA SUCURES RP9.3 TRILLION CORRUPTED ASSETS

By Andi Abdussalam

Jakarta, Dec 10 (ANTARA) - Since it launched an anti-graft movement in 2004, the Indonesian government has succeeded in safeguarding at least Rp9.3 trillion in state money.

        Of the amount, about Rp5.4 trillion in the state assets have been recovered and have become legally binding based on court verdicts.

        The success to recover corrupted state assets follows the establishment of the Corruption Eradication Commission (KPK) in 2004.

        "Indonesia as a country ruled by law has placed itself in the forefront of the fight against corruption. On December 9, 2004, the government, through Presidential Instruction No 5/2004, ordered the entire United Indonesia cabinet to accelerate corruption eradication efforts," Attorney General Hendarman Supandji said on the occasion of the observance of the World Anti-Corruption Day on Tuesday.

        Then, in 2005, a corruption eradication coordination team was set up as a follow up to the issuance of Presidential Instruction No.5/2004. "Within a period of three years (2005-2007), the team was able to settle 280 corruption cases and recover a total of Rp3,95 trillion worth of state assets," he said.

        Meanwhile, President Susilo Bambang Yudhoyono, citing data from the Attorney General's Office, in the period 2004-November 2008, said that state assets and money saved from corruption cases totaled Rp859,762,538,773 through the Police, Rp8,001,138,805,489.17 through the prosecutor's offices, and Rp476,456,872,901 through the Corruption Eradication Commission.

        State money that has been recovered based on court verdicts that had become legally binding totals Rp4,927,277,318,110.39 from cases handled by public prosecutor's offices and Rp476,456,872,901 from cases solved by the KPK.

        According to the president, corruption in all its manifestations directly and indirectly harms the public interest and creates national problems that eventually damage the country's image.

        The government is very serious about eradicating corruption and this is why it has issued Presidential Instruction No 5/2004 on acceleration of corruption eradication.

        "By issuing the Presidential Instruction, we want to take concrete steps to fight corruption" President Yudhoyono said.

        The head of state said corruption was a bad practice because it caused national assets and money to go down the drain, whereas they could actually be used to make the people prosperous.

        Therefore, he called on law enforcers and other government authorities to watch eight government sectors prone to corruption and collusion. The eight sectors included the supply of goods and services, tax and excise, recruitment of civil servants and private employees.

        The government in its efforts to prevent corruption has also applied an internal supervision system at governmental departments. In order to intensify the supervision, the KPK, however, is proposing a change in the system.

        Corruption Eradication Commission chief Antasari Azhar said he was proposing to entrust supervision of government departments' or agencies' internal finances to personnel outside the departments or agencies concerned.

        "Such internal supervisory positions as inspector general, or units like regional supervisory boards (Bawasda), internal supervision teams should be filled by personnel who do not belong to the departments or agencies concerned," he said.

        The officials performing the departments' or agencies' internal supervision could be attached to a certain ministry to ensure more effective and objective supervision, he said

        "The change is necessary to avoid a kind of conflict of interest," Azhar told the press on the sidelines of a function to observe World Anti-Corruption Day.

        He said a successful supervision system was applied by China where supervision teams were grouped in a ministry like Indonesia's administrative reform ministry.

        Meanwhile, Administrative Reform Minister Taufik Effendi admitted on the same occasion that there were many constraints in supervision performed by people who belonged to the government department or agency involved. Such insiders usually were reluctant to carry out their supervisory functions objectively.

        In an effort to stay objective and help make the anti-graft drive a success, the governors of most of Indonesia's provinces pledged on Tuesday they would never commit any corruption. The written pledge was red by KPK Chairman Antasari Azhar.

        In the written pledge, the governors stated that corruption was an extraordinary crime that violates the people's rights and was damaging the life of and hurting the people.

        "Today, we, as representatives of the people of Indonesia, state we will never commit corruption," they said in their declaration.

        The participation of the public, particularly students, in supervising officials so that they would not commit corruption is also very important. In this case rector of Paramadina University Anies Baswedan Phd appealed to all universities in Indonesia to require their students to take a lecture on anti-corruption.

        "If only half of 4.1 million university students in Indonesia take an anti-corruption lecture I am convinced the rank of anti-corruption campaigners will increase significantly," he said in a statement.

        Anies said the optimism that the nation was able to fight corruption should be bequeathed to the younger generation.

        "Universities have a big role to play in developing this stance. We must not be influenced by the notion that corruption cannot be eradicated. That is not true," he said.  (T.A014/A/HNG/A/S012) 10-12-2008 22:28:19

BIZMEN URGED BANKS TO LOWER INTEREST RATES

By Andi Abdussalam

Jakarta, Dec 6 (ANTARA) - Business circles in the country now expect commercial banks to lower the interest rates on their credits in order to help stimulate the real sector.

        Businessmen voiced the expectation after Bank Indonesia (BI, the central bank) lowered its benchmark reference rate (locally known as BI Rate) by 25 basis points to 9.25 percent on Thursday, while commercial banks' interest rates still ranged at about 17 percent.

        "The lowering of the BI Rate should be responded to by banks by also reducing their interest rates and repositioning their tight liquidity," MS Hidayat, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said at the weekend.

        The cut in the BI Rate is a positive signal for businesses and banks that the central bank is now able to control inflation and the weakening of the rupiah against the US dollar.

        BI's board of governors decided on Thursday to lower the benchmark interest rate by 25 basis points to 9.25 percent.

        In order to stimulate the real sector, BI needs to continue to lower its rate by 25 basis points in stages until it reaches 8.5 percent in the first quarter of 2009.

        The next important step is that banks need to slacken the tightness of their liquidity. This is important because it will eventually induce the real sector to move.

        According to Bank BNI chief economist Toni Prasetiantono, a lowering of the central bank's benchmark rate will loosen up banks' liquidity and energize the real sector.

        "The lowering of Bank Indonesia (BI)'s benchmark rate by 25 basis points to 9.25 percent is a good step to stimulate the real sector," he said.

        He hoped that banks would also reduce their interest rates. "We hope they will cut their interest rates, though they need time before doing so for their debtors," he said.

        The prediction that the rate of banks' non-performing loans would go down was also expected to encourage banks to channel their funds to debtors.

        Based on BI data in September 2008, commercial banks' credit provision reached Rp1,246.15 trillion while at the same time they also collected third party funds amounting to Rp1,603.45 trillion.

        Loan to deposit ratio (LDR) reached 77.72 percent or it declined from 79.02 percent in August 2008. The percentage of non-performing loans reached 3.32 percent.

        Toni Prasetiantono said the fact that the inflation rate could be controlled had given the monetary authorities a chance to lower the BI Rate.

        "Bank Indonesia was of the view that inflationary pressures began to slow down as well. It was responsive enough to voices made by parties outside the bank, and this is an encouraging one," he said.

        The Central Bureau of Statistics (BPS) has announced that the on-month inflation in November 2008 was 0.12 percent. The November inflation was lower than that in October which stood at 0.45 percent.

        The January-November 2008 inflation was recorded at 11.10 percent while the year-on-year inflation (November 2007 - November 2008) inflation stood at 11.68 percent.

        Economic observer Edwin Sinaga, however, said the BI's move to lower its rate is unlikely capable of stimulating the real sector.

        "The real sector has not yet moved due to the fact that bank interest rates are still high, namely 17 percent," Edwion Sinaga, who is also president director of PT Finance Corpindo, said here on Friday.

        Sinaga said the BI Rate should all along have been lowered because the inflation rate had begun showing a downward trend followed by a decline in international commodity prices.

        But it was still difficult to stimulate the real sector with Thursday's cut in the BI Rate. Therefore, he said, the cut in the BI Rate was expected to be followed by adjustments in the interest rates of commercial banks.

        "The banks' interest rates at 17 percent is still considered high by the business world," he added.

        Other economic observer Muhaimin Iqbal concurred with Sinaga's view. "The BI Rate cut by 25 basis points is comparable to a piece of candy which offers sweet taste for a few minutes only," Iqbal said.

        He said that the BI Rate cut could only have small effect on both macro and micro economic development in the country. It would not directly improve the economy to a significant degree.

        "The main problem is that the value of the rupiah remains too low against the US dollar," he added.

        Therefore, according to Kadin chairman Hidayat, businesspeople are now not yet willing to make new investment but committed to continuing investment plans they had made previously.

        "Investments in the gas, oil and other energy sectors are likely to go ahead until the middle of 2009 in line with previously made plans," he said.

        He expressed hope that the government would soon realize its plan to provide stimuli for the development of the production sector.

        "The government has to realize its plan to release funds to stimulate the real sector and the initiation of infrastructure projects," he said. **(T.A014/A/HAJM/A/S012) 07-12-2008 00:41:33

GOVT EXPECTED TO CUT GASOLINE, DIESEL OIL IN JANUARY

By Andi Abdussalam

Jakarta, Dec 6 (ANTARA) - Amid calls for domestic fuel oil price cuts, the government is now considering the lowering next month of diesel oil and premium gasoline prices as part of its efforts to alleviate the people's burden and to stimulate the economy.

        "We are still conducting an 'exercise' and making calculations to see if it is possible to again lower the price of premium or even diesel oil to reduce the industry's burden," President Susilo Bambang Yudhoyono said over the weekend.

        The government cut subsidized premium gasoline by Rp500 to Rp5,500 per liter on December 1, and announced it was considering also to lower in January the price of diesel oil which was much consumed by industries and fishermen.

        President Yudhoyono said after a meeting to evaluate the performance of the people's business credit scheme (KUR) at the Bank Rakyat Indonesia (BRI) building here on Friday that the finance minister, along with other ministers concerned was now making the calculations for a further reduction in the premium gasoline price.

        Last Monday, the president said the government's intention to consider the possibility of lowering the diesel oil price was part of its efforts to alleviate the people's economic burden. "But the government must also take into account the state's financial capability," he added.

        The government last month decided to cut the price of subsidized premium gasoline by Rp500 from Rp6,000 per liter effective December 1, 2008, but maintained the price of diesel oil.

        House of Representatives (DPR) Speaker Agung Laksono when opening the House's Second Sitting last November 24, 2008, called on the government to consider lowering the price of diesel oil.

        The House leader said the government's decision to lower the price of subsidized premium gasoline by Rp500 was a positive step but urged a recalculation of the Rp500 cut in the premium gasoline price because the world oil price was continuing to drop.

        According to legislator Alvin Lie, the government should further lower the price of subsidized premium gasoline in January 2009 in accordance with the decline in the world crude price.

        "With the world crude price at a range of about US$40 per barrel, the domestic price of subsidized premium gasoline should be lowered again next month," Alvin Lie of the House of Representatives (DPR)'s Commission VII (energy affairs), said.

        He said the world crude price was now back to its level in the middle of 2005. "If the present price of crude holds or even drops further, the premium gasoline price at home could be returned to the level set before the October 2005 price hike," he added.

        In response to calls by the House and the public, the government at the weekend said it was considering lowering the price of premium gasoline again, but added calculations should be made first.

        According to the president, the government's move followed the continuing decline in the price of the world's crude oil. On December 4, 2008 the world's crude oil price was recorded at below US$44 per barrel.

        The price of crude oil continued to decrease in the past four days in reaction to worsening global economic conditions and lower oil demand.

        When announcing the decision to cut the price of gasoline by Rp500 effective on December 1, 2008 Finance Minister Sri Mulyani said the government would review its decision on the price of fuel oils every month to see if it was in line with developments in the world crude price.

        Besides the price of premium gasoline, the government is also considering cutting the price of diesel oil. Energy and Mineral Resources Minister Purnomo Yusgiantoro said the government was studying the possibility of lowering the domestic diesel oil price.

        According to House Speaker Agung Laksono, a cut in the diesel oil price would be good for low-income people and support their economic activities because diesel oil was widely used in public transportation and by fishermen.

        Yet, the government had not fixed the amount of the reduction.

        "To fix the amount of the reduction, the government will adjust it with the Indonesian Crude Price (ICP), the rate of exchange and tax component namely value added tax (PPN) and motor vehicles oil tax (PBBKB)," Minister Yusgiantoro said.

        "We are not saying the diesel oil price will be reduced by Rp500-Rp1,000 per liter but we have to see if the price cut can be bigger. Anyway, there will be no problem if it is either smaller or bigger," he said.

        The government would continue to evaluate the prices of premium gasoline, diesel oil, and kerosene. The premium gasoline price was reduced on December 1 from Rp6,000 to Rp5,500 per liter, but the diesel oil price is still being evaluated.

        Last May, the government raised the premium gasoline price from Rp4,500 to Rp6,000 per liter but starting from December 1, 2008 it was reduced from Rp6,000 to Rp5,500 per liter.

        A number or parties have said the cut in the premium gasoline price should be immediately followed by a diesel oil price cut on January 1, 2009 by around Rp500 or Rp300 per liter.

        Following the Rp500 cut in the premium gasoline price on Monday, December 1, the Down-stream Oil and Gas Regulating Body (BPH Migas) predicted subsidized premium gasoline consumption in the country would increase by about 1-5 percent. (T.A014/A/HAJM/A/S012) 06-12-2008 22:30:40