INDONESIA ALERTED IN FACE OF POSSIBLE SWINE FLU EPIDEMIC

By Andi Abdussalam

Jakarta, April 28 (ANTARA) - As suspected swine flu cases have reached Australia and New Zealand while at least 100 human deaths have been reported in North America, Indonesia is now alerting its citizens and taking the necessary steps to prevent the spread of the disease in the country.

         In Jakarta, Secretary-General of ASEAN Surin Pitsuwan has directed his officials to convene the ASEAN Secretariat Working Group to monitor and assess the current situation and plan immediate actions.

         The ASEAN Secretariat will closely monitor the situation and work closely with the ASEAN Member States and partner organizations to take appropriate measures including the effective sharing of information and strengthening of cross border collaboration.

         Following the World Health Organization (WHO)'s declaration of the swine influenza outbreak as a public health emergency of international concern (PHIC), President Susilo Bambang Yudhoyono called for swift and correct measures to deal with its potential spread.

         As preventive measures, Indonesia temporarily stops importing pigs and installed swine flu surveillance devices in ten entry points of airports and seaports. "We must take  swift and correct actions. We must really start to do everything  necessary, including controlling and checking planes from the US and Mexico as well as other countries that have been contaminated by the disease," President Yudhoyono told an unscheduled limited cabinet meeting on Monday.

         All ministries are alerted and called on not to treat the matter lightly although it has not yet spread to Asia. The health minister must take anticipatory measures so that the people are prepared in case the disease spread to the country.

         Coordinating Minister for People Welfare has said the government is prepared to anticipate the disease through simulations that have been carried out when dealing with bird flu. As the death rate in bird flu cases was higher than in swine flu cases he said simulations for dealing with bird flu were considered sufficient.

         According to the WHO, the H1N1 swine virus can spread fast. But the moves to prevent its spread must not be overdone  so as not to  cause panic. "We do it as usual but everyone must be prepared," President Yudhoyono said.

         Health Minister Siti Fadilah Supari meanwhile called on the people to remain calm. "The swine influenza which is caused by the H1N1 virus in those countries occurs in the fall and winter but not in the summer. In Indonesia it is hot all the time and therefore we hope  an epidemic will not happen in our country," she said.

        Although no swine flu case has so far been  reported in Indonesia, the government has an adequate capacity to anticipate it. Since the outbreak of bird flu in Indonesia in 2005, the government has made every possible effort to anticipate it and to prevent it from spreading nationwide.

        After all, the government has prepared various supporting facilities including public health clinics, hospitals, laboratories, influenza surveillance networks, communication networks among related parties, and training for hospital staff  and volunteers.

         "We are considered to have made progress in bird flu management, and we have conducted bird-flu handling simulations several times. And our ability to manage bird flu epidemics can also be used to anticipate the spread of other diseases such as swine flu," Aburizal Bakrie said meanwhile.

         The other effort made by the Indonesian government is intensifying surveillance in pig farming center regions. Bakrie said that actually, this disease exists in Indonesia but does not attack human victims.

         "In spite of this fact, preventive steps needs to be taken. Regions with high pig population will continue to be monitored. Monitoring will be carried out on Pigs or human," Bakrie said.

         Intensive surveillance on the wine flue in pig farming regions will be carried out by reactivating the existing monitoring means in bird flu bases.

         "Intensive surveillance will be carried out on pig farming centers, whose number I think is small. We will reactivate 84 sentinels now already available to handle the matter so that they would send us data," Health Minister Siti Fadilah Supari said.

         She said that the government would provide the needed equipment and resources for sentinels at hospitals in order to increase alertness over the possible spread of swine flue virus which in North America had mutated and could fast spread from human to human.

         In the meantime, Director General for Disease Control of the Ministry of Health, Tjandra Yoga Aditama said that experts had detected the presence of a virus strain of type A flu, sub-type of H1N1 virus, which infected human and pigs.

        "The H1NI virus causes common flu. But because the strain of the H1N1 virus which spread in Mexico is different from the strain of common H1N1 virus which infected humans and pigs, it spread fast and is expected to have mutated,"  Aditama said. (T.A014/A/H-NG/f001) 28-04-2009 10:43:36

GOVT ADVISED TO ACQUIRE OVER 20 PCT OF NEWMONT STAKES

By Andi Abdussalam

Jakarta, April 27 (ANTARA) - The Indonesian government on Monday was urged to acquire over 20 percent stakes in PT Newmont Nusa Tenggara (NNT), or more than the mandatory 17 percent ruled by an international arbitration court last month.

        "The government should acquire more than 20 percent of the shares because if it buys less than 20 percent it would only be able to place one representative in the board of commissioners so that its supervisory power would be weak," Muhammad Said Didu, secretary of the Ministry of State Enterprises (BUMN) said here on Monday.

        The Indonesian government and NNT, the local unit of giant Newmont Mining Corp., are currently negotiating the divestment of 17 percent of its shares based on the decision of the international arbitration court on March 31, 2009.

        Based on a 1986 contract, the company is required to gradually sell a total of 31 percent of its stake to the government or local parties it appoints. The law requires a foreign company in the mining sector to transfer 51 percent of its shares to the government or local companies after five years of its commercial operation.

But since PT Pukuafu Indah, a local company, has owned 20 stake in it, NNT is required to divest only 31 percent.

        The Indonesian government and NNT, which operates the Batu Hijau mine, Indonesia's second-largest copper mine, located in Nusa Tenggara, have gone through the international arbitration procedure following a dispute on how to implement the divestment scheme.

        The court ruled Newmont must sell a mandatory 17 percent stake in PT Newmont Nusa Tenggara (NTT) to the government within 180 days.

        The 17 percent consisted of three percent shares in 2006, seven percent stake in 2007 and seven percent in 2008.

        According to Siad Didu, the government purchase of NNT shares should not be limited to 17 percent based on the decision of the international arbitration as it would only weaken the government position in the board of commissioners.

        The government should look at the NNT divestment comprehensively, and adjust it to the coal and mineral resources law where state companies should get priorities in the exploitation of mining resources in Indonesia.

        As regards, a scenario should be set which enables the government or a state-owned company to acquire the stake not partially but in a comprehensive scale with a look for a long term mining exploitation.

        In order to implement the divestment, the government has set up a team in charge of calculating NNT's share values. Earlier reports said that the mandatory 17 percent shares consisted of three percent stake in 2006 valued at US$109 million with assets worth US$3.63 billion.

        The remaining 14 percent included seven percent stake in 2007 worth US$282 million with assets accounting for US$4.03 billion and seven percent in 2008 valued at US$426 million with assets accounting for US$6.09 billion.

        In the meantime, foreign stakeholders in NNT have claimed the company has assets worth a total of US$4.9 billion.

        Mineral, Coal and Geothermal Affairs Director General Bambang Setiawan said after a meeting with the NNT management at his office the government would carry out a verification of the value of the company's assets as claimed by its foreign shareholders.

        With assets worth US$4.9 billion, the price of seven percent of the stake in the divestment of the firm in 2009 would reach US$348 million, he said.

        NNT president director Martiono Hadianto was reluctant to comment on the price of his firm's assets mentioned by Setiawan. Martiono said price calculation should not be based merely on the present assumption but also that of the future projection. Apart from commodity prices, other assumptions such as inflation and cost factors should also be taken into account.

        Mining observer Pri Agung Rakhamanto said the claim saying the value of PT Newmont Nusa Tenggara (NNT)'s assets reached US$4.9 billion was too high.

        "The value of NNT assets is not that high," Rakhmanto who is also executive director of ReforMiner Institute, said here on Monday.

        He said that based on the annual report of NNT in 2008, the value of total assets of Newmont Mining Corporation (NMC) --the holding company of NNT-- was only US$15.839 billion. The value of NMC's assets in Indonesia, including that of NNT and PT Newmont Minahasa Raya (NMR), is about 17 percent (of the US$15.839 billion).

        "With that reference, the combined value of NNT and NMR's assets is only about US$2.693 billion," Rakhmanto said. Thus, it is possible for the government to negotiate the divestment price of NNT stake for 2006 and 2007 because the agreement already reached has not yet been executed.

        Minister for State Enterprises (BUMN) Sofyan Djalil said he would meet with Energy and Mineral Resources (ESDM) Minister Purnomo Yusgiantoro to discuss further the divestment of NNT.

        "We will hold a technical team first with the ESDM ministry and we hoped that there would be options to be recommended by the meeting. We will study whether a state company would be required to acquire the firm or the government would directly purchase it," he said.

        Actually, there had been a state company which is ready to purchase the mining firm. The BUMN ministry, he said, is also studying the possibility of forming a consortium which would involve the local government in the mechanism of acquiring the NNT stake.***2*** (T.A014/A/HAJM/A/S012) 22:00/... ) (T.A014/A/A014/A/S012) 27-04-2009 22:20:23

YUDHOYONO MIGHT PICK PROFESSIONAL AS HIS RUNNING MATE

By Andi Abdussalam

akarta, April 24 (ANTARA) - Not willing to worsen the internal rifts within political parties, Democratic Party presidential hopeful Susilo Bambang Yudhoyono is likely to pick his running mate for the upcoming July 8 presidential elections himself from the professional circles, political analysts say.

        "Yudhoyono is a very careful person who would avoid conflict with other parties and is very rational in taking decisions," Director of the Nusantara Survey and Research Institute (Laksnu) Gugus Joko Waskito said here on Friday.

        The Democratic Party, which is almost certain to become the winner of the recent legislative elections with a voter turnout of about 20 percent, has not yet decided on its vice presidential candidate which would team up with Yudhoyono in the presidential elections.

        A number of political parties such as Golkar, the Prosperous Justice Party (PKS), the National Awakening Party (PKB), the National Mandate Party (PAN) and the United Development Party (PPP) have been vying for the vice presidential candidate post in a coalition with PD.

        While political communications were being built, Golkar on Wednesday decided to terminate its talks on coalition with PD and nominated its general chairman as its presidential condidate.

        The decision was taken amid rising aspirations with Golkar regional branches in the district level that Golkar should remain with PD and nominate its former chairman Akbar Tanjung as vice presidential candidate to pair up with Yudhoyono.

        In the meantime, rifts among cadres also hit political parties eying a coalition with PD. In this condition, Yudhoyono is likely to team up with a non-political party figure. This is to avoid creating further dissension among the political parties.

        "The chances for political party figures to be picked up by Yudhoyono as his running mate is therefore rather small. After all the incumbent president has set five criteria for his would-be vice presidential candidate," Henry Subiakto, political communications expert of the University of Airlangga said.

        The likelihood of Yudhoyono to pick non political party figure was also voiced by Hayono Isman, a member of PD's advisory council. He said Yudhoyono does not want to let internal rifts develop within Golkar because it would only harm common interest.

        Therefore, speculations that Yudhoyono would team up with Akbar Tanjung or with PAN cadre Hatta Radjasa are unlikely to happen because he is unwilling to create conflicts between his party and Golkar or with PD and PAN.

        Hayono Isman said the dynamism in the political parties can change any time and any mistake made in managing it could create undesired and unnecessary complications.

        "We all do not want to let internal rifts develop within Golkar because it would only harm our common interest," he said.

        In PAN there are two camps of difference aspirations between former PAN chairman Amien Rais and incumbent PAN chairman Sutrisno Bachir, according to Waskito, Thus, Yudhoyono is also unlikely to team up with a cadre from the PKS and PKB.

        "If SBY teams up with a cadre from a political party in a coalition with PD, it would create troubles," Wakito said. After all, PKB was no longer solid while PKS seemingly is not yet ready to place its cadres in the presidential or vice presidential positions.

        "PKS would prefer to be given bigger number of cabinet seats because its cadres are not yet ready for the presidential or vice presidential positions," he said.

        According to political scientist Henry Subiakto, Yudhoyono is likely to choose would-be vice presidential candidates from professionals. One of the criteria he mentioned was loyalty, which is something difficult for political parties to meet.

        A political party leader has the interest to nurture his/her party in the coalition, while in fact Yudhoyono needs a running mate who is able to help nurture the PD.

        Therefore, the most likely figure to accompany Yudhoyono is the one who comes from the professionals, particularly from a mass-based organization, Henry said.

        After all, figures from the professional circle could be widely accepted by the pubic at large. Among the five criteria set by Yudhoyono is a figure who is widely acceptable.

        He said that figures from the professional circle had no interest with political parties or certain political groups. Besides, loyalty and public acceptability, the other criteria are integrity, capability and affectivity.

        On speculations about the possibility of Yudhoyono to pick Akbar Tanjung, Henry said that the incumbent president had said he would not take a running mate from Golkar.

        Earlier, Hayono Isman said that the Democratic Party will not take a cadre from the Golkar Party to be the running mate of its presidential candidate unless the cadre is proposed through a party mechanism.

        Hayono Isman said that Yudhoyono had made it clear that especially for cadre from Golkar Party it must come from the party's mechanism. It must never come from outside the mechanism to avoid possible political complications.

        "I cannot say who will be picked as the vice presidential candidate for the Democratic Party. Yudhoyono is still studying developments affecting the other political parties," he said***1*** (A014/A/H-NG/B003). (T.A014/A/A014/B003) 25-04-2009 00:46:29

GOLKAR STOPS COALITION TALKS WITH DEMOCRATIC PARTY

By Andi Abdusslam

Jakarta, April 22 (ANTARA) - The central board of Golkar decided on Wednesday to terminate its political talks with the Democratic Party (PD) after they failed to reach an accord on how to form a coalition in the face of the upcoming July 9 presidential elections.

        The decision, which was announced by Golkar Party Secretary General Sumarsono, came up only one day before the former New Order government's political machine holds a special national leadership meeting.

        The special leadership meeting is expected to discuss options whether Golkar is to propose one or more names to pair up with PD presidential hopeful Susilo Bambang Yudhoyono (SBY), or to name its own presidential candidate or to coalesce with other political parties.

        So far, the mainstream in the Golkar Party's central board is willing to coalesce with Yudhoyono's Democratic Party while some regional branch executives and certain senior cadres voiced aspirations that Golkar should nominate its own presidential hopeful.

        Surprisingly, however, the central executive board announced on Wednesday its decision --though it will still be discussed further in the special leadership meeting-- to stop its coalition deals with the PD. It said that its recent political communications with the PD had failed to yield any accord towards a coalition.

        "After a week of intensive political communications on continuing the SBY-JK (Jusuf Kalla) government between Golkar and PD, the two parties have not been able to find a meeting point to from a coalition," Golkar Secretary General Sumarsono said here on Wednesday.

        However, the Democratic Party is of the view that the Golkar decision is unilateral as talks on coalition were still proceeding.

        "What we have not agreed on yet is the number of Golkar's vice presidential candidates." Democratic Party associate chairman Anas Urbaningrum said.

        Due to the failure of the two parties to find a meeting point to form a coalition, the Golkar central executive board gave the mandate to its chairman Jusuf Kalla to open new political communications with other political parties.

        "The central executive board has given the party chairman the mandate to open political communications with other parties on building a strong and effective government," Soemarsono said.

        The decision of the central executive board gave Jusuf Kalla a chance to continue Golkar's talks with the Indonesian Democratic Party of Struggle (PDIP) and other parties other than the Democratic Party.

        PDIP in the meantime has expressed its readiness to build new political communications with Golkar. Even the PDI secretary general admitted his party had been in communications with Golkar since Wednesday morning (before Golkar held executive board meeting).

        "We will continue our political communications with Golkar," PDIP Secretary General Pramono Anung said at the residence of PDIP leader Megawati Soekarnoputri at Jl Teuku Umar.

        Thus, a meeting between Jusuf Kalla and Megawati is likely to be held soon. The two have met sometime before the April 9 legislative elections where both leaders shared the view to establish a strong government.

        According to Pramono Anung, the meeting between the two leaders is now being arranged but he ruled out a meeting on Wednesday. "We will not be too reactive," he said.

        He said his party was willing to build further communications with Golkar. PDIP appreciated the decision taken by Golkar. But PDIP would still wait for the results of Golkar's special national leadership meeting on Thursday.

        Anung admitted he had communicated with Golkar since early on Wednesday. "We have continued to communicate with friends in Golkar since this morning," he added.

        The same thing was also expressed by Effendi Simbolon of the PDIP faction in the House of Representatives (DPR). "I think PDIP has expressed its readiness to coalesce with Golkar since the beginning. Kalla and Megawati have even met before," he said in a dialog with MetroTV.

        Political analyst Bima Arya Sugiarto said meanwhile that the results of Golkar's special leadership meeting still has to be seen on Thursday. "I think the national leadership meeting will confirmed the executive board decision and offered several options," Bima told MetroTV.

        He however warned that it would be a disaster for Golkar if its leadership meeting decided to propose JK to be Megawati's running mate while the PDIP leader turned out to reject the Golkar offer.

        In this case, Golkar senior cadre Sarwono Kusumaatmadja said that Golkar should not waver. He said that the Golkar Party should have no doubts in taking a political decision and should not merely think of having power, Sarwono who is also a former Golkar secretary general said.

        "If need be, Golkar should become an opposition party," Sarwono said. He said political parties in Indonesia generally thought how to have power in the government. While in fact, becoming an opposition was no less respectable.

        Therefore, Sarwono said, Golkar must have the courage to take risks. "If need be, Golkar has to become an opposition and in the coming five years it should carry out improvement and develop their cadres," he said.

        While the presidential election is still about two months away there is still a chance for Golkar to make choices. "These are political choices and I think all political parties have their own respective considerations that need to be heeded without necessarily losing their mutual respect," Golkar Party associate chairman Priyo Budi Santoso said.

        He said that Golkar opened doors to coalesce with any party. It has not even closed its doors to a resumption of coalition talks with the Democratic Party.

        "I would say Golkar has not closed its doors. This is politics in which one can change one's mind any day, any hour or any minute. Who knows there will be another signal from Cikeas," Priyo said referring to President Yudhohono's residence.***1*** (T.014/A/HAJM/21:20/a014)

        (T.A014/A/A014/A/A014) 22-04-2009 22:01:16

TENS OF INDONESIAN BANKS IN RISKY CONDITION

By Andi Abdussalam

Jakarta, April 21 (ANTARA) - Following last week's liquidation of IFI bank by Bank Indonesia (BI), economists warned on Tuesday of risky conditions of about 40 to 50 small banks in the country, advising the central bank that it should ask them to merge.

        Of the 130 banks in Indonesia, only about 15 large banks have good levels of capital adequacy ratio (CAR), non-performing loan (NPL) and deposit ratios. The 15 large banks control about 70 percent of overall bank assets.

        "Only 15 large banks have good ratio levels because they control 70 percent of the assets while about 40 to 50 small banks are, I think, in risky conditions," Economist of the Institute for Development of Economics and Finance (Indef) Aviliani said on Tuesday.

        After all, banks are now called on to cut their lending rates following BI (the central bank)'s aggressive step to lower its benchmark rate. The lowering of the lending interest rates would force them to also cut the interest rates of their deposit. Thus, small banks could run short of liquidity as depositors would withdraw their funds.

        According to Bank Mandiri director for micro and retail banking affairs Budi Gunadi Sadikin the interest rates tend to go down now despite the fact that banks' NPL had the potential to increase. This is because banks are expected to cut the interests of their third party funds (saving, deposit and demand deposit).

        Aviliani said that small banks were now facing problem with the public confidence where customers were reluctant to place their funds at small banks. About six percent of small bank customers left their banks to more reliable banks.

        With the liquidation case of Bank IFI, BI must forces small banks to merge. Because if small banks go bankrupt one by one it would pose a difficulty on the Deposit Insurance Corporation (LPS).

        Bank Indonesia on Friday last week announced the liquidation of Bank IFI due to the problems the bank faced with its capital adequacy ratio which was below eight percent and NPL which reached 24 percent. Bank IFI actually has been put under special supervision since last September.

        "Based on the decision of Bank Indonesia governor, Bank Indonesia revoked Bank IFI's license," Bank Indonesia's head of financial system stability, Wimboh Santoso, said.

        He said the liquidation of the bank would not disturb bank conditions in general because it would not have a systemic effect. He said the bank's total assets were recorded at only Rp440 billion or 0.01 percent of the total assets of banking industry.

        In general, based on indicators at Bank Indonesia, the conditions of national banks, are actually still good. "The average rate of banks' CAR, NPL and deposit ratios is still above BI's indicators," Aviliani said.

        But the good ratio performance does not happen evenly on every banks but only on about 15 large banks of the 130 banks in the country, Aviliani said. Further more, small banks are facing a lack of public confidence.

        This condition would force small banks to even raise their interest rates to increase their liquidity. Economic observer Tony A Prasetyantono said that Bank Indonesia must continue to be alert with regard to current tight liquidity situation especially on small banks because it would be the small banks that would fall victims to the situation.

        He said small banks would have difficulties seeking funds particularly from the third party to meet their liquidity.

        "They will be the ones to suffer in the current situation. Big banks would survive because they are more trusted and have capacity to pay a high deposit interest. Small banks cannot do it," he said.

        For this purpose, Aviliani suggested that BI should urge small banks to merge soon or offered acquisition so that they would not cause concern for banks' customers.

        BI should also set a deadline for small banks to carry out the merger or acquisition after which it could be liquidated. Bank IFI is a case in point. "As far as I know Bank IFI has been bought by other company but because no agreement is reached yet on its price it is eventually liquidated," Aviliani said.

        In the meantime, Bank Mandiri's chief Economist Mirza Adityaswara has other opinion, saying that the banking condition in the country is now improving.

        He said that banks in Indonesia had passed the critical stage in the September - October 2008 period, or in the fourth quarter of that year. The improving bank condition could be observed from the fact that banks have begun to lower their interest rates.

        On the hand, the banking funds invested in Bank Indonesia's certificates (SBI) have up to April 1, 2009 reached Rp233 trillion, Adityaswara said.

        "This indicates that banks are carrying out the banking prudence principles while on the other hand shows that banks liquidity is improving," he said.

        He said that the improving of bank conditions was also reflected in the absence of negative impact created following the liquidation of Bank IFI. "If the bank was liquidated in the fourth quarter last year, it could have caused panic. But the liquidation last week did not cause a rush, meaning that banks are now in stable condition and public confidence is high enough," Adityaswara said. ***2*** (T.A014/A/HAJM/23:40/H-YH) (T.A014/A/A014/A/H-YH) 21-04-2009 23:53:35

GOLKAR URGED TO PROPOSE MORE THAN ONE NAME TO

By Andi Abdussalam

 

Jakarta, April 19 (ANTARA) - A number of cadres are calling on Golkar that the political party should propose more than one name as Susilo Bambang Yudhoyono (SBY)'s running mate for the July's presidential race.

        The aspirations have arisen in the runup to Golkar's Special National Leadership Meeting next Thursday where it is expected to decide whether it will coalesce with Yudhoyono's Democratic Party, or will nominate its own presidential candidate.

        However the main stream in the Golkar Party is for coalescing again with the Democratic Party although there are also elements that want Golkar to nominate its own presidential candidate.

        Golkar Party Associate Chairman Priyo Budi Santoso said his party was willing to coalesce with the Democratic Party for a wider interest, namely to build and reinforce the presidential system so that it would be effective and stable in serving the people.

        If in the meeting coalition with the Democratic Party is the best option, then Golkar has to decide whether it will propose one or more names to SBY. So far, the incumbent Golkar chairman is still widely tipped as the best candidate by cadres within the Golkar elite.

        However, aspirations are also arising that Golkar should propose more than one name. "Therefore, it should be decided in the special leadership meeting. This is a realistic consideration for national interest," Priyo said adding that at the moment Golkar Chairman Jusuf Kalla was still the most favorite candidate along with other Golkar cadres.

        Former Golkar chairman Akbar Tanjung said meanwhile it would be unethical for the party to propose only one name as SBY's running mate.

        "It is better for Golkar to give more than one name so that SBY can choose one of them according to his vision and mission," Tanjung said after a coordination meeting of "Barisan Indonesia" of Kalimantan, Sulawesi, Maluku and Papua in South Sulawesi over the weekend.

        He said the candidates could be taken from the names that the party's recent national consultation meeting had recommended, namely Akbar Tanjung, Jusuf Kalla, Agung Laksono, Aburizal Bakrie and Surya Paloh.

        Golkar Party executive Marzuki Darusman even said the party had prepared five candidates for consideration by SBY as his running mate. Darusman mentioned Jusuf Kalla, Akbar Tanjung, Surya Paloh, Agung Laksono and Sultan Hamengku Buwono X. "They are the names we are going to offer to SBY if a coalition with the Democratic Party is agreed on at the party's national leadership meeting on April 23 and if it is welcomed by SBY," he said. He did mention Aburizal Bakrie, however.

        Marzuki said the names of the five figures came up out of the party's internal need. After all, fundamental changes had also happened in the political dynamics after the recent elections while Jusuf Kalla was no longer in a strong position to represent Golkar.

        Golkar is now weighing if it will only seek the vice presidential position after the party was defeated by Yudhoyono's Democratic Party in the recent legislative elections as shown by the provisional vote counts.

        According to Golkar General chairman Jusuf Kalla, with only around 14 percent of votes collected it was impossible for the party to name a candidate for the presidential election later in July.

        "With its vote collection of only around 14 percent naming a presidential candidate will be impossible because the votes may not win up to 20 percent of parliamentary seats (needed to be able to name an own candidate)," he said.

        In the wake of the decline in Golkar's voter turnout, Akbar Tanjung suggested that Golkar should improve its internal relations.

        He saw that a slump in the party's vote tally compared to that in the 2004 general election has gained increased attention from the party's cadres in the party's regional and central chapters.

        The Golkar party should be able to produce qualified cadres, so that there will be a system linking the achievement, dedication, loyalty and better image," he said.

        "Golkar should be responsive to the aspirations of the people, so that the basis of Golkar masses will not turn to other political parties," Akbar Tanjung said.

        On the occasion, the former Golkar general chairman expressed readiness to become the running mate of Yudhoyono. "I am ready to team up with Yudhoyono, if Golkar party wants me to run for that post in the party's special national leadership meeting," he said.

        As to Tanjung's readiness to be nominated, Marzuki Darusman said the presence of Akbar Tanjung as a vice presidential nominee would not cause a problem within the party, adding that the main internal problem of the party now was pros and cons on Jusuf Kalla's nomination.

        "Resistance against Akbar Tanjung exists only within the party's executive board while in the regions he has wide support," he said.

        He said this was what the party executive board had so far covered up. Therefore, he said, he now wished to unveil it and by doing so "we are being fair towards the Democratic Party and also toward SBY so that they can accept the condition in Golkar as it is now," he said.

        After all, Golkar has not received a definite signal that SBY agreed with the party's vice presidential nominee. Kalla only told Golkar ranks that there had been two agreements with Yodhoyono, namely cooperation in the parliament and in the cabinet. Moreover, Yudhoyono himself, after a meeting with Kalla recently, said there was nothing special in his meeting with Kalla.

        The absence of definite signal from Yudhoyono prompted another Golkar senior cadre Siswono Yudhohusodo to suggest that Golkar should not propose any cadre for Yudhoyono. He said that if Golkar proposed a name but turned to be rejected it would bring shame to the party.

        "There is no need for Golkar to propose a name for Yudhoyono's running mate because it would only degrade the party's dignity if its nominee is rejected. If the Democratic Party needs our cadres it will come to us," he said on Sunday.***1*** (T.A014/H-NG/A/E002) (T.A014/A/A014/A/E002) 19-04-2009 23:11:27

PORK-TAINTED DRIED BEEF CIRCULATING IN INDONESIAN MARKET

By Andi Abdussalam

Jakarta, April 18 (ANTARA) - The regional governments are called on to withdraw from the market pork-tainted dendeng (beef jerkey) and abon (shredded fried meat) products and to take action against their producers.

        "It is the regional governments who have the power to withdraw, destroy and revoke the business licenses of producers of port-tainted beef jerkey and shredded fried meat circulating in the market," Drug and Food Administration Agency (BPOM) Chairperson Husniah Rubiana Thamrin Akib said.

        Authorities have discovered that five companies selling dendeng and abon have been using pork instead of beef in their products which are not alllowed for consumption (haram) based on the Islamic law.

        The pork-tainted products were found in the provinces of Jambi, Jakarta, Central Java (Semarang), East Java (Surabaya) and West Java (Bogor and Bandung).

        "After conducting DNA tests on 35 samples collected from traditional markets across the country, we discovered that five of them were made from pork instead of beef," Husniah Runiana Thamrin Akib said.

        The products came from Kepala Sapi (producer is unknown), Limas (by Lenggang, a fictitious producer in Salatiga), A.C.C (producer is unknown), Beef Jerkey Lezaaat (MDC Food of Surabaya) and 999 (produced by S Hendropurnomo in Malang). Lezaaat even put a 'halal' (allowed for Moslems) label on its pack.

        Husniah said that the production and circulation of the product were found in the regions so that it would be easy for the regional governments to investigate and take action against their producers.

        "Some of the beef labeled pork-tainted products did not put the names of their producers and their addresses are unclear," she said.

        The BPOM has conducted the DNA test on the products following complaints lodged by consumers that pork dendeng and abon have been circulated in the market which were sold with a beef label.

        Director General for Islamic Mass Guidance Affairs H. Nasaruddin Umar will coordinate with the relevant agencies to take firm actions against the producers which deliberately deceived consumers in a country of predominantly Muslim popoulation.

        After a meeting with officials from the Ministry of Agriculture, BPOM, the Ministry of Health, the Indonesian Consumers Institute Foundation (YLKI), Nasaruddin Umar stressed they would take legal actions and withdraw the products from the market.

        "We have fielded a team from the relevant agencies to investigate the cases," he said adding that it turned out that the products were truly tainted with pork.

        Police have also launched investigation on the alleged sales of pork jerkey and shredded fried meat sold with a beef label following uproars which created public unrest in a number of regions such as Bogor, West Java, and Malang in East Java.

        The BPOM in Jakarta asked its regional branches in Surabaya, Bandung, Jakarta, Semarang, Jambi and Bogor to conduct the tests. And it turned out that samples tested showed they were tainted with pork.

        "I can imagine how furious the public, particularly Muslims, would be once they found out that they have been deceived all the time," Husniah said.

        She said that PPOM was only authorized to issue recommendations for the regional government to withdraw products, destroy them and punish the producers.

        "We have sent the recommendation letters to city administrators asking them to conduct raids and withdraw the pork dendeng," Husniah was quoted by the Jakarta Globe as saying.

        The municipalities could charge the businesses with violating the Consumer Protection Law, which carries a jail term of up to five years and a Rp2 billion fine.

        Tien Gartini Budhianto of BPOM said meanwhile that the government was expected to conduct a thorough laboratory test on all dendeng and abon products that are circulating in the country. "We will conduct a test on all beef jerkey and shredded dried meat, the results of which would be announced to the public later on. The tests would be conducted not only in Jakarta but also in 26 provinces," Tien Gartini Budhianto said.

        In principle, all relevant parties must play their respective roles to ensure that a product is safe for consumers. "It is not our domain to decide whether or not a product is halal or haram. But we have a cooperation body which would coordinate with the Ministry of Religious Affairs, the Ministry of Health and the Indonesian Ulemas Council (MUI)," Tien said.

        In the meantime, Turni Rusli Sjamsuddin of the Agriculture Ministry said that his side last year cooperated with the MUI in providing a halal certificate for animal slaughterers.

        "All animal slaughter houses in Indonesia must slaughter cows or other animals based on the halal principles if their meat is to be circulated in the market," he said. (T.A014/H-NG/A/H-YH) 18-04-2009 00:20:14

GOLKAR TO DECIDE ON COALITION NEXT WEEK

By Andi Abdussalam

Jakarta, April 14 (ANTARA) - Winner of the 2004 legislative election, the Golkar Party, whose voter turnout dropped significantly in last Thursday's polls, will decide whether to maintain its coalition with the Democratic Party (DP) or to coalesce with the Indonesian Democratic Party of Struggle (PDIP) next week.

        The former political machine of the New Order government will hold a special national leadership meeting on April 23, 2009 to reconsider the previous decision of its provincial branches to nominate Golkar Chairman Jusuf Kalla as its presidential hopeful.

        "The Golkar Party will at a special national leadership meeting next April 23 decide whether to continue coalescing with the DP or join the PDIP as opposition party," Golkar Party Deputy Secretary General Rully Chairul Azwar said on Tuesday.

        If the leadership meeting decides to continue its coalition with the Democratic Party, Golkar will likely nominate one of its cadres to pair up as a running mate with Susilo Bambang Yudhohyono, the DP's presidential hopeful.

        "The special meeting will of course take into account the electability of a cadre before Golkar decides to nominate him or her as a vice presidential candidate to pair up with Yudhoyono," Azwar said.

        Before last Thursday's legislative polls, Golkar regional branches have decided to nominate Jusuf Kalla, its general chairman, as its presidential candidate. The provincial branches made the decision to nominate Kalla as Golkar presidential hopeful because Golkar was convinced it would secure 30 percent of the votes, above the 20 percent required by the law for a political party to nominate its own presidential candidate.

        However, in Thursday's polls, Golkar, based on a quick count only won about 13.95 percent, making it difficult to nominate its own presidential candidate in accordance with the willingness of its regional branches.

        Deputy Secretary General of Golkar Rully Chairul Azwar said that Golkar should discuss again its regional branches support for the nomination of Jusuf Kalla as Golkar's presidential candidate.

        "Before the elections, Kalla was picked up by regional branches to be nominated as Golkar's presidential hopeful. Now, they have to discuss their support again," Azwar said.

        If the leadership meeting decides to maintain coalition with the DP, Golkar will propose one candidate for the vice presidency to accompany Yudhohono as a running mate.

        Other sources said, however, that Golkar and Democrat Party have built political communications up to the stage of discussing a vice presidential candidate which would be submitted by the Golkar Party. In this case, Golkar would decide three cadres in leadership meeting.

        Azwar responded to this issue cautiously saying that he had no knowledge about the three candidates scenario because a candidate would be decided in the special meeting.

        In the meantime, Golkar Deputy Chairman Agung Laksono said his party should take a realistic step and not force itself in nominating its own presidential candidate because it was not the winner of last Thursday's legislative elections. "The Golkar regional branch leaders' support for the Golkar chairman to run for president should be reconsidered," Agung Laksono said.

        The discourse on the need for Golkar to adopt a realistic step had begun to roll on among the Golkar elite. The same discourse on the need for Golkar to continue its coalition with the Democrat Party was also gaining strong support.

        After all, Jusuf Kalla met with Yudhoyono on Monday night which the media described as a signal that Golkar was moving closer to building coalition with the Democrat Party.

        But Laksono who is also the House Speaker, said that he did not know the details of what Jusuf Kalla and Susilo Bambang Yudhoyono discussed during their meeting.

        Kalla himself following his meeting with Yudhoyono did not gave any statement. Yudhoyono, who is the chairman of the Democrat Party's board of patrons, described the meeting as an ordinary encounter.

        "There was nothing special in the meeting," he said on Tuesday about his meeting with Jusuf Kalla who is also the incumbent vice president. The president's statement might be construed as readiness for the Democrat Party to coalesce with Golkar even if without Kalla.

        "Yudhoyono will need Golkar. I think Yudhoyono will take another cadre from Golkar like Akbar Tanjung or Agung Laksono," chairman of the National Awakening Party (PKB) Faction in the House of Representatives (DPR), Effendy Choirie said.

        He said that besides Kalla, former Golkar chairman Akbar Tanjung and DPR Deputy chairman Agung Laksono had the chance to pair up with Yudhoyono as a presidential ticket for the DP-Golkar coalition.

        PKB is one the political parties --along with the Prosperous Justice Party (PKS) and the National Mandate Party (PAN)-- believed to be going to coalesce with the Democrat Party.

        However, with the plan of Golkar to join the alliance, PKS, which is targeting the vice presidency with Yudhohono, has threatened to quit the coalition.

        Political scientist Syamsuddin Haris of the Indonesian Institute of Sciences (LIPI) said if PKS threatened to quit, Yudhoyono should he chooses one of them, would surely coalesce with Golkar rather than with PKS.

        "If it coalesces with Golkar, however, Kalla's chance to become Yudhoyono's running mate would be very small," Haris was quoted by Media Indonesia as saying.***1*** (T.A014/H-NG ) (T.A014/A/A014/A/E002) 14-04-2009 23:28:01

PRE-POLLS POLITICAL ALLIANCES FACING UNCERTAINTIES

By Andi Abdussalam
Jakarta, April 12 (ANTARA) - The idea of forming a golden triangle coalition of the United Development Party (PPP), the Golkar Party and the Indonesian Democratic Party of Struggle (PDIP) is facing uncertainties as PDIP has moved closer to forming a coalition with the People's Conscience Party (Hanura) and the Great Indonesia Movement Party (Gerindra).

        On the other hand, PPP and Golkar (respectively won 5.24 percent and 13.95 percent of the votes in last Thursday's legislative polls based on a quick count) are still hanging in the balance.

        Last month, Megawati Soekarnoputri, leader of PDIP which won 14.33 percent of the polls, met with Golkar Chairman Jusuf Kalla and PPP chief Suryadharma Ali. They shared a view to form a strong government. Suryadharma Ali even came up with the idea to establish an alliance called the 'Golden Triangle Coalition.'

        Before the polls, political parties maneuvered to form coalitions. Besides the Golden Triangle Coalition, eleven small parties (which supported former chief economic minister Rizal Ramly as their presidential candidate) also formed an alliance called the Bloc for Change Coalition.

        Not willing to be left behind, the Democratic Party also voiced its own bloc called the 'Golden Bridge Coalition.'

        Yet, after the Indonesian Survey Institute (LSI) announced the results of its quick count, where President Susilo Bambang Yudhoyono's Democratic Party was ranked in the first place with 20.48 percent of the votes, these blocs or alliances seemed to have become uncertain.

        The Bloc for Change Coalition, for example, would be 'disqualified' as all of the 11 political parties supporting it failed to meet the 2.5 percent parliamentary threshold requirement while Golkar and PPP leaders were yet to follow up their golden triangle coalition with the PDIP.

        PPP Secretary General Irgan Chairul Mahfiz even turned to the Democratic Party, hoping PPP would nominate Susilo Bambang Yudhoyono as its presidential hopeful in the July presidential race.

        "It would be appropriate for PPP to adjust its commitment to the people's aspirations. PPP will discuss its stand in the national congress, however," he said.

        He said that where popular votes would go could already be seen in the biggest number of votes the Democratic Party had collected in the legislative elections. Yudhoyono was the dominant factor in Thursday's polls so that it would be naive for PPP not to see the tendency in the people's aspirations.

        In the meantime, the Golkar is now preparing three coalition scenarios. Golkar Deputy Secretary General Rully Chairul Anwar said that the first scenario was to nominate its own presidential hopeful. The second scenario is to coalesce with the opposition party PDIP and the third one is to 'reconcile' with the Democrat Party.

        Rully said that the first option was hard to carry out because the votes Golkar secured in the legislative elections were less than those won by the Democrat Party, or less than the number of votes (25 percent) required by the law to nominate a presidential candidate.

        As to the second option, Rully said that Golkar had not yet communicated with PDIP at all. "The likelihood of the first and second options is small. It seems that we should take the third option, namely to join the Democrat Party," Rully was quoted by Republika daily as saying.

        Associate chairman of Democrat Party Anas Urbaningrum said meanwhile the best scenario for his party was to form a coalition of political parties which already had the experience in coalition.

        "The best scenario for Democrat Party is to coalesce with parties already have the experience in coalition such as Golkar, the Prosperous Justice Party (PKS), the National Awakening Party (PKB), the National Mandate Party (PAN) and other parties," he said.

        On Sunday, PPP chairman Suryadharma Ali met with Golkar leader Jusuf Kalla but they made no clear statements on coalition after the meeting. The PPP leader only said that Golkar and PPP shared some similarities.

        "Like a publicly listed company, an important decision should be made through a share-holders' meeting. PPP and Golkar party had to take a decision through a leadership meeting. They were different from other parties who were owned by 'individuals', he said.

        While PPP and Golkar still hanging in the balance, PDIP is moving closer to forming a coalition with Gerindra (which won 4.59 percent votes) and Hanura (3.78 percent).

        Megawati, presidential hopeful of PDIP, met with Hanura chairman Wiranto on Friday and Gerindra leader Prabowo Subianto the following day. According to Taufik Kiemas, PDIP's advisory board chief, PDIP was planning to coalesce with Gerindra and Hanura for the presidential election in July.

        He said the party's plan to coalesce with Gerindra and Hanura would be confirmed on Wednesday. "On Wednesday a decision on the coalition will be made," he said.

        Prabowo said meanwhile the coalition plan would still have to be further discussed in the next few days. "The aim now is saving and securing the country," he said.

        On the occasion, Megawati was asked about the possibility of her taking Prabowo as her running mate. She said the possibility was open, depending on the results of the national party meeting.

        PDIP Secretary General Pramono Anung claimed that basically PDIP had coalesced with Hanura, Gerindra and even with PPP.

        "It is almost certain that we will coalesce with Garindra, Hanura and even PPP," he said.

        Pramono Anung said that at present PDIP was carrying out political communications with several other political parties. "There will also be an immediate meeting with Golkar," the DPIP secretary general said.***1*** (A014/A/H-NG/A/S012) (T.A014/A/A014/A/S012) 12-04-2009 23:23:37

GOLKAR PLAYS PENDULUM FOR PARTY COALITION

By Andi Abdussalam

Jakarta, April 10 (ANTARA) - With the Democratic Party and the Indonesian Democratic Party of Struggle (PDIP) respectively ranked first and second in Thursday's legislative elections based on quick counts, Golkar, which was ranked third, can play the pendulum in the middle for the formation of a coalition, political scientists say.

        "Golkar can play the pendulum key in the formation of a coalition between the Democratic Party, on the one hand, and the PDIP, on the other. Golkar which won less than 15 percent of the votes has the potential to be included in a coalition with any party," political scientist of the Indonesian Institute of Sciences (LIPI) Hermawan Sulistyo said.

        The Indonesian Survey Institute (LSI) announced on Friday the results of its quick count on samples of Thursday's legislative elections where 38 political parties vied for 560 seats in the House.

        The LSI said the Democratic Party won 20.48 percent of the votes followed by PDI-P with 14.33 percent Golkar Party with 13.95 percent, the Prosperous Justice Party (PKS) 7.85 percent, the National Mandate Party (PAN) 5.72 percent, the United Development Party (PPP) 5.24 percent, the National Awakening Party (PKB) 5.12 percent, the Greater Indonesia Movement (Gerindra) Party 4.59 percent, the People's Conscience Party (Hanura) 3.78 percent, and the Crescent and Star Party (PBB) 1.70 percent.

        With that constellation, the presidential elections which will be held next July could proceed in one round as long as the Democratic Party is able to carry out political lobbying and coalesce with the most suitable parties.

        "If the Democratic Party is smart enough to lobby other political parties, especially if it also includes Golkar, it would be able to leave the PDIP and the Gerindra behind. And if this happens, the presidential election will likely be held in one round only," he added.

        However, it is also quite possible for Golkar chairman Jusuf Kalla to join PDIP but in this case the Democratic Party could split Golkar supporters by picking other Golkar cadres. If the Democratic Party is willing to coalesce with Golkar there would possibly be only two pairs of presidential candidates so that the elections would be held in one round only.

        "So, whether or not the number of presidential pairs would be two or three it would be determined by the smartness of the Democratic Party in conducting political lobbies," Sulistyo said.

        "On the other hand, if Golkar wants to coalesce with the Democratic Party it has to compete with PKS. Likewise, a coalition with PDIP would cause Jusuf Kalla to compete with Megawati Soekarnoputri as their presidential hopeful or he has to be satisfied with the running mate position," Sulistyo said

        Political observer of the University of Indonesia (UI) Yon Machmudi meanwhile said that the most suitable partner for Susilo Bambang Yudhoyono to pair up in the Democratic Party's presidential candidates would be Hidayat Nurwahid of PKS.

        "Hidayat Nurwahid, who is clean, is suitable to represent the majority of Indonesian Muslims," he said. However, pairing up with Nurwahid would cause Yudhoyono to secure smaller support in the parliament if compared to the support he would win if he has a running mate from the Golkar Party, he said.

        In this case, the Democratic Party can still build strength by including the PPP, the National Awakening Party (PKB) and the National Mandate Party (PAN) in its coalition, he added. "Maybe, for the time being, it is necessary for Golkar to be excluded from the government so that Indonesia would enjoy a political change, Machmudi said.

        Actually, according to Machmudi, Yudhoyono is no longer convenient with Kalla. He possibly wanted to let Kalla go but on the other hand he still wanted to maintain Golkar as well. "Here, Akbar Tanjung has the chance," he added.

        If Golkar is not included in the Democratic Party coalition or in PDIP, it still has a chance to win the presidential contest by coalescing with other functional-based parties. "Although the votes gained by Golkar declined, it still can win the presidential contest if it works together with functional-based parties," Senior Golkar figure Pinantun Hutasoit.

        He said that if Golkar intended to win the presidential race, it should conduct a consolidation with other functional-based parties by consolidating in real terms first.

        Hutasoit said the parties he referred to were parties which were formed by Golkar former cadres such as the Great Indonesia Movement Party (Gerindra), the People's Conscience Party (Hanura) and others.

        "If they had such intention they have to do it with full consciousness and should throw away their respective arrogance. In this way I think they still could win the presidential ontest," he said.

        But it seems that the Democratic Party has not yet totally closed the door to a coalition with Golkar, at least it was reflected in Yudhoyono's statement on Friday that his party was open for a coalition with any party as long as it has a strong determination to bring success to the nation and willing to have a coalition based on a political charter.

        "For me, parties which are suitable to join a coalition with the Democratic Party, no matter what ideologies they have, are those which have a strong determination and ready for a cooperation," he said. ***1*** (T.A014/A/H-NH/a014) (T.A014/A/A014/A/A014) 11-04-2009 00:33:44

SIXTY PCT OF RI'S RIVER BASINS IN POOR CONDITION

By Andi Abdussalam

Jakarta, April 8 (ANTARA) - Floods, landslides and other natural disasters which have caused huge material losses and claimed an uncountable number of lives over the past several years, are partly blamed on the loss of forests in river basin areas (DAS).

        Floods and landslides hit various parts of the country during the rainy season and drought affected crops during the dry spells because river basin areas could no longer hold water when rain falls and channel it when dry season comes.

        According to Ministry of Forestry, about 60 percent of 458 DAS areas found in various parts of Indonesia are now in damaged condition. "Damage to DAS areas is probably more than 60 percent. We are still making an inventory of DAS in bad condition," River Basin Management Director of the Forestry Ministry Dr Silver Hutabarat said.

        Some have reached the critical condition (stage I) while others are still in stage II. "They are damaged due to exploitation of man and pressure of natural disasters. But most of the damage is likely due to human acts," Hutabarat said.

        In Central Java for example, a total of 35 of the 128 river basins are now in critical condition as a result of sand mining and illegal logging by the local people, an activist said. Chairman of the Development Resources Research Center (LPPSP) Kertari said sand and stone mining as well as illegal logging were still going on in the region while the local people were not yet aware of the importance of preservation of areas prone to environment damage.

        DAS Management Director Hutabarat said that damage would have impact not only on triggering floods and landslides but also on causing drought, poverty and health problems as it would reduce land productivity and water sources.

        Therefore the DAS management should be done by all stakeholders because restoring the function of damaged DAS areas should not be done unilaterally. There are many parties involved such as the agriculture, plantation, mining and health services.

        "So, a concerted effort must be made in handling damaged DAS areas, particularly those already in stage I," Hutabarat said. He mentioned the Agam-Kuantan in West Sumatra as one of the DAS areas which had experienced the stage I condition.

        "We hope that the Agam-Kuantan DAS management service (BPDAS) would draw a more concrete and concerted program in cooperation with all stakeholders," Hutabarat said on Tuesday.

        In West Sumatra province alone, at least 28 river basin areas have been in bad condition. According to Prof. Isril Berd of the Padang-based Andalas University, most of the river basin areas in West Sumatra are prone to natural disasters as they are now in bad condition.

        "Of the 30 DAS areas in West Sumatra, 19 are now in stage I and nine in stage II. Those in stage I have the potential to generate floods and landslides," he said.

        He said that all relevant parties should give attention to the river basin conditions immediately before they developed worst. Without serious attention from the relevant parties natural disasters such as floods and landslides could not be prevented.

        Similar to those in other regions, river basin areas in West Sumatra have lost their function as a result of human acts such as dredging of DAS areas for mining purposes and illegal logging. All these happened because regional governments always looked for the loopholes and the weaknesses of regulations, regardless of the fact that DAS was a unity of ecosystem between rivers and the environment which functioned to hold rain water and that from lakes and channeled it during the dry spells.

        However, the mentality of decision makers who always looked for the loopholes of regulations to exploit natural resource potentials, has caused increasingly critical impacts on DAS areas.

        Isril Berd who is the dean of the Andalas University school of agriculture said that there would be no use for the local government to issue a license for mining exploitation if it would destroy the environment. In the future the DAS management should involve all parties that had interest so that DAS areas could be conserved.

        In the meantime, activists on DAS forum should not remain silent but encourage all interested parties to make concerted efforts to conserve DAS areas. "So far decision makers still have the egoistic mentality so that DAS conservation efforts were made individually,"

        Chairman of West Sumatra's DAS People Empowerment Forum, Dr Yuzirwan Rasyid said meanwhile that if the DAS areas lost their functions it would cause erosion, landslides, sedimentation, floods, loss of water reserves, unstable river water volumes and global warming.

        The impact of this all would be creating environmental pollution, increasing production cost, reducing productivity, worsening climate change and boosting poverty, he said.

        Therefore, all parties having interest with it should be fairly responsible in exploiting natural resources which means that those gaining the biggest benefits should also spend the biggest funds to conserve the environment.

        In order to carry out all this, an economic evaluation on the condition of DAS areas from upstream to downstream should be made to know the benefits and risks all stakeholders had to bear.

        He said that in the future a concerted DAS management should be made by involving the people with respect to the local wisdom, because as long as the DAS management was still carried out with the egoistic mentality, it would be difficult and take time to restore the DAS critical conditions and conserve it.

        "So, all parties concerned with the DAS function should have responsibilities for its restoration by sharing benefits and risks," Yuzirwan said.***3*** (T.A014/A/HAJM/14:18/A/O001) (T.A014/A/A014/A/O001) 08-04-2009 14:31:21

INDONESIA STILL SEES NUKE POWER PLANT AS LAST OPTION

By Andi Abdusslam


        Jakarta, April 7 (ANTRA) - The Indonesian plan to develop a nuclear power plant in the Muria Peninsula, Jepara regency, Central Java, to increase power supply in the country, seems to remain a plan only, though the government has carried out feasibility studies for over three decades.

        Strong opposition from the local people, non-governmental organizations and environmentalists have caused the government to delay the project and put it as a last resort in increasing power supply.

        After all, President Susilo Bambang Yudhoyono during his campaign in Central Java on Sunday expressed his personal disagreement to the nuclear power plant development in Muria peninsula.

        The president's statement prompted various quarters to a positive response. "The head of state's remarks showed the government's wisdom with regard to discourse among the public over the nuclear issue," Winarno Thohir, Reliable Fishermen Association chairman (KTNA) said here on Tuesday.

        Over the past few years, oppositions to the plan have been expressed by local people, organizations and environmentalists. The government is advised to develop instead alternative environment friendly sources such as water, solar energy and sea current.

        Recently, tens of non-governmental and mass organizations from Jepara, Kudus and Pati districts grouped in the Muria Nature Conservation Network (Jala Muria), called on the government to stop its nuke plan and replace it with a renewable energy project.

        "The government should give priority to the development of renewable energy as Indonesia is rich in such a resource," chairman of Jala Muria, Lilo Sunaryo said recently.

        He said that the people of Jepara and other districts in the vicinity rejected the government plan to build a nuclear power plant in Muria peninsula because the risk it would create was far bigger then the benefit it would give to the people.

        According to Winarno Thohir, KTNA has since in the past voiced its disagreement to the nuclear project because the peninsula is a fertile area for agriculture.

        Jala Muria chairman, Sunaryo said on Tuesday that his network had been opposed to the nuclear plan since three years ago. "From the technological aspect, a nuclear power plant still has weaknesses even though now it has used a new generation technology which is claimed to be very safe," Sunaryo said.

        The International Atomic Energy Agency (IAEA) data show that nuclear waste radiation would last for 24 thousand years. Therefore, Sunaryo, a nuclear turbine expert who graduated from a University in Russia, said that nuclear wastes needed a special handling for about 24 thousand years to prevent them from creating environment problems.

        The peril of a nuclear incident is the main reason behind the people's opposition. The explosion of Chernobyl's nuclear reactor in Russia in 1986 and the leakage at Mihama's nuclear reactor in Japan in 2004 are still fresh in their minds. In Chernobyl, ten years after the leakage, thousands of people died of exposure to discharged radioactive material.

        Indonesia's experience --through its National Atomic Energy Agency (BATAN) which has three nuclear reactors in Yoyakarta, Bandung and Serpong-- to operate nuclear reactors has not erased people's doubts.

        Before starting to build a nuclear power reactor, BATAN has carried out 30 years of feasibility studies with consultants from the IAEA in 1976, from Italy in 1984, from BECHTEL (US) in 1984 and from the United State and Japan in 1994.

        Sunaryo said the three reactors were of small scale with temperatures ranging between 100 and 150 degrees Celsius. They were normal types of reactors designed purely for research.

        A nuclear power reactor needs 2.5 million litters of water per minute to be used as a coolant for the temperature in the plant which could reach between 400 Celsius degrees to 600 Celsius degrees.

        If it leaks, the water that gushes out can be as hot as 3,000 degrees Celsius which is able to melt iron. This is apart from the radioactive material it would discharge to the environment.

        In response to the people's opposition, Environment Minister Rachmat Witoelar said sometime ago the government's plan to set up a nuclear power plant was not yet final. It appreciated the people's objections to its plan.

        He said his office was keeping a close watch on what was being done to implement the plan, including the tackling of the project's environmental aspects which normally had to be done by an analysis and assessment of the project's possible impact on the local environment.

        Last Sunday's statement by President Yudhoyono was therefore welcomed by the people of Jepara and environmental activists. The 'Jurnal Nasional' daily in its edition on Monday quoted the president as saying that nuclear energy would become the last option in the development of power plant in the country.

        Yudhoyono made the statement when he answered a question raised by Ermawati, a woman from Jepara. Ermawati who was concerned over the government plan to develop a nuclear power plant in Muria peninsula raised the question during a question and answer session when the president in his capacity as chairman of the Democrat Party's board of patrons held a legislative election campaign in Magelang, Central Java, on Sunday.

        "Any country can build a nuclear power plant but Indonesia will prioritize the development of electricity from non-nuclear sources," Yudhoyono said.

        Therefore, in his capacity as the chairman of the board of patrons of the Democrats Party, he expressed his disagreement to the development of a nuclear power plant in Muria peninsula.

        "We have not made any decision to build a nuclear power plant project in the Muria area and I do not agree if a nuclear plant is all of a sudden built there" he said. ***3*** (T.A014/H-NG/A/H-YH) (T.A014/A/A014/A/H-YH) 07-04-2009 22:52:28

HIGH RETURN ON DEPOSITS HAMPERING LOWER BANK INTEREST

By Andi Abdussalam

Jakarta, April 6 (ANTARA) - Banks have not yet responded to calls from various quarters to cut their interest rates on credits because interest rates on deposits are still high.         Various quarters have urged banks to cut their interest rates on credits in order to help stimulate the real sector in the current economic crisis.         However, banks appear to be still unable to lower their rates despite the fact that Bank Indonesia (BI/the central bank) has aggressively cut its benchmark interest rates (known as BI Rate) several times by a total of 150 basis points to 7.5 percent since January this year.         Banking observer Kostaman Thayib said banks had no intention to slow the lowering of the interest rates of their credits but were waiting for the decline in the interest rates of deposit which at present were still at an average of 12 percent.         "Big customers still ask for high deposit interest rates that pose a problem for banks to lower credit interest rates," he said here on Monday.         He said that many banks still fixed deposit interest rates above 12 percent for their customers despite the fact that BI had called on them to cut their credit interest rates soon following its policy to cut its BI Rate recently.         Bank Indonesia's Board of Governors in a meeting on Friday last week decided to lower the central bank's benchmark rate by 25 basis points to 7.5 percent.         The lowering on Friday of the BI Rate was the forth of its kind the central bank has taken since January 2009. In the past three months, BI has aggressively cut its benchmark rate by 150 basis points (1.5 percent) to 7.5 percent.         BI Deputy Governor Hartadi A Sarwono said the lowering of the BI Rate was in line with the downward trend of inflation in the country. "There is still a room for the benchmark rate to go down in the future," he said.         BI will continue to take expansive policies in an effort to boost the development of the real sector. The economic growth is estimated at 3-4 percent and inflation at 5-7 percent in 2009.         In light of the BI Rate cuts, Indonesian Chamber of Commerce and Industry (KADIN) Chairman MS Hidayat asked the country's banks to lower their interest rates and called on the central bank BI to intervene in the matter.         "Kadin asks banks to lower their interest rates because the present rates hamper the real sector's activities," Hidayat said here Monday, adding that he had also officially asked BI to help make his request a reality.         High interest rates will not bring about positive value for the real sector's growth in Indonesia," he pointed out.         He appreciated BI's efforts in cutting its reference rates several times so that the rate now stood at 7.5 percent.         But he also said the BI's initiative would be useless if the national banks did not immediately reduce their interest rates, adding that ideally the disparity between bank interest rates and the BI rate should not exceed four basis points.         "At present, private-owned banks have set their interest rates at an average of 16 percent, and this is not efficient," Hidayat said.         Earlier, economic observer Tony A Prasetyantono said banks should cut their interest rates on credits this month after the central bank had slashed its key rate four times in the past four months.         "After BI's latest key rate cut whereby it is now 7.5 percent, large banks that have enough liquidity should reduce their interest rates on deposits and later the interest rates on credits. I think they can start doing it this month," he said.         The interest rates on credits had to be cut to avoid non-performing loans. Following the weakening of public's purchasing power banks are potentially facing increasing non-performing loans. One way of curbing it is through cutting the interest rates starting from savings interest and then credit interest.         In the meantime, state-run Bank Mandiri's retail and micro-business director, Budi Gunadi Sadikin, said the cut by 25 basis points of the BI rate to 7.5 percent could drive bank credit interest to drop.         "Yes, I think so. Only that it will be stronger if the rate drops again later during the auction of Bank Indonesia Certificates (SBI)," he said.         The director of CIMB-Niaga Bank, Chaterinawati Hadiman, said the drop in the BI rate could be one of the factors that would help reduce credit interest.         "It could become one of the factors for it although several other factors also had to be accounted for such as liquidity condition and credit risks," she said.         Based on the central bank's data from the end of December 2008 to the second week of March 2009 the credit interest had dropped only by 0.05 percent while BI Rate had dropped by 200 basis points.         According to Kostaman Thoyib, the lowering of the interest rates of banks' credits is only a matter of time. Yet, when it will happen still needs to be wait and see.         He said that the interest rate could not be reduced by a low rate of the BI benchmark alone but also by a cut in the funding cost which at present was still high and pose a burden on banks.         "We are convinced that if the interest rate of deposit goes down below 10 percent, the interest rates of banks' credits will also follow soon," Kostaman Thoyib said. ***2*** (T.A014/A/HAJM/20:30/A/H-YH) (T.A014/A/A014/A/H-YH) 06-04-2009 21:22:00

INDONESIA ENDS CAMPAIGN PERIOD TO VOTES ON THURSDAY

By Andi Abdussalam

Jakarta, April 5 (ANTARA) - Kicked off last March 16, the 21-day outdoor campaign for the April 9, 2009 legislative elections ended on Sunday with some 171 million eligible voters expected to cast their votes for the 38 political parties vying for 560 seats in the House of Representatives (DPR).

        Amid chaotic preparations and fear for election disruptions due to unresolved voters' lists and delayed or damaged ballots, the voters will also vote for 132 seats in the Regional Representatives Council (DPD).

        Besides the 38 political parties contesting for 560 seats in the DPR, 1,998 seats in the Provincial Legislative Assemblies and 15,750 seats in District/Municipal Legislative Councils, there are also six local parties in Nanggroe Aceh Darussalam vying for the local legislative assembly seats.

        On the campaign closing day on Sunday, two major parties, the Golkar Party and the Indonesian Democratic Party-Struggle (PDIP), focused their attention on West Java province and Bali.

        Golkar, the political machine of the New Order and winner of the 2004 legislative election with 128 seats in the DPR, fielded its leading cadres in West Java as well as Bali, which is known to be the hub of PDIP supporters.

        An estimate of 50,000 supporters flocked to Bali's Chandra Buana Amlapura square, Karangasem district, to listen to the orations of Golkar campaigners. Here, Golkar fielded its secretary general, Sumarsono, and a member of its board of patrons, Aburizal Bakrie.

        "Golkar supporters from eight districts in Bali flocked to the square which is located some 80 km east of Denpasar," said I Wayan Suparta, Golkar Spokesman for Bali regional branch.

        In West Java, Golkar fielded its general chairman Jusuf Kalla who is also the incumbent vice president and other cadres such as Agung Laksono, the incumbent House Speaker who is also Golkar deputy general chairman, Akbar Tanjung (former Golkar chairman) and Surya Paloh.

        More than ten thousand supporters packed the Majasetra square in West Java's Majalaya subdisrict, Bandung regency, to listen to Golkar's cadres' orations. Golkar Chairman Jusuf Kalla campaigned in West Java district of Bogor after attending a rally in Padang, West Sumatra.

        After giving orations at Padang's Imam Bonjol square, the Golkar chairman flew back to hold a campaign in Bekasi, a West Java town on the outskirts of Jakarta, and proceeded to Sempur square in Bogor, also a satellite town of Jakarta.

        In the meantime, PDIP, which was the second winner in the 2004 legislative elections and won 109 seats in DPR, fielded its general chairperson former president Megawati Soekarnoputri in Bali province.

        Thousands of PDIP supporters thronged Krisna Javara Sports Stadium in Jembrana district, in the western tip of Bali, to listen to speeches made by Megawati who is also a daughter of the country's founding father, first president Soekarno.

        During the rally, Megawati called on her supporters not to abstain from the polls. "Taking part in the polls will strengthen our position in the legislative body. If many of our legislative candidates win seats in the DPR, it would boost my chance in the presidential race," she said.

        She said that PDIP lost many votes in 2004 due to election frauds. So, democracy should be upheld. "There is an attempt to disrupt democracy in order to seize and maintain power and to return to the old sytem," the PDIP chairperson alleged.

        In order to prevent clashes between supporters of PDIP and those of Golkar which also held a campaign on in the country's popular tourist resort province, Bali police mobilized all of its personnel to maintain peace.

        Meanwhile, incumbent president, Susilo Bambang Yudhoyono, who is also advisory council chairman of the Democrats Party (PD) toured East and Central Java provinces for his party's final round of campaign.

        Unlike in its previous day campaigns, the Democrats Party, which came up as the fourth winner in the 2004 legislative election with 57 seats in DPR, organized its final campaign indoors in East Java.

        The PD organized what it called 'Democrats Town Hall Meeting' as its final round of campaign in Magelang district. In his address in the meeting, Yudhoyono said his government had over the past four years made positive progresses, despite some shortcomings that still had to be improved.

        He said at the beginning of his government in 2004, he promised to work hard to overcome the problems faced by the nation at that time. During his government in the past four years Indonesia had recorded positive achievements such as political stability, law enforcement, democracy, economy, people's welfare and good image overseas.

        When he spoke to his supporters at Simpang Lima square in Semarang, Central Java, Yudhoyono called on all political parties to make the legislative elections a success. "I call on electoral contestants to make the election a success. Although we are competing with each other we should continue to build harmony," he said.

        The third largest party, the United Development Party (PPP) which won 58 seats in the DPR in the 2004 legislative election meanwhile conducted its final outdoor campaign at Ngabul square, Jepara district, Central Java.

        PPP chairman Suryadharma Ali said his party was intending to change the capitalist economic system into a society-based economy in order to awaken the nation. "The capitalist economic system has failed to provide benefits for the people," he added.

        Therefore he called on supporters to vote for PPP in order to return its past glory through the elections on Thursday.

        Earlier, Suryatharma Ali called on the General Elections Commission (KPU) to resolve the problem of fictitious voters' lists immediately.

        "I appeal to the KPU to work more seriously to improve the fictitious voters' lists soon," the PPP chairman said. Up to now, fictitious voters' lists are still found in a number of regions which could lead to election frauds.

        "If KPU is not serious enough in resolving the problem it is feared it would lead to illegitimate election results and create distrust among the public," he said. ***1*** (T.A014/H-NG/A/E002) (T.A014/A/A014/A/E002) 05-04-2009 21:45:39

TECHNICAL PROBLEMS FEARED TO CAUSE DELAY IN ELECTIONS

By Andi Abdussalam

Jakarta, April 4 (ANTARA) - The legislative elections are less than a week away but the General Elections Commission (KPU) is still facing technical problems which are feared to become a reason to delay the polls scheduled for April 9, 2009.         "I am worried about the distribution of ballots, whether they could arrive at the polling stations on time," KPU chairman Abdul Hafiz Anshary said. Elections District Committees (PPK) should have received the ballot papers on Friday.         Deputy Chief of KPU for logistics affairs Boradi has predicted that only about 60 percent of ballot papers had arrived in the PPK so far. Therefore, Abdul Hafiz Anshary worried whether or not the ballots would arrive at the polling stations on April 8, a day before the election is held.         The 2008 elections law requires all elections material to reach polling stations a day before the voting day.         Besides, the slow distribution of ballots, KPU also faced problems with the increasing number of fictitious voters' lists appearing in many regions. Ray Rangkuti, director of 'Lingkar Madani', civil society non-governmental organization, was quoted by Media Indonesia daily a saying that the problem of voters' list and other elections logistics had the potential to create unrest.         Based on reports, many fictitious voters were included in the lists. There are even lists which included the names of police and military personnel, and more ironically, about 1,200 patients of a mental hospital in Grogol, West Jakarta, were included in the list.         According to data made available at the Elections Supervisory Body (Bawaslu), at least 300 million damaged ballot papers have not yet been replaced. Damaged ballots are found almost in all regions. KPU has decided not to receive requests for damaged ballot replacements.         In the meantime, the distribution of logistics also faced problems. Not all regions could be accessed with transportation means. The government admitted that regions in two provinces are quite difficult to access, namely regions in Central Kalimantan and Papua provinces.         Poll watchdogs have expressed concern about the quality of the elections, citing shoddy preparations that had snagged mainly on logistics and voters' list problems.         "We don't want to contest the KPU data. We are just asking the poll body to reveal the real facts of the logistical problems so everybody can help the polls carry out the elections on time," Jeirry Sumampauw, coordinator of the Indonesian Elections Committee (Peti), was quoted by the Jakarta Post as saying.         The chaotic preparations for the 2009 legislative elections are said to be the most worrying problem in Indonesia's election history. Fearing possible failure in the elections, Muslim-based United Development Party (PPP) Chairman Suryadharma Ali said that if need be, the elections might well be postponed.         "Up to now, I still think that the elections must go ahead in accordance with the schedule made earlier," Ali said here on Saturday. But the elections might well be delayed if KPU openly says it is giving up or no longer able to solve the technical problems it is still facing," the PPP chairman said.         He said many packages of fixed voters' lists had not yet been evenly distributed to polling stations (TPS) throughout the country, including the many cases of fictitious voters.         Ali said that he feared the elections, if conducted in such a condition, would create distrust among voters, as it could cause suspicions that marks up had taken place due to the many cases of fictitious voters in the lists.         After all, such a condition would discourage voters to exercise their voting rights. According to political scientist Dr Alfitra Salam of the Indonesian Institute of Sciences (LIPI), about 55 percent of the 171 million registered voters might abstain from voting.         The number of abstainers could be lower than 55 percent, however, he said adding that he arrived at the figure based on his own estimate.         "Not all abstainers in the figure are pure abstainers. Some will abstain from voting because of technical or administrative problems," Alfitra said.         He said that 20 percent of the 171 million voters would abstain because they had no identification cards, 15 percent had no intention to vote, 10 percent would make mistakes in ticking the ballot papers and 10 percent others would be traveling for a long holiday.         In order to prevent voters from ignoring the elections, a number of interfaith leaders called on voters to make the April 9 elections a success.         They said that failure in the election would be a set back in the country's political life. Chairman of the Indonesian Churches Union (PGI) Andreas Yewangoe said to make the elections a success one should not abstain from voting.         Likewise, Chairman of the Indonesian second largest Muslim organization Muhammadiyah, Din Syamsuddin said that voters should be aware that election was an important national agenda for the continuation of the reform process.         Besides the legislative elections on April 9, a presidential elections would also be held on July 8, 2009.         In the legislative elections, some 11,215 legislative candidates are competing for 560 seats in the House of Representatives (DPR) in the national level and 1,109 for 132 seats in the Regional Representatives Council (DPD).         At the regional level, 112,000 people are competing for 1,998 provincial legislative council seats and an estimated 1.5 million others are battling for 15,750 seats on district/municipal legislative councils. ***1*** (A014/A/HAJM/B003) 2. 21:10. (T.A014/A/A014/B003) 04-04-2009 21:19:53