Selasa, 22 Desember 2009

ENJOY YOUR NEW YEAR WITHOUT THREAT OF TERROR

By Andi Abdussalam

          Jakarta, Dec 22 (ANTARA) - Unlike previously,  everyone, including domestic and foreign tourists, can in the new year feel secure in visiting  shopping centers, tourist resorts or staying in luxury hotels in various parts of Indonesia.

         Terrorists are unlikely to launch attacks and would rather keep silent at least for several years after  their top leaders and other operatives were eliminated by the Indonesian Police's Detachment-88 Anti-Terror Unit. So, 2010 is likely be a year free from terror attacks.

         "Terrorist activity in Indonesia is expected to decline for several years after the recent elimination of top terror mastermind Noordin M Top and a number of his lieutenants," former chief of the State Intelligence Agency (BIN) Syamsir Siregar said recently.

          The crack-down on and killing of several terrorist leaders this year will prompt existing terrorist cells and groups to hide.

          Malaysia's top terrorist Dr Azhari was killed in a police raid in Kota Batu, East Java in 2005 while his top aide Malaysia's Noordin M Top was slain in Solo, Central Java, a few months ago. In the meantime, Noordin's successor, Syaifudin Zuhri, was also shot dead in Ciputat, Tangerang, near Jakarta last October.

         While toop terrorists Amrozi, Muklas and Imam Samudra have been executed.

         These terrorists were responsible for a series of terror attacks on certain targets in various parts of the country such as the Australian Embassy in Jakarta, Marriott and Ritz Carlton hotels and other targets, including those in the first and second Bali bombings in 2002 that killed hundreds of people.

         The anti-terror unit of the National Police Headquarters had arrested 466 terror suspects since the Bali bombing incident in 2002.  A total of 14 of the number were killed because they resisted arrest when police located them.

         Although the notorious terror criminals have been eliminated, cautioun must continue to be exercised. The ideology that justifies  violence to achieve a goal still exists. Thus, the people need to remain alert to the threat of terrorism.

         Siregar warned that the quiet situation of the terrorist groups must  be anticipated because this time it was a break for them to consolidate and build the strength of their organization to launch attacks in the future.

        "So, we have to remain alert although they have temporarily stopped their activities," he said.

        On how long they would stay quiet, Syamsir Siregar said it could be up to four to five years. "This will depend on the map of their strength. So, we should remain alert because terror acts are almost impossible to predict although indicators of their plans can be detected," he said.

         According to Chief of the Detachment-88 Anti-Terror Unit Senior Commissioner Tito Karnavian, the terrorist ideology which allows  violence to achieve its goals would continue  to develop in 2010.

         He said the threat of terrorist attacks had admittedly been reduced since the killing of Noordin M Top and his lieutenants but it did not mean that the terrorism problem was over. This is because thier ideology still exists among the people.

         This ideology could gain further support and strength both at home and abroad. Local conflict with religious nuance such an in Poso and Ambon could serve as a factor from inside the country. "If a goup of Muslims felt it was oppressed, it would create an impetus to the revival of this ideology," Tito Karnavian said.

         In the meantime, factors that could cause the revival of terrorism ideology in the country included the conflicts in Afghanistan, Pakistan and Irak.

         In an effort to handle terrorism, the Central Board of Nahdatul Ulama (PBNU/the country's largest Muslim organization), suggested last month the establishment of a National Anti-Terrorism Board.

        PBNU Chairman Masykuri Abdillah said the board should be formed like the National Anti-Narcotics Agency (BNN) which seriously plays an active role in the fight against narcotics, Masykuri Abdillah said the National Anti-Terrorism Board was necessary to be formed to fight against terrorism.

         He said the anti-terror desk at Coordinating Ministry for Political, Legal and Security Affairs had weak position and therefore it could not play its role optimally.. "It is better for the anti-terror desk to be improved as national anti-terror board like the National Anti-Narcotics Agency, because both narcotics and terrorism posed similar danger and threat," said Masykuri, the professor of Jakarta Syarif Hidayatullah State Islamic University (UIN Syarif Hidayatullah).

         The national anti-terror board should be made up of various public elements including the military and police personnel and religious figures because terrorism in Indonesia was carried out in the name of religion.

         Through the board, various efforts to manage terrorism in the country could be well coordinated, because the threat of terrorism at present has become a common concern in the community.

         PBNU as part of civil society has done a lot to prevent terrorism through education program, poverty eradication, and interfaith dialogs, Masykuri said.

         But he added that if the government was less optimal in dealing with economic imbalance, injustice, and other political participation, then the threat of terrorism would remain a serious problem in the country.

         Adrinus Meliala, a noted criminologist from state University of Indonesia, expressed support if the government wants to form a national anti-terrorism body to synergize terrorism handling in Indonesia.  "This is big progress. However, it is still being considered whether it will be formed into a committee or a division at a preventive level. So far the concept of strategy is still unclear," Adrianus Meliala said.

           Adrianus said the body would function more like an intelligence analyst specializing on terrorism. It also involves analysis, intelligence and combat but will not only be a special detachment but it also has a military unit with special characteristics, he said.

         "Like in the air force we have 'Paskhas' (special unit), in the navy, the marines unit, and in the army 'Kopassus'. So it is hoped its movement will be more harmonious," he said.

    

(T.A014/A/HAJM/15:50/...   )

Senin, 21 Desember 2009

RI NEEDS HARD WORK TO ATTRACT MORE INVESTMENT IN 2010

By Andi Abdussalam

Jakarta, Dec 21 (ANTARA) - Last year's global financial crisis affected almost all the economic sectors of countries around the world, including Indonesia, although here the meltdown was not as disastrous as elsewhere.

         As a result of the economic turmoil, Indonesia's foreign investment in the January-October 2009 period fell 28 percent, though there was a leap in domestic investment by 104 percent.

         Therefore, the Capital Investment Coordinating Board (BKPM) is optimistic  investment will pick up next year. But this of course must be coupled with hard work to promote the country's investment potentials.

         "Indonesia is basically an attractive country to make investment for investors of any country. The investment climate has  improved and one-stop services are being prepared for investors," BKPM Chief Gita Wirjawan said in London recently.

         The Investment Coordinating Board (BKPM) had therefore targeted investment approvals in the country next year to grow 10-15 percent from this year.

         In the first 10 months of 2009, domestic investment jumped 104 percent to Rp30 trillion while foreign investment fell 28 percent to US$10 billion from a year earlier.

        Gita Wirjwan said the value of investment in November and December 2009 would not be much different from that of the same period last year.  According to him, investors had a great interest in investing in the country as reflected in high number of investment proposals submitted to the BKPM.

         The optimism of increased investment next year is also supported by Finance Minister Sri Mulyani who said the relatively better projected economic growth would help boost investment.

         "Investment is closely related to economic prospects. Investors will judge our economic prospects before making their investment," the minister said. Mulyani Indrawati said that the economic growth projection of 5 - 5.5 percent in 2010 would boost investment in the country.

         However, her projection of investment growth next year is relatively smaller than that made by the BKPM. The finance minister predicted next year's investment growth at between 5 and 8 percent. This was lower than the prediction made by the Investment Coordinating Board (BKPM) at 10 to 15 percent.

         She said that if the government was able to maintain the country's socio-political stability next year, investors would see that the national economic conditions would be good and relatively sound.

      "Even though inflation will not be as low as this year, investors would see that the economic growth projection of 5 - 5.5 percent in 2010 is relatively sound," the minister said. The economic growth next year could even reach 6 percent based on an optimistic prediction.

        The economic growth projection of 5 - 6 percent created optimism that would boost investment. "In other aspects, the government would continue to take various steps to remove difficulties and investment barriers," she said.

        Gita Wirawan said that actually the number of investment proposals was big. Yet, the investment realization rate was still low or only one-third of investment proposals, he said.

         "The gap between investment realization and proposals is quite large, namely only 3 of 10 prospective investors realize their investment proposals. It is likely they wait for proper time to invest," he said. He noted that a number of problems related to land clearance, construction permit and other technical permits posed an obstacle to investment.

         In an effort to boost next year's investment, the BKPM would announce the negative investment list (DNI) early in 2010. "It will be announced early next year and any change that would be made in it would be aimed at abolishing uncertainties in investment," he said.

         The change in the negative investment list would be to remove uncertainties and to prevent all matters that could have multi-interpretation. In connection with the investment climate in Indonesia, the BKPM would do its best to achieve its foreign investment target of 15 percent in 2010.

         "We will do our best to achieve the target though it would be not that easy," he said. About 50 percent of foreign investment in Indonesia at present came from Southeast Asian nations.

         "But we will try to increase it by inviting more investment from advanced markets such as the Middle East, Europe, the United States and even Asia Pacific countries," the BKPM chief said.

          Besides, BKPM also set itself a target of increasing domestic investment by 15 percent in 2010. However, all of the attempt to increase investment would need supporting infrastructure facilities.

         After all, infrastructure facilities are main supporters of investment in the country. However, the development of infrastructure itself would need a lot of funds.

         President Susilo Bambang Yudhoyono said in Bali recently that Indonesia needs foreign investment totaling Rp2,000 trillion with half of the amount expected to come from Japan.

         "I hope half of the investment funds will come from Japan, and the rest from other countries," the head of state said at a press conference with Japanese Prime Minister Yukio Hatoyama in Bali recently.

         Based on the estimate of the Indonesian Chamber of Commerce and Industry (Kadin), Indonesia will need a fund of Rp2,855 - Rp2,910 trillion to finance its infrastructure development in the 2010 - 2014 period.

        Owing to the big investment needed to develop infrastructure, the government has to promote its infrastructure development to the private sector as it could only finance 30 percent of the total funds needed for the projects.

        About 70 percent of the infrastructure projects are expected to be financed by private companies, among others through a private public placement (PPP) scheme.

    (T.A014/A/HAJM/15:45/f001)


BANK CENTURY IS THORNY ISSUE IN SBY'S 100 DAY WORK PROGRAM

By Andi Abdussalam

Jakarta, Dec 20 (ANTARA) - Like it or not, the Bank Century case has disturbed President Susilo Bambang Yudhoyono's second-term government especially in carrying out its first 100-day program, and this will likely continue to cost a lot of energy and thoughts even after the end of this year.

        The Yudhoyono-Boediono government has not been able to enjoy a honeymoon in the past 60 days of its administration because many problems have emerged, including the alleged framing issue of the Corruption Eradication Commission (KPK) and the Bank Century case.

        Bank Century which collapsed after its assets worth Rp11 trillion were flown and stashed overseas by its owner, Robert Tantular, has sparked continuous public criticism.

        After all, Vice President Boediono and Finance Minister Sri Mulyani Indrawati have been asked by a special House inquiry committee to temporarily 'resign' from their positions to enable it to get rid of its psychological burden in carrying out its inquiry into the case at hand.

        Boediono was the governor of Bank Indonesia (BI/the central bank) when the ailing Bank Century was bailed out by the government by Rp6.7 trillion late in 2008. Sri Mulyani was then finance minister.

        According to the State Audit Board there were violations had been allegedly committed in the disbursement of the bailout fund. Moreover, the initial bailout amount discussed with the House of Representatives (DPR) amounted to only Rp360 billion - Rp1.3 trillion.

        Thus, the House set up an inquiry committee to probe into the bailout. After a meeting with the State Audit Board (BPK), the committee on Thursday agreed to recommend to the president to suspend Boediono and Sri Mulyani from their posts. Legislators suspect there was foul play in the bailing out process.

        However President Susilo Bambang Yudhoyono who was in Copenhagen to attend the climate change conference said on the sidelines of the event that there was no need to suspend the two, because in this way they would be able to answer questions from the committee.

        According to Chief Economic Minister Hatta Rajasa, the economic team would remain solid even though Finance Minister Sri Mulyani has to face questions from the House Special Committee on the Bank Century case.

        "The economic team remains solid and the finance minister is required to accomplish our national development agenda," Hatta Rajasa said. Suspension is not an option because the finance minister has to continue to focus on her work. "Being non-active is not an option," he said.

        In the meantime, a researcher said the inquiry committee had to work objectively and proportionally. "President Susilo Bambang Yudhoyono has made the correct statement saying that the term 'non-active' is not found in the Constitution and its amendments for the vice president," Indonesian Survey Institute (LSI) researcher Burhanduddin Muhtadi said here on Sunday.

        As to the finance minister, Muhtadi said the request for a non-active status for her was also too premature because she even had not yet bee summoned by the committee and had not yet been investigated.

        Muhtadi said the appeal by the inquiry committee reflected the weakness of the committee members' understanding of the 1945 Constitution and Law No. 39/ 2008 on State Ministers.

        He said that the inquiry committee was driven too much by political interests so that it acted less proportionally and objectively in its investigation into the Bank Century case.

        Secretary Genera of the Indonesian Democratic Party of Struggle Pramono Aung said the inquiry committee was only an appeal or a suggestion, not a decision. An appeal and a decision have different context. If the president decided not to suspend them, there would be no problems because the president has the right to decide it.

        However, according to Anung, the committee's appeal contained moral values because if the president temporarily suspend them it would remove psychological burden for the committee to obtain more information.

        "If the vice president and finance minister are non active, the committee would have no psychological burden to deepen information from them," he said. He said that it was a normal thing for a public figure to be temporarily suspended when he or she would be examined.

        Anung, however, said that he had strong data with regard to the bailout fund.

        "We will focus on how Bank Century could obtain such a large fund and will call for the accountability of those who turned out to be guilty. PDIP will focus on guarding the inquiry committee," he said.

        The more so, some saw an effort to avert the main objective of the committee. Leaders of student organizations grouped in the 'Cipayung Plus Group' said there were efforts to mislead the House Inquiry Committee from its main objective.

        "We see there is an effort to mislead the inquiry committee from people's demand. People have wanted that the inquiry committee would work in disclosing various crimes on the state money," General Chairman of the Islamic Students Association (HMI) General Chairman Arib Musthopa said.

        He said that the discourse whether or not Vice President Boediono and Finance Minister Sri Mulyani could be suspended was actually a systematic effort to divert public attention and to mislead the inquiry committee from its initial objective. (T.A014/a/H-NG/a014) (T.A014/A/A014/A/A014) 20-12-2009 22:32:05



GOLKAR VOWS TO UNCOVER BANK CENTURY CASE

By Andi Abdussalam


        Jakarta, Dec 10 (ANTARA) - Golkar, a political party allied with the ruling Democrats and whose cadre chairs the House Inquiry Committee, vowed on Thursday to have the controversial Bank Century bailout case uncovered all-out.

        "The Golkar Party is determined to completely uncover the Bank Century bailout case so that the public will be able to see where the flows of the funds have gone to and to see if any procedural mistakes had taken place," Golkar Chairman Aburizal Bakrie said.

        Golkar Party cadre Idrus Marham was recently named chairman of a special House inquiry committee charged with the task of investigating alleged irregularities in the Rp6.7 trillion bailout of Bank Century.

        In this case, amid pessimism that the committee would perform well, the Golkar Party asked Idrus Marham not to have hesitate to uncover the case completely.

        "We have instructed him to reveal the real data so that a decision would not be taken based on slander," Aburizal Bakrie said after installing a chairman of the Golkar Regional Executive Board for West Java on Thursday.

        He also called on Idrus not to be afraid and bow to pressures, both pressures which would try to hamper the investigation or pressures in the form of slander. "I told him about this, especially with regard to his capacity as the House Inquiry Committee chairman," Aburizal Bakrie said.

        The Golkar chairman said he fully supported Idrus Marham's chairmanship of the special committee. "Let's pray for him so that others would also believe him and give him a chance. We should not speculate because speculations are not good," he added.

        Aburizal Bakrie said he was convinced that the Bank Century case could be disclosed. Therefore, he asked all parties to pray for him and not to have a prejudice against (his commitment). "We have to be optimistic in this life and we are confident the case can be solved," he said.

        In the meantime, former Golkar chairman Jusuf Kalla said he was confident Idrus Marham would perform well. "I am confident that Idrus Marham is able to do the job well. After all, the inquiry committee is being led by a collective leadership so that the leaders and members would provide mutual help and inputs," Kalla who is also a former vice president said.

        He said that he was also ready to provide explanations if he was invited by the inquiry committee. Yet he disagreed with certain quarters' view that he was a "crown witness" in the Bank Century case. "A lot of people could be summoned to testify in the case but no one could be called a 'crown witness'," Kalla said.

        However, he expressed optimism that the alleged corruption in the Bank Century bailout will be disclosed transparently. "I am certain it will be disclosed transparently because that is what President Susilo Bambang Yudhoyono and Vice President Boediono also want," Kalla said.

        Kalla said the Supreme Audit Board (BPK) and the House of Representatives (DPR) were also consistent in wanting to see the Bank Century case settled soon. "BPK and DPR have so far been consistently making every effort to deal with the case, and therefore I am optimistic that it can be disclosed transparently," Kalla said.

        Bank Century almost collapsed some time ago when its financial assets were taken overseas by major share-holder Robert Tantular. In order to help the ailing bank, the government provided it with bailout funds amounting to Rp6.7 trillion without the approval of the DPR.

        Legislators believed the government's decision to inject Rp6.7 trillion into the bank last year was a mistake and had the potential to cause a great loss on the state. After all, the State Audit Board (BPK) in its investigative report said there was an indication of irregularities in the Bank Century case.

        Thus, the House of Representatives agreed to set up a special committee to probe into the case. The 30-member House Bank Century Inquiry Committee which was formed on Dec 2 on Friday night last week elected Idrus Marham of the Golkar Party Faction as its chairman.

        However observers have doubts about the committee's commitment. Political observer Arbi Sanit of the University of Indonesia (UI) said he doubted whether the committee would perform well and effectively because it was led by a chairman who came from a party that had signed a political contract as a government supporter.

        Muhammad Idrus Marham of the Golkar Party was named its chairman while Golkar is one of the political parties which coalesced with the ruling Democratic Party in the House of Representatives.

        "As an executive of the party, though there is a difference of opinion, he would not adopt a stance that is different from that of the government," Sanit said.

        A similar view was expressed by Burhanuddin Muhtadi, a researcher of the Indonesia Survey Institute (LSI). Muhtadi said he was pessimistic that the committee would be able to reveal the truth about the Bank Century bailout case. Financial scandals which implicated political brokers involved many political parties where cartel politics played an important role.

        "Cartel politics leads lawmakers to mutually provide protection for each other ," Muhtadi said.

        However, according to Aburizal Bakrie, Golkar was determined to uncover the case.

        "I have already ordered Idrus and other Golkar cadres not to hesitate to act to solve the Bank Century case. They should not also hesitate to summon those linked to the case," he said.

        He said however that Golkar had not advised its members in the House to put the government or the president in a fix.

        "Golkar supports the government and it only hopes that the case could be immediately settled so that the government could run well without any hindrances and with support from all parties,"he said.***4*** (T.A014/A/HAJM/A/S012) 21:10/.... ) (T.A014/A/A014/A/S012) 10-12-2009 22:21:28

OBSERVER PESSIMISTIC ABOUT HOUSE INQUIRY

By Andi Abdussalam


        Jakarta, Dec 6 (ANTARA) - The House Special Inquiry Committee that will investigate a controversial Rp6.7 trillion bailout provided by the government for Bank Century might not work maximally, observers say.

        Most of the lawmakers grouped in the 30-member inquiry committee came from political parties which have signed political contracts of support with the government. After all, the political parties are involved in cartel politics that enabled them to seek and provide mutual protection, they say.

        "I doubt whether the committee would perform well and effectively because it is led by a chairman who comes from a party that has signed a political contract as a government supporter," Arbi Sanit, political observer of the University of Indonesia (UI) said on Sunday.

        Pessimism is also expressed by Burhanuddin Muhtadi, researcher of the Indonesia Survey Institute (LSI). He said that political parties in Indonesia were accustomed to cartel politics.

        "I am pessimistic about the fate of the committee, even as of the very beginning, because many political parties in Indonesia had been trapped the cartel politics," Muhtadi said.

        The House of representatives formed the inquiry committee on Friday after hearing a report of the State Audit Board (BPK) on its investigative audit of Bank Century that there was a suspected effort to engineer additional bailout funds (PMS) for the bank.

        The case came up to the surface when Bank Century almost collapsed some time ago after its assets worth Rp11 trillion were transferred and stashed overseas by major shareholder Robert Tantular.

        In order to help the ailing bank, the government provided it with bailout funds amounting to Rp6.7 trillion without the approval of the House of Representatives (DPR).

        Arbi Sanit said that he had doubts whether the newly formed House Inquiry Committee would perform maximally in probing into the Bank Century bailout scandal because most of the committee members were political parties which had signed contracts with the government.

        The 30-member committee appointed Muhammad Idrus Marham of the Golkar Party in its meeting on Friday (Dec 4.). The Golkar Party is one of the political parties which coalesced with the ruling Democratic Party in the House.

        "As an executive of the party, though there is a difference of opinion, he would not adopt a stance that is different from the government's," Sanit said. He predicted that the voice of the parties in coalition in deciding the result of the inquiry committee, if it reached through a voting mechanism, would be inclined to support the government.

        If the final results of the inquiry committee had been decided in this way, the public hope for the revelation of the real problem with the Bank Century case would not be satisfied, he said.

        The same voice was also aired by LSI researcher Burhanuddin Muhtadi. He said he was pessimistic that the House Special Inquiry Committee would be able to reveal the truth with regard to the Bank Century bailout case.

        "I became pessimistic about the committee since the very beginning because the political parties in Indonesia had been trapped in cartel politics," he said.

        He said that even if it was chaired by lawmaker Gayus Lumbuun of the Indonesian Democratic Party of Struggle (PDIP) faction, the House Inquiry Commission would still not be free from political intrigues.

        "This is because each of the political parties in the House already has the ace against their political opponents," he said.

        According to Muhtadi, a PDIP cadre was also implicated in a bribery case with former Bank Indonesia (BI/central bank) senior deputy governor Miranda Goeltom.

        "This is a part of old cases with Indosat, the sale of a VLCC tanker, and presidential instruction (issued by then President Megawati Soekarnoputri) No. 8 / 2002 that stopped the investigation of at least ten suspects in the BI liquidity assistance case," Muhtadi said.

        The presidential instruction arranged the release and discharge which stated that debtors of the National Bank Restructuring Agency (BPPN) were exempted from debts.

        Muhtadi said Golkar also faced the same thing where many old cases involved its cadres and had the potential to be used as a means of lobbying a political barter. The financial scandals which implicated political brokers involved many political parties. They usually kept silent if there was a 'just' distribution of money interest based on the proportion of their seats in the House of Representatives (DPR).

        "Cartel politics leads lawmakers to mutually provide protection such as those in the cases of Bulogate 2 and Bank Bali sometime in the past," Muhtadi said. Thus, the only most probable achievement the House Inquiry Committee could make is to find a scapegoat or to determine that the Bank Century case is a civil case, he said.

        He said that judging from the composition of the inquiry committee leadership and the interest of the House factions, there was a big possibility that the inquiry would run aground before reaching its goals.

        In the meantime, a number of student activists over the weekend also expressed fear that the House inquiry into the Bank Century case could run aground. "There is an indication the inquiry will run aground before it reaches its objectives," Bambang M Fajar, chairman of the Muslim Student Association (HMI), said.

        He said many members of the special inquiry committee were not the initiators of the petition. They even fought to chair the committee while they actually had given little to support the handful of legislators who had led the House inquiry initiative since the beginning.

        The same concern was also expressed by Heni Lestari, presidium chairwoman of the Women Action Wing of the Indonesian Nationalist Student Movement (GMNI).

        She regretted the success of certain political parties in including their cadres in the committee. "Therefore, there is no choice for us, elements of all community movements, but to launch mass rallies to guard the investigation process of the House committee," she said.***1*** (T.A014/a/H-NG/a014) (T.A014/A/A014/A/A014) 07-12-2009 01:06:42



POWER SHORTAGE FEARED TO AFFECT INDUSTRIES

By Andi Abdussalam


        Jakarta, Dec 4 (ANTARA) - The shortage of electricity supply and the frequent power outage and rotating blackouts are feared to affect industrial activities and slow down investment.

        Therefore, the House of Representatives (DPR) urges the government to take the necessary steps immediately to solve the power supply shortages, and seek short, middle and long term solutions.

        The most urgent step the government has to take is to find short-term solutions to the frequent electricity outage and rotating power cuts.

        "It is important to overcome the problem quickly because disrupted power supply will hamper industries, including small-scale industrial enterprises in their production activities," House Speaker Marzuki Alie said here on Friday.

        The House has been accommodating complaints lodged by the public against disrupted power supplies as a result of damage to power generators that also disturbed power supply to a number of industrial centers.

        Business players have been complaining of late and are worried about the power shortage that could affect their investment activities and production capacity. After all, the public are also seemingly of the view that the government and state-owned power utility firm PLN might face problems with securing investment activities in Indonesia if they are not able to solve the power crisis.

        It seems now that PLN, due to its limited capacity, is no longer able to meet the people's need for electricity which continues to increase by six and eight percent, or by 2,000 to 3,000 megawatts per annum.

        The increase has caused a power deficit which leads to power outages and rotating blackouts in many regions. In October 2009, for example, PLN suffered a power deficit of 460.2 MW. The data showed that of the 24 power distribution systems, 11 experienced a power deficit, two were under an alert status and the other two were in a normal condition.

        In 2010 alone, PLN will need at least Rp32 trillion to improve the national electricity supply, and also needs to offer a chance to other parties to help develop the country's electricity sector.

        In response to the problem of power outages which had sparked complaints from the consumers, households and industries, President Susilo Bamang Yudhoyono summoned the ministers and officials concerned last month to discuss the problem.

        The steps the government is considering include efforts to restructure PLN's management by replacing its president director and to raise electricity prices (TDL).

        "We have conducted a fit-and-proper test this week at the Ministry of State Enterprises (BUMN) and will hand over the results to a selection team (TPA) next week," State Enterprises (BUMN)Minister Mustafa Abubakar said here on Friday.

        The names of prospective successors of PLN's president director Fahmi Mochtar are to be submitted to President Susilo Bambang Yudhoyono next week. The president is the chairman of the TPA team whose members are the minister for energy and mineral resources, the finance minister and state enterprises minister.

        Two of the prospective successors are two from PLN itself, while the third one is an outsider, namely Dahlan Iskan, chief executive officer of the Jawa Pos Group. But up to Friday, the names from PLN itself were still kept a secret.

        "We can reveal the name of Dahlan because the media had placed him under their spotlight. However, we cannot yet disclose the two names," Minister Abubakar said.

        Dahlan Iskan is known as not only as owner of a media business group but also as an independent power producer (IPP) in Kalimantan. It seems however that he might face opposition from PLN employees who wanted the state firm to be led by a person from among themselves.

        Besides replacing the PLN top post official, the government is also considering raising the TDL by 10 to 20 percent.

        "The government is considering two things in raising the TDL, namely that the rates not only be able to provide a profit for the survival of PLN, but also reflects the purchasing power of the people," Energy and Mineral Resources Minister Erwin Saleh said.

        He said that TDL raise by 10 to 20 percent had been set by the government and the House of Representatives (DPR). The formulation of the TDL is now under intensive discussions by, among others, expert staff of the energy and mineral resources ministry, the electricity director general and first echelon officials of the finance ministry.

        "We are now discussing its formulation, which includes how the new rates should be fixed and when it would be imposed," he said. If the rates are too low, PLN could not develop it because it would affect the lowest layers of the people.

        "So, we will continue to financially protect the weak consumers, but would not spoil the big customers," the minister said.***2*** (T.A014/a/H-NG/a014)

BANK CENTURY NEEDS QUICK COURT SETTLEMENT

By Andi Abdussalam


        Jakarta, Dec 2 (ANTARA) - The Bank Century case should be investigated and taken to court as soon as possible so that the issue which involves a bailout of Rp6.7 trillion will not be used by irresponsible parties to spread slander and mutual suspicions.

        President Susilo Bambang Yudhoyono himself said he wanted the legal process involving Bank Century executives to be completed as soon as possible so that justice could be upheld.

        "I have told government officials and law enforcers that I want the legal process against the Bank Century executives to be expedited. If two of them have fled, they have to be tried in absentia," the president said when spoke to the 23rd Women's Congress on Wednesday.

        The president made the remarks only one day after the House of Representatives (DPR) approved a proposal of over 500 legislators to use their inquiry right to investigate the bank's bailout.

        The House itself will form a special inquiry committee on Friday (Dec. 4, 2009) to look into the bailout after the State Audit Board (BPK) had reported it suspected there had been an effort to engineer additional bailout funds (PMS) for the bank.

        There had been allegations that President Yudhoyono's electoral campaign team was one of the parties had received funds from the flows of the bailout transfers. The president said that the allegation was a character assassination attack on his electoral campaign team.

        "There is a campaign of exaggerated slander and character assassination. It is said an amount of Bank Century funds was transferred to the SBY presidential election success team. I can say now none of my electoral success team members had desired, much less received a single rupiah from an illegal fund," the president said.

        Therefore the president called for immediate investigation and legal settlement of Bank Century so that its case would be brought to light and existing suspicions would be eliminated.

        "I want the handling of this case to be accelerated and hopefully with the support of all sides, the court proceedings will not last too long so that a better solution to solve all this could be made," the president said.

        This is to avoid further slander. On Tuesday, Chief Security Minister Djoko Suyanto reported a non-governmental organization to the Jakarta Police for defamation with regard to the Bank Century case.

        On the occasion, Djoko Susanto was accompanied by Coordinating Minister for Economic Affairs Hatta Radjasa, Sports and Youth Affairs Minister Andi Mallarangeng and lawyer Amir Syamsuddin.

        The names of Djoko Suyanto, Hatta Radjasa, Andi Mallarangeng (Yudhoyono's electoral campaign team members) and a number of institutions and political parties were mentioned by the West Java - Jakarta Activists Network as the parties that had received Rp1.8 trillion in Bank Century funds.

        According to Yudhoyono, his electoral campaign team was currently the target of a character assassination attack that had gone too far in connection with the Bank Century bailout case.

        He said that Indonesia as a law-abiding nation should uphold justice in its efforts disclose the truth, not through the slander now being spread by irresponsible parties.

        "We want all this to be brought to light. Let us make everything clear. The House of Representatives will use its right of inquiry to follow up the findings of the State Audit Board (BPK). That would be good. Make everything clear. So, please disclose the truth and the facts but don't disseminate slander," the president said.

        Yudhoyono said he wanted the legal process involving Bank Century executives to be completed as soon as possible so that justice could be upheld. "I want the handling of this case to be accelerated and hopefully with the support of all sides, the court proceedings will not last too long so that a better solution to solve all this could be made," the president added.

        The president said that the government had also asked that Bank Century assets flown and stashed in a number of countries worth Rp11 trillion should be frozen and be returned to the state and people.

        The case came up to the surface when Bank Century almost collapsed some time ago after its assets worth Rp11 trillion were flown and stashed overseas by major share-holder Robert Tantular. In order to help the ailing bank, the government provided it with bailout funds amounting to Rp6.7 trillion without the approval of the House of Representatives (DPR).

        Besides a special House inquiry committee, the case will also be investigated by the Corruption Eradication Commission (KPK).

        The KPK has asked for cooperation from the Financial Transactions Reporting and Analysis Center (PPATK) to help investigate alleged crimes in the bank. According to Acting KPK Chief Tumpak Hatorangan Panggabean, his commission had written to the PPATK with regard to the cooperation to investigate the case.

        "Yes, we have. I signed the letter yesterday," Tumpak said on the sidelines of a national conference on corruption eradication efforts.***4*** (T.A014/A/HAJM/19:55/A/O001) (T.A014/A/A014/A/O001) 02-12-2009 20:04:21

CORRUPTION RIFE IN GOOD, SERVICE PROCUREMENTS

By Andi Abdussalam

  Jakarta, Dec. 3 (ANTARA) - The government's goods and services procurement is the most vulnerable area for corruption.

        In this sector, corrupt officials have stolen Rp689.19 billion or about 35 percent of the Rp1.9 trillion worth cases handled by the Corruption Eradication Commission (KPK) since 2005.

        "The KPK has since its establishment recorded a total of 50 corruption cases in the procurement of goods and services for the government," Finance Minister Sri Mulyani Indrawati said on Thursday.

        Based on the KPK report, the corrupted funds accounted for 35 percent of the total value of the goods and services procurement projects.

        According to the finance minister, up to November 2009, the government has recorded 2,100 complaints from members of the public about irregularities in government goods and services procurement.

        "So far, most of the corrupt acts in goods procurement were knowingly or unknowingly committed by state officials because many of them were not aware of existing regulations on procurement procedures," the minister said.

        Acting chief of KPK Tumpak Hatorangan Panggabean said state money corrupted in goods and service procurements during the 2005 - 2009 period reached a total of Rp689.19 billion.

        "The figure is based on data obtained from cases handled by KPK from 2005 to 2009," Tumpak said on the sidelines of a national conference on corruption eradication in Indonesia.

        The KPK data showed that the Rp689.19 billion was corrupted in the procurement of various goods and services worth Rp1.9 trillion. The losses which were suffered by the state were corrupted because agencies or bodies carrying out the good and service projects were appointed directly.

        The state's losses due to direct appointment reached Rp647 billion or 94 percent of the total of corrupted money, Tumpak said. The remaining six percent, or 41.3 billion was corrupted through price markups. The state losses were calculated from corruption cases on which the Supreme Court had already issued a verdict.

        In an effort to reduce corruption cases in the goods and services procurement, the Finance Ministry cooperates with the KPK, Judicial Commission (KY) and Financial Transactions Reporting and Analysis Center (PPATK).

        The cooperation was marked with the signing of a Memorandum of Understanding (MoU) on Goods and Services Procurement through an Electronic Service System (LPSE) on Thursday.

        The agreement is aimed to increase efficiency, effectiveness, transparency and sound competition as well as accountability in the procurement of goods and services.

        Finance Minister Sri Mulyani hoped that the procurement of goods and services through the electronic system would provide benefit particularly in reducing collusion and corruption practices in the procurement of goods and services for the government.

        She said, many of the people who had lodged complaints believed willingness to pay bribes was a decisive factor in winning project tenders.

        So, she hoped that with the existence of LPSE, there would be greater efficiency, effectiveness, accountability, transparency and sound competition in the procurement of goods and services.

        As an example, she pointed out her ministry's LPSE center which was able to increase efficiency by 18.42 percent or Rp220.23 billion of a total package worth Rp1.08 trillion.

        In the meantime, PPATK chief Yunus Hesein said that as a budget user his agency still harbored a fear to carry out auctions for the procurement of its goods and services procurements.

        "It seems I am still afraid because I don't understand much about goods and services procurements," he said.

        According to Yunus, the value of his agency's procurement of goods auction in 2010 would likely increase four-fold of that in 2009. "Possibly because we have a plan to establish the disaster recovery facility," the PPATK chief said.

        He said that in the auction process carried out so far at the PPATK, a number of parties who lost the tenders lodged protests while actually the auction had been carried out based on the rules.

        "Some filed a protest, they even lodged the protest to the House of Representatives (DPR) whereas actually these projects have nothing to do with collusion," he said.

        He hoped that the auction of goods and services procurement projects through the electronic system would improve the government's procurement of goods and services system.

        Therefore, he hoped that the procurement through the electronic service system would be able to reduce collusion and corruption practices because it would be more transparent, consistent and accountable in nature.

        Earlier, the PPATK had disclosed that up to November 30 this year it had handed over 1,071 suspicious transaction reports to law enforcers. "We passed on to law enforcers more than 1,000 suspicious financial transaction cases," PPATK Head Yunus Husein said.

        Based on data and preliminary criminal analyzes, most of the cases were believed to be corruption-related. Of the 1,071 suspicious transactions, a total of 425 were suspected to be related to corruption, 344 to deception, 4 to banking crimes, 35 to narcotics trade, 31 to embezzlement, 30 to document forgery, 24 to bribery, 22 to terrorist funding and several other types of crime.

        Yunus said that this year the number of suspicious transactions had risen compared with that in 2008. The PPATK has recorded 21,625 suspicious financial transactions in the January 1 - November 30, 2009 period.

        If compared with the figure in 2008 (10,432 cases), the number of suspicious transactions during eleven months of 2009 had increased two-fold. "This year, the number of suspicious transactions was recorded at an average of 1,968 per month," he said. ***4*** (T.A014/A/HAJM/19:05/a014) (T.A014/A/A014/A/A014) 03-12-2009 19:32:59



HOUSE APPROVES BANK CENTURY MOTION

By Andi Abdussalam


        Jakarta, Dec 1 (ANTARA) - A special committee to investigate the Bank Century case will be officially formed later this week after the House of Representatives (DPR) at a plenary session on Tuesday approved a legislators' motion to use their right of inquiry on the ailing bank's bailout with Rp6.7 trillion.

        "The House will set up the special inquiry committee on Friday (Dec. 4, 2009). It will be composed of 30 House members from various party factions," House Speaker Marzuki Alie said on Tuesday.

        The House speaker said he hoped all House factions would have submitted the names of their representatives for the inquiry committee before December 4.

        The composition of the 30-member inquiry committee would be based on the proportionality principle with the number of faction representatives in the committee to be determined in accordance with the size of the factions concerned.

        The event marks the first time for the House of the 2009-2014 period to exercise its right of inquiry. The House of the 2004-2009 period used this right several times on different issues but the proposal for an inquiry into the Bank Century case now was supported by a record number of legislators - 503 out of the House's 560 members.

        Initially, the number of lawmakers supporting the initiative was only between 200 and 300, but after the ruling Democrat Party expressed its support for the proposal, the number of supporters rose to over 500.

        With the overwhelming support, deliberations on using the House's right of inquiry on the Bank Century case at Tuesday's House plenary session proceeded smoothly and at 11.25 am, the session's chair officially declared the proposal approved.

        Based on the proportionality principle, the Democrat Party (PD) would amongst others be represented in the committee by eight cadres, Golkar by six cadres, the Indonesian Democratic Party-Struggle (PDIP) by five, the National Mandate Party and Prosperous Justice Party by three cadres each, the United Development Party (PPP) and National Awakening Party (PKB) by one cadre each.

        The House will form the inquiry committee after hearing a report by the State Audit Board (BPK) on its investigative audit of Bank Century which indicated a suspected effort to engineer additional bailout funds (PMS) for the bank.

        "The Rp6.7 trillion bailout funds were disbursed in four stages. But the disbursement of the second phase worth Rp2.2 trillion was done without consultations with the Coordination Committee (KK). This was against LPS Regulation No. 3/PLPS/2008," Hadi Poernomo said after handing over the BPK audit report on Bank Century to House Speaker Marzuki Alie last month.

        Bank Century almost collapsed some time ago when its assets were flown overseas by major share-holder Robert Tantular. In order to help the ailing bank, the government provided it with bailout funds amounting to Rp6.7 trillion without the approval of the House of Representatives (DPR).

        In order to carry out its inquiry, the special committee is expected to examine the flow of the bailout funds through the Financial Transactions Reporting and Analysis Center (PPATK).

        In this case, the PPATK has asked for a legal guarantee so that in providing the formation needed it would not breach any law. "We need a strong and clear legal basis in providing such information," PPATK Chief Yunus Husein said here on Tuesday.

        He said in providing information needed for the implementation of a House inquiry into the Bank Cenutry bailout, he had never received any pressure from any body or any party.

        This does not means that the agency will be hampering the investigation. PPATK has demonstrated that it fully supported the auditing of Bank Century case by the State Audit Board (BPK) and provided with the information from the beginning.

        Therefore, PPATK also supported the inquiry by the House of Representatives (DPR) based on the regulations in force. Husein however denied reports that the bailout funds for Bank Century had been flown to certain individuals and institutions.

        PPATK has no such information and has never provided information about funds flows to any one. Husein said that the people should understand that information owned by PPTAK was confidential in nature based on articles 10A and 17A of Law No. 25 / 2003 on Money Laundering.

        In the meantime, the Indonesian Legal Aid Institute Foundation (YLBHI) has called for the settlement of the Bank Century bailout case in court to prevent it from dragging on indefinitely.

        YLBHI board chairman Patra M Zen said by settling the Bank Century case in court, many problems in the country would be solved, and there would be an indicator of the success of the law enforcement, auditing and supervisory agencies in investigating financial transactions.

        In addition, completing the case in court would also be a test for the government's commitment to upholding the truth and meeting the public's sense of justice, M Zen said.

        "If this case is allowed to drag on, people's suspicions would only grow and public trust in the commitment of the SBY-Boediono government would drop. The market is also very sensitive to the Bank Century case and therefore it is hoped the matter will be solved soon," he said.

        On Tuesday, as the House was holding a plenary to decide whether it would approve the legislators' motion or not, students grouped in the Indonesian Islamic Students Association (HMI) of Subang in West Java urged the House to expedite the establishment of a House special inquiry committee to probe Bank Century.

        "The committee must be composed of legislators who have good integrity and capacity to expose the Bank Century case," field coordinator of the rally Bani Nur said.***1*** (T.A014/A/HAJM/A/S012) 20:04/.... )

        (T.A014/A/A014/A/S012) 01-12-2009 20:41:39



INDONESIA INTENSIFIES EFFORTS TO FIGHT AIDS

By Andi Abdussalam


        Jakarta, Nov 30 (ANTARA) - As HIV/AIDS cases continue to increase in Indonesia, the government on Monday renewed efforts to fight the infectious disease as part of the activities carried out to observe World AIDS Day, December 1.

        The Health Ministry, the National AIDS Commission (KPA), the Family Planning Coordinating Agency (BKKBN) and a number of condom producing companies signed an agreement to fight HIV/AIDS.

        Official records mentioned that there are now 298,000 HIV/AIDS sufferers in Indonesia, but the real figures may be much higher than official figures, which is often described as the tip of the iceberg.

        Even though the number of new cases in the country continues to increase, the government is optimistic it could be offset with a serious effort and close cooperation with various agencies and the people as a whole.

        Coordinating Minister for People's Welfare Agung Laksono said he was optimistic the government would be able to minimize HIV/AIDS infection by 1.2 million people in 2015. "Before 2015, with the government efforts we hope we can minimize the HIV/AIDS infection by up to 1.2 million people, he said when launching a National Condom Week (PKN) here on Monday.

        He said that among the efforts carried out by the government to prevent the spread of the contagious disease was to engage in sustainable partnership cooperation through a national movement for creating healthy people, away from the HIV/AIDS threat.

        The efforts also included promotional and preventive measures through the PKN activities where people were informed about how to use condoms as a means of minimizing the spread of HIV. The government also launched curative approaches through conducting medicinal treatment and research on advanced HIV/AIDS cases in Indonesia.

        Agung Laksono called for regional governments' commitment to supporting the steps taken by the central government to reduce the spread of HIV/AIDS in the country.

        Secretary of the National AIDS Commission (KPA) Secretary Nafsiah Mboi said KPA in cooperation with its branches in provinces and districts supported the government's efforts to prevent the spread of the disease which has shown signs of increasing.

        "We support the government efforts to fight AIDS in an effort to achieve the sixth aim of the Millennium Development Goals, namely increasing the people's health standard through reduction of HIV/AIDS infection cases," she said

        The government admitted that cases of new contraction continued to increase. "About 298,000 people in Indonesia are now suffering from HIV/AIDS," Agung Laksono said, Agung, who is also chairman of the National AIDS Commission (KPA), made the remarks when he opened the National Condom Week at the University of Indonesia.

        Based on data at the Ministry of Health, up to September 2009, a total of 18,422 AIDS carriers were recorded in Indonesia. At present almost all provinces in Indonesia have AIDS cases. AIDS cases are to be found in more than half of the number of districts in the country.

        About 49.57 percent of AIDS cases involved people in the 20-29 years age group, 29.84 percent in the 30-39 years age group and 8.71 percent occurred in the 40-49 years age group. The average HIV/AIDS incidence in Indonesia is 8.15 carriers in every 100,000 people.

        The highest number of cases occurred in five provinces, namely Papua 17.9 percent of the national figure, Bali 5.3 percent, Jakarta 3.8 percent, Riau Islands 3.4 percent and West Kalimantan 2.2 percent of the overall number in the country.

        This fact means there is a serious threat to the existence of the present younger generation in the country. Therefore, the government and the non-governmental organizations, higher educational institutions and the people as a whole should cooperate actively in launching a national movement for making people healthy and knowledgeable for preventing the spread of HIV/AIDS.

        According to 2008 estimates by UNAIDS, the HIV epidemic in Indonesia is among the fastest growing in Asia. The epidemic is concentrated primarily among injection drug users (IDUs) and their sexual partners, people engaged in commercial sex and their clients, and men who have sex with men.

        The signing of the agreement is among the efforts being made to fight the spread of the disease. After all, it was done during the launching of a National Condom Week (PKN) organized in connection with World AIDS Day on December 1.

        On the occasion, Agung Laksono said that the Ministry of Health put an estimate that figure of HIV/AIDS cases in Indonesia up to this year had reached 289,000 carriers.

        "This estimate will continue to increase because it is predicted that about 5 people are infected with the virus every one minute," he said.

        He said that in order to overcome the problem the government had launched preventive and curative approaches. "Socialization and campaign are carried out through the PKN with the high-risk groups such as those who often make sexual contact as the main targets," he said.

        In the meantime, the Indonesian HIV Carriers Network (JHOTI) said HIV/AIDS carriers in Indonesia are still facing discrimination. "The problems they face is individual discrimination as well as discriminatory policies," Chairman of JHOTI for East Nusa Tenggara (NTT) Maxi Mitan said.

        He said that the voices of the infected people had not yet been maximally heard in formulating efforts to control the disease so that HIV/AIDS cases continued to expand in the country. Even, carriers still faced problems with obtaining access to health services, a fact that their rights were still ignored.

        The voices of the infected persons could only be heard if they were united. Only with a united voice could sufferers strengthen their bargaining position against policy makers, Mitan said.

        This idea has given birth to the JHOTI body. "The establishment of this body was declared in the first congress of HIV/AIDS carriers in Jakarta on July 8, 2008," Mitan said.***3*** (T.A014/H-NG/H-YH) (T.A014/A/A014/A/H-YH) 30-11-2009 22:41:02

ANTABOGA ASSETS, BANK CENTURY NEED SEPARATE PROBING

By Andi Abdussalam

Jakarta, Nov 28 (ANTARA) - Antaboga Delta Sekuritas investors, whose money has been stolen and stashed abroad by the security company's owner Robert Tantular, could now hope with worries for the return of their money.

        The assets worth Rp11.6 trillion , whose withdrawal caused the collapse of Bank Century, have reportedly been frozen overseas.

        According to a legislator, the assets have reportedly been frozen so that what remains to be done is to make administrative arrangement before the funds could be taken home and be returned to the Antaboga investors.

        "With Assets worth Rp11 trillion, I think the Antaboga investors should not worry about their money. What remains to be done is to settle administrative matters, take back the assets and paid them," Achsanul Qosasih, deputy chairman of the House of Representatives (DPR)'s Commission XI for financial affairs, said over the weekend.

        The Antaboga case of asset flight to overseas has caused the collapse of Bank Century through which Antaboga has sold its security products to its customers.

        Ailing Bank Century was later safeguarded by the government through the Deposit Insurance Agency (LPS) with a bailout fund amounting Rp6.7 trillion. The bailout sparked public criticism and questions as it was disbursed without approval of the House of Representatives (DPR).

        The bailout case would be looked into by a House inquiry committee that will be formed next month while assets flown abroad would be investigated by police and the Attorney General's Office (AGO).

        Therefore, the Ministry of Foreign Affairs, Attorney General's Office (AGO) and Police must be able to retrieve immediately the assets stashed by Robert Tantular abroad.

        "The assets worth Rp11 trillion and deposited by Robert Tantular in several countries should be traced and retrieved so that Antaboga Delta Sekuritas investors' stolen money could be refunded," Achsanul Qosasih said.

        The embezzlement case of Antaboga Delta Securitas investors' money should be given a serious attention and a special treatment. Its handling must be separated from the bailout case because embezzlement is a crime.

        "This is a clear deception committed by Rebert Tantular, former major share holder of Bank Century, through his security company Antaboga," Qosasih, a politician of the ruling Democratic Party, said.

        He said that the case of Antaboga customers could not be settled with a bank case approach, much less if it is handled together with the settlement of Bank Century.

        "So, the steps to settle Antaboga investors' problem is to freeze Robert Tantular's assets overseas, bring them back to Indonesia and pay the investors' money," he said.

        The attorney general's office itself has stressed that it would focus on the criminal aspect of Bank Century. It will only handle Bank Century assets flown and stashed overseas worth Rp11.6 trillion.

        "We are still focusing on Bank Century funds that have fled abroad," Junior Attorney General for Special Crimes Marwan Effendy said. He said the AGO would only handle embezzled assets whereas the bailout funds provided to the bank did not involve any criminal elements.

        After all, according to the Deposit Insurance Agency (LPS), the bailout funds worth Rp6.7 trillion provided for Bank Century are taken from the premiums of its members.

        Premiums paid by LPS member banks since September 2005 have totaled Rp12.5 trillion while its assets have accounted for Rp18 trillion. "So, if the amount is deducted by Rp6.7 trillion, the government's money would still remain intact," Executive Chairman of LPS Firdaus Djaelani said. Moreover, the government's capital participation in the LPS is only worth Rp4 trillion.

        So, the main problem that has to be solved immediately is the assets flown and stashed overseas by Robert Tantular.

        In this case, Qosasih said, the House Commission XI appealed to the people who were cheated by Antaboga Delta Sekuritas to do their best in helping the attorney general's office, the foreign ministry and police so that the assets stashed abroad could be sent back to Indonesia.

        On the other hand, he said, the Bank Century bailout case should be handled by the House through an inquiry committee, which is expected to be established early in December 2009.

        He said that the Bank Century and Antaboga cases should not be mixed up. Bank Century is not responsible for Antaboga investors. Antaboga investors only transferred their funds through Bank Century because Antaboga sold its products through the bank.

        "The funds are not deposited at Bank Century but were transferred through the bank to Antaboga, which is as a security firm. So, the case of Antaboga and Bank Century should be separated ," Qosasih said.

        He said that priorities should be given to the settlement of Antaboga case, and in this case the House inquiry committee could help investigate and solve the problem only in administrative form.

        In the meantime, Eko B Supriyanto, director of InfoBank Research Bureau, has suggested that Antaboga investors lodge a lawsuit against Antaboga Delta Sekuritas.

        They cannot ask their funds to LPS or to Bank Mutiara (Bank Century) because LPS only pays compensation for a banking product. Products guaranteed by LPS are only bank products such as savings, deposit and demand deposit. After all, products issued by Antaboga Delta Sekuritas are non bank ones.

        "Because they are non-banking products, Antaboga investors' funds are not included in the LPS guarantee scheme. As a consequence, the bank and LPS may not refund the investors money invested with Antaboga," he said.***4*** (T.A014/A/f001) (T.A014/A/A014/F001) 28-11-2009 14:14:36



RI TAPPING ITS SEAWEED POTENTIALS

by Andi Abdussalam

Jakarta, Nov 24 (ANTARA) - Indonesia, through its ministry of maritime affairs and fisheries (DKP), is working out an ambitious plan to make itself a world seaweed production center in the coming five years with an estimated annual turnover of US$1 billion.

        To achieve this goal, the government is planning to create 60 seaweed cultivation clusters, restrict and then stop dried seaweed exports and build local seaweed processing industries. So far, Indonesia supplies 50 percent of the world's need for dried seaweed.

        "We will restrict our dried seaweed exports in 2012 at the latest, after which will stop it totally," Victor P H Nikijuluw, director for business and investment affairs of the Directorate General of Processing and Marketing of Fishery Products (P2HP), said here on Tuesday.

        The plan to stop exports of dried seaweed is aimed at developing domestic seaweed processing industries. So far, seaweed processing industries at home had not yet been developed maximally.

        Data available at the DKP show that only about 15 percent of Indonesia's seaweed exports are in the form of processed products, while the remaining 85 percent are in the form of dried seaweed.

        In order to increase supply for domestic seaweed processing industries, the DKP is launching a seaweed cluster development scheme in various parts of the country.

        "We set a target to cultivate 60 seaweed clusters up to 2014. This is an effort to become the world's biggest seaweed producer," DKP Secretary General Syamsul Ma'arif said after opening a business dialog on seaweed business and investment opportunities on Tuesday.

        He said that up to now, the DKP in cooperation with regional governments and private businesses had developed 12 of the 60 planned seaweed clusters. The 12 seaweed clusters are located in Sumenep, East Java (two clusters), Gorontalo (two clusters), Pangkep (South Sulawesi), Dompu (West Nusa Tenggara/NTB), Serang (Banten), Riau Islands, North Minahsa, Parigi Moutong (Central Sulawesi), Polewalimandar (West Sulawesi) and Bau Bau (Southeast Sulawesi).

        The efforts to cultivate seaweed cluster schemes are being made to integrate upstream and downstream processing so that production can become optimal and have added value.

        Victor PH Nikijuluw explained that the cluster system was implemented in three groups or layers. The first group is that the seaweed cluster consists of or includes local people or fishermen for its cultivation. The second layer is a business group collecting the products for first phase processing by local or regional firms and the third layer is that advance processing by processing and export companies. The aim of these seaweeds cluster divisions is to increase added value.

        He said the production target for 2014 was the equivalent of one million dried seaweed per annum. Under the plan the same volume of seaweed would be processed into alkali treated cottonii (ATC), semi refined carrageenan (SRC) and refined carrageenan (RC).

        Thus, in 2014, Indonesia's seaweed products in the form of ATC, SRC and RC would reach a value of one billion US dollars.

        At present, seaweed cluster schemes are being carried out in 12 different regions. Of the 12 clusters, six are in progress and their end-products would be extracts or seaweed chips developed by local industries.

        Victor PH Nikjuluw said that in Indonesia there were 10 seaweed industries which processed eucheuma cottonii seaweed species, with a production capacity of 500,000 tons per annum.

        With regard to seaweed processing industries at home, the DKP is preparing three policy options to develop seaweed processing industries in the country. The first option calls for dried seaweed exports to be conducted only registered export companies owning processing factories at home.

        The second option is that the government will restrict dried seaweed exports and the third one is that the government will authorize cooperatives to carry out seaweed exports so that the price margin between that at the farmers' level and that at the producers level would not be too high. "It can be imagined that now the price of seaweed at the farmers' level is only Rp5,000 per kg but at the exporters' level it reaches one US dollar (about Rp10,000). It is the high price margin that we are going to lower," he said.

        After the restriction of dried seaweed exports in 2012, and the total stoppage thereafter, Victor P H Nikijuluw said, the government would also gradually stop the importation of carrageenan. "We are importing a lot of carrageenan but I don't know the exact volume. I say a lot because large food and cosmetic companies in the country are still importing the product," he said.

        For now, imports could not yet be stopped because industries at home could not yet meet their need for carrageenan produced at home. "Those who produce soap, toothpaste and cosmetic cream are all still importing carrageenan. We (DKP) have talked to the chief economic minister on the efforts to build seaweed industries at home. And he supported the idea if the need at home could already be met," he said.***2*** (T.A014/A/HAJM/21:38/a014) (T.A014/A/A014/A/A014)

INVESTIGATION NOT FOCUSED ON BANK CENTURY CASE

By Andi Abdusslam

Jakarta, Nov 23 (ANTARA) - The State Audit Board (BPK) handed over the results of its audit on the Bank Century case to the House on Monday but observers said it was not much focused on the flows of the much criticized bailout funds amounting to Rp6.7 trillion.

        "Actually, the public is waiting for the exposure of the fund flows," economic observer Fadhil Hasan said.

        The observer commented on the BPK report on its investigation into the Bank Century case, which according to its chairman Hadi Poernomo, had involved violations and efforts to engineer the disbursement of Rp6.7 trillion bailout to the ailing bank.

        The Indonesian Corruption Watch (ICW) said the investigative audit by BPK on Bank Century must be able to expose the flows of funds and the parties who benefited from the banking scandal.

        ICW Coordinator Danang Widoyoko said in a press statement on Monday that the interim report of BPK on September 26, 2009 had raised public concern because it seemed that the BPK investigation did not focus on indications of corruption as requested by the Corruption Eradication Commission (KPK).

        He said that the preliminary report only talked much about efforts to salvage Bank Century, namely something behind the disbursement of the bailout funds amounting to Rp6.7 trillion through the Short-Term Funding Facility (FPJP).

        Bank Century was taken over by the Deposit Insurance Agency (LPS) late last year after it was facing liquidity and default problems. The government later provided it with a bailout of Rp6.7 trillion, far higher than the Rp1.3 trillion discussed with the House.

        The Corruption Eradication Commission (KPK) has asked BPK to audit the bank case to make sure no irregularities had been involved in it.

        BPK chairman Hadi Poernomo, after handing over to the House his audit report on Monday explained that there were alleged violations with the Bank Century case. He said that the violations concerned with the bank's merger process and Bank Indonesia (BI/the central bank) supervision.

        He said that violations also included the granting of the Short-Term Funding Facility (FPJP) funds, the naming of Bank Century as a failed bank that could cause a system impact, the use of FPJP funds and the injection of interim capital (bailout) as well as unsound practices in the bank's management.

        According to the investigative audit, there was a suspected effort to engineer the raising of the bailout amount, which was initially estimated at between Rp632 billion and Rp1.3 trillion to Rp6.7 trillion.

        "The Rp6.7 trillion bailout funds were disbursed in four stages. But the disbursement of the second phase worth Rp2.2 trillion was done without consultations with the Coordination Committee (KK). This was against the LPS regulation No. 3/PLPS/2008," Hadi Poernomo said after handing over the BPK audit report on Bank Century to House Speaker Marzuki Alie here on Monday.

        Based on the BPK audit, additional bailout funds for Bank Century have been engineered so that the bank would get injection not only to meet its capital adequacy ratio (CAR) requirement but also its need for increased liquidity.

        The BPK also found that Bank Indonesia (BI/the central bank) and the Financial System Stability Committee (KKSK) did not apply measured criteria in concluding that if Bank Century was allowed to collapse, it would have a systemic impact on the banking world.

        Poernomo said that Bank Century was taken over by the LPS only based on Government Regulation in lieu of Law No.4/2008, and without comprehensive, measured and latest data on the bank's condition.

        Likewise, KKSK's decision that Bank Century had become a failed bank where it did not mention the costs the LPS had to incur, also violated LPS Regulation No. 5/LPS/2006, he said.

        After all, Hadi Poernomo said, the Rp5.86 trillion loss suffered by Bank Century was a loss which emerged as a result of unsound practices and violations committed by the bank's executives and other parties.

        "The bailout provided by LPS to cover the loss suffered by Bank Century is actually state money," the BPK chairman said.

        In spite of this,Fadhil Hasan said that the BPK investigative audit on Bank Century was not much focused on the flows of the bailout funds. The BPK audit was not able to expose Bank Century's fund flows because it was not allowed the Financial Transaction Analysis and Report Center (PPATK) to trace them.

        Yet, he said, the result of the BPK audit had indicated that BI and by the Financial Sector Policy Committee (KKSK) had taken less appropriate decisions in bailing out Bank Century.

        According to Hadi Poernomo, BPK has virtually touched on the flows of the funds but not all of the fund flows could be traced because data about them were restricted. "We cannot expose the flows of the funds because based on Article 26 of Law on Financial Transaction Analysis and Report Center (PPATK) only the police and public prosecutors are allowed to investigate flows of funds," the BPK chairman said.

        Therefore, according to Fadhil Hasan, the House should follow up the Bank Century case with an inquiry.

        "The public is waiting for the exposure of the fund flows," he said. To solve the problem, Fadhil hoped that the House would approve the initiative of a group of legislators to conduct a House inquiry on the alleged bank scandal.

        "The House inquiry should be continued to trace the flows of the funds so that rumors would not emerge and spill over to everywhere," he said. ***4*** (T.A014/A/HAJM/A/S012) 21:15/..... ) (T.A014/A/A014/A/S012) 23-11-2009 21:43:15

GOVT MIGHT REMOVE PLN CHIEF TO SOLVE POWER PROBLEM

By Andi Abdussalam

Jakarta, Nov 18 (ANTARA) - After President Susilo Bambang Yudhoyono summoned ministers and other related officials on Tuesday, rumors now have it that the chief of state-owned the state power company PLN would be replaced.

        The president has summoned the relevant ministers and officials to discuss solutions to the problem of power deficits that forced PLN to impose rotating power cuts in a number of cities, triggering protests from industrial and household customers.

        In order to increase its capacity, the president asked PLN to improve its management both financial and distribution terms so that its consumers would no longer have to suffer power outages as a result of PLN's mismanagement.

        "I want PLN which runs a big business of trillions of rupiah to exercise good governance. It should not show peculiarity as it would sacrifice the people," the president said on Tuesday.

        The head of state even stressed that the state power company faced coordination problems as reflected in its slow response to proposals from the regions while a number of areas were also not smart in taking serious steps to solve electricity problems.

        A day after the president's meeting with the relevant officials, rumors surfaced that the current PLN president director would likely be replaced. However, a legislator warned the government to be careful in deciding to replace the PLN chief. The problem with PLN cannot be solved only with replacing its director.

        "If the government decides to replace the PLN director, it should appoint a competent and experienced person in electricity affairs," Airlangga Hartarto, chairman of the House of Representatives (DPR)'s Commission VII on state-owned enterprises (BUMN) affairs, said on Wednesday.

        He said that a decision to replace the director of a company which had a multi-complex problems could not be made instantly. "A person would need time before he or she could understand electricity industry as a whole," he said.

        Hartarto said that it was not enough for a PLN director to have a managerial skill only. He or she should also be able to solve various problems facing PLN, including matters relating to state budget such as funding and public obligation services (PSO).

        Rumors have it that the government would replace the PLN director, now being held by Fahmi Mochtar.

        Two names based on rumors have been tipped to occupy the top position of the state power firm. Rumors also have it that the two names have been submitted to President Susilo Bambang Yudhoyono.

        One of them, who has also been summoned by the president is Dahlan Iskan, owner and chief executive officer of media publication group, The Jawa Pos Group. The other name is proposed by the DPR.

        Dahlan Iskan is known as a figure not only as owner of a media business group but also as an independent power producer (IPP) in Kalimantan. It seems however that he might face opposition from PLN workers, who want the state firm to be led by a person from within the company.

        Chairman of PLN's Workers Association, Achmad Daryoko said he hoped the government would no longer turn PLN as a mere political commodity. "Should there be replacement in the top leadership, the would-be director should be selected from PLN's internal officials who are qualified and understand electricity problems so that the replacement would not create a conflict of interest," he said.

        With regard to Dahlan, Daryoko said his association would reject him because Dahlan had no capacity to lead a big company as caliber as PLN. "If the government forces its own will to place him (Dahlan), there would be internal turmoil in the company," he said.

        On the other hand all BUMNs are willing to be free from political intervention. "If the government eventually place an incapable person, it would mean that the government is still turning BUMN as a political commodity," Daryoko said.

        He said that his side had sent a letter to the president last week which in principle contained a rejection of replacing the PLN president director with an outsider.

        "A copy of the letter to the head of state was also sent to the ESDM minister, BUMN minister and the police chief," he said.

        In the meantime, in response to the rumors, legislator Hartarto said that the government in its capacity as authorized share owner of PLN through the State Enterprise (BUMN) Ministry, had the full right to place a man as the president director of PLN.

        "Share-holders have the right to replace it (PLN director). But the government has to learn a lesson from its experience in placing a number of people as directors of BUMNs.

        In other words, the government should learn that although the president director of a BUMN is replaced for several times, yet one cannot expect an improvement in the company's performance if the basic problems are not solved," he said.

        PLN, due to its limited capacity, is no longer able to meet the people's need for power which continues to increase at a rate of between six and eight percent or between 2,000 and 3,000 megawatts per annum.

        The increase in demand for electricity supply has caused a power deficit which leads to power outages and rotating blackouts in various regions. In October 2009, for example, PLN suffered a power deficit of 460.2 MW.***2*** (T.A014/A/H-NG/B003). (T.A014/A/A014/B003) 18-11-2009 23:30:53

PLN NO LONGER ABLE TO SOLVE POWER PRODUCTION PROBLEM

By Andi Abdussalam

Jakarta, Nov 17 (ANTARA) - State-owned electricity company PLN, due to its limited capacity, is no longer able to meet the people's need for power which continues to increase at a rate of between six and eight percent or between 2,000 and 3,000 megawatts per annum.

        The increase in demand for electricity supply has caused a power deficit which leads to power outages and rotating blackouts in different regions. In October 2009, for example, PLN suffered a power deficit of 460.2 MW.

        For 2010 alone, PLN will need at least Rp32 trillion in funds to improve national electricity supply. Besides, it also needs to offer a chance to other parties to help develop the country's electricity.

        In response to the problem of power outages which sparked complaints from consumers, households and industries, President Susilo Bamang Yudhoyono summoned his related ministers and officials to discuss the power problem on Tuesday.

        The president summoned Coordinating Minister for Economic Affairs Hatta Rajasa, State Enterprises Minister Mustafa Abubakar, Energy and Mineral Resources Minister Darwin Saleh, state-owned electricity firm PLN's Director Fahmi Mochtar and Jakarta Governor Fauzi Bowo to discuss the problem of power deficit in the country.

        "PLN is no longer able to handle the problem alone. It has limited capability so that a chance to help develop electricity should also be offered to other parties," President Yudhoyono said.

        In order to increase its capacity, the president asked PLN to improve its management both in financial and distribution terms so that consumers would no longer have to suffer power outages as a result of PLN's mismanagement.

        "I want PLN which runs a big business of trillions of rupiah to exercise good governance. It should not show peculiarity as it would sacrifice the people," the president said. The head of state is also of the opinion that the state power company also still faced problems with coordination and synergy such as slow response to proposals from the regions while a number of regions were also not smart in taking serious steps to solve electricity problems.

        According to Chief Economic Minister Hatta Radjasa, the president summoned the relevant ministers to listen to explanations, including the PLN director on complaints from industries and citizens about frequent power outages.

        Hatta said the government was trying to formulate ways to find a comprehensive solution to the electricity problems. The solution would have to be for the short, medium and long terms. He said with electricity consumption growing at six to eight percent or 2,000 - 3,000 MW per annum, it was impossible for PLN to cover the entire shortage in power supplies.

        "Therefore, we have encouraged independent power producers (IPP) to enter the electricity sector. But of the 50 existing IPPs, only about 20 percent can do it. Even so, the 20 percent are now also facing financial problems," he said.

        In the meantime, Jakarta Governor Fauzi Bowo said many of the complaints about power cuts in Jakarta came from small and medium scale industries who did not own generators.

        "We have asked PLN to speed up finding a solution to the power problem. Now, a number of small and medium scale industries who have no generators, have stopped their businesses due to the power outages," the governor said.

        The governor said the electricity blackouts were also often causing chaos in the streets of the capital because traffic lights were not operating which resulted in chaotic traffic jams.

        In the meantime, data made available to ANTARA on Tuesday indicated that PLN in October 2009 suffered a power deficit of 460.2 Megawatts. The data showed that of the 24 power distribution systems, 11 experienced a power deficit, two were under an alert status and the other two were in normal condition.

        The state-owned power utility company divided the conditions of its power distribution systems into three categories, namely normal, on alert and in deficit of power supply.

        In normal conditions, PLN does not impose a rotating power cut because it has enough power reserves for operations. The alert condition indicates that PLN does not impose a power cut but it has the potential to cut power because its power reserves are smaller. The deficit condition causes PLN to impose rotating power outage because its capacity to supply electricity is smaller than the needed one during peak load, or there is a disturbance in the transmission system.

        In the meantime, PLN President Director Fahmi Mochtar recently his company needed Rp32 trillion in funds to improve national electricity supply in 2010.

        "The funds will be used for various purposes, ranging from power plants, transmission to distribution networks to be able to meet our power needs," he said. Fahmi said the Indonesian economy was projected to grow 4.0 percent this year.

        If it was to be geared up to expand 6 percent next year, power supply must grow 9 percent and therefore, Rp32 trillion in funds would be needed in 2010 alone.***2*** (T.A014/A/HAJM/19:55/A/O001)

        (T.A014/A/A014/A/O001) 17-11-2009 20:07:33