Sabtu, 27 Februari 2010

HOUSE LIKELY TO DECIDE CENTURY CASE THROUGH VOTES

  By Andi Abdussalam

           

    Jakarta, Feb 27 (ANTARA) - The House of Representatives (DPR) is expected to have to do some tough deliberations when it holds a plenary session on Tuesday and Wednesday on the conclusions of the House Inquiry Committee which has investigated the Bank Century bailout case.

         Observers say that deliberations in the plenary will unlikely reach a consensus, forcing the House to decide it through a vote. Therefore, political observer Muhammad Qodari of "Indo Barometer" believed the House would decide it through the voting option.

         "Having observed the substance of the final views of factions in the inquiry committee during its plenary a couple of days ago, I believe that the House will  not be able to take a decision based on the consensus mechanism," Muhammad Qodari said on Saturday.

          Associate chairman of the Golkar Party Priyo Budi Santoso also predicted that the House deliberations over the final views of the factions would be tough and it would face difficulties to take a decision so that the decision to be made would be taken through a vote.

         "I think the plenary that will discuss the final views of the factions will  see a lot of hard debate because each faction will  try to defend its position ,"  Priyo Budi Santoso said.

          Factions which have delivered their final views on the Bank Century bailout amounting to Rp6.7 trillion will be consistent with their stance so that the voting mechanism option would be unavoidable for the House to take a decision.

         After all factions delivered their final views  on the Bank Century bailout scandal on Tuesday night, the House  will next Tuesday and Wednesday in plenary discuss it. Many factions have different views so that it is predicted that during the plenary faction members would also  intensely lobby each other. The legislators might even have to resort to a vote several times.

         The most interesting voting is likely on factions' views which mentioned names of persons or state officials who are thought to be responsible for the scandal.

         "The voting will  be on whether to mention only the names of the chairperson of the Financial System Stability Committee (KSSK) and the Bank Indonesia governor, or  also the name of other state officials," Qodari said.

         Other interesting issue that might be decided through a vote is the status of the Short-Term Funding Facility (FPJP) and Temporary Capital Participation (PMS) about which factions have differences of views.

         During the House Inquiry Committee's plenary on Tuesday night which lasted until the wee hours on Wednesday, seven factions mentioned that violations had been committed with regard to the issuance of the FPJP and PMS amounting to Rp6.7 trillion for Bank Century.

         Only two factions  have the opinion  that the extension of the FPJP and PMS did not violate any regulation because it had been done in accordance with the procedures. The two factions are the factions of the ruling Democratic Party (PD) and the Nation's Awaking Party (PKB). PKB is one of the parties in PD's ruling coalition partners.

         On the flow of funds from Bank Century, all factions mentioned that violations had been committed, but they differed on who committed the violations.

         Four factions mentioned the names of persons or state officials who were responsible for the violations that had been committed in the Bank Century case, these factions were of the Indonesian Democratic Party of Struggle (PDIP), the Prosperous Justice Party (PKS), the Golkar Party and the People's Conscience Party (Hanura). PKS and Golkar are partners in the ruling coalition.

         With these different views, a number of legislators predicted that the House in its plenary next Tuesday and Wednesday would decide the different views through voting.

         Prio Budi Santoso said that if the House came up with the voting option, it had to be carried out openly. The reason is that a decision is to be taken with regard to a policy not a person. So, it is just proper for the public to know it.

         "With an open voting, the people could see which of their representatives are channeling their aspirations and who are not," Prio Budi Santoso who is also a deputy House Speaker said.

          The same voice was also raised by Bambang Soesatyo of the Golkar Party who urged that a voting should be held openly. If it is held in a closed place, there could be many legislators who would change their  stance because of transactional practical politics. It is difficult to know who change their voices and who consistently maintain their stance.

         Hendrawan Supratikno of the PDIP also predicted that it would proceed toughly as factions' views were already known to the public so that it would be difficult for factions to change their stance.

         PDIP chief Megawati Soekarnoputri said there would be no change in the party's stance on the Bank Century bailout scandal as expressed by its faction in the House of Representatives.

         "I will not talk a lot about the Bank Century case, PDIP's stance is already clear," she said when opening the party's Lampung provincial third regional conference here on Saturday.

          The PDIP faction in the House of Representatives Inquiry Committee had concluded that its field findings constituted strong clues of banking law violations, money laundering, and corruption.

         Therefore, the public is giving the greatest attention to the settlement of the Bank Century case. Factions who change stance would be under the spotlight of the people.

          "The people will criticize if there are factions who change stance," Hendrawan Supratikno, who is also a member of the House Century inquiry committee, said.

    (T.A014/A/HAJM/23:30/H-YH)



(T.A014/A/A014/A/H-YH) 27-02-2010 23:41


HOUSE LIKELY TO DECIDE CENTURY CASE THROUGH VOTES By Andi Abdussalam

By Andi Abdussalam

           Jakarta, Feb 27 (ANTARA) - The House of Representatives (DPR) is expected to have to do some tough deliberations when it holds a plenary session on Tuesday and Wednesday on the conclusions of the House Inquiry Committee which has investigated the Bank Century bailout case.

         Observers say that deliberations in the plenary will unlikely reach a consensus, forcing the House to decide it through a vote. Therefore, political observer Muhammad Qodari of "Indo Barometer" believed the House would decide it through the voting option.

         "Having observed the substance of the final views of factions in the inquiry committee during its plenary a couple of days ago, I believe that the House will  not be able to take a decision based on the consensus mechanism," Muhammad Qodari said on Saturday.

          Associate chairman of the Golkar Party Priyo Budi Santoso also predicted that the House deliberations over the final views of the factions would be tough and it would face difficulties to take a decision so that the decision to be made would be taken through a vote.

         "I think the plenary that will discuss the final views of the factions will  see a lot of hard debate because each faction will  try to defend its position ,"  Priyo Budi Santoso said.

          Factions which have delivered their final views on the Bank Century bailout amounting to Rp6.7 trillion will be consistent with their stance so that the voting mechanism option would be unavoidable for the House to take a decision.

         After all factions delivered their final views  on the Bank Century bailout scandal on Tuesday night, the House  will next Tuesday and Wednesday in plenary discuss it. Many factions have different views so that it is predicted that during the plenary faction members would also  intensely lobby each other. The legislators might even have to resort to a vote several times.

         The most interesting voting is likely on factions' views which mentioned names of persons or state officials who are thought to be responsible for the scandal.

         "The voting will  be on whether to mention only the names of the chairperson of the Financial System Stability Committee (KSSK) and the Bank Indonesia governor, or  also the name of other state officials," Qodari said.

         Other interesting issue that might be decided through a vote is the status of the Short-Term Funding Facility (FPJP) and Temporary Capital Participation (PMS) about which factions have differences of views.

         During the House Inquiry Committee's plenary on Tuesday night which lasted until the wee hours on Wednesday, seven factions mentioned that violations had been committed with regard to the issuance of the FPJP and PMS amounting to Rp6.7 trillion for Bank Century.

         Only two factions  have the opinion  that the extension of the FPJP and PMS did not violate any regulation because it had been done in accordance with the procedures. The two factions are the factions of the ruling Democratic Party (PD) and the Nation's Awaking Party (PKB). PKB is one of the parties in PD's ruling coalition partners.

         On the flow of funds from Bank Century, all factions mentioned that violations had been committed, but they differed on who committed the violations.

         Four factions mentioned the names of persons or state officials who were responsible for the violations that had been committed in the Bank Century case, these factions were of the Indonesian Democratic Party of Struggle (PDIP), the Prosperous Justice Party (PKS), the Golkar Party and the People's Conscience Party (Hanura). PKS and Golkar are partners in the ruling coalition.

         With these different views, a number of legislators predicted that the House in its plenary next Tuesday and Wednesday would decide the different views through voting.

         Prio Budi Santoso said that if the House came up with the voting option, it had to be carried out openly. The reason is that a decision is to be taken with regard to a policy not a person. So, it is just proper for the public to know it.

         "With an open voting, the people could see which of their representatives are channeling their aspirations and who are not," Prio Budi Santoso who is also a deputy House Speaker said.

          The same voice was also raised by Bambang Soesatyo of the Golkar Party who urged that a voting should be held openly. If it is held in a closed place, there could be many legislators who would change their  stance because of transactional practical politics. It is difficult to know who change their voices and who consistently maintain their stance.

         Hendrawan Supratikno of the PDIP also predicted that it would proceed toughly as factions' views were already known to the public so that it would be difficult for factions to change their stance.

         PDIP chief Megawati Soekarnoputri said there would be no change in the party's stance on the Bank Century bailout scandal as expressed by its faction in the House of Representatives.

         "I will not talk a lot about the Bank Century case, PDIP's stance is already clear," she said when opening the party's Lampung provincial third regional conference here on Saturday.

          The PDIP faction in the House of Representatives Inquiry Committee had concluded that its field findings constituted strong clues of banking law violations, money laundering, and corruption.

         Therefore, the public is giving the greatest attention to the settlement of the Bank Century case. Factions who change stance would be under the spotlight of the people.

          "The people will criticize if there are factions who change stance," Hendrawan Supratikno, who is also a member of the House Century inquiry committee, said.

    (T.A014/A/HAJM/23:30/H-YH)



(T.A014/A/A014/A/H-YH) 27-02-2010 23:41

Jumat, 26 Februari 2010

GOLKAR IS A 'GOOD BOY' IN COALITION

By Andi Abdussalam

           Jakarta, Feb 26 (ANTARA) - The Golkar Party has adopted a bold and critical stance regarding alleged violations in the Bank Century bailout case in an effort to reveal the truth so that a solid coalition and stronger government could be created.

         Golkar's critical stance with regard to the Bank Century bailout case is clear, namely to recommend to the law enforcers those suspected responsible for violations in the disbursement of the bailout.

         Thus,  voicing critical stance is something that Golkar has to do for the improvement of the government.

         "We have to be bold in saying what is true and what is wrong. Thereby,  we hope the government will become stronger after the Century case and the coalition will become more solid," Golkar Chairman Aburizal Bakrie said when he installed the executive board of  Golkar's Riau chapter on Friday.

         Aburrizal Bakrie said Golkar would continue to adopt a stern attitude and not cover up any mistakes made by the government in the Bank Century case.

         The same voice was also raised by Golkar Chief Patron Akbar Tanjung. He said that partners in a coalition should work together to create a clean government.

         "Partners in a coalition must work together to create a clean government. What Golkar is doing with the inquiry into the bailout case is part of what President Susilo Bambang Yudhoyono has asked the committee to do, namely to disclose the Bank Century case completely," Akbar said.

         A House inquiry committee is investigating alleged violations in the extension and disbursement of a bailout fund for Bank Century in late 2008 amounting to Rp6.7 trillion.

         Together with the Prosperous Justice Party (PKS), Golkar in its final views on the Bank Century bailout case had mentioned names of persons it considered responsible for the disbursement of the Bank Century bailout worth Rp6.7 trillion.

         PKS and Golkar are among the nine political party partners in the Democratic Party (PD)-led ruling coalition. PKS and Golkar had stated that Boediono (former governor of the central bank, now Vice President) and Sri Mulyani (former chief of the Financial System Stability Committee - KSSK) as the most responsible persons in the Century bank case.

         A number of Democratic Party (PD) leaders have expressed disappointment over the attitude of a number of ruling coalition partners which was not in line with that of the PD with regard to the Bank Century bailout case.

         Before the factions delivered their final views, several PD leaders appeared in TV reports saying that those who did not follow the line should better withdraw their ministers in the government.

         "They had better withdraw their ministers," Hayono Isman, a member of PD board of patrons, said. The same voice was also expressed by PD secretary general Amir Syamsuddin. "We are awkward to claim they are our coalition partners," Syamsuddin said in a TV show debate.

         Golkar, however, hopes that in spite of its critical stance it would remain within the coalition. According to Aburizal Bakrie, his party intended to remain within Yudhoyono's ruling coalition.

         "Golkar hopes to  remain in  the coalition," he said refuting the opinion that Golkar had  violated the coalition agreement by issuing a harsh statement.

         "Our agreement in the coalition was to seek the truth," he added.

         Therefore, Golkar intended to join the coalition. After all, so far there is not pressure against its minister in the government.

         "There is no pressure at all,"  Golkar senior cadre Agung Laksono, who is also chief minister for people's welfare affairs in Yudhoyono's government said  on Thursday.

           He said Golkar chairman Aburizal Bakrie had so far not  instructed him to withdraw from the cabinet, he said emphasizing that Golkar had no intention to leave the coalition. The party, he said, was sticking to its initial commitment to support the government under President Yudhoyono  until 2014.

          After all, the Democratic Party has also expressed its intention to maintain the coalition even if there are differences.

         "The Democrat Party prefers to remain friends (with its coalition partners) and will maintain the coalition despite the differences," Anas Urbaningrum, a PD associate chairman, said.

         "The differences are still about a matter at committee level and not something at government level," he said.

         Anas who is the chairman of the Democrat Party faction in the House of Representatives (DPR) said it was not proper for the DPR as a political institution to mention the names of state officials allegedly responsible in the matter.

         "The mentioning of names is inappropriate and incorrect. Names may be mentioned only after a legal process has taken place and even then is done according to a certain norm, namely by giving only their initials," he said.

         Therefore, the Democrat Party faction had not mentioned any names in its final view on the inquiry committee's findings, said Anas who is also a member of the inquiry committee.

         He said the stances that had been demonstrated by party factions in the committee had provided a momentum for the Democrat Party to strengthen the coalition.

         "The Democrat Party will intensify its political communications with its coalition partners," he said.

      
(T.A014/A/HAJM/17:40/a014)



(T.A014/A/A014/A/A014) 26-02-2010 17:45

Kamis, 25 Februari 2010

PRESIDENT UNLIKELY TO RESHUFFLE CABINET

 By Andi Abdussalam

          Jakarta, Feb 25 (ANTARA) - In spite of its discontent over disloyal partners, the ruling Democratic Party (PD) has said it is determined to maintain its coalition, indicating that ministers from disloyal parties would not be reshuffled.

         There is usually a political sign on the change in the government's structure before a cabinet reshuffle is to be made. So far, such an indication has not yet been seen.

         "I am not convinced there will be an immediate reshuffle because I did not see any  indication of a change in the government body," Golkar Party Chief Patron Akbar Tanjung said.

         After all, reshuffling the cabinet ministers is the prerogative of the President. So, although the Democratic Party is not satisfied with its coalition partners, it will leave the matter to President Susilo Bambang Yudhoyono.

         "The reshuffle is the prerogative of the President. Should the president decide to carry out a reshuffle, Golkar will respect it, yet I don't see any signal to that effect," Akbar Tanjung said.

          A number of PD leaders have expressed disappointment over the attitude of a number of ruling coalition partners which was not in line with that of the PD with regard to the Bank Century bailout case.

         A House inquiry committee is investigating alleged violations in the extension and disbursement of a bailout fund for Bank Century in late 2008 amounting to Rp6.7 trillion.

         Golkar and the Prosperous Justice Party (PKS) have been aggressive throughout the House of Representatives' inquiry, particularly in targeting Boediono and Sri Mulyani to take the fall. Several Democratic Party leaders have warned the two parties that taking sides with the opposition meant they no longer considered them part of the coalition.

         Boediono, now the vice president, was the governor of Bank Indonesia (the central bank) and Sri Mulyani, the finance minister, was then head of the  Financial System Stability Committee (KSSK), when the bailout was provided for the ailing Bank Century.

         Discontent over the 'disloyalty' arose further when factions in the inquiry mentioned the names of Boediono and Mulyani in their final views early on Wednesday.

         Before the factions delivered their final views, several PD leaders appeared in TV reports saying that those who did not follow the line should better withdraw their ministers in the government.

         "They had better withdraw their ministers," Hayono Isman, a member of PD board of patrons, said. The same voice was also expressed by PD secretary general Amir Syamsuddin. "We are awkward to claim they are our coalition partners," Syamsuddin said in a TV show debate.

         Being annoyed by coalition parties, the leadership of the Democrat Party early this month proposed a cabinet reshuffle. Amir Syamsuddin said the proposal was made when he and two other PD leaders, namely Anas Urbaningrum and Muhammad Jafar Hafsah met the president on Feb. 4, 2010.

         In spite of its discontent, the DP leaves the matter to the president. Democrat Party chairman Hadi Utomo said the party was leaving the cabinet reshuffle issue to President Yudhoyono to decide because it was the head of state's prerogative.

         "The Democratic Party is not in a position to push for a cabinet reshuffle because it is the president's prerogative, but we will remain guarding every government policy," he said
    According to Akbar Tanjung, so far, there is no sign that the president will reshuffle his ministers from the ruling coalition partners in the near future. He said that Golkar had supported since the beginning the inquiry committee into the Bank Century case.

         "We continue to maintain this position. Golkar is committed to channeling the aspirations of the people," he said. Akbar who is also a former general chairman of Golkar said his party would continue to support Yudhoyono's government.

         "Partners in coalition are working together to create a clean government. What Golkar is doing with the inquiry into the bailout case is part of what Yudhoyono has asked the committee to do, namely to disclose the Bank Century case completely " Akbar said.

         In the meantime, Golkar senior cadre Agung Laksono, who is also chief minister for people's welfare affairs in Yudhoyono's government said  on Thursday he had not received any pressures from the government with regard to the Golkar stance.

         "There is no pressure at all," he said before he attended a meeting with the President on Thursday.  He said that after all factions delivered their final views of the Bank Century case on Tuesday, the president did not discuss the Golkar attitude with him.

          Several party factions, including that of Golkar, in the House committee investigating the  Bank Century bailout decided to mention the names of those  considered responsible for the controversial Bank Century bailout in their final views on the committee's findings.

          Although the coalition partners' views are not in line with that of PD, yet the Democrat Party will maintain its coalition with them. "The Democrat Party prefers to remain friends (with its coalition partners) and will maintain the coalition despite the differences," Anas Urbaningrum, a PD associate chairman, said.

         "The differences are still about a matter at committee level and not something at government level," he said.

    Tuesday.

           According to the Democrat Party, no violations has been committed  in connection with the bank's bailout in 2008 worth Rp6.7 trillion. "We would prefer to maintain the coalition ... unless of course they insist on getting out,"   Anas Urbaningrum said.

    
(T.A014/A/HAJM/13:20/a/o001)

Rabu, 24 Februari 2010

REGIONS ALERTED AS DENGUE DEATH TOLL REACHES TENS

 By Andi Abdussalam

          Jakarta, Feb 24 (ANTARA) - Health authorities  in many parts of Indonesia have alerted their respective  communities to the threat of dengue fever in the current monsoon season (January-March) with the disease having already killed tens of people and infected hundreds of others, mostly in East and West Nusa Tenggara provinces.

         According to ANTARA reports, at least eight people had succumbed to the disease in East Nusa Tenggara (NTT) and over 570  sufferers had to be hospitalized in West Nusa Tenggara (NTB) while in West Java's Taskimalaya,  local health officials have declared  dengue outbreaks  a pandemic.

         Dengue fever cases have also been reported happening in other provinces such as East Java, North Sulawesi and Kalimantan.

         The most affected province is West Nusa Tenggara. Since January, a total of 571 people had contracted the disease. Luckily however, no death has been registered in the province.

         "The 571 patients are recorded in 10 districts,"  said Dr Ida Bagus Jelantik, head of West Nusa Tenggara Disease and Environmental Control Office said.

          NTB's provincial capital of Mataram saw the biggest number of patients reaching 368, followed by West Lombok 52, East Lombok 46 and West Sumbawa 31 cases. Other cases were found in Central Lombok, Bima City, Sumbawa, Dompu, North Lombok and Bima.

         In East Nusa Tenggara province, dengue fever has killed at least eight patients. The number of people who died of dengue fever, rose from five in January to eight.

          The latest two deaths this weekend were Maria Tiara (9 months old), and another infant at Kobatoma village, Titehena sub district, East Flores District, NTT, Dr Stefanus Bria Seran, head of the NTT provincial health service, said. The seven fatalities were all children, he said.

         Dengue fever has affected eight districts in NTT, including East Flores, Sikka, Kupang, Belu, Ende, Alor, and Nagekeo districts. In Sikka, there have been 251 cases of dengue fever, Kupang  279 cases, Belu 32 cases, Ende six cases, Alor eight cases, and Nagekeo  six cases with two children had died.

         The East Nusa Tenggara authorities have declared the dengue fever outbreak in Kupang city and Sikka District as extraordinary happening.

         In East Java, dengue fever has claimed the lives of at least 9 patients in  Mojokero, Madiun and Kediri.

         In Mojokerto district alone, dengue fever killed four resident. The dengue virus has also infected 125 other residents, Head of Mojokerto's Disease Prevention and Surveillance, dr.Benhardy, said. "The only sub-districts which have remained free from the dengue fever attacks are Pacet and Trawas," he said.

        The number of cases tended to keep increasing during the rainy season. Last week, victims were recorded at 110 patients but this week the number had increased to 125, he said.

         "Learning from last year's experience, despite the end of rainy season (in April), the dengue fever will remain possible until May or June," he said.

         In Kediri, the dengue fever had also killed at least two people last week. The victims were identified as Lorde Bintang S. and Anggoro. While in another East Java's town Madiun , dengue spread had also killed three people.

         "Over the past two months, dengue has infected 66 residents, three of them had died," Head of Madiun's Disease Prevention and Surveillance office, Sulistyo Widyantono, said.

         Dengue fever last year killed only two victims in the January-February period. But last year, the number of dengue patient in the same period in this city reached 193.

         In the meantime,  the West Java district  of Tasikmalaya's health authorities have declared dengue fever cases a pandemic in three subdistricts during the ongoing rainy season.

         The dengue fever-affected subdistricts were Tawang, Cihideung and Cipedes, Head of Tasikmalaya's disease surveillance and environmental health, Hasni Mukti, said here Tuesday.

         "Most of the dengue fever patients were found in the three subdistricts," he said. In January 2010, there were 97 dengue fever cases in the three subdistricts. The number was higher than that of the same period in 2009, which was recorded at 93, he said.

         Mukti said the health authorities found 1,100 dengue fever cases in the regency last year. January, February and March were the peak months of this Aedes mosquitoes-caused disease.

         The subdistricts of Tawang, Cihideung and Cipedes had been the dengue fever endemics since 1997 because majority of the patients were from there out of 10 subdistricts in Tasikmalaya, he said.

         In other West Java town of Cimahi, residents were warned of the danger of dengue fever out break, pending the peak of the rainy season in February and March 2010.  "The peak of the rainy season may occur in January, February to March this year, during which dengue cases may increase during that time, and the general public had been urged to watch it out," Deputy Director of Cibabat general hospital Huzen Rachman said.

         According to the Cibabat hospital, in mid-December 2009 there were 45  cases per day, which in mid-January 2010 increased to 60 per day. Cases in Cimahi in 2009 reached 2,026, with seven deaths, while in 2008 the cases reached only 1,250 with six deaths.

         Death cases in dengue outbreak in the current rainy season are also found in Kalimantan.

         In South Kalimantan provincial capital Banjarmasin, four people died of dengue infection since January this year.  All of the death victims were infants or children under five years old, according to the head of South Kaliantan Health Service, Diah R P.

         In Central Kalimantan, five  have died of dengue fever. "The death cases happened after the extraordinary happening was declared early last month,"  Wineini Marhaeni Rubay of the Central Kalimantan Health Service said.

         In the meantime, in Manado, North Sulawesi, a total of 40 patients have been affected by the spread of dengue fever while in  Ambon, Maluku Province,  a five year old child has also died of the disease.

    
(T.A014/A/HAJM/15:30/A/O001) feb 24, 2010

Sabtu, 20 Februari 2010

STOP POLEMICS ON UNREGISTERED MARRIAGES BILL

 By Andi Abdussalam


          Jakarta, Feb 20 (ANTARA) - The discourse over a controversial bill on unregistered marriages is virtually good for sharing ideas and gathering inputs but while pros and cons are being raised by the public, a religious ministry official  comes up with an appeal to stop the polemics.

        "I hope the polemics on the unregistered marriages bill that colors media publications in the country and are raised by the public of late would be stopped because this is still a draft and has not yet been deliberated by the House," Secretary General of the Ministry of Religious Affairs Bahrul Hayat said.

         The government, in this case the Ministry of Religious Affairs, is preparing a  bill on unregistered marriages which will carry provisions where unregistered marriages are to be considered a crime and illegal. Violators  are therefore punishable by a maximum of three months in jail or a fine of Rp1 million.

         "I don't understand why people and the media kicked a fuss all of a sudden  while the bill is still a draft," Bahrul Hayat said.

         The bill is being drafted and is intended to complement Matrimonial Law No.1 / 1974. The drafting of the bill is one of the National Legislation Programs for 2010. It will among others stipulate as illegal and criminal acts of unregistered marriage, contract marriage and  adultery.

         It will also stipulate other matrimonial issues such as second, third and fourth marriages, out-of-court divorce and undeserved 'wali' (male relative responsible for a bride). Violators of these 'criminal' offenses are   punishable by a range of six to 36 months in jail or a fine of Rp6 million to Rp12 million.

         Hayat explained that the government had no intention to bring to court Muslims who did not register their marriages and had not intention to interfere too far into the privacy of a person. But the government wanted that all citizens would feel safe and be protected administratively.

         All babies must have birth certificates and are registered in the civil registration office.  Those who die must also be registered. "Thus, these people will have clear status and legal certainties. In essence, the government wants that all citizens are protected and registered administratively," Bahrul Hayat said.

         Those in the camp opposing the bill are of the opinion that unregistered marriage is  legal as long as it is carried out based on the requirements set forth by Islam. The state could not change what is considered by religion legal into illegal.

         According to the chairman of the Ulema Council (MUI) for Bangka Belitung province, Yubahar Hasan, unregistered marriage is legal as long as it fulfills the requirements set by the Islamic law.  "In Islam it is legal as long as it fulfills certain requirements such as the presence of the groom and bride, 'wali', there is brideprice and witnesses," he said.

         But he admitted that unregistered marriage would do more harm than good because it could disadvantage wives and their children. "This is because they are not registered with the Religious Affairs Office," Hasan said.

         However, it is ironical if those who are involved in a marriage which is legal based on Islam should be put in jail only because they do not registered with the civil registration office.

         Machrus Ali, leader of the Hidayatul Mubtadiin Islamic Boarding School in Rembang, East Java, said he rejected the draft bill because it could cause innocent people to be put behind bars. After all, unregistered marriage is done in accordance with the requirements set forth by Islam.

         He said that unregistered marriage was quite different from contract marriage so that the government should not equalize unregistered marriage to contract marriage and should conduct a field study before it could draft a marriage bill. He expressed concern that it could even cause increase in prostitution because violators on registered marriage would face stiffer criminal punishment (between six to 12 months) than prostitution which is punishable by seven days.

         In the meantime, the National Human Rights Commission (Komnas HAM) is of the opinion that the government had better not to interfere too far into the formalities of citizens marriage when it is drafting a bill on marriage.

         "The state should only legalize a marriage through registration but not interfere too far into its formalities," Komnas HAM chairman Ifdhal Kasim said. He said excessive interference into the marriage formalities could be categorized as a form of human rights violation by the state.

         Therefore, the National Commission for Women (Komnas Perempuan) suggests that the government should be careful in drafting a criminal sanctions against unregistered marriage violators.

         "The government should be cautious. It should not happen that the law which is intended to protect women and children would adversely disadvantage them," Komnas Perempuan Deputy Chairwoman Ninik Rahayu said.

         The government should conduct socialization and identification of problems before drafting a bill. This is important to know the background of a marriage.  
    "Moneyed and educated men who have good access to information but involve in a secret unregistered marriage are liable to sanctions. But poor women who have no access to information and have no money  to register their marriages should not be punished," she said.

         MUI chairman Amidhan said in the meantime that marriage considered illegal like unregistered marriage was punishable based on the law.  "In reference to the Matrimonial Law in 1974, MUI has issued a religious admonition that a marriage must be legal based on the religious principles and state regulations," Amidhan said.

         He said that a marriage which was legal based on religion but did not follow state regulation was against the law. The law requires citizens to report their marriages, if not they could be punished.

         However, amid the controversies, Religious Affairs Minister Suryadharma Alie said the draft bill was still in discourse and had not yet been submitted  to the House for deliberation.

         The minister said that with the emergence of pros and cons on the draft bill, his ministry would focus on articles regarding unregistered marriage.

        "In the religious aspect, unregistered marriage is legal but citizens have to register their marriage in order to protect women and children and their inheritance from their mothers," the minister said.

    
(T.A014/A/HAJM/17:17/a014)

(T.A014/A/A014/A/A014) 19-02-2010

HARD TO EXPECT LOW CREDIT INTEREST IN 2010

 By Andi Abdussalam

         

      Jakarta, Feb 18 (ANTARA) - While the government hopes for more credit expansion to stimulate the real sector and boost economic growth this year, banks are still facing problems with lowering their lending rates.

         Analysts say that inflation in 2010 is expected to be higher than that in 2009 while banks will still wait and see, parking their money with Bank Indonesia (BI/the central bank) because they still could enjoy a higher spread.

         "Banks will still be reluctant to cut their interest rates because they are still facing high risks. I am not sure if they will lower their interest rates," M Chatib Basri, researcher of the University of Indonesia's Institute of Economic and Social Research (LPEM UI) said here on Thursday.

         In addition, BI's policies are not yet able to facilitate good distribution of funds into the banking system because it still applies inconsistent polices. Banks are facing difficulties to lower their lending rates because the central bank adopted inconsistent policies.

        "BI has to correct its monetary policies which are inconsistent," Purbaya Yudhi Sadewa, analyst of the Danareksa Research Institute, said meanwhile. He said that BI issued policies aimed to slacken money supply to the banking system but in reality the policies adversely resulted in more tightened money distribution, thus BI absorbing the money from the banking system.

         When BI lowered its key rate it should be able to slacken the distribution of money to the banking system. However, what happened was that the money was adversely absorbed from the system. "This causes banks to maintain the rates and reluctant to lower cut them," he added.

         With these conditions, banks which are still able to enjoy a high spread, would continue to park their money with BI, because thereby, even if they do nothing else but play golf, they will gain  benefit.

         Although the money is parked with BI, yet the threat of inflation would remain to loom. University of Indonesia (UI) researcher Chatib Basri predicted that in 2010 economic growth would be at between 5.5 percent and 6 percent while inflation at 6 - 7 percent.

         He said  inflation in 2010 would be higher than in 2009 in line with global economic improvements which would generate greater demand for commodities. On the other hand, the production capacity is still lower than the increasing demand. The expected rising inflation will cause banks to wait and see.

         "Prices of commodities and oil at home and abroad are now on the rise. This will boost inflation to a rate higher than that in 2009," he said.

          Basically, prices at present are still within the stable range. According to Vice President Boediono who made a field observation on Thursday, the prices of various basic necessaries in the country are now quite stable, except that of sugar which has slightly increased.

         "After visiting a number of markets and holding dialogs with traders, I can say that the prices of various commodities are still stable," the vice president said after observing three markets, namely Kramat Jati, Pasar Induk Beras Cipinang and Jatinegara.

         Inflation is indeed only one of the factors that cause banks to wait and see before they could cut rates. After all, they are still able to enjoy a high spread if they deposit it with BI. This is regardless of the fact that BI has drastically cut its key rate from 9.5 percent in 2008 to 6.5 percent at present.

         According to Yudhi Sadewa, data show that BI rate continued to go down but the funds absorbed by the central bank also tended to increase. In October 2008, when the BI rate was 9.5 percent, outstanding BI certificates (SBI) was recorded at Rp105 trillion.

         However,  at present when the BI rate is already lowered to as low as 6.5 percent, the outstanding SBI even rose to Rp250 trillion.

         In the meantime funds absorbed by BI through market operations also showed an upward trend. In October 2008, absorbed funds through the open market operations were Rp199.342 trillion, But in January 2010, the amount had reached Rp315.420 trillion.

          He said that by reducing the amount of funds deposited at BI and supplying them to the banking system the banking lending rates could be lowered through market mechanism.

         Yudhi Sadewa said that BI could lower its outstanding SBI funds through SBI auction with a lower rate than the rate of the SBI which had fallen mature, for example, if a due SBI was worth Rp50 trillion, then the SBI could be auctioned at Rp20 trillion.

         "So, there will be Rp30 trillion that could be returned to the banking system," he added.

         Thus, banks would be able to extend more credits to businesses, particularly the real sector. In this case, credit interest rates are expected to be lower.

         According to Chotib Basri, one of the efforts that could be made to lower the interest rates is to optimize the Credit Bureau Affairs of Bank Indonesia, particularly with regard to the provision of information on debtors for banks.

         "The role of BI's Bureau of Credit Affairs should be optimized so that banks would be able to get information and see which customers are facing risks. This would enable banks to convince themselves about customers who really need credits with lower credit interest rates," he said.

         The government is targeting increase credit expansion this year to a level higher than that in 2009 which was 13 percent in line with the interest rate that had dropped to 11 percent - 12 percent from above 16 percent previously.

         "I have already talked with the banking community that nine percent interest will still be difficult to achieve in view of the cost structure like interest on deposits which is still high. So 11 percent is the most realistic figure," Industry Minister MS Hidayat said.

    (A014/A/HAJM/B003)

Sabtu, 13 Februari 2010

FLASH FLOODS HIT BOGOR, JAKARTA

 by Andi Abdussalam

          Jakarta, Feb 13 (ANTARA) -  Torrential rains in the mountainous tourist resort areas of Puncak and Bogor created flash floods Friday evening and Saturday morning that swept through Bogor city down to Jakarta, inundating tens of residential complexes and hundreds of houses.

         The Puncak retreat area and Bogor have been the main sources of flash floods that inundated Jakarta during the rainy season because 13 rivers that run down from these areas crisscross the capital city before the water empty into the sea.

         At least 716 houses in five subdistricts in Bogor namely Bogor Timur, Bogor Tengah, Bogor Utara, Tanah Sareal and Bogor Selatan, were damaged by the flood, local government spokesman Abdul Muid said on Saturday.

         The flood also ruined 53 public facilities there. The 716 damaged houses included 195 heavily damaged, 81 moderately while the other 549 slightly damaged. The heavy downpour triggered flash flood also killed one resident in Cisarua subdistrict, Puncak.

         Cisasruan police chief Ajunct Police Commissioner Hadi Santoso who on Friday night was still at the disaster location, said the woman killed was identified as Yuyu (20), of Kampung Burujul, Cisarua subdistrict, while Mrs Mimin (50) and a five-year old infant survived, but with injuries now treated at the Dr M Goenawan Partowidigdo hospital in Cisarua.

         Two houses at Katulampa, East Bogor sub district, were swept away by the flash flood, and 64 other houses as well as roads were inundated, Abdul Muid, coordinator of Bogor's emergency response task force, said.

         The flood had also affected Bantar Jati and Babakanmadang neighborhoods, Central Bogor sub district. One shop was swept away, tens of houses and a chicken farm were inundated. Around 1,000 chickens were also swept away in the disaster.

         The Jambu Dua traditional market stood in around one-meter-deep flood waters.

         The Saturday flood that inflicted tens of millions of rupiah in material damage on local residents was caused by the overflow of Ciliwung river, one of the 13 rivers that divide Jakarta areas and empty into the Jakarta Bay.

         "The Ciliwung river overflowed as the water level at the Kantulampa water gate reached a height of 250 cm. Heavy rains and strong winds made the flood worse," Abdul Muid said.

         As the Bogor city and Puncak areas are vulnerable to floods and landslides, the Bogor local government has virtually imposed an emergency alert status on the whole of Bogor district from December 2009 to March 2010.

         Bogor district's disaster management agency has deployed 121 of its workers to 12 flood- and landslide-prone areas in its jurisdiction in anticipation of an increase in natural calamities during the current rainy season.

         Each targeted area have received two 10-member teams to help locals face emergency situations, the secretary of Bogor district's disaster management agency, Suhandri, said earlier.

         The 12 targeted areas were Cisarua, Megamendung, Ciawi, Cigombong, Cijeruk, Caringin, Sukajaya, Nanggung, Babakanmadang, Citeureup, Gunungputri and Cileungsi.

         Saturday evening, the floods had started to subside but residents in flood-prone areas were warned to evacuate as more flooding was expected. "The flood has subsided. The affected-inhabitants have started to clean up their houses with the help of disaster mitigation personnel," Abdul Muid said.

         As the floods in upper areas in Bogor also reached the capital city in its other buffer downs such as Bakasi in the east. Originated in Bogor the flood waters inundated at least six residential complexes located along the Bekasi River, West Java, with the water level reaching an average height of one meter.

         Thousands of families living at Villa Nusa Indah, Pondok Mitra Lestari, Kemang Ivy, Pondok Gede Permai, and Jaka Sampurna housing complexes, Jati Asih sub district, were affected by the flash flood, Yusrizal, head of Bekasi's waterway service, said.

         "The flash flood started at 11 pm local time on Friday and subsided at around 3 am local time on Saturday. The flood was due to a change in land spatial in Bogor," he said when inspecting flood-hit Pondok Mitra Lestari housing complex, Jati Rasa, Jati Asih sub district. "Earlier we had sent a warning to local residents through their neighborhood leaders," he said.

         Oman Rachman (45) of Pondok Mitra Lestari complex said at least 600 families were affected by the flood in his area. Bayu Permana Putra, a flood victim, said he was panic stricken as his house was submerged by at least one meter deep.

         In the meantime, a number of areas, particularly those in river banks, were also affected by the floods.

         "A number of areas in Jakarta, river bank areas in particular, have been affected by the Bogor flash floods," M Amron, acting director general of hydropower resources of the Ministry of Public Works, said.

         He said that on Saturday morning, the water level at Manggarai sluice, South Jakarta, had reached 805 centimeters, exceeding the normal level of 750 cm.  The overflow of Ciliwung river affected residential areas in Kalibata (Rawa Jati), Gg Arus, Bidaracina, Kampug Pulo, Bukit Duri. These areas are located in East and South Jakarta.

         Health Minister Endang Rahayu Sedyaningsih and Coordinating Minister for People's Welfare Agung Laksono visited the flood location the flood affected Kampung Melayu in East Jakarta.

         "We are ready to provide assistance such as medicines to anticipate possible outbread of diseases such as diarrhea and leptospirosis ," Minister Endang Rahayu Sedyaningsih said.

         In the meantime, chairman of the Indonesian Red Cross (PMI), Jusuf Kalla who is also former vice president, shortcut his visit to Bangka Belitung in order to observe the floods in Jakarta.

         "He shortcut his visit because he wanted to visit the flood-affected areas in Jakarta," Ulla Nuchrawaty, PMI organizational affairs head, said.  
(T.A014/A/HAJM/B003)
2. 21:25.

    (T.A014/A/A014/B003) 13-02-2010 21:

TAX-EVADERS ON TOP OF POLITICS

 by Andi Abdussalam

          Jakarta, Feb 10 (ANTARA) - The government is preparing the launching of a concerted drive to catch errant tax-payers in an initiative which also appears to be directed at the boss of the Golkar Party whose members in the House Century Inquiry Committee have been consistently critical of  alleged violations in the  Bank Century bailout process.

         The National Police's Criminal Investigation Department (Bareskrim) will soon sign a memorandum of understanding (MoU) with the finance minister to deal with tax dodgers from whom the directorate general has targeted to collect Rp5.3 trillion in unpaid taxes this year.

         Three mining companies in  Golkar Party Chairman Aburizal Bakrie's business empire,  Bakrie Group, allegedly owe Rp2.1 trillion in unpaid taxes to the state, an amount which accounts for 40.93 percent of tax arrears the finance ministry's directorate general of taxes aims  to collect in 2010.

         To achieve the target,  the directorate general  is planning to conduct joint operations with the police to deal with those involved in tax cases, its chief,  Muhammad Tjiptadjo said.

         "We will cooperate with the national and regional police commands. We will conduct joint operations," Muhammad  said.

          With the cooperation with police, the directorate general of taxation would increase efforts to collect tax arrears. This year's target of Rp5.3 trillion is higher than that in 2009 accounting for Rp3.36 trillion and in 2008 valued at Rp2.52 trillion.

          According to Tjiptardjo, the total amount of outstanding tax receivables is about Rp51 trillion.

          Meanwhile, police have expressed readiness to assist. Police chief investigator Commissioner General Ito Sumardi said police were ready to investigate tax manipulation cases.

          "In carrying out their investigation, police will probe the audit results of the director general of tax affairs," the head of the Police Criminal Investigation Department (Bareskrim) said.

          The crimes that the police are going to investigate included document forgery, fraud, false statements, embezzlement and money laundering.

         "If they don't pay taxes, they will be dealt with by the directorate general of tax affairs. But if they produced false documents in paying taxes, then they will be dealt with by police," Sumardi said.

         He said that in an effort to support the government in collecting unpaid taxes, police and the finance minister will soon sign a memorandum of understanding (MoU). "The MoU will help intensify legal efforts against tax dodgers," he said.

         Last month, legislator of the Democratic Party Sutan Bhatoegana who is also a member of the House Commission VII for mining affairs called on the government to settle alleged tax arrears owed to the state by three mining firms under the Bakrie Group worth Rp2.1 trillion.

          "Unpaid taxes by companies must be claimed soon because the money belongs to the people and state," he said.

           He made the remarks in response to allegations of tax arrears worth Rp2.1 trillion by three Bakrie Group mining companies, namely PT Bumi Resources, PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia.

          Bumi Resources allegedly owes Rp376 billion in unpaid taxes to the state, KPC Rp1.5 trillion and Arutmin Rp300 billion.

          Bhatoegana said that the government should apply persuasive approaches in dealing with the unpaid taxes by the big mining firms. The alleged unpaid taxes must first be clarified to the companies concerned.

          "If dispensation is to be given to indebted firms, there would be no problem as long as it is not against the law," he said. If possible, the government allows the Bakrie Group to pay its tax arrears through an instalment scheme, if it is unable to pay in cash.

           He said the important thing was that the tax arrears should be paid.

           Senior Vice President, Investor Relations, of Bumi Resources Dileep Srivastava said his company was still waiting for clarifications from the directorate general of taxes with regard to the alleged unpaid taxes worth Rp2.1 trillion.

           Meanwhile, Golkar Party  Chairman Aburizal Bakrie said he was not a tax dodger with regard to the allegation that companies in  the Bakrie Group were among the biggest errant tax payers.

           "I am not a tax cheater, because the alleged errant tax payers are companies. After all, the companies have different interpretation with regard to the tax arrears with the directorate general of taxation," Aburizal Bakrie who is also a former chief minister for people's welfare affairs, said after installing regional executives of Golkar in Southeast Sulawesi.

           The Golkar chairman also explained that the Bakrie family was only a minority shareholder in companies under the Bakrie Group. In PT Bumi Resources, for example, the Bakrie family only owned seven percent of the shares while the remaining belonged to the public.

           He said that the different interpretation should first be settled in court. Thus, unpaid taxes could not be said tax arrears if the problem of differing interpretation has not yet been decided in courts.

          "In the directorate general announcement, tens of firms were alleged to be tax evaders, yet all of them denied it," he said.

           He said that if only one company which denied the allegation, possibly it was the company concerned which was wrong. But there were tens of companies, including state-owned firms (BUMNs).

           "Therefore, the best way to solve the alleged tax arrears is to take it to the court, not to the mass media," he said.

           On the occasion, besides refusing to be called a tax dodger, Aburizal also rejected a statement by certain quarters that there was a tax evader who was trying to politicize the Bank Century bailout case.

           "I am not orchestrating such a politicization. Such a statement should be proven so that it would not create a public lie. The Bank Century case is a genuine matter of people interest and has nothing to do with taxes," he said.    
      He said that all Golkar's legislators at the parliament were politicians which did not have the rights to lift the tax arrears issue as an instrument to mount a political pressure.

          President Susilo Bambang Yudhoyono on Monday ordered the National Police to hunt down anyone suspected of tax evasion.

          According to the Jakarta Globe, Yudhoyono's order came after a senior presidential aide suggested that politicians pushing the investigation into the government's Rp6.7 trillion bailout were the same one who were allegedly guilty of tax evasion.

            

(T.A014/A/HAJM/A/S012)
18:40/.....  )
(T.A014/A/A014/A/S012) 10-02-2010

Kamis, 04 Februari 2010

BI KEY RATE AT 6.5 PCT GOOD FOR ECONOMIC RECOVERY

By Andi Abdussalam


Jakarta, Feb 4 (ANTARA) - The Indonesian central bank (Bank Indonesia/BI)'s decision on Thursday to maintain its benchmark at 6.5 percent is seen as a correct step in efforts to strengthen economic recovery and maintain economic stability.

         "The BI decision is already on the right track. It has been decided on a number of basic considerations such as  the movements of inflation and commodity prices which are showing a trend to the normal level," Bambang Prijambodo of the National Development Planning Board (Bappenas) said.

         The central bank on Thursday decided to maintain its key rate (BI-rate) at 6.5 percent after its Board of Governors viewed that the 6.5 percent level was still realistic with the inflation target set at 5 plus - minus 1 percent in 2010.

         BI spokesman Difi A Johansyah said  the 6.5 percent reference rate was conducive to the efforts to strengthen economic recovery process, maintain financial stability and increasing banks' intermediary roles.

         Improvement of domestic economic conditions is taking place as expected and is in line with the ever strengthening global economic recovery.

         "The BI decision is already correct. Thus, its monetary policy needs to be supported so that it would be able to maintain our economic stability," Planning Director of Bappenas Bambang Prijambodo said.

          He said that prudent monetary policy was needed in supporting the development of national economy and in curbing inflationary pressure which had now been showing a trend to the normal level.

         Now, almost all countries are facing a transition period from adopting a moderate monetary policy to the tighter ones, yet they remain prudent.  "Transition would not proceed too fast but in stages within the corridors of the economic conditions of respective countries,"  Prijambodo said.

         Rising inflation is a global phenomenon generated by global economic recovery which in turn also raises global demand and commodity prices.   "In Indonesia, besides by increase in global commodity prices, inflation will also be triggered by the continuous recovery of domestic economy which would perform better than in the previous year,"  he said.

         He said that this would bring an improvement to the domestic demand and moderate exchange rate of the rupiah against the US dollar. The rupiah is expected to be stable at the Rp9,000-9,500 level per US dollar,"  he said.

         This condition will bring the inflation in Indonesia in 2010 to the normal level such as the one before the economic crisis took place. An economic growth of six percent would also be followed by a six percent inflation.

         "Indonesia only has the experience two times when its economic growth was over six percent but its inflation was below six percent, namely in 1971 and 1992," he said.

         He said that Indonesia's economic growth which was likely to reach six percent in 2010 would also certainly be flowed by an increase in inflation.

        "Unlike in 2009 --which is a special case when the inflation rate was only 2.78 percent due to the global economic downturn-- in  2010, the Indonesian inflation will likely return to its normal level," he said.

         That's why, he said, BI was not overacting if it then adopted a cautious policy and assessed how far the inflationary pressure would affect the economic growth as a whole in 2010.

         Therefore, Prijambodo believed that BI would continue to maintain the BI rate at 6.5 percent until the end of the first half of 2010. It would begin to take a tight policy in the second half of the year.

         Ryan Kiryanto, economist of state-owned Bank BNI, said however recently that BI would likely move up its BI rate in the second quarter of 2010. He said that Bank Indonesia's decision to maintain its key rate at 6.5 percent was merely aimed at serving short-term interests.

         "In the short run, the current BI rate is still tenable because of the low inflation rate. But looking ahead, it is very likely it will move up starting in the second quarter," Ryan Kiryanto of state-owned Bank Negara Indonesia (BNI) said.

         Indonesia's inflation rate in January was recorded at 0.84 percent, bringing the year-on-year inflation rate to 3.72 percent, according to the Central Statistics Bureau (BPS).

         The BPS said the 3.72 percent actually showed an increase. "The increase in the inflation rate was mainly fueled by rising food prices," BPS Chief Rusman Heriawan said.

         Kiryanto argued that the inflation would increase in 2010. There would be three reasons for the inflation rate to go up, he noted. The first one would be the impact of a hike in the global oil price which could reach US$100 per barrel.

         Secondly, the better performance of the domestic economy this year was also expected to push up the inflation rate. "This will be in line with the people's increased purchasing power," he said.

         The third factor would be an upward trend in global interest rates as a result of the world's economic recovery, he said.

         "To make assets in rupiah attractive and avoid capital flight, the domestic interest rates must be raised too. So the BI rate will steadily move up from 6.5 percent to 6.75 percent in the first semester and to 7 percent by the end of 2010," he said.

    
(T.A014/A/HAJM/19:20/a014)

(T.A014/A/A014/A/A014) 04-02-2010 20:51:44


RI TO STOPS COAL EXPORTS GRADUALLY

By Andi Abdussalam

Jakarta, Feb 3 (ANTARA) - Indonesia, which over the past few years has become the world's third largest coal exporter after Australia and China, is planning to gradually stop its exports in order to help strengthen the country's energy resilience.

         As it is now carrying out its second coal-fired 10,000 MW power crash program, Indonesia, with coal reserves estimated at 4,328 million tons, will need to save its coal as an energy source to meet future needs.

         A recommendation to that effect is now being formulated by the National Energy Board (DEN), and will later be submitted to the government. According to DEN member Rinaldi Dalimi, during a meeting with Commission VII of the House of Representatives recently, Indonesia should save its coal as an energy reserve to meet future needs.

         "Up till now, DEN members are still discussing a strategy to keep coal to ourselves and the benefits to be derived by such a policy. The finalized recommendation is expected to be presented to the government in February 2010," he said.

         Rinaldi argued that keeping coal as a future energy source would give maximum benefit to Indonesia since the product's price was expected to rise in the years ahead. In addition, the present coal production of 250 million tons per year would only reach its break-even point in the next 20 to 30 years.

         "The coal price 30 years from now will surely be much higher, " he said adding that stopping coal exports would also better ensure the fulfillment of future domestic needs.

         DEN is an institution tasked to draw up formulas for national energy policies. It is chaired by President Susilo Bambang Yudhoyono with the vice president as vice chairman, and the energy and natural resources minister as executive chairman.

         Indonesia has of late been experiencing power shortages that forced state electricity company PLN to impose rotating blackouts in the country's major cities.  The power crisis is expected to be overcome after the completion of the second phase of the government's 10,000-MW power generation program.

         Lagislator Sutan Bhatoegana some time ago said the government had guaranteed that coal producers at home would increase their production from 230 million tons per annum to 280 million tons in order to help meet the domestic need for coal.

         According to the Association of Indonesian Coal Mining Companies (APBI), Indonesia's coal production target for 2010 has been set at 275 million to 280 million metric tons.

         APBI's chief public relations officer, Herman Heru Suprob,  said on Wednesday the 2010 target was higher than last year's which reached 254 million metric tons of which 85 percent was contributed by APBI members.

         "If all goes well, we believe production in 2010 will reach 275 million to 280 million metric tons," he said.

         Herman admitted the industry had had to deal with various problems in 2009 so that it was unable to reach its production  target and even produced 20 percent less than the year before.  One of the problems, he said, was licensing, particularly for mining in  forested areas, a process that could take between six and 12 months to complete.

         He said this had happened because of lack of coordination between the central administration, in this case the energy and mineral resources ministry and regional administrations as well as between provincial and district administrations. "The industry would suffer if they would go by themselves and become egocentric," he said.

         According to a 2008 statistical energy survey, as quoted by  the MBendi Information Services portal, Indonesia has coal reserves of 4,328 million ton. Indonesia is one of the leading exporters of sub-bituminous coal which represents the bulk of Indonesian coal production.

         Based on the survey, Indonesia has coal production of 174.83 million tons in 2007, and consumption of 27.8 million tons oil equivalent. Most of Indonesia's coal reserves are situated in the southern parts of Sumatra with the balance located in Kalimantan, West Java, and Sulawesi.

         State-owned PT Tambang Bukit Asam (PTBA) is one of the five largest coal producers in Indonesia. In the past several years, almost a quarter (22 percent) of its production was exported to international markets, including Japan, Taiwan, Malaysia, Pakistan, Spain, France and Germany. The company has mineable reserves of approximately 7.3 billion tons or 17 percent of the total coal reserves in Indonesia.

         For this year, PTBA has set itself the target of producing 14 million tons of coal and a sales turnover of Rp8.9 trillion.  Of the sales turnover, Rp6 trillion was expected to come from exports and the rest from domestic coal sales.

         At the same time, the volume of PTBA coal sales is projected  at 12.224 million tons of which 4.46 million tons would be exported and 7.764 million tons sold at home.

         The state-owned coal mining firm has also set aside Rp1.5 trillion to acquire other coal mining ventures in 2010. According to its President Director Sukrisno, PTBA is exploring the possibility of acquiring coal mining companies in Kalimantan while developing its existing coal mining operations.

         Ar present PTBA was making a bid to acquire a "greenfield" mining concession (KP) in Kalimantan. "We are also interested in taking over mining ventures overseas such as in Australia and Africa," he added.

         PTBA has been intensively looking for coal mining ventures at home it could acquire but would not yet do the same abroad in 2010.  "Acquisitions overseas are included in our medium- and long-term plans," he said.

    
(T.A014/A/HAJM/B003)
2. 20:20.