NORWAY'S FUNDS CAN HELP RI ACHIEVE ITS GAS EMISSION TARGET

By Andi Abdussalam

Jakarta, May 28 (ANTARA) - The Norwegian commitment to provide Indonesia with S$1 billion for forest conservation will help accelerate the Indonesian government achieve its goals on climate change and cut its gas emissions by 26 percent by 2020.          The significant amount of the fund provided  by Norway through  Reducing Emissions under the Deforestation and Degradation Plus (REDD-Plus) scheme will change the way how forests in Indonesia are managed, Frances Seymour, director general of the Center for International Forestry Research  (CIFOR), said on Friday.          Indonesia is host to the world's third largest tropical rain forests after Brazil and Congo but forest damage in this country is the fastest in the world, reaching 1.1 million hectares a year, according to CIFOR.          The REDD-Plus is an important  scheme for Indonesia to achieve its target of reducing its green-house gas emission by 26 percent in 2020. Thus, the Norway assistance amounting to US$1 billion is instrumental to stopping forest damage in Indonesia.          The governments of Indonesia and Norway signed in Oslo on Wednesday a Letter of Intent (LoI) on forest conservation worth US$1 billion as part of their joint commitment to overcoming climate change.          The letter was signed by Foreign Affairs Minister Marty Natalegawa and Norwegian Minister of Environmental and International Development Erik Solheim at the guest house of Norway Prime Minister Jens Stoltenberg. The LoI is part of the  REDD-Plus scheme in which Norway will provide up to US$1 billion in grant for Indonesia to protect its forests.          Based on the LoI, the Norwegian government will provide the US$1 funds if the Indonesian government is able to fulfill the three stage requirement as contained in the LoI.         The first stage is capacity building which among others is carried out through the formation of a body with the authority to implement the program. The second stage is the implementation of a pilot project. The two governments will agree on a certain location for the pioneer project in Indonesia.          The third stage is the implementation of the scheme comprehensively on the national scale. During this stage payments will be made based on the performance. The funds will be provided if Indonesia is able to prove its success in preventing deforestation and forest degradation.          "We will implement our obligation as specified in the LoI because Indonesia has the obligation to save our forest, environment for our people and for our future," President Susilo Bambang Yudhoyono who witnessed the signing of the document, said.           Indonesia has therefore decided to reduce its emissions by 26 percent before 2020 for the interest of the Indonesian people and the people of the world. At present, Indonesia still faces many challenges and problems in terms of funds to reduce deforestation.          "We have to reduce poverty and increase the people's living conditions, but we also have to protect our environment in facing climate change and global warming. These are twin aims, although we know we have to deal with this with or without international help," he said.          According to Jens Stoltenberg,  under the agreement Norway is committed to support Indonesia's efforts in preserving its forests at a cost of one billion dollars provided in three stages.          "The contribution will be based on reducing forest felling. Therefore, monitoring and verification are a key to make sure that progress is being made in reducing forest felling," he said when underlining the importance of control.          To assure the implementation of the REDD-Plus scheme,  the Indonesian government is sending a team to Brazil to see from close quarters the implementation of the forest conservation cooperation program by way of the REDD+ mechanism there.          Indonesia, the president said, will especially focus on the mechanism of control and measuring the effectiveness of the program, so that Norway will act the same in implementing the program both with Indonesia or Brazil.          Besides sending a team to Brazil, the Indonesian government will also set up a credible verification and monitoring body to ensure that the REDD-Plus cooperation program would be well implemented in a six month period.          "We will establish a credible monitoring body ( to assure the program will run well)," President Yudhoyono said.          According to Forestry Minster Zulkifli Hassan, the Norwegian assistance will be managed by a special institution. "We are now talking about the body and its form. We would like to propose that the body should be in the form of a multinational trust fund which will be chaired by Pak (Mr) Kuntoro Mangkusubroto  (chief of the presidential working unit for acceleration of reforms programs). The body will be charged with tasks of arranging everything and managing the funds," the minister said.          Zulkifli said that he in his capacity as the forestry minister hoped the body would be in that (trust fund) form because it would relatively be easier.          "Its members can be representatives from Indonesia, the World Bank and others, it's up to the consensus. It (the trust fund) will handle the funds from Norway," he said.      (A014/A/H-NG/A/O001)28-05-2010 11:32:

ANAS EXPECTED TO OVERCOME "DYNASTY" POLITICS

By Andi Abdussalam

Jakarta, May 26 (ANTARA) - The election of Anas Urbaningrum to the chairmanship of the Democrat Party (PD) has allayed  fears the party would eventually be controlled by a "dynasty" but to definitively kill these fears the  party's new 'skipper' should be able to free himself from the patronage of the party's chief adviser  Susilo Bambang Yudhoyono, experts say.          "The Democrat Party does not vulgarly apply dynasty politics like the Indonesian Democratic Party of Struggle (PDI-P), so that Anas  has no major problem to develop the PD into a modern political party. He can  do it as long as he does not make Susilo Bambang Yudhoyono the object of a personalized cult," Prof. Dr Ronny Pariela of the Ambon-based Pattimura University (Unatti), said on Wednesday.          After all, Anas is not a special 'prince' or a family member of Yudhoyono. His election to chair the party simply indicates that the perception among the public that the Democrat Party could turn into a dynasty party is losing ground.          "Anas was elected chairman of the Democrat Party not because he is a family or a close relative member or a 'golden boy' of Yudhoyono but because he was elected through a genuine democratic process," political analyst Syaiful of West Sumatra's University of Andalas (Unand) said meanwhile.          Therefore, he said, the public believed that Anas Urbaningrum is able to build the Democrat Party into a modern political party. In this case, Anas should have the courage to free himself from Susilo Bambang Yudhoyono's patronage to develop the party in the future.          "Anas should emerge from Yudhoyono's shadows. It means that he must be  brave enough to make his own decisions and take his own positions, although he should continue to give a place to Yudhoyono," noted historian Anhar Gonggong said.          The noted historian was of the opinion that Anas Urbaningrum should be able to prove that the party was capable of continuing to win the hearts of the people without Susilo Bambang Yudhoyono.          It was undeniable that Yudhoyono was the decisive factor in the  Democrat Party's consecutive wins  in the past two general elections in Indonesia but Anas had  gradually to try to end this dependence, he said.           Pariela even reminded that Anas should not use Yuhoyono who had been named as the general chairman of the party's highest assembly in its second congress recently as the main symbol of the party.          "He should carry out nationalist politics management so that the Democrat Party would not undergo erosion of public confidence like what has been experienced by PDIP which puts Megawati Soekarnoputri as a personalized cult leader," Pariela said.          He said that the discourse on the idea to pick Yudhoyono's son Edhie Baskoro Yudhoyono for the party's secretary general's post in the coming five years, Pariela said it did not reflect dynasty politics.          "It is a kind of caderization with the aim of crowning Baskoro who indeed has the capability and capacity as reflected in his success to organize the congress that proceeded democratically," he said.          What is important is that Anas must improve the party's internal management and build qualified cadres.          According to Anhar Gonggong, besides strengthening the party's internal management, Anas should also find a figure who could emulate  Yudhoyono's success in winning the hearts of both the domestic and international communities.          He added that Anas's efforts to find a figure to replace Yudhoyono would be a key factor for the Democrat Party to win the 2014 presidential election.          "Anas is too little known to be nominated for president in the 2014 election. Therefore, there should be another figure who is able to convince the Indonesian people, and also win the support of the international community," Anhar said.          Syaiful in the meantime said that the Democrat Party would be able to win election if Anas is successful in building the party with his calm, mature and educated leadership style.         "The Democrat Party will win a general election of a presidential election if Anas is able to lead the party with his calm, mature and educated leadership style," Syaiful said.          He added that the Democrat Party would win if Anas could maintain his acceptable profile to all circles, including those in the networks of the Indonesian Muslim Students Association (HMI), nationalists and academicians.          More important is that he should not forget the people interest. Thus, historian Anhar Gonggong expressed hope that Anas Urbaningrum would be able to make the Democrat Party struggle for the people's interest, because there was the impression the  Democrat Party had yet to improve  the "color" of national politics.          "In my view, the Democrat Party is just like the other political parties that have yet to make any significant difference in the country," Anhar said.          Anas Urbaningrum, currently chairman of the party faction in the House of Representatives, was on Sunday elected general chairman of the Democrat Party for the 2010-2015 term after a vote in which he beat two other candidates, Marzuki Alie, the present Speaker of the House of Representatives, and Andi Malarangeng, the current sports and youth affairs minister.      (T.A014/A/HAJM/16:05/a014) 26-05-2010 16:31:1

RI CAREFULLY WATCHING EUROPEAN FINANCIAL CRISIS

By Andi Abdussalam

Jakarta, May 26 (ANTARA) - Indonesia will continue to cautiously watch a possible escalation of the Greek financial crisis although its economic fundamentals are relatively strong.          "The world economy is improving but we have to maintain cautiousness against risks that could arise as a result of the financial crisis in Greece," Chief Economic Minister Hatta Rajasa said.          Basically, Indonesia's good and stable macroeconomic fundamentals are able to protect the country from the impact if the financial crisis in Greece is worsening.          "But we have to keep abreast of the developments of the Greek crisis and be ready to take appropriate steps," the minister said on Tuesday.           The same concern was also expressed by outgoing Finance Minister Sri Mulyani Indrawati last week.          Speaking to the House plenary on the macro economy and fiscal policy for the 2011 budget year, Sri Mulyani said that the government would keep watch of financial crisis that was taking place in European countries. This is a challenge for Indonesia in formulating its fiscal policies in 2011.          "The mixed signs of recovery in on hand and uncertainties on the other in Europe are a challenge Indonesia is facing in formulating its fiscal polices for 2011," Mulynai said.          According to reports, Greece has been facing financial crisis with an overall public debt of about 300 billion euros (399 billion dollars).  The Greek debt drama has mushroomed into the biggest crisis in the euro's 11-year history, sparking concerns that it could spread to other weak members of the single currency area battling runaway deficits and debt.          According to Sri Mulyani, the Greek financial crisis has forced Western European countries to take salvaging policies. Although the economic turmoil has begun to recede, yet corrective steps still needed to be taken amid the difficult struggle that will still last for sometime, including how to reduce budget deficit.          "The European financial crisis still keeps uncertain potentials that burden the recovery of the world economy," Sri Mulyani, who will be assuming her post as a managing director of the World Bank next month, said.          She said the European economic crisis reminded that even though it was able to give solution and create economic growth in short term, bad and unsustainable economic policies such as poorly planned fiscal expansion would in the long run create serious and deep economic crisis.          "Indonesia must continue to ensure that its economic policies would be formulated on the basis of prudential combination where macro economic instruments are aimed at maintaining long term equilibrium and economic stability, while structural constraints must be overcome by comprehensive and sustainable reform polices," she said.          At present, it could be said that the global economic situation is still fragile and full of uncertainties, despite the fact that in general term it is showing a trend of recovery.          "Countries like Portugal, Italy, Spain, Ireland and Greece have the potentials to experience a heavy fiscal condition with the government debt ratio far above the agreed maximum level of 60 percent. This condition could cause the weakening of confidence in these countries' state debentures and in euro currency," she said.          She said that the threat of the global crisis --as a result of the European economic crisis triggered by expansive fiscal policies with high and long term budget deficits-- would lead to a debt crisis for the state.          "The European financial crisis has the potential to create financial crisis escalation as a result of the systemic impact of declining confidence. The weakening of the euro currency and the fall of state debentures have the potentials to affect the financial and banking sectors," Sri Mulyani said.          However, the impact of the Greek financial crisis has so far no  serious effect on Indonesia's economy as reflected in the country's economic growth (5.7 percent), upward investment trend (25 percent) and significant growth of industries (4.01 percent) in the first quarter of 2010.          "The economic turmoil that plagues Greece will be overcome soon so that it would not have serious impact on the global and Indonesia's economies," Senior Deputy Governor of Bank Indonesia (BI) Darmin Nasution said.          The impact of Greek financial crisis was only sligtly felt by the country's stock exchange.          "The stock price index (IHSG) happened to drop as a result of Greece's financial crisis. Indeed there was a downward trend in stock prices. It was the influence of the same trend in Greece, Portugal and Spain," Hatta Rajasa said.          The minister made the comments when last week the composite stock price index (IHSG) fell 112.7 points or 3.18 percent to the 2,846 level and the weakening of the rupiah from Rp9,020 to Rp9,110 per US dollar.          He was sure that the decline in the stock price index would not continue because Indonesia's economic fundamentals were still well maintained.          Therefore, the government is optimistic that Indonesia?s economy will grow 6 percent in the second quarter of 2010. "I am optimistic it will grow 6.0 percent in the second quarter. Many quarters have even predicted our economic growth will exceed 6.0 percent in 2010, or higher than the target of 5.8-6.0 percent," Hatta Rajasa said.          Darmin Nasution also shared Rajasa's optimism, saying that Indonesia's economic growth would reach 6 percent at the end of the year, though there was economic turmoil in Europe.          "We hope it would be more that the targeted 5.8 percent. It is not impossible for the country to reach a growth of 6 percent," Darmin Nasution, who is also acting governor of the Indonesian central bank, said.      (T.A014/A/H-NG/A/O001) 26-05-2010 11:36:

ANGGITO ABIMAYU BACK TO CAMPUS

By Andi Abdussalam

Jakarta, May 22 (ANTARA) - The Finance Ministry's head of  fiscal policies, Anggito Abimanyu, who was widely considered to be  one of the strong candidates to replace Sri Mulyani quit his post earlier this week after President Susilo Bambang Yudhoyono named somebody else to head the ministry.          Anggito, who had actually been serving as  deputy finance minister since January, decided to resign following the appointment of Agus Martowardojo as the finance minister and Anny Ratnawati, the finance ministry's director general of budget affairs, as  deputy finance minister.          Did  he quit his job as fiscal policy division head due to his disappointment? Where will he go after his 10 years of service  with the finance ministry?     "I do not question the appointment of Anny Ratnawati as the deputy finance minister. But I felt that my professional pride has been offended," he said. He said he would go back to campus to resume his career as an educator.          Anggito had signed a kind of contract as deputy  finance minister in January but so far he could not  be officially installed because his civil service rank had not yet reached to the required level.          He was one of strong candidates to replace outgoing Finance Minister Sri Mulyani Indrawati, who will assume the post of managing director at the World Bank on June 1.          Therefore, Anggito was believed to be disappointed by the appointment of Anny Ratnawati, because he had previously signed a kind of contract as vice finance minister.          He said that his resignation was due to the fact that his professional pride had been hurt. "One should not misunderstand. I am not seeking a post. I resign because I feel I have been  professionally  belittled," he said.          Anggito said he had resigned because he was also willing to return to the academic world at his campus, the Yogyakarta-based Gajah Mada University (UGM) as a lecturer.          "I have my own choice now, and I have decided to return to the UGM which actually has been my will since the beginning. I have been (serving at the finance ministry) for ten years, and now is the time for me to return," he said.           He said that he had been waiting for his official appointment as the vice finance minister for six months but there had been no decision made until now. "So, when the definitive vice minister has been appointed, it is now time for me to return to UGM," he added.           In response to Anggito's decision to resign, Chief Economic Minister Hatta Rajasa expressed hope that he would remain in  the government's service.          "I have talked to Anggito at the transfer of post for the new finance minister about the fact that we still need his services," Hatta Rajasa said.          The coordinating minister for economic affairs said that Anggito was a good, hard working and tough person. "I hope we will be still together in the government," he said.          Though Hatta Rajasa hoped he would remain in the government's service, Anggito is firm on his decision to quit the ministry of finance. He said he had been allowed by the new finance minister to quit.          "Pak (Mr) Agus said he was sincere when he let me go. He also understood why I should go soon as otherwise it would disrupt the state budget," he said on the sidelines of the parting ceremony between outgoing finance minister Sri Mulyani Indrawati and her successor Agus Martowardojo here on Friday night.           Anggito said the new finance minister would soon relieve him of his duties as head of the finance ministry's fiscal policy division. He said he would be relieved of his tasks as of Monday, May 24, 2010, but promised to keep providing the ministry of finance with inputs and support.          "I decided to quit. He understood my decision and relieved  me from the tasks. I promised I would continue to provide assistance from outside," he said.          Economic observer Sri Edi Swasono of the University of Indonesia (UI) said the step taken by Anggito to resign was quite reasonable because he was deeply disillusioned with the failure to assume the deputy finance minister's post.          "This must be taken as a valuable lesson so that the state would really serve as a place for civilized society. I don't know how he feels it but if it were me I would have been very disappointed," he said.          He said that even though he regretted what befell Anggito, yet he still criticized the economic views Anggito was professing, namely neolibralism which was pro-market. "I hope his return to the Gajah Mada University would not spread the neoliberalism idea to the campus.          Edi Swasono said he hoped that Anggito Abimanyu would return to the constitutional economy so that when he gave a lecture to his students the materials would be in accordance with the constitutional economy.          "The constitutional economy is a system which refers to Article 33 of the 1945 Constitution and is not fully taking side with the free market system," he said.     (T.A014/A/HAJM/20:45/H-YH)22-05-2010 20:55:0

GOVT UPBEAT OVER UPWARD INVESTMENT TREND

By Andi Abdussalam

Jakarta, May 21 (ANTARA) - Indonesia's investment climate is improving  and investment is showing an obvious upward trend as in the first quarter of this year.          With the upward investment trend, the government is convinced that it would be able to boost investment this year to a figure of Rp2,200 trillion. "We are optimistic we can draw up to Rp2,200 trillion worth of  domestic and foreign direct investment," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Friday.          Not only domestic investment, foreign investment is also showing an increasing trend. "The trend of foreign investment in our country is rising. Japan for example, is also interested in developing industrial zones in Indonesia," he said.          According to Chief of the Investment Coordinating Board (BKPM) Gita Wirjawan, investment in the first quarter of 2010 was showing a positive trend  and was expected to continue until the end of the year.          "We have set a target of a 15 percent increase as compared to that last year, but the upward trend in the first quarter which almost reached 25 percent indicates a good momentum for Indonesia to make bigger investment," the BKPM chief said.          He said that considering the licenses that had been issued, the investment trend would continue to increase. "I am optimistic with the figures in the first quarter. Usually investment in the first quarter is slow but this time it is an exception," he said.          At least Rp42 million have been invested in the first quarter of this year. "Investment in the first quarter of this year reached Rp42.1 trillion consisting of 574 projects," Wirjawan said. Foreign investment was recorded at Rp35.4 trillion or US$3.8 billion in 424 projects while domestic investment accounted for Rp6.7 trillion in 150 projects.          The biggest foreign investment was made in the transportation sector, warehouses and communications amounting to US$941.5 million in 23 projects. In the meantime, the biggest domestic investment of Rp1.9 trillion was made in seven projects in the transportation sector, warehousing and communications.          In the meantime, Achmad Zen Umar Purba, an observer who is also chairman of the Aji Nugroho Reksodiputro Foundation (ABNR), said that in order to achieve an economic growth target of about seven percent in 2014, Indonesia needed a big foreign investment.          "At present, developing countries are competing to attract foreign investors," Achmad Zen Umar Purba told a seminar recently.          He said to achieve 7.0 percent economic growth in the future, at least an investment of  up to Rp2,000 trillion would be needed every year.          For this purpose, he said, Indonesia needed to increase its investment through foreign investors. This was because the state budget was only able to provide 20 percent of the Rp2,000 trillion it needed to invest annually until 2014.          He said that Indonesia was still far behind other ASEAN countries in attracting foreign investors. This was reflected in the report "Doing Business in 2010" issued by the World Bank where Indonesia occupied the 122nd position among 180 countries.          Thailand was ranked in the 17th position in the list followed by Malaysia in the 23rd position and Vietnam in the 93rd position. Singapore occupied the first rank.         Therefore, the government has to work hard to attract more investment. For the development of the infrastructure alone to generate economic growth at 7.7 percent in 2014, it will need an investment of Rp1,500 trillion.          Hatta Radjasa  said the development of infrastructure projects were vital for improving connectivity among regions in the country.          "The projects include 20,000 kilometers of road construction   and improvement, 15,000 megawatt electricity plants and expansion  of main ports and development of new ports that would be integrated with the special economic zones," he said.          He said part of the investment would also be used to finish the dry port project in 2010, increase the capacity of railways in Sumatra, Java and Kalimantan and "the development of double tracks to promote delivery of coal and other commodities in Sumatra and Kalimantan as of 2011."     The minister said growth should be spread across the country through  synergizing central and regional policies. "The synergic central and regional policies include development of prime sectors or products and clusters to increase added value. Such policies also include debottlenecking and development of new economic growth centers and planning of special economic zones and extension of supporting incentives," he said.          With regard to investment growth he said coordination would be done to eradicate sectoral egoism, reduce real interest to promote long-term financing and seek alternative funding resources including from the workers' insurance firm Jamsostek and Pension Fund insurance programs.          Hatta said an investment of up to Rp10,000 trillion for the next five years was needed of which 50 percent were to come from private parties national or foreign to assure achievement of economic growth.          To achieve economic growth as has been targeted until the end of 2014 exports are expected to grow to US$200 billion until the year.          "It could be achieved by improving competitiveness of the Indonesian companies, investment atmosphere and penetration of Indonesian products into global markets especially in East Asia," he said.        (T.A014/a/H-NG/a014)21-05-2010 23:33:

NEW FINANCE MINISTER ACCEPTABLE TO MARKET

By Andi Abdussalam

Jakarta, May 20 (ANTARA) - Even though his experience in the macro economic sector is doubted, newly named Finance Minister Agus Martowadojo is a professional banker who has a good track record in micro economies, understands the real sector and is acceptable to the market, analysts say.          "I think he is acceptable to the financial market and investors. He is independent, reliable, competent, professional and non partisan," Bank BNI economist Ryan Kiryanto said.          President Susilo Bambang Yudhoyono on Wednesday night appointed Bank Mandiri President Director Agus Dermawan Wintarto Martowardojo as the new finance minister to replace Sri Mulyani Indrawati, who will assume the post of managing director at the World Bank as of June 1.          According to Umar Juoro, chairman of the board of directors of the Center for Information and Development Studies (Cides), Agus who has more capabilities in the micro sector is acceptable to the financial market.          "The financial market likes the new finance minister," Umar Juoro said. His lack of experience in the macro economic sector could be overcome by his vice minister, Anny Ratnawati, and by directors generals in the finance ministry.          On Wednesday, President Yudhoyono also named Director General of Budget Affairs at the Finance Ministry Anny Ratnawati as deputy finance minister.          Umar Juoro expressed his hope that the new finance minister would continue the bureaucratic reforms launched by his predecessor Sri Mulyani. "He has to give a priority to the reforms, especially in the field of taxation and budget efficiency," he said.          Ryan Kryanto concurred with Juoro's argument, saying that the new finance minister must continue the bureaucratic reforms sphere headed by Sri Mulyani. For this purpose, Agus Martowardojo must maintain good communications with all stakeholders.       In other aspect, the new finance minister must also be able to accelerate the absorption of budget in order that the real sector development could be generated. "He has to have more harmonious coordination with Bank Indonesia (BI) as the holder of the monetary authority," he said.          Economist Tjuk K Sukiadi of the Surabaya-based Airlangga University (Unair) said however that Agus Martowardojo had to have the courage to solve and put in order the tax problem in the finance ministry.           "As a professional, all know that he is a successful banker but as finance minister who has to settle macro economies, he has to prove his ability to put in order the problems of taxes left by Sri Mulyani," he said.          The ministry of finance needs courageous personality like that of Sri Mulyani. The taxation problems left by Sri Mulyani are proof that macro economy needs not only smart and professional people but also courageous ones.          "At least Pak (Mr) Agus must be able to carry out economic reforms and to boost the performance and honesty of tax officials (who receive payments six times better than other civil servants) six times better," he said.          Besides carrying out improvements within the taxation institution itself, the new minister should also be professional in handling tax dodgers of major groups like the Bakrie Group.          Meanwhile, Indra Nur Fauzi, director f Regional Economic Development Institute (REDI), has doubts about the new minister's capability in the macro economic sector.       "Although Agus Martowardojo is experienced in the banking sector, yet  we have doubts about his capacity as new finance minister in handling macro economies, especially in the fiscal policies," he said.         In general, however, the appointment of Agus as new finance minister was welcomed by businesses.          "I agree to President Susilo Bambang Yudhoyono's wise decision to choose Agus Martowardojo as new finance minister to replace Sri Mulyni, because he was  able to save Bank Mandiri from the  crisis,  to make reform of the bank, and have problematic debtors pay their debts," Franky Sibarani of the Indonesian Employers Association (Apindo) said.          Franky said that as a banker, Agus understood well issues related to real sector and therefore he was expected to be able to help the government improve developments of the real sector. "As a banker, Agus is a business player who knows a great deal about the real sector, and that is what businessmen really want," Franky said.         Young entrepreneurs also welcomed the appointment of Agus as finance minister. "We supports Agus,," Erwin Aksa, chairman of the Indonesian Young Entrepreneurs Association (Hipmi) said.          Erwin Aksa, who is also chief executive officer" (CEO) of Bosowa Grup, said that Agus was close to the real sector and understand well the need for investment of the business world.          Erwin said that at present many projects were facing difficulties to run well due to the fact that investments were still confined to commitment only because the fiscal policies had not yet been made interactive with business.          "If tax incentives run well, investments will also run well. So, a banker who is named finance minister would bring fresh winds to businesses," Erwin said.          Agus DW Martowardojo who was graduated from the School of Economics of the University of Indonesia (UI) in 1984 is an experienced banker. He occupied the post of director at Bank of America in 1984 and Bank Niaga from 1986 to 1994.     In 1995 he was appointed president director of Bank Bumiputera for three-year term. He was later appointed president director of Export-Import Bank (Bank Exim) in 1998, president director of Bank Permata from 2002 to 2005 and president director of Bank Mandiri since 2005.     He also worked as one of the leaders of the Indonesian Bank Restructuring Agency (IBRA) in 2002.      (T.A014/A/HAJM/12:50/A/O001) 20-05-2010 12:49:

RI TO ASK FOR HALT TO PROPHET DRAWING CONTEST

By Andi Abdussalam

           Jakarta, May 19 (ANTARA) - Following the publication by Danish newspaper Jyllands-Posten of Prophet Muhammad cartoons that sparked protests in the Muslim world in September 2005, another group, Everybody Draw Mohammed Day, is now holding a drawing contest depicting the face of the prophet of Islam.

         'Everybody Draw Mohammed Day' is a Facebook group owned by an American which has announced that it will hold a drawing contest depicting the face of the prophet Muhammad, an act which is seen as an insult to Islam.

         Depicting the prophet's face is strictly forbidden in Islam. This Facebook group may trigger protests among Muslims, just like what already happened to the prophet caricatures last year.

         Nevertheless,  the Facrbook group is now to hold a drawing contest, sketching the prophet's face, which Islamists fear to create cult in the personality of the prophet among Muslims
    Indonesian Minister for Communications and Informatics Tifatul Sembiring said he would soon write to the Facebook administrator in the United States asking that the Facebook account to be used for the drawing contest be removed.

         The account is feared to spread religious provocations and spark reactions that would disturb interfaith religious harmonies.

         According to DavidKhoirul.com, the group now has 39,025 fans. More than 14,276 members said they would join the contest, which is going to be held on May 20, 2010.

         Everybody Draw Mohammed Day was created on April 25 and now starts to be popular, having fans from both Muslim and Muslim Facebookers.

         The group info says: 'May 20th 2010 is draw Mohammed day! Help spread knowledge about this important day -- invite your friends!?
    The drawing contest to depict the face of the Prohpet Muhammad is feared to spark protests such as those triggered by the publication by Jyllands-Posten of the Prophet cartoons years ago.

          Danish Muslim organizations that objected to the depictions responded by holding public protests attempting to raise awareness of Jyllands-Posten's publication. Further examples of the cartoons were soon reprinted in newspapers in more than 50 other countries, further deepening the controversy.

         This led to protests across the Muslim world, some of which escalated into violence with police firing on the crowds (resulting in a total of more than 100 deaths), including setting fire to the Danish Embassies in Syria, Lebanon and Iran, storming European buildings, and desecrating the Danish, Dutch, Norwegian, French and German flags in Gaza City.

         Various groups, primarily in the Western world, responded it by endorsing the Danish policies, including "Buy Danish" campaigns and other displays of support.

         Critics of the cartoons described them as Islamophobic and racist and argued that they are blasphemous to people of the Muslim faith, are intended to humiliate a Danish minority, or are a manifestation of ignorance about the history of Western imperialism.

         It is in this respect that the drawing Prophet Muhammad's face contest should be halted in order to prevent the emergence of religious disharmony. Thus, Indonesia wants that the Facebook account for the event should be removed.

        Tifatul Sembiring will ask the closure of the account from the Facebook administrator in the United States. It is impossible for the country to close it at home because it would affect all Facebook accounts in Indonesia.

         "Closing it in Indonesia would affect all Facebook accounts in the country. Therefore, we all need to be aware of this," the minister said here on Wednesday.

         Therefore, the minister would write a letter to the Facebook administrator in the United States regarding the plan to hold a Prophet Muhammad drawing contest.

         He said the plan of the Facebook administrator to hold a Prophet Muhammad drawing contest was a loophole provocation of religious harmony. "We also call on the people not to be provoked by the content of the account. We should be cooling down in the face of the plan," he said.

         On the occasion, the minister also said that he would reconsider the request of certain groups in society to restrict the internet contents deemed negative and contains racist issues, pornographic, gambling, violence and defrauding.

        "Matters containing insults of race, ethnics, religions and fraud should be restricted. We cannot avoid them all but must be restricted," the minister said.

    
(A014/A/HAJM/A/S012) 19-05-2010 23:03

ANTI-GRAFT BODY TO HAVE INDEPENDENT INVESTIGATORS?

 BY Andi Abdussalam

          Jakarta, May 18 (ANTARA) - Amid National Police's plan to withdraw four investigators from the Corruption Eradication Commission (KPK) and the possible step by the Attorney General's Office (AGO) to follow suit,  some quarters have raised the idea that the anti-graft body should have its own independent investigators.

         However, some others argued that the KPK should not be institutionalized with its own investigators so that collusion within the commission could be prevented. After all, the law on the anti-corruption body has stipulated that its investigators come from the police force and attorney general's office.

         "The existence of the KPK investigators should not be institutionalized. A withdrawal of police investigators is a routine and normal procedure," Gayus Lumbun of House Commission III on legal affairs said.

         National Police Headquarters is preparing four officers to be assigned as investigators of the KPK to replace four others who will be withdrawn from the anti-graft body.

         "We are preparing four new investigators to replace four others who would be withdrawn from the KPK," Deputy Head of National Police Public Relations Division, Brig. Gen Zaenuri Lubis, said.

         In the meantime, the AGO is also considering to follow the police force's step. Junior Attorney General Darmnono said his office did not rule out the possibility of withdrawing its investigators from the KPK such as that being done by the police.

         "It is impossible for us to assign investigators too long in an institution. Assigning an investigator to a one place too long could lead the investigator concerned to be involved in judicial mafia practices," Darmono said.

          According to Gayus Lumbun who is also a member of the Indonesian Democratic Party of Struggle (PDIP) faction in the House of Representatives (DPR), investigators who are permanently assigned in an institution are prone to collusion practices.

         "As an ad hoc institution, the KPK does not need permanent investigators. Moreover, investigators in other institutions like the police force and the prosecutor's office also always change their assignment services," he said.

         However, his colleague from Commission III, Bambang Soesatyo of the Golkar Faction supported the idea that the KPK should have independent investigators. He supported the idea which was raised by former KPK acting chairman Tumpak Hatorangan Panggabean and former acting deputy chief Mas Achmad Santosa.

         Both said that the KPK should have independent investigators to ensure independent and smooth corruption eradication in the country. "In my opinion, it is time for the KPK to have its own independent investigators in order not to depend on other institutions in dealing with corruption cases," Tumpak said.

         Bambang Soesatyo supported this idea. "I agree with the KPK proposal so that the KPK would really be independent, including having independent investigators," Soesatyo said. He said that for the purpose, Commission III would discuss how to make the KPK really independent.

         According to Tumpak, the way to spearhead the formation of independent investigators is by the revision of the law on corruption eradication. Pending the revision, the KPK could ask for Supreme Court ruling on the need of independent investigators at KPK who are not from the police or the prosecution office.

         Meanwhile, Mas Achmad Santosa said KPK investigators from Polri and prosecution office may have conflicting interests if they deal with corruption cases that involve police or prosecution office personnel.

         Thus, the KPK should start to arrange an academic concept on independent investigators, including the mechanism of recruitment and career development. After all, the KPK has the support of the public, government, and the DPR.

         "Anyway, a legal umbrella is set up by the government and the political institution that we call DPR," Mas Achmad said.

         Indonesia Corruption Watch (ICW) Deputy Coordinator Emerson Yuntho said the Constitutional Court (MA) could provide a judicial opinion for the KPK to have an interpretation of independent investigators.

        "The KPK can ask for a judicial interpretation from the MK regarding independent investigators," Emerson said. This would reinforce the KPK legal argument to have independent investigators who are free from having duplicated loyalty to more than one institution.

         Emerson said that the argument that there was no regulation arranging the existence of independent investigators could be countered with what is stipulated in Article 3 Law No. 30 / 2002 on the KPK. Article 3 of the law states that the KPK is a state institution, which is independent and free from any power in carrying out its task and authority.

         Regardless of whether or not the KPK will have its own investigators, the police force is preparing to four new police officers to replace ones already serving at the KPK.

         Brig. Gen Zaenuri Lubis said that in order to be assigned as KPK investigators, police officers should pass through several competence tests so that they could work maximally. The competence test includes law on corruption crimes and procedural laws on corruption.

         "We will withdraw two officers with a commissioner rank and two others with an adjunct commissioner rank. They will be assigned in a position one level higher or in a position equal to their present post," he said.

    
(T.A014/ H-NG )  18 - 5 - 2010
    

INDONESIAN POLICE CONTINUING CRACK-DOWNS ON TERRORISTS

By Andi Abdussalam

Jakarta, May 15 (ANTARA) - The Indonesian police's Densus-88 anti-terror unit has over the past two weeks killed five terror suspects and arrested at least 16 others in  crackdowns on newly discovered  terror networks in the country.          Police said evidence confiscated during the arrests and the shooting to death of terror suspects indicated that they had planned to attack state and foreign dignitaries at the coming Independence Day celebration next August.          Although notorious top Southeast Asian terrorist leaders Dr Azhari and Noerdin M Top have been eliminated , terrorist cells  continue to develop in Indonesia with a target to turn Aceh province as their base in Southeast Asia.          Early last March, the anti terror unit was successful in disclosing the terrorist target to make Aceh as a base in Southeast Asia after they arrested 19 terror suspects in Aceh, West Java and Jakarta early last March.          The arrests led to the disclosure of the hideouts of Dulmatin, a highly-wanted suspected terrorist in terror movements in Java, Ambon, Poso and in the Philippines. Dulmatin and two accomplices were shot dead in separate raids in Pamulang, South Tengerang near Jakarta.          Not more than two months after Dulmantin's raid, anti-terror police were again seized hideouts of terror suspects killing five and arresting at least 16 others over the past two weeks.          On Friday last week, National Police spokesman Inspector General Edward Aritonang said anti-terror police unit had arrested 12 people suspected to be members of a terrorist network holding military-like training in Aceh recently.          "Yes, it's true that arrests have been made in three locations on 12 alleged terrorists," he said. Densus 88 anti-terror unit arrested three of them in Setu, Bekasi, West Java, seven in Pasar Minggu, South Jakarta, and one in a hotel in Menteng, Central Jakarta and another one in Petamburan, Central Jakarta.           Five days later, police shot dead five suspected terrorists in shootouts in Cililitan, East Jakarta, and Cikampek, West Java. One terrorist suspect was arrested in the shootouts.           Edward Aritonang said in Cililitan, police shot dead three terror suspects. One of them was identified as Maulana while the other two still could not be identified. Maulana who was armed with a revolver was shot dead as he resisted arrest.          "Maulana's two accomplices were dead on their way to the hospital," he said. Maulana had been named a fugitive since his alleged involvement in the terrorist activity in Jantho, Aceh Besar district, in February 2010.          On the same day, police also shot dead two terror suspects and arrested another in the West Java town of Cikampek. One of the slain terrorist suspects was identified as Saptono. He also had been put in the wanted list for his alleged part in the terrorist activity in Jantho, Aritonang said.          Saptono was the younger brother of Jaja, one of terror suspects shot dead in front of Lampeung police precinct in Aceh Besar, sometime earlier, he said.         "Saptono was good at using firearms and knew much about ammunition," he said.         The next day, following the shooting to death of Saptono, police made other arrests in Central Java. Three people were arrested  in Solo, Central Java, on May 13, for alleged involvement in terrorism. They are linked to terrorism training activities unveiled in Aceh last February.          "One of them is believed to play a role as a training planner," National Police deputy spokesman Brigadier General Zaenuri Lubis said. The people did not defy the arrest and so no fire had been opened like in the arrest of six alleged terrorists in Cawang, East Jakarta, and Cikampek, West Java on Wednesday, May 12, 2010.          "The arrests in Solo and Sukoharjo were the continuation of arrests made in Cawang and Cikampek," he said.          From them in Solo the police confiscated some weapons and hundred rounds of ammunition. "They were taken to Jakarta that day for investigation," he said.          Documents confiscated from terror suspects indicated that they had planned to attack the Independence Day ceremony next August 17.          Speaking at a press conference here on Friday, Danuri said the police learned about their plan from documents confiscated from terror suspects arrested in Bekasi, West Java, and in Sukoharjo, Central Java, on Wednesday and Thursday.          "They planned to attack all officials attending the ceremony. All the state officials at the event would be killed, including state guests," he said.          For the purpose, the terror group had assigned a suspect named Suhardi alias Usman to take 21 firearms including a grenade launcher. After the attack was successfully carried out and all state officials were killed, they would replace the country's democratic system with a system of their choice.          Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto who also attended the press conference meanwhile said what the national police chief had disclosed was not fabricated but based on the results of research, study and interrogation of suspects.          In the meantime, President Susilo Bambang Yudhoyono praised the police performance in the fight against terrorism marked by the arrests of members of terrorist networks in the past two days.          President Yudhoyono viewed the police performance had been good but hoped for constant alertness. "What the police have done is good and deserves appreciation. However the process does not stop here. In the future the police must increase their alertness. Particularly the President said the state must not lose or must not be off guard against terrorism actions," Presidential spokesman Julian Aldrin Pasha, said.      (T.A014/A/HAJM/14:20/f001)15-05-2010 14:24:5

GREECE'S FINANCIAL CRISIS NOT TO AFFECT RI ECONOMY

By Andi Abdussalam

Jakarta, May 13 (ANTARA) - The financial crisis in Greece has so far had no serious effect on Indonesia's economy as reflected in the country's economic growth, upward investment trend and significant growth of industries in the first quarter of 2010.          "The economic turmoil that plagues Greece will be overcome soon so that it would not have serious impact on the global and Indonesia's economies," Senior Deputy Governor of Bank Indonesia (BI) Darmin Nasution said on Wednesday.           The impact of Greek financial crisis was only felt by the country's stock exchange but it was not too serious.           "The drop of the composite stock price index (IHSG) was triggered by global conditions as a result of Greece's financial crisis. Indeed there was a downward trend in stock prices. It was the influence of the same trend in Greece, Portugal and Spain. It is a trend in Europe," Chief Economic Minister Hatta Rajasa said last week.          The minister made the comments when the composite stock price index (IHSG) fell 112.7 points or 3.18 percent to the 2,846 level and the weakening of the rupiah from Rp9,020 to Rp9,110 per US dollar.          He said the decline in the stock price index would not continue because Indonesia's economic fundamentals were still well maintained.          According to an AFP report, Greece has been facing financial crisis with an overall public debt of about 300 billion euros (399 billion dollars).  The Greek debt drama has mushroomed into the biggest crisis in the euro's 11-year history, sparking concerns that it could spread to other weak members of the single currency area battling runaway deficits and debt.          The financial crisis in fact has had a positive impact on the composite share index and boosted the economic growth, Hatta Rajasa. "What is important is that how to keep the balance between the capital inflows and the investment strategy. This is important," the minister said.          Therefore, the government is optimistic that the domestic economy will grow 6 percent in the second quarter of 2010. "I am optimistic it will grow 6.0 percent in the second quarter. Even many quarters have predicted our economic growth will exceed 6.0 percent in 2010, or higher than the target of 5.8-6.0 percent," Hatta Rajasa said.          He said the second-quarter growth would be helped by improved investment and export performances. "Thank God our economy grew 5.7 percent in the first quarter. Actually, our economy could grow above 6.0 percent in the first quarter. Unfortunately, our budget spending was negative. This will become a center of our attention why the budget spending does not run quickly," he said.          Darmin Nasution also shared Rajasa's optimism, saying that Indonesia's economic growth would reach 6 percent at the end of the year, though there was economic turmoil in Europe. "We hope it would be more that the targeted 5.8 percent. It is not impossible for the country to reach a growth of 6 percent," Darmin Nasution, who is also acting governor of the Indonesian central bank, said.          The Central Bureau of Statistics (BPS) reported Indonesia's year-on-year (YoY) economic growth in the first quarter of 2010 was recorded at 5.7 percent or 1.9 percent on a quarter-to-quarter (qtq) basis.          "In the first quarter of 2010 the main growth generators were the trade sector, hotels and restaurants. These sectors' YoY growth was 9.3 percent. The YoY growth of the agriculture sector was 18.1 percent," BPS Chief Rusman Heriawan said.          He said the trade sector rapidly grew in line with world economic growth which was now on a recovery track. This was also reflected in an export growth of 19.6 percent which contributed 7.7 percent to the first quarter growth.          The same thing also happened to imports which grew 22.6 percent and contributed 6.7 percent to the economic growth.          Investment in the country was neither affected by the Greek financial crisis. Chief of the Investment Coordinating Board (BKPM) Gita Wirjawan said investment in the first quarter of 2010 was showing a positive trend which was expected to continue until the end of the year.          "We have set a target of a 15 percent increase as compared to that last year,  but the upward trend in the first quarter which almost reached 25 percent indicates a good momentum for Indonesia to make bigger investment," the BKPM chief said.          He said that considering the licenses that had been issued, the investment trend would continue to increase. "I am optimistic with the figures in the first quarter. Usually investment in the first quarter is slow but this time it is an exception," he said.          Wirjawan said that in the recent "Infrastructure Summit 2010" held on April 14-17, a number of foreign companies had registered and waited for a number of projects offered by the government.          "There are nine bidder firms, among others from Japan, South Korea and China, for a 379 km railway project," he said.           Chief of the Investment Coordinating Board (BKPM) Gita Wirjawan said investment in the first quarter of this year reached Rp42.1 trillion.          "Investment in the first quarter of this year reached Rp42.1 trillion consisting of 574 projects," Wirjawan said.          He said that the foreign investment was recorded at Rp35.4 trillion or US$3.8 billion in 424 projects while domestic investment accounted for Rp6.7 trillion in 150 projects.          In the meantime, national non-oil/gas processing industries grew 4.01 percent in the first quarter of this year driven by high growth in transportation equipment, machinery, tools as well as cement and non-metal mining industries.          "I am convinced the growth in the first quarter will reach 4.01 percent. The industrial sector's growth will be relatively better in the next quarter," head of research and industrial development (BPPI) of the ministry of industries, Dedi Mulyadi, said.     (T.A014/a/H-NG/F001) (T.A014/A/A014/F001) 13-05-2010 11:38:

CRACK-DOWN ON FOREST CRIMES IN INDONESIA RUNS SLOWLY

By Andi Abdussalam

Jakarta, May 12 (ANTARA) - Although the government has shown a serious will to eradicate illegal logging by forming a joint team of investigators to crack suspected cases, efforts to fight the criminal practice and enforce the law in the forestry sector still seems to be proceeding rather slowly.          Forestry Minister Zulkifli Hasan even complained about the slow progress achieved in the fight against crimes in the forestry sector. The minister voiced the complaint when he received representatives of Southeast Asia Greenpeace in Jakarta on Tuesday.          "I don't understand why efforts to enforce the law are running  very slowly. We have fielded a joint team and a task force but forest crimes that happen in  front of our very eyes seem so difficult to solve," the minister said.          The Indonesian government is intensifying its efforts to fight illegal logging by involving a mafia eradication task force which is also investigating cases both in  court and in the field.          Last month, a  presidential Judicial Mafia Task Force was assigned to look into lenient court verdicts so far handed down to illegal logging suspects while an Illegal Logging Mafia Eradication Task Force was also fielded to examine illegal logging practices in the field.          The crack-down on forestry crimes was launched after President Susulo Bambang Yudhoyono repeatedly expressed concern about illegal logging cases. The president also called for cooperation with non-governmental organizations to help find ways to counter the predatory practice, saying that there was a mafia ring behind illegal logging.          The government's joint team of investigators from the police force, prosecutor's office and the ministry of forestry  focused its first phase investigations on alleged forest mafia cases in North Sumatra and Central Kalimantan provinces.          "We have set 2010 as the year of law enforcement in the forestry field. In the first phase, investigations will  focus on alleged forest crimes in North Sumatra and Central Kalimantan," Aulia Ibrahim, forest investigation and protection director of the Directorate General of Forest Protection and Nature Preservation (PHKA), said last month.          Forestry Minister Zulkifli Hasan said on Tuesday that his ministry was investigating the case of  two million hectares of forest whose function had been converted to an oil palm plantation and a mining business site.          For the enforcement of the law, the forestry ministry will set up a special forestry task force which would reinforce the joint team of investigators from the forestry ministry, police, prosecutor's office and the Corruption Eradication Commission.          The minister also asked the Greenpeace representatives to help monitor local governments in issuing licenses for the opening of a plantation and mining site.          "On the issuance of a license for a land use, our position is at the end of the administrative process. Therefore, I cannot reject it if the local government has already provided a recommendation and the project is already equipped with an environment impact analysis and approved by the House," the minister said but admitted that he had not signed any request for a land conversion in the last seven months.          In the meantime, Director General for Forest Protection and Nature Conservation Darori said the special forestry task force would do its best to maximize its findings about firms opening illegal oil palm plantation and mining site in the forest areas.          He admitted that enforcement of the law had been running at the snail's pace but in the last four months the ministry of forestry had been maximizing its efforts to net forest squatters and to impose corruption crime charges on cases that caused losses to the state.          "In Central Kalimantan, for example, about one million hectares of forest have had their function converted. If one hectare has the potential of 100 cubic meters of wood, the potential loss the state would have suffered is about Rp16 trillion. It is a corruption crime and there must be the party that has to be held responsible and pay the losses," Darori said.          The forestry minister has sent circulars to all governors in the country to file a report on deforestation in their respective areas. The director general for forest protection and nature conservation will ask all governors and district heads to hold exposes and deliver presentations on the forest conditions before the minister of forestry, KPK and the Judicial Mafia Eradication Task Force.          "The governor of Central Kalimantan has said that the North Barito and South Barito district heads refused to file forest reports. The governor of Southeast Sulawesi has also reported that there were four large scale mining firms which are doing exploitation without a license," Darori said.          According to Forestry Minister Zulkifli Hasan only 24 percent or 43 million of 130 million hectares of primary forests in the country still remained. He said 40 million hectares were former production forests and half of them had been damaged or were in a critical condition. The rest was no longer forested land, he said.          Large-scale deforestation reached its peak in 2001-2002 following the euphoria of regional autonomy at a destruction rate of 3.5 hectares per year.         In order to overcome the critical forest condition in the country, Zulkifli Hasan said that  his ministry was launching law enforcement and forest rehabilitation programs. The law will be enforced on illegal loggers and forest squatters.          The ministry will continue to carry out its tree planting program with a target of one billion trees. With the program, Indonesia sets itself to reduce its gas emissions by 26 percent in 2020, the minister said.      (T.A014/A/HAJM/19:35/a014) 12-05-2010 19:36:

PRESIDENT ASKED TO DECIDE ON SENORO GAS PROJECT

By Andi Abdussalam

Jakarta, May 12 (ANTARA) - Legislators have urged President Susilo Bambang Yudhoyono to take over the problem of the Donggi-Senoro gas field project in Central Sulawesi so that it could be decided whether its gas proceeds are to be exported or to be fully designed for domestic consumption.          With an investment of about US$3.7 million and a construction period of about 3.5 years, the Donggi-Senoro project, approved by the Upstream Oil and Gas Regulating Agency (BP Migas) in February 2007, has been delayed several times following the government's decision in June 2009 to stop exporting gas in order to meet its domestic demands.          The government decision to stop its gas export has caused delay in the continuation of the project because the consortium, PT Donggi-Senoro LNG (PT DSLNG), has concluded a head of agreement (MoA) with buyers such as Chubu Electric Power Company  and Kansai Electric Power Company.          The legislators made the call after Vice President Boediono decided on Monday to delay taking a decision on the continuation of the project. Lawmaker Sutan Bhatoegana of the Democrat Party Faction of the House of Representatives (DPR) said on Tuesday that the president had to take over the problem.          "Vice President Boediono should take the Senoro gas field issue to a cabinet meeting so that the cabinet could decide the continuation of the project," Bhatoegana, who is also a member of the House Commission VII on energy affairs, said.           After all, the vice president has no authority to decide on the Senoro gas field project. Boediono is therefore considering whether the decision on the continuation of the Senoro project should be decided by a cabinet meeting or only by the minister of energy and mineral resources.          "If the problem needs to involve relevant ministries, the decision should then be made in a cabinet meeting. But if the problem is simple it could be decided by the energy and mineral resources minister only," Yopie Hidayat, vice presidential spokesman said.           Other member of the House Commission VII M Romahumuziy of the United Development Party (PPP) faction shared Bhatoegana's opinion. Romahumuziy said that in the country's legislation system, a vice presidential decision was not known.          "Therefore, President Yudhoyono needs to take over the problem soon and decides it in a cabinet meeting," Romahuniziy said.          He warned that uncertain fate of Donggi-Senoro project could trigger a turning point of investment climate in the national oil and gas sector to a negative direction.          Romahurmuziy said the government would probably lose its golden opportunity to improve investment in gas sector after the aspirant buyers from Japan and South Korea intended to withdraw themselves from the  Donggi- Senoro gas project.          Director of ReforMiner Institute Pri Agung said meanwhile that If Vice President Boediono was not able to take a decision on the Donggi-Senoro gas block, President Yudhoyono should lead a cabinet meeting to decide it.          "The project should not be let protract because all sides are waiting for it," Agung said.          Chairman of the Presidential Working Unit for Supervision and Development Control Mangkusubroto said that the government had delayed taking a decision on the project.          "I assure that the decision will not be made this week. We will set another schedule," Mangkusubroto said after an internal meeting with Vice President Boediono on Monday (May 10, 2010).          He said that Donggi-Senoro should be seen in the wider context, namely the national gas policy where the policy must take side with the domestic interest.          Member of Regional Representative Council (DPD) for Central Sulawesi Nurmawati Dewi Bantilan said the people of Central Sulawesi were waiting for the project. "The Senoro project will improve the welfare of the people and create jobs," she said.          She said that with an estimated state income from the project of US$430 million or Rp3.9 trillion, Central Sulawesi province will get allocation of Rp1.2 trillion.          However, the decision on the continuation of the project still has to wait for sometime.          Vice President Boediono is until now conducting a thorough study. According to Yopie Hidayat, the vice president is still collecting various inputs. "The study is being focused not on the Donggi-Senoro only but also the on latest data about the balance of domestic gas consumption," Yopie said.          The project is owned by PT Donggi Senoro LNH (DSLNG) which is a consortium of Mitsubishi Co, publicly listed PT Pertamina and PT Medco Energi International, with a share ownership composition of 51 percent for Medco, 29 percent for Pertamina and 20 percent for Mitsubishi.          On June 1, 2009, Pertamina delivered four scenarios for the development of the Senoro project to a cabinet meeting led by then Vice President Jusuf Kalla.          It set four scenarios for the development of the project, including the gas prices. For export, the price was set at US$6.16 per MMBTU (million metric British Thermal Unit) and for domestic consumption at US$3.17 per MMBTU.          In the meantime, about 335 MMSCFD (million metric standard cubic feet per day) would be exported and 70 MMSCFD would be for domestic consumption.          However,Vice President Jusuf Kalla wanted that a final decision would be taken after data on the balance of domestic gas consumption had been taken into account.          After all, the government asked the consortium (PT DS LNG) to meet six conditions before the project was to go on.  The six conditions included a revision of the planned development, approval from the shareholders and secured domestic gas supplies.          But in a cabinet meeting on June 3, 2010, the vice president announced that the government had decided to ask the consortium to supply all its proceeds to domestic demands. According to Kalla, President Yudhoyono had agreed to stop gas export to meet domestic demand.          Director General for Oil and Gas Evita Legowo said Indonesia's balance of domestic gas consumption would still face shortages in the period between 2011 and 2015.          In this case, Pertamina sent a letter to the president on July 14, 2009 asking that not all of the Senoro gas proceeds should be designed for domestic consumption but some should also be exported.          Pertamina's reason was that the domestic gas supply deficit could be met with the production of other gas fields such as the Mahakam, Makassar Strait, Cepu and Natuna.      (T.A014/A/H-NG/A/O001) 12-05-2010 11:46:4