| By Andi Abdussalam |
Jakarta, May 31 (ANTARA) - Indonesia's overall cocoa exports are predicted to drop by about 12.5 percent this year, but its processed cocoa shipment to overseas markets has increased, which this year is expected to reach 40 percent of the total cocoa exports. So far, most of Indonesia's cocoa products, or about 80 percent, are exported in the form of beans. However, the government has since April last year slapped a 15 percent tax on cocoa bean exports to encourage local factories to produce and increase exports of processed cocoa products. Fermented cocoa beans producers said that Indonesia could increase the added value of its cocoa products by about Rp2000 (about US$0.23) per kg if exported in the form processed goods. "It can be imagined if Indonesia's annual output reaches up to 500,000 tons. This means that there are about five hundred million kg of cocoa beans which lose Rp2000 per kg, or a total of about Rp1 trillion. This is farmers' money," Syamsuddin Said of the Indonesian Fermented Cocoa Beans Association, once said. It is expected that this year cocoa exports from Indonesia, the world's third largest cocoa producer after the Ivory Coast and Ghana, will be between 280,000 ton and 300,000 tons, down from 320,000 tons in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, was quoted as saying recently by Reuters. Askindo has predicted that the Indonesian production will be flat at about 600,000 tons this year, as increased output from new planting offsets the impact of heavy rains. Although its overall exports are declining over rise in domestic consumption, yet its processed ones on the rice. This year, Indonesia's processed cocoa exports are expected to reach 40 percent of its overall types of cocoa exports. "Usually, Indonesia's processed cocoa exports only accounted for 20 percent of its overall cocoa exports. This year, its processed cocoa exports could reach 280,000 tons, or about 40 percent of its overall cocoa product exports," Piter Jasman, chairman of the Indonesian Cocoa Industry Association (AIKI) said on Tuesday. He said that processed cocoa exports had increased on the imposition of tax on cocoa bean exports so that raw material supply to local cocoa factories was ensured. "With guaranteed supply, we can produce more. After all, the government does withdraw any tax on processed cocoa exports," he said. The values of Indonesia's cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion. He said that with guaranteed cocoa beans supply at home cocoa factories were optimistic that they were able to increase production and raise processed cocoa contribution to the country's overall cocoa exports by 50 percent. This is in line with the government's aim in imposing a 15 percent tax on cocoa bean exports, namely to bolster local processing industry and increase the added value of farmers cacao production. About 93 percent of Indonesia's 1.5 million hectares of cocoa plantations are owned by smallholders. "We are able to increase the contribution of processed cocoa products to the overall exports thanks to the export tax. This has guaranteed cocoa bean supply for local industries so they could increase their production. After all, processed cocoa exports are subjected to tax ," Piter Jasman said. Data at the trade ministry showed an upward trend in the contribution of processed cocoa products to the overall national cocoa exports. Indonesia's cocoa paste and butter contribution to the overall cocoa exports increased from 17.71 percent in 2009 to 18.43 percent in 2010. In this case, the values of Indonesia's overall cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion. The contribution of cocoa paste and cocoa butter products to the overall cocoa exports in the January-February 2011 period reached 21.21 percent of the overall values of US$219.05 million. In the same period in 2009, the contribution of cocoa paste and butter to the overall exports were only 15.56 percent of the overall export values of US$253.60 million. The contribution of cocoa powder and cocoa bar exports also increased, which in 2009 was only recorded at 5.30 percent but in 2010 it rose to 9.08 percent. In the meantime, the contribution of Indonesia's cocoa beans and cocoa nut shell exports since 2010 has been showing a downward trend. In 2010, the values of cocoa beans and cocoa nut shell exports were valued at US$1.19 billion, or 72.49 percent of the total export values which reached US$1.64 billion. The contribution of cocoa beans and cocoa nut shell exports in that period was lower than their previous contribution which accounted for 76.98 percent of the total cocoa exports valued at US$1.41 billion in 2009. The share of the cocoa beans and cocoa nut shell exports in the overall cocoa exports in the January - February 2011 period was recorded at 66.88 percent. This figure was smaller if compared with the contribution of these two types of cocoa exports in the same period in 2009 which was 76.75 percent. ***5*** |
Selasa, 31 Mei 2011
RI'S PROCESSED COCOA EXPORTS INCREASING
Senin, 30 Mei 2011
EDUCATION NEEDS RESHAPING TO MEET EMPLOYMENT REQUIREMENTS
| By Andi Abdussalam |
Jakarta, May 30 (ANTARA) - Unemployment problem in the country is not always caused by shortage of work fields but also by lack of human resources quality. Even, many university graduates are often forced to pass a transitional period before they could get employment.
Referring to this condition, former minister for education and culture Wardiman Djojonegoro said the education system in Indonesia had not yet matched the work field. "We have to design an education system which has a link and match with employment so that graduates would be absorbed easily by the work field," Wardiman said recently.The high unemployment rate in Indonesia requires decision makers in the education field to reshape the education system and adjust it to the need of employment. One of the main problems faced by the government is to reduce unemployment and poverty rates. Based on data at the Central Bureau of Statistics (BPS) there is now a total of 8.1 million unemployed people. Most of them are within the productive age between 20 and 40 years. This is because, according to Wardiman, the pattern of education in Indonesia is not yet 'friendly' with the work field. "Up to now there are still many education problems which remain unresolved, " the former minister said. |
Jumat, 27 Mei 2011
FORMER DEMOCRAT TREASURER FLEEING OR PAYING REGULAR VISIT TO S'PORE?
| by Andi Adussalam |
Jakarta, May 27 (ANTARA) - Sacked ruling Democratic Party PDP treasurer Muhammad Nazaruddin is now in Singapore, a neighboring country he has always visited so far. This time he visited Singapore only one day before a travel ban was issued on him, or several hours before the PD's Council of Ethics announced his dismissal as the the party's general treasurer. The ethic council made the announcement only two days after Constitutional Court Chairman (MK) Muhfud MD reported to PD Chief Patron Susilo Bambang Yudhoyono that Nazaruddin had tried to provide gratification money for the MK. The money amounted to US$120 thousands was to be given to the KM through its secretary general Janedjri M Gaffar in September 2010. Before his attempt to extend gratification money to the MK came to light, Nazaruddin had also been mentioned as having involved in an alleged bribery case in the construction of a SEA Games athlete house in Palembang, South Sumatra. This began when the Corruption Eradication Commission (KPK) arrested Wafid Muharram, a secretary to the minister for youth and sports affairs at his office on April 21, 2011. When arrested, Wafid was receiving Marketing Director of PT Anak Negeri, Mindo Rosalina Manulang, and Marketing Director of PT Duata Graha Indah, Muhammad El Idris. When she was grilled by the KPK, Rosalina Manulang said she was a subordinate of Muhammad Nazaruddin, general treasurer of the Democrat Party. Since then, Nazaruddin was suspected to have link with the alleged bribery case, though a week later; Rosalina changed her statement, saying she did not know Nazaruddin. Amid these two cases, namely alleged gratification and bribery in the South Sumatra project, it was suddenly reported that Nazaruddin was in Singapore, which sparked speculation he was fleeing to the neighboring country. "Nazaruddin left the country before he was banned to go abroad. He often goes to Singapore so he should not be punished for having seemingly fled to another country," Law and Human Rights Minister Patrialis Akbar said on Friday. Patrialis said Nazaruddin had often traveled to Singapore so that one should directly accuse him of fleeing, even if he had left before his travel ban was issued. The Corruption Eradication Commission (KPK) last Tuesday evening asked for a travel ban on three people, namely Octarina Furi, Yulianis and M Nazaruddin. However, Nazaruddin left for Singapore on Monday night (May 23), one day before the ban was issued. According to Ruhut Sitompul, a lawmaker of the Democrat Party, Nazaruddin, he himself a legislator of the PD, did not flee but went to Singapore under the consent of PD faction in the House of Representatives (DPR). Nazaruddin obtained permission from the leader of the Democratic Party (PD) faction in the DPR before flying off to Singapore, Ruhut Sitompul said. "Nazaruddin obtained permission from the DPR faction leader. He had duly asked for prior permission," Ruhut said when contacted through his cellular phone here on Friday. He said that Nazaruddin left for Singapore for medical treatment purposes and before he left he had submitted a letter of request to the chairman of the Democrat Party faction in the House. Ruhut even regretted the statement of PD elite as if Nazaruddin had fled to Singapore. However, many senior PD members denied any knowledge of Muhammad Nazaruddin's departure to Singapore a day before the issuance of a travel ban on him. "I do not know. Whereto he fled, I do not know," member of the party's advisory board, EE Mangindaan, said when asked for his confirmation about it at the Presidential Palace. The advisory board as an ethics council fired Nararuddin from his post as party treasurer on Monday. "I am a member of the ethics council. I have nothing to do with where he would go. That is not my affair," he said. Another advisory board member Jero Wacik also said that he did not know about Nazeruddin's sudden exit from Indonesia. "I do not know. That is not my affair. I am an ethics council member. My affairs concern party's ethics. That is all," he said. Jero Wacik said if Nazaruddin had fled and wished to flee that was the affair of the law enforcement agencies. Therefore, he must come home. In order to enable the KPK to investigate him, the former PD treasurer has to return home, or at least to prove that he was not fleeing abroad. In this case, Golkar Party chief adviser Akbar Tanjung hoped that the PD would call him home. "I think the Democrat Party would contact and ask him to go home because he would be investigated," Akbar said on the sidelines of a public discussion on political parties and democracy consolidation on Friday. On alleged involvement of Nazaruddin in a bribery case, Akbar said he would trust the Corruption Eradication Commission to investigate it. "We should leave it to the legal process. To assure whether or not he is involved in a corruption case, we have a legal institution which could do it," he said. He said that in terms of his institution, the Democrat Party of course already saw and prepared necessary steps it would take against Nazarudin. "The man has been fired as the general treasurer of the DP. This also shows that PD also took into account the public attention because it considered the matter could create bad image of the party," Akbar said. Moreover, according to Akbar, allegations against the PD cadre should proven in court, and that it should be given to the KPK to investigate it. As Nazaruddin is said to have fled to Singapore, the KPK is not yet able to summon him, though it has planned to interrogate him as a witness next week. Therefore, Nazaruddin must come home, Akbar said.***3*** |
Selasa, 24 Mei 2011
PRODUCERS CONCERNED OVER FALL OF SUGAR PRICE
| By Andi Abdussalam |
Jakarta, May 25 (ANTARA) - Producers have expressed concern over the entry into the retail market of imported refined sugar and the downward trend of crystal white sugar price since last month which, they said could disadvantage sugar cane farmers. "We are concerned over the declining sugar price; if this continues to take place, we are afraid we would not be able to cover production cost. After all, the government has set a benchmark price for farmers at Rp7000 per kg," Djoko Santoso, secretary of state-owned sugar cane plantation company PTPN X, said. PTPN X has set itself the target of producing 500 thousand tons of sugar this year, a target which was higher than that in the previous year at 410 thousand tons. It would do its best to optimize the capacity of its factory and increase production efficiency in an effort to achieve the target. "We will optimize the existing capacity, replace ineffective equipment, increase the factory performance and economize energy consumption," he said. PTPN X is still able to increase its crystal while sugar production if the government allows it to import raw sugar to be processed into crystal sugar by its remaining idle factory capacity. This year it has asked permit for the importation of 50 thousand tons of raw sugar to be processed into about 45 thousand tons of crystal white sugar. However, the company's optimism to increase its production is overshadowed by fear of possible price fall of crystal sugar in the domestic market. Since the beginning of the milling season, in late April and early this month, the sugar price in the retail market has been showing a downward trend. Djoko said that his company was afraid it would be unable to cover its production cost if prices continued to fall, while the government has set the benchmark price at Rp7000 per kg at the farmer level. Based on the trade minister's decree, this year the benchmark price at the farmers' level is set at Rp7000 per kg, much higher than the previous year's benchmark at Rp6,350 per kg. The Rp7,000 benchmark price is effective as of May 4, 2011. The benchmark price was set by taking into account the proposal of the agriculture minister who is also the chairman of the Indonesian Sugar Council (DGI). Director General for Internal Trade Gunaryo said that the government set the benchmark price as a reference for the purchase of the farmers' crystal while sugar to ensure that farmers would get reasonable profit and consumers would buy it with a reasonable price. Expert staff of the Indonesian Sugar Association, Colosewoko said the government should take into account the interest of farmers as producers and of consumers in setting the benchmark price. "Producers want to cover their production cost and get a reasonable profit while consumers are willing to buy sugar with prices within their financial reaches. Thus, the government should accommodate these two interests by setting a fair level of prices," Colosewoko said. As regards, the price in the retail market should not fall to a too low level which could cause producers to be unable to cover their production cost. However the downward trend in the sugar price in the retail market has created concern for producer. After all, imported refined sugar was believed to have entered consumption market which could disturb local sugar products. Earlier, Chairman of the Indonesian Canesugar Farmers Association (APTRI) Arum Sabil said his side had found refined sugar circulating in the consumption market. "The circulation of refined sugar for industries in the retail market disturbs farmers' sugar because it is sold at a lower price. We urge that the circulation of refined sugar should be put in order based on regulations," Chairman of the Indonesian Canesugar Farmers Association (APTRI) Arum Sabil said. He said this could have happened because production of refined sugar exceeded the need of food and drink industries. The remaining then entered the consumption market. Therefore, the government has called on refined sugar producers to discipline themselves and supply refined sugar only to food and beverage industries in accordance with existing regulations so as not to disrupt the crystal or consumer sugar market. "We have summoned eight refined sugar producers and asked them to call themselves to order so that no refined sugar will enter the consumer sugar market," Director General for Internal Trade Affairs Gunaryo said. The government has also asked the producers to assign clear distributors, sub-distributors and to popularize regulations to them. "We ask them to assign clear distributors where each of the distributors is required to sign an integrity pact to make sure that there would be no refined sugar leaked to the retail market," the director general said. He said that the government would also reinforce the integrated goods monitoring team in supervising the distribution of refined sugar to foods and beverage industries. Secretary General of the Indonesian Refined Sugar Association (AGRI) Suryo Alam said his side was ready to help monitor the distribution of the refined sugar. This year, he said, the government allowed the importation of 2.4 million tons which after a process would only amount to about 2.2 million tons. The need for refined sugar of industry this year is estimated at between 2.2 million and 2.3 million tons. So, Suryo said, it is unlikely for refined sugar to enter the retail market because the government only allowed the importation of raw sugar based on the volume needed by industries.***5*** |
Senin, 23 Mei 2011
RULING PARTY FIRES TREASURER
| By Andi Adussalam |
Jakarta, May 24 (ANTARA) - After several weeks under the spotlight of the public and media reports, the ruling Democrat Party (PD) fired on Monday its general treasurer Muhammad Nazaruddin for alleged attempt to give S$120 thousand in "gratification money" to the Constitutional Court (MK) last September. Apart from the S$120 thousand case that came up to the surface two days ago, the PD general treasurer has also been alleged to have link with an alleged corruption case in the construction of a SEA Games athlete house in Palembang, South Sumatra. But the immediate action taken by the PD against him was his link to the money he was reportedly trying to give to the Constitutional Court. The decision of the DP to discharge its treasurer was announced by its Council of Honors on Monday, two days after MK chairman Mahfud MD reported the case to PD chief patron Susilo Bambang Yudhoyono. Mahfud reported to Yudhoyono, who is also the president, on Saturday that Nazaruddin had tried to give money amounting to 120 thousand Singapore dollars to MK Secretary General Janedjri M Gaffar in September last year. According to Mahfud, it was Nazaruddin who called and asked Janedjri to meet him at a restaurant in Kemang area, South Jakarta, on September 23, 2010. Janedjri complied with Nazaruddin request because the DP treasurer was a member of Commission III of the House of Representatives and they have often met as working partners in the House Then the two envelopes were sent to Nazaruddin's house in Pejaten, South Jakarta, on September 27, 2010, and at that time the envelopes were opened. It was then known that each of the envelops contained S$60,000. Nazaruddin phoned later Janedjri, asking his reason why he returned the money, which he said as a token of friendship. "Because we were suspicious about the money, I ordered that it should be returned and a receipt should be obtained as proof that it has been handed back over. This case could be processed as a violation to the ethics," Mahfud said Over two days, the issue of the handing over to the MK of the money, which Mahfud said not a bribe but a kind of gratification, had become the media and public spotlights that put the ruling DP at an unfavorable position. Therefore, in an effort to improve its image, the Democrat Party's Council of Honors decided to discharge Nazaruddin from his position as the party general treasurer. "If Muhammad Nazaruddin remains in his post as a general treasurer it will have a bad impact on the person concerned or the Democrat Party," Amir Syamsuddin, secretary of the party's honors council, said. Therefore, the party had finally taken the decision to fire Muhammad Nazaruddin as the party's general treasurer, he said when announcing the decision at a press conference at the office of the Democrat Party Executive Board on Jalan Kramat VII here on Monday evening. He said the decision was taken with a view to neutralizing the negative reports. Amir said if Muhammad Nazaruddin was not in the post any longer the negative reports from mass media would stop. "Therefore the advisory board fired him and relieved him from his post as a general treasure," he said. He said the advisory board hoped all parties concerned would respect the principles of presumption of innocence and legal institutions would process the legal case Nazaruddin had been accused of professionally. According to Hendardi, chairman of the Setara Institute for Democracy and Peace, the decision to fire Nazaruddin was taken half-heartedly and merely an effort to improve the image of the PD in the eyes of the public. "The decision does not fully reflects the sincerity of PD chief patron, Susilo Bambang Yudhoyono, to combat political corruption in this country, but constitutes an effort to restore the image of the Democrat Party in the eyes of the public," Hendardi said on Tuesday. He said that the decision was a compromised and half-hearted decision. PD General Chairman Anas Urbaningrum and Yudhoyono cannot claimed that the ruling Democrat Party is already clean by its action to discharge Nasaruddin. After all, it has lost the public trust on its efforts to eradication corruption initiated by political elite. Hendardi said that the public had also been suspicious about other Democrat Party elite because political corruption could not be committed by only one person. Therefore, he believed that Nazaruddin is only a victim in the PD's efforts to restore its image. Yudhoyono and Anas should have suspended Nazaruddin since he was reportedly implicated in another alleged corruption case in the construction SEA Games athlete house in Palembang, Hendardi said. He said that the "tug-of-war" among the PD elite with regard to the Nazaruddin case had left the impression that Yudhoyono and other PD executives were not sincere, neither firm in overcoming political corruption in this country. After all, he said, Yudhoyono and Anas have already been informed of the Nazaruddin gratification money to the Constitutional Court since November 2010. ***3*** |
Rabu, 18 Mei 2011
RI CRUDE PRODUCTION DECLINING
| By Andi Abdussalam |
Jakarta, May 18 (ANTARA) - Once an oil exporter, Indonesia this year is expected to import about 500,000 barrels of crude per day as its production continues to decline below the target as set in the 2011 state budget at 970,000 barrel per day (bpd). "We predict that our oil and condensate production would only reach about 950,000 bpd up to the end of the year. After all, at present the average oil production level is only about 910,000 bpd," Head of the Upstream Oil and Gas Regulating Agency (BP Migas) R Priyono said. BP Migas, he said, would face difficulty to achieve the production target of 970,000 barrels per day (bpd). According to the BP Migas chief, unplanned shutdowns of oil fields have been among the causes of the declining in the country's crude production. The government is actually targeting a crude production of 1.2 million bpd, a figure which is still below the domestic need of about 1.4 million bpd. This would force the government to import crude at the amount of over 500,000 bpd. Increase in production is much expected from oil contractors. However most of them have not yet fulfilled their commitment. The BP Migas said 77 or 72 percent of 107 oil and gas blocks signing contracts between 2002 and 2008 have yet to fulfill exact commitment to conduct explorations. Only 30 or 28 percent of them have met the commitment, according to BP Migas data made available on Monday. Earlier at a meeting with Energy and Mineral Resources Minister Darwin Saleh, BP Migas Chief R Priyono said 23 or 24 percent of the 77 blocks failed to meet the commitment because of contractors' internal problems. The internal problems concerned among others operators' rights, finance, and holding companies' priorities, the data show. Meanwhile, 15 or 16 percent of the 77 blocks failed to meet the commitment because of overlapping claims to land, 14 or 15 percent because of geological and geophysical factors, and 12 or 13 percent because of compensation problems. The data show 10 or 11 percent failed to meet the commitment due to the absence of supporting equipment and services, 9 percent due to operational problems, 8 or 9 percent due to the absence of data and 2 percent due to special conditions such as those in Aceh and border areas. In an effort to raise production, BP Migas will discuss it with the government. "Thus, to achieve the 950,000 bpd this month, the remaining production must be set at an average of 970,000 bpd," he said. He said that efforts carried out so far to increase production were among others preventing the unplanned shutdowns particularly in the work areas of ConocoPhillips and PT chevron Pacific Indonesia. PB Migas will also do its best to reduce the declining production rate which at present is about two percent to below one percent, or at least similar to the achievement made in 2010. Production in 2010 was set at 965,000 bpd but the realization was only 956,000 bpd. The declining in the country's oil production caused Vice President Boediono to express concern on Wednesday that the oil sector had not yet shown good performance. "There is a sector I am not happy about namely our oil sector which is not performing well. Oil production has dropped," he said in his address at the opening of the 35th Indonesia Petroleum Association (IPA) Convention and Exhibition. The rate of oil explorations is still far before the need to increase production to achieve the production target of 1.2 million barrels a day. Therefore, the government is serious to cooperate with oil investors and industrialists to settle problems. To overcome the situation, the vice president said, it needs cooperation to find the right and sustainable model and real improvement in its implementation. "We also need to work hard to find a way to get quicker gains," he said. Among the ways are, he said, increasing efforts to exploit the potentials of oil production hike and eliminate unexpected production stoppages that would affect oil production. "I will ask BP Migas and the ministry of energy and mineral resources to pay a serious attention to the issue," he said. In the meantime, Energy and Mineral Resources Minister Darwin Saleh has promised to increase the country's crude oil production as requested by Vice President Boediono. "The request of the vice president is a challenge," the minister said here on Wednesday. His ministry and the BP Migas would cooperate closely to raise national oil production. According to the minister, the recent decline in oil production has been caused more by unplanned shutdowns. "We will ask contractors to reduce the number of shutdowns," he said. The long-term challenge was how to speed up the production increase through enhanced oil recovery (EOR) efforts such as the use of surfactant in the field of PT Chevron Pacific Indonesia (CPI). "We have applied the EOR system but we still need time to carry it out perfectly. If that already happens oil production will peak in the 2025-2030 period," he said.***5*** |
Senin, 16 Mei 2011
CTI COUNTRIES RENEW TALKS ON WORLD LARGEST CORAL REEFS
| By Andi Abdussalam |
Jakarta, May 17 (ANTARA) - Local authorities of six countries grouped in the Coral Triangle Initiative (CTI) began four days of talks at Wakatobi, Southeast Sulawesi province on Monday evening, on how to preserve the world largest coral reef resources which sustain the lives of over 120 million coastal people in Indonesia, Timor Leste, Papua New Guinea, Malaysia, the Philippines and the Solomon Islands. "I hope through this meeting we will be able to agree on the formation of an association of district heads and mayors of coastal areas in six CTI countries," Wakatobi District Head Hugua said when he opened the meeting. The meeting, which will discuss a wide range of coral reef related issues such as food security, global climate change, energy scarcity and environment, is expected to formulate concrete steps as it is being attended by authorities directly in charge in the fields. Kety who represented the US CTI SP program director said the meeting of district heads and mayors from six CTI countries was more important and strategic than the meeting of ministers who only spoke of theory and rhetoric to conserve the environment. "District heads and mayors have the authority to save the environment so the meeting is very important and strategic to conserve natural resources in a sustainable way," she said. The district heads and mayors gathered to follow up a series of similar meetings held after the establishment of the CTI in mid 2007 which is intended as a forum for discussing efforts to safeguard the world's largest coral reef resources in the triangular sea waters. The triangular coral zone is an expanse of ocean covering 2.3 million square miles (5.7 million km2). This area, sometimes referred to as the "Amazon of the Seas", is the epicenter of marine life abundance and diversity on the planet. In some areas, it has more than 600 coral species (more than 75 percent of all known coral species), 53 percent of the world's coral reefs, 3,000 fish species, and the greatest extent of mangrove forests of any region in the world. In addition, the coral triangle serves as the spawning and juvenile growth areas for what is the largest tuna fishery in the world, serving as a source of income and food for people living in the coastal areas. Therefore, the meeting of the district heads and mayors who are the immediate authorities is expected to build a commitment to the preservation and usage of marine resources as environmentally friendly and sustainable food materials. Hugua said recently that it was therefore urgent for the meeting to discuss efforts of maintaining resilience of food coming from the sea, and wisdom in the management of marine and fishery resources besides global warming issues and weather anomalies. In this context, Hugua said, district heads and mayors as the decision makers of local level in the six countries will promote a commitment on how to maintain and make use of the marine resources as food stuff on a sustainable basis and environmentally friendly. "Coral reefs living in the sea may produce oxygen to prevent global warming on the earth. Therefore their conservation is constantly maintained wisely in using various potentials in the sea," he said. Coral reefs function as natural ramparts by reducing high-wave energy of typhoon and storm from their structures, protecting coastal beaches by providing sands that are by-products of eroded coral skeletons. Thus, coral reefs help prevent sediments from washing up and damaging the shoreline. Hugua said it was in that regard coral reef was vitally importance for human lives and needed to be protected. His experience during a diving in the Philippines had inspired to him to called for a meeting to discuss further efforts for preserving marine resources. In his opening address on Monday evening, Hugua said he initiated the CTI meeting after being inspired by his experience while diving the Carlos P Garcia waters, Bahol province, the Philippines where coral reef destruction had reached an alarming level. The Coral Triangle Initiative, which was launched by Indonesian President Susilo Bambang Yudhoyono and five other country leaders in mid-2007, covers the exclusive economic zones of six countries: Indonesia, Timor Leste, the Philippines, Malaysia, Papua New Guinea, and the Solomon Islands. It is the epicenter of marine life abundance and diversity on the planet. Its biological resources sustain the lives of over 120 million people. As part of a concrete step in its efforts with other five CTI countries in preserving the marine resources, Indonesia has set itself the target of creating up to 20 million hectares of conservation area by 2020. According to Marine Affairs and Fisheries Minister Fadel Muhammad, right now Indonesia has 13 million hectares of conservation area. As part of the efforts, the minister late last year inaugurated a marine conservation area in Nusa Penida, Bali, in a move to protect marine and coastal life as well as to encourage sustainable marine tourism. The results of a survey made by the TNC Indonesia Marine Program show the Nusa Penida waters has 1,419 hectares of coral reefs and 230 hectares of mangrove consisting of 13 kinds. Fadel said the creation of conservation areas in Nusa Penida and the rest of the country was a concrete step taken by the government to implement the CTI launched by Indonesia, along with the Philippines, Malaysia, Timor Leste, Papua New Guinea, and Solomon Islands.***4*** |
Minggu, 15 Mei 2011
AL-ZAYTUN, NII ALLEGED LINKS SPARK CONTROVERSIES
| By Andi Abdussalam |
Jakarta, May 16 (ANTARA) - The alleged links between the Indonesian Islamic State (NII) movement and the Al-Zaytun Islamic boarding school in Indramayu, West Java, has sparked controversies following terror acts that often threaten security in the country of late. In the past several weeks, the public and media have cast spotlight over radicalism and extremism amid terrors such as the bombing of a mosque in Cirebon and threats of package or parcel bombs sent to certain targets or planted in different locations in Jakarta and its surroundings. With the ensuing developments, fingers were pointed to the NII, an outlawed organization founded by Sekarmadji Maridjan Kartosoewirjo which, in the 1950s, was fighting for the establishment of Islamic caliphate in Indonesia. S.M. Kartosoewirjo himself was executed by the government in September 1962. Amid the discourse over the danger being posed by NII cadres, the public attention was ultimately shifted to Al-Zaytun, a modern Islamic boarding school which has frequently been visited by government officials but is later believed to be a center for fostering NII cadres. This sparked controversies. Even, within the complex, there is the Al-Zaytun University inaugurated by former president Soeharto in 2005. No wonder, if the Al-Zaytun is often visited by government officials. But former chief of the National Intelligence Agency (BIN) Hendropriyono denied if Al-Zaytun was built by the government. Hendropriyono acknowledged that Al-Zaytun did use NII symbols but it used them only as a medium to attract students. "If there is opinion that Al-Zaytun has been designed by government officials, designed by Soeharto, and now is backed up by the government, this opinion is not true. What is true is that Al-Zaytun has used NII symbols to attract people and to win money for its development. It even benefits Muslims," said Hendropriyono. However, many quarters believed that Al-Zaytun is linked with the NII. Thus, the statement of Religious Affairs Minister Suryadharma Ali in his recent visit to the Islamic boarding school that it had no links with NII has been responded to with criticism. Suryadharman Ali said that the Al-Zaytun Islamic boarding school was not linked with the NII movement because the school teaches tolerance. "It is very difficult to link the Al Zaytun Islamic boarding school with the NII organization which is radical," he said at a press conference at the Al Zaytun last week. He said generally radical Islamic ideologies are not tolerant very much and hate anything modern. The educational pattern used in Al Zaytun is modern and adopts modern arts for teaching materials for its students. Radical ideologies also have a special characteristic which is they always call those having ideologies different from theirs infidels. "When we conducted afternoon prayers Syekh AS Panji Gumilang, the chief of the school even asked me to lead it, proving that there was no radicalism being developed in this school," he said. On the occasion, Syekh AS Panji Gumilang said that he had never entered into the NII organization like what several parties had accused him of. "I am not connected with the NII history," he said. Based on history the NII thrived in Indonesia in 1949 and dissolved in 1962. "After that there is no more organization called NII," he said. However, the minister's visit to the NII complex was described by others as a ridiculous visit. "What for, the minister could not have found anything there," NII Crisis Center founder Ken Setiawan told a seminar on the prevention of NII ideology. He said that Al-Zaytun had been conditioned in such a way to cover up its relations with NII because the NII teachings were not taught in the boarding school while its students were not members of the NII movement. "The minister in his visit will at the most only find buildings, constructions and students. He would not find any NII activities there because the movement of NII is underground in nature, so that to reveal it, an intelligence technique is needed," he said. He said that it could therefore be understood if the religious affairs minister concluded in his brief visit that Al-Zaytun had no relations with NII. The minister's conclusion was different from the results of a religious affairs ministry's research in 2002. The religious affairs ministry and the Indonesian Ulema Council (MUI) carried out research on the matter in 2002 and concluded that Al-Zaytun and NII had links but the results of their research were not made public. "If one is willing to find the relations between Al-Zaytun and NII, he or she should trace information from former victims of NII, people in its surroundings and parents whose children have become victims," Setiawan said. Yet, Minister Suryadharma Ali challenged the public to prove it if Al-Zaytun had links with the NII. "Those who said that Al-Zaytun is linked with NII had better prove it. We fear that allegations without proof would only turn into slander," Suryadharma Ali said in Bandung on Sunday evening. The minister said that if there was proof of its link with NII, why police did not take legal steps to process it. "If there is proof why law enforcers did not take action and process it," he said. "I come there to observe directly what they were doing. I did not merely make a conclusion. I did not see any links with NII," he said. He even denied having difference of opinion with the Indonesian Ulema Council (MUI) regarding the NII, Al-Zaytun link issues. "We have no difference of opinion. We differ only in research matters," the minister. The ministry of religious affairs focused its studies on the education aspect while MUI focused its studies on education and leadership. The religious affairs minister said that his ministry and the MUI had the same opinion on the educational aspects in the Al Zaytun boarding school. "Namely, Al Zaytun has no connection with the NII in terms of education system," he said.***3*** |
Jumat, 13 Mei 2011
MA-60 PLANES' AIRWORTHINESS, MARK-UP ISSUES
| by Andi Abdussalam |
Jakarta, May 13 (ANTARA) - The government is checking the airworthiness of MA-60 airplanes in the country, while the Corruption Eradication Commission (KPK) is also studying a report on alleged price mark up in the purchase of the Chinese-made aircraft. The examinations on the airplanes followed the crash recently in West Papua of one of the 13 MA-60s purchased by state-owned Merpati Nusantara Airlines from China's Xian Aircraft International Company (XAC). Following the accident which killed 27 passengers and crew members, certain quarters have asked that the airworthiness of the plane be checked as there was suspicion the planes lacked quality and were purchased at a marked up price. President Susilo Bambang Yudhoyono during a cabinet meeting on Thursday called on all ministers concerned to explain to the public about the process of procurement of the Chinese made MA-60 plane. "What is important is clear explanation. Certainly the right parties to give the explanation are the Merpati leadership itself and the state enterprises minister at present and when the procurement was made," the president said. He said the public deserved clear explanation regarding the process of procurement of the plane that is now creating a polemic. Regarding the airworthiness of the plane, Transportation Minister Freddy Numberi said the government has decided to check it and ascertain the plane's airworthiness in order to ensure the safety of their use in the future. "We have issued letters ordering an inspection and safety audit on the 12 MA-60 airplanes," Freddy Numberi told the press. He said that the inspection on the airworthiness of the 12 MA-60s was done by a team formed by the ministry of transportation. It will work for one week to check the 12 MA-60s airplanes. During the inspection, the operation of the 12 MA-60s would be managed in such away so that it would not disturb flight services. At present, the 12 planes are serving 66 routes most of which are Indonesian eastern regions. If in the examination process, the team found matters which could threaten or endanger flights, the plane concerned would be grounded. State Enterprises Minister Mustafa Abubakar agreed that the plane would not be grounded and asked Merpati to operate them because based on their technical specification they were declared airworthy. "As the regulator of Merpati and holder of its major shares, we do not ban MA-60 to fly. Please fly because we believe MA-60s meet the technical airworthiness requirement," Minister Mustafa Abubakar said. Yet, he acknowledged that at first, he was thinking to ground the planes. "At the beginning I thought the planes should be grounded on the reason of passenger safety. But after discussing it with the transportation minister I found that the planes are fit to fly," he said. Earlier President Director of PT Merpati Nusantara Airlines, Sardjono Jhony Tjitrokusumo said he was ready to resign if it is proven that the crash of Merpati MA-60 in Kaimana Bay, Papua, on Saturday (May 7), was the result of technical reasons. "MA-60 was in a save condition. But if it has been proven that the crash was due to technical errors I am ready to resign," he said. He made the statement in response to inquiries from some circles that the MA-60 plane built by Xian China Air Craft lacked quality. Apart from the airworthiness of MA-60 planes, the public also alleged that the price of the plane had been marked up. The United Workers Union Federation of State Companies has reported that there was an alleged mark up in the purchase of the planes. Spokesman of the United Workers Union Federation, Tri Sasono said his organization has reported the alleged mark up to the KPK. "There is an indication of mark up done to enrich either individuals or others by certain people," Tri Sasono said on Thursday. He said that the alleged mark up involved a government official and a lawmaker. Sasono said that with the intervention of a broker (MS), Merpati purchased the plane with a price of US$14.6 million per unit, while actually the contract could be concluded at a price of US$174 million for 15 MA-60s. According to Merpati President Director Sardjono Jhony Tjitrokusumo, Merpati in 2006 made a deal with Xian Aircraft for the procurement of 15 MA-60 planes, in which the Indonesian government asked for a loan of 1.8 billion reminbi (yuans), the equivalent of Rp2.1 trillion which was handed to Merpati as payment for the aircraft. In 2007, Merpati received only 2 units of MA-60 planes under a lease. Then in December 2010 another 11 units had been approved in the 2010 State Budget. The remaining 2 units were scheduled to come to Indonesia on May 19 and 20, 2011. But Mustafa Abubakar said that in the contract signed by XAC and Merpati the price per unit of the plane was US$11.206 plus optional equipment worth US$800,000 so that the price was US$12.2006 million per unit. Now, the report on alleged mark up in the price of the planes is now being studied by the anti-graft commission. Spokesman of the Corruption Eradication Commission (KPK) spokesman Johan Budi said the anti-graft body had already received a report about the purchase of the planes and "we are now still studying it." ***5*** |
Rabu, 11 Mei 2011
FREE TRADE POSES CHALLENGE TO SMALL BUSINESSES
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Selasa, 10 Mei 2011
MA-60 PLANE CRASH FUELS OTHER STORIES
| By Andi Abdussalam |
Jakarta, May 19 (ANTARA) - The crash last Saturday of a China-made MA-60 airplane belonging to state-owned Marpati Nusantara Airlines in Kaimana Bay, West Papua, that killed 27 people attracted the sympathetic attention of ASEAN leaders. The heads of state/government of the Association of South East Asian Nations who were holding a summit in Jakarta, before having a banquet hosted by President Susilo Yudhoyono, observed a moment of silence for the victims. Without belittling the extent of the accident itself, people find that the crash has raised another issue, when an online-media carried a story alleging that the plane had been purchased, reportedly marked up, through the intervention of a special presidential spokesman, known by his initials as "JW". Enriching the air accident's side story, as calls surface for investigation of the deals, China reportedly has threatened to cancel its commitment to finance Indonesia's 10,000 megawatt power crash program should Merpati be forced to cancel its purchase contract with China's Xian Aircraft industry. China's fear of contract cancellation is just logical if insistence at home forced Merpati to do so for both security and economic reasons. After all, MA-60 planes are not covered with international reputed airworthiness certification. In addition, the one which crashed in Papua was only recently purchased (last December), and the accident in Kaimana was the second to take place in Indonesia and the fifth one if similar accidents in other countries are taken into account. Based on records, the ill-fated plane was supplied by China's Xian Aircraft on December 3, 2010. Merpati is scheduled to receive two more MA-60s on May 19 and 20, 2011. "We will accept the planes. There will be no cancellation. But in the future it will be adjusted to the company's business plan," the president director of Merpati Nusantara Airlines (MNA), Sardjono Jhony Tjitrokusumo, said. A lawmaker on trade affair however insisted that the purchase of the plane should be investigated. "The purchase of MA-60 which is carried out under a compromised mechanism should be investigated. China has threatened to cancel its financing for Indonesian 10,000 MW crash power plants programs if Merpati cancels its contract," Ecky Awal Muharram of the House Commission VI on trade and state firms, said here Tuesday. The lawmaker even argued that parties involved in the controversial purchase of MA-60 must be investigated. Merpati is a state-owned company whose funding came from the people's money. The purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people. Moreover, the question over its purchase is arising while this type of aircraft has no certification from the Europe Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) in the United States. It only has certification from the Chinese aviation authority. "We do not need FAA certificates because MA-60s are not used in the United States. FAA certificate is a standard requirement in the USA but it is not needed in Indonesia," Sardjono Jhony said. MA-60 plane was purchased under a Sub Loan Agreement (SLA) funding system where the loan was given to the government but would be repaid by Merpati. The agreement was signed by the government with the Chinese Exim Bank repayable in 15 years by Merpati. "This means that the government is the underwriter of the loan," Ecky said. He questioned the government's attitude towards the risk trend in MA-60 accidents which were categorically high in Indonesia and in other countries. That's why the purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people. Yet, Merpati President Sardjono Jhony Tjitrokusumo said the company's MA-60 plane that crashed in Kaiman on May 7 had been airworthy. "I clarified that the plane was airworthy when it departed from Sorong," Jhony said. He said the plane was in good condition and its crew members were fit to fly. "So, it is not the plane that is problematic. So far the plane has had no problem because the aircraft maintenance logbook was clear," he said. In this case, Chief Economic Minister Hatta Rajasa called on the people not speculate. "Don't make different speculations but look at its main problem," the coordinating minister for economic affairs. He said that the main problem was to investigate the real cause of the crash. "The problem is that the plane had crashed. And we have to investigate its causes. That's why we have to wait for the investigation results of the National Committee of Transportation Safety (KNKT)," he said. An online media is reported to have a story about allegation of a special presidential staff who had been involved in the purchase of MA-60 plane, reportedly marked up. However this allegation was denied by the State Palace. Special Presidential staff for information Heru Lelono said the report was not true. There was no presidential staff involved it. "There is no policy in the Palace giving a presidential staff an authority to take a decision on that matter (purchase of plane)," Heru said. He said that since his appointment as a special presidential staff in 2004, he had never known a presidential staff by his initials "JW". "It would be better for those who first disclosed this matter to explain who 'JW" is," he said referring to the story of the online media. Yet, if the report is true, the president will certainly take a firm action against him, he said. "I hope that all sides would think and react professionally and rationally in commenting on the Merpati plane crash accident," he said. What is important now is that the accident should be investigated by experts so that its causes could be revealed to prevent the repeat of such an accident, the presidential staff said.***3*** |
Sabtu, 07 Mei 2011
ASEAN COMMUNITY FACES ECONOMIC DISPARITY PROBLEM
| By Andi Adussalam |
Jakarta, May 8 (ANTARA) - The influx of cheaper Chinese goods in Indonesia following the implementation of the ASEAN-China Free Trade Agreement (ACFTA) can be a signal that the country is not yet well prepared to face free trade. In a borderless regional grouping like the ASEAN Economic Community (AEC) which the Association of Southeast Asian Nations is going to establish in 2015, the flow of goods will no longer be arranged with a tariff reduction. Goods, investments and other trade commodities will flow freely without any barriers. The consequence is that countries which are not yet efficient in the production process will suffer from the glut of imported goods on the one hand, and will on the other face difficulties to penetrate overseas market within the region. Moreover, the levels of economic progress, gross domestic product and per capita income of countries within ASEAN still vary. The more advanced ones like Singapore will definitely take advantage of such an economic community. Can Indonesia plunge itself with enough strength into the borderless community within the region? ASEAN leaders have declared 2015 as the beginning year of the ASEAN economic community integration with the flows of goods, investment and migrant workers are to be integrated like in one country. "The AEC will turn ASEAN into a status more than that of the ASEAN Free Trade Area (AFTA) which arranges only tariff reduction for the imports, exports and services. This requires a strong economic structure of the member states," Adhitya said. As the ASEAN chair, Indonesia should have a strong commitment if it wants to integrate the economies of ASEAN member states. Yet, it would not be able to do it optimally if its own economic conditions at home are still chaotic. "The government has the strong and exceptional ambition towards the creation of the AEC in 2015, but the progress of its own economy is still far from that of Singapore and Malaysia," he said. After all, the Indonesian government is yet to have clear policies and regulations such as business competition and ant-dumping to protect its business players. Thus, it will still face many challenges in the implementation of AEC in 2015. "If Indonesia is able to improve its economic infrastructure and realize the ASEAN economic integration, the AEC would emerge as an exceptional economic power in the world," Adhitya who is also a lecturer on monetary economy in the Jember University, said. However, he said, the commitment of ASEAN members to implement an integrated economic community is not yet maximal. Some members are still reluctant to slow down their economic sovereignty in order to balance the economies of other ASEAN members. In an extreme term, some even exploit others for their individual benefit, according to legislator Fayakhun Andriadi of the House of Representatives (DPR)'s Commission I for defense and foreign affairs. Fayakhun reminded that it should not happen certain ASEAN members continued to entertain their egoistic attitude for their individual interest, even justifying all means to 'exploit' the resources of other member countries. "Mutual exploitation should be stopped. Indonesia should take a firm attitude. It should not continue to give in, or to become a loser," the Golkar Party politician stressed in connection with the ASEAN Summit here on May 7-8, 2011. He said that through the ASEAN Summit, Indonesia should dare ask ASEAN members to stop their unfair practices. "We have to build common strength for our common progress by abstaining from mutual exploitations for individual interest," Fayakhun said. He referred to a number of neighboring countries which were trying to capitalize on new values in the free trade system, especially with regard to the World Trade Organization (WTO). "There are many examples of cases which have become a public secret on that matter. Under the cloak of free trade values they turn us a hinterland and exploit us," he said. Faykhun also reminded that Indonesia and a number of other ASEAN members should not be fooled with scenarios, for example, the open sky policy. "This will benefit smaller country and disadvantage us who have fly zones as spacious as that of European space. This is unfair," he said. In the trade sector, Fayakhun criticized the fact that Singapore had served as if it was the only gate for Indonesian exports and import. "Why exports and imports are carried out as if there was only one gate. Why can't them be shipped directly through Tanjung Priok port. Exports and imports carried out through a certain country will benefit it a lot in the form of margin transit gains," the lawmaker said. He said he did not share the opinion which said that all kinds of trade transactions on commodities or money must be through Singapore because Singapore was an international trade hub. "We cannot simply be resigned in that way. We should be aggressive in laying down network directly to consumers. It should not happen that we are the producer of a commodity but Singapore is its exporter. This is funny. Singapore is not a nutmeg producer but it is the world's biggest nutmeg exporter," he said. If all these unfair problems exist and left unresolved, Fayakhun said he was not sure the idea to establish an integrated economic community and a single currency in ASEAN would be realized. Yet, it seems, Indonesia is convinced with the AEC scheme. Achieving significant progress in the efforts to form an ASEAN Community by 2015 is one the three main priorities of Indonesia's policies as this year's ASEAN chair. "As the ASEAN chairman this year, Indonesia has three priorities and the first is to ensure significant progress in efforts to establish an ASEAN Community by 2015," President Susilo Bambang Yudhoyono said in his address at the opening of an ASEAN-European Union Business Summit at the Jakarta Convention Center on Thursday.***5*** |
ASEAN CONSIDERING TRANSACTIONS IN LOCAL CURRENCIES
| By Andi Abdussalam |
Jakarta, May 7 (NATARA) - The idea to create a single currency for the Association of South East Asian Nations (ASEAN) seems difficult to realize soon due in part to the different levels of gross domestic product among the ASEAN members and the absence of a strong institution to deal with threats in the financial sector. Yet, conducting trade transactions using local currencies within the region is another choice that could be implemented to avoid risks that might arise when using a third party currency like the US dollar. Finance Minister Agus Martowadojo said the 10 ASEAN members + 3 (Japan, China, South Korea) will consider the use of local currencies in making trade transactions among member countries. "We also discussed efforts to encourage the use of local currencies in trade transactions, namely the local currency in respective country. This would be effective in the trade transactions within ASEAN members or in the trade between ASEAN states and China, Japan and South Korea. We are still discussing this matter," the finance minister said. As preparations for the realization of this idea, the central banks of ASEAN countries and those of the three partner states are now studying the possibility of implementing a bilateral swap agreement. "The bilateral swap agreement will be implemented using local currency, for example between Indonesia and Japan, Indonesia and China and Indonesia and South Korea. Ideally, the central banks of these countries should work together and study the possibility of the implementation of a bilateral swap agreement," the minister said. According to the ASEAN Secretariat's website, finance ministers from China, Japan, South Korea and ASEAN have several years ago agreed to expand their system of bilateral currency swaps under the Chiang Mai Initiative to a more multilateral system. The ministers, meeting as the "ASEAN-plus-3" on the sidelines of the Asian Development Bank (ADB) annual meeting in Istanbul, said this would make the Chiang Mai Initiative a "more effective and disciplined framework." According to Pedro Paez Perez, former minister for economic policy coordination of Ecuador, the formation of regional monetary could increase coordination of monetary policies among states and help prevent currency fluctuations. "Cooperation of among states in the region could prevent them from unnecessary debts and could develop their own natural resources to increase the working productivity of their people," he said. He said that Asian countries need to stabilize their regional currencies and set up multilateral loan agency such as the one done by Latin American countries. "Countries in the South need to do this so that they would no longer depend on the economic system of the Western Countries," he said in Jakarta on Thursday. In this case, ASEAN needs to stabilize its local currencies for trade transactions, including the utilization of the currency swap facility. The use of local currencies in trade transactions could minimize risks compared with using a third party currency such as the US dollar. Thus, the plan of ASEAN members to use local currencies is a good breakthrough. "I think this is a good breakthrough and this needed to be followed up. If we use the third party currency in conducting trade transactions the value can usually change, thus risks can emerge," Finance Minister Agus Martowardojo said. However, the minister could not yet assure when the local currencies would be realized because it still needed optimal preparations and popularization. "Maybe it is still a long way to go. It would still be discussed at the deputy prime ministerial level in the first place. Yet, if all have the commitment, it could be realized soon," the minister said. At least this could be implemented before hand, before a single currency is created. Virtually, ASEAN has a good prospect for a single currency like the euro by the European Union, as the regional association's trade has been accumulating hundreds of millions of US dollars each year. Diponegoro University economist Nugroho SBM said that ASEAN remains an important geopolitical and economic power in Asia, and even in the world, and therefore a single currency will strengthen it against pressure from the US dollar for instance. With ASEAN having a single currency, he said, the strong effect of the US dollar in that part of the world would be sterilized and thus strengthening the monetary position of the ASEAN countries. "Indeed, it would take a very long time. The European Union alone needed 60 years before agreeing to use the euro as a single currency, bit it would be better to discuss the foundation of an ASEAN single currency from now on," he said. He said Indonesia, Malaysia, Singapore, Thailand, and the Philippines may serve as a driving power for the formation of a single currency because they have a dominating trade volume among the ASEAN member countries, he said.***5*** |