FOREIGN INVESTMENT IN RI EXPECTED TO INCREASE

Andi Abdussalam

Jakarta, June 29 (ANTARA) - Foreign investment in Indonesia is expected to increase in the next few years as conditions for doing business in the country continue to improve  and its economic growth is expected  by many quarters to reach up to seven percent next year.          "Foreign investors, particularly from the United States and European countries, are optimistic about their investments in  Asian countries, Indonesia in particular," money market analyst Farial Anwar said on Monday.          Foreign investment in the domestic market would increase in the face of the upward trend in the country's economic growth which is expected to reach seven percent, said Farial who is also director of the Currency Management Group.          "We believe  the government is  moving towards that end so that the national economy will grow well," he said.          Yet, foreign capital which entered the domestic market so far was only invested in the financial market, such as stocks market, money market and Bank Indonesia (BI/the central bank)'s instruments.          Therefore, the government should be able to attract foreign investors to make their investment in the long-term or real sector such the establishment of factories that would offer jobs and incomes to the people, he said.          Virtually all foreign investors are  only interested in  port-folio investment but not in  direct investment in the real sector. According to Investment Coordinating Board (BKPM) chief Gito Wirjawan, billions of dollars of foreign investment will flow into Indonesia in the coming two or three years.          "Indonesia has won concrete commitment from foreign investors. Billions of dollars will flow into Indonesia in the next two to three years," Gito said during the World Economic Forum here recently.          He said that foreign investment commitment and realization turned out to be increasing over the past few years. Indonesia recorded an increase of 55 percent investment growth, and in the first quarter of this year it  reached 27 percent.          In 2010, foreign investment inflows reached Rp148 trillion, a 52 percent increase compared to Rp97.4 trillion the year before.          The Investment Coordinating Board (BKPM) has set itself the target of luring Rp240 trillion in  investment this year, up 15 percent of the realized investment of Rp208.5 trillion last year.          "We will achieve the 2011 investment target by improving policies related to investment, providing better services, granting fiscal facilities, and accelerating development of infrastructure, " Gita Wirjawan said.          Investment is expected to continue to rise this year after growing significantly by 54.2 percent to Rp208.5 trillion from Rp135.2 trillion in 2010.       The 2011 investment climate would largely depend on the domestic political and economic conditions which had of late been very conducive.          BKPM?s Regional Director II Yuliot recently expressed optimism that the 2011 investment target could be achieved due among others to the government's policy to provide investors with tax holiday facilities under Government Regulation No. 94 of 2010.          As regard to this year's investment, BKPM deputy for investment control M. M. Azhar Lubis said up the first quarter of this year Indonesia had recorded an investment value of Rp53 trillion. In the second quarter of 2011, it predicted a figure of Rp60 trillion.          He said that the Rp60 trillion which was composed of domestic and foreign investment, increased from Rp53 trillion in the first quarter of 2011.          "We predict the total investment in the second quarter of 2011 at Rp60 trillion, higher than that of the first quarter," Azhar Lubis said.          He said that the increase in the investment would depend on how far is the government's ability to develop infrastructure and the development of down-stream mining as well as crude palm oil products.          In addition, the plan to improve infrastructures all over the country and to step up one-stop services is expected to boost investment this year, he said.          Investors, particularly foreign ones,  have great interests to invest in the country as reflected by the upward trend in foreign investment inflows.          According Farial Anwar, Indonesia has the chance to boost its economic growth to seven percent, and thus attract foreign investment, though currently it is only supported by the consumption sector, not by the industrial sector which showed less qualitative growth.          Farial pointed out various other factors that would boost the growth of foreign investment in Indonesia.          China's policy which is tightening its liquidity to slow down its fast economic growth is one of the factors that would encourage foreign investors to choose Indonesia's domestic market.          Beijing feared that it would generate big inflation if it provided credits in large amounts. Therefore, it was tightening its liquidity to slow down its economic growth, he said.          Apart from that, Indonesia also could take advantage of the slow economic growth in the United States.          Foreign investors are still unwilling to enter the United States market which still adopts low interest policy and the European markets which are now being plagued by debt crises.          Therefore, the Asian markets are seen as the prime mover of the world economic growth, regardless of the fact that Japan after two quarters had not yet experienced improved economic growth, he said. ***5*** (T.A014/A/HAJM/13:30/A/O001) 29-06-2011 13:30:

RI HAS HAJJ QUOTA OF 211,000 FOR 1.4 MILLION IN WAITING LIST

By Andi Abdussalam

Jakarta, June 28 (ANTARA) - The Indonesian government has asked Saudi Arabia for additional allocation of 27,000 to its hajj quota of 211,000 pilgrims this year as its would-be hajj pilgrims have reached 1.4 million in the waiting list.          In the face increasing lodging and flight fares, the government is also seeking increase in hajj pilgrimage cost from US$3,342 in 2010 to US$3,846.7.          Indonesia's hajj quota this year is set at 211,000 similar to that in 2010 but the Indonesian government wants an increase in line with the increase of its population which has reached 237 million.          "We are still striving to get an increase of 27,000 from the Saudi government but so far there has not been any decision about it," Religious affairs minister Suryadharma Ali said recently. He said request was made based upon the latest census data on the country's population which now reaches 237 millions.          Indonesia wants the Saudi Government to increase its quota to 238,000 this year, the minister said.          When he visited Medina this month, Vice President Boediono   urged Indonesian diplomats dealing with Hajj pilgrimage affairs in Saudi Arabia to strive for an increase in the Hajj pilgrimage quota.  "We should strive to have the quota raised because many of the country's Muslims haven't yet enjoyed the opportunity to conduct the Hajj pilgrimage, and have to wait for many years," Boediono said.          The vice president believed that many Indonesian would-be Hajj pilgrims had to wait 12 years before they could leave for Mecca and Medina for the hajj pilgrimage.          "It's a very long time to wait. We should be more active to get an increase in our quota," the vice president said.          Religious Affairs Minister Suryadharma Ali traveled to Saudi Arabia in March to ask for an increase in the hajj quota. Indonesia is still waiting for the Saudi government's reaction.          The minister said that  if the request is met it will be divided among provinces, based on a population increase. "If it is met we will divide it among the provinces according to the number of population," he said.          In the meantime, Secretary General of the Ministry of Religious Affairs Bahrul Hayat said on Monday that the governments of Indonesia and Saudi Arabia should soon discuss efforts to increase the number of tents in Mina, one of the hajj ritual sites, to anticipate the possibility of Saudi Arabia increasing quota for Indonesia's hajj pilgrims.          "It is very important for both governments to discuss and increase the number of tents for Indonesian hajj pilgrims because tent facilities are related to hajj rituals," said Bahrul Hayat.          He said that Indonesia had requested an increase in its hajj quota which at present was 211,000. This number is not proportionate with the Indonesian population of 237 million.          Based on regulations of the Organization of Islamic Conference (OIC), a country will have a quota of one pilgrim for each 1,000 of its population.          If this ratio is used, Indonesia still has a chance to get an increase in its quota by 26,000 pilgrims.          Until June 7, 2011, some 1,420,915 people had been listed as planning to perform the Hajj pilgrimage this year.          Besides seeking increased hajj quota, the government is also proposing to raise the hajj pilgrimage cost from US$3,342 in 2010 to US$3,846.7 in 2011. This proposal is still discussed with the House of Representatives.          "We are still discussing the 2011 hajj pilgrimage cost with the House Commission VIII on religious affairs. But the government and the DPR will try not to increase it. Yet,  there were other factors that might increase hajj pilgrimage cost, including aircraft fuel (avtur) price," he said.          The minister said that if fuel price went up, flight fare would undoubtedly follow and in turn it would have an impact on hajj pilgrimage cost.          He said  the airline companies that would transport Indonesian hajj pilgrims this year had proposed a US$342 increase in flight fare to US$2,076 from last year's US$1,734.          However, Iskan Qolba Lubis of the  Commission VIII  said he was opposed to the government's plan to raise the hajj pilgrimage cost from US$3,342 in 2010 to US$3,846.7 in 2011.          "The House of Representatives will still study which price components of the pilgrimage cost could be reduced so that the hajj cost would be within the financial reach of the people," he said.          He urged the religious affairs ministry to refer to the ministry of transportation's proposal in reformulating transportation cost for hajj pilgrims so as to lower the amount.          "The House of Representatives is still studying the amounts of various components of the hajj pilgrimage cost that can still be cut so that the total cost will be within the financial reach of most people," Iskan said.          Minister Suryadharma Alie said that the government and the House of Representatives would actually try not to raise the 2011 hajj pilgrimage cost.          "Of course, we will discuss it (the proposed flight fare hike) so the hajj pilgrimage cost will not increase," he said.          Hopefully, the 2011 hajj pilgrimage cost could be decided in the near future, he said.***6*** (T.A014/A/H-NG/a014) 28-06-2011 15:35

MORE EFFORTS NEEDED TO FIGHT DRUGS

By Andi Abdussalam

Jakarta, June 26 (ANTARA) - "Say no to drugs" is a slogan that portrays Indonesia's seriousness to fight drug abuses, but the  programs it has  launched so far have yet to produce any significant results while the number of drug users is increasing each year.          "Crimes and narcotic abuses are still posing  a serious threat both to the world and our country. Although we have done a lot to stop and prevent narcotics crimes, yet we still need to make more efforts to assure that Indonesia is freed from illegal drugs," President Susilo Bambang Yudhoyono said during a function to observe  International Anti-Narcotics Day in Jakarta on Sunday.          Indonesia has established a  National Narcotics Agency  (BNN) to make efforts and launch campaigns against drug abuses and illegal trafficking. Last year the BNN declared its goals to free Indonesia  from illegal drugs by 2015.          With the various campaigns, BNN  chief Gories Mere  hoped Indonesia would be free from narcotics by 2015. To achieve the goal he called for cooperation of all parties.  "BNN hopes with continued cooperation with the office of the minister for backward regions Indonesia will be free of narcotics by 2015," he said last year when  signing an agreement with  minister for backward regions Ahmad Helmy Faisal  to eradicate the circulation of drugs in poor regions.          It seems however that the number of drug abusers still continued to increase. During the function to observe world anti-narcotics day  at Jakarta's National Monument Square  on Sunday,  BNN head Gories Mere said that the number of drug users in the country has now reached 5 million.          He said that based on a  BNN survey  narcotic abuses continued to increase and in  2009 the  number of narcotic addicts 10 to 59 years old accounted for 1.99 percent of the country's population or about 3.6 million.          Their number increased 2.21 percent to about 4.02 million in 2010. Since early this year, the abuses have reached 5 million,  an increase by 2.8 percent.          According to BNN campaigner Andi Prawira, of the five million drug users, about 1.5 million are teenagers. "One third of the total number of drug users have HIV/AIDS," Andi said.          Gories even mentioned  that what had been revealed was actually like the tip of an iceberg phenomenon which continued to pose threats and affect students and other members of the young generation.          Millions of drug users in the country virtually came from various social and professional backgrounds, including artists, musicians, students, politicians, and even policemen.          As some narcotic agents of international networks have been revealed by local security personnel, Gories was confident that the circulation of illegal drugs in the country was part of international networks. International narcotic networks are operating in Indonesia, involving syndicates from, among others, Iran, Nigeria, India, China and Malaysia.          Therefore, the Indonesian government has to make more efforts to rid the country of  drug cells which could destroy the future of the nation's younger generation.          President Susilo Bambang Yudhoyono launched the National Strategy and Policy (Jakstranas) Movement for the Prevention and Eradication of Illegal Circulation and Abuse of Narcotics ((P4GN) 2011 - 2015.          "To save us all, I hail the efforts of BNN to fight and prevent abuse of narcotics," the president said stressing that  narcotics crime is a serious and dangerous crime that needs common attention and commitment to preventing and eliminating it.          He said that narcotics destroyed the nation's younger generations, characters and society and in the long run, it will tarnish the nation's competitiveness. The president said that narcotics abuses would also prompt people to commit  other criminal acts such as robbery, theft, money laundering and terrorism.          To further intensify campaign against drugs, the President  ordered the BNN chief  to lead the (P4GN) movement which aimed to free Indonesia from narcotics in 2015. "I have ordered the BNN to lead this movement," he said.          He has also instructed the government ranks and files in Jakarta and in the region to support the BNN in realizing its determination to create "Indonesia Free Narcotics 2015."     He said if all sides were committed  and work hard together, Indonesia would be able to stop and prevent narcotics crimes which had the potentials to destroy the nation's younger generations.          In an effort to carry out the program and to free Indonesia from narcotics abuses, the President issued a six-point instruction. "We have done a lot (to stop narcotics crime) but it seems that it is not yet enough, we still have to be more aggressive," the president said.          The first point of the president's instruction to free Indonesia from narcotics in 2015 is to increase the intensity of illegal drug trafficking prevention efforts.          The second point is a request to increase regional and international cooperation in an effort to protect Indonesia so that it would not easily be disrupted by narcotics organizations. Yudhoyono also called on educators, parents and religious leaders to actively educate younger generations so that they would not be misled and involved in narcotics crimes.          The president's fourth point of instruction was directed to police and legal enforcers, asking them to actively make efforts to uncover narcotics crimes and punish the perpetrators with appropriate punishment.          The fifth one, Yudhoyono said, was that the people should become more active and have greater care.          In the meantime, the sixth point concerned common efforts to encourage narcotic rehabilitation programs and the preparedness to accept former drug addicts to return to society.***3*** (T.A014/A/H-NG/A/S012) 26-06-2011 22:21:

GOVT REVEALS EFFORTS TO SAVE ITS CITIZENS OVERSEAS

By Andi Abdussalam

Jakarta, June 24 (ANTARA) - Facing 'hails of bullets' from its critics that it has failed to protect Indonesians abroad as showcased by the beheading of Ruyati in Saudi Arabia last weekend, the government on Thursday explained what it has done overseas.          "I am not seeking a justification but merely presenting the  facts. In the past few days the government has been pictured as  lagging behind other countries in protecting their workers. Indeed there are opportunities for improvement but the reality is often different," Foreign Minister Marty Natalegawa said.           He made the remarks when he explained the government's measures to assist Indonesian nationals facing trouble in other countries and in response to criticism that Indonesia is even lagging behind the Philippines in protecting its nationals aboard.           The execution of the Indonesian domestic helper sparked an uproar at home and calls on the government to apologize to the people and to protect some 22 other Indonesian migrant workers who are now  on death row in Saudi Arabia.

GOVT URGED TO INCREASE SUBSIDIZED FUEL QUOTA

By Andi Abdussalam

Jakarta, June 23 (ANTARA) - Amid its efforts to keep its subsidized fuel quota ar 38.6 million kiloliters as set in the 2011 state budget , the government is now urged to provide for an addition to the  quota as supplies of the commodity in a number of regions are running low.          A number of regions such as Lampung and Kalimantan have been facing shortages of fuel oils of late because supplies have been reduced as consumption has exceeded 50 percent of the quota.         Finance Minister Agus Martowadojo said recently the subsidized fuel oil quota amounting to 38.6 million kiloliters must be maintained in order not to burden the 2011 state budget.  "Last year, the use of subsidized fuel oil exceeded the target to reach up to 42 million kiloliters, but now we ask that the 38.6 million kiloliters should be maintained," the minister said.         However, a number of regions have run shortages of supplies.  Therefore, the Public Policy Study Center (Puskepi) called on the government to increase the subsidized fuel quota in order to overcome shortages of fuel oils.         The same call was also made by state-owned oil and gas firm PT Pertamina which has asked the government to add two million  more kiloliters of subsidized fuel oils in order to overcome shortages that have occurred in the field lately.          According to Puskpi director Sofyano Zakaria   here on Wednesday the shortages of fuel oils in a number of regions of late were due to limited supplies since consumption had exceeded the quota of subsidy based on the 2011 budget.  "If the fuel oil consumption has exceeded the set quota the government should increase it in order to prevent shortages," he said.          Pertamina spokesman M Harun said the company had earlier predicted that subsidized fuel consumption this year would reach 40.5 million kiloliters. The two million kiloliters are higher than the amount set in the state budget for 2011 at 38.6 million kiloliters. "Our estimate is that consumption will reach 40.5 million kiloliters until the end of the years," he said.          Sofyano said that the government should discuss the matter with the House of Representatives (DPR) soon, particularly when the 2011 revised budget was deliberated.  Besides that, he said, state-owned oil and gas firm Pertamina should also arrange the distribution of subsidized fuel oils tightly. "I think it would be easy to raise the quota because shortages still happen locally and not yet nationally," he added.          The government has allocated 38.6 million kiloliters as subsidized fuels in the 2011 state budget, which consisted of 23.19 million kiloliters of gasoline premium, 2.32 million kiloliters of kerosene and 13.08 million kiloliters of diesel oil.          According to Harun, his side has informed the Down Stream Oil Regulating Agency (BPH Migas) about its estimate on the required subsidized fuel addition.          Based on the procedures the BPH Migas would proposed the required amount of additional subsidized quota to the ministry of energy and mineral resources (ESDM) before it was discussed inter-departmentally and submitted to the House of Representatives (DPR) in the 2011 revised state budget deliberations.          The ESDM ministry has earlier predicted that the subsidized fuel oil consumption in 2011 would reach 41.42 kiloliters or far above the budget quota.          Up to May 31, subsidized fuel oil consumption has been estimated at 15.46 million kiloliters.          Harun said that the shortages of subsidized fuel oils happened in a number of regions such as Lampung and South Kalimantan. The shortages happened because there is deviation in its use such as the use of subsidized fuel oils for industry or plantations.          He said that there many refueling stations which were forced to sell subsidized fuel to those who bought it using jerry cans drums. "In this case, fuels will always finish, no matter how much Pertamina has supplied," he said.          Until May 31, 2011, the realization of subsidized fuel oil consumptions in Lampung has exceeded 15 percent of its quota, despite the fact that Pertamina has tried to supply the province based on its quota set at the state budget.          The quota surplus has actually been predicted before because the assumption for subsidized fuel consumption for 2011 was set at the same volume of that consumed in 2010.  The subsidized fuel oil quota at the 2011 state budget was set at 38.6 million kiloliters, which consisted of 23.19 kiloliters of gasoline premium and 2.32 million kiloliters of kerosene and 12.86 million kiloliters of diesel.          The volume of subsidized fuel oil set at the 2011 state budget is not far from the realized subsidized fuel consumption in 2010 which was 38.4 million kiloliters, where gasoline premium accounted for 23.13 million kiloliters, kerosene 2.39 million kiloliters and diesel oil 12.86 kiloliters.          On the other hand, consumption will surely increase in line with the increasing number of vehicles and improvement of the economy. The increase in the quota is also caused by high disparity between the price of subsidized fuel oils and non-subsidy fuels.***5*** (T.A014/A/HAJM/22:10/a014) 23-06-2011 23:0

DOCTORS LIKELY TO PRESCRIBE MEDICINAL HERBS

BY Andi Abdussalam

Jakarta, June 22 (ANTARA) - Experts are now conducting a research on medicinal  herbs to ascertain they contain medicinal properties that can help  cure  diseases, while the possibility to include them in doctor's prescription is still a topic of discourse.          "The idea was also discussed at a health ministry's national working meeting in Batam recently. However, many things still need to be considered before it can be implemented," the head of East Java's health office, Dr. Dodo Anondo, said.           The Health Ministry  is currently conducting a program to  scientize Indonesian medicinal herbs or 'jamu' in order to make them as scientifically credible as modern drugs and  internationally acceptable.          Medicinal herbs have been used  in Indonesia since time immemorial to heal different kinds of diseases, yet they have not gained recognition, at least until recently, by the medical world to put them on doctor's prescriptions.          Aware of the effectiveness in curing  diseases and the economic potential of at least 3,000 kinds of medicinal herbss in Indonesia, the government is now launching a program to study and scientize medicinal herbs.

YOGYAKARTA'S MALIOBORO ENLIVENED WITH ART FESTIVALS

By Andi Abdussalam

Jakarta, June 21 (ANTARA) - Yogyakarta's authorities  are organizing various art festivals, carnivals, and cultural performances in Malioboro, the city's landmark thoroughfare, in an effort to further enhance the famous street's ability to draw  tourists.          "We have a theme that described creativity between the Mount and the Ocean to mark the opening of the Yogyakarat Arts Festival (FKY) 2011. This is to portray the real conditions of Yoyakarta," FKY 2011 chief Ryan Budi Nuryanto said.           Yogyakarta is not only known as a center of educational activity   but also as a special administrative region rich in historical and cultural values that are attractive to tourists.        Besides Malioboro as a tourism icon, Yogyakarta also has  Kotagede, a former center of the Islamic Mataram Kingdom in the 16th century that could be developed into a main tourism destination.       Yet visitors to Yogyakarta should not miss Malioboro, a famous downtown district where visitors can buy low-priced gifts. One cannot be considered to have been to Yogyakarta if one has not yet visited Malioboro.          In order to maintain Yogyakarta's attractiveness to tourists, the local authorities continue to promote the local tourism potentials. The Yoyakarta Arts Festival 2011 was officially opened on Monday night, marked with cultural carnivals involving at least 500 artiest along Jalan Malioboro Street up to the Vredenbur Fortress.          The cultural carnival started from the Yogyakarta Tourism Service with a group of marching bands followed by colossal dances carrying a theme: "The Crown of Yogyakarta's Glory,". Puppet shows and other forms of local arts such as  angguk and 'jathilan' arts are also presented.          "All forms of events in the cultural carnivals are local arts that described the theme we want to introduce. We want to show that arts developing in Yogyakata are really influenced by the presence of Mount Merapi in the North and the Indian Ocean in the South," Ryan said.          The FKY 2011 will also be held with the holding of an Arts Market at the Museum of the Vredeburg Fortress, which will last until July 5, 2011. At the arts market, at least 160 stands have been built which offered different kinds of handicraft products, batik clothes and furniture.          The committee has set itself a target of concluding transactions worth Rp5 billion during the holding of the arts market. This value is twice higher than the transaction values concluded in the same event last year which was only Rp2 billion.         "We and the Indonesian Furniture Businesses Association (Asmindo) will also donate furniture to the victims of Mount Merapi eruption who are still staying in emergency makeshifts. But we are still taking stocks of their need in the face of the coming post-fasting month lebaran festivities" he said.          Apart from the FKY 2011, the local authorities will also hold a Malioboro Festival. The Malioboro Festival is scheduled to be held on June 25-26, 2011.          Local tourism official Putu Kertayasa said that Malioboro Festival would introduce various attractions of Nusantara Stage, Symphony for Indonesia, Shadow Puppet Performance, Sapta Pesona Competition, Malioboro Photo Competition, and Malioboro Food Bazaar.          He said that Malioboro street needs to feature more activities or objects  of interest to tourists. "To enliven Yogyakarta's attraction to tourists the Malioboro area must present more things of interest to them," Putu said.          Besides Malioboro, the Yogyakarta Tourism Promotion Board (BP2KY)  is also planning to promote Kotagede so that the former center of the Mataram Kingdom would become a main tourist destination in Yogyakarta.          "Kotagede has a big potential to be developed as a main tourism destination. It's just reasonable if it later becomes Yogyakarta's main tourism destination,"  Yogyakarta BP2KY head  Dedy Pranawa Eryana said on Tuesday.          Kotagede has a number of attractive tourism potentials such as silver handicraft, culinary and religious tourism or visits to historic mosques, tombs of kings and various other local cultures and local people's unique life.         "I think the Kotagede tourism potentials could be sold such as those in Penang, Malaysia, where heritage tourism developed well," Dedy said. Kotagede potentials can be sold not only to foreign tourists but also to local travelers, or domestic tourists.          He said that possibly foreign tourists would prefer to stay in Kotagede to enjoy and learn the activities and daily life of the local people.          "Therefore, the development of tourism destinations in in Kotagede needs to be supported with the development of home stays at residents' houses," Dedy added.          For this purposes, the development of Kotagede needs not only physical preparations but also the readiness of good human resources.          Head of the Preservation and Development of Cultural Values Affairs of Yogyakarta's Culture and Tourism Service, Widiyastuti said Kotagede had yet to become a main tourist destination but it had the potentials.          "However, it has many tourism potentials with cultural tourism as its icon," she said. It also still needs additional supporting facilities such as areas to be developed into parking lots.          "The tourism potentials owned by Kotagede are not only attractive to foreign tourists but also to domestic visitors," she said.***5*** (T.A014/A/HAJM/21:45/a014) 21-06-2011 21:48

RI TO CUT TRANSPORTATION ACCIDENTS

By Andi Abdussalam

Jakarta, June 21 (ANTARA) - The government is launching a program aimed at cutting down by half in the next ten years the number of transportation accidents which at present reach 30,000 which take the  lives of about 60,000 people annually.          The rate of accidents and accident-related deaths in Indonesia, a country with a population of about 237.6 million, is high partly because of the rapid increase in the number of vehicle production, inappropriate road infrastructure, the lack of vehicle worthiness and insufficient awareness of safety procedures.          To improve the country's transportation conditions, the government lunched the program and expected to achieve the goal in ten years. "The target will be achieved by implementing a national general plan for traffic safety (RUNK LLAJ) which will involve relevant parties. The implementation of its action plan will need 10 years or a decade," Director of Land Transportation Safety at the Transportation Ministry Hotma Simanjutak said recently.          The ten-year implementation of the program is thus dubbed as a safety decade, and on Monday Vice President Boediono launched the Road Safety Decade 2011-2020, hoping it could keep down the number of road accidents in the country.          Indonesia is among the countries having the high number of road accidents, he said during the launch of the campaign at the vice presidential office here. The plan is in line with the UN Decade of Action for Road Safety 2011-2020 which is a follow-up to UN Resolution No. 64/255 dated March 2, 2010.           Vice President Boediono said that every year nearly 60 thousand people were killed in road accidents in the country. Therefore, the number of deaths and injuries in road accidents must be kept down, he said.          "Of course, the main target of the campaign is to lower the number of fatalities," he said. To make thing worse, the road accidents mostly befell those of productive age who were supposed to contribute to the country's progress, he said.          "In my view, the problem is so serious that we must handle it seriously. The causes of road accidents vary. They can be the poor condition of roads, motorcycles and cars which are not roadworthy. But it seems that the biggest cause is human factor," he said.          It was the road users themselves who would eventually determine road safety and thus, it was very imperative to control motorists' behavior, he said.          Data from the National Police show 31,186 people were killed in road accidents in the country last year, meaning that an average of 84 people per day or 3-4 people per hour were killed in road accidents.          "Ironically, most of the road accidents involved motorcyclists and 67 percent of them were in their productive age. State losses from the road accidents are projected to reach 2.9-3.1 percent of the gross domestic product, an equivalent of Rp205-220 trillion," Hotma Simanjutak said.          The higher rate of accidents involving motorcyclists is also attributable to the higher growth of motor vehicle production which reached more than 8 million units as compared to that of car production which was about 800 thousand per annum.          Industry Minister MS Hidayat said the production of cars and motorcycles this year was estimated at 800 thousands and 8 million respectively.          Hidayat said that unluckily, the increase in the vehicle production was not followed by improvement of road infrastructure which eventually boosts the rate of road accidents. After all, he said it was impossible to reduce the number of vehicle production.          "It is impossible to cut down the number of production. Even, it is predicted that car production would reach one million units in 2013 and motor vehicles 10 million units. So, the only way is to increase our exports and distribution to cities outside the crowded Java," the industry minister said.          Hidayat also responded to the vice president's request that arrangement must also be made with regard to vehicle production. He said that the vice president wanted an arrangement where vehicle distribution was not concentrated in Jakarta and its satellite towns of Bogor, Depok, Tangerang and Bakasi.          According to Vice President Boediono, the number of traffic accidents in Indonesia must be reduced and for this purpose, a comprehensive short and long term arrangement is needed. He said that clear traffic signs and regulations were needed owning to the fact that public spaces were limited.          "No matter what conditions we are facing, we have to have an arrangement regarding the limited public spaces in order to serve  public interest," the vice president said.          And what all the public need is awareness of the importance of  observing traffic safety regulations. He said that the government had issued a number of regulations related to traffic safety but the regulations were not enough without motorists' awareness about traffic safety.          Therefore, the vice president said he highly supported the action plan for traffic safety which would focus on promoting motorists' awareness of traffic safety.          "I hope for concrete steps to eventually reduce  the risk of traffic accidents caused by human error," he said. ***4*** (T.A014/A/H-NG/a014) 21-06-2011 13:40:

GOVT UNDER FIRE FOR FAILURE TO PROTECT MIGRANT WORKER

Andi Abdussalam

Jakarta, June 20 (ANTARA) - The government is now under fire from various quarters at home for its failure to protect  migrant worker Ruyati binti Satubi who was beheaded in Saudi Arabia on Saturday for  killing the wife of her Saudi employer, Khairiya bint Hamid Mijlid.          The execution of the Indonesian domestic helper sparked an uproar at home and calls on the government to apologize to the people and to protect some 22 other Indonesian migrant workers who are now still on death row in Saudi Arabia.          "President Susilo Bambang Yudhoyono, Foreign Minister Marty Natalegawa, Manpower Minister Muhaimin Iskandar and Head of the National Agency for Placement and Protection of Indonesian Workers Overseas (BPN2TKI) Jumhur Hidayat, must apologize to the people of Indonesia because they failed to protect Indonesian citizens working overseas," Iberamsjah, professor of political and social sciences of the University of Indonesia (UI), said in a discussion here on Monday.          Former chairman of the Indonesian largest Muslim organization Nahdatul Ulama (NU), Hasyim Muzadi urged President Yudhoyono to take the necessary steps and to be serious in preventing the repetition of execution of Indonesian citizens in foreign countries. He made the remarks in response to the beheading of Ruyati over the weekend in Saudi Arabia.

GOVT NEEDS TO FACILITATE CREDITS FOR MICRO BUSINESSES

By Andi Abdussalam

Jakarta, June 19 (ANTARA) - Small and medium enterprises (SME) are in real term the main pillars of the people's economic development as they provide employment for about 90 million or about 97 of  the total workforce and contribute 53 percent to the country's Gross Domestic Product (GNP).          Considering the roles the SMEs play in the country's economic development, the government should facilitate and encourage banks to provide credits for them whose number reaches 51.26 million units or about 99 percent of the whole businesses in the country.           "They must be given attention and various kinds of assistance such as access to various information, capital sources and other funding facilities. This should be done based on the people's economic principles," Maritime Affairs and Fisheries Minister Fadel Muhammad said in West Sumatra recently.          The need to provide financial support for SMEs is also voiced by Djemi Suhenda, vice president director of Bank BTPN, in Bandung on Sunday. He said that the number of small businesses in Indonesia now was recorded at 51 million units, of which 36 million were in the poor productive sector.          "The government support is needed to increase small businesses' access to the funding sources, among others by issuing supporting regulations, loan infrastructure, credits, training and researches," he said.           According to Djemi Suhenda, banks so far have only paid attention to micro banking facilities while they still ignored the poor productive sector because they think it would need huge funds while profit they could gain is not significant.          "The micro and poor sectors need fast and easy access to funding sources in order to accelerate and boost their roles in the development of people's economy," he said.          The banker however acknowledged that it was not easy and cheap  for banks to enter into the micro and poor sectors because they would need a huge investment and a business model innovation in order to adjust it to the characters of micro and small people.

RI COFFEE GROWERS TO EXPAND PLANTATIONS

By Andi Abdussalam

Jakarta, June 18 (ANTARA) - As their production has been  showing a downward trend over the past two years, coffee growers in Indonesia, the world's third largest coffee producer, want to increase the acreage of their plantations.          By increasing the acreage of their plantations, growers in the country expect to increase their production from this year's estimated 600,000 tons to between 900,000 tons and  1.2 million tons in the coming ten years.          "We will cooperate with the relevant ministries to prepare the needed land to expand coffee plantation acreage for farmers so that in the coming 10 years production could reach 900,000 tons to 1.2 million tons per annum," the Indonesian Coffee Industry and Exporters Association (AEKI) Deputy Chairman for Coffee Specialty and Industry Pranoto Soenarto said.          He said that expansion of plantation acreage was needed to produce better quality coffee beans.   Intensification with fertilizers could increase production quantity but it could not be guaranteed that it would also increase production quality.         "We want to increase the quality and quantity of production by increasing plantation acreage and using organic fertilizers," Pranoto said. But he did not mention the width of the needed acreage to increase coffee production up to 1.2 million tons in the coming ten years.          At present, he said, the country's coffee plantation areas cover 1.2 million hectares where over 90 percent were cultivated by smallholders.          This year, production is expected to drop to below previous estimate. AEKI has predicted   the volumes of the country's coffee production in 2011 at 600,000 tons only, lower than last year's volumes of 640,000 tons.          "Last year, the country's coffee production was about 640,000 tons," AEKI Chairman Suyanto Husein said here on Friday.          He said that his organization predicted early this year that Indonesia's coffee production could reach 700,000 tons but it was later revised down to 600,000 tons.  "There is an indication of decreasing production in a number of production centers in various regions due to bad weather," he said.          The AEKI chairman said that the drop in the coffee production was due in part to the increasing acreage of old plants besides unfavorable weather conditions.  While the old plant acreage is increasing, efforts to rejuvenate plants and launch intensification programs are still limited.          For this reason AEKI was planning to expand plantation acreage to increase production.          Besides in the drop of production, AEKI has also predicted a decline in the country's coffee exports this year.          The Association of Indonesian Coffee Exporters and Industries has predicted the country's coffee exports in 2011 will reach only around 390,000 tons, down from last year's figure.           AEKI general chairman Suyanto Husein said the drop in exports is caused by declining production and increasing domestic consumption.       According to AEKI data, exports of coffee beans in 2010 reached 443,969 tons worth US$791.76 million. AEKI earlier last year predicted that Indonesia's coffee export volumes in 2010 would drop from 400,000 tons worth US$773 million per annum to 325,000 tons valued at US$650 million.          Indonesia's traditional coffee export markets, especially for Robusta coffee, included Japan, Latin American countries, South Africa and Europe. Its Arabica coffee was exported to Germany and the United States.  Indonesia's competitors for Arabica are Brazil, Columbia, Mexico, Costa Rica and El Salvador. Its competitor for Robusta is Vietnam. Vietnam is the biggest Robusta coffee exporter in Asia while the Latin American countries were big exporters of Arabica coffee.          Indonesia's Robusta coffee is produced by the provinces of Bengkulu, South Sulawesi and Lampung while the Arabica type by Aceh and North Sumatra. About 80 percent of Indonesia's coffee exports are those of the Robusta type while the remainders are Arabica.          Apart as producer of Arabica and Robusta coffee, Indonesia is well-known for having different types of coffee such as Toraja coffee, Aceh coffee, Mandailing coffee and Luwak (civet) coffee.          Up to now, Indonesia is still recorded as the world's third largest coffee producers after Brazil and Vietnam.          The drop of Indonesia?s coffee exports was not merely caused by declining production but also by increasing consumption at home. Suyanto Husein said that domestic coffee consumption that reached only 190,000 tons last year would increase to 210,000 tons in 2011.          "The trend in domestic coffee consumption is always up by around 20 percent a year but it is not always reflected in rising production of coffee beans," he said.          He said this happened because many people consumed coffee which is made in mixture with other beans. "It is not pure coffee. Some mix it with corn," he said.          Pranoto Soenarto, meanwhile said that the increasing coffee consumption did not only happen in the country but also in other countries.  This would push up the price of the world coffee because coffee production is fluctuating and dependent on climate.***5*** (T.A014/A/HAJM/19:57/a014 ) 18-06-2011 19:58:

GOVT TO CUT QUOTA OF ERRANT REFINED SUGAR PRODUCERS

By Andi Abdussalam

Jakarta, June 18 (ANTARA) - Indonesia's sugar production is predicted to meet only  50 percent of domestic demand, including demand from  food and beverage industries so that imports are necessary to cover the balance.          Yet, the importation of sugar is a source of annually recurring problems that occur particularly when the government is about to import the balance. The root of the probllems is usually a conf;ict of interest  between sugarcane growers and consumers.          Refined sugar which should be used by food and beverage industry also always poses a problem as it is allegedly often leaked to the retail market.          The House of Representatives (DPR) has planned to summon the trade minister to ask for the government's plan to import over 224,000 tons of sugar.          In the meantime, the government has also threatened to give sanctions to refined sugar producers which leaked their products to the consumption markets.          "Producers will be fined directly if they leak their refined sugar to the retail markets. They will have their import quota reduced," Director General for Internal Trade Gunaryo told a hearing of the House's Commission VI on trade affairs.          The director general made the statement in response to complaints that refined sugar which is designed for industry had sometimes entered the retail markets.       "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 last month.          He said this could have happened because production of refined sugar exceeded the need of food and beverage industries. The remaining then entered the consumption market.         To respond to the sugar farmer's complaint, the government will take sanctions against refined sugar producers who are proved to have leaked their sugar to domestic market.          The government also 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," Gunaryo said.          Gunaryo said that the trade ministry had met with all stakeholders in the production and distribution of refined sugar. It has also set up a task force to monitor refined sugar distribution so that it would not enter the retail market.         The task force is a means of all stakeholders involved in the monitoring of refined sugar distribution.  "This forum will have a routine meeting to evaluate sugar distribution in the country," the director general said.          Besides, the trade ministry will also conduct a periodic monitoring to a number of provinces.          With the supervision and monitoring it is expected that refined sugar would not be sold at the consumption markets as the association of sugarcane farmers and crystal white sugar producers have complained about.          The government has also asked producers to assign distributors and sub-distributors. "We ask them to assign 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.          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.          Yet, the government's plan to import sugar to meet sugar shortage is always questioned. As the government is planning to import some 224,200 tons of raw sugar, the House of Representatives is also planning to summon the trade minister, Mari Elka Pangestu.         "I will encourage the House Commission IV to summon the trade minister to ask whether or not the planned sugar imports will harm the public's interests," House Speaker Marzuki Alie said  this week.          Marzuki said he believed the House Commission IV overseeing agriculture; forestry and plantation had complete data on the planned sugar imports.          The House Commission would ask whether or not the sugar imports were necessary and whether or not they would harm the public's interests because the plan was closely related to low-income people, particularly sugarcane growers, he said.          The government has allowed the trade ministry to issue permits for the import of 242,200 tons of raw sugar. The import sugar will be allocated to seven companies that have secured permits to import raw sugar. ***5*** (T.A014/A/HAJM/19:55/a014) 18-06-2011 19:55

RI, AUSTRALIA CATTLE ISSUE CANNOT BE TAKEN TO WTO

By Andi Abdussalam

Jakarta, June 15 (ANTARA) - The Australian move to suspend its live cattle exports to Indonesia over alleged cruelty against the animal in the latter's  abattoirs could be solved by both countries in  bilateral talks as the World Trade Organization (WTO) cannot  interfere in the matter.          "The WTO cannot influence the decision of a country in restricting its exports to another country. If Indonesia and Australia have a problem over the matter, they should resort to  consultations and discuss it bilaterally," WTO Director General Pascal Lamy said here on Tuesday.          In this case, WTO could not meddle in the suspension of livestock exports imposed by Australia on the grounds that Indonesia had violated  animal welfare principles.          It would help settle a problem only if one of the parties felt it was disadvantaged and applied to the WTO Dispute Settlement Body for its settlement.          "If one party feels its interest has been harmed by unfair treatment, it can use the WTO dispute settlement system," the WTO director general said.          However, an international law observer, Himahanto Juwana said Australia's step to suspend its live cattle exports to Indonesia on ground of violation of animal welfare has the potential to breach the agreement between the Republic of Indonesia and Australia on the Framework for Security Cooperation or popularly known as the Lombok Treaty.          Article 2, clause 2 of the Lombok Treaty stipulates that Australia and Indonesia must mutually respect and support each other's territorial integrity, sovereignty, national unity, political independence and non-interference of domestic affairs.          "In this context, the slaughter of cattle is a domestic affair of Indonesia. If the way the cattle is slaughtered in Indonesia is viewed by Australia as against animal welfare, Australia could tell Indonesia in a way not categorized as an interference in Indonesia's domestic affairs," he said.          The suspension of the cattle exports constituted a coercive step taken by Australia against Indonesia which is not in line with the non-interference and mutual respect principles, he said.          Yet, according to Pascal Lamy, trade restriction can be imposed by a certain country to protect its population and security from health and security disturbance.          The same voice was also expressed by Indonesia's External Trade director general Gusmardi Bustami. He said that in procedural terms, the Australian step to halt the exports of its cattle breeding stock to Indonesia was not prohibited.          "Article 20, clause 20 of the General Agreement on Tariffs and Trade (GATT), does not regulate it, yet it could be construed that someone could take animal welfare as a reason," he said.          The article said that trade restriction could be imposed for public interest, health and state security reasons, yet it could not be applied indiscriminately.          Last week, the Australian government decided to suspend its young cattle to Indonesia for six months because it viewed that a number of Indonesian slaughterhouses did not abide by the animal welfare standards.          A footage aired on ABC1's Four Corners recently showed the animals were kicked, thrashed and beaten, their throats were hacked at, eyes gouged and tails were broken. Yet some quarters in Indonesia considered the allegation as a trick to boost Australian meat exports to Indonesia.          In order to solve the problem, Indonesian Trade Minister Mari Elka Pangestu said that the government was taking the needed settlement steps. She said that Indonesia already had a national action plan to improve the capacity of its abattoirs.          "We have also coordinated with Australia to take stock of slaughterhouses considered to have not yet met the required standards. What have been shown in the video are only a small number. We want to provide guidance for them (slaughterhouses)," the minister said.          In the meantime, Deputy Agriculture Minister Bayu Krisnamurthi said Indonesia and Australia had agreed to formulate animal welfare standards for cattle slaughtering.  The agreement was the result of a meeting between Indonesian Agriculture Minister Suswono and the Australian agricultural attache in Jakarta on Tuesday.         "We will formulate again the slaughter standards. We will probably finish formulating it in the coming two to three weeks," Bayu said.          Virtually, Indonesian abattoirs already have cattle slaughter standards but Australia is not yet satisfied with it while Australia itself is yet to have those standards. Actually, Indonesia and Australia could use the international animal health organization (OIE) standards. But the OIE standards are still general in nature.          Therefore, the rules applied so far by Australia have not yet been recognized by the OIE and WTO.          "The formulation of standards is important as the rules applied in Australia have not yet been recognized by the OIE and the WTO," Agriculture Miniser Suswono said. Indonesia also has animal welfare standards which are spelled out in Agriculture Minister's Regulation Number 13 of 2010 on conditions for slaughterhouses and meat handling units.          At the meeting in the minister's office the two officials agreed the policy of cow imports would be determined only after an investigation was conducted into the torture allegations.          "But before a field inspection is done the animal welfare standards have to be made first" Suswono said.***5*** (T.A014/A/HAJM/15:10/f001) 15-06-2011 15:08:2

TIRE INDUSTRY EXPECTED TO GROW 15 PCT

Andi Abdussalam

Jakarta, June 14 (ANTARA) - Indonesia's tire industry has been growing rapidly in the past several years and this year it is expected to increase by 15 percent partly attributable to the rapidly growing investment in the automotive industry, high sales of vehicles and relatively high increase in the country's economic growth.          The Indonesian Tire Manufacturers Association (APBI)  said in a media release this week that the national tire industry is expected to increase 10 to 15 percent.  This would also be supported by the high increase in economic growth.          The country's economic growth could be made as reference for the market prospects of tire in the country in the coming years.          According to www.scribd.com, the International Monetary Fund (IMF) has predicted Indonesia's economic growth at 6.2 percent for 2011 with the world's car production forecast to grow 8.9 percent to 64 million units.          Based on the predictions, the country's production of tire is expected to grow faster to follow the growth of car and motorcycle industries in the country and in the world. The tire industry suffered a setback in 2009, but in 2010, it recovered quickly marked with a sharp increase in production and sales.          The country's production of car tires in 2010 surged 28.8 percent motorcycle tires shot up by 43.2 percent compared with in 2009. Sales of tires in replacement market grew 23.8 percent sales in original equipment/OE market (car factories) climbed by 54.4 percent and exports rose by 25.4 percent.          In 2005, the country's tire production rose 16 percent when the country's economy expanded 7.2 percent. In 2010, tire production surged 33.7 percent when the economy grew 5.8 percent.          Tire sales in Indonesia in 2010 increased by 23 percent from 2009, or approximately 49.5 million tires. Besides, tire exports in 2010 also increased 25 percent from that of 2009 to 35.1 million.          APBI chairman Aziz Pane said several occasion of late that tire sales in Indonesian in the first quarter of 2011 increased seven percent year on year. This was supported by the increase the sales of vehicles in the country.          The expansion of the production capacity is to keep pace with growing demand from fast growing automotive industry and from export markets in Southeast Asia, Oceania, Middle East and Africa.         At the same time, Indonesia is also the third largest market in Southeast Asia after Thailand, where an estimated 620,000 cars were sold, and Malaysia, with some 485,000 a couple of years ago.         Increase in car and motor vehicle sales and relative high economic growth gave a boost to the development of tire industry at home. After all, Indonesia is known as one of the biggest rubber producer in the world with a total production of 2.92 million tons in 2010.          Indonesia, Thailand, Malaysia and Vietnam collectively supply 95 percent of the world rubber demands.          The bright prospect for tire Industry at home has also attracted a South Korean tire producer to the make its investment in Indonesia.          South Korean tire maker  Hankook Tire will invest 353 million US dollars in Indonesia to build factories that are to  employ a total of about 2,800 people by 2018.          "Building a factory in Indonesia which is in the middle of the global market is a decision that will be beneficial for the economy of Indonesia and also Hankook Tire," CEO of Hankook Tire, Seung Hwa Suh, at the inauguration of a tire plant in Bekasi, West Java, said last week.          Minister of Industry, MS Hidayat expressed happiness for the fact that Hankook Tire has chosen Indonesia as a location to develop a global business strategy, which according to the Investment Coordinating Board (BKPM)  chief, Gita Wirjawan, will strengthen business relations between Indonesia and South Korea.          In the first phase, Hankook Tore will invest 353 million US dollars with an initial production capacity of about 6 million tires per year. It plans to have hired about 1,400 workers by 2014 and 2,800 by 2018.          "Hankook Tire is to make a strategic investment in Indonesia to meet the high demand for high-quality tires for its globally expanding business," Seung Hwa Suh said.          The factory which is worth a total of 1.1 billion U.S. dollars is planned to have four major production facilities covering an area of 60 hectares and will become an export base for the North American market and the Middle East as well as a regional hub for developing countries in Asia.          About 70 percent of its tire production in Indonesia is expected to be exported to the Middle East, ASEAN countries and the United States.  However this plan could change depending on market conditions owing the fact that tire consumption in Indonesia was high.         "The percentage of exports will depend on the market situation in Indonesia," the Hankook Tire chief executive officer said.***5*** (T.A014/A/H-NG/B003).14-06-2011 21:45:

RI RANCHERS HAIL AUSTRALIAN CATTLE EXPORT HALT

Andi Abdussalam

Jakarta, June 11 (ANTARA) - Cattle ranchers at home hail Australia's decision to stop its cattle exports to Indonesia, urging the government to also stop its meat imports from that country in order to increase prices in the domestic market where meat has so far dropped from Rp25,000 to Rp18,000 per kg.          They said that the Australian move to stop its livestock exports to Indonesia on the pretext that abattoirs at home had committed cruelty to the animals before slaughter was only a trick.          It aims to increase Australia's meat exports and halt supply of cattle breeding stock to Indonesia which might cause the country unable to achieve its target of cattle self-sufficient in 2014.          Cattle breeders in Boyolali, a well-known "milk town" in Central Java and one of the cow producing centers supplying almost all regions in Central Java and Jakarta, hailed the suspension of cattle imports from Australia.          They think the measure would automatically cause a rise in the price of local cows. Local cow breeders in Boyolali would get an advantage following the suspension of imports of cows from Australia, Timur, a breeder from Selo, Boyolali, said on Friday. He said if cow imports from Australia were not stopped they could hurt the price of local cows and the farmers.          Therefore, the Indonesian Cattle Ranchers Association (HPI) also urged the government to reject Australia's meat exports. "The government should well reject meat exports from Australia," HPI Executive Board Chairman Rudy Prayitno said Thursday.          He said that Australia had officially notified Indonesia that it would stop its exports of slaughter cattle and cow breeding stocks to Indonesia after it reportedly learned that the Indonesian abattoirs did not meet the slaughter standards.          "Australia's reason for halting its livestock exports to Indonesia because Indonesian abattoirs have failed to meet national slaughter standards is only a fabrication," Rudy said.          He said that the rumors about Indonesia's failure to meet the national standards in the slaughter house were not true and were only fabricated by non-governmental organizations in Australia.          "Australian NGOs deliberately fabricated the issues by saying the slaughter of the animals in Indonesia did not meet the standards so that exports to Indonesia would be stopped and Indonesia's cow production and population would be reduced," he said.          Rudy said that if Indonesia does not import cows from Australia, its cow production and population would drop so that it would not be able to achieve its goals of self-sufficiency on cow production in 2014.          This is also a trick to increase Australia's exports of meat to the country. Therefore, Rudy called on the government to take firm attitude to reject Australian meat exports if it really stopped its exports of cow offspring to be bred in Indonesia.          "Just reject it, so that we would not have any relations regarding cows with Australia. That would disadvantage us," he said.          Former vice president Jusuf Kalla said the stoppage of Australia's exports of cattle breeding stocks should not be worried about. It would not reduce Indonesia's cattle production.  According to Kalla, the import restrictions can actually increase the production of cow in Indonesia, and encourage cattle ranchers to increase production and that the self-sufficiency in beef target would be achieved.          "There will be no problem, we should be optimistic. The availability of our cows is enough, we can be self-sufficient in beef," Kalla said.          Kalla is optimistic that Indonesia is able to meet the needs for cattle of the community, considering that Indonesia once exported cattle. "We must be optimistic. In the past we once exported cattle,"  Kalla said.          As regards, Kalla also hailed Australi's decision to stop its laughter cattle and cow breeding stock exports to Indonesia. "I think this is a good opportunity for us to produce more cows," he said.          Kalla said restrictions on Australian cow imports will not affect the availability of cattle in Indonesia. The problem is that the availability of cattle for the community in Indonesia is enough.          In the meantime, Australia will maintain its exports of meat to Indonesia. Though it has threatened to stop its livestock exports, yet it will maintain its frozen meat shipment to the country.          Agriculture Minister Suswono said  that the Australian government had notified his office that it would stop for six months only the exports of its slaughter cattle and  young cows.       He said that Australia had decided to stop the export of slaughter cattle due to pressures from non-governmental organizations which found indications that cattle in Indonesian abattoirs were slaughtered not based on the animal welfare standards.          The minister said that the stoppage of the exports should have been utilized by local cow breeders to increase production and reduce dependence on imports.          The importation of livestock in Indonesia has caused the price in the local market to drop, where meat is only priced at between Rp18,000 and Rp22,000 per kg.          Head of Boyolali's animal husbandry service, Dwi Priyatmoko,  expressed his appreciation to the suspension, saying it would certainly raise the price of local cattle that has plummeted so far.          The price of live cattle in Boyolali, which supplies up to 40 tons of meat and averagely 100 live cattle a day to other regions, has dropped causing transactions to decline making many breeders to wait for the price to rise.          The price of live cattle is only around Rp18,000 per kilogram down from Rp25,000 earlier. "Following the suspension the price is now creeping up to Rp19,000 per kilogram and it is expected to continue to rise in the days to come," he said. ***5*** (T.A014/A/HAJM/15:00/f001) 11-06-2011 14:57