Rabu, 29 Februari 2012

PEOPLE BEGIN DISCOURSE ON KALLA FOR PRESIDENT

By Andi Abdussalam

          Jakarta, Feb 29 (ANTARA) - The Indonesian public has begun to engage in a discourse on the possibility of former vice president Jusuf Kalla (JK) to be named a presidential candidate although the 2014 presidential race is still  more than two-and-a-half years away.

        Jusuf Kalla, who is also a former Golkar Party chairman said early this month in Pekanbaru, Riau Province,  that he was ready to run for president in 2014 if he received support from the public. "If there is full support from the people, then I am ready. But for the time being, I will  not comment much about it yet. The time has not yet come," he said after inaugurating  an Indonesian Red Cross (PMI)office for Riau province.

         Chairman of the Advisory Council of the Golkar Party Akbar Tandjung said  the party had not ruled out the possibility of nominating a figure other than  current Golkar chairman Aburizal Bakrie for the presidency in 2014.

         "Nominating JK is a possibility , particularly if survey results show that there are other Golkar figures who have higher electability than Aburizal Bakrie,"  Akbar said here on Tuesday night.

          However, Akbar said, Golkar had not yet  decided to look for an alternative figure to be named a presidential hopeful other than its present general chairman. The  mechanism to nominate someone for the presidency  had already been adopted at Golkar's National Leadership Meeting some time ago.

         "Golkar's Research and Development Center has conducted a research (on alternative names to be nominated) but we will make public the names only if Golkar has decided to seek an alternative candidate," said Akbar.

         He said that people can just mention several names of Golkar figures, yet Golkar would mention an alternative name only if it was  officially decided to name an alternative one.

         Akbar said alternative names would likely be sought if the electability of Aburizal Bakkri was low as  a presidential candidate.

         "The momentum  will be when the Golkar party  announces its presidential candidate at its National Leadership meeting in October 2012. But before it makes the announcement, Golkar should first be convinced that the name it would announce has high electability,"  Akbar said.

         In the meantime, Golkar Deputy Chairman Fadel Muhammad said his side had not yet thought of naming Kalla as Golkar's presidential hopeful in the next presidential election.

         "The electability of Aburizal is still high. The electability of Ical (Aburizal) and Kalla differs only slightly. We can improve and raise Ical's electability," Fadel said.

         After all, Ical's electability has continued to increase of late, he said referring to the results of a survey  recently.

         Based on the results of the Indonesian Survey Institute (LSI) last week,  the electability of Jusuf Kalla was recorded at 7.0 percent, below that of Megawati Soekarnoputri which was recorded at 15.2 percent and Prabowo Subianto (10.6 percent).

         Aburizal Bakrie's electability was 5.6 percent or in  fourth place, followed by Sri Sultan Hamengkubuwono (4.9 percent) and Wiranto (3.9 percent).

         A survey conducted  by the Center for Strategic and International Studies (CSIS) indicated that Ical was in  fourth position after Megawati, Prabowo and Jusuf Kalla with an electability of 5.2 percent.

         According to Akbar Tanjung, the  electability factor would be taken into account in naming a presidential candidate. Golkar would  pay attention to the electability development in the coming few months.

         In the meantime, support from other parties, namely from the Regional Executive Branches (DPW) of the United Development Party (PPP) began to increase.

         "Our support for Jusuf Kalla from DPWs has begun to crystallize," Rachmat Yasin, chairman of PPP's DPW for West Java, said. He said that the 30 DPWs included West Java, West Nusa Tenggara, West Sumatra, Riau Islands, Banten, North Sulawesi, West Kalimantan, Riau, Maluku, Bengkulu, Central Kalimantan, Jayapura, West Sulawesi, Gorontalo, Aceh, North Sumatra and South Sulawesi.

          Yet, according to Rachmat, the support is still in the form of aspirations because any decision on the presidential candidate was in the hand of the Central Executive Board (DPP) of PPP. "It will depend on the DPP which will decide it," he said.

         PPP General Chairman Suryadharma Ali said his party had not yet decided as to who it would name a candidate in the coming presidential race. The strong support for JK during the PPP National Working Meeting in Kediri still constituted an aspiration, he added.

         "The aspirations raised by the DPWs are an input for the central executive board but the map for the presidential candidate is not yet seen now," Suryadharma Ali said.

           He said that the next presidential candidate should be able to increase the number of PPP's cadres and its seats in the House.

         According to Rachmat, the DPWs of PPP supported Kalla because he was a great,  strong and clean figure, and was expected to increase the number of  PPP's vote turnouts in the 2014 elections.

        Kalla himself is still reluctant to comment about the support given to him by the PPP's regional executive branches. When asked about the political party he would join if he receives full support from the public, Kalla declined to comment.

         "Again, I would not comment much about it. It is not yet time for it," he said.

          Jusuf Kalla, born in Bone, South Sulawesi on May 15, 1942, was the running mate of current president Susilo Bambang Yudhoyono in the presidential election in 2004, which they won.***1***

(T.A014/A/HAJM/22:30/H-YH) 29-02-2012 22:52:2

Sabtu, 25 Februari 2012

FUEL OIL PRICE PLAN GETS MIXED REACTIONS

 By Andi Abdussalam

          Jakarta, Feb 25 (ANTARA) - The government has hinted it will raise fuel oil prices next April, yet the plan still gets missed reactions and sparks are flying, both pro and con, among the public.

         President Susilo Bambang Yudhoyono's administration is required,
based on the law, to reduce subsidized fuel oil consumption,
particularly premium gasoline, beginning April 1 to alleviate the burden on the state budget.

         Yet, the gasoline consumption reduction scheme has sparked public debates which led the government to formulate a number of options, including the price increase option for subsidized premium gasoline which is now sold at Rp4,500 per liter.

     President Susilo Bambang Yudhoyono said an option to raise the  price of subsidized  fuel oil as a response to the increase in global crude prices had been discussed at a cabinet meeting.

         "I have taken a decision and provided directives that need to be followed up. Seeing the latest developments (on world crude prices), we have willingly or unwillingly raised the price of
fuel oil to a proper level. We should also proceed to the fuel-to-gas conversion program in the short and long run," the president said.

         He added that poor people who would likely be affected by the price rise and inflation would receive assistance, a kind of direct cash assistance once provided in the past or another modified form of assistance.

         Therefore, the government is now calculating a proper price increase for subsidized premium gasoline.

         Energy and Mineral Resources Minister Jero Wacik said that the government, which has planned to draw up a policy this year to limit petrol use, is considering a price within reach of the public.

         "The option of reducing subsidies by increasing prices will take into account people's purchasing power," the minister said.

    However, he added, the fuel-to-gas conversion option would remain to be applied for the next several years.

          According to Anggito Abimanyu, who is  a lecturer at Yogyakarta-based Gajah Mada University, the correct price increase per liter of gasoline is Rp1,000. He warned that the price should be raised soon, or in May 2012 at the latest. Moreover, by increasing prices the government will have no need to provide assistance to the poor if it raises the price  by Rp1,000 per liter.

          Anggito, who is also former head of fiscal affairs at the finance ministry, said the government should raise the price of fuel oil soon since, otherwise, it could create even worse conditions, as happened in 2008.

          "The government should raise the price of fuel oil immediately because there is a strong external factor that necessitates it to do so," Anggito Abimanyu said.

         He noted that if the government did not increase the price of fuel oil, the public would subsequently feel a greater impact because the price level would be higher if raised later.

         Therefore, he suggested that the price of fuel be raised by Rp1,000 per liter in May, at the latest.

         "The Rp1,000 per liter is the proper price. If the petrol is raised more than that, it can trigger inflation," he said, adding that Indonesia often experienced a deflation in May, so it would be correct to raise the price in May.

         "If the government is late and raises it in June or July, it has the potential to trigger inflation, since during this period the inflation rate is usually high because it is the beginning of the academic year and is a holiday period for students," he said.

         He added that if gasoline is raised by Rp1,000 per liter, inflation could be maintained at about 0.4-0.6 percent. But if it is raised in June, it will push up inflation to about one percent.

         Besides, if it raises the price soon, the government will also be able to maintain economic growth at 6.3 percent, as long as it is able to keep the pace of its infrastructure development.

         Therefore, the Indonesian Businessmen Association (Apindo) supported the government plan to raise fuel oil prices, especially if it diverted fuel subsidy funds to infrastructure development.

         "Infrastructure, electricity and gas are vital things. We need good roads to ports," Apindo chairman Sofjan Wanandi said.

         He noted that the diversion of funds to infrastructure development and logistics facilities would, in the long run, reduce production costs.

         However, a public policy watchdog did not agree with the government plan to raise fuel oil prices, saying it would create public unrest.

         "The plan to limit the use of subsidized fuels or raise their
prices will not be effective because the actual problem does not lie in the plan," spokesman of the Executive Board of the Public Policy Studies Institute Salma Ruslan said in Makassar, South Sulawesi, this week.

          Therefore,  the government should review its plan to raise the
price of subsidized fuel oils and find solutions to oil subsidy-related problems to avoid public unrest, Slama urged.

         If the plan is implemented, nobody would supervise its implementation in the field. On the other hand, low-income citizens would suffer due to actions in certain quarters, he said.

         High-income people would still have access to subsidized fuels, which were actually only sold to low-and middle-income people.

    "Who can tightly supervise the sale of subsidized fuels and ensure that subsidized fuels will only go to those entitled to them?" he asked.

         The same opposition was also aired by a legislator from the opposition party. Arif Budimanta of the Indonesian Democratic Party of Struggle (PDI-P) said the government should rethink its fuel subsidy policy and refrain from increasing prices.

         Any momentum in global crude prices cannot automatically justify the government's decision to raise the cost of subsidized fuel, he said.  "Actually, it is the people who enjoy the subsidy by using their money." ***2***

(T.A014/A/INE/a014)  25-02-2012

Selasa, 14 Februari 2012

FISHERMEN NEED MORE HELP

by Andi Abdussalam

          Jakarta, Feb 15 (ANTARA) - The government needs to provide more attention to over 1.4 million underdeveloped traditional fishermen living in 10,000 villages along the country's 95,181 kilometer coastal line.

         In order to improve the fishermen's standard of living, the government should provide them with capital, fishing equipment, fishing vessels, a fishing infrastructure and other forms of assistance that would help them advance their fishing businesses.

         Fishermen still need assistance in order to compete with large owners who use trawlers in catching fish, not only in waters near the coastal areas but also in the high seas. Moreover, Indonesian traditional fishermen often face extreme weather, such as conditions which Indonesia recently witnessed.

         "So far, traditional fishermen are only able to fish within one mile from the coast line with an average fish catch of 10 kg. It is hard for them to earn even Rp50,000 per day.  Due to their operational costs, Rp50,000 is not enough to also provide a living for their families. In addition, they have to stay home when the weather is bad," legislator Ma'mur Hasanuddin of the House of Representatives (DPR)'s Commission IV fisheries said on Monday.

         Ma'mur added that the government has paid less attention to small fishermen. Many programs designed for fishermen and provided through regional fishery services or regional governments have not reached traditional fishermen.

         Traditional fishermen have fought for themselves to find the capital they need to work in fishing,  but when they make some progress and seek to also process their fish, they are hampered by high interest rates for fishery loans, which are set at a range of 12 to 16 percent, Ma'mur said.

         The same opinion was also aired by Vice President Boediono when addressing a national coordination meeting of the ministry of maritime and fishery affairs (KKP) in Jakarta on Tuesday.

         "The KKP should give high priority to the formulation of programs that touch upon the improvement of fishermen's communities," the vice president said.

         Boediono noted that of the 70,000 disadvantaged villages in Indonesia, about 10,000 are fishermen's villages. The vice president, during his visit to several fishermen's villages, learned that the welfare and settlement standards of fishermen remain very low.

         The standard of living found in fishermen's villages remain far behind normal agriculture-based villages.

         In a dialog with fishermen, the vice president also learned that fishermen's earnings were very low. "I was surprised to learn that a family with six kids earned only Rp30,000 per day," Boediono said.

         Therefore, the vice president urged the KKP ministry to focus special attention on the development of fishermen in the country.

         According to legislator Ma'mur, the most immediate attention needed by fishermen is for the KKP to provide assistance to overcome constraints created by bad weather that has so far affected 1.4 million fishermen in 33 provinces. When the weather is poor fishermen are forced to stay home for as much as one month.

         He said that the KKP could actually provide them with many ways to cooperate with different parties such as regional governments, relevant ministries and private companies which have corporate service responsibility (CSR) funds available.

         With the KKP initiative, the impact of bad weather could be overcome so traditional fishermen could maintain their lives and activities, the legislator said.

         Besides providing assistance to overcome bad weather, the maritime and fishery ministry should also be watchful of large owners who use trawlers. Using trawlers in catching fish is a disadvantage for traditional fishermen.

         "Traditional fishermen find it hard to compete with big vessels and trawlers," Ma'mur said.

         However, according to Director General For Fish Catching Affairs
Deddy Sutisna, the size of almost all fishing vessels operating
in the country's water is below 30 gross tonnage (GT).

         "Of about 500.000 fishing vessels, almost 98 percent are below 30 GT," Deddy said. Thus, only about two percent of the fishing vessel fleet could operate in waters 12 miles away or in the exclusive economic zones (EEZ).

         Therefore the government is providing assistance to about 1,000 fishing vessels for fishermen. Yet, this is also criticized by some who say that the program has missed the target.

         Earlier, the House Commission IV urged the government to evaluate the program for the procurement of 1,000 fishing vessels because the program has been viewed as problematic.

         "Commission IV urges the government to evaluate the 1,000 fishing vessel program," Commission IV Chairman Romahurmuzy told a working meeting with the maritime and fishery minister recently.

         The commission also asked the government to increase the number of fishing boats below 30 GT for fishermen.

         Maritime and Fishery Minister Sharif Cicip Sutardjo promised to carefully monitor the fishing vessel assistance program. "We will tightly supervise the program," Minister Sharif Cicip Sutardjo said in Jakarta on Tuesday.

         The minister said that the three variables to be considered when purchasing ships are sail worthiness, the boat must be able to stand up against bad weather and sea conditions, that it contains suitable fishing tools, and that it is equipped with facilities to handle the fish catch.***2***

(T.A014/A/INE /o001)
(T.A014/A/A014/O001) 15-02-2012 14:26:5

Senin, 13 Februari 2012

GOVT KEEPS OPEN OPTION FOR HIKING FUEL PRICES

 by Andi Abdussalam

          Jakarta, Feb 14 (ANTARA) - Although it has plans to begin limiting  subsidized fuel oil consumption next April, the government will continue to maintain the option of raising fuel oil prices, particularly subsidized premium gasoline prices, rather thanputting in place the consumption limitation scheme.

         The government is considering these options following the request of many experts and legislators who believe that hiking prices would be more advantageous than limiting the volume of subsidized fuel consumption.

         For this purpose, the government is creating three scenarios to prepare for a hike to prices of subsidized premium gasoline, as part of efforts to curb fuel subsidies.

         Actually,  President Susilo Bambang Yudhoyono has signed Presidential Regulation No 15 of 2012 on retail and consumer prices of certain types of subsidized fuel oils. "I have signed
the Presidential Regulation," President Yudhoyono said on Monday.

         Based on Regulation No. 15 of 2012, the government set the retail
sales price of certain fuel oils. The price of kerosene has been set at Rp2,500,  premium gasoline Rp4,500, and diesel oil Rp4,500, including the 5 percent tax.

         Under Presidential Regulation No 15 of 2012 it was also said that the use of certain fuel oils would be limited in stages.

         However, according to Coordinating Minister of Economy Hatta Radjsa, the government is still open to the option of raising prices of subsidized premium gasoline, as opposed to limiting itsconsumption.

         Further, President Yudhoyono has said the government is seriously thinking of price adjustments, particularly a price increase is being seen as the best option.

         "When the time comes, I will be responsible for whether or not there will be an increase. Now the important thing is to accelerate the conversion of fuel oils into gas fuel," the President said.

         The government is planning to restrict the use of subsidized gasoline to public transport and motorcycles as of April 1 in aneffort to cut oil subsidies, which have been a burden on the state budget.

         Also, private cars are expected to switch to using high octane pertamax or gas, as called for in the government's fuel-to-gas conversion program.

         Based on Law No. 22 / 2011 on the 2012 state budget, the government is required to limit subsidized premium gasoline consumption in Java and Bali as of April 2012.

         The program will start in Jakarta and its buffer towns of Bogor,
Depok, Tangerang and Bekasi (Jabotabek) as of April 1, 2012. By June it will cover Surabaya in East Java in June and the whole Java and Bali at the end of 2012.

         Also, premium gasoline consumption cuts in Sumatra will begin in
April 2013  and diesel consumption limitation in June 2013.

         The government decided to limit subsidized fuel consumption because purchases of subsidized fuels in 2011 reached 41.7 million kiloliters, or about 103.3 percent of the 2012 revised budget quota.

         However, the House of Representatives (DPR) Commission VII earlier asked the government to study the possibility of fuel oil price hikes as one of the options to limit the use of subsidized fuels.

         Teuku Riefky Harsya chairman of Commission VII said his commission was of the view that the government needed to reassess its plan after hearing reports from the energy minister and from other stakeholders such as BPH Migas (oil and gas regulator),
state-owned  oil firm PT Pertamina, Hiswana Migas, Indonesian Chamber of Commerce and Industry (Kadin), Apindo, Gaikindo, representatives of small businesses (UKM) and energy experts.

         "We heard from stakeholders saying it would be too expensive and unjust for private four-wheel vehicles to switch from premium gasoline to pertamax," he said, since pertamax's price per liter is currently about 9,500, while subsidized premium is only Rp4,500 per liter.

         However, the government should proceed with its plan to limit consumption and continue with its schedule for April 1, 2012 based on Law 22 / 2011 on the 2012 state budget, according to Teuku Riefky.

         "We are of the view that raising the fuel oil price is against the law," he said.

         Therefore, according to oil expert Kurtubi, who is also director of the Center for Petroleum and Energy Economics Studies (CPEES), the government and the parliament can revise Law No. 22 / 2011 regarding the state budget through the acceleration of the 2012 Budget Amendment discussion, which he said is a legal umbrella to
raise fuel prices.

         Moreover, raising prices is more advantageous than a policy to limit their consumption, an economic observer said.

         "Based on economic calculations, raising fuel oil prices is a more rational policy. There will be no need to prepare infrastructure and monitoring instruments," Komaidi Notonegoro of  the ReforMiner Institute said during a discussion at the Economic Journalists Communication Forum.

         He additionally said if prices of subsidized premium gasoline and
diesel oil were raised by Rp1,000 per liter, there would be a savings on a national scale of Rp38.7 trillion, and if they were increased
by Rp1,500 per litter, the country would see a savings of  Rp57.4 trillion.

         But such a fuel oil price hike would also cause  an increase of 1.07 percent in inflation,  if the price increase was Rp1,000 per liter, and an increase of 1.58 percent, if the price increase was Rp1,500 per litter.

         He further said that limiting the purchase of subsidized premium in Java and Bali would only save Rp26.71 trillion and Rp41.91 trillion if diesel consumption was also cut.

         In this case, the government is now considering an option to raise prices. For these discussions, it has appointed a consortium consisting of the Bandung Institute of Technology (ITB), University of Indonesia (UI) and Padjadjaran University (Unpad), along with the Oil and Gas Institute of the Energy and Mineral Resources Ministry, to conduct the study according to the DPR's request.

         Deputy Minister of Energy and Mineral Resources  Widjajono Partowidagdo said on Monday that the government is also discussing the possibility of raising the price of subsidized fuel oil for public transport vehicles, including small-scale business vehicles, by providing cash back as compensation.

         "If the increase is Rp1,000 per liter, the cash back will be as
much as that amount," he said.***2***


(T.A014/INA/F001) 14-02-2012 14:49

IMPORTER OF TOXIC WASTE LIKELY TO BE NAMED SUSPECT

  Andi Abdussalam

          Jakarta, Feb 13 (ANTARA) - The Indonesian authorities are now investigating the entry into the country of 113 containers of hazardous wastes imported from Britain and the Netherlands, and will likely name those behind the importation of the toxic goods.

         No specific names have been mentioned with regard to the party that would likely be named A suspect but Finance Minister Agus Marto Wardoyo said the importers must account for the importation of the goods, yet presumption of innocence must also be observed.

         Before naming a suspect, Indonesian officials carefully examined the contents of the containers to make sure they were hazardous and toxic wastes (B3). At least three state agencies are now involved in the investigation, namely the finance ministry, the office of the environment minister and the customs and excise office.

         The office of the minister for environment has, since Feb. 10, opened 96 containers of hazardous wastes and taken 56 samples to be tested to assure they contained hazardous and toxic materials.

         "We are going to open all of the containers and take the samples to be tested in an effort to obtain evidence," Sudaryono, deputy to the environment minister, said on Monday.

         The samples taken from the containers were in the form of waste, soil, oil, lubricants, plastics and VCD compact discs. They are now undergoing laboratory tests to determine what toxic substances they contain.

         Sudaryono said besides finding evidence, his ministry will also name suspects. After collecting enough proof, the case will then be turned over to prosecutors and the containers returned to the countries of origin.

         Recently, the customs office seized 113 containers of scrap metal, each weighing 28,200 kilograms, allegedly contaminated with hazardous and toxic waste, known as B3, at Tanjung Priok Port in North Jakarta. They were reportedly imported by PT HHS.

         Those containers, of which 89 from England and 24 from the Netherlands, came in five shipments between late December and January from the Port of Felixstowe, England, and the Port of Rotterdam, the Netherlands.

         The discovery of the B3 materials began when the customs and excise officers became suspicious about the goods. The documents said the containers contained scrap metal.

         Environment Minister Balthazar Kambuaya said scrap metal was not banned from entering Indonesia. "However, the material must be safe and clean. These [materials] look like garbage. Some of them are wet, some are dry and some even drip smelly liquids. These clearly violate the law,"  he said.

         Because they were suspicious, customs officers cooperated with officials from the office of the minister of environment to look into the matter, and it was then discovered that the containers held B3 materials.

         Indonesian law, namely Law No. 32 / 2009 on The Environment regulates the ban on importing hazardous and toxic substance while Law No. 18 / 2009 also regulates the ban on waste disposal.

        According to Finance Minister Agus Marto Wardoyo, Indonesia is basically open to the importation of any goods by foreign firms as long as it is done in accordance with regulations in force in the country.

         "We welcome and invite investment into Indonesia but they must abide by the law, including the law on the environment,"Agus  said.

        The waste allowed for importation applies to material waste which has obtained notification from the ministry of environment. The 113 containers had the proper permits, but did not have the correct notification documents from the ministry of the environment.

         Agus, Environment Minister Balthasar Kambuaya and customs and excise officials have taken a look at the 113 containers filled with sleek scrap mixed with a chemical substance.

         The minister said that Indonesia allowed the importation of scrap steel but the 113 containers were suspected to have been imported not based on regulations because they were still mixed with chemical substance, waste and soil.

         "It would be seen whether they would be re-exported or be taken to court," he said.

          Wardoyo said that many countries actually knew that certain goods were B3 and were not allowed to enter Indonesia, yet their importers in Indonesia imported them.  Indonesia has signed the Basel Convention which regulates the movement of wastes among nations.  
     In the meantime, environmental activists urged the government to take harsh action against any companies or individuals who bring waste products to Indonesian soil.

         The Indonesian Forum for the Environment's (Walhi) mining and energy campaign manager Pius Ginting was quoted by the Jakarta Post last week as saying that the government should take legal action against the import of waste, regardless of whether it was dangerous or not, because it would damage the environment.

         "We must reject imported waste for any reason as it might double the country's environmental damage. It is unfair to allow waste, which mostly contains minerals, to be imported to Indonesia after the country suffers environmental damage in producing [minerals] for the sake of exports,"  he said.***3***

(T.A014/A/H-NG/24:20/a014) 14-02-2012 00:26:

Jumat, 10 Februari 2012

GOVT LIKELY TO IMPORT SALT THIS YEAR

By Andi Abdussalam

          Jakarta, Feb 10 (ANTARA) - Despite its decision  last year to stop importing consumer salt, the government is likely to import the commodity this year as stocks at home are now running low.

         In order to meet the country's need for salt in the March-July 2012 period, the government is expected to set a quota of  600,000 tons - 700,000 tons for salt imports this year.

         Director General of External Trade at the Trade Ministry Deddy Saleh said the government had actually yet to decide whether or not to import the commodity.

         "Based on our estimate, we have to import consumer salt because  stocks will finish at the end of February 2012. Our monthly need for salt reaches 120,000 tons so that we have to import some 600,000 - 700,000 tons," the director general said.

         The maritime and fisheries ministry (KKP) and the government have different data on domestic salt  production last year (2011).  KKP said production reached 1.5 million tons while according to the government's data it was only 1.1 million tons.

         The arrival of the rainy season in September 2011 disturbed the country's salt production and prevented the government from achieving its target production figure of 1.4 million tons.

         Last year, then maritime and fishery minister Fadel Muhammad said  Indonesia's total need for salt reached 3.4 million tons in 2011. The country's total need for salt was formulated by related ministries. The  four related ministries  agreed to set the national need for salt at 3.4 million tons, consisting of 1.6 million tons for consumption and 1.8 tons for industry.

         Therefore, last year, the Indonesian government  decided to stop importing consumer salt in order to absorb local farmers' salt production which  was expected to reach 1.4 million tons a year.

         "Thank God, we have decided to stop importing consumer salt," then maritime and fisheries affairs minister Fadel Muhammad said after attending a coordination meeting on food affairs at the office of the coordinating minister for economic affairs.

         The government made the decision as part of its efforts to solve problems among related ministries regarding the importation of consumer salt. However, salt for industry will remain to be imported.

         Now that the consumer salt stocks are not enough, the government is pondering to import the commodity. "The government will  import the commodity, after it is
discussed by different parties at the coordinating minister for economic affairs' office,"  Deddy Saleh said on Wednesday.

         He noted that salt stocks at present were predicted to be enough for consumption until the end of this month only, so Indonesia is likely to import salt to meet its need through July.

         The director general said that if Indonesia needed a stock of 120,000 tons of salt per month, then it should import 600,000 tons of consumer salt for the five-month period.

         The estimate is based on survey results of independent surveyor Sucofindo on available stocks at the farmers' level, private businesses and state-owned salt firm PT Garam.

         He said that  present salt stocks amounted to 200,000 tons, though about 60,000 tons have been used by the industrial sector. "The salt harvest season in the country will likely begin in August. We are worried that existing stocks will deplete  but we are going to discuss it," the said.

         The maritime and fishery ministry  launched a smallholder's salt business empowerment program  (Pugar) this year with a budget amounting to Rp107 billion  and with a production target of 1.3 million tons.

         The Central Bureau of Statistics (BPS) reported  Indonesia¿s salt imports in the January ¿ December 2011 period totalled  2.84 million tons worth US$146.49 million. The commodity was imported from Australia, India, Singapore, Germany and New Zealand.

         Regarding the need to import salt regardless of the fact that the government decided  last year to stop importing the commodity, Trade Minister Gita Wirjawan said that the grand harvest last year was only enough to meet domestic need until February.

         Therefore, the minister said, the government had decided again to import salt to cover the shortage. "From where can we import salt to meet consumers' need from March  until the next grand harvest in August 2012?," the minister asked.

         Yet, the marine and fisheries ministry had stuck to  its stance not to recommend the importation of salt until the grand harvest in August.

         "We hope we are not going to import consumer salt," Maritime and Fishery Minister Sharif Cicip Sutardjo said on Tuesday. He said that the need for salt this year could still  be met with domestic production. "We have announced that we are going to be self-sufficient in salt this year," he added.

         According to the maritime and fishery ministry, the need for salt in 2011 was 2.9 million tons, consisting of 1.1 million tons of consumer salt and 1.8 million tons for industry.

         In the meantime, the trade ministry said total need for salt was 3.15 million tons, consisting of 1.38 million tons for consumption and 1.77 million tons for industry. Domestic  salt production last year was 1.4 million tons, all of which was allocated for consumption. ***2***

(T.A014/A/HAJM/00:45/a014) 11-02-2012 00:45:0

Kamis, 09 Februari 2012

SANCTION FOR AIRLINES WITH DRUG-ADDICTED PILOTS

 by Andi Abdussalam

          Jakarta, Feb 9 (ANTARA) - The fate of passengers on an airplane is decided by its pilot, who is responsible for the safety of a flight from the time an aircraft takes off until it lands.

         A pilot who flies an airplane under the influence of drugs cannot be tolerated, as it poses a threat to the life of all passengers. It seems, however, that airlines in the country are not free from pilots with drug addictions.

         The recent arrest of a pilot in Surabaya, East Java, before he was to fly a plane, is a case in point. As an act in being responsible, both the pilot and the airlines should receive
sanctions.

         In this regard, the Ministry of Transportation is formulating sanctions it will impose upon the national airline company whose pilot was recently arrested for using the drug methamphetamine.

         The sanctions will be taken against the airlines. However, the ministry will not revoke its operating license.

         "We are drawing up sanctions. Yet we have to take into account the social impact it will create if the sanction is given. You can image what impact it will create if the company is closed down,"
Transportation Minister EE Mangindaan said Wednesday.

         On Saturday last week, National Narcotics Agency (BNN) officers arrested a pilot (SS) working for PT Lion Air in a hotel in Surabaya, East Java, after he had taken methamphetamine at 03.30 am. Police arrested SS and three other pilots while they were playing cards.

         After undergoing a urine test, SS was determined to have consumed
methamphetamine, while the drug tests on the remaining three pilots proved negative. SS was scheduled to go on duty at 06.00
that day.

         The arrest was made following the development of a case in Makassar in January 2012 in which a pilot from the same airline was arrested after testing positive for using narcotics.

         "It is hoped no more pilots would dare consume any kind of narcotics. This is very dangerous and has become BNN's special concern," BNN chief for East Java, Senior Commissioner Jan De
Fretes, said.

         Mangindaan said that his ministry had given the company a strong warning so it would not repeat the same mistake. He said that his office had been informed long ago that the pilots of a certain airline used drugs, but it had no proof.

         "We had been informed of this long ago, but only now do we have proof so we could cooperate with the BNN," the minister said.

         The ministry of transportation and the ministry of health are now cooperating to find an accurate method of screening pilots. The BNN, on the other hand, is expected to continue investigating and arresting those selling drugs to  pilots.

         "We hope we can eliminate it if it does exist," Mangindaan said.

         With regard to the SS case, the House of Representatives (DPR)'s
Commission V, which deals with transportation, said it would order PT
Lion Air management to appear at a hearing.

         "The House has previously summoned the transportation minister and PT Lion Air management due to a similar case with a pilot. But, why should the same case recur?" Muhammad Arwani Thomafi, one of the commission V members, asked.

         Also, the House commission, he said, would ask the Air Transportation director general of the Transportation Ministry to urge PT Lion Air to revoke the license of the pilot who used the drug.

         For the disclosure of the SS case tarnished the image of the nation¿s aviation industry in the eyes of the international world.

         Further, legal expert Dr Pedastaren Tarigan of the University of North Sumatra (USU) said a national drug test is needed to be conducted on all pilots of state-owned and privately run airlines. "The health test is needed to anticipate undesired things and to ensure the safety of passengers," he said.

         He said that the drug test should be supervised by the ministry of transportation so that the health conditions of pilots could be transparently known. Thus, airlines would be able to know pilots who are using illegal drugs and those who are not.

         Actually, certain airlines, like PT Garuda, performs screenings of their pilots.

         "To be frank, drug abuse not only smears the reputation of the pilot profession, but also tarnishes the image of the country's aviation industry," Operation Director of national flag carrier Garuda
Indonesia, Capt Ari Sapari, said.

         In order to avoid drug abuse within the national aviation industry, Ari appealed to all national airlines to provide proper education for their pilots. Ari Sapari also supported the efforts
of the regulator or the transportation ministry to settle various problems relating to drug abuse.

         "This case has caused people to be afraid of flying," he said.

         He added that PT Garuda Indonesia held periodic random checks of its pilots in an effort to prevent the emergence of problems, such as pilots using illegal drugs before flying.

         "We can assure that Garuda pilots are clean," Capt Ari Sapari said, adding that the management always held random check-ups in various cities.

         The check-ups are held for all pilots and Garuda staff members, without any exceptions in any location and at any time. Besides, all pilots must undergo individual check-ups and tests, such as health checks, psychological tests and flight simulations 14 times each year.***1***

(T.A014/a/INE/a014)


(T.SYS/A/A014/A/A014) 09-02-2012 20:38:2

Rabu, 08 Februari 2012

INDONESIA HOPES TO BOOST CPO EXPORTS TO PAKISTAN

By Andi Abdussalam

          Jakarta, Feb 8 (ANTARA) - Indonesia, the world's largest crudepalm oil (CPO) producer, hopes it will boost its annual exportsof palm oil to Pakistan to over US$550 billion in the coming years after both nations signed a preferential trade agreement (PTA) last week.

         The value of Indonesia's palm oil exports to Pakistan had once been US$550 million per annum, though it fell by nearly 75 percent tobelow US$100 after Malaysia, the world's second largest producer,
concluded a PTA with Pakistan.

         With the PTA, Malaysia's palm oil exports to Pakistan enjoyed import duty tariff reductions that have boosted exports to that country, while Indonesia's CPO faced high import duties, causing the Indonesian commodity to face difficulties in competing.

         "I hope Indonesia will regain the value of its past exports ofabout US$500 million. This means that we will be able to increase our total exports to Pakistan to US$1.5 billion - 1.6 billion.

    Indonesia's total exports to Pakistan now account for about US$1 billion," Trade and Industry Minister Gita Wirjawan wasquoted as saying by detikFinance following the signing of the PTA
on Friday last week.

         The success by the trade minister in concluding the long-awaited PTA was hailed by the House of Representatives (DPD)'s Commission VI on trade and industry affairs.

        In a hearing on Tuesday with Minister Gita Wirjawan, who is also chairman of the Capital Investment Coordinating Board (BKPM), Commission VI Chairman Erik Satrya Wardhana expressed his appreciation over the signing of the PTA.

         He said that Indonesia had proposed the PTA three years ago during the era of the previous trade minister. He noted that due to the delay in signing the PTA, Indonesia lost about US$700
million per year for three years.

         Indonesia, whose annual CPO production is estimated at 23million tons, lobbied Pakistan for the past three years. The PTA negotiations between Indonesia and Pakistan were then delayed
because there was a change of government  in Pakistan.

         Pakistan was prepared to cut its import duty on Indonesian CPO and its downstream products by 10 percent within the framework of the PTA. At the same time, Indonesia was ready to lower its import duty on
Pakistan's 'kino' oranges.

         Indonesian exporters, whose CPO exports to Pakistan could reachUS$400 million per annum, badly need the agreement. So far, theIndonesian palm oil cannot compete in Pakistan with Malaysia, which has previously been granted an import duty reduction based on a PTA scheme.

         According to head of Research and Development of the Ministry ofAgriculture, Gatot Irianto, Indonesia's CPO and other palm oil-basedproduct exports to Pakistan were subjected to a Rs9,100 import duty per ton while those of Malaysia, the world's second largestpalm oil producer, received a 10 percent cut or a discount of aboutUS$16 per ton, making the Indonesian palm oil less competitive.

         "So, if Malaysia gets a 10 percent discount, it means that it cansell its CPO at a price which is Rs91 lower than Indonesian CPO. The price difference is equal to US$16," he added.

         As a result of the different treatment, the volume of Indonesianpalm oil exports to Pakistan dropped by 75 percent.

         Yet, Indonesia and Pakistan finally agreed to conclude the PTAagreement, which included a reduction of import duties on Indonesia's palm oil exports to Pakistan.

         According to Minister Gita Wirjawan, the agreement will benefitboth countries. Indonesia's CPO will be imported by Pakistan. Inthe meantime, Pakistan's 'kino' oranges will have easy access to
Indonesia's domestic market.

         Therefore, Commission VI of the House of Representatives hailedthe agreement, saying it will raise Indonesia's palm oil exports toPakistan. Further, observers believe that the access of Pakistan oranges to the Indonesian market will not disturb the domestic market for local oranges.

         "We do not need to worry about the entry of 'kino' oranges fromPakistan because it will not take over the market share of local oranges. It will compete with other imported oranges, namely the
'mandarin' orange," Commission VI Chairman Erik Satrya Wardhana said.

         He added that with the PTA, Indonesia's palm oil would be able to compete with the same commodity from Malaysia.

         "With the signing of the  PTA, Indonesia's CPO will get the same treatment as that of Malaysia regarding import duties in Pakistan. This will again drive up Indonesia's palm oil exports to
Pakistan from the present level of about US$60 million to US$800 million per annum," Erik said.

          Of note, Indonesia's CPO production has continued to increase of late. The Indonesian Palm Oil Producers Association (Gapki) predicts Indonesia's palm oil production in 2012 will reach 25
million tons.

          Gapki executive director Fadhil Hasan said last week  that 2012 production projections represent an increase of 5.4 percent, or 1.5 million tons, from the previous year's production recorded at
23.5 million tons.

          "The national palm oil industry will grow this year in terms of production, plantation area, exports and price," he said when presenting the 2012 palm oil industry outlook.

          The total area of oil palm plantations in 2012 is expected to reach 8.2 million hectares, while exports were projected to reach 17.5 million to 18 million tons.

          In 2011, CPO production was recorded at 23.5 million tons, with some  16.6 million tons being exported. Palm oil production in 2010, meanwhile, was recorded at about 22 mill on tons, with only
15.6 million tons being exported.***2***

(T.A014/a/INE/a/a014  ) 08-02-2012 16:07:0

Jumat, 03 Februari 2012

GRAFT AGENCY EXPECTS MORE SUSPECTS IN ATHLETE VILLAGE SCANDAL

 by Andi Abdussalam

          Jakarta, Feb 4 (ANTARA) - The disclosure on Friday that Democrat Party (PD) cadre Angelina Sondakh is named a suspect is expected to serve as an entry point for investigators to uncover other suspects in an alleged corruption scheme involving construction of an athletes village.

         Angelina Sondakh, who is deputy secretary general of the ruling
Democrat Party and  a member of the PD Faction in the House of
Representatives (DPR), said her being named as a suspect by the Corruption Eradication Commission (KPK) was not the end of this episode.

         "This is not the end, it's just the beginning," said Angelina, whois also popularly called Angie, in a Blackberry text message to ANTARA. She also called on all parties to respect the principle that those accused are presumed innocent.

         Further, Angie said she hoped God would provide proof of her
innocence and reveal the problems behind the case.

         In the meantime, KPK Chairman Abraham Samad, who was recently
appointed chief of the anti-graft body and has pledged to investigate major cases such as the Bank Century and the SEA Games athletes village construction scandals, said the new suspects would open the door to uncover the involvement of other parties.

         Therefore, he said, KPK has asked for Angie and I Wayan Koster, a
politician from the Indonesian Democratic Party of Struggle (PDIP), to be banned from traveling abroad.

         It was KPK chief Abraham Samad who announced on Friday that
Angie  is one of the new suspects in the corruption investigation of the SEA Games athletes village construction project in Palembang, South Sumatra.

         Angelina is the second Democrat Party cadre implicated in the
case, after charges were filed naming M Nazaruddin, the party's former
treasurer, who is now on trial in the corruption criminal court.

         Nazaruddin was charged with having received a bribe in the form of a fee for helping PT Duta Graha Indah to win the tender for construction of the Rp191 billion SEA Games athletes village project.

         Nazaruddin was believed to have received Rp4.3 billion and
Angelina is accused of accepting Rp5 billion. Angelina Sondakh and Wayan Koster previously denied receiving fees for assisting PT Duta Graha Indah (DGI) in his being awarded the project contract, worth Rp191 billion.

         Witnesses during the trial of M Nazaruddin have often mentioned
Angie and Wayan Koster as having received Rp5 billion in cheques in two stages from the director of PT Anak Negeri, Mindo Rosalina Manulang (Rosa).

         Abraham said the KPK would delve deeper into the case, and with
Angelina now an official suspect, the opportunity had been opened to
investigate the involvement of others.

         The KPK will charge  Angelina based upon Article 5-section  2 or
11,  or Article 12 paragraph of  Law No  31 on Corruption Eradication, for having received a promise or gift as a payment.

         Further, Abraham Samad said the commission would have no qualms
about declaring anybody a suspect, regardless of the person's position, if it acquires evidence against them.

         "If we already have the evidence, anybody - whether  politician,
businessman or even party leader - can be named a suspect" in a corruption
case, Abraham said here Friday.

         He added that it often happened that in the public's view, a
person could already be seen as a suspect in a corruption case, though
under the Criminal Code one can only become a suspect if officials already have  at least two exhibits or pieces of evidence against the accused.

         In the meantime, PD Secretary General Edhie Baskoro (Ibas) expressed
concern that PD legislator Angelina Sondakh has been named as a suspect by the  KPK.

         Nonetheless, he said, the Democrat Party would support the efforts of the law enforcement agencies, the KPK in particular, to uncover the truth in the corruption case. "I am concerned about Angelina having been named a new suspect in the alleged SEA Games athletes village corruption case," he said in a press statement.

         He noted that the party would continue monitoring developments in
the KPK's investigation and adhere to its internal mechanism and statutes in responding to matters involving any of its members.

         "Another PD cadre now has to undergo a legal process, after we already have been rocked for so long by storms and waves of trials. We are being tested," Ibas added.

         Therefore, the Democrat Party's executive board is to form a legal defense team for Angelina Sondakh.

         "The Democrat Party's executive board respects the legal process which adheres to the principle of presumption of innocence. The party will form a team to provide legal assistance to Angelina Sondakh," Mohammad Jafar Hafsah, chairman of the party's people's welfare department, said.

         Regarding the naming of Angelina Sondakh as a suspect, legislator
Bambang Soesatyo of the House of Representatives (DPR) Commission III on legal affairs said he appreciated the anti-graft body's decision.

         "With its decision to name Miranda Gultom and Angelina Sondakh as
suspects, the KPK gives us new hope for the disclosure of the travel check and SEA Games village cases. What remains now is the Bank Century case, which involves a bailout of RP6.7 trillion," said Bambang Soesatyo.***1***

(A014/A/INE/A014)04-02-2012 14:39

GRAFT AGENCY URGED TO RE-INVESTIGATE CENTURY CASE

By Andi Abdussalam

          Jakarta, Feb 3 (ANTARA) - The Corruption Eradication Commission (KPK) is once again being urged  to re-investigate the Bank Century Case,  more than three years  after the then-ailing bank received a suspicious government bailout of Rp6.7 trillion in late 2008.

         "The KPK must be responsive so that the legal process in this scandal will not lead to a protracted controversy," Bambang Susatyo, a member of the House of Representatives (DPR)'s Bank Century Case Monitoring Team, said Thursday.

         He added that the KPK could no longer delay re-investigating the Bank Century case after the State Audit Agency's (BPK) findings that the bank's bailout had caused a financial loss to the state.

         In a meeting with the BPK on Wednesday, the House's Bank Century Case Monitoring Team determined that the Bank Century bailout had resulted in a financial loss to the state.

         The conclusion was a great stride forward in the efforts to resolve the Bank Century case because it provided the basis for the law enforcement agencies, the KPK in particular, to immediately reopen their investigation, he said.

         The scandal began when Bank Century faced a financial problem during the financial crisis in 2008. At that time, the government decided to bail out the bank, citing its possible system-wide effect as itsreason.

         In late 2008, Bank Century faced  liquidity and default problems. It later collapsed after its liquid assets of about Rp11.6 trillion were withdrawn through its security firm, Antaboga Delta Sekuritas, and deposited abroad by its owner, Robert Tantular.

         The ailing bank was then taken over by the Deposit Insurance Agency (LPS). The government later provided it with a bailout of Rp6.7 trillion through the issuance of  a Short-Term Funding Facility (FPJP)
and  Temporary Capital Participation (PMS).

         However, the State Audit Board (BPK), in a report, said it suspected there had been an effort to engineer additional bailout funds (PMS) for the bank.

         Still later, a House Inquiry Committee confirmed that violations had been committed during the issuance of the FPJP and PMS amounting to the Rp6.7 trillion.

         The House of Representatives (DPR), in a plenary meeting in April 2010, transferred the case to the government for its investigation while the House formed a team to monitor the progress of the investigation.

         Yet, up to now no final solution had been reached on the bank scandal. With the latest findings by the BPK, monitoring team member Bambang Susatyo urged the KPK to  again investigate it.

         "So, with the BPK having confirmed that there were indications of
the state having suffered a financial loss from the Bank Century bailout, there is no more reason for the KPK to delay re-investigating the case," Bambang said.

         Therefore, to facilitate its investigation the KPK should summon all parties involved in the process that led to the decision to rescue Bank Century with bailout funds, including then-Bank Indonesia (BI) governor Boediono (now Vice President) and then-Finance Minister Sri Mulyani who, at the time, was chairperson of the Financial System Stabilization Committee, Bambang said.

         BPK Chairman Hadi Purnomo said this week that his audit agency, in its latest investigation, uncovered two suspicious facts. "The suspicious facts were found by the BPK during its follow-up investigative auditing,"  Hadi Purnomo told a meeting with the House Monitoring Team.

         Hadi said the findings concerned the flow of funds from SS and SL to PT MNP and a foreign currency exchange transaction and foreign currency transfer from HEW and SKS to Bank Century.

         However, on the flow of funds from SS and SL to PT MNP, the BPK has not yet found any comprehensive link with the Bank Century case.

         Further, BPK Deputy Chairman  Hasan Basri said HEW and SKS exchanged foreign currencies with Bank Century and the funds from Bank Century were then transferred to several other banks, though he did not name the banks concerned.

         According to Bambang Susatyo, the suspicious findings must be investigated. "The question is whether the bailout was really intended to safeguard the national economy at that time or to salvage SS's funds, worth Rp2 trillion at Bank Century,"  he said.

         The problem was that if the bank was closed down, the Rp2 trillion funds belonging to SS would be lost, based on bank regulations. SS could only get a refund of Rp2 billion.

         In the meantime, KPK Spokesman Johan Budi said the anti-graft agency remains serious when handling the Bank Century case.  "We are serious in investigating the bank's scandal. We have a large team with 20 members to tackle the case," Johan Budi said.

         The KPK had earlier received dossiers about Bank Century from the
House's monitoring team. The dossiers, among others, contained a letter from former finance minister Sri Mulyani,  the minutes of a conversation between Sri Mulyani and Boediono before the FPJP facility was handed over, and notes about the bank scandal from experts.

         "We have officially received the dossiers and hopefully we are not going to shelve the Bank Century case," KPK Chief Abraham Samad said.***1***


(A014/a/INE/a014) 03-02-2012 21:40