NEW GOVERNOR CHALLENGED TO UNRAVEL JAKARTA TRAFFIC WOES

 By Andi Abdussalam
         Jakarta, Oct 31 (ANTARA) - Traffic congestion in the country's capital city is a chronic problem, besides annual floods, which is posing a grave challenge to new Jakarta Governor Joko Widodo (Jokowi).  "We have to build a culture of traffic discipline, improve transportation means and increase strength of police staff to support efforts to overcome traffic woes in Jakarta," Jokowi said at the Jakarta City Hall on Tuesday.
         With a population of about 12 million, Jakarta experiences massive traffic jams every day. Poor public transportation causes residents to use their private cars or motorcycles and according to the Jakarta Regional Police, there are about 3.1 million private cars and 8.2 million motorcycles in the city.   The state of public transport is inadequate and approximately 72.34 percent of the 22,000 buses operating in the city are already old and no longer fit for operations.
         Data at the Jakarta Transportation Service showed that in 2002 about 61 percent of Jakarta's commuters still used public transport but the figure dropped to 20 percent by 2010.

GOVT TO LIFT OUTSOURCING SYSTEM

By Andi Abdussalam

Jakarta, Oct 30 (ANTARA) - The government looks set to lift the outsourcing recruitment system but will still maintain it in the recruitment of workers for non-core jobs. Manpower and Transmigration Minister Muhaimin Iskandar has said that even though the outsourcing system had been lifted, companies would still be allowed to recruit outsourcing workers in five sectors, namely cleaning services, security, catering, transportation and oil and gas mining supporting services.          But the government's plan to eradicate the outsourcing system, according to the Association of Indonesian Employers (Apindo) chairman Sofyan Wanandi, ignored a previous agreement among labors, employers and the government.

RI, M'SIA CRITICIZE 'BARBER SHOP' ADS ON INDONESIAN MAIDS

Andi Abdussalam

Jakarta, Oct 30 (ANTARA) - Advertising leaflets screaming "Indonesian Maids on Sale!!!" in public places in Kuala Lumpur have sparked an outcry in Indonesia and Malaysia since Sunday.  Although reports claimed the advertisement was posted by a barber shop rather than a recruiting agency, it was criticized by the governments of Indonesia and Malaysia as being potentially damaging for bilateral relations.          According to the Indonesian embassy in Kuala Lumpur, the Malaysian Foreign Ministry also criticized the placement of the advertisement in public places by individuals or an agency, calling it an act that could disturb and disharmonize Indonesia-Malaysia ties. "The Malaysian government observes that the leaflet or flyer offering a discount on hiring an Indonesian housemaid is an illegal and regrettable act," Suryana Sastradiredja, the social, cultural and information section head of the Indonesian Embassy in Kuala Lumpur, said in a press statement on Monday.

RI PREPARING STEPS TO LESSEN IMPACT OF NATURAL DISASTERS

By Andi Abdussalam

Jakarta, Oct 29 (ANTARA) - Although the meteorology and geophysics agency has predicted that rainfall in the current October-November and December rainy season will be normal, the government must continue to prepare contingency plans to deal with potential natural disasters.  Due to its geographical location and climate, Indonesia hosts different areas which are prone to natural disasters, such as floods and landslides during the rainy season, apart from other disasters which continue to pose threats, such as volcano eruptions, earthquakes, tsunamis and landslides.          Indeed, the Coordinating Minister for People's Welfare said that geographically, Indonesia was a meeting place for tectonic plates from the Asian and Australian continents, as well as those plates from the Indian and Pacific Oceans. The Australian plate long ago moved northward and under the Eurasian plate. The zone can be traced from the northern tip of Sumatra until the Nusa Tenggara Islands, creating deep submarine trenches. Most earthquakes concentrate in this zone where plates lay atop each other.

GOVT TO PROMOTE BADUY LAND AS CULTURE TOURISM CENTER

By Andi Abdussalam

Jakarta, Oct 27 (ANTARA) - The local government is developing the Baduy Land into a culture tourism site.          Baduy is populated by about 5,000 to 6,000 isolated Baduy tribesmen, some 40 km southeast of Serang, provincial capital of Banten.          Even though it is closed to the outside world and modern life, the number of visitors, particularly researchers and university students, has increased in recent years.         Up through September 2012, for example, about 5,380 visitors, including foreigners, have come to the Baduy Land, an area which is still covered with virgin forests in a 5,100 hectare land area.          "A total of 158 foreign tourists have visited the Baduy villages and we will continue to build it and develop a cultural tourism site without disturbing the local people's customs and tradition," Syaifullah Saleh, the head of the Culture and Tourism Service of the Regional Government of Lebak District, said on Friday.          Actually, the land of the Baduy tribe in Lebak District is a separate world which blends fertile earth, virgin forests, clear water, clean air and an unpolluted environment.         The Baduy Land is free from pollution and separated from the bustle of big cities such as Bandung and Jakarta, even though Banten, where Lebak District is located, shares borders with these modern cities.        Syaifullah said that at present, the local government of Lebak District seeks to develop the Baduy Land as a reliable cultural tourism destination. Most of the recent visitors were secondary and university students who came to study nature conservation and cultural systems of the local people.          He said that the uniqueness of the local people's lives is in their maintaining tradition and customs, while rejecting modern life. They live in a forest area covering about 5,100 hectares and have built no roads, have no electricity, do not have radio or television and reject the use of motorized vehicles.          Even, in the Baduy Dalam (the interior of Baduy Land) residents, usually clad in white clothing, when traveling to other regions have to go on foot and are not allowed to use public transportation.          Therefore, Syaifullah said, many anthropologists come to the Baduy Land to conduct research, since members of the Baduy tribes maintain a very modest life, though they never experience food shortages.          The Baduy build wooden houses, walled with plaited bamboos. Their forests produce all the materials they need to construct their homes. There is no need to buy cement, tiles, bricks and other modern housing materials.          They live a simple life based upon a primitive agricultural system and firmly maintain the values of their traditions.          "We are of the view that these values have high selling points for promoting them as tourism objects," Syaifullah said.           He added that most of this year's 158 foreign tourists came from European countries, such as the Netherlands, Britain and Switzerland.  "We need to promote this so that the local people¿s economy could be boosted," he added.          Local tourists visiting Baduy Land for cultural tours of the region came from Jakarta, Bogor, Tangerang, Bandung, Yogyakarta and other areas, he said.          Sapin, the secretary of Kanekes village, Leuwidamar subdistrict, said that visitors to the Baduy Land mostly were university students, researchers or those coming from government and private institutions, while the number of family members who visited the region was still small.           He said that the land trip from Serang, Banten's provincial capital, to Ciboleger, known as the gate to the 'holy land' of Baduy, could be covered in one hour. The distance is about 22 km from Serang, Banten's provincial capital.          "At present, the condition of roads from Serang to Ciboleger is relatively good," he said.            "We are convinced that cultural and customs visits to the Baduy Land will increase in the future," Sapin added.          In the meantime, Social Affairs Minister Salim Segaf Al Jufri, who visited the isolated tribe last week, said lessons must be learned from the isolated Baduy tribes, particularly in their success in preserving the environment.          The minister said that the Baduy people abide by their tribal wisdom, which serves as the basis for conserving nature.  They also have a commitment to maintaining their customs, which are integrated into nature, so that natural disasters could be prevented.          "We have to learn a lesson from the Baduy tribes living in the valleys of Mount Kendeng. We have never heard that the Baduy people are suffering from famine. They really protect the environment as a source of their life," the minister said when he came to the region to provide social assistance.          Basically, Baduys are closed to the outside world so they might uphold their cultural and spiritual values.          They believe that Kanekes, the holy land of Baduy, is the center of Baduy Land and that it is holy, and foreign influences must be avoided to maintain this holiness. Tribal lore states that the creation of the earth started in Kanekes. The genesis occurred in Sasaka Domas of Kanekes, the most sacred place in Baduy.          From here, the seven Batara descended to earth to become the ancestors of human beings. The Baduy are their direct descendants.          The sacred land of Kanekes is divided into three areas, comprising the Tangtu, the highest level, Penamping, the middle level, and the Dangka, which is the least holy.          Those who live in Tangtu are called the Baduy Dalam and follow the most stringent traditions and taboos.          In Penamping are found the Baduy Luar, who are also governed by their customs, which are not as strict as the Baduy Dalam living in Tangtu. In Dangka live the descendants of the Baduy who have managed to adapt to the outside world.          Tangtu consists of three villages, Cibeo, Cikartawana and Cikeusik, each of which has a 'Puun' or influential king or tribal chief. The Puun from Cikeusik are the most highly respected.          The Puun spreads the teachings of their ancestors in preserving their traditions, ways of life and in caring for nature as the source of life.          "I think the Land of Baduy is a 'state' without famine. But we are visiting this community to hear their aspirations. Though they are free from famine, we are committed to providing them with assistance,"  the minister said.***3***   (T.A014/A/KR-BSR/A/H-YH) 27-10-2012 19:57:4

GOVT TO SET UP FOOD AGENCY TO ACHIEVE FOOD RESILIENCE

By Andi Abdussalam

Jakarta, Oct 27 (ANTARA) - Indonesia, an agriculture-based country with a population over 237. 6 million and vast tracts of unused land outside Java Island, continues importing rice to meet its domestic needs.          Last year, Indonesia imported 2.75 million tons of rice worth US$1.5 billion to cover the shortage of its stocks for domestic needs, which has reached some 33 million tons annually.          Therefore, when the House of Representatives passed a revision to the 1996 Food Law last week that created a platform for the establishment of a new food authority body, many quarters hoped that the new body would be able to assure a resilient supply of food for the nation.           On Thursday last week the House endorsed the 1996 Food Law revision, creating a new agency that will have policy-making authority on food security issues, including issuing orders to relevant ministries.          The food authority agency, which will be established with a Presidential Regulation and answers to the President, will be charged with the task of formulating food policies and assuring the availability of national food stocks and stabile food prices.          It will also have the authority to assign state-owned firms to carry out production, procurement, stocks, distribution and control over food production. Thus, different conflicting polices governing food, which hampered the national food self-efficiency goals, are to be consolidated.          Currently, a number of ministries are regularly at odds over policies on the development of food and agricultural commodities.         "There are at least 14 ministries whose tasks are related to food issues. Rather than coordinating with each other, these ministries are mired in conflicts," Indonesian Political Economic Association (AEPI) agriculture expert Khudori was quoted as saying by the Jakarta Post on Monday.          Agricultural expert of the Bali-based Udayana University, Dewa Ngurah Suprapta, on Friday praised the plan to establish a food authority body that was needed to create a resilient food supply, as well as food sovereignty at home.          "Such an agency will have great responsibilities and will have to depend on the tasks given by the President," said Suprapta, who is also a visiting lecturer at universities in Japan.          He added that the president should provide full authority to such an agency and concerned ministers must fully support the food resilience agency in implementing its strategy.          "A national food agency with complete authority will be able to adopt strategies to achieve domestic production-based food resilience," the professor said.          He further said that Indonesia's agricultural policy only aimed to create food resilience and was not based on the capabilities and potential of the country's agriculture.          The government has to focus on local production and take steps to reduce the nation's dependence on imported products in order to achieve food security.          "By passing the revision of the Food Law, the food authority agency is expected to help the nation achieve food security soon, because the board is responsible for tackling Indonesia's food problems, as stated in the law," Suprapta said.          In essence, the food authority agency must be a strong body so that its policies will be effective.          Agricultural observer Tejo Wahyu Jatimiko, who is also coordinator of the Alliance for Prosperous Village organization, said the food agency must have strong authority in controlling food policies so that imports of food could be reduced.          "Logically, the body must have the highest authority in food affairs so that it could be effective in reducing the country¿s food imports," Tejo Wahyu Jatmiko told Antara on Thursday.          He said that dependence on imports could be stopped because all matters, such as production, distribution and consumption, were managed under one command. Further, the agency's position in the government should be at the level of a coordinating minister so that it would have strong authority in controlling food affairs, and should answer to the president.          "The idea of the establishment of the agency is to harmonize policies among the 14 ministries and state institutions which, so far, also handle food problems. The agency should at least have a level equal to the coordinating minister so that it would have effective power," he said.          He cited as an example the ministry of agriculture, which handled production; state-logistics board (Bulog) oversees distribution and the ministry of trade tackled food trade.          So, he said, the presence of the agency was something extraordinary, particularly with regard to its authority. The agency must also ensure the availability of productive land so that land conversion to purposes other than agriculture would be prevented.          Agricultural land conversion into industrial sites, estate or for other purposes is believed to be one of the causes of the lack of agricultural products and dependence upon imports in Indonesia.          Agriculture Minister Suswono has predicted that about 100 thousand hectares of agricultural lands are converted to other purposes each year.          It is this reason that the Indonesian Farmers Association (HKTI) said that Law No. 5 /1960 on the Agrarian Affairs must be observed regarding agricultural land conversion. One of the points in the law was that land was designed for the interests of the people, including the interest of developing food for them.         "We already have the law which regulates that land has social functions, so we do not need a technical regulation on land conversion," HKTI deputy chairman Rachmat Pambudy said.          He further said the government, in following up the revision of the 1996 Food Law, did not need to issue a technical regulation on the restriction of agricultural land conversion.          The existing law could be implemented to restrict agricultural land conversion, which is seen as one of the factors that boosted imports of agricultural products. The government, according to some observers, has not yet given appropriate attention to local products in carrying out its food resilience program.          "Food resilience has been given priority, so far, with the government importing commodities, such as rice, in times of shortages, but efforts have not been directed towards increasing production at home," Suprapta said.          Therefore, he hoped the establishment of the food authority agency would help in achieving domestic production-based food resilience.           In the meantime, Saprudin, head of the Directorate of Rain-fed Rice Fields of the Ministry of Agriculture, said that Indonesia had no problem in achieving food security in 2012, with the three million ton-surplus rice production target likely to be reached this year.          "This year, the country's (unhusked) rice production target is set at 65 million tons, which would leave a surplus of three million tons, Saprudin said  on Tuesday.           Further, according to Saprudin, the country's rice production target for 2013 is set at 75 million tons.           "We are confident of reaching the target in 2013. We are also optimistic about achieving a 10 million ton surplus in rice production in 2014," he added.***2*** (T.A014/A/KR-BSR/O001) 27-10-2012 14:50:0

RI EXPECTED TO MAINTAIN PEACE IN SOUTH CHINA SEA

By Andi Abdussalam

Jakarta, Oct 26 (ANTARA) - Indonesia, as the largest Southeast Asian country, is expected to continue playing its role as mediator in the dispute over the overlapping sovereignty claims on the Spratly Islands in the South China Sea.             "To help redress conflicts in the South China Sea, we have established cooperation with China and Vietnam in conducting coordinated patrols. Indonesia also has the same levels of cooperation with Malaysia, the Philippines and all members of ASEAN. Indonesia is even being asked to serve as a mediator and stabilizer," Navy deputy chief Vice Admiral Marsetio said on Thursday.              Speaking at an international seminar on "Cooperative Maritime Strategy to Enhance Security Stability in the South China Sea," Marsetio said the Indonesian Navy has deployed its marine forces by deploying its Western Fleet to help maintain security in the region.              He added that even though there is no current escalation of strength in the region and security remains normal, the conflict in the South China Sea had the potential to escalate.              Late last month, AFP reported that the Philippines had deployed 800 extra marines and opened a new headquarter to guard its interests in the disputed Spratly Islands.              Straddling vital shipping lanes and believed to be sitting atop vast reserves of mineral deposits, including oil, the chain of islands in the South China Sea has long been considered a flashpoint for conflict in the region.              Apart from the Philippines and China, the Spratly Islands are claimed, in whole or in part, by Vietnam, Brunei Darussalam, Malaysia and Taiwan.     The islands are important for a number of reasons. The area holds significant reserves of oil and natural gas. It is a productive area for world fishing and commercial shipping and coastal countries would get an extended continental shelf.     Some countries, like China, Taiwan and Vietnam have made their claim on the islands based on historical sovereignty.              Thus, as a neutral country and member of ASEAN, Indonesia is expected to remain as an interlocutor to mediate between conflicting claimants. As such, Indonesia has deployed its naval fleet to help maintain peace.              The step has been taken in an effort to prevent the conflicts from spreading to the Natuna waters, according to Vice Admiral Marsetio. The focus of fleet deployment in the Malacca Strait has been shifted to the South China Sea.              The essence of the conflict in the South China Sea is based upon countries seeking to extend their influence in the region.     "It is particularly so with the United States, on the one hand, and China, on the other," the Deputy Navy Chief said.              He added that all countries involved have agreed maintain cooperation in the region. Therefore, all of them are seeking alternative solutions to South China Sea issues.      In fact, the concerned parties had signed a declaration of conduct on the South China Sea in 2002.              This declaration was signed by the 10 foreign ministers of ASEAN countries and China on 4 November 2002 in Phnom Penh where the signatory countries pledged to resolve their sovereignty disputes in a peaceful manner, without resorting to the use of force and through direct negotiations between the countries concerned.              The parties also undertook to exercise self-restraint and refrain from activities that would complicate or escalate disputes and affect peace and stability. The pledge included refraining from establishing colonies on the presently uninhabited islands, reefs, shoals, cays, and other features.              Meanwhile, Indonesia and Singapore have also agreed that ASEAN should support the Code of Conduct for the settlement of the South China Sea problem in order to maintain regional stability.              "We agree with Singapore that ASEAN member countries should negotiate and support the Code of Conduct (COC)," presidential special aide for international relations, Teuku Faizasyah said at the presidential office on Thursday.             He said that the issue was one of the topics raised by Singapore's foreign minister, K Shanmugam, during his meeting with President Susilo Bambang Yudhoyono recently.              He added that Singapore and Indonesia share the opinion that the South China Sea problem should not cause conflict among ASEAN members ahead of the regional summit in Cambodia next month.              At the previous ASEAN summit in Cambodia, the 10 member countries failed to issue a joint communiqué on the South China Sea conflict.             Therefore, Indonesian Foreign Minister Marty Natalegawa held meetings with his counterparts from many ASEAN countries, urging them to issue a joint communiqué on the dispute.              His efforts resulted in the ASEAN's Six-Point Principles on the South China Sea. The principles include the importance of concluding negotiations on the COC and respecting international laws such as the UN Convention on the Law of the Sea (UNCLOs) of 1982.              Indonesia¿s efforts to play an important role in mediating the South China dispute have gained support from leaders such as Japanese Prime Minister Yoshihiko Noda.              Noda expressed his appreciation over the Indonesian role to President Susilo Bambang Yudhoyono on the sidelines of a bilateral meeting at the UN General Assembly in New York last month.             "The Japanese Prime Minister expressed his appreciation for Indonesia's role related to the negotiations on the South China Sea issue and hoped that Indonesia continues its role at the next East Asia Summit in Cambodia," Faizasyah said.***1***   (T.A014/A/KR-BSR/A/A014) 26-10-2012 16:43:

INDUSTRIALISTS MAINTAIN REJECTION TO POWER TARIFF HIKES

Andi Abdussalam

Jakarta, Oct 25 (ANTARA) - Industrial circles maintain their opposition to the government's plan to raise electricity tariffs by 15 percent next year, saying it would increase production costs, boost imports, trigger inflation and disadvantage local consumers.          "Increased power rates will raise our product prices and thereby reduce their competitiveness against imported commodities," General Chairman of the Association of Indonesian Local Brand Owners (AMIN) Putri K Wardani said here on Wednesday.          The government will impose a quarterly 4-percent automatic power rate hike beginning from January next year in an effort to reduce swelling subsidies in all sectors, which will amount to Rp316.1 trillion in 2013.          The House of Representatives on Tuesday endorsed the government's proposal in the draft state budget to set aside a subsidy amounting to Rp80.9 trillion for electricity next year. The government is planning to reduce the power subsidy burden through an automatic electricity rate hike every quarter next year.

GOVT HOPES TO MAINTAIN INVESTMENT GROWTH

By Andi Abdusalam

Jakarta, Oct 24 (ANTARA) - Investment in the country in the first nine months of this year increased by 27 percent to Rp229.9 trillion compared with investment figures for the same period last year.              Acknowledging its function as a prime driver of economic development, the government hopes that the increasing investment figures this year would be maintained to boost further economic growth which has been recorded at a level above six percent so far.           "Investments have increased this year and we hope this trend would be maintained," Deputy Minister for Economic Affairs, Mahendra Siregar said on Tuesday.              According to Siregar, rising investment figures in the 2011 - 2012 period indicated that Indonesia's economic development and growth are already on the right track and are making progress.               Based on the Report of Capital Investment Activity organization (LKPM), investment realization up to September 2012 reached a value of Rp229.9 trillion, or an increase of 27 percent over corresponding figures recorded last year, which amounted to Rp181.70 trillion.      The Capital Investment Coordinating Board (BKPM) has targeted total investments worth Rp283.5 trillion by the end of 2012.  In plain numbers, Rp229.9 trillion worth of investments up to September this year have accounted for 81.1 percent of the target.              "Investment in the first nine months of 2012 grew by 21 percent over those for the same period in 2011. This investment value is relatively high," Siregar said.              High investment has many positive impacts such as helping push up the gross domestic product (GDP) figures, creating further job opportunities and developing standards of industry.              "Investment has a grave impact on income and greatly enhances employment fields for boosting productivity," he added.              Therefore, he felt that the increase in investment figures should be maintained and trends indicated that the government would be able to do so, at least until next year.     Siregar added that Indonesia was one of two countries in the G-20 group of developing countries whose economic growth was above 6 percent.              BKPM chairman Chatib Basri said that the board is optimistic that Indonesia's targeted economic growth of 6.5 percent can be achieved in 2012.              "The target of economic growth can be achieved by increasing the realization of investment in the country," Basri said.               According to Basri, a significant increase in foreign and domestic investments from January to September 2012 has reflected that Indonesia's economy will grow as targeted.              He said that the investments consisted of foreign investment worth Rp164.2 trillion and domestic investment worth Rp65.7 trillion.              "Overall, investment projects in the January-September 2012 period were evenly distributed among areas outside Java, with the domestic investment showing positive trends," he added.              According to him, Rp9.1 trillion of the domestic investment went to the non-metal mineral industry, Rp8.6 trillion to the mining industry, Rp7.7 trillion to the food industry, Rp6.3 trillion to the food crops and plantation business and Rp5.8 trillion to the basic metal, metal goods, machinery and electronics industries.              Based on the BKPM data, US$3.2 billion worth of foreign investment was made in the mining sector, US$2.5 billion in base chemical, chemical goods and pharmaceutical industries, US$1.9 billion in the transportation, warehousing and telecommunication sector, US$1.3 billion in the transportation equipment industry and US$1.3 billion in the base metal, metal goods, machinery and electronic industry.              Meanwhile, Finance Minister Agus Martowardojo has said that the investment sector is expected to become the main economic growth driver in the country.             Martowardojo expressed high enthusiasm with the strong growth of 27 percent in the investment sector in the third quarter of 2012.              "This shows that the investment engine in Indonesia could be relied on to push up our economic growth," he said on Tuesday.              However, investments should be directed towards the revival of exports which have declined lately as a result of the protracted European economic crisis.              The country's total exports in the first half of 2012 declined by 2.52 percent and its imports rose 13.2 percent, compared with the same period last year.             Indonesia's exports during January-July 2012 dropped to US$113.11 billion, from US$116.03 billion recorded in the same period last year. Meanwhile, the country¿s import figures increased to US$112.78 billion this year, from US$99.79 billion in the first half of 2011.              Europe is one of Indonesia's largest traditional markets for its export commodities, besides Japan and the United States.             "We need to encourage investment to produce more export-oriented commodities," he said.             The policy is to redress trade balance and to prevent deficit in balance of payments, according to him.     ¿In order to boost investment, the government has allocated a hefty fund of Rp213 trillion for capital spending in 2013 that could be used for infrastructure development,¿ he said.   The allocation represents a substantial increase from the fund of Rp170 trillion set for this year.              "The increase reflects the government¿s commitment to drive economic growth with higher quality, more inclusive and sustainable infrastructure," he said. ***2***   (T.A014/A/KR-BSR/O001) 24-10-2012 16:0

DOMESTIC NEEDS FOR GAS MUST GET PRIORITY

By Andi Abdussalam

Jakarta, Oct 23 (ANTARA) - The government, bearing in mind in increasing needs for gas at home, will give priority to meeting domestic demand rather than exports.              Indonesia's current gas production is estimated at only 8,412 million metric standard cubic feet per day (MMSCFD) while consumption at home continues to increase in line with the increasing needs of industries, power generators and others, such as the fuel-to-gas conversion program.             The fertilizer industry, for example, now needs some 800 MMSCFD and demand in the sector is expected to increase to 1,000 MMSCFD by 2015.              Last year, industries at home needed 3,799 MMSCFD, of which only about 60 percent was contributed by gas produced at home.              Other sectors needing gas supplies include power generators of state-owned electricity company PT PLN and government programs such as the kerosene-to-gas conversion program, where millions of families have to be supplied with subsidized gas.              Currently, the government has set aside 55.2 percent of its gas production for exports, while only 44.48 percent remains for domestic consumption.              Considering the urgent need for gas at home, Lawmaker Sohibul Iman urged the government to be serious in giving priority to domestic need. Moreover, it is planning to further develop more gas fields in the country, such as Train 3 of the Tangguh gas field in Papua.             Iman, deputy chairman of the Prosperous Justice Party Faction (FPKS) of the House of Representatives (DPR), said on Monday that domestic demand for gas continued to increase.              With regard to the increasing need at home, the government has planned to allocate most of its gas production, particularly gas produced by firms with new contracts, to domestic need.              "Natural gas produced henceforth will be devoted more for domestic needs rather than for exports," he said after a closed-door meeting with the House of Representatives' Commission VII members over the weekend.              The policy was taken in view of the increasing demand for natural gas in the country. The House of Representatives has also agreed with the policy.     "The government and the DPR shared the view that priority must be given to domestic needs," he added.              The minister, meanwhile, said that the government and the DPR would soon hold discussions on domestic allocation and sectors requiring the energy source.         He assured that the government would respect old contracts but would seek renegotiation for those considered to be hurting national interests.              With the government prioritising domestic need, it is expected that shortage of gas at home would be overcome.              The industry demand for gas has always fallen short of supply at home every year. Supplies are also inadequate for generators and fuel-to-gas conversion program.              According to Iman, the present condition required the government to be precise in prioritising gas distribution in the country.     "It must be accurate, clear and transparent,¿ Iman said, adding that the electricity subsidy had increased, forcing the government to propose a power tariff increase. Shortage of gas supplies to power generators forced state-owned power company PLN to use more expensive fuels.              "Provision of electricity is in the interest of the people and the government should prioritise the interest of the public," Iman said.              He added that the government should also pay attention to the complaints of industries which often ran short of gas supplies.              Gas production this year is estimated to fall 0.04 percent to 8,412 million cubic feet per day (MMSCFD) from last year's figures of 8,415 MMSCFD, according to Upstream Oil and Gas Regulator (BP Migas) chief, R Priyono.            Meanwhile, oil and gas production this year is estimated at the equivalent of 2.367 million barrels a day, down by 1.6 percent from last year's figures, which were recorded at 2.405 million barrels per day.              In order to increase production, the government is actively exploring and exploiting gas fields to increase gas production to 4,500 MMSCFD by 2020.              According to data from BP Migas, the upstream oil and gas regulator, the South Mahakam gas project in East Kalimantan, operated by Total E&P, has a projected capacity of 202 MMSCFD by 2013.              Other such projects are Madura BI in East Java, operated by Husky Madura, with a projected capacity of 100 MMSCFD by 2014, The Petronas-operated Kepodang gas project in Central Java with a projected capacity of 116 MMSCFD by 2015 and Senoro in Central Sulawesi, operated by Pertamina-Medco Tomoro JOB, with a projected capacity of 280 MMSCFD.              Projects to be completed by 2015 include Jangkrik in East Kalimantan, operated by ENI Muara Bakau, with a projected production capacity of 290 MMSCFD.     The IDD-Gendalo hub in East Kalimantan with Chevron Indonesia as its operator has a projected production capacity of 330 MMSCFD by 2016.              Inpex Masela will operate the Masela project in Maluku by 2017 with a production capacity of 355 MMSCFD, PT Berau Ltd. in Tangguh, Papua by 2018 with a production capacity of 870 MMSCFD and a Pertamina Consortium by 2020 in East Natuna, Riau Islands with a projected production capacity of 1,000 MMSCFD.              The East Natuna gas field produced 1,000 MMSCFD in 2010 and the figure could rise to 4,000 MMSCFD if the project reaches its production peak. However, it is still in the proposal phase.              The Energy and Mineral Resources Ministry (ESDM) is awaiting a proposal from the Finance Ministry on the development of the East Natuna gas block in Riau Island.              The Deputy Minister of Energy and Mineral Resources, Rudi Rubiandini, said that the Finance Ministry was still examining the proposal and is yet to call a meeting to discuss the same.              "There are many aspects that have to be covered. Perhaps that is why they need more time," Rubiandini noted.     The proposal has been issued through a consortium led by state oil and gas company, PT Pertamina, including representatives from ExxonMobil and Total SA.              The government will discuss the proposal thoroughly because the consortium has demanded a dedicated management system for the block on grounds that it had potentially vast reserves of gas.              Rubiandini informed that a specific management system is needed because for every single metric standard cubic feet of gas produced three metric standard cubic feet of carbon dioxide (CO2) has to be injected into the ground.              The Natuna block contains an estimated 222 trillion cubic feet of gas. However, it is likely that only 46 trillion cubic feet of gas would be produced, because 70 percent of its content is C02. ***2***   (T.A014/A/KR-BSR/A/A014) 23-10-2012 18:17:

HAMBALANG SPORTS COMPLEX BECOMES 'FIELD' OF LEGAL BATTLE

By Andi Abdussalam

Jakarta, Oct 22 (ANTARA) - After almost a decade, the Rp2.5 trillion Hambalang athlete training center project in Bogor, West Java, seems to be developing into a field of legal 'battle' rather than a sports complex.           Following the collapse of a number of sports buildings last December, reportedly due to the subsidence of land and inappropriate soil texture beneath, Sports and Youth Affairs Minister Andi Mallarangeng ordered the stoppage of the project.           Besides technical problems, the project, which is expected to develop a national sports school, training and education center, is also grappling with a legal problem as funds for its construction are alleged to have been marked up.           The Corruption Eradication Commission (KPK) has asked the State Audit Board (BPK) to conduct an investigation into the case. While the BPK is still preparing a final report, rumors abound that some names have disappeared from the report after being included initially.           Media reports allege that there has been interference in the BPK which has caused the state audit agency to scrap the names.           A KPK spokesman, however, expressed conviction that there was no illegal intervention.       "I do not believe that there has been any intervention. In this case, the KPK has asked the BPK to conduct a comprehensive audit on the Hambalang project, including the losses caused to the state," KPK spokesman, Johan Budi SP said on Friday.          Budi said that state auditors calculate losses incurred by the state due to the alleged marking-up in the Hambalang project and the anti-graft body is cooperating with the state audit board.          The KPK spokesman also said that the KPK is yet to receive a report on the results of the BPK audit on the Hambalang sports complex project.          However, he stressed that the KPK will not base its investigation on the BPK audit results but on its own follow-up examinations before raising the case's legal status to the investigation level.          "If the status of the examinations is raised to the investigation level, it would mean that the KPK has found enough evidence of corruption in the implementation of the Hambalang sports center project," he said.          However, the BPK has not finalized its investigative report yet, which is expected to be finished sometime next week.          Taufiequrachman Ruki, a member of BPK, said that the BPK's auditors were still working to finish the investigation process before the matter is brought before the audit board meeting.           "We will carefully cross check what is found and written in the report. We expect the report to take another week to finish," he said.           However, he added that the BPK's initial audit has discovered that the disbursement of initial funds for the development of the sports complex had been transferred to different recipients.           "It still has to be proven whether or not the initial disbursement was an underlying transaction. We have to reveal it. We will investigate if it is in accordance with regulations or not. But for the time being there is an indication that the flow of the fund has been suspicious," he said.           The Hambalang sports complex project was started in 2003 when it was under the auspices of the Directorate General of Sports of the Ministry of Education and Culture. It aimed to build more sports facilities outside the Ragunan Sports Centre in East Jakarta.           In the 2004 -2009 period, the project was taken over by the Ministry of Youth and Sports Affairs, which handled land clearance, land certificate, geological study and the drawing up of its master plan.          In 2009, Ministry of Youth and Sports Affairs proposed a budget of Rp1.25 trillion for the construction of the project and the budget allocation was raised to Rp1.175 trillion through the Ministry of Finance.          Of the proposed budget of Rp1.175 trillion, an allocation of Rp275 billion got the required approval. Rp125 billion were to be allocated through the 2012 state budget and the remaining amount of Rp150 billion was to be allocated through the revised 2012 state budget.          According to media reports, the Hambalang project is expected to be built in three stages. The total funds will amount to Rp2.5 trillion, if the funds for the procurement of sports facilities are also included.          However, the funds being investigated by the KPK are only those allocated for its physical construction, worth Rp1.2 trillion.          The KPK has named Deddy Kusdinar, the head of youth and sports affairs ministry's finance and household bureau, as a suspect because of his role as the ministry's former planning bureau chief and for allegedly abusing his power.         Kusdinar, who was in charge of the tender process, was charged by the KPK last July over graft in the multi-trillion rupiah project.          The Hambalang case came to fore when it was revealed by M. Nazaruddin, a former Democrat Party treasurer and a fugitive in connection with the alleged corruption in the construction of an ASEAN athlete housing complex in South Sumatra.       In a telephone conversation with a private TV station in July 2011, Nazaruddin said that the tender winners for the Hambalang athlete training center project had been decided even before they were called.          Nazaruddin added that PT Adhi Karya and PT Wijaya Karya paid Rp100 billion in bribes to win the tenders for the project worth Rp1.5 trillion.          During the conversation from an undisclosed overseas location, Nazaruddin said that PT Anugrah Nusantara played a key role in arranging government contracts whose funds were to be allocated through the revised state budget.          PT Anugrah Nusantara, which Nazaruddin said belongs to Anas Urbaningrum, general chairman of the ruling Democrat Party (PD),  collected funds from state-owned companies (SOE) such as Adhi Karya (ADHI) and Wijaya Karya (Wika) to enable them to win the tender.          The Hambalang project is a sports center project designed for athletes in Hambalang village, Citeureup sub-district, Bogor district, West Java.          The athlete training center will consist of several buildings, such as dormitories and training halls. It is spread over an area of 32 hectares and was initially expected to be completed in 2013. ***1***   (T.A014/A/KR-BSR/A/H-YH) 22-10-2012 20:34:5

OIL PRODUCTION LIKELY TO FALL BELOW TARGET

By Andi Abdussalam

Jakarta, Oct 21 (ANTARA) - The country's oil output this year is most likely to fall below the production target as set in the 2012 revised state budget at the average of 930,000 barrels per day.          Until October 11, 2012, realization of oil reached 867,080 barrels per day, so that the Upstream Oil and Gas Regulator (BP Migas) has predicted that by the end of the year production may only reach 870,000 barrels per day.          The total is 3.6 percent lower than last year's realization which was recorded at 902,000.          Compared to the target set at 930,000 barrels per day in the revised 2012 budget the projection would be 6.5 percent lower.          Due to several factors, it seems that the government faces difficulties in raising natural oil production. It has faced these difficulties in the past several years and will still face it at least until sometime in the future.          "Seeing its condition, it would be difficult for the government to increase oil output," Dito Ganinduto of the House of Representatives (DPR)'s Commission VII on energy affairs, said here on Sunday.          He said the effort to cut production decrease from 10-12 percent to 3.6 percent in 2012 was already an optimal one. According to him, naturally, the decrease of oil production would reach 10 - 12 percent.          The Upstream Oil and Gas Regulator (BP Migas) in its report to the DPR Commission VII indicated that the 2012 oil production was estimated to reach 870,000 barrels per day, declining by 3.6 percent compared with the realization in 2011 which reached 902,000 barrels per day.          According to BP Migas Chief R Priyono, the drop in the production this year was caused by a break in the TGI pipe at PT Chevron Pacific Indonesia on September 29, 2010 and a fire at the Lentera Bangsa terminal at CNOOC causing production loss of 9,000 barrels per day.         Unplanned shutdown in almost all KKKS (production sharing contractors) facilities has also caused a loss of 10,000 barrels per day while delay in rig procurement at Chevron Makassar, Vico, Santos Sampang and Pertamina has caused a loss of 5,300 barrels per day, he added.          BP Migas predicts the biggest oil production of KKKS in 2012 would be that of Chevron Pacific Indonesia at 343,212 barrels per day, followed by PT Pertamina EP at 127,889 barrels per day, Total EP Indonesie 66,400, ConocoPhillips Ind Ltd. 44,306 and PHE-ONWJ at 34,056 barrels per day.          Besides, contract extension has also caused a delay in the drilling of 5,500 barrels per day in the West Madura Offshore and a decline in production at Tunu, Peciko, KE-38 and other fields by 6,500 barrels per day, he said.         Oil and gas production this year meanwhile is estimated at 2.367 million barrels equivalent oil a day, down by 1.6 percent from last year's which was recorded at 2.405 million barrels equivalent oil  per day.         Priyono said without optimization, this year's production would reach only 757,000 barrels per day.         However through optimization production could be increased by 173,000 barrels per day to reach 870,000 barrels per day until the end of this year, he said.          According to legislator Dito Ganinduto, the production prediction at 870,000 barrels per day by the end of the year would constitute the maximal efforts by the government to reduce the decline.          "It is now difficult to raise production now. The decline by 3.6 percent of oil output in 2012 is already an optimal effort," he said.          However,  Dito expressed hope that  oil output would increase again when the Banyuurip oil field in Cepu, began its estimated production of 165,000 barrels per day in 2014.          Besides, Indonesia should also increase explorations and exploitations of new wells or oil fields. In this case the government continues to cultivate new oil blocks.          The oil blocks included those located in various areas  on and off Sumatra  and Kalimantan, Makassar Strait of Sulawesi, Java Sea, off East Nusatenggara and off Natuna and Papua.          Tenders would be held for the blocks, on shore and offshore, between October 2012 and February, 2013 under production sharing scheme.          In addition, the Indonesian government has also offered 23 new oil and gas blocks to Russian investors, according to the Indonesian embassy in Moscow said.          The offer was made on the occasion of a Russian Oil & Gas Conference & Exhibition held in Moscow, embassy secretary  Enjay Diana said to ANTARA news agency in London recently.          Indonesian government officials and oil industrialists took part in the three-day exhibition and conference ending October 18, Enjay said.          In the meantime, State Enterprises Minister Dahlan Iskan has expressed hope that state-owned companies would win oil and gas tenders offered by the government.          He asked seven state firms to take part in tenders for projects worth Rp200 trillion at the Upstream Oil and Gas Regulating Body (BP Migas).       State industry engineering company PT Rekayasa Industri has been appointed a leader of the seven state firms to take part in the tenders, he said.          The other six state firms are state oil and gas company PT Pertamina, insurance company PT Asuransi Jasindo, and construction companies PT Waskita Karya, PT Wijaya Karya, PT Adhi Karya, and PT Hutama Karya.          PT Rekayasa Industri was appointed chief because it had the highest capacity among the seven state firms to carry out projects in the oil and gas sector, he said.        Therefore, PT Rekayasa Industri must soon hand a list of clusters the state firms can carry out, he said.         "We ask BP Migas to inform the state firms of what it can cooperate with the state firms so the Rp200 trillion projects will go to domestic companies," he said.***2*** (T.A014/A/A014/O001) 21-10-2012 20:54:0

RI UNLIKELY TO ACHIEVE SUGAR SELF-SUFFICIENCY TARGET

By Andi Abdussalam

Jakarta, Oct 20 (ANTARA) - It seems the government is unlikely to achieve its sugar self-sufficiency target of producing 5.7 million tonnes per annum by 2014.          It has just two years left to achieve the target, while sugar production has never exceeded 2.7 million tonnes per annum in the past 10 years.          Besides, the government revised down its sugar production target from 2.7 million tonnes to 2.57 million tonnes in 2011. And this year, too, it sharply cut its production target to 2.6 million tonnes from 4.4 million tonnes.          In order to achieve its sugar production target of 5.7 million tonnes by 2014, the government should expand its sugar cane plantations to approximately 850,000 hectares from the present 450,000 hectares.          According to Ismed Hasan Putro, the president director of PT Rajawali Nusantara Indonesia (RNI), an agro-industry company which has at least 10 sugar mills in Java, the government needs to bring an additional 400,000 hectares of land under sugar cane cultivation if it wants to achieve its 2014 target.          "However, it will need some 2.5 years to provide that much land because the effort will involve a lot of paperwork," Ismed explained.          However, there is not enough land available for plantation purposes in Java, which is crammed with sugar mills for the processing of sugar cane. Additional land for plantation expansion is available only outside Java.         The self-sufficiency production target had been set with the presumption that sugar cane plantations and factories would be expanded. However, that has not happened, due to which the government has had to revise down its production target.          "Those targets are unlikely to be achieved because there was no expansion of sugar plantations as planned. Moreover, efforts to modernise old sugar factories and plans to build new ones also failed," Plantation Director General Gamal Nasir said last month.          He noted that the target was set based on the assumption that 350,000 hectares of additional land would be brought under sugar cane cultivation.           "The expansion plan has failed. Besides, the modernisation plans for old sugar factories remain in the pipeline, as do the plans to build new factories. We have only two years left to go," Gamal pointed out.          However, he added, if the government managed to successfully implement the plans now, sugar cane production could reach 3.1 million tonnes by 2014.         Based on official data, the country's annual sugar production during the 2002-11 period never exceeded 2.7 million tonnes. The peak production of 2.7 million tonnes was recorded in 2008.         Therefore, publicly listed RNI called on the government to step up plantation expansion by bringing more land outside Java under sugar cane cultivation in order to meet the nation¿s sugar self-sufficiency target.          Meanwhile, RNI president director Ismed Hasan Putro pointed out the farmlands in Java were no longer as productive as they used to be. Therefore, he added, if the government continued to rely heavily on Java, it would never achieve its self-sufficiency target.          "If the government provides us with 100,000 acres of land, or 45,000 hectares, I will build a new sugar factory with a capacity of 20,000 tonnes. The construction costs for the factory and the selling of its products will be my responsibility," Ismed said at the Parliament building last week.          He said that if the government permitted RNI, he would soon set up the factory. "We have the money and the human resources," he stated.          Meanwhile, the ministry of agriculture said it would continue to make efforts to boost national sugar production by taking steps to improve the productivity of the existing sugar cane plantations.     ¿We would like to at least reach 3.1 million tonnes by 2014. We will use new seeds at plantations where harvest has already been done four times. This step will be taken to increase productivity," Agriculture Minister Suswono stated.           He added that his ministry cooperated with the Indonesian Sugar Plantation Research Centre (P3GI) in preparing sugar cane seeds of superior variety in order to increase productivity.           The seeds provided by P3GI so far have proven to be of high quality. Therefore, the ministry has set itself a target of planting such seeds over 50,000 hectares of land in order to achieve its production target for 2014.          "At present, finding land is still the main problem facing sugar cane plantation expansion efforts. The government still needs a total of 350,000 hectares of land, in addition to the existing 450,000 hectares, so it can achieve its 2014 target," Suswono said.          Indonesia's annual sugar consumption is estimated at 5 million tonnes, while the country produces only 2.50-2.57 million tonnes of crystal white sugar a year.         Therefore, almost 50 percent of domestic demand, including from the food and beverage industry, is met by importing sugar. ***2***   (T.A014/A/KR-BSR/A/A014) 20-10-2012 17:21:0

INDONESIAN HAJJ PILGRIMS NEED BETTER SERVICE

BY Andi Abdussalam

Jakarta, Oct 19 (ANTARA) - Indonesian hajj pilgrims in Saudi Arabia are in need of better services although there has been an improvement this year over those provided last year.          The transportation system still poses a problem with pilgrims complaining about the waiting time for a bus to take them from the airport to Mecca or Medina.          This year, some pilgrims even experienced a mishap on the road when one of their buses caught fire, burning the pilgrims' luggage in the process.          "Actually, the services provided for the Indonesian pilgrims have been better than those last year, but it seems that the pilgrims still face problems with transportation. For example, there has been an accident where a bus carrying Indonesian pilgrims from Medina to Mecca caught fire, burning the pilgrims' luggage," Religious Affairs Minister Suryadharma Ali said in Saudi Arabia on Thursday.          He said that he had asked the consortium of the Saudi bus company to compensate the pilgrims for their burnt luggage. He also said that the pilgrims must have insurance cover in the future.          Muhammad Oheo, a member of the Hajj Monitoring Team of the Indonesian House of Representatives (DPR) said that he had received complaints about the transportation system. He said that the pilgrims complained of the long waiting time at the airport.          "The Indonesian pilgrims get off flights after an air journey of eight hours and they must not be made to wait for so long to get a bus to their destination," he said.          Oheo also urged the Saudi authorities to provide professional and quality services to the Indonesian hajj pilgrims, in view of the bus fire incident.          He said that all Indonesian hajj pilgrims deserve professional services because they have already paid for services like transportation, lodging, catering and other administrative services such as immigration service at the airport.          "The cost must be balanced with quality and professional services. The Saudi king needs to intervene to improve the services for pilgrims," he said, while referring to the transportation service which remains the same, year after year.          A monitoring team of lawmakers is now in Saudi Arabia to monitor the services provided to the Indonesian hajj pilgrims.        According to the head of the Indonesian Hajj Management Unit for Mecca area (Daker Mekkah), Arsyad Hidayat, the monitoring team would  monitor the hajj pilgrimage services, including supervising preparations for the transportation system,  health, lodging, catering and other activities such as rituals in the Arafah, Mina and Muzdalifah fields.          Even though the transportation service remains a problem, Indonesian officials serving the pilgrims have worked well, according to Muhammad Oheo. Therefore, he expressed his appreciation towards Indonesian hajj workers for their efforts to serve the pilgrims.          Minister Suryadharma Ali opined that this year's services by the officials were better than those last year.          "So far this year, the hajj services are better than last year," Suryadharma said at King Abdul Aziz airport in Jeddah on Thursday.          He said that the better service could be observed at the immigration counters which had worked faster than last year.         Clearance of documents could be finished within 1 to 2 hours now, faster than the 3-4 hours taken for the same task last year.          The minister said that the arrival schedules were also much better and on time, though several flight arrivals were delayed.          The lodging in Mecca for the Indonesian hajj pilgrims is also relatively good as its distance from the Al Harm Mosque is the same as last year, around 2.5 km away, despite the fact that the authorities have demolished some of the buildings around the mosque.          In Medina, the Indonesian pilgrims are lodged only 650 meters away from the Nabawi Mosque, which is an improvement over the lodging last year.          In the meantime, the DPR's monitoring team which observed the hajj pilgrimage conditions in Sector 9 or the Bahutmah and Misfalah areas in Mecca on Tuesday concluded that the timing of the ritual activities in Mecca for Indonesian pilgrims needed to be rearranged in an effort to reduce the risk of fatigue for ageing pilgrims.          "Based on the information we gathered, fatigue is the main trigger for bad health of the pilgrims," said monitoring team member, Nova Iriansyah Nurin Sutie.          According to Sutie, a hajj group organizer has the target to organize umroh (minor hajj) for their group 10 times. In order to achieve the target, the pilgrims are led to perform rituals continuously that would reduce the physical strength of the pilgrims.          "Health of the pilgrims is critical. When they arrive in Mecca in the wee hours, they are directly asked to perform the tawaf (encircling the Kaabah in the mosque). This is regardless of the fact that pilgrims are still lacking sleep," noted Sutie.          She said that the pilgrims need to rest first to restore their physical condition and to ensure their stamina before performing the umroh ritual.          "If the pilgrims are forced to perform secondary ritual obligations, it is feared they would not be able to perform the main rituals of the hajj pilgrimage during the procession in the Arafah, Muzdalifa and Mina fields," she added.           According to the quota given by the Saudi government, about 211 thousand Indonesians perform hajj pilgrimage this year. Of the total, 194,000 perform hajj pilgrimage using the regular hajj service and 17,000 using the special hajj service.***3*** (T.A014/A/KR-BSR/A/A014) 19-10-2012 1

FARMERS CALL FOR SYSTEMATIC FERTILIZER DISTRIBUTION

By Andi Abdussalam

Jakarta, Oct 17 (ANTARA) - Indonesian farmers have called on the government to formulate a systematic subsidized fertilizer distribution system in order to overcome fertilizer scarcities that often occur at the farmers' level.              So far, distribution of subsidized fertilizers has often been off-target and misappropriated. Some are exported illegally and distributed to the plantation and fishery sectors, causing supply shortage in the food crops agricultural sector.              The illegal distribution and exports of subsidized fertilizers that cause fertilizer scarcities greatly harm the interests of not only the farmers but also of the government's food program, which has been formulated to reinforce the country's food resilience.              Subsidized fertilizers have been designed for the food crops agricultural sector. If fertilizer supplies fall short, farmers are discouraged to cultivate their farms, while at the same time they are expected to increase their production to boost the government's efforts to build the country's food resilience.              "So far, the distribution of some of the subsidized fertilizers has been off-target, namely farmers in the food crops agricultural sector.  The illegal distribution could have happened due to the lack of supervision by the government," Sutrisno Iwantono, the chairman of the Indonesian Farmers Association (HKTI), said last week.              Therefore, he said that the government should formulate a systematic subsidized fertilizer distribution system where data on land (rice fields etc), land owners, farmers, distribution timing and the type of fertilizers needed is also included.              Due to shortage of subsidized fertilizers, farmers held a protest recently and demanded that the government should resolve the country's fertilizer problem immediately.              "The country's fertilizer problem is actually a classical one. Scarcities of supply always take place every year. This should not be left unheeded and we have been upset over the fact that farmers have often failed to harvest due to shortage of fertilizer supplies. The President must interfere in it to help us," Sudir Santoso, presidium chairman of the National Village Officials Organization (Parade), said.              He threatened to organize a large scale protest at the ministry of agriculture if the government failed to resolve fertilizer problems in the country soon.              According to Santoso, fertilizer scarcities in the field are actually caused by problems with the ministry of agriculture. The fact that subsidized fertilizers could not be distributed evenly is just proof of the government's inability in arranging the procurement and the distribution of subsidized fertilizers.              "If the minister has worked correctly but problems still exist, this points to wrongdoings in the lower levels of the state machinery, in my opinion. This must be sanctioned and should not be left unheeded. One should not be afraid of doing this if it is in the interests of the country's farmers," asserted Santoso.              According to him, the government should overcome the fertilizer problems through three instruments, namely regulations, intervention and subsidy distribution that reaches its target.              If the government has applied the three instruments but problems still exist, then it is reasonable to suspect the involvement of a mafia inside the ministry of agriculture, according to Santoso.              "A fertilizer mafia is worse than a terrorist cell because its acts will disturb the food needs of millions of people. Therefore, if the government is not able to solve the problem, we will organize a large scale rally," he threatened.              According to HKTI chairman Sutrisno Iwantono, the problems regarding the distribution of subsidized fertilizers emerged due to the lack of government supervision in the fields.              He said that the HKTI had received many reports on fertilizer misappropriations in the distribution of subsidized fertilizers.              "There are cases where subsidized fertilizers are distributed to parties who are not the right recipients while supervision at the distributor level is weak. It is weak because it does not involve farmers or their organizations. So, the distribution of subsidized fertilizers is prone to misappropriation," Iwantono noted.              Problems in the distribution of subsidized fertilizers have been rising for a long while now. The problem can already be seen when the plan is made on the definitive needs for subsidized fertilizers of farmers groups.             "We suspect there is manipulation in deciding data and figures on the needs for subsidized fertilizers. The supervision is not tight because all stakeholders are not involved and as a result, distribution of fertilizers is prone to misappropriation," he said.              Iwantono explained that the Agriculture Minister's Decree No. 6. /2011 regulated that subsidized fertilizers were only designed for food crop-producing agricultural farmers, not for food crop-producing plantation companies.              Therefore, the government should formulate the mechanism of a systematic distribution system which includes data on farmer's lands, number of farmers, timing of the distribution, type of fertilizers and planting seasons.              "Regional government should fully supervise the distribution of subsidized fertilizers, particularly by the supervision commissions formed in the region. We are afraid that the distribution would be off-target if the system applies direct distribution," Iwantono added.              According to Bambang Tjahjono, president director of fertilizer firm PT Pupuk Kujang, the agricultural sector needs 10.4 million tons of fertilizers.              In 2011, usage of urea fertilizer reached 4.5 million tons, SP-36 fertilizer 721 thousand tons, ZA fertilizer 944 thousand tons and organic fertilizer 375 thousand tons.              Tjahjono said that Indonesia still had major potential for the application of fertilizers because there were still extensive areas outside Java that could be cultivated for agricultural purposes.              So far, he said that agricultural cultivation of rice had only been focused on Java.  "Rice production is so far always focused on Java while the productivity of the farm lands on this island has been stagnant," said Tjahjono.              He informed that rice production in Java in 2011 stood at 20.4 million tons and production is already stagnant. However, fertilizer application outside Java is expected to increase production significantly.              "We have conducted a fertilizer application test on a tidal area in South Kalimantan. Before we used fertilizers, rice production per hectare was about 2 - 3 tons. But by using fertilizers, production increased to about 5 - 6 tons per hectare," he said.              Seeing the potential outside Java, Tjahono asked all stakeholders in the food sector to develop rice fields in provinces outside Java.***2***  (T.A014/A/KR-BSR/A/A014) 17-10-2012 17:47: