PUBLIC URGED TO RESTRICT SUBSIDIZED FUEL CONSUMPTION

By Andi Abdussalam

Jakarta, Nov 30 (ANTARA) - The government has called on all Indonesians to restrict their consumption of subsidized fuel, switch to gas whenever necessary or possible, and use non-subsidized fuel such as Pertamax for their luxury cars.          "We should avoid fuel scarcity, as it could trigger social unrest. People should restrict their consumption of subsidized fuel and buy only as much as they need for the moment. If they usually buy 10 liters, they should not buy 100 liters, because such actions could trigger a rush. Our economy is good and we should maintain it," Coordinating Minister for Economic Affairs Hatta Rajasa said.          Although the government has increased the previously set quota of subsidized fuel from 40 million kilolitres to 44 million kilolitres, consumption of the commodity will still likely exceed the revised state budget quota this year. That is because the stocks of subsidized fuel, particularly premium gasoline, are running out, leading to long tailbacks at refilling stations in various regions across the country.

JAKARTA MRT CONSTRUCTION PROJECT GETS GO-AHEAD

By Andi Abdussalam

Jakarta, Nov 30 (ANTARA) - After several days of talks on the fate of the Jakarta Mass Rapid Transport (MRT) system, the development of which has been in limbo since the era of Jakarta governors Sutiyoso and Fauzi Bowo, the project has finally received the green light. "I just met with the management of PT MRT Jakarta and now it is clear that construction project will positively go ahead," Jakarta governor Joko Widodo (Jokowi) said at the City Hall on Thursday night.          "However, there are several other things that still need to be explained in detail, such as the per kilometre construction cost of the project," he stated. "Regarding the construction cost per kilometre, it seems we still need to call a tender for it. I think the costs could still be reduced. But, in general, matters relating to the MRT project have become clear and are no longer burdening my mind," Jokowi added.

WAGE INCREASE TRIGGERS INDUSTRY OUTCRIES

By Andi Abdussalam

Jakarta, Nov 29 (ANTARA) - Following increased demonstrations in Jakarta by workers who demanded wage increases and an end to the outsourcing of labor, the Jakarta governor decided on November 14, 2012 to raise the monthly regional minimum wage from Rp1.5 million to Rp2.2 million. However, Jakarta Governor Joko Widodo's move on wages is being viewed by the business community as harming labor-intensive industries since the wage increase far exceeded the basic living cost (KHL). Management is of the view that the ideal regional minimum wage (UMP) for Jakarta is about Rp1.9 million per month.          "KHL should ideally be set at Rp1.9 million, but the Jakarta governor has raised it to Rp2.2 million, or about 44 percent. This is just proof of the fact that the governor wants labor-intensive industries to slump and is encouraging them to relocate their factories from Jakarta," Ernovian G Ismy, secretary general of the Indonesian Textile Producers (API), said on Tuesday.  Further, some 60 companies will ask the Jakarta city administration to postpone the introduction of the 2013 minimum wage, saying that the Rp 2.2 million ($229) per month set by the government is too burdensome.

FOOD DIVERSIFICATION THROUGH COURTYARD CULTIVATION

By Andi Abdussalam

Jakarta, Nov 29 (ANTARA) - Residential courtyards in Indonesia are being used to cultivate food crops and to diversify food production. Studies carried out by the National Land Affairs (BPN) show that in 2007, there were 4.1 million hectares of agricultural land in Java, but the figure dropped to 3.5 million in 2010. In fact, there has been a significant decline in the area of agricultural land due to industrial development.          To increase food production, people are now using their residential courtyards as alternative areas to develop food crops. "Courtyards can be converted into food barns," said Bambang Shergi Laksmono, a social welfare expert at the University of Indonesia (UI), on Thursday.          Indonesia has about 10.3 million hectares of land (courtyard) that can be utilized for the development of food crops, to improve the welfare of the people. Courtyards account for about 14 percent of the total agricultural land in the country.          As a food barn, a courtyard plays an important role in maintaining the resilience of food. In the past, people used to convert their yards into food barns by planting tubers.

KPK TO BEGIN QUESTIONING WITNESSES OVER CENTURY CASE

By Andi Abdussalam

Jakarta, Nov 28 (ANTARA) - The Corruption Eradication Commission (KPK) will soon begin questioning witnesses in the Rp6.7 trillion Bank Century scandal but has not provided any names of persons it intends to summon. KPK Chairman Abraham Samad said on Tuesday his commission will independently investigate the Bank Century case through carefully observed legal process and will base the case purely on legal facts.          However, the anti-graft agency chief did not provide the names of those who will be summoned and questioned as witnesses. The summoning of witnesses will be carried out after the commission completes its questioning of those involved in the alleged corruption case in the procurement of traffic-police driving simulators on Monday.         "We should not speculate on the Bank Century case because we have not yet examined the witnesses and suspects. So let us hope that after the examination of the driving simulators' case on Monday, we can begin questioning witnesses in the Bank Century case," Abraham Samad stated on Tuesday.

SMALL FIRMS NEED TO NEGOTIATE STANDARD WAGE SYSTEM

By Andi Abdussalam

Jakarta, Nov 27 (ANTARA) - Workers in Indonesia are staging rallies because some companies have not paid the workers' wages as per the regulations.          Companies that have not paid their workers standard salaries are indeed small-scale firms. This is because small companies are still struggling to build their own business amidst the world economic crisis.          Substandard salary is the main factor that forces workers to stage rallies to express their frustrations and demands. That is why many workers who work in large firms do not take part in demonstrations.          According to the head of the Capital Investment Coordinating Board (BKPM), Chatib Basri, multinational companies have been able to pay their workers based on the current regulations. They are prepared to pay workers above the minimum wage requirement, and they are ready to hold dialogue sessions with workers.          The problem arises when small and medium scale companies are not able to pay the workers, as per the regulations. This forces workers to stage rallies. Some even force their colleagues who have been paid the right amount to join them, Chatib said.

REFUND OF ANTABOGA'S FICTITIOUS SECURITIES REMAINS UNCLEAR

By Andi Abdussalam

Jakarta, Nov 26 (ANTARA) - After the Supreme Court issued a ruling on Friday, prohibiting Bank Mutiara from giving refund to its customers, it is uncertain as to whether investors who put money into PT Antaboga Delta Sekuritas will ever be compensated.        "As per the verdict passed by the Supreme Court, Bank Century (Bank Mutiara) does not have to pay Wahyudi Prasetio, an Antaboga investor in Surabaya, East Java, who invested Rp66  billion in Antaboga's fictitious securities," said Mahendradatta, Bank Mutiara's lawyer, on Monday.        In its previous ruling on another case concerning Antaboga's investors, the Supreme Court, in its verdict on April 19, 2012, had ordered Bank Century (Bank Mutiara) to give a refund amounting to Rp35.437 billion to 27 former Antaboga's investors in Solo, Central Java.         Bank Mutiara's lawyer, Mahendradatta, has urged Antaboga's investors to respect the Supreme Court's (MA) decision, prohibiting the bank from giving a refund to Antaboga's investors.         Mahendradatta said that Wahyudi's case is similar to the cases of 27 investors in Solo. Hence, the previous MA decision for the 27 investors in Solo should be automatically cancelled, in view of the latest MA decision on Friday, November 23, 2012.

CPO FACING LOW PRICES AND HIGH IMPORT DUTY

By Andi Abdussalam

Jakarta, Nov 25 (ANTARA) - Indonesian crude palm oil (CPO) stakeholders hope that the government will take necessary steps to overcome falling prices of CPO in the world market and lobby France which is considering raising CPO import tax by about 300 percent.   After oil, CPO is Indonesia's export mainstay product which could affect Indonesia's foreign exchange earning if its price continues to fall, which this year has been recorded at the average of US$900 per ton, lower than earlier prediction at US$1,100 per ton.          While facing a lower price in the world market, CPO exports, of which Indonesia is the world largest producer with a production of 24 million tons per annum, are also facing a high tax threat in France.         With regard to this condition, the Indonesian Palm Businessmen Organization (GAPKI)  has urged the Indonesian government to lobby against the proposed hike of CPO import tax to 300 percent in France.          "The government should prevent this new regulation from coming into effect by urging French officials not to boost the import tax and help remove the stigma on our CPO as unhealthy and environmentally unfriendly products," GAPKI executive director Fadil Hasan said last week.

GOVT TIGHTENING USE OF SUBSIDIZED FUELS

By Andi Abdussalam

Jakarta, Nov 25 (ANTARA) -  In an effort to maintain its quota, the government is tightening subsidized fuel consumption by taking several measures, including limiting certain vehicles' fuel consumption, launching a subsidized fuel-free day and introducing a new payment system.          The government has previously set the quota of subsidized fuel consumption at 40 million kiloliters in the 2012 state budget but due to increasing consumption it has to raise the quota to 44.04 million kiloliters in the 2012 revised state budget.          Yet the upward trend in subsidized fuel oil consumption has led oil officials to predict that consumption would reach 45.373 million kiloliters at the end of 2012, exceeding the quota.              "We predict consumption will exceed the quota (as set in the revised budget) by three percent at the end of the year," Head of Downstream Oil and Gas Regulator (BPH Migas) Andy N Sommeng said recently.

CHAMBER TO ASSIST WITH RATTAN EXPORTS TO EUROPE

By Andi Abdussalam

Jakarta, Nov 24 (ANTARA)  Indonesia was a major exporter of raw rattan in the past, but since last year it has stopped exporting raw rattan and encouraged rattan-made production for exports in an effort to obtain added value from its rattan resources.  Regarded as the world's largest rattan exporter, Indonesia's rattan resources are available in tropical forests across ten provinces. One of the rattan producing provinces is West Sulawesi, where both local and central governments are planning to develop rattan industries to support the country's export target for rattan-made products.          The development of rattan and rattan industries in West Sulawesi is expected to help overcome scarcities of raw materials. The Association of Rattan Furniture and Handicraft makers(AMKRI) previously complained about difficulty in securing rattan.    Association chairman Soenoto said furniture producers operate far below  their installed capacity because of difficulties in securing raw rattan.

LEGISLATORS THREATEN TO TAKE ACTION AGAINST POWER FIRM

By Andi Abdussalam

Jakarta, Nov 15 (ANTARA) - Indonesian legislators have threatened to take action against state-owned electricity company PLN for its inefficient operations, which have resulted in huge losses to the state, by getting the matter investigated by the Corruption Eradication Commission (KPK) or the House's special inquiry committee.      The proposal to report the issue to the KPK was made by lawmaker Sukarnotomo of the House of Representatives (DPR)'s Commission VII on energy affairs.      His DPR colleague Dewi Aryani called for the appointment of an inquiry committee to investigate the PLN case which, according to a State Audit Board (BPK) report, caused the state losses of Rp37.6 trillion.      Both legislators made their proposals during a hearing last Tuesday before the House Commission VII and State-owned Enterprise Minister Dahlan Iskan, who was the PLN president director when the problems began in 2009-10.

BP MIGAS DISSOLUTION NOT TO DISRUPT OIL BUSINESS

By Andi Abdussalam

Jakarta, Nov 14 (ANTARA) - The government has given the assurance that the dissolution of BP Migas,  the upstream oil and gas regulator, by the Constitutional Court (MK) on Tuesday would not disrupt oil and gas business activities, and all work contracts will remain effective.   Oil and gas activities, including exploration and exploitation, will not be disrupted in the wake of the Constitutional Court's ruling that led to the dissolution of BP Migas, according to Coordinating Minister for Economic Affairs Hatta Rajasa.          The chief economic minister said that the government had decided to establish a new unit to regulate the nation's upstream oil and gas sector, after BP Migas was dismantled by the MK.   "The new Unit for the Implementation of Upstream Oil and Gas Activity will be overseen by the Ministry of Energy and Mineral Resources. This is in accordance with the Constitutional Court's decision," he added.           Hatta stated that oil and gas activities will not be disrupted because the Ministry of Energy and Mineral Resources will take over the duties of the erstwhile oil and gas regulatory agency and continue the exploration and production activities.

MALAYSIA URGED TO HANDLE FAIRLY GANG-RAPE CASE AGAINST INDONESIAN MIGRANT WORKER

 By Andi Abdussalam

    Jakarta, Nov 12 (ANTARA) - Malaysia has to take immediate steps to process fairly an alleged gang-rape by three Malaysian policemen of an Indonesian migrant worker in Pulau Penang so that the case would not trigger public outrage in Indonesia.  Besides, the Indonesian government should also monitor the handling of the case to ensure that the perpetrators would be prosecuted, and if they are  found guilty, the should receive the severest punishment.
        "The Indonesian government should provide assistance and monitor the case because the victim is an Indonesian citizen. The monitoring by the government is needed to ensure that the rapists are taken to court," Hikmahanto Juwana, an international law observer of the University of Indonesia (UI), said here on Monday.
         The latest case could trigger another public outrage in Indonesia like what happened in the past when incidents such as maid abuses, extortion, violence and shooting  befell Indonesian migrant workers or citizens in Malaysia.

RI TO BOOST ROLE OF ENTREPRENEURS

By Andi Abdussalam

Jakarta, Nov 13 (ANTARA) - In an attempt to boost economic growth and increase employment, the government has plans of increasing the number of entrepreneurs in the country, which currently stands at 1.56 percent.  Considering that entrepreneurs are the key drivers of the economy, the government has plans to increase the number by 5 million in the next ten years, or by 500 thousand every year.          "From 2015, we will increase the number of entrepreneurs by 500 thousand a year, so that in 2025, the number of additional entrepreneurs in Indonesia reaches five million," the BI governor said in his keynote address at the opening of the Global Entrepreneurship Week, on Monday.

RI TRYING TO REBUILD NORMAL TRADE TIES WITH EUROPEAN UNION

By Andi Abdussalam

Jakarta, Nov. 10 (ANTARA) - Indonesia whose trade with the European Union is expected to touch about one percent this year as a result of the global financial crisis, hopes it will be able to boost its trade in the region going forward.          Even as its trade growth with Europe declines this year, Indonesia is convinced that the year 2012 would lay down the basis for boosting trade with the region next year and in the future.            There have been positive indicators from a number of European markets such as the Netherlands, Germany, Nordic states and Eastern Europe, where Indonesia's exports will normalize in the future, Trade Minister Gita Wirjawan said.          He added that if the global crisis had not hit countries in Europe, Indonesia would have been able to increase its trade with these countries by about 5 percent to 10 percent. "But due to the economic crisis, trade between Indonesia and the European Union was only expected to grow by about zero to one percent," the minister said, while inaugurating the  EU-Indonesia Business Dialogue (EIBD) in Nusa Dua in Bali on Thursday.

RI CAN SERVE AS ROLE MODEL FOR ISLAMIC DEMOCRACY

By Andi Abdussalam

Jakarta, Nov. 10 (ANTARA) - As the world's largest country populated with Muslims, Indonesia with its population of about 240 million, has served as a role model for Islamic democracy since it embarked on democratic reforms in 1998. Indonesia is now promoting democracy not only at home but also overseas by initiating an annual global democracy forum at its tourist resort province of Bali.          Entitled the "Bali Democracy Forum" (BDF), the event, which was aiming to develop democratic values, has been held five times since 2008. The fifth BDF was held on Thursday and Friday, where delegates from 83 countries shared experiences and ideas on how to develop democracy.         "Every year, BDF must lead to a concrete outcome, which does not remain just on paper. Every year, we reaffirm our understanding of democracy through the exchange of ideas and democratic values of various countries," President Susilo Bambang Yudhoyono said during the inauguration of the event at the Bali International Convention Centre (BICC) on Thursday.

INDONESIAN FIRMS THREATEN TO STOP PRODUCTION

By Andi Abdussalam

Jakarta, Nov 8 (ANTARA) - Even as the government makes efforts to correct the country's labor system, which has caused trouble between workers and employers so far, Indonesian firms threatened on Wednesday to stop production if the government did not  provide a secure labor environment.  Various trade unions took out rallies in streets and company premises to demand better welfare and the termination of the outsourcing-recruitment system. These rallies often turned anarchic and disturbed the operations and production of companies.          As a result, many companies suffered losses and are considering relocating their factories overseas. At least six foreign companies closed down. Companies under the Indonesian Businesses Association (Apindo) have threatened to stop production if this problem remains unresolved.

INVESTMENT OUTSIDE JAVA REQUIRES INFRASTRUCTURE DEVELOPMENT

By Andi Abdussalam

Jakarta, Nov 7 (ANTARA) - The acceleration of infrastructure development, particularly through the construction of routes such as the Trans-Sumatra highway and Trans-Sulawesi railway, is a must to implement the government's plan of boosting investment outside Java Island.          The Capital Investment Coordinating Board (BKPM) plays a crucial role in evenly distributing investment and speeding up infrastructure development outside Java, particularly in Sumatra and in the eastern regions of the country.

MINISTER REPORTS ALLEGED EXTORTION BY LAWMAKERS TO HOUSE

By Andi Abdussalam

Jakarta, Nov 5 (ANTARA) - The House of Representatives (DPR) was called on Monday to follow up on a report by State Enterprise Minister Dahlan Iskan about lawmakers who had allegedly extorted money from state-owned firms.           "The ball is now in the hands of the Ethics Council of the House of Representatives. If the House is serious about improving its image, its ethics council should follow up on the report of the state-owned firms," Budi Purnomo Karjodihardjo, coordinator of BUMN Care, a state-owned firm watchdog, said here on Monday.

RI TO FACE RISING NUMBER OF ELDERS AMID DEMOGRAPHIC BONUS

By Andi Abdussalam
Jakarta, Nov 2 (ANTARA) - Indonesia's elderly population is set to increase in number within the next 20 to 30 years, but experts believe that the country will have the benefit of a larger number of people in at productive ages.  Therefore, the government should initiate effective policies to take advantage of the demographic 'bonus' and to handle its senior citizens properly.          Until now, budget constraints have meant that the number of neglected senior citizens in Indonesia is rather high at eight percent of the country's population of 237.6 million people. "Indonesia now has 28 million senior citizens. Around 1.8 million of these or about eight percent of the population are neglected," director of the Social Affairs Ministry for Senior Citizens Services, Yulia Suhartini said here on Wednesday.