NUMBER OF POOR IN INDONESIA COULD POTENTIALLY INCREASE

by Andi Abdussalam

Jakarta, Sept 25 (Antara) - Records of the Central Bureau of Statistics (BPS) reveal that Indonesia was home to some 28.28 million poor people last March, higher than the 28.17 million recorded in the same period the year before.          BPS Chief Suryamin said recently that the rise in the number of poor people could be attributed to the losses incurred by those working in the agricultural sector as the harvest season had been delayed due to unfavorable climatic conditions.          A World Bank reported that  the rate of reduction of poverty and inequality in Indonesia had  declined, and was only 0.7 percent in 2012-2013. This was the lowest seen in the last decade.          The World Bank has also reported that around 68 million people in Indonesia almost fell in the "poor" category as their income was marginally higher than that of those in the "poor families" category.          According to Rizal Ramli, who was the Chief Economic Minister during Abdurrahman Wahid's term as president, there could be a further rise in the number of the poor if the incoming government raised the price of subsidized fuel.         Ramli added that in addition to these 28.2 million, another 10 million people nearly fall in the "poor" category.  If the price of subsidized fuel is raised, it would lead to a hike in the cost of transportation and commodities as well as the inflation rate, leading to another rise in the number of poor.      "If the next government raises fuel prices, the number of poor people in Indonesia will most likely rise to 38 million," the former Chief Economic Minister stated.

FATE OF GREEN CAR PROGRAM DEPENDS ON NEXT GOVERNMENT

By Andi Abdussalam

Jakarta, Sept 24 (Antara) - About a year ago, the government's low-cost green car (LCGC) production program became a hot discourse following the rejection of Jakarta Governor Joko Widodo (Jokowi) who said it would worsen Jakarta's already serious traffic gridlock.          He wrote to Vice President Boediono expressing his objection to the production of LCGC cars in Jakarta. Yet the government decided to go ahead with its inexpensive car production hoping it would help boost automotive exports and reduce the use of subsidized fuels.          Now, Jokowi has won the presidential race and will be installed as the president of the country. Will the next government under Jokowi scrap the LCGC program? How will automotive manufacturers who have produced LCGC cars respond to it if the program is scrapped?     "Businesses are flexible. They flow like water. If here the tap is tightened, they will flow to other channels," Gaikindo Secretary General Noegardjito said here on Wednesday.          He said that he would not make too many comments with regard to politics, including the possibility of the LCGC program to be stopped by the next government under the Joko Widodo - Jusuf Kalla administration.          "We will follow the (next) government if it scraps the program. We have been manufacturing LCGC cars also because we are following the (current) government's program," he said.

SOME PARTS OF INDONESIA FACE WATER CRISIS

By Andi Abdussalam

Jakarta, Sept 23 (Antara) -  Residents of some regions and provinces in Indonesia have begun to face water crisis as the water volumes of springs, wells, rivers and lakes began to decline as a result of drought.          The volume of the Cisadane River in Tangerang for example, has begun to drop drastically in the past few days.         "The condition of the Cisadane River's water volume is categorically critical, though it still looks normal. Yet, its volume continues to decline," Sumarto, the head of Tangerang's Bendung Sluice 10 of the Cisadane River, noted on Monday.          The Cisadane River is one of the main sources of water for industries and water companies which distribute water to consumers in Tangerang, Banten province.          Provinces which have been affected by water crisis as a result of drought this year included South Kalimantan, East Nusa Tenggara (NTT), Central Java and West Sumatra. According to the National Disaster Mitigation Agency (BNPB), twenty provinces in Indonesia have been affected by the drought due to the current dry season and low rainfall.          To deal with the situation, the BNPB has allocated Rp50 billion for relief operations in the regions affected by drought, including providing water tanks and pumps as short-term measures, BNPB spokesman, Sutopo Purwo Nugroho said.

POLICY MIX NEEDED TO CONTROL INFLATION

By Andi Abdussalam

Jakarta, Sept 20 (Antara) - President-elect Joko Widodo, who will be installed on October 20, has said his government will increase the prices of subsidized fuel to bring down the quantum of subsidy burdening the state budget.          Observers predict that fuel price hike will trigger inflation, otherwise supposed to stay this year in the range of 4.5 plus minus one percent.          Bank Indonesia (BI), the Indonesian central bank, however said that it was not worried by the effect of any possible rise in inflation.          "No need for too much concern (over this). It would be only a short term effect. In two or three months, conditions would be back to normal again," BI Governor Agus Martowardojo said.          Agus said the government needs to raise the prices of subsidized fuels to keep the vital fiscal stats in a healthy condition. "Price adjustment is needed, considering the fiscal condition," he added.          Bank Indonesia hoped that the prices of subsidized fuels would be raised before the US central bank, the Fed, begins to raise its interest rate, he said. The Fed Fund rate is expected to be raised in mid 2015.      Bank Indonesia will implement a stringent monetary policy by the end of 2014 to achieve the inflation target, improve the current account deficit, and will try to anticipate the impact of the global economic policies.

BI CALLS FOR FUEL PRICE HIKE TO PREVENT CAPITAL OUTFLOW

By Andi Abdussalam
Jakarta, Sept 20 (Antara) - Bank Indonesia (BI) has called on the next government to increase subsidized fuel prices before the US Federal Reserves raises its fund rate to prevent capital from flowing out of the country.          "It would be better if prices are raised in the fourth quarter. But the increase must not go beyond February 2015," BI Senior Deputy Governor Mirza Adityaswara said.          The deputy governor of BI, the central bank, said a price increase of subsidized fuels would reduce the risk of capital flight overseas, as it cuts the country's deficit.          "Indonesia is facing the risk of capital outflow by foreign investors. The government should prevent this by improving the condition of its deficit. In the short-term, this could be done by cutting fuel subsidies," said Mirza Adityaswara in Jakarta on Friday, Sept. 19.          He added that Indonesia still relies on foreign capital flow, so it should prevent capital outflow that could trigger turmoil in the financial markets.  The faster fuel prices are raised, the better it will be, he said.

LIMITATION OF DIESEL OIL SALE AFFECTS FISHERMEN

By Andi Abdussalam

Jakarta, 19 (Antara) - State-owned oil and gas company Pertamina's move to limit the sale of subsidized diesel oil has affected fishermen in North Jakarta's Muara Angke Traditional Fishing Port and cut their fish production by about 50 percent.          Some fishermen at Muara Angke have, in the past two months, not taken out their boats for fishing due to scarce diesel oil. Some fishing vessels have had to wait for one month in queue to receive subsidized diesel fuel.          Pertamina has been limiting the sale of its subsidized diesel oil in order to economize on the subsidized quota which, if its sale is not limited, will run out by December 6, 2014.          Fishing vessels have to wait in queue up to one month since Pertamina limited the sale of its subsidized diesel oil last August.          "This happens because the volume of diesel oil distributed to us is less than the need of fishermen at Muara Angke," Bagus Rudiyono, manager of Fishermen's Fuel Refilling Stations (SPBBN) in Muara Angke, said on Thursday.

DRUG MONITORING AGENCY TO PROBE CIGARETTE MANUFACTURERS

By Andi Abdussalam

Jakarta, Sept 18 (Antara) - The Drug and Food Monitoring Agency (BPOM) will investigate cigarette manufacturers that have allegedly violated regulations by not displaying pictorial health advisories on cigarette packets.          Following up on a report by activists claiming that more than 50 percent of cigarette manufacturers surveyed did not display pictorial health warnings on their cigarette packets, the BPOM will begin monitoring packages.          "We will cooperate with police in carrying out the examinations. If they are found guilty of violating regulations, they will be acted upon based on the law in force," Elly Mutiawati of the BPOM said on Wednesday.          She noted that the BPOM has signed a memorandum of understanding on the supervision of food products and other goods, including cigarettes, which contain chemical substances and harm public health.          "A comprehensive supervision and investigation should be carried out first, before taking actions against violators," Elly said.

NEXT GOVT CALLED ON TO DEVELOP NATION'S CACAO POTENTIAL

By Andi Abdussalam
    
    Jakarta, Sept 17 (Antara) - Cocoa stakeholders from regions that produce cocoa across Sulawesi Island had gathered in Makassar for a three-day meeting since last Sunday to observe the Indonesian Cocoa Day and discuss cocoa's quality improvement and development.
        Cocoa businesses, government officials, and farmers' representatives, who attended the meeting in South Sulawesi provincial capital Makassar, had come from cocoa-producing provinces of South Sulawesi, West Sulawesi, Southeast Sulawesi, and Central Sulawesi. These provinces contribute about 70 percent to the country's cocoa production of about 800 thousand tons per year.
         "The aim of the meeting is to seek a formula on how to increase the quality of our growers' cacao products," Director General of Quality and Standard Control of the Ministry of Agriculture Gardjita Budi stated in Makassar on Tuesday.
         Minister of Agriculture Suswono, meanwhile, stressed the importance of improving the quality of the country's cocoa, which is one of the nation's mainstay products. He supported the activities of the Cacao National Movement (Gernas), which aimed at helping improve cacao plantations and the quality of cocoa production.
        "Indonesia is the world's third largest cocoa producer and, therefore, this mainstay product needs special attention from the government. The next government has to support the Gernas," Suswono said in Makassar on Tuesday while speaking on the sidelines of the Cacao Day, which had been highlighted with celebrations since Sunday.

INDONESIAN HAZE BEGINS ESCALATING TO NEIGHBORING COUNTRIES

By Andi Abdussalam

Jakarta, Sept 16 (Antara) - At least eight provinces in Indonesia currently have an increasing number of hotspots producing smoke from forest and land fires, causing disturbance to neighboring countries.          "Hotspots detected by MODIS satellite in the provinces of Central, West, and South Kalimantan; South Sumatra; Riau; Bangka-Belitung; Jambi; and Lampung have been predicted to increase further," Information Data Center and Public Relations Head of the National Disaster Mitigation Agency (BNPB) Sutopo Purwo Nugroho reported in Jakarta on Monday.          Haze produced by land and forest fires in Sumatra, particularly Riau and South Sumatra provinces, is blown by the winds to Singapore and some parts of Malaysia, polluting the atmosphere of the neighboring countries.          "In Sumatra, the winds have been blowing in the north and northeast directions. Smoke from South Sumatra has spread to Riau Province. Smoke from Riau and South Sumatra has blown even to Singapore, so that the Pollution Standards Index in Singapore and some parts of Malaysia have increased to a moderate level," Sutopo Purwo Nugroho told Antara.

INDONESIA CONVINCED TO MEET OIL LIFTING TARGET

By Andi Abdussalam

Jakarta, Sept 15 (Antara) - Indonesian oil officials are optimistic that the government will meet its oil lifting target this year, although it fails to meet the target in the first half of 2014.          The government has set an oil lifting target of 818 thousand barrels per day (bpd), yet in the January - June 2014 period, Indonesia was only able to lift 788 thousand bpd.          The target was not achieved because there were constraints such as production disturbance in the first quarter and the decline in the production capacity of a number of wells.          However, Acting Chief of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas) Johannes Widjonarko expressed optimism that SKK Migas  will achieve the oil lifting target of 818 thousand bpd as outlined in the revised 2014 state budget.          "Although some constraints exist, we are confident that the target will be achieved," Widjonarko said recently.

JOKOWI READY TO RAISE FUEL PRICES

By Andi Abdussalam
Jakarta, Sept 14 (Antara) - While a group of students in Malang, East Java, staged a protest against his plan, President-elect Joko Widodo said in Karanganyar, Central Java, he will go ahead with the plan to raise fuel oil prices.          He said he was ready to become unpopular with regard to his plan to raise fuel price and to reduce fuel subsidy that had been provided so far by the government and burdened the state budget.          "We (the consumers) have enjoyed the subsidy for too long. And this is dangerous if the government continues to provide us with it from time to time," Joko Widodo, who is better known as Jokowi, said  in front of his supporters and volunteers in the Jati Village Hall,  Karanganyar District, Central Java, on Friday.          He said that fuel subsidy is a heavy challenge to be faced because it is too big but about 71 percent of the subsidy is enjoyed by people who owned private cars. "The fuel subsidy will be cut and be given to fishermen, farmers, irrigation development, health services and infrastructure facilities," stated Jokowi.

JOKOWI CALLED ON TO CRACK DOWN ON OIL MAFIA

By Andi Abdussalam
Jakarta, Sept 14 (Antara) - President-elect Joko Widodo, better known as Jokowi, is urged to assign clean ministers from professional circles and fight against oil and gas mafia which controls the country's oil business.        "We hope people appointed as ministers by Jokowi are clean figures from professional circles who have integrity and capability," Director of Indonesia Monitoring Center (IMC) A.H. Wakil Kamal told a press conference on Friday.         Kamal said that Jokowi should appoint clean people to fill in ministerial posts in the ministry of energy and mineral resources, the ministry of state-owned enterprises and other ministries on economic affairs.         "These important positions should be filled in with professionals not with people coming from political parties. These ministries are prone to being used as sources of political funds," he said.         Jokowi should keep distance from those allegedly involved in oil mafia in an effort to create a clean government. Oil mafia operating in the country so far should instead be eliminated.

DIRECT REGIONAL HEADS' ELECTION IS HIGH COST POLITICS

by Andi Abdussalam

Jakarta, Sept 13 (Antara) - Many are opposed to the draft law, currently being deliberated by the House of Representatives (DPR), for electing regional heads through an indirect election.           At the same time, direct election is also being termed a costly political affair in terms of resources required.          "Electing a regional head through a direct election will need huge funds, but for the sake of preserving democracy in the country, it is imperative to do so," the spokesman of the General Elections Commission (KPU) for East Nusa Tenggara, Lodowyk Frederik, said in Kupang on Friday.          However, the House of Representatives is currently deliberating the bill which, if endorsed, will entrust the job of electing these regional heads to the Regional Legislative Assembly (DPRD).          Frederik said when an election was held to choose the Mayor of Kupang City in 2012, it had cost some Rp16 billion. The funds were used to finance various activities and logistics to conduct the elections.

INTERFAITH MARRIAGE SPARKS CONTROVERSIES

By Andi Abdussalam
Jakarta, Sept 13 (Antara) - Controversies over interfaith marriages, which are not recognized by the state based on the matrimonial law, are now rising amid a judicial review filed by five petitioners with the Constitutional Court (MK) against the ruling.          Five graduates and students from the University of Indonesia have filed a review request with the MK against Article 2 point 1 of Marriage Law No. 1/1974, which they believe is against the constitution.       The petitioners are of the view that the presence of Article 2 point 1 of the law is a threat to their constitutional rights and a violation of the right of religious freedom.          The article stipulates that a marriage is only legitimate if it has been performed according to the laws of the respective religious beliefs (of the marrying couple).

PEOPLE MUST EXERCISE CAUTION WHEN CONSUMING DRUGS

By Andi Abdussalam
Jakarta, Sept 12 (Antara) - People must be careful when consuming herbal medicines and drugs, as some already in circulation are illegal and contain inappropriate doses of chemical substances, which are dangerous to health.          The Food and Drug Monitoring Agency (BPOM) called on the public to purchase medicines in licensed drug stores in order to guarantee that the drugs they purchase are legal products.          Of the 3,656 illegal products confiscated by the BPOM during its operations in the June-August 2014 period, a total of 1,520 items were illegal traditional medicines, particularly herbal medicines.          Many violations have been committed, including mixing raw materials of medicines with the raw materials of herbal medicines and printing fictitious license numbers on the package of the products and circulating or selling them to the public illegally.         "The results of laboratory tests have revealed that the confiscated traditional medicines contained drug chemicals, such as paracetamol, dexamethasone, fenilbutason, and sildenafil," BPOM Head Roy A. Sparringa stated on Thursday.

PERTAMINA AIMS TO ACHIEVE VIABLE GAS PRICE BY MID-2016

By Andi Abdussalam

         Jakarta, Sept 10 (Antara) - State-owned oil and gas company Pertamina has laid a gradual price increase roadmap for its liquefied petroleum gas (LPG) in an effort to reach economically viable gas price at about Rp11,944 per kilogram by mid-2016.
         Based on the roadmap, Pertamina will gradually increase the price for consumers of LPG in 12-kilogram cylinders by Rp1 thousand per kilogram on July 1, 2014, and by Rp1,500 per kilogram during the first and second semesters of 2015 and 2016.
         However, Pertamina had to put on hold its plan to raise LPG price on July 1, 2014, because it coincided with the fasting month of Ramadhan and Idul Fitri festivities during which the demand for LPG rises. 
    The oil company again postponed another plan to raise it on August 15, 2014, after it received a letter from the Coordinating Ministry for Economic Affairs Chairul Tanjung asking the company to put price rise on hold.  

RI NEEDS TO WIN GLOBAL MARKET FOR ITS HERBAL PRODUCTS

Andi Abdussalam

Jakarta, Sept 9 (Antara) - Owning about 7 thousand varieties of medicinal plants, Indonesia has a great potential in tapping overseas market for its herbal medicines and herbal-based cosmetics products.          Indonesia has at least 3 thousand types of herbal medicines, locally known as "jamu." Jamu has long been used as a popular alternative treatment in Indonesia for various health concerns.        Besides being used to produce jamu, Indonesia's medicinal plants are also used to produce herbal-based cosmetics.          About 75 percent of the cosmetics products sold domestically are herbal based. Herbal medicines and cosmetics are local products that have a great potential to win global markets. Moreover, in recent years, Indonesia's cosmetics exports have continued to increase.          Indonesia's cosmetics exports in 2012 had increased to Rp9 trillion, threefolds of that in the previous year, which stood at Rp3 trillion. Domestic sales also rose to Rp11.2 trillion in 2013, up from Rp9.7 trillion in 2012.          Pharmaceutical expert Prof. Edi Meiyanto of the Yogyakarta-based Gajah Mada University stated that all sides, particularly those concerned with the issuance of regulations, need to support efforts of widening the market zones of herbal medicines and cosmetics.

RI WORKS WITH GLOBAL PARTNERS TO DEVELOP MARINE SECTOR

By Andi Abdussalam

Jakarta, Sept 9 (Antara) - With a blue economic concept, Indonesia is developing its marine and fisheries sectors through global partners to face global food challenges and free trade era.          "The world is currently facing a food security challenge in feeding its population which by 2050 will reach about nine billion.   Indonesia is considered consistent in accelerating the development of its national marine and fisheries sectors in the framework of blue growth," Marine Affairs and Fisheries Minister Sharif Cicip Sutardjo said on Monday.          According to data obtained from the World Bank and the Food and Agriculture Organization (FAO), it is estimated that by the year 2030, almost two-thirds of the consumption of fishery products in the world will come from the fishery sub-sector.          The Asian region, including South Asia, Southeast Asia, China, and Japan, are projected to meet 70 percent of the global fish demand.          In response to this issue, Indonesia, the World Bank and Food and Agriculture Organization (FAO) are holding a workshop on Blue Growth Global Alliance and Food Security to work out a work plan to be forwarded to the "6th Annual BlueTech and Blue Economy" Summit in November this year.

INDONESIAN CLERICS TO VERIFY PLANS TO REMOVE PROPHET TOMB

By Andi Abdussalam

Jakarta, Sept 6 (Antara) - A delegation of scholars and clerics from the largest Indonesian Muslim organization, Nahdlatul Ulama (NU), will travel to Saudi Arabia to ask for clarification about reports that the Prophet Muhammad's tomb is to be removed.          "The team will meet and coordinate with Muslim clerics and the government of Saudi Arabia. The team will verify the truth of the news on the plan to relocate the tomb of the Prophet, an issue that has always surfaced and raised concerns of Muslims all over the world," said Chairman of the National Awakening Party (PKB) Muhaimin Iskandar in a written statement received by Antara on Friday.          The PKB, as part of the representatives of the Ahlussunah Wal-Jamaah Sunni Muslims in Indonesia, will also seek official statements and assurances from the Government of Saudi Arabia that it would never remove the tomb of the Prophet Muhammad.          The delegation of Muslim clerics and scholars will be sent by the Muslim-based political party PKB.          "The official Statement of the Government of Saudi Arabia is vital to end debate on grave removal plans of the tomb of the Prophet. If the Government of Saudi Arabia does not immediately issue an official statement about the plans to remove the tomb, then it would invite uncertainty and create seeds of conflict among Muslims all over the world," Muhaimin said.

PROSPECT OF INDONESIAN CPO REMAINS BRIGHT

 By Andi Abdussalam 

          Jakarta, Sept 6 (Antara) - Indonesian oil palm farmers should not worry about the current fall in the crude palm oil (CPO) prices in the global market, as the commodity can be absorbed to produce biodiesel domestically.
         As the world's largest CPO producer, with plantation covering some 7.4 million hectares, Indonesia supplies about 44 percent of the world's CPO requirements. Domestic use of raw material for diesel oil production can reduce world supplies and thus leading to price hike in the global market.
         After all, the global need for CPO continues to increase. According to Fadhil Hasan, executive director of the Indonesian Palm Oil Producer Association (GAPKI), the global demand for the product will increase next year benefiting Indonesia.
         So, farmers should not worry about the decline in prices. Moreover, Indonesia is currently launching a program to use CPO as raw material for the production of alternative energy to replace its depleting fossil fuels and to reduce fuel imports.

MUSLIMS WARNED OF EFFORTS TO REMOVE PROPHET MUHAMMAD'S TOMB

 By Andi Abdussalam
          Jakarta, Sept 4 (Antara) - A noted Indonesian Muslim cleric has forewarned the Muslim communities of possible efforts to disunite and create unrest among the Islamic world through plans to remove the Prophet Muhammad's tomb to an anonymous site.
         "It is possible that the proposal to remove the tomb is a maneuver launched by a certain group to create unrest among the Muslim communities," Hasyim Muzadi, former general chairman of Indonesia's largest Muslim organization Nahdlatul Ulama (NU) and secretary general of the International Conference of Islamic Scholars, said on Wednesday.
         He made the remarks in response to a report by London-based The Independent on Monday, September 1, 2014, on a proposal by a leading Saudi academic Dr Ali bin Abdulaziz al-Shabal of Imam Muhammad ibn Saud Islamic University in Riyadh to remove the Prophet's grave.
         The Saudi academic had made the proposal through a 61-page document, which calls for the removal of the Prophet Mohammad's remains to the nearby Al-Baqi cemetery, where it will be interred anonymously.

RI MUST BE PREPARED TO COMPETE IN BORDERLESS LABOR MARKET

By Andi Abdussalam

Jakarta, Sept 3 (Antara) - As a populous nation of about 240 million, Indonesia has to prepare its human resources to face stiff competition in a borderless labor market, particularly in the era of the ASEAN Economic Community (AEC).          Although it is rich in human resources, Indonesia has yet to improve their quality and equip them with competence-based certifications or else, as a large county with rich natural resources, it will only become a manpower market for other nations.          Even educated workers will face tough competition, let alone if the education system fails to be at par with the skills required in the job market. Indonesia continues to churn out new workforce, including those with adequately high education degrees.          Yet, the question arises whether the country's human resources are now able to face competition in the global market, or at least in the AEC, which will come into effect at the end of 2015.          Economic analyst Aviliani of the Institute for Development of Economics and Finance (Indef) expressed concern whether Indonesian workers will now be able to face the borderless manpower market in the era of global competition.

SOME HOPE NEXT GOVT TO NOT RAISE FUEL PRICE

By Andi Abdussalam
Jakarta, Sept 2 (Antara) - Amid determination of president-elect Joko Widodo (Jokowi) to raise subsidized fuel price that has burdened state budget, some still believe this situation will not occur, as it will affect the livelihood of the people.          After all, the Indonesian Democratic Party of Struggle (PDIP)--which will become the ruling party after the current government ends its tenure in October--has always opposed the government's plans to increase subsidized fuel prices in the past.          Therefore, Jokowi should be consistent with the stance taken by PDIP, which had always rejected President Susilo Bambang Yudhoyono's plan to increase subsidized fuel prices.          "Although it is still in discourse, it has served as a challenge for Jokowi and PDIP to try to be consistent with the argument that they have raised over the last ten years," stated Lucky Djani, the director of Strategic Initiative Institute, on Monday.          Jokowi, who had paired with Jusuf Kalla and won the July 9 presidential election, will be installed as the new president on October 20, 2014, succeeding President Susilo Bambang Yudhoyono.