GOVT TO FINISH CALCULATION OF NEWMONE DIVESTMENT

 By Andi Abdussalam

Jakarta, May 19 (ANTARA) - The government is resolved to finish calculating the value of PT Newmont Nusa Tenggra (NNT) assets this week so that an agreement can be reached with the giant mining firm on the price at which it is to acquire MNT shares this month.

        "The government team will calculate the value of the company's mineral reserves, assets and financial conditions. We will use the result of our calculation as a reference in negotiations with NNT," Director General for Mineral Resources, Coal and Geothermal Bambang Setiawan said here on Tuesday.

        NNT, which operates the Batu Hijau mine, Indonesia's second-largest copper mine located in Nusa Tenggara, is now under a divestment process of 31 percent of its shares where 3 percent must be offered to the government for 2006, and 7 percent for each year from 2007 though 2010.

        The government and NNT have reached an agreement for the divestment of 3 percent worth US$109 million of the company's share for 2006 with assets valued at US$3.63 billion, and 7 percent worth US$282 million for 2007 with assets accounting for US$4.03 billion.

        However both sides are still negotiating the divestment of 7 percent of NTT stake for 2008 and 2009 respectively. In order to determine the 7 percent divestment prices for 2008 and 2009, the government and the company have to agree the values of its assets.

        NNT has offered the government a seven percent divestment price of US$426 million for 2008 with assets worth US$6.09 billion, and a seven percent divestment price of US$348 million for 2009 with assets worth US$4.97 billion.

        The government team has met with NNT twice to discuss the divestment price of the mining firm. In the first meeting on April 24, 2009, NNT foreign stakeholders claimed the company had assets worth a total of US$4.97 billion in 2009.

        With assets worth US$4.97 billion, the price of seven percent of the stake in the divestment of the firm in 2009 would reach US$348 million. This figure still constituted a proposal by NNT.

        In the second meeting of the team on May 8, 2009, the government discussed the NNT's price proposal.

        However, mining observers said NNT's claim of its assets was overvalued. "The value of NNT assets is not that high," Pri Agung Rakhmanto who is executive director of ReforMiner Institute, said recently.

        He said that based on the annual report of NNT in 2008, the value of total assets of Newmont Mining Corporation (NMC) --the holding company of NNT-- was only US$15.839 billion. The value of NMC's assets in Indonesia, including that of NNT and PT Newmont Minahasa Raya (NMR), is about 17 percent (of the US$15.839 billion).

        "With that reference, the combined value of NNT and NMR's assets is only about US$2.693 billion," Rakhmanto said. International Arbitration

        Last year, NNT and the government went through an international arbitration procedure following a dispute on how to implement the divestment scheme.

        According to a 1986 contract, Newmont must gradually sell a total of 31 percent of its stake in NNT to the government or local parties it appoints by 2010. Of these stakes, 3 percent must be offered to the government in 2006, and 7 percent each year in 2007 through 2010.

        The government accused the company of breach of contract for failing to meet the March 3 deadline to divest a 10 percent stake, a charge denied by the company at the time.

        By the end of 2007, according to the contract, the foreign shareholders were supposed to have sold 10 percent of their stake in NTT, which they failed to do.

        The court ruled in favor of the Indonesian government. Under the decision of the international arbitration court, Newmont is required to sell 17 percent of its stake which was supposed to be carried out in the 2006-2008 period.

        In addition, Newmont will also sell 14 percent of its stake allocated for 2009 and 2010, bringing the total of shares Newmont has to sell to 31 percent.

        In order to implement the divestment, the government has set up a team in charge of calculating NNT's share values.

        The mandatory 17 percent consisted of shares for 2006, 2007 and 2008. The government and NNT have agreed divestment price of three percent stake in 2006 valued at US$109 million with assets worth US$3.63 billion and seven percent stake in 2007 worth US$282 million with assets accounting for US$4.03 billion.

        The government and NNT are still negotiating the divestment price of seven percent stake for 2008 and 2009.

        NNT has offered a price of the seven percent stake for 2008 at US$426 million with assets accounting for US$6.09 billion and seven percent at US$348 million for 2009 with assets worth US$4.97 billion.

        The government recently indicated it wanted that NNT should put one value on its assets for 2008 and 2009 to show up real value of its shares.

        Bambang Setiawan, said that based on a single value for Newmont assets, the government could move forward to assess a real price of the NNT shares.

        "Newmont gives us different values for NNT's assets in 2008 and in 2009. We want them to come up with a single value, meaning one value for 2008 and 2009 assets," Bambang Setiawan said.***2*** (T.A014/A/HAJM/19:45/a014 ) (T.A014/A/A014/A/A014) 19-05-2009 20:39:11

RI'S POLICIES UNLIKELY TO CHANGE NO MATTER WHO GOVERNS

By Andi Abdussalam

Jakarta, May 18 (ANTARA) - After they registered at the General Elections Commission (KPU) on Saturday (May 16, 2009), there are now three official pairs of presidential and vice presidential candidates who are ready to compete in the upcoming presidential race on July 8, 2009.

        The first pair to register was JK-WIN, or incumbent vice president Jusuf Kalla with his running mate Wiranto, who is chairman of the People's Conscience Party (Hanura).

        Coming to the KPU to register after the JK-WIN was Mega-Pro pair, which is a combination of Megawati Soekarnoputri, chairperson of the Indonesian Democratic Party of Struggle (PDIP) and Prabowo Subianto, chairman of the Greater Indonesia Movement Party (Gerindra).

        The last to register on the same day was SBY-Berboedi, which saw incumbent president Susilo Bambang Yudhoyono to pair up with Boediono, who is the central bank governor.

        Observers viewed the SBY-Berboedi pair will pursue liberal economic policies. Boediono was believed by the public as a noted neo-lib economist, thus facing strong resistance, though Boediono denied this.

        On the other hand, the Mega-Pro pair is seen by the public as a pair who would pursue pro-people economic policies, orienting its economic development to micro-economic businesses for improving the welfare of farmers and fisherman.

        In the middle of the two is the JK-WIN pair who will pursue pro-people economic policies but would not be too protective to liberal economy.

        However, economic observer FX Sugianto of the Diponegoro University in Semarang said recently that Indonesia's economic policies would unlikely change significantly in the next government, no matter who would govern.

        "In the upcoming presidential race, candidates like Yudhoyono, Kalla and Subianto are keys to economic policy making. Kalla is likely to continue his more-or-less liberal economic policy while Yudhoyono and Subianto actually shared the view of developing pro-people economy," he said.

        In the meantime, economic analyst Aviliani said that incumbent president Yudhoyono has so far not yet reflected his economic policy in the country's micro economic development.

        "This is because the government has to carry out laws that were drafted in line with the policies of the International Monetary Funds (IMF)," Aviliani said in a talk-show with TVone on Monday.

        According to FX Sugianto, If Yudhoyono is re-elected, the economic policies he will take will not change. Most likely he will focus on the development of micro-small and medium scale businesses and on the agriculture.

        In the meantime, even though he is only a vice president if elected, Prabowo Subianto will play important roles in making and in implementing economic policies. "If he is elected to the vice presidency, he will act as the key player in directing the economic policies which would be implemented, particularly the economic programs he had offered during the elections campaigns," Sugianto said.

        During the legislative election campaigns, Prabowo Subianto offered pro-people economic concepts.

        Sugianto said that basically the economic concepts of Yudhoyono and Prabowo Subianto did not differ too much. "They both supported the people's economy and have greater intention to the agricultural sector," he said.

        He said it seemed that Subianto and Yudhoyono would optimize the domestic market so that the two would not have too much difference with regard to the economic development at home.

        However, when it comes to matters on foreign economic polices the two would show different policies. Subianto tended to adopt extreme steps in avoiding foreign influence. "Subianto will face a strong 'stream' because so far Indonesia adopted economic policies which are not too different from the liberal international economic policies," he said.

        In the meantime, the direction of the economy under Kalla who is current vice president, could now be seen, and if elected president in the coming presidential polls the economic policies he would take would unlikely change either. "Kalla tended to adopt economic policies which are liberal in nature," Sugianto said.

        He said that Kalla's character as a businessman would influence the economic policies he was adopting. "Kalla's economic policies tend to take side with big businesses and his influence in taking the economic policies would be greater than his running mate Wiranto," he added.

        But according to Aviliani, with Boediono as his running mate, Yudhoyono tended to develop macro and liberal economic policies. This is partly because a number of laws on economy were drafted in line with the directions of IMF. In the meantime, Kalla would pursue an economic policy line between that of Yudhoyono (liberal) and of Subianto (focused on people economy).

        Boediono who was picked by Yudhoyono as his running mate was opposed by certain quarters as he was seen as neo-lib economist. According to San Afri Awang, chief of the People's Economic Study Center of the Gajah Mada University, SBY needed Boediono's thoughts to contribute to the government economy.

        "Yudhoyono considers Boediono as a person who is able to provide thoughts in the development of Indonesia economy that would bring Indonesia to regaining its reliant and sovereign economy," Awang said.

        Therefore, the groups of people who disliked Boediono should press him to develop economy which was pro to the people, he added. ***1*** (T.A014/A/HAJM/A/E002) (T.A014/A/A014/A/E002) 18-05-2009 22:07:39

SOME OBSERVERS GIVE THUMBS DOWN TO BOEDIONO

By Andi Abdussalam

Jakarta, May 14 (ANTARA) - Democratic Party (PD) chief patron Susilo Bambang Yudhoyono (SBY) has reportedly decided to pick Bank Indonesia (BI) Governor Boediono as his running mate in the upcoming July 8 2009 presidential polls.

        The PD presidential hopeful's decision to run with Boediono, a true professional and technocrat, has sparked resistance from cadres of political parties in the PD-led coalition.

        Cadres of the pro-SBY political parties said Yudhoyono's running mate should come from political parties or one who had political support. Observers share this opinion.

        "Boediono is not the best candidate for SBY to run with. He should have picked up a figure from political party circles so that his government would have strong support from parliament," Alfitri, political observer of the Palembang-based University of Sriwijaya, said on Wednesday.

        He said that with their present culture the Indonesian people could not yet accept a president or vice president who came from non-political party circles.

        After all, in the political aspect, the naming of Boediono was not right because SBY did not take into account the consideration of the outside-Java representation.

        "SBY and Boediono are from Java. In the political point of view, this is not good because it would not win the sympathy from people outside Java," political analyst of the University of Benkulu Ardilafiza said.

        On the chance of Yudhoyono to win the presidential polls if he goes ahead with Boediono, Ardilafiza said that if the PD-led coalition remains solid with the existing political party supporters, he had a big chance to win it.

        The political parties which had joined the PD-led coalition are the Prosperous Justice Party (PKS), the United Development Party (PPP), the National Mandate Party (PAN) and the National Awakening Party (PKB). These parties resisted on Tuesday Yudhoyono's choice of Boediono, except PKB.

        In the eyes of businessmen, Boediono is also not the best choice.

        Boediono is not the right man to serve as vice president although he is an expert on economic affairs.

        "From the macro point of view, Jusuf Kalla is better. (Boediono) may lack the courage to face the coalition of parties and legislators in the House because he has no political party support," Sofjan Wanandi, chairman of the Indonesian Entrepreneurs Association (APINDO), said.

        He said that Boediono shared a similar character with Susilo Bambang Yudhoyono. He tends to always adopt a wait-and-see attitude. "It is difficult for businessmen to meet him. He also tends to keep things himself," Wanandi said.

        He said the appointment of Jusuf Kalla as vice president in 2004 was different from the selection of Boediono. Kalla signed a contract with Yudhoyono first on what he was going to do as vice president so that he became an active vice president.

        He said that as a technocrat Boediono was the best because he had good experience and was an expert in monetary affairs but as a vice president his capabilities were rather questionable whether he would be active or not, or he would serve as a 'spare tire' such as the vice presidents during the era of president Soeharto.

        According to Secretary General of the Inland Waterway Transport Services Association (Gapsasdap) Luthfi Syarief, Boediono, in his capacity as bank regulator was less firm. However if Boediono accompanies Yudhoyono as his vice president, the results of his work would be seen only after the government issued economic policies favorable to market players, and all these would depend on the national political situation.

        "If the political situation is unstable, market players will pursue a prudent attitude. Economic policies could not be separated from political matters," he said.

        Therefore, it was too early to judge whether the SBY-Boediono ticket was pro-market or not before they had become a real pair.

        What is obvious is that whoever the president or vice president, parliamentary support would have a high influence. "So, everything must be conducive first before the market reacts," he added.

        A different opinion was expressed by economic observer Emilia Hamzah of the University of Jambi. She said that Susilo Bambang Yudhoyono and Boediono if they paired up as presidential ticket will be able to reduce wasteful budget spending and restore Indonesia's economy.

        "Boediono is a seasoned financial negotiator who is well-known in the economic world and believed to be able to reduce wasteful budget spending and to restore the country's economy," she said.

        She said that Indonesia was now facing economic and poverty problems so that the naming of Boediono as a vice presidential candidate was expected to reinforce the president's economic team.

        Boediono who is known to have produced a lot of people's economic concepts, if he wins the presidential polls, will of course take sides with the people.

        The Bank Indonesia (BI) governor is also experienced as he was once finance minister, head of the National Development Planning Board and now governor of the central bank, she said.

        She said that Boediono adopted a very efficient attitude so that his leadership was believed to be able to offset inefficiency and reduce wasteful budget spending.

        Therefore, according to political observer Arbi Sanit of the University of Indonesia, Boediono is the correct figure to pair up with Yudhoyono.

        "I think, Yudhoyono has made a smart choice because his government would become more able to face the impact of global economic crisis," Arbi Sanit said. ***1*** (T.A014/A/H-NG/A014 ) (T.A014/A/A014/A/A014) 14-05-2009 00:53:37

PRO-YUDHOYONO PARTIES QUESTION HIS PLAN TO PICK BOEDIONO

BY Andi Abdussalam

Jakarta, May 12 (ANTARA) - Amid his efforts to approach the Indonesian Democratic Party of Struggle (PDIP) and reports that he is going to pick Boediono as his running mate in the upcoming presidential race, Democratic Party (PD) chief patron Susilo Bambang Yudhoyono (SBY) is facing a threat of reduced support from party cadres in his coalition.

        Cadres of political parties which built a coalition with the PD are questioning Yudhoyono's reported plan to pick Boediono, governor of Bank Indonesia (BI/the central bank) as his running mate, a move seen by many quarters as an attempt to approach PDIP.

        "The emergence of Boediono is feared to dampen the spirit of political party cadres (in SBY's Democratic Party coalition)," secretary general of the National Mandate Party (PAN) Zulkifli Hasan, said.

        So far, PAN has been one of the political parties that have aligned themselves with Yudhoyono's Democratic Party. The other parties are the Prosperous Justice Party (PKS), the National Awakening Party (PKB) and the United Development Party (PPP).

        On Tuesday, a number of lawmakers in the House of Representatives who are also cadres of political parties supporting Yudhoyono's coalition held a meeting at the parliament building to discuss Yudhoyono's reported plan to run with Boediono.

        The meeting was attended by chairman of PKS faction in the DPR Mahfudz Siddiq, PKS Secretary General Anis Matta, PPP faction chairman Lukman Hakim Saefuddin, PAN faction chairman who is also PAN secretary general M Najib and deputy secretary general of PKB Imam Nachrowi.

        "We are surprised by the information (that Yudhoyono is to pick Boediono as his running mate) because we were not consulted in the first place," Mahfudz Siddiq said. He said he heared the information on Monday.

        He said that he was also surprised to learn about the discourse about a coalition between the PD and PDIP. Political parties which have previously built a coalition with the PD also did not have any complete information from the Democratic Party's plan to coalesce with PDIP.

        "We learnt about the discourse from media reports and on the road. What kind of coalition is this? After all, Boediono was reportedly endorsed by PDIP," Mahfudz said.

        According to Mahfudz, the present conditions hampered the direction of the coalition which had just been built where Yudhoyono since the beginning had talked about the desired format and clear rules based on political contracts and common platform.

        In the meantime, Anis Matta said his side had received an invitation from SBY for the declaration of the presidential ticket on May 15 though the would-be vice residential candidate issue was not yet clear.

        Therefore, PKS and other political parties supporting Yudhoyono needed to take an attitude if Yudhoyono proceeded with his plan on Boediono's vice presidential candidacy without consulting political parties in the coalition.

        Associate chairman of PKS Mahfudz Siddiq said SBY's signal to pick Boediono indicated the weakness of communications and coalition now being built together with the Democratic Party (PD).

        "This is an indication that the coalescing process is not smooth and proceeding in one direction only. PKS was not asked to discuss the matter," Mahfudz Siddiq.

        He said that PKS would soon adopt an attitude together with other parties which had joined the PD coalition, namely PAN, PKB and PPP.

        According to secretary general of the National Mandate Party (PAN) Zulkifli Hasan, the emergence of Boediono is feared to dampen the spirit of political party cadres in SBY's Democratic Party coalition.

        Zulkifli said PAN cadre Hatta Rajasa, who is also minister/state secretary had told him that Yudhoyono had decided to pick Boediono as his running mate.

        Recently, PAN at its recent national working meeting in Yogyakarta recommended that Rajasa be proposed as a vice presidential candidate to pair with Yudhoyono. Thus, he was surprised when he heard that Boediono would be chosen as Yudhoyono's running mate.

        He said that the change in the map of would-be vice presidential candidate for Yudhoyono from Hatta Rajasa to Boediono had reduced PAN cadre's enthusiasm to fight for SBY's victory in the coming presidential elections.

        Zulkifli said PAN would hold a meeting soon to formulate its attitude towards Yudhoyono's plan (to pick Boediono). "We will meet again to determine PAN's stance after the signal that Rajasa is not to become SBY's vice presidential candidate," he added.

        The same thing was also expressed by Mahfudz Siddiq. He said his party had not decided whether to continue or to pull out of the coalition with the Democratic Party.

        Mahfudz said that if PDIP joined the coalition and SBY really embraced Boediono, PKS would surely question it. "Yudhoyono has always said that the coalition he was to build was a coalition with political parties which had the same political platform," he added.

        "So, we will question whether this coalition is based on political platform or on safeguarding interest only," he said.

        Imam Nachrowi of the the PKB said political parties which form the coalition should be consulted before a decision was to be taken. PKB wanted to build harmonious relations before the presidential elections were held.

        "Yet, the situation has turned like this even before the presidential elections are held. What would it be like later on?" he questioned.

        Lukaman Hakim meanwhile said that a decision on the vice presidential candidate was in the hands of the presidential candidate but PPP had firmly suggested that vice presidential candidate should be taken from political parties.

        "Our constituents also question the reason for picking up Boediono. So, it would be better for Yudhoyono to explained whether r this issue is true or not," he added. ***1*** (T.A014/A/HAJM/21:10/H-YH) (T.A014/A/A014/A/H-YH) 12-05-2009 21:07:45

WORLD OCEAN CONFERENCE TO TRY SAVING LIVES OF COALTAL PEOPLE

By Andi Abdussalam

Jakarta, May 11 (ANTARA) - The ongoing World Ocean Conference (WOC) in Manado, North Sulawesi, will formulate efforts to save not only the seas and marine resources but also the lives of people living in coastal areas.

        "The adaptation and mitigation framework that the meeting will formulate is aimed at safeguarding not only the seas and the resources they hold but also the lives of people living in coastal areas," Indonesian Minister for Maritime and Fisheries Affairs Freddy Number said when opening a WOC senior officials' meeting in Manado on Monday.

        People living in coastal areas of small islands in developing countries are groups of settlers whose lives are seriously threatened by the impact of climate change such as the rising sea surface.

        "The rise in the sea surface will submerge some of the outlaying islands, while climate change will also affect the conditions of sea water and the marine biota population ," the minister said.

        In this case archipelagic countries and nations with vast coastal areas should cooperate in increasing the people's understanding of the relations between the climate change and the sea and their impact on the ecosystem, bio-diversity and coastal community living in small developing countries.

        The need to safeguard the people in coastal areas from the impact of climate change was also expressed by Moses Murihungurire, director for resources management of the Namiban Ministry of Maritime and Fisheries, and Gabriella Bianchi, senior officer of the Food and Agriculture Organization (FAO).

        Both shared the opinion that the dynamic change of ecosystem as a result of climate change affected people in coastal areas whose life and protein need depended on the sea resources.

        Excessive exploitation of sea resources by human beings also caused the ecosystem to undergo changes. "For this purpose, ecosystem-based fishery management needed to be applied," Bianchi said.

        The ecosystem-based management is basically an integrated fishery management applied by taking into account the sustainability of the ecosystem.

        With fishery management model that takes into account the sea ecosystem balance the people, particularly those living in the coastal areas, would be able to utilize sea resources without harming their sustainability.

        In order to adopt a comprehensive formula, the participation of the people living in the coastal areas is needed. Chairman of the WOC Senior Officials' Meeting (SOM) chairman Eddy Pratomo said meanwhile that a formulation would be sought to involve farmers and people living in coastal areas in future forums like WOC.

        "We have yet to involve them, but the time will come when we seek a formulation to involve farmers and people in coastal areas in future forums like WOC," Pratomo said at a press conference at the Grand Kawanua Convention Center.

        He said the first WOC this time was specialized for government representatives to obtain political support from WOC participating countries.

        "We have a common understanding that people at coastal areas are affected by climate change at sea," Pratomo said.

        According to Achim Steiner, executive Director of the UN Environment Programme (UNEP), the world's oceans and seas are now understood to be the biggest sink of greenhouse gases from the burning of fossil fuels.

        Indeed experts now estimate that up to 40 per cent of the C02 entering the atmosphere is being cycled through the marine environment playing a crucial role in moderating climate change.

        But experts are warning that the marine realm cannot continue to soak up man-made pollution forever without consequences. Many marine living creatures from corals and crabs to plankton at the base of the food chain need seawater that is alkali to build their skeletons.

        The average pH of water at the ocean's surface has now fallen from 8.16 to 8.05 since the beginning of the Industrial Revolution - small falls, but with potentially huge impacts if this continues.

        Steiner said the governments must affirm their determination to 'Seal the Deal' in Copenhagen at the UN climate convention meeting in order to begin steering the world onto a low carbon course.

        "We have to improve the health of our oceans. They have to be as fit and resilient as possible, so that they can cope with the climate change burden-- so they can continue to provide us with food and the myriad of other economically-important services," he wrote to ANTARA.

        This means governments have to urgently address the multiple challenges weakening our seas, from land based pollution and discharges from ships up to overexploitation of the globe's.

        In its efforts to overcome the problem of sea resources, Indonesia, in its part, cooperated with the National Oceanic and Atmospheric Administration (NOAA).

        Cooperation between the Indonesian Maritime and Fisheries Affairs Ministry (DKP) and the NOAA maritime issues, which will require funds amounting to US$12 million, will be focused on four sub-working groups.

        DKP Secretary General Widi Agoes Partikno said both sides will discuss the four sub-groups of work, namely coastal area and marine resources management, marine and climate change, fisheries and marine explorations.

        "For the cooperation in 2009 we have funds valued at US$2 million and in 2010 there will be five to ten million dollars," said.

        He said that DKP and NOAA had signed in 2007 a memorandum of understanding of cooperation for the implementation of work frames in four sub-working groups.

        In the fields of fisheries, the cooperation would be expanded to cooperation on port preparation, guidance on fishery product quality, hazard analysis critical control point (HACCP) training and marketing.

        Cooperation on marine explorations will focus on the study of seabed lines to know whether or not they contain oil or other mineral elements.

        "In carrying out the cooperation, we are looking forward to 25 or 50 years ahead," he said.***3*** (T.A014/A/HAJM/A/E002)

ICW, LAWMAKERS AT ODD OVER ANTI-GRAFT BODY ISSUES

By Andi Abdussalam

Jakarta, May 9 (ANTARA) - The Indonesian Corruption Watch (ICW) says that lawmakers must have misinterpreted the law when they questioned the validity of decisions to be taken by the collective leadership of the Corruption Eradication Commission (KPK).

        House's Commission III for legal affairs in a meeting on Thursday with KPK asked the collective leadership of the anti-graft body not take principle decisions after the suspension of its chief for alleged involvement in the murder of Nasrudin Zulkarnaen, director of PT Putra Rajawali Banjaran (PRB) last March.

        During the meeting Commission III lawmakers questioned the validity of KPK decisions, particularly those related to investigations and prosecutions because Antasari Azhar, its chief, has been suspended and detained by police on murder charges.

        The anti-graft body has been led by the collective leadership of its four deputies since Antasari Azhar was named a suspect early this month in the murder of Zulkarnaen.

        The lawmakers argued that Article 21 of Law No. 30 / 2002 on KPK stipulated that the KPK leadership consisted of one chairperson and four deputies. Therefore, the KPK should only perform its preventive functions and delay all its enforcement activities, including investigations and prosecutions.

        ICW Coordinator Danang Widoyoko said the lawmakers misinterpreted article 21 of the law which they took as a reason to question the validity of decisions by KPK collective leadership of four deputies.

        "Article 21 of the law basically only stipulates KPK's institutional structure and leadership elements," Danang Widoyoko said on Friday. The article has no direct relations with the decisions of KPK collective leadership as questioned by the lawmakers.

        Commission III member Eva Kusuma Sundari of the Indonesian Democratic Party (PDIP) faction, said that the KPK collective leadership which now consisted of only four deputies would face a technical problem in taking a decision.

        "The number chairman and deputies in KPK leadership is made odd in order to smooth a decision making process through voting when it faces a deadlock," she said.

        Lukman Hakim Syarifuddin of the United Development Party (PPP) faction argued that the KPK should not make any principle decisions before the elements of its leadership were completed. This is to avoid a KPK decision with legal flaws.

        He said that KPK should wait for a decision which permanently discharged Antasari Azhar as its chief, or wait for the absence from office of the suspended KPK chief for three-consecutive months.

        The ICW is suspicious why the lawmakers are so aggressive in questioning the validity of KPK collective leadership after its chief Antasari Azhar was suspended in connection with the murder charges.

        The non-governmental organization expressed its rejection of any form of political intervention into the anti-graft body.

        "ICW rejects all forms of political intervention which try to weaken KPK," Danang Widoyoko said.

        He said that there seemed to be other interest of the lawmakers why they were so aggressive to question the validity of the collective leadership decisions.

        The ICW coordinator said that the calls by Commission III members during Thursday's hearing that KPK should delay all forms of investigations until the KPK leadership had complete five members could be categorized as an effort to weaken the anti-graft body.

        "Why don't they let the KPK work as usual and resume its investigation," he said. He called on the four KPK deputies, namely Chandra M Hamzah, Bibit Samad Rianto, Haryono Umar and H Jasin, to continue KPK's agenda in fighting corruption, including investigating an alleged bribery case in the selection of Bank Indonesia's Senior Deputy Miranda Swaray Gultom.

        KPK deputy chairman Bibit Samad Rianto meanwhile said KPK had to remain operating, adding corruption eradication operations could be hindered if the present KPK leaders were not allowed to make decisions.

        On a separate occasion, presidential special staff for legal affairs Denny Indrayana said that actually the problem of vacancy in the KPK chairmanship could be settled internally by the rest four KPK leaders without necessarily conducting selection.

        "I think because KPK is an independent state commission and coincidentally no law regulates the case it is better if we refer it to internal mechanism within KPK so that its independence is safeguarded and operations run smoothly," he said

        House Speaker Agung Laksono also voiced the same thing asking the KPK to continue its investigations without the need to be hindered by the legal case that befell its chairman Antasari Azhar.

        "The House appeals to the KPK leadership to continue its jobs and function as usual," Agung Laksono said.

        He said that he had received a report from Commission III chairman Trimedya Panjaitan on the results of the commission's hearing with KPK on Thursday.

        "We agree to make public the House stance with regard to the matter, namely to ask the KPK to carry out its strategic and important tasks based on the people's mandate in fighting corruption crimes," Agung Laksono aid. ***4*** (T.A014/A/HAJM/12:30/a/f001) (T.A014/A/A014/A/F001) 09-05-2009 12:28:51

SPECULATION ARISING ON PDIP-PD COALITION ATTEMPT

 By Andi Abdussalam

Jakarta, May 7 (ANTARA) - Speculations are now arising that the Indonesian Democratic Party of Struggle (PDIP) and the Democratic Party (PD) are approaching each other to build a coalition, but leaders of both parties have denied it.

        Public speculation arose following a visit to PDIP leader Megawati Soekarnoputri by Minister/State Secretary Hatta Rajasa on Wednesday which was seen as part of an approach by President Susilo Bambang Yudhoyono, the PD's chief patron, to cooperate with the PDIP.

        "There is no special political deal between the PD and PDIP now," PD associate chairman Andi Mallarangeng said after attending a discussion on democracy here on Thursday.

        The same denial was also made by PDIP secretary general Pramono Anung Wibowo. "They only discussed matters which are more important to the interest of the people and the nation than mere a matter of who would be presidential and vice presidential candidates in the upcoming July 8 2009 presidential race," Anung said.

        According to Andi Mallarangeng, his party up to now has no special political deal with the Indonesian Democratic Party of Struggle (PDIP). However, he said that his party was pursuing open doors for a coalition with any political parties.

        "The Democratic Party is a friend of all political parties, including PDIP. We always open our arms for all parties so that there would be no enemies, only friends," he said.

        The Democratic Party is always open to reconciliation. "If their leaders are ready to reconcile, the people will be happy," he added. For this purpose, the Democratic Party would always build a communication with other parties to develop an effective government, Andi said.

        In the meantime, PDIP secretary general Pramono Anung denied that the meeting between Megawati and Hatta Radjasa discussed a chance for a PDIP cadre to become a vice presidential candidate for the Democratic Party.

        PDIP admitted it was witnessing in recent days intensive political lobbying by a number of political parties in the runup to the nomination their presidential and vice presidential tickets. "We are also having such lobbying with a number of political parties through closed-door meetings. In this way, we can discuss many issues with other political party leaders," he said.

        He said that apart from the Greater Indonesia Movement Party (Gerindra), PDIP would also build political communications with other parties in an effort to find the best step and decision in the face of the upcoming presidential polls.

        Anung said that up to now, PDIP was still consistent with the results of its congress and national working meeting to nominate one name as a presidential hopeful, namely PDIP leader Megawati Soekarnoputri. Thus, he denied that PDIP was preparing an alternative candidate.

        "Up to now, there is no other scenario. PDIP continues to support Megawati's presidential candidacy in the coming presidential race," he said.

        Media reports said that PDIP and PD were approaching with each other to explore a coalition. Three names were offered to be selected as a vice presidential candidate to accompany Yudhyono as his running mate, namely Puan Maharani (daughter of Megawati), Pramono Anung Wibowo and Boediono (now governor of the central bank).

        It was also speculated that a position as member of presidential advisory council was offered to Megawati Soekarnoputri while Tuafiq Kiemas (PDIP chief patron) was offered a position as chairman of the People's Consultative Assembly (MPR). Besides, the PD also offered six cabinet ministerial posts for other PDIP cadres.

        In response to the public speculation, secretary of PDIP faction in the House of Representatives Ganjar Pranowo said he had no knowledge about the matter but had learned it from newspapers. He said if the report was true it must still be an idea, as a decision had to be taken in a national leadership meeting.

        The possibility of PDIP and PD to coalesce was also refuted by Wiranto, chairman of the People's Conscience Party (Hanura). PDIP will be consistent with its stand to remain as opposition in parliament and would not coalesce with PD, Wiranto who is also vice presidential hopeful of the Golkar Party and Hanura said.

        "Meetings and political communications are normal things in politics. PDIP is still consistent with its stand to become an opposition in parliament," Wiranto said referring to Megawati - Hatta meeting on Wednesday.

        He said that PIDP, Golkar, Hanura, Gerindra and other parties had agreed to build a grand coalition in parliament and there was no information yet that PDIP had quit the coalition. "If PDIP quit the grand coalition and intended to join the Democratic Party, it has to let us know first. But up to now, PDIP is still consistent with the grand coalition," he said.

        According to Ganjar Pranowo, secretary of PDIP faction in the House, it is difficult to unite PDIP chairperson Megawati Soekarnoputri and Democratic Party Advisory Board chairman Susilo Bambang Yudhoyono but political interests could well become an overriding factor.

        After all, PD admitted that it never considered PDIP as an "enemy" but as a "sparring partner" in building democracy and promoting the nation's progress. Anas Urbaningrum, another PD associate chairman for political affairs, said his party had always been pursuing an "open door" policy towards other parties.

        "Therefore, communication between PD and PDIP figures had never been cut off although there is political competition between the two parties," he said. ***1*** (T.A014/H-NG/A/H-YH) (T.A014/A/A014/A/H-YH) 07-05-2009 23:21:25