By Andi Abdussalam
Jakarta, April 29 (ANTARA) - The signing on Saturday of an extradition treaty between Indonesia and Singapore gives new hope to Jakarta to bring back fugitive corruptors and retrieve the ill-gotten money they have deposited in the neighboring country.
When it was signed in Bali, however, the extradition deal received mixed reactions at home - optimism and pessimism -- on its effectiveness to bring back the money of the state stashed away somethere in Singapore.
The conclusion of the extradition agreement itself was described as a breakthrough of President Susilo Bambang Yudhonono. Indonesia had tried to conclude an extradition treaty with Singapore for over three decades.
At least the Yudhoyono government was viewed as successful in convincing Singapore of its seriousness to crack down on corruption and money laundering.
"The agreement constitutes a form of breakthrough by President Yudhoyono in combating corruption and money laundering," lawyers Suhadi and Syamsul Dalal in Lampung province said.
Calls for an imminent implementation of the agreement were therefore made by many quarters, among others,the People's Consultative Assembly (MPR) and the House of Representatives (DPR).
MPR chairman Hidayat Nurwahid urged the DPR to ratify immediately the extradition treaty. "Although it is a little bit late, I highly welcome the agreement because it will help the authorities settle the problem of corrupted Bank Indonesia Liquidity Assistance (BLBI) funds stashed away in Singapore," he said.
Hope for the use of the extradition treaty momentum to arrest fugitive corruptors was also raised by DPR Chairman Agung Laksono.
"Members of the Indonesian parliament, political parties and non-governmental organizations all hoped that the extradition treaty would be a great help in arresting Indonesian corruptors who had fled to Singapore," he said.
An expression of optimism also came from Vice President Jusuf Kalla. He said that the extradition treaty would serve as an effective means to force fugitive corruptors to return to Indonesia.
"As long as the treaty is based on cooperation, I am optimistic that it will be an effective means to force corrupters who had fled from Indonesia to return," he said.
Kalla said Indonesia wanted to recover the money which was illegally stashed away in Singapore. "That is why, I am optimistic that if the agreement is implemented well, it will be effective," the vice president said.
If implemented well, the extradition will benefit not only Indonesia but Singapore as well.
"Indonesia and Singapore will both benefit from the extradition treaty," political scientist Beginda Pakpahan of the University of Indonesia (UI) said.
The extradition pact would improve Singapore's credibility because by the agreement it would look cleaner and more credible in the eyes of the law and to the international community he said.
Singapore's reputation will rise when it is prepared to cooperate with Indonesia in taking action against transnational criminals in Southeast Asia, he added.
Singapore is an alleged money laundering center for corrupt businesspeople. According to a report by Tempo magazine last October, for a long time Singapore had been a refuge for 'problem' business people from Indonesia.
It quoted data from the Indonesian embassy in Singapore that some 200 debtors who owned money to the state were hiding in this tiny nation since the fall of the Soeharto administration in 1998.
Included among them are Sukanto Tanoto, Sjamsul Nursalim, Liem Sioe Liong, Eka Tjipta Widjaja, Bambang Sutrisno, Agus Anwar, Lidia Muchtar and Pauline Maria Lumowa.
According to Tempo, the number of rich people in Singapore in 2005 grew by 13.4 percent to 55,000, with a total wealth of around US$260 billion.
About one-third, or 18,000, of them are Indonesian citizens. According to Tempo, quoting Marrill Lynch, their total wealth amounts to US$87 billion.
But Indonesia has not yet ascertained how much ill-gotten money it could retrieve from Singapore. Asked how much of the stolen money could be retrieved by virtue of the extradition treaty, Vice President Jusuf Kalla said this was still being calculated.
"What can be recovered are funds deposited in Singapore by those who were convicted by Indonesian courts while the amount of funds hidden by fugitives yet to be convicted is still being calculated," he said.
While the vice president is optimistic about the extradition treaty, some observers expressed pessimism. Singapore is basically reluctant to have such a treaty that forced Indonesia to wait for about 33 years before they could reach agreement to sign it.
"We have been patiently waiting for 33 years since 1974 before Singapore is prepared to sign the extradition treaty with Indonesia," Secretary of the Golkar Party Faction of the MPR, Hajriyanto Y Thohari said.
In the meantime, political observer Bantarto Bandoro of the Center for Strategic and International Studies (CSIS), said differences between the legal processes in Indonesia and Singapore may hamper the implementation of the extradition treaty.
In Singapore, someone suspected of a crime in another country, can be extradited only by a court order while in Indonesia it can be done by a government official's decision, he said.
"And this will have implications in the system as deciding the perpetrator of a crime is subjective in nature. A perpetrator can be classified as violating the law here but over there, he or she may just be viewed as not guilty," Bandoro said.
Pessimism on bringing back corruptors to Indonesia was also voiced by Attorney General Abdurrahman Saleh. He admitted that the problem was not as easy as it sounds. "It is not impossible that they have already left Singapore when we were still negotiating the agreement," he said. (A014/A/HNG/B/O001)
Jumat, 02 Mei 2008
INDONESIA'S SUPPORT TO UN RESOLUTION ON IRAN NUKE PROGRAM
By Andi Abdussalam
Jakarta, March 28, (ANTARA)- Indonesia's support to the United Nations Security Council (UNSC) resolution on tightening its sanction on Iran last week has sparked controversy, and surprised -- if not disappointed -- many people in the country.
The decision contradicted what people might have in mind so far, in which support from government officials, the House of Representatives as well as the general public to the Iranian nuclear program for peaceful purposes had often been heard.
"So far, the President, the People's Consultative Assembly (MPR), the House of Representatives (DPR), the Regional Representatives Council (DPD) and the people in general had supported Iran's nuclear enrichment program," former president Abdurrahman Wahid alias Gus Dur said in responding to the government's decision to support the UNSC Resolution.
On Saturday last week (March 24), fifteen members of the UNSC, including Indonesia as non-permanent member, unanimously agreed to tighten its sanction on Iran after it refused to abandon its uranium enrichment program.
Before the UNSC adopted the resolution, many circles in Indonesia had expressed hope that Indonesia would not support the resolution and refrain from taking part in the voting.
"Indonesia should reject the UNSC plan and not support the Council in calling for a resolution to impose a sanction on Iran," Ikrar Nusa Bakti, a political scientist said recently.
There had been no evidence that Iran's nuclear program was intended to produce atomic bombs or beef up its military prowess, he said.
"Indonesia should not only refrain from taking part in the voting but voice its stance and actively lobby the other non-permanent members to reject the resolution," Rizal Dharma Putra, executive director of the Indonesian Strategic and Defense Studies Institute said.
But the Indonesian support to the UNSC resolution seemed to have disappointed many members of the House of Representatives (DPR). There has been a move of some House members to exercise their interpellation right toward the President.
Effendy Choirie, a DPR member of the National Awakening Party (PKB) faction, said a written proposal for the exercise of the interpellation right toward the government's support to the UNSC resolution had already been distributed to the House members and already signed by 74 of them.
A report said on Wednesday 120 legislators had signed the proposal.
Former president Gus Dur said he supported the intention of the 120 DPR members to exercise their interpellation right. "I back their intention to exercise their interpellation right toward the President's stand in supporting the resolution because we have always been supporting Iran's peaceful nuclear program," Gus Dur told reporters on Tuesday.
He said the interpellation could be followed with an impeachment if the president was proven to have violated the law. After all, Indonesia adopted a free and active foreign policy.
While the lawmakers were gathering support for the interpellation move, others called on the government to explain the people the decision it had taken in supporting the resolution.
Executive Board Chairman of the Democrats Party Anas Urbaningrum said the foreign minister had to clarify to the people Indonesia's support to the UNSC resolution on the tightening of its sanction on Iran.
"The foreign minister needs to explain in detail to the people and political parties Indonesia's stance towards Iran's nuclear enrichment program," Anas said.
He said that any country in the world had the right to develop nuclear energy for peaceful purposes like Indonesia which was allowed to develop its nuclear energy program.
Therefore, Anas also said it was most important for the foreign minister to give a detailed clarification to the people on the background of Indonesia's support to the Iranian nuclear program, and its decision to support the UNSC resolution.
He said that whatever political decision Indonesia has taken, it would affect the country's international relations.
Deputy Chairman of Foreign Affairs Commission of the DPR, Yusron Ihza Mahendra of the Crescent and Star Party (PBB) faction said that Indonesia must have proper reasons behind its decision to support the resolution.
"Although Indonesia is a friend of Iran, it has to make adjustments to the international developments in carrying out its diplomacy," he said.
The same opinion was also expressed recently by Joko Susilo of the National Mandate Party faction. "It is very important for us to remain neutral with regard to the Iranian case. The problem is that Iran is still hiding a lot of information," he said.
"We have to keep a balanced stance over the Iranian issue. While Iran is still hiding much information, the United States is also quite arrogant," he added.
Previously, Foreign Affairs Minister Hassan Wirajuda said Indonesia had no pressure from the big countries, the West in particular, in supporting the resolution. Indonesia made the decision after many considerations, including the latest developments in the world.
Wirajuda said that if Iran really means that it is developing nuclear energy for peaceful purposes only, it should have been more open and transparent, including toward the International Atomic Energy Agency (IAEA).
Though Indonesia supported the UN resolution it should not hurt Iran as Tehran is still one of Jakarta's friends.
Indonesia's stance in supporting the resolution will not change existing economic relations between Jakarta and Tehran, Iranian Ambassador to Indonesia Behroz Kamalvandi said.
"The economic relations between Indonesia and Iran have created greater benefits, so that they should be maintained and even stepped up," he said.
About Iran's attitude towards the Indonesian permanent representative to the UN for supporting the UNSC resolution, the Iranian ambassador said that Iran had hoped that all the members of in the UNSC, would give their votes based on fairness and justice. (T.A014/A/HNG/B003). (T.A014/A/A014/B003) 28-03-2007 23:53:15
Jakarta, March 28, (ANTARA)- Indonesia's support to the United Nations Security Council (UNSC) resolution on tightening its sanction on Iran last week has sparked controversy, and surprised -- if not disappointed -- many people in the country.
The decision contradicted what people might have in mind so far, in which support from government officials, the House of Representatives as well as the general public to the Iranian nuclear program for peaceful purposes had often been heard.
"So far, the President, the People's Consultative Assembly (MPR), the House of Representatives (DPR), the Regional Representatives Council (DPD) and the people in general had supported Iran's nuclear enrichment program," former president Abdurrahman Wahid alias Gus Dur said in responding to the government's decision to support the UNSC Resolution.
On Saturday last week (March 24), fifteen members of the UNSC, including Indonesia as non-permanent member, unanimously agreed to tighten its sanction on Iran after it refused to abandon its uranium enrichment program.
Before the UNSC adopted the resolution, many circles in Indonesia had expressed hope that Indonesia would not support the resolution and refrain from taking part in the voting.
"Indonesia should reject the UNSC plan and not support the Council in calling for a resolution to impose a sanction on Iran," Ikrar Nusa Bakti, a political scientist said recently.
There had been no evidence that Iran's nuclear program was intended to produce atomic bombs or beef up its military prowess, he said.
"Indonesia should not only refrain from taking part in the voting but voice its stance and actively lobby the other non-permanent members to reject the resolution," Rizal Dharma Putra, executive director of the Indonesian Strategic and Defense Studies Institute said.
But the Indonesian support to the UNSC resolution seemed to have disappointed many members of the House of Representatives (DPR). There has been a move of some House members to exercise their interpellation right toward the President.
Effendy Choirie, a DPR member of the National Awakening Party (PKB) faction, said a written proposal for the exercise of the interpellation right toward the government's support to the UNSC resolution had already been distributed to the House members and already signed by 74 of them.
A report said on Wednesday 120 legislators had signed the proposal.
Former president Gus Dur said he supported the intention of the 120 DPR members to exercise their interpellation right. "I back their intention to exercise their interpellation right toward the President's stand in supporting the resolution because we have always been supporting Iran's peaceful nuclear program," Gus Dur told reporters on Tuesday.
He said the interpellation could be followed with an impeachment if the president was proven to have violated the law. After all, Indonesia adopted a free and active foreign policy.
While the lawmakers were gathering support for the interpellation move, others called on the government to explain the people the decision it had taken in supporting the resolution.
Executive Board Chairman of the Democrats Party Anas Urbaningrum said the foreign minister had to clarify to the people Indonesia's support to the UNSC resolution on the tightening of its sanction on Iran.
"The foreign minister needs to explain in detail to the people and political parties Indonesia's stance towards Iran's nuclear enrichment program," Anas said.
He said that any country in the world had the right to develop nuclear energy for peaceful purposes like Indonesia which was allowed to develop its nuclear energy program.
Therefore, Anas also said it was most important for the foreign minister to give a detailed clarification to the people on the background of Indonesia's support to the Iranian nuclear program, and its decision to support the UNSC resolution.
He said that whatever political decision Indonesia has taken, it would affect the country's international relations.
Deputy Chairman of Foreign Affairs Commission of the DPR, Yusron Ihza Mahendra of the Crescent and Star Party (PBB) faction said that Indonesia must have proper reasons behind its decision to support the resolution.
"Although Indonesia is a friend of Iran, it has to make adjustments to the international developments in carrying out its diplomacy," he said.
The same opinion was also expressed recently by Joko Susilo of the National Mandate Party faction. "It is very important for us to remain neutral with regard to the Iranian case. The problem is that Iran is still hiding a lot of information," he said.
"We have to keep a balanced stance over the Iranian issue. While Iran is still hiding much information, the United States is also quite arrogant," he added.
Previously, Foreign Affairs Minister Hassan Wirajuda said Indonesia had no pressure from the big countries, the West in particular, in supporting the resolution. Indonesia made the decision after many considerations, including the latest developments in the world.
Wirajuda said that if Iran really means that it is developing nuclear energy for peaceful purposes only, it should have been more open and transparent, including toward the International Atomic Energy Agency (IAEA).
Though Indonesia supported the UN resolution it should not hurt Iran as Tehran is still one of Jakarta's friends.
Indonesia's stance in supporting the resolution will not change existing economic relations between Jakarta and Tehran, Iranian Ambassador to Indonesia Behroz Kamalvandi said.
"The economic relations between Indonesia and Iran have created greater benefits, so that they should be maintained and even stepped up," he said.
About Iran's attitude towards the Indonesian permanent representative to the UN for supporting the UNSC resolution, the Iranian ambassador said that Iran had hoped that all the members of in the UNSC, would give their votes based on fairness and justice. (T.A014/A/HNG/B003). (T.A014/A/A014/B003) 28-03-2007 23:53:15
GOVT-TOMMY'S LEGAL BATTLE OVER MONEY AT BANK PARIBAS
By Andi Abdussalam
Jakarta, March 25 (ANTARA)- The Indonesian government and a former ruler's son, Hutomo Mandala Putra, more popularly known as Tommy Soeharto, are fighting for a legal battle at Guernsey court in England, over a deposit of Rp630 billion at Bank Paribas.
Various quarters in Indonesia, including the House of Representatives and the Attorney General's Office, are focusing attention on the money, suspected to have come from Tommy's illegal business operations in Indonesia, and stashed at the bank as part of money laundering.
The cacophonous part of the affair was the unraveling of the facts that besides the Rp630 billion now being fought for at the court, Tommy still managed withdraw US$10 million from a London branch of Bank Paribas with alleged implications of two Indonesian cabinet ministers.
Suspicion arose as the money was transferred to a Justice and Human Rights' bank account at a BNI branch in South Jakarta. Reportedly the money was transferred to the ministry's account under a ruling of British law.
"The government must soon clarify the money, whether or not it is legally owned by Tommy, or Tommy could have withdrawn it because 'something' had made the transfer possible," House Speaker Agung Laksono said recently.
How did all this begin? According to a report by Tempo magazine early this week, Tommy, through his companies -- Garnet Investment Ltd and PT Motorbike -- deposited funds in two branches of the Banque Nationale de Paris (BNP) Paribas, a famous private European bank based in Paris, France.
Garnet Ltd, which is based the British Virgin Islands, deposited the funds in Bank Paribas' Guernsey branch, while Motorbike, which is registered in the Bahamas, one of the Caribbean islands, deposited its funds in the London branch.
The deposits were quite significant. About Rp630 billion is in the Guernsey branch while over US$10 million was deposited in the London branch.
However, Paribas later froze the two accounts at the request of the Financial Intelligence Service (FIS), a financial monitoring body based in the United Kingdom. The FIS suspected that the funds came from Tommy's illegal business operations in Indonesia.
According to 'Tempo', when Tommy tried to withdraw the funds from the London branch, Paribas refused to release the money. The bank suspected the funds were part of money laundering.
Paribas set a condition: the money can be released at verification from the Indonesian government. The verification should say that Motorbike and its owners had nothing to do with money laundering.
Tommy asked for assistance of the Justice and Human Rights Ministry, which at that time was headed by Yusril Ihza Mahendra. Tommy was able to secure the verification.
It was reported that the verification was issued after the Justice and Human Rights Ministry received a confidential letter from the state Financial Transactions, Reporting and Analysis Center (PPATK) which said it did not find any suspicious financial transactions involving Tommy's in its data base.
Finally, Tommy succeeded in withdrawing the money from the London branch of Paribas, amounting to US$10 million and transferred to the Justice and Human Rights' bank account at a BNI branch in South Jakarta in June 2005.
At that time, Hamid Awaludin had been appointed minister for justice and human rights, while Yusril named minister/state secretary. Acting as broker for the funds' disbursement was the Ihza & Ihza law firm owned by Yusril.
However, Tommy's attempt to withdraw the money from the other BNP Paribas branch, namely the Guernsey branch of Bank Paribas, were denied.
Because he failed to withdraw the Rp630 billion, Tommy filed a law suit against Paribas in the British Guernsey court for he claimed the bank had refused to disburse his money.
As the case is taken to court, the Indonesian government is intervening in the case if to a certain extent it involved illegal money.
"The Attorney General's Office is intervening in the case because it is being taken to the Guernsey court," Attorney General Abdul Rahman Saleh said.
Saleh said he would follow the developments of the case, because Hamid Awaluddin and Yusril Ihza Mahendra believed that the withdrawal of the US$10 million from Bank Paribas, London, was legal.
He said the disbursement of the US$10 million from Paribas, London, would not affect his office's intervention in the Guernsey case.
"The question now arises why did'nt the bank tell the Indonesian embassy when it disbursed the money from the London branch," Saleh said.
As to the US$10 million which has been transferred from London, House Speaker Agung Laksono said the government had to clarify it soon as its disbursement was linked to two cabinet ministers.
He said that the money should be returned to the state if it turned out that Tommy obtained the money illegally.
"But we cannot make a judgment before the government clarifies it openly to the public. If he got the money illegally, it should be confiscated and be returned to the state but the government should not arbitrarily do this if he had earned it lawfully," he said.
The House Speaker had suggested the government to openly clarify the money to the public so that it would not spark controversies and tarnish the image of the government in its efforts to crack down on corruption.
Andi Mattalatta, chairman of the Golkar Party faction in the House urged the Police Chief, the Attorney General and the PPATK to investigate the transfer of Tommy's money from BNP Paribas to the ministry's account.
He said the law enforcing agencies needed to take immediate steps so that the matter would not backfire on the government which is currently stepping up its anti-corruption drive.
Meanwhile, House of Representatives Deputy Speaker Soetardjo Soerjoguritno said if the transfer of the US$10 million to the account of the Law and Human Rights Ministry proves to be illegal, they should be confiscated by the state.
But the 'Tempo' report said that the US$10 million only stayed two days in the bank account of the Justice and Human Rights Ministry before it was diverted to various other places.
While the US$10 billion at the London branch has gone before its legal status is made clear, the government is now anxiously waiting to see in whose favor the Guernsey court would issue a ruling with regard to the other Rp630 billion at Bank Paribas' Guernsey branch. (A014/A/HNG/B003). (T.A014/A/A014/B003) 26-03-2007 00:44:13
Jakarta, March 25 (ANTARA)- The Indonesian government and a former ruler's son, Hutomo Mandala Putra, more popularly known as Tommy Soeharto, are fighting for a legal battle at Guernsey court in England, over a deposit of Rp630 billion at Bank Paribas.
Various quarters in Indonesia, including the House of Representatives and the Attorney General's Office, are focusing attention on the money, suspected to have come from Tommy's illegal business operations in Indonesia, and stashed at the bank as part of money laundering.
The cacophonous part of the affair was the unraveling of the facts that besides the Rp630 billion now being fought for at the court, Tommy still managed withdraw US$10 million from a London branch of Bank Paribas with alleged implications of two Indonesian cabinet ministers.
Suspicion arose as the money was transferred to a Justice and Human Rights' bank account at a BNI branch in South Jakarta. Reportedly the money was transferred to the ministry's account under a ruling of British law.
"The government must soon clarify the money, whether or not it is legally owned by Tommy, or Tommy could have withdrawn it because 'something' had made the transfer possible," House Speaker Agung Laksono said recently.
How did all this begin? According to a report by Tempo magazine early this week, Tommy, through his companies -- Garnet Investment Ltd and PT Motorbike -- deposited funds in two branches of the Banque Nationale de Paris (BNP) Paribas, a famous private European bank based in Paris, France.
Garnet Ltd, which is based the British Virgin Islands, deposited the funds in Bank Paribas' Guernsey branch, while Motorbike, which is registered in the Bahamas, one of the Caribbean islands, deposited its funds in the London branch.
The deposits were quite significant. About Rp630 billion is in the Guernsey branch while over US$10 million was deposited in the London branch.
However, Paribas later froze the two accounts at the request of the Financial Intelligence Service (FIS), a financial monitoring body based in the United Kingdom. The FIS suspected that the funds came from Tommy's illegal business operations in Indonesia.
According to 'Tempo', when Tommy tried to withdraw the funds from the London branch, Paribas refused to release the money. The bank suspected the funds were part of money laundering.
Paribas set a condition: the money can be released at verification from the Indonesian government. The verification should say that Motorbike and its owners had nothing to do with money laundering.
Tommy asked for assistance of the Justice and Human Rights Ministry, which at that time was headed by Yusril Ihza Mahendra. Tommy was able to secure the verification.
It was reported that the verification was issued after the Justice and Human Rights Ministry received a confidential letter from the state Financial Transactions, Reporting and Analysis Center (PPATK) which said it did not find any suspicious financial transactions involving Tommy's in its data base.
Finally, Tommy succeeded in withdrawing the money from the London branch of Paribas, amounting to US$10 million and transferred to the Justice and Human Rights' bank account at a BNI branch in South Jakarta in June 2005.
At that time, Hamid Awaludin had been appointed minister for justice and human rights, while Yusril named minister/state secretary. Acting as broker for the funds' disbursement was the Ihza & Ihza law firm owned by Yusril.
However, Tommy's attempt to withdraw the money from the other BNP Paribas branch, namely the Guernsey branch of Bank Paribas, were denied.
Because he failed to withdraw the Rp630 billion, Tommy filed a law suit against Paribas in the British Guernsey court for he claimed the bank had refused to disburse his money.
As the case is taken to court, the Indonesian government is intervening in the case if to a certain extent it involved illegal money.
"The Attorney General's Office is intervening in the case because it is being taken to the Guernsey court," Attorney General Abdul Rahman Saleh said.
Saleh said he would follow the developments of the case, because Hamid Awaluddin and Yusril Ihza Mahendra believed that the withdrawal of the US$10 million from Bank Paribas, London, was legal.
He said the disbursement of the US$10 million from Paribas, London, would not affect his office's intervention in the Guernsey case.
"The question now arises why did'nt the bank tell the Indonesian embassy when it disbursed the money from the London branch," Saleh said.
As to the US$10 million which has been transferred from London, House Speaker Agung Laksono said the government had to clarify it soon as its disbursement was linked to two cabinet ministers.
He said that the money should be returned to the state if it turned out that Tommy obtained the money illegally.
"But we cannot make a judgment before the government clarifies it openly to the public. If he got the money illegally, it should be confiscated and be returned to the state but the government should not arbitrarily do this if he had earned it lawfully," he said.
The House Speaker had suggested the government to openly clarify the money to the public so that it would not spark controversies and tarnish the image of the government in its efforts to crack down on corruption.
Andi Mattalatta, chairman of the Golkar Party faction in the House urged the Police Chief, the Attorney General and the PPATK to investigate the transfer of Tommy's money from BNP Paribas to the ministry's account.
He said the law enforcing agencies needed to take immediate steps so that the matter would not backfire on the government which is currently stepping up its anti-corruption drive.
Meanwhile, House of Representatives Deputy Speaker Soetardjo Soerjoguritno said if the transfer of the US$10 million to the account of the Law and Human Rights Ministry proves to be illegal, they should be confiscated by the state.
But the 'Tempo' report said that the US$10 million only stayed two days in the bank account of the Justice and Human Rights Ministry before it was diverted to various other places.
While the US$10 billion at the London branch has gone before its legal status is made clear, the government is now anxiously waiting to see in whose favor the Guernsey court would issue a ruling with regard to the other Rp630 billion at Bank Paribas' Guernsey branch. (A014/A/HNG/B003). (T.A014/A/A014/B003) 26-03-2007 00:44:13
OBSERVERS UPBEAT OVER RI ECONOMIC GROWTH THIS YEAR
By Andi Abdussalam
Jakarta, Jan 11 (ANTARA) - Entering 2007, economic observers and bankers have expressed the belief that Indonesia's economy in 2007 will perform better than in 2006. They are optimistic economic growth this year will exceed last year's 5.5 percent.
But some of them doubt the validity of the government's economic growth projection of 6.3 percent for 2007.
IMF Representative in Indonesia Stephen Schwartz said the government's target of 6.3 percent was an "ambitious" one. "But it could be achieved if the government is able to improve the investment climate and carry out infrastructure programs well." Stephen said.
The same view was expressed by economic analyst Aviliani of the Indonesian Revival Team (TIB). She said the 6.3-percent target was difficult to achieve as the government still had little commitment to improving infrastructure and the investment climate.
Economic growth can be stimulated only if new infrastructure programs are carried out, she said. But if infrastructure development did not run well, Aviliani predicted economic growth would reach only between 5.6 and 5.7 percent which would still be higher than the figure in the previous year.
Fund allocations from the state budget for infrastructure development in 2007 were still not enough. "In the 2007 state budget, the allocation for infrastructure is only Rp100 trillion, while in the private business community's view the ideal budget for this sector is Rp300 trillion," she said.
The TIB economist said if Rp300 trillion was provided by the government for infrastructure development, the economic growth target of 6.3 percent would be achievable.
Bank Indonesia (BI) Governor Burhanuddin Abdullah predicted the country's economy would grow by around six percent this year.
"2007 will be a promising year. We are optimistic about Indonesia's economy. BI predicts it will grow around six percent based on moderate assumptions or 6.3 percent if we are optimistic or 5.7 percent if we are pessimistic," he said.
He said the country's foreign exchange reserves were predicted to be bigger this year than last year.
The optimism was shared by bankers. "Indonesia's macro economic growth is expected to reach over 6 percent in 2007 as all sectors, including banks, are predicted to grow," Retail Director of Bank Mega Kostaman Thayid said.
"Banks' loan-to-deposit ratio (LDR) is expected to increase to 70 percent from this year's 60 percent," the banker added.
Kostaman said 2007 was expected to be full of opportunities for banks to support efforts to boost economic growth.
The banker, however, also said economic growth could not be increased smoothly if the interest rates on bank credits were still high. The rates of interest on bank now ranged between 15 percent and 16 percent which was still high, he said.
He said the government was now seriously trying to develop the real sector and actively offering various projects to foreign investors.
Kostaman said bank interest rates were expected to go down to 12 -13 percent in the middle of 2007 thanks to the lowering of Bank Indonesia's benchmark rate.
Bank Indonesia had gradually cut its rate from 12.75 in May last year to 9.50 percent this month. The central bank reduced its rate to one digit to 9.75 percent for the first time last December.
With the lowering of the BI rate, foreign investors are expected to make long-term investments in Indonesia, Kostaman said.
Economic observer Hendrawan Supratikno of the TIB said a BI rate of 9.75 percent would help lower the interest rates on bank loans in the first semester of 2007.
"The lowering of the interest rates on bank credits is important to help enhance the dynamics of the production sector," said Hendrawan, who is also post graduate director of the Indonesian Business Institute and Informatics (IBI) said.
The government hopes that banks would lower the interest rate on credits to about 10 to 11 percent after BI had cut its benchmark rate.
About the government's expectation, Kostaman said it was difficult to fulfill. "With the inflation rate at 6-7 percent, it is hard for banks to meet the government's expectation," he said.
In the meantime, Corporate Banking Director of Bank Niaga, Chatherine Hadiman said it was the banks' respective policies to lower the interest rate on their credits.
According to Chaterine, the banks' interest rates would go down to between 13 and 14 percent if the BI rate was lowered to 9.50 percent.
"It is not easy for banks to meet the government's hope. The government's expectation can be met if the BI rate is lowered to between 7 and 8 percent," Chatherine said.
The lowering of the interest rate on bank credits is expected to help boost investments, the production sector and exports.
According to Stephen Schwartz, investment and exports in 2007 would increase slightly but exports which had been growing briskly of late would decline throughout the year.
He said the year-on-year value of exports in December increased by more than 29 percent but their volume grew only 10 percent.
Yet, he believed that Indonesia's economic growth rate in 2007 will reach six percent because new investment is likely to take place in the first half of the year. "I think it will be six percent as many quarters and analysts have projected," he said.
He said the government's target of 6.3 percent was an "ambitious" one. "But it could be achieved if the government is able to improve the investment climate and carry out infrastructure programs well." (A014/A/HAJM/17:55/I010/9.47) (T.SYS/A/A014/C/I010) 11-01-2007 09:53:26
Jakarta, Jan 11 (ANTARA) - Entering 2007, economic observers and bankers have expressed the belief that Indonesia's economy in 2007 will perform better than in 2006. They are optimistic economic growth this year will exceed last year's 5.5 percent.
But some of them doubt the validity of the government's economic growth projection of 6.3 percent for 2007.
IMF Representative in Indonesia Stephen Schwartz said the government's target of 6.3 percent was an "ambitious" one. "But it could be achieved if the government is able to improve the investment climate and carry out infrastructure programs well." Stephen said.
The same view was expressed by economic analyst Aviliani of the Indonesian Revival Team (TIB). She said the 6.3-percent target was difficult to achieve as the government still had little commitment to improving infrastructure and the investment climate.
Economic growth can be stimulated only if new infrastructure programs are carried out, she said. But if infrastructure development did not run well, Aviliani predicted economic growth would reach only between 5.6 and 5.7 percent which would still be higher than the figure in the previous year.
Fund allocations from the state budget for infrastructure development in 2007 were still not enough. "In the 2007 state budget, the allocation for infrastructure is only Rp100 trillion, while in the private business community's view the ideal budget for this sector is Rp300 trillion," she said.
The TIB economist said if Rp300 trillion was provided by the government for infrastructure development, the economic growth target of 6.3 percent would be achievable.
Bank Indonesia (BI) Governor Burhanuddin Abdullah predicted the country's economy would grow by around six percent this year.
"2007 will be a promising year. We are optimistic about Indonesia's economy. BI predicts it will grow around six percent based on moderate assumptions or 6.3 percent if we are optimistic or 5.7 percent if we are pessimistic," he said.
He said the country's foreign exchange reserves were predicted to be bigger this year than last year.
The optimism was shared by bankers. "Indonesia's macro economic growth is expected to reach over 6 percent in 2007 as all sectors, including banks, are predicted to grow," Retail Director of Bank Mega Kostaman Thayid said.
"Banks' loan-to-deposit ratio (LDR) is expected to increase to 70 percent from this year's 60 percent," the banker added.
Kostaman said 2007 was expected to be full of opportunities for banks to support efforts to boost economic growth.
The banker, however, also said economic growth could not be increased smoothly if the interest rates on bank credits were still high. The rates of interest on bank now ranged between 15 percent and 16 percent which was still high, he said.
He said the government was now seriously trying to develop the real sector and actively offering various projects to foreign investors.
Kostaman said bank interest rates were expected to go down to 12 -13 percent in the middle of 2007 thanks to the lowering of Bank Indonesia's benchmark rate.
Bank Indonesia had gradually cut its rate from 12.75 in May last year to 9.50 percent this month. The central bank reduced its rate to one digit to 9.75 percent for the first time last December.
With the lowering of the BI rate, foreign investors are expected to make long-term investments in Indonesia, Kostaman said.
Economic observer Hendrawan Supratikno of the TIB said a BI rate of 9.75 percent would help lower the interest rates on bank loans in the first semester of 2007.
"The lowering of the interest rates on bank credits is important to help enhance the dynamics of the production sector," said Hendrawan, who is also post graduate director of the Indonesian Business Institute and Informatics (IBI) said.
The government hopes that banks would lower the interest rate on credits to about 10 to 11 percent after BI had cut its benchmark rate.
About the government's expectation, Kostaman said it was difficult to fulfill. "With the inflation rate at 6-7 percent, it is hard for banks to meet the government's expectation," he said.
In the meantime, Corporate Banking Director of Bank Niaga, Chatherine Hadiman said it was the banks' respective policies to lower the interest rate on their credits.
According to Chaterine, the banks' interest rates would go down to between 13 and 14 percent if the BI rate was lowered to 9.50 percent.
"It is not easy for banks to meet the government's hope. The government's expectation can be met if the BI rate is lowered to between 7 and 8 percent," Chatherine said.
The lowering of the interest rate on bank credits is expected to help boost investments, the production sector and exports.
According to Stephen Schwartz, investment and exports in 2007 would increase slightly but exports which had been growing briskly of late would decline throughout the year.
He said the year-on-year value of exports in December increased by more than 29 percent but their volume grew only 10 percent.
Yet, he believed that Indonesia's economic growth rate in 2007 will reach six percent because new investment is likely to take place in the first half of the year. "I think it will be six percent as many quarters and analysts have projected," he said.
He said the government's target of 6.3 percent was an "ambitious" one. "But it could be achieved if the government is able to improve the investment climate and carry out infrastructure programs well." (A014/A/HAJM/17:55/I010/9.47) (T.SYS/A/A014/C/I010) 11-01-2007 09:53:26
BUSH EXPECTED TO HELP RI'S BIO-FUEL ENERGY PROGRAM
By Andi Abdussalam
| Jakarta, Nov 18 (ANTARA) - Indonesia's preparations to develop biofuel will seemingly get a further boost when President Susilo Bambang Yudhoyono and US President Geoerge W Bush meet in Bogor, West Java, on Monday. | |
ILLEGAL ARMS PLOT IN US HAS NO LINK WITH RI MILITARY
By Andi Abdussalam
Jakarta, Oct 9 (ANTARA) - The involvement of an Indonesian retired military officer in an arms smuggling conspiracy in the United States has raised concern as the Indonesian Defense Forces (TNI) might be accused of having a link with the retired serviceman.
Amidst reports about the involvement of four Indonesians in the arms conspiracy, the TNI leaders stepped forward quickly to explain that the TNI had no link whatsoever with the retired admiral who was arrested early this month for allegedly conspiring to sell arms and equipment to Sri Lanka rebels and Indonesian customers.
TNI spokesman Rear Admiral M. Sunarto Sjoekronoputro said that Erick Wotulo, 60, who was arrested in the U.S. territory of Guam, along with another Indonesian and two foreigners, had acted on his own.
The Defense Ministry also denied any link saying that Erick Wotulo was not its partner for weaponry purchases.
"He is a retired officer and we have no link with him, with regard to arms purchases for TNI's weaponry system," Director General of Defense Facilities of the Defense Ministry, Rear Marshal Slamet Prihantino said.
In the meantime, Vice President Jusuf Kalla also expressed the same view saying that the case of arms smuggling in the US involving four Indonesians, including retired brigadier general Erick Wotulo was the responsiblity of the persons concerned.
"The government cannot control everyone. So (Erick's case) is his personal responsibility," the vice president said.
Four Indonesian citizens being held in Guam on charges of selling illegal arms to Tamil Tiger fighters in Sri Lanka, will this week be transferred to Baltimore in the US State of Maryland, for further trials.
"The four detainees have agreed to undergo court proceedings in Baltimore because they bought the arms there," Cicilia Rusdiharini, Indonesian consular official in Los Angeles said on Friday.
The four Indonesians were Erick Wotulo (60), Subandi (60), Reinhard Rusli (34) and Helmi Soedirdja, along with Haniffa bin Osman (55) from Singapore and Thirunavukarasu Varatharasa (36) of Sri Lanka. They were now detained for the alleged conspiracy.
According to the Washington Post, the suspects are accused of arranging, during negotiations that accelerated in April, for a $900,000 shipment of arms to be delivered at international waters in the Indian Ocean.
The shipment was to be received by members of the violent separatist group, which the United States has designated as an terrorist organization since 1997.
Mark J. Bastan, special agent in charge of U.S. Immigration and Customs Enforcement's Baltimore office, said at a news conference that the shoulder-fired missiles, grenade launchers, machine guns and other weapons amounted to "an arsenal of U.S. military hardware -- enough to inflict serious casualties on any military force, let alone a civilian population."
The indictment unsealed accuses Indonesian nationals Erick Wotulo and Haji Subandi of conspiring to provide material support to a terrorist organization, conspiring to export arms without a required State Department license, and money laundering.
A related criminal complaint filed in Guam charges Thirunavukarasu Varatharasa, 36, a citizen of Sri Lanka, of participating in the alleged conspiracy to export arms.
Subandi is also charged in a separate complaint, along with two other Indonesian nationals, with conspiring to ship state-of the-art night vision goggles to Indonesia without the necessary State Department approvals.
Authorities said Subandi described the other defendants -- Reinhard Rusli, 34, and Helmi Soedirdja, 33 -- as his financial partners in the transactions.
The six persons, arrested in Guam, were believed to be brokers acting between an arms factory and the Tamil Tigers, a group so far considered a terrorist group by the US government.
They were captured in an undercover operation involving officers pretending to be arms brokers. If they were found guilty of conspiracy in the export of weapons, ammunition and support equipment to terrorists they could be sentenced up to 20 years in prison and fined up to US$500,000.
Haniffa bin Osman, Erick Wotulo, Haji Subandi and Thirunavukarasu were believed to have engaged in a conspiracy in the shipment of latest light firearms and military equipment to the Tamil Tigers.
Several times in May, Subandi sent various combat equipment such as special force weapons, helicopter parts, sonar technology equipment to undercover customs and immigration officers.
He also sent a list of 53 military weapons including machine and sniper's guns needed by Tamil Tigers, a US justice department says.
TNI Chief Marshal Djoko Suyanto said that Erick, who began his military carrier as a marine amphibious reconnaissance tank company commandant, was not a TNI partner for arms purchases. "What is clear is that he is not a TNI partner. But we will investigate the case," he added.
But the ministry of defense would not recheck the existence of the man who was born in North Sulawesi 59 years ago, because he was not listed as its partner for weaponry purchases.
"We fully leave the case to the U.S. government because it was the US government who arrested him and will investigate him further. What is clear is that we will not conduct a recheck because Erick was never registered as a partner," he said.
Slamet Prihantino said that the ministry of defense had so far purchased arms for the development of TNI's weaponry system through an export credit while the small scale procurement of arms for strength development had been carried out directly by the TNI headquarters.
According to Vice President Jusuf Kalla, the country's population now reached around 220 million so that it was impossible for the government to control each person.
He said however that the Indonesian consulate general in Los Angeles had been asked to provide Erick with legal or other necessary aid. (T.A014/A/HNG/M016) (T.A014/A/A014/M016) 08-10-2006 22:01:12
Jakarta, Oct 9 (ANTARA) - The involvement of an Indonesian retired military officer in an arms smuggling conspiracy in the United States has raised concern as the Indonesian Defense Forces (TNI) might be accused of having a link with the retired serviceman.
Amidst reports about the involvement of four Indonesians in the arms conspiracy, the TNI leaders stepped forward quickly to explain that the TNI had no link whatsoever with the retired admiral who was arrested early this month for allegedly conspiring to sell arms and equipment to Sri Lanka rebels and Indonesian customers.
TNI spokesman Rear Admiral M. Sunarto Sjoekronoputro said that Erick Wotulo, 60, who was arrested in the U.S. territory of Guam, along with another Indonesian and two foreigners, had acted on his own.
The Defense Ministry also denied any link saying that Erick Wotulo was not its partner for weaponry purchases.
"He is a retired officer and we have no link with him, with regard to arms purchases for TNI's weaponry system," Director General of Defense Facilities of the Defense Ministry, Rear Marshal Slamet Prihantino said.
In the meantime, Vice President Jusuf Kalla also expressed the same view saying that the case of arms smuggling in the US involving four Indonesians, including retired brigadier general Erick Wotulo was the responsiblity of the persons concerned.
"The government cannot control everyone. So (Erick's case) is his personal responsibility," the vice president said.
Four Indonesian citizens being held in Guam on charges of selling illegal arms to Tamil Tiger fighters in Sri Lanka, will this week be transferred to Baltimore in the US State of Maryland, for further trials.
"The four detainees have agreed to undergo court proceedings in Baltimore because they bought the arms there," Cicilia Rusdiharini, Indonesian consular official in Los Angeles said on Friday.
The four Indonesians were Erick Wotulo (60), Subandi (60), Reinhard Rusli (34) and Helmi Soedirdja, along with Haniffa bin Osman (55) from Singapore and Thirunavukarasu Varatharasa (36) of Sri Lanka. They were now detained for the alleged conspiracy.
According to the Washington Post, the suspects are accused of arranging, during negotiations that accelerated in April, for a $900,000 shipment of arms to be delivered at international waters in the Indian Ocean.
The shipment was to be received by members of the violent separatist group, which the United States has designated as an terrorist organization since 1997.
Mark J. Bastan, special agent in charge of U.S. Immigration and Customs Enforcement's Baltimore office, said at a news conference that the shoulder-fired missiles, grenade launchers, machine guns and other weapons amounted to "an arsenal of U.S. military hardware -- enough to inflict serious casualties on any military force, let alone a civilian population."
The indictment unsealed accuses Indonesian nationals Erick Wotulo and Haji Subandi of conspiring to provide material support to a terrorist organization, conspiring to export arms without a required State Department license, and money laundering.
A related criminal complaint filed in Guam charges Thirunavukarasu Varatharasa, 36, a citizen of Sri Lanka, of participating in the alleged conspiracy to export arms.
Subandi is also charged in a separate complaint, along with two other Indonesian nationals, with conspiring to ship state-of the-art night vision goggles to Indonesia without the necessary State Department approvals.
Authorities said Subandi described the other defendants -- Reinhard Rusli, 34, and Helmi Soedirdja, 33 -- as his financial partners in the transactions.
The six persons, arrested in Guam, were believed to be brokers acting between an arms factory and the Tamil Tigers, a group so far considered a terrorist group by the US government.
They were captured in an undercover operation involving officers pretending to be arms brokers. If they were found guilty of conspiracy in the export of weapons, ammunition and support equipment to terrorists they could be sentenced up to 20 years in prison and fined up to US$500,000.
Haniffa bin Osman, Erick Wotulo, Haji Subandi and Thirunavukarasu were believed to have engaged in a conspiracy in the shipment of latest light firearms and military equipment to the Tamil Tigers.
Several times in May, Subandi sent various combat equipment such as special force weapons, helicopter parts, sonar technology equipment to undercover customs and immigration officers.
He also sent a list of 53 military weapons including machine and sniper's guns needed by Tamil Tigers, a US justice department says.
TNI Chief Marshal Djoko Suyanto said that Erick, who began his military carrier as a marine amphibious reconnaissance tank company commandant, was not a TNI partner for arms purchases. "What is clear is that he is not a TNI partner. But we will investigate the case," he added.
But the ministry of defense would not recheck the existence of the man who was born in North Sulawesi 59 years ago, because he was not listed as its partner for weaponry purchases.
"We fully leave the case to the U.S. government because it was the US government who arrested him and will investigate him further. What is clear is that we will not conduct a recheck because Erick was never registered as a partner," he said.
Slamet Prihantino said that the ministry of defense had so far purchased arms for the development of TNI's weaponry system through an export credit while the small scale procurement of arms for strength development had been carried out directly by the TNI headquarters.
According to Vice President Jusuf Kalla, the country's population now reached around 220 million so that it was impossible for the government to control each person.
He said however that the Indonesian consulate general in Los Angeles had been asked to provide Erick with legal or other necessary aid. (T.A014/A/HNG/M016) (T.A014/A/A014/M016) 08-10-2006 22:01:12
INONESIAN GOVT HUNTING DOWN HAZE CULPRITS
By Andi Abdussalam
Jakarta, Aug 27 (ANTARA)- Against the backdrop of mounting complaints at home and abroad over the perils of annual haze, Indonesian law enforcers are making arrests and quizzing plantation companies suspected to be responsible for forest fires in several parts of the country.
Police have arrested 20 people in Sumatra's Riau province and will quiz at least six plantation firms in Kalimantan over alleged roles in land and forest fires which have created haze and disturbed health, trade, land, sea and air transportations these past weeks.
The arrests were made about a week after President Susilo Bambang Yudhoyono voiced his dissatisfaction over regional governments' inability to prevent and overcome forest fires in their respective provinces.
"We can still witness various fires in the last several weeks. We really regret their occurrence because all of these are related to the lack of responsibility, attention and leadership of the regional governments concerned," the President told Regional Representatives Council (DPD) at the parliament building last week.
The President had previously in June called on ministers concerned, provincial governors, district chiefs and mayors to jointly prevent and anticipate forest and land fires and to handle them whenever they occur.
In order to take follow up steps, the President summoned his relevant ministers to instruct legal sanction against plantation owners who used fires to clear forest areas for plantations. "Those who set forests on fire, mostly big plantation companies, must get legal sanction," Communications Minister Sofyan Djalil said quoting the Head of State.
Vice President Jusuf Kalla has also ordered police to take firm actions against those responsible for forest fires. "I have ordered the Riau Police chief to take stern actions and I have received reports that about 20 forest fire suspects in the province had been arrested," Kalla said.
The Vice President said police made the arrests on the suspects who included Indonesian businessmen and of a Malaysian plantation company.
In West Kalimantan, police will query executives of six plantation companies in whose operational areas hot spots have been detected.
The police would thus ask help from civil servant interrogators and the Environment Ministry to observe the location of the hot spots, West Kalimantan Police chief Brig Gen Nanan Soekarna was quoted as saying.
Nanan said the six plantation companies were located in Pontianak and Sambas districts. The civil servants interrogator team and the Environment Ministry officials would arrive here to conduct the inspection on Tuesday (Aug 29).
Law No. 23/1997 on environmental management stipulates a 10-year imprisonment and US$50,000-fine for people setting forests and land on fire for land clearing.
The law was enacted when the ASEAN region was plagued by the worst-ever haze crisis that cost it some 9.0 billion dollars due to air travel, tourism and other business disruptions in 1997-98.
Annual forest fires in Indonesia notably in Sumatra and Kalimantan always affect its neighboring countries as Malaysia, Singapore, Brunei Darussalam and Thailand.
At Association of Southeast Asian Nations (ASEAN) talks held in Kuala Lumpur last week, Malaysian Trade Minister Rafidah Aziz said that Indonesia should take tough action to resolve the recurring issue.
The current measures by the Indonesian government, however, are not being taken because of overseas pressure only but also because of the perils suffered at home.
"The government was making the efforts not because of pressure from overseas but because of the interest of people at home," Vice President Jusuf Kalla said.
"It is not Kuala Lumpur alone which has complained. It was the people of Riau (Sumatra) and Pontianak (West Kalimantan) who have complained in the first place. Compared to the disturbance in Kuala Lumpur, the one in Pontianak has caused students to be unable to go to school," the Vice President said.
He was referring to the haze problem which has been taking place in the five provinces of Riau, Jambi, South Sumatra, Central Kalimantan and West Kalimantan.
In recent days, the forest fire-triggered haze has created health problems and delayed flights in Sumatra and Kalimantan.
Thick haze blanketed Jambi on Friday causing visibility to drop to between 200 and 250 meters. Motorists have to turn on their head lights in order to avoid collision as the haze was obstructing visibility.
The local health service reported that over the past week the number of people suffering from respiratory infection increased to about 10,000 people. People in Riau province have also suffered from respiratory infection.
Airport, river and sea transportation activities from and to Jambi during the past few days were also disturbed.
Even in West Kalimantan, visibility was down to less than the normal standard of 800 meters on Thursday, leading to the suspension of flights from and to the provincial capital Pontianak.
Two airplanes plying the Jakarta-Pontianak route aborted their flights when they were on their way to the capital of West Kalimantan after visibility in Supadio airport was down to 400 meters on Thursday. "With a visibility of only 400 meters, the life of passengers are at stake," officials said.
President Yudhoyono ordered Chief Welfare Minister Aburizal Bakrie to conduct cloud seeding and to drop water bombs in order to put out forest fires. For this purpose, the government has set aside Rp1 billion to Rp2 billion to finance the cloud seeding.
Hercules planes will be used to drop water bombs to the scenes of hotposts. "Each of the planes would carry about 8,000 liters of water to be dropped over the scene of forest fires," State Minister of Research and Technology Kusmayanto Kadiman said meanwhile.
(T.AO14/A/b003/B003). (T.SYS/A/A014/C/B003) 27-08-2006
Jakarta, Aug 27 (ANTARA)- Against the backdrop of mounting complaints at home and abroad over the perils of annual haze, Indonesian law enforcers are making arrests and quizzing plantation companies suspected to be responsible for forest fires in several parts of the country.
Police have arrested 20 people in Sumatra's Riau province and will quiz at least six plantation firms in Kalimantan over alleged roles in land and forest fires which have created haze and disturbed health, trade, land, sea and air transportations these past weeks.
The arrests were made about a week after President Susilo Bambang Yudhoyono voiced his dissatisfaction over regional governments' inability to prevent and overcome forest fires in their respective provinces.
"We can still witness various fires in the last several weeks. We really regret their occurrence because all of these are related to the lack of responsibility, attention and leadership of the regional governments concerned," the President told Regional Representatives Council (DPD) at the parliament building last week.
The President had previously in June called on ministers concerned, provincial governors, district chiefs and mayors to jointly prevent and anticipate forest and land fires and to handle them whenever they occur.
In order to take follow up steps, the President summoned his relevant ministers to instruct legal sanction against plantation owners who used fires to clear forest areas for plantations. "Those who set forests on fire, mostly big plantation companies, must get legal sanction," Communications Minister Sofyan Djalil said quoting the Head of State.
Vice President Jusuf Kalla has also ordered police to take firm actions against those responsible for forest fires. "I have ordered the Riau Police chief to take stern actions and I have received reports that about 20 forest fire suspects in the province had been arrested," Kalla said.
The Vice President said police made the arrests on the suspects who included Indonesian businessmen and of a Malaysian plantation company.
In West Kalimantan, police will query executives of six plantation companies in whose operational areas hot spots have been detected.
The police would thus ask help from civil servant interrogators and the Environment Ministry to observe the location of the hot spots, West Kalimantan Police chief Brig Gen Nanan Soekarna was quoted as saying.
Nanan said the six plantation companies were located in Pontianak and Sambas districts. The civil servants interrogator team and the Environment Ministry officials would arrive here to conduct the inspection on Tuesday (Aug 29).
Law No. 23/1997 on environmental management stipulates a 10-year imprisonment and US$50,000-fine for people setting forests and land on fire for land clearing.
The law was enacted when the ASEAN region was plagued by the worst-ever haze crisis that cost it some 9.0 billion dollars due to air travel, tourism and other business disruptions in 1997-98.
Annual forest fires in Indonesia notably in Sumatra and Kalimantan always affect its neighboring countries as Malaysia, Singapore, Brunei Darussalam and Thailand.
At Association of Southeast Asian Nations (ASEAN) talks held in Kuala Lumpur last week, Malaysian Trade Minister Rafidah Aziz said that Indonesia should take tough action to resolve the recurring issue.
The current measures by the Indonesian government, however, are not being taken because of overseas pressure only but also because of the perils suffered at home.
"The government was making the efforts not because of pressure from overseas but because of the interest of people at home," Vice President Jusuf Kalla said.
"It is not Kuala Lumpur alone which has complained. It was the people of Riau (Sumatra) and Pontianak (West Kalimantan) who have complained in the first place. Compared to the disturbance in Kuala Lumpur, the one in Pontianak has caused students to be unable to go to school," the Vice President said.
He was referring to the haze problem which has been taking place in the five provinces of Riau, Jambi, South Sumatra, Central Kalimantan and West Kalimantan.
In recent days, the forest fire-triggered haze has created health problems and delayed flights in Sumatra and Kalimantan.
Thick haze blanketed Jambi on Friday causing visibility to drop to between 200 and 250 meters. Motorists have to turn on their head lights in order to avoid collision as the haze was obstructing visibility.
The local health service reported that over the past week the number of people suffering from respiratory infection increased to about 10,000 people. People in Riau province have also suffered from respiratory infection.
Airport, river and sea transportation activities from and to Jambi during the past few days were also disturbed.
Even in West Kalimantan, visibility was down to less than the normal standard of 800 meters on Thursday, leading to the suspension of flights from and to the provincial capital Pontianak.
Two airplanes plying the Jakarta-Pontianak route aborted their flights when they were on their way to the capital of West Kalimantan after visibility in Supadio airport was down to 400 meters on Thursday. "With a visibility of only 400 meters, the life of passengers are at stake," officials said.
President Yudhoyono ordered Chief Welfare Minister Aburizal Bakrie to conduct cloud seeding and to drop water bombs in order to put out forest fires. For this purpose, the government has set aside Rp1 billion to Rp2 billion to finance the cloud seeding.
Hercules planes will be used to drop water bombs to the scenes of hotposts. "Each of the planes would carry about 8,000 liters of water to be dropped over the scene of forest fires," State Minister of Research and Technology Kusmayanto Kadiman said meanwhile.
(T.AO14/A/b003/B003). (T.SYS/A/A014/C/B003) 27-08-2006
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