Senin, 23 Mei 2011

RULING PARTY FIRES TREASURER

By Andi Adussalam

          Jakarta, May 24 (ANTARA) - After several weeks under the spotlight of the public and media reports, the ruling Democrat Party (PD) fired on Monday its general treasurer Muhammad Nazaruddin for  alleged attempt to give S$120 thousand in "gratification money" to the Constitutional Court (MK) last September.

         Apart from the S$120 thousand case that came up to the surface two days ago, the PD general treasurer has also been alleged to have link with an alleged corruption case in the construction of a SEA Games athlete house in Palembang, South Sumatra.

         But the immediate action taken by the PD against him was his link to the money he was reportedly trying to give to the Constitutional Court.

         The decision of the DP to discharge its treasurer was announced by its Council of Honors on Monday, two days after MK chairman Mahfud MD reported the case to PD chief patron Susilo Bambang Yudhoyono.

        Mahfud reported to Yudhoyono, who is also the president, on Saturday that Nazaruddin had tried to give money amounting to 120 thousand Singapore dollars to MK Secretary General Janedjri M Gaffar in September last year.

        According to Mahfud, it was Nazaruddin who called and asked Janedjri to meet him at a restaurant in Kemang area, South Jakarta, on September 23, 2010. Janedjri complied with Nazaruddin request because the DP treasurer was a member of Commission III of the House of Representatives and they have often met as working partners in the House
    At the restaurant, Nazaruddin gave Janedjri money in two envelops. He refused to accept it but Nazaruddin left it behind.  The following day, Janedjri phoned him two times to return the money yet Nazaruddin still rejected it.

         Then the two envelopes were sent to Nazaruddin's house in Pejaten, South Jakarta, on September 27, 2010, and at that time the envelopes were opened. It was then known that each of the envelops contained S$60,000. Nazaruddin phoned later Janedjri, asking his reason why he returned the money, which he said as a token of friendship.

        "Because we were suspicious about the money, I ordered that it should be returned and a receipt should be obtained as proof that it has been handed back over. This case could be processed as a violation to the ethics," Mahfud said
   In a press conference following his meeting with Mahfud, Yudhoyono said that Nazaruddin's alleged attempt to provide the money could be classified as a legal case. "I can say it is a matter of law. I would say it is not me who must handle it but the law enforcers," the president said.

         Over two days, the issue of the handing over to the MK of the money, which Mahfud said not a bribe but a kind of gratification, had become the media and public spotlights that put the ruling DP at an unfavorable position.

         Therefore, in an effort to improve its image, the Democrat Party's Council of Honors decided to discharge Nazaruddin from his position as the party general treasurer.

         "If Muhammad Nazaruddin remains in his post as a general treasurer it will have a bad impact on the person concerned or the Democrat Party," Amir Syamsuddin, secretary of the party's honors council, said.

         Therefore,  the party had finally taken the  decision to fire Muhammad Nazaruddin as the party's general treasurer, he said when announcing the decision at a press conference at the office of the Democrat Party Executive Board on Jalan Kramat VII here on Monday evening.

         He said the decision was taken with a view to neutralizing the negative reports.  Amir said if Muhammad Nazaruddin was not in the post any longer the negative reports from mass media would stop. "Therefore the advisory board fired him and relieved him from his post as a general treasure," he said.

         He said the advisory board hoped all parties concerned would respect the principles of presumption of innocence and legal institutions would process the legal case Nazaruddin had been accused of professionally.

         According to Hendardi, chairman of the Setara Institute for Democracy and Peace, the decision to fire Nazaruddin was taken half-heartedly and merely an effort to improve the image of the PD in the eyes of the public.

        "The decision does not fully reflects the sincerity of PD chief  patron, Susilo Bambang Yudhoyono,  to combat political corruption in this country, but constitutes an effort to restore the image of the Democrat Party in the eyes of the public," Hendardi said on Tuesday.

         He said that the decision was a compromised and half-hearted decision. PD General Chairman Anas Urbaningrum and Yudhoyono cannot claimed that the ruling Democrat Party is already clean by its action to discharge Nasaruddin. After all, it has lost the public trust on its efforts to eradication corruption initiated by political elite.

         Hendardi said that the public had also been suspicious about other Democrat Party elite because political corruption could not be committed by only one person. Therefore, he believed that Nazaruddin is only a victim in the PD's efforts to restore its image.

         Yudhoyono and Anas should have suspended Nazaruddin since he was reportedly implicated in another alleged corruption case in the construction SEA Games athlete house in Palembang, Hendardi said.

         He said that the "tug-of-war" among the PD elite with regard to the Nazaruddin case had left the impression that Yudhoyono and other PD executives were not sincere, neither firm in overcoming political corruption in this country.

        After all, he said, Yudhoyono and Anas have already been informed of the Nazaruddin gratification money to the Constitutional Court since November 2010. ***3***

(T.A014/A/H-NG/F001) 24-05-2011 12:16:

Rabu, 18 Mei 2011

RI CRUDE PRODUCTION DECLINING

By Andi Abdussalam

          Jakarta, May 18 (ANTARA) - Once an oil exporter, Indonesia this year is expected to import about 500,000 barrels of crude per day as its production continues to decline below the target as set in the 2011 state budget at 970,000 barrel per day (bpd).

         "We predict that our oil and condensate production would only reach about 950,000 bpd up to the end of the year. After all, at present the average oil production level is  only about  910,000 bpd," Head of the Upstream Oil and Gas Regulating Agency (BP Migas) R Priyono said.

         BP Migas, he said, would face difficulty to achieve the production target of 970,000 barrels per day (bpd). According to the BP Migas chief, unplanned shutdowns of oil fields have been among the causes of the declining in the country's crude production.

         The government is actually targeting a crude production of  1.2 million bpd, a figure which is still below the domestic need of about 1.4 million bpd. This would force the government to import crude at the amount of over 500,000 bpd.

         Increase in production is much expected from oil contractors. However most of them have not yet fulfilled their commitment.

         The BP Migas said 77 or 72 percent of 107 oil and gas blocks signing contracts between 2002 and 2008 have yet to fulfill exact commitment to conduct explorations.

         Only 30 or 28 percent of them have met the commitment, according to BP Migas data made available on Monday.

         Earlier at a meeting with Energy and Mineral Resources Minister Darwin Saleh,  BP Migas Chief R Priyono said 23 or 24 percent of the 77 blocks failed to meet the commitment because of contractors' internal problems.

         The internal problems concerned among others operators' rights, finance, and holding companies' priorities, the data show. Meanwhile, 15 or 16 percent of the 77 blocks failed to meet the commitment because of overlapping claims to land, 14 or 15 percent because of geological and geophysical factors, and 12 or 13 percent because of compensation problems.

         The data show 10 or 11 percent failed to meet the commitment due to the absence of supporting equipment and services, 9 percent due to operational problems, 8 or 9 percent due to the absence of data and  2 percent due to special conditions such as those in Aceh and border areas.

        In an effort to raise production, BP Migas  will discuss it with the government. "Thus, to achieve the 950,000 bpd this month, the  remaining production must be set at an average of 970,000 bpd," he said.

         He said that efforts carried out so far to increase production were among others preventing the unplanned shutdowns particularly in the work areas of ConocoPhillips and PT chevron Pacific Indonesia.

         PB Migas will also do its best to reduce the declining production rate which at present is about two percent to below one percent, or at least similar to the achievement made in 2010. Production in 2010 was set at 965,000 bpd but the realization was only 956,000 bpd.

         The declining in the country's oil production caused  Vice President Boediono to express concern on Wednesday that the oil sector had not yet shown good performance.

         "There is a sector I am not happy about namely our oil sector which is not performing well. Oil production has dropped," he said in his address at the opening of the 35th Indonesia Petroleum Association (IPA) Convention and Exhibition.

         The rate of oil explorations is still far before the need to increase production to achieve the production target of 1.2 million barrels a day.  Therefore, the  government is serious to cooperate with oil investors and industrialists to settle problems.

         To overcome the situation, the vice president said, it needs cooperation to find the right and sustainable model and real improvement in its implementation. "We also need to work hard to find a way to get quicker gains," he said.

         Among the ways are, he said, increasing efforts to exploit the potentials of oil production hike and eliminate unexpected production stoppages that would affect oil production.

         "I will ask BP Migas  and the ministry of energy and mineral resources to pay a serious attention to the issue," he said.

         In the meantime, Energy and Mineral Resources Minister Darwin Saleh has promised to increase the country's crude oil production as  requested by Vice President Boediono.

         "The request of the vice president is a challenge," the minister said here on Wednesday. His ministry and the  BP Migas would cooperate closely to raise national oil production.

         According to the minister,  the recent decline in  oil production  has been caused more by unplanned shutdowns. "We will ask contractors to reduce the number of shutdowns," he said. The long-term challenge was how to speed up the production increase through enhanced oil recovery (EOR) efforts such as the use of surfactant in the field of PT Chevron Pacific Indonesia (CPI).

         "We have applied the EOR system but we still need time to carry it out perfectly. If that already happens oil  production will  peak in the 2025-2030 period," he said.***5***

(T.A014/A/H-NG/a014) 19-05-2011 00:27:3

Senin, 16 Mei 2011

CTI COUNTRIES RENEW TALKS ON WORLD LARGEST CORAL REEFS

By Andi Abdussalam

          Jakarta, May 17 (ANTARA) - Local authorities of six countries grouped in the Coral Triangle Initiative (CTI) began four days of talks at Wakatobi, Southeast Sulawesi province on Monday evening, on how to preserve the world largest coral reef resources which sustain the lives of over 120 million coastal people in Indonesia, Timor Leste, Papua New Guinea, Malaysia, the Philippines and the Solomon Islands.

         "I hope through this meeting we will be able to agree on the formation of an association of district heads and mayors of coastal areas in six CTI countries," Wakatobi District Head Hugua said when he opened the meeting.

         The meeting, which will discuss a wide range of coral reef related issues such as food security, global climate change, energy scarcity and environment, is expected to formulate concrete steps as it is being attended by authorities directly in charge in the fields.

         Kety who represented the US CTI SP program director said the meeting of district heads and mayors from six CTI countries was more important and strategic than the meeting of ministers who only spoke of theory and rhetoric to conserve the environment.

         "District heads and mayors have the authority to save the environment so the meeting is very important and strategic to conserve natural resources in a sustainable way," she said.

         The district heads and mayors gathered to follow up a series of similar meetings held after the establishment of the CTI in mid 2007 which is intended as a forum for discussing efforts to safeguard the world's largest coral reef resources in the triangular sea waters.

         The triangular coral zone is an expanse of ocean covering 2.3 million square miles (5.7 million km2). This area, sometimes referred to as the "Amazon of the Seas", is the epicenter of marine life abundance and diversity on the planet.

         In some areas, it has more than 600 coral species (more than 75 percent of all known coral species), 53 percent of the world's coral reefs, 3,000 fish species, and the greatest extent of mangrove forests of any region in the world.

         In addition, the coral triangle serves as the spawning and juvenile growth areas for what is the largest tuna fishery in the world, serving as a source of income and food for people living in the coastal areas.

         Therefore, the meeting of the district heads and mayors who are the immediate authorities is expected to build a commitment to the preservation and usage of marine resources as environmentally friendly and sustainable food materials.

         Hugua said recently that it was therefore urgent for the meeting to discuss efforts of maintaining resilience of food coming from the sea, and wisdom in the management of marine and fishery resources besides global warming issues and weather anomalies.

         In this context, Hugua said, district heads and mayors as the decision makers of local level in the six countries will promote a commitment on how to maintain and make use of the marine resources as food stuff on a sustainable basis and environmentally friendly.

         "Coral reefs living in the sea may produce oxygen to prevent global warming on the earth. Therefore their conservation is constantly maintained wisely in using various potentials in the sea," he said.

         Coral reefs function as natural ramparts by reducing high-wave energy of typhoon and storm from their structures, protecting coastal beaches by providing sands that are by-products of eroded coral skeletons. Thus, coral reefs help prevent sediments from washing up and damaging the shoreline.

        Hugua said it was in that regard coral reef was vitally importance for human lives and needed to be protected. His experience during a diving in the Philippines had inspired to him to called for a meeting  to discuss further efforts for preserving marine resources.

        In his opening address on Monday evening,  Hugua said he initiated the CTI meeting after being inspired by his experience while diving the Carlos P Garcia waters, Bahol province, the Philippines where coral reef destruction had reached an alarming level.

       The Coral Triangle Initiative, which was launched by Indonesian President Susilo Bambang Yudhoyono and five other country leaders in mid-2007, covers the exclusive economic zones of six countries: Indonesia, Timor Leste, the Philippines, Malaysia, Papua New Guinea, and the Solomon Islands. It is the epicenter of marine life abundance and diversity on the planet. Its biological resources sustain the lives of over 120 million people.

         As part of a concrete step in its efforts with other five CTI countries in preserving the marine resources, Indonesia has set itself the target of creating up to 20 million hectares of conservation area by 2020.

         According to Marine Affairs and Fisheries Minister Fadel Muhammad, right now Indonesia has 13 million hectares of conservation area. As part of the efforts, the minister late last year inaugurated a marine conservation area in Nusa Penida, Bali, in a move to protect marine and coastal life as well as to encourage sustainable marine tourism.

         The results of a survey made by the TNC Indonesia Marine Program show the Nusa Penida waters has 1,419 hectares of coral reefs and 230 hectares of mangrove consisting of 13 kinds.

         Fadel said the creation of conservation areas in Nusa Penida and the rest of the country was a concrete step taken by the government to implement the CTI launched by Indonesia, along with the Philippines, Malaysia, Timor Leste, Papua New Guinea, and Solomon Islands.***4***

(T.A014/A/H-NG/O001  ) 17-05-2011 13:05:1

Minggu, 15 Mei 2011

AL-ZAYTUN, NII ALLEGED LINKS SPARK CONTROVERSIES

By Andi Abdussalam

          Jakarta, May 16 (ANTARA) - The alleged links between the Indonesian Islamic State (NII) movement and the Al-Zaytun Islamic boarding school in Indramayu, West Java, has sparked controversies following terror acts that often threaten security in the country of late.

         In the past several weeks, the public and media have cast spotlight over radicalism and extremism  amid terrors such as the bombing of a mosque in Cirebon and threats of package or parcel bombs sent to certain targets or planted in different locations in Jakarta and its surroundings.

         With the ensuing developments, fingers were pointed to the NII, an outlawed organization founded by Sekarmadji Maridjan Kartosoewirjo which, in the 1950s, was fighting for the establishment of Islamic caliphate in Indonesia. S.M. Kartosoewirjo himself was executed by the government in September 1962.

        Amid the discourse over the danger being posed by NII cadres, the public attention was ultimately shifted to Al-Zaytun, a modern Islamic boarding school which has frequently been visited by government officials but is later believed to be a center for fostering NII cadres.

        This sparked controversies. Even, within the complex, there is the Al-Zaytun University inaugurated by former president Soeharto in 2005.

         No wonder, if the Al-Zaytun is often visited by government officials. But former chief of the National Intelligence Agency (BIN) Hendropriyono denied if Al-Zaytun was built by the government.  
    "That's why in the past President Soeharto, President BJ Habibie and other government officials, including me once visited the place to neutralize the misconception. At that time there was no political ideology (in that boarding school) that ran counter to the state Pancasila philosophy," Hendroprijono was quoted by Tribune Jabar online media as saying.

         Hendropriyono acknowledged that Al-Zaytun did use NII symbols but it used them only as a medium to attract students. "If there is opinion that Al-Zaytun has been designed by government officials, designed by Soeharto, and now is backed up by the government, this opinion is not true. What is true is that Al-Zaytun has used NII symbols to attract people and to win money for its development. It even benefits Muslims," said Hendropriyono.

         However, many quarters believed that Al-Zaytun is linked with the NII. Thus, the statement of Religious Affairs Minister Suryadharma Ali in his recent visit to the Islamic boarding school that it had no links with NII has been responded to with criticism.

         Suryadharman Ali said that the Al-Zaytun Islamic boarding school was not linked with the  NII  movement because the school teaches tolerance. "It is very difficult to link the Al Zaytun Islamic boarding school with the NII organization which is radical," he said at a press conference at the Al Zaytun last week.

         He said generally radical Islamic ideologies are not tolerant very much and hate anything modern. The educational pattern used in Al Zaytun  is modern and adopts modern arts for teaching materials for its  students. Radical ideologies also have a special characteristic which is they always call those having ideologies different from theirs infidels.

         "When we conducted afternoon prayers Syekh AS Panji Gumilang, the chief of the school even asked me to lead it, proving that there was no radicalism being developed in this school," he said.

         On the occasion, Syekh AS Panji Gumilang  said that he had never entered into the NII organization like what several parties had accused him of.  "I am not connected with the NII history," he said. Based on history the NII thrived in Indonesia in 1949 and dissolved in 1962. "After that there is no more organization called NII," he said.

         However, the minister's visit to the NII complex was described by others as a ridiculous visit.

    "What for, the minister could not have found anything there," NII Crisis Center founder Ken Setiawan told a seminar on the prevention of NII ideology.

         He said that Al-Zaytun had been conditioned in such a way to cover up its relations with NII because the NII teachings were not taught in the boarding school while its students were not members of the NII movement.

         "The minister in his visit will at the most only find buildings, constructions and students. He would not find any NII activities there because the movement of NII is underground in nature, so that to reveal it, an intelligence technique is needed," he said.

         He said that it could therefore be understood if the religious affairs minister concluded in his brief visit that Al-Zaytun had no relations with NII. The minister's conclusion was different from the results of a religious affairs ministry's research in 2002.

         The religious affairs ministry and the Indonesian Ulema Council (MUI) carried out research on the matter in 2002 and concluded that Al-Zaytun and NII had links but the results of their research were not made public.

         "If one is willing to find the relations between Al-Zaytun and NII, he or she should trace information from former victims of NII, people in its surroundings and parents whose children have become victims," Setiawan said.

         Yet, Minister Suryadharma Ali challenged the public to prove it if Al-Zaytun had links with the NII.   "Those who said that Al-Zaytun is linked with NII had better prove it. We fear that allegations without proof would only turn into slander,"  Suryadharma Ali said in Bandung on Sunday evening.

         The minister said that if there was proof of its link with NII, why police did not take legal steps to process it. "If there is proof why law enforcers did not take action and process it," he said.

         "I come there to observe directly what they were doing. I did not merely make a conclusion. I did not see any links with NII," he said.

         He even denied having difference of opinion with the Indonesian Ulema Council (MUI) regarding the NII, Al-Zaytun link issues.  "We have no difference of opinion. We differ only in research matters," the minister. The ministry of religious affairs focused its studies on the education aspect while MUI focused its studies on education and leadership.

         The religious affairs minister said that his ministry and the MUI had the same opinion on the educational aspects in the Al Zaytun boarding school.  "Namely, Al Zaytun has no connection with the NII  in terms of education system," he said.***3***
(T.A014/A/H-NG/F001) 16-05-2011 11:46:

Jumat, 13 Mei 2011

MA-60 PLANES' AIRWORTHINESS, MARK-UP ISSUES

by Andi Abdussalam

          Jakarta, May 13 (ANTARA)  -  The government is checking the airworthiness of MA-60 airplanes in the country, while the Corruption Eradication Commission (KPK) is also studying a report on alleged price mark up  in the purchase of the Chinese-made aircraft.

         The examinations on the airplanes followed the crash recently in West Papua of  one of the 13 MA-60s purchased by state-owned Merpati Nusantara Airlines from China's Xian Aircraft International Company (XAC).

         Following the accident which killed 27 passengers and crew members,  certain quarters have asked that the airworthiness of the plane  be checked as there was suspicion the planes lacked quality and were purchased at a marked up price.

        President Susilo Bambang Yudhoyono during a cabinet meeting on Thursday called on all ministers concerned to explain to the public about the process of procurement of the Chinese made MA-60 plane.

         "What is important is clear explanation. Certainly the right parties to give the explanation are the Merpati leadership itself and the state enterprises minister at present and when the procurement was made," the president said.

         He said the public deserved clear explanation regarding the process of procurement of the plane that is now creating a polemic.

         Regarding the airworthiness of the plane, Transportation Minister Freddy Numberi said the government has decided to check it and ascertain the plane's airworthiness in order to ensure the safety of their use in the future.

        "We have issued letters ordering an inspection and safety audit on  the 12 MA-60 airplanes,"  Freddy Numberi told the press.  He said that the inspection on the airworthiness of the 12 MA-60s was done by a team formed by the ministry of transportation. It will work for one week to check  the 12 MA-60s airplanes.

         During the inspection, the operation of the 12 MA-60s would be managed in such away so that it would not disturb flight services. At present, the 12 planes are serving 66 routes most of which are Indonesian eastern regions.

         If in the examination process, the team found matters which could threaten or endanger flights, the plane concerned would be grounded.

         State Enterprises Minister Mustafa Abubakar agreed that the plane would not be grounded and asked Merpati to operate them because based on their technical specification they were declared airworthy.

        "As the regulator of Merpati and holder of its major shares, we do not ban MA-60 to fly. Please fly because we believe MA-60s meet the technical airworthiness requirement," Minister Mustafa Abubakar said.

         Yet, he acknowledged that at first, he was thinking to ground the planes. "At the beginning I thought the planes should be grounded on the reason of passenger safety. But after discussing it with the transportation minister I found that the planes are fit to fly," he said.

        Earlier President Director of PT Merpati Nusantara Airlines, Sardjono Jhony Tjitrokusumo said he was ready to resign if it is proven that the crash of  Merpati MA-60 in Kaimana Bay, Papua, on Saturday (May 7), was the result of technical reasons.

        "MA-60 was in a save condition. But if it has been proven that the crash was due to technical errors I am ready to resign," he said. He made the statement in response to inquiries from some circles that the MA-60 plane built by Xian China Air Craft lacked quality.

         Apart from the airworthiness of MA-60 planes, the public also alleged that the price of the plane had been marked up.

        The United Workers Union Federation of State Companies has reported that there was an alleged mark up in the purchase of the planes.  Spokesman of the United Workers Union Federation, Tri Sasono said his organization has reported the alleged mark up to the KPK.

        "There is an indication of mark up done to enrich either individuals or others by certain people,"  Tri Sasono said on Thursday.

         He said that the alleged mark up involved a government official and a lawmaker.  Sasono said that with the intervention of a broker (MS), Merpati purchased the plane with a price of US$14.6 million per unit, while actually the contract could be concluded at a price of US$174 million for 15 MA-60s.

         According to Merpati President Director Sardjono Jhony Tjitrokusumo,  Merpati in 2006 made a deal with  Xian Aircraft for the procurement of 15 MA-60 planes, in which the Indonesian government asked for a loan of 1.8 billion reminbi (yuans), the equivalent of  Rp2.1 trillion which was handed to Merpati as payment for the aircraft.

         In 2007, Merpati received only 2 units of MA-60 planes under a lease. Then in December 2010 another 11 units had been approved in the 2010 State Budget.

         The remaining 2 units were scheduled to come to Indonesia on May 19 and 20, 2011.

         But Mustafa Abubakar said that  in the contract signed  by XAC and Merpati the price per unit of the plane was US$11.206 plus optional equipment worth US$800,000 so that the price was US$12.2006 million per unit.

         Now, the report on alleged mark up in the price of the planes is now being studied by the anti-graft commission.

         Spokesman of the  Corruption Eradication Commission (KPK)  spokesman Johan Budi said the anti-graft body had already received a report about the purchase of the planes and "we are now still studying it." ***5***
(T.A014/A/HAJM/23:05/H-YH)   (T.A014/A/A014/A/H-YH) 13-05-2011 23:09:

Rabu, 11 Mei 2011

FREE TRADE POSES CHALLENGE TO SMALL BUSINESSES

By Andi Abdussalam
          Jakarta, May 11 (ANTARA) - Small and medium scale enterprises (SMEs) which  reached about 49 million units and contributed about 54 percent to the country's gross domestic product (GDP) have served as a back-bone of the country's economy.
         With the help of SMEs and other business in the informal sector, Indonesia was able to face the waves of recent economic and financial crises and maintain its economic growth at a positive level, while other countries suffered a lot.
         However, a challenge will soon come up. ASEAN  member countries have determined  to establish an economic community in 2015, where goods, service, investment and trade would move freely. Would SMEs in the country be able to face an integrated community with free trade?
    "I think it would be hard for the SMEs at home to face the implementation of the ASEAN Economic Community (AEC)," Teguh Boediyana, chairman of the Expert Council of the Indonesian Cooperatives (Dekopin), said.


Selasa, 10 Mei 2011

MA-60 PLANE CRASH FUELS OTHER STORIES

By Andi Abdussalam

          Jakarta, May 19 (ANTARA) - The crash last Saturday of a China-made MA-60 airplane belonging to state-owned Marpati Nusantara Airlines in Kaimana Bay, West Papua, that killed 27 people attracted the sympathetic attention of ASEAN leaders.

         The heads of state/government of the Association of South East Asian Nations who were holding a summit in Jakarta, before having a banquet hosted by President Susilo Yudhoyono, observed a moment of silence for the victims.

         Without belittling the extent of the accident itself, people find that the crash has raised another issue, when an online-media carried a story alleging that the plane had been purchased, reportedly marked up, through the intervention of a special presidential spokesman, known by his initials as "JW".

         Enriching the air accident's side story, as calls surface for investigation of the deals, China reportedly has threatened to cancel its commitment to finance Indonesia's 10,000 megawatt power crash program should Merpati be forced to cancel its purchase contract with China's Xian Aircraft industry.

         China's fear of contract cancellation is just logical if insistence at home forced Merpati to do so for both security and economic reasons. After all, MA-60 planes are not covered with international reputed airworthiness certification.

         In addition, the one which crashed in Papua was only recently purchased (last December), and the accident in Kaimana was the second to take place in Indonesia and the fifth one if similar accidents in other countries are taken into account.

         Based on records, the ill-fated plane was supplied by China's Xian Aircraft on December 3, 2010.  Merpati is scheduled to receive two more MA-60s on May 19 and 20, 2011.

         "We will accept the planes. There will be no cancellation. But in the future it will be adjusted to the company's business plan," the president director of Merpati Nusantara Airlines (MNA), Sardjono Jhony Tjitrokusumo, said.

          A lawmaker on trade affair however insisted that the purchase of the plane should be investigated.

         "The purchase of MA-60 which is carried out under a compromised mechanism should be investigated. China has threatened to cancel its financing  for Indonesian 10,000 MW crash power plants programs if Merpati cancels its contract," Ecky Awal Muharram of the House Commission VI on trade and state firms, said here Tuesday.

         The lawmaker even argued that parties involved in the controversial purchase of MA-60 must be investigated. Merpati is a state-owned company whose funding came from the people's money. The purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people.

         Moreover, the question over its purchase is arising while this type of aircraft has no certification from the Europe Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) in the United States.  It only has certification from the Chinese aviation authority.

         "We do not need FAA certificates because MA-60s are not used in the United States. FAA certificate is a standard requirement in the USA but it is not needed in Indonesia," Sardjono Jhony said.

         MA-60 plane was purchased under a Sub Loan Agreement (SLA) funding system where the loan was given to the government but would be repaid by Merpati.

         The agreement was signed by the government with the Chinese Exim Bank repayable in 15 years by Merpati.  "This means that the government is the underwriter of the loan," Ecky said.

         He questioned the government's attitude towards the risk trend in MA-60 accidents which were categorically high in Indonesia and in other countries.  That's why the purchase mechanism and system of the aircraft needed to be reviewed because it had the potential to disadvantage the state money and harm the safety of the people.

         Yet,  Merpati President Sardjono Jhony Tjitrokusumo said the company's MA-60 plane that crashed in Kaiman on May 7 had been airworthy. "I clarified that the plane was airworthy when it departed from Sorong," Jhony said.

         He said the plane was in good condition and its crew members were fit to fly. "So, it is not the plane that is problematic. So far the plane has had no problem because the aircraft maintenance logbook was clear," he said.

         In this case, Chief Economic Minister Hatta Rajasa called on the people not speculate.

         "Don't make different speculations but look at its main problem," the coordinating minister for economic affairs. He said that the main problem was to investigate the real cause of the crash. "The problem is that the plane had crashed. And we have to investigate its causes. That's why we have to wait for the investigation results of the National Committee of Transportation Safety (KNKT)," he said.

         An online media is reported to have a story about allegation of a special presidential staff who had been involved in the purchase of MA-60 plane, reportedly marked up. However this allegation was denied by the State Palace.

         Special Presidential staff for information Heru Lelono said the report was not true. There was no presidential staff involved it. "There is no policy in the Palace giving a presidential staff an authority to take a decision on that matter (purchase of plane)," Heru said.

         He said that since his appointment as a special presidential staff in 2004, he had never known a presidential staff by his initials "JW".  "It would be better for those who first disclosed this matter   to explain who 'JW" is," he said referring to the story of the online media.

        Yet, if the report is true, the president will certainly take a firm action against him, he said.

        "I hope that all sides would think and react professionally and rationally in commenting on the Merpati plane crash accident," he said.

         What is important now is that the accident should be investigated by experts so that its causes could be revealed to prevent the repeat of such an accident, the presidential staff said.***3***

(T.A014/A/HAJM/17:52/A014) 10-05-2011 18:05:1