THE COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA
Main Building, Ministry of Finance, Jl. Lapangan Banteng Timur No.2-4 Jakarta 10710
Tel: (021) 351-1178 Fax: (021) 351-1186 Website: http://www.ekon.go.id
Trade and Investment News[1], 1 June 2009
National
· Meteorologists are warning of increasing forest fire hotspots in Riau
Politics
· KPU: Presidential election campaigning will begin 11 days earlier on June 2
Terrorism
· Singaporean Jemaah Islamiyah (JI) militant has been detained under Malaysian security laws
Security
· Indonesia is in talks with the US to buy new C-130 Hercules transport planes
Law & Order
· The Corruption Eradication Commission is able to conduct its business as usual
Health
· Australia is set to write off $58.7 million in Indonesian commercial debt
BUSINESS BRIEFS
Macro Economy
· The government expects the economy will expand 5-6% next year
Investment
· Taiwan’s investment in Indonesia until 2008 reached $13.837 billion
State Concerns
· Indonesian migrant workers remitted $6.6 billion in 2008
· Exports of palm oil to India are forecast to jump 25% this year
SOEs
· PT Wijaya Karya (Wika) expects to win Rp17.2 trillion ($1.66 billion) of contracts
· The government forms new state company to manage the country’s longest bridge
Private Sector
· Sharp rises in cigarette sales
Banks
· PT Bank Danamon expects to increase its lending in the second quarter.
Power
· PT PLN is set to secure another $761 million in loans from Chinese
Oil & Gas
· Cepu block will only produce a maximum of 20,000 bpd from 2010 to third quarter of 2011
Mining
· State coal miner PT Tambang Batubara Bukit Asam expects a 20% rise in revenue this year
National
63 hotspots detected in Sumatra: BMG
A total of 63 forest fire hotspots have been detected in Riau, Bengkulu, South Sumatera and Jambi, said a Meteorology and Geophysics Agency (BMG) official on Friday, reported Kompas.
The number of hotspots has declined from 350 last week but BMG has warned the number will likely increase in the coming weeks.
The BMG has warned of widespread forest fires across Sumatra due to the onset of the dry season.
The warning also stressed that North Sumatra, South Sumatra, Riau and Jambi provinces are highly vulnerable to forest fires, due to higher temperatures, low humidity, heavy winds and low rainfall in the area.
France to help improve Jakarta’s flood-warning system
The French government will help improve Jakarta’s flood-warning CCTV system, said French Ambassador Philippe Zeller on Wednesday, reported Viva News.
Zeller said the assistance is part of an earlier pledge by the French government to help Jakarta establish an effective early-warning system for natural disasters.
“Aside from donating new CCTV cameras and monitors, training for personnel at Jakarta’s Crisis Center will also be provided,” said Zeller.
Currently, 160 CCTV cameras are installed at a number of flood-prone areas around the capital, including the Manggarai, Sunda Kelapa and Penjaringan sluice gates.
A Crisis Center official said Jakarta needs 1,000 CCTVs to guarantee effective disaster management.
POLITICS
Presidential campaigning to begin June 2: KPU
Presidential election campaigning will officially begin on June 2, 11 days earlier than the previous schedule, said the General Election Commission (KPU) on Wednesday, reported Seputar Indonesia.
“Presidential election campaigning has been moved ahead as the registration for all three candidate pairs is now complete,” KPU member Andi Nurpati said.
The presidential election campaigning will be divided into two periods.
From June 2 to June 12, only media campaigning will be permitted while open campaigning and televised debates will be permitted from June 12 to July 4, according to the KPU.
“A declaration of peaceful campaigning will be signed by all candidates on June 2 at KPU headquarters,” said KPU member Putu Artha said.
Artha said an open plenary session will be held on Saturday to determine the candidates’ respective ballot numbers.
The KPU said a series of six televised debates -- three presidential and two vice presidential -- will begin on June 18.
KPU names legislative election winners
The General Election Commission (KPU) on Sunday released the names of the 560 candidates who won seats at the House of Representative in the April 9 legislative election, reported Antara.
“The elected candidates' names have been announced although several disputes are ongoing at the Constitutional Court. We will adjust the list later in accordance with the verdicts," said KPU chairman Abdul Hafiz Anshary.
The names were announced during an open plenary session attended by KPU members and representatives from all political parties that participated in the legislative poll.
“The announcement of legislative winners from East, West and Central Java has been postponed due to demands from several parties for clarification over vote-counting methods," said Anshary.
A number of current House members were re-elected for the 2009-2014 period, including House Speaker Agung Laksono, who was predicted to lose his legislative seat.
A number of current ministers were also elected to the House, including Tourism and Culture Minister Jero Wacik from the Democratic Party and Youth and Sports Minister Adhyaksa Dault from the Prosperous Justice Party (PKS).
All elected legislative candidates are scheduled to be inaugurated on October 1.
TERRORISM
Malaysia detains Singapore JI militant for two years
Singaporean Jemaah Islamiyah (JI) militant Mas Selamat Kastari, who was re-captured in Malaysia last month, has been detained under security laws for a two-year term, Malaysian Prime Minister Najib Razak said Wednesday, reported Agence France-Presse.
Kastari, the head of the JI’s Singapore cell, which has links to al Qaeda, had been on the run for more than a year after escaping from a high-security detention center in Singapore.
Razak confirmed reports that the 48-year-old Islamist militant had been detained under Malaysia's Internal Security Act (ISA) which allows for indefinite detention without trial.
"This is Malaysia's decision. He is a threat to Malaysia's security and that is why he has been detained," he told a press conference.
Razak said Malaysian authorities needed to extract "more information" from Kastari and downplayed suggestions that Singaporean authorities would be anxious to have him in their custody.
Kastari was captured in April in Malaysia's southern state of Johor where he had reportedly been hiding since February 2008 when he escaped from detention by squeezing through a toilet window and climbing over a fence.
He reportedly used an improvised floatation device to cross the narrow strait which separates Singapore from Johor state.
Kastari is reportedly being held at the Kamunting detention center in Malaysia's north with other ISA detainees, who are mostly Islamist militants.
An unnamed source familiar with the case said any extradition proceedings with Singapore would be discussed only after the two-year term had been completed.
SECURITY
TNI to stay ‘calm’ over rising Ambalat tensions
The Armed Forces (TNI) will remain calm amid renewed tensions between Indonesia and Malaysia over the disputed oil-rich Ambalat territory, reported The Jakarta Post.
"We do not need overexposure of this issue again. I have spoken with the Malaysian military chief about Ambalat, and we have reached some agreement," TNI chief Gen. Djoko Santoso said on Thursday.
"No more ships will be sent to the zone," he said.
Ambalat is a maritime area located off East Kalimantan, which both Indonesia and Malaysia claim as their own.
Recently, Indonesia accused Malaysian battleships of entering Indonesian territorial waters surrounding Ambalat.
According to the TNI, it was the ninth time Malaysia had violated Indonesian waters this year.
"During the talks with Malaysia, both countries claimed ownership of the area. However, we both agreed on procedures if conflict does arise," Santoso said, adding joint patrols have also been arranged.
Santoso confirmed Malaysian naval ships breached the disputed zone several times recently.
"Every time they enter Indonesian waters, our forces remind them to leave,” he said.
The dispute over the maritime block, believed to be rich in oil and gas, has raised tensions between Indonesia and Malaysia since the 1980s.
In 2005, Indonesian and Malaysian warships collided while patrolling the zone.
The Navy revealed that it was moments away from firing on a Malaysian warship that encroached deep into Indonesian territorial waters last week, but called off the attack when the intruder retreated, reported The Jakarta Globe.
Lt. Col. Toni Syaiful, a spokesman for the Navy’s Eastern Fleet Command, said the Malaysian Fast Attack Craft Gun KD Yu-3508 vessel penetrated 12 nautical miles into Indonesian waters on Monday.
Not only did the Malaysian warship penetrate far into Indonesian waters, but it had also ignored demands from the captain of the Indonesian KRI Untung Suropati-872 to retreat, Toni said.
Armed Forces look to buy US jets, subs
Indonesia is in talks with the US to buy new C-130 Hercules transport planes and might be in a position to buy fighter jets and submarines in two to three years, the Defense Minister said, Reported Reuters.
Juwono Sudarsono said on Saturday after talks with US Defense Secretary Robert Gates that no final agreement had yet been reached on the transport planes, a possible first step in upgrading its military.
"With Gates we discussed the possibility of Hercules ... but because the market of that particular plane is quite tight we have to wait our turn," Sudarsono said.
"He promised for a discounted price but we don't know how much the discount will be. Because it is in their interest for Indonesia to remain stable," he said.
Indonesia aims to raise its defense spending to 1.2% of GDP within five years, from 0.68% or $3.3 billion now, Sudarsono said.
"It all depends on how quick the economy will recover," he said.
He said the defense spending was far below neighboring countries such as Singapore, Australia and Malaysia.
"Currently, we are focusing on the maintenance of existing equipment so we can minimize the risk to our troops. Maybe in two or three years time, other defense equipment, striking equipment like submarines and fighter jets can be added," Sudarsono said.
He said the country is aiming to maintain the same technological level of military equipment as neighboring countries, although the numbers might be smaller.
Since Singapore is buying F-15 fighter jets, Indonesia was matching that move by buying Russian Sukhoi fighters, he said.
"Although it is a costly exercise, we have to do it to maintain the parity in the technology of our equipment with neighboring countries.
LAW & ORDER
KPK 'on track for now': Deputy Chairman
The Corruption Eradication Commission (KPK) is able to conduct its business as usual despite the suspension of its chief, who is a suspect in a murder investigation, a deputy chairman of the agency said, reported Reuters.
However, KPK operations face uncertainties if the House of Representatives does not approve soon a law to extend the life of the Corruption Court, deputy chairman Mochammad Jasin said.
The KPK currently submits cases only to the Corruption Court, but the court's mandate is due to expire in December and the current House term ends in September leaving a narrowing window.
"(I am) a little pessimistic, hopefully House members can still discuss it within the next few months," said Jasin, who is one of four deputies running the KPK after Antasari Azhar's suspension.
Jasin said the four met President Susilo Bambang Yudhoyono last week to explain the problems the KPK faces if the Corruption Court is forced to shut.
The Corruption Court, which has a 100% conviction record and is considered clean due to its use of ad-hoc judges, is now threatened after the Constitutional Court said the House should draw up a new law by December to give it legal basis.
Jasin said if the House failed to pass the law in time, Yudhoyono would have to issue a regulation to allow the court to continue its work.
If this is not done, experts say the cases might have to be heard in regular courts, which can be more easily manipulated by corruption.
Under Yudhoyono, notoriously corrupt agencies such as the customs and tax offices have been cleaned.
The KPK has built up something of a "cult" status for arrests and convictions of top officials including lawmakers and central bankers, but it suffered a blow this month after its head was detained as a suspect in a murder case.
The case against KPK chairman Azhar, who has denied any wrongdoing, has shocked and gripped the masses in equal measure because of its combination of alleged murder, corruption and sex.
"Whether Antasari is present or not, we are building a system here, so we will work as usual," said Jasin.
1,395 asylum seekers nabbed this year: Police
As many as 1,395 asylum seekers have been caught in Indonesia since the beginning of the year, said a police official on Wednesday, reported Kompas.
“However, it is believed there are thousands more asylum seekers in Indonesia that have not been caught,” said a National Police official Sr. Comm. Minton Mariaty Simanjuntak.
According to Simanjuntak, most came from Afghanistan with 736 asylum seekers.
The other asylum seekers were mainly from Sri Lanka, Myanmar and Iraq, he said.
“The main entrance points are Medan and Tanjung Balai Asahan, North Sumatra; Tanjung Pinang, Riau Islands; Bagan Siapi-Api, Riau; Banten and Anyer in North Jakarta,” said Simanjuntak.
“It is believed there are an estimated 8,000 asylum seekers from Afghanistan and Myanmar currently in Malaysia trying to enter Indonesia to claim asylum or reach Australia,” he said.
HEALTH
Bali: Japanese national declared swine flu negative
A Japanese national suspected of being infected with swine flu in Bali was declared negative of the virus, said an official on Friday, reported Detikcom.
On Thursday, 50-year-old Kuri Akira was admitted to Sanglah Hospital, Denpasar, Bali for suspected swine flu.
He arrived at Ngurah Rai International Airport from Osaka, Japan.
“Blood test results from the Health Ministry showed no H1N1 virus was present in the patient,” said a Sanglah Hospital official.
The patient was later allowed to leave the hospital.
Australia to convert Indonesian debt into health program: Official