INFID


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Title 

Short News Overview.

No

97

Period

28 June 2002 – 04 July 2002

 

INFID News

SNO Questionnaire

We realise that many of SNO’s subscribers are on vacation or duty tour which prevent them from responding to the questionnaire. We received many "out of office" auto-reply and thus received less already filled-in questionnaire. Therefore we extend the deadline until the second week of August. The questionnaire can be downloaded from http://www.infid.be.

INFID Conference

Reminder: The XIII INFID Conference will take place in Yogyakarta, 29 September – 1 October 2002. Information on the conference and registration are available at: http://www.infid.be/conference/.

INFID Annual Lobby 2002

The INFID lobby team has arrived in Europe. It has held meetings in London and is meeting various parties in the continental Europe. The team is visiting Brussels (5-9 July), The Hague (9-10 July) and Bonn (11-12 July) before leaving for Tokyo on July 13. The INFID position paper and background papers are available at http://www.infid.be/lobby2002.html.

INFID Related Issues

Legal Reform

Data from the Investment Co-ordinating Board (BKPM) showed that foreign direct investment (FDI) approvals for the first five months of the year has fallen by almost 60 percent over the same period in 2001. As for domestic investment, the data also showed a drop in approvals during the January to May period from Rp12.7 trillion in 2001 to Rp9.4 trillion this year . BKPM chairman Theo F. Toemion attributed the sharp decline to accumulated problems lingering in the country, but he also admitted that legal uncertainty had played a significant part in diminishing foreign investor confidence. Theo was referring to the controversial verdict by the Commercial Court declaring bankrupt the local unit of Canada’s Manulife Financial Corp., PT Asuransi Jiwa Manulife Indonesia (AJMI).

Meanwhile, observers say that the Indonesian government has lost almost all the 400 lawsuits brought against corporate debtors in the past three years because dishonest judges and prosecutors have scuttled the cases. The Indonesian Bank Restructuring Agency (IBRA) initiated more than 400 lawsuits on conglomerates and has lost more than 80 percent of them. IBRA’s new chief Syafruddin Temanggung has been taking tougher line on debt recovery but observers are still concerned that the powerful and wealthy could easily buy off judges and prosecutors. Several advocates for legal reform estimate 80-90% of judges are dirty and often solicit bribes.

Sources: JP28/06, ST 01/07

General News

Military budget

The lack of reasonable salary is an invitation for crime, says TNI Commander Endriartono Sutarto. On June 24 Sutarto appealed for a boost in the military budget before Commission I of the parliament, saying it was aimed at increasing soldiers’ social welfare rather than purchasing military equipment. He said the military was facing the situation where they have to choose between troops’ social welfare or arms procurements. The Indonesian government has also asked legislators to approve "emergency" funds of more than 111 million dollars to help the military and police operate in conflict areas like Aceh.

Indonesia has some 297,000 active military members with 400,000 in reserve. The government spends its defence funds based on the number of personnel in each of the armed forces. With 230,000 members, the Army is the beneficiary of this policy. The Air Force has 27,000 members and the Navy 40,000. Analysts say that if the TNI’s only job was to deal with external threat, the government should have built up the air force and navy instead. MPR decree No. VII/2000 states that domestic security affairs are at the hand of the National Police.

On July 3, Air Force Chief of Staff Marshal Chappy Hakim revealed that only 93 of the force's total 222 aircraft were operational and of the 16 air defence radar stations, only 11 were operational. On July 1, the Navy Chief of Staff, Adm. Bernard Kent Sondakh disclosed that of the Navy's warships that were capable of sailing, none were combat capable due to a lack of ammunition.

Sources: LN 27/06, JP 29/06, 04/07, AFP 29/06

PDI Perjuangan

On June 28 the Indonesian Democratic Party of Struggle (PDI Perjuangan) announced its rejection of a proposal to form a committee of inquiry (Pansus) into the Rp40 billion financial scandal allegedly involving House Speaker and Golkar Chairperson Akbar Tandjung. Noted political observers accused the party and its chairperson Megawati Soekarnoputri of betraying the people who have put their trust in her commitment to fight corruption. Muslim scholars Nurcholish Madjid said the decision to drop the proposal would not only offend the public but also lead to what he described as "public impunity", a condition where the public could not punish guilty people. Political analyst Arief Budiman agreed with Madjid and suspected a political deal between PDI Perjuangan and Golkar as behind the decision. About 500 demonstrators knocked down the gates of the parliament protesting the decision. Indonesian police fired water cannon in return.

Sources: JP 29/06, 01/07, Reuters 01/07

People’s representatives

Members of parliament (MP) do not think it is important to be on time in meetings. Actually they think it is not necessary to attend meetings at all. In a plenary session on July 3, 373 honourable MPs of 491 were absence. Of the 118 attending the meeting, less than 100 were physically following the meeting. The rest left after signing the attendance list, or teased each other outside the meeting room. The meeting was supposed to start at 9 a.m., but only 50 MPs were there at the time. The House regulation states that meetings can only presume with minimal 246 participants.

Source: KCM 04/07

Regional News

Aceh

Indonesia’s military accused the Free Aceh Movement (GAM), especially the group led by Ishak Daud, as the responsible party behind the kidnapping of nine of 11 crew from a boat chartered by PT ExxonMobil Indonesia. Daud said the rebels had nothing to do with it. "The entire length of the coast in East Aceh is being tightly guarded by TNI troops, so how can we have done this?" Daud said. Daud accused the military itself of staging the kidnapping to give it a pretext for massive search operations. The local military said troops had been deployed in the hunt for the kidnappers. The Aceh police chief, Inspector General Yusuf Manggabarani, said a toal of 9,000 soldiers and police would help in the hunt.

President Megawati Sukarnoputri on July 3 instructed the regional military commander Maj. Gen. Djali Yusuf to sternly punish GAM, blaming it for disturbing public order.

Sources: AFP 02/07, JP 02/07, 03/07

Abbreviations

AFP Agence France Presse
JP The Jakarta Post
KCM Kompas Cyber Media
LN Laksamana Net
MPR People’s Consultative Assembly
ST The Strait Times
TNI Indonesian Military

 

 

 

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