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Sunday, July 31, 2016

Trade Minister Steve Ciobo to visit Jakarta to shore up free trade deal

Trade Minister Steve Ciobo's first post-election destination is Jakarta, but his counterpart there has changed.

  • Former trade minister Andrew Robb sits next to the Indonesian embassy's deputy chief of mission, Kusuma Habir, at the Indonesia Business Summit in Canberra last year. Photo: Alex Ellinghausen

    Former trade minister Andrew Robb sits next to the Indonesian embassy's deputy chief of mission, Kusuma Habir, at the Indonesia Business Summit in Canberra last year. Photo: Alex Ellinghausen

  • Steve Ciobo: keen to get trade talks with Jakarta moving again. Photo: Alex Ellinghausen

    Steve Ciobo: keen to get trade talks with Jakarta moving again. Photo: Alex Ellinghausen

  • Australian Prime Minister Malcolm Turnbull and Indonesian President Joko Widodo move to take off their ties during a visit to Tanah Abang Market in Jakarta in November last year. Standing between them in the blue shirt is Thomas Lembong, who lost his job as Indonesia's trade minister in a reshuffle last week. Photo: Pool via AP

    Australian Prime Minister Malcolm Turnbull and Indonesian President Joko Widodo move to take off their ties during a visit to Tanah Abang Market in Jakarta in November last year. Standing between them in the blue shirt is Thomas Lembong, who lost his job as Indonesia's trade minister in a reshuffle last week. Photo: Pool via AP

  • exit

    Jakarta: Trade Minister Steve Ciobo will travel to Jakarta this week in his first trade-related overseas trip since the election, underscoring the emphasis Australia is placing on finalising the free trade agreement with Indonesia.

    The two countries announced in March they hoped to conclude long-running talks within 12 to 18 months and start work immediately on early outcomes in areas such as education, skills training, infrastructure, agriculture and financial services.

    Former Indonesian trade minister Thomas Lembong even hinted that Indonesia might allow Australian universities to establish campuses in Indonesia - currently prohibited by law - in special economic zones.

    However Mr Lembong was a surprise casualty of a ministerial reshuffle in Indonesia last week, and Mr Ciobo will now meet with his replacement, businessman Enggartiasto Lukita, widely regarded as a political appointment.

    "Lembong's removal from this ministry and his replacement by a party politician means that the ministry can go back to becoming a protectionist, patronage-driven centre once again, something Lembong tried to reform during his short tenure as minister," Alexander Arifianto from Nanyang Technological University in Singapore wrote in Eurasia Review.

    Mr Ciobo told Fairfax Media he was still hoping to hammer out a deal by next year.

    "Certainly that is the goal we are working towards and I haven't been advised to the contrary by Indonesia," he said.

    "The trade relationship is underweight - both Mr Lembong and I have acknowledged that - and officials have been working on building on the incredible potential.

    "My focus is on driving a comprehensive agreement that removes obstacles and barriers. Certainly services and exports will be a key focus but also driving investment for both countries will be a key focus."

    Mr Ciobo will also meet with Mr Lembong, who is now the head of the Indonesian Investment Coordinating Board (BKPM).

    Despite its geographical proximity, Indonesia is only Australia's 12th-largest trading partner. About 250 Australian businesses are in Indonesia, down from about 450 a decade ago.

    Indonesia is ranked 109 out of 189 countries in the World Bank's Ease of Doing Business index, compared to Singapore at number one and China at 84.

    However it has a population of more than 255 million – including a middle class of more than 45 million  –  and Australia sees an opportunity to supply the growing needs of Indonesian consumers with Australian goods and services.

    Negotiations on the Indonesia-Australia Comprehensive Economic Partnership Agreement started in Jakarta in 2012 but stalled amid diplomatic tensions between the countries, including the Bali nine executions and a climate of economic protectionism in Indonesia.

    It was not until late last year that Mr Lembong - who supported a more open-door trade policy - and then trade minister Andrew Robb announced the two countries would restart talks.

    Australia Indonesia Business Council president Debnath Guharoy said the two countries were not really global competitors but had complementary strengths and would do well to work together.

    "Australian skills are needed in Indonesia and the Indonesian labour force is an asset that Australian exporters can use," he said.

    Mr Guharoy said an existing example was the red meat and cattle partnership, which started in 2013 and focuses on how Indonesia and Australia can play a joint role in the global supply of beef and cattle.

    Live cattle is shipped from Australia and then fattened and slaughtered in Indonesia feedlots.

    Mr Guharoy said this could be replicated in areas such as tourism, where Australian expertise could assist Indonesia with President Joko Widodo's vision of building 10 Bali-like destinations in the next four years.

    He said Indonesia and Australia had two different main concerns.

    Indonesia worried that removing trade barriers would wipe out local farmers and Australia was seeking regulatory certainty in areas such as mining and investment.

    "These will be the two primary concerns the two sides will need to negotiate their way through," he said.

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    The story Trade Minister Steve Ciobo to visit Jakarta to shore up free trade deal first appeared on The Sydney Morning Herald.


    Source: Trade Minister Steve Ciobo to visit Jakarta to shore up free trade deal

    Indonesia eyes more economic cooperation with Morocco

    Indonesia aims to increase cooperation with Morocco amid growing economic ties between the two countries, a minister said on Saturday.

    Economic ties with Morocco are "expanding and encouraging", Public Works and Public Housing Minister Basuki Hadimuljuno said, explaining that trade between the two countries reached US$ 214.32 million in 2015.

    "We will jointly explore opportunities to enhance economic cooperation between the two countries," he said at the Moroccan National Day reception in Jakarta on Saturday night.

    Morocco is Indonesia's seventh-biggest trading partner in Africa. With its more than $100 billion gross domestic product (GDP) and population of 35 million people, the regional power in North Africa is a promising market as well as a gateway to both African and European countries for Indonesian products and investment, as it is located less than 100 kilometers from Spain.

    Indonesia's exports to Morocco over the years include palm oil, furniture, coal, spices, garments and glassware. In recent years, Indonesia added more products to its exports to the North African country such as instant noodles, green tea and coffee.

    Publicly listed food giant Indofood is building a US$5 million instant noodle factory in Morocco, its largest factory outside Indonesia, set to begin operation in September or October, Basuki said.

    Morocco also serves as an important partner in Indonesia's agricultural sector as it is home to more than 70 percent of world's phosphate, a main ingredient in fertilizers and reserves. Indonesia imports phosphate, fertilizers, chemicals, oranges, iron and steel products from the country.

    Echoing a similar view, Moroccan Ambassador to Indonesia Mohamed Majdi praised relations between the two countries, calling them "excellent".


    Source: Indonesia eyes more economic cooperation with Morocco

    Saturday, July 30, 2016

    The show must go on! Selena Gomez is mobbed by fans as she lands in the Philippines for world tour... after confessing she feels 'unconnected' to her music

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    She surprised fans with a heartfelt Instagram post last week following her concert in Indonesia, revealing she needed to 'rethink some areas of my life creatively and personally'.

    But Selena Gomez was living proof that the show must go on, looking stylish as ever in a sports luxe ensemble as she touched down in the Philippines on Saturday for her latest stop on her world tour.

    The 24-year-old singer was the picture of composure as she made her way through the airport, despite the large throng of people surrounding her.

    Scroll down for video

    Arriving in style: Selena Gomez looked fashionable as ever in a sports luxe ensemble when she touched down in the Philippines on Saturday for her latest stop on her world tour

    Selena was flanked by an army of burly security guards and airport personnel, who shielded her from the screaming fans all hoping to catch a glimpse of their pop idol.

    The brunette was rocking a cool and casual look for her arrival in Manila, pairing a loose slogan T-shirt with a white satin bomber.

    She wore her dark tresses pulled back from her face in tight braids and hid behind her sunglasses.

    Mobbed: Selena was flanked by an army of burly security guards and airport personnel, who shielded her from the screaming fans all hoping to catch a glimpse of their pop idol

    Sportswear vibe: The brunette was rocking a cool and casual look for her arrival in Manila, pairing a loose slogan T-shirt with a white satin bomber

    Selena sparked concern when she took to Instagram after her gig in Jakarta, Indonesia just over a week ago, which was also her birthday, to explain that she is planning some major ch anges.

    She included a screenshot of a message from her iPhone notes app, which read: 'Tonight I felt extremely unauthentic, unconnected to both my myself and my music. 

    'I've never really felt like my materials, wardrobe or a video could define me. I act on a moment and fear something that hasn't happened. I'm stagnant, I stay still and don't just sit with myself first and ask, 'Is this where I am, whole heartedly?' 

    'I felt unconnected to my music!' This comes after Selena admitted she was 'rethinking' her life... after spending her birthday on stage (seen on stage earlier this month)

    'I've always told the truth. I'm always true to my word, I've shown who I am but I need to rethink some areas of my life creatively and personally. Had to get that out.'

    Selena captioned the screenshot: 'Not being negative about anything I've done. I'm grateful for every single moment I get here - Indonesia you were LOUD and clearly inspiring. Love you so much.'

    And earlier on stage, Selena got emotional before performing 'Kill 'Em With Kindness'.

    She said: 'The next song, before I go home, is a song that's so important to me. Because I get really frustrated, I get stupid sometimes, I say things that I don't mean. Or that come out wrong just because I care so badly.

    'Not being negative': Selena penned this heartfelt message on her birthday

    'But the thing is, at the end of the day, no war in anger was ever won. I do know that deep down in my heart that I have to believe that we can love each other and always be kind no matter what it takes in us. I believe that we can do that, no matter what.'

    Despite her tender age, former child star Selena has been hard a t work for many years.

    She first found fame as an actress - starring in the hit TV show Barney The Purple Dinosaur alongside Demi Lovato when she was just ten years old.

    Much talked about: The pop princess was seen out and about in West Hollywood earlier this month 

    She went on to find greater fame with the tween set when she was cast as the lead in Wizards of Waverly Place in her teens.

    She starred in the Disney Channel series for five years, before leaving to focus on her singing career, and making a move onto the big screen.

    An on/off relationship with Justin Bieber followed, making Selena one of the most talked about stars around. 


    Source: The show must go on! Selena Gomez is mobbed by fans as she lands in the Philippines for world tour... after confessing she feels 'unconnected' to her music

    Indonesia detains 7 after attacks on Buddhist temples

    Jakarta: Indonesian authorities detained seven people in northern Sumatra island on Saturday on suspicion of attacking several Buddhist temples the previous night, officials said.

    A spokeswoman for North Sumatra provincial police said the seven were part of a mob that damaged at least three temples and other property in the town of Tanjung Balai, near Indonesia's fourth-biggest city Medan. No one was injured.

    Indonesia is a Muslim-majority nation but has a sizeable ethnic Chinese minority, many of whom are Buddhist. The country has a history of anti-Chinese violence, most recently in the late 1990s amid the political and economic crisis that brought down authoritarian ruler Suharto.

    But police officials denied Friday's attack was aimed at the Chinese community.

    "This was just a [dispute between] individuals," said North Sumatra Police Spokeswoman Rina Sari Ginting, adding the situation was now under control.

    Indonesia, where the majority of th e population practises a moderate form of Islam, sees sporadic attacks on religious minorities by Muslim hardliners but authorities are quick to crack down on any violent incidents.

    Hundreds of security personnel were deployed late last year when a Muslim mob burnt down a number of churches in conservative Aceh province, saying they didn't have the right building permits.


    Source: Indonesia detains 7 after attacks on Buddhist temples

    Friday, July 29, 2016

    Equinix : Trident Subsea Cable selects Equinix for Points of Presence in Australia, Singapore and Jakarta

    Equinix, Inc. , the global interconnection and data centre company, today announced that its International Business Exchange (IBX) data centres in Melbourne (ME1), Sydney (SY1), Singapore (SG3) and Jakarta (JK1) have been selected by Trident Subsea Cable for the cables Points-of-Presence (PoPs) in the Asia-Pacific region.

    Anticipated for completion in Q2, 2018, the Trident cable will provide customers with more resilient, lower latency connections and increased bandwidth, on the fastest, most direct path from Australia to Asia.

    Highlights/ Key Facts

    Trident Subsea Cable is building a 28 Tbps bandwidth cable, using 100Gbps coherent DWDM technology upgradeable to 400Gbps technology in the future, which will connect Australia, Singapore and Jakarta.

    The cable will have interconnection points in Equinix IBX data centres in Sydney, Melbourne, Singapore and Jakarta, as well as a landing point in Perth, providing greater connectivity for businesses, content providers and communications network providers.

    The PoPs will provide cross-connect opportunities for all Equinix customers colocated in the SY1, ME1, SG3 and JK1 IBX data centres. Trident will be the first submarine cable to establish a PoP in ME1 and JK1.

    When fully operational, the Trident Subsea Cable will add to the rich system of submarine cables that connect Equinixs customers globally within Equinix IBX data centres, reaffirming Equinixs network neutral value proposition.

    The Trident cable will be able to leverage over 190+ networks in Equinix Singapore, 130+ in Sydney and 30+ in Melbourne to provide immediate access to their customers across the region.

    This cable further augments the resilience of the Australian Internet landscape by providing a new route out of Western Australia up to Asia.

    (c) 2016 Emirates News Agency (WAM) Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers


    Source: Equinix : Trident Subsea Cable selects Equinix for Points of Presence in Australia, Singapore and Jakarta

    Three Nigerians among four executed in Indonesia, 10 cases postponed

    By Johan Purnomo

    CILACAP, Indonesia (Reuters) - Indonesia executed four convicted drug traffickers, including three Nigerians, early on Friday as it pushed ahead with its "war against drugs", although another 10 scheduled executions were delayed.

    As many as 14 people were originally set to face the firing squad together on Friday, but officials decided a "comprehensive review" was needed to "avoid any mistake" in the 10 cases, Attorney General H. Muhammad Prasetyo said.

    The date for the next round of executions has not been set, Prasetyo told reporters in Jakarta.

    At least two prisoners among that group of 10, a Pakistani national and an Indonesian woman, have applied for presidential clemency, their representatives said. They said legal proceedings could take a long time.

    Those executed - three Nigerians and an Indonesian man - were shot during a thunderstorm shortly after midnight on Nusakambangan Island in Central Java. The government ignored international calls for clemency and pushed ahead with its drive against narcotics.

    "Our battle against drug crimes is not over and it will continue. We will maintain our commitment, our firmness and our consistency," Prasetyo said.

    Indonesia has become a "business field" for the production, distribution, import and export of drugs, Prasetyo said.

    Indonesia executed 14 prisoners, mostly foreign drugs offenders, just over a year ago, causing diplomatic outrage.

    Rights activists and governments have again called on Indonesia to abolish the death penalty.

    Those calls have gone unheeded and President Joko Widodo has said drugs pose as serious a threat as terrorism in what is one of Southeast Asia's biggest markets for narcotics.

    The president's office often cites figures that drugs are killing at least 40 people a day, but several international experts have questioned the methodology used to arrive at those statistics.

    The death penalty is widely accepted by the Indonesian public, but police had to break up a protest outside the prison on Thursday by members of a migrant workers group who called for mercy for the Indonesian woman who was scheduled to be executed.

    Amnesty International called the latest executions "a deplorable act that violates international and Indonesian law" and pleaded that the other death sentences not be carried out.

    Around 152 people remain on death row in Indonesia, including convicted drug traffickers from the Philippines, France and Britain, according to the Attorney General's Office.

    Authorities plan to execute 16 prisoners this year and more than double that number in 2017.

    (Additional reporting by Kanupriya Kapoor, Eveline Danubrata and Yuddy Cahya in Jakarta; Writing by Kanupriya Kapoor; Editing by Robin Pomeroy and Paul Tait)


    Source: Three Nigerians among four executed in Indonesia, 10 cases postponed

    Thursday, July 28, 2016

    Indonesia executes four convicted drug traffickers

    The Indonesian government has carried out four of the planned executions of 14 people found guilty of drug crimes, Al Jazeera has learned.

    The convicts were shot by firing squad at the Nusa Kambangan penal island shortly after midnight on Friday local time (1700 GMT on Thursday) amid pouring rain, according to TV reports.

    Deputy Attorney General Noor Rachmad also confirmed the executions to reporters, according to the AFP news agency. But Rachmad did not say why the 10 other drug convicts had not been executed. 

    Al Jazeera's Step Vaessen, reporting from Jakarta, said among those who were executed were two Nigerian citizens, a South African and one Indonesian.  

    "All the others are still waiting their trials to be re-examined," our correspondent said. "It's not very clear what actually were the last conclusions [and] why these executions didn't take place. But the government is saying it has something to do with legal issues."    

    The lawyer of Pakistani prisoner Zulfikar Ali had earlier told our correspondent that his client was not among those who had been executed.

    Al Jazeera's Vaessen said there had been "a lot of pressure" until the last minute to stop the executions. 

    OPINION: Indonesia's dramatic executions hide the real problem

    The executions were the third set carried out since President Joko Widodo took office in October 2014. 

    Widodo's two-year-old administration will have executed more people than were executed in the previous decade. Fourteen were put to death last year. But one prisoner, a woman from the Philippines, was spared the death penalty at the last minute. 

    The European Union and the UN High Commissioner for Human Rights had called on Indonesia to impose an immediate moratorium on executions, and the Indian and Pakistani governments also made urgent efforts to save two nationals among the condemned.

    The Indonesian government said the death penalty is necessary for narcotics-related crimes because the country was facing a drugs epidemic, particularly affecting young people.

    But critics argue that capital punishment is not an effective deterrent and some have also questioned the accuracy of the government's drug abuse statistics.

    The government of Jokowi's predecessor did not carry out executions between 2009 and 2012, but resumed them in 2013.

    Source: Al Jazeera and agencies


    Source: Indonesia executes four convicted drug traffickers

    Indonesia prepares to send 14 to the firing squad

    The office of Attorney General Muhammad Prasetyo has not released details about this round of executions, but preparations are underway at the Nusakambangan prison island in Cilacap, West Java.

    Human Rights Watch has called on President Joko Widodo, also known as "Jokowi," to commute the sentences of at least 14 inmates -- including a number of foreign nationals -- for drug trafficking.

    "President Jokowi should acknowledge the death penalty's barbarity and avoid a potential diplomatic firestorm by sparing the lives of the 14 or more people facing imminent execution," said Phelim Kine, deputy Asia director at Human Rights Watch, in a statement released Wednesday.

    "Jokowi should also ban the death penalty for drug crimes, which international law prohibits, rather than giving the go-ahead for more multiple executions."

    Amnesty International also issued a strong statement, saying the President "will be putting his government on the wrong side of history if he proceeds with a fresh round of executions."

    According to the organization fourteen people will face the firing squad as early as this weekend, including Indonesians, a Pakistani, an Indian, a Zimbabwean, a Senegalese, a South African and five Nigerians.

    War on drugs

    The Indonesian government insists the country faces a drug emergency that requires tough measures.

    Its all-out war on illegal drugs has already seen a large number of executions in recent years.

    Fourteen drug convicts faced the firing squad in 2015, six in January and another eight in April.

    Under the administration of President Susilo Bambang Yudhoyono, a total of 21 convicts were executed from 2005 to 2013.

    Indonesia's prosecutors have always stressed that only death row convicts who have exhausted all legal avenues are put on the execution list. They are given the option to seek presidential clemency and a Supreme Court judicial review.

    However, rights activists have long insisted the death penalty is not an effective deterrent to drug prevention.

    "There is no evidence to support President Widodo's position," said Amnesty's Josef Benedict.

    "The death penalty does not deter crime. Carrying out executions will not rid Indonesia of drugs. It is never the solution, and it will damage Indonesia's standing in the world,"

    Controversy

    Indonesian officials have said all measures will be taken to prevent the drama surrounding the executions in April last year.  Australian drug convicts Andrew Chan and Myuran Sukumaran were executed after numerous appeals from supporters who claimed they were reformed.

    At the last moment Filipina Mary Jane Veloso, also sentenced to death, was spared. Indonesia apparently acceded to appeals to wait for a pending case against Veloso's alleged human traffickers in the Philippines.

    Her lawyers said she was a victim of human trafficking and was tricked into carrying heroin in her suitcase.

    Death in the dark

    Executions in Indonesia usually take place late at night outside the Nusakambangan prison facility.

    Inmates are given 72-hours notification and are kept in isolation, with only the company of their religious counselors.

    Veloso's sister told CNN that family are allowed to visit in the days before the execution, but afterward, the only confirmation they get the sentence has been carried out is the sound of gunfire in the distance.


    Source: Indonesia prepares to send 14 to the firing squad

    Wednesday, July 27, 2016

    Indonesia Brings Back Veteran Indrawati as Finance Minister

    Indonesian President Joko Widodo picked Sri Mulyani Indrawati as his new finance minister, returning her to a post she held six years ago in which she built up a reputation as a tough technocrat and reformer.

    Indrawati, 53, will replace Bambang Brodjonegoro in the second cabinet reshuffle since the president -- known as Jokowi -- took office just under two years ago. It signals his commitment to push through an ambitious infrastructure program to transform Southeast Asia's largest economy, and meet a pledge of boosting growth to 7 percent.

    During her term as finance minister between 2005 and 2010, Indrawati steered the economy through the global financial crisis, helped to spur investment and curbed inflation. But her tenure was marred by an opposition campaign accusing her and then-Vice President Boediono of abusing their authority. She resigned in 2010 to join the World Bank as one of three managing directors.

    'Dream Team'

    Along with Indrawati, Jokowi also strengthened his political foundations by appointing new allies to his cabinet, bolstering investor sentiment.

    "The thoughtfully choreographed reshuffle should further cheer the market," said Wellian Wiranto, an economist at Oversea-Chinese Banking Corp. in Singapore. "A 'dream team' will not be too much of an exaggeration."

    The Jakarta Composite Index gained as much as 1.5 percent after the news of Indrawati's appointment, and was 1 percent higher at 5,277.2 as of 3.10 p.m. local time. The rupiah rose 0.3 percent to 13,131 against the dollar, taking its gain this year to 4.9 percent.

    Indrawati, who has a PhD degree in economics from the University of Illinois, faces the challenge of boosting growth while keeping the budget deficit under control. Under Brodjonegoro, the country missed its growth and tax revenue targets last year as falling commodity prices curbed revenue from exports such as oil and rubber. The government is forecasting a budget deficit of 2.35 percent of gross domestic product for this year.

    Exports have remained weak this year and the central bank said last week it's likely there will be limited improvement to the economy in the second quarter after it grew at a slower pace of 4.9 percent in the first three months. Bank Indonesia is forecasting growth of 5 percent to 5.4 percent in 2016.

    "I will dedicate all my efforts to accelerating Indonesia's development agenda with the goal of providing more and better services, particularly to the poor, and ensuring that all citizens will be able to participate in the benefits of a thriving economy," Indrawati said in a statement on Linked-in.

    Power Base

    Jokowi has in recent months consolidated power in parliament after Golkar, the nation's second-largest political party, backed his government. With a two-thirds majority, Jokowi has been able to push through changes including a tax amnesty aimed at repatriating billions of dollars that the government plans to use for infrastructure.

    "In the last two years of our administration, we have faced hard challenges," the president told reporters in Jakarta. "We need to solve the problem of poverty, we need to reduce economic equality between the rich and the poor as well as gaps between regions."

    The new cabinet was motivated by a need to respond to economic challenges more quickly and effectively, he said.

    Confidence Boost

    Getting Indrawati to leave the World Bank and join his team was a coup for Jokowi and bolsters market confidence, said Indra Mawira, an investment manager at Panin Asset Management.

    "Today's reshuffle, and the appointment of the new police chief earlier this month, clearly showed that Jokowi has been able to consolidate the political power toward him and investors have and will continue to take this positively," he said by phone from Jakarta.

    Brodjonegoro was named as national planning minister and Wiranto, a former defense minister and commander of the Indonesian military, was appointed coordinating minister for security affairs. Other appointments include:

  • Luhut Panjaitan as coordinating minister for maritime affairs
  • Budi Karya Sumadi as transport minister
  • Enggartiasto Lukita as trade minister
  • Airlangga Hartarto as industry minister
  • Archandra Tahar as energy and mineral resources minister
  • Before it's here, it's on the Bloomberg Terminal. LEARN MORE
    Source: Indonesia Brings Back Veteran Indrawati as Finance Minister

    New Indonesia Cabinet includes reformer, rights abuser

    JAKARTA, Indonesia (AP) — Indonesian President Joko "Jokowi" Widodo announced a new Cabinet on Wednesday that puts a retired general linked to human rights abuses in charge of security and returns a popular reformist to the finance ministry.

    Sri Mulyani Indrawati, who was finance minister from 2005-2010, is returning to the role from her current position as managing director at the World Bank, Jokowi said. In her first stint as finance minister, she was praised for overhauling a corrupt taxation department and guiding the economy through the 2008 global financial crisis.

    The appointment is a coup for Jokowi and his efforts to reinvigorate the economy, but was overshadowed by a controversial military figure also joining the Cabinet.

    Wiranto, head of the Indonesian military in 1999 when it committed atrocities in East Timor after Timorese voted for independence, was named the minister for security, political and legal affairs. Wiranto and other military men were indicted for crimes against humanity in 2003 by a U.N. tribunal, but successive Indonesian governments have ignored its findings.

    Andreas Harsono, Indonesia researcher at Human Rights Watch, said Wiranto's entry into the Cabinet shows a conservative backlash against Jokowi's efforts to address Indonesia's poor human rights record, including abuses in Papua, which has a long-running separatist movement, as well as investigating the military's anti-communist massacres in 1965.

    "Wiranto has a lot of baggage," Harsono said. "I think it is a setback for Jokowi and human rights."

    Wiranto replaced Luhut Binsar Pandjaitan, an ally of Jokowi who, though a former general, had opened a landmark symposium earlier this year into the 1965 atrocities that historians estimate killed half a million people. He had been ordered by Jokowi to investigate mass graves that survivors say are scattered throughout Indonesia.

    Pandjaitan becomes the chief minister for maritime issues at a time when Southeast Asian nations are at odds with China over its territorial ambitions in the South China Sea.

    It is the second reorganization of Jokowi's Cabinet since the maverick politician became president in 2014, after defeating an establishment candidate in a national election.

    A total of 13 ministries were changed and nine of the ministers are new to the Cabinet. Many of the new appointments were in economy-related ministries, reflecting Jokowi's focus on developing an economy that is one of the largest in Asia but suffers from weak infrastructure and entrenched poverty.

    "We have to resolve the poverty problem. We have to reduce the economic gap between the rich and the poor, the gap among regions," Jokowi said. "We have to strengthen the national economy, we have to open job opportunities as wide as possible for the people."

    Tobias Basuki, a political analyst at the Centre for Strategic and International Studies in Jakarta, said the new Cabinet is a "very mixed bag" reflecting crisscrossing priorities that included giving ministries to political parties that have joined Jokowi's coalition in parliament.

    Some of the more progressive and younger politicians were taken out of the Cabinet, he said, but the reshuffle also removed poorer performing ministers.

    "Jokowi is a pragmatic president and politician, so it's not that he ignores human rights but at the same time it's not a paramount principle for him, he has other pragmatic calculations," said Basuki.

    Follow Stephen Wright at @stephenwrightAP


    Source: New Indonesia Cabinet includes reformer, rights abuser

    Tuesday, July 26, 2016

    ZIMBA TO BE EXECUTED IN INDONESIA IN TWO DAYS

    Authorities in Indonesia on Tuesday gave 72 hours' notice that they will execute a group of drug convicts including foreigners, a diplomat said, despite protests from governments and rights groups.Syed Zahid Raza, the deputy Pakistani ambassador in Jakarta, told AFP the convicts, who include a Pakistani, could face the firing squad around midnight on Friday after Tuesday's meeting between Indonesian officials and diplomats to signal the start of the countdown. Nationals from Pakistan, India, Nigeria and Zimbabwe are expected to be executed alongside Indonesians. Officials say no Europeans or Australians will be included in the third round of executions under President Joko Widodo. Indonesia sparked international outrage with its last batch of executions in April last year when it put to death seven foreigners, including two Australians. But Widodo has insisted Jakarta is fighting a war against drugs and traffickers must be harshly punished. Authorities have been stepping up preparations in recent days, with several death row drug convicts transferred to Nusakambangan prison island – where executions take place – and security strengthened in the area. Fourteen prisoners have been placed in isolation cells on the island this week, state-run Antara news agency reported, a step normally taken ahead of executions. Raza said Indonesian officials had given the notice period at a meeting in Cilacap, the town closest to the prison island, which included diplomats from several countries and lawyers. He said officials did not mention a precise date or time for the executions but added: "It might be Friday at midnight." It is a legal requirement in Indonesia to give a minimum notice period of 72 hours before executions, and authorities typically put people to death just after midnight. The attorney general's office, which oversees executions, would not confirm any details but spokesman Mohammad Rum said: "The time is approaching because we are making progress day by day." Pakistan has raised concerns about the looming execution of its national, Zulfiqar Ali, saying he did not receive a fair trial. Rights groups have claimed Ali, sentenced to death in 2005 for heroin possession, was beaten into confessing. There have also been concerns over the case of a female Indonesian drug convict, Merri Utami, who is among the group. Rights group the National Commission on Violence Against Women say the former domestic worker was tricked into trafficking heroin. AFP   Posted in: NEWS Share to Twitter Share to Facebook
    Source: ZIMBA TO BE EXECUTED IN INDONESIA IN TWO DAYS

    UPDATE 1-Indonesia to hold next round of executions on Friday - diplomat

    (Adds comment, detail, context)

    JAKARTA, July 26 (Reuters) - Indonesia will execute several people including a Pakistani on Friday, a Pakistani embassy official said, its first executions since last year when it put to death 14 people, most of them foreign drug convicts, sparking an international outcry.

    Indonesian officials have said 16 people will be executed this year, including citizens of Nigeria, Zimbabwe and Pakistan, though they have not confirmed any more details.

    Syed Zahid Raza, charge d'affaires at the Pakistani embassy in Jakarta, said the embassy had been informed about the imminent execution of the Pakistani, Zulfikar Ali, convicted of smuggling drugs.

    "We were invited to meet with officials from the attorney general's office today who told us the executions will take place on Friday," Raza told Reuters on Tuesday.

    A spokesman for the attorney general's office declined to comment on any time frame.

    Pakistan on Monday urged Indonesia to stay Ali's execution, citing concern that his 2005 trial had been unfair.

    Ali will make a last-ditch attempt to escape the death penalty by appealing directly to Indonesian President Joko Widodo for clemency, Raza said.

    Indonesia says it is facing a "drugs emergency" and has vowed no mercy for traffickers. Its executions by firing squad have caused outrage overseas though surveys show Indonesians are largely in favour of capital punishment.   Continued...


    Source: UPDATE 1-Indonesia to hold next round of executions on Friday - diplomat

    Monday, July 25, 2016

    Indonesia's anti-communist backlash isn't over

    Anti-communists burn a symbol of communism at a rally in West JavaAnti-communists burn a symbol of communism at a rally in West Java

    A RECENT spate of arrests of people for wearing T-shirts with symbols of the banned Indonesian Communist Party (PKI), seizures of books about the 1965 anti-communist purge and a propaganda campaign to whip up fears of a PKI revival in Indonesia reflect just how anxious elements of the political elite are about growing pressure to resolve one of the most horrendous crimes of the 20th century.

    The arrests and raids on bookstores followed a government-sponsored national symposium in Jakarta on April 15 with the stated aim of seeking recommendations on how to resolve the mass killings of 1965-66.

    Using the pretext of an alleged PKI coup attempt in September 1965, sections of the military, led by Gen. Suharto, launched one of the most ferocious mass slaughters in modern history. Within four months, as many as 1 million communists and left-wing sympathizers were killed, and hundreds of thousands of others interned without trial. Officially portrayed as a response to a failed "communist coup," the killings have been justified by successive governments doggedly clinging to the myth that they were necessary to save the country from communism.

    Although some high-profile rights groups boycotted the April 15 symposium, fearing it would become a fig leaf for the government, it ended up providing an unlikely forum for Indonesians to hear an alternate account from survivors and the family members of the victims, who described their horrifying experiences and the decades of injustice and discrimination they endured.

    The anti-communist propaganda campaign is being driven by a handful of senior officials, retired army officers and right-wing groups. They have little or no mass support.

    Government officials were clearly uncomfortable with the public airing of these heart-wrenching testimonies. Security affairs minister Luhut Binsar Pandjaitan, a key backer of the symposium, claimed that only 1,000 people were killed and reiterated that the government would not issue an apology or make restitution for the victims.

    Even before the symposium ended, a grouping of retired army officers announced they would stage a counter-event to the "one-sided" symposium.

    - - - - - - - - - - - - - - - -

    DESPITE ITS limited mandate, the symposium still sparked a backlash from sections of the Indonesian military (TNI) and police.

    Speaking to hundreds of retired generals and right-wing groups in Jakarta on May 13, former army general and now defense minister Ryamizard Ryacudu launched into a tirade about the need to counter the "treasonous" rise of communism. Ryamizard insisted that the TNI had the right to crack down on "swelling leftist symbolism," even though by law only the police can conduct raids and make arrests. "The police cannot deal with this matter alone, without help from the military," he said.

    The military and police have been using the 1999 State Security Law to justify the arrests and seizures. It is based on a 1996 decree on the dissolution of the PKI and prohibitions of Marxist, Leninist and communist teachings.

    A week earlier in the Central Java city of Yogyakarta, a screening of the documentary Buru Island My Homeland about 1965 political prisoners was closed down by police after protests by the Community Forum for Children of the Armed Forces (FKPPI) and the Indonesia Anti-Communist Front (FAKI). Ironically, the event was part of International Press Freedom Day.

    On May 8, a concert in East Java was closed down and band members arrested for playing a reggae rendition of the Javanese folk song "Genjer-Genjer," which is associated with the PKI-affiliated women's organization Gerwani. On May 9, police arrested two men in South Jakarta for selling T-shirts of the German death metal band Kreator, which happened to include a hammer-and-sickle symbol. The next day, four activists in Ternate, North Maluku, were taken into custody over T-shirts featuring the motif and the letters PKI, which turned out to stand for Indonesian Coffee Lovers. Two men were also detained in separate arrests in the Riau Islands and Jambi, Central Java.

    On May 14, CNN Indonesia reported that the country's largest book retailer, Gramedia, had withdrawn books related to 1965 from several of its stores in Jakarta after a "surprise inspection" by police. Bookstores and publishing companies were also raided in Yogyakarta, and the Jakarta Post reported that seizures took place in Sukoharjo, Solo, Tegal and Grobogan in Central Java and Surabaya in East Java.

    - - - - - - - - - - - - - - - -

    THE ARREST of civilians by military personnel has raised fears that the TNI is seeking a greater role in civilian affairs. Reforms implemented since 1998 resulted in the TNI losing its "dual" social and political function. In 2002, it was separated from the police, becoming responsible for external defense only.

    It has, however, maintained its territorial command structure, allowing it to act as a security force at all levels of society. These commands are important to maintain its illegal business interests, many of which have been infringed upon by the police since their separation, resulting in deadly clashes between the two forces.

    Under current president Joko Widodo, the TNI has expanded its civilian functions. This has included security for seaports, airports, railways and bus stations, providing guards for prisons, assisting with the "war on drugs" and helping to stabilize food prices and "facilitate" land acquisitions. The TNI has also been involved in operations against alleged ISIS terrorists in Poso, Central Sulawesi.

    Along with the TNI commander, general Gatot Nurmantyo, Ryamizard has been championing the State Defense program, which aims to train 100 million civilians to confront "non-traditional" threats. They argue that this is necessary to counter "proxy wars" undermining the state ideology of Pancasila, which they claim are orchestrated by NGOs, the media, social interest groups, gays and undefined foreign interests, who want to take control of the country's resources.

    Military observers say that this also reflects an attempt by the army to maintain its relevance in the face of Widodo's much-touted Maritime Axis, which emphasizes protecting Indonesia's territorial waters and is part of the U.S. president Obama's "pivot to Asia." The army top brass are also concerned that a greater portion of the budget going to the navy and air force will deprive it of lucrative kickbacks on arms procurements.

    If social media are any guide, the attempts to whip up an anti-communist frenzy failed miserably. A Facebook posting on May 9 read: "Anyone who possesses a hammer and a sickle at home should destroy them lest they be accused of being a PKI member." Another read: "There are lots of hammer-and-sickle pictures on Google. The police should also seize Google!"

    The authorities were clearly not amused. Police spokesperson Boy Rafli Amar warned people not to forward communist propaganda, reminding them they could face a 12-year sentence for the crime.

    All this appears to have created unease within Widodo's administration. Cabinet secretary Pramono Anung said on May 13 that the TNI and police had overreacted to an earlier order by Widodo to uphold the law against the spread of communist teachings, and police chief Badrodin Haiti called for an end to book raids.

    - - - - - - - - - - - - - - - -

    THIS KIND of harassment is nothing new. The Institute for Policy Research and Advocacy recorded that in 2014, at least 27 events related to 1965 were subject to restrictions and bans, including 17 film screenings and discussions, four forced dispersals of meetings of victims, three cases of intimidation, three cases of deportation and forceful arrest and one magazine recall.

    In August 2015, a meeting of survivors and victims' families in Salatiga, Central Java, was canceled after threats by the Islamic Defenders Front (FPI). In October, the Ubud Writers and Readers Festival had to cancel some events on 1965 due to pressure from local police.

    In March, a performance in Bandung, West Java, about socialist and national hero Tan Malaka was postponed after FPI threats. The event later went ahead under heavy police security after Bandung mayor Ridwan Kamil publicly supported the event.

    On April 2, police closed down the 10th annual Lady Fest in Yogyakarta after an attack by the Islamic Community Forum (FUI). On April 14, police disbanded a meeting of 1965 victims in Bogor, West Java, after the Pancasila Youth (PP) and the FPI threatened to attack the event. Ironically, the meeting was part of preparations for the government symposium in April.

    But despite the regularity of such incidents, there has been no systematic repression, and no one has been charged or jailed. Unlike protests against land seizures and labor rallies, in which protesters are attacked and assaulted by police and company thugs, violence is the exception. Many proceed without incident or go ahead after open resistance by students and activists.

    - - - - - - - - - - - - - - - -

    OVER THE last few years, Indonesian and overseas activists have been forcing a debate about 1965. This poses a threat to those who would prefer that the details of the victims and their killers remain buried.

    This pressure was behind the government's move to hold the April symposium. It hoped to defuse growing demands to issue an official apology and provide compensation and rehabilitation to survivors and victims' families.

    This is also an ideological struggle. Not just because the alleged PKI coup justified the military's seizure of power but because it legitimizes the legal prohibitions on spreading communist ideas. While these laws remain in force, those advocating socialist solutions to Indonesia's social and economic problems risk arrest and jail.

    Film screenings of Joshua Oppenheimer's award-winning documentaries Jagal (The Act of Killing) and Senyap (The Look of Silence) have stimulated a national discussion about the killings and the consequences of impunity, and exposed ordinary Indonesians to an alternative narrative about 1965.

    Jagal explores the anti-communist purge by having the perpetrators re-enact their crimes, while Senyap examines the massacre through the eyes of its victims. Although the Film Censorship Institute banned public screenings of Senyap in December 2014, the government's National Human Rights Commission (Komnas HAM) endorsed film showings around the country to promote reconciliation.

    The first public screening in Jakarta, in November 2014, a joint effort by Komnas HAM and the Jakarta Arts Council, attracted more than 2,000 people. Indonesia Watching Senyap has distributed 1,700 DVD copies for screening in 118 cities and regencies, estimated to reach 70,000 viewers. Both films are available for viewing and downloading free from the internet.

    Although some screenings have been shut down, others have become a rallying point for different groups to unite to defend free speech and academic independence.

    On March 11 last year, some 100 thugs from the FUI and FAKI attempted to storm a Senyap screening at the State Islamic University (UIN) in Yogyakarta. Earlier in the year, they closed down several other screenings in the city.

    Event organizers, along with a coalition of student and activist groups, vowed to resist the mob. Students blocked campus gates to prevent a breach. The screening went ahead.

    In a statement on March 13, Oppenheimer expressed his respect for the students: "They are truly heroes in the struggle to uphold, not just academic independence on campus, but also human rights, and reaffirming the spirit of democracy in Indonesia as well as banishing violence."

    A May 27 screening of Buru Island as part of the 10th Purbalingga Film Festival went ahead despite opposition from right wing groups. Organizers of the 2016 ASEAN Literary Festival in Jakarta also defied threats by Islamic groups demanding police shut down the event for promoting communist and LGBT ideologies.

    In May, the FPI tried to disband a "School of Marx" event in Bandung. Organizers refused to bow to pressure and went ahead with the event after building a cross-campus campaign among Bandung students.

    - - - - - - - - - - - - - - - -

    LAST NOVEMBER, coinciding with the 50th anniversary of the massacres, Indonesian and international activists organized an International People's Tribunal (IPT) on 1965 in The Hague.

    The tribunal, which examined thousands of documents and heard testimonies from victims and survivors, concluded that the state was responsible for the massacres. Although not legally binding, the findings will be presented to the UN Human Rights Council as a moral verdict.

    Government officials, who tried to brush the tribunal off as irrelevant, were clearly unhappy about the publicity it was generating. The Indonesian embassy in The Hague threatened to revoke students' scholarships if they attended. Although the IPT website was briefly blocked, millions of Indonesians were able to watch live streaming coverage of the hearings.

    Events supporting the IPT were also held in Indonesia. Although some were canceled after threats from hard-line groups, a discussion and film showing on February 18 at the UIN went ahead without incident, attended by around 200 people. The venue was guarded by student security teams--some armed with sharpened bamboo sticks--to prevent any disruptions.

    The anti-communist propaganda campaign is being driven by a handful of senior officials, retired army officers and right-wing groups. They have little or no mass support, and there have been no independently organized demonstrations or community-based campaigns supporting them.

    Likewise, the harassment of events has been carried out by a small number of groups such as the FPI, FUI, FAKI, PP and the FKPPI, or ad hoc alliances of these groups, all of which have links with the TNI, police or the New Order. They have also been behind the occasional but small anti-communist rallies.

    Thanks to the proliferation of smart phones, around 60 percent of the population has internet access to alternative information about 1965. Some websites are blocked, but the writings of Marx, Engels and Lenin are freely available.

    Claims of an imminent PKI resurgence have also been undermined by the same "communism is dead" propaganda that is peddled in the West. Even though many Indonesians still hold negative and confused views about communism, no one believes that the PKI is about to be revived.

    Rights groups also say that the TNI is trying to whip up anti-communist fears as its role in the killings comes under scrutiny and that there is genuine anxiety that those responsible could be indicted. They also argue that it is being used to justifying broad limits on civil freedoms and to stifle public criticism of the government.

    - - - - - - - - - - - - - - - -

    AS PROMISED, on June 1 anti-communist groups went ahead with a counter-symposium in Jakarta titled "Protecting Pancasila from the threat of the PKI and other ideologies".

    Organizers claimed it was supported by dozens of mass organizations, including the youth wing of the Islamic mass organization Nahdlatul Ulama and the Catholic Students Union (PMKRI). Both later protested the use of their logos, the PMKRI saying the real threat to the country comes from right wing and extremist religious groups, not the PKI.

    Former Green Beret commander Kivlan Zen, who claimed that the PKI has 15 million supporters and is ready to declare itself, also said that the PKI had started renovating new headquarters in Jakarta. When journalists went to the address, all they found was a dilapidated building overgrown with weeds.

    If people weren't already skeptical about such claims, the right wing wasn't helped when symposium coordinator general Kiki Syahnakri tried to explain the difference between communism, Marxism and Leninism during a press conference. Syahnakri, a former army general indicted for crimes against humanity by the UN in 2003, explained that a Marxist must be an atheist because dialectical materialism was inspired by the ideas of philosophers Aristotle and Plato.

    "Marxism is Aristotelian. So a Marxist doesn't believe that the universe was created. That is to say, they believe the universe is present in itself," Syahnakri said. "So it's clear they're atheists as they don't believe in God." Syahnakri's explanation quickly went viral on social media after journalist Febriana Firdaus--who was expelled from the event by irate members of the FPI--posted it on her Facebook wall.

    The day after the symposium, several thousand protesters from the FPI, FUI and FKPPI, along with retired army generals, rallied in central Jakarta warning of the communist threat.

    "Since the beginning of the reform era [in 1998], the PKI has been trying to keep its existence by holding three congresses, managing to reverse the historical facts, spreading videos and films consisting of agitation and defamation, and blaming its own faults on others such as the New Order government, the TNI and Muslims," said Indra Bambang Utoyo from the FKPPI.

    While the government-sponsored symposium did offer a public platform for Indonesians to hear an alternate account from survivors and victims, it was already clear that, without a concerted campaign, there will be no genuine and just resolution to the massacres.

    Speaking on May 30, days before the anti-PKI symposium had even begun, Pandjaitan said that he welcomed the counter-symposium, and its recommendations would be used as input for the government to make a decision on settling past human rights abuses.

    First published at Red Flag.


    Source: Indonesia's anti-communist backlash isn't over

    Indonesia’s BRI embraces banking by satellite

    In the middle of last month, executives of Bank Rakyat Indonesia travelled 18,000km from Jakarta to the northern coast of French Guiana in South America to witness the launch of a rocket that would make the bank the world's first with its own satellite.

    BRI is Indonesia's biggest provider of small loans and its customers are strewn across some 3,000km of the world's largest archipelago. Satellite communications, it is hoped, will deliver huge savings in operating costs.

    As the launch approached, BRI executives gathered at the Guiana Space Center were both excited and tense. The original launch date had already been pushed back several times by bad weather and technical glitches.

    When the Ariane 5 rocket lifted off with BRIsat on board, tension turned to delight and relief. Asmawi Syam, BRI's president, called it "a new era in banking."

    Back home, news of the launch and the satellite's parking in stationary orbit above Indonesia was splashed across the morning papers. Investors, however, are less impressed. After hitting an all-time high of 13,275 rupiah ($1.01) in March 2015, BRI's shares slumped. On July 15, they closed at 11,500 rupiah.

    BRI stock has gained only 1 per cent this year, underperforming state-owned rival Bank Mandiri and Bank Central Asia, Indonesia's largest private-sector bank, which have each gained 5 per cent. The broader Jakarta Composite Index is up 11 per cent.

    Ironically, investors' concerns stem partly from BRI's dominance, which translates into exposure and onerous overheads.

    Although the definition of small loans varies among banks, BRI is estimated to have half the market for loans of less than 200m rupiah ($15,277). The Indonesian economy is dominated by small businesses. Deloitte, a consultancy, estimates there were nearly 60m small and medium-sized enterprises in Indonesia in 2014, compared with about 2.8m in Thailand and 1m in the Philippines.

    Small loans are risky but lucrative, with proper management. The trick is to pick the ones that will not go bad. With a nonperforming loan ratio of 2 per cent, BRI has become Indonesia's most profitable publicly listed corporation, logging 25.4tn rupiah in net profit in 2015.

    There is enormous scope for growth in Indonesian banking. Fewer than 40 per cent of adults have bank accounts, according to the World Bank. Joko Widodo, Indonesia's president, has been calling for banks to lower interest rates and make loans affordable for smaller businesses. BRI's high interest margins, which are four times larger than those of the average bank in Singapore, for example, are likely to come under scrutiny.

    "The government is focused on SMEs and wants loans to be affordable," said Agus Pramono, head of research at local brokerage Danareksa Securities. "Banks that focus on SMEs will probably suffer more than banks that focus on consumers and corporates."

    Another threat to BRI's profitability is the digitisation that is sweeping the banking industry. This has produced new business models aimed at disrupting traditional players. Such changes pose a particular threat to BRI, which still relies on a network of more than 10,000 bricks-and-mortar branches to reach customers.

    BRI's decision in 2014 to invest $250m in its own satellite is an attempt to meet these challenges. According to Asmawi, it will bring major savings. Many parts of the Indonesian archipelago have no fixed-line internet access. BRI has had to rent transponders from commercial satellite providers to run its ATMs, small terminals called electronic data capture (EDC) devices that process card transactions, and back office operations. By operating its own satellite, BRI expects to save 200bn rupiah, or about 40 per cent of its annual transponder rental fees.

    Cutting costs will free up money for BRI to invest in its conventional business and expand into untapped markets. The bank is already reaching customers in innovative ways. Last year it began a "floating branch" service that sends loan officers and security guards to remote islands by boat. It has a mobile branch service with a fleet of more than 600 vans. "We have the advantage of being close to traditional markets," said one account officer who leads a team of three. They circle a neighbourhood of Jakarta in a van that handles 50 to 80 customers a day.

    In a country infamous for congestion, solutions are certainly in demand. "We want to reach out to places where there are no traffic jams," Asmawi said. BRI is investing heavily in branchless banking, which involves appointing third-party agents, such as small shops, to offer simple banking services. Instead of ATMs, BRI provides these agents with small EDC devices. By March, BRI was operating some 21,300 EDCs, an increase of 77 per cent over the previous year. The bank aims to appoint 75,000 agents by the end of 2016.

    BRI established a nationwide presence in the 1970s, when it was appointed by the government to channel small loans to rural rice farmers. After racking up heavy losses, BRI shifted to a commercial banking model in 1984, applying advice from a think-tank affiliated with Harvard University. BRI also received funding from the World Bank and USAID, the US government's aid agency.

    BRI's Unit Desa, a village banking network, was established as an independent profit centre running savings and lending services. It has gained popularity among villagers who previously kept money under their mattresses. The bank became profitable by giving loan officers more discretion and rating them on the quality of their loans rather than the quantity.

    While the bank has since diversified into larger corporate loans, about 80 per cent of its branches still specialise in serving small businesses. The close ties between bank officers and customers are its biggest competitive advantage, says Mohammad Irfan, a BRI director who oversees the microbanking division. "It may seem very simple, but nurturing a culture is not easy," Irfan said. "Anybody can buy systems or technology, but they can't buy culture."

    Recent advances in technology challenge that view. In Kenya, a mobile money service called mPesa allows users to pay bills and transfer money by text message on their mobile phones. It has become much more popular than conventional banking in the east African country. In Indonesia, Bank Tabungan Pensiunan Nasional, a midsize lender specialising in small loans, is developing a similar model and aims to go further by making loans available through mobile phones and agents. BTPN invested 380bn rupiah in information technology in 2015, a fivefold increase over the previous year.

    Startups have been disrupting established banks. Modalku operates an online platform that connects investors with small businesses looking for loans. Potential customers are screened using simple tests. "People who pass the test are four times less likely to default than those who don't," said co-founder Reynold Wijaya. The lender can also monitor the financial condition of the borrower by mobile phone to minimise the risk of default.

    Meanwhile, BRI, with over 55,000 employees as of last year, carries a lot of baggage. It generated 462m rupiah in net profit per employee in 2015, less than Mandiri's 553m rupiah and Bank Central Asia's 726m rupiah, according to QUICK-FactSet.

    Some analysts say BRI has been slow to embrace internet and mobile technology. The EDCs it uses for branchless banking, for example, are less convenient than mobile phones and have fewer functions. BRI may also see savings from its satellite eroded if the government follows through on a plan in the next few years to connect all Indonesian provinces using submarine cables.

    Nevertheless, BRI believes its big satellite bet will pay off because the human touch still has a significant role to play in extending credit across the archipelago. So far, BRI is sticking with its model, which requires secure satellite communications. The much talked-about internet upgrades would certainly transform Indonesian telecommunications, but they will take time. BRIsat, by contrast, will be up and running by August.

    BRI's satellite will be operated by a team of more than 50 inhouse engineers who have received training in the US. Staff from other BRI divisions are also being sent to the US and Europe to study the latest trends in digital banking. Whether BRI can pioneer digital banking across the Indonesian archipelago will be key to reviving its stock price.

    A version of this article was first published by the Nikkei Asian Review on July 21. Website | Subscribe. ©2016 Nikkei Inc. All rights reserved.

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    Copyright The Financial Times Limited 2016. You may share using our article tools.Please don't cut articles from FT.com and redistribute by email or post to the web.


    Source: Indonesia's BRI embraces banking by satellite

    Sunday, July 24, 2016

    With Tax Amnesty Out the Way, Indonesia Seeks to Lure Investors

    After successfully pushing through a tax amnesty law to bring back funds parked overseas, Indonesia's next key economic agenda item is improving the business climate and directing investment into the processing of commodities, the finance minister said.

    To attract investment in manufacturing, infrastructure and services, especially tourism, the government will focus on cutting red tape, Finance Minister Bambang Brodjonegoro said in a Bloomberg Television interview at the Group of 20 meeting in Chengdu, China. That's in line with its goal of transforming the economy into one based on investment, rather than being dependent on consumption and developing industries to process raw materials, he said.

    "The big barrier is our complacency to the commodities," he said in the interview on July 23. "But with strong consistency from the government, we will be able to do that. Of course it will take time, maybe it won't be in one to two years, but hopefully in three or four years, we can start seeing the result of this effort."

    President Joko Widodo has been seeking new sources of growth as prices of commodities that made up the bulk of the nation's exports continue to languish, restricting economic growth at about 5 percent, compared with the 7 percent he pledged when he took office in 2014.

    Tax Amnesty

    His cabinet has simplified investment permit processes, cut dwelling time at ports and is drafting rules to address dispute settlements -- strategies the government hopes will boost Indonesia's rank by at least 69 notches to put it among the top 40 nations on the World Bank's Ease of Doing Business index next year.

    The approval of a tax amnesty law in June has given Brodjonegoro some breathing room to boost fiscal spending and prop up growth in the face of weakening revenue. The budget deficit reached 1.83 percent of gross domestic product in the first half, compared with the full-year target of 2.35 percent.

    Brodjonegoro said he is readying himself to address a judicial challenge against the law that has been submitted to the Constitutional Court, which is adding to uncertainty on whether the program will succeed.

    "We are not concerned," he said. "Because of our democratic system, all of the new legislation produced by the government and parliament are always challenged in the Constitutional Court. It has been like a ritual."

    So far, investors seem to agree that the tax amnesty will succeed. The nation's bonds and stocks have attracted a combined $9 billion of inflows this year. The local debt market even saw inflows on June 24, the day after the U.K. voted to leave the European Union, which triggered a widespread sell-off in global financial markets.

    The benchmark Jakarta Composite Index entered a bull market on June 29, having gained 13 percent so far in 2016. The rupiah has strengthened 5.2 percent this year, the third-best performer among Asia's 11 most actively-traded currencies.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE
    Source: With Tax Amnesty Out the Way, Indonesia Seeks to Lure Investors

    Selena Gomez worries fans with her emotional Instagram post following Indonesia concert

    Selena Gomez, who recently celebrated her 24th birthday, posted a bizarre Instagram message on Friday (22 July), claiming that she needed to "rethink some areas" of her life hours after her concert performance. The singer took to Instagram after her show in Jakarta, Indonesia to explain to her fans that she was planning some major changes.

    She included a screenshot of a message from her iPhone notes app, which read: "Tonight I felt extremely unauthentic, unconnected to both my myself and my music. I've never really felt like my materials, wardrobe or a video could define me."

    More from IBTimes UK

    She explained: "I act on a moment and fear something that hasn't happened. I'm stagnant, I stay still and don't just sit with myself first and ask, 'Is this where I am, whole heartedly?'

    "I've always told the truth. I'm always true to my word, I've shown who I am but I need to rethink soe areas of my life creatively and personally. Had to get that out," she said.

    The actress/singer captioned the screenshot: "Not being negative about anything I've done. I'm grateful for every single moment I get here - Indonesia you were LOUD and clearly inspiring. Love you so much."

    Earlier on stage, The Good For You singer was seen on the verge of tears just before performing Kill 'Em With Kindness. She said: "The next song, before I go home, is a song that's so important to me. Because I get really frustrated, I get stupid sometimes, I say things that I don't mean. Or that come out wrong just because I care so badly. But the thing is, at the end of the day, no war in anger was ever won. I do know that deep down in my heart that I have to believe that we can love each other and always be kind no matter what it takes in us. I believe that we can do that, no matter what."

    A fan filmed the entire expressive moment, which they then posted on twitter.

    Gomez first found fame as an actress - starring in the hit TV show Barney The Purple Dinosaur alongside Demi Lovato when she was just ten years old. She starred in the Disney Channel series for five years, before leaving to focus on her singing career, and then breaking onto the big screen. An on/off relationship with Justin Bieber followed, making Gomez one of the most talked about stars around.


    Source: Selena Gomez worries fans with her emotional Instagram post following Indonesia concert

    Saturday, July 23, 2016

    Selena Gomez feels unauthentic & unconnected with her music

    Selena Gomez has posted a cryptic message on Instagram saying that she needs to "rethink some areas of my life creatively and personally".

    Taking to Instagram on her birthday after her gig in Jakarta, Indonesia on Friday, to explain that she is planning some major changes.

    She included a screenshot of a message from her iPhone notes, which read: "Tonight I felt extremely unauthentic, unconnected to both my myself and my music. I've never really felt like my materials, wardrobe or a video could define me. I act on a moment and fear something that hasn't happened. I'm stagnant, I stay still and don't just sit with myself first and ask, 'Is this where I am, whole heartedly?' I've always told the truth. I'm always true to my word, I've shown who I am but I need to rethink some areas of my life creatively and personally. Had to get that out."

    Selena captioned the screenshot: "Not being negative about anything I've done. I'm grateful for every single moment I get here - Indonesia you were LOUD and clearly inspiring. Love you so much."

    And earlier on stage, Selena got emotional before performing Kill 'Em With Kindness.

    She said: "The next song, before I go home, is a song that's so important to me. Because I get really frustrated, I get stupid sometimes, I say things that I don't mean. Or that come out wrong just because I care so badly.

    "But the thing is, at the end of the day, no war in anger was ever won. I do know that deep down in my heart that I have to believe that we can love each other and always be kind no matter what it takes in us. I believe that we can do that, no matter what."


    Source: Selena Gomez feels unauthentic & unconnected with her music

    Jakarta to Start Even-Odd Traffic Policy in Late August After One-Month Trial

    "The trial and implementation phases are basically similar," said Adj. Sr. Comr. Budiyanto, head of the Jakarta Police's traffic enforcement subunit. "What's different is during the trial, violators will be issued with written warnings while during the implementation, they will be ticketed."

    Motorists that fail to abide by the policy will face up to two months in prison or a fine of Rp 500,000 ($38), as stipulated in the 2009 Law on Traffic and Land Transportation.

    The implementation and trial of the policy followed its one-month introduction and the revocation of the three-in-one carpooling system two months ago.

    The system that bars vehicles carrying fewer than three people from entering the three main streets was deemed no longer effective to ease congestion.

    The even-odd policy will apply during transition period between the three-in-one system and the long-overdue electronic road pricing scheme.

    The technology and infrastructure for the scheme that will require drivers to pay to enter certain roads by using onboard transponder units, have been available, but regulations and payment procedures are still being prepared.


    Source: Jakarta to Start Even-Odd Traffic Policy in Late August After One-Month Trial

    Friday, July 22, 2016

    BI holds rate steady before new scheme takes effect in August

    Bank Indonesia (BI) is keeping its key rate unchanged as it gears up to implement a new scheme in August.

    The central bank announced on Thursday its decision to maintain its benchmark interest rate at 6.5 percent. Both deposit and lending facilities also remain unchanged at 4.5 percent and 7 percent, respectively.

    The move surprised many analysts, who expected to see a fifth rate cut this year. BI has so far slashed its rate by a total of 100 basis points (bps) from 7.5 percent.

    In a statement, BI claims that its previous monetary easing moves and macroprudential measures will continue to promote economic growth, signaling that the easing was sufficient for now.

    Thursday's announcement was the last before BI proceeds with the implementation of its new policy rate—the seven-day reverse repo rate—on Aug. 19. At present, the reverse repo rate stands at 5.25 percent, lower than the current rate that is based on the 12-month BI certificate (SBI).

    BI economic and monetary policy executive director Juda Agung said it had coordinated with the banking industry and it expected no hassles to occur during the new scheme's implementation.

    "If we maintain the same stance as we do now, the [seven-day reverse repo] rate will stay the same. If we decide on an easing later, the rate will come down."

    According to BI, the current economic situation remains in check with the inflation rate hovering at around 3.45 percent year-on-year, which is within its target band of 3 to 5 percent for the whole of 2016.

    However, it acknowledges that credit growth is still limited and the banking industry needs time to keep up with its easing stance. Lending only expanded by 8.3 percent year-on-year in May, climbing slightly from 8 percent yoy in April, as revealed by the latest banking statistics.

    BI projects to see an improvement in bank loans with an estimated annual growth rate of 8.9 percent in June.

    Standard Chartere d Bank Indonesia economist Aldian Taloputra said BI was in wait-and-see mode, citing second-quarter growth data that might not come as strong as expected. The Central Statistics Agency (BPS) will announce the second-quarter results in August.

    "BI wants to keep its ammunition," Aldian said by phone. He predicted that BI would also watch the private sector's response to its new rate and the government's tax amnesty program.

    OCBC economist Wellian Wiranto was of the view that BI took a prudent step by holding the rates.

    "In taking a more cautious approach to rate cuts, BI must also be cognizant of the fact that even if there remains space to move, it is not infinite. Even as inflation has stayed relatively subdued in recent months, it is still prone to upticks caused by idiosyncratic factors, such as the risk of higher food and fuel prices in particular," he wrote in a research note.

    Aldian and Wellian projected a rate cut would occur in September af ter the new scheme took effect.

    Singapore-based UOB foresees one more 25 bps cut in August or September. In a research note, it says it believes BI can also further reduce the banks' reserve requirement ratio (RRR).

    —JP/ Prima Wirayani

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    Source: BI holds rate steady before new scheme takes effect in August

    The Leaning House of Jakarta

    In every neighborhood there's always one odd ball.

    And the upmarket gated community of Pondok Indah, home to Jakarta's wealthy and well-known, is no exception.

    In the midst of this collection of neo-classical homes, lies what has been nicknamed the "Leaning House of Jakarta".

    Built at a dramatic 70-degree angle, it is the rebellious brainchild of architect Budi Pradono.

    Standing out among the crowd

    Unlike the Leaning Tower of Pisa, in Italy, which careens by mistake, the Leaning House of Jakarta is listing by design.

    At first, says Pradono, it was going to slant "a little bit" -- "maybe 10, 20 degrees".

    "Finally, we found that 70 degrees (was the perfect angle). So, we brought something new to this area, something striking."

    Pradono intends his beautiful oddity to serve as a rejection of the mock-European status houses in the upmarket neighborhood of the huge Indonesian capital.

    Designed to stand out, the house also makes a statement about openness -- its glass frontage rejecting the closed ethos of the gated community with which it shares a border.

    Property boom

    Over the past 7 years, property prices in Jakarta -- home to 10 million people -- have doubled, hitting a lofty $15,000 per square meter.

    The Leaning House's proprietor Christina Goux, a modern art gallery owner, bought the land the property now stands on a decade ago for just $500 a square meter -- the value has since risen to $4,000 per square meter.

    When building her home, she gave Pradono an open mandate.

    "It's my dream house," she tells CNN. "If I build another house, it should be like this, too."

    Goux says she wants the three-story property to become a haven for visiting artists, exhibitions and small jazz concerts.

    Pradono is proud of his creation, and its refusal to be classified.

    "It is important to redefine architecture, redefine the new living space and how people live", he adds.


    Source: The Leaning House of Jakarta

    Thursday, July 21, 2016

    Investments sought to develop Natuna fisheries industry

    Illegal fishing vessels. (Photo: Kementerian Kelautan dan Perikanan Republik Indonesia)

    Investments sought to develop Natuna fisheries industry

    Click on the flag for more information about Indonesia INDONESIAFriday, July 22, 2016, 02:20 (GMT + 9)

    Indonesian authorities intend to attract foreign investors to develop fisheries in the Natuna and Riau islands, around which foreign boats seized for conducting illegal fishing activities will be sunk on August 17, the country's Independence Day.

    The initiative, aimed at obtaining the means for the country to achieve its annual 1 million ton fish production target, is considered as helpful to contribute to establish peace in the South China Sea, The Jakarta Post reported.

    "Last week's Cabinet meeting also decided that we need to establish our own fish market in the area, an international one like what Japan has established," Coordinating Political, Legal, and Security Affairs Minister Luhut Pandjaitan pointed out.

    The minister also announced that the Government planned to relocate 4,000 to 6,000 semi-grounded fishing boats from northern Java waters to the Natuna Islands due to declining fish stocks in the former area.

    The economic cooperation, which is also expected to create jobs among the local population, is being offered as a way to maintain peace between Indonesia and other claimant states in the South China Sea spat, especially China, who has rejected an international tribunal's ruling that Beijing's claims to the regional sea have no legal basis.

    Indonesia's exclusive economic zone, which covers over 2,000 islands in the Natuna waters, overlaps with China's claimed "nine-dash line" quasi-territorial border, which stretches up to 2,000 kilometers away from its mainland.

    On the other hand, Minister Pudjiastuti announced she will visit Natuna on July 22 to inspect the construction of a house for traditional fishermen from Java's northern coastal areas (Pantura), who fish in the Natuna waters, Antara News informed.

    The minister will also inspect a cold storage facility in Natuna to support fish exports and will attend a groundbreaking ceremony for the construction of a detention centre for poachers arrested for conducting illegal fishing in Indonesian waters.

    Meanwhile, the ministry's Secretary General, Sjarief Widjaja, stated that the government had allocated IDR 60 billion (USD 457 million) for the construction of a three thousand-ton capacity cold storage and a fish auction centre.

    Indonesian Government authorities also announced the decision to build military bases in the Natuna Islands, which coincides with the country's planned deployment of new submarines this year, and Jakarta's declared ambitions to transform Indonesia into a global maritime axis power.

    Related articles:

    - China blames the Philippines for disputed teritorry issues- The Hague Court disregards China's maritime jurisdiction claims 

    editorial@fis.comwww.fis.com


    Source: Investments sought to develop Natuna fisheries industry

    Indonesia needs new clearing house for forex, derivatives: BI

    The central bank is considering the establishment of a new Central Counterparty (CCP) clearing house to deepen the market and reduce the credit risk and systemic risk of foreign exchange transactions in financial markets.

    During a seminar entitled "Central Counterparty Clearing Development in India, lesson learnt" held at the Bank Indonesia (BI) office, BI senior deputy governor Mirza Adityaswara said market deepening had been its major concern for around five years due to its slow progress.

    "As part of developing market infrastructure, Indonesia needs to establish a new CCP, an institution where clearing and settlement of financial transactions takes place," Mirza said in Jakarta on Thursday.

    Currently, Indonesia has PT Kliring dan Penjaminan Efek Indonesia (KPEI), as the capital market clearing house, and PT Kliring Berangkat Indonesia (KBI) as well as PT Indonesia Clearing House (ICH) for commodities and futures markets.

    "However, we are yet to have a CCP for foreign exchange, derivatives, the money market and bonds transactions," he added.

    With the development of the CCP, he expects the volume of foreign exchange and derivatives transactions to increase, which eventually will create market deepening. (ags)


    Source: Indonesia needs new clearing house for forex, derivatives: BI

    Wednesday, July 20, 2016

    Indonesia Warns of New Enemy Lurking About: Pokémon

    Photo Students playing Pokémon Go at a park in Denpasar, Indonesia, on Wednesday. Credit Made Nagi/European Pressphoto Agency

    JAKARTA, Indonesia — Engaged in a dispute with Beijing in the South China Sea and battling Australia over migrant boats, the Indonesian authorities are sounding the alarm over another pressing issue: Pokémon.

    Government officials, including leaders of the country's security forces, are warning that Pokémon Go, the new, globally popular location-based mobile game, is a national threat that could enable its enemies to gain access to top-secret data and penetrate sensitive government and military sites.

    "As the game uses a real-time camera, there will be security risks when played" near or within restricted state facilities, Sutiyoso, director of the State Intelligence Agency, the domestic spy service, tol d reporters on Friday. Like many Indonesians, he has only one name.

    Echoing his concerns, Yuddy Chrisnandi, director of the Ministry of Administrative and Bureaucratic Reform, barred all civil servants via his Twitter account from playing Pokémon Go while on duty inside government buildings. He said doing so could compromise state secrets.

    And on Wednesday, members of Indonesia's armed forces and National Police were also barred from playing the game while on duty, with their leaders calling it a security threat, according to local news reports.

    Before this, an advisory that circulated among the Indonesian military and the National Police claimed that the United States National Geospatial-Intelligence Agency was using the game as a "data collection system," according to The Jakarta Globe, an English-language online publication.

    The leaked advisory, according to the publication, stated that the C.I.A. had done the same thing with Facebook.

    Juwono Sudarsono, a former Indonesian defense minister, cast doubt on the claims, saying the National Geospatial-Intelligence Agency "was unlikely to spend billions to spy on Indonesia," with which Washington has strong diplomatic, economic and security relations.

    The stark warnings have had scant effect upon other government officials. Pramono Anung, cabinet secretary to President Joko Widodo, gleefully told reporters last week that he had captured a number of Pokémon while playing the game on the grounds of the presidential palace in Jakarta, the capital. The Associated Press reported on Wednesday that the playing of Pokémon Go has now been banned on palace grounds.

    In addition, the city's governor, Basuki Tjahaja Purnama, has suggested holding an event where Pokémon Go gamers play inside City Hall to help promote tourism.

    Pokémon Go has not been officially introduced in Indonesia, meaning gamers in the country are using unauthorized apps to play — including the government officials.

    Some security experts and analysts are skeptical that the game poses a threat to national security. They instead point to xenophobia among Indonesia's security forces dating to the country's independence from Dutch colonial rule in 1945.

    "It's the mind frame of the military itself — them not understa nding what Pokémon really is, and about the technology," said Yohanes Sulaiman, a lecturer at the Indonesian Defense University. "It's all part of their paranoia."

    "They believe in this idea of proxy war," he said. "The enemy is not there to attack us directly; they want to brainwash us — young teenagers — who are focusing on Pokémon and forgetting their duty to defend the country."

    Indonesian politicians and security officials over the decades have frequently pushed the theory that the country is under constant threat from its Southeast Asian neighbors, as well as the West.

    In March 2015, Gen. Gatot Nurmantyo, the Indonesian army chief at the time who is now the commander of the country's armed forces, declared in a speech that there was a "proxy war" being waged by foreign elements to steal the country's territory and get the nation's youth hooked on drugs.

    In 2008, the country's health minister, Siti Fadilah Supari, suggested that the United States was leading a conspiracy to develop the bird flu virus into a biological weapon and leave developing countries that need vaccines at its mercy.

    Robertus Robet, a sociology lecturer at the State University of Jakarta, said that Indonesia's security forces, even more than 15 years into the country's transition from authoritarian rule to democracy, continue to "project their own fear into some empirical objects such as a game like Pokémon."

    Yet, there has been at least one security lapse.

    On Monday night, a French citizen working in Indonesia was temporarily detained after stumbling onto the grounds of a military base in West Java Province while searching, he said, for Pokémon figures.

    He was eventually released, according to local police officials.

    Continue reading the main story
    Source: Indonesia Warns of New Enemy Lurking About: Pokémon