President Susilo Bambang Yudhoyono (left) and Vice President Boediono announce the names of the 2009 - 2014 Cabinet members at Merdeka Palace, Jakarta, on Wednesday night. (JP/R. Berto Wedhatama)

Saturday, November 07, 2009

Yudhoyono Replaces Indonesia Military Chiefs

The Jakarta Globe, Markus Junianto Sihaloho

Indonesian President Susilo Bambang Yudhoyono rides a military vehicle last month during a ceremony in Jakarta to mark 64th anniverasy of Indonesia's military. (Photo: Haryanto, EPA/Handout)

President Susilo Bambang Yudhoyono has unexpectedly replaced the heads of the Army, Navy and Air Force.

Army Chief of Staff Gen. Agustadi Sasongko Purnomo will be replaced by Commander of the Army Strategic Command Lt.Gen.George Toisutta; Navy Chief of Staff Admiral Tedjo Edhy Purdijatno will turn his position over to Defense Ministry Inspector General Vice Admiral Agus Suhartono; and Air Force Chief Air Marshal Subandrio will give way to Deputy Air Vice Marshal Imam Sufaat.

Army Spokesman Brig. Gen. Christian Zebua said on Saturday that he did not know the reason for the substitutions and noted that it is the president's choice when to replace top staff. He said the presidential decree stipulating Agustadi's replacement was issued on Friday.

All three chiefs are to be sworn in next week. Air Force Spokesman Air Commodore Bambang Sulistyo said that presented a challenge.

"We are working hard to prepare the inauguration ceremony because it is sudden notice," Bambang said..

Both Agustadi and Subandrio have served in their positions since December 2007, while Tedjo Edhy has commanded the Navy since July 2008. All are set to retire from their military careers in 2010. That is when a chief of staff is typically replaced.

Christian Zebua said the new three chiefs would likely become candidates to replace Gen. Djoko Santoso as chief of Indonesia's armed forces. Djoko will reach retirement age in 2010.

A source within the military who declined to be named said Agustadi, Tedjo Edhy and Subandrio would likely be given new positions as ambassadors.

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Friday, November 06, 2009

Susilo Bambang Yudhoyono: Act Two for Indonesia's President

Time/CNN, By Hannah Beech / Jakarta, Nov. 16, 2009

The one in charge - Indonesian President Yudhoyono says he intends to accelerate reform and promote transparency. Photograph for TIME by Kemal Jufri / Imaji

When traffic in Jakarta snarls to a stop — as it so often does in the Indonesian capital — swarms of peddlers besiege occupants of air-conditioned cars, offering up everything from roasted peanut to balloons. Lately, though, the street vendors have added another item to their eclectic wares: posters of the country's recently re-elected President Susilo Bambang Yudhoyono. The hawking of new merchandise in some of the world's worst gridlock is a fitting metaphor for a country that hopes to add a second I to the so-called BRIC emerging economies of Brazil, Russia, India and China. Just as SBY's second five-year term will draw to a close in 2014 — by which time he has vowed at least 7% economic growth, up from the 4.5% estimated for this year — urban planners fear that traffic in Jakarta will grind to a halt unless its transportation system is overhauled.

If anyone can keep Indonesia moving, it's the 60-year-old former army general who last month was sworn in for what, by law, is his final term. SBY, as he is commonly known in Indonesia, already made history in 2004 as the country's first directly elected President. In a nation where 14% of the country's 240 million citizens still live under the poverty line, SBY, who has a careful, consensus-driven leadership style, delivered one of the G-20's most impressive economic growth rates this year. His anticorruption drive, which landed even his own son's father-in-law in jail, drew plaudits in a country where graft often feels as omnipresent as urban smog. Little more than a decade after Indonesia emerged from dictatorship, SBY's peaceful re-election is proof that the world's most populous Muslim-majority nation can thrive as a stable democracy.

(Read "The 2009 TIME 100: Susilo Bambang Yudhoyono.")

The question now is what SBY will do with the overwhelming mandate he received from the Indonesian people in July. In his first foreign-media interview since his re-election, the President sounded the note of change: "Bureaucratic reform is one of my top priorities and so is combating corruption. If we achieve this, we can create a conducive climate for our economy to grow and our people to prosper." Dumping a marriage-of-convenience Vice President from his first term, SBY selected respected former central banker Boediono as his No. 2 this time around; despite political pressure, he has kept on Finance Minister Sri Mulyani Indrawati, whose commitment to cleaning up Indonesia's regulatory morass has delighted foreign investors even as it has irked some of the President's closest advisers, who didn't appreciate their own business interests coming under scrutiny. (In a further cleanup bid, SBY is instituting a pay raise for his Cabinet members "so they are not tempted by corruption.")

(See pictures of a deadly dam burst near Jakarta.)

But not all of the President's new Cabinet pleases reformists. During his first term, SBY's Democratic Party held just 7% of seats in parliament, and he had to stud his Cabinet with political appointees to ensure legislative support. Today, the Democrats control more than a quarter of parliamentary seats. Yet instead of increasing the number of technocrats in his second-term team, SBY doled out just as many party favors this time around, with more than half of Cabinet members political appointees. "There were high expectations that with the President's significant victory he had the mandate to choose better qualified and younger candidates for his Cabinet than last time and not be so dependent on political parties," says Hendardi, chairman of the Setara Institute, an NGO dealing with pluralism issues. "The reality is different and reflects his interest in protecting himself."

Of course, four-star generals don't get to the top without knowing how to look after themselves — and their charges. One of SBY's biggest priorities during his first term was overseeing a massive campaign to root out the Islamic militants who had conducted a series of deadly terror attacks since 2002. For four years, calm reigned in Indonesia. Yet just nine days after the President's re-election, fatal bombings at Jakarta hotels shattered any illusion that extremism had been eradicated. Raids on terror hideouts resulted in the killing of Noordin Top, the Malaysian militant who is believed to have orchestrated the bombings. But questions remain about how Southeast Asia's most wanted terrorist managed to crisscross Indonesia with ease for years — and whether the authorities did enough to try to nab him.

(Read "Facing the Enemy.")

The President will also have to redouble efforts to build, build, build. In 2005 and '06, SBY presided over glitzy infrastructure summits in which more than 100 projects were trumpeted. Yet little movement has occurred on any of these initiatives, which included badly needed transportation fixes. "I have to admit we faced many weaknesses at the time when we convened the infrastructure summits, including the readiness of the provinces," says SBY. "But this time around we are much better prepared." A concerted construction campaign will be needed if Indonesia is to reach SBY's ambitious 7%-plus growth targets. Southeast Asia's largest economy escaped the worst of the global financial crisis in part because its economy was girded by domestic demand, not an export-oriented strategy. Miles of new roads and sea links to better connect this far-flung archipelago will fire that internal growth engine. Otherwise, Indonesia's economy could slow to a crawl — and few commuters in Jakarta will be willing to spend their rupiah on posters of their smiling second-term President.

— with reporting by Jason Tedjasukmana / Jakarta

Read "What Indonesia's President Needs to Do."


Thursday, November 05, 2009

Defence industry will be revitalized: President

The Jakarta Post, Jakarta | Thu, 11/05/2009 7:27 PM

President Susilo Bambang Yudhoyono said Thursday he would revitalize the defence industry in the next five years.

"In five years, we will revitalize the industry. In 100 days, we must finish the master plan and road map for the revitalization plan," he said.

Yudhoyono said the defence industry revitalization was needed as the industry was vital to meet domestic demand, and overseas orders.

Aircraft maker PT Dirgantara Indonesia, weapon producer PT Pindad, and shipbuilder PT PAL Indonesia are among the state firms to be revitalized.

Yudhoyono said in the past five years, the industry had not received enough attention from the government.

President promises Rp 100 trillion of loans for small firms in five years

The Jakarta Post, Jakarta | Thu, 11/05/2009 5:01 PM

President Susilo Bambang Yudhoyono said Thursday he would allocate Rp 100 trillion (US$10 billion) of loans in five years to small firms to help eradicate poverty through entrepreneurship.

“We want entrepreneurship in each cities to improve,” he said, reading out his first 100-day cabinet-working plan.

He said banking institutions must be reformed to ensure that the micro loan program will be successful.

Wednesday, November 04, 2009

Migrant workers contribute US$4.1 billion to RI`s forex income

Antara News, Tuesday, November 3, 2009 16:52 WIB

Pontianak (ANTARA News) - Indonesian migrant workers abroad, who now number a total of six million, contributed US$4.1 billion to the country`s foreign exchange earnings up till September 2009, a manpower official said.

"The huge amount of foreign exchange has a real potential to boost the national economy. Migrant workers can also use their salaries as capital to start their own businesses after they have returned home," Lisna Poeloengan, deputy head of the National Agency for the Placement and Protection of Migrant Workers(BNP2TKI), said here on Tuesday.

Lisna said former migrant workers had a better chance to become good entrepreneurs since they had the factors required for it, namely independence, working spirit, product orientation and propensity to save their money developed during their stay abroad.

She said efforts must be made to promote and encourage the working spirit in former migrant workers.

"This exhibition featuring former migrant workers turned entrepreneur in West Kalimantan can serve as good examples," she said when representing Chief of BNP2TKI Jumhur Hidayat during opening ceremony of West Kalimantan Employment Exchange 2009.

As many as 30 former migrant workers originated from Pontianak, Banten, East Java, Central Java and Yogyakarta will be participated in the Pontianak exhibition.

They recently develop business in several sectors such as food products, electronic, fishery, Batik making and other export oriented products. This year`s exhibition will also featured 35 companies offering 4,512 vacancies for the visitors.

Before, Chief of BNP2TKI Jumhur Hidayat stated migrant workers are country`s second largest foreign exchange earner after oil and gas.

The chief added migrant workers were doing a great service to their country because they helped to reduce unemployment, each of them was providing a living for an average of five family members, and having a "multiplier effect" on regional development.

Their remittances were creating bases for the growth of entrepreneurship in their places of birth or origin.

"Therefore, they deserve to be called one of the country`s prime earners of foreign exchange. Their annual monetary contibutions combined are second only to the country`s earnings from oil and gas exports," Hidayat said.

Consequently, according to Hidayat, the government and all parties concerned should treat migrant workers with high respect, from the time they depart, while they are working abroad until they return home.

"The services to and protection of migrant workers should not only be good but excellent," Hidayat said.


Tuesday, November 03, 2009

Indonesian wiretaps fuel corruption debate

The Jakarta Post, Wed, 11/04/2009 5:55 AM

Hours of wiretaps aired Tuesday on Indonesian television appeared to bolster claims of brazen corruption involving key law enforcement officials, putting pressure on the president to defend his anti-graft credentials.

In conversations released at the Constitutional Court, prominent members of the Attorney General's office and police force were linked to bribes involving hundreds of thousands of dollars, Mercedes Benz cars, and a plot to frame two members of the Corruption Eradication Commission in a fabricated extortion case.

Indonesia is often ranked among the most corrupt countries in the world, but rarely have such secret dealings of law enforcement officials been publicly revealed as in the packed courtroom in the capital, Jakarta.

The wiretaps were played as the top court heard a case dealing with the legality of the suspension of commissioners Chandra Hamzah and Bibit Samad Riyanto, whose arrests last week escalated a monthslong battle between the leading graft-busting agency, known by its Indonesian acronym KPK, and rival police and prosecutors.

Hours later, national police spokesman Nanan Sukarna said the two men would be released to maintain the peace "in the interest of the nation," but that charges against them would not be dropped.

"Prosecutors will continue the legal process to bring them to trial and let the court decide whether they are guilty or not," he said.

The case poses a serious challenge to President Susilo Bambang Yudhoyono, who easily won re-election in July on the back of his reputation as a clean operator and democratic reformer.

In one of the most notable segments during several hours of phone conversations between July and September, the brother of a fugitive corruption suspect, businessman Anggoro Widjojo, allegedly discussed paying off Deputy Attorney General Abdul Hakim Ritonga and dividing 7 billion rupiah ($700,000) between police and prosecutors.

Ritonga did not respond to requests for comment Tuesday.

Yudhoyono, who faces mounting calls to intervene, has responded to widespread public anger over the KPK arrests by appointing a fact-finding mission. But it has no power to prosecute and may not be enough to appease calls to dismiss top officials.

House speaker Marzuki Alie said swift action must be taken against all officials involved and their punishment "must be more severe than penalties for ordinary people."

Hendardi, the head of the Legal Aid Association, an activist group for human rights and government reform, said after hearing discussions in the wiretaps about framing the KPK members, Yudhoyono should order their immediate release and fire the attorney general and chief of police for failing in their duties.

"People are tired of promises by government officials when they have not changed their own corrupt ways," Hendardi said. "This is the time for (the president) to listen to the voice of the people because he promised to really eradicate corruption."

Hundreds of supporters rallied for the release of the KPK deputies in cities across the main island of Java on Monday, saying the arrests were politically motivated. Larger protests are scheduled for Thursday.

A dozen students went on hunger strikes, pitching tents on a tiny patch of lawn outside the office of the KPK - the primary institution in the young democracy's efforts to stamp out cronyism still lingering since the downfall of the 32-year Suharto dictatorship in 1998.

A Facebook page supporting the suspended KPK members has gained more than 600,000 members since Thursday.


While Global Recovery Sputters, Indonesia Strong, IMF Says

The Jakarta Globe

Indonesia’s strong domestic fundamentals should allow its economy to remain strong despite the prospects for a more sluggish global recovery than had recently been predicted, the International Monetary Fund said on Monday.

Milan Zavadjil, the IMF’s chief representative in Jakarta, forecast that the country’s economy would grow by 4.8 percent in 2010, just below the government’s target of at least 5 percent.

“We expect the Indonesian economy to grow by 4 percent in 2009 and 4.8 percent in 2010,” Zavadjil said. “We know it is below the consensus, but we still see the potential upside.”

Zavadjil said the relatively conservative expectation was not because the country’s economy was weaker than thought, but because the global economy was.

He said most of the positive signs of recovery in the global and Asian economies were fueled by massive stimulus packages and extraordinarily loose monetary policies issued by many countries in reaction to the economic crisis.

However, some indicators had raised doubt over the health of any broader recovery, he said. These included persistently high unemployment rates and weak retail demand.

Zavadjil said most Asian countries were in a precarious position because of their reliance on exports to support their economies, meaning stimulus was needed to maintain stable growth.

UBS global economist Paul Donovan had voiced similar estimates on Thursday, saying the shape of the global recovery would likely resemble a “Nike swoosh” rather than a classic “V.”

However, both economists agreed that the slower global recovery would have only a minor impact on Indonesia’s economy.

“The recovery in Indonesia is self-sustaining ... due to strong domestic demand,” Zavadjil said, adding that the 4.8 percent growth would be achieved mainly through that domestic demand.

Edward Teather, a senior economist at UBS, said Indonesia had advantages that would allow it to grow faster than its neighbors.

“Compared to Malaysia and Thailand, Indonesia has huge room for domestic spending, given the high rate of the savings and investment compared to GDP, the highest in Asia outside China and India,” he said.

UBS sees the country growing by up to 5.3 percent in 2010. It said the government’s target of 7 percent growth by 2014 was reachable if appropriate measures were taken.

“The key to higher growth is increasing productivity per capita, and infrastructure development would do this. With strong domestic demand, I also believe foreign investors will remain confident in putting their investments here,” Teather said.

President Susilo Bambang Yudhoyono has said the country needed Rp 2,100 trillion ($220 billion) of investment per year for the next five years to be able to reach the 7 percent target.

Fauzi Ichsan, a local economist from Standard Chartered Bank, said the IMF’s lower forecast might be caused by expectations of a slower global economic recovery, which “still has an effect on exports and commodity prices.”

“However, we also see that the potential upside is bigger than the downside risk. The potential upside would depend on how fast the government could roll out planned infrastructure projects,” he said.


Monday, November 02, 2009

Exports still slow: BPS

Aditya Suharmoko, The Jakarta Post, Jakarta | Mon, 11/02/2009 3:48 PM

Exports in September declined as business activities slowed during the fasting month, the Central Statistics Agency (BPS) reported Monday.

After reaching above US$10 billion (Rp 100 trillion) in August for the first time this year, exports again declined to $9.83 billion in September, a 19.92 percent drop from a year earlier, BPS head Rusman Heriawan said in a press conference.

"What made exports not fall too deeply (in value) was mining products," he said, adding that most of them were coal.

In the first nine months of this year, exports reached $80.13 billion. Imports reached $68.33 billion, resulting in a trade surplus of $11.8 billion.

Related Article:

Furniture exports expected to fall 40%


Survey: Indonesia ranks 2nd most confident country in Q3

www.chinaview.cn 2009-11-02 15:20:28

JAKARTA, Nov. 2 (Xinhua) -- Indonesia ranked as the second most confident country in the world in terms of economic growth in the third quarter, a survey showed on Monday.

The AC Nielsen Company Indonesia, a leading survey company, said that Indonesia ranked second after India in the survey conducted on Sept. 28 to Oct. 16, followed by Norway in the third place while the lowest position was occupied by Latvia and Japan.

The Nielsen's Global Consumer Index examined consumer's confidence, main concern and spending by more than 30,500 Internet users in 54 countries.

"Meanwhile, consumer's confidence in Indonesia heavily depends on inflation. When we have high inflation, consumers tend to react by showing decreasing level of consumer's confidence," said Catherine Eddy, the company's executive director for consumer research.

On the contrary, with significantly recovered inflation pressure this year, consumer's confidence among Indonesians has increased, she said.

"2009 is a good year for consumers in the point of view of price, especially if it compared to 2008 when households were really in the hard times with two digits increase in many fields," she said.

According to Catherine, September's index was bigger than June's, so this is good news that market is still optimistic about the future.

She added that there was another factor contributing to the high consumer's confidence.

"Indonesians believe in political and economic stability in the country," she said.

"The company's data showed that Indonesia's consumer's confidence index was at 115 in the second half from 104 in the previous period, or an increase of 11 percent.

The survey also showed that even though Indonesians had high optimism of economy, half of them retained spending and saved their money. It showed that half of the respondents took precaution against the worst scenario.

According to Catherine Eddy, the increase of 9 points to 86 in October from 77 in April in global consumer's confidence showed that in the last six months most consumers got more optimistic.

The survey also showed that Hong Kong increased its consumer's confidence by 14 points to 93 from 79, the biggest increase in the world, followed by South Korea (+13 points) and Brazil (+12 points).


Friday, October 30, 2009

KPK Arrests 'Not Extraordinary': Yudhoyono

The Jakarta Globe, Kinanti Pinta Karana

President Yudhoyono arriving in Jakarta on Tuesday after the Asean+3 Summit in Thailand. (Photo: Widodo S. Jusuf, Antara)

There is nothing strange about the arrests of Indonesian anticorruption chiefs Chandra M Hamzah and Bibit Samad Rianto, President Susilo Bambang Yudhoyono said on Friday

“It is not an extraordinary thing for a person who is under investigation to be arrested,” he said in a press conference at the State Palace on Friday.

Yudhoyono said the arrest sparked controversy because Chandra and Bibit are Corruption Eradication Commission (KPK) officers.

“It has become a controversy because both of them are KPK leaders and many people did not believe that KPK leaders could commit a corruption-related crime, and also the issue of friction between KPK and the police over the last three months,” said Yudhoyono.

Yudhoyono said the arrests were within police authority and were carried out according to the law. He said he had asked the National Police Chief Bambang Hendarso Danuri to explain the arrest during a meeting on Friday morning.


Cartoon - Irma R Damayanti, The Jakarta Post, Jakarta | Fri, 10/30/2009

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Thursday, October 29, 2009

RI eyes 7 percent economic growth, with reductions in poverty, unemployment rates

Erwida Maulia, The Jakarta Post, Jakarta | Thu, 10/29/2009 2:15 PM

Getting advice: Getting advice: President Susilo Bambang Yudhoyono speaks during the opening of the National Summit in Jakarta on Thursday. JP/R. Berto Wedhatama

Indonesia is targeting an economic growth of 7 percent and to reduce its unemployment and poverty rates by up to 5 and 8 percent respectively by 2014, President Susilo Bambang Yudhoyono said here Thursday.

Yudhoyono said, as he opened the two-day National Summit, the targeted economic growth was expected to help create jobs and thus reduce the unemployment rate from the current 8 percent to between 5 and 6 percent by 2014.

"And with hard work, we are aiming to cut the poverty rate from the current 14 percent to between 8 and 10 percent [by 2014]," he said, before 14,000 summit participants.

He said that investment was needed so as to enable the economic growth and, in order to reach the 7 percent target, Indonesia required a total investment of about Rp 2,100 trillion (US$219 billion) per year for the next five years.

Financing would be prioritized from the domestic private sector as well as from government spending.

"If that is still not enough then we will partner with our friends from other countries," Yudhoyono said.


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President calls for reform of educational methods

The Jakarta Post, Jakarta | Thu, 10/29/2009 3:01 PM

President Susilo Bambang Yudhoyono has called on national education authorities to reform existing teaching methods and encourage a spirit of entrepreneurship among students.

Speaking during the opening ceremony of a national summit in Jakarta on Thursday, Yudhoyono said students with a spirit of entrepreneurship would be able to support national development in the future.

The President said the main strategy for improvement of the next five-year development program was entrepreneurship, technological innovation and people's empowerment.

He called on the national education minister to reform existing teaching methods and to allow students to play a larger role in the teaching and learning process.

"Creating the spirit of entrepreneurship is not easy, but through various efforts – and one of them is national education reform – it is possible," the President said as quoted by state news agency Antara.

During the summit, private companies and other stakeholders are expected to provide the government with input for the 2010-2014 period.

Vice President Boediono is coordinating the summit and on the final day, Saturday, will provide a report on the conclusions reached, before reporting to the President.


Wednesday, October 28, 2009

A breath of fresh air for start-ups

Mustaqim Adamrah, THE JAKARTA POST, JAKARTA | Wed, 10/28/2009 1:28 PM

Aiming to help cut red-tape and bureaucracy, the Law and Human Rights Ministry is in the process of adopting a system that would cut the registration period for business start-ups to 14 days at the longest.

Head of the restructuring team at the ministry, Freddy Harris, said Tuesday the new system - developed in partnership with the International Finance Corporation (IFC), the private arm of the World Bank - would effectively reduce the registration process from between 30 to 60 days now, to 14 days or less.

"The new system will be fully effective on Jan. 1, 2010," he said on the sidelines of a workshop on business registration reforms in East Asia and the Pacific organized by the IFC.

He said the system was already "semi-online" at present, with 75 percent of the information "produced by the system, not people".

These efforts, he said, were eventually aimed at improving the business climate in Indonesia.

Under the latest Doing Business Survey jointly conducted by the World Bank and the IFC, Indonesia now ranks as the 122nd most competitive country in terms of ease of doing business, up by seven notches from its ranking last year.

The annual survey, first launched in 2004, involves 183 economies including in East Asia and the Pacific.

In spite of some improvements, Indonesia is still ranked far below Singapore (1st), Thailand (12th), Japan (15th), Malaysia (23rd), Mongolia (60th) and even Ethiopia (107th), but is doing better than Nepal (123rd), Brazil (129th), India (133rd), the Philippines (144th) and Cambodia (145th).

Brigit Helms, IFC Indonesia's head of advisory services, said the ministry could cut red-tape by, first, eliminating the mini-mum capital requirement, and two, and by dispensing with the role of notaries in registering a business as this "can add more time to the process".

"Any top rated countries, like Singapore and New Zealand, don't *have the minimum capital requirement, while* in many other countries, people can go directly to the electronic governance system . and input their information," she said.

"As many as 95 percent of companies in Indonesia are informal. That means they're marginalized, they may be small, they don't have access to credit, they don't pay taxes," she said.

"They'll really contribute as fully as they can so that the economy can grow, if we can make busi-ness registration easier for these informal businesses. The benefits are *potentially* enormous to the economy."

In response to IFC's suggestions, Freddy said the ministry might consider eliminating the present requirement for Rp 50 million (US$5,250) in minimum capital, and would also look at redefining the role of notaries.


Monday, October 26, 2009

Experts Tapped For Key Positions in Indonesia's Ministries


Among the ministries with a 'revitilization agenda' is the Agriculture Ministry, Yudhoyono said, as it is tasked with achieving self-sufficiency in key commodities. (Photo: Enny Nuraheni, Reuters)

Hua Hin, Thailand. President Susilo Bambang Yudhoyono said on Sunday he would soon name deputy ministers to at least six important ministries, and prioritize professionals for the posts.

At a news conference here, where he was attending an Asia-Pacific summit, the president said the ministries that required deputy ministers were those tasked with revitalization programs aimed at building stronger governance.

“The next five years have a number of important priorities and agendas for particular ministries that will have to carry out the revitalization programs,” he said.

According to Yudhoyono, at least four ministries had been given revitalization agendas — the Ministry of Agriculture, Ministry of Industry, Ministry of National Education and Ministry of Health.

The Agriculture Ministry, for example, has been tasked with revitalizing strategic commodities to achieve self-sufficiency. The Health Ministry will focus more on public health issues such as insurance.

“These ministries will have a high ‘workload’ … they need to have ‘backup’ to ensure the wheels keep turning,” the president said.

Yudhoyono said the Ministry of Foreign Affairs and the Ministry of Finance both required deputy ministers to take charge when the minister was abroad.

“The minister of foreign affairs and the minister of finance spend a lot of time overseas,” he said.

The president said he would prioritize professionals for the deputy ministerial positions, although one or two deputy ministers could be taken from political parties.

“I’ll prioritize professionals who are not affiliated with political parties because they can focus on the job,” he said.

Meanwhile, the president also affirmed that Indonesia would never leave the Association of Southeast Asian Nations.

“Indeed, I have heard concerns that if Indonesia has a new club, namely the G-20, then it will no longer make Asean its main house,” he said.

As one of the founders of the regional grouping, the president said, Indonesia would maintain an active role and continue to play an important part in Asean.

During the G-20 meeting in the US city of Pittsburgh in September, Yudhoyono also expressed his desire for the Asean rotating chairman to be invited to future meets.

The three-day conference in Thailand closed on Sunday with the fourth East Asia Summit, where leaders of the 10 Asean member nations met with their counterparts from China , Japan, South Korea, India, Australia and New Zealand .

On the sidelines of Sunday’s summit, Yudhoyono also met with Japanese Prime Minister Yukio Hatoyama, who offered a $400 million loan to help tackle global warming.

The loan was part of the “Hatoyama Initiative” unveiled last month, in which Tokyo would provide financial and technical assistance to developing countries to help address climate change.

The three-day summit included the launch of Asean’s first human rights watchdog and talks on the economic integration of the association by 2015, disaster management issues, climate change and military-ruled Burma, an Asean member widely criticized internationally for its human rights record.

Reuters, AP, Antara

Saturday, October 24, 2009

Govt preparing national-scale summit

Erwida Maulia, The Jakarta Post, Jakarta | Sat, 10/24/2009 2:38 PM

The new government is making preparations ahead of next week's National Summit, which will involve more than 1,000 stakeholders across the country in the planning of the national development for the next five years.

The summit, to be held on Oct. 29-31, will draw participants comprising governors from the country's 33 provinces, mayors and regents, regional- and central-level legislators, aside of the 34 new Cabinet ministers and other high-rank officials, among others.

Coordinating Minister for the Economy Hatta Radjasa said in a press conference here Saturday that the summit would also involve non-governmental organizations, commerce and industry chambers, university representatives and observers.

"All the stakeholders are expected to have dynamic discussions over the summit's topics... The government will take all inputs into considerations," Hatta said after a coordination meeting on the summit's preparations led by Vice President Boediono at the Vice Presidential Palace on Jl. Medan Merdeka Selatan.

"Therefore we hope all parties will feel involved in the making of Indonesia in the next five years, which will hopefully turn better and more prosperous and manage to achieve its targets," he added.

Hatta said the Summit would be opened by President Susilo Bambang Yudhoyono next Thursday, who would convey his visions of Indonesia in the next five years.

Afterward participants will be divided into three major groups discussing economic matters; political, legal and security affairs; and welfare issues.

Hatta said in the economic field, participants would be divided into six commissions, comprising those discussing infrastructure, food, energy, industrial revitalization, transportation, and small and medium enterprises and service industry.

"For each topic we will raise a number of issues, such as financing in infrastucture development. How's to make people interested in public-private partnership, land acquisitions, etc," he said.

Coordinating Minister for Political, Legal and Security Affairs Djoko Suyanto said his field would be divided into five commissions, i.e. those on regional autonomy, public service and bureaucratic reform, graft combat and prevention, law reform, and fight against terrorism and preventive measures.

"Although the topics have been set out, the commissions' meetings will be opened to other issues emerging at the floor," Djoko said.

Coordinating Minister for People's Welfare Agung Laksono said the welfare sector would be also divided into five commissions: poverty, job creation, education, health, and climate change.

"We will invite labor and professional organizations to take part in the discussions of the job creation commission," Agung said.

Similar summit was held in 2004 at the beginning of Yudhoyono's presidency for the 2004-2009 term.

The Saturday's coordination meeting was also attended by State Minister for National Development Planning Armida Alisyahbana and head of the presidential work unit for development monitoring and control (UKP4) Kuntoro Mangkusubroto.

Related Articles:

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Traditional markets to see big overhaul

New team on economy vows to revive real sector


SBY pledges ‘strategic, prestigious’ post for Maluku figure

Erwida Maulia, The Jakarta Post, Jakarta | Fri, 10/23/2009 9:40 PM

In a bid to console Maluku people disappointed in the Cabinet lineup, which spares no seat to the ethnicity, President Susilo Bambang Yudhoyono said Friday a native Maluku figure would be allocated a key state post.

“In the near future there will be a Maluku native who will hold a very strategic and prestigious state job. I am thinking about it,” Yudhoyono told a media conference.

It was unclear who the President was referring to.

On Thursday, after swearing-in 34 Cabinet ministers, the chief of presidential delivery unit and the State Intelligence Agency chief, Yudhoyono will install Gita Irawan Wiryawan as the Investment Coordinating Board chief and appoint a new Cabinet secretary and several deputy ministers.

Yudhoyono has no plan to replace the Attorney General, the National Police chief or the Indonesian Military chief.

Dozens of Maluku youths protested on Friday on the absence of a Maluku native from Yudhoyono’s Cabinet, stamping a white banner with their blood.

In response, Yudhoyono defended his selection, which he said comprised of the right people for the right jobs.

“There was no partiality toward certain favored groups or discrimination against others. I love all my compatriots, regardless of their background,” Yudhoyono said.

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'Together We Can' is New Cabinet's Theme

The Jakarta Globe

President Susilo Bambang Yudhoyono introduced the themes he wants the new cabinet to focus on the first cabinet meeting at The State Secretary Office on Friday.

The themes took the form of three taglines. Yudhoyono said the first, “Change and Continuity,” meant new ministers should not hesitate to continue relevant programs that were begun under the old cabinet.

The second tagline encouraged “De-bottlenecking, Acceleration and Enhancement” in the pursuit of development. The president said those goals sprang from an appraisal of his government's first five years.

“By evaluating the first Indonesia United Cabinet, I have identified weaknesses, constraints and unfinished goals because of bottlenecking and clashing regulations. Bottlenecking is the homework for the second Indonesia United Cabinet,”” he said before inaugurating the cabinet on Thursday.

The third tagline is “Unity: Together We Can," echoing the "Yes We Can!" theme used by Barack Obama's presidential campaign last year.

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House to decide on ‘special days’


Kuntoro 'my eyes, my ears and my hands': SBY

Erwida Maulia, The Jakarta Post, Jakarta | Fri, 10/23/2009 10:50 PM

President Susilo Bambang Yudhoyono held Friday the maiden Cabinet meeting of his second term, consolidating new members and underlining his intent to run a tight ship.

In his two-hour address to the Cabinet, Yudhoyono, accompanied by Vice President Boediono, put a heavy emphasis on the importance of good teamwork to achieve progress and attain the 100-day, one-year and five-year targets, which Presidential Unit for the Management of Programs (UKP3) chairman Kuntoro Mangkusubroto helped draw up.

“The head of the presidential unit will, 24 hours a day and seven days a week, work to make sure that everything, including de-bottlenecking [of hindrances to development], run well,” Yudhoyono said at the opening of the meeting at the State Secretariat.

“He will, if necessary, be my eyes, my ears and my hands ... and I will set for him certain responsibilities that will not overlap with the [three] coordinating ministers.”

Seemingly drawing from past experience, Yudhoyono ordered all the ministers and state officials to set up hotline numbers to allow him to contact them at any given time.

He added he would not make any phone calls if he had nothing important to discuss.

“I hate it the most when I try to call a minister for one or two hours and they don’t answer, respond nor try to find out what I want,” he said.

Friday, October 23, 2009

Indonesian President Warns Cabinet to Stay Loyal

The Jakarta Globe, April Aswadi, October 23, 2009

President Susilo Bambang Yudhoyono and Vice President Boediono with the 34 ministers and three state officials sworn in as members of the cabinet at Merdeka Palace. (Antara Photo)

President Susilo Bambang Yudhoyono on Thursday reminded the new cabinet that he expected all his ministers, whatever their political affiliation, to be loyal to him.

“I remind you, we follow a presidential cabinet system. The president is the captain,” Yudhoyono said. “Your loyalty and lines of responsibility are straight to the president, not to your political party chairman. When it comes to governmental duties, I hope — bear this in mind — that we will work together.”

Addressing the cabinet after swearing them in, Yudhoyono said the interests of the nation must be the ministers’ first priority and come above their own personal or communal interests, and added that their performance would be closely monitored and measured by the public.

Cabinet watchers have said that such a reminder was especially necessary considering that many of the ministers came from political parties, including some that were not initially allies.

Several ministers hold senior executive positions in political parties, including National Awakening Party (PKB) chairman Muhaimin Iskandar, who has the manpower and transmigration portfolio, Prosperous Justice Party (PKS) chairman Tifatul Sembiring, who is the communication and information technology minister, and Religious Affairs Minister Suryadharma Ali, who heads the United Development Party (PPP).

“Wherever you come from, whatever political party you are a member of, I hope that you put the interests of the government, nation and state above the interests of political parties, groups and classes,” Yudhoyono said. “Do not invert this .”

Coordinating Minister for the Economy Hatta Rajasa said the president would not prohibit ministers from also holding executive party positions because he believed they should be able to separate their loyalties to their parties and to the government

“He [Yudhoyono] also mentioned that the most important thing [for a minister] is to know where their loyalties should lie, and to work fully for the interests of the nation during their tenure as ministers,” said Rajasa, the former state secretary.

Yudhoyono also asked his ministers to prove their mettle at their new posts. The president said they had signed an integrity pact and a performance contract related to the goals they had to achieve during their tenure before they were officially appointed to their posts.

“I hope that you do what you have already pledged to do,” he said.

The president added that he would conduct annual performance evaluations.

“It’s impossible to change and achieve everything in the next five years,” he said. “But the people will find out whether you have worked hard or not.”

Yudhoyono also called on his ministers not to be swayed by public opinions about the cabinet, and to remain strong and focused on their duties.

“With regards [to opinion], I tell you, don’t fight words with words, but with action,” he said.

On Thursday, Yudhoyono installed 34 ministers, the chief of the State Intelligence Agency (BIN), Sutanto, and the head of the Presidential Working Committee on Monitoring and Controlling National Development, Kuntoro Mangkusubroto.

The new state secretary, Sudi Silalahi, said the head of the Investment Coordinating Board (BKPM), Gita Wirjawan, would be installed later, along with the deputy ministers who have yet to be named.

“This is within procedures,” Sudi said. “The president has two weeks to fully decide on the cabinet. It’s still day one. But everything is in process.”

Related Article:

'Together We Can' is New Cabinet's Theme


Thursday, October 22, 2009

Compromise Cabinet 2.0

The Jakarta Post, Jakarta | Thu, 10/22/2009 11:01

Whose dream team?: President Susilo Bambang Yudhoyono (left) and Vice President Boediono announce the names of the 2009 - 2014 Cabinet members at Merdeka Palace, Jakarta, on Wednesday night. (JP/R. Berto Wedhatama)

Revamped and upgraded, President Susilo Bambang Yudhoyono unveiled his second United Indonesia Cabinet, which he insisted was based on a “rational and objective” selection process.

The much-anticipated announcement late Wednesday night at the State Palace held few surprises.

Most of the 37 names – 34 ministers and three state officials of Cabinet rank – announced were predicted earlier.

Ten ministers from the previous Cabinet were re-named, albeit with different portfolios.

The only major surprise was the selection of Endang Rahayu Sedya-ningsih as health minister, apparently replacing the frontrunner for the job, Nila Juwita Anfasha Moeloek.

The latter, according to media reports earlier in the day, failed her checkup, which was one of the prerequisites set by the President in his screening process.

Nila’s aide told journalists the frontrunner was heartbroken at being passed over, while her house was already receiving premature congratulatory bouquets.

Before a national audience, the President kept up the suspense nonetheless with a near 10-minute defensive spiel on the Cabinet selection.

“There were a lot of people who wanted to meet me. With all due respect, I told them it was best not to meet yet,” Yudhoyono said.

“The system is working,” the President remarked, adding that he and Vice President Boediono had been working diligently over the past 10 days to make the most “rational and objective” selection.

“It was not done recklessly,” he ensured.

In an apparent pre-emptive strike against his critics, Yudhoyono said disapproval of the selection was common, as in previous Cabinet announcements.

“If there are voices [of disapproval] out there, then it's all part of democracy,” he said, while stressing that he had completed the Cabinet selection process in accordance with stipulations in the law requiring a government be formed within 14 days of the presidential inauguration.

In a Cabinet half-filled with politicians, members of the Indonesian Democratic Party of Struggle (PDI-P) were conspicuously, but not unexpectedly, absent.

PDI-P central board member Effendi Simbolon, said his party was not disappointed.

"We never even thought we would be included, especially looking at the way SBY [Yudhoyono] engaged in political communication with us," he told The Jakarta Post.

"SBY always communicated with us through Hatta Radjasa. So, it was only natural for us to not be too hopeful," he added.

Meanwhile, Muhammadiyah chairman Din Syamsuddin said the organization “did not ask and was not asked by the President to nominate its figures for the Cabinet”.

“The Cabinet lineup is the President’s prerogative,” he said when asked to respond as to why neither Muhammadiyah nor Nahdlatul Ulama (NU), the country’s two biggest Muslims organizations, were notably represented, as they traditionally are.

Din said he had “no problem” with the exclusion but questioned Yudhoyono’s “statesmanship” in failing to involve major Muslim groups, such as Muhammadiyah and NU, in various development projects.

“Yudhoyono should develop a genuine strategic partnership with civil society organizations and stop promoting superficial communications,” Din told the Post.

Separately, Reform Institute executive director Yudi Latif said the announcement confirmed Yudhoyono’s selection was based on political accommodation rather than capability in order to control his political coalition.

"That’s why he gave posts to party members who have a strong political grip on their respective parties, rather than the most capable and professional among them," he told the Post.

"I also believe his goal to have a successful first 100-day program is nonsense. Around 40 percent of the ministers are placed in posts that have nothing to do with their backgrounds. These ministers will surely need time to learn about the issues and problems in their respective posts," he added.

The President in his speech also said he would assign deputies to ministers in several Cabinet portfolios. The appointments would be announced at a later date.

The President also said that for now there would be no change in three other ranking positions in the government: The Attorney General, the Indonesian Military Chief and the National Police Chief.


The United Indonesia Cabinet 2009-2014

Coordinating Ministers

  • Coordinating Minister for Political, Legal and Security Affairs : Djoko Suyanto
  • Coordinating Minister for People’s Welfare : Agung Laksono
  • Coordinating Minister for the Economy : M. Hatta Radjasa

Portfolio Ministers

  • Home Minister : Gamawan Fauzi
  • Foreign Minister : R. M. Marty Muliana Natalegawa
  • Defense Minister : Purnomo Yusgiantoro
  • Justice and Human Rights Minister : Patrialis Akbar
  • Finance Minister : Sri Mulyani
  • Energy and Mineral Resources Minister : Darwin Z. Saleh
  • Industry Minister :M. S. Hidayat
  • Trade Minister : Mari Elka Pangestu
  • Agriculture Minister : Suswono
  • Forestry Minister : Zulkifli Hasan
  • Transportation Minister : Freddy Numberi
  • Maritime Affairs and Fisheries Minister : Fadel Muhammad
  • Manpower and Transmigration Minister : Muhaimin Iskandar
  • Public Works Minister : Djoko Kirmanto
  • Health Minister : Endang Rahayu Sedyaningsih
  • Education Minister : Mohammad Nuh
  • Social Affairs Minister : Salim Segaf Al Jufri
  • Religious Affairs Minister : Suryadharma Ali
  • Minister of Culture and Tourism : Jero Wacik
  • Minister of Communication and Information : Tifatul Sembiring

State Ministers

  • State Secretary : Sudi Silalahi
  • State Minister Research and Technology : Suharna Surapranata
  • State Minister for Cooperatives and Small and Medium Enterprises : Syarifuddin Hasan
  • State Minister for the Environment :Gusti M. Hatta
  • State Minister for Women’s Empowerment : Linda A. Gumelar
  • State Minister for Administrative Reforms : E. E. Mangindaan
  • State Minister for Disadvantaged Regions : Ahmad Helmi Faisal Zaini
  • State Minister for National Development Planning/National Development Planning Board chairman : Armida Alisjahbana
  • State Minister for State Enterprises : Mustafa Abubakar
  • State Minister for Youth and Sports Affairs : Andi Mallarangeng
  • State Minister for Public Housing : Suharso Manoarfa

State officals
  • Head of State Intelligence Agency : Sutanto
  • Head of Investment Coordinating Board (BKPM) : Gita Irawan Wirjawan
  • Presidential Unit for the Management of Reform Programs (UKP3R) : Kuntoro Mangkusub

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Tuesday, October 20, 2009

Yudhoyono envisions Indonesia's global leadership

The Jakarta Post, Jakarta | Tue, 10/20/2009 11:20 AM

In the spotlight: President Susilo Bambang Yudhoyono, center, deliver a speech after he was sworn in for a second term, Tuesday, in Jakarta. Yudhoyono, the nation's sixth president, is expected to make greater progress against crippling poverty and corruption in his second five-year term. AP/Achmad Ibrahim

President Susilo Bambang Yudhoyono said Tuesday that Indonesia would play a more active role in the international arena, both at the regional and global levels.

Speaking during his inauguration at the People's Consultative Assembly building, President Yudhoyono said that Indonesia would continue its leadership in the current negotiation for a climate deal that would be completed in Copenhagen in December.

Yudhoyono also said that Indonesia would also be more active in pursuing global economic reforms through various international organizations that Indonesia is a part of, especially through the prestigious Group-20.

Indonesia, Yudhoyono said, would also continue to play its leadership role in Southeast Asia through the Association of Southeast Asian Nations (ASEAN) to create an "ASEAN community."

"We want to create an ASEAN community to make this Southeast Asian region a peaceful, prosperous and dynamic region," he told the plenary session, which was also attended by leaders of neighboring countries.

Australian Prime Minister Minister Kevin Rudd, Singaporean Prime Minister Lee Hsien Loong, Malaysian Prime Minister Najib Razak, Brunei Sultan Hassanal Bolkiah and East Timor Prime President Jose Ramos Horta attended Yudhoyono's inauguration.

Yudhoyono also said that Indonesia would continue to play its role in the United Nations, especially to help the world achieve Millennium Development Goals and create "harmony among civilization."

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SBY: Indonesia Has 'A Million Friends and Zero Enemies'

Yudhoyono promises inclusive, high economic growth

Global dignitaries to join SBY’s swearing in

Indonesia leader starts new term


Monday, October 19, 2009

Obama to send delegation to attend Yudhoyono's inauguration

Adianto P. Simamora, The Jakarta Post, Jakarta | Mon, 10/19/2009 11:57 AM

U.S President Barack Obama would send a special delegation to Jakarta to attend the inauguration of President Susilo Bambang Yudhoyono on Tuesday.

Obama's delegation would be led by Lisa P. Jackson, Administrator of Environmental Protection Agency (EPA).

The press statement said that members of the presidential delegation were U.S. Ambassador to Indonesia, Cameron Hume and David N. Merrill, President of the United States-Indonesia Society.

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Saturday, October 17, 2009

SBY briefs 16 ministerial candidates

Erwida Maulia, The Jakarta Post, Cikeas, West Java | Sun, 10/18/2009 10:30 AM

President Susilo Bambang Yudhoyono briefed 16 politicians and professionals believed to be part of his next Cabinet lineup at his private residence here on Saturday.

The 16 politicians and professionals who came from the President’s party coalition and his outgoing first Cabinet, showed up one by one to undergo “a fit-and-proper test” directly conducted by the President and vice-president-elect Boediono.

Former chief commander of the Indonesian Military (TNI) Marshall (ret.) Djoko Suyanto was the first man who emerged to undergo the formalities and after that came Hatta Radjasa and Agung Laksono.

Based on their own statements to journalists covering the event, Djoko was believed to be been appointed as coordinating minister for political, security and law affairs, Hatta, outgoing minister/state secretary and close aide of Yudhoyono, was expected to be appointed as coordinating minister for the economy while Agung Laksono, deputy chairman of the Golkar Party and former House speaker, was believed to be appointed as coordinating minister for people’s welfare.

None of the three could say clearly that they had been appointed to hold these top positions, saying it was Yudhoyono’s prerogative to pick his ministers and he was scheduled to announce all 34 members of the Cabinet on Oct. 21, a day after his own inauguration for his second term.

However, they gave some hints to journalists.

“They asked me to join the government, especially in the field of people’s welfare,” Agung told journalists after a meeting and the briefing with the President and Boediono.

“They expect me to, among others, coordinate effectively and synergize with other institutions, to improve the government’s performance and rapidly reduce the poverty rate... I’ve declared my readiness to cooperate,” he added, declining to confirm his would-be post in the next Cabinet.

Similarly, Hatta admitted that he was appointed as an economic minister, though he refused to confirm whether he would be the coordinator.

“That’s the President’s role. I can’t tell you what [position], but surely it is in the field of the economy,” he told journalists.

Despite the term “fit-and-proper test” used by the President for the Saturday’s activity at his place, it appeared that no ministerial candidates underwent any sort of formal test.

Djoko said that after the President asked of his readiness to assist in the government, the latter briefed him over the “crucial points” concerning his “heavy tasks” in the five years ahead.

“Lastly, I signed the integrity pact and performance contract, which we as his assistants must adhere to between 2009 and 2014,” Djoko said.

Yudhoyono said earlier that before being entitled to a post in the Cabinet, the ministerial candidates would be required to sign the two documents, which outlined the targets each minister must achieve during their five-year term.

The candidates coming to his residence on Saturday all signed the documents, meaning they will only have to undergo medical check-ups on the following day before being officially named as Cabinet ministers.

The remaining 18 candidates will meet the President on Sunday and undergo medical check-ups on Monday.

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I'll see you again

The Jakarta Post | Sat, 10/17/2009 8:22 PM


I’ll see you again: Trade Minister Mari Elka Pangestu waves to reporters as she leaves president-elect Susilo Bambang Yudhoyono’s house in Cikeas, West Java. Yudhoyono summoned Marie on Saturday to offer her another term as a minister. -- JP/Wendra Ajistyatama


Not easy to become ministers: SBY aides


Transportation revitalization awaits Freddy

Another PKS member to helm agriculture ministry

Gorontalo Governor ready to chief maritime affairs, fisheries ministry

Purnomo: From mining to defense

Marty gets fast track to foreign affairs ministerial post

Gita to take care of investment flows

Nila Moeloek interviewed for health minister

Patrialis Akbar interviewed for ministerial post

Agum's wife to hold women empowerment ministerial post

Suharna asked to support economic development with technology

Djoko Kirmanto to retain public works minister post

Hidayat to take industry minister post

Darwin to head capital investment board

Jero Wacik to lead culture and tourism ministry

Muhaimin told to develop regions

Muhammad Nuh entrusted to develop culture

Tifatul assigned to develop information technology

Sutanto, Tifatul turn up for interview

Andi Mallarangeng assigned to develop youth potential

Marie to retain trade minister post

Sri Mulyani to maintain finance minister post

Agung ready to take chief welfare minister job

Hatta to take economics minister post

Sudi offered state secretary post

Coordinating minister candidates arrive for test

Yudhoyono to interview ministerial candidates


Only a few ministers to stay: Yudhoyono

The Jakarta Post, Jakarta | Fri, 10/16/2009 5:32 PM

Farewell gathering: President-elect Susilo Bambang Yudhoyono (center), accompanied by outgoing vice president Jusuf Kalla, bids farewell to outgoing Cabinet ministers at the state palace on Friday. (Antara/Widodo S. JusufAntara/Widodo S. Jusuf.)

President-elect Susilo Bambang Yudhoyono confirmed on Friday only a few of the current Cabinet ministers would serve for another five-year term.

“Only a small number of them will continue their term in office and join the second United Indonesia Cabinet. Therefore, I thank them,” Yudhoyono said during a farewell party for Cabinet ministers at the State Palace.

Yudhoyono would not go into details about who among the current ministers will assist him in his second term in office.

A number of ministers, including Finance Minister Sri Mulyani Indrawati, Trade Minister Marie Elka Pangestu and State Secretary Hatta Radjasa, have been widely touted to extend their terms as Cabinet ministers.

Yudhoyono started calling his ministerial candidates on Thursday evening and will interview them and require them to undergo a medical checkup. The new Cabinet lineup will be announced on Wednesday, a day after Yudhoyono’s inauguration as the president for 2009-2014 period.

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SBY bids adieu to aides, keeps a few

Outgoing Indonesian Ministers Leave Legacy of Disappointment



Thursday, October 15, 2009

RI economy heads towards full recovery

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 10/14/2009 1:33 PM

The economy grew at a faster pace in the third quarter this year from a quarter earlier, indicating the economy is heading for a full recovery after a slowdown triggered by the global economic downturn, a minister says.

Finance Minister Sri Mulyani Indrawati said Tuesday the economy was estimated to have grown by between 4.1 percent and 4.3 percent during July and September from a year earlier, supported by a recovery in investment and exports.

"Exports in the third quarter were still in the negative zone, but lower. If exports reached negative 19 percent sometime ago, they might reach about negative 10 percent *in the third quarter*," she said, adding investment might slightly improve although it remained slow.

"Private consumption, which accounts for about 60 percent of the economy, remained stable in the third quarter, she said.

Exports in August had shown signs of recovery as they rose 8.89 percent from a month earlier, despite still suffering a 15.41 percent decline on a year-on-year basis, according to the Central Statistics Agency (BPS).August's exports reached US$10.55 billion, surpassing $10 billion for the first time since October last year, as Indonesia's major trading partners showed signs of economic recovery.

The economy grew by 4 percent in the second quarter from a year earlier, supported by still robust private consumption and stronger government spending, bringing first-half growth up to 4.2 percent. The GDP growth in the second quarter has not been reported by the agency.

Mulyani expected the economy would accelerate to 4.5 percent growth in the fourth quarter of 2009, resulting in full-year growth of 4.3 percent. An acceleration of growth in the third and fourth quarters of this year will establish the foundations for even higher growth next year, with the government aiming to post 5.5 percent in 2010.

The main themes for economic growth next year will center on poverty reduction, job creation and infrastructure, Mulyani said.

The government and the central bank will also strive to maintain inflation at 5 percent, as high inflation would hurt people's purchasing power, which is the economy's main growth driver, she added.

Economists Purbaya Yudhi Sadewa and Faisal Basri estimated the economy would expand by 5.8-5.9 percent next year if the government improved infrastructure, including roads, ports and electricity, to attract investment in the manufacturing sector, which would help reduce poverty and unemployment as labor working in the formal sector would have more income-certainty.

Also on Tuesday, Japanese Finance Minister Hirohisa Fujii visited Indonesia to talk about bilateral relationships.

Mulyani said, citing Fujii's words, another five-year term for President Susilo Bambang Yudhoyono would create consistent policies and conditions, which would lead to a stable investment climate.

Japan also wants to develop a stronger partnership with ASEAN, as well as South Korea and China, to create a strong East Asia, she added.


Wednesday, October 14, 2009

Japan to strengthen ties with ASEAN, boost investment in Indonesia

www.chinaview.cn, Mu Xuequan, 2009-10-13 23:14:55

JAKARTA, Oct. 13 (Xinhua) -- Japan would strengthen its relation with ASEAN and increase investment in Indonesia, Indonesian Foreign Minister Hassan Wirajuda quoted Japanese Foreign Minister Katsuya Okada as saying on Tuesday evening here.

The Indonesian foreign minister told a press conference, after a meeting between Indonesian President Susilo Bambang Yudhyono and the Japanese foreign minister at the State Palace, that Japan would strength ties with the Association of Southeast Asian Nations (ASEAN) with the help of Indonesia.

"Japanese foreign minister sees the relation with ASEAN in recent years has weakened, (so that) Japan wants to step up Japan-ASEAN ties through the help of Indonesia, which is considered as a leader of ASEAN," Wirajuda said.

He said the new government of Japan would pay more attention to Asia, especially East Asia, toward the establishment of East Asia community.

"We welcome the plan to strengthen the ties," said Wirajuda.

On investment, Japan pledged to raise investment in Indonesia following the decline of investment in recent years, he said.

"The new government of Japan promises to invest a larger sum of funds compared to those in the previous years," said Wirajuda. But, the figure of the investment was not mentioned.

President Susilo has promised to continue efforts and policies, supporting favorable investment climate during his second term.

Okada is scheduled to visit Indonesia's quake-affected areas of West Sumatra province on Wednesday to asses what kind of assistance Japan may give further before ending his two-day visit in Indonesia.


Tuesday, October 13, 2009

RI economy grew 4.3 percent in Q3

Aditya Suharmoko, The Jakarta Post, Jakarta | Tue, 10/13/2009 2:25 PM

Indonesia's economy grew by between 4.1 percent and 4.3 percent in the third quarter this year from a year earlier, Finance Minister Sri Mulyani Indrawati said Tuesday.

The economy is expected to accelerate to 4.5 percent on a year-on-year basis in the last quarter of 2009, she said.

The government aims to have a 4.3 percent growth throughout 2009. While the figure is lower than the 6.1 percent growth booked last year, the positive growth is outstanding as most countries score a negative growth this year.

Monday, October 12, 2009

Better relief efforts in Indonesia this time round

Channel News Asia, By Zul Othman, TODAY | Posted: 12 October 2009


US Air Force personnel and US Marines unload relief supplies for remote areas of west Sumatra, Indonesia.

PADANG: After several natural disasters in recent years in Indonesia, the local authorities and the military were this time given the strongest message yet by President Susilo Bambang Yudhoyono to do better in leading recovery efforts – and it has begun to show.

Since the West Sumatran earthquake struck on Sept 30, the Governor's office in Padang has built emergency schools and sent food to needy families, including over 6,000 tonnes of rice as of Friday.

Their efforts have received praise from the United Nations Disaster Assessment and Coordination (UNDAC).

Team leader Winston Chang said that "all systems (were) working well with no obstacles on the field ... good cooperation on the field with various agencies and institutions".

The situation was slightly different earlier last week, when Mr Yudhoyono said he was "not pleased if governors report on damaged infrastructures that they need some hundred billions of rupiah ... what I want to know is the ongoing emergency steps", as reported by Indonesian daily Kompas on Tuesday.

Given the "geological risks" Indonesia faces, the President added that "the military should keep building effective capacity with high alertness", so they can respond quicker.

One foreign aide worker noted how the Indonesian army had arrived in the quake-hit region just as the Singapore Civil Defence Force was due to fly in on Oct 1. In the end, the 42-man SCDF rescue team flew in the next day, as the local government had not been ready to receive them earlier, Singapore's Foreign Affairs Ministry had said.

'We'll never refuse help'

In an interview with this reporter, Padang governor Gamawan Fauzi said: "We will never refuse help from the outside – be it in health supplies, rescue or food – but we must show that we have the ability to do it by ourselves also," he said.

This is not some "misplaced sense of patriotism" at work, either, said University of Indonesia international relations lecturer Sayed Fazan.

"It's not bad to have locals in charge because we need the element of local knowledge, especially when access to the most remote of areas is concerned."

While UNDAC is directing relief efforts on the ground, officials from non-government organisations – some 184 NGOs have set up base at the Governor's residence – said the government has been "more than helpful" in their aid efforts.

"We've had quite a lot of help from the government here in terms of organising flights and making sure we reach as many people as possible," said Mr Andy Holland of England's ShelterBox, which has been distributing tents and food to the people in Pariaman.

But the going is bound to be slow, with the inaccessibility of rural locations made worse by landslides brought on by the 7.6-magnitude earthquake, said Mr Mohd Tahar Jumaat from Singapore's Mercy Relief.

"Although the Indonesian government and other agencies have flown in much of the aid needed, the isolated areas are not getting the supplies and this will take time," he said.

The natives, it seems, are getting restless. At the most badly-affected areas in Pariaman – 50km away from Kota Padang – villagers lined the roads with boxes, hoping passing vehicles will fill their boxes with enough money for their next meal.

Farmer Akmal, 49, whose family of five now live in a tent pitched by the roadside, expressed a lack of confidence in some local officials. "We've not been getting any help, so we hope that those giving us help do it directly and not through the regional government. We want to rebuild our home, but we have no money," he said.

Despite Mr Yudhoyono's popularity, locals remember how some provincial officials were accused of misappropriating aid after the Aceh tsunami in 2004 and the Nias Island earthquake in 2005.

"The people do expect the government to be professional and aid to be delivered on time," said University of Indonesia's Mr Sayed.

But the drive to have Indonesians lead recovery efforts seems to have gone unnoticed among the locals. At Kota Bangkor, located on the outskirts of Pariaman, one villager said she has seen more foreigners come to their help.

This is simply not true, countered Padang governor, Mr Gamawan: "We have a lot of locals – 1,600 local groups, in fact – that have been mobilised to the outskirts to give help. We value foreign help, but we cannot let it be said our locals don't want to help our own people."

Related Article:

Earthquake Preparation Pays off for Indonesian Village


Sunday, October 11, 2009

Govt asked not to tender foreign-funded school reconstruction projects

The Jakarta Post, Jakarta | Sat, 10/10/2009 8:20 PM

Padang administration has asked the central government to issue a special regulation to allow foreign-funded reconstruction of school buildings in the quake-hit West Sumatra capital city without tender.

Head of Padang education agency M. Nur Amin said Saturday the exemption policy would accelerate the rebuilding of the school buildings.

“Direct appointments for school reconstruction projects funded by foreign donors are needed as foreign assistance is subject to time limitations in Indonesia,” Amin told Antara state news agency.

He said a number of international donors had pledged to help rebuild school buildings which were destroyed by the 7.6-magnitude quake on Sept. 30. They included the United States, French, Australian, Malaysian and Singapore governments and Unicef.

The foreign governments and institutions have also sent volunteers to clean up the debris of the school buildings.

Malaysia, for example, has expressed a commitment to rebuilding SD 15 state elementary school near the heroes’ cemetery, the Singaporean army to reconstruct SD 52 state elementary school and the US government to rebuild an elementary school in Jambak village.

“Many foreign donors wish to help us rebuild the schools. Skipping the tender process will speed up the schools’ reconstruction,” Amin said.

According to the 2003 presidential decree, procurement of goods and services worth Rp 50 billion (US$5.3 million) must go out to tender.


Thursday, October 08, 2009

With Overdue Help, East Can Rise Again

Workers haul bags of cement at Sunda Kelapa port in north Jakarta on Tuesday. The Indonesian economy is estimated to have expanded 4.3 percent this year. (Photo: Bagus Indahono, EPA)

It is hard to imagine that more than two centuries ago the Dutch traded Manhattan to the British for Ambon, which like many of the islands that would eventually become part of eastern Indonesia was thriving on the nutmeg and clove trade while Manhattan was a barren piece of land.

How times have changed. Eastern Indonesia is today virtually cut off from the world while Manhattan is arguably the center of the financial world. Nusa Tenggara, Maluku and Papua, which make up eastern Indonesia, are among the most backward regions of the country. According to a 2007 World Bank report, this region has far lower levels of access and assets compared to Java-Bali or even Sumatra and Kalimantan. It also suffers from lower returns on education and far higher levels of informal employment. Its remoteness translates into lower levels of access to basic services and infrastructure.

In a nutshell, this means that eastern Indonesia has been neglected by the central government for much of the country’s history. Its people suffer silently, devoid of political and economic power despite the rich potential the region offers in terms of tourism and the marine industry.

It is thus heartening to note that Vice President-elect Boediono is on a swing through the region to explore new development models and study viable infrastructure projects. The noted economist visited Ambon before flying on to Papua. Accompanied by transportation experts, he is on a fact-finding mission to develop this forgotten part of the country.

So far the projects on the table include ports, airports, roads and highways. The vice president-elect should add schools, power stations and tourism infrastructure to create both human capital and greater economic opportunities for residents.

Better infrastructure, more schools and hospitals will attract private investment into the region. Entrepreneurs will risk capital if they know new opportunities might open up. This will create jobs and raise the overall standard of living for people who currently survive primarily on agriculture.

Improving economic opportunities will translate into narrowing the income and poverty gap between eastern Indonesia and the rest of the country. It will also expand the national economy as new areas open up and more wealth is created. The people of eastern Indonesia deserve the opportunity to improve their lives. They have been neglected for too long, but with a growing economy they too should receive a share of the economic pie.

Regional development disparities are a salient feature of poverty in Indonesia. The people of eastern Indonesia may not be starving but neither do they have access to the services that make up modern life.

Economic growth has been and will continue to be fundamental to reducing poverty in Indonesia, and no matter where citizens live in this vast country, if given the right opportunities they will strive to improve their lives.

Related Articles:

Mandiri hosts Papua investment day

Investors in Papua should get tax holiday : Kadin

VP-elect off to early start on eastern RI job


Obama to make November Asia debut

BBC News

US President Barack Obama will make his debut Asian tour next month - to Japan, Singapore, China and South Korea.

He is expected to focus on economic issues, trade and global security.

He will attend the Asia Pacific Economic Cooperation (APEC) summit in Singapore, which may include talks with Burma's military leaders.

But the trip will not include an expected stop in Indonesia, where he spent four childhood years, a period he has often referred to fondly.

"The president... will be travelling to Asia next month to strengthen our cooperation with this vital part of the world on a range of issues of mutual interest," White House spokesman Robert Gibbs said.

China counterweight

At APEC, Mr Obama will hold what the White House billed as the first formal talks between a US leader and all 10 Association of Southeast Asian Nations (Asean) leaders - which could include a rare encounter with Burma's military rulers.

In China, he will touch down in Shanghai as well as Beijing.

Mr Obama's foreign policy has concentrated on diplomatic engagement so far and analysts expect him to focus on encouraging North Korea to return to negotiations on ending its nuclear programme.

His administration has also changed policy towards Burma, saying it will pursue talks with the reclusive junta while maintaining sanctions to try to bring about democratic change.

Washington also sees Asean as a possible counterweight to rising Chinese power throughout Southeast Asia.

In July the US signed a friendship pact with the group amid claims the previous Bush administration had neglected it.

As for expectations of an Indonesia visit, the White House spokesman Mr Gibbs said that Mr Obama had met Indonesian President Susilo Bambang Yudhoyono at the G20 summit in Pittsburgh last month, and the two leaders agreed that it made most sense for the visit to take place next year.

"They agreed on the importance of having a visit that would showcase the importance of a growing US-Indonesian bilateral relations," Mr Gibbs said.

Mr Obama and his mother moved from Hawaii to Jakarta, Indonesia, when he was six years old. They left to return to the United States when he was 10.


Wednesday, October 07, 2009

RI economy may expand 5.9 percent

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 10/07/2009 3:10 PM

Indonesia's economy may expand more than 5.9 percent next year if the government pushes efforts to support the tradable sector that produces goods, economist Faisal Basri said Wednesday.

"The economy may expand 5.9 percent without the government doing anything (significant). It can be more if the government wants to push more efforts," he said after the launching of his book titled "Lanskap Ekonomi Indonesia" (The Landscape of Indonesian Economy).

Faisal said the sector providing services now had faster growth compared to the sector producing goods. For example, the growth of telecommunications sector has outpaced the manufacturing sector.

A faster growth rate in the manufacturing sector will help accelerate the decline of unemployment and poverty rates, he added.

"It's impossible to become a developed country without a strong manufacturing sector."

Faisal said the unemployment and poverty rates had continued to decline but at a slow pace, an issue that the government should address.