BPK to ask KPK to investigate irregularities in Health Ministry

The Jakarta Post, Jakarta | Wed, 06/30/2010 8:44 PM

The Supreme Audit Agency (BPK) said Wednesday it would ask the Corruption Eradication Commission (KPK) to investigate irregularities in the Health Ministry financial reports.

BPK member Rizal Djalil said that the Health Ministry had ignored BPK findings about its poor financial reports since 2006.

"We can't let the Ministry repeatedly ignore us. This investigation is important," he said as quoted by kompas.com.

World Bank: RI economy to continue growing

Antara News, Tuesday, June 29, 2010 21:10 WIB

Makassar (ANTARA News) - The World Bank predicts Indonesia`s economy will continue to grow although economic reports in the first quarter showed uncertainty in the world market.

World Bank senior economist Enrique Blanco Armas said here on Tuesday the country`s economy is expected to rise slowly in 2011 due to domestic demand.

New upheavals in the world financial condition and uncertainty with regard to economic views that are developing have increased risks to weaken short-term forecasts.

He said Indonesia`s economy would reach above seven percent in the long term if the ambitious reform agenda put in the 2010-2014 national development planning was met.

He said imports would increase surpassing exports while inflation would also increase in line with higher lending rates and commodity prices.

He said the government`s income would be higher and deficit could be smaller than predicted before.

He said the World Bank records Indonesia`s economy would grow from 5.7 percent in the first quarter to 6.5 percent in the thrid quarter.

Hu Jintao Meets with Indonesian President Susilo

Ministry of Foreign Affairs of China, 2010/06/27

On June 26, 2010, Chinese President Hu Jintao met with Indonesian President Susilo Bambang Yudhoyono in Toronto.

Hu said Chinese-Indonesian relations had shown a sound momentum of development this year. At the start of the year, the two sides signed an action plan for strategic partnership, pointing out the direction for pragmatic cooperation in the next five years. Cooperation in the sectors of economy and trade, culture and education had witnessed smooth development. The two sides also reached an important consensus on deepening defense cooperation and maintained good coordination and cooperation on international and regional affairs within the frameworks of the United Nations and G20, Hu said.

Hu said China attached much importance to boosting strategic partnership with Indonesia. China is ready to take the opportunity of the 60th anniversary of the establishment of diplomatic ties to deepen pragmatic cooperation in all areas and continuously open up new aspects for China-Indonesia strategic partnership. The Chinese side proposed the two sides maintain high-level exchanges, welcoming Susilo to visit China to attend the Shanghai World Expo and China-ASEAN Expo, Hu said. Both sides should also expand and deepen economic and trade cooperation. China was also willing to enlarge investment in Indonesia and supported Chinese companies to take part in Indonesia's infrastructure construction and other major projects, he said. China encourages its tourists to travel in Indonesia. The two sides should work together to hold activities marking the Chinese-Indonesian friendship year to strengthen the traditional friendship between the two peoples, Hu said. He said the two countries should also enhance coordination and cooperation in international and regional affairs in a bid to establish a more just and reasonable international political and economic order.

On China's relations with ASEAN, Hu said China was ready to see a more united, stable and prosperous ASEAN and would continue to support its efforts towards integration and its leading role in East Asia cooperation. Hailing the establishment of the China-ASEAN Free Trade Area (CAFTA) as an important milestone in the history of bilateral ties, Hu said China would join hands with ASEAN in maintaining and building the CAFTA, step up efforts to advance the interconnection and networking of infrastructures, deepen cooperation in financial fields and expand social and cultural exchanges in a bid to push China-ASEAN relations to a new level, Hu said.

Hu pointed out that China is ready to work with Indonesia to push for positive and pragmatic outcomes at the G20 Toronto Summit.

Susilo said he was delighted to meet President Hu again during the Toronto Summit. The Chinese-Indonesian strategic partnership was developing well with closer political, economic and security cooperation and deepening traditional friendship between both peoples. Indonesia sincerely hoped to strengthen cooperation with China, a friend and partner of Indonesia, to lift the level of the bilateral relations. He expressed full agreement to President Hu’s proposals on the development of bilateral ties, saying that Indonesia is ready to maintain high-level contacts with China and welcomes Chinese enterprises to invest in infrastructure and tourism in Indonesia. He also hoped both sides will further expand bilateral trade and jointly hold activities to mark the 60th anniversary of the establishment of diplomatic ties.

Susilo said China is playing a greater role in Asia and the world at large and Indonesia is ready to enhance cooperation with China in international and regional issues to maintain common interests of developing countries. The relations between China and the ASEAN are very important and both sides should guarantee the implementation of the CAFTA, Susilo said, adding that Indonesia hoped China could keep its important role in G20 to contribute to the Asian and global economic growth.

Wang Qishan, Ling Jihua, Wang Huning, Dai Bingguo and other officials attended the meeting.

KPK investigates corruption within energy ministry

The Jakarta Post, Jakarta | Tue, 06/29/2010 3:31 PM

The Corruption Eradication Commission (KPK) is investigating a graft case involving officials at the Energy and Mineral Resources Ministry.

“The indication [of graft] is clear,” deputy KPK chief M. Jasin said on the sidelines of a seminar on crimes in the forestry sector Tuesday.

Jasin refused to go into details but said the alleged corruption took place between 2007 and 2009.

“Johan Budi will announce our move to probe into the graft case as soon as possible,” Jasin told Antara news agency, referring to the KPK spokesman.

The KPK has also launched a probe into alleged bribery involving senior officials at the ministry and the state oil and gas company Pertamina.

The probe followed a British court’s verdict, which fined British company Innospec Ltd 8.3 million pounds (US$12.6 million) after finding it guilty of bribing a former director general for oil and gas and Pertamina’s deputy president director between 2000 and 2006 to help sell its tetraethyl lead used to boost the octane value of gasoline in Indonesia.

The KPK has banned six officials from traveling overseas in connection with the bribery case.

Related Article:

Director general for electricity named graft suspect

Constitutional Court chief sued over blank checks

The Jakarta Post, Jakarta | Tue, 06/29/2010 3:39 PM

A businessman has sued Constitutional Court chief Moh. Mahfud M.D. and executives of the court’s cooperative and demanded Rp 4.2 billion (US$461,000) in damages for issuing blank checks to pay several procurement contracts awarded to him.

Gusmawati Azwar, a lawyer representing businessman Tamrin Sianipar, said Mahfud was dragged into the civil case as the cooperative fell under the auspice of the Constitutional Court.

“The cooperative is facilitated by the Constitutional Court. The court chief must be held responsible for any wrong doing in his office,” Gusmawati said as quoted by Antara

The case is being heard at the Central Jakarta District Court. After opening the trial Wednesday last week, the judges adjourned the hearing until Thursday to enable the conflicting parties to consider an out-of-court settlement through mediation.

The case centers on Tamrin’s failure to cash three checks worth Rp 188.1 million, Rp 225.5 million and Rp 3.79 billion as payment of procurement of work jackets, the repainting of the Constitutional Court building and renovation of official residences in Bekasi, West Java, last year.

Tamrin said he had invested Rp 3.84 billion and was promised a 10 percent margin by cooperative head Hendani. A series of negotiations to solve the dispute failed and Hendani reportedly had gone missing since April of this year, prompting Tamrin to file a lawsuit.

Yudhoyono and Obama meets in G20 summit

Antara News, Monday, June 28, 2010 20:24 WIB

Jakarta (ANTARA News) - Indonesian President Susilo Bambang Yudhoyono meets the US President Barack Obama to discuss comprehensive partnership on the sidelines of the G20 summit in Toronto, Canada.

The Comprehensive Partnership is a long-term commitment of both presidents to broaden, deepen and elevate bilateral relations between the United States and Indonesia, according to a written information from the US embassy to Indonesia in Jakarta, Monday.

Both countries have made significant progress since the work began on the Partnership in mid-2009, and together launched a Peace Corps program that will promote understanding between the Indonesian and American people.

The two governments have signed agreements on Science and Technology Cooperation and Overseas Private Investment Corporation, which will underpin deepened engagement by the two countries in two of the most dynamic sectors of relationship.

"Working within the G20, we have been able to stabilize the world economy. I has just heard from the President the progress that`s been made in getting back to pre-crisis levels in Indonesia with respect to economic growth and employment, and inflation.

But obviously, we are still facing many challenges that still have deal with," said President Obama in his meeting remarks.

In the occasion, President Obama also expressed the two particularly interested areas in working together, namely climate change and education.

On climate change issues the US is helping create a climate change study center in Indonesia that can provide enormous support not only for making studies but also in the region and around the world.

Some 160 million US dollars are planned to be placed in the education sector under joint programs that can enhance cooperation on youth education, which obviously become one of the priorities in terms of future development, President Obama said.

"So I just want to once again thank the President for his graciousness, cooperation, and reaffirming the great friendship between our two countries," he said.

Previously, several official US officers visited Indonesia to realize the world`s second and third largest democratic vision.

"Indonesia and America are entering and developing a comprehensive partnership which is elevating and transforming our relations based on equal partnership and aimed to meet the challenges of the 21st century", said Indonesian President Susilo Bambang Yudhoyono on the same occasion.

President Yudhoyono also mentioned about the challenges both countries are facing namely in promoting peace, reforming the world economy, addressing climate change, as well as promoting harmony among civilizations.

Besides, the challenge facing the relations facing both nations such stable, dynamic, and strong relations that is good for the region and the world.

"I appreciate the leadership of President Barack Obama and I thank him for his friendship and goodwill toward Indonesia," President Yudhoyono said.

‘Ineffective’ Tax Tribunal Finally Set for Shake-Up in Wake of Massive Scandals

Jakarta Globe, Nivell Rayda, June 26, 2010 

After months of shocking reports exposing tax scandals, the Ministry of Justice and Human Rights on Friday finally announced plans to amend the “ineffective” 2002 Law on Taxation Tribunal, seen as the Achilles heel of tax collection.

“The current Tax Tribunal Law has not been effective,” Justice Minister Patrialis Akbar said after meeting the Judicial Mafia Eradication Task Force.

He said the law had several loopholes that allowed for tax manipulation and evasion.

Mas Achmad Santosa, a member of the presidentially appointed task force, said the problems included the tribunal’s confusing structure.

The body, which handles disputes from private firms and individuals over their tax obligations, is structurally under the Finance Ministry but administratively under the Supreme Court.

“This creates confusion over which institution has the jurisdiction to supervise the tribunal,” Mas Achmad said. “We want the government to sort out this conflict of authority so it is clear who has the power to sanction rouge judges.”

There is also the matter of conflict of interest, as the tribunal is housed in the ministry building and its members include officials from the ministry as well as the Tax Directorate General.

The task force has said that more than 60 percent of cases that go before the tax tribunal are decided in favor of the taxpayer.

Among the many anomalies the task force noted was that in more than half of the cases, the tribunal failed to bring tax officials in charge of the problematic cases to the stand.

Deputy Attorney General Dharmono said the investigation process of tax evasion cases was also problematic.

The Tax Directorate General has the authority to conduct the preliminary probe of tax evasion cases, while the National Police handles the later stage of the investigation.

But there is no clear regulation that dictates the procedure, leading to much confusion.

“Tax collection is far from ideal. We see that there are many areas which are prone to corruption and manipulation,” Dharmono said. “There is even no standard operating procedures with clear means to measure the performance of the tax investigators.”

The tax tribunal came under intense public scrutiny after the arrest of Gayus Tambunan, the rogue tax official who was one of the many case brokers operating within the Finance Ministry to win clients favorable judgments at the tribunal.

Several tax officials have been named as suspects for collaborating with Gayus, the latest being one of his superiors, identified as HN, and Maruli Pandopotan Manurung, the suspended acting head of the tax appeal department.

Teten Masduki, secretary general of Transparency International Indonesia said the tax office must restore its credibility by focusing on major tax evaders. “The ball is now in the Tax Directorate General’s hands. People will judge whether they are committed to reform by prosecuting big companies suspected of tax evasion,” he said.

Former justice minister named suspect in corruption case

Antara News, Friday, June 25, 2010 22:21 WIB

Jakarta (ANTARA News) - Former justice and human rights minister Yusril Ihza Mahendra has been named a suspect in a corruption case that happened during his tenure, the Attorney Gneral`s Office (AGO) said.

He was named suspect along with Hartono Tanoesudibyo, a former stakeholder in PT Sarana Rekatama Dinamika.

"The order to investigate Hartono and Yusril Ihza Mahendra as suspects were issued on Thursday (June 24, 2010)," AGO spokesman Didik Darmanto said here on Friday evening.

The AGO had earlier named five suspects in the corruption case affecting the Legal Entity Administration System at the justice and human rights ministry.

Three of the suspects have already been convicted but they are now appealing the verdict with the Supreme Court. They are Romli Atmasasmita and Syamduddin Manan Sinaga (former director general of general legal administration) and Yohanes Woworuntu (former director of PT SRD).

The AGO spokesman said the two newly-named suspects would be summoned for questioning as suspects on July 1.

"With regard to Hartono, the AGO has already asked the immigration office to bar him from overseas travel," he said.

Vice Attorney General Darmono confirmed that the order to investigate Hartono and Yusril had been signed by the junior attorney general for special crimes.

Yusril Ihza Mahendra, left, shows his frustration as his questioning at Attorney General’s Office came to a dramatic end on Thursday when the former justice minister walked out on prosecutors. (Antara Photo/Rosa Panggabean)

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Lawmakers Setting Aside Time to Legislate

Jakarta Globe, Anita Rachman & Armando Siahaan, June 25, 2010

The House of Representatives says it is setting aside two days of the working week to deliberate legislation, having failed to pass a single bill into law since their term began last October. (Antara Photo)

Marzuki Alie, speaker of the House of Representatives, said on Thursday that two days of the working week would be devoted to deliberating legislation once the body returns to session on July 19 after a monthlong recess.

“Wednesday and Thursday will be focused on drafting out deliberations over legislation,” Marzuki said. “This is our strategy to cover all the House’s functions.”

Having failed to pass a single bill into law since their term began in October, the same month President Susilo Bambang Yudhoyono embarked on his second stint in office, the House is hoping to pass at least 17 priority bills by the end of this year. Initially they had a goal of approving 70 bills, with 36 drafted by the House and the remainder coming from the government.

“It has become our concern that all bills, at least those initiated by the House, must be finished this year. I am pretty sure that by the end of 2010 all those bills will be passed,” Marzuki said.

Ignatius Mulyono, chairman of the House Legislation Body, pointed out late last month that with lawmakers spending far more time on monitoring the government than legislating, the House would “have to make do” with passing just 17 bills into law this year.

Ignatius also signaled his frustration on how it was very difficult “to tell lawmakers to do their jobs of legislating these days.”

The Democratic Party lawmaker added that through the end of May, the House had forwarded just six bills to the plenary screening sessions, including a long-awaited protocol bill.

House Deputy Speaker Pramono Anung, from the Indonesian Democratic Party for Struggle (PDI-P), said that legislating would be more effective in the next sitting session, following the House recess.

“We realize and are aware that the process for us to legislate is not going very well. Hopefully with the next session, lawmakers do make use of these two days, Wednesday and Thursday, to work on legislating,” Pramono said, adding that it was time for lawmakers to start concentrating on actually making laws, as it was one of their three main responsibilities — to legislate, monitor the government and work on the budget.

“I believe that if we can pass 40 bills into law, it would be an extraordinary achievement,” Pramono said. “The special [two] days are needed because lawmakers need time to study content [of bills] by academics. And learning from previous experiences, sometimes there is an overlap of duties with both the House and regional legislative councils discussing the same bills.”

Pramono said that the overlap could be avoided through close discussion during the days set aside each week, adding that the time could also be used by members of each House commission to coordinate.

He added that the House would collaborate with the Ministry of Justice and Human Rights to complete all bills proposed by the government.

Ignatius welcomed the new policy.

“This is what we at the legislation body were waiting for. Without actually allocating time focused just for legislation, we would have great difficulty in achieving our year-end target,” he said on Thursday, adding that the House’s goal was to complete the drafting of the bills by the end of July.

In the upcoming plenary session, Ignatius hopes each commission can finalize at least two draft bills. He said he also hoped that all bodies in the House take the policy seriously, so that it can properly fulfil its responsibility to legislate.

President wants KPK to remain strong : Denny

Antara News, Thursday, June 24, 2010 14:06 WIB

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono wants the Corruption Eradication Commission (KPK) to remain a strong institution, according to his special adviser for legal affairs, Denny Indrayana.

"The president wants KPK to remain strong," Denny said in a discussion at the Indonesian Survey Institute (LSI) building in East Jakarta on Thursday.

Denny who is also secretary of the Judicial Mafia Eradication Task Force made the statement to deny allegations voiced by various parties that elements within the power elite were bent on weakening the KPK.

He also said the government had no intention whatsoever to reduce the present powers or authority of the Corruption Eradication Commission.

The government`s wish to keep KPK strong could be perceived from the fact that every time elements in society tried to get the Law on KPK reviewed by the Constitutional Court, the government always assigned one of its ministers to attend the court sessions to defend the law and have it preserved as it was, Denny said.

"When people tried to get the law on KPK amended, the government always did its best to maintain it just as it was," Denny said.

He said attempts to weaken the KPK happened among other things during the public debates on the formulation of the law on the Corruption Court (Tipikor) when certain parties proposed stripping the KPK of its wiretapping and prosecuting powers.

At the time, President Yudhoyono was clearly for letting the KPK retain its wiretapping and prosecuting powers, Denny said.

Respected Journalist Slaps Down Bakrie Award

Jakarta Globe, June 22, 2010

Goenawan Mohamad, second from right, pictured here in 2004 alongside Aburizal Bakrie, far left, accepting his Bakrie Award. The respected journalist is today returning the award and is expected to hold a press conference to explain his reasons for doing so.

One of Indonesia’s most respected journalists, Goenawan Mohamad, is holding a news conference this afternoon to explain why he is returning his Bakrie Award, awarded by non-profit think-tank the Freedom Institute in 2004.

The former chief editor of Tempo magazine is also returning the Rp 100 million ($11,077) prize money he was awarded by the institute, established by controversial businessman and politician Aburizal Bakrie.

The institute’s Web site says the annual awards, established in 2003, are presented to “distinguished countrymen and women for their extraordinary achievements in the social sciences and literature.”

On his Twitter account @gm_gm, Goenawan, popularly known as GM, wrote: “Thank you for the best wishes and awards. I always think the best award is to have genuine friends. And you all are!”

Goenawan will send a delegation to return the award to the institute on Tuesday and then hold a news conference at the Teater Utan Kayu in East Jakarta to explain the reasons for his actions.

The senior journalist is the first person to return the award though Jesuit priest Franz Magnis Suseno, a respected social and political analyst, declined the award in 2007 because of the ongoing Lapindo Mudflow disaster.

A number of internationally respected scientists blame the disaster on PT Lapindo, a company under the umbrella of the Bakrie Group, which is controlled by the family of Aburizal Bakrie, chairman of the Golkar Party.

The company, however, has refused to accept blame.

Bakrie has more recently been labeled an enemy of reform by ousted former Finance Minister Sri Mulyani Indrawati.

Goenawan Mohamad, in this file photo, said that he was returning a Bakrie Award he received in 2004, due to what he called Aburizal Bakrie's manipulation and "political drama."

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Former RI envoy to US suspect in graft case

The Jakarta Post, Jakarta | Tue, 06/22/2010 10:00 AM

The Corruption Eradication Commission (KPK) has named a former executive at the Foreign Ministry a suspect in an corruption case related to the renovation of the Indonesian Embassy building in Singapore in 2003.

The accused, identified only by his initial SP, is a former secretary-general at the ministry, KPK spokesman Johan Budi said Monday.

SP, Johan said, would be charged with articles of the 1999 Corruption Law.

The suspect allegedly embezzled up to US$175,000 from a budget allocated for the renovation of Embassy’s residential compound. The project’s value has been estimated at Rp 16.4 billion.

Previously, the KPK had approached SP for questioning as a witness in the case.

However, he failed to show up, saying he was busy with his ambassadorial duties.

The case has also implicated former Indonesian ambassador to Singapore Mochamad Slamet Hidayat, who was charged with corruption in August 2008.

Slamet, who held his post from 2003 to 2006, was sentenced to three years in prison after being found guilty of misappropriating S$280,000 (US$197,626) in the renovation project. 

Prosecutors in the case also accused him of bribing former Foreign Ministry secretary-general Sudjadnan Parnohadiningrat (who until November last year served as the Indonesian Ambassador to the United States) with US$200,000 in gifts.

SP’s alleged involvement in the case adds to the list of Indonesian envoys who have been implicated in corruption cases over the last few years.

In 2008, Rusdiharjo, the former Indonesian ambassador to Malaysia, was sentenced to two years in prison for charging illegal fees to Indonesian migrant workers applying for permits.

Rusdiharjo’s sentence was reduced to 18 months on appeal.

Hamid Awaluddin, currently the Indonesian envoy to Russia, has been implicated in alleged corruption in a passport project carried out by the Justice and Human Rights Ministry where he served as minister from 2005 to 2007.

Revenge and Personal Ambitions Poison Role of Law-Enforcement Agencies, Analysts Say

Jakarta Globe, Heru Andriyanto, June 20, 2010

Antasari Azhar said he was targeted in a murder case by law enforcement agencies because of his role as head of the Corruption Eradication Commission, or KPK. (Antara Photo)

Major law agencies appear to be used increasingly by their leaders to pursue personal interests, avenge rivals and protect their cronies while paying little heed to upholding justice, according to legal experts.

Revenge and attempts to protect troubled members of those agencies were overshadowing their real mission of fighting crime, experts said over the weekend.

They highlighted many controversial cases, from the murder trial of Antasari Azhar to the charges against two antigraft commissioners and the rise and fall of the National Police’s Comr. Gen. Susno Duadji.

“While this continues to happen, a graft suspect like Anggodo Widjojo could win a case against the Attorney General’s Office while sitting in his cell and force the court to order the trial of two antigraft officials,” said Andri Gunawan, secretary general of nongovernmental group Indonesian Judicial Watch Society (Mappi). “This is of course not what we expect from our judicial system.”

He said law agencies such as the National Police and the AGO were themselves prone to internal rivalries because senior officials tended to group with colleagues of the same graduation class or who came from the same region, noting that the inner circle at the AGO was dominated by officials from Central Java.

“They form small factions inside the agencies so that’s why they don’t appear as solid entities,” Andri told the Jakarta Globe. “Such a phenomenon is also true in the military, but they can manage the issue much better.”

There is a growing belief that law-enforcement agencies often bring charges against their own members or others out of vengeance and with the intention to show which agency is stronger.

Antasari said he was targeted in a murder case because of his role as head of the Corruption Eradication Commission (KPK).

He has said prosecutors eagerly pursued the death sentence in his trial because his first major achievement in the agency had been uncovering a humiliating bribery scandal at the AGO.

Antasari, now serving an 18-year jail term, was an AGO official for 25 years before taking the helm at the antigraft body.

“KPK at that time successfully uncovered major corruption cases involving government officials, lawmakers and law enforcement officials,” Antasari said in his Jan. 19 defense against the death sentence demand. “But why should someone’s life be sacrificed just to see the KPK rid of me?”

Susno, the former chief of detectives, was detained by police as a graft suspect not long after he implicated his colleagues in the controversial trial of tax official Gayus Tambunan, whom he said had paid billions of rupiah to law enforcers who fix the case.

Susno also openly accused two police generals of taking bribes from the taxman.

“Susno is the whistle blower and because of his information many law enforcers, including police, were implicated in the case. If he didn’t hit the police, would he become a suspect in another case? If the answer is no, then Susno’s arrest was nothing but a retaliatory measure,” said Muhammad Assegaf, a lawyer for both Susno and Antasari.

“As for Antasari, prosecutors sought the death sentence for him, while in many other murder cases they only recommend a jail sentence. I think you know the reason why.”

Susno earlier made news in September when he controversially slapped criminal charges against KPK deputy chairmen Chandra M Hamzah and Bibit Samad Rianto.

In an interview with a local magazine before the two became suspects, he compared the KPK-police rivalry as the battle between a gecko and crocodile, police being the latter, but he later denied having said so.

In an e-mail supposedly written by Susno circulated at that time, he described how he was offended by the KPK’s tough measures against a former police chief and that the commission was so powerful that everything it did was accepted by the public.

Susno neither denied nor confirmed writing the message.

When the Chandra-Bibit case fell apart following indications that police and prosecutors helped fabricate the case, Susno was removed from his post amid mounting public pressure and he later shocked police with his report about Gayus.

“It’s not the first time police have got tough on their own members deemed as not loyal. During the leadership of Bimantoro, he detained eight mid-ranking officers who had opposed his nomination for police chief by then president Gus Dur [Abdurrahman Wahid],” said Neta Pane, chairman of nongovernmental group Police Watch.

“They were detained for three months without trial when Bimantoro eventually won the top post.”

But Susno was the first three-star police general to become the target of “institutional revenge,” he said.

Low pay is often blamed as the main reason for corrupting prosecutors or policemen, but Amdri disagreed.

“If they were paid more, then people would just have to increase the bribe for their service,” he said, half-jokingly. “I agree they should increase the budget for police and the AGO to a reasonable level, but don’t just give a carrot while forgetting the stick.”

The AGO’s tough approach into the Antasari case, Susno’s anger at the KPK, police’s measures against Susno and the counterattack by the disappointed detective “might have constructed a pattern, but we need to remain fair in making the judgments,” said Andrianus Meliala, a criminal law expert from the University of Indonesia.

“We cannot build a theory based on a series of events that already happened, because it might prove wrong in future events. I still believe the country’s judiciary system is on the right track toward the supremacy of law.”

President relaxes with journalists at State Palace

Erwida Maulia, The Jakarta Post, Jakarta | Fri, 06/18/2010 9:03 AM

A walk in the park: President Susilo Bambang Yudhoyono (foreground, blue shirt) walks with journalists on a path in the grounds of Cipanas Palace in Cianjur, West Java, on Friday. Yudhoyono is dedicating most of his Friday to relaxing with journalists at the palace, located some 100 kilometers south of Jakarta, which has 26 hectares of botanical gardens, a swimming pool and a jogging track. Antara/Widodo S. Jusuf

President Susilo Bambang Yudhoyono is dedicating most of his Friday to relaxing with journalists at the State Palace in Cipanas, West Java.

After finishing a breakfast of chicken porridge in the palace gardens, accompanied by hundreds of journalists and staff members, Yudhoyono cheerfully performed a couple of songs before the attendees.

"Eat so that you're strong enough to do the walk. We'll see some beautiful scenery," Yudhoyono said to several breakfasting journalists before his performance.

He and the large group of staff and journalists are scheduled to take a 1.4-kilometer-long walk in the woods inside the palace complex before planting some trees – an activity he has recently made a hobby whenever he makes visits outside the capital.

His wife, first lady Ani Yudhoyono, sons Agus Harimurti and Edhie Baskoro Yudhoyono, daughter-in-law Annisa Pohan and granddaughter Almira Tunggadewi Yudhoyono were all present on Friday.

The President will take part in futsal and table tennis matches against journalists before having a dialog with them later in the afternoon.

President Susilo Bambang Yudhoyono breaking into song during a public relations exercise on Friday. Yudhoyono later told journalists that Indonesia needed to protect itself against the Internet and avoid being "crushed by the information technology frenzy."

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Officials on Trial to Get Boot: SBY

Jakarta Globe, Abe Silangit, June 17, 2010

The president has suggested that once governors and district heads were tried for graft, they should be promptly suspended and replaced.

Regional officials charged with corruption will be dealt with swiftly and decisively if President Susilo Bambang Yudhoyono has his way, the Ministry of Home Affairs said on Tuesday.

Minister Gamawan Fauzi said the president had suggested that once governors and district heads were tried for graft, they should be promptly suspended and replaced.

“How can regional leaders concentrate on their responsibilities to the people if they are busy dealing with their own cases? This is the problem facing the nation,” Gamawan said, adding that a total of 150 governors and district heads have been charged with corruption since 2004.

Yudhoyono recently approved a list of legal measures that could be used against erring public servants. He has also issued permits to police and prosecutors to investigate such cases.

“The president has said, ‘No more corruption cases.’ So when a regional leader is named a defendant in a criminal case, he will be replaced,” Gamawan said.

The main reason why provincial officials were often charged with corruption, Gamawan added, was their inability to manage regional budgets based on existing regulations.

“The president has called for capacity building among regional officials, because they need to improve on their financial management skills,” Gamawan said. “We cannot let these officials fall into legal disputes.”

Gamawan said the president also raised the issue of massive spending in local elections. This year, a total of Rp 3.55 trillion ($39 million) has been spent in 244 districts across the country, with each candidate spending an average or Rp 5 billion.

“The president said these candidates should cut down on their spending. The money being spent may put an added burden on the candidates. Ultimately, it may lead to offenses,” Gamawan said.

The Ministry of Home Affairs and the House of Representatives are currently discussing ways to reduce spending in local elections, including limiting the number of participants during a campaign.

“Inviting a big crowd has proven to be very costly, for any candidate,” Gamawan said.

Another option was for candidates to be voted into office by members of the provincial legislative council instead of by direct election.

BI introduces six regulations on monetary policies, financial system

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 06/16/2010 3:16 PM

The central bank has introduced six regulations, which it says not a capital control mechanism, to improve the effectivity of its monetary policies and stabilize the financial system and the rupiah.

The regulations include a minimum one-month holding period of Bank Indonesia (BI) certificates, which will be implemented starting July 7.

BI will also issue BI certificates maturing in nine months and 12 months starting August and September, respectively, acting BI governor Darmin Nasution said in a press conference.

The regulations will cover domestic and foreign investors, he said. "This isn't solely aimed at foreign investors," he said.

Police Confiscated $6.5 Million from Tax Official Gayus

Jakarta Globe, June 15, 2010

Police confiscated Rp 60 billion from a safe deposit box allegedly belonging to former tax official Gayus Tambunan (Photo Antara)

The National Police confiscated nearly Rp 60 billion ($ 6,541,291) from former tax official Gayus Tambunan, who is a suspect in money laundering and tax evasion cases. The cash was kept in a safety deposit box.

“We have obtained cash amounting to almost Rp 60 billion,” National Police Chief Gen. Bambang Hendarso Danuri told Metro TV. “We will investigate the sources of the money, whether it be money laundering or others.”

Bambang declined to mention where the safety box was found. “We found it somewhere,” he said.

On Monday, police said that they had handed over to prosecutors the dossiers on seven suspects linked to the case of Gayus in preparation for trial.

“The dossiers include those on two police officers who have been named suspects in the case,” said National Police spokesman Insp. Gen. Edward Aritonang, referring to investigators Comr. Arafat Enanie and Adj. Comr. Sri Sumartini.

On March 12, Gayus, then a mid-ranking tax official, was acquitted of embezzlement by the police despite having Rp 28 billion in his bank accounts. The money was believed to have come from corporate taxpayers seeking his help in avoiding to pay their taxes.

On Friday, the two prosecutors at the center of the controversial acquittal, Cirus Sinaga and Poltak Manullang, were charged with corruption and money laundering, the National Police said.

However, Edward said that neither have been formally questioned. “We haven’t called them in,” he said. “We’ll schedule that later.”