Indonesian Graft Fugitive at Center of ‘Gecko vs Crocodile’ Dispute Arrested in China

Jakarta Globe, SP/Novianti Setuningsih & ID/Aris Cahyadi, January 31, 2014

The Corruption Eradication Commission (KPK) grills graft suspect Anggoro Widjojo,
center, for five hours upon his arrival in Jakarta on Jan. 30, 2014. (ID Photo/Aris
Cahyadi)

An Indonesian graft fugitive at the center of the Corruption Eradication Commission (KPK) and National Police’s 2009 rivalry has been arrested in the Chinese city of Shenzen after evading law enforcement for five years.

Businessman Anggoro Widjojo was arrested on Wednesday at an immigration checkpoint while returning from Hong Kong to Shenzen, where he had apparently been residing for some time since fleeing Indonesia in 2008. Anggoro escaped after a travel ban was slapped against him during an ongoing investigation into a graft-ridden forestry project, in which he was named a suspect in June 2009.

The KPK, which made the arrest in cooperation with Indonesia’s immigration office and the Chinese police, said Anggoro had been using fake identities while jumping from one place to another, including Singapore and the Chinese city of Guangzhou, to evade Indonesian law enforcement.

KPK deputy chief Bambang Widjojanto said Anggoro was the last graft fugitive on the KPK’s wanted list.

“With the arrest of the suspect [Anggoro], the KPK has settled all of its debts concerning our search for people who have allegedly committed corruption but have escaped,” Bambang told a press conference in Jakarta early on Friday morning, a few hours after Anggoro’s arrival at the Soekarno-Hatta International Airport.

Anggoro was presented briefly in front of journalists, looking a bit plumper than the last time he was seen five years ago. His face looked the same, though, dismissing rumors that he had undergone plastic surgery to evade the law.

He was escorted to the KPK detention facility in Guntur, South Jakarta, at 3 a.m. on Friday, after being grilled at the KPK headquarters, also in South Jakarta, for five hours.

Jamaruli Manihurung, an Indonesian immigration official based in Guangzhou, said Anggoro did not resist his arrest at the Shenzhen-Hong Kong checkpoint.

Anggoro, a director and owner of Masaro Radiokom, allegedly bribed lawmakers to allow the radio communication company to renew its contract for the procurement of an Integrated Radio Communication System (SKRT) for the Ministry of Forestry in 2007, although a similar project — also involving Masaro — was previously halted in 2004.

The 2007 project was valued at Rp 180 billion ($14.8 million), and the case is believed to have caused the state Rp 13 billion in losses.

Five then-members of the House of Representatives’ Commission IV on agriculture, forestry and fisheries, including the head of the commission, Yusuf Erwin Faishal of the National Awakening Party (PKB), have been convicted in the case.

The four other lawmakers are Azwar Chesputra and Fahri Andi of the Golkar Party, Hilman Indra of the Crescent Star Party (PBB) and Al Amin Nur Nasution of the United Development Party (PPP).

Other people convicted in the case include Widjodjo Siswanto, then-head of the planning and finance bureau at the Ministry of Forestry, and Anggoro’s own brother, Anggodo Widjojo.

Anggodo has been sentenced to 10 years in prison after attempting to bribe KPK officials, as well as frame two of its former deputies —Bibit S. Rianto and Chandra Hamzah — to help Anggoro dodge law enforcement.

The attempted framing of Bibit and Chandra, in which the police named the two of them as bribery suspects, was at the center of a showdown involving the KPK and the police known popularly as “Cicak vs. Buaya” (“Gecko vs. Crocodile”), with the gecko representing the KPK and the crocodile the police.

The public has thrown its weight behind the gecko, mostly due to the police’s notoriety as one of the most corrupt institutions in Indonesia. The framing attempt was later revealed through wiretapped phone conversations between Anggodo and several police officials.

The Attorney General’s Office has cleared Bibit and Chandra of all charges.

Tony Abbott: Broadcaster ABC on 'everyone's side but Australia'

BBC News, 29 January 2014

Tony Abbott said the ABC should not "leap to be critical" of Australia

Related Stories

• Canberra 'spied on Indonesia leader'
• Australia rejects asylum abuse claim
• Abbott defends asylum 'closed book'

Australian Prime Minister Tony Abbott has criticised national broadcaster ABC for "taking everyone's side but Australia's".

Mr Abbott said the publicly-funded broadcaster should show "some basic affection for the home team".

The ABC has been at the forefront of reports on abuse claims from asylum seekers and reports that Australia had spied on Indonesia.

The ABC had no immediate comment on Mr Abbott's statements.

However, the opposition said that the government should welcome media scrutiny.

'Benefit of doubt'

Mr Abbott made the comments during an interview with radio station 2GB.

He said he was "worried and concerned" by the ABC's role in reporting spying claims in documents leaked by former CIA contractor Edward Snowden.

The documents appeared to show that Australian spy agencies named the Indonesian president and other senior ministers as targets for telephone monitoring.

The reports led to a diplomatic row, with Indonesia suspending military co-operation with Australia.

Mr Abbott also criticised the ABC's coverage of allegations that Australian navy personnel had mistreated asylum seekers.

Acting Opposition Leader Tanya Plibersek said it was right that the
ABC scrutinised government

Footage obtained by the ABC showed asylum-seekers being treated for burns that they said had been caused when they were forced to hold on to a hot boat engine.

Indonesian police said some asylum-seekers had burn marks on their hands, but they did not know who had inflicted them.

The claims were strongly rejected by both the Australian military and government, which has offered to co-operate with an Indonesian investigation.

"If there's credible evidence, the ABC, like all other news organisations is entitled to report it," Mr Abbott said.

"[But] you can't leap to be critical of your own country," he said, adding that the ABC should be prepared to give the Australian navy "the benefit of the doubt".

'Welcome scrutiny'

Acting Opposition Leader Tanya Plibersek said every government had "been subject to the close scrutiny of the ABC, and we should all welcome that".

"From emergency broadcasts in times of trouble to coverage of the events that shape our nation, the ABC is there, free for all Australians," she said.

The number of asylum boats travelling to Australia from Indonesia rose
in 2012 and the beginning of 2013

"[Mr Abbott] should stop complaining about media coverage and start behaving like a prime minister," she added.

Greens Senator Sarah Hanson-Young said: "We need strong voices in parliament to stand up for the public's right to an independent national broadcaster".

Critics have accused the government of secrecy over asylum policy.

The government has refused to comment on reports that the navy are towing asylum boats back to Indonesia. It has however recently issued an apology to Indonesia for "inadvertently" violating its waters on multiple occasions.

The government has also limited information on asylum arrivals and vessel-related incidents to a weekly e-mail, citing operational needs.

The ABC charter describes the corporation as "the provider of an independent national broadcasting service".

In December, ABC managing director Mark Scott defended the ABC's coverage of the spying allegations.

"We are an independent media organisation and of course sometimes we will publish stories that politicians won't be happy about," he said. "That's the role we have to play."

Related Article:

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems  (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it),  Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse),  Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“…  Government

Let us speak of government. We're not speaking of your government, but of any government - the way it works, how it survives, how it has survived, the way it campaigns, and how it elects leaders. It's going to change.

Years ago, I told you, "When everybody can talk to everybody, there can be no secrets." Up to this point on this planet, government has counted on one thing - that the people can't easily talk to each other on a global scale. They have to get their information through government or official channels. Even mass media isn't always free enough, for it reports that which the government reports. Even a free society tends to bias itself according to the bias of the times. However, when you can have Human Beings talking to each other all at once, all over the planet without government control, it all changes, for there is open revelation of truth.. 

KPK Seizes 17 Cars From Ratu Atut’s Brother

Jakarta Globe, Rizky Amelia, January 28, 2014

Wawan’s mansion on Jalan Denpasar IV in Kuningan, Central Jakarta was
 deserted on Tuesday afternoon, the day after the KPK confiscated 17 cars
from the money-laundering suspect. (JG Photo/Benjamin Soloway)

Money-laundering suspect Tubagus “Wawan” Chaeri Wardana — the brother of detained corruption suspect Banten governor Ratu Atut Chosiyah — had his fleet of 17 cars confiscated by anti-corruption investigators on Monday and Tuesday morning.

“At the moment, there have been 17 cars confiscated including some luxury cars such as a Lamborghini [Aventador], a Ferrari, a Bentley and a Rolls-Royce,” Bambang Widjojanto, deputy chairman of the commission, said on Tuesday.

Investigators began their search on Monday afternoon at Wawan’s two houses on lanes off Jalan Denpasar, a Kuningan, South Jakarta thoroughfare known for its hellish traffic bottleneck and exorbitant property prices; the street counts the Singapore embassy among its tenants.

Both properties, one large, the other mammoth, were deserted by Tuesday afternoon. Curtains were drawn, no lights were on, guard posts were left unmanned and there were no cars in sight. The larger of the two properties had a four-car garage — a rarity in Jakarta.

The KPK also searched at least five other addresses, including the office of Wawan’s wife, South Tangerang Mayor Airin Rachmi Diany; his employee Yayan Rodiah’s houses in Grand Serang Asri and Griya Serang Asri; and two houses in Taman Graha Asri, Serang, owned by another employee, Dadang Prijatna.

The commission confiscated a Harley Davidson motorcycle and three cars from the Kuningan addresses: a Toyota Land Cruiser, a Nissan GTR and a Lexus Sedan. A Honda motorbike remained in front of the smaller of the houses on Tuesday.

KPK spokesman Johan Budi said the other ten cars confiscated included two Mitsubishi Pajeros, a BMW, a Honda Freed, three Toyota Kijang Innovas, a Toyota Avanza, a Ford Fiesta and a Toyota Fortuner.

Four luxury cars were confiscated from a warehouse in Tanah Abang, Central Jakarta, Budi said.

“They were found in various places, even in a warehouse, but the most important thing is they have been found,” Bambang said. He would not comment on the commission’s view of the possibility that Wawan kept vehicles in a warehouse to conceal the extent of his assets.

Maqdir Ismail, Wawan’s lawyer, denied that the cars were hidden — he said they had been repossessed by a leasing company because his client was unable to pay.

The cars were parked on Tuesday at the KPK headquarters in Jakarta. Aside from the vehicles, the KPK also confiscated documents detailing Wawan’s assets.

Wawan has been named a money laundering suspect in two cases: the rigging of medical equipment contracts and attempting to corrupt the country’s democratic system by exchanging billions of rupiah in bribes for a favorable ruling in a disputed election in Lebak district, Banten.

Benjamin Soloway contributed reporting

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Pertamina Was Target for Extortion: Chief

Jakarta Globe, Rizky Amelia, January 28, 2014

Pertamina chief executive Karen Agustiawan beats a path through reporters
 outside the Corruption Eradication Commission (KPK) in South Jakarta on
Jan. 27. (JG Photo/Gata Dewabrata)

Updated at 9:40 a.m. on Tuesday, Jan. 28, 2014. First published on Jan. 27.

A lawyer for Karen Agustiawan, who is president director of Pertamina, said on Monday that several lawmakers threatened to undermine her position if the state energy company did not pay them undisclosed sums of money.

“She has often received threats that she will be fired,” Rudi Alfonso said. “But she never responded to such requests.”

The claim is the latest indication that state-owned enterprises have been targets of extortion by political parties and politicians to serve their personal interests.

Rudi was speaking at the Corruption Eradication Commission (KPK) headquarters in South Jakarta as Karen was being questioned as a witness in a bribery case implicating Waryono Karno, the secretary-general of the Ministry of Energy and Mineral Resources (ESDM), and Rudi Rubiandini, the former chief of Indonesia’s upstream oil-and-gas regulator, SKKMigas.

Rudi was responding to accusations that Karen had been channeling gratuities to members of the House of Representatives Commission VII, which oversees energy, the environment and research and technology.

The trial of Kernel Oil executive Simon Gunawan Tanjaya, who was sentenced to three years in prison last month over the bribery case, brought to light accusations that lawmakers made frequent requests for payment to Pertamina.

Rubiandini alleged that Karen often gave money to lawmakers and that she refused to respond to requests from the Energy Ministry because she had already paid lawmakers. Rubiandini, through his lawyer Rusdi A Bakar, said this was because Karen did not want to pay.

“Because [Pertamina] had already paid members of Commission VII, she refused to pay when the ESDM made a request, because that would mean she would be paying twice,” Rusdi said after visiting his client at the KPK detention facility in Jakarta on Monday.

He said he believed KPK investigators would be able to confirm the matter with Karen during Monday’s questioning.

“[She] will certainly be asked about that. Karen has given lots of money to Commission VII of the House of Representatives,” Rusdi said.

But he did not cite any examples of such payments.

“Why not ask her about it,” Rusdi said.

Bonuses

State-Owned Enterprises Minister Dahlan Iskan also denied that Karen gave money to the lawmakers who wanted Idul Fitri bonuses, or THR.

Dahlan confirmed that Rubiandini had asked Karen to chip in for the lawmakers’ THR but she rejected it.

“Because Rudi asked [her] to chip in. When I was the president director of PLN [state electricity company], I was also asked to chip in. But I rejected it. Karen also rejected it,” Dahlan said last week.

Dahlan claimed that when he became a minister he immediately instructed all state enterprise directors to not respond to such requests.

“It would create trouble if such requests are fulfilled. So, Rudi did indeed ask, but Karen didn’t fulfil it,” Dahlan defended.

Rubiandini asked Pertamina to provide money for the ESDM so that the ministry could hold a meeting with Commission VII but the state-run energy company couldn’t fulfil the request.

An investigation document showed that Rubiandini had mentioned the money to KPK investigators.

“Pertamina [Karen] could not fulfil the request from the ESDM ministry for the coordination meeting between ESDM and House Commission VII related to the revised state budget 2013,” Rubiandini told investigators.

He didn’t explain why Pertamina wasn’t able to fulfil the ESDM’s request.

He only said that he later decided to use the $30 thousand that he received from SKKMigas deputy chairman Gerhard Rumeser and another $20 thousand he received from Deviardi, his personal golf trainer, for the lawmakers.

Rubiandini later submitted the $50 thousand to his secretary Tri Kusuma Lydia, who delivered it to the ESDM. But he claimed that he didn’t know which ESDM official received the money.

Focus

KPK deputy chairman Zulkarnain said the antigraft body was focusing its investigation on the corruption case, which allegedly involved Waryono, including the alleged payment to members of House Commission VII.

“We are focusing on W.K.’s [Waryono Karyo] case but we need to understand the case as a whole,” Zulkarnain said.

The KPK recently announced that it had named the secretary-general of the Energy Ministry as a suspect in a bribery case that has implicated the former head of Indonesia’s upstream oil and gas regulator.

Waryono Karno has been a suspect since Jan. 9, but the KPK only announced it on Jan. 16.

“From the result of the [case] development, the KPK has decided to name W.K., the secretary-general of the Energy and Mineral Resources Ministry, as a suspect,” KPK spokesman Johan Budi said in Jakarta.

He said Waryono was charged with graft and/or bribery, and that the KPK found in his office $200,000 in cash.

The serial numbers of the dollar bills, Johan said, are similar with those allegedly received by Rudi from company Kernel Oil as a bribe.

Zulkarnain said the investigation of the alleged extortion by lawmakers can be held simultaneously with the investigation of Waryono’s case.

Zulkarnain said the alleged extortion by lawmakers would not be surprising for the public because it was a common practice.

But he said he could not provide all the investigation information to the public.

The KPK last week searched the offices of three lawmakers, namely Sutan Bhatoegana and Tri Julianto of the Democratic Party, and Zainuddin Amali of the Golkar Party.

Rudi mentioned during KPK inquiries that Sutan once asked him to pay holiday allowances to members of the House Commission VII.

There’s suspicion that the money Rudi collected was meant to be channeled to the Democratic Party to fund its upcoming congress to select a candidate for this year’s presidential election.

Speculation has also arisen that Deviardi is a member of the Democratic Party with close ties to Achsanul Kosasih, a member of the party’s central leadership board, and that he was picked as a go-between in the bribery transaction precisely because of his party affiliation.

Energy Minister Jero Wacik and the Democratic Party have denied any connections between the party and the scandal, and also denied that Deviardi was a member of the party.

Achsanul claimed that any attempt to link the SKKMigas case to the party was a malicious bid to tarnish its image.

Australia Asylum Policy ‘Draconian’: Rights Group

Jakarta Globe, January 22, 2014

An exhausted boy during a rescue operation in Cidaun, Cianjur, West Java,
Indonesia on July 24, 2013. (EPA Photo/Andra Subhan)

[Updated November 23]

Australia has neglected its legal responsibility to protect the rights of asylum seekers in favor of popular domestic appeal, Human Rights Watch said on Wednesday at the launch of its 2014 World Report.

In its 24th edition of the report, HRW slammed Australia’s scare-mongering politics and punitive resettlement policies.

“Last year Australia’s two major political parties were hell-bent on using cruel policies to deter asylum seekers, even at the expense of Australia’s international reputation,” said Elaine Pearson, director of HRW Australia.

In 2013, the Abbott government’s Operation Sovereign Borders policy promised to combat people smuggling by empowering the navy to turn back boats carrying asylum seekers.

HRW’s report said policies like these demonized asylum seekers, and risked destroying Australia’s global standing as a leader on human rights in Asia Pacific.

“It is a case of the richest country in the region foisting its burdens off onto poorer countries,” Pearson said.

She likened the impact of Australia’s mandatory offshore detention policy to the damage the US detention center in Guantanamo Bay had caused to that country’s human rights record.

“Australia risks its war on people smuggling being compared to another country that has had an abysmal record in an offshore jail, and of course I’m talking about the US and Guantanamo,” she said.

The report said Australia’s policy of mandatory detention in offshore processing centers in Papua New Guinea and Nauru exposed asylum seekers to harsh and unsatisfactory conditions.

Last year, after visiting the processing centers, the Office of the United Nations High Commissioner for Refugees reported that the facilities were neither fair nor humane, and failed to meet international standards.

Pearson said the ban on journalists entering processing centers and the secrecy surrounding Operation Sovereign Borders meant information was difficult to verify.

On Tuesday, a group of asylum seekers claimed they had been burned and beaten by the Australian navy before being returned to Indonesia under the policy to “turn back the boats.”

Australian Immigration Minister Scott Morrison denied the allegations, telling reporters in Sydney “the Australian government is not going to put up with people sledging the Australian navy.”

Pearson said the public’s right to information must be prioritized, as it was difficult to the get to the bottom of issues when “what happens at sea, stays at sea.”

“It is not sufficient to rely on the Australian government to act in the best interests of the people, when clearly this is not the case,” she said. She predicted Operation Sovereign Borders would not achieve Prime Minister Tony Abbott’s goal of stopping asylum-seeker boats.

“When people continue to be mistreated in detention centers, in worst cases being subjected to rape or human torture, then of course people are going to do anything they can to escape those conditions,” Pearson said.

HRW Indonesia researcher Andreas Harsono agreed, saying asylum seekers boarded the boats because there was no certainty for them in Indonesia.

“The ideal situation would be for those people not to be detained at all; for their children to have access to education and to have the right to work,” Pearson said.

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UN Warns Australia Over Reported Refugee Boat Push-Backs

Asylum seekers from Afghanistan, Iraq and Iran cry as Indonesian officers
 force them to leave the Australian vessel Hermia docked at Indah Kiat port in
 Merak, Indonesia’s Banten province in this April 9, 2012 file photo. (Reuters
Photo/Aulia Pratama)

.

Ex-Sports Minister’s Brother Accepted Half a Million Dollars, Can’t Explain Why

Jakarta Globe, January 22, 2014

Andi Zulkarnaen Anwar Mallarangeng reportedly accepted a half million
dollars but doesn’t know why. (JG Photo/Afriadi Hikmal)

“Mistakes, we all make them,” was how the brother of a former sports minister explained how he had “accidentally” accepted more than half a million dollars in cash, given to him for no discernible reason at all, at his house in August, 2010.

“No one asked for the money as a kickback,” Andi Zulkarnaen Anwar Mallarangeng, the brother of former sport minister and corruption suspect Andi Alfian Mallarangeng, said during a hearing at Jakarta Anti-Corruption Court on Tuesday. “I realized the next day when I opened it.”

The brother, who goes by “Choel,” was appearing as a witness in the trial of Deddy Kusdinar, the former finance director of the sports ministry and a suspect in one of Indonesia’s more praetorian corruption cases.

“I admit I received $550,000,” he said. “My unintentional mistake was that I never talked about it with my brother, and the case later dragged him [to prison],” he said.

Andi Alfian Mallarangeng was arrested by the KPK on Oct. 17. He denies all wrongdoing.

Choel said he had not told his brother about the extraordinary amount of cash until after Andi had resigned and was named a graft suspect by the Corruption Eradication Commission (KPK).

“My mistake became his,” Choel said. “My brother is an honest man.”

The KPK takes an alternative view.

The unfinished construction of Hambalang sports complex in Sentul,
West Java. (JG Photo/Jurnasyanto Sukarno)

In a report submitted last October, the Supreme Audit Agency (BPK) listed six instances of irregularities, or non-compliance of prevailing regulations in the Hambalang sports center construction project, which resulted in a total of Rp 471 billion ($40 million) in losses to the state — up from the initial estimate of Rp 243 billion.

Hambalang was intended to be a training center for Indonesia’s elite athletes — a promising might-have-been piece of government-funded sports infrastructure for a country that continues to punch well below its weight in international sport, save for a few bright spots, such as badminton, boxing, surfing and weightlifting. Today the sorry state of affairs that would have been something positive for Indonesian sport lies half-finished, blighting the West Java landscape.

The project has brought down some key figures in the Democratic Party, including former part chair Anas Urbaningrum and Andi. Both men have been charged: both men deny the charges, and neither has been convicted. Former state-owned construction firm director Teuku Bagus Mokhamad Noor and Deddy are the two other suspects named so far.

The prosecutor in Deddy’s trial alleges that Choel met with Wafid Muharam, a bag man at the sports ministry, to arrange for a kickback from state-owned construction firm, Adhi Karya.

“During the meeting, [Andi Zulkarnaen] said his elder brother Andi Mallarangeng had been serving [as sports minister] for a year but hadn’t received anything,” Prosecutor I Kadek Wiradana said.

Choel later met with Wafid, Deddy, Fakhruddin and Muhammad Arief Taufiqurrahman, another executive with Adhi Karya, Kadek alleges.

Choel does not deny that $550,000 turned up in a package at his house a few weeks later. How and why it got there, however, is anyone’s guess, he says.

“Up until [Tuesday], I didn’t know what the money was for,” he told the court.

The trial continues.

Australia to Aid Jakarta, Makassar in Water Management Programs

Jakarta Globe, Nicole Jade Millane & Abdul Khalik, January 22, 2014

A woman wades through floodwaters in Jakarta, Indonesia, on Jan. 21,
 2014. (EPA Photo/bagus Indahono)

One of the most crucial current problems facing the country may have a solution, as the Australian federal government initiates plans to work with Indonesian authorities on developing a more sustainable way to manage water in the capital and other cities across the archipelago.

With political relations between Canberra and Jakarta currently at a low, the initiative seems to be part of a larger strategy to win the hearts and minds of Indonesians following reports of Australian intelligence services spying on President Susilo Bambang Yudhoyono, his wife Ani Yudhoyono and national officials.

The Australian government feels water development and management in Indonesia, and particularly Jakarta, is a great way to rebuild a positive relationship between the neighbors.

“This is part of Australia’s engagement to Asia,” Julianne Merriman, Australia’s trade and investment commissioner in Indonesia, said at a press gathering on Tuesday.

Australia has also launched an Asian engagement program called the New Colombo Plan, which is aimed to send more Australian youths to Asia, including Indonesia, for internships at companies and organizations as well as to learn the culture of their host countries.

Australia has pledged A$532 million ($467 million) in funding to Indonesia this year, almost A$50 million more than it gave last year, with AusAID aggressively working on helping education and health improvement across Indonesia.

Future business relations also look promising and engagement is likely to continue across several platforms, officials and businesspeople from both countries say.

Jonathan McKeown, chief executive of the Australian Water Association, who is visiting Indonesia as part of three-country trip, has met with local officials including Jakarta Deputy Governor Basuki Tjahaja Purnama to discuss possibilities for Australia to help cities, especially Jakarta, deal with water sanitation, flood mitigation, waste water and water conservation.

McKeown said that everyone he met had expressed interest in Australia’s plan to help mitigate flooding.

On Tuesday, he met with outgoing Makassar Mayor Ilham Arief Sirajuddin and Mayor-Elect Danny Pomanto to discuss future plans to develop the city’s water management using Australian technology across different areas.

“Makassar is to become a pilot project,” McKeown said.

Both Ilham and Danny, who will take over the city’s government by May, expressed their willingness to cooperate with Australia to manage water better.

“We are happy to be chosen by the Australian government. We have the political will to support whatever plan they have,” Ilham said.

Although the AWA is still developing ideas on which particular water management plan to launch, a plan for a water reservoir lower than Makassar that manages clean water is estimated to cost up to $40 million, according to Danny.

“We must focus on one concrete project, and building this reservoir is the most viable one. Australian officials have expressed their agreement and they plan to come to see it themselves later this month,” he said.

Merriman said that they must choose a project with the highest chance of success. She also said that Makassar was a great place to begin a project as it was a “dynamic, growing and progressive” city.

Makassar, she said, will be used as a starting point in the hopes that it will become a pilot city for successful water management in Jakarta.

With the recent dramatic and damaging floods affecting Jakarta, plans for future sustainable water management can’t come fast enough for the city, and McKeown said that AWA planned to create long-term resolutions for the capital.

Surabaya Zoo Management Reported to KPK

Jakarta Globe, Rizky Amelia, January 20, 2014

An orangutan at Surabaya Zoo on Oct. 10, 2013. (AFP Photo)

The scandal at Indonesia’s notorious “zoo of death” took another turn on Monday after the mayor of Surabaya delivered a file to the Corruption Eradication Commission (KPK) detailing allegations of graft.

“There have been several groups [in the management] of Surabaya Zoo. The team isn’t solid and some action needs to be taken immediately,” Surabaya Mayor Tri Rismaharini said before a meeting with anti-graft officers. “We hope the KPK will help us.”

The move by Rismarahini to approach the KPK marks a sharp turnaround for the mayor, who has attracted criticism for her administration’s management since it took over the zoo after the horrendous conditions were revealed.

KPK spokesman Johan Budi said investigator would study the file.

“We will study the report — similar to our treatment of reports from other members of the public — to see if there is any indication of corruption or not,” Johan said.

It could not be confirmed on Monday which people in the temporary management team Rismaharini had reported to the KPK. It is understood that the report claims that officials in the zoo’s management team were complicit in the black-market sale of animals.

The zoo is home to approximately 3,000 animals, 420 of which are protected species. The mayor suspects that at least two endangered species were stolen and sold.

“Each small Bali myna is worth between Rp 50 million ($4,100) and Rp 100 million,” Rismaharini said. “A Komodo dragon may sell for between Rp 600 million and Rp 900 million; two are missing.”

Rismarahini said that an independent study of the zoo had revealed that officials may have received cars and other items as part of deals to sell zoo animals.

“This according to the Airlangga [University]’s audit… of the zoo,” Rismaharini said.

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The number of deaths at Surabaya zoo, including a lion earlier this month,
 have alarmed wildlife conservation groups, but the mayor has denied allegations
of negligence. (EPA Photo/Fully Handoko)

Energy Ministry Secretary-General Named Suspect Over SKKMigas Bribery

Jakarta Globe, Rizky Amelia, January 16, 2014

Laborers stage a protest in front of the headquarters of the Ministry of Energy
 and Mineral Resource in Jakarta in this Jan. 16, 2013 file photo. (JG Photo/
Afriadi Hikmal)

The Corruption Eradication Commission (KPK) on Thursday announced that it had named the secretary-general of the Ministry of Energy and Mineral Resources as a suspect in a bribery case that has implicated the former head of Indonesia’s upstream oil and gas regulator.

Waryono Karno has been a suspect since Jan. 9, but the KPK only announced it on Thursday.

“From the result of the [case] development, the KPK has decided to name W.K., the secretary general of the [Ministry] of Energy and Mineral Resources, as a suspect,” KPK spokesman Johan Budi said in Jakarta.

He said Waryono was charged with gratuity and/or bribery, and that the KPK found in his office $200,000 in cash.

The serial numbers of the dollar bills, Johan said, are similar with those allegedly received by Rudi from company Kernel Oil as a bribe.

Rudi allegedly received more than $1.58 million in cash from Kernel Oil to influence the result of some tenders and recommending lower gas prices. He allegedly got the money from Widodo Ratanachaitong, a representative of Kernel Oil Singapore and Fossus Energy, through Simon Gunawan Tanjaya, the operational director of Kernel Oil Indonesia.

Rudi, Simon and alleged middleman Deviardi — Rudi’s golf trainer — are currently standing trial in the case.

Johan added the KPK on Thursday also searched the offices of three lawmakers, namely Sutan Bhatoegana and Tri Julianto of the Democratic Party, and Zainuddin Amali of the Golkar Party.

Rudi mentioned during the KPK inquiries that Sutan once asked for money from him to pay for holiday allowances for members of the House of Representatives’ Commission VII, which oversees energy, environmental matters and research and technology.

There’s suspicion that the money collected by Rudi was meant to be channeled to the Democratic Party to fund its upcoming congress to select a candidate for next year’s presidential election. Speculation has also arisen that Deviardi is a member of Democratic Party with close ties to Achsanul Kosasih, a member of the party’s central leadership board, and that he was picked as the middleman in the bribery transaction precisely because of his party affiliation.

Energy and Mineral Resources Minister Jero wacik and Democratic Party have denied any connections between the party and the scandal, and also denied that Deviardi was a Democrat.

Achsanul claimed that any attempt to link the SKKMigas case to the Democrats was just a malicious bid to tarnish the party’s image.

Indonesian mineral export ban may hurt miners

Deutsche Welle, 15 January 2014

Indonesia is one of the world's largest exporters of raw materials. But now the government wants to promote domestic processing by banning mineral ore exports. The ban, however, threatens the livelihoods of many miners.

It is arguably one of the most far-reaching economic policy decisions the Indonesian government has taken since President Susilo Bambang Yudhoyono came to power some ten years ago. The new law, which came into effect on January 12, stipulates that only "processed" minerals may be shipped to other countries - although some exceptions were made. The government argues the long-planned ban on mineral ore exports is designed to strengthen the state-owned manufacturing industry.

Controversial legislation

According to Sutan Bhatoegana, chairman of the Indonesian Parliament's House Committee for Mining Affairs, the Southeast Asian nation will "benefit greatly" from this law because "we will no longer sell raw materials for little money."

The government announced it would allow

 certain copper concentrates to be exported

until 2017

But Bhatoegana also told DW that the major international mining companies should be compelled to process the raw materials in the country. "If corporations build processing plants in Indonesia, this will create additional jobs and enable the government to make larger profits."

The new law is highly controversial. International mining companies as well as some Indonesian labor market experts were up in arms against the ban, which was in the making since 2009. Only minutes before the legislation was passed, the government finally relented and gave in to some of the major demands of the mining companies, resulting in materials such as copper, iron ore, lead and zinc being excluded from the export ban.

This was mainly a concession to two large American mining companies that together account for about 97 percent of the nation's total copper mining output. The Ministry of Industry announced that it would allow certain copper concentrates to be exported until 2017. However, "we will impose a progressive export tax: the lower the degree of processing of copper ore, the higher the tax," said Industry Minister MS Hidayat.

Dismissals or new jobs?

It remains unclear whether the country will benefit from an export ban in the long run. Producers of nickel ore and bauxite are particularly hard hit by the decision. Although the new law is aimed at creating jobs, major American mining companies have so far failed to make the necessary investments.

They have had to scale down their operations and now they are threatening to lay off thousands of workers. Sutan Bhaetogana also admits that this "will have negative consequences in the short term," and result in a temporary drop in government revenues. But the member of parliament is nonetheless convinced that this will last only for three to four months and that the nation will recover.

However, small, local traders have a different view. Their livelihoods are threatened as they cannot afford to build and run their own processing plants. According to the Indonesian Mineral Entrepreneurs Association, some 30,000 mine workers have already lost their jobs, prompting people to take to the streets of Jakarta in protest. Indonesia will hold both parliamentary and presidential elections this year. Analysts expect the dispute surrounding the mining industry to become one of the top campaign issues.

Indonesia is one of the world's largest exporters of raw materials

Rising prices

The first effects of the export ban can already been seen on the world's commodity exchanges, with the price of nickel rising by more than six percent within a span of four days. Indonesia is the world's largest exporter of nickel ore, a material used in the production of stainless steel. Thus far, about 90 percent of exports are sent to China for processing. Nickel ore is an important raw material in China, where it is used to manufacture small electrical appliances. It is also used in the automotive industry and the construction sector.

Marzuki Suggests House Members Donate 25% of Salaries to Sinabung Victims

Jakarta Globe, January 15, 2014

A villager pours pesticide from a bucket as Mount Sinabung spews ash at Kebayaken
 village in Karo district, North Sumatra, on Dec. 4, 2013. (Reuters Photo/Roni Bintang)

The House of Representatives Speaker Marzuki Alie suggested during a plenary meeting on Wednesday that each member of the legislative body should donate 25 percent of their monthly salary to victims of the ongoing Mount Sinabung eruptions in North Sumatra.

The donation scheme was initially suggested by Heriyanto, a lawmaker with the Democratic Party, during the meeting.

“I recommend that we give 25 percent of our incomes to the victims of Mount Sinabung,” he said as quoted by news portal Merdeka.com. “I will be the first.”

Marzuki approved the motion, banging his gavel, adding that all lawmakers from the Sinabung district should donate the entirety of their monthly salaries to those affected.

A House member on average receives Rp 15,510,000 ($1,287) per month, excluding extra allowances for utilities and housing, which could amount to more than Rp 45 million per month.

“This is something for pride,” he said as quoted by Detik.com. “At least it could relieve us of our sins for the new year.”

Anton Sihombing, a lawmaker from the Golkar Party, urged the central government to take concrete actions to help the volcano victims.

“We have to insist that the government [assist] the victims of Mount Sinabung,” he said as quoted by Detik. “They have been evacuated in more than four months.”

The slow response of the government has also prompted a Twitter campaign.

President Susilo Bambang Yudhoyono on Monday tweeted that he plans to visit the victims next week.

“Next week, God willing, I will return to Kabanjahe to make sure that the Sinabung administration and victims are well,” he said.

More than 25,000 residents have fled their homes in the past week around Mount Sinabung.

Related Article:

19,000 Indonesians Flee Erupting Mt. Sinabung Volcano