Yudhoyono Not Amused by Australia Graft Scandal

Come Clean: The president, who has been linked to a case involving the bribery of senior officials to print banknotes in Australia, wants a transparent investigation, despite a gag order by an Australian court

Jakarta Globe, Ezra Sihite & Erwida Maulia, Jul 31, 2014

President Susilo Bambang Yudhoyono has demanded full transparency into
 an Australian corruption scandal in which his name has come up. An Australian
 court has barred that country’s media from reporting on the case. (Antara Photo/
Andika Wahyu)

Jakarta. Canberra has cleared Indonesian President Susilo Bambang Yudhoyono of any involvement in an international corruption scandal implicating two subsidiaries of the Australian central bank, in a case that only came to light following a revelation by Wikileaks about a nationwide gagging order on the Australian media against reporting on the matter.

The so-called super injunction from the Supreme Court of Victoria, dated June 19 and made public by Wikileaks on Tuesday, prevents local media from reporting on corruption allegations related to Note Printing Australia (NPA) and Securency International, two subsidiaries of the Reserve Bank of Australia.

The gag order follows the secret June 19 indictment of seven senior executives from NPA and Securency concerning allegations of multi-million dollar inducements made in order to secure contracts for the supply of Australian-style polymer bank notes to the governments of Indonesia, Malaysia, Vietnam and other countries, Wikileaks reported.

Yudhoyono, along with his predecessor, Megawati Soekarnoputri, and the state enterprise minister during Megawati’s 2001-04 presidency, Laksamana Sukardi, are among 17 individuals listed in the court order, which also mentions the current and former heads of states of Malaysia and Vietnam.

The super injunction says there should be “no disclosure, by publication or otherwise, of any information (whether in electronic or paper form) [...] that reveals, implies, suggests or alleges” the 17 individuals received, witnessed or were intended to receive “a bribe or improper payment.”

It also specifically bans the publication of the order itself as well as an affidavit affirmed last month by Australia’s representative to the Association of Southeast Asian Nations, Gillian Bird, who has just been appointed as Australia’s permanent representative to the United Nations.

The document invokes “national security” grounds to prevent reporting about the case, in order to “prevent damage to Australia’s international relations.”

The Australian government on Tuesday acknowledged and defended the existence of the gag order.

“The Australian government obtained suppression orders to prevent publication of information that could suggest the involvement in corruption of specific senior political figures in the region — whether in fact they were or not,” the Australian Embassy in Jakarta said in a statement. “The government considers that the suppression orders remain the best means for protecting the senior political figures from the risk of unwarranted innuendo.”

The embassy also cleared Yudhoyono and Megawati of allegations of improper conduct.

“The naming of such figures in the orders does not imply wrongdoing on their part. The [Australian] government stresses that the Indonesian president and the former president are not the subject of the Securency proceedings,” it said. “We [the Australian government] take the breach of the suppression orders extremely seriously and we are referring it to the police.”

The statement was issued to the Indonesian media shortly after Yudhoyono held a press conference at his home in Cikeas, Bogor, to protest the citing of his name in the super injunction, following a report earlier this week by the Indonesian daily Seputar Indonesia, or Sindo, which cited the Wikileaks report.

“The Wikileaks information which was put out by Sindo has tainted my good image and that of Ibu Mega [Megawati],” Yudhoyono said. “It can also trigger speculation, which might lead to libel. The news issued by Wikileaks and Sindo is something which has caused hurt.”

The president has demanded that Canberra make public any allegations of involvement of Indonesian officials in the case to clear things up. He also said Australia should work with Indonesia’s Corruption Eradication Commission (KPK) in any investigation into the matter.

“I really hope and I want the Australian government and authorities to open and reveal as clearly as is possible the legal [case]. Don’t cover it up. I want this to be crystal clear throughout the country,” Yudhoyono said. “Please reveal, identify and investigate the people [involved]. If someone has been accused of breaking the law, what is the case and what is the violation? And I hope that if someone [in Indonesia] is involved, then they cooperate with the KPK.”

The KPK did not respond to the Jakarta Globe’s inquiries on the matter, but previous media reports dating back to 2010 found the antigraft body had considered launching investigations into the case back then.

A report by Bloomberg News in August last year said Radius Christanto, a Singapore-based Indonesian businessman who played an alleged middleman role in the case, agreed to his extradition to Australia to testify in Australian court proceedings concerning the case.

Radius allegedly helped NPA and Securency channel $1.3 million in bribes to two Bank Indonesia officials to win a project to print 500 million 100,000-rupiah bills from 1999 to 2004. The project was reportedly worth $55.5 million. The polymer notes are no longer in use now.

Yudhoyono said Bank Indonesia did hire the RBA subsidiaries around that period and, allegations aside, was authorized to do so.

“But my point is, that is the authority of BI. So whoever the president was in 1999, or when the banknotes were printed in Australia, they couldn’t be involved in the decision-making process,” he said.

Wikileaks has slammed the “unprecedented” censorship order, calling it “the worst in living memory.” It says the last known blanket suppression order of this nature by the Australian government was granted in 1995 and concerned the joint US-Australian intelligence spying operation against the Chinese Embassy in Canberra.

“With this order, the Australian government is not just gagging the Australian press, it is blindfolding the Australian public,” Wikileaks founder Julian Assange said in a statement posted on the group’s website on Tuesday. “Foreign Minister Julie Bishop must explain why she is threatening every Australian with imprisonment in an attempt to cover up an embarrassing corruption scandal involving the Australian government.

“The concept of ‘national security’ is not meant to serve as a blanket phrase to cover up serious corruption allegations involving government officials, in Australia or elsewhere. It is in the public interest for the press to be able to report on this case. Who is brokering our deals, and how are we brokering them as a nation? Corruption investigations and secret gag orders for ‘national security’ reasons are strange bedfellows. It is ironic that it took Tony Abbott to bring the worst of ‘Asian Values’ to Australia.”

Related Article:

KPK Says Ready to Help Australia Uncover Wikileaks Corruption Allegations

Indonesian president calls on Australia to explain WikiLeaks gag order

US Gunmaker Fined for Bribing Indonesia, Pakistan Officials

Jakarta Globe – AFP, Jul 29, 2014

A club member fires a pistol. (Reuters Photo/Andy Clark)

Washington. US gunmaker Smith & Wesson was hit with $2 million in fines Monday for bribing officials in Indonesia, Pakistan and other countries to gain sales deals.

The US Securities and Exchange Commission accused the company, whose handguns are popular in law enforcement and military services, of facilitating bribes of $11,000 worth of cash and free guns to Pakistan police officials in 2008 to obtain a supply contract.

One year later, the SEC said, Smith & Wesson employees made or authorized bribes in Indonesia to win a contract with a local police department, though the deal ultimately fell through.

Other attempts to pay off officials via third-party agents were made in Turkey, Nepal and Bangladesh, the SEC said.

The SEC found that the company’s actions, successful or not in gaining business, violated the US Foreign Corrupt Practices Act, which aims to eliminate bribery and graft as a crucial factor in business competition internationally.

Smith & Wesson did not admit or deny the findings by the SEC, but agreed to pay $2.0 million in penalties and illicit gains to settle the charges.

The SEC said the company had taken action to halt pending sales transactions when it learned of the bribery by its staff, and fired its entire international sales staff to begin addressing the problem.

“This is a wake-up call for small and medium-size businesses that want to enter into high-risk markets and expand their international sales,” said Kara Brockmeyer of the SEC Enforcement Division.

“When a company makes the strategic decision to sell its products overseas, it must ensure that the right internal controls are in place and operating,” she said in a statement.

Agence France-Presse

Jokowi to Get Pay Raise as President, but Salary Lags World Leaders

Jakarta Globe, Josua Gantan, Jul 25, 2014

Joko Widodo’s pay as president of Indonesia would be a fraction of the pay
as other world leaders. (Antara Photo/Widodo S. Jusuf)

Jakarta. As the president-elect of Indonesia, Joko Widodo is bound to receive a pay rise that will amount to an eightfold increase of what he currently earns as the governor of Jakarta.

Official sources revealed that Joko is raking in $8,700 each year as chief of the nation’s capital, while his second in command, Basuki Tjajahaja Purnama — widely known as Ahok — earns $7,260.

Outgoing President Susilo Bambang Yudhoyono, on the other hand, reportedly makes $64,300 per year.

At face value, one may judge the figure to be on the low side for what the leader of an entire nation should earn. Bank of Indonesia governor Agus Martowardojo, for example, is paid three times more than the president at $207,450 per year.

Similarly, the president directors of several state-owned enterprises, such as Pertamina, Bank Mandiri and Bank Rakyat Indonesia, take home a significant amount more money than the president, earning up to Rp 190 million ($16,500) per month on average.

The leader of one of Indonesia’s closest neighbors, Singapore’s Prime Minister Lee Hsien Loong, rakes in a staggering amount of $1,740,000 per annum, which means he earns 27 times more than President Yudhoyono.

Meanwhile, US President Barack Obama, makes six times more than Yudhoyono with an annual salary of $400,000.

‘Other benefits’

One may wonder why Indonesia’s president — the state leader of some 250 million people — earns what some may label a “dismal” amount of money compared to the nine-digit figures coined in by senior members of the country’s enterprises.

What then, is so special about being a high-ranking government official in Indonesia?

The answer to this question lies in additional “benefits” beyond what can be seen on paper.

“Don’t just look at the salary, look at the allowances too,” Ade Irawan, coordinator of Indonesia Corruption Watch (ICW), told the Jakarta Globe on Thursday.

“Their salaries are usually quite small, but [government officials] are entitled to various allowances, ranging from small to massive, all of which are paid for by the state,” Ade said. “They are also given an allowance for clothes, electricity, water, and many other [services].”

Siti Zuhro, a political researcher from the Indonesian Institute of Sciences (LIPI) told the Jakarta Globe that there are various “unwritten” benefits that high-ranking officials regularly receive.

“What is written [on paper] is indeed meager, but [politicians] do get a lot of money; don’t be naive,” she said.

On top of the many “facilities” they enjoy, many high-ranking public officials make huge sums of money by providing their services — and essentially their names — to some of the countries larger private-owned companies.

“Special envoys [to the president] for example, earn a lot [of money] by being commissioners [of a business]. This may get them more than Rp 75 million rupiah per month,” she said.

These government employees, she added, are allowed to have their hand in more than one company.

Major businesses are often incentivized to hire politicians as members of the board as their presence and political clout would boost the company’s legal standing.

Simply put, having a high-ranking public official on the firm’s payroll may be costly, but it makes doing business in Indonesia’s multi-tiered, bureaucratic industries a whole lot easier.

As a result, however, many of these so-called “business boosters” become prone to conflicts of interest and often find themselves being accused of favoritism.

The right question

Perhaps asking whether Indonesia’s politicians make enough money would be the wrong question, Siti pointed out. The right question would be whether the current remuneration policy for public officials is one that can minimize corruption and conflicts of interest, she added.

Clearly, the long-standing practice of handing out “unwritten benefits” to politicians and providing them with the freedom to boost their finances through business means have made little impact on the fight to eradicate corruption within the Indonesian government. In fact, these political habits could very well be seen as adding fuel to the fire.

With such financially driven customs buried deep within the country’s political system, Joko and Vice President-elect Jusuf Kalla face a grueling task of implementing a “mental revolution” that discourages monetary gain.

Related Article:

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President-Elect Jokowi Calls on Public to Pick Cabinet

People's Power — In an unprecedented move, Joko Widodo has asked Indonesians to help him put together a new government

Jakarta Globe, Erwida Maulia, Jul 26, 2014

Joko Widodo, center, and Jusuf Kalla, second from left, with PDI-P head Megawati
 Sukarnoputri, second from right, and Puan Maharani on July 22, 2014.
(Reuters Photo/Darren Whiteside)

Jakarta. President-elect Joko Widodo has again come up with an innovative idea; one that is unheard of in the history of Indonesian politics. Indonesia’s future leader is asking the public to add its two cents in filling out his cabinet, and in the process, revealing the potential nominees.

Jokowi Center, a team of volunteers helping Joko gather suggestions and examine candidates for his cabinet lineup, launched a poll on its website jokowicenter.com on Thursday, allowing Indonesians nationwide to cast their votes for names provided by the site, or nominate their own favorites.

More than 18,000 online participants raced to the site as of Thursday evening, causing it to crash less than 24 hours after its official launch.

The Center’s Facebook page and Twitter account — @Jokowi_Ina — also provided a link to a Google document inviting citizens to fill out a similar questionnaire.

A total of 102 names have been nominated for 34 ministerial posts, with each position receiving three candidates. If respondents remain unsatisfied with the suggestions, they may nominate their own choice with the “other” option.

“I’m only asking for input [to create] the cabinet,” Joko commented about the online poll on Thursday. “[The suggestions] will be processed by a team, using a set of criteria. Then, [the results] will be sent to coalition members, before being sent back to the [Jokowi Center] team.

“The final decision will be on me.”

The Jakarta governor has repeatedly stated he was against the practice of transactional politics and will not trade political support for a seat in his government.

The unprecedented move could account for the relatively small size of his coalition — compared to opponent Prabowo Subianto’s massive campaign machine — which will control a mere 37 percent of legislative seats when the new set of lawmakers go into session on Oct. 1.

Compare that with the rival bloc of former Army general Prabowo, which will control 73 percent of the House seats if the coalition does not fall apart — as many observers have predicted.

Joko has also vehemently rejected allegations claiming he will merely act as a “puppet president” to Megawati Soekarnoputri, the chairwoman of his political vehicle, the Indonesian Democratic Party of Struggle (PDI-P).

“I truly respect Megawati as my senior. But surely good governance should come from making the right decisions and what is best for our nation,” Joko said in an interview a day before the General Elections Commission (KPU) declared him and running mate Jusuf Kalla the winners of the July 9 presidential race on Tuesday.

Still, it’s impossible not to notice that at least 30 names on Jokowi Center’s list of cabinet nominees are party members — and most of those are from the PDI-P.

Take for example Puan Maharani, Megawati’s daughter, who is tipped as an heir apparent to the PDI-P throne. The 40-year-old is a candidate for the position of women’s empowerment minister.

Meanwhile, senior PDI-P politicians Maruarar Sirait and Pramono Anung are both nominated for state secretary. Similarly, Hendrawan Supratikno has been suggested for the post of finance minister and Arif Budimanta for energy minister.

Politicians from other parties within the PDI-P-led coalition, including National Awakening Party (PKB) chairman Muhaimin Iskandar, National Democrat Party (Nasdem) deputy chairman Ferry Mursyidan Baldan and Indonesian Justice and Unity Party (PKPI) chairman Sutiyoso, are also on the list. They are — in respective order — nominated for the chief welfare minister, the communication minister and the coordinating minister for political, legal and security affairs.

Interestingly, a number of figures from parties in the rival camp have also been nominated, including popular Bandung Mayor Ridwan Kamil of Prabowo’s Great Indonesia Movement (Gerindra) Party and Lukman Hakim Saifudin of the United Development Party (PPP). They are candidates for the public housing minister and religious affairs minister, respectively.

More notable additions to the list include movie directors Garin Nugroho and Mira Lesmana as the tourism and creative industry minister.

The nomination of noted composer Addie M. S. and Paramadina University rector Anies Baswedan as the youth and sports minister, meanwhile, have managed to raised eyebrows — with neither known to have any experience in the area. Anies has in fact been widely expected as Indonesia’s next education minister, but he’s strangely not among the Jokowi Center nominees for the job.

Is the right man in the right place?

Bantarto Bandoro, a political, defense and international relations expert from the Indonesia Defense University (Unhan), expressed his opinion on several candidates on Friday.

According to Bantarto, Indonesian Military (TNI) commander Gen. Moeldoko and former Army chief of staff Gen. Budiman were both capable of holding the chief political and security minister position, but noted that Budiman’s recent dismissal — the reason of which remains unclear —  would not set a positive precedence for Joko’s future cabinet.

“Would Joko promote Budiman though he was ‘dismissed’ from the Army?” Bantarto questioned.

“The coordinating minister for political, legal and security affairs is a managerial position; it doesn’t require technical skills. Moeldoko will be the best man for the job. He’s familiar with latest security issues, including those that will remain [Indonesia’s concerns] over the next five years,” Bantarto said.

Former chief of the Jakarta military command Sutiyoso, meanwhile, has been absent from Indonesia’s political arena since the end of his term as Jakarta’s governor in 2007, which means he may face difficulties readjusting to another government post, Bantaro added.

For defense minister, he pointed to one of his former students at the University of Indonesia (UI), Andi Widjajanto — who is now a lecturer at the university— as the best man for the job. Andi, along with senior PDI-P lawmaker T. B. Hasanuddin and former Army chief of staff Ryamizard Ryacudu, are three nominees for the job.

It helps that Andi is a core member of Joko’s campaign team and has been directly involved in outlining the ticket’s defense and foreign policy platform.

“Andi has an advantage over the other two [candidates]. His academic, scientific-based approaches will introduce logics in Indonesia’s defense policies and help them develop,” Bantarto said. “He’s young, but has good expertise.”

Meanwhile, Hasanuddin, a member the House’s defense commission, has admittedly been following every development of Indonesia’s defense sector and has provided the government with ample criticism on the matter.

“But his arguments often lack theoretical, scientific and practical grounds and therefore offer no real solutions to the matter at hand,” Bantarto commented.

Finally, he pointed out that the appointment of Ryamizard — a known close aide to Megawati — would contradict Indonesia’s stance on appointing a civilian for the defense minister position. The policy was introduced at the start of the post-Suharto reformation era and was meant to curb military involvement and dominance in the government.

As for the role of foreign minister, Bantarto champions Indonesia’s current international public relations man Marty Natalegawa, as he is expected to continue the country’s ongoing diplomatic missions — which most of Indonesia’s foreign observers say are cruising in the right direction.

“Additionally, there would be almost zero resistance against him within the diplomatic ranks. The same may not be said for public figures who have currently no connections to the foreign ministry, such as UI lecturer Makmur Keliat or Center for Strategic and International Studies [CSIS] executive director Rizal Sukma,” Bantarto said. “Rizal has some great, sharp foreign policy concepts, but he would meet resistance in the diplomatic ranks as he’s never been part of them.”

The economic team

Eric Alexander Sugandi, an economist at Standard Chartered, gave his comments on the appointment of Indonesia’s future economic ministers.

However, Eric refused to take sides and name his favorite choice for chief of Indonesia’s economy, the nominees for which include incumbent minister Chairul Tanjung, who has only held the title for several months, gaining the position after stepping in for current Prabowo running mate Hatta Rajasa; State Enterprise Minister Dahlan Iskan; and former trade minister Gita Wirjawan.

“Ideally, the coordinating minister for the economy position should go to a senior minister, experienced enough to be able to smoothly coordinate with other economic ministers. And ideally, the person must also be able to work with regional administrations,” Eric said.

For the post of finance minister, Eric favors former minister Agus Martowardojo — who held the role from 2010 to 2013 — but highly doubts that Agus would want to leave his current position as Bank Indonesia governor.

“Raden Pardede gained ample experience with the KSSK, the [now-defunct] Financial System Stability Committee,” Eric said. “But other names from the finance ministry’s inner circle should be considered as well.”

These would include deputy finance minister Bambang Brodjonegoro, former deputy finance minister Mahendra Siregar — who is now chief of the Investment Coordinating Board, or BKPM — and tax director general Fuad Rahmany.

Eric added that Mari Elka Pangestu, trade minister from 2004 to 2011 and current nominee, would still be fit for the job, citing her vast experience in the sector.

“Basically, aside from having specific skills in their specific areas, ministers for the economy should also possess macroeconomic knowledge, experience in policy making and the ability to build relations with other state institutions, including the House of Representatives, Bank Indonesia and the OJK [Financial Services Authority].

“Candidates should also be in favor of administrative reform,” Eric added.

Corruption free?

Meanwhile, the Indonesia Corruption Watch (ICW) offered its input by highlighting the track records of names added to Jokowi Center’s online list, some of which have already raised a red flag within the antigraft organization.

ICW coordinator Ade Irawan refused to go into detail, but conceded that Rokhmin Dahuri, the maritime and fisheries minister under Megawati’s 2001-04 presidency, had once been convicted of corruption and abusing his power.

Rokhmin was sentenced to a seven-year prison term in 2007 for illegally collecting up to Rp 11.5 billion ($1 million) from various government programs. His sentence was cut short due to good behavior.

Raden may also prove to be a problematic candidate due to KSSK’s involvement in the Bank Century bailout scandal, which is currently being tried at the Jakarta Anti-Corruption Court. However, the former KSSK secretary has only testified as a witness in the case.

“The candidates’ list should be free from people implicated or suspected in corruption cases and potential conflicts of interest,” Ade said. “Jokowi-JK should clearly outline the criteria required for each candidate… so the public would not make their choice simply based on popularity.”

Ade conceded Joko’s attempts to draw public participation in selecting cabinet members “deserves appreciation.”

“It is important that people are involved in choosing the officials who will ultimately serve them,” Ade said. “This strategy would also hopefully prevent any transactional, horse-trading politics from happening.”

The ICW is currently drawing up its own list of pros and cons on Jokowi Center’s existing list of candidates.

That report, added Ade, will be released in August.

The ICW coordinator added that the organization supported the idea of cutting down on bureaucracy by closing several ministries that are deemed ineffective, though he declined to name them.

Additional reporting by SP/Deti Mega P.

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Widodo wins Indonesian presidency as rival withdraws

"The Timing of the Great Shift" – Mar 21, 2009 (Kryon channelled by Lee Carroll) - (Text version)

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013. They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."

"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.

Democracy itself will change and you're going to see it soon. The hold-outs, the few countries I have mentioned in the past, are doomed unless they recalibrate. They're doomed to be the same as they have been and won't be able to exist as they are now with everyone changing around them.

I mentioned North Korea in the past. Give it time. Right now, the young man is under the control of his father's advisors. But when they're gone, you will see something different, should he survive. Don't judge him yet, for he is being controlled.

In government, if you're entire voting base has the ability to talk to itself without restriction and comes up with opinions by itself without restriction, it behooves a politician to be aware and listen to them. This will change what politicians will do. It will change the way things work in government. Don't be surprised when some day a whole nation can vote all at once in a very unusual way. Gone will be the old systems where you used to count on horseback riders to report in from faraway places. Some of you know what I am talking about. Government will change. The systems around you, both dark and light, will change. You're going to start seeing something else, too, so let's change the subject and turn the page. …

Widodo wins Indonesian presidency as rival withdraws

Indonesia's election commission has announced Joko Widodo as winner of this month's presidential polls. Hours before the finalized results, rival runner Prabowo Subianto withdrew from the race, claiming electoral fraud.

Deutsche Welle, 22 July 2014

Jakarta governor Joko Widodo, popularly nicknamed "Widodo," claimed just over 53 percent of the votes, according to the final count on Tuesday. Voter turnout was over 70 percent, with almost 133 million valid ballots cast in total across the giant archipelago.

Police were out in force in
Jakarta after a heated election

The results largely corroborated the unofficial "quick counts" released after the July 9 election, most of which gave Jokowi a slim lead of up to 5 percent.

After a tense election campaign, Jokowi had called on his supporters to stay home in the case of a victory on Tuesday - to avoid potential clashes with supporters of his main rival, former general Prabowo Subianto. Jakarta police mobilized in force on Tuesday anticipating possible clashes.

Rival quits at last second

Subianto withdrew from Indonesia's presidential election process hours before the final results, citing widespread fraud.

Prabowo Subianto said he did not accept,
 but would not appeal, the results

"We reject the 2014 presidential election that was legally flawed, and therefore we withdraw from the ongoing process," he said in the capital Jakarta. Prabowo said complaints from his camp about "massive, structural and systematic cheating" were ignored by officials.

"We have found instances of electoral fraud involving organizers that make this election unfair," he said, before urging his supporters to remain calm. "We will base our struggle on the constitution and laws."

Prabowo had previously called on the election commission to stop the counting process until all allegations of electoral fraud were investigated.

Prabowo's withdrawal could open him up to prosecution: candidates agree not to withdraw once they have signed up to run for the presidency. Under Indonesian election laws, pulling out of the race can theoretically be punished by up to five years in jail and a fine of up to 50 billion rupiah (3.18 million euros, $4.31 million).

msh/dr (AFP, AP, dpa)

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President Susilo Bambang Yudhoyono watches the vote recapitulation

 process along with some of his cabinet members at his private residence in

Cikeas, West Java, on Tuesday.

Jokowi-Kalla Win Presidential Election as KPU Completes Tally

Jakarta Governor Joko Widodo has just more than 53 percent of the vote nationally, over rival Prabowo Subianto who garnered just less than 47 percent — according to the official results from 34 provinces

Jakarta Globe, Markus Junianto Sihaloho, Robertus Wardhi & Yeremia Sukoyo, Jul 20, 2014

A KPU official, right, shows the official report documents with the election
 results to witnesses of both presidential candidates in Jakarta on July 20,
2014. (Antara Photo/Widodo S. Jusuf)

Jakarta. Jakarta Governor Joko Widodo has won  the presidential election with just more than 53 percent of the vote, over rival Prabowo Subianto who garnered just less than 47 percent — according to the official results from 34 provinces compiled on Sunday.

A total of 33 provincial offices of the General Elections Commission (KPU) have completed their individual tallies by early Sunday morning, with Jakarta finishing last — declaring Joko the winner with 53.08 percent of the vote over Prabowo’s 46.92 percent.

Indonesia’s newest and 34th province, North Kalimantan, had its votes counted by the KPU’s East Kalimantan branch.

The final individual tallies of the provinces have been made public in various media reports, and the Jakarta Globe has compiled the data to produce its own recap of the national tally — with the KPU only scheduled to finish and announce its final national tally by Tuesday night.

On Sunday, the KPU headquarters in Jakarta only began recapitulating data from 12 provinces.

The Jakarta Globe’s national recap of the 33 provincial tallies lands Joko — who is also known as Jokowi — and his running mate Jusuf Kalla the winners of the July 9 presidential election, collecting a total of 70.67 million votes (53.17 percent) compared with Prabowo’s 62.25 million votes (46.83 percent). There are a total of 132.92 million valid votes — representing 70.6 percent of Indonesia’s total eligible voters.

Consistent with quick counts

The result recap is consistent with the  quick counts by eight pollsters announced immediately after Indonesians cast their votes on July 9 — which had put Joko in the lead with between 51 percent and 53 percent vote over the 47 percent to 49 percent in favor of Prabowo.

Four other pollsters, citing their own quick counts, had declared Prabowo the winner with lower margins.

The recap also shows that Joko and his running mate, former vice president Jusuf Kalla, win in 23 provinces, while Prabowo-Hatta Rajasa lead in 10 provinces. Joko-Kalla thus lead by 8.4 million votes, or around 6.3 percent.

“Three biggest contributors to Jokowi-JK’s votes are Central Java, East Java and West Java,” Tjahjo Kumolo, the secretary general of Joko’s Indonesian Democratic Party of Struggle (PDI-P) and the head of his campaign team, said in Jakarta on Sunday, citing the party’s own recap of the KPU provincial data — similar to that of the Jakarta Globe.

Joko-Kalla did record an overwhelming 66.65 percent vote in Central Java, which is a traditional PDI-P stronghold, securing nearly 13 million votes, double that of Prabowo.

Although West Java was the third-largest contributor to Joko’s votes, he actually suffered a big loss in Indonesia’s most populous province, securing 9.5 million votes (40.22 percent) over Prabowo’s 14 million (59.78 percent).

Bali (another PDI-P stronghold), Bangka-Belitung, South Sulawesi (Kalla’s hometown), West Sulawesi, Papua and West Papua are among other provinces where Joko-Kalla won by an overwhelming majority.

Prabowo-Hatta, meanwhile, enjoyed an overwhelming majority in West Sumatra, West Nusa Tenggara and Gorontalo.

Joko-Kalla dominate votes in central and eastern Indonesia, and share wins with Prabowo-Hatta on Sumatra island.

Overseas, Joko-Kalla also lead with a total of 364,283 votes (53.74 percent) over Prabowo-Hatta with 313,600 votes, or 46.26 percent.

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With NDB established, Beijing turns to new bank for Asia

Want China Times, Kao Hsing and Staff Reporter 2014-07-18

A sign for the APEC 2014 second senior officials' meeting in Qingdao,
Shandong province, May 14. (File photo/CNS)

After the establishment of the New Development Bank (NDB) operated by the BRICS states on July 16, China is proposing to set up the Asian Infrastructure Investment Bank (AIIB) as another part of Beijing's bid to break the dominance of the United States and Japan-led international financial institutions.

The NDB, an alternative to the World Bank and the International Monetary Fund, is run by Brazil, Russia, India, China and South Africa.

China's next move is to launch the AIIB, which is considered a rival to the World Bank and the Japan-led Asian Development Bank.

The AIIB concept was proposed by President Xi Jinping at last year's Asia-Pacific Economic Cooperation (APEC) summit and its goal is to raise funds for infrastructure construction in Asia. In addition, the AIIB will invest in railways, road and airport construction that connects Central Asia, Middle East and Europe.

China has invited participation from 22 countries in the Middle East and Central and South Asia, as well as member states of the Association of Southeast Asian Nations (ASEAN).

Premier Li Keqiang championed the AIIB idea when meeting the prime minister of Kuwait in June. Xi also brought up the AIIB issue several times during his recent meeting with President Park Geun-hye of South Korea, and they are understood to have reached a certain consensus.

At the annual BRICS summit this year, to attract India's participation in the AIIB, Xi invited India's new prime minister, Narendra Modi, to attend the APEC summit set to be held in Beijing in November, the first time for India to attend the annual event having declined participation over the last decade.

China also hopes the invitation will prompt India to back the establishment of the AIIB as well as quell discontent in India at the NDB being headquartered in Shanghai.

Beijing plans to complete the memorandum of understanding for the structure and establishment of the AIIB by the end of this year and officially launch it during the first half of next year. It also plans to join the Eurasian Development Bank soon after.

Chinese President Xi Jinping (4-L, first row) poses with leaders of the

 CELAC group of Latin American and Caribbean states, in Brasilia, on July 17,

 2014 (AFP Photo/Nelson Almeida)

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Budi Mulya Sentenced to 10 Years Over Bank Century Bailout

Jakarta Globe, Jul 16, 2014

The former deputy governor of the central bank was sentenced to 10 years
on July 16 over his role in the bailout of Bank Century. (Antara Photo)

Jakarta. Budi Mulya, the former deputy governor of Bank Indonesia, was sentenced to 10 years by the Jakarta Anti-Corruption Court on Wednesday over his role in the bailout of the now-defunct Bank Century.

Budi was detained by the Corruption Eradication Commission (KPK) on Nov. 13, 2013 for his part in the Rp 6.7 trillion ($570 million) bailout of the bank in 2008.

He was found to have received a loan of Rp 1 billion from Century owner Robert Tantular just months before the government approved a short-term loan facility to the ailing lender.

“The approval and disbursement of the Rp 689 million FPJP [short-term funding] was an act that was against the law,” presiding judge Afiantara said.

After issuing stop-gap credit to the struggling bank, the bailout later ballooned to more than half a billion dollars. Officials involved in the bailout have maintained consistently that the environment in 2008 was such that allowing an Indonesian lender to go to the wall could have had a systemic impact on the country’s banking sector.

Budi was also told to pay a Rp 500 million fine. Prosecutors had sought 17 years in prison for Budi. They argued the defendant had committed the act while the government had embarked on an anti-corruption campaign, and that he he had tainted the reputation of the country’s central bank.

Budi said he would file an appeal.

BRICS create development bank, based in Shanghai

Yahoo – AFP, 15 July 2014

The BRICS group of emerging powers launched a $50 billion development bank Tuesday to be based in Shanghai and a $100 billion crisis contingency fund, according to a joint declaration.

The New Development Bank's first president will be from India while the board's chairman will be Brazilian, according to the declaration released at a summit in Fortaleza, Brazil.

The bank will have an initial subscribed capital of $50 billion followed by an authorized capital of $100 billion, equally shared among Brazil, Russia, China, India and South Africa.

The Contingency Reserve Arrangement will have an initial size of $100 billion and will help countries avoid "short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements."

The bank and fund are seen as counterweights to the Western-dominated World Bank and International Monetary Fund, which BRICS nations say need more reform to give emerging nations more voting rights.

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