Govt to Enact Regulation Requiring All Public Officials to Disclose Wealth

Jakarta Globe, Carlos Paath, Jan 27, 2015

Rupiah notes and US dollar bills being counted at a Bank Negara Indonesia
branch on Jan. 26, 2015. (Antara Photo/Yudhi Mahatma)

Jakarta. The Indonesian government is set to enact a regulation mandating public officials on all levels to disclose their wealth, Administrative and Bureaucratic Reform Minister Yuddy Chrisnandi said on Tuesday.

“We will issue a letter from the ministry mandating all officials without exception to disclose their wealth,” he said.

Currently, only ministers, directors general, division heads, generals, leaders of independent bodies and directors of state-owned companies are mandated by law to disclose their wealth.

The asset declarations are submitted to the Corruption Eradication Commission (KPK) to be scrutinized before and after they hold office.

Yuddy said the new requirement would be for officials on all levels.

“This [requirement] will also apply to military and police officers. Because it is proven that corruption not only involves high-ranking officials but also middle- and even lower-ranking ones,” he said. “This is a way to prevent acts of corruption.”

The declarations will be submitted to his ministry and the KPK and will be used for administrative evaluation purposes, although Yuddy did not rule out their use in legal cases.

Failure to disclose their assets may result in a stay in promotion. “So all officials who want to get promoted must follow [the new regulation],” the minister said.

Yuddy said the asset declaration drawn up by his ministry will be simpler than those designed by the KPK for top ranking officials.

“Just two pages,” he said of his ministry’s version of an asset declaration form. The form will require all officials to list among others the properties they own, their values and also how much money they have in their bank accounts.

Yuddy said that once the requirement was enacted, he wanted all public officials to immediately disclose their wealth.

“The most important thing is that they disclose [their assets first],” the minister said, adding that each ministry will then make the necessary confirmations and corrections.

Indonesia to Work With Singapore on E-Government Program

Jakarta Globe, Ezra Sihite, Jan 27, 2015

Yuddy Chrisnandi, the minister for administrative and bureaucratic reform, wants
 Indonesia to emulate Singapore's efficient bureaucracy. (Antara Photo/Widodo S. Jusuf)

Jakarta. The Indonesian government plans to enlist the help of Singaporean authorities in implementing its e-government system, having already pledged to get the support of the South Korean and Australian governments.

The three countries rank in the top of the 2014 United Nation e-Government Survey, while Indonesia came in at 105th.

“Other than South Korea, we also want to work with Singapore, whose e-government system is good,” Yuddy Chrisnandi, the minister for administrative and bureaucratic reform, said in Jakarta on Tuesday.

“Singapore has made the best use of the e-government system to disseminate information to the people, businesses and state officials,” he added.

The e-government system, in which administrative affairs will be computerized, is expected to result in a significantly streamlined bureaucracy and shorter waiting times for things like permit approvals and the issuance of ID cards and other government-sanctioned documents.

Singapore has implemented an e-government since the 1980s, to which it attributes hefty savings of time and money for the government.

Jokowi Unveils 1-Stop Permit Service For Investors

Jakarta Globe, Vanesha Manuturi & Ezra Sihite, Jan 26, 2015

President Joko Widodo. (Antara Photo/Noveradika)

Jakarta. Indonesia’s Investment Coordinating Board, or BKPM, has officially launched its one-stop investment licensing service, setting a milestone in the government’s efforts to ease and simplify investment procedures in the country.

President Joko Widodo inaugurated the service at the BKPM headquarters on Monday.

“I will continue to monitor the service for its efficiency … I also hope that [government] ministries step up their efforts to coordinate with each other and assist investors as much as possible,” Joko said. “The economy must continue to grow each year, and the key is in the state budget and investments made in our country.”

The government targets Indonesia’s  economy to grow between 5.6 percent and 5.8 percent this year, compared to an estimated 5.1 percent last year. Investments account for 31 percent of the economy, the second largest contributor after domestic consumption.

The initiative for a one-stop licensing service was launched during the administration of former president Susilo Bambang Yudhoyono. But lack of coordination among ministries, local governments and other state bodies limited the services to several basic permits.

Joko promised to revamp the initiative during his presidential campaign last year, with a pledge to appease business the community.

Twenty-one ministries and government bodies have each delegated licensing representatives, or liaison officers, to the BKPM headquarters, according to an official statement released on Monday.

On Jan. 15, the investment coordinating board rolled out a trial run of the service with 66 liaison officers at BKPM.

“[With the one-door policy], investors won’t need to travel all over Jakarta to the offices of multiple government agencies in order to chase a license,” BKPM chairman Franky Sibarani explained.

GlobeAsia

KPK, Under Attack, Finds Strength in the Public

President Joko Widodo holds a press conference at the State Palace but mentions nothing about forming an independent fact-finding team consisting of law experts to scrutinize the thinly veiled criminalization of KPK leaders

Jakarta Globe, Jan 26, 2015

Some activists demonstrate against the detainment of KPK deputy chairman
 Bambang Widjojanto by the National Police at KPK’s building in Jakarta
on Jan. 23, 2015. (Antara Photo/Ismar Patrizki)

Jakarta. Protests are mounting against what some observers increasingly believe now to be systematic efforts to incapacitate the Corruption Eradication Commission — Indonesia’s last bastion of hope against systemic corruption — which seems to have been cast adrift now with only the public as its faithful ally.

Allegations of attempts to “criminalize” the antigraft body, known as the KPK, became louder over the weekend as a second deputy chief of the commission was suddenly reported to police over an old case.

Adnan Pandu Praja was reported for alleged ownership of illegal shares in Desy Timber, a company operating in Berau, East Kalimantan.

“We have brought data of the crimes he committed in Berau. He stole from a family company,” the company’s lawyer, Mukhlis Ramlan, said shortly before filing the report to the National Police’s criminal investigation unit at the police headquarters in South Jakarta on Saturday.

Mukhlis accused Adnan, who served as a lawyer for Desy in 2006, of illegally taking over 85 percent of shares in the company while the management was involved in a family feud.

Adnan on Sunday denied the allegations, calling them an attempt to undermine the institution he now works with.

“Now it’s my turn to be reported to the police,” Adnan said in a speech before a large crowd that gathered to voice their support for the KPK on Jalan Sudirman in Central Jakarta on Sunday, as quoted by Tempo.co.

“If I must go through what B.W. [another KPK deputy chief, Bambang Widjojanto] did, then that’s the cost of fighting corruption in Indonesia,” he added.

Adnan was reported to police just a day after Bambang’s arrest on Friday in connection with a refiled perjury complaint dating back to 2010. That case had been dropped by the police after the Constitutional Court ruled on the regional election dispute at the center of the case, but was recently refiled by Indonesian Democratic Party of Struggle (PDI-P) politician Sugianto Sabran.

Some activists wear masks of KPK deputy
chairman Bambang Widjojanto in a ‘Save
KPK’ demonstration in Jakarta on Jan. 25,
2015. (Antara Photo/Zabur Karuru)

Bambang was given a conditional release several hours later, after widespread public protest against his arrest and calls for support for the KPK.

Adnan, who joined the KPK in 2013, alleged that the old case against him was dug up to weaken the KPK, noting that he had already clarified the matter during his vetting before the House of Representatives.

The two old cases were filed out of the blue against the two KPK leaders following the antigraft body’s naming of police general Comr. Gen. Budi Gunawan as a suspect over his suspiciously hefty personal bank accounts.

The suspicion was first flagged by the government’s anti-money-laundering watchdog, the Financial Transaction Reports and Analysis Center, or PPATK, in 2010. The KPK also reportedly issued a red flag against Budi when President Joko Widodo mulled recruiting him as a member of his cabinet prior to his announcement of the cabinet lineup in late October last year.

It was only early this month, however, that the KPK decided to name Budi a suspect, alarmed by the president’s nomination of him as the sole candidate for National Police chief.

But despite the KPK’s announcement of Budi’s suspect status earlier this month, Joko did not retract his nomination and the House nearly unanimously — with the Democratic Party as the only exception — endorsing Budi’s nomination just a day after he was charged. Only after a public backlash did Joko finally say he was postponing, though not scrapping, Budi’s nomination.

Critics have lambasted the president for allegedly bowing to the pressure from his party patron, PDI-P chairwoman and former president Megawati Soekarnoputri. Budi is known to be close to Megawati, having served as her security aide during her presidency from 2001 to 2004.

Besides the legal issues faced by Bambang and Adnan, KPK chairman Abraham Samad has also faced mounting attempts at character assassination.

Photos of him in intimate poses with the current Miss Indonesia, Elvira Devinamira, began circulating on the Internet as soon as Budi’s suspect status was announced. Most experts have dismissed the pictures as doctored, although less-knowledgeable people have accepted them as genuine.

In the past week, PDI-P acting secretary general Hasto Kristiyanto, a close adviser to Joko, accused Abraham of naming Budi a suspect out of spite.

Hasto claimed that Abraham had a personal vendetta against the party for its decision not to support his reported bid to be picked as Joko’s running mate in last year’s presidential election.

BLBI linked?

Antigraft activist Adhie Massardi said on Sunday that the whole mess was not limited to the long-running hostilities between the KPK and the police but stemmed from the PDI-P’s fears that its chairwoman would be the target of a KPK probe.

Adhie accused the PDI-P of trying to weaken the KPK and criminalize its leaders in the wake of an investigation into alleged irregularities in the issuance of letters of discharge for Bank Indonesia Liquidity Support (BLBI) debtors in 2002.

Adhie, from the Clean Indonesia Movement, said the PDI-P’s elites were concerned that the probe would settle on Megawati, who as president during that period approved the issuance of the letters.

A total of Rp 144.5 trillion ($12 billion) of funds were distributed to 48 banks under the BLBI program during the height of the Asian financial crisis in 1997-98.

Virtually none of the funds was repaid, with many bank executives absconding with the money. The Supreme Audit Agency (BPK) estimates the state’s losses from the fiasco at Rp 138.4 trillion.

The KPK announced in April 2013 that it launched an investigation into the BLBI case; in August last year, Abraham said the KPK would summon Megawati for questioning, though it has not done so yet.

“This [situation] has something to do with the KPK’s intensifying probe into the BLBI letters of discharge,” Adhie told a public discussion in Jakarta.

“There is a suspicion that if the KPK is allowed [to proceed with the probe], it will target Mega. There’s speculation that the KPK is being undermined so it can’t summon Mega and name her a suspect. Rumor has it that the PDI-P is using the police to fight the KPK,” he said.

President Joko Widodo holds a press conference at the Presidential
Palace on Jan. 25, 2015. (Antara Photo/Setpres/Intan)

Wanted: Independent team

With the PDI-P making no secret of its hostility toward the KPK — with the PDI-P-backed president showing little support for the antigraft body, and Hasto, the party’s number two, accusing its leader of having an axe to grind — and politicians from other parties largely silent on the whole affair, the public appears to be the only font of support for the beleaguered agency.

Critics have accused the House of having weak, if not zero, political will to support the KPK, with many legislators having been among the targets of the KPK’s antigraft war. Legislators from both the pro-government Awesome Indonesia Coalition and the opposition Red-White Coalition — who have agreed on virtually nothing since their inauguration in October — found common ground on endorsing Budi’s nomination despite his suspect status; some legislators have even threatened Joko with  impeachment for failing to follow through on inaugurating Budi.

Observers, including Adhie, have suggested that Joko form an independent fact-finding team consisting of law experts to scrutinize the thinly veiled criminalization of KPK leaders, similar to the team set up by former president Susilo Bambang Yudhoyono in 2009 when police named then-KPK deputy chairmen Bibit Samad Riyanto and Chandra M. Hamzah as suspects. With the help of the so-called Team of Eight, the charged were found to have been trumped up, and the police general behind them, Susno Duadji, was later tried and convicted on two separate corruption charges.

On Sunday night, Joko held a press conference at the State Palace in Central Jakarta to address the issue. But although he trotted out a group of prominent legal experts to the televised event, the president mentioned nothing about forming such a fact-finding team.

He again issued a statement that critics said lacked any substance and that feigned to be neutral but instead steered clear of the core of the problem, which was the series of retaliatory attacks against the KPK — the most highly regarded government institution in Indonesia — by the police, which vies with the House each year for the ignominious honor of being the most corrupt public institution in the land.

“There should be no more criminalization. I repeat, no more criminalization,” Joko said.

“The legal process against both KPK and police personnel must be made clear as day, must be made transparent,” the president added, not elaborating on any real measures to clear up the situation.

Former Constitutional Court chief justice Jimly Asshiddique was among the six senior law experts present at the press conference — alongside University of Indonesia law professors Hikmahanto Juwana and Bambang Widodo Umar, former National Police deputy chief Oegroseno, and former KPK deputy chiefs Tumpak Hatorangan Panggabean and Erry Riyana.

Jimly said they had been asked to provide counsel to the president regarding the conflict between the KPK and the police but that there was no immediate plan to set up a fact-finding team.

“We’ve been invited here personally. There’s no decision yet to make us a formal team, but we’ve been asked to tentatively give advice concerning this matter,” Jimly told the same press conference.

Further Coverage

Editorial: In Choosing Sides, We Are All the KPK

Critics Lash Out at Call for Immunity for KPK Leaders

Jakarta Globe, Markus Junianto Sihaloho, Jan 26, 2015

Fadli Zon, left, a deputy speaker of the House of Representatives, is among
 critics of a proposal to grant immunity from prosecution to leaders of the
national antigraft commission. (Antara Photo/Andika Wahyu)

Jakarta. A request by Indonesia’s antigraft commission for immunity from criminal prosecution for its leaders has prompted an outcry from critics who warn it would escalate tensions with the police.

“I wholeheartedly disagree with issuing a regulation in lieu of law” — or perppu — “that would grant immunity to the leaders of the KPK,” or Corruption Eradication Commission, said Hendrik Sirait, the secretary general of the Alliance of Civilians for Great Indonesia, or Almisbat, which was set up to support Joko Widodo’s presidential bid last year.

Hendrik said such a regulation would render the KPK leaders above the law and would be considered an injustice and a discriminative policy by other law enforcement institutions.

“I’m afraid that the National Police will ask for the same thing because they also face legal problems and accusations,” he added.

The KPK and a former deputy justice minister, Denny Indrayana, have called on President Joko to pass the perppu on immunity, which would not require approval from the House of Representatives, following the arrest by the police on Friday, and conditional release several hours later, of KPK deputy chairman Bambang Widjojanto in connection with a refiled perjury complaint dating back to 2010.

A day after Bambang’s arrest, another KPK deputy chairman, Adnan Pandu Praja, was reported to the police by the lawyer for a timber company who accused him of illegally acquiring shares while advising the company during a management feud in 2006.

The shady revival of these years-old cases by the police comes in the wake of the KPK naming Comr. Gen. Budi Gunawan, Joko’s nominee for National Police chief, a suspect in connection with eye-watering sums passing through his bank accounts, as flagged by the Financial Transaction Reports and Analysis Center, or PPATK, the government’s anti-money-laundering watchdog.

House Deputy Speaker Fadli Zon also warned against granting immunity to the KPK’s leaders, saying it would be a “betrayal of the law.”

“Our Constitution states that every citizen is equal before the law. Nobody is above the law, the KPK and the police are equal, therefore there should not be any impunity,” he said.

The KPK’s Adnan previously said he would submit a request for Joko for the perppu because the KPK was under attack. He said such a measure was not meant to put the KPK leadership above the law, but to protect it from its “enemies,” given the police’s history of going after KPK commissioners when its own top officials face an antigraft probe.

“Criminalizing the KPK means hampering corruption eradication efforts,” Adnan said.

Denny, the deputy justice minister under former president Susilo Bambang Yudhoyono, agreed that a perppu on immunity for the KPK’s leaders was urgently needed in such an emergency situation.

“One by one the KPK leaders are being targeted. The president must issue the perppu to grant the KPK leaders immunity during their tenure,” he said.

KPK Seizes Homes, Cars and Cash From E. Java Politician

Fuad Amin Imron, speaker of the Bangkalan district legislature, was arrested for allegedly taking a kickback from an energy company

Jakarta Globe, Suara Pembaruan, Jan 22, 2015

Fuad Amin Imron, the speaker of the Bangkalan district legislature and a former
head of the district, was arrested in December. (Antara Photo/Hafidz Mubarak A.)

Jakarta. The Corruption Eradication Commission (KPK) has seized two Surabaya homes, six cars and Rp 100 million ($8,000) in cash from an East Java politician suspected of having taken kickbacks from an energy company in connection with a natural gas concession.

Fuad Amin Imron, the speaker of the Bangkalan district legislature and a former head of the district, was arrested in December and is currently being held in Jakarta.

KPK spokesman Priharsa Nugraha confirmed late on Wednesday that the cars seized were mostly luxury vehicles, including a Toyota Alphard a Toyota Land Cruiser.

Earlier on Wednesday, the anti-graft agency confirmed that an activist in East Java who was recently ambushed and shot by unknown gunmen had been helping it in its investigation of Fuad.

Mathur Husairi, 47, the director of a local group named Islamic Center for Democracy, is in recovery at Soetomo General Hospital in Surabaya after he was shot by two unidentified gunmen at 2 a.m. on Tuesday.

Bambang Widjojanto, one of the KPK’s deputy chairmen, said that Mathur had been tipping off the agency about corruption cases plaguing his home district of Bangkalan, on the island of Madura.

Although denying that Fuad’s arrest was directly linked to a report from Mathur, Bambang said law enforcement officers should protect all antigraft activists, particularly those who had received numerous threats, including Mathur. “Hopefully in the not-so-distant future we will know the true motive behind the shooting,” Bambang said.

Jakarta Sets Plan to Reform City-Owned Firms

Jakarta Globe, Lenny Tristia Tambun,  Jan 22, 2015

A worker repairs a pipe in West Jakarta. City-owned water supplier PAM
Jaya loses up to 42 percent due to leaks. (Antara Photo/Fikri Adin)

Jakarta. The Jakarta government plans to liquidate and divest underperforming city-owned firms in a bid to shift spending to income-generating companies.

Jakarta Governor Basuki Tjahaja Purnama said of the capital’s 23 companies, only 10 are making a profit, and he vowed to fix those that, according to him, are riddled with corruption.

Analysts said Basuki’s reform of the city-owned firms should be copied by regions across the country. According to 2012 data from the Home Affairs Ministry, there are 1,007 firms in Indonesia that are owned by regional governments, with assets totaling almost Rp 400 trillion ($32 billion). But two-thirds of them are loss-making.

Jakarta Secretary Saefullah said the administration would no longer tolerate city-owned companies that continuously lose money, likening them to “an illness” inside the local government.

“We will liquidate firms with no viable business [plans],” he said.

Saefullah said the government would map out which underperforming firms are beyond saving and which require an overhaul.

“What is clear is the city firms should provide benefit to the city government and submit dividends to city coffers,” he said.

The Jakarta City Council recommended selling or dissolving printing company Cemani Toka and taxi operator Ratax, which have been operating at a loss for five and three years, respectively.

Saefullah confirmed that the two firms will be disposed of but it is not yet certain whether the government will sell them or dissolve them altogether.

The city administration is meanwhile also monitoring the performance of Food Station Tjipinang Jaya — a rice and basic staples distributor — and Dharma Jaya — which supplies beef across Jakarta.

“How can a company selling rice operate at a loss? The same with beef? Who doesn’t eat rice and beef? There is ample supply, and rising demand. This is weird,” the city secretary said.

Basuki said it was unclear which firms would be up for liquidation or divestment, adding that the city government was still studying them. But he promised that action was certain.

“We just don’t know how many yet,” he said.

Basuki also said the government has stopped providing underperforming firms with capital injections.

“These companies have been asking for capital increases year after year, but they are still operating at a loss. Well no more,” he said.

In 2012, the city administration divested four of its firms, generating a little more than Rp 14.9 billion, including property developer Jaya Nur Sukses, a testament to just how little these firms are worth.

The new plan comes after the Jakarta governor announced a massive overhaul of city-owned firms.

Basuki said the government planned to conduct an open recruitment to find senior executives for these firms. He added that there would be some companies “where all [executives] will get replaced.”

Basuki said the replacements for some posts have already been selected.

The governor added that he was looking for people who can turn underperforming companies around and get them to change the losses into profits.

“The most important thing is that they have integrity and that they are honest,” he said. “I’d rather pick an idiot [to run a firm] then a dishonest person. You can teach an idiot and guide him. But you’re screwed if you pick someone who is dishonest.”

Corruption

The governor said he was not discounting suspicions that the companies were losing money due to corruption.

Basuki said the Financial Transaction Reports and Analysis Center (PPATK), the country’s money-laundering authority, has detected several suspicious transactions “involving directors of city firms,” including those who are still active.

Basuki signed an agreement with the PPATK on Wednesday to immediately report to the city government if there were irregular transactions in the financing of city projects or city officials’ personal accounts.

The agreement, which also includes the monitoring of cash transactions by the city’s employees, significantly lowers the amount of cash Jakarta civil servants may carry from Rp 100 million to Rp 25 million.

“I appreciate the governor’s policy to use a minimum cash transaction, because any transaction involving a large amount of cash is very susceptible to graft and bribery. This is why PPATK urges the limitation of cash transactions,” PPATK chief Muhammad Yusuf said after the signing.

He said the PPATK was committed to helping the Jakarta government prevent money laundering.

Yusuf said the agency was ready to help investigate whether or not a public official has a clean track record when they apply for strategic official positions.

Basuki said the cooperation with the PPATK was aimed at limiting graft in the capital.

“With this non-cash transaction system it will be more difficult [to commit graft]. Generally the work system in Jakarta is getting better because most people want to work properly,” Basuki said.

However, the agreement between the city and the PPATK is not a law and civil servants found in breach of the regulation will only be subject to disciplinary action. It will not be a criminal offense for a city employee to exceed the Rp 25 million limit.

Mergers

Basuki said the Jakarta administration was also looking to merge firms, particularly those operating in the same field.

The city currently has seven companies in property development and five in the food trade and supply.

“It will be more efficient this way. Why do we even bother having so many firms operating in the same business? Take Sarana Jaya and Jakpro [Jakarta Propertindo] for example. They are similar. Why not merge them?” the governor said.

“I’m still figuring out the best solution. Should we merge them? Should we leave them operating individually? Or should we form a holding company?”

Among the executives the city is mulling to replace is Sri Widyanto Kaderi, director of water company Perusahaan Air Minum Jaya (PAM Jaya).

Basuki said Sri’s fate depends on her success in taking over the operation of private water supplier PAM Lyonnaise Jaya (Palyja).

“Once the acquisition is done, then we will evaluate, do we need to replace [Sri] or not,” he said.

Jakarta Secretary Saefullah said Basuki is gravely concerned about the performance of PAM Jaya, particularly due to the massive leakages occurring in the distribution of fresh water managed by the company.

“The amount of water lost is outrageous; up to 42 percent,” he said. “At 42 percent, it is no longer a leak, it is like a ship listing to one side and about to sink.”

The government has set a target for PAM Jaya to reduce the leakage to no more than 30 percent.

Job creation

Former Home Affairs Minister Gamawan Fauzi recently said Indonesia must quickly reform regional companies because they can create jobs for Indonesians, while also supporting development.

“These firms should be bigger and more profitable as they actually have advantages compared to privately run companies,” he said.

Meanwhile, Indonesia Corruption Watch (ICW) researcher Emerson Yuntho said most of the firms have been used as cash cows by the regional leaders and lawmakers.

“They lose money because they only serve the politicians. It’s time for the KPK [Corruption Eradication Commission] to step in and clean up these firms,” he said.

Further Coverage

Editorial: Ahok’s Profit Push for City Firms to Pay Off

Basuki Restricts City Govt Cash Transactions to Rp 25 Million

Jakarta Globe – AFP, Fana FS Putra,  Jan 21, 2015

A woman holds rupiah banknotes in front of a Bank Indonesia mobile bank in
Jakarta in this July 15, 2013 file photo. (Reuters Photo/Beawiharta)

Jakarta. Governor Basuki Tjahaja Purnama has signed an agreement with Indonesia’s money-laundering authority to restrict cash transactions by city employees using public money to Rp 25 million ($2000).

The Financial Transaction Reports and Analysis Center (PPATK) signed the memorandum of understanding with Basuki’s office on Wednesday. PPATK chief Muhammad Yusuf signed the agreement, which significantly curtailed the amount of cash Jakarta civil servants may carry from the existing Rp 100 million.

“I appreciate the governor’s policy to use a minimum cash transaction because any transaction using a large amount of cash is very susceptible to graft and bribery. This is why PPATK urges the limitation of cash transaction,” Muhammad said after the signing.

Muhammad said PPATK was committed to helping the Jakarta government prevent money laundering.

He said the agency was ready to help investigate whether or not a public official was clean before they joined the post auction for strategic official positions.

Basuki said the cooperation with PPATK was aimed at  limiting graft in the capital.

“With this non-cash transaction system it will be more difficult [to commit corruption]. Generally the work system in Jakarta is getting better because the majority of people want to work properly,” Basuki said.

“In Jakarta we will limit the maximum cash withdrawal to Rp 25 million [per transaction],” the governor said. “I hope public officials in Jakarta will forget about the past and just be grateful with what we earn today.”

The agreement is not, however, a law and civil servants found in breach of the regulation will only be subject to disciplinary action. It will not be a criminal offense for a city employee to exceed the Rp 25 million limit.

Direct Elections ‘Bring Democracy Back’ to Indonesia

‘People’s Victory’ The House has ratified the emergency government regulation that restores direct elections of regional leaders

Jakarta Globe, Markus Junianto Sihaloho & Yustinus Paat,Jan 21, 2015

Ministers and other members of House Commission II after signing the perppu
 in to law. All parties in the House have committed their support to direct elections,
 though all but the Democratic Party have argued for some revision.  (Antara Photo/
Akbar Nugroho Gumay)

Jakarta. The House of Representatives on Tuesday ratified into law an emergency government regulation that restores direct elections of regional leaders in Indonesia.

The ratification quickly drew praise from analysts who said that Indonesia’s democracy was back on track.

“It’s a people’s victory,” said Arie Sudjito, a political expert from the Gadjah Mada University in Yogyakarta.

In September, the House agreed on a proposal put forward by Susilo Bambang Yudhoyono’s government to give local legislative councils the power to appoint district heads, mayors and governors, ending nearly a decade of direct elections.

The move sparked anger from people across the country, accusing the House and Yudhoyono of betraying the people, and claiming Indonesia’s democracy had returned to a system similar with that of Suharto’s totalitarian New Order regime.

Many also feared the opposition would dominate the regional leaders posts because they dominate most of the legislative councils, opening the possibility for them to block any policies by President Joko Widodo, who at that time was declared the president-elect by the General Elections Commission (KPU) after he defeated Prabowo Subianto in a tightly contested  national election.

After seeing the public anger, Yudhoyono backpedaled, saying that he never wanted indirect elections as his Democratic Party had proposed as a revision to the existing system of direct elections.

He quickly proposed an emergency government regulation, known as perppu, while declaring that indirect election law was scrapped.

“Now, the perppu has become a law. So we can begin direct elections in many regions across the nation,” Arie said.

But the KPU would not be able to make preparations for some 200 local elections, set to be held simultaneously this year, as nine of the 10 factions at the House demanded some changes in the newly passed law.

“Each faction has presented its views, which in general accepts the perppu to be ratified into law,” said Rambe Kamarul Zaman, chairman of the House Commission II, which oversees home affairs.

Rambe was referring to the government regulation in lieu of law passed by former president Susilo Bambang Yudhoyono during his last days in office.

The perppu annulled the 2014 regional elections law, which eliminated regional elections and instead provided authority for local legislatures to appoint governors, district heads and mayors.

However, Rambe said that most factions have urged for some changes to the new law.

“We will propose a bill, drafted by House Commission II, which will improve the new law pertaining to candidate eligibility, stages of elections and public hearings, among others,” the Golkar Party politician said.

The Democratic Party, chaired by the former president, was the only party that opposed any revision arguing the law is already perfect.

“We don’t want any more revisions. The regulation itself already contains enough substance on the direct regional election system and revisions from the previous law. It already includes suggestions to make the elections better,” Commission II member Saan Mustopa, a Democrat, said on Tuesday.

Moreover, making revisions will take time and Indonesia needs the new law immediately, Saan added, as more than 200 local elections are set to be held this year.

The process of preparing more changes will affect the preparations for local elections, he stressed.

“It will be difficult for the KPU to do its job,” the politician said.

Last year, parties from the opposition Red-White Coalition, including representatives of the National Mandate Party (PAN), the Golkar Party and the Great Indonesia Movement Party (Gerindra), voted in favor of abolishing regional elections.

But their stance changed after the Democratic Party announced that it would be  leaving the bloc.

All 10 factions at the House on Monday expressed their commitment to ratify the perppu. House Speaker Setya Novanto called on Commission II members to expedite the drafting of the new bill and conclude the ratification process before the House sitting period ends on Feb. 18.

“I have asked each faction to conclude the revision during this sitting period so they would not disrupt the simultaneous regional elections schedule,” said Setya, who is also a Golkar politician.

Meanwhile, Deputy Speaker Fadli Zon, of Gerindra, said the revision would not change the substance of the newly passed law. He added that the changes “are very technical.”

Home Affairs Minister Tjahjo Kumolo said the government was open to revisions and pledged to work with the House “intensively” on the planned revisions.

Why didn't Indonesia's Jokowi stop the execution of drug traffickers?

Indonesia has ignored last-minute appeals by foreign leaders and executed six people convicted of drug trafficking. Analyst Yohanes Sulaiman tells DW President Jokowi is trying to convey the image of a "decisive leader."

Deutsche Welle, 20 Jan 2015

Brazil and the Netherlands recalled their ambassadors from Indonesia on January 18 after Jakarta ignored their pleas and executed two of their citizens by firing squad along with four other drug offenders from Vietnam, Malawi, Nigeria and Indonesia. The six were the first people executed under new Indonesian President Joko "Jokowi" Widodo, who has disappointed rights activists by voicing support for capital punishment.

President Jokowi defended the executions, saying those convicted of drug trafficking will not receive a presidential pardon since Indonesia is facing an "emergency" over drug use. Jakarta had an unofficial four-year moratorium on executions until 2013, when five people were put before the firing squad. There were no executions last year.

In a DW interview, Indonesia analyst Yohanes Sulaiman says President Jokowi appears to have been under no apparent pressure to restart executions and that he is simply trying to convey the image of being a decisive leader in a country where there seems to be public support for the death penalty.

DW: Why does Indonesia have such a strong policy against drug traffickers?

'Overt international pressure to stop the 

executions will backfire spectacularly,' 

says Sulaiman

Yohannes Sulaiman: Drug abuse is a big problem in Indonesia. Each year the number of addicts is increasing. Since it is believed that the majority of drugs in Indonesia are imported, the government believes that by imposing harsh punishment on traffickers, they could reduce or halt the importation of drugs.

Why has President Joko Widodo decided to stick to the country's policy of executing drug offenders?

There is actually no overt pressure from either the party, the media, or the public. However, while there are a lot of discussions on death penalty, generally the public and media in Indonesia are clamoring for the death penalty to be expanded to people engaged in corruption.

A quick glimpse of the media in the past couple of years reveals that there have been few discussions on the death penalty being imposed on drug traffickers - except during a couple of occasions when there were new developments such as the release of Schapelle Corby, an Australian who was convicted and imprisoned for drug smuggling. So the sudden restart of executions comes out of the blue.

My guess is that President Jokowi wants to show "results" and his "decisiveness" especially in the first 100 days of his administration. Keep in mind that the issue of "being decisive" has hobbled Jokowi since the election campaigning, where the opposition kept claiming that he was and would be a very weak leader.

It seems to me that burning ships engaged in illegal fishing and re-imposing the death penalty are things that he could do to stress and buttress the idea that he is a strong, decisive leader, while giving him a huge boost in popularity. In fact, if he stops executions now, he could actually lose a huge amount of prestige and popularity. The death penalty genie is already out of the bottle.

How do you think the latest executions will affect Indonesia's relations with nations such as Brazil or the Netherlands?

I don't see any long-term damage in ties between Indonesia and the Netherlands. Indonesia is one of the most important countries in Southeast Asia and, one could argue, even in the world, thanks to its demographic and geostrategic position. The Dutch have a strong economic relationship with Indonesia - the Netherlands is one of the five main investors in Indonesia. The situation is similar with Brazil, with bilateral trade booming.

Sulaiman: 'The death penalty is
 popular in Indonesia'

Furthermore, both Netherlands and Brazil have close political ties with the country. It is therefore very doubtful that both countries would risk this strong relationship. So while there will be a short-term dip in relations, I don't think this will have a strong impact in the long run.

What about the reactions from human rights groups?

The human rights groups are obviously disappointed, considering many believed that Jokowi would have much better track record in terms of human rights than his electoral rival Prabowo Subianto, who was suspected of being involved in human rights abuses back during the era of Indonesian strongman Suharto.

However, the main question is: Who voted for Jokowi? As already mentioned, the death penalty is popular in Indonesia even though you can argue that its effectiveness is overrated and it is not applied fairly.

What's important is to convey the image that you have a decisive president willing to impose the death penalty on those who are bent on poisoning the minds of the youths with drugs. That could be the image that wins the next election - or shows at least that the president is doing something in the first 100 days of his administration.

Will diplomatic appeals help prevent other executions?

It is a difficult question to answer because there are plenty of factors that might influence this. Obviously, overt international pressure, I think, will backfire spectacularly. The last thing Jokowi wants to have is the image of him kowtowing to foreign governments and pardoning drug smugglers on the death row.

Sulaiman: 'The government believes it
could halt the importation of drugs by
imposing harsh punishment on traffickers'

The opposition and the media would have a field day condemning the government and that also runs counter to the image that Jokowi wants to cultivate, which is the image of him as a "decisive leader" who wants Indonesia to be respected abroad.

I think diplomatic appeals, done quietly and with some incentives behind it, could prevent the executions. The death penalty genie is already out of the bottle, so there's no way that Jokowi could declare that he would stop the executions.

But, he could use the oldest trick in the book: just do nothing and people will forget about it. In order to do that, though, the Australians should put something on the table in exchange for another moratorium on the death penalty. That might work, but it has to be done very quietly.

Yohanes Sulaiman is Lecturer in International Relations and Political Science at the Indonesian Defense University.

Related Articles:

Foreign Ministry: Netherlands, Brazil Ties Not Harmed, Oz Efforts ‘Respected’
Indonesia Says Diplomatic Relations Will Not Suffer Because of Executions

Amid Execution Outcry, AG Says Respect Indonesia’s Laws

Brazil and Netherlands recall Indonesia ambassadors over drug executions

Indonesia executes six drug convicts, five of them foreigners

Last ditch efforts to stop Indonesia executing Utrecht man

Hundreds of Indonesian Migrant Workers Repatriated

Jakarta Globe, Jan 19, 2015

There were 4.3 million Indonesians working abroad in 2012, according to official
data from the BNP2TKI. The majority are woman. (EPA Photo/Mast Irham)

Jakarta. More than 480 Indonesians who were living or working in Saudi Arabia without the correct documentation have arrived home.

The 482 Indonesians, 64 of whom were children under 12, were welcomed back into the country on Monday.

Nusron Wahid, head of Indonesia’s migrant workers agency, or BNP2TKI, said the arrival was the first phase of President Joko Widodo’s plan to repatriate migrant workers stranded abroad.

The majority of the migrants were overstayers that had left six to ten years ago, Nusron said in a statement. Most had encountered administrative problems or run away from their patrons.

There were 4.3 million Indonesians working abroad in 2012, according to official data from the BNP2TKI. The real figure, however, was estimated to be at least double that — and perhaps as much as four times as high — according to the International Labour Organization (ILO).

Saudi Arabia and Malaysia are the most popular destinations.

Nusron said the government would provide work and entrepreneurship training for the workers, but promised to help them if they decided to return.

“We’re now trying to make a new contract with the Saudi Arabian government that includes a new minimum wage and new protection scheme,” he said. “We also offer help for those who want to come home.

“We already have a budget to give them protection as well as development in the food industry, creative industry, and tourism.”

Related Articles:

Jokowi to Scrap ID Card for Indonesian Migrant Workers
Minister Promises Better Days Ahead for Indonesian Migrant Workers