Building an equal partnership of mutual respect

The Jakarta Post, Retno LP Marsudi, Foreign Minister of Indonesia, Jakarta,March 11, 2020

President Joko Widodo (right) accompanied by First Lady Iriana Joko Widodo (second left)
and Dutch King Willem Alexander (second right) accompanied by Queen Maxima planting
trees during a state visit to Bogor Palace, West Java, Tuesday (10/3/2020). (Antara/
Sigid Kurniawan)

“The ongoing global economic and geopolitical volatility will not keep Indonesia and the Netherlands from advancing their long-standing cooperation” — that may be the right tone to begin the narrative on the state visit of King Willem-Alexander and Queen Maxima to Indonesia.

On Tuesday, President Joko “Jokowi” Widodo greeted the Dutch king and queen at Bogor Palace in West Java.

The visit sends the clear message that the two countries aspire to advance their ties going forward. It will surely create a new momentum for the Indonesian-Dutch partnership. The visit also instils not only increased confidence of Dutch investment in Indonesia but also strategic trust in the long run.

The visit produces numerous concrete deliverables in various sectors at the government-to-government as well as the business-to-business level. These include eight government initiatives in important sectors such as sustainable palm oil production, cooperation on infectious diseases control, waste management, the circular economy, water management, aviation cooperation, capacity-building of healthcare professionals, as well as women, peace and security.

On the business side, the king’s 190-strong business delegation has met with hundreds of Indonesian business counterparts and concluded investment and business deals amounting to US$1 billion. These include agreements on dairy products, oil and gas, agriculture, infrastructure and renewable energy.

However, these achievements did not come overnight. In fact, in the last seven decades, both sides have taken significant steps to strengthen bilateral ties.

I was the Indonesian ambassador in The Hague in 2013, when Indonesia and the Netherlands signed a joint declaration on a comprehensive partnership that laid out the modalities for concrete cooperation. This was an important building block to mature our bilateral cooperation into what we have today and what we will harvest tomorrow.

After more than 70 years, it is undeniable that the bond between the two countries has had its share of challenges. While we cannot deny the past of Indonesia-Netherlands relations, we can choose to fully capitalize on the potential of future cooperation for the benefit of both nations.

Read also: A time to remember

Therefore, the goal for our shared future must be clear, which is pursuing a forward-looking partnership that really benefits both countries and peoples.

There are three things that the two countries should advance together to attain common goals for a solid and mutually beneficial partnership.

First and fundamentally, both countries must remain committed to the common values of mutual respect and principles of sovereignty and territorial integrity.

Second, the Indonesian-Dutch partnership must produce long-term and concrete economic benefits for our two peoples.

The Netherlands is and should continue to be Indonesia’s strategic partner for trade and investment. In 2019, the Netherlands was Indonesia’s largest investment partner in the European region, the second-largest trading partner and the fourth-largest tourism partner.

Our political solidarity in furthering the common cause of sustainability is also strong. In promoting sustainable palm oil in Europe, for instance, it is evident that we can rely on the Netherlands as our friend. Last year, together with my colleague, Sigrid Kaag, the Dutch minister for foreign trade and cooperation development, we signed a memorandum of understanding (MoU) on joint production of sustainable palm oil in New York, the United States. King Willem-Alexander’s current visit has also brought an impetus toward the progression of sustainable production of palm oil through the conclusion of a technical arrangement that will focus on capacity-building for Indonesian smallholder farmers.

This is a good reflection of how trust is an important pillar of bilateral cooperation, as also exemplified through the Netherlands’ support in the establishment of the Indonesia-European Union Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade in 2016.

Third, Indonesia and the Netherlands must continue to promote the universal common values of multilateralism, diplomacy and democracy, promoting habits of dialogue and peaceful dispute settlement to tackle shared global challenges amid rising tensions, intolerance and unilateralism.

Peacekeeping and counterterrorism are among our signature areas of collaboration on the world stage.

Indonesia and the Netherlands were among the core countries facilitating and supporting the Untied Nations' secretary-general’s Action for Peacekeeping (A4P) initiative to rally member states and other crucial stakeholders to fulfil their obligation in strengthening UN peacekeeping operations.

Both nations also need to stand shoulder to shoulder in the global fight against terrorism and violent extremism.

Deepening the promotion of democracy, pluralism and tolerance are other important areas of cooperation to further develop. The Bali Democracy Forum could become the platform to jointly advance these shared values.

Women, peace and security shall be another hallmark of our bilateral cooperation. The partnership aspires to deepen the capacity of women to promote peace and security, in line with the formation of the ASEAN Women Mediators Network and the Afghanistan-Indonesia Women Network last March.

Read also: King Willem-Alexander, please recognize Indonesia’s Independence Day

In conclusion, another historical step was taken with the king of the Netherlands’ visit to Indonesia, in the very year when Indonesia celebrates its 75th year of independence.

The history binding our two countries together is not an easy one. This dark period should not be repeated in the future.

King Alexander stated that “today, we warmly congratulate the people of Indonesia as you celebrate 75 years of independence. The past cannot be erased and will have to be acknowledged by each generation in turn.” King Alexander also expressed his regret and apologized for excessive violence on the part of the Dutch in those years.

Let us together build a better and stronger relationship, one that is based on mutual respect and mutual interests.

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.

King Willem-Alexander and Indonesian president Joko Widodo. Photo: AP Photo/
Achmad Ibrahim, Pool 

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(Antara Photo/Sigid Kurniawan)

Bat for sale at Indonesia's wildlife market despite virus warning

Yahoo – AFP, February 12, 2020

Scientists are debating how the novel coronavirus, which has killed more than
1,100 people in China and spread to dozens of countries around the world,
was transmitted to humans (AFP Photo/Ronny Adolof Buol)

Bats, rats and snakes are still being sold at an Indonesian market known for its wildlife offerings, despite a government request to take them off the menu over fears of a link to the deadly coronavirus.

Vendors at the Tomohon Extreme Meat market on Sulawesi island say business is booming and curious tourists keep arriving to check out exotic fare that enrages animal rights activists.

But scientists are debating how the new virus, which has killed more than 1,100 people in China and spread to dozens of countries around the world, was transmitted to humans.

A wildlife market in Wuhan, the epicentre of the virus, is thought to be ground zero and there is suspicion it could have originated in bats.

The possible link wasn't on many radar screens at the Indonesian market, however.

Vendors at the Tomohon Extreme Meat market on Sulawesi island say

business is booming (AFP Photo/Ronny Adolof Buol)

Its grubby stalls feature a dizzying array of animals including giant snakes, rats impaled on sticks and charred dogs with their hair seared off by blowtorches -- a gory scene described by some critics as "like walking through hell".

Bat seller Stenly Timbuleng says he's still moving his fare for as much as 60,000 rupiah ($4.40) a kilogram to buyers in the area, where bats are a speciality in local cuisine.

"I'm selling between 40 and 60 kilograms every day," the 45-year-old told AFP.

"The virus hasn't affected sales. My customers still keep coming."

Restaurateur Lince Rengkuan -- who serves bats including their heads and wings stewed in coconut milk and spices -- says the secret is preparation.

"If you don't cook the bat well then of course it can be dangerous," she said.

Stalls at the Tomohon Extreme Meat market on Sulawesi island feature

a dizzying array of animals (AFP Photo/Ronny Adolof Buol)

"We cook it thoroughly and so far the number of customers hasn't gone down at all."

This despite a request from the local government and the health agency to take bats and other wildlife out of circulation -- a call that has been all but ignored.

"We're also urging people not to consume meat from animals suspected to be carriers of a fatal disease," said Ruddy Lengkong, head of the area's government trade and industry agency.

Indonesia has not yet reported a confirmed case of the virus.

In the capital Jakarta, vendors selling skinned snakes and cobra blood on a recent Saturday night didn't have any trouble finding takers.

"It's good for you, sir," said one vendor of his slithering fare.

"Cures and prevents all diseases."

Indonesia arrests nearly 200 over raging forest fires

Yahoo – AFP, September 16, 2019

The fires -- usually started by illegal burning to clear land for farming -- have
unleashed choking haze across Southeast Asia (AFP Photo/ADEK BERRY)

Indonesia has arrested nearly 200 people over vast forest fires ripping across the archipelago, police said Monday, as toxic haze sends air quality levels plummeting and sparks flight cancellations.

Jakarta has deployed thousands of personnel to battle blazes that are turning land into charred landscapes and consuming forests in Sumatra and Borneo islands, where thousands of schools have been shut over health fears.

The fires -- usually started by illegal burning to clear land for farming -- have unleashed choking haze across Southeast Asia, triggering diplomatic tensions with Indonesia's neighbours.

On Monday, authorities said they had arrested some 185 people suspected of being involved in activities that led to out-of-control fires sweeping the country.

"Indonesian Police will enforce the law against anyone who is proven to have carried out forest and land burning, whether it was done intentionally or through negligence," National Police spokesman Dedi Prasetyo told reporters in Jakarta.

Indonesia's peat fires: a smouldering problem (AFP Photo/John SAEKI)

"This is a last resort. The most important thing is prevention."

Four corporations were also being investigated, he added.

Last week, Indonesia sealed off dozens of plantations where smog-belching fires were blazing, and warned that owners -- including Malaysia and Singapore-based firms -- could face criminal charges if there was evidence of illegal burning.

Some of the most serious fires occur in peatlands, which are highly combustible when drained of water to be converted into agricultural plantations.

Thick haze in Borneo -- where air quality levels have plummeted to "dangerous" levels in some areas -- caused the cancellation of about a dozen flights Sunday, national airline Garuda said.

Rival Lion Air said about 160 Borneo flights had been affected at the weekend.

Meanwhile, nearly 150,000 people have been treated for acute respiratory infections linked to the haze in recent months, according to Indonesian health authorities.

Nearly 150,000 people have been treated for acute respiratory infections 

linked to the haze in recent months (AFP Photo/Str)

While forest fires are an annual problem, the situation this year has been worsened by drier weather in Indonesia, with diplomatic tensions soaring as toxic smog drifts over to neighbouring Malaysia and Singapore.

The haze pushed Singapore's air quality to unhealthy levels for the first time in three years at the weekend.

In 2015, Indonesia suffered its worst forest fires for almost two decades, which dramatically increased its greenhouse gas emissions.

Huge fires tearing through the Amazon are also compounding concerns about the long-term impact of such blazes on keeping global temperature levels stable.

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Indonesia is battling forest fires causing toxic haze across southeast Asia with aircraft, artificial rain and even prayer, President Joko Widodo said during a visit to a hard-hit areahttps://t.co/eyIkMCRURG

— AFP news agency (@AFP) 17 september 2019

Indonesia eyes moving capital from congested Jakarta

Yahoo – AFP, April 29, 2019

Jakarta is home to some 30 million people and is also one of the world's fastest
sinking cities due to excessive groundwater extraction (AFP Photo/ADEK BERRY)

Jakarta (AFP) - Indonesia is considering a plan to move its capital away from sprawling megalopolis Jakarta, officials said Monday, but any jump to a new city could still be years away.

The idea of moving Indonesia's seat of government from an urban conglomeration of nearly 30 million people with some of the world's worst traffic jams has stretched on for decades.

Low-lying Jakarta is also prone to annual flooding and is one of the world's fastest sinking cities due to excessive groundwater extraction.

On Monday, urban planning minister Bambang Brodjonegoro said the long-stalled relocation plan won approval from President Joko Widodo who favoured moving the capital away from Indonesia's most populous Java island.

Jakarta, which suffers billions of dollars in annual congestion-and-flood linked economic losses, would remain the country's financial hub.

"(Widodo) decided on ... the option to relocate the capital," Brodjonegoro said after a cabinet meeting.

In a statement before the meeting, Widodo expressed support for the idea, but he did not give an alternate location or a timeline for any move.

"In the future, would Jakarta be able to carry the double burden of being both the centre of government and its business centre?" he asked in the statement.

"If we prepare well from the very beginning, this great (relocation) idea could be realised," he added.

During his re-election campaign, Widodo pledged to spread economic growth more evenly in the nation of 260 million.

He won a second term this month, according to unofficial poll results.

Local media have reported that a possible new capital would be Palangkaraya city on the island of Borneo.

The Netherlands overtakes Switzerland in world competitiveness stakes

DutchNews, May 24, 2018

The Netherlands has overtaken Switzerland and moved into fourth place in the latest global competitiveness rankings published by IMD. 

The top five most competitive economies in the world remain the same as in the previous year, but their order changed in the 2018 rankings. The United States, third last year, returns to the top spot, followed by Hong Kong, Singapore, the Netherlands and Switzerland. 

The Netherlands’ advance reflects a ‘balanced’ path to competitiveness, ranking in the top 10 in economic performance, government and business efficiency, IMD said. Switzerland declined mainly due to a slowdown in exports and, to a lesser extent, an increase in perceptions about threats of relocation of R&D facilities. 

The IMD World Competitiveness Center, a research group at IMD business school in Switzerland, has published the rankings every year since 1989. It compiles them using 258 indicators.

‘Hard’ data such as national employment and trade statistics are weighted twice as much as the ‘soft’ data from an executive opinion survey that measures the business perception of issues such as corruption, environmental concerns and quality of life. This year 63 countries were ranked. 

The Netherlands is also currently ranked 4th on the World Economic Forum‘s list of the 138 most competitive countries, behind Switzerland, the United States and Singapore.

Accident Suspected in Death of Matahari Founder

Jakarta Globe, March 11, 2018

Hari Darmawan was found dead on Saturday (10/03). (B1 Photo)

Jakarta. Hari Darmawan who established Indonesia's largest retail company Matahari Department Store was found dead on Saturday (10/03). His body was pulled from the Ciliwung River near his villa in Bogor, West Java.

It is suspected that Hari, 77, fell into the river when he went to check its overflow the night before.

His family decided to bring the body to Bali for burial.

Hari was last seen at the villa around 8 p.m. on Friday, after a series of meetings, said Ilham Fadjriansah, the family's spokesman and manager of Taman Wisata Matahari.

"It was raining heavily all day long. It's possible that Mr. Darmawan decided to monitor the Ciliwung River's overflow, but lost his balance and fell into the waters," Ilham said.

The police found Hari's body one kilometer away at 6 a.m. on Saturday, after an overnight search.

West Java Police chief Ins. Gen. Agung Budi Maryoto said the police are now questioning witnesses to determine the cause of Hari's of death.

Hari, born on May 27, 1940, had a reputation of being a successful but humble businessman. He opened the first Matahari outlet — Indonesia's first modern department store — in Pasar Baru, Jakarta, in 1972. The company, which is now part of the Lippo Group, operates 156 stores in 73 cities.

"Mr. Hari was a fighter, a true entrepreneur, who built Matahari Department Store and created vast employment opportunities," said James Riady, the chief executive of the Lippo Group.

"He was a good person, friendly, always willing to help others. ... We will pray and hope for God's blessings and solace for his grieving family."

Local King Koil Assembler Upbeat About Consumer Purchasing Power, Eyes Expansion to E. Indonesia

Jakarta Globe, Muhamad Al Azhari, November 25, 2017

Duta Abadi Primantara, a local company that holds licenses for some international
mattress brands, is upbeat about its future business due to expected growth of
consumer buying power in years to come. The company is also eyeing a major
expansion to the eastern part of Indonesia. (Photo courtesy of Duta Abadi Primantara)

Jakarta. Duta Abadi Primantara, a local company that holds licenses for some international mattress brands, is upbeat about its future business due to the expected growth of consumer buying power in years to come. The company is also eyeing a major expansion to the eastern part of Indonesia.

The company, first established in the 1990s, currently has four factories and 13 assemble point facilities in Sumatra, Java, Sulawesi, Bali and Kalimantan.

DAP holds licenses to locally assemble high-end mattresses for brands based in the United States, including Aireloom, King Koil, Serta and Tempur. The company has its own locally-manufactured mattress brand, called Florence, that targets medium- to low- income customers.

King Koil and Serta are the leaders in the premium segment of the mattress industry in Indonesia.

Anthony Setiawan, the vice president director of Duta Abadi, said the company has seen a healthy single digit revenue growth over the past few years and is bullish about future businesses.

"There has been a slowdown [in economic growth], we felt it too, but buying power is predicted to increase in the future, a lot research has shown. Also, we noted an interesting fact that people in Indonesia are now more aware that quality sleep is important. If you look at the statistics, people spend a third of their time sleeping. It is very important that they sleep well," said Anthony, who is the second generation of the family who founded and owns DAP.

Indonesia’s economy expanded at a slower pace in the third quarter this year compared to market expectations, a disappointing outcome for the country as a slowdown in private consumption dragged overall growth.

The economy expanded 5.06 percent year-on-year in the third quarter, just slightly higher than a 5.01 percent year-on-year growth in the previous quarter. The third quarter figure is lower than the median estimate from polling by Reuters and Bloomberg, which showed figures of 5.13 percent and 5.2 percent growth respectively.

Despite the fact that Indonesia’s economy expanded at around 5 percent on average over the last five years, government officials and economists generally remain upbeat over growth outlook in the near term, thanks to new infrastructure development, an expected rebound in commodity prices and more investment in the country.

Anthony said about 80 percent of his company's products are sold to end-customers, while the remainder are bought by hospitality industries like hotels and healthcare operators like hospitals.

"We started the business in the 1990s with Florence mattress. This is our first brand,  which we manufactured and distributed. Then, in 1996, we acquired the exclusive license for King Koil in the United States," Anthony told the Jakarta Globe on the sidelines of Hotel Week, a three-day exhibition and conference that gathers players in hospitality industry.

He said DAP then expanded to acquire exclusive licenses to assemble mattresses for Serta, Tempur and Aireloom.

Anthony said the company imports raw materials for its premium mattress brands but assembles them in Indonesia. DAP currently has a comprehensive distribution network in Indonesia that covers Java, Sumatra, Sulawesi, Bali, East Nusa Tenggara and Kalimantan.

He said the next stage of expansion will be targeted to the eastern part of the country to capture the higher purchasing power of people and benefits from expansions of hotel operators in the region.

"The hospitality industry is very important for us. When we started marketing King Koil, our first customer was the Mulia hotel in Senayan. From this, we started being acknowledged among five-star hotels. This continues until now as hotel owners and operators are getting more aware that mattress are one of the most important factors in their hospitality services," Anthony said.

"For customers, when they stay at a particular hotel, when they feel they have a good sleep and rest, they will look at the brand of the mattress, usually they may be encouraged to buy the same at home."

DAP has also started to tap into the hospital market due to more attention in the sector from the government.

"There is a specific requirement if we want to tap into the hospital bed mattress, for electronic-adjustable bed, there is a certain certification that a manufacturer and supplier must secure, currently we cooperate with a certain supplier [of hospital beds], but we are working on the way of making our own [electronic-adjustable mattress]," Anthony added.

DAP currently holds the exclusive license to assemble and distribute King Koil products in Indonesia and China and distribute Serta products in Indonesia, Singapore, Malaysia, Vietnam and the Philippines.

Jokowi Calls for Introspection After Saudis Invest More in China Than Indonesia

Jakarta Globe, April 15, 2017

President Joko Widodo and King Salman bin Abdulaziz Al Saud of Saudi Arabia
wave to onlookers during their meeting at the Presidential Palace in Bogor,
West Java, on March 1. (Antara Photo/Puspa Perwitasari)

Jakarta. Last month's state visit to Indonesia by King Salman bin Abdulaziz al Saud of Saudi Arabia had a major impact on the tourism industry, but it did not result in much in the way of investment.

King Salman, who was accompanied by a huge entourage and dozens of princes, only invested $6 billion in the world's biggest Muslim democracy, while he made commitments worth $65 billion during his subsequent visit to China.

Against this background, President Joko "Jokowi" Widodo said Indonesia needs to perform introspection and create a better climate to attract investment from abroad.

"[Saudi Arabia] invested more in China than with us. This calls for introspection; correction to see why we can't attract more investment than China," Jokowi said after inaugurating the Hasyim Ashari Mosque in Jakarta on Saturday (15/04).

The Jokowi administration was hoping the visit would result in around $25 billion in investment, but this was not realized.

"If we are ready, big investment will come by itself and we will get more than other countries," he said, as reported by state-run Antara news agency.

Before the royal visit, Saudi Arabia has shown scant interest in investing in Indonesia, having only committed $900,000 last year.

Saudi investment between 2010 and 2015 amounted to only $34 million, or 0.02 percent of the total foreign direct investment in that period.

But despite investing far less than expected, the octogenarian king did restore Indonesia's hajj quota to 221,000 after it was cut during the renovation of the Al-Masjid al-Haram mosque in Makkah.

The king's eight-day vacation in Bali also resulted in an estimated $22.4 million windfall for hotels, restaurants, car rental services and shopping centers on the island.

Top brands including H&M, Zara to boycott Bangladesh garment summit

Yahoo - AFP, February 22, 2017

H&M, C&A, Tchibo and Inditex which owns Zara -- all top clients of Bangladesh's
$30-billion garment industry -- have pulled out of the Dhaka Apparel Summit

Leading fashion brands including H&M and Zara will boycott a key industry conference in Bangladesh in support of garment workers who have been sacked, hunted or jailed for participating in wage strikes, the companies said Wednesday.

H&M, C&A, Tchibo and Inditex which owns Zara -- all top clients of Bangladesh's $30-billion garment industry -- have pulled out of the Dhaka Apparel Summit, the signature annual event in the global textile hub, scheduled for Saturday.

The move follows strikes in December when tens of thousands of garment workers in the industrial town of Ashualia staged mass protests demanding a three-fold hike in pay, which can run as low as $68 a month.

Dutch clothing brand C&A said, "C&A together with other apparel brands, including H&M and Inditex decided not to participate in the BGMEA Dhaka Apparel Summit."

"We strongly encourage the Government of Bangladesh to take immediate steps to ensure the protection of the workers' rights, with special attention to the legitimate representatives of the workers who have been arrested," C&A spokesman Thorsten Rolfes told AFP.

A spokesman for Swedish apparel giant H&M confirmed the boycott.

"H&M believes that attending the Dhaka Apparel Summit would create confusion and send the wrong signals regarding our commitment to freedom of association and that the ongoing situation must be peacefully resolved," spokesman Iñigo Sáenz Maestre said.

The strike, which lasted for a little over two weeks, was squashed, with some 1,600 employees sacked and 34 arrested, while cases alleging burglary, arson, vandalism and extortion, among other charges, were filed against more than 1,500 workers.

Last week union leaders said the workers were "living in constant fear of being arrested as the police hunt those who were involved in the strikes".

The summit is hosted by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), an industry body that represents the country's 4,500 clothing factories, and features Prime Minister Sheikh Hasina as its keynote speaker.

BGMEA president Siddiqur Rahman told AFP that they "did not get any communication from any brand not attending the summit".

International rights group Clean Clothes Campaign welcomed the brands' decision to withdraw participation and said it would be "a major embarrassment" for the government and the organisers.

CCC spokeswoman Mirjam van Heugten said, "Unless all detainees are released, unsubstantiated charges are dropped, and other acts of intimidation and harassment of trade unions are stopped... (the brands) cannot credibly participate in a summit on "sustainable growth" of the industry."

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Google Understands Why Indonesia Wants Its Fair Share: Sri Mulyani

Jakarta Globe, Tabita Diela, October 27, 2016

Indonesia is bullish on reaching a settlement with technology giant Google,
Finance Minister Sri Mulyani Indrawati said on Thursday (27/10). (Reuters Photo/
Stephen Lam)

Jakarta. Indonesia is bullish on reaching a settlement with technology giant Google, Finance Minister Sri Mulyani Indrawati said on Thursday (27/10).

"We have already communicated with Google," Sri said during a meeting at the Jakarta Foreign Correspondents Club.

"I think there is at least an understanding about why Indonesia would like to have a fair share of the revenue and we do hope that we're going to reach an agreement," she said.

Senior Google Asia Pacific executives reportedly met Indonesian tax officials on Wednesday for negotiations on the company's tax bill.

"I will make sure that our team treats this issue professionally," Sri said.

The government earlier claimed that Google Indonesia, the company's local representative, paid an "unfairly small" amount in tax as it only allocated about 4 percent of its total revenue from advertisements to be subject to the 10 percent income tax.

Tax experts have urged the government to create a stronger regulation to tax over-the-top players.

KPK to Follow Up FBI's Allegations of Bribery at MAXpower

Jakarta Globe, Fana Suparman, October 03, 2016

A miniature of the Lontar power plant in Banten. (Antara Photo/Yudhi Mahatma)

Jakarta. Indonesian anti-graft agency KPK said it will follow up on initial reports from the United States Federal Bureau of Investigation that power plant builder MAXpower had allegedly paid bribes to Indonesian officials to secure government contracts.

"We will look at the FBI investigation. If we find the alleged flow of cash to government officials in Indonesia, we will follow up the case," Corruption Eradication Commission (KPK) deputy chairman Alexander Marwata told reporters in Jakarta on Monday (03/10).

Alexander's comment came after reports arose that London-based bank Standard Chartered was investigated by the US Department of Justice over claims that its Indonesian power plant builder subsidiary MAXpower had paid bribes to secure contracts in Indonesia.

The Wall Street Journal newspaper reported an internal audit of the MAXpower Group had revealed evidence of possible bribery and US prosecutors were examining whether Standard Chartered was culpable for not stopping it.

The reports showed indications that MAXpower made inappropriate payments to Indonesian government officials between 2012 and 2015.

"We definitely will cooperate with the FBI. According to the UNCAC [United Nations Convention against Corruption], all countries must cooperate to eradicate corruption," Alexander said.

Alexander pointed out that the KPK already has experiences handling corruption cases involving multinational companies, including a case involving Indonesian Democratic Party of Struggle (PDI-P) politician Emir Moeis who was jailed for taking $357,000 in bribes from Alstom Power, an American subsidiary of its French parent company, and Japan-based Marubeni Corporation.

"We will process this case the same way we brought Emir Moeis and former Pertamina director Suroso, who also took bribes from multinational companies, to justice," Alexander said.

Responding to the allegations, MAXpower claimed they gave a "one-sided and partial view of the operations and events at the firm and as such do not give a full, or true view.”

Under a deferred prosecution agreement it reached with US authorities in 2012, Standard Chartered is due to remain under supervision by an independent monitor until the end of 2017.

Tommy Suharto Urges His Family to Join Tax Amnesty Program

Jakarta Globe, Tabita Diela & Yosi Winosa, September 16, 2016

Tommy Suharto, right, symbolically hands over his tax report to Ken Dwijugiasteadi,
director general for taxation at the Ministry of Finance, on Thursday (15/09). (SP
 Photo/Joanito De Saojoao)

Jakarta. Former President Suharto's youngest son said his family will likely join the government's tax amnesty program.

"I haven't talked to [my family about it], but they should make the best use of this program," Hutomo Mandala Putra, better known as Tommy Suharto, told reporters on Thursday (15/09).

Tommy, who owns the Humpuss Group, symbolically handed over his tax report to Ken Dwijugiasteadi, director general for taxation at the Ministry of Finance. Usually, tax reports of big taxpayers are submitted to the head of the Directorate General of Taxes.

President Suharto's children are involved in various domestic and international businesses.

"I urge Indonesians to join this program without hesitation. I take this opportunity to make things easier for my future projects," Tommy said.

He declined to reveal the value of the assets he reported, or the amount of tax he paid. He said he reported stocks, account receivables and other assets, most of which are located abroad.

Tommy is currently involved in the property sector with his Mangkuluhur City office tower development.

The tax office hopes high-net-worth Indonesians will join the program soon as the deadline for the lowest tax rate is the end of this month.

Indonesian Chambers of Commerce and Industry (Kadin) chairman Rosan P. Roeslani told the Jakarta Globe that many members of the business lobby will join the program next Tuesday.