Supreme Court Chief Welcomes EU-, UNDP-Backed Justice Reform Project

Jakarta Globe, Erwin Sihombing, November 24, 2015

The Sustain Project, which will run until June 2019, aligns with the Supreme
Court’s own roadmap for reform. (Antara Photo/M. Agung Rajasa)

Jakarta. Supreme Court Chief Justice Hatta Ali has hailed a project being carried out with the European Union and the United Nations that seeks to reform Indonesia’s justice system.

The Sustain Project, which will run until June 2019, aligns with the Supreme Court’s own roadmap for reform, Hatta said in Jakarta on Tuesday, especially in the fields of monitoring , training, human resource management, and case management.

“This project, in cooperation with the EU and the UNDP, will create both long- and short-term advantages for Indonesia [in terms of justice system reform],” he said.

The Sustain Project is also aimed at strengthening Indonesia’s special courts, such as those for fisheries and for juveniles, including by certifying judges serving in children’s courts.

While the project is being implemented nationwide, it will pay particular focus on pilot projects at courts in regions such as Ambon in Maluku province; Bandung and Cibinong in West Java; Bitung and Manado (North Sulawesi); Jayapura and Sorong (Papua); Kabanjahe and Medan (North Sumatra); Kupang (East Nusa Tenggara); and Pontianak and Singkawang (West Kalimantan).

Christophe Bahuet, the UNDP director for Indonesia, said “We are certain that the cooperation with the Supreme Court, the EU and the UNDP will produce perfect decisions [necessary] to improve the country’s justice system and the public trust in it.”

Never a Dull Moment on Jokowi’s Policy Trail

Shake-Up: From the fuel subsidy to executions, the new president has stirred debate

Jakarta Globe, Kennial Caroline Laia, Jan 02, 2015

President Joko Widodo arrives for the 12th Asean India Summit at Myanmar
International Convention Center in Naypyitaw, Myanmar on Nov. 12, 2014.
(EPA Photo/Rungroj Yongrit)

Jakarta. In the just over two months that he has been president, Joko Widodo has earned both plaudits and criticism for some of his policies, most of them a complete 180 on his predecessor’s take on the same issue.

One of his most attention-grabbing moves was to order the sinking of foreign fishing vessels caught poaching inside Indonesia’s maritime borders.

Since then, Maritime Affairs and Fisheries Minister Susi Pudjiastuti has enrolled the Navy to round up 19 boats and sink five of them.

The policy has drawn praise, with observers saying the administration needs to get touch on fish poaching if it is to turn Indonesia into a global maritime fulcrum as Joko envisions.

“It’s necessary to sink those illegal vessels,” says Hikmahanto Juwana, an international law expert at the University of Indonesia.

Under the Susilo Bambang Yudhoyono administration, he says, “fish poaching as a problem was hardly looked into by the government.”

“There are many boats that continue to poach our sea resources, and we’ve done little about the problem,” he says. “So now, by sinking these boats, our government wants to convey its stance that Indonesia will never compromise with any foreign boats that steal our fish.”

Hikmahanto says the sinking of the vessels will not damage relations with the countries where the boats are registered, because Indonesia’s response is targeted toward an illegal act being committed in its own waters.

“We are dealing with illegal fishing boats that violate our maritime territory, not the countries where those boats come from,” he says.

He adds, though, that over the next few years, the government will need to make its policy clear to other countries to prevent unwanted diplomatic rows.

“What’s being done now must be continued. We cannot be discriminatory in selecting the boats,” Hikmahanto says.

“In addition, it is best for the Foreign Ministry to inform other countries around the world that we have this policy in place so there won’t be any misunderstanding. Ideally, these other countries must start prohibiting their fishermen from poaching in Indonesian waters.”

A less flashy though far more impactful policy move under Joko has been the raising of subsidized fuel prices as part of an effort to trim the burgeoning subsidy and allocate the savings to more productive programs.

The hike, Joko calculated, would save the state around Rp 100 trillion ($8.04 billion).

On Nov. 18, less than a month since his inauguration on Oct. 20, Joko duly raised the pump price of the widely used Premium brand of low-octane gasoline, from Rp 5,500 per liter to Rp 8,500 per liter. The price of subsidized diesel sold under the Solar brand also went up, from Rp 5,500 per liter to Rp 7,500 per liter.

But on Wednesday, the government announced that there would be another price adjustment — downward this time, in light of the falling price of crude oil.

As of the first day of 2015, Premium has been tamped down to Rp 7,600 per liter, and Solar to Rp 7,250 per liter.

The move seems to have vindicated critics of the initial hike, who said at the time that there was no urgent need to raise pump prices just them with the world oil price on a decline since June this year.

Another controversial issue in the past couple of months has been Joko’s insistence on not just maintaining by actively implementing the death penalty, which was rarely employed during Yudhoyono’s second term as president.

Joko previously claimed that five death row inmates who had exhausted all avenues of appeal would be put to death in December. The Attorney General’s Office, which is responsible for arranging executions, later said that only two of those inmates would face the firing squad that month.

The AGO typically carries out executions in secret and down not announce whether they have been carried out until well after the fact.

As of Thursday, there was no word yet on whether the two executions, set to take place in Batam, Riau Islands, and Cilacap, Central Java, had been carried out.

Rights activists have accused Joko of reneging on campaign promises to champion human rights.

“Joko has [...] violated the spirit of human rights in our country,” says Hendardi, from the Setara Institute, a rights and democracy advocacy group. “Joko shouldn’t continue this policy. It is against global opinion.

“The government will be better off reviewing capital punishment for drug convicts,” he adds.

“It is useless and wouldn’t serve any deterrent effect for drug dealers. There are no statistics showing that capital punishment discourages drug dealing,” Hendardi says.

Haris Azhar, the coordinator of the Commission for Missing Persons and Victims of Violence (Kontras), says Joko has “no understanding on human rights.”

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AirAsia, Indonesia and Effective Crisis Management

President Joko Widodo, center, talks to the head of Indonesia’s national search
 and rescue agency, Soelistyo, left, and Chief of the Sea Security Coordinating
 Agency, Vice Admiral Desi Albert Mamahit, right, shortly before a news conference
 about missing Indonesia AirAsia flight QZ 8501 in Jakarta, on Dec. 29, 2014.
 (EPA Photo/Bagus Indahono)

Ruling in Favor of Indonesia Against Century Owner

Setting a Decision: ‘Justified’ bailout within the discretion and authority of the government, according to international tribunal

Jakarta Globe, Muhamad Al Azhari, Dec 18, 2014

A closed sign is put in front of the Bank Century office in Jakarta on Nov. 21, 2008.
THe bank now has been renamed Bank Mutiara. (JG Photo/Jurnasyanto Sukarno)

Jakarta. An international tribunal ruled in favor of the government of Indonesia in a case involving the controlled takeover of Bank Century from Saudi businessman Hesham Al Warraq, a law firm representing Indonesia said in a statement on Thursday.

“The Tribunal’s award follows a 2013 decision against Al Warraq’s partner, Rafat Ali Rizvi,” KarimSyah Law Firm said on Thursday.

KarimSyah represented Indonesia in the arbitration in conjunction with the Attorney General’s Office. The law firm also provides outside assisting counseling to Indonesia.

KarimSyah has brought victory for Indonesia in other international cases, including Indonesia one against US mining giant Newmont Mining over divestment of the miner’s Indonesian unit.

The Bank Century case began in November 2008 — at the height of the global financial crisis. Indonesian regulators bailed out the ailing lender through a Rp 6.7 trillion ($536 million) injection in an attempt to prevent systemic banking failure, which could pose risks to the economic stability of the nation.

After the bailout, the government, through Indonesia’s deposit insurance agency, known as LPS, took over the control of Bank Century, which has since been renamed Bank Mutiara.

Indonesian prosecutors brought criminal charges under Indonesia’s anti-corruption and anti-money laundering laws against previous owners Al Warraq and Rizvi, who accused them of draining more than $300 million out of the bank.

Neither investors appeared for the trial, but both were convicted in Indonesian court in absentia.

Al Warraq brought a claim through the Organization of the Islamic Conference Investment Agreement against the government of Indonesia in 2011.

He sought for compensations over what he defined as an expropriation of his shares in Bank Century.

The court favored Indonesia, saying: “It is the view of the Tribunal that the bailout was within the discretion and authority of the government and was completely justified, particularly since Bank Century … could have caused a systemic risk to the entire Indonesian financial system.”

The tribunal also rejected Al Warraq’s claim that he was not afforded fair and equitable treatment in Indonesia.

For the embezzlement charge, the court called for different dispute resolution processes.

Bank Mutiara is now controlled by J Trust, a Tokyo-listed financial institution, which acquired a 99 percent stake in the Indonesian lender from LPS for Rp 4.41 trillion.

Fuad Welcomes Tax Haven Transparency

Jakarta Globe, By Dion Bisara, June 17, 2013

Fuad Rahmany, director general of tax in the Finance Ministry, is
skeptical about tax havens giving up their privileges. (GA Photo/Defrizal)

An Indonesian official applauded tax haven countries joining an agreement on international tax transparency. But he said developed countries needed to do more to altogether eliminate the unfair tax advantages some jurisdictions enjoy.

Fuad Rahmany, director general of tax in the Finance Ministry, said the convention made it easier for his office to search for offshore accounts belonging to Indonesian nationals.

“There is progress because of tax haven jurisdictions wanting to join the convention,” Fuad Rahmany told the Jakarta Globe on Sunday.

Fuad’s comment came after ten territories and self-governing regions tied to Great Britain agreed on Saturday to sign a convention known as the Mutual Assistance in Tax Matters, to which more that 50 countries have acceded, including Indonesia.

The cooperation of Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Anguilla, Montserrat, the Turks and Caicos Islands, Jersey, Guernsey and the Isle of Man was secured as part of British Prime Minister David Cameron’s push to close global tax loopholes ahead of the G8 summit in Northern Ireland from June 17-18.

Still, Fuad was a little sceptical that the offshore investment destinations would give up their privileges so easily.

“What I really want to know is that those jurisdiction really have good intentions in signing the agreement, because [offshore tax advantages] have [thus far] been their only selling point,” Fuad said.

“For me, the most important thing is in the implementation,” he said.

“It would be meaningless if [their intention is] to release so little information that we cannot draw any conclusions from it.”

Fuad said he wants developed countries to make a concerted effort to eliminate tax abuses entirely. “I want them closed down. The world will be fairer and more transparent if such jurisdictions, where paper companies are listed, are gone,” he said.

Developed jointly by the Council of Europe and the Organization of Economic Cooperation and Development in the beginning in 1988, the convention is designed to help tax authorities tackle tax evasion and avoidance, while respecting the fundamental rights of taxpayers.

The cooperation includes automatic exchange of information, simultaneous tax examinations and international assistance in the collection of tax debts.

Indonesia signed the convention in 2011, but has yet to ratify it.

This year the Indonesian government has seen tax revenues fall due to plummeting commodity prices.

The tax revenue target in the government’s revised 2013 budget was adjusted downward to Rp 1,148 trillion ($116 million) from Rp 1,193 trillion originally.

Fuad said it was likely that Indonesian companies were among those with funds stashed in tax havens — money the government needs.

Additional reporting by Reuters

Offshore Secrets

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Ghana told to free Argentine ship Libertad by UN court

BBC News, 15 December 2012

Related Stories

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The ARA Libertad is being manned
 by a skeleton crew in the port of Tema

A UN court has ordered the release of an Argentine naval ship impounded by Ghana over a debt dispute.

The UN International Tribunal for the Law of the Sea, based in Germany, ruled that the ARA Libertad had immunity because it was a military vessel.

The ship has been held in the port of Tema since October when a local court ruled in favour of a financial fund.

The fund says it is owed $370m (£233m) by the Argentine government as a result of its debt default a decade ago.

A skeleton crew has stayed on board the three-masted training ship since about 300 personnel and naval cadets flew home in October.

The tribunal in Hamburg ordered that Ghana should "forthwith and unconditionally release the frigate ARA Libertad" and ensure the ship and its crew can leave Ghanaian waters.

It set a deadline of 22 December for the ship to have left the port.

Tribunal president Shunji Yanai ordered that the vessel should be resupplied if needed.

The court said that holding the ship was "a source of conflict that may endanger friendly relations among states".

Last month, sailors on board the Libertad reportedly drew guns on Ghanaian officials after they tried to board the vessel to move it to another berth.

Immunity 'violated'

An agent for the Ghanaian government who was at the court said after the ruling that it would "carefully consider the tribunal's order with a view to ensuring that it is given effect."

Financial fund NML Capital has so far not commented on the ruling.

NML is a subsidiary of US hedge fund Elliot Capital Management, which is one of Argentina's former creditors.

Argentina had argued that the seizure violated the immunity of military vessels under international maritime law.

In 2001 and 2002, Argentina defaulted on more than $100bn of debt. Most of these loans were subsequently restructured, giving creditors about 30% of their money back.

However, some creditors including Elliot chose to hold out, pursuing the Argentine government through the courts. 

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Israel urged to treat Palestinian child detainees in accordance with rights law – UN

UN News Centre, 20 July 2012

Special Rapporteur Richard Falk. UN Photo/Jess Hoffman

20 July 2012 – A United Nations independent human rights expert today condemned Israel’s use of solitary confinement against Palestinian children, and urged the Israeli Government to treat such detainees in accordance with international human rights laws.

“Israel’s use of solitary confinement against children flagrantly violates international human rights standards,” the Special Rapporteur on the situation of human rights in the occupied Palestinian territories, Richard Falk, said in a news release.

“However, using solitary confinement as a punishment for Palestinian children who wish to peacefully protest their situation, including by commencing a hunger strike against conditions of detention, is an appalling abuse of child prisoners,” he added. “I again condemn Israel’s harsh arrest operations and procedures.”

Mr. Falk’s comments came in the wake of earlier concerns on the issue, raised today by the UN Special Committee on Israeli practices in the Occupied Territories, at the end of a fact-finding mission to Jordan, Egypt and the Gaza Strip.

“According to testimony received, Israel uses solitary confinement against 12 per cent of Palestinian child detainees,” the Special Committee’s Chairperson, Ambassador Palitha T.B. Kohona of Sri Lanka, said in a news release. “This is especially troubling when one considers that Israel arrests about 500 to 700 Palestinian children every year.”

The Special Committee also warned that a pattern of detaining and mistreating children “links to broader, longstanding concerns regarding Israel detention of Palestinians generally.”

“Witnesses informed the Committee that mistreatment of Palestinian children starts from the moment of detention,” Mr. Kohona said. “Large numbers are routinely detained. Children’s homes are surrounded by Israeli soldiers late at night, sound grenades are fired into the houses, doors are broken down, live shots are often fired; no warrant is presented. Children are tightly bound, blindfolded and forced into the backs of military vehicles.”

The Special Committee head said that parents are not allowed to accompany the detainees, and that family members are insulted, intimidated and at times physically assaulted. According to witnesses, the detention and transfer of children can last for hours, and can often include stops in Israeli settlements, Israeli checkpoints and police or military bases.

“This pattern of abuse by Israel is grave,” said Special Rapporteur Falk. “It is inhumane, cruel, degrading, and unlawful, and, most worryingly, it is likely to adversely affect the mental and physical health of underage detainees.”

The Special Rapporteur appealed to the Government of Israel to take urgent steps to bring their treatment of Palestinian children detainees into line with international human rights laws, in particular the Convention on the Rights of the Child, which spells out the basic human rights that children everywhere have.

In its preliminary observations in the wake of its fact-finding mission, the Special Committee drew attention to two further areas of immediate concern in the West bank, including East Jerusalem: the Israeli practice of demolishing Palestinian homes, and violence by Israeli settlers against Palestinians.

The Special Committee also assessed the economic impact of the Israeli blockade on the Gaza Strip.

“These Israeli practices lead the Special Committee to one over-arching and deeply troubling conclusion,” Mr. Kohona said. “The mass imprisonment of Palestinians; the routine demolition of homes and the displacement of Palestinians; the widespread violence by Israeli settlers against Palestinians; and the blockade and resultant reliance on illegal smuggling to survive; these practices amount to a strategy to either force the Palestinian people off their land or so severely marginalize them as to establish and maintain a system of permanent oppression.”

The Special Committee will present a mission report to the UN General Assembly in November, with its observations and recommendations to improve the human rights situation.

Independent experts, or special rapporteurs, are appointed by the Geneva-based Council to examine and report back on a country situation or a specific human rights theme. The positions are honorary and the experts are not United Nations staff, nor are they paid for their work.

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KPK and international experts to discuss foreign bribery

The Jakarta Post, Mon, 05/09/2011

The Corruption Eradication Commission (KPK), along with 52 national and international experts on corruption, will discuss joint efforts to tackle foreign bribery in international business transactions in an event hosted by the KPK in Nusa Dua, Bali, on Tuesday.

“Bribery involving foreign officials and foreign private actors is alarming,” KPK deputy chief Bibit Samad Rianto said Monday in Nusa Dua. “This is good momentum to foster greater international cooperation between countries and stakeholders.”

The “International Conference on Foreign Bribery in International Business Transactions” is aimed at raising national and international awareness of the risks of foreign bribery, highlighting the legal frameworks and sharing experiences in fighting foreign bribery.

“Speaking of the benefits for our country, such an international conference will eventually corner corruptors,” director of inter-commissions and agency network development at the KPK, Sujanarko, told reporters.

Among the experts were KPK chair Busyro Muqoddas, OECD Working Group on Bribery in International Business Transactions chair and professor Mark Pieth and senior policy advisor in the law enforcement department of the Netherlands’ Ministry of Justice Kimberley Tielemans.

Participants from 35 countries will join the two-day discussion, which is also supported by the Organization for Economic Cooperation and Development (OECD).