West Java representatives reported to KPK for bribery

Yuli Tri Suwarni, The Jakarta Post, Bandung | Sat, 08/14/2010 10:35 AM | The Archipelago

A parliamentary watchdog said it reported five West Java provincial legislative leaders to the Corruption Eradication Commission (KPK) for allegedly accepting bribes from regency and mayoralty administrations.

West Java Parliament Watch chief Asep Hadian Permana said Friday that the officials were bribed to influence their decision on the amount of cash assistance administrations would receive from the 2009 and 2010 provincial budgets.

West Java Parliament Watch had obtained evidence to support the bribery allegations from documents detailing cash transfers to the West Java legislative leaders, he said.

The amount of the bribes was from 5 to 10 percent of the total cash value of assistance allocated by the provincial budget to each regency and mayoralty administration, he added.

Regencies and mayoralty administrations typically receive between Rp 15 billion (US$1.66 million) and Rp 30 billion from provincial budgets.

Asep said that Bekasi mayoralty and Bogor regency administration officials said that they were willing to testify in the case out of concern of being pressured by the West Java representatives.

“We reported the case to the KPK on Aug. 9 and were accompanied by the Indonesian Corruption Watch,” Asep told The Jakarta Post in Bandung, West Java, on Friday.

“Such illegal practices should not take place now, in the reform era,” he added.

The group also urged the Supreme Audit Agency (BPK), as the state’s official auditor, to be involved in investigating the allegations.

The BPK could help audit the bank accounts of the five West Java legislators, which include the council’s speaker, who is from the Democrat Party, and his four deputies, Asep said.

The deputies are from the Indonesian Democratic Party of Struggle, the Golkar Party, the Justice Prosperous Party and the United Development Party.

Asep said the legislative leaders had allegedly approached the regency and mayoralty administrations and promised to facilitate cash disbursements if the regional leaders paid them a fee.

“The bigger the fee, the bigger the amount of assistance [regional leaders] would get,” he said.

Asep said he had proof of a Rp 1.4 billion bribe paid by the Bogor regency administration, which eventually received Rp 15 billion from the provincial budget, adding that there was also proof that Subang regency officials paid Rp 3.4 billion to obtain Rp 30 billion in assistance.

“We have handed over all the evidence to the KPK, which immediately started to investigate the case.”

West Java legislative speaker Irfan Suryanagara said his council absolutely did not understand the

accusation because the report filed with KPK alleged bribery when all funds were accounted for.

“There’s no imbalanced in funds from the province. Don’t simply report [allegations to the KPK] and not have the guts to tell it to the media,” said Irfan.

The amount of assistance funds cannot be influenced because the percentages and amounts were set by law, he said.

“The rules are clear. If someone receives more than is allowed, the central government will know about it and it would be a problem,” said Irfan.

ITB to Open a Class on Anti-Corruption

Tuesday, 10 March, 2009 | 13:06 WIB 

TEMPO Interactive, Bandung: The Bandung Institute of Technology (ITB) is preparing a class on anti-corruption for the 2009-2010 period. 

This subject will be classified as an optional subject. 

“The subject is an important one for the improvement of technology and science knowledge,” said ITB rector, Djoko Susanto, at ITB, last weekend. 

Antasari Azhar, Head of Corruption Eradication Commission (KPK), in his speech at ITB, suggested that educational institutes actively participate in eradicating corruption. 

He also asked the ITB rector to record all revenues or loans from abroad for the university as this kind of funding is likely to be corrupted. 

KPK itself now is targeting a university in West Java for possible corruption in the sale and purchase of assets. 

ANWAR SISWADI

Govt supports 3 industries: Shoes, sugar, and textiles

Yuli Tri Suwarni, The Jakarta Post, Bandung | Mon, 11/10/2008 11:17 AM  

The government is expanding its industry revitalization program next year, with footwear manufacturers the latest to join a list of industrial sector subsidy recipients -- in addition to textiles and sugar -- to help renew machinery and boost output. 

The Industry Ministry will facilitate the disbursement of Rp 55 billion in interest subsidies for footwear manufacturers, as part of a total of Rp 360 billion set aside in subsidies for the three industries, director general Anshari Bukhari said Saturday in Bandung, West Java. 

"The funds are allocated on the government's 2009 state budget and have been approved by the House of Representatives," Anshari told a discussion forum. 

This is the expansion of a program started two years ago designed to help targeted strategic industries to bolster production capacity. 

Under this program, which originally only covered the textile industry, the government would subsidize part of the interest rate which banks charged on loans so that manufacturers could buy new machinery. It disbursed Rp 175 billion (US$18.77 million) to 78 textile and garment manufacturers in 2007 and expects to disburse another Rp 210 billion this year. 

For next year, textile and garments makers will be entitled to another Rp 255 billion in subsidies, while sugar factories will be entitled to Rp 50 billion. 

"We expect that this expanded program will not only stimulate investment in the three sectors, but also help improve competitiveness," Anshari said. 

Businesses have welcomed this government program, saying it will definitely help them increase production capacity and benefit their industry as a whole. 

The Association of Indonesia Textile Producers (API) has said that with the program, the industry is optimistic that it can cope with any decline in traditional export markets despite the current global economic downturn. 

It expects total exports to still grow by at least 7 percent next year, mostly resulting from export market diversification. Last year the value of textile exports reached $10.06 billion. 

The Indonesia Footwear Producer Association (Aprisindo) meanwhile said that even this year, the industry was doing relatively well and remained on course to achieving a 10 percent export growth target by end year, probably reaching an export volume of $1.76 billion. 

Meanwhile, ministry director Budi Irmawan said up to 380 footwear makers have so far applied to make use of the subsidy scheme and this volume of demand would likely continue. 

He added that most of the machinery now used by footwear manufacturers dates back to the 1980s. 

Anshari added that the government would in the near future further expand its revitalization program. 

"We're considering providing subsidies for targeted industrial cluster areas in the country. This would not be via an industry-based subsidy, but via industrial clusters. But, we're still working out the details," he said.

 

Market launched to improve farmers' lives

JAKARTA (Jakarta Post): Don't know where to go on weekends other than the shopping malls?

You can perhaps pay a visit to Indonesia's first-of-its-kind farmer market, officially launched here Saturday by the Agriculture Ministry and due to run every weekend afterwards.

Located at the clean, neat National Monument (Monas)'s IRTI parking area on Jl. Medan Merdeka Selatan, Central Jakarta, the market offers various kinds of farming products: fruits and vegetables, processed products, and ornamental plants.

And they are all fresh bought and sold by the traders themselves.

These farmers come from areas in Jakarta and the neighboring Banten and West Java provinces.

"We wish to bring the farmers to meet face-to-face with customers, so that they can earn more from their farming products," said Agriculture Minister Anton Apriyono at the launch.

He said that farmers had all these times been a marginalized group, as they could only earn a little from their farming products that were usually traded to customers via middlemen, who took the most benefit from the mediated trading system.

"Based on a research, farmers can earn an added value up to 23 percent of overall agribusiness activities with the direct marketing system," added Anton, taking as example the success of farmer markets in Malaysia, Britain and some other countries.

At the same occasion, the Agriculture Ministry's director general for processing and marketing of agricultural products, Djoko Said Damardjati, said that Jakarta was the first province in Indonesia organizing such a market.

"We'll have this farmer market in two or three provinces in total by the end of the year," said Djoko, adding that the other provinces might include Yogyakarta, Bandung in West Java, or Semarang in Central Java.

According to Djoko, the ministry has set aside a fund of around Rp 400 million (approximately US$43,716) for the program this year.

Overall, a total of 34 cities and municipalities in 17 provinces of Indonesia will host the farmer markets in the next few years.

The ministry will provide all farmer participants with kiosks for free.

West Sumba teacher takes home Kalpataru award

M. Taufiqurrahman, The Jakarta Post, Jakarta

Like Sysiphus of Greek mythology, who relentlessly carries a rock uphill, West Sumba native Elan Wukak Victor has for years carried out a similarly endless task, growing trees on rocks.

The 63-year-old English teacher started by encouraging his pupils to grow trees in their schoolyard, an idea he took from school to school.

And after 30 years, Elan has planted 400,000 trees, distributed 100,000 seeds to 23 green community groups he helped set up as well as built 81 water reservoirs across Waikabubak, a barren, hilly village in West Sumba, East Nusa Tenggara.

Elan's hard work paid off on Wednesday, when he, along with 11 other environmental activists, was awarded a Kalpataru, the highest award for environmentalists in Indonesia.

Elan won in environmental conservation pioneer category, together with Amandus Kaize from Merauke, Papua, and village head Slamet Tugiyanto from Magelang, Central Java.

Kaize was honored for his efforts to grow a rare variety of plants in a protected forest controlled by his tribal community, while Slamet won for promoting multiple crops among local farmers.

One notable figure who also won the award was former West Java governor Solichin Gautama Purwanegara, for his campaign against illegal logging and on the regreening of community-controlled forests in nine regencies in West Java.

Apart from the Kalpataru awards given to environmental activists, the government has handed out Adipura awards to cities that strive to promote cleanliness.

This year, the government gave the awards to 84 cities throughout the country. More than 300 cities were nominated for the Adipura awards this year.

All five municipalities in Jakarta won Kalpatarus in the category of metropolitan city. Other cities in the category which won Kalpataru are Palembang in South Sumatra and Surabaya in East Java.

Jakarta's gain, however, was at the loss of other cities in the greater Jakarta area such as Bekasi, Bogor and Tangerang. None of these cities won Adipura in this year's contest.

Other cities which also won Adipura include Padang (West Sumatra), Yogyakarta, Denpasar (Bali), Malang (East Java) and Pekanbaru (Riau).

President Susilo Bambang Yudhoyono said in his speech before presenting the two awards that the Indonesian people did not have to wait for people in other countries to save the environment.

"Let us save the earth together with other people in this world," Yudhoyono said.

The President also called on local governments to take environmental protection into account when making policy.

He also reiterated his statement about the need to prepare for global warming's fallout.

Yudhoyono said that global warming would have a disastrous impact on Indonesia as an archipelagic country, as the rising of sea levels would drown many of the country's small islands.

"The time is high for us to find a breakthrough and brace for global warming," he said.

Indonesia has over 18 million micro-business

Manado, North Sulawesi (ANTARA News) - Indonesia has 18,933,701 micro businesses accounting for 83.2 percent of the total number of enterprises which was recorded at 27,737,314, an economic census conducted by the Central Bureau of Statistics (BPS) in 2006 showed.

The number of small-scale businesses was 3,594,254 or 15.8 percent, medium-scale businesses 152,789 or 0.7 percent, large businesses 44,038 or 0.2 percent and unclassified businesses 2,532 or 0.1 percent, Nursinah Amal Urai, a BPS director, told a seminar on the economic census 2006 here Friday.

The census also showed 10,297,908 or 46.3 percent of the total number of enterprises were engaged in wholesale and retail trading, 3,220,156 or 14.2 percent in processing industries, 3,015,208 or 13.3 percent in transportation and warehouse services and 2,702,574 or 13.3 percent in the communication sector.

Quoting the data, Nursinah said the business sector in Java accounted for 60.13 percent of national economic activities.

Three provinces which made the largest contributions to the national economy were Jakarta (17.48 percent), East Java (15.18 percent) and West Java (14.55 percent).

Other provinces whose contribution to the national economy reached more than 1 percent were Central Java (8.47 percent), Banten (3.44 percent) and Yogyakarta (1 percent).

The significant contribution from provinces in Java to the national economy could not be separated from the processing industries whose percentage stood at 80.

The data also showed the contribution of Java to the national economy had continued to grow in the past five years, Nursinah said.

Java`s contribution to the national economy was recorded at an average of 59.32 percent in 2000-2005 and it increased to 60.13 percent in late 2005.

Investment in first quarter 2007 up 27.16 pct from previous year

Jakarta (ANTARA News) - Capital Investment Coordinating Agency (BKPM) Chief Muhammad Lutfi said here on Tuesday investment in Indonesia in the first quarter of this year reached Rp40.59 trillion or up by 27.16 percent compared to the same period last year.

This meant investment growth had returned to a pre-crisis level, he said.

He said "the figure represents 30 percent of the government`s investment target for the year reaching 70 percent of the expected investment of 2005 totaling Rp172.77 trillion."

Lutfi said he believed the achievement would help push economic growth to meet this year`s target of 6.3 percent.

The target of investment for 2007 had been set at Rp83.08 trillion.

According to BKPM records, foreign investment grew by 15 percent from US$2.6 billion to US$2.99 billion from January to March.

Domestic investment meanwhile reached Rp13.68 trillion or rose 60.56 percent compared to the same period last year when the figure was Rp8.52 trillion.

Five sectors that had received the largest foreign investment were pharmaceutical and chemical industries (US$1.5 million), printing, paper and paper product industries (US$394.3 million), mining (US$252.3 million), food industries (US$189.8 million) and construction (US$149.3 million).

The five biggest sectors receiving domestic investment meanwhile were printing and paper industries (Rp3.8 trillion), metal, machineries and electronics industries (Rp2.9 trillion), food industries (Rp2.4 trillion), plantations and food crops cultivation (Rp1.73 trillion) and construction (Rp1.4 trillion).

Jambi enjoyed the biggest domestic investment (Rp3.7 trillion) followed by Southeast Sulawesi (Rp2.8 trillion), Jakarta (Rp2.4 trillion), Riau (Rp1.9 trillion) and East Java (Rp672.3 billion).

The largest foreign investment meanwhile was enjoyed by East Java (US$1.5 billion), followed by Jakarta (US$662.9 million), Riau (US$392.4 million), West Java (US$200.1 million) and Banten (US$86.5 million).

"Investment in East Java remains high meaning that it has not been affected by the Lapindo mudflow disaster," he said.

Lutfi said the largest foreign investment came from Britain totaling US$1.4 billion in 17 projects while the second largest investment was from Taiwan totaling US$398.4 million in 11 projects.

Australia came third with its investment reaching US$179.2 million in eight projects, followed by South Korea US$165,2 million in 46 projects and Japan US$149.1 million in 24 projects.

9.7 million bank accounts closed or emptied in three months, says official

Urip Hudiono and Yuli Tri Suwarni, The Jakarta Post, Bandung

Some 9.7 million bank accounts have in the past three months been closed or been emptied of funds, the National Development Agency (Bappenas) has found, raising alarm bells for the country's banking sector and the economy as a whole.

The data, which Bappenas compiled from figures produced by the Deposit Insurance Agency (LPS), referred mostly to accounts containing deposits of under Rp 100 million (some US$11,000) -- not surprising given that the LPS recently lowered the upper deposit-guarantee ceiling to Rp 100 million.

The Bappenas director for financial institutions and monetary analysis, Sidqy Lego Pangestu, said that he was still investigating the cause of the phenomenon, and whether it would have an adverse impact on the economy.

"There are several possibilities," he said earlier this week at an economics seminar in Bandung. "It could mean that people with savings of under Rp 100 million are getting poorer because their savings are being spent on their everyday needs, or it could be because they have no jobs or regular income, or because of a disaster, or the stagnant situation in the real sector."

Sidqy admitted that Bappenas had no data on whether such a phenomenon had occurred before, or how much the money from the closed accounts amounted to.

However, senior LPS official Firdaus Djaelani dismissed worries about the phenomenon, saying that the closed accounts were mostly held with Bank Rakyat Indonesia (BRI).

BRI, he said, had reported to the agency that it had closed a large number of inactive accounts, and expunged them from its records.

The amount of money was also insignificant, he said, adding that the closing of the accounts had nothing to do with the lowering of the LPS's guarantee ceiling.

"Many of the accounts were probably opened just as formal prerequisites to obtain loans from the bank," Firdaus said. "I think it would be too hasty to jump to any conclusions that it is related to lower purchasing power on behalf of the public."

However, Sidqy pointed to a Central Statistics Agency (BPS) report that showed that 1.7 percent of bank accounts in Indonesia accounted for 80 percent of the country's deposits, a finding that has been backed up by the LPS.

According to Sidqy, this reflected the gaping disparities in the economy, and could represent a time bomb for the banking sector should problems in the industry and the economy result in a run on funds.

Another problem looming on the horizon for the banking industry, he said, was the significant amount of undisbursed loans, which had risen to Rp 179 trillion at present from Rp 160 trillion at the end of last year, or a fifth of total lending, which in 2006 grew by a less-than-expected 14 percent to Rp 792.3 trillion.

"Policies should, therefore, be more pro-business in terms of tax incentives, regulations, and the time needed to obtain business permits," Sidqy suggested, to remedy the current situation where many businesses are reluctant to take out loans due to the high risks involved, despite recent improvements in the macroeconomic situation.

Govt easing procedures of doing business in densely-industrialized areas

Jakarta (ANTARA News) - The Indonesian government is trying to loosen six procedures for doing businesses in the country`s eight densely-industrialized regions to raise its investment privilege rating to 75th in 2008 from 135th in 2006, an official said.

"We will launch the project in eight densely-industrialized regions first," Head of the Investment Coordinating Board (BKPM) Mohammad Lufti said following a limited coordination meeting with Vice President Jusuf Kalla at the Office of the Administrative Reforms Minister here on Friday.

The meeting also agreed on the formation of a small team with Administrative Reforms Minister Taufiq Effendy as its chief and the BKPM chief Mohammad Lufti as executive chief to relax the procedures for doing businesses in the regions.

The eight regions are Jakarta, Banten, West Java, Central Java, East Java, Sumatra and Sulawesi.

The six procedures cover exports and imports, enforcing contracts, paying taxes, applying for building permits, and starting a business.

"Under the current circumstances, we will be able to improve our rating to 56th from 135th on condition that other countries do nothing to improve their investment privileges," Lufti said.

Under the present procedure, a foreign investor needed 97 days to start a business in the country and the government had been trying to reduce the period to 23 days, he said.

"God willing, a foreign investor can start doing business within 23 days," he said.

Delayed Sumatra-West Java gas pipeline comes onstream

Ika Krismantari, The Jakarta Post, Palembang

After nearly four months of delay, state-owned gas distributor PT Perusahaan Gas Negara's (PGN) US$1.1 billion pipeline linking South Sumatra and West Java finally came onstream Sunday.

The pipeline will initially deliver 30 million cubic feet per day from a Pertamina gas field in Pagardewa, South Sumatra, to industrial areas in Cilegon, West Java.

"We will gradually increase the gas distribution to about 250 million cubic feet per day in 2008," PGN president director Sutikno said during a ceremony to inaugurate the operation of the South Sumatra and West Java (SSWJ) gas pipeline.

State Minister for State-owned Enterprises Sugiharto and Energy and Mineral Resources Minister Purnomo Yusgiantoro also attended the ceremony.

The 375-kilometer pipeline is the first part of the company's 1,101-kilometer gas pipeline network connecting South Sumatra and West Java.

The second and final pipeline in the network is still being completed and will distribute gas from ConocoPhillips's gas field in Grissik, South Sumatra through Pagardewa and Labuhan Meringgai to Muara Bekasi and Rawa Maju in Bekasi, West Java. The pipeline is expected to go on stream in the fourth quarter of this year and will distribute up to 400 million cubic feet per day.

PGN's shares slumped by more than 20 percent from Rp 9,650 ($1.06) on Jan. 12 after PGN unveiled that the SSWJ gas pipeline project would be delayed.

Sutikno estimated that the company's soon to be announced 2006 profit will reach Rp 2 trillion (about $222 million), exceeding the government's target of Rp 1.89 trillion.

In 2005, PGN's total revenue rose by 22 percent from Rp 4.4 trillion in 2004 to Rp 5.4 trillion in 2005. Its operating profit over that period rose by 82 percent to Rp 862 billion.

With the operation of the new pipelines, the company expects its gas distribution volume to increase from 338 million cubic feet per day last year to 555 million cubic feet per day this year.By 2008, gas volume is expected to reach 919 million cubic feet per day.

Under the existing contracts, PGN will distribute a total of 3.3 trillion cubic feet of gas for 12 years from Pertamina's Pagardewa field and for 17 years from ConocoPhillips' Grissik field.

Starting this March, a power plant owned by Indonesia's biggest steelmaker PT Krakatau Steel in Cilegon will start receiving 30 million cubic feet per day from the pipeline. The volume will be increased to 40 million cubic feet per day in May. PGN is also planning to build 509-kilometer pipeline from Duri, Riau to Medan, North Sumatra with an initial capacity of 350 cubic feet per day. The construction of the project requires approximately $537 in investment.

Association makes green pledge

The Jakarta Post

JAKARTA: The Indonesian Real Estate Association (REI) has pledged to reduce the environmental impacts of its business to decrease the chance of flooding in the city.

"The construction of green buildings will not be bad for business," association chairman Lukman Purnomosis said Friday as quoted by Antara.

Developers are also ready to build percolation pits to harvest rainwater in housing complexes in Jakarta, Bogor, Depok, Tangerang and Bekasi, he said.

"We will set aside more green areas in the housing complexes we establish."

Environmentalists have said developers who fail to preserve green space and tree cover are partly to blame for the increased flood risk in the city.

Lukman said the government needed to issue a policy on environmentally and pedestrian friendly design.

Banks to help debtors affected by floods

Jakarta (ANTARA News) - Banks will help debtors affected by recent floods in Jakarta that have paralyzed production in some industries.

"We have already coordinated with Bank Indonesia (the central bank) about it. In principle we all will help them," the general chairman of the National Banking Association (Perbanas), Sigit Pramono, said here on Sunday.

He said that he had already written to Perbanas members to make an inventory of, verify and identify the debtors` problems to determine the form of assistance for them.

"We hope we could report the result of the inventory to Bank Indonesia within a week for the bank to decide the assistance," he said.

He said the assistance could be extension of grace period or an interest cut or even writing off of interest.

"We still need some time to determine the form of assistance," he said, adding that debtors now were still unable to tell how much they had lost," he said.

He said the national banks had actually had an experience in such a case namely when they helped debtors in disaster-hit Aceh and Yogyakarta so the pattern for it was actually already available.

Bank Indonesia spokesman Budi Mulya said based on central bank regulations debtors in regions hit by disasters were entitled to getting special treatment and therefore they would receive relief assistance.

State-owned companies to help small businesses affected by flood

Jakarta (ANTARA News) - State Minister for State-owned Companies Sugiharto said here Sunday he would formulate working capital assistance for small businesses that had been affected by recent floods in Jakarta, Bogor, Depok, Tangerang and Bekasi.

"We will formulate working capital assistance which could be given in the form of subsidy or without a colateral," he said on the sideline of a clean-up operation by state-owned companies.

He said priority would be given to small businessmen that could not continue their business activities after the recent floods.

The funds for it would be taken from the Environment and Partnership Program (PKBL) funds state-owned companies had so far allocated as part of their corporate social responsibility.

"Every state-owned company every year sets aside three percent of its profit for the PKBL. The funds are indeed for helping people like after recent floods and they will be given in the form of a grant," he said.

He said the capital assistance would be coupled with bank credits for small-scale businesses.

"In principles the state-owned companies have already had funds for those who need to rehabilitate their businesses," he said.

Asked how much that had been collected for the PKBL in 2006 the minister said it reached around Rp1 trillion because the state-owned companies` profit that year reached more than Rp42 trillion.

"I did not say that the Rp1 trillion would be for Jakarta and its environs only. We are now still counting the number of small businessmen that have been affected by the floods," he said.

Asked when the capital would be distributed he said he hoped it could be realized within a week or two weeks.

"The meeting on it happened only on Friday while the working day would only begin on Monday so we could only start formulating it that day. We think in two weeks` time people will start needing the money as now they are still busy cleaning up their residences," he said.

Canada, Spain and Azerbaijan provide aid to flood victims

Abdul Khalik, The Jakarta Post, Jakarta

Canada, Spain and Azerbaijan announced Thursday their contributions to the overseas aid effort to assist the victims of Jakarta's floods.

The Canadian ambassador to Indonesia, John Holmes, said his country would donate Rp 382 million in aid, to be channeled through the Canadian International Development Agency, the Indonesian Red Cross (PMI) and the Circle of Women's Alternative Education (Kapal Perempuan), to provide urgently needed food and emergency supplies.

"On behalf of all Canadians I wish to extend our sympathies to the families and friends of those who lost their lives, and to those communities affected by the flooding," Holmes said in a statement.

He added that Canada would consider providing further assistance should the situation worsen and the Indonesian government issue a request for international assistance.

"Canada is committed to helping Indonesia in times of crisis as we did in the aftermath of the tsunami in Aceh and the earthquake in Yogyakarta," Holmes said.

The Canadian Embassy said that the Rp 229 million contribution to PMI would allow the organization to distribute hygiene kits to some 2,200 families across the city while the Rp 153 million aid to Kapal Perempuan would be used to provide food and other relief to households in Klender, East Jakarta, and Kalibata, South Jakarta.

Spain also announced Thursday it would contribute 100,000 euros (around US$129,000), mainly for drinking water and sanitation, to be distributed through PMI.

Spain's Queen Sofia, along with the country's State Minister of International Cooperation, Leire Paj¡n, announced the aid after inspecting flood damage in the capital.

Meanwhile, Azerbaijan's embassy in Jakarta announced it handed over food parcels, drinking water and medicine to flood victims directly through the PMI on Thursday.

The Azerbaijani Embassy offered its condolences to the Indonesian government and people affected by the Jakarta floods, and said it would quickly send emergency relief to the victims.

Scores of countries have so far contributed to the flood relief effort.

On Wednesday, the European Union announced that it would contribute Rp 6.6 billion while Germany said it would donate Rp 2.9 billion (not Rp 2.9 million as reported in our story on Thursday on Page 12).

On Tuesday, the Netherlands, Japan and Switzerland donated US$1.29 million, Rp 1.1 billion and US$50,000 respectively while on Monday, Australia and the U.S. contributed over Rp 1 billion and US$100,000 respectively.

The Netherlands embassy announced that Ambassador Nikolaos van Dam would hand over the first 20 boats on Friday to Jakarta police as part of its aid to the flood victims.

Foreign Aid Flows In

Thursday, 08 February, 2007 | 17:24 WIB

TEMPO Interactive, Jakarta: Foreign aid for victims of the flooding in Jakarta, Bekasi, Tangerang and Depok has started to flow in.

The total number of evacuees due to the flooding during the last few days has reached 432,583 people.

Countries including Germany, the Netherlands and the United States of America, as well as world organizations, are committed to distributing aid for the flood victims.

In a press statement yesterday (7/2), the Netherlands announced that it was providing one million Euros (Rp11.7 billion) of aid.

“We have conveyed the aid commitment to Foreign Affairs Minister Hassan Wirajuda,” said Agnes van Ardenne, the Netherlands' Minister for Development Cooperation.

According to her, the aid will be distributed via the Netherlands Red Cross and the Indonesian Red Cross (PMI).

Around Rp5.85 billion will be used for providing food, clean water, medicines, clothes and blankets.

The remainder will be distributed via the International Organization for Migration for purchasing rubber boats.

The US will donate US$100,000 that will be distributed via the Bureau of Foreign Aid for Natural Disaster under the US Agency for International Development (USAID).

The German Foreign Affairs Ministry, in the press statement on Tuesday stated that it would provide aid amounting to US$250,000 (Rp2.9 billion), while New Zealand will provide NZ$100 million (around Rp640 billion).

World organizations that are also providing aid include the World Food Program.

This organization is to provide aid in the form of food for flood victims in Jakarta, and as initial aid, there are 526 boxes of noodles and 702 packs of biscuits.

In addition, the European Commission (EC) has allocated 600,000 Euros, or around Rp6.6 billion, in aid.

ENI SAENI | YUDHA SETIAWAN | RUDY PRASETYO

Singapore Red Cross donates $50,000 towards rescue efforts in Jakarta

By Hoe Yeen Nie, Channel NewsAsia | Posted: 07 February 2007 1638 hrs

SINGAPORE : The Singapore Red Cross has donated $50,000 to its sister organisation, Palang Merah Indonesia (PMI), towards its rescue and evacuation efforts in Jakarta.

More than 350,000 people have been left homeless since massive flooding plagued the Indonesian capital due to torrential rains.

Through "Rapid Response Teams", PMI has set up temporary shelters and field kitchens which provide meals to over 35,000 people in affected areas daily.

Other relief items include tents, life jackets, rice and instant noodles.

Plans are also underway to implement a system of distributing drinking water.

The Singapore Red Cross says the money will go towards supporting these rescue efforts.

Depending on PMI assessment, the SRC says a second phase of assistance, including vaccination programmes and distribution of medicine, is possible. - CNA /ls

United Nations to help Jakarta floods victims

NEW YORK (Antara): The United Nations' humanitarian bodies would send relief aid for flood victims in Jakarta and suburban areas.

The UN's Office for the Coordination of Humanitarian Affairs (OCHA) has identified goods and emergency tools needed such as food, clean water, clothes, blankets, medicines, and search and rescue (SAR) equipment and teams, a press statement from the UN said on Monday.

Official of the UN's Emergency Relief Coordinator Margareta Wahsltrom said that the United Nations in cooperation with a number of non-governmental organizations (NGOs) and countries, who were going to provide assistance for flood-hit Indonesia,were currently monitoring the situation in the flood aftermath.

The UN relief aid would involve the United Nations Development Program (UNDP), UNICEF, the World Food Program (WFP), and the World Health Organization (WHO).

Information from the Jakarta Police on Tuesday morning said that the death toll in five days of floods in Jakarta and environs climbed to 36, consisting of 26 in Jakarta, 6 in Tangerang and 4 in Bekasi.

Several areas of Jakarta have been inundated following days of torrential rains which caused some of the rivers and canals whichcriss-cross the city to burst their banks.

The floods since Thursday have forced around 300,000 to take refuge to safer areas.

Australia's contribution of A$150,000 (US$117,000) would provide thousands of emergency food parcels and hygiene kits to be distributed by the Indonesian Red Cross, Ambassador Bill Farmer said in a statement.

The US embassy said it would give $100,000 in emergency assistance through the Red Cross and other organizations to provide emergency supplies and items such as plastic sheets, cooking utensils and sleeping mats.

President Susilo Bambang Yudhoyono and his wife, Ani Yudhoyono, visited flood-affected areas in Kampung Melayu, East Jakarta, on Friday and talked with flood victims sheltered in the Santa Maria school compound in Jatinegara Barat.

U.S., Australia express commitments to help flood victims

JAKARTA (JP): Several countries including the U.S. and Australia have expressed their commitments to convey assistance for hundreds of thousands of flood victims, whose houses in Jakarta and its surroundings, have been inundated since last Friday.

The U.S. government will provide US$100,000 of emergency relief assistance for displaced people, according to a press release from the U.S. embassy in Jakarta Monday.

The embassy said that the assistance will be channeled through the International Federation of Red Cross (IFRC) and its local partner -- the Indonesian Red Cross--, CARE, Mercy Corps, and World Vision.

Meanwhile, the Australian embassy in Jakarta also said that his country will also provide 150,000 Australian dollar (US$116,243) to support the Indonesian government to help flood victims.

Australian Ambassador to Indonesia Bill Farmer said in his statement that the assistance include 5,000 food packages and 5,000 hygienic stuffs.

At least 25 people have been killed, with some 340,000 others forced from their homes, most staying in mosques, schools or with friends. Electricity and water supplies were cut in many districts, and floods blocked off scores of roads.

Yudhoyono tells Greater Jakarta to mitigate annual flooding

JAKARTA (Antara): President Susilo Bambang Yudhoyono ordered authorities in the Greater Jakarta to design a concrete program to mitigate annual floods in the region, which often killed many people and damaged houses, properties and infrastructures.

"We need a joint serious effort to mitigate floods," he was quoted by Antara news agency as saying in sideline of his visit to flood victims in Bekasi municipality Sunday.

This year flooding killed at least 20 people across the Greater Jakarta -- Jakarta, Bogor, Depok, Bekasi, and Tangerang -- and displaced about 200,000 others. Water also inundated railway tracks and damaged other infrastructures.

Massive flooding in the capital is frequently also sparked by heavy rains in the upper areas -- Depok and Bogor -- as water from the areas flowed to the city through Ciliwung River.

The president told the local administrations in the Greater Jakarta to immediately draft the plan and to calculate the cost of flood infrastructure.

Regional autonomy is blamed for the difficulty to design integrated flood mitigation projects because each administration in the Greater Jakarta has its own plan.

The Jakarta city administration often blamed authorities in upper areas for excessive use of lands in their territories for housings and other facilities, which cause serious damage of green areas, needed to be maintained for water conservation.

Meanwhile, authorities in the upper areas said Jakarta has to give compensation for lands in their respected territories, which should be maintained for water conservation.

So far, there has been no institution in the central administration, which has power and wish to mediate their disputes.

Regulator investigating possible irregularities in PGN affair

Jakarta (ANTARA News) - The capital markets and financial institutions supervisory board, Bapepam-LK, has begun investigating possible irregularities that may be behind the sharp fall in the price of PT Perusahaan Gas Negara's (PGN's) shares last week, Bapepam-LK chairman Fuad Rahmany said.

PGN slumped by 23.32 pct to close at 7,400 rupiah Friday after the company announced that it was postponing by three months the start of commercial operation of its new gas pipeline between South Sumatra and West Java.

Rahmany told reporters: "I have issued a letter of instruction to undertake an investigation of the case. Both PGN management and brokerage houses will be questioned over the matter."

This follows a demand by the minister in charge of state-owned enterprises, Sugiharto, that the board investigate the PGN affair.

Asked about the possibility of insider trading, Rahmany replied: "We need to investigate before come to such a conclusion."]

The management will be questioned about whether there was negligence in complying with disclosure requirements, he was quoted by XFN Asia as saying.

Asked about reports in the news media that Bapepam-LK will question 12 brokerages, he replied: "Yes, around that number."

He declined to identify these brokerages.