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.

Hundreds of Indonesian Migrant Workers Repatriated

Jakarta Globe, Jan 19, 2015

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

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

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

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

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

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

Saudi Arabia and Malaysia are the most popular destinations.

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

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

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

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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.

Saudi Arabia Migrant Moratorium Still Stands

Jakarta Globe, February 23, 2014

Indonesian Migrant Workers on August 18, 2013 wait to
 disembark from the Labobar, the ship that brought them from
 Saudi Arabia to Tanjung Priok Port in North Jakarta after they overstayed
their authorization to work in Jeddah. (JG Photo/Yudhi Sukma Wijaya)

Jakarta. The Manpower and Transmigration Ministry said on Friday that the moratorium on Indonesian migrant workers seeking employment in Saudi Arabia had not been lifted, despite the signing of a memorandum of understanding touted as a step toward reconciliation on the issue.

“We want to confirm that up until now the status of the moratorium on migrant worker placement in the domestic sector in Saudi Arabia is still on, so sending migrant workers [there] is not allowed,” Secretary General of Manpower and Transmigration Abdul Wahab Bangkona said.

He said the moratorium remained in place because the details of a potential agreement had not yet been hashed out fully.

“The moratorium… is still on until there’s agreement on better systems, mechanisms, conditions and working contract standards which provide protection and welfare to Indonesian migrant workers,” he said.

The points that remain to be agreed upon include: authorized types of work, working hours, work placement procedures, salary and payment methods, time off, leave, contract requirements, contract extension and termination procedures, and other rights and obligations of employers and employees.

The Indonesian government has also asked for guarantees that workers would have communications access, the right to keep their own passports, insurance and medical treatment, control over their placement fees, the availability online recruitment and placement, placement and protection guidelines, a 24-hour call center to deal with problems and an established process for repatriation.

“Revocation of the moratorium… will be decided later after the Indonesian and Saudi Arabian governments and all stakeholders can implement all points in the agreement and agree on all conditions,” Wahab said.

A joint working committee consisting of representatives of both countries will be responsible for working out the remaining specifics, according to the ministry.

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Twitter CEO defends 'principled' data request policy

Google – AFP, 26 June 2013

Twitter CEO Dick Costolo speaks during a discussion on social

media on June 26, 2013 at the Brookings Institution (AFP, Mandel Ngan)

WASHINGTON — Twitter is holding to a "principled" policy on national security data requests and will "push back" in some cases to protect the privacy of its users, its chief executive said Wednesday.

Dick Costolo, appearing at a forum at the Brookings Institution in Washington, declined to comment on whether Twitter had specific requests under the vast data-gathering program called PRISM made public this month.

But he said the popular messaging service maintains its policy of allowing users to be informed of any requests from authorities, both in the United States and abroad.

"We've been very clear about having articulated a very principled policy around access to user data," he said.

"When we receive a valid, legal request in the countries in which we operate we will abide by the rule of law."

He added that for "other requests that may be more broad in scope and not specific legal requests that don't meet our principle... we will push back on."

Twitter was not among the nine Internet firms cited in documents for providing access to the secretive National Security Agency, which seeks to identify potential terrorist threats from abroad.

Costolo steered clear of questions on why Twitter was absent from the list, which includes Google, Yahoo!, Facebook, Microsoft and Apple.

But he noted that Twitter has gone to court in certain cases to fight "gag" orders and to allow users to be in informed of how their own data is used.

"We feel that our users have a right to know when their information is being requested," he said.

"This is not just something we deal with in the US, it's something we deal with in all the countries (where) we operate."

Costolo also defended the messaging platform in the face of criticism from Turkish Prime Minister Recep Tayyip Erdogan, who branded Twitter as a "troublemaker" inciting protests against his rule.

"The beauty of having this open public platform that allows everybody around you to see and hear what you think is that... that it's this public town square. That's what it is. We don't editorialize what's on it," he said.

"We don't say, 'If you believe this you can't use our platform.' You can use our platform to say what you believe... The platform itself doesn't have any perspective on this. It's a vehicle for people to give their perspective."

Spending spree: Saudi billionaire Prince
Alwaleed bin Talal has announced today
that he is investing $300 million into social
networking site Twitter

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Lion Air Accused of Extortion

Jakarta Globe, SP/Robertus Wardi, May 11, 2013.

A Lion Air airplane takes off at Soekarno-Hatta airport in Jakarta, in this
file picture taken March 18, 2013. (Reuters Photo/Beawiharta/Files)

Indonesian airline Lion Air has been accused of extorting one of its Saudi Arabian business partners.

“Our client [invested] $18 million with Lion Air,” Guntur P. Daulay, businessman Miski Omar Hassan’s lawyer, said at a press conference on Saturday.

“Because our client maintained that there was no transparent business report delivered by [Lion Air’s] management, our client demanded that he get his money back. However, because the [the airline] couldn’t afford to return the funds, Lion Air owner Rusdi Kirana put up $1.5 million of his own money.

“Later, though, the money that was lent [by Rusdi] was said to have been embezzled by our client,” Guntur continued.

Omar was summoned by the Jakarta Police office on May 6 after missing two previous summons.

“Our client was unaware of the two previous summons because he was abroad at the time,” Guntur said. “Then, on May 6, he was detained.”

On May 7, a representative with Lion Air requested that Omar pay back the $1.5 million debt to settle the conflict. The company also asked Omar to give up his assets and his apartment if he could not afford to return the sum.

Omar, however, refused to pay, and Guntur maintained that Lion Air is guilty of extorting his client.

Edward Sirait, the general affairs director of Lion Air, denied the accusation.

Edward claimed that Omar is a travel agent who paid Lion Air a deposit to sell the airline’s tickets. He also questioned how Omar could think that he would receive a 100 percent return on his earlier investment.

Additionally, he said that Omar should handle the matter of the investment separately from the Rusdi Kirana loan.

“If it is related to business, there has been an agreement between both parties. We’re open to talking about the tickets and other [business related] matters. But the $1.5 million is a different thing.”

Furthermore, Edward accused Omar of running away after receiving the money.

“He had no intention of returning the money … that’s why we reported him to the police.”

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Sri Lanka to ban women from being maids abroad: minister

The Daily Star, AFP, January 24, 2013

Sri Lankan Buddhist monks and their supporters march outside the president's
 residence demanding authorities to stop sending Sri Lankan women as maids
 to the Middle East following the recent beheading of a Sri Lankan maid by Saudi
Arabia, during a protest in Colombo, Sri Lanka, Tuesday, Jan. 22, 2013. (AP Photo/
Eranga Jayawardena)

                            

COLOMBO: Sri Lanka said on Thursday it would bar women of all ages from travelling abroad to work in menial jobs, following an international outcry over the beheading of a young nanny in Saudi Arabia.

Information Minister Keheliya Rambukwella announced that women under 25 were now banned from going to the Arab state to work as maids, adding that it was the first step towards a worldwide travel ban for low-paying jobs.

The move was in response to the execution earlier this month at a prison in Riyadh of Sri Lankan maid Rizana Nafik, who was only 17 when she was charged with smothering a four-month-old baby in Saudi Arabia in 2005.

"As a first step we are raising the age limit to 25. We will gradually move towards a total ban on our women going abroad to do low-paying jobs," Rambukwella told reporters.

He did not say by when the total ban would kick in, but said the authorities have started to discourage women from going to the Middle East, especially Saudi Arabia where most maids are paid less than $300 a month.

Nafik was beheaded after she was found guilty of smothering an infant in her care after an argument with the child's mother, the Saudi interior ministry has said.

The US and the United Nations led international condemnation of the Saudi authorities over the January 9 execution.

Nearly 1.7 million Sri Lankans are employed abroad and the $6 billion they sent home last year is a key source of foreign exchange for the government.

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‘HSBC report pushes West to rethink alliance with Saudi Arabia’

RT.com, 18 July, 2012

The national flag of Saudi Arabia (AFP Photo/Fayez Nureldine)

A US Senate subcommittee has discovered that British banking giant HSBC gave money to a Saudi bank with suspected links to terrorist organizations such as al-Qaeda. Saudi Arabia has not responded to the findings.

Middle East expert Ali Rizk told RT that the findings put pressure on the West to reconsider its friendly relations with Saudi Arabia.

A report published by the Permanent Subcommittee on Investigations states that HSBC provided funds to the Saudi Al-Rajhi Bank, which a number of media and government reports have tied to terrorist organizations such as al-Qaeda. The company’s top executive appeared before the subcommittee’s hearing Tuesday, and apologized for failing to prevent such oversights. HSBC’s Head of Compliance, David Bagley, said he would resign.

Neither Saudi Arabia, nor Al-Rajhi responded to the subcommittee’s findings, however.

RT: The report names Al-Rajhi Bank, Saudi Arabia’s and the Muslim world largest bank, as a sponsor of terrorism. What does that mean?

Ali Rizk: I think it really stems down to the fact that Saudi Arabia is the main exporter of what could be called radical Islam, the kind of Islam that has tarnished the essence of the real Islam of moderation.

RT: What sort of terrorist groups are we talking about here?

AR: We’re talking about Wahhabi extremists, those people who are now causing violence in Syria, those people who were sent to Chechnya, groups in Uzbekistan. Some elements of the royal family also have also contributed to al-Qaeda. Bandar bin Sultan, the former Saudi ambassador to Washington, for example, met with Osama bin Laden time and again. So we’re talking about all the Sunni extremists groups. The Saudi role in financing al-Qaeda and extremist activity in Iraq is very well known. More importantly, I think that this report further sheds light on the alliance between the Saudi royal family and some Western countries. This will put more pressure on the Western governments to try and change their policy. Now, of course, Saudi Arabia is considered to be an ally. Many people are speculating that maybe the Western governments might reconsider.

RT: Why would they be doing that?

AR: First of all, because we have the uprisings currently happening, which put more pressure on the US and British governments. Until now, Saudi Arabia hasn’t taken any steps towards political reform. The other reason is that Saudi Arabia is the main source of this extremism that would lead to popular vigilance in countries such as the US and Britain. In all these countries, I think people will become more and more aware of what Saudi Arabia really represents, and hence the US might be pushed into a corner. By the way, Hillary Clinton recently said that they are fighting Wahhabism, so I think we are seeing a slow divergence between the West on the one hand and Saudi Arabia on the other. It hasn’t reached a very critical point as of yet, but I believe this report and more similar developments would put more pressure on the US and other Western governments. 

RT: Do you expect any reaction from Riyadh on the report’s findings?

AR: I don’t think that we will see any apology. Saudi Arabia, I think, is behaving in an irrational way now. Saudi Arabia is terrified of what happened in Iraq; the Shia there with Prime Minister Nouri al-Maliki. In Lebanon, you have Hezbollah and increasing Iranian influence. And for that reason, Saudi Arabia is so enthusiastic to topple Bashar al-Assad because they consider him an asset for the Shia axis. I think what we are seeing in Damascus today is a Saudi Arabian response to an increasing Iranian role.

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