RI recovers $3m in stolen assets from Australia

JAKARTA (Jakarta Post): After years of legal and diplomatic efforts, Indonesia has managed to recover US$3 million worth of stolen assets hidden in Australia, and is in the process of taking back some $18 million from Switzerland and $100 million from Britain, officials have said.

According to data from the Justice and Human Rights Ministry, Indonesia has been trying to recover millions of dollars siphoned away by the late owner of the BHS Bank, Hendra Rahardja and the former president director of Bank Surya, Adrian Kiki Aryawan, to Australia since 2003.

Justice and Human Rights Ministry director of international law Prijatni Sawadi said here Monday during a workshop on the UN Convention Against Corruption that Indonesia was now working withAustralia, Switzerland and Hong Kong to bring home more stolen money.

"We continue to cooperate with the countries to bring back our money," she said.

Australian Embassy spokesman Fiona Hoggart declined to comment on the case specifically, but confirmed that both governments have been working together in recovering the assets.

Indonesia, Japan kick off new relations

Abdul Khalik, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono and Japanese Prince Fumihito Akishino each shook an angklung (Sundanese instrument made of bamboo) on Friday to signal a new chapter in Indonesia-Japan relations.

Both leaders said they had hopes of strengthening and widening ties that would create prosperity for both nations.

The sound of the two angklungs wrapped up the ceremony in the Taman Mini Indonesia Indah in East Jakarta and marked the beginning of a year's worth of events aimed at creating a greater understanding between people of both nations.

The event also celebrated the golden jubilee of the establishment of diplomatic relations between the two countries.

On Jan. 20, 1958, then-Indonesian foreign minister Subandrio and then-Japanese Foreign Minister Aiichiro Fujiyama signed a peace agreement as well as an agreement on Japan's war reparation payments to the archipelago.

Speaking in front of hundreds of Japanese and Indonesian businesspeople, officials and media representatives, Prince Akishino, the second son of Japanese Emperor Akihito, said it was important for both countries to continue to embark on beneficial bilateral relations.

"We need to foster heart-to-heart relations by enhancing interactions among our people," he said.

Prince Akishino, who was accompanied by his wife Princess Kiko Akishino, said the more Indonesians who worked and studied in Japan, the more those in the archipelago would become familiar with his country.

He said he hoped 2008, which is named "Indonesia-Japan Friendship Year", would increase and enhance friendships and an understanding between the two nations.

While acknowledging Japan's role in Indonesian economic development, Yudhoyono spoke of Indonesia's contribution to Japan's economic growth.

He said he hoped bilateral ties would be "strengthened, widened and rooted into people of both countries".

"The world has changed since 1958," Yudhoyono said.

"Japan has become the world's second biggest economy while Indonesia has turned into the third largest democracy.

"Our inter-dependence becomes stronger now."

Yudhoyono's audience was made up of many Indonesian ministers, including Foreign Minister Hassan Wirayuda and Trade Minister Mari Pangestu.

He said in order to foster stronger ties, Indonesia and Japan should enhance activities in education, culture, and youth exchange programs.

He said these activities should be in addition to activities in economic fields, which have been to-date based around Indonesia's rich natural resources, such as oil and gas, and Japan's strong technology and production of technology.

The President underlined the need for Japan to transfer its technology to help Indonesia cope with the current problems of climate change and natural disasters.

"I hope that Indonesia and Japan can cooperate to contribute to efforts to create world peace and save the environment," Yudhoyono said.

Both countries deepened their political and economic ties by signing a strategic partnership for peaceful and prosperous future agreement in 2006 and the economic partnership agreement last year.

Japan is Indonesia's largest trading partner.

Two-way trade amounted to US$27.2 billion in 2006, with $16.2 billion surplus in Indonesia's favor.

Japan is also among Indonesia's largest foreign investors, with approved investment plans amounting to $1.68 billion in 2005.

With more than 1,000 Japanese companies operating in Indonesia, Japan's cumulative investment in Indonesia reached $39.4 billion from 1967 to 2006 and created more than 200,000 jobs.

S'pore investors plan to leave Bintan Island

Fadli, The Jakarta Post, Batam

Despite promised free trade zone benefits one foreign investor has confirmed plans to leave Bintan, Riau this year and two others will reportedly follow.

Bintan deputy regent Mastur Taher said electronic company PT Escatec Lobam would cease operations permanently on Jan. 31 and dismiss its 437 workers.

The reasons for the departures weren't specified. The zone, which isn't fully implemented yet, is to cover Batam, Bintan and Karimun islands.

"Local authorities will look into why foreign investors are leaving ... (despite) incentives and facilities like tax holidays," he told The Jakarta Post on Wednesday.

Four companies owned by foreign investors stopped operations in 2007 and were relocated to other countries amid concerns the special economic zone, which is jointly managed with the Singaporean government, was having finding it hard to compete with other foreign investment regimes.

"We have heard about complaints on the high-cost economy, including red tape and complicated procedure in getting permit documents, but we want to stress here that the investors' exit has nothing to do with the government policy and regulations," he said.

He added the local manpower office which is involved in negotiating severance pay for dismissed workers would also participate in probing the reasons behind the departures.

Meanwhile, Jamin Hidayat, CEO of PT Bintan Inti Industrial Estate which manages the industrial zone on the island, said many foreign investors have left and relocated their factories to other countries because of the complicated procedure in obtaining investment permits, the high-cost economy and drastically decreasing orders.

"Escatec producing TV devices and spare-parts is to close down for numerous reasons including the complicated procedure in obtaining permits," he said.

According to him, many foreign investors have quit the islands mainly because of unpredictable government policies.

He said the remuneration system which was revised annually, and the overtime payment policies had triggered a financial problem for investors.

"For instance, Indonesia has adopted the 40-hour working hours per week while other Asian countries are still implementing the 48-hour one per week," he said, adding the government has yet to implement a friendly business policy it promised in the past.

Bintan has 26 foreign companies employing some 11,000 workers.

Timbul Sianturi, a member of the Bintan regental legislature, called on the local government and investors to sit together to discuss the reasons why the investment climate wasn't favorable to business.

"The local administration and investors should not blame one another and go to a round table to solve all problems which have affected the investment climate. Under the free trade zone, more and more investors are expected to come in to the island," he said.

Yudhoyono opens sharia finance expo

The Jakarta Post

President Susilo Bambang Yudhoyono, accompanied by Bank Indonesia's governor Burhanuddin Abdullah (left), officially opened Wednesday a 5-day sharia economic exhibition at the Jakarta Convention Center.

The exhibition, which includes seminars, workshops and bazaars, is aimed at promoting sharia-based banking and financing; the growth of which has remained somewhat sluggish.

Last year, sharia financing grew 30.1 percent, lower than the 34.2 percent recorded in 2006. The country's total sharia-based assets are currently worth Rp 33 trillion (US$3.497 billion), much higher than the Rp 1.7 trillion reached in 2000.

"I expect the country's sharia banking will become a hallmark for the international sharia-banking industry, as Indonesia has the potential to make it happen," Yudhoyono said.

To ensure the growth of sharia-based banking and financing, he added, related ministries and institutions should team up to develop a sharia-based economic system.

The government expects the market share for sharia-based banking to grow by up to 5 percent this year from 1.71 percent last year.

BI governor Burhanuddin is also optimistic the industry would progress further in the years to come. (adt)

ASEAN chief, Palestinian envoy visit Soeharto

Jakarta (ANTARA News) - ASEAN Secretary General Surin Pitsuwan and Palestinian Ambassador to Indonesia Fariz Mehdawi visited critically -ill Soeharto at Pertamina Hospital here on Tuesday.

Pitsuwan, a former Thai foreign minister, arrived at the hospital at 10.45 am local time and left at 11.10 am.

Responding to press questions, the ASEAN chief said briefly that according to information from the presidential physicians` team Soeharto`s condition was okay.

Meanwhile, Ambassador Mehdawi, wearing an Indonesian batik shirt, arrived at the time Pitsuwan was leaving the hospital.

Among foreign dignitaries who visited Soeharto during the past few days were also former Singaporean prime minister Lee Kuan Yew, former Malaysian prime minister Mahathir Muhammad and Brunei`s King Sultan Hassanal Bolkiah.

"I feel sad to see a very old friend with whom I had worked closely over the last 30 years, not really getting the honors that he deserves," Lee told journalists for Singapore media after the visit, according to a Channel News Asia report as quoted by Reuters.

Soeharto was hospitalized 12 days ago for multiple organ failure after a decline in the functions of his heart, lungs and kidneys.

Sultan Bolkiah visits ailing Soeharto

Jakarta (ANTARA News) - Sultan Hasanal Bolkiah of Brunei Darussalam visited former president Soeharto who was being treated at Pertamina Hospital in South Jakarta on Monday.

Bolkiah arrived at the hospital at 5.30 p.m. by a Mercedez which had an escort of three security guard cars.

During the visit, he was accompanied by Indonesian Religious Affairs Minister Maftuh Basyuni and received by former minister/state secretary Moerdiono.

Dressed in black suit, blue shirt and dark blue tie, Bolkiah went straight to the room where the 86-year-old Soeharto was being treated.

Bolkiah left the hospital at 5.49 p.m. However, no journalist could interview him as he was tightly guarded by security personnel who had been stationed at the hospital`s lobby since one hour earlier.

Moerdiono said Bolkiah came to the bedside of the former Indonesian leader to pray for his recovery.

"He visited Pertamina Hospital to see for himself the health condition of his close friend," Moerdiono said.

Bolkiah is the third high-profile foreign dignitary to visit Soeharto.

Previously, former Singaporean prime minister Lee Kuan Yew and former Malaysian prime minister Mahathir Mohamad also visited Soeharto who was admitted to the hospital on January 4 after suffering from anemia, low heart beats and severe edema.

Mahathir visits ailing Soeharto

Jakarta (ANTARA News) - Former Malaysian prime minister Mahathir Mohamad visited former president Soeharto who was lying in critical condition at Partamina Hospital here on Monday.

Mahathir who was accompanied by his wife St Hasmah arrived at the hospital at 12:40 Western Indonesian Standard Time (WIB) under a tight security guard by Indonesian police and Malaysian Embassy personnel here.

The former Malaysian prime minister was escorted by the security officers towards the fifth floor of the hospital where the ailing Soeharto was being treated.

Mahathir, whose term of office overlapped Soeharto`s, did not speak to reporters but smiled at newsmen who called out to him.

Besides Mahathir, other dignitaries who visited the former Indonesian strong man included former religious minister Quraish Shihab, former minister/state secretary Moerdiono and former housing minister Cosmas Batu Bara.

Singapore`s former prime minister Lee Kuan Yew also visited Soeharto on Sunday afternoon.

Lee arrived at the hospital at about 11.45 WIB and was welcomed by the hospital`s acting president director Djoko Sanjoto who took him to Soeharto`s room.

Soeharto and Lee are closed friends who are known as figures who have strengthened the Association of South East Asian Nations (ASEAN).

Only members of the presidential doctor team and close relatives such as Soeharto`s children and grandchildren, were allowed to go inside the room where Soeharto is being treated at Pertamina Hospital.

On Sunday, Soeharto was in very critical condition after suffering multiple organ failure, with the function of his heart, lungs, and kidneys further declining.

The 86-year-old`s red blood cell level had also dropped and doctors had to clear his breathing pipe following signs it was clogged. Doctors said his chances to stay alive was only 50 percent.

He had been treated for 11 days since he was rushed to Pertamina hospital for severe anemia and edema.

Singapore's Lee Kuan Yew visits ailing former Indonesian dictator Soeharto

The Jakarta Post

JAKARTA (AP): Former Singaporean leader Lee Kuan Yew went to the hospital Sunday to visit his old friend, the ailing former Indonesian dictator Suharto, who was showing slight signs of improvement after being placed on life-support for organ failure.

A seemingly healthy Lee, who wore a dark blue suit and tie, did not comment to reporters as he headed to Suharto's room, where family members and friends gathered in recent days to pray for his recovery.

The two ascended to power in the mid-1960s and oversaw rapid economic growth at the expense of democratic freedom in their neighboring countries.

Suharto, whose 32-year regime was widely regarded as one of the 20th century's most brutal and graft-ridden, was hospitalized in critical condition a week ago with anemia and a low heart rate.

The 86-year-old initially responded well to a blood transfusion and kidney dialysis, but his condition sharply deteriorated days later.

Doctors said Friday he had suffered organ failure and placed him on a ventilator after detecting signs of infection in his lungs. But chief presidential doctor Marjo Subiandono said Saturday there were signs of improvement.

"His condition is better," he said. "He's more aware, responsive."

Marjo said antibiotics appeared to be having an effect on Suharto's lungs, but he would remain on life-support to protect his organs from further damage.

Another physician, Joko Raharjo, said Suharto nodded when asked if he was pain. He fell back asleep after being given a tranquilizer.

The retired five-star general was ousted in 1998 amid massive student protests and nationwide riots, opening the way for democracy in this predominantly Muslim nation of 235 million people.

He withdrew from public life, venturing from his comfortable villa on a leafy lane in the capital, Jakarta, only to attend family functions or for medical emergencies.

A series of strokes in recent years have left Suharto with permanent brain damage and impaired speech - keeping him from facing trial. He has been accused of overseeing a purge of more than half a million leftist opponents soon after seizing power in a 1965 coup. Hundreds of thousands more were killed or imprisoned in the decades that followed - crimes for which no one has ever been punished.

President: stop all kinds of polemics on Soeharto`s legal status

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono at his residence in Cikeas, Bogor, on Saturday, called on all elements of the nation to stop polemics on the legal status of former President Soeharto who is currently ill and being treated in hospital.

"Let`s stop the polemics, debate, issuing controversial opinions at the present time," the head of state said at a press conference at his residence.

With regard to the civil lawsuit against Soeharto, Yudhoyono admitted that the latest development indicated there had been a public debate which eventually triggered pros and cons in many forms.

"Actually I remain seeing the time to raise this not something proper under the present condition of Soeharto who is suffering a serious illness," he said.

The president denied the comments depicting moments wheres it was the government`s initiative to settle the civil case of former President Soeharto.

The government opined that the issue was not a priority in the past few days. The head of state reaffirmed there was a great intention of the government to pursue it properly.

"However the government wants the proper moment to settle the civil case in a good manner through legal mechanism," he said, adding that the best way to settle the case should be found.

The president called on the people of Indonesia to pray for former President Soeharto and to stop making unwise statements.

It was said that Soeharto as the leader should have made an achievement in national development of this country.

It was admitted that Soeharto had some shortcomings and made mistakes. But it would not hamper us from extending great thanks and appreciation of his merit and dedication to the state, Susilo said.

Earlier, the president had a meeting with some cabinet ministers upon his return from Kuala Lumpur, Malaysia, on Saturday.

Two Indonesia`s journalists get award from Malaysia

Kuala Lumpur (ANTARA News) - Two senior Indonesian journalists Rosihan Anwar and Tarman Azzam as Malay noted journalists received awards from the Association of Malaysia`s Berita Harian ex journalists.

Selangor senior minister Dr Mohamad Khir Toyo presented the awards to two journalists at a hotel in Petaling Jaya, Selangor, Saturday night.

In addition to Rosihan Anwar (former editor in Chief of Pedoman daily newspaper) and Tarman Azzam (chairman of the Indonesian Journalists Association) three other journalists from Malaysia, Singapore and Brunei Darussalam also received similar awards.

Businesses demand 'bribe-free' zones

Fadli, The Jakarta Post, Batam

The Riau Islands chapter of the Indonesian Employers Association has told the government it needs to crack down on corruption in special economic zones.

The association's deputy head, Abdullah Gose, said that based on the Batam Indonesian Employers Association's study in 2003, bribes accounted for up to 15 percent of total industrial operational costs in Batam.

"We urge the government to set up a 'bribe free' domain in special economics zones, such as those in Batam, Bintan and Karimun.

"This is the government's duty. However, we have not yet seen any effort by the government to realize it," said Abdullah.

He said the bribes required by some institutions constituted a serious burden for investors, although he would not name the offices involved.

"But they are afraid to object to paying the bribes. Maybe they have no other choice," Abdullah told The Jakarta Post.

He said that both local and foreign investors were afraid to speak out about corruption and that he was concerned it might eventually drive investment away from Batam.

"This practice absolutely is not in favor of businesses. Even though Batam has already been declared a special economic zone, we have not yet seen good will from the local and central governments to stop the illegal practice."

Batam Industrial Development Authority (BIDA) spokesmen Dwi Djoko Wiwoho said that his office had not received any complaints about bribery from businessmen in Batam.

"The Investment Coordinating Board recently established a task force to gather complaints. The task force is also assigned to stop these illegal fees. So if such practices occur please just feel free to inform the tast force members because they have a direct link to the President and related ministers," he added.

He also urged investors who run "clean" businesses not to be intimidated by corruption.

He added that BIDA was committed to protecting all investors from any kind of difficulties, including bribery.

RI, Malaysia to form eminent persons group

The Jakarta Post

KUALA LUMPUR (Antara): The Indonesian and Malaysian governments have agreed to form an Eminent Persons Group (EPG) consisting of, among others, experts from the youth, Islamic scholars, intellectuals and prominent women, to foster mutual understanding between the two nations.

"The EPG will be tasked with providing directives and proposing policies to both nations' leaders to intensify bilateral relations in the future," President Susilo Bambang Yudhoyono said in a joint press conference with Malaysian Prime Minister Abdullah Badawi following an Annual Consultation Meeting between Indonesia and Malaysia on Friday.

According to the President, despite the fact that the two countries were neighbors, of the same race and were both predominantly Muslim, their bilateral relations had experienced ups and downs and therefore the ties must be continuously maintained and improved.

The formation of the EPG was one of Indonesia's proposals as part of the strategic goals in strengthening cooperation in various fields such as in culture and manpower, and in dealing with various problems such as illegal logging and border disputes.

Prime Minister Badawi hailed the proposal to set up EPG and said that each country would assign seven prominent figures in EPG.

President Yudhoyono, who was accompanied by First Lady Ani Yudhoyono and a number of ministers, is in Kuala Lumpur for a three-day visit until Saturday.

A managed floating forex system better for RI: Economist

The Jakarta Post, Jakarta

The central bank, Bank Indonesia (BI), is better off using a managed floating exchange rate regime than a freely floating one to help control the rupiah against the U.S. dollar, an economist said.

The monetary authority has revised its forex system three times since 1970. A fixed forex system in place between 1970-1978 was followed by managed floating between 1978-1997 and then free floating since August 1997.

However, in defense of a doctoral dissertation Wednesday Erna Zetha Rahman of University of Indonesia (UI) said the central bank needed to revert back to the managed floating system in place before August 1997.

"A managed floating regime makes the country's economy grow, as it allows the central bank to supervise the rupiah and ... according push on inflation rates," Erna Zetha told the forum.

"A freely floating regime, meanwhile, makes the rupiah fluctuate, which affects the stability of the economy and may eventually hamper economic development," said Erna, who is also a member of the Indonesian Chamber of Commerce and Industry's (Kadin) economic team.

A managed floating forex system would see the introduction of a so-called intervention band to guide central bank market interventions and keep the rupiah within a desired range.

Under a free-floating system meanwhile, no band exists to guide interventions.

In 1997, when the crisis struck, the central bank had to change its forex system as the rupiah depreciated to a level surpassing the upper limit of the intervention band.

Erna expressed her opinion that a free-floating forex regime was risky and prone to social, economic and political turmoil, both external and internal.

"The rupiah is becoming too easily influenced by market sentiments, creating uncertainty for investors in the production sector and eventually hindering economic growth."

However, Erna also said that while a de jure free-floating regime had been in place since August 1997 -- as mandated by the International Monetary Fund (IMF) -- the country has in fact had a managed-floating regime since the third quarter of 2002.

According to Erna, since the silent adoption of the managed regime by the central bank, the country's economy had improved year-by-year with relatively low inflation rates, except in 2005 when the government raised fuel prices.

The country's inflation rate reached 17.11 percent in 2005 from 6.4 percent in the previous year. However, it dropped to 6.6 percent in 2006 and to 6.59 percent last year. (adt)

Indonesian shares to rise next week: analyst

Jakarta (ANTARA News) - Indonesian share prices are expected to rise next week amid volatility in regional markets, an analyst said Wednesday.

The Jakarta composite index is expected to rise on the back of a strong upward trend in the New Year, which has defied the pattern in much of Asia, Batavia Prosperindo analyst Suherman Santikno told AFP.

"The Indonesian market is quite unique. While regional markets have suffered corrections, Indonesia and also India have trended upward, especially in 2008," he said.

Hefty profits from agriculture and mining exports due to rising global prices for commodities, including oil, were driving the local market upward, Santikno said, adding that the trend would likely continue into next week.

Price stability and Indonesia's positive economic growth were also adding to good market sentiment, he said.

For the week ending January 9, the Jakarta Stock Exchange composite index gained 2.35 percent to 2,830.26 points.

Daily average volume was 2.51 billion shares valued at 3.10 trillion rupiah (328.6 million dollars).

Santikno said the market may face resistance at 2,900, with support at 2,800.

BI Rate cuts helped boost lending in 2007, says bank

The Jakarta Post, Jakarta

The 1.5 percent cut in Bank Indonesia's benchmark interest rate, the BI Rate, throughout last year has jacked up loans extended from the banking sector, the central bank announced Tuesday.

Bank Indonesia governor Burhanuddin Abdullah said a series of BI Rate cuts last year had pushed down the bank lending rate and thus boosted lending demand.

"By the end of 2007, we had cut the BI Rate by 150 basis points, or 1.5 percent, from 9.5 percent at the beginning of the year. This has had a positive response from the business world in line with the declining trend in bank lending interest rates," Burhanuddin said.

In November for instance, Burhanuddin said, the interest rate for working capital loans and investment loans averaged 13.16 percent and 13.19 percent, respectively. At the start of the year, they stood at 16.39 percent and 17.58 percent.

Lower borrowing costs consequently boosted bank loans, Burhanuddin said. "By the end of November last year, bank lending reached Rp 1,004.6 trillion, growing by 20.6 percent from early 2007."

In 2007, Bank Indonesia targeted 18 percent growth in bank lending for the year.

The higher-than-targeted lending growth was, according to Burhanuddin, a reflection of the good overall showing of the banking sector.

By the end of November, the loan-to-deposit ratio stood at 69.9 percent, its highest level since the financial crisis.

Even with the significant growth in loans, banks remained prudent, Burhanuddin added, as shown by the decline in net non-performing loans from 3.63 percent at the start of the year to 2.29 percent.

Robust lending helped the economy to expand by an estimated 6.3 percent in 2007, also the fastest growth rate since the crisis.

"The (economic growth) achievement is significant amid the U.S.'s mortgage credit woes, which triggered international financial market turmoil, and the rise in oil prices," said Burhanuddin.

Despite the good economic signs however, the central bank in its first board of governors' meeting on Tuesday decided to leave the BI Rate unchanged at 8 percent, on the heightened inflationary pressure in 2008 resulting in part from the still high oil prices.

Inflation in December rose 1.1 percent from a month earlier, more than six times the 0.18 percent pace in November, data from the Central Statistics Agency shows.

Inflation could go beyond the targeted 6 percent "if the government doesn't take such measures as improving distribution channels," Burhanuddin said.

The government's 2008 inflation target is 6 percent. In 2007, full-year inflation reached 6.59 percent.

Former leader can still hold the media in thrall

Irawaty Wardany, The Jakarta Post, Jakarta

It is almost 10 years since Soeharto stepped down as president of Indonesia, but he seems to have lost little of his pulling power, if the attention the media has paid to his stints at Pertamina Hospital in South Jakarta are anything to go by.

Since he was rushed to hospital Friday with anemia and a sever edema, he has been monitored around the clock by doctors and hordes of journalists.

On Tuesday evening the hospital's lobby was packed solid with reporters sitting on anything they could find -- even the floor -- some chatting while others were attempting to snatch a few minutes of sleep.

"I've been here since the first day eyang (grandpa) was hospitalized," said one of the reporters.

They have been joined by a flood of important visitors, including President Susilo Bambang Yudhoyono, Vice President Jusuf Kalla and various government ministers.

Buckets of flowers sent by colleagues, friends and businessmen line the hospitals first floor. Far too many have been sent to fit in Soeharto's room on the fifth floor.

An endless debate on his legal status has run alongside that about his health, keeping the journalists glued to the hospital, even when their stomachs start to rumble.

"I'm starving but I'm afraid that if I leave this place I will lose a scoop," said one reporter, to nods of agreement from the others.

At around lunchtime, the security guards take pity on them and bring food from a restaurant around the corner, promising to bring some snacks in the afternoon.

Separately, secretary general of the Alliance of Independent Journalists Abdul Manan said that in general journalists should not accept any gift, no matter how small.

"We should see whether the meals are provided because we are journalists or not," he told The Jakarta Post over the phone.

"It is OK if the meals are provided not only to the journalists."

Luckily for the journalists nesting in the hospital lobby, other guests and some of the hospital's security guards were also tucking in.

The 'Post' wins the Adam Malik Award

JAKARTA (Jakarta Post): Once again, The Jakarta Post has won the Adam Malik Award for its coverage of international news as well as matters related to Indonesian diplomacy during 2007.

The Post won the award in the Best Newspaper category.

In a ceremony held at the Foreign Ministry building, Foreign Minister Hassan Wirayuda presented the award to the Post's chief editor, Endy M. Bayuni, on Tuesday.

In the magazine category, the Gatra weekly chief editor Budiono Kartohadiprodjo received the award, while the Metro TV channel, El-shinta radio station and state-owned Antara news agency Web site www.antara.co.id also took home prizes. Metro TV's senior producer Trianna and El-shinta's executive producer Vivi Trisnavia and Antara chief executive officer Ahmad Mukhlis Yusuf received the awards from Hassan.

In the category of best reporter, Suara Pembaruan's Elly Burhaini Faisal won the 2007 award.

"I am very happy to receive this honor," Elly told the Post.

The Foreign Ministry said the main criteria for the selection of 2007 winners was an accurate presentation of the facts, creating balanced and objective public opinion and educating the public in foreign policy matters.

It is not the first time the Post has won the Adam Malik Award, which takes its name from a former foreign minister who was also a journalist, taking home the honors in 2004 and 2005.

In 2006, the Post's reporter Abdul Khalik won the award for Best Journalist.

The ministry first presented the award to the national media in 2002.

Ex-minister receives 'awakening' award

JAKARTA (The Jakarta Post) : Senior economist Rizal Ramli received the National Awakening Figure 2007 award from the Netherlands-based KabarIndonesia.com on Tuesday for his role in improving the performance of the State Logistics Agency and his independent economic policies.

KabarIndonesia editor in chief Wilson Lalengke said the award was given to the former coordinating minister for the economy under Abdurrahman Wahid because he was able to win back public trust in the logistics agency while minister.

Wilson said Rizal was also one of a few prominent figures in Indonesia that refused "any kind of foreign intervention" in the country's state affairs.

The news portal also highlighted Rizal's leadership in Indonesia Bangkit (Indonesian Awakening Committee), a movement he launched last November.

Antara`s web portal wins Adam Malik Award 2007

Jakarta (ANTARA News) - ANTARA`s web portal has won Adam Malik Award 2007 for the category of Internet media.

Indonesian Foreign Affairs Minister Hasan Wirajuda presented the award to ANTARA CEO Ahmad Mukhlis Yusuf, who was accompanied by ANTARA News Director Saeful Hadi, here on Tuesday.

The Indonesian foreign ministry, that has been presenting the Adam Malik awards for Indonesian media since 2002, this year awarded the Jakarta Post for the daily newspaper category, Gatra (for magazine), MetroTV (for television), and El Shinta (for radio).

The criteria for the award recipients include objective opinion building, educative news contents and correct factual presentation.

Negative investment list still ambiguous, say business leaders

Andi Haswidi, The Jakarta Post, Jakarta

The Indonesian Chamber of Commerce and Industry (Kadin) said Sunday that the newly revised negative investment list was not enough to bolster investor confidence due to remaining ambiguities.

"Aside from the grandfather clause and the retail sector, revisions to the list are only on those (issues) that are not necessarily crucial to boost investors' confidence," Kadin vice chairman Chris Kanter told The Jakarta Post.

The revised list, which was signed by the President late December, contains a clause that was rephrased to reaffirm that all changes made to the list only apply to future business arrangements, something that was previously left unclear.

Other changes include three more lines of businesses that have become totally open for foreign investments: installation and maintenance of streets, non-ferrous metal or lead industries, and business and management consultation services.

The revised list also introduced a new arrangement for the retail sector, where full foreign ownership is allowed for supermarkets with more than 1,200 square meters of trading area, department stores on more than 2,000 square meters and community stores and convenient stores of more than 200 square meters.

Taking the consultation service as an example, Chris said that there was no urgency to open the line of business to foreign investment.

"We don't mind it now being open to foreign ownership. It's just that there are other items that are more crucial. It makes us question the government's sense of priorities," he said.

Among the crucial things that were not addressed promptly, he said, was the list's use of ambiguous foreign share ownership categorizations.

Under the 13 business sectors named in the list, each with several sub-categories totaling 97 items, there are nine foreign share ownership percentage categorizations used: 25, 45, 49, 50, 55, 65, 80, 85 and 95 percent, exactly the same as the initial list that was first introduced in July.

"There are still too many categorizations of share ownerships and no explanation whatsoever so as to why the categorizations are used. The fifty-fifty share ownership is just plainly uncommon for businesses," he said.

Moreover, Chris said, the new list did not clarify how much foreign investment was allowed for businesses specifically allocated for small and medium enterprises.

"The list still signals ambiguity, and this is bad for investors as they tend to move only when everything is clear,"

"The process of revision is also slow. We will push the government so that it can fully revise the list no later than mid-year, or else things will look much worse," Chris said.

As the caretaker of the formulation of the negative investment list, Trade Minister Mari Elka Pangestu said the list was still open for more reviews and revisions.

"I urge business players to continue giving input to the government through Kadin as we have done in the past," she said.

She also suggested that more changes on the list, particularly on the transportation sector, would be made as soon as the House of Representatives passed the new transportation bill.

President Yudhoyono to be confered M`sia`s highest award

Kota Tinggi, Malaysia (ANTARA News) - Indonesian President Susilo Bambang Yudhoyono who will be on a working visit to Malaysia from Jan 10 to 12, will be conferred the highest state award by the King Sultan Mizan Zainal Abidin.

Foreign Minister Syed Hamid Albar said the conferment ceremony would be held at Istana Negara on Thursday.

He said during his visit, President Susilo and Prime Minister Abdullah Ahmad Badawi would take the opportunity to hold their annual discussions.

"Both leaders will discuss matters of mutual interest, including the economy, social issues and regional and international politics," he told reporters after a meet-the-people session in Kampung Sungai Seluyut here.

"We want to maintain the close ties with our most important neighbour in Asean. We want to continue to have a conducive climate of understanding with Indonesia which can help strengthen bilateral ties."

Syed Hamid, who is also Kota Tinggi Member of Parliament, said Kuala Lumpur had always been sincere towards Jakarta and did not want any perception of strained relations between the two countries to exist.

He said Malaysia hoped that President Susilo`s visit would contribute to building understanding and cordial ties between the two neighbours.

Efforts to create better understanding between the two countries also included holding discussions between the parliamentarians, media and non-governmental organisations of both countries, he said.

As part of President Susilo`s visit to Malaysia, the Indonesian leader and Abdullah will be attending a concert at Angkasapuri on Friday featuring artistes of both countries, in conjunction with Malaysia`s 50th independence anniversary.

Meanwhile, asked about the status of discussions between both countries over the Ambalat territorial water dispute near the Sulawesi Sea believed to be rich in oil and gas, Syed Hamid said it would take a long time to be resolved.

"What is important is for both countries to agree to solve it amicably," he added.

Justice ministry vows to improve public services

The Jakarta Post, Jakarta

The Ministry of Justice and Human Rights has claimed progress and achievements in 2007, but has pledged to improve and simplify its services for the public in 2008.

"Our directorate general of legal administration has reinstated the citizenship status and passports of 14,653 Indonesian workers in Malaysia who wished to retain their Indonesian citizenship in 2008," Minister of Justice and Human Rights Andi Mattalatta said.

He was speaking at the ministry's annual performance evaluation and press conference on Friday.

"The directorate general has also simplified the authorization of legal status for companies," Andi said.

"It usually takes more than 60 days for companies to obtain their licenses, but now it takes between three and seven days," he said.

The immigration directorate general under the ministry has also extended length-of-stay permits for foreign investors from 60 to 90 days.

Limited stay permits have been extended from one to two years and citizens from 11 more countries are able to get visas on arrival.

"The use of finger-print and iris-scan technology has been applied in Soekarno-Hatta Airport, Karimun, Batam and Belakang Padang areas," Andi said.

The application of this advanced technology in the immigration information system has sped-up the checking process, he said.

The ministry said it was also encouraging the public to contribute and participate in requesting the services it required.

"The public needs to have a chance to submit their opinions, in terms of what regulations they need," said Ahmad Ramli, head of the National Law Supervision Agency (BPHN).

"We will create an open forum for the public this year, so people can submit their suggestions for new regulations."

The ministry said it also planned to improve the prison management system and to guarantee prisoners their right to proper living conditions.

"The over-population of prisons has been causing a high incidence of violence," Andi said.

"Therefore, we have to balance prison capacity with the number of occupants," Andi said.

Currently more than 130,000 prisoners populate correctional facilities designed to hold no more than 81,000.

"We will relocate prisoners in crowded prisons or jails to less crowded ones in smaller cities," he said.

"We are also ready to operate 20 new prisons which are able to accommodate around 9,400 inmates.

"We will also see whether it's possible to reduce by half the 50,000 number of people arrested by not putting them in jails, but by putting them under city arrest status.

"Prisons will therefore be able to accommodate at least 25,000 more prisoners" he said. (rff)

Govt expects Asian market to cushion commodity fall

Andi Haswidi, The Jakarta Post, Jakarta

The government said it expects export growth to remain robust this year as demand from major emerging markets in Asia should cushion the fall of commodity prices, despite the estimated slowdown in the U.S. economy.

Trade Minister Mari Elka Pangestu said Friday the country's export market was expected to grow by 14.5 percent by the end of 2008, in line with the government's economic expansion target of 6.8 percent.

The exports growth, Mari said, will be sustained by the same top commodities last year including copper, coal, nickel, crude palm oil, rubber, rubber products, cacao, paper and electronics.

"The growth of commodity prices will not be as high as last year, but nevertheless it will remain robust, thanks to the high demand from the Asian markets," she said.

Countries expected to show strong demand for such commodities, she said, included China, India, Australia, Brazil and countries in the Southeast Asian region including Malaysia, Thailand and the Philippines.

The International Monetary Fund (IMF) forecasted last month, that instead of the U.S., Japan and Western Europe being the main engines of world growth, this year they would be replaced by China, India and other emerging economies in Asia.

The IMF expects the emerging Asian economies to expand 8.3 percent this year.

The IMF lowered its forecast on the U.S. economy, saying it would expand by just 1.9 percent this year, due to the wide impact of its mortgage woes.

Signs of a slowdown was evident via the country's export growth to the U.S., from January until November last year, which dipped to 5.2 percent from a more than 11 percent growth posted in the same period a year earlier.

Japan, Western Europe and U.S. are Indonesia's top export destinations, with market shares respectively sitting at 14.6 percent, 14.4 percent and 12.3 percent.

Another forecast, this time from the World Bank, says despite the expected slow down, Indonesia's exports would remain resilient considering last year's performance.

Total exports reached US$103.07 billion from January to November last year, increasing by 13.04 percent, compared to the same period in 2006, largely due to the surge of commodity prices instead of an increase in volume.

"The overall exports growth of our non-oil and gas products ranged between 16 to 16.5 percent," she said.

Other products within that category such as paper and cardboards were marked with a higher growth.

"Other manufacturing products ranged from about five to 10 percent growth," she said.

Another reason to be upbeat on this year's export growth, Mari said, was due to the expected outcomes from the increase of investments in 2007, which should revamp exports on manufactured products.

The Investment Coordinating Board (BKPM) earlier reported that investment realization hit US$13.99 billion last year, rising by 169 percent from 2006 at $8.28 billion, with foreign investments contributing about $10.2 billion to the total.

President summons ministers to focus their programs

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono summoned and gave directives to at least 10 of his ministers on how to focus their programs they would implement in 2008.

"A number of ministers have been summoned as part of the effort to consolidate policies and work programs the government will take and implement at the beginning of this year," Presidential Spokesman Andi Mallarangeng told the press at the Presidential Office here on Friday.

The president gave the ministers directives on various issues, including reduction of poverty rate, creation of more jobs and development of the agricultural sector.

"The directives included efforts to overcome current natural disasters and an increase in oil price which almost reaches US$100 a barrel in the world market. The people should not raise concerns as the cabinet ministers will continue to focus on their jobs in running the administration," Andi said.

At 02.00 p.m., the president received Minister of Legal and Human Rights Affairs Andi Mattalata, Finance Minister Sri Mulyani and Religious Affairs Minister Maftuh Basyuni.

One hour later at 03.00 p.m., the head of state, accompanied by Vice President Jusuf Kalla, received Chief Economic Minister Boediono, Coordinating Minister for People`s Welfare Aburizal Bakrie and Cooperative Minister Surya Dharma Ali.

Other ministers received by the president included Agriculture Minister Anton Apriantono, Public Works Minister Djoko Kirmanto and President Director of state-owned logistics board (Bulog) Mustofa Abu Bakar.

"The president also did the same thing last year when he visited the ministries," Andi said. He refuted allegations that the summonses were a form of evaluation of the ministers` performance.

"The summonses have nothing to do with evaluation which can be carried out at any time. It concerns matters on how to make the administration more focused," Andi said.

Minister/State Secretary Hatta Rajasa also explained that the summonses of ministers were a normal thing in entering a new year.

"It`s not an evaluation. The meeting was held to discuss several sectors which fall under the responsibility of the ministers as aides of the president," Hatta Rajasa added.

Japan's royalty to visit RI, celebrations

JAKARTA (Jakarta Post) : Japan's Prince Akishino and Princess Kawashimo Kiko are scheduled to visit Indonesia from Jan. 18 to 24 to attend celebrations for the 50th anniversary of Indonesia and Japan's diplomatic relations.

"The Japanese prince and princess will arrive here on the evening of January 18 to start their activities the next day," Presidential spokesman Dino Patti Djalal told Antara on Thursday.

The peak of celebrations for the anniversary will be held at the Indonesia-in-Miniature Park (TMII) on Jan. 20 in the presence of President Susilo Bambang Yudhoyono, Dino said.

Prince Akishino and Princess Kiko would represent Japanese Emperor Akihito.

Akishino, the second son of Akihito, was married to Princess Kiko in 1990.

To honor their 50th anniversary of bilateral relations, the two governments would hold a number joint activities in the economic, social, cultural and sports fields, Dino said.

Besides attending the peak event, the Japanese prince and princess are also scheduled to visit Prambanan and Borobudur temples in Central Java, Gadjah Mada University in Yogyakarta.

Negative investment list revised for clarity

Andi Haswidi, The Jakarta Post, Jakarta

The government revised its so-called negative investment list -- a list of business sectors, wholly or partly closed to investment -- last week, aiming to clarify rules and fair treatment within the business community.

A copy of the list obtained by The Jakarta Post on Thursday, basically separates business sectors closed to both local and foreign investment, and those open to investment with certain conditions.

On the closed side, the government scrapped two of 25 sectors; the installation and maintenance of roads, and non-ferrous metals industry or lead.

The remaining 23 were left intact, which included gambling, public broadcasting services, motor vehicle test operators and air traffic service providers.

As for the list of business sectors open to investment with conditions, the government has shown its stance in protecting small businesses by making no changes within the sub-sector reserved for small and medium enterprise businesses.

In response to a request from business operators grouped under the Indonesian Chamber of Commerce and Industry (Kadin), the government made considerable revisions to sub-sectors including capital ownerships, allowed business locations and list businesses reserved for 100 percent domestic ownership.

In capital ownership, the government scrapped 15 out of 17 businesses in the arts and culture sector, leaving only art galleries and art performance venues, where a minimum of 50 percent domestic ownership was still required.

In the capital ownerships category, the government also scrapped in the list business and management consultation services, in which foreign investment was previously limited to 49 percent -- now completely open, but lowered foreign ownership in crossing transport services from 60 percent to 49 percent.

With the change, foreign ownership is now limited to 49 percent in 29 lines of businesses within the transportation sectors named in the list, but this will be subjected to further revisions as soon as the House of Representatives passes its transportation bill, which promises more liberalization in the sector, at some stage in 2008.

A massive change appeared in the permitted business locations category, which previously regulated the locations of 19 lines of businesses; now there is only one -- breeding and farming pigs, which must heed regional regulations.

The previous 19 businesses included hotels, caterers, spas, game makers, karaoke establishments, restaurants, nursing services and travel bureaus.

Finally, in the list of industries for domestic investment only category, the number of items stays roughly the same, except in the retail sector, which stipulates 100 percent domestic ownership for supermarkets on less than 1,200 square meters of land, department stores on less than 2,000 square meters, community and convenience stores, 200 square meters.

There has been no formal response as yet from Kadin, which said it had not receive the revised list yet. (adt)

World economic slowdown to have minimum impact on Indonesia

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono said the expected slowdown in the world economy`s growth in 2008 would have a minimum impact on Indonesia as its national economy was running on the right track with stronger fundamentals and the country was experienced in surviving global economic fluctuations.

"Reports on our stock exchange`s performance indicate many things. It is clear that our post-crisis economic development is already on the right track. Our economic fundamentals are getting better as they cushion external fluctuations such as the subprime mortgage crisis and the world oil price hikes. We have better economic endurance to face world economic fluctuations," the President said after opening the first day of trading in 2008 at the Indonesian Stock Exchange (BEI) here Wednesday.

With such capabilities, the President said, the expected sluggishness in world economic growth would not have a significant impact on Indonesia`s economy.

"The expected world economic slowdown must be anticipated but don`t be too worried about it. Because the prospects of the Indonesian economy in 2008 remain positive. The impact of the subprime mortgage crisis was nearly zero. As for the world oil price hikes, don`t forget that Indonesia is also an oil producer so that the price hikes have both a negative and positive impact on us," he added.

On the impact of the world economic slowdown on the country`s exports, the President said there was nothing to worry about because Indonesian agriculture and mining products had a relatively high competitiveness.

The same could be said about Indonesia`s foreign investment sector.

The President said, as world economic growth was expected to decline from 5.2 percent in 2007 to 4.8 percent in 2008, the government should identify factors that could affect the national economy and find solutions to those problems.

It could use three opportunities to anticipate the slowdown namely, to maintain the current positive economic growth, enhance infrastructure development that could move other economic sectors, and to maintain macro economic stability.

Yudhoyono said, some of the challenges faced by the nation in 2008 were how to keep its current growth from being affected by inflation from food products and energy, how to continue reform, how to increase exports and industrial production, maintain budget accuracy, and anticipate natural disasters.

President: Use the past as a lesson for introspection to start 2008

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has asked all segments Indonesian people to draw a lesson from past (2007) experience as an introspection to start the new year 2008.

The president made the call when asked after attending "Zikir" -organized worship function- to welcome new year 2008 at the Baiturrahim mosque at the presidential palace complex here on Monday evening.

The "Zikir" was also attended by several ministers and 3,000 members of the "Majelis Zikir Nursalam".

The president said, an improvement in the past shortcomings should be made while maintaining the (good) achievements in entering the future.

"Thus, we step into 2008 with an optimism and stronger self confidence, and believe that the country`s development is already on the right track," the president said.

Of course, there are still many things to settle like problems in the economic, social and legal sectors, in law enforsement as well as in international relations, Yudhoyono added.

"But believe that if we look into the future in a positive way, be in a true unity and work harder, I am sure that next year (2008) will be better than this year (2007)," he said.

Of course, this is an expectation of all the Indonesian people, the president added.

Hong Kong most optimistic in Asia about 2008: survey

Hong Kong (ANTARA News) - Hong Kong people are more optimistic about 2008 than anyone else in Asia, with Taiwanese and Indonesians the most gloomy, a new survey released Monday has found.

The survey by research firm TNS and Gallup International found that 71 percent of Hong Kong residents think 2008 will be a better year than 2007.

This compares with just 19 percent in Taiwan, which will hold parliamentary and presidential elections in the early part of 2008. A third of Taiwanese surveyed thought 2008 would be worse, the highest figure in the region.

Only 21 percent of people surveyed in Japan and Indonesia thought the next year would show an improvement over 2007.

New Zealand, Australia and India were the next most optimistic after the southern Chinese territory, among the 11 nations surveyed between October and December.

The city's strong economy had played a major role in boosting confidence, Thomas Isaac, director of research services at TNS in Hong Kong, was quoted by AFP as saying.