Susno charged as ringleader in graft cases

Dicky Christanto, The Jakarta Post, Jakarta | Thu, 09/30/2010 10:05 AM 

Former National Police chief detective Comr. Gen. Susno Duadji has been charged with orchestrating graft and receiving bribes while in office and now faces a maximum penalty of  life in prison.

Getting hot: Former National Police chief detective
 Comr. Gen. Susno Duadji wipes his brow while  hearing
 the indictment read out by prosecutors during his graft
trial  at the South Jakarta District Court on Wednesday.
 JP/Wendra Ajistyatama

At his trial on Wednesday, prosecutors accused Susno of violating the anticorruption law, the Criminal Code on receiving bribes and a National Police chief memo, also on law enforcers receiving bribes. If proven guilty of all charges, Susno could be handed a life sentence under the corruption law.

“The prosecution has managed to gather convincing evidence that shows Susno abused his position as a civil servant for gratifications,” prosecutor Arbagtyo Rohan told the trial at the  South Jakarta District Court.

Susno was indicted on two charges: the first was that he, as chief detective, received Rp 500 million (US$56,000) from  lawyer Haposan Hutagalung to engender an investigation into  allegations of fraud in the arwana fish nursery case, to favor the latter’s client, a Singaporean called Ho Kian Kuat, a business rival of arwana.

Prosecutors said Susno had received the bribe through his close associate, Sjahril Djohan, a figure recently revealed  to the public as a case broker based at the National Police headquarters without an official position. 

The second charge against Susno relates to his position as West Java Police chief in 2008. He was accused of embezzling the police security budget for the governor’s election from the West Java governor’s office, totalling Rp 27.7 billion.

Susno was suspected to have skimmed around Rp 8.3 billion from the budget, giving himself a part of the funds and disbursing the rest among several others said to have assisted him in the process.

At least seven people were said to have received funds from Susno.  Of those seven, prosecutors have only identified Maman AR Pasya, the head of finance at the West Java Police office.

Prosecutor Rohan said further that the initiative in these cases of graft came from Susno himself. In the Arwana case, for example, Susno had asked Sjahril what he would get if he agreed to conduct the investigation in favor of Haposan’s client.

Prosecutors cited Susno as saying to Sjahril, “This is a big case, bang [brother], how come it’s just zero [value]?”

In response, the indictment said, on Dec. 4, 2008, Sjahril met Susno at his house to deliver Rp 500 million from Haposan. Prosecutors said Susno accepted the money and promised to investigate arwana.

Several days later, Susno sent two police investigators to the arwana nursery facility in Riau. The prosecutors added Susno then ordered the investigator to seize the facility and name suspects despite a lack of initial evidence.

Regarding the governor’s election security budget, prosecutors said it was Susno who ordered police finance head Maman to disburse the money, which had been kept in Maman’s personal bank account. 

The case first came to light when  the alleged broker Sjahril  told police that he had given Rp 500 million to Susno to investigate arwana.

Sjahril himself is on trial separately on charges of  bribery in the arwana case.

The trial of the allegedly powerful case brokers, Susno and Sjahril, followed on the heels of  the trial of Gayus Tambunan, a low ranking tax official, who Susno earlier named as an influential case broker.

Susno lost his job in the aftermath of the historic broadcast of taped conversations involving himself and a businessman that eventually led to the formation of the government’s Judicial Mafia Taskforce.

Yesterday’s hearing was over before the afternoon brawl outside the courthouse, which ended in the deaths of three people. The trial resumes next Wednesday.

RI the hottest destination in SE Asia, say analysts

The Jakarta Post, Jakarta | Wed, 09/29/2010 10:24 AM

With the ongoing economic reform, huge domestic market as well as a growing middle class, Indonesia has emerged as the hottest investment destination in Southeast Asia, analysts said.

Deloitte Asia Pacific CEO Chaly Mah said on Tuesday that Indonesia had all the ingredients to chieve sustainable economic growth of between 6 and 7 percent, thanks to its strong macro-economic fundamentals.

Indonesia’s strong economy is highlighted by its rising per capita GDP (nominal), which is expected to exceed US$3,600 by 2012, its richness in natural resources, and its population of almost 240 million, he said.

However, the economic reforms should be continued to ensure that in the future Indonesia would have a more efficient economy, free of red tape and corruption, he added.

“The government should focus more on improving efficiency and removing red tape in the public sector to make sure Indonesia will become a better place do businesses.

I think these are the challenges,” Mah told a press conference on the sidelines of an investment seminar entitled “Exploring the investment outlook in Indonesia 2009-2014”.

The seminar was held to celebrate the 20th anniversary of Deloitte Indonesia.

A significant working class population is also one of Indonesia’s key strength points, he said, adding that the country’s 58 million–strong working class was also the lure of the investors to do business in the country.

“It’s a significant amount of working people directly needed to attract more investments, Moreover, today Indonesian labor wages are among the lowest in the region,” he said, while mentioning that it was lower than in China and India.

Chatib Basri, a political economist at University Indonesia, acknowledged that Indonesia had a strong macro economy as shown by, among others, its relatively low debt to GDP ratio of about 26 percent, thanks to a strong commitment to domestic reforms.

“Overall, I’m optimistic on the Indonesian macro economy,” he said.

However, he said, the government should show its commitment to improving infrastructure where there were barriers to economic development including among others, difficulties in getting access

to land.

Giving an example, Wisnu Wardhana, PT Indika Energy Tbk vice president, said that from 1998 to 2005, there were no independent power producer (IPP) projects developed by the private sector other than the one carried out by his company.

“It’s the only IPP handled by the private sector in the last 10 years,” he said.

In the future, he said, infrastructure development could not be handled only by the government. The private sector should participate more actively in developing infrastructure but is should be supported by legal certainty and land availability, he added.

Michael Tjoajadi, PT Schroder Investment Management Indonesia director, said that infrastructure development during the last five years had been far from ideal.

“Without adequate infrastructure, Indonesia’s economic growth would become stagnant,” he said. (ebf)

Officials charged with stealing public funds, bribing auditors

The Jakarta Post, Jakarta | Wed, 09/29/2010 10:29 AM | National

The Corruption Court charged an ex-state company official with embezzlement, costing the state loss of Rp 42.32 billion (US$ 4.73 million) and a Bekasi municipal official with paying Rp 400 million to bribe the Supreme Audit Agency (BPK).

Prosecutors charged the former general manager of the Lampung branch of state electricity monopoly PT PLN, Budi Harsono, for alleged involvement in a graft case linked to the outsourcing of a consumer information system during his tenure from 2004 to 2008.

Bekasi municipal secretary Tjandra Utama Effendi was charged for allegedly bribing BPK auditors to get a clean report.

Prosecutor Pulung Rinandoro said Budi had breached the law for directly appointing a company, PT Altelindo Karyamandiri, rather than running a tender for the above project to run the system.

Prosecutors said Budi received a Rp 3.41 billion bribe from Altelindo commissioner Georgie Kumaat.

In a separate trial, prosecutors charged Tjandra and two other Bekasi officials, Herry Lukmantohari and Herry Suparjan, with offering Rp 400 million in bribes to BPK auditors Suharto and Enang Hernawan.

”The bribe was intended to influence the officials to unconditionally approve a 2009 financial report,” prosecutor Risma Ansyari said.

Prosecutors said that on May 21, Tjandra handed Rp 200 million to Suharto and Enang through Suparjan. Suharto and Enang each took Rp 50 million and gave the rest to the head of the agency, Gunawan Sidauruk.

In June, Tjandra borrowed money from the Bekasi branch of the National Sports Committee to pay a second installment and asked Lukmantohari and Suparjan to deliver another Rp 200 million to Suharto at his house in Bandung, Risma said. (lnd)

Former Home Affairs Minister Hari Sabarno has been named a suspect in the Rp 98.6 billion fire engine corruption scandal by the Corruption Eradication Commission. (Suara Pembaruan Photo)

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KPK to collaborate with G20 to eradicate corruption

Antara News, Tuesday, September 28, 2010 21:12 WIB

Jakarta (ANTARA News) - Indonesia`s anti-graft agency KPK in collaboration with representatives from G-20 is designing a working plan on corruption eradication to be presented at the G20 Summit next month in Seoul.

KPK Office, Jakarta

KPK (Corruption Eradication Commission) Deputy Chief Moch Jasin said here on Tuesday at a meeting of the G20 anti-corruption working group, Indonesia and France had been chosen to become the joint chair of the group.

He said he himself had been appointed to be the chairman of the group flanked by Gunadi, who is the deputy chairman of the Financial Transactions Analysis and Reporting Center (PPATK) and Febryan Ruddyard, the foreign ministry`s director of the KIPS.

The main issues discussed at the meeting at the Four Season Hotel were among others efforts to create a strong and effective anti-bribery regime, prevention of coruptors` access to Global Financial System, promoting protection of whistleblowers, recouping corrupted assets, strengthening anti-corruption agencies and agenda to accelerate implementation of UNCAC with a high standard.

The meeting of the G20 anti-corruption working group, he said, is held with a hope to accelerate national and transnational corruption eradication.

Other things discussed in the discussion group are linked to efforts to prevent corruptors` access to global financial transactions including money laundering, protection of whistleblowers, the creation of a system to prevent access for corruptors to go abroad.

It has also been agreed that G20 will create a forum that will develop and implement an initiative that will make the private sector across the globe fight corruption.

The business world will be included as one of the stakeholders of the anti-corruption drive and the committment to anti-corruption is very fundamental.

G20 is a group of 19 big economies plus European Union established in 1999 as a forum that systematically mobilizes advanced and developing economic powers to discuss important world economic issues. Indonesia is the only member of the Association of Southeast Asian Nations (ASEAN) that becomes G20 member.

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KPK: Corruption Jeopardizes Lucrative Climate-Change Deals

President Susilo Bambang Yudhoyono (right) shares a light moment with Corruption Eradication Commission (KPK) leader candidates Busyro Muqoddas (center) and Bambang Widjojanto (left), who were invited to the Presidential Office in Jakarta on Thursday. Yudhoyono has officially proposed Bambang and Busyro to the House of Representatives as candidates for the KPK chairman post, in accordance with the government-led selection result. Antara/Widodo S. Jusuf

South Kalimantan governor named graft suspect

The Jakarta Post, Jakarta | Tue, 09/28/2010 8:30 PM

The Attorney General’s Office has declared South Kalimantan governor Rudy Arifin a suspect in a misappropriation of regional budget in 2002-2003 which caused Rp 6.4 billion (US$700,000) in state losses, when he was the Banjar regent.

Spokesman for the AGO Babul Khoir Harahap said on Tuesday Rudy was declared a graft suspect on Sept. 16 for ordering payment of compensation to PT Golden Martapura, a private paper company belonging to Gunawan Sutanto, for acquisition of a plot of land.

Babul told Antara news agency the payment was unnecessary as the company’s land use permit had already expired.

He said the AGO was waiting for presidential permit to question Rudy, in accordance with the law.

Incumbent governor Rudy and his running mate Rudy Resnawan, who were nominated by the Golkar Party and the United Development Party, won the election by landslide in July, beating among others the pair of Zairullah Azhar and Habib Aboe Bakar, who was nominated by President Susilo Bambang Yudhoyono’s Democratic Party, the Prosperous Justice Party and the National Awakening Party.

Earlier this year the AGO named East Kalimantan governor Awang Faroek Ishak a corruption suspect in connection with divestment of coal company PT Kaltim Prima Coal (KPC) in 2006, when he was the East Kutai regent. The prosecutors believe state losses resulting from the graft case reach Rp 576 billion.

World Bank: RI continuing to record robust growth

Antara News, Tuesday, September 28, 2010 20:17 WIB

Jakarta (ANTARA News) - The World Bank in its economic quarterly report on Indonesia released on Tuesday, noted that the country`s economy continues to record robust growth, unlike many of the world`s major economies.

"This growth has allowed the policy focus to shift from near-term uncertainty towards laying the foundations for longer-term growth to allow the government to better support investment and stronger social outcomes for all Indonesians," the bank says in its quarterly report.

Through greater investments in infrastructure, enhanced skills development and improvements in productivity, it would be possible to achieve growth of over 7 percent by 2014 as set by the Indonesian government, it says.

Indonesia recorded 6.2 percent growth in the second quarter, the fastest since the global economic crisis struck two years earlier. Growth was driven primarily by domestic demand, particularly private consumption, which has led to a rise in imports.

Despite the weak spending by the government, the growth is expected to accelerate in the second half of 2010. These growth patterns are expected to continue over the near-term, with a further pick-up in investment expected related to the improvement in investors? access to credit and the proposed increase in public spending on capital expenditures in 2011.

Indonesia?s inflation was observed to have returned to historical averages by last August, with headline inflation volatile between June and August, mainly due to the impact on food prices of the extremely wet `dry? season.

The unusual weather impacted food prices especially for spices and then rice. Local rice prices are now much higher than the international price, impacting poorer households especially since a greater share of their expenditures is on food. These disruptions are expected to be temporary, it predicts.

Accompanying the release of the quarterly, Enrique Blanco Armas, the World Bank`s Senior Economist for Indonesia, said the bank saw a renewed confidence in the country`s prospects and a strong return of capital inflows, referring to the inflow of USD 7.3 billion between June and August.

"Looking forward, a policy challenge in the near-term is how to address any rise in inflationary pressures while ensuring less volatile and more sustainable capital flows that can help Indonesia achieve its growth potential and support the improvement of the quality of life for all Indonesians," he said at a gathering on Indonesia`s economic outlook, organized jointly by the bank and Jakarta-based Paramadina University.

He went on to say that policy reforms across multiple areas, supported by targeted expenditures, will help to meet the government`s medium-term targets for growth and poverty reduction. Needed reforms include: greater public investment for infrastructure to address the constraints on private sector activity due to Indonesia`s stretched infrastructure.

Also, on facilitating access to financial services which can cushion the impact of shocks and boost poor households` ability to start up businesses; and reducing the mismatch between the skills of workers entering the labor market and the skills demanded by employers.

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Gayus admits to receiving $3 million from Bakrie companies

The Jakarta Post, Jakarta | Tue, 09/28/2010 6:58 PM

Former junior tax officer Gayus Halomoan Tambunan, a key player in an alleged legal mafia and tax mafia, confirmed on Tuesday that he had received US$3 million (Rp 28 billion) from three companies controlled by the family of Golkar Party chairman Aburizal Bakrie.

Gayus said in his testimony heard during the trial of businessman Andi Kosasih at the South Jakarta District Court that PT Kaltim Prima Coal, PT Arutmin and PT Bumi Resources gave him the money to illegally adjust their tax obligations. All the companies have denied Gayus’ claim.

“Initially I kept the money at home and in a safety box. I transferred the money to banks in stages,” he said as quoed by kompas.com.

Gayus, who is on trial separately in the same case, denied National Police detectives’ claim that the investigators had frozen his bank account worth Rp 370 million at the Bintaro branch of BCA.

The police investigators, Gayus added, had frozen only Rp 17 million of his money he had deposited at BCA. He said he deposited his money worth Rp 28 billion in 20 different bank accounts.

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Aburizal in 2014, if the Polls Are Right

Golkar Party chairman Aburizal Bakrie, left in this file photo, has announced his intention to run for Indonesian president in 2014, if the polls are in his favor. (Antara Photo/Saptono)

President: RI`s migrant workers send home US$6 bln annually

Antara News, Monday, September 27, 2010 22:08 WIB

Jakarta (ANTARA News) -President Susilo Bambang Yudhoyono said that 6 billion dollars annually were sent back to Indonesia by millions of Indonesian migrant workers through the formal banking system.

"Many of those Indonesian were not accustomed to the banking services when they were in Indonesia. This shows that traditional mindset can be changed and the migrant workers are in fact going to the bank," the head of state in his opening address at the Second Alliance Financial Inclusion (AFI) Global Policy Forum, here, Monday.

According to Yudhoyono, developing people`s financial literacy is as important as developing their financial capability. It was important that people were taught about the importance and benefit of accessing financial services.

"In 2008, we introduced a national campaign called `Ayo ke bank` or in English `Let`s go to the bank`. Last year, we launched another campaign in 2009 with the slogan of `whatever the product, ensure the benefits, understand the risks and consider the costs`," he said.

People living with a low income must be given access to affordable financial services, which later could unlock many financial opportunities to improve their well-being, and close the economic and social gap.

"This will ultimately reduce poverty and inequality," he said.

According to the World Bank, some 1.4 billion people still live with an income of less than 1.25 dollars a day, therefore poverty eradication is crucial," he said.

"For Indonesia, poverty alleviation is a top priority. It is at the heart of our four-track development strategy, which is pro-growth, pro-job, pro-poor, and pro-environment," he said.

Fighting poverty required systematic, sustained and coordinated policy measures supported by necessary resources. Indonesia`s anti-poverty efforts have shown encouraging result, as . the number of Indonesians living below the poverty line has decreased from 16.7 percent of the population in 2004 to 14.1 percent in 2009.

"Even during the crisis we can reduce poverty to 13.3 percent in March 2010, " the president said.

The Second Annual AFI Global Policy Forum (GPF) dubbed "Taking Financial Inclusion to the Next Level" is being organized by AFI and Bank of Indonesia, in Jimbaran, Bali, from September 27 to 29, 2010.

Some 350 senior financial policymakers from over 60 developing countries, are participating in the Forum to discuss efforts to increase access to financial services for the poor through innovative policymaking. The first Forum was organized in Nairobi last year.

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Concern Over Indonesian Chamber of Commerce Chief’s Link to Bakrie

Jakarta Globe, Faisal Maliki Baskoro | September 27, 2010

Jakarta. After the Indonesian Chamber of Commerce and Industry elected Suryo Bambang Sulisto as its new chairman on Saturday, questions quickly arose over his ties to Golkar Party chairman Aburizal Bakrie and whether he would promote a reform agenda.

The tussle for the leadership of the country’s most powerful business body, also known as Kadin, has been part of a wider battle pitting younger reformists against old-guard businessmen who have in the past prospered from an inward-looking investment climate.

The chairmanship of Kadin is also seen as a stepping stone to political influence, with several government ministers having risen to prominence in the group.

The last elected chairman, MS Hidayat, left the post to become industry minister last year.

Suryo, 63, is president commissioner of coal miner Bumi Resources, the crown jewel in Bakrie Group, Aburizal’s family business empire.

Suryo is also a close friend of the tycoon/politician, whose influence has steadily risen since he won a barely concealed battle against former Finance Minister Sri Mulyani Indrawati this year.

Aburizal, who himself led Kadin from 1994 to 2004, is also chairman of the joint secretariat for President Susilo Bambang Yudhoyono’s ruling coalition.

Burhanuddin Muhtadi, a political analyst from the Indonesian Survey Institute (LSI), said Suryo’s election reaffirmed the status quo in the face of challenges from younger leaders.

 “Since a long time ago, Kadin has been very closely connected to Golkar. Nothing has changed.”

Suryo edged out Wishnu Wardhana, vice president of coal miner Indika Energy, in the second round of voting. Suryo won the initial voting over four other hopefuls but did not have a majority, forcing the runoff.

Kevin O’Rourke, a Jakarta-based political risk analyst, said Suryo’s win was a coup for Aburizal.

 “As the president commissioner of the Bakrie Group’s main operating company, Bumi Resources, Sulisto would significantly strengthen the policy-making influence of Golkar chair Aburizal Bakrie,” he said.

Despite his close relationship with Aburizal, business leaders said they expected the new Kadin chairman to be innovative and assist the government in furthering industrial development.

Erwin Aksa, the chairman of the Indonesian Young Entrepreneurs Association (Hipmi), said spurring growth in manufacturing should be a major part of Kadin’s agenda in light of pressure from the Asean-China Free Trade Agreement, which came into effect this year.

“The manufacturing sector has been showing signs of growth, but we still have to boost manufacturing in the non-oil and gas sectors,” he said.

Hatta Rajasa, the coordinating minister for the economy, called on the new chairman to boost competitiveness and invest more in research and development.

“We must build a strong partnership between the government and the business world,” he said. “We can enhance cooperation through the public private partnership scheme, and by increasing the role of regional Kadin chapters.”

Tensions were high during Kadin’s national conference, with police keeping the peace among angry participants.

Ade Sudrajat, deputy chairman of the Indonesian Textile Association (API), said the quarrels did not reflect well on business leaders.

“One would hope to see more elegance and maturity from businessmen,” he said.  

With additional reporting from Anita Rachman, Reuters and Antara

IMF: RI banking system strong, well capitalized

The Jakarta Post, Jakarta | Sat, 09/25/2010 11:52 AM

Indonesia’s banking system is strong and well capitalized, as has been proven by impressive improvements in financial stability during the 2008-2009 financial crisis, says a senior official at the International Monetary Fund.

“Indonesia has made great achievements in the last decade to improve macroeconomic and financial stability, with fiscal and monetary policies playing a major part,” IMF senior resident representative in Indonesia, Milan Zavadjil, said to The Jakarta Post on Friday.

The intergovernmental institution overseeing the global financial system made the statement in response to recent local media reports on the IMF’s latest assessment on Indonesia’s economy. The tone of the local media on the report was perceived as negative by the IMF.

“Some recent media stories on the report have been misleading and I would like to clarify the results of the assessment,” said Milan, claiming that even the stress test result, perceived as negative in some quarters, was actually very positive.

The IMF, which viewed the banking system as vital to Indonesia’s economic wellbeing, said the local banks achievements have been significant and showed improving supervisory systems.

On Sept. 16, the IMF released data on a theoretical stress test reportedly to help measure the strength of Indonesian banks in the face of a severe hypothetical crisis with -5 percent economic growth. In the simulation, the level of non-performing loans (NPL) in Indonesian banks was projected to rise to 31.5 percent.

Bankers and analysts responded to the IMF stress test unanimously indicating that the projection was totally unrealistic, portraying almost inconceivable circumstances, especially given the current excellent state of Indonesian banks.

Bank Indonesia (BI) data showed that in the first half of this year, average banks loan growth reached 18.88 percent, while gross non-performing loans (NPLs) remained manageable at 3.5 percent. The capital adequacy ratio (CAR) stood at 18.06 percent in the period ending June 30, higher than the central bank’s currently required level of 8 percent.

Given the current figures, the central bank called the stress test scenario “unrealistic”. The government saw 2011 economic growth at 6.4 percent and is targeting 7.7 percent growth by the end of President Susilo Bambang Yudhoyono’s term in 2014.

“BI expressed objections on the IMF scenario, which was based extremely negative economic circumstances. Even in times of extreme crisis, the central bank would do everything it could to rescue the economy to avoid such a downturn,” BI spokesman Difi Johansyah said in a statement, adding that the stress test should therefore in no way be considered as a forecast.

Indonesia's Sinar Mas Censured by Palm Oil Watchdog

Jakarta Globe, September 23, 2010

Sinar Mas has come under attack by Greenpeace who are campaigning against further expansion of forest industry and palm oil plantations in prime forest and peatlands that stores massive amount of carbon deposits. Palm oil industry watchdog, The Roundtable on Sustainable Palm Oil, said on its Web site its grievance panel had written to SMART and Golden Agri censuring the firms for the breaches uncovered by an audit. (AFP Photo/Romeo Gacad)

Jakarta. An industry body for sustainable palm oil has made its first public censure of a member, saying Indonesia’s Sinar Mas Agro Resources & Technology breached its principles and may face sanctions.

Sinar Mas Agro Resources & Technology, also known as SMART, last month released an independent audit after Greenpeace alleged SMART bulldozed high conservation value forests and damaged carbon-rich peatlands.

The audit gave SMART a mixed score card, highlighting some instances in which Indonesia’s environmental laws were breached.

The Roundtable on Sustainable Palm Oil, also known as RSPO, — an industry body of planters, green groups and consumers — said on its Web site its grievance panel had written to SMART and Golden Agri censuring the firms for the breaches uncovered by the audit.

SMART is a member of the RSPO but Golden Agri-Resources is not.

“In its letter to SMART and GAR, the panel finds there has been serious non-compliance with the RSPO code of conduct, specifically a failure by SMART to work towards implementation and certification of the RSPO principles and criteria,” it said.

In particular, RSPO principles on social and environmental impact assessments and peatland management have been infringed, it said.

“Members who have been found to not be in compliance and who continue to be in non-compliance with the RSPO regulations could ultimately face sanctions, including the suspension and, eventually, the termination, of their membership of the RSPO.”

The comments may be a blow to SMART’s aims to win back big palm oil buyers including Burger King, Nestle and Unilever, who have said they will stop buying from SMART because of environmental concerns.

The RSPO also urged GAR to stop publicly suggesting it was in the process of obtaining RSPO certification.

“GAR is not a member of the RSPO, nor has the RSPO yet received a membership application from the company. The Panel encourages GAR to submit a full and complete application for membership,” the statement said.

SMART said in a statement it would work toward the requirements set by the RSPO, including environmental impact assessments and conservation of deep peatlands.

Enormous amounts of climate-warming gases are released when deep peatlands are disturbed, and the deforestation of Indonesia’s extensive tropical forests led the World Bank to name it the world’s number three emitter in a 2007 report.

“We take the feedback of our stakeholders very seriously and this applies to the concerns of the RSPO, whom we are in touch with,” said Daud Dharsono, President Director of SMART.

Golden Agri referred queries to the SMART statement. SMART and Singapore-listed Golden Agri are controlled by the Widjaja family that founded Sinar Mas, a group with interests from plantations to property and finance.

Greenpeace welcomed the RSPO’s statement, saying RSPO should follow up on its reprimand by expelling SMART within four weeks if the company does not take action.

“Greenpeace is calling on other companies, like Cargill, to follow Unilever, Nestle and Kraft’s lead and cancel its palm oil contracts with Sinar Mas until it stops destroying rainforest and carbon rich peatlands,” said Greenpeace activist Bustar Maitar.

Reuters

End of deal: A Burger King franchise is seen on Sept. 2, 2010, in Los Angeles. The US hamburger chain has said it will stop buying palm oil from an Indonesian company accused of destroying rainforests. – AP/Damian Dovarganes

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It’s Disorder in the Hotel as Rival Lawyers’ Groups Clash

Jakarta Globe, Nivell Rayda | September 23, 2010

Hundreds of lawyers from the Indonesian Bar Association (Peradi) and Indonesian Advocates Congress (KAI) came to blows over KAI’s status at a function on Wednesday in Jakarta’s Gran Melia Hotel. (Kompas Photo/Yuniadhi Agung)

Jakarta. The long-running feud between two rival bar associations turned ugly on Wednesday when the groups engaged in a brawl before an inauguration ceremony.

Supreme Court Chief Justice Harifin Tumpa had been scheduled to swear in lawyers from the Indonesian Bar Association (Peradi) at the Grand Melia Hotel in South Jakarta.

Peradi is formally recognized by the court as the only authorized bar association.

At 9 a.m., however, hundreds of lawyers from the Indonesian Advocates Congress (KAI), a rival group not recognized by the court, barged into the hotel and demanded the chief justice also swear in its members.

Outnumbers guards attempted to block the KAI members in the lobby, but they managed to enter the ballroom where the ceremony was to be held.

Chairs were knocked over and a few punches were thrown in the ensuing melee.

“At this point, we told the participants of the inauguration to exit the ballroom and we locked the doors to avoid further scuffles,” Peradi secretary general Hasanudin Nasution said.

Several KAI officials, including Tommy Sihotang and KAI president Indra Sahnun Lubis, asked to meet Harifin and Peradi chairman Otto Hasibuan.

“We were deeply hurt when we saw the announcement [for the inauguration] in Kompas this morning,” Indra said.

“This is discrimination and we suspect the court is conspiring with Peradi to prolong its monopoly. This is a disgrace.”

Dozens of police officers soon arrived at the scene, including South Jakarta Police Chief Sr. Comr. Gatot Eddy Pramono, who tried to calm both sides.

“I asked the Peradi chairman and the KAI president to have a peaceful talk with me about this matter,” Gatot said.

Hasanudin said that after the incident, Peradi called off the inauguration and informed Harifin, who had not yet arrived.

Earlier this year, the Supreme Court issued a memo barring KAI lawyers from representing clients in court.

The court requires all lawyers with a KAI certificate to pass a Peradi examination before being allowed to practice.

The memo sparked protests from KAI members, around 100 of whom staged a rally and vandalized the Supreme Court building on July 14.

The rival organizations previously held a series of negotiations under the mediation of the Supreme Court, aimed at establishing a single bar association accommodating lawyers from both groups by 2012.

But Indra said that Wednesday’s planned inauguration violated the agreement.

Peradi was established in 2005 as a merger of eight bar associations, in accordance with a 2003 law requiring the establishment of a single nongovernmental organization to test and certify the country’s lawyers.

The Constitutional Court in 2006 upheld Peradi’s status as the official organization to issue certifications for lawyers.

But in July 2007, a number of prominent lawyers formed KAI, claiming that Peradi was legally flawed because it had been established only by a few individuals instead of a congress of lawyers.

Attorney General Hendarman Supandji, in this file photo, has been relieved of his duties following a judicial review of the 2004 AGO Law. (Antara Photo/Widodo S. Jusuf)

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Jakarta Globe, Nivell Rayda | September 20, 2010

Jakarta. An antigraft group has lambasted a district head in East Java for spending Rp 2.4 billion ($278,000) on end-of-Ramadan gift packages for his subordinates.

The hampers are traditionally handed out during Idul Fitri, which marks the end of the Islamic fasting month of Ramadan, and can contain anything from food to clothes to books.

In August, the Corruption Eradication Commission (KPK) issued orders barring all civil servants from accepting any Idul Fitri gift packages because it feared they could be used as a front for bribes.

On Monday, however, corruption watchdog Transparency International Indonesia reported that Blitar district head Herry Noegroho had spent billions on hampers that he handed out to his subordinates.

TII researcher Ilham Saenong said Herry might have misappropriated district funds to bankroll the stunt.

“As far as we know, the Blitar administration has never allocated funds for buying hampers,” he said at a press conference.

“It’s possible the money came from a contingency fund or from emergency social aid funds.”

The watchdog said it had learned about the purchase after residents complained and sent in pictures of the hampers, which featured a signed greeting card from Herry.

Ilham said Herry might have wanted to boost his re-election chances in the upcoming local election.

“Handing out gifts is one of the most common tactics used by public officials seeking re-election,” he said.

“There are also indications that the purchase of the hampers did not go through a tender.”

By law, government contracts valued at more than Rp 50 million must go through a public tender.

The controversy comes on the heels of a similar move by West Java Governor Ahmad Heryawan, who spent more than Rp 1.2 billion on 450,000 Idul Fitri greeting cards and stamps featuring his picture — also unveiled by TII.

“The governor should have spent his own money on the greeting cards instead of using taxpayer money,” TII researcher Putut Aryo Saputro said.

Meanwhile, Indonesia Corruption Watch, another antigraft watchdog, said such practices had been allowed to flourish because of the inaction of the Elections Supervisory Body, which monitors cases of campaign and electoral violations.

“In the run-up to regional elections, you always see the incumbent allocating a lot of money to social aid or other popular programs,” ICW researcher Ibrahim Fahmi Badoh said.

“This is underhanded campaigning and should be stopped. ”

On Monday, TII also said it had proof that civil servants had flouted a KPK order against using their official cars to travel to their hometowns for the holiday.

Ilham said the watchdog had received pictures from the public of Jakarta-registered cars with red license plates marking them out as belonging to state institutions, taken in several Central and East Java towns.

“One such car was even spotted in East Java a whole week after Idul Fitri,” Ilham said.

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