"A Summary" – Apr 2, 2011 (Kryon channelled by Lee Carroll) (Subjects: Religion, Shift of Human Consciousness, 2012, Intelligent/Benevolent Design, EU, South America, 5 Currencies, Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Middle East, Internet, Israel, Dictators, Palestine, US, Japan (Quake/Tsunami Disasters , People, Society ...), Nuclear Power Revealed, Hydro Power, Geothermal Power, Moon, Financial Institutes (Recession, Realign integrity values ..) , China, North Korea, Global Unity,..... etc.) -

“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

The headquarters of the Corruption Eradication Commission (KPK) in 
Jakarta. (BeritaSatu Photo)
"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …

Monday, September 30, 2013

Australia central bank subsidiary in Saddam link

Google – AFP, 30 Sep 2013

Iraqi President Saddam Hussein delivers a televised speech in 1998 -- the year
 a company owned by the Reserve Bank of Australia attempted to strike a
business deal with him (IRNA/IRNA/AFP)

Sydney — The Reserve Bank of Australia on Monday admitted staff from a subsidiary visited Iraq at the height of UN sanctions after it was accused of attempting to strike an illegal deal with Saddam Hussein.

A joint investigation by the Australian Broadcasting Corporation and Fairfax Media said secret files showed officials from the central bank's scandal-hit Note Printing Australia (NPA) went to Iraq to discuss a contract to turn the country's paper currency into polymer notes.

During the 1998 trip, codenamed Delta Project, they met a middleman -- former dictator Hussein's brother-in-law and bodyguard Arshad Yassin, the reports said.

"Indications from Arshad Yassin's office are that Saddam Hussein's office has already allocated $US65 million for the total project," RBA officials said in one document, the media groups reported.

A man walks past the Reserve Bank of
 Australia on May 7, 2013 (AFP/File,
William West)
"He has confirmed that Saddam Hussein has seen the polymer notes samples and is keen to adopt our product."

Reserve officials working for NPA said the funds could potentially be accessed by funnelling them through a Jordanian bank "with the green light of SH (Saddam Hussein)," it was alleged.

The operation was called off six months later after Australian diplomats uncovered the secret dealings with the brutal regime, according to the ABC.

The RBA admitted officials made the trip, as calls mounted for a full inquiry.

"The visit in 1998 was, in the opinion of the bank, ill-advised," it said in a statement.

"No banknotes were ultimately supplied to Iraq. On the records available to the bank, the project went into abeyance after concerns were raised by DFAT (Department of Foreign Affairs and Trade) with the then-CEO of NPA."

David Chaikin, a legal expert at the University of Sydney who reviewed the confidential bank documents, said the negotiations were a violation of international law and alarm bells should have been sounded "to the highest levels of the bank".

"What was happening is not only in violation of law, but could potentially destroy and undermine the reputation of Note Printing Australia and its owner, the Reserve Bank," he told the broadcaster.

He added to Fairfax that the files contained a "very strong prima facie" case that officials involved in the trip had breached a UN sanction that banned Australians from promoting the sale or supply of goods to Iraq.

NPA has been plagued by allegations of corruption in recent years, with claims it and another RBA subsidiary Securency paid bribes to win plastic bank note contracts in Asia.

Executives from both companies have been charged over the alleged racket, which involved contracts in Indonesia, Malaysia, Vietnam and Nepal, following an investigation by Fairfax in 2009.

The RBA has previously denied it attempted to hide information related to the Asian contracts, with bank chief Glenn Stevens telling an inquiry last year that he knew nothing about the scandal before it was exposed.

Whistleblower Brian Hood, a former NPA executive, told the ABC and Fairfax that Stevens' testimony "wasn't the truth" and the RBA knew of the allegations in 2007, claims the bank rejected Monday.

"The governor has always answered questions in parliamentary proceedings fully and truthfully," it said.

Australian Greens Party deputy leader Adam Bandt said the latest revelations were disturbing.

"Most Australians would be shocked to know their central bank was using their money to line up dirty deals with Saddam Hussein," he said.

"The stench surrounding the Reserve Bank gets worse and a full inquiry is needed to clear the air."

Thursday, September 19, 2013

Indonesia Warned of Weak Human Capital

Jakarta Globe, Anushka Shahjahan, September 19, 2013

Thai office workers walk past advertising promoting the Asean Economic
Community (AEC) in Bangkok in this Jan. 14, 2013 file photo
(AFP Photo/Pornchai Kittiwongsakul)

The vision of an integrated regional economic community by 2015 is aimed at liberalizing trade among the 10-member Association of Southeast Asian Nations, but questions remain over whether the countries are ready for it and how Indonesia will benefit from the integration.

A press statement released after the ninth Asean Economic Community council meeting said that 77.5 percent of the regulatory and economic measures under the blueprint had already been implemented.

However, analysts have expressed doubt about whether full implementation by the December 2015 deadline is viable, saying most Asean countries are far from ready for the changes. They argue that economic and developmental disparities between member states will create challenges in the integration process.

“Some Asean countries, such as Singapore, will be better equipped during the integration process to benefit than the less developed countries, which could challenge the process,” Aldian Taloputra, an economist at Mandiri Sekuritas, told the Jakarta Globe on Wednesday.

Some countries stand to benefit more from the economic integration than others, he added, which may lead to potential instability within the region.

Indonesian preparedness

In 2007, the Asean leaders formally adopted the Asean Economic Blueprint leading to the expected establishment of the AEC in 2015, with the goal of a single market and production base, fully integrated into the global economy.

After Asean nearly doubled its GDP per capita from $2,882 in 2000 to $5,581 in 2011, economic integration was a natural next step for the bloc.

However, according to analysts, although a presidential green light backs the integration process, Indonesia needs to strengthen its infrastructure and human capital in order to be ready by 2015.

“Indonesia needs to focus more on the quality of its human capital and infrastructure in preparing from 2015, not simply rely on political rhetoric,’’ said Eric Sugandi, an economist at Standard Chartered.

“Indonesia will lose its competitiveness if it can only attract high-skilled labor and not send quality workers overseas,” said Purbaya Yudhi Sadewa, an analyst at Danareksa, adding that Indonesia needed to improve the quality of its human capital in order to benefit more from integration.

While certain sectors may require more preparation, Indonesia is competitive in areas such as banking, according to Aldian. “We have great capital and good-quality assets, which can compete regionally.”

However, he agreed that human capital and infrastructure remained structurally weak sectors going into 2015.

The government is currently implementing a developmental strategy, the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), to prepare Indonesia to enter the AEC.

“This master plan has already improved our competitiveness” said Purbaya, expressing hope that continued implementation of the program could potentially expand the Indonesian economy.

“However, expansion needs to happen because at the current pace continues, Indonesia will not be ready by 2015.”

Competitiveness is not the only issue Indonesia needs to be prepared for. It also has to be ready to protect and support its markets against external shocks after integration has taken place, analysts say.

“The government needs to realize it is not only about preparing markets for integration, but also the side effects. Indonesian industries will become more vulnerable to external shock, and can only benefit if they are ready to face such challenges,” Eric said.

He stressed that for Indonesia, the benefits of the economic integration would depend entirely on the preparation it put in ahead of the move.

Asean’s preparedness

A major challenge facing the Asean member states is the economic disparity between them, and whether that will strengthen or weaken the economic community as a whole and its ability to profit on a global scale.

Analysts stand divided over whether the developmental disparities will serve to benefit or be detrimental to the entire integration process.

“Theoretically, integration will benefit all consumers,” Eric said.

“But local producers who can’t compete with their international counterparts will suffer,” he added.

While each nation can specialize and benefit from free trade within the region, disparities may also hinder some sectors of the economy that are not as well equipped to compete on a more international scale.

“From Indonesia’s point of view, the disparities will be beneficial, because integration will help equalize our GDP per capita, if we can trade freely with higher-income countries such as Singapore and Malaysia,” Purbaya said.

However, Asean remains distinctly split between two groups: the so-called Asean 6, comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, and the CLMV, which consists of Cambodia, Laos, Myanmar and Vietnam.

While the CLMV is still regarded as the underdog in Asean, it has rapidly narrowed the gap on its Asean 6 brothers as signified by the drop in the percentage of the population living in less than $1.25 per day.

This percentage decreased from 45 to 16 percent between 2000 and 2010 for the CLMV, while the Asean 6 saw a decline from 29 to 15 percent in the same period, according to the Asean Secretariat.

Highlighting the Indonesian example of a rapidly widening income gap, Eric noted that vast income gaps often accompanied rapid economic development.

Some of the CLMV nations currently also face political instability, and a widening income gap may fuel the fire, according to Eric.

Therefore, although economic integration may lead to prosperity, each nation needs to implement it at its own pace in order to ease the transition.

The economic disparity also plays a key role in terms of attracting foreign direct investment, Eric said.

According to the Asean Secretariat, investment flows into the Asean bloc increased fourfold from $21.81 billion in 2000 to $114.08 billion in 2011, with Singapore, Indonesia and Malaysia receiving the largest shares.

However, these dynamics in attracting foreign investment may change drastically once the AEC integration process has taken place.

On the one hand, the CLMV nations can attract more regional and international investment after the integration, but on the other, only Myanmar may stand to benefit from this, according to analysts.

“Among the CLMV countries, Myanmar is the most attractive, investment-wise,” Eric said.

“The others will suffer as a result of the integration and lose out on FDI,” which will create tensions within the region.

After decades of isolation under a military junta, Myanmar has been slowly liberalizing its economy, and coming after years of economic neglect there is large scope for rapid growth.

However, Indonesia’s chances of attracting more FDI will also increase after the integration, Eric said.

“Indonesia will attract more investment after integration as it will encourage more regional investment alongside its inflow of current international investment,” he said.

Wednesday, September 18, 2013

Newly discovered Fujian mine could produce 250,000 tonnes of gold

Want China Times, Staff Reporter 2013-09-18

Gold ore. (File photo/CFP)

Major gold reserves have been discovered in southeast China's Fujian province, according to local news website Taihainet.

The Fujian Geological Prospecting Bureau has verified the find in Dehua county after over a decade of research and investigation.

The mine is estimated to hold over 10 million tonnes of ores that may produce over 250,000 tonnes of gold. The discovery could also provide important clues for researchers to find other gold mines.

Monday, September 16, 2013

Indonesia Bonds, Rupiah Gain as Summers Quits Race for Fed Chief

Jakarta Globe, Bloomberg, September 16, 2013

Rupiah forwards strengthened for a third day after the central bank raised
interest rates last week. (Reuters Photo/Enny Nuraheni.)

Indonesia’s bonds advanced, driving the 10-year yield to a one-month low, and rupiah forwards gained after Lawrence Summers withdrew from the race to become the next Federal Reserve chief.

Summers may have provided less monetary stimulus than Chairman Ben S. Bernanke when his term ends in January, according to a Bloomberg Global Poll in which 47 percent of respondents said Janet Yellen, another candidate, would stick with the current policy. One-month non-deliverable rupiah forwards climbed for a third day after the central bank raised interest rates last week to stem a slide in the currency.

“Summers is more conservative and would have been keen to reduce stimulus sooner as he thinks the U.S. economy has improved,” said Rully Nova, a foreign-exchange analyst at PT Bank Himpunan Saudara 1906 in Jakarta. “Continuing euphoria over Bank Indonesia’s responsiveness in raising rates to tackle inflation is also supporting the rupiah and bonds.”

The yield on the 5.6 percent notes due May 2023 fell 40 basis points, or 0.4 percentage point, to 8 percent as of 9:45 a.m. in Jakarta, the lowest level since Aug. 14 and the biggest drop in almost two months, according to prices from the Inter Dealer Market Association.

One-month rupiah forwards rose 1 percent to 11,155 per dollar, trading 2.3 percent stronger than the spot rate, the biggest premium in data tracked by Bloomberg going back to 2001. In the onshore market, the currency was little changed at 11,416 from 11,410 on Sept. 13, prices from local banks compiled by Bloomberg show.

Ease inflation

Bank Indonesia boosted its benchmark reference rate to 7.25 percent on Sept. 12 from 7 percent. The move will speed up an improvement in the current-account deficit and stabilize inflation, Deputy Governor Perry Warjiyo said the same day. Consumer prices rose 8.8 percent in August from a year earlier, the fastest pace in four years, official data showed Sept. 2.

One-month implied volatility in the rupiah, a measure of expected moves in the exchange rate used to price options, fell 65 basis points to 17.8 percent, the least since Aug. 20, data compiled by Bloomberg show. A fixing used to settle rupiah forwards was set at 11,174 per dollar on Sept. 13, according to the Association of Banks in Singapore.

Related Article:

Sunday, September 15, 2013

Emerging markets to lead global development: IMF official

Want China Times, Xinhua 2013-09-14

Zhu Min at the Summer Davos forum in Dalian, Sept. 12. (Photo/Xinhua)

Emerging markets will lead global development and contribute to more than 80% of growth in the coming years, IMF deputy managing director Zhu Min said Thursday.

During a session at the ongoing 2013 Summer Davos Forum in northeast China's Dalian, Zhu told reporters that the US Federal Reserve's impending stimulus withdrawal will undoubtedly trigger widespread global volatility, but the emerging market is not likely to see a crisis.

His comments came after worries about the US reduction of the US$85-billion dollar bond-buying program sent jitters to some emerging markets such as India and Indonesia, prompting concerns of another financial crisis.

Zhu said compared with five years ago, these markets are now better positioned to cope with the possible shock, citing an improving macro environment, lower debt levels, increasing currency reserves as factors to cushion the blow.

He also urged the Federal Reserve to enhance policy transparency and carefully choose the timing of the scale-back to allow emerging markets to be better prepared.

Li Daokui, director of the Center for China in the World Economy at Tsinghua University in Beijing, echoed Zhu's view, saying the impact of the tapering move, which depends on the fundamentals of the economies, will be more diversified.

He believed China can weather through the phase as it has a bigger buffer of currency reserves.

Related Article:

Tuesday, September 10, 2013

Indonesian Minister ‘Shocked’ at Harrison Ford Climate Interview

Jakarta Globe – AFP, September 10, 2013

Indonesian President Susilo Bambang Yudhoyono speaks to US actor
Harrison Ford during an interview at the presidential palace in Jakarta.
(AFP Photo/Presidential Palace/Abror Rizki)

Indonesia’s forestry minister has accused Hollywood legend Harrison Ford of subjecting him to a rude interview on climate change that left him “shocked,” an official said Tuesday.

The “Indiana Jones” and “Star Wars” actor, who is making part of an environmental documentary in Indonesia, attacked the minister with questions during the encounter on Monday, said presidential adviser Andi Arief.

The adviser accused Ford and his crew of “harassing state institutions” and said the 71-year-old could even be deported — although he was due to leave Indonesia later Tuesday anyway.

Forestry Minister Zulkifli Hasan told reporters that he had been angered by Ford’s approach during the interview in the capital Jakarta.

“His emotions were running very high,” the minister was quoted as saying by the state-run Antara news agency.

“I understand the American man just came here to see Tesso Nilo [a national park on Sumatra island] and wanted violators to be caught the same day.”

The minister added he was not given the chance to explain the challenges of catching people who break the law in Indonesia’s sprawling rainforests, where illegal logging is rampant.

“I was only given the opportunity to say one or two sentences during the interview,” he said.

Arief said the minister thought there would have been some time to discuss the interview before it began.

But in the event he was “shocked that as soon as his [Ford's] crew came in, they started filming and interviewing him… and attacking him with questions.”

“There’s no privilege for him although he is a great a actor,” he said. “His crew and those who were helping him in Indonesia must be questioned to find out their motives for harassing a state institution.”

“If necessary, we will deport him,” he added.

Ford, who has supported numerous environmental causes in recent years, has travelled to several places in Indonesia to make part of a series on climate change called “Years of Living Dangerously” for US television network Showtime.

He also met with President Susilo Bambang Yudhoyono on Tuesday.

As Southeast Asia’s largest economy grows rapidly, swathes of biodiverse forests across the archipelago of 17,000 islands have been cleared to make way for paper and palm oil plantations, as well as for mining and agriculture.

Agence France-Presse

Yudhoyono Against Attack on Syria

Jakarta Globe, Primus Dorimulu, September 9, 2013

G20 leaders (left to right, front row) US President Barack Obama, Germany’s
 Chancellor Angela Merkel, Indonesia’s President Susilo Bambang Yudhoyono,
 Russia’s President Vladimir Putin, (left to right, back row) British Prime Minister
 David Cameron, World Bank President Jim Yong Kim, United Nations (UN) Secretary
 General Ban Ki-moon, Turkey’s Prime Minister Recep Tayyip Erdogan and Australia's
 Foreign Minister Bob Carr, pose for the family picture during the G20 summit in Saint
 Petersburg on Sep. 6, 2013. World leaders at the G20 summit on Friday failed to bridge
 their bitter divisions over US plans for military action against the Syrian regime, with
 Washington signalling that it has given up on securing Russia's support at the UN
on the crisis. (AFP Photo/Kirill Kudryavtsev)

St. Petersburg, Russia. President Susilo Bambang Yudhoyono has written letters to US President Barack Obama and four other leaders of the UN Security Council in an attempt to persuade them not to attack Syria.

In addition, the president has also written a letter to UN Secretary General Ban Ki-moon.

“There are peaceful ways of addressing this conflict if the UN Security Council announces a cease fire,” Yudhoyono told journalists before leaving Russia late on Saturday. He arrived in Jakarta on Sunday after a three-country visit, culminating in Russia for the Group of 20 summit.

Yudhoyono said a vote by the UN Security Council would have a major impact on the situation, especially if it called for a ceasefire. “That’s why I wrote the letters,” Yudhoyono said. “President Obama and the US government can reconsider their decision There are other ways of dealing with this conflict besides war,” he added.

US officials have said that it had enough evidence Syrian President Bashar al-Assad ordered a chemical-weapon attack last month that killed more than 1,400 of his people.

Obama subsequently said he had decided the United States should take punitive action but wanted support from Congress, which may vote on the issue soon. With the exception of France, no other country has supported the US plan for a military strike.

During the G-20 summit many countries, including the European Union, affirmed they would await the UN Security Council vote before deciding on their course of action.

Russia and China, two permanent members of the UN Security Council with veto powers, have voiced rejection and may block any attack on behalf of the UN. Yudhoyono said Indonesia would never agree on the use of force against Syria without a UN mandate.

While Indonesia was far from the Middle East and seemed to have nothing to do with the issue, he said, “We have a moral and constitutional obligation to prevent wars. On behalf of humanity and good intention, we must be active in resolving the issue peacefully.”

He dismissed suggestions that Indonesia could significantly influence US policy decisions with regard to the conflict.

Other world leaders have reacted to the issue in recent days. British Prime Minister David Cameron said he was convinced the US would be able to build a coalition for action although Britain will not take part in the military action following last week’s vote in parliament. Russian President Vladimir stated recently he will not exclude supporting a UN resolution if it is proved that the Syrian regime used poison gas.

Related Article:

Monday, September 09, 2013

Renminbi becomes world's ninth most traded currency

Want China Times, Staff Reporter 2013-09-08

Counting RMB banknotes at a bank in Suining, Sichuan province. (Photo/Xinhua)

After the Basel-based Bank for International Settlements on Spet. 5 announced that the renminbi is now the world's ninth most-traded international currency, economic observers told the state-run China News Service that more challenges are ahead for China's government.

Surveying 24 currencies in 53 countries and regions in its report, the Bank for International Settlements said the renminbi has risen to ninth place because of significant expansion in offshore trading in the currency, according to the Associated Press.

Guo Tianyong, director of the Banking Research Center at the Central University of Finance and Economics in Beijing said the rise of China's political and economic clout is the key reason the country's currency is becoming increasingly favored. However, Guo said this also means a greater burden on the renminbi to stabilize the global economy in the future.

Zhou Jingtong from the Institute of International Finance of the Bank of China said the government must pay more attention to global economic interests instead of focusing on China alone when it sets policy as the country's reputation as a new economic power depends upon it.


Guo Tianyong  郭田勇

Wednesday, September 04, 2013

Former Police Gen. Djoko Susilo Sentenced to 10 Years

Jakarta Globe, SP/Novianti Setuningsih & Carlos Paath, September 3, 2013

Insp. Gen. Djoko Susilo (L), Indonesia's former traffic police chief is
 escorted by a guard from the Corruption Eradication Commission (KPK)
 after Indonesia's anti-corruption court in Jakarta jailed Susilo for ten years
on September 3, 2013. (AFP Photo)

The Jakarta Anti-Corruption Court sentenced Insp. Gen. Djoko Susilo to 10 years in prison and confiscated most of the two-star police general’s Rp 200 billion ($18 million) in illicit assets in a verdict heralded as a potentially vital step in the nation’s fight against endemic corruption on Tuesday.

Djoko was declared guilty of corruption and money laundering by a panel of five judges after a marathon three-hour reading of the nearly 3,000 page indictment detailing his involvement in a graft-tainted driving simulator procurement project that cost the state some Rp 121 billion in losses. He was ordered to pay Rp 500 million in fines or face an additional six months in prison.

The sentence was less than the 18 years in prison and Rp 1 billion in fines requested by prosecutors. Prosecutors had also demanded that he return Rp 32 billion to the state – the same amount as his alleged bribe.

Prosecutors charged Djoko with money laundering in an effort to confiscate the Rp 200 billion in assets the former National Police Traffic Corps. chief accumulated during his tenure as a police officer. The implementation of the little-used law was championed as a milestone in the increasingly bold Corruption Eradication Commission’s (KPK) uphill fight against graft in a country routinely ranked as one of the most corrupt nations on earth.

Indonesia has historically struggled to stem the flow of illicit money in a nation where corruption has permeated all levels of society, from public school teachers to senior members of President Susilo Bambang Yudhoyono’s ruling party.

Corruption charges brought against prominent officials, especially ranking police officers, rarely result in serious jail time or the confiscation of graft funds. The system, instead, allowed corrupt officials to serve short prison sentences without fear of losing the very funds they were convicted of stealing.

The money laundering charge, which allows the prosecution to seize a graft suspect’s illegal wealth, represents a step forward for the KPK. Most of Djoko’s assets — more than 30 properties and seven cars — will be seized. The deeds to four properties, and two marriage certificates, will be returned, the court ruled.

The remaining properties and seven vehicles will remain the property of the state.

Djoko’s attorney Juniver Girsang said his client planned to file an immediate appeal in a televised press conference from the courthouse. Another lawyer, Teuku Nasrullah, told MetroTV that the defense took exception with several of the facts forming the foundation of the charges.

The KPK leaders also expressed disappointment, telling the media that they would file an appeal after examining the court’s verdict.

“We expected he would get a minimum sentence of two-thirds of the 18 years the prosecutors had demanded. So it should be 12 years at the very minimum. That’s why we will file an appeal,” said Zulkarnaen, a KPK deputy chairman.

Bambang Widjojanto, another KPK deputy chief, said, “The KPK thinks the sentence is debatable but we respect the decision and we are going to use the seven days given by the court to think it over because we think the verdict isn’t momentous enough.

“The legal construction of the prosecutors’ demands was really good, but the result has not managed to accommodate everyone’s wishes,” he said.

“We are grateful for the public’s attention to this case. The public’s attention has helped [us] guide this case to the end.”

Johnson Panjaitan, a senior adviser at Indonesia Police Watch, said the judges had presented sound reasoning for their decision to convict Djoko under the anti-corruption and money laundering laws.

“However, they don’t have the nerve to give him a bigger punishment because of probable pressure and political consideration, despite the fact that the same court had previously sentenced a prosecutor to 20 years in a bribery case,” he said, referring to prosecutor Urip Tri Gunawan, who was caught by the KPK while taking a bribe in 2008, and later was sentenced to 20 years in prison by the anti-corruption court.

Indonesia Corruption Watch campaigner Tama S. Langkun also urged the KPK to file an appeal.

“Djoko was a law enforcer; his punishment should have been harsher than for civilian corruptors,” he said.

“And his political rights must definitely be revoked to prevent people like him running in future legislative elections. I can’t imagine what’s going to happen to this country if a person like him ever became a legislator,” he said.

The case was closely watched by legal observers and anti-corruption activists as a litmus test for future graft cases, including the ongoing investigation into several public officials implicated in a scandal centered on the Energy and Mineral Resources Ministry and state oil and gas regulator SKKMigas.

Investigators are currently comparing the official wealth report and bank accounts of Waryono Karyo, the ministry’s secretary general, with the combined wealth of all assets that can be traced back to him.

Legislator Trimedya Panjaitan said that the verdict would create a strong precedent for the KPK to investigate other police generals accused of having accumulated an abundance of wealth that could not be explained by their official income.

Monday, September 02, 2013

Former Health Ministry Director Sentenced to 5 Years in Bird Flu Graft Case

Jakarta Globe, SP/ Novianti Setuningsih, September 2, 2013

Ratna Dewi Umar at anti-corruption court in Jakarta on Monday. (JG Photo/
Afriad Hikmal)

Disgraced Ministry of Health Director Ratna Dewi Umar was sentenced to five years in prison on Monday for inflating the cost of needed medical ventilators at the height of Indonesia’s response to the most deadly outbreak of bird flu in the world.

In 2007, Indonesian health officials were scrambling to control an outbreak of the H5N1 virus that left more than 100 people dead by the end of the year. Mortality rates for those infected with the virus have remained above 78 percent in the years that followed as the nation eventually recorded 159 of the 359 reported human fatalities to date, according to World Health Organization data.

As the nation rushed to head-off a possible nationwide epidemic, Ratna marked up the price of medical ventilators purchased from subcontractor Prasasti Mitra, a company owned by Bambang Rudijanto Tanoesoedibjo, the brother of media mogul and presidential hopeful Hary Tanoesoedibjo. The scheme cost the state some Rp 12 billion ($1.2 million) in losses.

“We declare that the suspect Ratna Dewi Umar has been found convincingly guilty of corruption,” lead judge Nawawi Pomolango said.

The former health director was also ordered to pay Rp 500 million in fines or face an additional three years in prison. She has maintained her innocence through the trial, testifying that former Health Minister Siti Fadilah Supari was responsible for the graft.

“I was just following an order from my superior, I did not intend to commit any corruption as accused,” Ratna said. “Siti Fadilah Supari has been untouchable and is so sure she will not be touched,but I am convinced she will not escape her judgment day.”

Siti was originally called in as a witness in Ratna’s case, but was later declared a suspect by the Corruption Eradication Commission (KPK) for allegedly accepting Rp 1.2 billion in traveler’s checks associated with the graft scandal. In November of last year, the KPK announced it would move to seize the former health minister’s assets.

She has denied the charges.

Sunday, September 01, 2013

China joins anti-tax evasion convention

Want China Times, Kuo Chi-yun and Staff Reporter 2013-08-31

Wang Jun of the State Administration of Taxation of China, shakes hands
 with OECD secretary-general Angel Gurria after signing the Multilateral Tax
Convention in Paris on Aug. 27. (Photo/Xinhua)

In demonstrating its determination to crack down on tax evasion, China has partnered with the European Commission and OECD (Organization of Economic Cooperation and Development) in signing the the Multilateral Convention on Mutual Administrative Assistance in Tax Matters this week, becoming its 56th signatory.

China's participation in the convention may have considerable influence on Taiwanese-invested companies in China, especially those who often conceal their profits offshore, a practice which will be liable to huge fines under the rules of the convention, said Tuan Shih-liang, a certified public accountant at PwC Taiwan.

Crackdowns on cross-border tax evasion have been a major global issue since the last financial crisis in 2008, with many multinationals such as Google, Amazon, Apple and Starbucks having been criticized for committing paying low amounts in taxes despite their huge profits. The signing of the convention is meant to underscore the Chinese government's determination in dealing with problems of tax-base erosion and profit transference.

Insiders noted that many Taiwanese businesses have invested in mainland China via tax havens such as the Cayman Islands. Tuan noted that the agreement allows taxation authorities of signatory nations to provide specific income information about taxpayers to other signatories, greatly boosting the risk of tax investigations about Taiwanese businesses.

China is the last G20 member nation to sign the convention, underscoring the consensus among developed and emerging nations on cracking down on cross-border tax evasion.

China started tightening its regulations in 2011. The effort generated 34.6 billion yuan (US$5.7 billion) of extra tax revenue in 2012, 27.9 times the amount in 2008, according to the State Administration of Taxation.

Offshore Secrets

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