Yogyakarta relocates traditional market

Tarko Sudiarno, The Jakarta Post, Yogyakarta | Fri, 04/23/2010 10:31 AM | The Archipelago A | A | A |

A cultural procession marked the peaceful relocation of Yogyakarta’s popular Ngasem Bird Market to a new location on Thursday.

Hundreds of traders in the market made the incident-free move to the new market.

The market, where birds and various other animals are sold, was moved from its previous location in Taman Sari complex at the Yogyakarta Palace to a new site called Yogyakarta’s Animal and Decorative Plants Market.

Public order officers on horseback escorted the 287 traders on horse- and ox-driven carriages while bystanders lined the 2-kilometer procession.

Yogyakarta Mayor Herry Zudianto, who also took part in the event, rode on a horse-drawn carriage with market officials.

The Yogyakarta municipality’s success in relocating the market was attributed to the traders’ involvement in finding an ideal location that was not dirty, crowded and muddy. They were invited to engage in discussions and asked for input on the layout and design of the new market.

The traders from the old market were also involved in the procession and wore the traditional attire of a cultural carnival.

Herry attributed the relocation’s success to trust among officials and traders as well as the private and banking sectors.

“I will continue to monitor the progress of the new market so it will become better and be visited by many people,” Herry said.

The new market is located on the outskirts of Yogyakarta, close to Bantul regency.

The 5,500-square-meter building sits on a 15,605-square-meter plot, larger than the former market, which covered 2,136 square meters with a building space of 1,690 square meters.

The old location will be developed for the expansion of the Taman Sari cultural complex.

The new market is equipped with 16 kiosks measuring 12 square meters each, and 37 spaces divided into 764 stalls measuring 2.4 square meters each.

The new market also has 22 toilets, a small mosque, six security posts, a complaint and information center, three bird domes, a playing area for children and a 590-square-meter parking lot.

Yogyakarta provincial secretary Tri Harjun Ismaji, who stood in for Governor Sri Sultan Hamengku Buwono X at the relocation procession, said the Ngasem market had been a tourism icon and part of the community in Yogyakarta.

The relocation, he said, was made for the sake of city development and there was no need for traders to worry that customers would disappear.

“The relocation provides a better, bigger and cleaner place for traders and visitors.”

People

Rachel Maryam files for divorce

The Jakarta Post, Jakarta | Fri, 04/23/2010 8:51 AM | People

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JP/P.J.LEO

JAKARTA: Actress and member of the House of Representatives Rachel Maryam Sayidina has filed for divorce, the actress’ personal assistant says.

Rachel’s personal assistant Billy Harjanto said on Wednesday night that Rachel had begun divorce proceedings against her husband Muhammad Akbar Pradana, popularly called Ebes, at the South Jakarta Religious Court early this month.

“It’s true, mbak Rachel filed for divorce around two weeks ago,” he said as quoted by Kompas.

Billy said Rachel had not yet appointed a legal representative for her April 28 trial.

Billy said he did not know why she had asked for a divorce. He added that Rachel was not able to give interviews because she was sick.

“Mbak Rachel has been sick for the last two days and the doctor has recommended bed rest. But, I’m sure [her sickness] is not related to the divorce proceedings. It has more to do with being exhausted from work,” he said.

The 30-year-old married in 2005. She gave birth to a son a year later.

Rachel shot to fame after staring in a Riri Riza movie Eliana, Eliana in 2001. She has starred in nine movies, including the groundbreaking Arisan!, directed by Nia Dinata. Here, she played the role of a young Batak lawyer.

The member of the Great Indonesian Movement Party (Gerindra) took up her position in parliament late last year.

Feature

Saying ‘I do’… the lavish way

Dian Kuswandini, The Jakarta Post, Jakarta | Fri, 04/23/2010 9:21 AM | Feature

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If newlyweds could wish for anything on their wedding day, then perhaps it would be to see people leaving their reception profoundly impressed and uttering: “This is the most memorable wedding!”

East meets West: Cakes, and a mix of luxurious Eastern and Western wedding decorations are on display at the Five Star East meets West wedding exhibition in Jakarta, in April 2010. JP/Dian Kuswandini

For some, an unforgettable wedding is one that is simply remembered as “beautiful”. For others, however, luxury has become the “it” factor, and all they wish for is to seal their everlasting love with a lavish and stunning wedding.

 “And why shouldn’t they go for that [kind of wedding]?” says renowned wedding organizer Emil Eriyanto, who has put together  many high-end nuptials. “Their wedding is a once in a lifetime moment. If you can afford a lavish wedding, then why not?

“Make it the most stunning one,” he adds.

Emil recently organized the sumptuous wedding reception of actress Nia Ramadhani and Ardie Bakrie, the son of Aburizal Bakrie — the Golkar party chairman and one of the country’s richest men. Rumor has it that the wedding — said to be this year’s most spectacular — cost up to Rp 100 billion. Emil, who organized the three-day celebration in Jakarta, however, refused to disclose the exact cost of the wedding, out of respect for his clients who do not wish to discuss the matter.

“I can only say that, sometimes, a wedding might look luxurious, but in fact, it didn’t really cost as much as people thought,” explains Emil, who has been in the wedding industry for 13 years.

Another famous wedding organizer, Rina Gunawan, agrees with Emil. According to her, a luxurious-looking wedding is just a matter of “smart face-lifting”.

“It’s our job to play ‘the magician game’ — turning the simple into the luxurious-looking,” says Rina, also an actress and presenter. “And those who said Nia and Ardie’s wedding cost Rp 100 billion are totally wrong.

Believe me, I know, it didn’t cost that much,” she adds.

Rina had her own reasons to make such a claim because she was one of the few organizers behind socialite Adinda Bakrie’s — Aburizal’s niece, wedding in 2008. The wedding, rumored to have cost Rp 20 billion, was not as expensive as people thought.

“People made the wrong assumptions [about the wedding’s cost] — they were fooled by the luxurious-looking decorations,” she smiles.

These days, Rina says, the local wedding industry has grown significantly, offering brides and grooms many options to chose from when tying the knot. This, she says further, has encouraged some people to hold extravagant weddings.

“Today, there are many [wedding] themes to chose from,” she says. “There are books about weddings, wedding exhibitions, and so on. People today are more knowledgeable about weddings and have more sources to draw inspiration from.

“That encourages them to hold unique or big weddings.”

Many of us might wonder how much people spend for their “big” dream wedding. Well, there are no exact numbers, since the cost of a wedding depends on the number of guests — how much food has to be ordered and how big the venue must be to accommodate them.

If 1,000 invitations are sent out (implying 2,000 guests have been invited), Rina says, a reception in a banquet hall can cost between Rp 400 million to Rp 500 million. This, of course only covers expenses for the venue and food.

“In five-star hotels, it would cost more than Rp 500 million,” says Rina, who was also behind the much-praised weddings of celebrities like Bunga Citra Lestari and Ashraf Sinclair, as well as Titi Kamal and Christian Sugiono.

In addition to that, lucullan weddings generally entail splurging on designer wedding gowns, famous makeup artists and top decorators.

For stylish wedding decorations, for example, one should spend around Rp 150 million, Rina says.

“But if you want super-duper deluxe decorations from a top decorator then it will cost you Rp 500 million,” she says, referring to the likes of Soeryanto, Nefi and Stupa Caspea.

Meanwhile, for the makeup package, Rina goes on, “a famous wedding makeup artist will cost up to Rp 40 million.”

And what about wedding gowns, or the kebaya [Javanese traditional blouse] and suits?

“Designer-made ones range from Rp 25 million to hundreds of millions of rupiah,” Rina says, mentioning

top local designers Anne Avantie, Amy Atmanto, Sebastian Gunawan, Eddy Betty and Biyan. Some brides also ask for wedding gowns from international designers like Vera Wang, Vivienne Westwood, Dior and Carolina Herrera, with ready-to-wear designs costing more than Rp 100 million.

Of course, once guests have been dazzled by the bride and groom’s amazing looks, the beautiful wedding decorations and succulent food, couples and families planning weddings shouldn’t forget about entertainment.

Yes, although Rina says entertainment is probably at the bottom of the list of priorities when planning a wedding, it remains the defining touch of a lavish wedding.

There are three forms of entertainment for high-end weddings, she says: a top singer, an orchestra and chamber music.

The most popular singers for big weddings include Krisdayanti, Titi DJ and Rossa. Meanwhile, those looking for a very high-class reception would probably go for orchestras belonging to Erwin Gutawa, Purwacaraka or Andi Riyanto.

“However, chamber music is the favorite type of entertainment at present,” Rina said. “With musicians playing the piano, saxophone, flute and bass, most couples feel it won’t add too much noise to the already loud reception.”

So, now that we know a big wedding is more than just a celebration in a hall or ballroom, what actually happens “backstage”?

Well, organizers say a wedding reception of just a few hours can take up to six months to prepare.

“And most couples coming to us have already picked the venue for their reception,” says Emil.

“If the venue has already been chosen, the next item to discuss is the theme,” he adds.

Couples or wedding organizers come up with the wedding theme, he says.

“Once I proposed a soccer-themed reception to coincide with the World Cup season, and my client was happy with the idea.

The couple came out from a big soccer ball to surprise their guests,” recalls Emil, who has organized weddings for the families of ministers such as Hatta Rajasa, Djoko Suyanto, Jero Wacik and Purnomo Yusgiantoro.

Wedding organizers, according to Emil, are all about easing the pressure on couples getting married.

“People hire wedding organizers because they and their families want to feel more relaxed before and during the big day,” Emil says. “So, we set up the [wedding] schedule and negotiate with decorators, caterers, designers and photographers.

“We also arrange meetings between couples and vendors,” he adds.

Rina agrees with Emil: “We set up a timetable for the couples, to make sure they meet weekly or monthly targets as scheduled.

“Besides,” she goes on, “we help couples manage their budgets.”

Both Rina and Emil refuse to say how much people pay for their services. However, they explain wedding organizers use different systems of fees.

“Some wedding organizers ask for a percentage of the wedding’s total budget, but I have a fix fee,” Emil says, adding that he handles three to eight weddings per month. “My fee is, well, relatively the same [as other wedding planners],” he laughed.

Rina, on the other hand, acknowledges that some wedding organizers charge 10 to 20 percent of the total wedding budget. She, however, also applies a “management fee”.

“So, it will depend on how much staff I have to assign for the event, and for how many days, [they have to work]” Rina, who owns ten staff, says. “For example recently, I organized the wedding of [businessman-cum-politician] Oesman Sapta’s child, where 14,000 guests had been invited.”

With such a high number of guests, of course, Rina had to deploy all of her 40 something part-time staff.

“That meant more expenses [for me], so I had adjust my fee, right?” says Rina, who handles four to six weddings every month.

culture

Free trade agreement not a threat: Local artisans

Agus Maryono, The Jakarta Post, Cilacap | Fri, 04/23/2010 9:34 AM | culture

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Sarinah, 54, painstakingly applied her canting (a pen-like tool to draw the batik pattern in wax) across a piece of fabric decorated with a batik motif in wax.

Occasionally, she would blow on the canting before it touched the cloth.

Sticking to tradition: Three women stir batik dye from the same pan. Hundreds of women in the area make a living out of designing batik tulis (using a canting rather than a metal stamp). JP/Agus Maryono

Blowing on the canting is necessary so the material isn’t damaged by the hot wax it contains, said Sarinah.

Sarinah, a resident of Maos Kidul village in Cilacap, Central Java, is one of hundreds of women who work as batik artists. Some of them create batik in their homes while others work at their employer’s house.

However, only 10 percent use their skills to create their own batik designs. The rest work for someone else, and are paid on the quantity of batik they produce.

Tonik Sudarmaji, 40, owns Rajamas Batik, one of the batik businesses in the village of Maos Kidul. He employs 70 women in his workshop, all are over 50 years of age.

“The art of creating batik has been handed down from generation to generation for hundreds of years in this area … The history of batik tulis here is part of the cultural heritage of Prince Diponegoro, dating back to the 1800s,” Tonik told The Jakarta Post at his workshop recently.

“According to this story, this village is one of the places Prince Diponegoro rested when he fought in this region, along with his soldiers. The soldiers planned their war strategies and recorded them in the form of a special Maos batik,” Tonik said.

He later explained that Maos batik was a special type of hand-drawn batik (batik tulis) with a very special design only found in this part of Indonesia.

“What makes Maos batik unique is a classic motif with a dark base, a combination of a white and red tree bark colors, or dark brown,” Tonik said.

The names of the batik motifs are derived from the Prince Diponegoro’s war strategies, Tonik said.

“The special Maos batik motifs have unique names such as Cebong Kumpul, Kembang Ambring and Lung Seketi. All these names were part of the warrior code, which was composed as part of a strategy to defeat the enemy,” Tonik said.

Maos batik tulis is mainly sold to middle-to-upper-class clients, because it is fairly expensive to produce. The cheapest men’s shirt, for example, retails for around Rp 350,000 (US$40).

Prices can also reach tens of millions of rupiah for batik traced on silk. This type of batik is expensive because the manufacturing process is complicated and takes quite a long time, Tonik said.

“Almost all our important officials including the First Lady have special Maos batik tulis. They usually buy it when I hold an exhibition in Jakarta,” Tonik said.

Tonik added that he welcomed good free market relations in the ASEAN-China Free Trade Area (ACFTA) agreement, which has come into effect this year. With the agreement, the market for batik tulis is expected to grow in several neighboring countries in Asia, without difficult trade procedures.

“We are very pleased with the free market agreement. We aren’t afraid at all of ACFTA. In this era, this is a golden opportunity for us to expand overseas,” said Tonik, who is also the chairman of the Central Java Warna Alam Batik Tulis Craft Workers’ Forum.

“Batik tulis products aren’t produced by China. China makes cheap batik cap [batik made using metal stamps].

So, it would be impossible for China to make the same product at a cheaper price,” said Tonik, who is also the owner of Rajamas Batik Tulis Maos.

Tonik said that before the free trade agreement, his batik products were mainly marketed to a number of big cities including Jakarta, Denpasar and Bandung.

“There are a number of important state officials who like Maos batik. This includes President Susilo Bambang Yudhoyono. We received an award from him because of this batik,” said Tonik, who works with his wife, Euis Rohaini.

“Since the implementation of the FTA we’ve opened an outlet in Malaysia, and next we will open one in Singapore,” Tonik said.

Thousands of pieces of special Maos batik tulis are produced by women in Maos every week, Tonik said.

“More than 100 pieces are produced in our workshop every week,” Tonik said.

Meanwhile, Maos subdistrict chief Agus Utomo said Maos batik tulis was much more attractive to consumers outside Cilacap because it was comparatively expensive.

“Yes, the lower classes can’t afford it. So it is good that it is marketed overseas,” said Agus Utomo when talking to the Post.

Agus said the Cilacap regional administration had already passed a number of decrees to help promote Maos batik.

“Every Thursday all local government officials in the Cilacap Regional Administration must wear a batik uniform purchased from Maos.

“As well as this, other ministries including the National Education Ministry have started to follow suit,” Agus said.

“We are proud of this home industry and the heritage of our ancestors,” he said.

To improve productivity, a number of craftspeople creating Maos special batik tulis have said they require bigger workshops. At the moment they work with “a limited set of tools in their kitchens”.

“So this is exactly our problem at the moment. We don’t have adequate workshops. Batik here is a home industry, often conducted by women in their kitchens.

 “We still lack workshops, especially for the finishing processes and coloring,” he said. Among the hundreds of home industries making Maos batik, all carry out the finishing process in a very simple way using laundry buckets in their kitchens.

“We really hope the government can help us purchase adequate equipment and facilities for us so we can increase our production,” Tonik said.

Creating special Maos batik tulis takes around ten days to complete, said Euis Rohaini, 35, the wife of Tonik Sudarmaji, who directs the women who create batik.

“The first thing is to take a piece of plain white cloth, which will be used to make the batik and draw a pattern with it. Then after that comes the canting process,” Euis said.

The canting technique consists in applying a pattern to the cloth using liquid wax.

After that, the cloth is dyed using natural colors in accordance with special characteristics of the motifs for Maos Batik.

The next process is called pelorotan, which describes the process of removing the wax from the cloth to ensure the motif can be clearly seen. This process uses hot water to wash the wax off the cloth.

“After this the cloth is dried and aired but not under direct sunlight. This drying takes around one full day,” said Euis.

“The batik cloth is then ironed and pressed until it’s smooth and ready to be marketed,” said Euis Rohaini.

Marwiyah, 56, one of the batik artists working for Euis, said batik took a long time to make and was a particularly tiring process.

“It should be done very carefully, otherwise the wax used for the batik will not melt onto the motif. And the temperature needs to be monitored to make sure it is not too hot,” Marwiyah said.

Hundreds of women in the area make a living out of creating batik tulis.

The Archipelago

Lampung mangroves could be extinct in 5 years: Activist

Oyos Saroso H.N., The Jakarta Post, Lampung | Fri, 04/23/2010 10:15 AM | The Archipelago

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Activists have warned that the uncontrolled conversion of mangrove forests into fish farms in a number of coastal regions across Lampung could make the plant species extinct in the province within five years.

Data compiled by Lampung’s Marine and Fisheries Agency showed that 736,000 hectares or 60 percent of the province’s 1.9 million hectares of mangrove forests have been severely damaged due to uncontrolled conversion of the forests into fish ponds by large fishing companies and local fish breeders.

In South Lampung regency, the destruction of mangrove forests has allowed seawater to enter coastal farms, destroying crops. Tens of hectares of rice fields have been converted into fish ponds.

In East Lampung, mangrove destruction has also led to increased coastal erosion.

Mangrove forests are essential to fish farming company Proteina Prima’s prawn production center in Tulangbawang regency, the largest in Southeast Asia, has been compromised by

mangrove destruction by local residents because the coastal habitat attracts prawns to the region.

The director of the Indonesian Forum for the Environment (Walhi) in Lampung, Hendrawan, said 3,000 hectares of mangrove forests had been destroyed in the regency. He said the local administration had failed to rehabilitate the forests despite the central government allocating billions of rupiah for a mangrove rehabilitation program.

“No significant results can be seen so far,” Hendrawan said, adding that most mangrove rehabilitation programs did not produce significant results.

Data compiled by Walhi Lampung, he said, showed there were only some 160,000 hectares of mangroves left in Lampung, 85 percent of which were in critical condition.

Meanwhile, Mitra Bentala, a nongovernmental organization for mangrove forest conservation, found that between only 5 and 20 percent of mangrove forests in the province’s coastal areas were still intact.

“Some coastal areas no longer have any [mangrove forests],” Mitra Bentala’s director Herza Yulianto said.

He said that all mangroves in Lampung would be gone within five years if steps were taken.

“So far, no strong commitment has been shown by either the governor or regents to save the remaining 30 percent of mangrove forests and rehabilitate the rest, or 70 percent, of the damaged ones,” he said.

Herza said with no mangrove forests to protect coastal regions and attract wildlife, the number of fresh fish would decline dramatically.

“Ninety percent of fish in the sea depend on a healthy coast, comprising mangrove forests to coral reefs,” he said. “A healthy ecosystem will be favored by fish as a breeding ground.”

Head of Lampung Forestry Agency’s forest exploitation division Priyanto Putro said 48 percent of the mangrove ecosystem in the province was damaged due to the conversion of mangrove forest into fish farms.

“We have been trying to restore the condition by replanting mangroves in a number of regions,” he said. “We also have devised a master plan for mangrove rehabilitation, especially in eastern coastal regions.”

The Archipelago

Atambua bishop rejects military battalion

The Jakarta Post, ATAMBUA, East Nusa Tenggara: | Fri, 04/23/2010 10:17 AM | The Archipelago

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ATAMBUA, East Nusa Tenggara: Atambua Bishop Mgr. Dominikus Saku, Pr has rejected a plan to establish two military battalions in 2011 in North Timor Tengah and Belu regencies.

His objection was based on the fact that Timor Leste is a small country with a population of only 1 million which poses no serious threat to Indonesia.

“The people are traumatized by the Indonesian Military,” Dominikus said Thursday, referring to human rights violations in the former province.

On behalf of local catholic churches he had sent a letter to President Susilo Bambang Yudhoyono, the military commander, and the House of Representatives to mull the cancellation of the plan.

What local people need, he said, is development in education, health, agriculture and other sectors to improve their lives.

“Military officials have been insisting that the presence of two battalions will help promote economic growth in the area. In my view, nowhere in Indonesia would thrive in the presence of a large number of military members,” he said. — JP

The Archipelago

Pluralism, multiculturalism a reality

Sri Wahyuni, The Jakarta Post, Yogyakarta | Fri, 04/23/2010 10:31 AM | The Archipelago

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Failure to catch up with latest development is blamed for triggering misunderstandings in the Muslim community on the values of pluralism, multiculturalism and democracy, a noted Muslim scholar says.

Ahmad Syafii Maarif, former chairman of Muhammadiyah, one of the country’s biggest Muslim organizations, said the failure has often forced people to use old paradigms to deal with new developments.

“There have been tendencies among Muslim people to easily label young intellectuals as secular just because of their being critical,” said Syafii on the sidelines of a discussion on the Muhammadiyah in the context of the political culture of power.

Citing an example, he said that a lecturer in Gresik, East Java, was once banned from giving a lecture simply because he wrote a book on multiculturalism.

Pluralism and multiculturalism, he added, is a reality.

He said that there are many verses in the Holy Koran that discuss pluralism and acknowledge diversity.

“Even people who have no faith at all also have the right to live on earth,” Syafii said.

What Muslims need to do is try to understand these verses well so that they will be able to find the red thread in the Koran, he added.

Syafii also said that lagging behind in civilization, science, technology and prosperity often made people defensive and reactionary — sometimes even acting wildly — in dealing with new developments.

He said that the culture of easily getting suspicious, or even easily rejecting new ideas such as  pluralism, multiculturalism and on women’s leadership issues, in most cases reflected a lack of understanding about these ideas.  

“In Pakistan and India, for example, there has been strong rejection among ulemas against leadership by women.

“But they forget to look at the empirical reality where male leadership has caused severe damageto the world in the last two centuries,” he said.

Syafii said that it was also lack of such understanding that often led to the emergence of hard-line groups — desperate groups who faced the wave of civilization that is more and more secular by means of suicide attacks or by slandering everyone they considered to be different.

“It’s not an answer. Islam is a pro-life religion, not a pro-death one,” said Syafii, one of the country’s noted pluralist leaders whose biography has inspired a filmmaker to produce a film on Syafii entitled Si Anak Kampung (The Village Kid).

In order to be able to cope with development and be more open to new ideas, he called on Muhammadiyah activists at all levels to be familiar with the Internet and to read more.

“Intellectualism is the same as pluralism. Lack of pluralism means decadency,” said Syafii, quoting a German Muslim thinker Murad Hoffman.

He hoped the centennial  congress of the Muhammadiyah   in Yogyakarta from July 3rd to 8th  would be able to accommodate all supporters including advocates of pluralism.

”Diversity has to be considered as the nature of the organization.

Don’t easily judge young generations who have different opinions regarding democracy, pluralism and human rights as secular,” he said.

”They also need to be accommodated in Muhammadiyah. They will make Muhammadiyah richer [in diversity],” he said.

Fire razes JW Marriot Hotel in Medan

The Jakarta Post, Medan | Fri, 04/23/2010 10:17 AM | The Archipelago A | A | A |

MEDAN: A fire broke out at the five-star JW Marriot Hotel in Medan on Thursday, causing several visitors to become unconscious.

No deaths were reported from the incident, but several of the hotel’s facilities were badly damaged.

Medan Police chief Sr. Comr. Imam Margono said that the fire, which was believed to have been triggered by a short circuit, started on the third floor. Firefighters, using five fire trucks, had managed to contain the blaze and prevent it from going to other floors.

“We have checked every room and we did not find any casualties. Only one visitor from Japan was trapped in his room on 20th floor, but was soon evacuated,” Imam said.

During the evacuation several visitors fell unconscious from smoke inhalation.

Laila Novrianti Tanjung, who was on 25th floor when the fire broke out, said she had smelled a strange odor but was distracted. A few minutes later she received instructions from the hotel to evacuate the building via an emergency exit. — JP

New craters emerge at mudflow gush point

Indra Harsaputra, The Jakarta Post, Surabaya | Fri, 04/23/2010 10:31 AM | The Archipelago A | A | A |

The Sidoarjo Mudflow Mitigation Agency (BPLS) has been monitoring two new craters at the center of the mudflow site as well as the presence of highly explosive gas emissions flowing out from the road.

The BPLS deputy of operational affairs, Soffian Hadi, said the presence of the two new craters at the center of the mudflow gush point had expanded from 90 meters to 200 meters in diameter.

The two craters are not new in the volcanic system, but they must be carefully observed because they could have an impact on the mudflow, he said.

“I have just observed the mudflow activity from the air. The flow from the main crater has stopped currently, but it doesn’t mean it has stopped completely. It may have moved to the two new craters,” Soffian told The Jakarta Post.

He said that despite the expanding size of the craters, the mudflow volume from the new craters, which emerged on April 8 and 10 near the main gush point, had decreased.

“The mudflow discharge from the two craters is 30,000 cubic meters per day, compared to the main gush point of 50,000 cubic meters.

“We are still monitoring the main crater although it is no longer discharging mud, but conditions could change any minute.

“It stopped emitting mud for a few minutes previously, but later resumed in higher volume,” he said.

Soffian blamed the two new craters for the presence of seven gas emission points since April 11 along Porong highway.

The BPLS has also been notified by geologist Andang Bachtiar of the possibility of the formation of a large crater in Sidoarjo due to the mudflow.

“I’m still unclear of the structural change of Sidoarjo city in the next few years due to the mudflow. The mud volcano could form a new mountain, land or crater,” Soffian said.

The mudflow began in May 2006. At the time Lapindo, a company owned by the family of Golkar Party chairman Aburizal Bakrie, was drilling in the area.

Last year, the Supreme Court ruled that there was no evidence that Lapindo was not negligent in its handling of victims of the mudflow.

Experts have said that the mudflow would not have occurred if Lapindo had not engaged in oil and gas exploration activities.

BPLS Geohazard Observation sub-unit head Riko Aditya said the intensity of the low explosive limit (LEL) gas emissions in seven points along Porong highway fluctuated.

The spokesman for the Surabaya operational zone of state railway company PT Kereta Api, Catur Herry, said that the company would issue an instruction to all trains passing Porong disaster site to reduce their speed to 10 kilometers per hour.

“The speed limit is aimed at preventing sparks on the rails that could cause a fire when the trains hit the brakes, and also because the rails have been sinking by up to 2 centimeters per day,” he said.

Catur added that the company had to pad the sinking sections of the railway line with gravel to minimize accidents.

PT Kereta Api has also issued a smoking ban for passengers and locomotive drivers.

World

EU to lift mercury testing on RI edible fish products

Mustaqim Adamrah, The Jakarta Post, Jakarta | Fri, 04/23/2010 10:51 AM | World

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Indonesian edible fish products destined for European markets will no longer be subject to rigorous mercury detection inspections, an association says.

“Indonesia has managed to relax a European Union (EU) regulation — starting April 16. (Indonesia’s) sea catches will no longer be subject to mercury inspections,” Indonesian Fisheries Processing and Marketing Entrepreneurs Association chairman Thomas Darmawan told The Jakarta Post on Thursday.

The heavy metal detection requirement has been in place since 2006. The regulation was passed in 2006 after an EU commission team found that fisheries products imported from Indonesia and intended for human consumption spoiled quickly and contained high levels of histamine.

The inspections also revealed that Indonesian authorities did not carry out reliable inspections of fish, in particular to detect histamine and heavy metals, the 2006 Commission Decision said.

A letter sent last month by the Food Standards Agency, an independent government department with headquarters in the United Kingdom, said the European Commission proposed to revoke the 2006 Commission Decision, which requires heavy metal testing on all imports of non-aquaculture fishery products from Indonesia.

“The Commission has now received appropriate guarantees from the Indonesian authorities that controls are in place to ensure products meet EU requirements as regards to heavy metals,” the letter said.

“Also, the results of import controls at EU Border Inspection Posts indicate that imports are satisfactory.”

Although it lifts a mercury testing requirement, the EU has increased the strictness of antibiotics testing on farmed fishery products from Indonesia.

It now stipulates that a minimum 20 percent of consignments be tested, up from 10 percent, according to Thomas.

“The issue of antibiotics is actually an old problem,” he said.

“We actually have improved now. But maybe an [EU] inspection team found unsatisfactory results during their visit here last November.”

The FSA in its letter said that at least 20 percent of consignments of farmed fisheries products from Indonesia intended for human consumption would be subjected at Border Inspection Posts to sampling for testing for pharmacologically active substances, in particular chloramphenicol, metabolites of nitrofurans and tetracyclines (including tetracycline, oxytetracycline and chlortecycline).

According to Thomas, Indonesia exported US$146.6 million worth of shrimp, $34.29 million of tuna, $21.24 million of seaweed and $100.54 million of processed fish (excluding tuna and shrimp), to Europe in 2009.

Central Statistics Agency data showed that non-oil and gas exports to the EU stood at $2.59 billion in the first two months of this year, up by 37.8 percent from the $1.88 billion booked in that period last year.

World

Musharraf govt responsible for Bhutto’s death: UN probe

Lilian Budianto, The Jakarta Post | Fri, 04/23/2010 10:51 AM | World

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Former attorney general Marzuki Darusman has just ended his tenure as a member of the UN commission preparing a report into the investigation behind the death of former Pakistani prime minister Benazir Bhutto. Bhutto, twice prime minister of Pakistan from 1988-1990 and 1993-1996, was assassinated in December 2007 in a national election rally. The Jakarta Post’s Lilian Budianto spoke on Thursday to Marzuki, who is also a Golkar politician, about the findings of the three-member UN Commission of the Inquiry into the Assassination of Bhutto. Below are excerpts of the interview:

How was the commission established?

It was an ad-hoc commission established in July 2009 under the UN leadership.

I was appointed by UN Secretary-General Ban Ki-moon as a member along with the Chilean Ambassador to the UN, Heraldo Munoz and former Irish Police deputy commissioner Peter Fitzgerald. I represented Asia while Munoz represented Latin America and Fitzgerald represented Europe.

What were the findings of the commission?

There are three main points in our findings. First, the death of Bhutto could have been prevented if the then government had provided similar security as it had to the two prime ministers before Bhutto.

The second is that we reported that the then government (under former president Pervez Musharraf) has some measure of responsibility in the death.

Third, Pakistan’s Inter Service Intelligence (ISI) has deliberately hampered the police investigation into the assassination.

We also found that there was a deliberate attempt to take a short-range approach into the investigation. The main suspect, a 15-year-old boy, could not be the only person behind this. There must be somebody helping him and financing his actions.

The allegation that al-Qaeda was behind the murder and no one else was another point we see as simplifying the problem. It is not a secret that the ISI has been supporting al-Qaeda.

Does the report have any legal weight to help bring the suspects to justice?

We submitted the report to the UN Secretary-General and the Pakistani government on April 15. Our commission was a fact-finding body and not a judicial commission.

Pakistani authority can investigate further and initiate legal proceedings based on our report. The Pakistani government has reacted positively to our report. Former Pakistani president Musharraf has been against the report because it implicates him.

But the UN Security Council can exercise some political pressure to bring those held responsible to justice.

(Note: The Guardian reported Tuesday that Pakistani authorities have suspended eight officials over the death of Bhutto in the wake of the UN report.)

Whose testimony did the commission use as a basis for the content of the report?

We conducted interviews with Scotland Yard, the US State Department, the British Foreign Ministry, UAE (United Arab Emirates) intelligence  services and officials from Afghanistan and Saudi Arabia. The background is that the US State Department and the British Foreign Ministry convinced Bhutto to return home after years in exile as part of efforts to democratize Pakistan, to prepare for national elections.

Officials from the UAE, Afghanistan and Saudi Arabia were interviewed because of reports that Bhutto was warned by officials from these three countries about a possible assassination attempt.

The reports were basically prepared in Pakistan. We had staff in Pakistan and the commission members, three of us, met regularly. The commission finished its task on April 15 after we submitted the report to the UN Secretary-General and the Pakistani government.

Were you ever involved in any other investigation in other countries before this?

From 2007-2008 I was a member of a commission that reported on human rights conditions in Sri Lanka. The commission was established as a cooperation between the Inter Parliamentary Union and the UN.

People

Rina Gunawan: Between dream weddings and blessings

Dian Kuswandini, The Jakarta Post, Jakarta | Fri, 04/23/2010 8:38 AM | People

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Amid the flowers, ribbons and other beautiful things at weddings, actress Rina Gunawan always finds herself shivering at the sight of so many blessings showered on newlywed couples.

“I can’t help myself from trembling every time I’m there,” says Rina, who has now become a wedding planner.

“While people pray for couples’ happiness, angels are actually there too — witnessing and listening to the good prayers.

“That’s why in that very sacred moment,” she continues, “I always extend my prayers to the couple, hoping their marriage will last forever.”

JP/DIAN KUSWANDINI

It is perhaps not surprising that Rina finds herself deeply disappointed whenever she hears couples whose weddings she helped arrange ended up getting a divorce.

“Like when [actress] Dina Lorenza divorced her husband. I felt terrible inside,” says Rina, who is married to actor Teddy Syach.

“I witnessed their romance and I know what they went through to make their dream wedding come true.

“That really made me wonder ‘what went wrong?’”

Rina has her own reasons for feeling this way. While some may say wedding planners are professional service providers, Rina regards herself as part of her clients’ families. With a strong personal attachment to them, Rina listens to them like a member of the family would, and prays for everyone.

“From the beginning, when I talk in front of the whole family, I always say, ‘I’m here as a part of your family… I’m not a stranger’,” she says.

“I have maintained good relationships with all of my clients. I still get invited to their family events and I’m so blessed for that.”

Being responsible for so many highly admired nuptials, Rina never dreamed of becoming a wedding planner. In fact, she accidentally jumped into the business in 2001, when comedian-turned-lawmaker Eko Patrio begged her to organize his wedding with actress Viona Rosalia.

“Previously, my friend [singer] Krisdayanti asked me to organize her daughter’s birthday party,” says the 36-year-old, who started her career as a singer, dancer and presenter.

“It was my first time but it was a success, and from there, people started to ask for my help organizing events.”

Then one day, Eko came to her and said, “Would you help me organize my wedding?” Surprised at the offer, Rina asked about the wedding date, and to her bigger shock, Eko replied: “It’s next month!”

At such a short notice, Rina turned down the offer, saying she had no experience in organizing weddings. Eko, however, insisted and assured her she could do it. The rest is history — when one famous wedding is a success, word-of-mouth does its magic. And until today, Rina has organized countless weddings including those of famous people like Bunga Citra Lestari and Ashraf Sinclair, Titi Kamal and Christian Sugiono, Adinda Bakrie, Nico Siahaan, Ferry Maryadi, Monica Oemardi, Cici Faramida, and the families of ministers and high-ranking officials.

“I know some people might think I only handle high-profile clients, but that’s not true. I have organized very modest weddings for kampung residents in my neighborhood.

“For me, a wedding is everyone’s big dream, so I should help them make their dreams come true,” Rina says.

Planning someone’s wedding is not something fancy. In fact, it’s a job where one has to get over their ego for the sake of clients’ satisfaction, she says.

“It’s a job where you have to smile all the time — no matter what,” Rina says.

“You don’t argue with your clients, and you take their complaints and anger with a smile.”

It’s the same philosophy she has passed on to her employees.

“It happens all the time — my staff deal with clients who express their anger with profanities,” she says.

“It’s sometimes out of line, but I keep reminding them, ‘keep smiling and don’t say a bad word in return. If you want to cry, do it later in the bathroom!’”

That’s why working as a wedding planner requires patience and strength, she says.

“Because a wedding is a big thing for everyone, people tend to be sensitive about every single detail,” Rina explains.

“In many cases, you witness fights among couples and family members. Parents disagree with their children, and so on.”

So, wedding planners “listen to everyone, and calm them down. It’s never easy, but that’s how it works”.

A stressful life, indeed. And just how does Rina handle all this pressure? Apart from her “smiling” weapon to keep her calm, there’s another thing that keeps her alive.

“Deep inside, I believe marriage is sacred, and being involved in making it come true is a gracious thing to do,” Rina says.

“Whenever I pray for a marriage, it makes me think of my marriage, and I pray for it too.”

Rina can be grateful for her marriage to Teddy, with whom she tied the knot in 1999, and which has never been the target of gossip in the media. While Rina admits she has a packed schedule, she has her own tricks to make everything run smoothly — both at work and at home.

“I will never start work in the morning before my husband leaves and my children go to school,” says the mother of two (Aqshal Ilham Syafatullah, 10, and Karnisya Rahmasyach, 7).

“And I make sure I return home before my husband arrives and my children wake up from their afternoon nap,” she says.

The weekend, Rina adds, is also dedicated to her family, although most of the time she has to attend her clients’ weddings.

“Almost everybody gets married on the weekend, so what can I do?” Rina says.

“And they all want me to come. They tell me they would feel safer if I was there with them.”

Well, with three weddings on the one day, you can imagine how Rina struggles to hop from one place to another. And, no, she doesn’t use a car.

“A car couldn’t do it! I kidnap my ojek [motorcycle taxi] driver for the whole day!” she says, laughing.

Sports

RI women teams advance along with two men teams

Matheos Viktor Messakh, The Jakarta Post, Batam | Fri, 04/23/2010 11:47 AM | Sports

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Indonesia will be represented by two pairings each in the women’s and men’s divisions at the second round of the Asia-Pacific Beach Volleyball Tournament in Batam following Thursday’s group stages.

Ayu Cahyaningsiam and Eri Sri Susilowati secured a spot in the second round after defeating Malaysia’s Kuck Sea Yeng and Woo Ching Ru on Thursday 21-6, 21-8 in 40 minutes to finish runner-up in the pool C.

Previously, the duo defeated Hong Kong’s Wong Wai Fong and Wong Yuen Mei 2-1 and lost to Thailand’s Julalak Radarong and Maneerat Udomchavee 1-2 in Wednesday’s matches.

The Thai duo is undefeated in three matches and topped pool C.

As runner-up, the Indonesian duo will meet the third-placed team from either pool A, B or D, while the Thais face a relatively easier road as they play the fourth-placed team from either pool A, B or D. The drawing of lots for the single elimination round is held on Thursday night.

The pair follows in the footsteps of Indonesia’s Riris Irawati and Fitri Wijayanti, who also booked a place in the next round, although they will face the top team from another group following two defeats in the group stage.

After being defeated by New Zealand’s Micah Brown and Hannah Croad on Wednesday, the young Indonesian duo suffered another defeat to Thailand’s Prateep Kambut and Aunchalee Yansuwan on Thursday.

“They did not play very well and I think we play at the same level but we lost because we had less passion,” 20-year-old Fitri told The Jakarta Post.

Riris and Fitri still have another match against Australia’s Eliza Dean and Sarah Bataglene in the evening that will decided whether they finish third or fourth in pool D.

In the men’s division, Indonesia’s Koko Prasetyo and Andy Ardiansyah will have a relatively easy draw because as the pool B winners, they will play the runner up from either pool A, C, D, E, F, G or H. The draw is also held on Thursday night.

Another Indonesian duo, Jonathan Monim and Robertus Yanakaimu, also secured a spot in the elimination round although they were defeated by Thailand’s Sittichai Sangkhacot and Prathip Sukto 6-21, 16-21 on Wednesday.

The Indonesian duo finished second in pool A because there are only two team in the pool. They will play the winner of either group A, C, D, E, F, G or H.

Agung Santoso and Naci Subagya will have to wait for Thursday evening’s game to see whether they advanced to the next round.

Sports

‘Sanshou’ athletes in need of fighting experience

Agnes Winarti, The Jakarta Post, Jakarta | Fri, 04/23/2010 11:47 AM | Sports

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Indonesian wushu martial artists specializing in sanshou (free fighting) need more competition experience and sparring partners to improve before the Asian Games in Guangzhou, in November, their coach says.

“Without competitions and sparring partners there will be no improvement even though they already have good technical skills,” said sanshou coach Salim Ayuba on the sidelines of a physical test for athletes from the Asian Games squad Thursday.

Two sanshou athletes, Junaidi Sukamto Rahmat — who will compete in the 60 kilogram men’s event — and Moria Manalu — a 60-kg female fighter — hope to compete at the Games from Nov. 12-27. Junaidi won silver in the men’s shanshou 60-kg event in last year’s Laos SEA Games. Moria won silver in the women’s 56-kg shanshou event.

Salim said he had finalized his competition schedule for between June and November this year. “There’s one international invitational Wushu Sanshou Tournament in Medan, North Sumatra, this May, that we will take part at. But other than that, it depends on the outcome in Medan.”

Eight countries will contest the tournament in Medan, including China, South Korea and Thailand. “It will therefore be a good opportunity for us to observe our potential opponents at the Games,” Salim said.

Indonesia’s four athletes who will contest the taolu (form) event, Susyana Tjhan, Lindswell, Aldy Lukman and Heriyanto, have already set out a rigorous training regime for their preparations for China.

Aldy, who won gold in the men’s changquans event in Laos, recently departed to Shandong for training and Heriyanto, who won silver in the men’s nanquans at the same event, flew to Guangzhou recently to begin his preparations.

Susyana, who picked up gold in Laos in the women’s changquans event, and teammate Lindsweel, who won silver in Laos in the women’s taijiquan-taijijian category, will travel to Shanghai and Wuhan, respectively, in May to begin their preparations.

Both will compete at the Sportaccord Combat Games in Beijing from August 24-30.

“We can’t send the sanshou athletes to China because they are unable to communicate in Mandarin. So, they will be focusing on their training at home,” said Ngatino, secretary-general of the Indonesia Wushu Association, on Thursday.

Ngatino said the sanshou fighters would compete at the Beijing Open Tournament in September.

Ngatino said he expected Indonesia’s wushu artists to at least match the team’s success at the 2006 Asian Games in Doha, Qatar, where Susyana brought home silver. “This year, Lindswell and Susyana are the hopefuls for medal success.”

When asked to reveal her personal expectations for the Games, 21-year-old Moria said: “I don’t want to boast about my target, I simply wish to do my best at the Asian Games.”

Sports

Inaugural student competition to reach finale in May

Agnes Winarti, The Jakarta Post, Jakarta | Fri, 04/23/2010 11:48 AM | Sports

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Hailed as a breakthrough in promoting youth soccer competitions, the inaugural season of the Indonesian Education League, initiated by the Sports Ministry, National Education Ministry and the Indonesian Soccer Association (PSSI) last year, is about to reach its finale round in May.

At the league, locally known as the LPI or Liga Pendikan Indonesia, around 50,000 student-soccer players of 3,850 schools from 283 regencies and municipalities nationwide are participating, which kicked off last November in search of young soccer talent.

“We are about to start the zone round on April 24, which will be hosted in eight cities: Medan, Palembang, Jakarta, Semarang, Balikpapan, Makasar, West Papua and Yogyakarta,” LPI head of promotion Herman Ago said Thursday.

“The next season of the League will start in October,” Herman added.

He was speaking on the sidelines of  telecommunications company PT Telkomsel launch of sponsorship cooperation with the Media Nusantara Citra (MNC) Group that will broadcast South Africa’s World Cup on their two television stations, RCTI and Global TV.

A total of 99 teams of junior high school, senior high school and university levels that had won the provincial round will participate in the zone qualification round.

The semifinal and final rounds from May 2-8, where the champions of the eight zones will compete against each other, will be held in Yogyakarta’s Mandala Krida Sports Stadium.

“As this is only our first year, our modest goal is to generate awareness among the students of junior and senior high schools as well as universities on the existence of this League. So far, the results have been great as many schools have expressed their enthusiasm to enter the second season,” said Under-16s coach Yeyen Tumena, who is also involved in the LPI organizing committee.

“With the existence of this year-long league, we want to create soccer talent with people who are used to the tight schedule of competitions and who do not abandon their education. We invite schools to be proactive in the league,” said Yeyen.

By the end of the league season every year, some 30 best U-16 talents selected for the league will be provided with scholarships to train and have their formal education at the Ragunan

Sports School in South Jakarta. They are projected to join the national student squad and even the national team.

“Through sponsors, we will fully cover the expenses of their training and education and also their nutrition,” said Yeyen.

Business

Gas shortage will continue until 2015, PGN says

Alfian, The Jakarta Post, Jakarta | Fri, 04/23/2010 11:05 AM | Business

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The gas shortage will continue at least until 2015 although there will be additional supply resulting from the operation of three liquefied natural gas (LNG) terminals in late 2011, state gas distributor PT Perusahaan Gas Negara (PGN) says.

“The gas deficit will reach 385 billion British thermal unit per day [BBTUD] this year and will continue to increase until reaching 713 BBTUD in 2015,” PGN’s president director Hendi Prio Santoso told lawmakers on Thursday.

According to Hendi, PGN’s gas demand in 2010 reaches 1,206 BBTUD, while gas supply amounted to only about  821 BBTUD

PGN expects to begin receiving gas supply from new LNG receiving facilities in 2011 with a supply volume of 100 BBTUD in the first year, which will be gradually increased until reaching 560 BBTUD by 2015.

Despite the additional supply, the company’s gas balance will still remain in deficit. By 2015, the gas supply is predicted to increase to 1,424 BBTUD, but the demand will have jumped higher to 2,137 BBTUD, Hendi saidPGN has said it has received less gas, because the suppliers have made commitments to export gas. He cited the example of a supply contract from ConocoPhillips

“The contract stipulates the supplied gas is supposed to be at 396 million metric standard cubic feet per day [mmscfd], but the realization is at between 260 to 270 mmscfd or only 65 percent of the commitment,” Hendi said.

He added that a similar thing also happened with a contract signed by PGN and state oil and gas company PT Pertamina. Hendi said Pertamina was supposed to supply 384 mmscfd, but the actual performance on delivery reached 245 mmscfd or 63 percent of committed volume.

“These problems have created real worries and concerns about  our gas supply as we are only getting about 80 percent of the contractual obligations due to us,” Hendi said.

The receiving terminals which will be built  by PGN and Pertamina are expected to begin operation by the end of 2011.  The two companies are preparing three LNG receiving terminals located in East Java, West Java, and North Sumatra with each terminal is designed to have a capacity of between 1.5 and 2 million tons of LNG per annum.

The terminal in East Java will be built and operated solely by Pertamina, while the terminal in North Sumatra will be managed solely by PGN. As for the terminal in West Java, PGN and Pertamina will form a joint venture to manage the project.

“For the terminal in West Java, we have completed the pre qualification selection for pipeline procurement,” Pertamina’s investment planning and risk management director Ferrederick ST Siahaan said. 

PGN earlier said that the company would import LNG from Qatar and the gas will be supplied through the LNG terminals before being distributed to its customers. The company said the terminals could also be used to receive LNG supply from local producers.

Business

Govt to limit subsidized fuel consumption next year

The Jakarta Post, Jakarta | Fri, 04/23/2010 11:12 AM | Business

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The Energy and Mineral Resources Ministry says it is set to introduce a policy to limit subsidized fuel consumption some time next year, which would factor into estimates of government spending in the upcoming 2011 state budget.

Director General for Oil and Gas Evita Legowo told reporters Thursday that there were studies under way to choose between three proposed schemes.

The first scheme is to prohibit all private cars built after the year 2000 from using subsidized fuel. She introduced this idea earlier this week. It has been met by criticism from experts who say that most cars produced after 2000 consume less fuel, making the scheme less effective.

Evita defended the idea, saying the restriction was not only to limit fuel subsidy consumption, but  was mutually beneficial for car owners.

“Cars produced after 2000 require an octane level above 88, while the subsidized fuel octane level is only 88 which could damage cars,” she said.

Another alternative is to prohibit all private cars from using such fuels. “This is the cheapest and easiest way because no additional identification needed,” she said.

The last option, she said, was to use a smart card. The electronic card would be designed to keep track of the amount of subsidized fuel an individual purchases, and would be distributed to motorists and public transportation operators.

Users would be required to show the cards every time they purchased subsidized fuels. The smart card scheme was tested in Bintan regency, Riau Islands, on Nov 15, 2009, with a total of about 12,300 smart cards being distributed.

“It is difficult to implement the smart card option because the cost is very high,” Evita said.

The government expects to spend up to Rp 89.3 trillion on fuel subsidies next year, a 30 percent increase from Rp 68.7 trillion estimated in the 2010 state budget, on higher crude oil prices. The new figure is almost double the  Rp 45 trillion last year.

Evita said the ministry would soon make a decision as to which scheme would be adopted and would further consult with members of the House of Representatives for political support. (not)

Business

BNI may sell 13 percent stake in rights offer

The Jakarta Post, Jakarta | Fri, 04/23/2010 10:17 AM | Business

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JAKARTA:  PT Bank Negara Indonesia may sell new shares in a rights offer amounting to 13 percent of its stake, President Director Gatot Suwondo told reporters in Jakarta on Thursday.

The Indonesian government may also sell 3 percent of its stake in Bank Negara, Suwondo said. The share sales are expected in the second half of this year, he said. — JP

Business

BI dismisses fears of excessive risk-taking over reserves policy

Aditya Suharmoko, The Jakarta Post, Jakarta | Fri, 04/23/2010 11:06 AM | Business

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The central bank has dismissed concerns that a planned regulation change on reserve requirements may encourage excessive risk-taking by banks to bolster lending.

“I think this is the right momentum without causing concern on excessive risk-taking,” Bank Indonesia (BI) Deputy Governor Muliaman D. Hadad said Thursday after a seminar on the new regulation, citing bull market conditions.

In a bullish market, businesses are likely to invest more, which means they will borrow more funds for expansion.

He said the regulation might be issued in the second half of this year.

The regulation will link a bank’s reserve requirement to its loan-to-deposit ratio (LDR). Banks with higher LDRs, meaning they channel more loans, can retain lower reserves at BI. Such reserves do not yield any financial gain.

BI expects the regulation will push banks to lend more to the real sector rather than making profits by putting funds into BI certificates, which yield about 6 percent.

BI implemented a similar regulation in the period 2005 to 2008, said Halim Alamsyah, director of banking research and regulation at BI.

During the period banks with LDR lower than 90 percent had to hold more reserves at BI depending on their LDR. Banks with LDRs of 90 percent and above only had to hold 5 percent of deposits with BI.

Muliaman refused to comment on the new LDR figures that would be set in the regulation. “It can be a single figure, or a range,” he said.

The change in the regulation is intended to help absorb excess liquidity in the market, said Halim.

He said it would take eight years to nine years to absorb existing liquidity in the market, assuming economic growth of between 5 percent and 6 percent.

“Now we have about US$1 million to $1.5 million [of funds] entering the market weekly,” he said.

Muliaman said the central bank would provide a time span in which banks could adjust to the new regulation. “There will be supervision,” he said.

BI estimates lending will expand between 18 percent and 20 percent this year. Bankers project higher estimates of up to 25 percent.

Krisna Wijaya, a commisioner of Bank Danamon, said the central bank could classify banks based on certain factors to ensure all banks started from the same level playing field in complying with the new regulation.

Ryan Kiryanto, an economist at Bank Negara Indonesia, said banks should channel loans to various sectors to avoid shocks. “Putting funds in one basket could cause a shock if there was an explosion,” he said.

Ryan said banks this year would still channel loans mainly to the trade, restaurant and hotel sector, in addition to infrastructure projects, in line with the government’s objective to prioritize the latter.

Industry Minister MS Hidayat expects banks can provide incentives such as lower lending rates to the agribusiness industry, the telecoms industry and other industries outside Java island, which are promoted by the government.

Businesses have often complained banks impose high lending rates, raising borrowing costs and making firms unable to expand.

 

Business

Analysis: Micro-management, the BI way?

Helmi Arman, Jakarta | Fri, 04/23/2010 11:19 AM | Business

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In the banking sector, there appears to be a growing trend of regulatory and interventionist-style policies. At some point in time, this could prove to be counterproductive.

What’s wrong with the banking sector today? In the eyes of some people: A lot.

There are a number of indicators out there which are often used to justify anomalies and flaws of the banking sector in this country today.

Unfortunately, not all of them are used appropriately and within the right context.

One example is the so-called lending rate “anomaly”. It goes like this: Bank Indonesia (BI) has cut its policy rate by three percentage points from its peak in November 2008, meanwhile bank lending rates have only come down by 1.6 percentage points, which is a big difference.

The spotlight becomes even more glaring when data is put forth showing that some banks, during the crisis year of 2009, have actually experienced a rise in their NIM or net interest margin — which is the difference between interest income and interest expense relative to the size of interest earning assets.

Those facts have been used to draw many populist conclusions in the press: Firstly banks haven’t been pro-growth. And secondly banks have been charging higher margins while the rest of the country faces an economic downturn.

Indeed whereas NIMs naturally reflect the pricing policies of a bank — which incorporate the various risks and costs inherent with giving out a loan — they are also often (mis)used in the context of indicating usury and greed.

It is often overlooked that for some banks, while NIM has risen, so have bad debt provisions related to crisis-induced defaults. Rising NIM does not necessarily translate into rising net profit.

In 2009, for example, not all banks which saw rising NIMs also experienced higher net profit. If we delve through the income statements of publicly listed banks, for example, one bank which had a rising NIM even registered negative profit (or a net loss) for the year.

Unfortunately facts such as this have managed to slip the minds of many people, perhaps including those at the central bank. In February 2010, for example, Bank Indonesia announced it was considering limitations on net interest margins.

In this regard policymakers appear to be giving too much weight to loan pricing. Stubbornly high lending rates have been blamed as a culprit for the declining rate of loans growth during the crisis period. Whereas actually for certain types of loans such as small-sized and mass market loans, demand tends to be more inelastic towards the interest rate charged.

A one percentage point cut in interest rate on a small loan only translates to a petty difference in the monthly, weekly or even daily installments for the debtor. Thus it may not lead to any surge in loan demand at all — especially during economic downturns such as in 2009.

Perhaps the downward rigidity of lending rates back in 2009 may have been a symptom of credit rationing or increased risk aversion. In that case, if policymakers had wanted to kick start lending, forcefully suppressing NIMs or lending rates would never have done the job. The problem could have even been exacerbated if the risk-reward structure associated with loan pricing becomes altered as a result.

Anyway, it’s a good thing that the plans to restrict NIMs have not been realized so far. However it seems to be that policymakers have another no less controversial plan in mind, which involves requiring banks to set a certain ratio of loans to deposits (LDRs).

Recently a senior BI official was quoted in the media indicating that the ideal LDR for banks is in the region of 75 percent – 80 percent. The conventional wisdom behind this is that a too low LDR is unfavorable for economic growth, while a too high LDR does not concur with the principles of prudence.

Again this is a case of putting too much weight on a single indicator.

Actually, it may well be okay for a bank to have a high LDR, in the presence of alternative medium or long-term funding lines at hand; e.g. bonds outstanding in the capital market or funding commitments from highly-rated financial institutions. We must also consider the LFR or loan to funding ratio, which takes this into account.

It appears that policymakers are aiming to achieve too many goals, although they understand that the number of available tools at hand is limited. Eventually it will be realized that prescribing too many medications can lead to many complications.

For example the agreement of 14 banks late last year to cap deposit rates at seven percent — which was facilitated by BI — is now apparently having the side effect of pushing third party liabilities toward shorter tenor deposits (due to a lack of incentive for customers to place longer term).

Meanwhile at the same time, BI is trying to lengthen the tenor of bank liquidity placements by cutting down on issuances of 1-month central bank certificates. These policies put together act to make bank liquidity management a more tricky business.

Eventually if regulators go ahead with setting-up a regulatory LDR, more complications could be forthcoming. A bank that is above the threshold will be required to bring its LDR down, but cannot easily do so because funding options are constrained by the deposit rate cap —which means the easiest option is to  cut down on lending.

In the first few months of this year, we’ve finally seen commercial bank loans growth accelerating and gaining traction. Probably the best thing to do for policymakers is to avoid micro-managing the market and let it function properly.

Micro hydro technology overcomes water crisis

Slamet Susanto, The Jakarta Post, Gunung Kidul | Fri, 04/23/2010 9:21 AM | Feature A | A | A |

Close inspection: Two men inspect the pipes belonging to the Bribin II project located 104 meters underground in Bantul, Yogyakarta. JP/Slamet Susanto

Tens of thousands of Gunungkidul people’s dreams of freedom from dry-season water shortages are coming true, as the Bribin II project is now capable of lifting water from an underground river to the ground surface by means of micro hydro technology.

Eighty liters of water per second can now be brought up to the surface from an underground source, which is expected to meet the clean water demand of more than 75,000 people in part of this regency.For decades, the clean water crisis — particularly in the dry season — has affected 120,000 residents of Gunungkidul, Yogyakarta.  Locals have had to buy water or seek water springs some kilometers away, often walking for hours.

For a tank of 5,000 liters of water, they had to pay up to Rp 125,000 (US$13.87) to Rp 250,000. Every dry season, each family spent Rp 700,000 to Rp 2 million on average on water.

“We’ve sold everything we have to purchase water and survive,” said Lasinem, 65, a resident of Semanu, Gunungkidul. With the Bribin II project, Lasinem hoped piping installations would soon be built to distribute water at an affordable price for residents.

“The water doesn’t reach our homes yet, but has reached our village during tests,” added Lasinem, whose house is located 2 kilometers from the project. The government of Indonesia funded Rp 35 billion of the project while Germany contributed ¤3.2 million.

The parties engaged in the project included Karlsruhe Institute of Technology, Germany, Gadjah Mada University (UGM), Yogyakarta, the Indonesian Islamic University (UII), Yogyakarta, Bandung Institute of Technology (ITB), and Sebelas Maret State University (UNS), Surakarta.

To raise water from the underground river, holes were drilled 104 meters deep with a diameter of 2.50 meters. Thereafter, an underground dam was built, as well as pipes for the flow of water to the ground level.

“Water management in Bribin is the first of the kind in the world, though in the beginning it frustrated us,” said Karlsruhe Institute of Technology’s professor, Franz Nestmann, who worked on the project.

Nestmann presented his plan for the area of Gunungkidul to Yogyakarta’s Sultan Hamengkubuwono X in 1998.

Drilling started in 2004, now and again causing frustration as the drills used were damaged on several occasions by rocks.

“It was frustrating but we kept trying. We are no longer under stress and Gunungkidul residents are now happy,” said Nestmann at the inauguration of Bribin II in early March 2010.

The Bribin II project was also delayed for over two years due to the May 2006 earthquake. The disaster that killed about 5,700 people and destroyed over 200,000 houses made some of the pit walls cave in and cover the cavity. Using dynamites, the wall ruins were finally removed and cleared.

In early 2010, after different tests, the Bribin II project was declared successful in March and its management was transferred to the Center of Serayu-Opak River zone.

Public Works Minister Djoko Kirmanto hoped Bribin II would function not only as a water supply but also a natural laboratory where experts could conduct research. “Results of their research are expected to bring about bright ideas to promote the welfare of people living in karst [irregular limestone region with sinkholes, underground streams, and caverns] regions, so far associated with dryness and poverty,” said Djoko Kirmanto.

The project aims to overcome water shortage problems faced by people living in karst regions. He said Indonesia at present had 15.4 million hectares of karst zones inhabited by millions experiencing the same difficulties accessing drinking water.

In terms of operational cost, mircro hydro technology is far more economical because it uses no fuel. The water produced is expected to be distributed at a reasonable price without adding any financial burdens local people.

In 1984, Bribin I actually managed to raise water to the surface, but the process was expensive because the diesel oil generators used consumed 200 liters per hour.

Bambang Hargono, the head of the Serayu-Opak River Zone Center, stated his center would only be responsible for the management of equipment and the lifting of water to the ground level. “Water distribution to village homes and its operational cost are handled by the Regional Drinking Water Company [PDAM],” he said.

Exemptions in information law may undermine its use: Experts

Dicky Christanto, The Jakarta Post, Jakarta | Fri, 04/23/2010 9:54 AM | National A | A | A |

Experts have argued that certain exemptions contained within the new freedom of information law, particularly those on state defense and strategies, will hinder the monitoring of the Indonesian Military’s accountability, which is one of the main purposes of the law.

The freedom of information law will be enacted next week, two years after the House of Representatives passed it.

“We will monitor the implementation of the law. We must avoid any attempt to abuse the law by any party,” Information Commission Chief Ahmad Alamsyah Saragih told The Jakarta Post on Thursday.The new commission is tasked with presiding over information sharing disputes between state institutions and the public.

He said he expected all parties to read the Freedom of Information Law thoroughly to comprehend what kind of state defense information could be made available to the public.

“Later on, we will act as a panel of judges to tackle disputes that may occur as a result of the implementation of this law,” he said.

Legislator Tubagus Hasanudin of the House’s Commission I overseeing defense and intelligence said it was necessary for representatives from state institutions, NGOs and all related parties to sit down together and attempt to understand what kind of state defense information could be shared with the public.

“Thus we will have the same perception on many things on this particular subject, and therefore will avoid many potential misinterpretations,” he said.

The law forbids the disclosure of any information on military strategy, intelligence, personnel composition and weaponry allocations and estimations on military capabilities.

However, the same law requires state institutions to uphold transparency for policies, cooperation with third parties and other information as long as the publication of that information would not  negatively effect the state.

Military spokesman Rear Marshall Sagom Tamboen said the military had no complaints about the information law, and added that the military was more than ready to discuss the possibility of giving information regarding state defense to the public.

“If the public requires us to reveal information regarding the state defense then so be it. But of course we need to discuss a set of limitations because we can not just open up all information. No country has ever done such a thing,” he said.

 

Exemptions for defense-related information

Information and documents on strategy, intelligence, operations, tactics and techniques related to defense and the state security system ranging from planning, implementation and finalization or evaluation in relation to threats from inside or outside of the country.

Numbers, compositions, disposition and dislocation of power and capacity of the defense and state security systems and its development planning.

Drawings and data revealing locations and conditions of military bases and installations.

Data on estimations of military and defense capacities of other countries limited to all acts or indications that the countries pose a threat to the country’s sovereignty or data relating to military cooperation with foreign countries that has been agreed by the parties to be confidential.

State code systems and state intelligence systems.

National

Activists point finger at judge recruiting system

Arghea Desafti Hapsari, The Jakarta Post, Jakarta | Fri, 04/23/2010 9:59 AM | National

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Petitioners of a judicial review of the 1965 Blasphemy Law demanded Thursday that legislators review the recruitment process for Constitutional justices over allegations of partiality in a recent ruling by the court to uphold the controversial law.

Representatives from the Setara Institute and Elsam, both of which were plaintiffs in the case, and a team of lawyers met with several members of the Indonesian Democratic Party of Struggle (PDI-P) faction at the House of Representatives on Thursday.

Among their demands was for the faction to seek a mechanism to ensure the appointment of more “credible” Constitutional justices.

“The ruling [on the Blasphemy Law] shows that the justices are not credible,” one of the lawyers for the plaintiffs, M. Choirul Anam, said.

The court’s ruling, issued Monday with only one dissenting opinion, has since been criticized as a setback to democracy.

Petitioners comprising human rights groups and high-profile personalities have also said the justices distorted the opinions of several experts heard during the review.

Anam said all justices must be free of conflicts of interest when dealing with a case.

“Because the Constitutional justices were formerly legislators, whose jobs concerned formulating and deliberating laws, there will be conflicts of interest when they have to decide on contested laws,” he added.

The Constitutional Court has nine justices. Candidates’ names for the positions are submitted by the Supreme Court, the House and the President.

Gayus Lumbuun, a PDI-P lawmaker, said that he would discuss the plaintiffs’ demands in a faction meeting.

“They requested the House choose people well-versed on issues about religions and human rights and aware of the fact that the [amended] Constitution is more focused on human rights,” he told The Jakarta Post.

The plaintiffs also urged the faction to start an examination of the court ruling.

“We believe that the ruling legitimizes discrimination against religious minorities. The result of the examination can be used to state whether the law is in fact constitutional or not,” Anam said.

 

National

Prison term for former governor extended

Arghea Desafti Hapsari, The Jakarta Post, Jakarta | Fri, 04/23/2010 10:06 AM | National

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The Supreme Court has extended by two years the one-year sentence against former South Sumatra governor Syahrial Oesman, who was convicted in a bribery case involving the conversion of 600 hectares of protected forest.

“The court granted an appeal filed by prosecutors from the Corruption Eradication Commission [KPK],” court official David MT Simanjuntak said Thursday.

The decision was made on Tuesday. Syahrial has been held since May last year.

The Corruption Court in October 2009 found Syahrial guilty of approving the disbursement of Rp 5 billion  (US$555,000) to bribe legislators at the House of Representatives’ forestry and agriculture commission to fast-track a decision to turn a forest in the province into a port and business area.  

Syahrial’s administration had planned the construction of Tanjung Api Api Port and a supporting business area.He was sentenced to one year in prison and fined Rp 100 million. Defaulting on the fine would add another six months to his sentence.

A high court upheld the ruling in January.

On Thursday, the Supreme Court also ordered Syahrial to pay the fine. However, it reduced the default term to four months.

The case has implicated several former legislators including Al Amien Nasution from the United Development Party (PPP), Sarjan Taher from President Susilo Bambang Yudhoyono’s Democratic Party and the head of House Commission IV Yusuf Emir Faishal from the National Awakening Party (PKB). All of them have been sentenced.

The KPK has also named three other legislators suspects in the case: Azwar Chesputra and Fachri Andi Leluasa from the Golkar Party and Hilman Indra from the Crescent Star Party (PBB).

The Supreme Court on Thursday also announced that it had extended the sentence of former Bank Century director Hermanus Hasan Muslim to six years in prison.

“The court turned down an appeal filed by [Hermanus] and granted the one filed by prosecutors,” Court public relations officer Andri Tristianto said.

Hermanus will also have to pay Rp 50 billion in fines or serve another six months in prison.

The Central Jakarta District Court found Hermanus guilty of embezzling Rp 1.6 trillion of bank customers’ funds. He was initially sentenced to three years in prison and Rp 50 billion in fines.  

The same court slapped another three years on Bank Century convict Hermanus Muslim.

National

Trial ‘best option’ for Bibit and Chandra

Bagus BT Saragih, The Jakarta Post, Jakarta | Fri, 04/23/2010 9:59 AM | National

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Todung Mulya Lubis, a member of the presidential fact-finding team that investigated the alleged framing of two Corruption Eradication Commission (KPK) deputies, said Thursday it was best that the pair stand trial to settle the case.

Todung was responding to the South Jakarta District Court order for the Attorney General‘s Office (AGO) to continue its indictment against KPK deputies Bibit Samad Rianto and Chandra M. Hamzah. The court also ordered a trial for both.

The ruling was in favor of plaintiff businessman Anggodo Widjojo, the brother of graft fugitive Anggoro Widjojo.

Anggodo had allegedly plotted to frame Bibit and Chandra, and subsequently filed a pre-trial lawsuit against the AGO’s decision to drop the prosecution of the pair.

The AGO had suspended its prosecution following recommendations made by the fact-finding team and the President himself last year, amid mounting public pressure to release Bibit and Chandra.

The alleged plot against them was widely regarded as an attempt to weaken the KPK.

“[It’s better] to bring Bibit and Chandra to court to dismiss developing controversy among the public and clear up the impression that they’re afraid to appear in court,” Todung said.

“The AGO can perhaps stop its prosecution for the public’s sake, but this would make AGO seem like an unreliable institution. [Whereas] the court could serve as a forum to prove that all the previous investigations were biased and baseless,” he said.

Todung said another option was that the President used his abolition right, but added that this would be unlikely because of the protracted process.

Junior Attorney General for Special Crimes Marwan Effendy said the AGO had submitted an appeal to the South Jakarta Distric Court over its pre-trial verdict (to continue with the trial), saying it was “inappropriate” and that the judge had failed to understand the circumstances under which the AGO had issued the letter to cease the indictment.

He said the letter was issued “for the sake of the national interest”.

“It was situational. We had to do it quickly ... It was the best option,” Marwan said.

He also questioned Anggodo’s move, saying he had no legal grounds to file a pre-trial lawsuit against the AGO.

The Judicial Mafia Taskforce, which was set up by President Susilo Bambang Yudhoyono in January, as part of its follow-up to recommendations made by the fact-finding team, also said earlier this week it had reported the judge handling Anggodo’s pre-trial lawsuit, Nugroho Setiaji, to the Judicial Commission.

Taskforce member Mas Achmad Santosa said it was strange that the court had accepted Anggodo’s request.

Marwan said since the AGO had filed an appeal to challenge the court verdict and consequently Bibit’s and Chandra’s status as suspects would be postponed, pending the decision.

Separately, KPK spokesman Johan Budi said the KPK was prepared for a “worst-case scenario”.

“We have prepared ourselves to have two leaders left. The KPK believes efforts to eradicate corruption will not stop,” Johan said. (rdf/ipa)

National

17 Bangladesh nationals deported from Batam

The Jakarta Post, Batam | Fri, 04/23/2010 9:59 AM | National

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BATAM: The Batam Immigration Agency in Riau Islands deported 17 Bangladeshis on Thursday citing errors with their visas.

The head of the agency’s monitoring division, Patton Kisinger Siregar, said the foreigners were being held at Sekupang Detention Center during questioning on Wednesday.

The 17 people were transferred to the immigration office by Riau Islands Police, which arrested them at nearby Putri Island on Tuesday night.

The Bangladeshis, all males, held tourist visas issued by Indonesian Embassy in Bangladesh.

However, according to a 2001 Foreign Ministry ruling, Bang-ladesh is among the 15 countries classified as “prone”.

Bangladeshis applying for Indonesian visas must also secure the approval of the Foreign Ministry’s Immigration Directorate General in Jakarta.

Paperwork proved that the visas they held were authentic but wrongly issued, Siregar was quoted as saying by news portal kompas.com.

A police dossier says that the men claimed they won a holiday to Indonesia from Ibrahim Textile, their employer in Bangladesh. — JP

National

Govt mulls annulling cyber crimes bill

The Jakarta Post, Jakarta | Fri, 04/23/2010 10:07 AM | National

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JAKARTA: The government is considering annulling the information technology crime bill if it sparks “massive rejection” by the public.

Communications and Information Technology Ministry spokesman Gatot Dewa Broto said Thursday the government could include needed articles on cyber crimes in a possible revision of the 2008 Information and Electronic Transaction Law.

He said, however, that the government was in the process of finalizing the bill, and that annulling it and addressing cyber crime issues in the revised law would be the “final option”.

The bill was included in the House of Representatives 2010-2014 list of national legislation programs. — JP