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Political Issues Economic Issues Socio-Cultural Issues Environment Issues Regional/International Issues Bi -Weekly Bulletin Issue 5 March 1, 2010 Indonesia News & Views www.indonesian-embassy.fi with its promise of an expanding workforce, rising savings and purchasing power, more established government institutions that have weathered the vagaries of a boisterous democracy, a dynamic and large entrepreneurial middle class .... continue to page 5 Top quotes inside this issue: “Indonesia military (TNI) contingent for the UN peacekeeping mission in Congo (Monuc) successfully completed the construction of helicopter landing sites (helipad) type MI- 26 at Dungu, Congo.” (page 1) In 2009 the number of companies that was making or have made an investment in the region was recorded at 10 out of hundreds already expressing their interest to invest in the region.”(page 2) “Interest of foreign investors to invest in Indonesian capital market is still considered high enough.”(page 3) “The economy made a solid recovery from late last year and is projected to continue into 2011.”(page5 ) “ 2013 is the right moment to declare the East Asia and Pacific Community in conjunction with Indonesia´s leadership in ASEAN.”(page 16) The Rise of A New Economy from the East Indonesia has weathered the 2008 financial crash surprisingly better than most other countries. The economy made a solid recovery from late last year and is projected to continue into 2011. There is an air of expectation about Indonesia’s future prospects both within the country and even more so abroad. The new century will see Indonesia emerge as a rising economic powerhouse from the East because of its structural advantages. Some of the major ones are, for example, a relatively large and young population SOUTH SULAWESI South Sulawesi province is famous for its tremendous scenery and the quality and talent of its silk and silverwork industries. The province has very long history of pre-historical sites, kingdoms and experienced battled against colonial. Spanish and Portuguese galleons, followed by British and Dutch traders, sailed on the Celebes Sea (Sulawesi Sea) in search for spices, escorted by their Men of War to protect them from the daring raids of the Bugis and Makassar pirates. source: www.my-indonesia.info Kapoposan Sea, S. Sulawesi Tana Toraja, S. Sulawesi
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Page 1: Indonesia News & Views...National Atomic Energy Agency (Batan), said Wednesday (17/2/2010) that Jakarta had been given an endorsement last year by the International Atomic Energy Agency

Political Issues Economic Issues Socio-Cultural Issues

Environment Issues Regional/International Issues

Bi -Weekly Bulletin Issue 5

March 1, 2010

Indonesia News & Views www.indonesian-embassy.fi

with its promise of an expanding workforce, rising savings and purchasing power, more established government institutions that have weathered the vagaries of a boisterous democracy, a dynamic and large entrepreneurial middle class .... continue to page 5

Top quotes inside this issue: ♦ “Indonesia military (TNI)

con t ingent for the UN peacekeeping mission in Congo (Monuc) successfully completed the construction of helicopter landing sites (helipad) type MI-26 at Dungu, Congo.” (page 1)

♦ In 2009 the number of

companies that was making or have made an investment in the region was recorded at 10 out of hundreds already expressing their interest to invest in the region.”(page 2)

♦ “Interest of foreign investors to

invest in Indonesian capital market is still considered high enough.”(page 3)

♦ “The economy made a solid

recovery from late last year and is projected to continue into 2011.”(page5 )

♦ “ 2013 is the right moment to

declare the East Asia and Pacific Community in conjunction with I ndones ia ´s leadersh ip i n ASEAN.”(page 16) The Rise of A New Economy from the East

Indonesia has weathered the 2008 financial crash surprisingly better than most other countries. The economy made a solid recovery from late last year and is projected to continue into 2011. There is an air of expectation about Indonesia’s future prospects

both within the country and even more so abroad.

The new century will see Indonesia emerge as a rising economic powerhouse from the East because of its structural advantages. Some of the major ones are, for example, a relatively large and young population

SOUTH SULAWESI South Sulawesi province is famous for its tremendous scenery and the quality and talent of its silk and silverwork industries. The province has very long history of pre-historical sites, kingdoms and experienced battled against colonial. Spanish and Portuguese galleons, followed by British and Dutch traders, sailed on the Celebes Sea (Sulawesi Sea) in search for spices, escorted by their Men of War to protect them from the daring raids of the Bugis and Makassar pirates. source: www.my-indonesia.info

Kapoposan Sea, S. Sulawesi Tana Toraja, S. Sulawesi

Page 2: Indonesia News & Views...National Atomic Energy Agency (Batan), said Wednesday (17/2/2010) that Jakarta had been given an endorsement last year by the International Atomic Energy Agency

Useful links of Indonesia: Government www.indonesia.go.id Department of Foreign Affairs www.deplu.go.id Ministry of Cultural and Tourism www.budpar.go.id , www.my-indonesia.info National Agency for Export Development www.nafed.go.id Investment Coordinating Board www.bkpm.go.id

RELATED EVENTS TO INDONESIA

>>> Jakarta, 11—14 March 2010 IFFINA 2010 - International Furniture & Craft Fair Indonesia JIExpo Kemayoran, Jakarta, Indonesia. More information, please visit www.iffina-indonesia.com

Mo Tue We Thu Fri Sat Sun

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March 2010

Issued and published by:: Information, Socio - Cultural Affairs Embassy of the Republic of Indonesia Kuusisaarentie 3, 00340 Helsinki FINLAND

Telp. +358 9 477 0370 Fax +358 9 458 2882 [email protected] [email protected] www.indonesian-embassy.fi

designed by Ayu Abusamah, Embassy of Indonesia

Location: Komodo Island

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Bi – Weekly Bulletin, Issue 5, March 1, 2010

Contents

DOMESTIC ISSUES Political Issues TNI Built Helipad for the UN Peace Mission in Congo …………………………………………….. 1 ‘SBY still reluctant’ on Nuclear Plans Despite UN approval …………………………………………. 1 Economic Issues Five Investors Eager to Develop Tourist Hub in Lombok Island ……………………………………… 2 West Java Projects An Investment of Rp75 Trillion ………………………………………………… 2 Investment in South East Sulawesi's Mining Sector Up Significantly ………………………………… 2 Foreign Investors Still Interested in Indonesia Stock Market …………………………………………... 3 Indonesia Targets Biorefinery Center in ASEAN Region …………………………………………… 4 Indonesia Aims to be World's Breadbasket …………………………….…………………………… 4 The Rise of A New Economy from the East (By Stefan S. Handoyo) ………………………………… 5 Socio-Cultural Issues Indonesia Survivors Lend a Helping Hand in Haiti …………………………………………………. 7 Obama’s Visit an Opportunity to Open Doors in US for Indonesian Culture ………………………….. 8 Indonesia Told to Push Australia on Boat People Solution …………………………………………. 9 Indonesia by province: South Sulawesi …..…..……………………………………………………… 10 ENVIRONMENT ISSUES President Opens UNEP Ministerial-level Meeting ……………………………………………………... 12 Opportunity for Protecting Indonesia’s Biodiversity ………………………………………………… 13 President SBY Gets Award for Ocean Protection ……………………………………………………… 14 Waiting on a Promise To Combat Emissions ……………………………………………………….. 14 REGIONAL/INTERNATIONAL ISSUES Indonesia Has Signed the UN Convention Banning Cluster Bombs ……………………………….. 15 Indonesia Will Establish the East Asia and Pacific Community ……………………………………. 16

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www.my-indonesia.info

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fchi TNI Built Helipad for the UN Peace Mission in Congo Indonesia military (TNI) contingent for the UN peacekeeping mission in Congo (Monuc) successfully completed the construction of helicopter landing sites (helipad) type MI-26 at Dungu, Congo, said XX-G/Monuc Garuda Contingent Commander Lt. Col. Czi Arnold AP in Ritiauw to ANTARA in Jakarta, Thursday (18/2/2010). Arnold said the UN's construction helipad was successfully completed in predetermined schedule. "Helipad size 50x50 square meters in diameter with a thickness of 30 cm was built near the Dungu Airport Congo, according to the command of Monuc Headquarters/UN in Kinsasa, Congo" he said. The UN's helipad is used to transport heavy equipment and logistics to support the peace mission in Dungu, Congo, said Arnold. The highest ranking of the UN peacekeeping mission in Congo, Lieutenant General Babacar Gaye thanked Indonesian contingent for the successfully completing the construction of helipad. Besides of, Babacar hopes the XX-G/Monuc Garuda Contingent in the Democratic Republic of Congo that share borders with Uganda, can continue to help the peace mission by building infrastructure in Dungu, Congo. Besides building helipad and road-maintenance Dungu-Faradje "run way" and the others the UN projects, Garuda Contingent XX-G is also preparing land to build a "log base" for WFP world food program. Building expansion and accommodation facilities for WFP are targeted for humanitarian services to the people of Congo are currently being experienced food shortages, he said. (unofficial translation, ANTARA)

‘SBY still reluctant’ on Nuclear Plans Despite UN approval

Indonesia has gained endorsement by the UN nuclear watchdog to develop a nuclear power plant, but President Susilo Bambang Yudhoyono is reluctant to pursue it as it could see his popularity plummet, say experts and lawmakers.

Hudi Hastowo, chairman of the National Atomic Energy Agency (Batan), said Wednesday (17/2/2010) that Jakarta had been given an endorsement last year by the International Atomic Energy Agency (IAEA) to develop nuclear power, but it had not been followed up with a plan of action, despite proposals of cooperation from major nuclear states.

Japan, South Korea, France as well as Iran have offered help to Jakarta develop nuclear power, but the President is yet to approve the plans.

The current powersupply shortage has forced the state-run power firm to impose alternating blackouts in many areas, with foreign investors complaining the country needs to upgrade its power infrastructure before they invest.

Hudi said that Indonesia had established cooperation with the US over nuclear power for peaceful use that would expire in 2030.

“We have also sought cooperation with Russia and South Korea, but that has not been ratified by the President,” he said.

Hudi was speaking at the launch of a report by a nuclear watchdog sponsored by Australia and Japan.

The International Commission for Nuclear Non-proliferation and Disarmament said nuclear disarmament should be pursued by “minimizing” the number of nuclear warheads to no more than 2,000, by 2025, with the goal of “eliminating” them altogether.

Indonesia relies on coal, oil and gas to generate electricity for its population of 240 million. The government has sought to develop four nuclear plants that could support 10 percent of its electricity demands by 2025.

Muhammad Najib, a lawmaker from the National Mandate Party (PAN), said the government should go ahead with nuclear development despite safety concerns from environmentalists.

DOMESTIC ISSUES

Political Issues

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With the IAEA endorsement, he said, “The President should see the nuclear power plant as an opportunity rather than as a challenge that could harm his presidency,” he said.

Beside environmental concerns, observers have said that Jakarta might be reluctant to develop nuclear power through cooperation with other nuclear states because it does not want to trigger geopolitical concerns from other countries.

However Hamzah Thayeb, the Foreign Ministry’s director general for Asia and Pacific affairs, said Indonesia had no particular reservations about whom it would cooperate with.( The Jakarta Post) Five Investors Eager to Develop Tourist Hub in Lombok Island Jakarta - Chairman of the Investment Coordinating Board (BKPM) Gita Wirjawan said at least five investors had reiterated their intention to develop an integrated tourist hub in Lombok island, West Nusa Tenggara province. "We will open the corridor to allow other investors to take part. Several investors have filed applications to us. One of them is Emaar Properties (of Dubai). The others are from other areas (than the Middle East). But we still cannot disclose their identity now. To be sure, they are companies of good caliber," he said here on Thursday (18/2/2010). The BKPM chief said five companies had expressed interest in developing the project. "They all have equal chance. We will not discriminate against them," he said. The West Nusa Tenggara provincial government signed a cooperation agreement with Emaar to develop the project two years ago. But the company has yet to realize its investment proposal until now. As a result, the BKPM and the West Nusa Tenggara provincial government decided to offer the project to other investors. So far, the local government had built a new airport and a road linking the provincial capital Mataram to the airport in support of the project. (ANTARA)

West Java Projects An Investment of Rp75 Trillion Bandung - West Java projected investment in the province to reach Rp75 trillion in 2010. "The target is optimistic, West Java is able to absorb investment of more than Rp50 trillion, or may even reach Rp75 trillion in 2010," West Java Governor H Ahmad Heryawan said after receiving a Regional Champion award in Jakarta Thursday (18/2/2010). He said West Java was ready with a number of favored agri-industrial projects. With an investment target of Rp75 trillion, West Java will contribute 7.5 pct of the national target of Rp1,000 trillion. West Java's success in luring investors made the province to earn appreciations and became partner of the Regional Champions program as an area with the best investment climate. Besides West Java, the six other provinces with a similar appreciation are East Java, West Sumatra, West Nusa Tenggara, East Kalimantan, Riau and Papua. In the meantime, Head of the Investment Coordination Agency (BKPM) Gita Wiryawan said the program would help the province offer a number of projects which are ready as favored projects in the provinces concerned. The appreciation is the result of an evaluation by BKPM and the Ministry of Home Affairs with indicators of investment, economy, investment projects and investment climate.(ANTARA) Investment in South East Sulawesi's Mining Sector Up Significantly Kendari, SE Sulawesi - The governor of Southeast Sulawesi, Nur Alam, said investment in the province`s mining sector had increased significantly. "In 2009 the number of companies that was making or have made an investment in the region was recorded at 10 out of hundreds already expressing their interest to invest in the region," he said here on Friday (19/2/2010). Of the 10 companies already operating are PT Aneka Tambang and Miusorse Group producing ferro-nickel and stainless steel in

Economic Issues

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North Konawe with a planned investment of US$2 billion. He said the FGH Group Indonesia and South Korea meanwhile had signed a memorandum of understanding for gold exploitation in Bombana district with a planned investment of US$200 million. Memorandum of understanding has also been signed by PT Rio Tinto for the development of nickel processing plant in Konawe with a total investment of US$4 billion. PT Billy Indonesia meanwhile has already started constructing a nickel processing plant in South Konawe with a total investment of US$500 million. The governor said PT Starget Group also had already started its activity to build a nickel processing plant in North Konawe with a total investment of US$500 million. PT Bumi Makmur Selaras is also developing a nickel processing plant in North Konawe with a total investment of US$250 million. PT Inco Tbk meanwhile plans to set up a nickel processing plant in Pomalaa in the district of Kolaka with a total investment of US$1 billion. PT Pertambangan Bumi Indonesia meanwhile is investing US$150 million for the development of a nickel processing plant in North Konawe. The governor said the arrival of the investors automatically gave the local people hopes for better welfare. He said he had asked district heads and city mayors to immediately put mining concessions and licenses in order to make the region the national center of mining industries.(ANTARA) Foreign Investors Still Interested in Indonesia Stock Market Jakarta - Interest of foreign investors to invest in Indonesian capital market is still considered high enough. In early February there was time to sell a major stake, however the foreign investors were estimated to remain still in Indonesia. It is only a matter of time for the investor to re-invest in the stock market. "If foreign investors withdraw funds from Indonesia, it would affect the exchange rate of rupiah. In fact, the exchange rate during

February was fairly stable, even more strengthen. I think, the foreign investors funds will be still in Indonesia, "said Chief Economist Danareksa Research Institute Purbaya Yudhi Sadewa, Thursday (18/2/2010) in Jakarta. Purbaya argues, the rupiah exchange rate remains stable not because of intervention by Bank Indonesia (BI). The indicator, among others, is Indonesia's foreign exchange reserves actually increased each month. "If BI interferes the market to defend the exchange rate, it will erode the foreign exchange reserves," he said. In early January 2010, the rupiah traded at Rp 9395 per U.S. dollar. While last Thursday (16/2/2010) the rupiah traded at Rp 9280 per U.S. dollar. As of January 29, 2010 the Indonesian foreign exchange reserves recorded to 69 billion U.S. dollars or to increase about 3 billion U.S. dollars compared to Indonesia's foreign exchange reserves on December 31, 2009 which was only 66 billion U.S. dollars. In line with Purbaya, capital market analysts, Felix Sindhunata, argues, foreign investors did not withdraw cash from Indonesia after transaction for the shares. According to him, foreign investors only stocks off temporarily, to get a stronger clarity about the global economic development. Felix and Purbaya´s statement are strengthened by the data transactions of foreign investors in Indonesia Stock Exchange. During February 1 – 9, foreign investors made transaction with total net sales value of USD 3.1 trillion. This transaction affected by the fear of investors toward the tightening of liquidity in the United States and China as well as the debt crisis in Greece. However, February 10 – 18, foreign investors again purchased the shares for total net purchase Rp 2.65 trillion. The net purchases by foreign investors registered last January was Rp 430 billion.

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Thus, if calculated from the beginning of this year, the value of sales and purchases of foreign investors was almost equal. (unofficial translation, Kompas) Indonesia Targets Biorefinery Center in ASEAN Region As a country that has the largest biomass raw materials in Asia, Indonesia wants to become a biorefinery center in Southeast Asia region. Therefore, Indonesian Institute of Sciences (LIPI) and other related institutions will prepare a strategic plan and operational framework. This was conveyed by Head of LIPI Biotechnology Research Center, Prof. Dr. Bambang Prasetya as representative Indonesia (National Focal Point) at the ASEAN Subcommittee on Biotechnology during the closing meeting of the ASEAN-Korea Symposium and Workshop on Biorefinery Technology, at the Hotel Mercure Ancol, Saturday (20/2). This three-day meeting was attended by 70 participants from 10 countries of Southeast Asia, Japan, South Korea, and Germany. Besides the establishment of networks in ASEAN biorefinery technology, the symposium also agreed on expansion of network relationships with institutions in Korea and Japan. "In the future the expansion will cover Asia-Pacific countries," Bambang added. The establishment of network receives support from Prof. Dr. Giobin Lim, Chairman of the Korean Society for Biotechnology and Bioengineering, and Prof. Dr. Takashi Watanabe, biomass conversion specialist from Kyoto University of Japan. To achieve this establishment of ASEAN Network biorefinery technology, the symposium agreed to set various activities including exchange of information on science and technology research, training and exchange of scientists among members of ASEAN, and share research facilities and to encourage society about innovation of biorefinery. The symposium mentions variety of clean technology solutions to produce alternative

non-oil fuels as well as developing of third-generation bioethanol which use microalga to produce biohidrogen which not release CO emissions. Biomass utilization Indonesia will focus on research activities on the utilization of biomass as a fuel and petrochemical substitutes. "Biomass has a good prospect as environmentally friendly bio-energy and can replace petrochemical-based materials," said Bambang. Therefore, in the next five years this research will target on the commercial stage by integrating sugar and palm oil industry. Bambang, who is also Chairman of the Indonesian Biotechnology Consortium explained, Indonesia prefers to choose biorefinery ethanol technology second-generation by using cellulose waste materials that has great potential. LIPI has initiated this effort in cooperation with the Department of Chemistry, University of Indonesia. Minister of Research and Technology Suharna Surapranata in his speech at the symposium said, Indonesia has abundantly and prospectively variety of renewable energy sources. He emphasized, clean production technologies and concepts without waste or zero waste will be a platform in developing technology in Indonesia. (unofficial translation, Kompas) Indonesia Aims to be World's Breadbasket Following Brazil’s trail, Indonesia is encouraging foreign and local investors to lease huge swathes of fertile countryside and help make the country a major food producer. “Feed Indonesia, then feed the world,” was the recent call from President Susilo Bambang Yudhoyono after the government announced plans to fast-track development of vast agricultural estates in remote areas like Papua and Borneo. Between now and 2030 Indonesia expects to become one of the world’s biggest producers of rice, maize, sugar, coffee, shrimp, meats and

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palm oil, senior agriculture ministry official Hilman Manan said. The world’s fourth most populous country, with 235 million people, Indonesia has been self-sufficient in rice since 2008 and is already the top producer of palm oil. “If everything goes well, Indonesia should be able to be self-sufficient in five years. And then it can start to feed the world,” said Sony Heru Priyanto, an expert at Satya Wacana Christian University. The first area targeted for development is 1.6 million hectares in the southeast of the largely undeveloped province of Papua, around the town of Merauke. The Merauke Integrated Food and Energy Estate will, the government hopes, create thousands of jobs and turn an impoverished and neglected corner of the Indonesian archipelago into a hive of activity. “We chose Merauke because it’s the ideal place for food crop cultivation, such as rice, corn, soybean and sugar cane. Merauke district has 4.5 million hectares of land; 2.5 million hectares are ideal for cultivation,” Manan said. “The area is flat and has a good climate. Its soil is appropriate for those crops. Sumatra is already congested with other plantations, such as palm oil, and Kalimantan is already full of mining areas and many plantation areas also.” He said Merauke’s population of some 175,000 people could rocket to 800,000 if the plan takes off. Foreigners will be able to control a maximum of 49 percent of any investing company, and will be offered incentives like tax breaks and reductions in customs and excise duties. “In order to avoid any forms of monopolies or land grabbing, we’re limiting each company to a maximum of 10,000 hectares of land,” Manan said, stressing that the government was selling land use rights, not the land itself. He said interest had come from Japan, South Korea and the Middle East.

But analysts said the region’s biggest advantage — an expanse of “empty” land — was also the main obstacle: the project will require up to five billion dollars in infrastructure investments, from a new port to roads and runways. And there is opposition from small-scale farmers who say their traditional livelihoods could be threatened by the large-scale commercialization of agriculture. “We reject the concept of the food estate. For us, food estates are another kind of land grabbing scheme. It’s like going back to the era of feudalism,” Indonesian Farmers Union official Kartini Samon said. “The regular farmers’ land will be taken by big companies and the farmers will be left with nothing,” she said. Such worries are well known in other countries with similar schemes, such as Brazil and Madagascar, where there is deep suspicion about food and bio-fuel companies monopolizing agricultural land. There are also fears for the rights of indigenous Papuans, an ethnic-Melanesian minority who have long complained that their traditional lands are being unjustly exploited by outsiders.(Jakarta Globe) The Rise of A New Economy from the East (By Stefan S. Handoyo)

Indonesia has weathered the 2008

financial crash surprisingly better than most other countries. The economy made a solid recovery from late last year and is projected to continue into 2011. There is an air of expectation about Indonesia’s future prospects both within the country and even more so abroad.

The new century will see Indonesia emerge as a rising economic powerhouse from the East because of its structural advantages.

Some of the major ones are, for example, a relatively large and young population with its promise of an expanding workforce, rising savings and purchasing power, more established government

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institutions that have weathered the vagaries of a boisterous democracy, a dynamic and large entrepreneurial middle class, a more vibrant and independent media that is beginning to rediscover its social purpose of enforcing transparency and accountability and an archipelagic country that is rich in natural resources.

The danger, however, is that these structural advantages, combined with our predisposition for believing the future is “predestined” and that we are always blessed with abundant resources, can generate a dangerous level of complacency and inertia.

At this crucial juncture of a great nation in the making, we need to continue raising the quality standard of our governance and implementing the next round of “reformasi”. This must be the first and foremost foundation of future government policies and programs.

A number of factors that are already well-known to many of us contributed to this pleasant surprise.

First, Indonesia was not yet sufficiently integrated into the world financial system for the crisis in the US to have a significant impact on Indonesia’s banking sector.

Second, Indonesia was less export-dependent than its neighbors and was at the early stages in its participation in the regional production networks.

Hence, the collapse in demand for particular goods and services in the West, coupled with the de-stocking of inventory, while impacting negatively on exports and FDI, did not have the same devastating effect on Indonesia as it did on other small export oriented Asian economies.

Third, Indonesia’s large and young domestic market continues to provide a strong base for healthy domestic consumption.

Finally, and perhaps more importantly, the government rapidly lowered its official interest rates by a cumulative 300 bps between December 2008 and August 2009, as well as embarking on a large program (announced at around US$7.2 billion) of fiscal stimulus.

This stimulus program involves a mixture of tax relief and spending on social programs and infrastructure projects.

Despite the improving business environment and Indonesia’s resilience to the

global economic crisis, investors have remained very cautious. This has been exacerbated by the fact the government’s effort to bail out Bank Century have turned ugly, mainly due to the lack of institutional coordination and transparency in its policy implementation.

The mishandling of the Bank Century is expected to implicate a few prominent figures in the government’s economic team that are the barometer of investors’ trust and confidence in Indonesia’s future economic policies.

Nevertheless, the recent Indonesia Economic Quarterly Report of the World Bank indicates the Indonesian banking sector has proved far sturdier than many analysts expected, although new loan approvals have remained constrained. Financial markets also continued to strengthen toward the end of 2009. Furthermore, portfolio investors have returned to Indonesian markets.

With all these “green shoots of recovery” now appearing to be taking root more firmly, the immediate policy question for the Indonesian authorities is whether monetary and fiscal easing should now begin to be wound back in order to maintain macroeconomic stability and hence improve the investment climate.

However, the action of winding back monetary and fiscal easing must be taken cautiously as the global economy has not fully recovered from the “great crash” and there are always possibilities that these “green shoots” might wither before growing further.

The reference to “green shoots” suggests what could go wrong with the economic recovery.

Anyone who likes gardening, with a minimum acquaintance and with nurturing green shoots to healthy and mature plants, knows that green shoots can still die from too much water, too many chemicals either in the form of insecticides or fertilizers, the appearance of worms and insects that eat the green shoots, or over-exposure to the sun.

Too much water obviously suggests the excessive liquidity in the market that has resulted from either the pump priming through the government’s stimulus package, the constant decrease in interest rates engineered by Bank Indonesia to stimulate economic

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activity, or excess liquidity in the banking sector due to credit easing.

There is a risk the recovery may be nipped in the bud by runaway inflation if the government is unable to effectively siphon off the excess liquidity. The same policies that helped us through the crisis could possibly cost us dearly in the years to come as fiscal and monetary stimulus is withdrawn.

Finally, the reference to too much sun — which can also cause green shoots to wither — brings to mind the possible scorching heat of over-regulation.

There is a possibility the government may swing to the other side and suffocate the private sector with too many restrictions and regulations, shifting more toward protectionist measures that explained the backwardness of most of today’s emerging markets during the 1950s all the way to the 1970s. (The Jakarta Post) Indonesia Survivors Lend a Helping Hand in Haiti

Two Indonesians who spent more than a month helping victims in earthquake-ravaged Haiti — many of them their own colleagues — returned home last weekend.

Endang Dwi Satriyani and Yogi Anggoro, from the UN Stabilization Mission in Port-au-Prince, spoke to reporters Wednesday (17/2/2010) about their experiences during and after the magnitude 7 quake on Jan. 12 that killed more than 200,000 people.

Both are trained volunteers for UN peace missions, and notched up valuable experience working in Aceh in the aftermath of the December 2004 tsunami that claimed more than 230,000 lives.

“Dozens of my colleagues are still missing,” Endang said at the press conference held at the Foreign Ministry in Central Jakarta.

“Those who died were taken home by their families.

“I’d spoken to some of them on the morning before the quake,” she added. “Only later I found out they didn’t make it.”

Endang barely survived the quake, having almost been hit by a falling iron bar as

she tried to make her way out of the UN building right after the tremor.

“I was at the office, waiting for a ride home, when the ground began shaking,” she recounted. “I was trembling and I fell to my knees, and suddenly this bar fell in front of me.”

She said she screamed for help in the dark once the shaking had stopped, and heard a reply far away.

“I screamed to my colleague and he reached for me and led me out of the building, crawling through the debris.”

She survived the quake with minor bruises.

Before leaving for Haiti in September 2007, Endang worked for an NGO in Aceh for two-and-a-half years.

She will return to Haiti in March after renewing her contract for another six months.

Yogi, who worked for Save the Children and the American Red Cross in Aceh before going to Haiti in October 2009, said he too would go back there.

In the aftermath of the quake, Endang and Yogi said they helped organize Indonesian assistance entering Haiti, after the relief supplies were off-loaded in the neighboring Dominican Republic.

Indonesia sent 30 tons of aid and an 81-strong team of workers and officials, but they were denied entry by the US military because the local airport was overwhelmed.

“Everybody moved very fast. Planes were landing and taking off again in minutes, but still there wasn’t enough space for everybody’s supplies,” said Endang, licensed to fly single-engine planes.

The post-tsunami disaster management in Aceh has been touted as a model for post-quake efforts in Haiti, where the slow distribution of aid has seen the death toll rise.

In the strife-ravaged Aceh, Indonesia granted virtually unrestricted access to international search and rescue teams, including foreign military units.

“With the surviving UN staff and others, we both helped in the search for victims,” Yogi said. “The situation remains in chaos, even now.”

He added he dealt mostly with logistics in the post-quake period, describing the devastated Port-au-Prince peppered with dead bodies.

Socio-Cultural Issues

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“I’m not traumatized,” Yogi said. “We got used to the same things [in Aceh], and we’re ready to go back.” (The Jakarta Post) Obama’s Visit an Opportunity to Open Doors in US for Indonesian Culture The United States continues to be curious about Indonesia, particularly as the administration of President Barack Obama enters its second year. The recent removal of a statue of young Obama in his boyhood neighborhood of Menteng has made national news in America. Observers in Washington and Jakarta are looking forward to Obama’s visit to Indonesia in March as a chance to reintroduce the archipelago to the US public. In the meantime, some Americans are hard-pressed to satisfy their demand for all things Indonesian. In Washington, if one wants to introduce the curious to Indonesian cuisine, he would find exactly one such restaurant in the metro area, even as Thai and Vietnamese restaurants are commonplace. For the movie fan seeking a glimpse of the islands, it’s difficult to find [anything] beyond the 1983 film “The Year of Living Dangerously,” which showcases a nation of more than four decades ago. Bookstores reliably stock Indonesia travel guides, with a pronounced emphasis on Bali, but little on regions such as Maluku or Sumatra. The only fiction one is likely to find is that of Pramoedya Ananta Toer, who is well-known to American readers of world literature, but whose work so far stands alone. Music enthusiasts are able to hear gamelan in the United States, but Ello or Andra and the Backbone remain unknown, not to mention time-honored favorites like Dewa, Slank or even Rhoma Irama. This minimal, somewhat out-of-date presence of Indonesian culture in the United States is surprising, especially given the increased importance Washington has been placing on its relationship with Jakarta. I say this less to criticize and more to point out an extraordinary, positive opportunity for those

who want to expand Indonesia’s cultural influence as well as to find new markets for the nation’s cultural products. The door to America is wide open. Indonesia is in a position to promote its popular culture and arts to change the American public’s perspective from that of a one-dimensional newspaper story “over there” to a living cultural force that Americans want to interact with here and now. There are plenty of models for Indonesia to emulate in establishing a toehold in America’s multicultural-hungry audience. Japan has long provided America with manga and Pokemon, not to mention sophisticated technology. These cultural exports, among other things, have helped facilitate a broader, deeper relationship. Further back, on the eve of World War II, US ally Britain encouraged the production of Hollywood movies that brought to life stories about British history and experiences. These portrayals generated American empathy and helped to solidify the alliance against the German-led Axis. It is not difficult to find an example of Indonesian culture that has the potential to be quite popular in the United States. Recently, Indonesian newspapers, including this one, have featured stories about the increasing appreciation for batik as an essential element in Indonesia’s cultural legacy to the rest of the world. Fashion designers have been creating new ways to insert traditional batik into today’s lifestyle. This trend shouldn’t stop on Indonesia’s shores, however. It should be exported to the United States and the rest of the world. Ideally, cutting-edge fashion from New York to Paris to Shanghai could incorporate batik accents. In this way, batik would increase awareness of Indonesia and enhance a shared, more mature cultural affinity. By introducing the United States to its popular culture and arts, Indonesia will reap the benefits of gaining a new market for its cultural wares, using them to gain greater global exposure.

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Given the current interest here and elsewhere in borrowing from culturally rich environments, there is every reason to think that Indonesian culture could one day go global. More important than marketplace opportunities are the global influence and soft power that Indonesia is likely to gain by promoting its culture. In his book, “Soft Power: The Means to Success in World Politics,” Harvard political scientist Joseph S. Nye, Jr. defines “soft power” as “the ability to get what you want through attraction rather than coercion or payments. It arises from the attractiveness of a country’s culture, political ideas, and policies.” While the Jakarta-Washington relationship has long been concerned with policy, the time is ripe for Jakarta to focus on the cultural component of soft power. According to Nye, culture is the set of values and practices that create meaning for a society. Culture includes both “high culture such as literature, art and education, which appeals to elites, and popular culture, which focuses on mass entertainment.” The United States has long benefited from the projection of its culture, including hamburgers and Coca-Cola, but especially Hollywood, Harvard, Microsoft and Michael Jordan. “Simply put, in behavioral terms soft power is attractive power,” Nye says. “Soft power resources are the assets that produce attraction.” Global attraction to US culture has made nations more receptive to working with America on more serious matters. Or, in political science terms, “when a country’s culture includes universal values and its policies promote values and interests that others share, it increases the probability of obtaining its desired outcomes because of the relationships of attraction and the duty that it creates.” So it should be for Indonesia. Although they might not rise to the level of universal values, it is not hard to see that having bakso , rambutan and nasi goreng on more menus in the States will spark a greater familiarity with Indonesia and lead to more interest in the values the country promotes.

Much as Bollywood movies have given the American public a means to appreciate India’s rise over the past decades, Indonesia should aim to put its music, movies and art in American homes. This will show the American people outside of Washington both the achievements and the potential of Indonesia. None of this should be taken as an argument to de-emphasize the vitally important work currently being undertaken to assess and strengthen political values and institutions. If anything, those efforts should be re-doubled to ensure that Jakarta can fully grasp the soft power opportunity that appears to be coming its way. Yet there is the possibility of complementing these efforts by promoting Indonesian culture in the United States around the world. Jakarta should envision what a multiyear cultural promotion program would entail and begin to lay the groundwork in the near term for achieving it. The future looks bright, but there’s much to do to prepare for it. Michael Carowitz is a Washington-based lawyer who monitors developments in Indonesia. This article appears in the February issue of Globe Asia.(Jakarta Globe) Indonesia Told to Push Australia on Boat People Solution

Jakarta must use President Susilo Bambang Yudhoyono’s visit to Australia next month to tell Canberra to address the flow of migrants transiting in Indonesia on their way to Australia.

Tri Nuke Pudjiastuti, a researcher with the Indonesian Institute of Sciences (LIPI), said Jakarta had faced a dilemma over whether to send the boat people away or uphold human rights values while risking turning the country into a dumping ground.

“Australia is aware of the fact that Jakarta will heed human rights values, and uses the argument when seeking Indonesia’s support to detain these boat people on our soil,” she said on the sidelines of a seminar on regional diplomacy, co-hosted by the institute and the Konrad Adenauer Stiftung in Bandung.

Thousands of migrants from Afghanistan, Bangladesh, Myanmar and

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elsewhere have been intercepted and held in Indonesia on their way to Australia.

Indonesia currently hosts around 1,300 Afghan migrants alone, while hundreds of ethnic

Rohingya from Myanmar are sheltered in Aceh.

“Australia tends to view the problem as a domestic Indonesian issue, saying they look

forward to what they call ‘an Indonesian solution’,” Nuke said. “The government has to make clear that Australia should also take responsibility.”

Yudhoyono will visit Australia from March 8 to 11, followed by a trip to Papua New Guinea from March 11 to 12.

Nuke said migrant issues could potentially strain bilateral ties as both Jakarta and Canberra have come under domestic pressure to handle the flow of migrants.

“Bilateral ties between Australia and Indonesia will continue to be defined by successful cooperation in handling this problem,” she said.

In 2006, Indonesia and Australia signed the Lombok Treaty, a security cooperation with a highlight on the movement of migrants. But the treaty has not been much invoked in dealing with the current situation.

Human Rights Working Group deputy executive director Choirul Anam said Indonesia should not act as a buffer for Australia by hosting migrants bound for that country.

“Some shelters in Indonesia are established by the government with the support of Australia,” he said.

“Why would the government do that? What kind of arrangement have they really made? How does Indonesia benefit through this arrangement?”

He urged the government to send the would-be migrants to Australia and to stop hosting any more.

LIPI researcher Athiqah Nur Alami said Jakarta had been weak when negotiating with Australia over shared concerns, particularly the issue of boat people.

“We share so many issues with them, but the progress has not been very clear,” she said.

“On the boat people issue, Australia has not yet put strong emphasis on how to

involve the countries of origin or the transiting and destination countries in resolving the issue. They’ve left it mostly to Jakarta to decide, which is very unfortunate.”

Bandung-based Parahyangan University professor Colin Brown, who previously taught Asian studies at Flinders University in South Australia, said the boat people issue was a key one in bilateral ties, but its potential to sour relations was small.

“There are always differences between Indonesia and Australia,” he said. “But we have common concerns with non-traditional security issues and that should actually strengthen our relationship.”

He added Australia was actively engaged in maintaining regional stability in an effort to help stop the flow of migrants to the country.

“Australia is very concerned about regional stability, because its absence would cause migrants flows to Australia,” he said.

“And relations with Indonesia are partly built on that concern.” (The Jakarta Post) Indonesia by province: South Sulawesi

South Sulawesi province is famous for its tremendous scenery and the quality and talent of its silk and silverwork industries. The province has very long history of pre-historical sites, kingdoms and experienced battled against colonial. Spanish and Portuguese galleons, followed by British and Dutch traders, sailed on the Celebes Sea (Sulawesi Sea) in search for spices, escorted by their Men of War to protect them from the daring raids of the Bugis and Makassar pirates. Famed for their seafaring culture, the Bugis are still the driving force behind the world’s last commercial sailing fleet. The seafaring Bugis dominate the southern tip of Sulawesi, but in the rugged and remarkable country further north is Tana Toraja, often referred to the “Land of the Heavenly Kings”. In Takalar, every May 2008 there is a “Galesong Festival” thanksgiving ceremony by throwing offerings into sea and hoping for a prosperous fortune.

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Tourist Office: Jl. Jend. Sudirman No.23, Makassar 90231, Sulawesi Selatan Phone. (0411) 878912, 443355, 872336 Fax. (0411) 872314 E-mail: [email protected] Getting there: There are many daily flights from Jakarta, Bali, Surabaya and Manado. Tourism Events: - There are two different kinds of funeral ceremonies in Tana Toraja. Rambu Tuka is the happy funeral ceremony, whereas Rambu Solo is the sad ceremony usually starts in the afternoon and lasts for 7 days. During the Rambu Solo ceremony, hundreds of buffalos and pigs are slaughtered as sacrifice to ensure the spirits entrance to heaven and accepted by God. - Royal Palace Festival in Gowa lasts for a week and participated by 49 former kingdoms in Indonesia. Places of Interest: Fort Rotterdam Fort Rotterdam, also known as Benteng Makassar, is a historical site of the past greatest Gowa Kingdom. Bissapu Waterfall Bissapu Waterfall at the Bonto Salluang Village, about 5 kms from Bantaeng or 15 minutes drive through an asphalt road with some winding slopes, fresh & cool air with its natural scene. Leang-leang Pre-historical Paintings Leang-leang is pre-historical archaeological caves where paintings of strange traces of human palms and a wild pig, believed to be 5,000 years old, were found there. The road leads from Maros through the cave-riddled limestone hills to the site, about half an hour’s drive from the airport. Paotere Harbor Paotere Harbor is a place to anchor the phinisi, traditional Buginese ship,s that is famous for its sails across from Pacific Ocean to the African coast.

Samalona Island Across the harbor of Makassar is Samalona Island, which has been developed into a pleasant recreational resort. It can be reached by boat in 45 minutes and has simple accommodation. Recreational sports include diving, snorkeling, water skiing and fishing. Best months to visit are from February to October. Tomb of Sultan Hasanuddin Sultan Hasanuddin (1629-1690) was famous for his exceptional bravery in his struggle against colonial encroachment in South Sulawesi. His huge crypt and those of other kings of Gowa are located in a secluded cemetery not far from Sungguminasa, about 8 kms from Makassar. Outside the walls of cemetery; a small fenced-off plot lays the Tomanurung stone on which the kings of Gowa were crowned in pomp and splendor. Not far from the tombs is the oldest mosque in the area, built in 1603. Soppeng Soppeng is one of the former kingdom site as written in the ancient “Lontara” script that has abundance of flying bats. Sengkang Sengkang, about 240 kms to the northeast of Makassar, is the capital city of Wajo Regency and well-known as the center of Bugis silk industry. Visitor can sees how a spinning mill produces thread from silk worms, while weaving can be seen in many private homes along this route. The finest silk is hand loomed by village women that each woman can makes two meters long of silk per month. Visitors are welcome to watch and purchase the Malino Malino is a pleasant and open-air resorts on the slopes of Mount Bawakaraeng which is famous for its “markisa“ passion fruits. The scattered pine woods grow on the height of 1,050 meters above sea level. Bambapuang Bambapuang is a high land and stop point the way to Tana Toraja with beautiful scenery of mountains and rivers.

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Sa’adang River Sa’adang is the largest river in South Sulawesi which is famous for rafting adventure starting from Tana Toraja. Kapoposan Island Kapoposan Island is a great diving site that has an abundant of natural coral reefs and can be reached within few hours by boat from Makassar. Barru Regency Barru Regency is a beautiful offshore located about 134 km from Makassar. Around tens kilometers from Barru Regency is Pannikiang Island is home for thousands of flamingo, Puteangin Island with beautiful coastal beach and Bakki Island coastal is sloping and white sand. Tana Toraja The center of tourism of Tana Toraja region is Rantepao, 328 kms north-east of Makassar. Lying on 700 meters above sea level, Rantepao has cool and pleasant scenery. Entrance to Tana Toraja is marked by a gate built in traditional boat-shaped style. The road passes the spectacular mountains of Kandora and Gandang which according to Toraja mythology, is the first ancestors of celestial beings descended from heaven. “Tongkonan”, a graceful architecture of the family houses, are built on stilts with the roof rearing up at end, representing the prows of the first ship to arrive in the area along with the Torajan ancestors. The houses all lace north, and some say that this is because it was from the north that the ancestors of the Toraja came. The best season to visit is between May and October. Batumonga Batumonga is located about 1,300 meters above sea level and there are 56 menhir stones with 3 meter high. The fascinating view of Rantepao and its surrounding valley can be seen from this site. Losari Beach Losari Beach Sunsets in the Makassar Strait can be viewed from a promenade at Losari Beach, Jalan Penghibur or from Paotere anchorage in the north end of the city where

the Bugis schooners are berthed. Across the harbor is Kayangan Island that can be reached within 15 minutes by ferry. A popular escape from the city, there is entertainment in the evenings and on Sundays. Bantimurung Bantimurung waterfall can be reached about 41 kms from Makassar. A cascade of sparkling water gushes out between rocky cliffs into a stream shaded by tall trees. The indigenous bright ornithoid butterflies that live in this area are considered among the most beautiful butterfly in the world. About 15 meters lower from Bantimurung Waterfall there is a Natural Dreaming Cave with its beauty forms of limestone. Tanaberu Tanaberu in Bulukumba is widely known as a place for making traditional boats, where in the dry dock, we can see a great number of phinisi boat. (source:www.my-indonesia.info) President Opens UNEP Ministerial-level Meeting President Susilo Bambang Yudhoyono opened Wednesday (24/2/2010) the 11th Special Session of the United Nations Environment Program (UNEP)'s Governing Council in Nusa Dua, Bali, a ministerial-level meeting held prior to the upcoming 16th UN Climate Change Conference in Mexico at the end of the year. Taking place from Wednesday to Friday, the GC/GMEF-11 meeting is being attended by about 1,000 delegations, including some 30 ministerial-level officials, from 130 countries. It was preceded by the 11th Global Major Groups and Stakeholders Forum, also held in Nusa Dua, from Feb. 21 to 23. Indonesia Foreign Minister Marty Natalegawa said the GC/GMEF-11 was the first ministerial-level UNEP meeting to be held since the 15th UN Climate Change Conference in Copenhagen.

ENVIRONMENT ISSUES

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"Indonesia believes that this UNEP Governing Council meeting is an opportunity we have to take to informally share our thoughts on the joint efforts to make the meeting in Mexico this year a success," Marty said in his opening speech for the GC/GMEF-11 meeting. He added the meeting was important as 2010 had been enacted as the International Year of Biodiversity. GC/GMEF-11 chairman Oliver Dulic said the ministerial forum would discuss, among other things, international environment governance, the green economy, and biodiversity and ecosystem issues. "[It will discuss] how to better address the increasing environmental challenges as we begin our preparations for the UN Conference on Sustainable Development in Brazil in 2012," Dulic said.(The Jakarta Post) Opportunity for Protecting Indonesia’s Biodiversity As a country with rich biodiversity, the protection of environment and the journey toward sustainable development are sine qua non for Indonesia. The calls for those endeavors should even be stronger with the recent global attention to climate change threats. It is therefore a must for Indonesia to be one of the forefront players in combating the threats, as has been shown recently at the 2009 Copenhagen Summit. It shall be noted that the protection of environment does not only deal with positive protection. It should also be carried out through defensive protection by setting necessary measures against biopiracy. As commonly understood, biopiracy is a biological theft that has played significant part in biodiversity losses. One way to protect biodiversity, or protect against biopiracy, is through the application of “disclosure requirement”. This legal provenance is applied through various mechanisms. Mostly, the provenance is applied through an intellectual property rights’ system, in particular the patent regime.

“Disclosure requirement” in a patent system is a legal provenance that requires a patent applicant to disclose the content of its technological invention or innovation. In a simple way, the applicant must disclose the country of source and/or origin of the invention/innovation in the process of patent granting. Furthermore, in a more comprehensive approach, the applicant must also incorporate the elements of prior-informed consent (PIC) and access and benefit-sharing (ABS) when submitting his or her application to the patent office. By having the three elements — the certificate of source and/or origin, PIC and ABS — it is hoped that biopiracy can be minimized. Furthermore, the element of ABS is also of great benefit since the commercial value of patented products or processes will be shared with the country of source and/or origin of the biodiversity. A number of mega diverse countries as well as emerging economies, such as India, Brazil, China and South Africa, have applied the “disclosure requirement” legal provenance in their patent system. Furthermore, they are also the countries who have been leading the fight to amend the provisions of WTO-TRIPS (Trade-Related aspects of Intellectual Property Rights) Agreement to incorporate the element of “disclosure requirement”. Unfortunately, this fight is still being challenged particularly by developed countries such as the United States and Japan. It is understandable because many cases of biopiracy involve multinational corporations from those countries. As for Indonesia, the challenge remains at home where “disclosure requirement” is not yet applied in its patent law. Perhaps, one of the reasons is because the latest amendment of Indonesia’s patent law was done in 2001, whereas the “disclosure requirement” has only reached its momentum in recent years. Nevertheless, since Indonesia’s patent law is

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under revision process, it is therefore an opportunity as well as high time for the country to apply the legal provenance of “disclosure requirement”. Although there is no such proof that the implementation of provenance will hinder patent applications, it is certain Indonesia’s biodiversity will have stronger protection against biopiracy. As Prof. Eddy Damian, an IPRs expert from the University of Padjadjaran, has mentioned, the losses of Indonesia against foreign patents (that exploit Indonesia’s biodiversity) amount to billion of rupiahs annually. (Kompas, July 7, 2007). It doesn’t take a genius to understand the urgency of such a warning. The writer is a graduate of Oxford University and a co-author of Multilateral Diplomacy in Environment (in Bahasa Indonesia); he currently works in Geneva, Switzerland. (The Jakarta Post) President SBY Gets Award for Ocean Protection Indonesian President Susilo Bambang Yudhoyono has been honored by the UN for protecting oceans at an international conference in Bali. United Nations Environment Programme Executive Director Achim Steiner presented SBY with the UNEP Award for Leadership and Promoting Oceans and Marine Conservations and Management. “This award is not only for the government but for the people of Indonesia,” said Steiner, adding that he hoped it would encourage the government and the people of Indonesia to take further steps to improve management of the country’s wealth of ocean resources. The award acknowledges Yudhoyono’s commitment to cooperate with Malaysia, Papua New Guinea, the Solomon Islands, the Philippines and Timor Leste to preserve coral reefs. Delegations from more than countries have gathered for the Bali UNEP conference, which

will focus on sustainable development, eco-friendly economies and biodiversity. In a speech at the conference on Wednesday (24/2/2010), SBY also encouraged ministers to tackle the issue of climate change when they meet informally there later this week.(Jakarta Globe) Waiting on a Promise to Combat Emissions

Months after the UN Climate Change

Conference in Copenhagen, developing countries, including Indonesia, remain in a state of limbo over funds committed by developed countries to help them contain the impacts of climate change.

The conference, held in December, was widely viewed as a disappointment over the failure to reach a binding agreement that would have committed developed countries to cut their greenhouse gas emissions by 25 percent to 45 percent.

But optimism stemmed from a promise by developed countries to “provide [to developing countries] new and additional resources, including forestry and investments through international institutions, approaching $30 billion for the period 2010 to 2012” for the purpose of combating climate change.

Some prominent local environmentalists, however, say that commitment has so far been nothing more than lip service.

“I’ve talked to donor countries — which came up with the numbers in the first place — such as Australia, the UK and Norway, but none of them can elaborate or clarify what, how, when or from whom the funding will be disbursed, or which [developing countries] will receive the money and under what terms,” said Ismid Hadad, chairman of the Working Group on Financial Mechanisms at the National Council on Climate Change.

Furthermore, Ismid said, the money is unlikely to be disbursed this year because there is still debate over whether the new funding should be under one umbrella — the UN Framework Convention on Climate Change — or another mechanism such as the World Bank or Global Environmental Facility, which allocates and disburses about $250 million per year in projects related to energy efficiency,

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renewable resources and sustainable transportation, in about 180 countries.

“The bottom line is that the US does not believe in a multilateral forum, such as the UNFCCC,” Ismid said. “It sees [the forum] as ineffective, too much talk and a forum it cannot dominate as it is based on ‘one country one vote.’

“I presume that it would want to address the agreement [on a funding mechanism] at the G-20 meeting rather than the [official] climate change meeting because that’s the place for donor countries to gather.”

Based on the National Plan of Action, Indonesia will need at least Rp 83 trillion ($9 billion) to finance efforts to reduce its carbon emissions by 26 percent by 2020, and another Rp 85 trillion in international support if it is to achieve the more ambitious 41 percent emissions cut.

President Susilo Bambang Yudhoyono announced those targets at a G-20 Summit in the US city of Pittsburgh last year.

On the other hand, Ismid said, developing countries — also known as the G-77 countries — have criticized some funding mechanisms as nontransparent. They also say the distribution of the funds would be weighted in such a way that it would only benefit rich countries.

Besides the Global Environmental Facility, there are other funding mechanisms dedicated to climate change, including the Special Climate Change Fund, established in 2001 under the UNFCCC to finance projects that adapt current systems to be more environmentally friendly. The fund works in areas like technology transfer, clean energy, transportation, industry, agriculture, forestry and waste management.

The GEF manages a fund called the Least Developed Countries Fund, which helps some of the world’s least developed — and therefore most vulnerable — countries combat the adverse effects of climate change. There is also the Adaptation Fund, established by the Kyoto Protocol to finance so-called adaptation projects in developing countries. These could include drought contingencies or shoreline management to fend off rising sea levels.

Rachmat Witoelar, executive head of the National Council on Climate Change, said the Copenhagen Accord itself was not legally

binding, so developing countries had no leverage through it over developed countries.

“As for the promise [on the funding], well, a promise is a promise,” Rachmat said. “That is on our agenda for preliminary meetings in anticipation of the upcoming Mexico Climate Talks. We plan to discuss it with countries involved [in producing the pledge] and ask them to shell out what they promised.

“I have met with several leaders on this issue, and it is certain the focus will be on the REDD [Reducing Emissions from Deforestation and Degradation] and financing.”

Daniel Murdiyarso, a climate change scientist at the Center for International Forestry Research (Cifor) in Bogor, said the funding issues were evidence that there was still no clear international guidance as to the implications of the non-legally binding status of the Copenhagen Accord.

“Meaning that the [climate change] governance is weak. The only strong governance is still the Kyoto Protocol, which will expire very soon,” Daniel said. “If you look back, it is very clear that the countries agreed to curb emissions by 5 percent, an important small step. But now we only have two years left, and the complexities are huge. The geopolitics are also different.”

“These figures are pledges; if they are non-legally binding then how can we be sure that they will be met?” (Jakarta Globe)

Indonesia Has Signed the UN Convention Banning Cluster Bombs Spokesman of Foreign Ministry Teuku Faizasyah said Indonesia has signed the United Nations Convention on the prohibition of using cluster bombs. This signing convention confirms Indonesia´s attitude that supports banning the use, stockpiling, production, and sale of cluster bombs. "We have signed the convention in 2008. But it is so far Indonesia has not ratified the convention because it is still under discussion," said Faizasyah to Media Indonesia in Jakarta,

REGIONAL/INTERNATIONAL ISSUES

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Wednesday (17/2/2010).He explains this anti-cluster bombs convention is still under discussion at the ministerial level that involves many ministries including the Ministry of Foreign Affairs and the Ministry of Defense. "It related to readiness of the country, before actually ratified the convention. This means the internal process will take a long process," he added. The United Nations has announced that a 30th country had signed on to the international convention banning cluster bombs, paving the way for the document to come into force on August 1. Faizasyah said, soon after the discussion completed, Indonesia will register this convention ratification to the United Nations. "There's no deadline, but certainly if the discussion is completed we can directly apply this ratification to the UN," he said. (unofficial translation, Media Indonesia) Indonesia Will Establish the East Asia and Pacific Community Jakarta - Government of Indonesia set a target to establish the East Asia and Pacific Community in 2013 to respond the demands of global integration in overcoming problems in the region. Formation of the Community is needed to respond a big opportunity for emerging markets to become leading player in the global economy. Gross domestic product (GDP) of Asia, where inhabited by 2.5 billion populations, is nearly a quarter of the world´s GDP. "The East Asia and Pacific Community is something real that must be implemented in the future," said Minister of Foreign Affairs Marty Natalegawa to Bisnis.com last weekend. He considered that 2013 is the right moment to declare the East Asia and Pacific Community in conjunction with Indonesia´s leadership in ASEAN. The region requires a strong leadership figure to accomplish the political commitment in order to improve the cooperation.

Indonesia's capacity in the region, he explained, was proved, for example in 2003 when led ASEAN, Indonesia managed to form the establishment of a Community-10 countries of Southeast Asia. Furthermore, the Foreign Minister said that the East Asia and Pacific Community is end of the integration process that already running, starting from the establishment of ASEAN Community, ASEAN plus 3 (ASEAN with China, Japan, and South Korea). In addition to it, cooperation spheres expanded from the initial idea. Yati Kurniati, Bank Indonesia's senior economist in her research entitled Financial and Monetary Integration in East Asia mentioned that in the beginning of East Asia cooperation focused on trade and investment, but after the 1997 Asian crisis, cooperation encompass to financial integration. Kurniati explained that there are three important factors that cause the increasingly demand for integration of East Asia. First, the financial crisis in Asia in 1997, where a crisis in one country greatly affected other countries, even cause crisis in the region. Second, the International Financial Architecture/IFA is very weak and not enough to accommodate the needs of developing countries in the face of global integration, so that the integration in the region is necessary. Third, the cooperation of East Asia and Pacific region may increase autonomy and power in the area of political and economic systems internationally. This also refers to the success of the European Union Community formed the supra- national region and single currency area. Embryos of the East Asia cooperation in the financial sector was starting from financial ministerial-level meeting of ASEAN that held few months before the monetary crisis in Asia happened. (unofficial translation,ANTARA)