INDONESIA DIGEST Indonesia's complex Issues in a Nutshell By: Ms. Wuasuti Sunario Published by: TBSC-Strategic Communication No.: 31.06 - Dated: 5 September 2006 In this issue:
MAIN FEATURE: INDONESIA'S POOR HAS INCREASED TO NEAR 40 MILLION NEWS AND BACKGROUND: 1. Tourism and Transportation: Domestic passengers up 12.5%; July Tourists to Bali up 11.36% 2. Health, Culture and the Environment: Four Critically Endangered Java Rhino cubs detected in Ujung Kulon Reserve Efforts Underway to Reforest Some of Bali's Vanishing Forests. · Indonesia's diverse Cultural Backgrounds obstacle to Fast Avian Flu Awareness 3. Politics and Security Police Breaks international drug ring seizes 955 Kg of "Shabu-shabu" Indonesian Troops Bound for Lebanon join UN Peacekeeping Force ---------------------------------------------------------------------------------------------------- MAIN FEATURE: INDONESIA'S POOR HAS INCREASED TO NEAR 40 MILLION In the State Address on 16 August, President Yudhoyono mentioned, that : "We have succeeded to reduce the level of poverty from 23.4 percent in 1999 to 16 percent in 2005". This statement was harshly criticized by a number of Indonesia's leading economists, who accused the government of providing misinformation to the public. Some of them calculated that after the government's doubling of fuel prices at the pump towards the end of 2005, Indonesia's poverty level must have soared back to the former crisis level of 1999, nearing 23%. Later, Minister for National Planning, Paskah Suzetta, explained that the figures mentioned by the President were as per February 2005, since the Statistics Bureau, BPS, would announce results of the 2006 social-economic survey in September only. But when the results were finally announced by BPS last Friday, 1 September, economists were taken aback. For, although there was an increase, the increase was not as high as they had predicted. Granted, that actual figures are nonetheless, still enormous. BPS chief Rusman Heriawan said that Indonesia's poor population as per March 2006, had increased by 3.95 million people to 39.05 million, or 17.75 % of the country's total 222 million population. This number was up from 35.1 million (15.97 %) out of the 220 million population in February 2005. However, when not including the government's direct subsidies to the poor (BLT) to compensate for fuel price hikes, Indonesia's total poor would have totaled 50.8 million, reported Kompas daily. The poor are those earning less than the equivalent of US$17 a month. The number of rural poor increased by 2.06 million people during the 13-month period, which included last year's months of March and October when the government hiked fuel prices, while urban poor rose 1.89 million, added the Jakarta Post. "By percentage, the poor are still mostly found in villages, at 63.41%, with the remainder being in the cities," Rusman told a media briefing. Other poverty data revealed that 30.29% of those categorized in the "near poor" people, 11.82 percent of "almost not poor" people and 2.29 % of "not poor" people in February 2005, had by March 2006 plunged into further destitution. Only 6.45% of poor people emerged better off to rise to the not poor category over the same period. The latest poverty figures were derived from the BPS' routine survey of households, combining an annual survey sampling 265,000 households throughout the country, a survey held once every three years on the consumption, education and health expenses trend of 68,000 households and another annual but more detailed consumption survey of 10,000 households, said the Jakarta Post. Households are classified as "poor", "near poor", "almost not poor", and "not poor" according to an expenditure-based "basic poverty line" deduced from the surveys. The "poverty line" was set at Rp 152,847 (US$16.8) per capita per month for March's data, and Rp 129,108 for February 2005. The BPS acknowledged that the rise in Indonesia's poor population was due to last year's fuel price hike, as well as the recent rise in the prices of staple foods, particularly rice. This verifies estimates from analysts and economists that the fuel price hike policy -- which had pushed up inflation and interest rates, had weakened the public's purchasing power, and slowed economic growth, and increased the country's number of poor as well. Whereas, the government was criticized for not having done enough to prevent adverse social and economic impacts. Rusman said Friday's that latest poverty figures had been calculated and derived accountably through the same survey methods as used since 1998. Government Accelerates Poverty Alleviation Measures In direct response to public criticism, the Coordinating Minister for the Economy, Boediono, announced the government's program to accelerate poverty alleviation through significant increases in budgets, reported Indonesia's Trade and Industry News published by the Coordinating Ministry for the Economy. In 2005, for example, budget allocated towards poverty alleviation was Rp. 23 trillion, while in 2006 this amount was increased by 80% to Rp. 42 trillion. This will again be raised to Rp. 51 trillion in 2007. One main program will be to change the BLT program to Conditional BLT linked to education, health and nutrition. In 2007, pilot projects are to be started in 6 provinces involving 1.7 million households, requiring a budget of Rp. 4 trillion. This program will form a bridge to longer-term programs to improve the production capacity of poor families, while at the same time aims to protect the poor and gain access to basic education and health, that include transportation costs. The government further plans to press on with rice distribution program for a total of 15.8 million poor families, where each family will receive a ration of 12.5 kg at Rp. 1,000/kg. Furthermore, the government will guarantee free medical treatment for the poor at Public Clinics and at Third Class Wards in Hospitals. Basic education subsidies will be given free for the first 9 years, as well as subsidies for secondary education for children of lower income groups. Additionally, basic facilities for sanitation and access to clean water and low cost housing will be continued. The government will also continue to maintain price stability of basic food commodities, especially the price of rice, where each poor family is estimated to spend between 20%-25% of their income to buy rice as their staple food. In order to do this, the government will maintain sufficient national buffer stock of rice. Additionally, the government will continue to provide fuel and power subsidies aimed at keeping stability of such expenses in households. Also, other sources for household energy are being expanded to include, LPG, biofuel and others, to become more accessible to the poor. Such measures are to be taken starting 2007. Other programs aimed at empowering financial capacities of the poor starting 2006 and 2007 are firstly, activities that will create employment opportunities, to be allocated in the National Budget, which will be managed transparently and competitively. One of these projects will be the implementation of biofuel for energy program. Secondly, the government will continue to build infrastructures for rural areas to be financed through national and regional programs. The construction of such infrastructures will not only provide employment for the short term, but are expected to create a better business climate in rural areas. Whilst, in order to reduce disparities among regions, regional budget allocations will be increased from Rp. 11.6 trillion in Budget 2006 to Rp. 14.4 trillion in 2007, or an increase of 24%. And, to monitor the effectiveness of these programs, the government will constantly improve its database on poverty to be more accurate and more operational, reported Indonesia's Trade and Industry News. (Sources: Jakarta Post, Kompas, Indonesia's Trade and Industry News) (Tuti Sunario)--------------------------------------------------------------------------------------------------------- NEWS AND BACKGROUND: 1. Tourism and Transportation: Domestic passengers up 12.5%; July Tourists to Bali up 11.36% The National Statistics Bureau informed that total number of domestic air passengers in July improved by a hefty 13.5% to 2.75 million passengers compared to June's 2.42 million. Top increase was at Bali's Ngurah Rai airport, up by 23.7%, followed by Makassar by 18.8%, and Jakarta's Soekarno-Hatta airport by 17.2%. Jakarta's international airport handled 42.1% or1.09 million of total domestic passengers. Comparing January-July 2006 to the same period last year, there was an increase of 12.5% increase in domestic passengers, when Jakarta's airport handled 37.1% of total passengers. The Statistics Bureau, however, informed that total international arrivals to Indonesia in July were down 10% compared to June this year. While, comparing the first 7 months in 2006 to the same period last year, the number was down 8%, numbering a total 2.26 million, cited Metro TV. However, outbound passengers during the first 7 months this year came to 3.11 million, or up 0.8% compared to the same period in 2005. The National Statistics Bureau further noted that tourist arrivals in Bali during July registered a significant increase of 11.36% compared to the previous month, and is expected to have improved further in August, as reported by Bisnis Indonesia. Meanwhile, according to the Indonesian language Bali Post, a dramatic shift is underway in the demographics of the average foreign visitor to Bali, reports balidiscovery.com Quoting a Bank Indonesia (BI) report, tourists aged 65 or above now represent 4.8% of all visitors to Bali, a figure 20% higher than previously reported 4% market share for senior citizens. Conversely, there are worrying signs that Bali may be losing its luster as a family destination with foreign visitors aged between 0-14 years now representing only 4.2% of all visitors, a -53% drop for its former 9% market share. Worthy of further investigation, this significant drop could suggest that security concerns and the failure of the Australian market to rebound underline a somewhat diminished appeal of Bali for family holidays, says balidiscovery.com The Environment, Health and Culture: Four near-extinct Java Rhino cubs detected at Ujung Kulon Reserve Four births in a species usually is no reason for celebration, except when that animal is teetering on the brink of extinction, reports the Jakarta Post. World Wide Fund For Nature (WWF) and biologists announced Friday they found indications of the birth of four Javan rhinos in the Ujung Kulon National Park, Banten, raising hopes for the survival of what many consider the rarest large mammal in the world. The population of the mammal (rhinoceros sondaicus), also known as the Asian lesser one-horned rhino, is now in the critically endangered category, and is believed to be fewer than 60 worldwide. It is estimated that between 26 and 58 of the species live in Ujung Kulon and no more than eight of its subspecies are likely to survive in Cat Tien National Park in Vietnam. Ujung Kulon National Park director Puja Utama said a WWF team, including park rangers and local people, discovered signs of the rhino calves in July in the park located on the far western tip of Java. He said that the team found three sets of small footprints, ranging from 16 to 21 cm., together with larger ones of 24 to 28 cm, believed to belong to their mothers, in three different parts of the 120,000 hectare park. The team also directly encountered a female rhino along with a calf. However, no photographs were taken. The WWF concluded that the finding was evidence of four different calves because of the distance between the four areas where the discoveries were made and differences in the sizes of the footprints, he said. WWF and park staff hope to capture photos of the newborns with remote-triggered cameras used to monitor the rhinos. "Javan rhinos are on the brink of extinction," said Director General of Forest Protection and Nature Conservation at the Forestry Ministry Arman Malolongan. "Discovering they are breeding, even at a slow rate, gives us hope for the species' future." The birth of the four rhinos, if the observations are correct, was the first known in three years, he said. The WWF also is urging researcher to conduct a comprehensive study on the possibility of establishing a second habitat of rhinos outside the park to protect them from diseases or natural disasters that could wipe out their entire population. "We are trying to minimize risk factors that could endanger the species. We can't just put all eggs in one basket," WWF executive director Mubariq Ahmad said. He said that separating rhinos in different locations proved to help increase their number in Africa. However, Biodiversity and Conservation Director at the Forestry Ministry Adi Susmianto said that the proposal to establish a second habitat at Mount Halimun, Sukabumi, West Java, needed extensive research to ensure it would not harm the animals. "In 1993, we tried to relocate Sumatran rhinos, but we failed because the relocated rhinos all died," he said, "And we don't want to repeat the mistakes." To reduce threats against Javan rhinos, WWF recommends that park authorities take conservation measures, including reducing the number of banteng wild cattle in the park and invasive vegetation that hinder the growth of rhinos' favorite plants. Efforts Underway to Reforest Some of Bali's Vanishing Forests. The Bali branch of the National Movement for the Rehabilitation of Jungles and Pastures (Gerhan) hopes that a recently allocated government fund of Rp. 12 billion (approximately US$1.3 million) can be used to restore some of Bali's jungle and natural pasturelands, reports balidiscovery.com. Members of Commission IV of the People's Consultative Assembly (DPR), Made Urip and Gde Sumarjaya Linggih, told the Indonesian language Bali Post that they "hoped the above funds could be supported by additional funds from the State Budget." Linggih said that part of the US$1.3 million has been allocated for rehabilitating depleted areas of Bali that now total 6,000 hectares. Both legislators termed Bali's land use as being in a critical state, with wild land reserves now at 30% less than stipulated minimums due to diversion to agricultural purposes. As a result, Bali is suffering significant drought conditions as seen by former lake bottom at Danau Buyan now being used as a soccer field. Meanwhile, legislators are promising to continue their efforts to urgently lobby for more funds to be allocated to jungle and natural pastureland rehabilitation, reports balidiscovery.com · Indonesia's diverse Cultural Backgrounds obstacle to fast Public Awareness of Avian Flu Danger Jakarta (ANTARA News) - Indonesia faces major obstacles in its fight against bird flu, the UN Children's Fund said Friday as officials reiterated calls for more international financial aid. The government faces a "huge challenge" to teach the rural population about the danger of the H5N1 virus and to be more health-conscious, due to the country's massive size and diverse ethnicities, said Gianfranco Rotigliano, Indonesia's UNICEF country officer. "This is the ultimate goal ... this is the key for attacking the issue for getting this country out of that threat," Rotigliano was quoted by AFP as saying at the launch of the government's new public awareness campaign. "There are so many diversities. When you talk to different people, you have to use different languages in terms of the messages you convey," said Rotigliano, adding that officials should be more flexible in spreading the message. Indonesia, the world's fourth most populous nation and largest archipelago, has confirmed 60 cases of bird flu with 46 deaths so far, the highest number in the world. While the H5N1 virus that causes bird flu does not spread easily among people, the chance of a mutation occurring which will allow it to do so is heightened as more humans catch it from infected birds. Scientists fear that if this occurs, a global flu pandemic with a massive death toll could result. The government said last month that approximately 30 million homes keep chickens in their backyards and in some instances, many refused to turn in their birds despite offers of compensation. Bayu Krisnamurthi, head of the national commission on bird flu prevention tasked to run the campaign, refused to reveal costs of the campaign but reiterated Jakarta's calls for more international financial support. "A campaign for 220 million people requires a very huge fund. We are inviting all parties who are concerned about the health and safety of many people to be involved," Krisnamurthi said without giving further details. The government, which planned to cut its 2007 bird flu budget to 46.5 million dollars, will need up to 260 million dollars annually for the next three years to finance its anti-bird flu programs, said Krisnamurthi. "It's up to the World Bank to provide which contribution they choose to give ... this is a call to all our key partners," he told reporters in Jakarta. 3. Politics and Security Police Break international drug ring, seizes 955 Kg of "Shabu-shabu" Jakarta, Aug 29 (DPA) Indonesian police Tuesday confiscated nearly one tonne of crystal methamphetamine apparently smuggled into the country from Hong Kong in one of the largest seizures in the country's history, a senior official said. The national police chief, General Sutanto, said about 955 kg of crystal methamphetamine, locally known as 'shabu-shabu', was seized during routine patrols in the Tanggerang district on the western outskirts of Jakarta, the state-run Antara news agency reported. General Sutanto said he believes the drug seizure was the largest-ever haul in Indonesia. According to local police spokesman I. Ketut Yoga Ana, the seizure occurred when police were conducting routine traffic stops on vehicles. Ana told the Detik.com news service that the drugs, worth up to 600 billion rupiah ($65.7 million), were loaded into a mini van from the back of another car. He said the van's driver was in police custody for questioning. 'He (the driver) is not the main suspect,' Ana was quoted as saying. 'We believe that an international drug syndicate is involved in this case.' Indonesian judges have handed down a number of lengthy prison sentences for narcotics trafficking in recent years, including death sentences, to act tough on a growing drug-abuse problem. In late 2004, two Thais and an Indian convicted of drug trafficking in 1994 were executed by firing squad. Indonesian Troops Bound for Lebanon join UN Peacekeeping Force Indonesian troops will join the United Nations peacekeeping force in Lebanon this week after Israel set aside objections to the world's largest Muslim nation taking part, reports Indonesia's Trade and Industry News released by the Coordinating Ministry for the Economy. The UN announced the inclusion of 1,000 Indonesian troops in the 15,000-strong peacekeeping mission on Saturday (2/9/06). A 12-member advance mission will leave Jakarta for Lebanon within two to three days, with the entire force expected to be on the ground within a month. The deployment is the biggest by Jakarta since 1992-93 when it sent several thousand peacekeepers to Cambodia as part of a UN force. Israel earlier opposed offers from Indonesia, Bangladesh and Malaysia to send troops to Lebanon because none of the three Muslim countries has diplomatic relations with the Jewish state. But Defense Minister Juwono Sudarsono said on Thursday that Jakarta had been in contact with Tel Aviv via "third parties" and that "there are clear signs" the Israelis were setting aside their objection to Indonesia sending troops. While the two countries do not have formal diplomatic relations, Jakarta recognises Israel's right to exist, he said. "Indonesia recognises the two-state solution over Palestine in contrast to other Islamic countries which in their rhetoric want to drive Israel into the sea. We have never taken that position." Officials in Jakarta have said Indonesian peacekeepers would not take part in any efforts to disarm Hezbollah. Sudarsono said Indonesia wanted to see Hizbollah and its weapons "absorbed" into the Lebanese army "because Hezbollah is part of the Lebanese government". Such a move, he said, would be "commensurate with Israel fully withdrawing from Lebanon." For your comments or further inquiries, please e-mail to: [EMAIL PROTECTED] *************************************************************************** Berdikusi dg Santun & Elegan, dg Semangat Persahabatan. Menuju Indonesia yg Lebih Baik, in Commonality & Shared Destiny. http://groups.yahoo.com/group/ppiindia *************************************************************************** __________________________________________________________________________ Mohon Perhatian: 1. Harap tdk. memposting/reply yg menyinggung SARA (kecuali sbg otokritik) 2. 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