INDONESIA DIGEST
Indonesia's complex Issues in a Nutshell
By: Ms. Wuryastuti Sunario
Published by: TBSC-Strategic Communication
No.: 09.06 - Dated: 21 March 2006
In this issue:

MAIN FEATURE:

 BILL ON PORNOGRAPHY AND PORNO-ACTION TO BE OVERHAULED

NEWS AND BACKGROUND:

1.      Tourism and Transportation:
Tourists using Visa Card Spend More; Outbound Down 30%;
Incentives for Bali Recovery in early 2007; Tourism Summit November 2006
Government backs Garuda and Merpati with Letters of Undertaking

2.      Health and the Environment:
Indonesia's Bio Farma to produce Avian Flu Vaccine
Elephants and Humans fight for Habitat
--------------------------------------------------------------

MAIN FEATURE:

BILL ON PORNOGRAPHY AND PORNO-ACTION TO BE OVERHAULED
One would have thought that, faced with problems of Indonesia's widespread 
unemployment, rising consumer prices, rising oil prices, stagnant 
industries, floods, earthquakes, mudslides, terrorism, malnutrition, and the 
threatening Avian Flu pandemic, and not to mention rife Corruption, the 
Government and Parliament had enough emergencies and challenges to contend 
with and to correct.
But apparently, not so. Parliament, in this case Commission VIII, still 
seems to have ample time to spark up more public emotions through 
"socializing" the Bill on Anti-Pornography and Porno-Action, slated to be 
enacted into law.  And protests they received.

Most vocal were the Women's Movement Groups and Artists who staged 
demonstrations in most cities across the country, objecting to the Bill, 
bearing placards along main streets and meeting Members of Parliament. 
Among political parties, the Anti group was strongly backed by the 
nationalist PDIP, while the Pro-group is backed by Moslem parties, PKS and 
PKB.
Finally, in a Palace Press Conference, Women Empowerment Minister, Meutia 
Hatta, stated that her Department was against the formulation of morality 
and pornography as stated in the Bill, and that she, therefore, recommended 
that the Bill be revised.

However, most vocal and most adamant rejecting the promulgation of the Bill 
was the provincial government, its Parliament and people of Bali.  Their 
common stance was poured into a resolution made by the Bali Provincial 
Parliament, backed by the community and co-signed by the Bali Governor 
himself.  This common rejection contradicts earlier statements made by a 
number of Members of the Special Parliamentary Committee that discussed the 
Bill, who professed that majority Indonesians interviewed were pro the Bill, 
and only a small majority was against, whilst in Bali, those against were a 
mere minority in the tourism industry.
With Bali's rejection - where the Hindu-Bali religion is strongly 
embedded -, the Bill entered the political arena, whereby the threat of 
disintegration of the nation and the cohesion of the unitary state of the 
Republic of Indonesia would be at stake, if legislators insist to push 
through with the present Bill.

Who evaluates Morality?
Blatant weaknesses found in the Bill are felt first and foremost in its 
definition of pornography and porno-action (an English word coined in 
Indonesia?) which are vague and therefore, remain wide open to multiple 
interpretations, and herein lies the danger.
By the word "pornography" as formulated in the Bill is meant "any material 
in the mass media or through any means of communnications that transmit 
materials that exploit sexuality, indecency and/or erotica". Whereas, by 
"Porno-action" is defined "such deeds that exploit sexuality, indecencies 
and/or erotica in public".
Furthermore, article 51 calls on "every citizen to actively ensure that 
morals of the community are being upheld". The question that remains is: 
Indonesia being a multi-ethnic nation, a melting pot of religions, 
traditions and values, whose values, and what values, are upheld as the 
norm? And with modernization, internet and mobile phones - how are these 
values to be controlled?  And who controls them? Is it the government, the 
police, or "anyone?" Where, then, is a person's right to privacy?

Unfortunately, to those supporting the Bill, when one is not for the Bill, 
then one is considered in favour of Pornography and indecency. In fact, it 
is in the details of the Bill and paradigms behind the formulations that are 
the problem.

Details of the Controversial Bill
It is reported that the Bill on Anti-Pornography and Porno-action was 
submitted to Parliament by the government in 2002. However Parliament of 
that period was not enthusiastic to discuss it, so that it was only by the 
Parliament elected in 2004 that the Bill was finally slated for discussion 
in 2005, however, only it was given priority 22 of the 55 Bills to be 
promulgated into a Parliamentary Act or Law.

The Bill consists of 11 Chapters, 90 Articles and a Chapter of 
Clarification. Chapter I covers Terminologies, consisting of two sections 
and 3 Articles, The first chapter contains 20 points covering definitions, 
from the formulation of the meaning of pornography, porno-action, kinds of 
print and electronic mass media used to publishing of pornography and 
porno-actions, and means of communication (letter, e-mail, mobile phones), 
also pornographic materials (books, newspapers, magazines, tabloids, film, 
videos, VCDs, DVDs, or Personal Computers).
Further mentioned are definitions of categories of jobs related to 
pornography and porno-actions, their publications and their consumers, Here 
is also determined the age limit being 12 years old, that distinguishes a 
child from an adult.


Chapter II contains 33 articles, whereas, articles 4 to 33  mention 
prohibition that are similar to the above: " Every person is prohibited to 
write, talk or record voice, film or similar onto film, lyrics, poetry, 
pictures, paintings, or photographs that exploit particular parts of the 
body that are considered sensual to an adult" (article 4)

While other articles that differ from article 4 cover material covered, 
among which, the exploitation of the naked body of an adult person, parts of 
the body of erotic dancers, activities of a couple kissing on the lips, 
sexual intercourse with the opposite sex, intercourse with the same sex, 
intercourse with a corpse or with animals, to orgies and sex shows and the 
like.

Article 12 mentions the publication of pornography and porno-action in print 
and electronic media. This article threatens the offender with jail term of 
between 2 - 6 years, or slapped a fine ranging from Rp. 300 million to Rp. 2 
billion.

Exceptions made are mentioned in article 34 of Chapter III, which include 
for purposes of education, science or medication, as well as for reason of 
tradition, ethnic culture, and religious rites or beliefs. Also for purposes 
of sports and arts which may be done at assigned locations but with prior 
permission from the government

Furthermore, in Chapter VI, it is mentioned that to prevent and fight 
pornography, a special Board will be established, namely the 
Anti-Pornography and Porno-Action Board (BAPPN), which will be a 
non-government body directly responsible to the President. The function of 
the Board is to act as coordinator among government agencies, and is 
extended powers to evaluate the opinions and behaviour of society vis-à-vis 
pornography and porno-action.
Punishments meted out to violators are mentioned in Chapter IX, consisting 
of 33 articles, where, on average offenders are punished with jail terms 
ranging between 1 to 20 years, or fines between Rp. 100 million to Rp. 3 
billion.
(Translated into English from 
www.mail-archive.com/[EMAIL PROTECTED])


The Revised Bill to target the Pornographic Industry
It was, therefore, with a sigh of relief that the public received the news 
from Parliament that the Bill will now be completely overhauled, beginning 
from its systemic formulation to its final target.
Speaking in a Seminar entitled: "Quo Vadis Bill on Anti-Pornography and 
Porno-action?" on Thursday 16 March, Badryah Rayumi, Member of the Special 
Team from the PKB party was quoted in Kompas as saying that the revised Bill 
will have as main target the Pornographic Industry. "We now are aware that 
the earlier Bill was very difficult to implement, and we admit that we were 
wrong to propose the Bill as our right of initiative, without prior detailed 
consultations".
Other Panel Members of the Seminar agreed that the Bill should focus on 
controlling publications and the industry that exploits pornography for 
commercial purposes.

While, State Minister for Women's Empowerment Meutia Hatta Swasono said 
Wednesday the focus of the Bill should be on limiting the distribution of 
obscene materials, not on prosecuting personal conduct, especially the 
conduct and dress of women.

The day before, Chairman of the House committee deliberating the Bill, 
Balkan Kaplale, said the revised bill on pornography would focus on 
pornographic material.


This change in the emphasis of the bill was made only after waves of public 
protests. And so, although Parliament was slow to respond to the public 
outcry, it could, nonetheless, no longer ignore voices opposed to the Bill.
(Sources: Kompas, Media Indonesia)      (Tuti Sunario)
---------------------------------------------------------------------

NEWS AND BACKGROUND:

3.      Tourism and Transportation:

Tourists using Visa Card Spend More; Outbound Down 30%;

Visa Asia Pacific recently announced that total spending by foreign visitors 
using Visa Cards during their stay in Indonesia in 4th. Quarter of 2005 went 
up by 7% compared to the same period in 2004, reaching US$127 million (or 
Rp. 1.16 trillion). The amount is not including cash expenditures.  Visitors 
from the USA, Australia, Japan, Britain and Singapore were biggest spenders, 
comprising 59% of total spent by Visa credit card, amounting to US$ 74.7 
million between October through December 2005.

This means that although actual number of tourists during this period was 
down, however, actual spending had gone up, said Ellyana Fuad, Visa Asia 
International Country Manager for Indonesia. Largest percentage (33%) was 
spent on accommodation, 15% on shopping, 6% on restaurants and food, 6% on 
transportation, and 6% on sport and recreation.

Meanwhile, Bayu Buana, one of Indonesia's largest Outbound Tour Operators 
reported a decline of between 25% - 30% of its outbound clients during 
December 2005 through February 2006 due to lowered consumer spending power, 
with main reason being the 100% increase in fuel prices announced late last 
year, which washed out the usual December peak season.

Incentives for Bali recovery in early 2007; Tourism Summit November 2006

The government will provide tax incentives to Bali's tourism industry to 
ensure that the island's mainstay will recover early 2007, said Deputy 
Minister for the Coordinating Minister for the Economy, Edy Putra Irawady 
recently in Bali.
Through such incentives, the government hopes to restore tourist arrivals to 
this prime island from the present low 2,000 daily to 6,000 per day.

Incentive measures include firstly, waiver of VAT on services in arts and 
entertainment to those organizations and establishments hitherto applied, as 
well as tax waiver on services in hotels, restaurants and small food cafes; 
secondly focus on Presidential Decision No. 127 of 2001 on investments in 
tourism and small and medium scale industries; and thirdly, emphasize the 
implementation of Presidential Instruction No. 16 of 2005 for other sectors 
to support tourism development; synergize overseas promotion undertaken by 
the national government and various local governments through closer 
coordinated efforts with trade and investment sectors.

Bali is the main focus for national tourism recovery since Bali receives 28% 
of arrivals to the country, and the latest bombings here have cut down 
significantly on arrivals, adversely affecting its supporting industries, 
including small and medium scale industries, resulting in increased 
unemployment, said Irawady.

Tourism, leverage to national and regional economic growth

In the latest development, Edy Putra Irawady, accompanied by Deputy 
Coordinating Minister for Welfare, Risman Musa, and Specially assigned 
Official, Lalu Mara, announced in Jakarta, that the government plans to 
organize an international "Tourism Summit" in November 2006, for which all 
Regions are called to submit their proposals for investments, which may 
include resort development, spas, hotels and piers. Proposals have been 
received from the Regencies of Bangka-Belitung, Klungkung (Bali) - to build 
a marina, from the island of Batam, while Jambi has proposed the development 
of a bird park.

Deputy Minister Edy Putra Irawady is convinced that tourism has an important 
role to play in Indonesia's economic development and to improve people's 
income. Tourism pushes investments, attracts buyers, pushes 
entrepreneurship, increases national and regional incomes and promotes 
economic activities of the people, he said.

According to statistics, said Irawady, contribution of Tourism to Indonesia's 
GDP in 2002 was 6.15% or Rp. 98.8 trillion. Whereas, in 2009, its 
contribution is expected to rise to 14% from total GDP with 10 million 
tourist  arrivals expected, offering a national receipt of between US$ 10 
billion to US$ 15 billion from tourism.

On the other hand, the government also realizes that some of the existing 
weaknesses in Indonesia's tourism include the less than adequate 
accessibility to destinations and attractions, poorly managed development of 
many destinations, poor product packaging and inadequate promotional 
activities, said Irawady as reported by Suara Pembaruan.

Government backs Garuda and Merpati with Letters of Undertaking

Parliament has recently given its agreement to a proposal that the 
Government issue Letters of Undertaking to back cash-strapped Garuda 
Indonesia and Merpati Airlines, so as to allow financial institutions to 
give their financial backing to the two state airlines.

This will allow Merpati Nusantara to obtain loans up to Rp. 450 billion. Rp. 
150 billion of which are to increase productivity thus improving its ratio 
between aircraft and crew to 1:50, scaled down from the present 1:155. 
Whereas, Rp. 145 billion will be earmarked to settle the airline's debts 
with vendors and its due debts repayments; while Rp. 155 billion are to be 
used to lease ten Boeing 737-400 aircrafts for its operations.

Commenting on this decision, Garuda's CEO, Emirsyah Satar said that this was 
option was new to him, however, with the government's Letter in hand, this 
will allow Garuda to seek new investors or strategic partners. The first 
option that was initially proposed by the Government was to inject funds to 
both airlines totaling between US$355 million to US$605 million, to be 
sourced from other state enterprises. However this proposal was turned down 
by Parliament.

Garuda has total outstanding debts amounting to US$ 800 million, US$ 510 
million is owed to the European Credit Agency (ECA), US$130 million to 
holders of promissory notes, and the remaining US$ 160 million owed to Bank 
Mandiri and the airport authorities of  PT Angkasa Pura I dan II. Garuda has 
also been unable to pay out US$ 55 million to promissory notes holders due 
by the end of December 2005.

Nonetheless, both the government and members of Parliament as well as the 
majority of Indonesia's public still wish to see Garuda as Indonesia's 
national flag carrier to continue flying as the country's standard bearer 
into the international world. .

Nonetheless, in order to succeed in this function, Garuda must radically 
change its paradigm, from being a (protected) state-owned enterprise the 
airline must emerge as a world-class airline, that can successfully compete 
among world class airlines, such as Singapore Airlines, Qantas, MAS or Thai 
Airways, and not merely compete with Indonesia's own low-cost airlines such 
as Lion Air, Adam Air, Awair or similar, said observers.
4.      Health and the Environment:

Bandung's Bio Farma to produce Avian Flu Vaccine This year

Indonesia's PT Bio Farma in Bandung is ready to start production of avian 
flu vaccines for humans, said its President Director, Marzuki Abdulah 
recently. At present the company is considering cooperation with one among 
three companies. These are Baxter of the United States, Sanofi Pasteur of 
France and another Italian company that has the technology to produce 
vaccines for humans. It will be a downstream process, whereby the company 
will import semi finished materials from abroad while final production will 
be done in Bandung. Bio Farma has produced a number of vaccines, and is 
therefore confident that it is also capable of producing the avian flu 
vaccine. The President Director of Baxter, Kim Bush, has already inspected 
Bio Farma's facilities, and has assessed that the company's facilities, 
existing technology and experts are available so that production may be 
started immediately.

At present, the company is placing its priority to train its experts in 
avian flu vaccine production which is done through sending the experts 
overseas, or invite overseas experts to train experts here in Bandung.

Elephants and Humans fight for Habitat

16 Sumatra elephants have been killed or found dead in the last four months 
in the province of Riau, said Nurchalis Fadli of the Human Elephant Conflict 
Mitigation Coordinator, World Wildlife Foundation, in Riau. Some two weeks 
ago a herd of elephants stampeded at Balai Raja, destroying plantations and 
tens of houses.

Since November last year the Foundation has caught and relocated the 
pachyderms so as to reduce escalating conflicts between elephants and 
humans. However, 8 elephants were found sick at Tesso Nilo, since the 
animals were not familiar with the new surroundings and did not know where 
to find food. Two were found with a chain around the neck. Six were found 
killed at the border between Rokan Hulu and South Tapanuli in North Sumatra.

In 2002, sixteen inhabitants were killed by elephants, as they were living 
on land that used to be the grazing grounds of the elephants that have now 
been converted to plantations and settlements.

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