IBRAHIM ISA FOCUS Tuesday. November 18, - TopicsExpress

IBRAHIM ISA FOCUS Tuesday. November 18, 2014 ------------------------------------- INDONESIAS PRESIDENT – JOKOWI - MEANS BUSINESS * * * Jokowi Proves Himself as a Man of ActionNov 18, 2014 – Jakarta Globe Editorial In less than a month since starting his five-year term and just back from his overseas trips, President Joko Widodo wasted no time in enacting a much-needed measure to trim fuel subsidies — saving money that could be used for other programs in helping to stimulate the economy. Prices for subsidized gasoline and diesel rose by an average Rp 2,000 (16 cents) effective today. It comes at a time when crude oil prices have been in decline, thanks to a boost in US production. And the increases help to narrow the prices for regular fuel — one step away from reducing the fuel subsidies altogether. Finance Minister Bambang Brodjonegoro estimated before Monday night’s announcement that the subsidized fuel price increases would save Rp 120 trillion in the 2015 state budget. That’s money that could be used to build roads, airports and seaports — giving a boost to a dilapidated and stretched network of infrastructure from Sumatra to Papua. The economy needs a jump start. Growth in the third quarter was 5 percent, which was the slowest pace in five years. And it would require strategic measures to achieve the 7 percent annual growth rate Joko had talked about during his presidential campaign. Still, at the very least on Monday, the subsidized fuel price increases are a start in that direction. With billions of dollars shifting from subsidized fuel, more teachers can be hired at state-run schools, Indonesians will be able to afford health care, and Joko can realize his vision for a maritime nation. It’s often been said that one can judge a person’s character by his or her actions. In this case, Joko has shown that he means business in fostering the Indonesian economy, to help improve the lives of millions of people across the country. Jokowi Signals Break With ‘Thousand Friends’ Foreign Policy By Robertus Wardhy, Nov 17, President Joko Widodo listens during the 2nd Asean-US Summit, part of the 25th Asean and Related Summits at the Myanmar International Convention Center in Naypyitaw, Myanmar on Nov. 13, 2014. (EPA Photo/Azhar Rahim) Jakarta. Following a week of foreign visits President Joko Widodo has returned to Indonesia and given a strong signal he plans to break from his predecessor’s a “thousand friends, zero enemies” foreign policy. The president, fresh from a series of multilateral meetings last week — including APEC in Beijing, the Asean Summit in Myanmar and the G-20 in Australia — told reporters upon arrival in Jakarta on Sunday he would prioritize diplomatic relationships that provided significant benefits for Indonesia. “Our [foreign] policy is free and active, befriend all countries but [we will put first] those who give the most benefits to the people,” Joko said. “What’s the point of having many friends but we only get the disadvantages? many friends should bring many benefits.” The comments follow similar sentiment from foreign minister Retno Marsudi last month. Indonesia’s first female foreign minister said “pro-people” diplomacy would be the soul of Indonesia’s foreign policy, a shift in focus from former president Susilo Bambang Yudhoyono’s principle of a “thousand friends, zero enemies” — which was translated into the country’s increasing presence and roles in international forums. Joko said on Sunday Indonesia would still maintain communication with all countries, but would not invest much time in diplomatic relationships that were not beneficial. “It it’s not beneficial, I won’t do it,” Joko said. “We’ll still meet but not too much.” Last week’s meetings were the first chance for Joko — a former furniture seller and small-city mayor — to show his diplomatic chops since taking office on Oct. 20. Joko used his time at the Asean summit to showcase his vision of turning Indonesia, as the world’s largest archipelago, into a global “maritime axis”. At the G-20 summit in Brisbane at the weekend he again pitched how he would make Indonesia’s business climate friendlier for investors by implementing tax reforms and cutting fuel subsidies to pay for infrastructure investment. Jokowi to Keep ‘Rowing Between Two Rocks’ Jakarta Globe Ediotrial -- Nov 11, 2014 While President Joko Widodo is at the center of attention during the Asia-Pacific Economic Cooperation meeting in Beijing this week, with major powers offering friendship, cooperation, investment and even aid to Indonesia, he should be able to maximize the nation’s gains while at the same time maintain our foreign policy independence. There’s no such thing as a free lunch and all these offers will come with strings attached. You get something but give up something else in exchange. In the case of Indonesia, beside natural resources and a huge market, it is its freedom and neutrality. Indonesia doesn’t want to be seen by the United States, Japan, South Korea and Australia as pro-China or pro-Russia, while it must convince the Chinese and Russian leaders that it doesn’t take sides with Western powers and its allies. It’s not quite a bipolar world like we had during the Cold War era — at least not yet. But competition between the United States and its allies on one side and China on the other over geopolitical influence and resources has intensified in this part of the world. Indonesia sooner or later will be caught in the middle. It may be forced to choose sides. As Joko scraps his predecessor’s “thousand friends, zero enemies” credo, he must come up with a pragmatic strategy to maintain a free and active foreign policy. In this regard, he can borrow from Mohammad Hatta, the country’s first vice president. In his 1948 speech titled “Rowing Between Two Rocks,” Hatta said choosing between the West and East would only intensify the Cold War tension, thus Indonesia would review any situation case by case to attain peace and conflict resolution. Applying it to the current rivalry, Indonesia should be part of the solution, and mediate for peace while maximizing the outcome for its people. Jokowi Eyes Infrastructure Focus With Fuel Subsidy Cut Bitter Medicine: The president says savings will go toward more productive sectors By Dion Bisra & M. Al Azhari -- 18.11.14 Jakarta. Indonesia raised subsidized fuel prices by an average 33.6 percent as it seeks to shift subsidy spending to productive sectors. “The government decided to divert the subsidy spending,” President Joko Widodo said during a live television broadcast at the State Palace on Monday night. He added that his administration planned to allocate more money on infrastructure, education and health. Joko said the new price of subsidized fuel would be effective from 00:00 on Tuesday. The prices of the widely used low-octane gasoline, or Premium and subsidized diesel were increased by Rp 2,000 (16 cents) per liter. Indonesians will now pay Rp 8,500 per liter for Premium and Rp 7,500 per liter for subsidized diesel. Previously, Premium was sold at Rp 6,500 per liter and subsidized diesel at Rp 5,500 per liter. News reports previously stated that the government planned to increase subsidized fuel prices by Rp 3,000 per liter on average. Part of President Joko Widodo’s infrastructuire plan includes building more roads with money saved from the fuel subsidy. (Antara Photo/Wahyu Putro A) “The increase is moderate compared to recent increases because we currently see a declining trend in global oil prices,” Energy and Mineral Resources Minister Sudirman Said said. On Monday, Brent crude fell by 73 cents to $78.68 a barrel after Japan, the world’s fourth-largest crude oil importer, slipped into recession and as Saudi Arabia officials reiterated that the oil price should only be subject to supply and demand. Finance Minister Bambang Brodjonegoro said that by raising the subsidized fuel prices and slashing fuel subsidy spending, the government would now have more than Rp 100 trillion in additional budget funding in its war chest that can be spent on infrastructure, welfare and development of the nation’s maritime sector. The minister said the fuel price increase would save Rp 120 trillion in the 2015 budget. Fuel subsidy spending in next year’s budget is set at Rp 276 trillion, up from 246.5 trillion in the 2014 revised budget. Bambang said the state budget deficit can fall to below 2.2 percent of the estimated gross domestic product next year. Indonesia’s inflation rate rose to 4.5 percent in October from 4.3 percent a month earlier, as people already anticipated the subsidized fuel increase and traders jacked up the prices of goods, including food, before the fuel price increase was announced. Minister Bambang believes inflation may soar to 7.3 percent by the end of this year from an estimated 5.3 percent in the revised state budget. Development targets Sofyan Djalil, the coordinating minister for economic affairs, said in a press briefing on Monday that the government needs to build so much infrastructure, that “we must save some of our budget for productive spending.” National Development Planning Minister Andrinof Chaniago said between 2015 and 2019, the government plans to build 2,600 kilometers of new roads; 1,000 kilometers of new toll roads; 15 airports; 24 sea ports; and expand the railway network by 3,258 kilometers. The government also plans to procure 50 ferries to deploy in remote areas and to improve public transportation in 29 cities. In the energy sector, the government plans to build two new refineries with a total capacity of up to 600,000 barrels of oil per day. It also plans to upgrade the existing refineries of state energy firm Pertamina in Cilacap, Central Java, and Balongan, West Java. The government further plans to add up to 35,000 megawatts to state utility PLN’s installed electricity capacity of nearly 52,000 megawatts. Andrinof said the development would prioritize infrastructure “for the public good.” By doing that, the electrification ratio is expected to be boosted to 96.6 percent of the nation’s population by 2019 from the current 81.4 percent. A gasoline station attendant fills fuel into her customer’s car in Jakarta. (Reuters Photo/Supri) Shielding the poor The government has registered about 15.6 million poor households that will require financial protection from the knock-on effects of higher fuel prices. Rini Soewandi, the state enterprises minister, said the government would issue one million chip-based cards this year, starting today, which the government will use to transfer cash directly to the poor to help pay for education, health care and welfare. The remaining 14.6 million poor will get the cards next year, but in the mean time they will receive cash transfers under the old system where local administrations register poor households and distribute cash to them directly. Efforts to reduce fuel subsidy spending were also made in the energy sector. Indonesia spends massively on oil imports, while oil exports have dwindled due to falling production. Government data show that Indonesia recorded a $27.7 billion crude-oil output deficit last year, more than seven times the 2004 levels due to a lack of investment in exploration activities. Energy Minister Sudirman said on Sunday that his ministry had established a special committee to fight what he described as a secretive cabal, or “mafia,” which illegally benefits by acting as brokers in the oil and gas sector. The committee has been tasked with initiating reforms that include reviewing policies and the bureaucratic systems within the energy sector. It will table a possible revision of the 2001 Oil and Gas Law and create a healthy investment climate, although details are not yet forthcoming. Additional reporting by Reuters * * * Feuding Coalitions in House Sign Peace Deal By Jakarta Globe Nov 17, 2014 KIH and KMP representatives show off drafts of the peace pact signed at the parliament on Monday. (Antara Photo/Ismar Patrizki) Jakarta. The two rival coalitions in the House of Representatives have signed a peace pact supposedly ending the long-standing feud between them over leadership positions of commissions and legislative bodies. The agreement between President Joko Widodo’s Awesome Indonesia Coalition (KIH) and Prabowo Subianto’s Red-White Coalition (KMP) was signed at the House of Representatives (DPR) building at 1:30 p.m on Monday, news portal vivanews.co.id has reported. “After this signing, there will be no more KIH and KPM at the House of Representatives,” senior Indonesian Democratic Party of Struggle (PDI-P) politician Pramono Anung said, adding the DPR could hold a plenary session on Tuesday. The minority KIH bloc was represented at the meeting by Pramono Anung and fellow PDI-P politician Olly Dondokambey, while the five-party opposition KMP was represented by the chairman of the National Mandate Party (PAN), Hatta Rajasa, and Golkar politician, Idrus Marham. Details of the settlement are unclear, however, the signing is a major step toward overcoming the protracted split which has seen the DPR deadlocked. The rift was prompted by the five-party opposition Red-White Coalition (KMP)’s move to control all leadership positions in the legislature, appointing its own members as House speakers as well as chairmen of all 11 House commissions. Since the vote of no confidence, the KIH has boycotted nearly all House meetings and sessions, stopping the legislature from deliberating important issues including the planned subsidized fuel price increase, the ratification of a recently passed government regulation in lieu of law on regional elections, and choosing a replacement for the outgoing deputy chairman of the Corruption Eradication Commission (KPK). Limited Power-Sharing Pact Signed by Rival House Coalition Leaders By Hizbul Ridho, Nov 18, 2014 Representatives of the House minority Awesome Indonesia Coalition and the majority Red-White Coalition hug it out after signing a pact that aims to quash rival leadership claims. (Antara Photo/Ismar Patrizki) Jakarta. The feud between rival coalitions over leadership of the House of Representatives appeared to reach a resolution on Monday, as representatives of both sides signed a limited power-sharing pact. The agreement between leaders of the Awesome Indonesia Coalition (KIH) that supports President Joko Widodo and the Red-White Coalition (KMP), which supported Prabowo Subianto, was signed at the House of Representatives building on Monday after weeks of tense negotiations . “We have finally reached an agreement,” House speaker Setya Novanto said. “We can now carry on our duties as one. No more KIH and KMP. Only the Indonesian House of Representatives.” In attendance at the signing were negotiators of both coalitions, the House speaker and four deputies, as well as and representatives of all ten House party caucuses. Under the agreement’s terms, the Awesome Indonesia Coalition appeared to have succeeded in extracting limited concessions from the Red-White Coalition, which controls a majority of the House’s seats — and currently all of its leadership positions. The Red-White coalition agreed to add a deputy chairman position to each of the 17 House oversight bodies, which include 11 legislative commissions and five special committees. These posts are slated to be awarded to the minority coalition in exchange for dropping demands that the House’s leadership be subject to a revote. To implement the agreement, the House will need to amend the Law on Legislative Bodies, known as MD3, and the House’s rules of procedure. Lawmakers plan to begin debating the amendments today. Vice President Jusuf Kalla earlier said the president will quickly endorse the House’s MD3 amendments once enacted. Partly prompting the majority coalition’s compromise was the Awesome Indonesia Coalition’s announcement of its own “shadow” House leadership after a motion of no-confidence in late October. The minority Awesome Indonesia Coalition, which controls just 246 of the House’s 560 seats, has boycotted nearly all the legislature’s meetings and sessions in an apparent attempt to obstruct deliberations on issues ranging from ratification of a recently passed presidential regulation in lieu of law reinstating regional elections to replacement of the Corruption Eradication Commission’s deputy chairman. The minority coalition had previously sought amendments to the MD3 Law that would have curtailed the House’s power to instigate the president’s impeachment, a proposal that drew wide condemnation from KMP members and nearly scuttled the power-sharing pact. * * *