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					                                                                                      Indonesia
                                                                                        Today
         Vol. IX No.22                                                                                        November 15, 2006


                                                                                                                   Индонезия
                                                                                                                    Сегодня
                                                                                                                    стр. 19-24


                                                                 Contents
Domestic Issues .............................................................................................................................. 3
    POLITICAL ISSUES .................................................................................................................. 3
    1. President: Regional Development to Determine Country's Future .................................... 3
    2. Indonesia Becomes Member of ECOSOC ......................................................................... 3
    3. Yudhoyono Admits He Faces Complex Problems ............................................................ 3
    4. VP: Govt Doesn't Need New Forms of Coordination........................................................ 4
    5. Security Situation in Aceh Conducive for Local Elections: TNI Chief............................. 5
    6. Law on Trafficking Should Be Issued Soon, Legislator Says ........................................... 5
    7. RI to Propose Corruption Eradication Issue at APEC Summit ......................................... 5

    ECONOMIC ISSUES .................................................................................................................. 6
    1. Indonesia Facing Seven Main Economic Development Problems, Says ADB ................. 6
    2. ADB Offers $4.39 Billion Aid To RI Until 2009 .............................................................. 6
    3. Regional Govts to Offer 50 Projects at Investment Forum................................................ 7
    4. Three Foreign Investors Interested in Water Treatment Projects ...................................... 7
    5. Investors from Middle East to Come to Indonesia ............................................................ 7
    6. Asean Should Have Common Standards for Making Goods: Trade Minister................... 8
    7. US Chamber Suggests RI Reform Investment, Tax Regulations ...................................... 8

    SOCIAL AND CULTURAL ISSUES ............................................................................................. 9
    1. Number of Foreign Tourists to Indonesia up in September ............................................... 9
    2. Indonesia Sends 130 Athletes to Asian Games 2006......................................................... 9
    3. RI Choir Group Take Part in International Choir Competition in Spain ......................... 10
    4. President Yudhoyono Expresses Concern Over Indonesian Children ............................. 10
    5. RI Considering Opening More Overseas Tourism Representative Offices ..................... 10
    6. Indonesian Population Growth Alarming: President Says............................................... 11
    7. Balinese to Teach Dances in Japan .................................................................................. 11
    8. Maluku Holds "Ambon Bay Festival 2006" .................................................................... 12
Regional/International Issues ..................................................................................................... 12
    1.      Yudhoyono, Bush to Talk About non-Militay Issues: Minister ...................................... 12
    2.      RI People Should Respect Bush as State Guest: Foreign Minister .................................. 13
    3.      RI to Build Fertilizer Plant in Iran ................................................................................... 13
    4.      President Welcomes Planned Resumption of Six-Party Talks on Korean Crisis ............ 13
    5.      Bush Also to Meet Five Indonesian Public Figures at Bogor Palace .............................. 14
    6.      RI, Singapore Agree to Intensify Coordinated Marine Patrols ........................................ 14
    7.      Tunisian Foreign Minister to Visit RI November 22-24 ................................................. 15

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Vol. IX No.22                                                                                       Indonesia Today

  8.    Japan Expected Return to RI as Main Investment Destination........................................ 15
  9.    Chinese Company Offers to Cooperate with Badung District in Tourism Promotion .... 15
  10.   Indonesia, Australia Sign Lombok Agreement on Security ............................................ 16
  11.   RI's Education Minister Visits Egypt ............................................................................... 17
  12.   RI, Thailand Cooperate in Orchid Marketing .................................................................. 17
  13.   VP Hails Japan's Commitment to Enhancing Economic coop with ASEAN .................. 18




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Vol. IX No.22                                                                      Indonesia Today

    Domestic Issues                                    house to house like book salesmen. Remember
                                                       that they have a lot of choices. Therefore, know
                                                       that you are not only competing with other
 Political Issues
                                                       provinces and districts in Indonesia but also
                                                       with provinces in other countries as well,"
1. PRESIDENT: REGIONAL                                 Yudhoyo said.
   DEVELOPMENT TO DETERMINE                               Meanwhile, DPD sources said the IRIF was
   COUNTRY'S FUTURE                                    participated in by more than 400 investors from
                                                       20 countries around the world.
   Jakarta - President Susilo Bambang
Yudhoyono has said the future of Indonesia is          2. INDONESIA BECOMES MEMBER OF
to be determined by regional development.                 ECOSOC
   Therefore, he said, the ability of regional
administrations and local communities to                   Jakarta - Indonesia has officially become a
synergize and collaborate with investors will          member of the United Nations Economic and
change the future of the nation.                       Social Council (US ECOSOC) thanks to the
   "A country will never make significant              support of at least 184 UN members or over
progress without regional development.                 two thirds of all UN members.
Investors should meet and cooperate with                   Indonesian envoy in the UN Rezlan Ihzar
potentials in the regions. Now is the right time       Djenie , told the press here last weekend that
to build a new Indonesia," Yudhoyono said              Indonesia's winning the support of 184 out of
before more than 400 businessmen from                  the 192 UN members at the UN General
various countries, provincial governors, mayors        Assembly in New York on November 2, 2006
and district heads at the opening of the               indicated international confidence in Indonesia.
Indonesia Regional Investment Forum (IRIF)                 Besides Indonesia, other Asian countries
here on Thursday (Nov 02).                             winning ECOSOC membership for the coming
   On the occasion, the head of state asked the        two-year period consist of the Philippines, Iraq
governors, district heads and mayors from              and Kazakhstan.
across the country and the businessmen to                  ECOSOC is a UN body that is responsible
regard local communities as integral parts of          for the settlement of all social and economic
national development.                                  problems in the UN member countries, and
   "This is our post-crisis deal to become a           functions as an umbrella for other important
strong country in the economic field and in            bodies under the UN, he explained.
democracy," the president said at the forum                Developing countries are currently giving
organized by the Regioal Representatives               impetus to ECOSOG to spotlight international
Council (DPD).                                         economic policies as they consider that this UN
   The opening of the two-day forum was also           body has not shown its optimal role in handling
attended by DPD Chairman Ginanjar                      social and economic problems.
Kartasasmita, Coordinating Minister for                    Rezlan pointed out that US reform has
Political, Legal and Security Affairs Widodo           occurred in all fields, and ECOSOC is
AS, Coordinating Minister for Economic                 demanded to actively struggle for improvement
Affairs Boediono, Finance Minister Sri                 in the welfare and living condition of people in
Mulyani, Trade Minister Mari Pangestu and              the world.
Cabinet Secretary Sudi Silalahi.                           Indonesia will work as one of the ECOSOC
   Yudhoyono also expressed hope that the              members for two years. Members of this UN
direct provincial and district head elections          body now consist of 54 countries. Among the
(Pilkada) would lead to the improvement of the         tasks of this UN council is formulating policies
business climate in the country.                       and recommendations to be forwarded to the
   "Decentralization is not intended to create         UN members and system.
more corruption but to make the local systems
more transparent," the president said while also       3. YUDHOYONO ADMITS HE FACES
asking the governors and district heads to be
more competitive in selling the potentials of             COMPLEX PROBLEMS
their respective regions.
   "Investors will not knock on doors from               Jakarta - President Susilo Bambang
                                                       Yudhoyono said here on Tuesday (Oct 31) that


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Vol. IX No.22                                                                        Indonesia Today

he purposefully formed a presidential working           Representatives Council (DPD), said the
team for program, policy and reform                     reforms should be implemented by the
management as he was facing highly complex              executive led by the President.
problems.                                                  "Members of the cabinet alone can not
    Yudhoyono said in a press conference at the         (conduct reforms). How can this be done by a
Halim Perdana Kusuma military airbase that it           pseudo cabinet comprising three people? It will
is normal for heads of state or government in           create worry and resistance from the ministers
other countries to have such a team.                    who deal with bureaucratic management," he
    The President held the conference upon              said.
arrival at the airport at 8 pm from a four-day             The two shared the view that the President
visit to China.                                         must dismantle the existing mechanism or
    The President as an example mentioned               replace those obstructing the bureauracy.
prime minister's delivery units and presidential           They also reminded the President to be
delivery units in other countries to provide            careful and prevent the team from becoming a
inputs and analyses on programs their                   boomerang.
governments must carry out.
    "Of course, I need such a facility in view of       4. VP: GOVT DOESN'T NEED                    NEW
the complex problems I am facing as                        FORMS OF COORDINATION
president," he added. "I ask for assistance to
check whether a problem has been solved or                 Jakarta - Vice President Jusuf Kalla said
not. This is what I need from this team."               here on Friday (Nov 03) that coordination
    He did not elaborate on the complex                 between him, the president and cabinet
problems facing him.                                    ministers had been running well so far so that
    He, however, said he needed the team to see         there was no need to have another form of
that all the government's programs and agenda           coordination.
are being carried out properly and well.                   "Coordination in the cabinet is built-in. In
    The team supervised by the President and            coordination with the president, the vice
has an office in the State Palace is chaired by         president coordinates and the coordinating
former attoney general Marsilam Simanjuntak,            ministers act accordingly. So there is no need to
who is assisted by Agus Wijoyo and Edwin                have other forms of coordination," he told
Parengkuan. The team was formed on                      newsmen after opening a national-level
September 29, 2006.                                     technical coordination meeting of the Golkar
    The president assured that the team would           Party's electoral success institution.
not be opposed to          his cabinet's working           The vice president made the statement when
process.                                                asked about the results of his meeting with the
    In responding to the President's step in            president earlier in the day to discuss the newly
setting up a new team to manage five programs           formed Working Unit to Manage Reform
and special policies, DR. J. Kristiadi of the           Programs (UKP3R).
Centre for Strategic and International Studies             He said the meeting was just a routine one to
(CSIS) said here Friday that President Susilo           discuss various matters.
Bambang Yudhoyono seemed no longer                         "The president and I agreed that
capable to manage a rotten and corrupt                  coordination in the cabinet is built-in," he said.
bureaucracy.                                               Asked if the UKP3R would be dissolved, he
    "It is understandable. But the President must       said the new body was merely technical in
therefore make reforms in the rotten and                nature while coordination in the cabinet was
corrupt bureaucracy," the political observer            built-in so that there was no need for other
said.                                                   forms of coordination.
    He said the President's step clearly showed            He said the President would further study
an "uncontrolled situation of our bureaucracy".         the technicalities of UKP3R.
Hence Yudhoyono formed the team to make                    The UKP3R issue became a topic of internal
reforms in the bureaucracy, investment, state-          discussions among Golkar Party leaders
owned enterprises, small and medium scale               because the vice president who is also Golkar
firms and in the law.                                   chairman had not been involved in its
    When contacted separately Dr Iwan                   establishment.
Gunawan, an expert staff of the Regional


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Vol. IX No.22                                                                       Indonesia Today

5. SECURITY SITUATION              IN    ACEH              Ansyori pointed out that the practice of
   CONDUCIVE        FOR                 LOCAL          human trafficking, especially babies under five
                                                       years old, was getting out of hand in Batam,
   ELECTIONS: TNI CHIEF
                                                       Karimun and Bali.
                                                           The mystery behind the long-lasting human
   Jakarta - Indonesian National Defense
                                                       trafficking, according to him, was unveiled
Forces (TNI) Commander Marshal Djoko
                                                       recently following government attempts to
Suyanto said so far the security situation in
                                                       eradicate such a criminal practice.
Nanggroe Aceh Darussalam (NAD) had
                                                           "Many cases related to human trafficking
remained relatively conducive for the
                                                       have been uncovered after the government
implementation of local elections scheduled to         intensified its observation and investigation,"
take place on Dec 11, 2006.
                                                       Ansyori said.
   "Hence there has been no request from the
                                                           He opined that illegal human trade was a
police for TNI assistance to secure the                serious criminal act against Human Rights
elections," he told ANTARA after attending a
                                                       principles and thus, the perpetrators should be
dialogue forum with local officials, religious         punished proportionally.
and local community leaders and former
                                                           Therefore, he expressed hope that in the law
members of the Free Aceh Movement (GAM)
                                                       on human trafficking the legal sanction for the
in Banda Aceh Monday (Nov 06).
                                                       perpetrators should be regulated from at least
   He said the TNI was ready to assist the
                                                       five-year jail term to dead penalty.
police in securing the elections and the foreign           Meanwhile, State Minister for Women's
monitoring teams if the police and local
                                                       Empowerment Dr. Meutia Farida Hatta
administrations requested it.
                                                       Swasono said at a workshop on human
   Aceh Acting Governor Mustafa Abubakar               trafficking in Bali on Tuesday that over the past
said all components of the Acehnese people
                                                       few years more than 880 babies had been
were committed to implementing the elections
                                                       traded illegally among Indonesia, Singapore
peacefully and safely based on the peace deal
                                                       and Malaysia.
Jakarta and GAM had signed on August 15,
                                                           "Behind the child trafficking practice are
2005.                                                  organizations that collude smoothly with sea
   "We have achieved much since the signing
                                                       and air transportation agencies," Meutia said.
of the peace deal in Helsinki like the enactment           Therefore, the women's empowerment
of the Aceh administration law, issuance of
                                                       minister called for concerted efforts to eradicate
local regulations and preprartions for thr
                                                       the illegal practice although it was not easy to
regional elections," he added.
                                                       do so because in many cases the babies proved
   According to Abubakar, the achievements
                                                       to have been sold by their own mothers.
indicated that all components of the province's            She said that 36 countries in the Asia-Pacific
community        were really committed to
                                                       region had agreed to establish cooperation in
implementing peaceful elections towards                fighting human trafficking and eradicating
achieving lasting peace in their formerly
                                                       what she called "modern-age slavery."
conflict-torn province.
                                                       7. RI TO PROPOSE CORRUPTION
6. LAW ON TRAFFICKING SHOULD BE
                                                          ERADICATION ISSUE AT APEC
   ISSUED SOON, LEGISLATOR SAYS
                                                          SUMMIT
   Bengkulu - Law on human trafficking
should be immediately put into effect to trap             Jakarta - Indonesia is to propose the issue of
the perpetrators, member of House of                   corruption eradication as one of the topic to be
Representatives (DPR) Commission IX,                   discussed in the upcoming Asia-Pacific
Ansyori Siregar said here on Thursday (Nov             Economic Cooperation (APEC) summit in
09).                                                   Hanoi, Vietnam, on November 17-20, Foreign
   "The bill on human trafficking is being             Affairs Minister Hassan Wirayuda said at the
thought about by the House Commission VIII             State Palace here on Thursday (Nov 09).
and we hope it will be passed into law in 2007,"          "Main issue which has been discussed so far
said the legislator of the Prosperous Justice          at APEC forum is the investment and trade
Party (PKS) faction from North Sumatra.                liberalization. Therefore, we are going to
                                                       propose that corruption eradication efforts be


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Vol. IX No.22                                                                        Indonesia Today

discussed at the summit because based on our             government's hope for private sector role in the
experience, the cooperation to combat                    building of infrastructure projects, additional
corruption practices is sometimes difficult to be        products for non-bank investment would be
established," Wirajuda said.                             necessary.
    The minister explained that the corruptors              Meanwhile, ADB chief economist Ramesh
who fled from one country to another were                Subramaniam said 85 percent of investment
protected and untouched by law.                          projects was funded by banks.
    "Therefore, in the forthcoming APEC forum               The ADB, therefore, would support the
we will fight for a commitment and cooperation           Indonesian government's efforts of solving the
among APEC member countries to eradicate                 problems and help it reach its two aims, namely
corruption and to jointly mitigate natural               stable economic growth and the Millennium
disaster," Wirajuda noted.                               Development Goals.
    He added that the efforts to eradicate                  The Asian Development Bank (ADB) would
corruption was not enough with bilateral                 make efforts to catalyze investments in the
cooperation alone without APEC member                    public and private sectors through reforms in
countries' participation.                                the macro-economy, infrastructure, finance,
    "What we are going to step up in the APEC            infrastructure investment selection, and private
forum is first, a commitment to cooperation              capacity development projects, in order to
within United Nations” global scale. We hope             revive the economic sector and lower the
as if we have ratified it, and the second is about       unemployment rate.
mutual legal assistance including extradition               The ADB would focus its mission on a
matter," he said.                                        balanced, transparent and sustainable fiscal
    With such a cooperation, Wirajuda                    decentralization     to      help     provincial
expressed hope that the assets of the corruptors         administrations restore the quantity and quality
which were stashed away in other countries               of public services.
could be traced.
                                                         2. ADB OFFERS $4.39 BILLION AID TO
                                                            RI UNTIL 2009
 Economic Issues
                                                            Jakarta - The Asian Development Bank
1. INDONESIA FACING SEVEN MAIN                           (ADB) has offered Indonesia US$4.39 billion
   ECONOMIC DEVELOPMENT                                  in foreign aid, consisting of a US$3.82 billion
   PROBLEMS, SAYS ADB                                    loan and US$47.6 million grant.
                                                            These figures indicated a significant
    Jakarta - The Asian Development Bank                 increase, ADB Vice President C. Lawrence
(ADB) said Indonesia faced seven main                    Greenwood said here Tuesday (Oct 31).
problems in its economic development, poverty               The loans would mainly be spent on
alleviation and reducing the unemployment, as            developing infrastructure facilities, improving
projected in the National Medium-Term                    the       financial       sector,     supporting
Development Plan, an official said.                      decentralization, accelerating the attainment of
    The seven main problems include                      Millennium Development Goals (MDG) and
inconducive investment climate, limited                  protecting the environment, he said.
infrastructure    development,      undeveloped             The loans included US$1 billion in loan
financial sector, low decentralization capacity,         commitments made by the Manila-based bank
incorrect management of natural resources, low           in the Consultative Group on Indonesia (CGI)
development spendings and ailing public sector           in June 2006, he said.
management, ADB vice president C. Lawrence                  ADB Financial Program Coordinator Barend
Greenwood said here on Tuesday (Oct 31).                 Frielink meanwhile said that some of the loan
    Greenwood said that the inadequate                   would carry market interest (London Interbank
infrastructure development was the result of             Offered Rate/Libor + 20 basis points) and other
lack of project designing, executing capacity            soft interest (1 percent during grace period and
and limited funding, although the government             1.5 percent later).
has projected an investment of US$65 billion                Under the concession, the loans considered
this year.                                               as soft loans with an annual interest rate of 1-
    According to the ADB, despite the                    1.5 percent must not exceed US$100 million.


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Vol. IX No.22                                                                        Indonesia Today

Thus, the loans that would carry market interest        districts as well as Jambi, Riau, Gorontalo,
would amount to US$3.42 billion.                        North Sulawesi, North Sumatra, and Jakarta
   The loans will become due in 30 years.               provinces would offer a total of 50 projects to
   Chief of ADB representative for Indonesia            the businessmen and investors attending the
Edgar A. Cua said the ADB loans offered to              forum.
Indonesia indicated flexible figures.                      President Susilo Bambang Yudhoyono was
   "These are indicative figures. The amount of         scheduled to open IRIF on Thursday while
the loans to be disbursed will be adjusted to           Vice President Jusuf Kalla would close it on
negotiations or talks with the government," he          Friday.
said.
   Data from the ADB showed that until 2005             4. THREE    FOREIGN     INVESTORS
the bank disbursed US$16.658 billion to                    INTERESTED IN WATER TREATMENT
Indonesia with outstanding loans reaching
                                                           PROJECTS
US$10.911 billion.
   In 2006, the bank's active loans to Indonesia
stood at US$2.718 billion for the completion of            Jakarta - Three foreign investors expressed
                                                        their interest in building water treatment
37 ongoing projects.
                                                        projects offered in the Indonesia Infrastructure
   The data also showed that until 2009 the
                                                        Conference and Exhbition (IICE) 2006, a
amount of loans offered to reform policies
                                                        member of the cabinet said.
particularly at regional government level
reached US$2.4 billion. The loans offered for               Minister of Public Works Djoko Kirmanto
                                                        said here on Thursday (Nov 01) the three firms
investment projects amounted to US$1.517
                                                        had conducted a feasibility study on the
billion.
  The energy and transportation sectors top the         projects.
                                                            The companies are Tyco of Canada, Vivendi
list of projects receiving the loans, accounting
                                                        of France which forged cooperation with a
for 24 percent of the total. Infrastructure and
                                                        local partner and Emy Water of Singapore.
agricultural sectors come in second with 21
                                                            "Vivendi has conducted a feasibility study in
percent.
                                                        Kalimantan, Tyco and Emy in Bandung," he
                                                        added.
                                                            Apart from the companies, the minister said
3. REGIONAL GOVTS TO OFFER 50                           that there were some firms which also had a
   PROJECTS AT INVESTMENT FORUM                         similar interest.
                                                            Under the existing regulations, they must
   Jakarta - At least 10 regional administrations       follow a tender later this month.
of Indonesia will offer more than              50           He     guaranteed     that    the    regional
development projects to businessmen from 20             administrations involved in offering the
countries expected to attend the Indonesian             projects were ready and the central government
Regional Investment Forum (IRIF) to take                would accompany them.
place in Jakarta on Nov 2-3, a legislator
representing the regions said.                          5. INVESTORS FROM MIDDLE EAST TO
   The forum to be officially opened by
                                                           COME TO INDONESIA
President Susilo Bambang Yudhoyono is
designed to boost investment across the
                                                           Jakarta - The government's special envoy to
country, Irwan Gusman, deputy chairman of the
Regional Representatives Council (DPD), said            the Middle East, Alwi Shihab, said here on
                                                        Friday (Nov 03) several investors from that
here Wednesday (Nov 01).
                                                        region were ready to invest in Indonesia.
   The forum would bring together Indonesian
provincial governors, district heads and city              He made the statement after a meeting with
                                                        President Susilo Bambang Yudhoyono to report
mayors with about 800 local and foreign
investors.                                              among other thngs the planned visit of the
                                                        chairman of the Islamic Chamber of
   About 400 energy, tourism, agribusiness,
                                                        Commerce, who is also a prominent Saudi
mining, property and manufacturing companies
from 20 states would participate in the forum.          businessman, November 9-14 to meet with the
                                                        president.
   At least 10 provinces, districts and towns in
Indonesia, namely Subang and Magetan                       Alwi said a number of investors from the



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Vol. IX No.22                                                                        Indonesia Today

Middle East would come to Indonesia to sign             minister said.
memorandums         of    understanding    with            "If we cannot meet domestic standards in
Indonesian counterparts. Two of the                     making goods, we will not be able to compete
memorandums would be between PT Pusri and               with other ASEAN member states," she said.
an Iranian investor and between PT Krakatau                However, in certain cases, there could be a
Steel and a Saudi investor.                             difference in the common standards applied in
    He said an Iranian investor was also                some ASEAN member countries, she said.
planning to cooperate with Pertamina to build              Citing an example, she said "halal"
an oil refinery.                                        (consumable under Islamic law) food and
    The Al Baraqah Islamic Bank meanwhile               beverage certificates issued by Indonesia could
was planning to open a branch in Indonesia in           be different from those issued by Malaysia.
2007 and an investment fund from Qatar also                It was possible that a halal certificate issued
wished to operate in Indonesia.                         by the Indonesian government was not
    Meanwhile, Bank Indonesia (BI)'s director           acceptable to Malaysia, she said.
for bank licenses Yang Ahmad Rizal said his                "Therefore, it is necessary for Indonesia and
office had yet to receive official notice on Al         Malaysia to formulate a joint regulation on
Baraqah's plan.                                         halal food which is acceptable to both
    He said foreign banks were no longer                countries," the minister said.
allowed to open branches in the country except             Mari said common standards for making
if they were prepared to buy up Indonesian              goods among ASEAN member states would be
banks or set up joint ventures.                         beneficial to Indonesia as the country would
    Rizal said he had never received a letter           then be able to enjoy goods of good quality.
from Al Baraqah about its reported plan to                 Indonesia would then also have the right to
operate in Indonesia but it was possible the            reject low-quality imported goods, she said
letter had gone to BI's directorate of shariah          adding that common standards in goods
banking.                                                production would enhance regional free trade
                                                        as adhered to in the ASEAN Free Trade Area
6. ASEAN SHOULD HAVE COMMON                             (AFTA) concept.
   STANDARDS FOR MAKING GOODS:                             "The idea to have common standards for
                                                        making goods in the region will hopefully pave
   TRADE MINISTER
                                                        the way for the setting up of an ASEAN
                                                        Coordinating Committee on Consumer
   Denpasar - Indonesian Trade Minister Mari
                                                        Protection under the umbrella of the ASEAN
Pangestu said ASEAN (Association of
                                                        Secretariat," she said.
Southeast Asian Nations) member countries
                                                           Mari expressed hope that the conference
should have common standards for the                    would produce various agendas for              the
production of goods to protect the rights of
                                                        protection of the rights of almost 600 million
consumers in the region.                                consumers in Southeast Asia.
   "There should be cooperation among
ASEAN member countries to have common
standards for the making of goods in their effort       7. US CHAMBER SUGGESTS RI REFORM
to increase regional trade in accordance with              INVESTMENT, TAX REGULATIONS
their commitment to cooperate for mutual
benefit," Mari said on the sidelines of the 2nd            Jakarta - Indonesia needs to reform its
Conference on Consumer Protection in                    regulations on investment and taxation as well
Southeast Asia held in Kuta, Bali, on Monday            as promote liberalization in the manpower
(Nov 06).                                               sector to lure foreign investors including those
   Delegates from all of ASEAN's 10 member              from the US, a US buisnesman said.
countries,    namely     Brunei    Darussalam,             "The reform is important because the cost of
Cambodia,      Indonesia,    Laos,    Malaysia,         business transactions in Indonesia has to be
Myanmar, Thailand, the Philippines, Singapore,          more     competitive,"     Thomas      Donohue,
and Vietnam , took part in the forum.                   president and CEO of the US Chamber of
   When common goods production standards               Commerce, said at a press conference after a
were applied in ASEAN, the consequence for              meeting with Indonesian Chamber of
Indonesia was that its industries must improve          Commerce and Industry (Kadin) executives.
their own standards in making goods, the                   Donohue and a number of US businessmen


                                                    8
Vol. IX No.22                                                                         Indonesia Today

came to Indonesia as part of a tour of Southeast         processes in Indonesia were now            more
Asian countries before attending an Asia                 transparent.
Pacific Economic Cooperation (APEC) forum
in Vietnam.
    He said legal and court systems in Indonesia          Social and Cultural Issues
had to be strengthened through continuous
corruption eradication efforts. He said the              1. NUMBER OF FOREIGN TOURISTS TO
improvements        were important        because
                                                            INDONESIA UP IN SEPTEMBER
investors always needed legal certainty and
equal treatment.
                                                             Jakarta - The Central Bureau of Statistics
    Investors needed to know that contracts that
                                                         (BPS) said the number of foreign tourists
had been signed were protected by law and any
                                                         visiting Indonesia in September 2006 reached
dispute could be settled in a fair court of law.
                                                         333,500, down by 2.87 percent from a month
    He said he hoped the suggestion would not
                                                         earlier.
be intepreted as foreign investors' pressure on
                                                             It was hard to raise their number coming to
the country. He said all countries in the current
                                                         Indonesia if they were afraid of terrorist
globalized economy where competition was
                                                         bombings which had rocked a number of places
tight needed to pay attention to these matters.
                                                         in Indonesia, Jakarta and the island resort of
    Donohue said he had noticed Indonesia had
                                                         Bali a few years ago, BPS chairman Rusman
made progress in its efforts to improve its
                                                         Heriawan said here Wednesday (Nov 08). "It
bargaining position such as in protection of
                                                         is not easy to persuade foreign tourists to visit
intellectual property rights and corruption
                                                         Indonesia again, especially those who have
eradication.
                                                         undergone the bitter experience of terrorist
    He said the US Trade Representative had
                                                         bombings while they were in this country.
even lowered the country's status from "priority
                                                         Tourism closely linked to security," he said.
watch list" to "watch list" in the protection of
                                                             The number of foreign holidaymakers
intellectual property rights.
                                                         visiting Bali last September reached 124.500,
    "We hope the country's leaders will maintain
                                                         slightly down by 0.21 percent compared to
the momentum. The US business community
                                                         those in August.
wishes to see a successful Indonesia and to
                                                             Cumulatively, the number of foreign tourists
make the country as well as other Southeast
                                                         visiting Indonesia in the January-September
Asian countries important partners," he said.
                                                         period this year reached 2.93 million, a 9.26
     Kadin chairman MS Hidayat meanwhile
                                                         percent decline compared to the 3.23 million in
said that the meeting was a follow-up to the
                                                         the corresponding period of last year.
signing of a memorandum of understanding
                                                             The occupancy rate of star-rated hotels in 10
between the two countries' chambers in May
                                                         tourist destinations reached 48.49 percent in
last year on efforts to improve the US business
                                                         August 2006, which is a 1.87 percent compared
community's awareness about business
                                                         to 46.62 percent last July.
prospects in Indonesia.
                                                             Occupancy rate of star-rated hotels in Bali
     He said the cooperation with the US
                                                         increased from 46.62 percent in July to 47.43
chamber was important as the latter had a total
                                                         percent in August this year.
of more than three million member companies.
                                                             Most foreign tourists coming to Indonesia
     Therefore, he had welcomed the US
                                                         spent 2.44 days in star-rated hotels last August,
Chamber's plan to open a representative office
                                                         a 0.21 day increase compared to that in the
in Indonesia.
                                                         July.
     He said the two countries' bilateral trade at
present had       reached a total value of US$15
billion. But this represented an increase of only        2. INDONESIA SENDS 130 ATHLETES TO
US$1.3 billion over the past five years.                    ASIAN GAMES 2006
     "The US buisness cmmunity is still hesitant
to inrease their investment in Indonesia because            Jakarta - Indoensia has decided to send 130
they still see many obstacles such as piracy of          athletes of 20 different sports to the Asian
copy rights and a weak legal system," Hidayat            Games 2006 in Doha, Qatar, December 1-15.
said.                                                    2006.
     But Hidayat had told them that judicial                The National Sports Commmitee (KONI)



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Vol. IX No.22                                                                          Indonesia Today

and the Ministry of Youth and Sports made the             open National Jamboree of Peace-loving
decision here on Thursday (Nov 01).                       Indonesian Children, attended by first Lady Ani
    Agum Gumelar, general chairman of KONI,               Yudhoyono, Coordination Minister for People's
said Indonesia did not send its track and                 Welfare Aburizal Bakri, and the committee
fielders after evaluating their performance               chairman Sulasikin Murpratomo.
during the national training center.                         Yudhoyono noted that the children across the
    The National Athletics Association (PASI)             country should learn how to live in perfect
has recommended its two female members                    harmony with their peers of different ethnic and
Dedeh Irawati and Triyaningsih to take part in            religious background.
the Asian Games, but the recommendation was                  "The differences are like a painting which is
not successful.                                           made up of different colors with a beautiful
    Indonesia eventually sent its squad to                result," the president told around 4,000 children
compete in football following a heated debate.            participating in the jamboree.
    The Asian Football Confederation hoped                   On the occasion, the head of state called on
Indonesia could send a team to the Asian                  the children to help one another and have social
Games because it would host the Asia Cup                  concern because of intermitent disaster such as
2007, and was absent four times.                          flood, tsunami and earthquake at various places
                                                          in the country in the past few years.
3. RI CHOIR GROUP TAKE PART IN                               Yudhoyono also said the children should
   INTERNATIONAL         CHOIR                            have mutual respect among their peers.
                                                             Some of the children representing the five
   COMPETITION IN SPAIN
                                                          major religions in the event promised to live in
                                                          harmony with each other.
   Jakarta - The 25-member Batavia Madrigal
Singers (BMS) will take part in the 38th
International Choir Competition to be held in             5. RI CONSIDERING OPENING MORE
Tolosa, Spain on November 2-5.                               OVERSEAS               TOURISM
   Kompas daily said on Wednesday (Nov 01)                   REPRESENTATIVE OFFICES
the choir group is now taking part in the
Polyfolia International Choir Festival 2006 held             LONDON - Indonesia is considering the
in Normandy, France on October 28 -                       opening of tourism representative offices in
November 1.                                               more world capitals, including in London, in
   Some 17 choir groups, including four from              2007 as part of its efforts to promote its
France, were selected and invited by the                  tourism world-wide, Tourism and Culture
organizing committee of the festival.                     Minister Jero Wacik said.
   For BMS, which is led by Avip Priatna, the                The representative offices would hopefully
participation would be the second after the first         give the international community more
in 2002.                                                  complete information on Indonesia, Wacik told
   The International Choir Competition,                   a press briefing on the sidelines of the World
meanwhile, will be divided into two categories,           Travel Market 2006 here Tuesday (Nov 07).
namely the folklore and polyphony.                           So far, Indonesia had already opened
   BMS will compete for the two categories.               tourism representative offices in Tokyo,
                                                          Beijing, and Sydney.
4. PRESIDENT          YUDHOYONO                              The information on Indonesia carried by
   EXPRESSES    CONCERN    OVER                           foreign media always tended to be negative
                                                          and this was having a bad impact on
   INDONESIAN CHILDREN
                                                          development of the country's tourism sector,
                                                          the minister said.
   Jakarta - President Susilo Bambang
                                                             Foreign media tended only to report the bad
Yudhoyono has said that if the Indonesian                 things happening in Indonesia such as
children felt unsafe following relentless
                                                          earthquakes, tsunamis and bombings, he noted.
violence and riot in the country, it would inflict           In reality, such things as quakes and
a great loss on the whole lot of people.
                                                          tsunamis only happened in a few areas of the
   "We will feel disadvantaged if our children
                                                          country while other areas in Indonesia were
remain in unsafe situation," the president said           quite safe.
here on Wednesday (Nov 08) in a function to
                                                             When Yogyakarta province was hit by an


                                                     10
Vol. IX No.22                                                                           Indonesia Today

earthquake on May 27, 2006 foreign media                 family planning programs.
reported that Jakarta as the Indonesian capital              "The population growth rate has reached 1.3
city was also rocked by the killer tremor.               pct per year. This figure is higher than that
    Yet nothing had in reality happened in               before the reform era. It is cause for alarm as it
Jakarta as it was located thousands of                   will give an extensive impact, among other
kilometers from Yogyakarta, Wacik said.                  things, on staple food availability, education,
    Unfortunately, he said, foreign television           healthcare and jobs," the President said when
stations showed films on the quake many times            opening of a National Congress on Indonesian
as if the quake had occurred across the country.         People Development here Friday (Nov 10).
    Wacik, therefore, encouraged the foreign                 According to him, if efforts to tackle the
press to visit Indonesia to get first-hand               poupulation growth rate were not really made,
information on the country.                              it was impossible to reach the target of people's
    The minister hinted Indonesian national              welfare improvement.
flag-carrier Garuda Indonesia may eventually                 "We must find new breakthroughs to control
also fly to European countries as they were a            the population growth through family planning
very potential market for Indonesian tourism.            programs. Therefore I call on the National
    "I hope Garuda can fly to Europe again. I            Family       Planning         Board,        regional
have conveyed my hope to Transportation                  administrations        and       non-governmental
Minister Hatta Rajasa," he said.                         organizations to intensify the familiarization of
    Indonesian Ambassador to Britain Marty               family planning to the people," he said.
Natalegawa shared Wacik's hope.                              Yudhoyono recalled what he had found
    Marty said it was high time for Garuda to fly        during his visit to villages, cities, fishermen and
to European cities again, London in parrticular,         remote areas across the country. "I found so
as the number of people in Britain who travel            many children there, and I think about their
abroad every year was the highest in Europe              education, health, jobs and so on," he said.
after that in Germany.                                       Hence, he asked all the relevant authorities
    Indonesia had a chance to raise its number           to take part in supporting the successful
of foreign tourist arrivals if it encouraged             implementation of the familiy planning
British tourists who like to visit Australia and         program so that the Indonesian people became
New Zealand to stop over in Indonesia, he said.          more intelligent. Prosperity could not be
    "With the existence of direct flights from           achieved if the population growth rate was still
London to Jakarta and vice versa, British                high.
holidaymakers bound for Australia and New
Zealand will be able to spend part of their              7. BALINESE TO TEACH DANCES IN
holidays in Indonesia," he said.                            JAPAN
    The number of British people who traveled
overseas was recorded at 10 million this year,              Denpasar- Dewa Putu Berata, chairman of
Marty said adding that the destination of part of        the Cudomani Pengosekan arts centre in the
them was Australia and New Zealand which                 artist village in Ubud area, Bali, was invited to
were Commonwealth member countries.                      teach students and people in general Balinese
    According to available data, the number of           dances in Japan.
British tourists who came to Indonesia in 2005              During his stay in Japan for one month in
was 214,000 in 2005, up from 115,000 in                  December, 2006, Dewa Berata said here
2004.                                                    Sunday he was also expected to be involved in
    Marty said British travelers were potential          workshops at a number of high learning
sources of foreign exchange as they usually              institutions.
spent two to three weeks on overseas vacations.             Japanese people are interested to study
                                                         playing Balinese traditional musics and dances,
6. INDONESIAN POPULATION GROWTH                          he said, adding that a number of arts groups in
   ALARMING: PRESIDENT SAYS                              that country also taught Balinese dances.
                                                            He further said that several universities in
   Jakarta - President Susilo Bambang                    Japan have run programs on Balinese arts, and
Yudhoyono said that the country's population             some Japanese artists who have studied
growth reaching 1.3 pct per year was alarming            Balinese traditional musics and dances
and must soon be lowered by the promotion of             frequently took part in the Bali Arts Festivity.


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Vol. IX No.22                                                                         Indonesia Today

   As many as 31 Japanese artists collaborated           Susilo Bambang Yudhoyono (SBY) would only
with their Balinese counterparts in the 26th Bali        discuss non-military issues in a meeting with
Arts Festivity last June and July bearing the            US President Bush scheduled for later this
theme - peace, mutual respect and                        month.
understanding between the two peoples.                      "We indeed wish to put forward issues
   The collaboration managed to provide sound            relating to cooperation in what could be
entermainment and peace as well as serving as            categorized as 'soft power', namely mutually
a means to avoid conflicts and violence, he              beneficial cooperation in trade, investment and
said.                                                    other sectors that could help us meet the
   The Balinese musics and dances are full of            Millennium Development Goals relating to
noble values to help create a peaceful life, he          poverty eradication, health, education and other
added.                                                   such issues," the minister said after attending a
                                                         plenary cabinet meeting.
8. MALUKU HOLDS              "AMBON        BAY              He said no military issue was likely to be
   FESTIVAL 2006"                                        discussed at the meeting between the two
                                                         leaders at the presidential palace in Bogor,
   AMBON, MALUKU - Maluku Governor                       because politically the issue was considered
Karl Albert Ralahalu officially opened the first         settled.
Ambon Bay Festival 2006 here on Wednesday                   "Politically, there is no problem any more in
(Nov 08), aimed at promoting tourism in the              military-to-military cooperation. If there is, it
former sectarian conflict-torn province.                 will only be technical in nature. We no longer
   The festival was organized in the Ambon               have the problem of an embargo like before. So
Bay area, featuring a number of Maluku art and           it now depends on whether or not we have
cultural performances as well as traditional             money to buy (military equipment from the
food.                                                    US). In other words, politically no further talks
   "The event is aimed at promoting Maluku               on it are needed," he said.
tourism to domestic and international tourists.             Regarding the exact date of President Bush's
We want also to inform the world that Maluku             visit, Hassan said it was still being discussed
is now safe following the end of the sectarian           with the US side. Several media had reported
conflict in 1999," the governor said.                    Bush might arrive on November 20.
   Maluku whose more than 90 percent of its                 Thousands of people have threatened to take
area is made up of waters is rich in marine              to the streets in Jakarta and Bogor to protest the
ecosystem.                                               visit.
   He expressed hope that the first festival ever           "We will announce the date in due course of
held in the province could help attract                  time. Discussions are now still being held about
businessmen to invest in marine-related                  it. We are meanwhile continuing to make the
projects, including marine tourist resorts.              necessary preparations for the visit as befits a
   Maluku waters is clear-blue, free of                  good host," he said.
pollution and rich in marine flora and fauna,               The minister denied suggestions that by
including beautiful and colorful coral reef and          holding        President     Susilo     Bambang
fish.                                                    Yudhoyono's meeting with Bush at the Bogor
   The festival which will last until November           palace and building a helipad there, the
17, will also be highlighted with various                government was providing special facilities
activities, such as a decorated boat competition.        for the visit.
                                                            "We are not giving the visit extraordinary
                                                         treatment. As regards the preparations and
                                                         arrangements we are making, there are indeed
        Regional/International Issues                    things to which we have to adapt such as
                                                         security arrangements which must be made in
1. YUDHOYONO, BUSH TO TALK                               consideration      of    possible    threats    or
   ABOUT    NON-MILITAY ISSUES:                          disruptions," he said.
   MINISTER                                                 He said every state guest was indeed treated
                                                         differently in accordance with the degree of
   Jakarta - Foreign Minister Hassan Wirajuda            possible threats or disruptions the guest might
said here on Monday (Nov 06) President                   possibly face during the visit.


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Vol. IX No.22                                                                            Indonesia Today

                                                           agreements including on construction of an
2. RI PEOPLE SHOULD RESPECT BUSH                           Iranian oil refinery in Indonesia and building
   AS    STATE   GUEST:  FOREIGN                           of an Indonesian fertilizer plant in Iran,"
                                                           Anoushiravan Mohseni, head of an Iranian
   MINISTER
                                                           parliamentary delegation, said after a meeting
                                                           with Vice President Jusuf Kalla here on
   Cirebon - Foreign Affairs Minister Hassan
                                                           Monday (Nov 06).
Wirajuda has called on the Indonesian people
                                                              The fertilizer plant would be located in
to respect US President George W Bush as a
                                                           southern Iran, he said. But he stopped short of
state guest because the latter's forthcoming visit
                                                           revealing when exactly the project would be
to Jakarta on November 20 is to reciprocate the            started.
one made by President Susilo Bambang
                                                              An Iranian trade delegation would soon visit
Yudhoyono in May last year.
                                                           Indonesia to discuss the matter further,
   "Do not look at Bush's planned visit                    Mohseni said.
emotionally but view it in a wider context
                                                              "In the next two or three days, an Iranian
because the US president will come to                      trade delegation will arrive here to discuss the
Indonesia as a state guest who should be
                                                           matter," he said.
respected," Wirajuda said at a press conference
                                                              The two countries signed six agreements,
after the 60th anniversary commemoration of
                                                           including on construction of an Indonesian
the Linggarjati Agreement in Cilimus,
                                                           fertilizer plant in Iran and an Iranian refinery in
Kuningan district, West Java, on Saturday (Nov             Indonesia,      following      Iranian   President
11).
                                                           Mahmoud Ahmadinejad's visit to Indonesia
   The minister said Bush's visit would have a
                                                           some time ago.
positive meaning for Indonesia because the                    "Iran is rich in gas and oil while Indonesia
agenda of his talks with President Susilo
                                                           has vast tracts of fertile land," Mohseni said.
Bambang Yudhoyono implied US assistance
for Indonesia's basic and higher education,
various immunisation programs, bird flu and                4. PRESIDENT WELCOMES PLANNED
natural disaster mitigation efforts, tsunami early            RESUMPTION OF SIX-PARTY TALKS
warning systems, biodiesel development and                    ON KOREAN CRISIS
information technology.
   "Pay close attention to the agenda of the visit            Jakarta - President Susilo Bambang
because it will not only improve bilateral                 Yudhoyono has welcomed the planned
relations between Indonesia and the United                 resumption of the six-party talks on the Korean
States but also have direct implications for the           Peninsula problem, notably the North Korean
government's efforts to serve the people's                 nuclear weapons issue, Foreign Affairs
interests," Wirajuda said.                                 Minister Hassan Wirayuda said here Tuesday
   He said Indonesia was cooperating with the              (Nov 07).
US, Germany, Japan, South Korea and China to                  "The president welcomes the plan of the six
develop tsunami early warning system                       parties to reconvene," the minister told the
networks along coasts across the country.                  press after accompanying the head of state in
   "The Indonesian people will gain many                   receiving the credentials of the newly-
positive and beneficial things from the Bush-              accredited North Korean ambassador            to
Yudhoyono meeting ," the minister said.                    Indonesia, Jong Chun Kun.
                                                               Hassan said the talks were very important as
3. RI TO BUILD FERTILIZER PLANT IN                         they were meant to overcome the crisis over
   IRAN                                                    North Korea's nuclear capability.
                                                              The six parties involved in the talks are the
   Jakarta - Indonesia will soon build a fertilizer        United States, Japan, Russia, North Korea,
plant in Iran in return for the construction of an         South Korea and China.
Iranian oil refinery in Indonesia, a visiting                 "We see the six-party talks as a very
Iranian parliamentarian said.                              important forum to find a solution to the crisis
   "We discussed ways to enhance bilateral                 in Korea," he said.
relations with Vice President Jusuf Kalla. In the             The United States and a few other Western
past two years, we signed a number of                      countries had accused North Korea of
                                                           conducting a uranium enrichment program that


                                                      13
Vol. IX No.22                                                                        Indonesia Today

would enable it to use nuclear arms and thus             investment in Indonesia, Dino said.
endanger the world community. But North                      "US investment in Indonesia during the past
Korea had denied the charge saying its uranium           six years was made in a total of 205 projects
enrichment program was for peaceful purposes,            worth US$1 billion," he said adding that most
namely to produce electricity.                           of the projects were in the energy sector.
     Meanwhile, asked about Indonesia's                      Also to be discusssed by the two presidents
preparations for participation in the Asia               would be matters relating to biofuel, education,
Pacific Economic Cooperation (APEC) Summit               bird flu eradication, information technology as
in Vietnam later this month, Hassan said                 well as natural calamity handling, specifically
Indonesia would bring up two issues at the               installation of early warning systems in Java
forum , namely trade liberalization and efforts          island.
to fight corruption.                                         Dino said Yudhoyono and Bush would not
    Trade liberalization had become a                    specifically touch on bilateral military
commitment of all APEC member countries, he              cooperation as Washington had already lifted
noted.                                                   its military embargo on Indonesia.
    Developed countries in APEC plan to open                 He said the Bogor presidential palace was
their markets to the products of APEC-                   chosen as the venue of the Yudhoyono-Bush
affiliated developing countries by 2010 while            talks so that Bush's visit would not cause heavy
the latter would open their markets to the goods         traffic congestion and other inconveniences to
of developed countries by 2020.                          the public as had happened in other countries
   APEC member countries had agreed to open              where the US president was visiting.
their markets to each other by lowering their                Noting that US Secretary of State
import duties to 0-5 percent.                            Condoleeza Rice and Defense Secretary
                                                         Donald Rumsfeld had visited Indonesia earlier
5. BUSH   ALSO  TO   MEET   FIVE                         this year, Dino said the reason for the
   INDONESIAN PUBLIC FIGURES AT                          frequency of top US government officials' visits
                                                         to Indonesia could be Washington's esteem of
   BOGOR PALACE
                                                         Jakarta as one of its strategic partners.
   JAKARTA - US President George Bush will
have a meeting with five Indonesian public               6. RI,  SINGAPORE    AGREE   TO
figures and attend a banquet with many more at              INTENSIFY COORDINATED MARINE
the Bogor presidential palace when he visits                PATROLS
Indonesia on November 20, an Indonesian
government spokesman said.                                 JAKARTA - The                Indonesian and
   "We and the US government have already                Singaporean governments have agreed to
agreed on the names of the five public figures           intensify their "Indosin" coordinated marine
(who will meet Bush)," presidential spokesman            patrol scheme by increasing the frequency of
Dino Patty Djalal said at the presidential palace        the patrols from three to four times a year with
here Tuesday (Nov 07).                                   a view to reducing piracy for the benefit of sea
   When he visited Bali in 2003, Bush held a             transportation users.
dialog with Indonesian religious leaders. This              This was one of the results of the 27th
time, the US leader would talk with public               Indonesia - Singapore Joint Working Group
figures from the education and health sectors,           (ISJWG) meeting held last week in Singapore,
Dino said.                                               First Marshal Imam Sufaat, head of the
   President Susilo Bambang Yudhoyono                    Indonesian delegation to the meeting, told
would take part in the meeting between Bush              ANTARA on Tuesday (Nov 07).
and the five public figures, Dino said adding              He said during the April-October period in
that Yudhoyono and Bush would hold a joint               2006, the two countries conducted joint patrols
press conference after the meeting.                      three times and during none of these patrols did
   Dino did not give further details of Bush's           any piracy occur in the areas covered by their
visit to Indonesia but said Bush would arrive            coordinated patrol scheme (ISCP).
here some time within the next two weeks.                   "We can say there has been a continuous
   Yudhoyono and Bush would in their talks               decline in piracy cases, especially with the
focus on six issues including Indonesia's idea           existence of the three-nation coordinated patrol
that the US government should increase US                scheme of Malsindo in the Malacca Strait


                                                    14
Vol. IX No.22                                                                            Indonesia Today

involving Indonesia, Singapore and Malaysia,"             which would enable the two countries to
he added.                                                 continue their consultations on ways and
   To participate in the coordinated patrol               means to further strengthen their bilateral
scheme, the Indonesian Military/Police use                cooperation, the release added.
three warships, one police patrol boat and one
Batam speed boat while Singapore uses two                 8. JAPAN EXPECTED RETURN TO RI AS
warships and three patrol boats.                             MAIN INVESTMENT DESTINATION
   During the meeting, the Indonesian
delegation was led by First Marshal Imam                      Osaka - The Indonesian government hopes
Sufaat and the Singapore delegation by the                Japanese businessmen and and their
head of Joint Operations of the Singapore Air             government would again make Indonesia their
Force, Col. Ng Chee Meng.                                 overseas priority investment destination
   At the meeting, it was also agreed that the            following a plan to sign Economic Partnership
two countries would conduct coordinated                   Agreements later this month, a senior diplomat
patrols four times a year starting in 2007,               said.
namely in the periods of January-March, April-                "In the past few years, their priority to invest
June, July-September and October-December.                to Indonesia has reduced because there are
                                                          more potential competitors," Jusuf Anwar,
7. TUNISIAN FOREIGN MINISTER TO                           Indonesian ambassador to Japan, said after a
   VISIT RI NOVEMBER 22-24                                briefing to Japanese businessmen here
                                                          Thursday (Nov 09).
   Jakarta - Tunisian Foreign Affairs Minister                According to him, Japanese investors are
Abdelwaheb Abdallah will visit Indonesia from             interested in such countries as Vietnam, China,
November 22 to 24, 2006 for bilateral political           Russia and India.
consultations, an official report said.                       He also said that Japanese businessmen
   "Tunisia and Indonesia will hold the                   actually wished to return to Indonesia but
bilateral political consultations and the 8th             instead they turn to other countries offering
Joint Commission meeting in late November                 attractive incentives.
on the occasion of the visit by Abdelwaheb                    Therefore, the former minister of finance,
Abdallah, Minister of Foreign Affairs of                  said Indonesia must be serious to improve its
Tunsia," the Tunisian Embassy in Jakarta said             investment climate to attract Japanese
in a press release here on Thursday (Nov 09).             investors.
   Tunisian and Indonesian leaders and                        The businessmen are waiting for the law on
officials shared the same approach to Islamic             investment and want to see tax packages and
issues and values of freedom, tolerance and               customs facilities the Indonesian government
solidarity, the release said.                             would provide to them and to other
   Several agreements link Tunisia to                     businessmen.
Indonesia related to trade, promotion and                     Jusuf said that Indonesia should look at the
protection of investments, avoidance of double            regulations and facilities provided by
taxation, tourism, technical and scientific               Singapore, India and Vietnam, for comparison.
cooperation, information, training, religious
affairs and bilateral consultations, the release          9. CHINESE COMPANY OFFERS TO
said                                                         COOPERATE      WITH     BADUNG
   Tunisia's exports to Indonesia         mainly
                                                             DISTRICT IN TOURISM PROMOTION
consisted of fertilizers (phosphoric acid), dates,
textiles, mechanic and electrical components
                                                             DENPASAR - A Chinese company in
and baby food. Indonesia's exports to Tunisia
included plywood, textiles, electronics,                  Guangzhou, Dong Fang International Travel
                                                          Service Co. Ltd , has offered to cooperate in
glassware, toys, timber products and tea,
according to the release.                                 tourism promotion with Badung district in the
                                                          Indonesian island resort of Bali, a local official
   Two-way trade relations reached a total
                                                          said.
value of less than US$100 million in 2005.
   Meanwhile, President Ben Ali was looking                  Badung district chief AA Gde Agung spoke
                                                          about the offer after receiving a visiting team
forward to a visit to Indonesia which he was
hoping to make at the earliest opportunity                from the Dong Fang International Travel



                                                     15
Vol. IX No.22                                                                         Indonesia Today

Service led by the company's vice general                countries' relations in which sensitive and
manager, Lin Die Liang.                                  complicated problems can be overcome with a
   At the meeting. Gde Agung thanked the                 stronger basis and clear guidelines," he said.
Chinese company team for the offer and                      Technical institutions will implement the
proposed that the Chinese company help the               agreement under the auspices of the Indonesia-
Badung district administration in opening an             Australia Ministerial Forum (IAMF), the
information network on Bali tourism in general           minister said.
and in Badung district in particular.                       Wirajuda also believed that Australia would
   "We are ready to cooperate with the Dong              not support nor become a basis of any separatist
Fang Group in tourism promotion as part of our           movements in Indonesia.
efforts to make more Chinese tourists come to               In the meantime, Australian Foreign Minister
Bali," Gde Agung said.                                   Downer hoped the agreement could become a
   He said up to August this year, a total of            basis for the future relations between the two
12,000 Chinese tourists had come to Bali and             countries.
expressed hope that through the cooperation                 The Australian foreign minister said his
with the Chinese travel agency, the number               country should realize that Indonesia has made
would increase in the coming years.                      much progress in dealing with human right
   Meanwhile, Lin Die Liang said Guangzhou               problems.
was one of three major Chinese cities which                 He pointed out that Australia fully
were geographically only separated from Bali             recognized Indonesia's sovereignty and did not
by a relatively short distance.                          want to see a disintegration of Indonesia, it
   She said tourists from Guangzhou preferred            would only adversely affect regional stability.
to visit Badung district in Bali because it had             Meanwhile, a member of the House of
various tourist objects boasting international           Representatives (DPR)'s Commission I, Djoko
standard facilities.                                     Susilo, said on the occasion that he has doubts
   "However, many people in Guangzhou still              when it comes to the implementation of the
do not know about the beauty of many things              agreement.
in Bali but through the proposed cooperation in             "The House does not question the concept of
tourism promotion it is hoped this will change           the agreement but we always have problems
and more Guangzhou residents will be                     when it comes to the implementation of an
prompted to visit Bali," Lin Die Liang said.             agreement," said Djoko who also expressed
   She also invited the Badung district head to          disappointment over Downer's unclear answer
visit Guangzhou and directly introduce his               to a question on asylum seekers.
district's tourist potentials to Chinese people.            Earlier, Hassan Wirajuda said the Lombok
   "We are prepared to facilitate the presence of        Agreement was not a defence pact.
the Badung district head in Guangzhou to give               "The agreement is not a defence pact
tourist information about Bali," Lin Die Liang           compared with the agreement we signed in
said.                                                    1995 which was similar to a defence pact," he
                                                         said. The 1995 agreement was abrogated in
10. INDONESIA,  AUSTRALIA   SIGN                         1999.
    LOMBOK AGREEMENT ON SECURITY                            The agreement which consists of 10 articles
                                                         also stipulates that every conflict caused by
   Mataram, W Nusatenggara - Indonesian                  misperception in implementing it shall be
Foreign Minister Hassan Wirajuda and his                 settled amicably by mutual consultation or
Australian counterpart Alexander Downer                  negotiation.
signed here on Monday (Nov 13) their Lombok                 The agreement refers to the main principles
agreement on security cooperation.                       in an effort to enhance the bilateral relations
   The signing of the agreement showed the               like the principles of mutually respecting
mature relations between Indonesia and                   territorial sovereignty and unity, non-
Australia following a number of problems                 interference in domestic affairs, no support of
between the two neighbouring countries,                  separatist movements and no intention to make
Wirajuda said after signing the agreement                their respective territories basis for separatist
which would serve as an umbrella for other               movements.
bilateral cooperation agreements.                           According to Wirajuda, the agreement on
   "This also marks a new era in the two                 security cooperation was based on Indonesia's


                                                    16
Vol. IX No.22                                                                         Indonesia Today

need to incorporate Australia's recognizion of            made a tour of several Egyptian schools.
Indonesia's sovereignty and a statement not to              The Indonesian embassy's Education and
support any separatist movement in Indonesia,             Culture Attache Slamet Shaleh told ANTARA's
into an agreement.                                        correspondent in Cairo that the main purpose of
   The agreement was also intended to serve as            the minister's visit to Egypt was to participate
a means to accommodate and develop the                    in the Sixth High Level Group Meeting on
existing     bilateral    security   cooperation,         Education for All.
especially on efforts to improve capabilities in             He is also scheduled to hold a bilateral
the fields of defence, law enforcement in                 meeting with Egyptian partner Minister Yousry
combatting terrorism, intelligence, maritime              El-Gamal, and pay a courtesy call on Al-Azhar
security, aviation safety, prevention of mass             Grand Syeikh Prof Dr Mohamed Sayed
destructive weapons, sense of emergency on                Tantawi.
natural     disasters    and     cooperation    in           Minister Sudibyo will also talk before the
international fora and efforts to improve mutual          Indonesian students and community in Egypt.
understanding between the two peoples on                  Many Indonesian students are pursuing their
security affairs.                                         study in Egyptian universities, especially the
   Indonesia and Australia in early 2006 agreed           world's oldest Islamic University of Al-Azhar,
to establish bilateral security cooperation in the        which offers scholarships to Indonesian young
two countries' territories. The cooperation was           people annually.
once disturbed when the Australian government
issued temporary visas to 42 people from                  12. RI, THAILAND COOPERATE                   IN
Indonesia's easternmost province of Papua.                    ORCHID MARKETING
   The Indonesian government lodged a strong
protest against the issuance of the temporary                 JAKARTA - The Indonesian government is
visas and recalled the Indonesian ambassador to           working closely with Thailand in an effort to
Australia.                                                put its orchid products on the international
   John Howard's government then submitted a              markets because Thailand has a better market
law on immigration known as the Pacific                   and transportation network.
Solution policy to the Australian Parliament.                 "Though Indonesia is host to the biggest
The Pacific Solution is Australia's policy not to         orchid species in the world, its orchid
process asylum seekers in Australia but in three          technology and market expasion is far behind
other places in the Pacific, namely, Papua New            those of Thailand," Agriculture Minister Anton
Guinea, Nauru and Christmas Island.                       Apriantono said after attending a seminar on
   However, the Pacific Solution was                      national orchids here on Tuesday (Nov 14).
disapproved by the Australian Parliament.                     The minister said that he was visiting
                                                          Thailand last year where he asked orchid
11. RI'S EDUCATION MINISTER VISITS                        business owners in that country to cooperate in
    EGYPT                                                 the marketing. He said that they hailed the
                                                          minister's offer and Indonesia would take
  CAIRO - National Education Minister                     follow up steps by inking a memorandum of
Bambang Sudibyo began a five-day visit to                 understanding with them in the near future.
Egypt on Monday (Nov 13) at the invitation of                 Anton said that Thiland had extensive
Egyptian    Elementary and      Intermediate              market networks and routine promotional
Education Minister Prof Dr Yousry Saber                   activities. The country was great in
Hussein El-Gamal.                                         transportation of its orchids because the Thai
  Minister Sudibyo was accompanied by three               Airways gave priority to the Thai orchid
director generals of the education ministry,              exports.
namely Director General for Improvement of                    According to the minister Garuda Indonesia
Education and Educator Quality Fasli Jalal,               could not yet give such a priority.
Director General for Elementary and                           Besides transportation matter, Indonesia was
Intermediate Education Management Prof Dr                 still lacking of orchid seedling development
Suyanto, and Director General for Informal                and laboratory support.
Education Dr Suryadi.                                         Therefore, beginning this year, his side
  Upon his arrival in Cairo on Monday (Nov                would begin to develop orchid research center
13) morning, the minister and his delegation              in a number of regions in cooperation with the


                                                     17
Vol. IX No.22                                                                      Indonesia Today

agricultural schools of a number of universities.        while the remaining five states, among other
   He said that the government would provide             things Cambodia, Laos and Myanmar were not
funding for orchid producers with low-interest           yet better off.
rate credits.                                               The cooperation would focus on the
   "We have allocated some Rp255 billion                 improvement and empowerment of small and
without collateral for the development of orchid         medium scale businesses, he said.
in 2007," the minister added.

13. VP HAILS JAPAN'S COMMITMENT TO
    ENHANCING ECONOMIC COOP WITH
    ASEAN

   Jakarta - Vice President Jusuf Kalla has
hailed Japan's commitment to enhancing its
economic relations and cooperation with
ASEAN member countries.
   In his opening address to the 32nd ASEAN-
Japan Business Meeting at his vice presidential
office here on Tuesday (Nov 14), Kalla said the
economic cooperation was for the improvement
of the ASEAN people's welfare.
   ASEAN, with a total population of around
500 million, was a very potential region for
Japan to establish economic ties, he said.
   "Much more cooperation and hard work are
needed to develop the (ASEAN) region
economically," he said.
   According to Kalla, ASEAN considered the
economic cooperation with Japan crucial as it
would bring a lot of benefit to the ASEAN
member states.
   He said that the cooperation needed political
and social stability in the ASEAN region.
However, political and social stability would
only be achieved if the economic condition
developed well, he added.
   Japanese Ambassador to Indonesia Shin
Ebihara when reading out the speech of
Japanese Prime Minister Shinzo Abe said
earlier that Japan had a strong commitment to
developing economic ties with ASEAN.
   Japan supported all efforts to step up the
relations to create good economic growth in the
ASEAN region, as the regional grouping was a
strategic and important partner for the East
Asian country.
   Meanwhile, Chairman of the 32nd ASEAN-
Business Meeting AM Kusumo said that Japan
and ASEAN had agreed to intensify
cooperation in the economic field with the aim
of narrowing an economic gap among the
ASEAN member states.
   Five ASEAN countries, such as Indonesia,
Malaysia, Thailand, the Philippines and
Singapore were considered quite advanced,


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