138549_Susilo Bambang Yudhoyono

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Susilo Bambang Yudhoyono

Biography

Family:

Born September 9, 1949 in Tremas, Pacitan, East Java, Indonesia to Soekotjo (a retiredlieutenant) and Siti Habibah Married Ani Bambang Yudhoyono (daughter of a general in the Indonesian Army) in 1965. Children:

o Agus Harimurti, attended the Indonesian Military Academyo Edhie Baskoro, ran for Parliament in 2009

See page(s) 3, 4

Education:

Indonesian Armed Forces Academy (1973)o Awarded the Adhi Makayasa Medal, by the Pres. of Indonesia upon graduation

Weber University, St. Louis - M.A. (1991), L.L.D. (2005) Bogor Agricultural University, Indonesia PhD (2004) Thyammasat University, Thailand D (2005)

See page(s) 3, 4

Career:

Yudhoyono served in the Indonesian army from 1973 to 1999. During his time in the army, he

was the chief Indonesian Military Observer to Bosnia (1995-96) and the chief of the Armed Forces Social

and Political Affairs Staff (1997-1999), and rose to be Chief Military Commander of Jakarta and South

Sumatra. In 1999, he retired from the military to become the Indonesian Minister of Mining and

Industry. The following year, he became the Indonesian Minister of Political, Social, and Security Affairs.

He was released from that position and subsequently returned to it in 2001, serving for three more

years. At that time, he resigned from the cabinet to be elected President of Indonesia in 2004 over theincumbent Megawati Sukarnoputri. His initial goals of reducing governmental corruption and enhancing

Indonesia's political and economic standing were overshadowed by the Southeast Asia tsunami, but he

managed to stabilize rice prices and grant amnesty to rebels in the northwestern province of Aceh. In

2005, he was named one of the 25 Stars of Asia by Business Week Magazine. See page(s) 3, 4

He won reelection in 2009 in a landslide, the first Indonesian president to ever win two terms. A

month after reelection, Yudhoyono was the target of a failed assassination attempt mounted by a

militant Islamic group. That same year he was also named one of the Worlds Most Influential People by

Time Magazine. His anti-corruption crusade continued through his second term though he drew

criticism for a scandal in late 2009 that saw two senior officials resigned after their controversial arrests

of members of Indonesia's anti-corruption commission. See page(s) 3, 4

Works and Awards:

He is the author of Coping with the Crisis--Securing the Reform (1999),Revitalization of the

Indonesian Economy: Business, Politics and Good Governance (2002), Taman Kehidupan (Garden of

Life) (2004), and The Making of a Hero (2005). is also a songwriter and singer, evidenced in his album

My Longing for You, released in 2007. See page(s) 3, 4


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Current Events:

Domestic

He has announced a focus on modernizing Indonesias road, port, and electricity infrastructure,which has been holding back economic growth. See page(s) 9

The Press Council has criticized him for scolding the media for relying on texts messages assources on the graft scandals surrounding his political party. He has, however, supported new

media on the regional level, saying it will help unify ASEAN. See page(s) 9, 13

Corruption scandals within his party have harmed his popularity. See page(s) 15 Along with the Indonesian House, he has favored increases in fuel subsidies to offset rising costs,

despite the fact that there are plans to cut the budget for the program. See page(s) 23

International

Is currently meeting with other ASEAN leaders in Bali. See page(s) 15 Has stated that talks with China about the South China Sea are a priority. See page(s) 14 Has made comments in favor of greater military ties with Malaysia. See page(s) 17 Faces accusations of deeply entrenched human rights violations. See page(s) 19 Has positioned Indonesia to become a leader in climate change policy through unilateral

declarations of emissions goals, among other things. See page(s) 20


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Who's Who in the World

22nd, 23rd, 24th, 25th, 26th, 27th Editions; Who's Who in Asia, 1st Edition

Copyright 2011 Marquis Who's Who LLC. All Rights Reserved

May 5, 2011

Susilo Bambang Yudhoyono

Relatives: Son of Raden Soekotjo and Siti Habibah; Married Ani Bambang Yudhoyono, 1965; children:

Agus Harimurti, Edhie Baskoro.

GENDER: Male

September 9, 1949 Tremas, Pacitan, Indonesia

Office: Office of Pres, Veteran 17 Istana Merdeka, 10110, Jakarta Indonesia

* * * * * * * * * * * * * * * CAREER INFORMATION * * * * * * * * * * * * * * *OCCUPATION: President of Indonesia

Mil. tng. Fort Benning, Ga., Fort Leavenworth, Kans.; Indonesia's chief mil. observer Bosnia, 1995-96

pres., Republic of Indonesia, 2004 - .

min. security & polit. affairs, Republic of Indonesia, 2002 - 2004.

min. security & polit. affairs, Republic of Indonesia, 2000 - 2001.

min. for mines, Republic of Indonesia, 2000.

ret. from active mil. svc. as gen., Indonesian Nat. Army, 2000.

chief Armed Forces Social and Polit. Affairs Staff, Indonesian Nat. Army, 1997 - 2000.

including territorial comdr. Jakarta and South Sumatra, Indonesian Nat. Army, 1973 - 2000.

served in numerous positions with, Indonesian Nat. Army, 1973 - 2000.* * * * * * * * * * * * * EDUCATIONAL INFORMATION * * * * * * * * * * * * * *

grad., Indonesian Armed Forces Acad., 1973

MA, Webster U., St. Louis, 1991

LLD, Webster U., St. Louis, 2005

PhD, Bogor Agrl. U., Indonesia, 2004

D, Thammasat U., Thailand, 2005

* * * * * * * * * * * * * * * * OTHER INFORMATION * * * * * * * * * * * * * * *

CREATIVE WORKS:

Singer: (albums) My Longing for You, 2007

AWARDS: Recipient Adhi Makayasa medal, Pres. of Indonesia, 1973; named one of 25 Stars of Asia,

BusinessWeek Mag., 2005, The World's Most Influential People, TIME mag., 2009

LANGUAGE: ENGLISH

LOAD-DATE: July 5, 2011


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Gale Group: Susilo Bambang Yudhoyono

Copyright 2010 All rights reserved

Newsmaker

March 2010

* * * * * * * * * * * * * PERSONAL INFORMATION * * * * * * * * * * * * *Born on September 9, 1949, in Picitan, East Java, Indonesia; son of Raden Soekotjo (a retired lieutenant)

and Siti Habibah; married Kristiani (Ani) Herawatti, 1965; children: Agus Harimurti, Edhie Baskoro.

Office--Republic of Indonesia, Office of President, Bina Graha J1, Veteran 17 Istana Merdeka, Jakarta,

10110, Indonesia.

* * * * * * * * * * * * * * * CAREER INFORMATION * * * * * * * * * * * * * * *

OCCUPATION:

President

Served in Indonesian army, 1973-99

commander, United Nations Military Observers and Indonesian Military Contingent in Bosnia-

Herzegovina, mid-1990s

chief, Armed Forces Social and Political Affairs Staff, 1997-99

retired from the military to become Indonesian Minister of Mining and Energy, 1999

minister, Political, Social, and Security Affairs, 2000

released from position and later rehired, 2001

resigned from cabinet position, elected president of Indonesia, 2004

reelected to a second term, 2009. Author of books and articles including: Coping with the Crisis--

Securing the Reform, 1999

Revitalization of the Indonesian Economy: Business, Politics and Good Governance, 2002

Taman Kehidupan (Garden of Life), 2004

The Making of a Hero, 2005. Songwriter on albums including My Longing for You, 2007.

* * * * * * * * * * * * * EDUCATIONAL INFORMATION * * * * * * * * * * * * * *

Indonesian Military Academy, 1973

Webster University, St. Louis, MO, M.A., 1991

Bogor Agricultural University, Bogor, Indonesia, Ph.D., 2004.

* * * * * * * * * * * * * * * * OTHER INFORMATION * * * * * * * * * * * * * * *

CREATIVE WORKS:

DISCOGRAPHY: My Longing for You, 2007.

WRITINGS: Coping with the Crisis--Securing the Reform, 1999.(Editor) Revitalization of the Indonesian Economy: Business,

Politics and Good Governance, 2002.

(With others) Taman Kehidupan (Garden of Life), 2004.

(With others) The Making of a Hero, 2005.


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AWARDS: Numerous Indonesian military honors

25 Stars of Asia, BusinessWeek magazine, 2005.

INTERESTS:

SIDELIGHTS:

Retired general-turned-politician Susilo Bambang Yudhoyono--sometimes known by the nickname SBY--

has achieved two significant firsts in his native Indonesia. When he won election to the presidency over

incumbent Megawati Sukarnoputri in 2004, Yudhoyono became the first directly elected chief executive

in Indonesian history. Five years later, Yudhoyono made history again when he was re-elected to that

office in a landslide victory-- the first time an Indonesian president had ever won re-election. A few

weeks before his victory, the president declared that "I am optimistic that in the next five years we will

be doing many things for a better future," according to Norimitsu Onishi of the New York Times. A

month after reelection, in August of 2009, however, Yudhoyono was the target of a failed assassination

attempt mounted by a militant Islamic group. His inauguration to a historic second term came two

months later.

Yudhoyono's tenure has been marked by a series of reform efforts and liberal policies aimed at reducinggovernmental corruption and enhancing Indonesia's political and economic standing. These initial goals

were temporarily subsumed by the crisis following the tsunami that devastated much of Southeast Asia

in December of 2004. Nevertheless, Yudhoyono succeeded in bringing increased political and economic

stability to Indonesia through such measures as the stabilization of rice prices and an amnesty for rebels

in the northwestern province of Aceh. During his second term he continued work to mitigate

government corruption, with two senior officials resigning in November of 2009 following their

controversial arrests of members of Indonesia's anti-corruption commission. In addition to his political

achievements, Yudhoyono is known for his mental capabilities. The "thinking general" has published

numerous books and articles, including 1999's Coping with the Crisis-- Securing the Reform, 2002's

Revitalization of the Indonesian Economy: Business, Politics and Good Governance, 2004 anthology

Taman Kehidupan (Garden of Life), and 2005's The Making of a Hero.

Born on September 9, 1949, in Pacitan--a small town located in the eastern portion on the Indonesian

island of Java--Yudhoyono came from a well-off family with a background in the military; his father,

Raden Soekotjo, retired from the Indonesian army as a lieutenant. In 1965, Yudhoyono married another

child of a military family, general's daughter Kristiani (Ani) Herawatti. The couple has two sons, Agus

Harimurti and Edhie Baskoro. Both of these sons have themselves followed in their father's footsteps,

with the elder repeating the president's success at the Indonesian military academy and the younger

running for election to the nation's parliament on the ticket of Yudhoyono's Demokrat Party in 2009.

Yudhoyono attended Indonesia's military academy, graduating at the top of his class in 1973. The young

officer then served largely in the politically tumultuous region of East Timor over the next several years,

advancing briskly through the ranks of the army. During the conflict in Bosnia-Herzegovina in the mid-

1990s, Yudhoyono served as Commander of the United Nations Military Observers and Commander of

the Indonesian Military Contingent. By the time of East Timor's formal independence from Indonesia in

the late 1990s, Yudohoyono had become the Chief of Territorial Affairs for the region.

This rise was supported by Yudhoyono's continuing education abroad. In 1976, the future president

completed the first of two military training programs at Fort Benning, Georgia; he returned to the

United States for a second stint with the Infantry Officer Advanced Course in 1982. Yudhoyono is also a


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1991 graduate of the United States Army's Command and General Staff College, located at Fort

Leavenworth, Kansas. That same year, Yudhoyono completed a master's degree in business

administration and management from St. Louis, Missouri's Webster University. In 2004, the then-retired

military officer rounded out his education with a doctorate in Agricultural Economics from the Bogor

Institute of Agriculture, West Java, Indonesia.

During the declining years of the regime of military leader Suharto in the late 1990s, Indonesia was

rocked by public protests, violence, and economic turmoil. Although Yudhoyono served as chief of the

army's social and political affairs division, he emerged largely unscathed from this challenging era even

as some of his colleagues faced criminal charges for their actions. In 1999, he retired from the military to

join the cabinet of Indonesian President Abdurrahman Wahid as Minister of Mining and Energy,

receiving his fourth general's star as a purely honorary measure soon after. The following year

Yudhoyono advanced to become Wahid's Minister for Political, Social, and Security Affairs; however, this

position proved short-lived; Wahid, who was soon to undergo impeachment proceedings, requested

that Yudhoyono declare a state of national emergency. Yudhoyono refused to do so, and Wahid fired

him in February of 2001.

After Megawati ascended to the presidency later that year, she rehired Yudhoyono to serve as her ownMinister of Political, Social, and Security Affairs. In this role, he dealt with several domestic crises,

including bringing a swift close to an investigation into a series of terrorist bombings on resort hotels in

Bali during 2002 and 2003. In March of 2004 Yudhoyono resigned his post after publically sparring with

Megawati and her husband--and after becoming the 2004 presidential candidate of the recently formed

Demokrat Party. Neither this resignation nor his earlier dismissal soured Yudhoyono's career. In fact, the

president's BBC News profile noted that "being forced from office under successive presidents seems to

have enhanced Mr. Yudhoyono's reputation as a man of principle, willing to sacrifice his own ambitions

for the values he believes in."

The retired general mounted his first campaign for Indonesia's top political office in the spring of 2004.

Running on what his Web site described as a platform to create a "more just, more peaceful, moreprosperous, and more democratic Indonesia," Yudhoyono emerged as a strong candidate for the

presidency due to his educational and professional background. His reputation for adhering to his

principles even at the expense of his own personal advancement resonated with the Indonesian

electorate. "Even though SBY was a senior member of a deeply unpopular government, he has come to

be seen as a victim of that government rather than part of it," explained executive director of the

Indonesian Survey Institute Denny Ja to Rachel Harvey of the BBC. The general public--voting for

president for the first time in Indonesian history--gave Yudhoyono a wide advantage in the first round of

voting, and he successfully carried the presidency over Megawati in a run-off election in September of

2004.

Entering office the following month, Yudhoyono affirmed his commitment to growing Indonesia's

economy and eradicating government corruption. "Indonesia will be a democratic country, open,

modern, pluralistic, and tolerant," he declared in his inaugural speech, according to Jane Perlez in the

New York Times. Before the new president could begin implementation of his goals, a devastating

tsunami struck much of southeast Asia, including Indonesia. The president's response drew the respect

of observers, and soon he overcame the natural disaster to embark on numerous reforms that touched

much of Indonesia's economic and political worlds. Some of these measures, such as easing controls on

fuel prices, courted potential disapproval from the country's electorate. Yet Yudhoyono's successes at

stabilizing rice prices, overseeing a peace agreement ending a long-standing rebellion in the province of


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Aceh, and uprooting corruption at all levels of Indonesian government won him great public approval.

The president also found time to pursue a perhaps unexpected project: an album of music. In 2007,

Yudhoyono released My Longing for You, a collection of songs "written to relieve the tedium of being

stuck on an airplane, flying from summit to summit," according to Maclean's, and performed by some of

the nation's most popular singers.

Entering 2009, Indonesia enjoyed a stable economy much changed from what it experienced at the

beginning of the president's term in 2004, despite the global economy downturn. This economic

improvement along with Yudhoyono's popular anti-corruption measures contributed to a successful

election season for the parliamentary candidates running on the ticket of the president's Demokrat

Party. Months later, Yudhoyono himself enjoyed a boost from the public when his re-election campaign

ended in a landslide victory in July of 2009. He garnered more than 60 percent of the popular vote,

carrying 28 of Indonesia's 33 provinces; runner-up Megawati won just 27 percent of the vote, while

sitting vice-president Jusuf Kalla carried 12 percent.

In early August of 2009, however, continuing Islamist militant attacks in Indonesia struck close to the

president's home-- literally. As part of a larger raid on terrorists operating in the country, Indonesian

security forces discovered a truck containing explosives and bomb-making materials scant miles fromYudhoyono's residence. Although the police raid nipped the attack in the bud, Indonesian authorities

stated that two men believed to be connected to notorious Malaysian terrorist Noordin Muhammad

Top intended to drive the truck to the president's home and detonate the explosives as part of a suicide

bombing attack on Yudhoyono. "Our president was a target," Indonesian National Police chief General

Bambang Hendarso Danuri confirmed to Seth Mydans of the New York Times. Two months after the

seizure of these explosives, an unharmed Yudhoyono was inaugurated for his second five-year term.

Continuing efforts to stamp out top-level government corruption again made headlines during the fall of

2009. In late September of that year, Indonesian police arrested Chandra Hamzah and Bibit Samad

Rianto, two prominent deputy chairmen of the nation's Corruption Eradication Commission, or KPK, in

what was widely considered a move in a long-standing feud between that commission and the policeand attorney general's offices. The pair were accused of taking bribes from corruption suspect Anggodo

in return for allowing him to leave Indonesia. Public outcry against the arrests was swift and loud, with

popular opinion clearing the accused and placing blame squarely on the shoulders of the police and

attorney general's staff. In response to the situation, Yudhoyono launched a formal investigation, and

government officials along with Anggodo's brother, Anggodo Widjojo, appeared in court in early

November. Shortly after the initiation of this investigation, the Economist observed that "the scandal is

overshadowing all Mr. Yudhoyono's plans for economic reform, and denting the mood of optimism that

followed his re-election."

Indeed, details that emerged throughout the investigation gained great attention in Indonesia, and

Yudhoyono drew criticism for not being active enough in the proceedings. However, after wiretapped

conversations played in court revealed that Anggodo Widjojo had conspired with the police and

attorney general's office to create false evidence implicating the suspended officials, Yudhoyono had

little choice but to step in. He called for the resignation of two high-ranking government officials. In

early December, Yudhoyono announced that both of the suspended deputy chairmen were reinstated in

their positions with the KPK. A follow-up investigation by the KPK into Anggodo Widjojo and others

involved in the scandal was widely anticipated to be undertaken soon after their return to work.


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With the corruption scandal behind him, the president is expected to continue to his agenda of reform

throughout Indonesia's political and economic system. Regardless of the success of these reforms, the

leader's second term will be his last: Indonesian law limits presidents to two terms.

LANGUAGE: ENGLISH

LOAD-DATE: July 27, 2010


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Yudhoyono Plans Big, Bold Steps for Next Five Years

Straits Times Indonesia | July 22, 2011

http://www.thejakartaglobe.com/home/yudhoyono-plans-big-bold-steps-for-next-five-years/454593

President Susilo Bambang Yudhoyono delivers a speech during the opening ceremony for the 44th

Association of Southeast Asian Nations (Asean) foreign ministers meeting in Nusa Dua, Bali, on Tuesday.Yudhoyono said in an exclusive interview published on Friday that he has big plans for Indonesia. (AFP

Photo/Sonny Tumbelaka) President Susilo Bambang Yudhoyono delivers a speech during the opening

ceremony for the 44th Association of Southeast Asian Nations (Asean) foreign ministers meeting in

Nusa Dua, Bali, on Tuesday. Yudhoyono said in an exclusive interview published on Friday that he has big

plans for Indonesia. (AFP Photo/Sonny Tumbelaka)

Indonesia has immense potential and ambitions as an emerging-market superstar, but is stymied by

basic infrastructural potholes. Choked roads, overcrowded ports and unstable electricity supply make it

difficult for businesses to operate as well as move their products. But Indonesia plans to change all that

in the next five years.

The government intends to step up the building of modern infrastructure, pouring billions of dollars into

new roads, ports and electricity networks as part of a push to eradicate the main bottlenecks that stand

in the way of the country's economic growth.

A long-awaited law allowing the government to acquire land for public use more easily will be passed

this year.

The plans were laid out by Indonesian President Susilo Bambang Yudhoyono this week, in a rare

interview with The Straits Times.

"In the next five years or so, we will be able to accelerate the process of our infrastructure building," he

said. "It is strongly needed for improving our investment."

It was an upbeat tone that the President maintained throughout the wide-ranging interview, which he

gave on the sidelines of a meeting of Asean leaders in Bali this week.

But the Indonesian leader also tempered his optimism about the development plans with an

acknowledgment of the many challenges Indonesia faces, including the need to get local politicians on

board and to put in place a clear legal framework and "responsive bureaucracy".

Yudhoyono's plans come on the heels of an ambitious economic masterplan that he laid out in May,

aimed at turning Indonesia into one of the world's top 10 economies by 2025.

The masterplan is part of his vision of "strong, balanced and sustainable growth", under which the

government wants to draw more investments and promote exports, so that the country can generate

revenue to fund more programs for the poor and help small businesses grow with micro-credit and

other schemes.

A key plank is to attract US$468 billion (S$ 568 billion) in investments over the next 14 years, including

for infrastructure.


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There is an added measure of urgency for the Indonesian leader to get things going in the next few

years. Now midway through his second term, the 61-year-old is constitutionally barred from running

again and must step down by 2014.

While Yudhoyono has been largely popular since he came to power in 2004, he has taken some heat

from critics who say he is too slow - or is unwilling to expend political capital - in pushing through

difficult reforms.

To be sure, Indonesia under his charge survived the 2008 recession well, and today has a seat at the

table occupied by the world's most influential powers, as a Group of 20 member. Last year, it recorded a

respectable 6.1 per cent growth and is expected to do slightly better at 6.5 per cent this year.

But South-east Asia's largest economy - and the world's 17th-largest - continues to suffer from crippling

infrastructure gaps, stultifying bureaucratic delays and corruption.

The lack of infrastructure is by far the biggest obstacle to faster development.

In addressing this, Yudhoyono outlined a two-pronged strategy during the interview.

One, increased government spending.

He said: "I am pleased to say that our economic growth keeps increasing. Our revenue is also increasing.

So we could allocate more resources in our national budget to build more infrastructure."

According to estimates by analysts, Indonesia spent just 3.9 per cent of its gross domestic product in

2009 on infrastructure - well below the 10.4 per cent spent by China and the 7.5 per cent by India.

Complementing this is boosting public-private partnership. The government, said Yudhoyono, willencourage investors to bid for "commercially viable" projects.

"We will try to distinguish what kind of infrastructure is to be built by the government using our national

money, and what kind of infrastructure that is commercially viable, so we can attract investors - both

domestic as well as foreign - in a nice partnership," he said.

So far, he added, state-owned enterprises are already planning to invest more than US$100 billion in

infrastructure and other projects.

And private-sector partners "are committed already to investing more or less equal to what the state

enterprises will invest", he disclosed. These partners, he said, included China, India, Japan and South

Korea.

Yudhoyono said he is confident that such investments will help Indonesia attain its US$468 billion target.

"In my calculation it will reach that kind of number," he said. "And when we are able to grow our

economy across the country continuously, there will be many investors coming to Indonesia because

they know that we have great opportunities, that the business is moving."


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One major sticking point that the government has long encountered in building more infrastructure is

the difficulty it faces in procuring private land for public use.

A lack of clear regulations on land ownership often holds up the state's bid to acquire land for

infrastructure, especially in rural areas, with plans to build much-needed roads blocked by villagers

refusing to vacate their homes.

But the Indonesian government is addressing the problem with the long-awaited Land Acquisition Bill,

which streamlines the process. It was to have been passed in March but is still being discussed in

Parliament now.

"We expect it can be adopted this year," said Yudhoyono. "Both Parliament and the government have

agreed to speed up the process of the adoption of our new law. With this, we will ensure that our

national land agency is more effective in doing its business."

The nub of the President's difficulties arguably lies in the political arena.

The young and vast democracy's multi-party and decentralized political system often left policy-makingmired in politics.

While Yudhoyono secured more than 60 per cent of the vote when he was re-elected in 2009, his

Democratic Party got just 26 per cent of seats in Parliament, limiting his influence in the Lower House.

Governors and mayors at the local and regional government levels are also directly elected, so getting all

parties on board on Jakarta's agenda takes time and political acumen.

Still, buffeted though he may be by pressures from different directions, Yudhoyono maintains an air of

calmness - he is known for composing music and singing as a form of destressing - as he dissected his

own approach to tackling such challenges; by getting the "masses to ensure that regional government

policies and regulations really follow our policies and regulations".

He said thoughtfully: "So this is our challenge, this is the real issue, but I believe along with the maturity

of democracy, all those problems will be resolved over time.

"I should not give an empty promise by saying, 'Well, everything is okay, well, it will be solved soon'. I

will not say that, but the time is correct and we have progressed along the way."


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Yudhoyono rapped for comments on media

Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/13/2011 12:05 PM

http://www.thejakartapost.com/news/2011/07/13/yudhoyono-rapped-comments-media.html

The Press Council on Tuesday criticized President Susilo Bambang Yudhoyono for blaming the media for

relying on text messages as news sources in the graft scandals surrounding his political party.

Text messages are a valid source for news stories as long as the media meets principles of covering both

sides, council deputy chairman Sabam Leo Batubara said.

However, he added, media outlets should verify all allegations made in text messages.

Information for the media could come from many sources, including text messages. It is a matter of

technology, Press Council member Agus Sudibyo told the The Jakarta Post on Tuesday.

It is the right of media outlets to use text messages as the source of a news story. The media outlet

knows whether the source is reliable, Batubara said. Of course, the media outlet is responsible for

verifying all allegations made in the text message.

Batubara said Yudhoyono should use existing mechanisms to settle disputes over news stories.

Under the mechanism, people or groups who feel disadvantaged by a news story have the right to seek

clarification directly from the media outlet.

If that fails, the case can be brought to the Press Council. The final option would be legal recourse. Such

mechanisms have been effective so far, he said.

Batubara said Yudhoyonos statements at a press briefing on Monday escalated the issue as he did not

directly blame any specific media outlet.

I was surprised by Yudhoyonos generalization that all media outlets did wrong by publicizing the text

messages allegedly sent by Nazaruddin.

At the press briefing, Yudho-yono said the media continued to discredit the Democratic Party by basing

reports only on text messages purportedly sent by Nazaruddin, the former treasurer of the Democratic

Party and a fugitive graft suspect.

I dont understand this. The news stories sole cited source are text messages, which then make

headlines. The messages allegedly sent by Nazaruddin which has not been proven were publicized

to cast a bad light on the Democratic Party, Yudhoyono said.

Nazaruddin fled to Singapore in May following growing allegations against him implicating him of

involvement in a graft scandal surrounding a Southeast Asian (SEA) Games construction project.

Since leaving Indonesia, the media has received numerous text messages from a person claiming to be

Nazaruddin. The messages alleged that the scandal also involved other high-ranking members of the

Democratic Party.


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New media can help boost ASEAN unity

Abdul Khalik, The Jakarta Post, Nusa Dua, Bali | Wed, 07/20/2011 10:54 PM

http://www.thejakartapost.com/news/2011/07/20/%E2%80%98new-media-can-help-boost-asean-

unity%E2%80%99.html

President Susilo Bambang Yudhoyono blasted local news media for using BlackBerry Messenger and text

messages as sources for stories.

But at the regional level, he countered his stance, advising ASEAN country members to maximize the use

of new technology and media to boost unity.

In his opening speech at the ASEAN Ministerial Meeting (AMM) in Jakarta on Tuesday, Yudhoyono said

ASEAN must seize the opportunities offered by new technologies and social media such as Facebook and

Twitter to boost contact among the citizens of ASEAN countries to help turn the bloc into a genuine

community.

He said that, for the first time and in contrast to just four decades ago, ASEAN members faced a reality

where the frequency and depth of contact between citizens through cable television, email, Twitter

and Facebook far exceeded the formal interactions between government officials.

Indonesia, being the worlds second-largest Facebook nation and third-largest on Twitter, knows this

very well, he told the foreign ministers, officials and journalists.

Indonesia is home to the second-largest number of Facebook users after the US, with 24 million users.

Reports said that about 20 percent of Internet users in Indonesia visited twitter.com last year.

There is no government in the world that has all the answers to this new trend. ASEAN, too, must get

into the act. We must be creative and open minded in harnessing the power of technology to promote

people-to-people contact.

He added that establishing an ASEAN blogger community was one innovative idea and that more should

follow.

ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,

Thailand and Vietnam, a collective population of 600 million.

The more developed member-states such as Indonesia, Malaysia, Singapore and Thailand have

witnessed explosive growth in the use of social networking and micro-blogging sites, even if overall

Internet penetration remains low.

In the heat of mounting corruption troubles involving his Democratic Party, Yudhoyono blamed the

media and outsiders who relied on BlackBerry messages, text messages and online news to spread lies

against his party.


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During his speech in Jakarta on Tuesday, he again warned that the question was not only of how the

groupings members could advance and expand contact between citizens, but also how it could manage

that contact in ways that would reduce complications and add benefits and opportunities.

This is because when millions of people engage across borders as we have seen in bilateral contexts

there are bound to be issues and problems, he said.

Human rights watchdogs have criticized Yudhoyono for approving a 2008 law that sets tough penalties

for online defamation, saying it has been used to intimidate critics and whistle-blowers.

South China Sea talks with China a priority: Yudhoyono

04:45 AM Jul 20, 2011

http://www.todayonline.com/World/EDC110720-0000041/South-China-Sea-talks-with-China-a-

priority--Yudhoyono

NUSA DUA (Indonesia) - A code of conduct governing actions in the contentious South China Sea shouldbe a priority for the Association of South-east Asian Nations (ASEAN) and China, said Indonesian

President Susilo Bambang Yudhoyono yesterday.

Mr Yudhoyono was speaking in Bali in his keynote speech at the ASEAN Foreign Ministers' meeting this

week, where territorial disputes and flare-ups in the South China Sea are expected to take centre stage

at Asia's largest security forum, after Vietnam and the Philippines accused China of interfering in their

efforts to explore for oil and gas.

"We need to finalise those long overdue guidelines because we need to get moving to the next phase,"

Mr Yudhoyono said.

"The more we are able to do this, the better we can manage the situation in the South China Sea. I am

sure that soon we will be able to commence discussion on a regional code of conduct in the South China

Sea."

Mr Yudhoyono also noted ahead of closed-door talks that it has been nine years since the 10-member

ASEAN and China agreed to negotiate a code of conduct in the potentially resource-rich waterway.

"Things do not necessarily have to be this slow. We need to send a strong signal to the world that the

future of the South China Sea is a predictable, manageable and optimistic one," he said, adding "some

progress" was long-overdue.

The five-day ASEAN summit culminates in Saturday's ASEAN Regional Forum security dialogue, which

will include officials from China, Japan and the United States.

US Secretary of State Hillary Clinton, now in India, will be among those attending. China's Foreign

Minister Yang Jiechi and Mr Pak Ui-Chun of North Korea will also be present.

Mrs Clinton was expected to touch on the issue, but only indirectly, sources in Washington told

reporters.


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Meanwhile, China yesterday protested a planned trip by five Filipino lawmakers to a Philippine-occupied

island in the Spratlys, saying it would do nothing but undermine regional stability and "sabotage"

bilateral ties.

Chinese Embassy spokesman Ethan Sun said China would relay its "great concern" to the Philippine

government over the plan by five House of Representatives, members led by Representative Walden

Bello, to fly to what Manila calls Pag-asa Island today.

Pag-asa, which has been occupied by Filipino troops and a small civilian community, lies 480km west of

the western Philippine province of Palawan. AP

ASEAN meetings kick off in Bali Island

Updated: 2011-07-22 15:54

http://www.chinadaily.com.cn/video/2011-07/22/content_12963516.htm

Asia's largest security forum has begun in the Indonesian resort island of Bali where 10 members of

ASEAN have gathered for a series of meetings in the coming week. Indonesian President Susilo Bambang

Yudhoyono rang a traditional Balinese gong to launch the annual gathering.

ASEAN partners China, Japan and the Republic of Korea will also attend the meeting. The US, the

Democratic People's Republic of Korea and the European Union are among the other participants. The

44th ASEAN Ministerial Meeting, the Post Ministerial Conference, and the 18th ASEAN Regional Forum

will take place between July 19 and 23.

There will also be several bilateral meetings among participant countries on the sidelines of the event.

The South China Sea, Thai-Cambodia relations, and nuclear issues in the DPRK are among the issues tobe discussed.

Jakarta Pursues Corruption Battle

JULY 20, 2011

http://online.wsj.com/article/SB10001424052702304567604576455850180531080.html?mod=google

news_wsj

JAKARTAIndonesia's graft-battling body pledged to press ahead with its efforts to clean up corruption

in Southeast Asia's largest economy, even as a spreading political scandal saps the popularity of

Indonesia's president and threatens to derail the country's momentum on reform.

[INDOGRAFT]

The popularity of Indonesian President Susilo Bambang Yudhoyono has plummeted this year on the

perception that he hasn't addressed allegations of corruption within his own party, according to polling

and political analysts. The president won his second term in office with more than 60% of the popular

vote in 2009 on the back of pledges to keep fighting corruption and to reform the giant archipelago


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nation's economy. From a high of close to 80%, his approval rating has fallen to less than 50%, according

to recent surveys.

Much of voters' earlier optimism about their leader was a result of numerous high-profile cases brought

by a new Corruption Eradication Commission, which didn't shy away from throwing judges, millionaires

and members of Parliament into prison. More recently, however, even some fans of the commission

worry it is losing momentum amid personnel changes and other problems. Critics charge the board may

not be fully investigating cases that could embarrass the ruling party.

In an interview Monday with The Wall Street Journal, the commission's vice chairman said the board's

enthusiasm for pursuing graft is unchangedeven as a ballooning bribery scandal threatens to engulf

members of Mr. Yudhoyono's Democrat Party.

"We don't care about the Democrat Party, we don't care about the government," said Haryono Umar,

the commission vice chairman. "Whenever we have the evidence, nobody can stop us."

He declined to speak in detail about particulars of the case.

Since it was started in 2004, the commissionknown here by its local acronym, KPKhas backed more

than 300 cases against high-ranking officials and recovered billions of dollars in graft money. It seems to

be launching raids, arrests and new investigations every week.

The latest case, involving the country's ruling party, concerns facilities being built for the Southeast Asia

Games in November, and has been dominating political discourse here for weeks. During the trial, which

started last week, of people outside the party, prosecutors claimed there was bribery and collusion

among contractors and government officials to rig bidding on a project to build part of the athletes'

village.

The former treasurer of the Democrat Party, Muhammad Nazaruddin, whom the commission hasofficially declared a key witness and suspect in its investigation, has fled the county, said Mr. Umar.

Some observers criticize ruling-party officials for not ousting Mr. Nazaruddin from the party, despite

public statements from the commission that it has evidence of his involvement in bringing together

parties in the Southeast Asia Games scandal.

Meanwhile, local newspapers and magazines have been publishing telephone interviews with Mr.

Nazaruddin, whose current whereabouts are unknown, in which he claims that he is innocent, and that

other leading politicians are involved.

Neither Mr. Nazaruddin nor his lawyer could be reached to comment.

Mr. Umar said that although the public sometimes wants the Corruption Eradication Commission to

work faster, and politicians sometimes want to slow it down, it doesn't respond to pressure and will

forward on only the cases that it has the evidence to win.

He added that there hasn't been pressure from the Democrat Party to delay the investigation against

Mr. Nazaruddin.


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The Democrat Party has said that it isn't shying away from attacking corruption within its ranks, and that

party leaders are scheduled to meet this weekend to announce measures to clean house and improve

the party's image.

"Our party's reputation is tarnished and that is reflected in the popularity surveys," said Achmad

Mubarok, a member of the Democrat Party's advisory board Member. "But ups and downs are natural in

political life."

More than just the future of the Democrat Party is stake in the KPK's corruption investigations, analysts

say. Kickbacks, bribery and collusion are widely believed to take a big toll on the country's crucial efforts

to build the new roads, ports and power plants it needs to keep its economy expanding.

Mr. Umar said the commission's investigations have shown that as much as 40% of money slated for

some government projects is stolen by corrupt officials. About 70% of the corruption cases his team

looks into are connected to government contracts, he added.

"There are many, many cases connected to infrastructure," including the building of roads, the purchase

of ferries and the building of bridges, he said.

In the typical case, he said, a contractor with political connections, or a politician with a dummy

contracting company, pays off government officials to rig and win a bid at an inflated price. They then

subcontract the work to a different company for a much lower price and pocket the difference.

The commission has received more than 50,000 complaints from the public since its start in 2004, and

would like to chase after more corrupt officials, but there is only so much its staff of around 700 people

can do, Mr. Umar said. It has tried to expand its staff but there aren't enough qualified candidates that

can pass its strict interview process, he said. That process includes sending investigators to applicants'

homes and offices to test their integrity and to prove they have never been involved with corrupt

organizations in the past. When it tried to add 100 new employees last year it got 16,000 applicants, buthired only 44.

To improve the country's infrastructure, as well as the government's approval rating, the commission

needs more whistle-blowing private citizens, politicians, bureaucrats and company auditors to stand up

against those that abuse their positions of power, he said.

"We need more [employees], but what is most important is we need more friendsfriends in

government and friends elsewhere," that can point us to the wrongdoers, he said.

SBY wants better military ties between Jakarta and KL

Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/06/2011 9:34 PM

http://www.thejakartapost.com/news/2011/07/06/sby-wants-better-military-ties-between-jakarta-

and-kl.html


18/24

President Susilo Bambang Yudhoyono called for better military relations between Indonesia and

Malaysia to ward off looming conflict since the two neighboring countries had a number of outstanding

border issues.

Yudhoyono received a courtesy call from Malaysias newly appointed Armed Forces chief Tan Sri Zulkifeli

at the Presidential Palace on Tuesday.

It was the first ever foreign visit by Zulkifeli, who was appointed on June 15 to succeed chief Gen. Tan Sri

Azizan Arrifin, who is retiring.

Yudhoyono delivered a message on the importance of bilateral ties based on the pillars of military and

economic affairs, presidential spokesman on domestic affairs, Julian Aldrin Pasha, said after the

meeting.

Defense Minister Purnomo Yusgiantoro and Indonesian Military chief Adm. Agus Suhartono

accompanied Yudhoyono at the meeting.

Yudhoyonos spokesman on foreign affairs, Teuku Faizasyah, said Zulkifelis first foreign visit toIndonesia showed the importance of Jakarta to Malaysia.

He said Yudhoyono and Zulkifeli did not address border issues at the meeting.

The two countries are currently discussing border issues. The potential *for conflict+ is still there, thats

why military leaders from the two countries should build better relations to prevent an escalation of

tensions, Teuku said.

He added that Yudhoyono spoke to Zulkifeli about the long-established joint training of military officers

from the two countries.

*The two countries+ conduct joint training of military officers that could reduce conflicts, he said.

Teuku played down suggestions that Malaysias purchase of two submarines threatened bilateral

relations, saying instead that it could stabilize regional security.

He said Malaysia had informed neighboring countries about the procurement under ASEANs defense

white paper, which required ASEAN member states to notify other members of its military hardware.

Indonesia and Malaysia have been engaged in several border spats, with each side unilaterally laying

claim to areas near their borders as in case of Ambalat, a 15,235-square-kilometer maritime area

located off the coast of East Kalimantan.


19/24

Indonesia is the world's largest Muslim democracy but faces accusations that

human rights violations are deeply entrenched.

11:07PM BST 11 Jul 2011

http://www.telegraph.co.uk/news/worldnews/asia/indonesia/8630800/Indonesias-human-rights-

violations-deeply-entrenched.html

Johan Teterisa was sentenced to life in prison for treason after dancers performing for President Susilo

Bambang Yudhoyono and dozens of dignitaries in 2007 unfurled the independence flag for Republic of

South Maluku flag. The development created an uproar and prompting Yudhoyono to take over the

microphone, ordering their arrest. Other colleagues who had displayed the flag received sentences of

seven to 20 years.

The country's military took a step back from politics a decade ago but human rights groups point out

that massacres committed by troops in East Timor, Papua, Aceh, Maluku, Kalimantan have not been

examined in the courts.

The murder of Munir Thalib, a well regarded human rights defender who was fatally poisoned on aGaruda Indonesia flight in 2005 remains unresolved. Evidence has pointed to the involvement of high-

ranking intelligence officers in the attack.

A range of journalists and activists who have taken on entrenched political or economic interests have

been subjected to criminal defamation charges.

Everyday acts such as complaining about treatment received at a hospital or asking a local official

about a land assessment can result in a defamation prosecution and a prison sentence.

Activists outside the country have pursued abuses in Western courts. ExxonMobil faced claims it aided

and abetted murder, torture and sexual assault by its security forces in Indonesia's Aceh province.

Indonesian villagers claimed ExxonMobil was responsible for the abuses because they were committed

by an Indonesian military unit dedicated only to Exxon's Aceh facility and under the company's direction

and control.

Exxon provided material support to the unit by hiring mercenaries for training, advice and intelligence,

the villagers alleged. The human rights abuses began in the early 1990s, according to one of the

complaint.

Even when complaints are prosecuted, the actions have been criticised as inadequate.

A 10-minute, mobile-phone video, published last October, showed soldiers kicking Tunaliwor Kiwo, aPapuan farmer, in the face and chest, burning his face with a cigarette, and applying burning wood to his

penis.

The soldiers placed a knife to the neck of the other man, Telangga Gire, while threatening to kill him.

According to Kiwo the torture lasted for three days.


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The soldiers beat him with their hands and sticks, crushed his toes with pliers, suffocated him with

plastic bags, burned his genitals and other body parts, cut his face and head and smeared the wounds

with chilies.

But military prosecutors did not bring torture charges and only three of the soldiers were charged with

minor offences.

Safeguarding the worlds forests: Indonesias promising future

Volume 5 Number 2 PDF 1.05 MB

http://ictsd.org/i/news/bioresreview/110711/

Through his unilateral pledges for ground-breaking climate change action, President Susilo Bambang

Yudhoyono has positioned Indonesia as one of the global leaders on climate change. If Indonesia

succeeds in reducing emissions by 26 percent from expected levels by 2020, 750 million tonnes of

carbon emissions could be saved annually, potentially equalling as much as 5 percent of what is needed

on a global basis to meet the target of capping climate change at maximum increase of 2 degreesCelsius. To support these remarkable efforts, Norway has pledged US$1 billion in support to Indonesia,

to be paid based on independently verified results in reaching the goals.

With its 240 million people, Indonesia is the worlds fourth most populous country, and the country with

the largest Muslim population in the world. It has the worlds third largest tropical rainforest, and has

the highest number of plant and animal species of any country on the planet. Indonesias rainforest

covers an area of 1 million square kilometers. It is Southeast Asias largest, and the worlds seventeenth

largest, economy, with an economic growth rate of around 6 percent.

Indonesia also has the worlds third largest greenhouse gas emissions, after the US and China.

Approximately 78 percent of these emissions stem from deforestation and forest degradation, as well asthe conversion and burning of carbon-rich peatlands to plantations. Jakarta estimates that, in a

business-as-usual scenario, the total emissions are expected to increase to three billion tonnes of CO2

by 2020; emissions from forests make up as much as 50-60 percent of this total. Globally, emissions

from deforestation and forest degradation in developing countries account for approximately one-sixth

of the total emissions.

At a G-20 meeting in Pittsburgh in 2009, Indonesias President Yudhoyono delighted the world by

making a significant commitment. He promised that Indonesia would reduce emissions by 26 percent

from expected emissions levels in a business-as-usual scenario by 2020 without international assistance

and by as much as 41 percent with international assistance. President Yudhoyonos pledge to reduce

emissions was - together with a similar pledge from President Lula da Silva of Brazil - the most significant

made by any developing country in the context of climate change.

Climate change and economic growth

Almost half of Indonesias population still lives below the UN poverty line of US$2 a day. Food prices

have increased. Indonesias planned reduction in deforestation should not hamper development. While

economic growth is key for achieving social and environmental goals, long-term economic growth and

lasting competitiveness can only be secured through environmentally sustainable and climate-friendly


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development policies. Efforts to battle climate change, poverty, and food, water and energy insecurity,

are mutually reinforcing.

As made clear by President Yudhoyono, the only way to truly succeed with any of these goals is by

striving to reach them all. In Indonesia, two aspirations are intertwined through the Presidents 26/7

goal, which refers to the goal of26 percent reduction in emissions and the Presidents stated goal of

reaching 7 percent annual economic growth by 2014. Climate change, economic growth and poverty

reduction is at the forefront of politics in Indonesia, demonstrated by the Presidents four main goals for

his presidency: pro jobs, pro poor, pro growth and pro green.

Indonesia is the worlds twenty-seventh largest exporter overall, and the largest exporter of palm oil.

The increasing global demand for minerals, logs, paper and palm oil is among the main drivers of

deforestation and peat-land destruction. Logging does not in itself lead to deforestation, but may, if not

carried out sustainably, destroy the forest to such an extent that the area is eventually reclassified and

made accessible for plantations. Moreover, unsustainable logging contributes significantly to CO2

emissions, as well as the loss of biodiversity and livelihoods that depend on the ecosystem services of

intact natural forests.

As the Indonesian governments REDD+ strategy makes clear, with sufficient political control and

satisfactory land-use planning, forest-based industries such as palm oil and pulp-and-paper may

continue to contribute to economic growth, without destruction of natural forests and peat lands.

According to some estimates, Indonesia may have as much as 35 million hectares of degraded land, and

has offered to allocate the expansion of plantations and other economic activities to already-degraded

or low-carbon areas. This proposition raises new challenges in the form of the need to sort out land use

rights in these areas - so there are no simple solutions - but they can be handled as part of a more

comprehensive, less carbon-intensive approach to land use, tenure and spatial planning.

If Indonesia succeeds in reducing emissions by 26 percent from expected levels by 2020, as much as 750

million tonnes of carbon emissions could be saved annually, potentially equalling as much as 5 percentof what is needed on a global basis to reach the 2 degrees target.

The pledge and the partnership

On 26 May 2010, Indonesia and Norway signed a letter of intent, during the Oslo Climate and Forest

Conference. Norway will pay for results delivered in three phases, first in the form of institutional

development, capacity building, forest governance reform and enabling policies, and eventually, from

2014, for independently verified emission reductions.

It is essential to emphasise, from a Norwegian viewpoint, that we are supporting an already established

Indonesian effort. REDD+, or any aspect of low carbon growth for that matter, cannot and should not be

imposed from abroad; it must be domestically owned and run. That is why Norway is proud to support

President Yudhoyonos and his Cabinets efforts.

Based on Indonesias priorities, the mutually agreed deliverables for the first phase include a

comprehensive, national REDD+ strategy addressing all significant drivers of deforestation and forest

degradation; an independent REDD+ Agency, reporting directly to the president; an independent

institution for monitoring, reporting and verifying forest emissions; development of a financial

mechanism and benefit sharing system according to international fiduciary, social and environmental


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standards, and the identification of a pilot province for experimenting with results based support for

measures and policies to reduce emissions from deforestation and degradation of peatlands.

In Oslo in May 2010, President Yudhoyono also declared that he would introduce a two-year

moratorium on conversion of natural forests and peatlands. One year later, the president launched a

two-year suspension on the issuance of new licenses for conversion of primary forest and peatlands. The

moratorium may help facilitate the presidents 2020 goals, and constitutes an important part of a

broader forest and land use reform agenda in Indonesia, though it will not in itself ensure success.

Transparency and multi-stakeholder involvement in all stages of implementation will be crucial to

achieve precise coverage and reconciliation with other land uses, including existing concessions that

cover large areas of the country. The moratorium, however, only signals the beginning of more

comprehensive forest governance reform, which over the next couple of years may encompass

increased efforts against illegal logging and clearing of forests, prosecution of organised forest crime,

review of existing concessions, land tenure and conflict resolution mechanisms for dealing with

overlapping land claims.

What Indonesia is embarking on is a very serious development choice. The ultimate goal of the

Indonesian-Norwegian partnership is to pay for results in the form of emission reductions fromdeforestation and forest degradation within 2014 (phase III), and earlier in the pilot province. The

magnitude of the financial contributions from Norway in this phase will depend on the extent to which

Indonesia succeeds in reducing emissions.

Before reaching this phase, however, an annual evaluation will be carried out by a third-party identified

by international tender, which will verify results in phase I and phase II. Their work will be based upon

deliverables identified in a mutually agreed joint concept note, which again is derived from Indonesias

REDD+ priorities and ambitions. The verification reports will form part of the basis of payments from

Norway before phase III. The third party will verify the progress in delivery of mutually agreed enabling

policies and forest governance reform measures. The first report, undertaken by the Finnish consulting

firm Gaia Ltd in association with Creatura Ltd, noted good progress in a number of areas, as well as thechallenges involved in completing the remaining, and most difficult deliveries related to institutional

responsibilities and monitoring of emissions.

The challenge of climate change remains a global one, and we continue to need a plan in the form of a

global regime if we are to reach the 2 degree target. Only the United Nations can offer this framework.

However, greenhouse gas emissions continue to rise towards a dangerous tipping point, without waiting

for diplomatic solutions. In addition to the negotiation track, therefore, an action track is needed.

Norways partnership with Indonesia is one of many elements of this action track. In the years to come

Indonesias efforts may contribute significantly to reducing the global emissions from deforestation and

forest degradation.

As mentioned, REDD+ cannot be imposed from abroad, but must be domestically owned and run. Over

the past few years, a broad constituency of forest countries has emerged, eager to get REDD+ off the

ground.

Now, adequate, predictable and sustainable medium and long-term funding is needed to deliver and

reward large-scale verified results in reducing tropical deforestation. There is every reason to be


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optimistic. This is an area where we can achieve significant results - even before a final international

climate agreement is settled.

House Votes to Increase Fuel Subsidies Despite Plans to Cut Program by 2014

Dion Bisara | July 22, 2011

http://www.thejakartaglobe.com/business/house-votes-to-increase-fuel-subsidies-despite-plans-to-

cut-program-by-2014/454692

The House of Representatives approved on Friday a hefty 35 percent increase in fuel subsidies amid

speculation that the government was planning to raise subsidized fuel prices this year.

Under the bill, the government will spend an additional Rp 33 trillion ($3.8 billion) on fuel subsidies this

year, despite plans to cut funding entirely by 2014.

The revised 2011 budget raised energy subsidies across the board, earmarking Rp 127.9 trillion for fuel

subsidies and Rp 65.6 trillion for electricity subsidies a 61 percent increase over last years budgeted

electricity funds.

The revised budget totals Rp 1,320.8 trillion, up from original forecasts of Rp 1,229.6 trillion.

The government had proposed a Rp 120.8 trillion budget for fuel subsidies earlier this month. That

amount was 35 percent higher than the original budgeted amount of Rp 96 trillion.

Electricity subsidies were also lower, set at Rp 40.7 trillion in the original budget.

Critics called the move short- sighted, explaining that rising fuel prices would only drive fuel subsidies

higher in the coming years.

In the long run, oil prices will keep increasing and such inaction would burden us further, said Marwan

Batubara, executive director of the natural resources think tank Indonesian Resources Studies.

Marwan said President Susilo Bambang Yudhoyono was unlikely to risk raising fuel prices in the current

political climate.

This has nothing to do with the economy of the poor, Marwan said. The momentum is just not right

for the government.

Yudhoyonos popularity has faltered amid recent graft allegations targeting senior members of the

presidents Democratic Party.

In the short term, the House could impose an additional vehicle tax on motorists to recoup some of the

money spent on subsidies, Marwan said.

But for the long term, the government has to come up with a reliable scheme that can channel the

subsidy to the poor directly, he said.


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According to a World Bank report released earlier this year, the top 10 percent of the population receive

Rp 135,000 in fuel subsidies per capita, while the poorest 10 percent receive Rp 23,000.

And any move to increase fuel subsidies only distorts the budgets structure, said Milan Zavadjil, a senior

resident representative of the International Monetary Fund in Indonesia.

Fiscal policy needs to be re-oriented away from subsidies and toward infrastructure and social

spending, Zavadjil said in a written statement on Friday.

138549_Susilo Bambang Yudhoyono

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