MINISTER AGUS, MINISTER DAHLAN AND MINISTER GITA

What are the similarities of the three ministers? Firstly, the three respected ministers seem to have no political interest or least they do not admit to becoming member of certain political parties. Another similarity is that the three have never joined in bureaucracy, except Agus Martowardoyo, former president director of Bank Mandiri mostly owned by the Indonesian government. Secondly, viewed from media reportage, the three ministers record the best performance. If the parameter is measured from media reportage, they are very rate to encounter negative issue in either performance or deviating behavior, such as corruption issue.

Minister Dahlan is the most eccentric one, cleaning toilet at airport, opening toll gate so that cars could come into toll road quickly without paying ticket, selling E-Toll card of Bank Mandiri as if he complains about the action of the boss of the bank deemed less active in selling and promoting the toll card.

Minister Agus is more than eccentric. He was determined to buy Newmont share for the government, bring the case to the Supreme Court and declare his readiness to resign unless he lost and failed to purchase the share. Mr. Agus also hit table because he felt dejected at legislators delaying the legalization of assumption in Draft State Budget of 2013, complicating budgetary talks thus impeding substantial discussion.

On contrary, Mr. Gita is far from eccentric, even very polite. However, when he was assuming the Head of the Investment Coordinating Board, he was very active to promote investment opportunities in Indonesia and design advertisement not less attractive than Malaysian tourism advertisement.

Yet, each shares the most important character, nothing to loose. As if they do not care whether they would be dismissed or not and they axe cute their tasks even though they must be in opposite to the will of legislative deemed unethical.

 It may be a result of their personal development for years. Mr. Dahlan and Mr. Pak Gita are businessmen and they have been accustomed to preparing work plan at the beginning of working period, prepare indicators of performance, abide by business rules internally and externally. Both are also successful to build their business without loan, namely media business by Dahlan and financial business by Gita. Mr. Agus constitutes the most conservative figure among the ministers because a banker is basically risk averse, and principally bank provides credit for the lowest risky business. Therefore, his action as minister should have considered all risks, including condemnation and dismissal.

Agus, Dahlan and Gita become a concrete evidence negating dogma saying that non-political minister won’t perform effectively because the minister has no foundation of political party support in the legislative. Even though they are appointed by President SBY and secure votes in the parliament in every budgetary debate, the Democrat Party is not majority in parliament, which is sufficient to secure the government vote in the parliament.

It’s not the point. The ministers could perform effectively because their action is strengthened by logic and rational arguments, far from hearsays behind the scene. In addition, they have character, nothing to lose, so that the ministerial post is far from effort to seek wealth, because their income in private sector is bugger than salary of minister plus the facility. If they stop assuming ministerial post, they could earn bigger income in private sector at anytime. 

If Vice President Budiono disclosed recently in his address in University of Gajah Mada that public position in administration is dedication, not aiming at seeking wealth, the three ministers may become reference. They work solely for the people.

In view of the performance of the three ministers, President SBY should replace quickly his ministers with the figures sharing of the same criteria as by three ministers. In addition, ministers consigned by political parties would be busy to hold campaign for General Election 2014. The president should be carried over by character “no-thing to lose”.

Business News - September 19, 2012

 

MARINE CONSERVATION NEEDS CROSS-SECTORAL SUPPORT

Ministry of Marine and Fisheries (KKP) expected the government of Biak Regency to support the implementation of Coral Reef Rehabilitation and Management Program (COREMAP). Conservation area reserve in Biak water territory is very potential for the implementation of program. This area located in Pasic Village, Aimando Padaido Atas District is potential to be conserved up to Padaido archipelago, Owi, etc. this area has a potency of underwater  beauty, such as coral reef and various kinds of fish. Even, there is a ship wreck and airplane wreck which sunk into the sea. All of these are the heritage of World War Two. “These scraps become coral reef where marine life comes into existence”. Minister of Marine and Fisheries, Sharif C. Sutardjo, told Business News (9/17).

Besides Padaido, Biak also has Yapen Island which is a hatching place of four kinds of turtles (green sea turtles, leatherback turtles, olive ridley turtles, and star fruit turtles). Sustainability of coastal ecosystem which is rich in biological resources needs a healthy coral reef. Since 2005 to 2011, COREMAP budget reaches more than Rp.54 billion for coral reef management. The allocation is located in Biak Numfor, and the total realization is not less than Rp.40 billion.

Specifically the success of the COREMAP II program received appreciation from the World Bank with Satisfactory result. “Currently, the sustainability of COREMAP implementation for 2013 is being planned. ”Through the program, marine conservation management activities are conducted collaboratively based on society.”

And, this program also includes development of alternatives ways of a living, regular monitoring of health condition of coral reef ecosystem, and increase of awareness of society in utilizing resources presser babbly and sustainably. Indonesian marine conservation area has reached 15.78 million hectare of the target set by KKP at 20 million hectare 2020. KKP jointly with the Ministry of Tourism and Creative Economy can follow-up and support the management of marine conservation effectively through sustainable marine tourism. Marine conservation area can also be used for various kinds of activities, such as research, training, environmental education, business, tourism, empower mental services by not ignoring the actual function of conservation.

Conservation has become an important focus for harmonization of economic interest and conservation of resources in supporting sustainable fisheries. KKP initiate it through Blue Economy policy which makes conservation as an instrument to empower sustainability of fish stock, assure ecosystem and environmental health, promote utilization and management of resources effectively and sustainably.

“Blue Economy” principle can provide a benefit to Indonesia as more than 70 percent of Indonesian seas and coasts could support marine development and sustainability of fishery resources. As an illustration, in 2010, total Indonesian population is at 237 million and is estimated to reach 255 million in 2020.

Indonesia’s marine economy potency is estimated to reach around USD 1.2 trillion per year, or equivalent to 10 times of Indonesia’s APBN in 2012. Moreover, next year, Indonesia will become the host in Asia Pacific Economic Cooperation (APEC), which emphasizes on blue economy.

Business News - September 19, 2012 

HAPPY THANKSGIVING 2012

The Ministry of Agriculture: FARMERS GET ZEALOUS ABOUT PLANTING SOY

The soaring price of soy got tofu and tempe makers into trouble some were even on strike for lowered price by stopping to produce tofu and tempe, but the bliss behind the restless price of soy was that soy growers were getting zealous about planting soy.

The Ministry of Agriculture, Suswono in Jakarta on Monday (10/9) stated that the increased price of soy motivated farmers to grow soy, therefore the present farmers’ price of soy Rp 7,000/kg must be maintained.

Moreover in some production centers of soy like Kebumen, the potential of soy production was fairly good, i.e. 2.4 tons/ha. Survey data had it that the average productivity today was posted at 2.5 ton to 4 ton/ha; meaning plantation yields was fairly good, i.e. 1.3 – 1.4 tons/ha. “From research outcome it is visible that plantation yields of soy is potential enough for development” Suswono said.

Based on productivity calculation of at least 2 tons/ha alone and soy price at Rp 7,000/kg, farmers would receive earnings of Rp 14 million/ha. Meaning of production cost was Rp 2 million, growth could make profit of Rp 2 million/ha. “Hence, at the price of Rp 7,000/kg soy cultivation business would be competitive against corn” Minister Suswono was quoted as saying.

The Government was aware that soy business still had to compete with corn, because the two commodities were planted on the same land. Therefore, in order to be self-supporting in soy more space was needed. To procure more land, the Ministry had promised to procure extra land covering 500 thousand ha.

“With just two more years left we would maximize effort to meet the target of self supporting in soy. Moreover price of soy was sufficiently good and there was commitment from the Ministry of Forestry to procure land”.

Moreover Indonesia had the experience of self supporting in soy in 1992. At that time there was protection by the Government, i.e. price incentive by setting soy price at 1.5 times the price of soy. In addition to that the Government through Bulog acted as sustainer of farmer’s price of soy.

Ever since the incentive was non existent and price was no longer stimulating to farmers, production of soy dropped drastically from the previous 1.5 million tons to the present 800 thousand tons. “So one of the stimulators to increase production was attractive price”.

About the Government’s plan to apply Government’s Buying Price (HPP) for soy, the Government was still watching how things were going, at least if there was a HPP price of Rp 7,000/kg because if piece of soy at farmers level were favorable enough, they would be zealous about running soy business. “We are also considering other instruments like once again imposing import tax for soy. At the moment the Government was exempting tax on soy until December” Suswono concluded.

Business News - September 14, 2012

CREATIVE ECONOMY BRING BETTERMENT ON SOCIAL WELFARE

The Government had made several breakthrough to improve people’s welfare. Among them was to stipulate the policy of promoting creative culture, i.e. an economic activity with underlying culture, creativity, craftsmanship, and individual skill. To enhance the above efforts, the Government had set legal umbrella by issuing the Presidential Instruction no. 6 year 2009 On Development of Creative Economy 2009 – 2015. This Presidential Instruction was addressed to two Coordinating Ministers, namely: the Coordinating Minister of People’s Welfare and the Coordinating Minister in Economy, 21 ministers, four non-ministerial Institutional Heads, Governors, Regents and Mayor in all of Indonesia to promote development of creative economy and make it a successful project.

Dody Edward, Director of Development of Export Products and Creative Economy, Director General of National Export Development (PEN) Ministry of Trade on Monday (10/11-2012) underscored the importance of Government’s role in introducing and promoting creative economy to the general public. Dody was expecting that development of creative economy could bring positive impact on the social economic life of the people as well as creating employment, business opportunities, and to promote trading, tourism, and investment in Indonesia. “Our country is rich in natural resources, now the problem is just how to tap them so we could develop industry and promote people’s welfare and well being” Dody was quoted as saying.

Dody saw that the creative work of Indonesians were not only favored at the local market but also widely acclaimed at the international market. Some commodities of the creative industry which were sought after at the international market were among other: fashion products, IT products, Indonesian movies, etc. The unique design, assurance of high quality materials used by the creative industry in Indonesia were highly appreciated and sought after by the consumers in Asia, Europe and US markets.

Dody saw that there was a golden opportunity for players of the creative industry in Indonesia i.e. the distribution network which was widely spread which offered more sales and bigger profit. Considering the great potentials treasured by the creative industry sector, according to Dody, support was called for from the related parties to speed up growth of the creative industry. The intellectuals, for example needed to explore and publicize the new norms applicable in the environment especially those related to science and technology.

Local producers of the creative industry needed to adopt and apply modern technology in the production and distribution process whereby to make products more beneficial to users. On the other hand Government officials were expected to adopt business rules and trading policies which were conducive to progress in progress in management, facilitation and empowerment of local creative industry with emphasis in human resources upgrading, locating of industry and strategic budgeting for the growth of creative economy.

Dody elaborated that considering Indonesia’s geographic condition and wealth of natural resources, and diverse arts and culture and the artistic gift of the people, it became an undeniable fact that the wealth of creative talents was the spring of inspiration for making products of high creative value and strong competitive edge which would eventually bring sustainable progress to the industry and prosperity for the people.

Therefore, in the effort of developing the creative economy, it became indispensable that all endeavors must begin with enhancing creative culture and habit among the people. “We need to step up quality of human resources in the process of transformation to stimulate creative which would propel the creative industry sector according to strategy, direction, and target set” Dody concluded.   

Business News - September 14, 2012   

INFRASTRUCTURE DEVELOPMENT IN EAST INDONESIA SOW NEW GROWTH CENTERS

The Government was now giving full attention on infra-structure building in East Indonesia (KTI) whereby to create new economic growth centers or to make the existing economic enters in that region inter-connected. The Director of Transportation, Ministry of National Development of Transportation, Ministry of National Development Planning/Bappenas Bambang Prihartono in Jakarta on Tuesday (11/9-2012) stated that the Government was planning to prepare new infrastructure projects in East Indonesia to enhance development in that region.

Bambang stated that the Government’s commitment to intensify development process in East Indonesia never ceased. Each year, the government constantly reviewed and improved the development process in East Indonesia. Bambang mentioned there were some strategic issue which was now developing in East Indonesia. In Papua, for instance, the strategic issue which were developing were the problem of infrastructure building, poverty elimination, promotion of food resiliency, and promotion of public service.

In the province of Maluku, Bambang said, beside acceleration of infrastructure building, other strategic issue were expansion of plantation and opening of new ricefields mobile health service at sea, upgrading of human resources, acceleration of fish embankment development, and development of marine tourism. Meanwhile is Sulawesi the strategic issues were: increasing regional connectivity, upgrading of human resources and attainment of Millennium Goals  (MDGs), increase of agricultural productivity and procurement of energy need. “Infrastructure development is most vital in developing new growth centers in East of Indonesia” Bambang remarked.

According to Bambang, to speed up development in East Indonesia, the Government had increased transfer of fund to the region like General Allocation Fund (DAU), Special Allocation Fund, Dividend Fund, Otsus Fund and Adjustment Fund. In addition to that Bambang said, to drum up private investment, The Government tried to increase Government's capital spending in areas where private investment was still low. The Government’s focus of attention was, according to Bambang, was to prioritize infrastructure development in areas where the Government’s capital spending was high as propeller of economy in the region. He added on that to step up development was East Indonesia, the role of Provincial Government was most important whereby to serve a strategic step in national development.

East Indonesia was today in need of marine infrastructure to support connectivity. East Indonesia, which for the most part consisted of water, needed connectivity which was maritime connectivity, which means marine infrastructure. He said that an archipelago like Indonesia needed more sea connections. Bambang also disclosed that development of marine infrastructure needed enormous amount of fund as well as high technology and expertise.

Meanwhile Vice Chairman of the Indonesia Chmaber of Commerce (KADIN) HM Sattar Tabba rated that Infrastructure Development Acceleration Program in East Indonesia was not running well. Fore that matter fair distribution of fund for infrastructure development and well balanced funding for East Indonesia as well as maneuverability in space planning and Presidential Decree for development acceleration for East Indonesia became imperative.

Sattar Tabba saw that investment opportunities in East Indonesia was still wide and prospective. However there were some handicaps felt by KADIN in enhancing development in that region. KADIN, in spurring on infrastructure development in East Indonesia focused more on acceleration of infrastructure which was designed to speed up traffic of goods and passengers. In addition to that also development on infrastructure which connected industrial centers with harbors as well as to strengthen telecommunication networking.    

Business News - September 14, 2012    

FINANCIAL CRISIS JUSTIFIES CLIMATE ISSUE

Some LSM (Non Governmental Observers) had different views of the Initial Conference of Climate Change in Bangkok (5/9) some were optimistic while some were pessimistic. But nearly all NGO (LSM) saw there was a tendency of justification of the climate issue, which created fear among 6,973,738,433 (data 2011) of the world’s population. “Climate crisis was of the industrial to little doomsday, while financial crisis of the industrial states was the bigger doomsday which was ever dreadful” Sri Ranti of WALHI disclosed to Business News (10/9).

The conference was participated by delegates from Indonesia, i.e. Chairman of the Fiscal Policy Board of the Ministry of Finance and four NGO’s i.e. WALHI, CSF and KIARA. WALHI (the Environmental Organization) among other admitted there were two main differences among LSM/NGO in regard to the effort to reduce the earth’s temperature. “Some LSM were avocation oriented, some were conservation oriented. In fact all LSM were not overlapping in voicing emission reduction, but there was simply no common ground especially in regard to Green Climate Fund (GCF)” Sri Ranti remarked.

Meanwhile at global level, LSM were broadly divided into poles, i.e. those who focused on justice network and those who focused on negotiation, they and those who focused on negotiation, they were bringing messages from the people of the respective countries not just by way of report but also negotiations. WALHI who joined the Climate Talk for the past three years saw the need for a more definitive target in strengthening the climate issue. “All LSM who joined the conference were financed by certain delegation. We are also busy with certain activities, but we from Indonesia have our target which must be synchronized first with other LSM” she remarked.

Beside WALHI, KIARA (people’s coalition for Fishery justices) and KAU (the anti-debt coalition) and Civil Society Forum (CSF) were voicing the same opinion. The activists, before embarking on the main agenda of the conference had their pre-briefing. “We must stipulate a common ground before underscoring the main agenda”.

GCF was an idea or proposition which was only set forth this year. There four LSMs we also seeking for a common platform for GCF was already at regional level, but had not arrived at national level in Indonesia. “NGO are voicing the same opinion because they set forth the same case including this GCF” However, LSM could not always be directly involved in negotiations. There were some parts of discussions which were closed for NGO, only state observers were involved. “Sometime we wasted a lot of time the way it happened in Bangkok. We were often confused because one NGO form abroad came up with one proposition while another NGO came up with another since there was no common ground” Sri Ranti remarked.

Meanwhile KAU saw that the Bangkok conference ended up with less gladdening result. Industrial countries did not make any clear commitment to definite emission reduction, while developed nations, including Indonesia, had no fangs to make any pressure. Indonesia’s leader position as the biggest country in South East Asia should have been more daring and aggressive at that conference. “The faith of the Conference on Climate Change had only to months left, but it seems to still to leave a big question mark” Dani Setiawan of KAU told Business News (11/9).

The COP outcome 16 in Cancun (2010) and Durban (2011) evaded industrial countries away from their historical responsibility as main contributor of gas emission to the glass house effect. They also dominated the conference to re-route the course of discussion to opposite direction, away from the original track to overcome climate change effect.

Commitment of the industrial states was not strong enough to lower gas emission till 2020 as increase of global temperature had come to above 4 degree celcius. “The future of mankind is gloomy, since industrial states easily delay time and came up with excuses like financial crisis keep them from being consistent about reducing gas emission” Dani Setiawan was quoted as saying.

At the climate talk, pollutant countries: the USA, Uni Europe, China, India so freely influenced the discussions. The result was that negotiations were losing their meaning, way beyond the limit of tolerance. America used their political power to influence the meeting nor did America national corporations give their commitment to lower emission seriously. China as one of the top contributor of emission, was advantaged by the powerless negotiations. Uni Europe’s true colors showed in their diplomacy, who persisted to the promise to reduce emission by 20 percent, was now clearly visible. “The deal was even exercised through carbon trading and carbon absorption and storage. A list of solution on climate change was also not clear. They did not do anything to control economic growth and reduce consumption” Dani Setiawan remarked.

The world needed act of rescue at once. Monitoring by NASA satellite was showing melting process of ice in Greenland and high speed, much wider than a few months ago, which was beyond scientist’s calculation. They noted expand of Greenland ice melting widest since satellite monitoring 33 years ago. In tandem with that, report of the National Board of Disaster Management (BNPB) detected increase of tropical cyclone of 878 percent in the past six decades. “The world was tormented by landslides and flood continuously in the past three months. Hundreds of people died and millions of them live in a state of emergency” Dani reported.

In Indonesia, dry season that lasted longer than usual and had brought harvest failure to farmers. In addition to that, many regions in Indonesia, farmers feared shortage of clean water. The syndrome was equally felt in all of the islands. Meanwhile farmers suffered due to extreme climate. “In addition to that many fishermen died in stormy seas. Our record has it there were 86 fisherman who died at sea. The number increased to 149 in 2011 and by August 2012 the victms were chalked up at 186 people” Dani said.

While there was lack of commitment to emission reduction, industrial states were also less supportive to fund raising for adaptation in the post GCF establishment perioed in COP 17 in Durban, which was aimed at mobilizing fund raising for climate change was getting less and less clear. Up till now the mechanism of GCF management was still vague, including the aspects of funding, allocation, direct access mechanism of GCF management was still vague, including the aspects of funding, allocation, direct access mechanism for people, fragile communities, regulations and proper spending of fund.

Rich, industrial countries especially America and Uni Europe only made promises. So far not a single dollar was allocated for GCF While an archipelago country like Indonesia, which was vulnerable to anomalous climate, did not take any initiative to mobilize APBN budget to support people’s adaptive capacity to climate change. Low commitment and global and national level would hindrance effort to step up adaptation capacity of people among developing nations “They are countries vulnerable to climate change”.

Funding by industrial countries was their obligation for the recovery and betterment of the poor people affected by crisis. The funding must not be in the form of money or other conditionalities and might not be used for private investments, big corporations or be used for private investments, big corporations or multi-national companies and must be sustainable. “We don’t have a strong figure like Soekarno (Indonesia’s first President) who dared to go against industrial countries which were now prevalent. Supposedly Indonesia take the lead in the acceleration of GCF, because Head of the Fiscal Policy Dept of the Ministry of Finance represented Indonesia as one of the Board members”.       

Business News - September 14, 2012