(HALF) DEATH SENTENCE FOR CORRUPTERS

National elements have continued to voice their concern about rampant corruption in the country. Now, the apprehensiveness comes from the country’s largest Islamic mass organization, Nahdlatul Ulama (NU). What is about the form of the apprehensiveness?

Reportedly National Congress of NU issued an edict containing recommendation about death sentence for corrupters repeating their action. Briefly, NU affirms that death sentence is imposed on corrupters as a curative effect so that the corrupters refrain themselves from repeating the same action. The decision is made through considerations. If a case remains unclear or doubtful, the punishment eliminating one life still cannot be executed. NU views that people committing corruption repeatedly have affected the others so that it is necessary to take firm action discontinue the misconduct. The action is in the form of death sentence.

The edict seems attractive because it’s not only the nature but also draw mixed responses from law specialists or observers. So far, law observers and specialists have not agreed fully the application of death penalty to corrupters. Controversy accompanied the recent statement of Denny Idrayana in social media saying that corrupter lawyer is the same as corrupter reflects divergent views of law specialists over corruption. Procedural factor constitutes a side becoming a point of divergent views among the law specialists. Therefore, it is not wonder if some are still determined to claim that corruption may be sentenced to death if the corruption has endangered seriously the existence of state. It means not all corruption cases endanger the state. Is it true?

In view of the above mentioned description, fundamental questions should be submitted. Has the ongoing corruption practice not yet endangered the existence of the state ? Could NU’s edict be deemed quite realistic in reading the situation and corruption practice gnawing state finance now? Later, why must the second chance, even more, be granted to corrupters so that they could be punished by death sentence ? the questions are inspiring cum complaining, given that part of the people has deemed corruption as extraordinary crime.

Without reducing respect to NU, we want to disclose opinion and postulate here. Firstly, death sentence constitutes a way to create curative effect for corrupters. Here, the penalty is expected to materialize to become energy forming the curative effect. If we agree upon the opinion and postulate, surely repetition of action is not needed so that the death sentence could be imposed. Probably, it’s better off considering the amount of state loss arising from the corruption committed by the defendant and whether the defendant is proven enjoying state finance charged against the relevant. The consideration is more realistic because people accused of committing corruption frequently do not enjoy state loss charged against them. They are declared guilty for committing corruption because of their position, namely holding responsibility because of position or negligence causing state loss.

Without reducing appreciation to NU, the death sentence edict is potential to affect the commitment of the people to rewarding corrupters by death sentence. The using of phrase “repeatedly” draws question, how many times is the corruption executed? However, the edict is difficult to implement, besides adding more difference in point of view over corruption crime, whereas the application of death sentence to corrupters needs the full commitment and determination of the whole national elements.

Business News - September 21, 2012

 

TO BUY WITH RECAPITALIZATION BONDS

An interesting news spread out last week: The Deposit Insurance Body [LPS] would permit purchase of 99 shares of PT Bank Mutiara Tbk [BClC] with recapitalization of bonds as long as the value was equal to Government capital insertion of Rp.6.7 trillion. Bank Mutiara’s process of dive station would be re opened by next year.

According to Mirza Adityaswara, Executive Head of LPS, he was willing to receive payment from candidate investors who ware using fund of bond recapitalization to buy Bank Mutiara’s shares. To buy shares with bond recapitalization was not a new discourse because it was thrown before in the process of selling Bank Mutiara since two years ago. The point was that LPS was opening talks to discuss means of payment provided that the value remained to be Rp6.7 trillion.

So LPS would permit purchase of 99% of shares of PT Bank Mutiara Tbk [BClC] with bond recapitalization as long as the value was the same of Government’s capital inclusion of Rp7.7 trillion. This option was to be re-offered next year.

It was mentioned that LPS was obliged to comply with the Regulation which stipulated that price of Bank Mutiara selling must be in accordance with Government’s bridging fund. In this case LPS’s interest was to comply to due diligence on candidate buyers in accordance with the per-requirements set by LPS and Bank Indonesia.

Word was out that thanks to its bettered performance, the market value of Bank Mandiri had reach three times of its present equity value. Equity of Bank Mutiara up to July 2012 was Rp1.108 trillion and was predicted to become Rp1.136 trillion by end of year. Meanwhile total asset up to July had reached Rp13.95 trillion with final target of Rp14.78 trillion.

Based on Bank‘s Business Plan [RBB] as elaborated by end of 2013 company’s equity was predicated to reach Rp1.5 trillion. Increase of equity was supported by prediction of company’s net profit by end of 2012 which was predicted to reach Rp180 billion and by end of 2013 to reach Rp 3 trillion.

About the option of bank buying using recapitalization bond, it would surely be advantageous to the Government, because we could sell Bank Mutiara based on the price set forth by the Parliament, i.e. Rp 6.7 trillion. Furthermore to buy Bank Mutiara by using recap bonds could also lessen interest burden to be paid by the Government. 

Rumors were out that a number of banks which were still holding recap bonds were persuaded to buy Bank Mutiara. This was done exactly during open IPO by deposit insurance body next year; among them was PT Bank Mandiri Tbk.

Although the option of buying bank shares might use recap bonds, ideally and politics wise the House as legislative body should be consulted. The reason was because in the past recap bonds pipelines to problematic banks was also solved by joint political decision between the Government and House.

Some notes to be set forth was Firstly, the use of recap bonds was best to be prioritized for buying banks which were in the process of “release” by the Government. Secondly, the use of recap bonds using the type of bonds the yield of which was rated as also that profit of buyer bank was not reduced.

Thirdly, the type of bonds to be used as medium of transaction by calculating the bond’s due date. In this case the bonds whose due date was still a long way to go, for example 2030. Fourthly, calculation of intrinsic value and market value of bonds being used as medium of transaction must be done rightly so it would not only fulfill buying value of Rp6.7 trillion, but also to enlighten Government’s burden of interest coupons and bonds.

Lastly, the discourse on option of bank buying by using underlying transaction in the form of recap bonds must be followed up by economical, fiscal, legal and political analysis so things  without rising legal disputes in time to come.

Business News - September 19, 2012

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