INVESTIGATION ON THE FALL OF KUTAI KERTANEGARA BRIDGE SHOULD BE CONTINUED

Commission V of the House of Representatives asked the Independent Team for Evaluation and Investigation on the Collapse of Kutai Kertanegara Bridge to cooperate with the Indonesian Police in continuing investigation on the collapse of Kutai Kertanegara Bridge. The Independent Team should coordinate with Indonesian Police’s Criminal Investigation Agency (Bareskrim Polri). This matter was conveyed during a meeting of Commission V with Head of Basarnas (National SAR Agency), Head of Bareskrim Polri, and Independent Team for Evaluation and Investigation on Collapse of Kutai Kertanegara Bridge at the House of Representatives’ Building.

Vice Chairman of Commission V, Mulyadi, said that Commission V asked Bareskrim to perform document collection from PT Perentjana Djaja as the planner and supervisor and PT Hutama Karya as the contractor. The documents needed are, amongst others, work contract; planning, performance, and supervision document; and evaluation and investigation on the bridge collapse.

Commission V also asked the Independent Team for Evaluation and Investigation on the Collapse of Kutai Kertanegara Bridge to continue investigation after Bareskrim Polri attempted to collect foregoing data.

In the meeting, the Independent Team admitted that it not yet received any data which is more comprehensive from contractor or consultant concerning the bridge fall for four months since it was assigned by the House of Representatives.

Chairman of the Independent Team, Iswandi Irman, said that his party has asked the contractor and consultant to submit of hanger system to reconstruct the beginning of the bridge collapse to verify the fall of the bridge of 710 meter length. Based on the previous conclusion, failure of the structure elements lies in the hanger system, namely between the hanger rod and the main cable. The hanger system is the weak point that causes the bridge collapse in November 2011.

To compare the strength, the Independent Team asked two things to the consultant and the contractor. Firstly, reconstruction of the hanger system like the original condition. Secondly, asking for the original hanger system which is still hanging near the pilon foundation to the direction of Tenggarong. These two materials will be tested and fully reconstructed at the Technology Assessment and Application Agency (BPPT) to verify the conclusion which was formerly submitted by the Independent Team.

The consultant and the contractor were asked to make them and compare them and test their strength in BPPT whether the bridge is already secure or not and whether its materials are according to standard or not. But, the team not yet received these materials to be tested.

Head of Bareskrim Polri, Sutarman, said that based on result of investigation, there is no yet assumption of criminal act of corruption on the bridge collapse. While, concerning assumption of general crimes act, an investigation has been performed on 62 witnesses from families of the victims, Kukar regional government, consulting experts, and other. Based on these, it was decided that 3 persons were arrested.

Based on a court hearing of June 6, 2012, the Panel of Judges has decided to impose punishment on three suspects, namely Head of Bina Marga’s Public Work Department of Kukar Regency, Yoyo Surjana; Officer of Public Work Department of Kukar Regency, Setiono; Head of Engineering Department of Bridge Business Unit of PT Bukaka Teknik Utama, M. Syahriar Fakrurrozi. 

Business News - July 18, 2012  

SUGARCANE SEEDS PRODUCTION TO BE INCREASED

Indonesia Sugar Plantation Research (PPPGI) is one of the oldest agricultural research institution in Indonesia, and has currently reached 125 years old. With such a long research history, PPPGI is the one who mastered national high-yielding sugarcane clones, therefore legally and formally, there is no other institution that has complete sugarcane clones. Suyoto Hadisaputra, Director of PPPGI, stated this matter.

This condition has caused capacity for producing high-yielding clones to be almost unlimited. The fact is that due to funding problem, the role in supporting an integrated sugarcane agribusiness is unoptimal, he said.

So far, PPPGI has been in a grey area as it is neither governmental institution nor a corporation so it faces funding difficulty.

Since 2010, the status of PPPGI has become clear. PPPGI has now become the subsidiary company of PT Riset Perkebunan Nusantara. While, PT Riset Perkebunan Nusantara is a company whose stocks are owned by all state-owned plantation enterprises in Indonesia. With its clear status as a corporation, PPPGI has been ready for business expansion.

The first thing to be done is meeting seed demand for sugar self-sufficiency. Currently, to meet sugar self-sufficiency requires seeds in a very large quantity. The present capacity of PPPGI to produce network culture seeds is 25 million seeds a year. This amount is very low.

Because in 2012, PPPGI will perform expansion by increasing production capacity four times to 100 million seeds a year. Next year, if demand remains high, it will be increased again. Even, it is attempted to produce up to 200-300 million seeds a year. Investment comes from the holding company, namely PT Riset Perkebunan Nusantara. Go sugarcane seeds are developed by network culture system in acclimation tubes for 6 weeks, than it is trans-planted on research field to become G1 and G2 seeds. G2 seeds are developed on test field to become G3 and G4 seeds which are ready to be cultivated on sugarcane plantations owned by farmers.

In any condition, PPPGI Pasuruan will continue to perform sugarcane assembly to acquire a high yielding variety seeds with various types of area. PPPGI is ready to support national sugar self-sufficiency program of 5.7 million tons, even though it is not supported by sufficient fund, with target of sugarcane seeds production at 8 billions of sugarcane bud chips.

Other technological breakthrough which is currently made by PPPGI is a tool for taking sugarcane samples for measurement of individual sucrose content. Several countries, for example Thailand, has applied individual sucrose content so that farmers who produce good sugarcane and those who produce good sugarcane and those who produce bad sugarcane, receive different rewards.

For this, a tool for taking samples from lorry or truck is needed. This tool is being developed and commercialized by PPPGI. With this tool, sucrose content analysis will be done objectively. Agriculture Minister, Suswono, expects PPPGI to continue developing and increasing high-yielding variety seeds so that farmers demand can be met and national sugar self-sufficiency can be achieved. I am sure that PPPGI Pasuruan who has been renowned and has been experienced will be able to fulfill it, he said.

The Agriculture Minister admitted that unclear status of PPPGI is a problem in giving funding assistance. Therefore, the Agriculture Ministry takes strategy by increasing social assistance to farmers. We provide high-yielding sugarcane seeds to farmers by the seeds we bought from PPPGI, he said.

The Minister stated that national sugar consumption is at 5.7 million tons, and to meet industry demand, it is still fulfilled by import. Meanwhile, to achieve sugar self-sufficiency program from sugarcane plants on a 450-hectare area, its sucrose content is still low. And, to increase sucrose content, sugarcane quality must also be increased by using high-yielding seeds. 

 Business News - July 18, 2012   

INDONESIA CALLS OUT THE WORLD TO SAVE CORAL REEFS

Indonesia called out and pled the international community to give serious attention and sound action in saving coral reefs and marine resource in the Karang Triangle (Segitiga Karang). The point was, so far the Triangular Reefs which consisted of sea was known for its wealth of biological bio diversity and enormous potential marine treasures.

In the global forum Indonesia was ready to make commitment to the program of Coral Triangle Initiative-Coral Reefs. Fisheries and Security (CTICFE). Soon the program would be the working platform of the Blue Economy concept. “This is due to some similarity with the guiding principles of CTICFF which put high priority on biodiversity conservation approach that stood on the public’s side” the Minister of Maritime and Fishery Sharif C. Sutardjo told Business News (12/7).

The Blue Economy concept was focused on the oceanic and maritime sectors, which was also emphasis on balancing of economic development. The environmental sustainability had its impact on welfare of the general public. On the other hand a healthy marine ecosystem was supportive to people’s life and sustainable economic development. Application of economic concept in the marine and fishery sector was expected to enhance a well balanced economic development between exploitation of natural resources and natural conservation. This was mainly because there would be balancing and change in orientation of development from land to sea.

Meanwhile Forum Rio + 20 sometime ago agreed on strengthening joint commitment on the implementation of CTI-CFF program as written in the Regional Action Plan (RAR) and National Action Plan (RAN). The action plan in various management program for coastal and sea resources was most comprehensive and was commonly agreed upon by six nations during the declaration of CTI-CFF Regional Initiative 2009 in Manado.

Furthermore Rio + 20 agreed on underscoring the importance of sea and coastal resources management. The reason was because management of sea and coastal resources had their impact on economic growth, poverty elimination, food resilience, and adaptation to climate change. From the strategic viewpoint, the initiative had stipulated the objectives and regional prioritizing to tackle various threats to biological sustainability of fishery resources and triangular reef. Such was signified by various acts of prioritizing by countries of the world which busted out in various conventions. The global scientific forum (CTI-CFF) was attended by more than 150 scientists, practitioners and Governments of member countries and there were 170 academic proposals presented in various sessions.

In the near future Indonesia planned to attend the International Coral Reefs Symposium/ICRS in Cairns, Australia. This symposium would discuss scientific approach on coral reefs in the effort to develop sustainable maritime and fishery industry. As planned, the Government of RI through the Ministry of Maritime and Fishery (KKP) would elaborate on the condition of coral reefs in Indonesia. ICRS was a scientific symposium to be conducted for 5 days attended by 2500 scientists from more than 80 countries to discuss research and latest development of coral reefs technology. “Outcome of the scientists’ research is important for the scheming up of coral reef management in many parts of the world” Minister of Sjarief was quoted as saying.

Dr Lubchenco had the opportunity to come up as keynote speaker representing Indonesia, the essence of his presentation was more or less as follows “CTI-CFF was a case of leadership, and interactions among disciplines, observers and scientists for developing and finding creative solutions to meet the challenges in food resiliency amidst anomalous weather and sea contamination”. 

Business News - July18, 2012

INCREASED WAGES TO GO IN TANDEM WITH PERFORMANCE AND PRODUCTIVITY

Thousands of workers united in the Confederation of Indonesian Labor Unions (KSPI) again waged a demonstration at Hotel Indonesia Circle and the Presidential Palace. The workers screamed out protest to demand abolition the Government to abandon cheap wages policy an implement decent pay policy by way of writing off the Article on granulizing policy which failed to be exercised in five years, Minimum Sectoral Wages 10% of UMK.

Responding to the workers’ claim, Vice Chairman of the Association of Indoensian Businesspeople (APINDO) Djimanto stated in Jakarta on Thursday (12/7/2012) that wages had strategic meaning to the workers and families, the company or even the nation. To the workers he said, wages was needed to support oneself and the family and as motivation for performance and productivity. To the company, wages was one of the key components of production cost which might contract or expand profit. So the company would strive to suppress wages to as low as possible whereby to increase profit. From the Government’s viewpoint wages was a medium for income equalizing and promoting welfare.

Stipulation of the minimum wages itself according to Djimanto had the objective of promoting wages of workers whose salary were still below minimum level. However some studies disclosed that the policy of minimum wages did not only influence workers’ salary whose pay was around minimum level, but it also had the impact on the entire distribution of wages. Therefore policy of minimum wages finally had its impact on price, business climate and employment. Increase of minimum wages would promote their purchasing power which would eventually motivate spirit and increase productivity. “In this case one thing that must be understood is that increase of salary would bring benefit to companies provided workers increase their productivity”  Djimanto remarked.

According to Djimanto, payroll based on productivity was the fairest, because wages were paid to workers according to their respective productivity or group of workers respectively. The company’s condition and productivity were influenced by each respective worker. If workers productivity collectively increased, Djimanto said, company’s productivity would increase as well. Accordingly if company’s productivity increased, workers deserved to receive high pay.

Djimanto was expecting that betterment of workers’ welfare would have their positive impact on company’s productivity and profit. Businesspeople and labor unions must communicate to build a harmonious industrial relationship, democratization, and justice. Both parties must synchronize perceptions on ways of maintaining harmonious industrial relationship whereby to increase productivity drum up investment and most of all avoid dismissals.

To quote data of the Ministry of Labor and Transmigration (Menekertrans), Minimum Provincial Wages (UMP) 2012 on the average showed increase of 10.27%. The percentage was higher than average UMP increase of 2011 which was only 8.69%. As a whole attainment of UMP against average national Decent Lfe Component (KHL) of 2012 in 33 provinces spread out all over Indonesia reached 88.60%. Djimanto explained that minimum wages was minimum standard used as reference by business players or industrialists to pay wages within their business circles or working environment. Since fulfillment of decent living differs with every province it was called Minimum Provincial Wages.   

 Business News - July 18, 2012