Crude palm oil (CPO) producers are to be obligated to set aside some of their products for domestic needs. Labels: Internet News
The domestic market obligation (DPO) policy will come into effect as from June 1, 2007.
“The DPO implementation is a mandate of the State Decree on Plantations,” said Anton Apriyantono, Agriculture Minister, after accepting bird flu vaccine aid from Chinese government at the Agriculture Department building, Jakarta, yesterday (29/5).
“(The implementation provision) is the Agriculture Minister Decision for a start,” he said
Anton explained that for the time being, the DMO policy was being implemented in order to fulfil domestic cooking oil needs because cooking oil is one of the nine staple household goods.
Therefore, CPO stocks are prioritized for domestic needs.
“It's unfortunate (for producers) if the price abroad is high, but we limit it here,” said Anton.
On the other side, in order to secure domestic stocks, the government cannot determine the price.
“We still leave the price to the market mechanism,” said Anton.
Regarding the CPO quota per producer, he went on to say it will be determined later with the Industry and Trade Departments.
“It can't be set by us alone,” said Anton
What is certain is the minimum limit being calculated based on the company's tax payment and amount shipped abroad.
Anton said that the DMO policy is effective even for companies associated with Malaysia.
Fahmi Idris, the Industry Minister, instead stated that the DMO policy for fulfilling domestic palm oil need will be effective by the end of the month.
He explained domestic CPO needs reach 4.5 million tons per year.
“So the obligation (DMO) amount is between 4.5 million to 5 million tons per year,” he said, on Monday (28/5) at the Vice President's office, Jakarta.
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Prosecutor Rejects Australian Expert Witness’ Statement
The public prosecutor in the review trial of the illegal drugs case involving Australian citizens--Tan Duc Tan Nguyen, Si Yi Chen and Matthew James Norman—has rejected an expert witness from Australia. Labels: Internet News
According to prosecutor Olopan Nainggolan at the Denpasar District Court, yesterday (29/5), the statement of Professor James R.P. Ogloff from Monash University was considered not to be relevant with the trial materials.
In his statement, Oglof said that during the last 30 years the number of countries which still implement death penalty continues to decrease.
The prosecutor also objected to the statement because the permit from the Australian Justice Minister for Ogloff was only sent by e-mail the print-out of which was not submitted during the trial.
The convicts' lawyer, Erwin Siregar, stated he brought a copy of Australian Supreme Court's statement that explained about Ogloff's whereabouts.
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Tuesday, May 29, 2007
MoU Must be Reviewed, Indonesian Workers in Malaysia Suffering Losses
A number of Indonesian migrant workers activists have asked the government to review the Memorandum of Understanding (MoU) with Malaysia signed in Bali in 2006. Labels: Indonesia, Internet News
The agreement is regarded as being detrimental to Indonesian citizens working as migrant labors.
Miftah, Chairperson of the Indonesian Migrant Workers Association, said that under the MoU, employers were allowed to seize employees’ passports.
This was despite passports being individual identities which cannot be held by anybody except police and immigration officers.
“But the government easily gives permission that passport is submitted to employers or agents in Malaysia,” Miftah told Tempo yesterday (27/5).
The policy that allows employers to hold passports, said Miftah, actually triggered the large number of trafficking cases.
It is not surprising therefore that the rights of Indonesian workers in that country are often violated.
For example, torture, unpaid salary, prohibition to marry at work place and impediments to meet family members.
“All are human rights violations,” said Miftah.
Anis Hidayah, Executive Director of Migrant Care, questioned the deportation policy carried out by Malaysia.
According to Anis, a lot of Indonesian workers are to be deported due to the wrong recruitment system in Indonesia.
“Indonesia should have been able to struggle to remove the deportation option, and fight for legalization. The documents are legalized because the laborers there actually already have jobs.”
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Tangguh Field's Gas for America Can Be Transferred to Other Buyer
The sales of some liquefied natural gas (LNG) from Tangguh gas field, Papua, to Sempra, United States, can be transferred to another buyer. Labels: Internet News
The transfer will be carried out if the LNG sales price is higher than that of Sempra’s.
Eddy Purwanto, Deputy of Marketing and Finance at the Upstream Oil and Natural Gas Business Executing Body, emphasized that the gas transfer from Sempra can be done to any other buyer.
“As long as the sales price is better than Sempra’s,” he told Tempo last weekend.
Based on information received by Tempo, gas sold to Sempra will be transferred to a buyer from Japan.
The reason is, Sempra's LNG facility was built quicker than first planned, in mid 2008.
Sempra signed Tangguh's 20 year gas purchase contract for a volume of 3.7 million tons at the price of US$5.94 per mmBtu.
Eddy went on to say, that the transfer of gas that was bought by Sempra to another buyer has compensations.
“Sempra will obtain certain compensations,” he said.
However, when asked whether the compensation was a penalty that the government must pay, Eddy did not give any answer.
Kurtubi, an oil and gas observer, said that the Tangguh gas sales price, which is under the average gas sales price from Badak refinery in East Kalimantan, will not result in any revenues for the state.
This is because, he said, with investment totaling US$6.5 million and the revenues totaling only US$8.5 billion for 25 years, all revenues are only sufficient to cover the investment costs.
“So what does the state obtain?” he said to Tempo.
Currently, the gas sales contract amounts to 2.6 million tons to Fujian, China for 25 years, with an average price of US$3.35 per mmBtu.
The contract with SK Power Korea amounts to 0.55 million tons for 20 years with US$3.5 per mmBtu sales price.
The contract with Posco Korea 0.55 million tons for 20 years with US$3.36 per mmBtu sales price and Sempra (West Coast, US) 3.7 million tons for 20 years with US$5.94 per mmBtu sales price.
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The Supreme Court has passed the judicial review proposed by the Association of Indonesian Private Television Stations (ATVSI) against the Indonesian Broadcasting Commission's (KPI) decision on the broadcasting performance guide and broadcasting program standard. Labels: Internet News
KPI must revoke the provisions, including mystic and pornographic television programs.
ATVSI Chairperson Karni Ilyas acknowledged having received the Supreme Court's decision recently.
“It was already sent to the Association's office this afternoon (yesterday). It was only the summary, the details will follow,” she said when contacted by Tempo yesterday (23/5).
In the decision, the Supreme Court gives three month time for KPI to revoke the letter no. 009/SK/KPI/8/2004.
If within three months the letter is not revoked, the provision will not have any legal force.
According to Karni, actually from the aspect of content, the association agrees with KPI provision.
“We agree that programs with mystic and porn nuance must in fact be limited,” he said.
According to him, the association's claim is more because KPI made the provision earlier than the government.
“In addition, KPI regulates the sanctions. Through the sanction is already regulated in the Broadcasting Decree,” he said.
In article 57 of the decision, for example, factual programs with occult, paranormal and black magic themes may only be broadcasted between 10pm and 3am.
The sanctions stated in article 77 are the forms of written notice, program temporary halt, duration
limitation, fines, freezing television program, turning down license extension up to television station's license revocation.
These sanctions are what the association considered as too heavy.
KPI acknowledged it will study the Supreme Court's decision.
According to KPI member, Don Bosco Selamun, the provision they made for all television stations including TVRI (state-owned television station), is normal.
“Because KPI is given the job in the Broadcasting Decree to protect the society from violence, pornography, sadism and mysticism,” he said.
According to Don Bosco, this KPI provision is different from ATVSI's code of ethics.
“ATVSI's code of ethics are valid for the internal, KPI's decision is general,” he said.
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World Health Assembly Grants Indonesia's Demand
The World Health Assembly, during the 60th meeting in Geneva, Swiss, granted Indonesia's request for a more transparent mechanism as regards sending bird flu virus samples. Labels: Health, Indonesia, Internet News
Because of this, developed countries will no longer be able to take advantage of poor countries attacked by bird flu.
“The resolution will bind all members of the World Health Organization (WHO),” wrote I Nyoman Kandun, Director General of Disease Control and Environmental Improvement at the Health Department, in a short message to Tempo yesterday (23/5).
Earlier, Indonesia refused to send H5N1 virus samples to the WHO's collaboration laboratory.
The reason for this is the virus, that must be given freely by infected countries, will later be used for research, including for producing bird flu vaccines.
The problem is, the vaccine made by developed countries will then be sold at an expensive price to the infected countries.
“Bird flu virus is provided free from developing countries, but medicinal companies take on a patent on the vaccines and sell it at an expensive price,” said Health Minister Siti Fadilah Supari.
According to Kandun, in the future the resolution will be followed up with cooperation among governments and among divisions.
The cooperation is aimed at revising the term of reference and documents on virus shipping.
“Virus shipping must be done transparently, responsibly and beneficially for all sides in maintaining the world's health,” he said.
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Thursday, May 24, 2007
Indonesia: Market for China's Export Product Remainders
Indonesian domestic product industries are losing the competition against China's imported goods in the domestic market. Labels: Bank, Indonesia, Internet News, Market
The goods from China which enter Indonesia are export remainders.
Cyrillus Harinowo, BCA's Independent Commissioner, said most of China's goods in Indonesia are export goods remainders.
“So the prices are much cheaper,” he said during the “Dragons at Your Door: China's Position in the World Trade Course and How Indonesian Entrepreneurs Response China's Excellence” discussion yesterday (21/5).
Almost all of Chinese exports to Indonesia are export product remainders sold at a very low price.
It is estimated that Chinese products that enter Indonesia amount to 10 percent of China's total exports.
Cyrillus asked that domestic producers make goods which can compete with China-made products.
This is because tariff and non-tariff impediments for restraining the export goods remainders are also not effective.
“It's difficult to face such goods,” said Cyrillus.
Imposing a 100 percent import duty, he said, would not influence the abundance of Chinese products.
The reason for this is that Chinese products will still be cheaper than the normal prices on the international market.
Cyrillus suggested that producers group together to produce medium quality products in order to face the invasion of Chinese products.
This is because Indonesia can export more natural resources products especially energy source and agriculture products that China does not have.
The University of Indonesia's Chinese Study Center Head, Ignasius Wibowo, said that productivity of workers in China is very high, so China can produce cheap products.
“No bureaucracy impediments and production costs are much cheaper. China has managed to build industrial centers,” he said.
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World Bank Supports Freedom of Information Bill
The public being ably to access easily information from governmental institutions is considered as one of the important factors in advancing corruption eradication. Labels: Internet News, Money
This was conveyed by World Bank communication officer, Ahmad Sukarsono.
“Indonesia already has good instruments for corruption eradication, but without public open access, i believe corruption eradication will be more difficult,” said Ahmad during the Workshop of Access to Obtain Information and Good Governance in Indonesia at Le Meridien Hotel, Jakarta, Tuesday (22/5).
According to Ahmad, the Freedom to Obtain Public Information (KMIP) Bill which is being discussed by the House of Representatives (DPR) will be the oxygen for corruption cases in Indonesia.
World Bank as a financial organization which often provides loans, supports this KMIP Bill being passed.
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The public buys medicine with a price that is actually higher than the standard price. This fact is rarely realized because the medicines are needed and the consumers are not given an option to use other medicines. Labels: Health, Internet News
“Patients are often deceived,” said the Head of Indonesian Health Consumers Empowerment Foundation, Marius Widjajarta, in Jakarta yesterday (21/5).
According to Marius, the foundation he is leading has carried out a survey in 25 hospitals in Indonesia. The result is the costs expended by patients for medical devices and medicines reach 60 to 70 percent of the total cost. “This isn't natural. Patients should only spend 30 percent of the total cost for buying medicines,” he said.
Marius assumed that the ruse against patients is practiced by pharmaceutical companies and doctors who give the prescription. Pharmaceutical companies set a high price for medicines they produce. “The difference can be 200 percent of the generic medicines price,” he said.
It is very rare that patients refuse a prescription given by a doctor. In the meantime, doctors have a motive that patients buy the medicines they recommend. “Pharmaceutical companies give commissions to doctors. The commission is a reward as the doctors prescribe the medicines they produce,” said Marius.
This sham actually does not have to happen if the government's role in monitoring the labeling of medicines runs well. The government must also issue a regulation to determine the price of branded medicines.
Director General of Pharmaceutical Service and Medical Device Improvement at the Health Department, Richard Panjaitan, said that the government does not have the authority to determine the prices of branded medicines.
The government is only authorized to determine the prices of generic medicines to be consumed by the public. “For determining medicine’s price, a law is necessary. Now the draft is being composed by us,” he said.
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AGO Reopens BPPC Case
The Attorney General's Office (AGO) will once again investigate the alleged corruption of the Coordination Body and Clove Marketing (BPPC) which involved Hutomo Mandala Putra a.k.a. Tommy Suharto. The investigation is the AGO's priority as it is considered as the case with the fastest verification process compared to the other Tommy's cases. Labels: Internet News, People
“The order to begin investigation was issued on May 7,” said Director of Criminal Act Investigation, Muhammad Salim, yesterday (21/5).
Salim explained that the indications of corruption in the BPPC case are strong. He said these include the requirement that BPPC did not carry out as regulated by the Presidential Instruction No. 1/1992. However, he did not explain it further.
Salim also stressed he will examine all sides related to BPPC, including the former Main Village Unit Cooperative Chairman, Nurdin Khalid. The AGO team, he said, is formulating the role of the main cooperative chairman.
AGO's Civil Director, Yoseph Suardi Sabda, said the alleged corruption in BPPC can be made as a means of disbursing Tommy Suharto's money in Banque Nationale de Paris (BNP) Paribas of the Guernsey branch by the Indonesian government. If the investigation states Tommy's money must be seized, Yoseph believes that the money in Guernsey can be used to pay the compensation. The disbursement can be done through the civil and criminal procedure.
Tommy's lawyer, O.C. Kaligis, is of the opinion that AGO's measure is only a manipulation and seems to be forced. “The main purpose is only the verification of the Guernsey trial,” said Kaligis when contacted by Tempo.
A member of the Indonesian Corruption Watch (ICW) working body, Adnan Topan, is optimistic about the AGO's scenario. “The case hasn't expired. AGO can even name Tommy as a suspect,” he said.
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“England Must Oversee Origins of Oil Palm” Labels: Internet News
England, as the biggest palm oil importer in the world after the Netherlands, must set up tight regulations on the origins of palm oil, which is to be a bio-fuel base commodity. This is because the development of a palm oil estate is closely related to deforestation and the orangutan slaughtering.
“We hope that the palm oil plantation will not destroy forests or habitats,” said Director of the Centre for Orangutan Protection (COP), Hardi Baktiantoro, during a rally in front of the British Embassy, Wednesday (16/5). In the rally, four COP activists wore the uniform of plantation officers and carried orangutan puppets, also fuel jerry cans.
Throughout 2006, said Hardi, the rescue team from the Forestry Department and the Nyarumenteng Orangutan Reintroduction Center, Central Kalimantan, managed to save 368 orangutans from a number of palm oil plantations. The plantation workers generally consider orangutans as pests as they eat palm oil leaves. They also chase orangutans from palm oil plantations. As a result, orangutans lose its habitats, water and food sources.
“This cruelty is a violation against the Decree No. 5/1990 on Natural Resources and Ecosystem Conservation. The perpetrators could face five year imprisonment or Rp100 million fine,” he said.
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The producers of crude palm oil (CPO) lowered the sales price at the factory level to Rp6,100 per kilogram starting yesterday (14/5). On Friday (11/5), the CPO sales price was Rp6,500 per kilogram. Labels: Internet News, Money
By the decrease of the CPO sales price at factory level, it is expected that the price of cooking oil can decline to between Rp6,500 and Rp6,800 per kilogram, as expected by the government. The national average retail price of cooking oil is still Rp7,900 per kilogram.
This was an agreement between the government and CPO and cooking oil producers during the cooking oil price evaluation meeting at the Trade Department yesterday.
In the agreement in early May with the producers, the Trade Department threatened it will impose sanctions in the form of a hike in CPO export levies if producers could not lower the cooking oil price to Rp6,500-Rp6,800 on June 1.
Industry Minister, Fahmi Idris, said that producers were ready to supply between 100,000 and 150,000 tons of CPO to Java and outside Java. “As much as 80 percent goes to Java,” said Fahmi after the meeting.
Director General of Agriculture Products Marketing and Processing at the Agriculture Department, Djoko Said Damardjati, said yesterday that producers who are not in the Indonesian Palm Oil Entrepreneurs Association were also willing to provide 10,000 tons of additional CPO, which only awaits the approval of company leaders in Malaysia.
The price of cooking oil up to last weekend in several regions was still high.
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Some State Officials Do Not Pay Tax
The Tax Directorate General revealed several names of state officials who have not paid tax or submitted the Yearly Information (SPT) of Tax. “They also don't have a personal tax number (NPWP),” Tax Director General Darmin Nasution told reporters in Jakarta, yesterday (14/5). Labels: Internet News, Money, Tax
Although he has pocketed the names, he refused to explain the identities of state officials who did not pay tax. He was also reluctant to give the details of institutions or departments of the officials who did not report their tax obligation by the Tax SPT because he will first report the cases to President Susilo Bambang Yudhoyono.
Regarding the names of civil officials of echelon IV up to I who neither have NPWP nor submitted Tax SPT, they will be reported to the respective ministry or state institutions. “This is a part of tax intensification to optimize the state revenue,” he said.
A House member, Andi Rahmat, said that the signals of state officials not paying tax have already been there a long time and this could happen. However, there is a possibility that the officials did not intend to break the law or avoid the obligation to pay tax.
The State officials generally have NPWPs. The problem is, he said, they are not accustomd to filling out Tax SPT. “Perhaps many ministers don't know how to fill out Tax SPT,” he said while mentioning that he already filled out his Tax SPT.
Therefore, he said that the Tax Directorate General must intensify the campaign of self assessment of tax much more. “Everybody must have an NPWP, especially those whose income exceeds the income that is tax-free,” he said.
He was sorry that Indonesia does not have a solid system yet like European countries which already implemented NPWP ownership. “In Europe, even people who want to make a call must show his or her NPWP, so they comply with the tax system,” he said.
He still supports the publication of the tax embezzlers. “The Tax Directorate General's findings must be revealed soon so that people feel the obligation to pay tax.”
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Tax Officials to Hunt Down Sukanto Tanoto
The Tax Directorate General at the Finance Department will concentrate on hunting down the main players in the Asian Agri Group tax embezzlement case, including the company's owner Sukanto Tanoto and the other shareholders. Labels: Internet News, Money, Tax
Mochamad Tjiptardjo, Director of Tax Intelligence and Investigation at the Finance Department's Tax Directorate General, did not deny the possibility that the Asian Agri's owner could be legally charged.
”If there is proof, then why not? This is already classified as a criminal case,” said Tjiptardjo in Jakarta yesterday (15/5).
“The numbers of the suspects and the amount of the state's losses may increase,” he said
When asked the same question, whether or not the Tax Directorate General would also hunt down Sukanto Tanoto, on a separate occasion, Finance Minister Sri Mulyani Indrawati said, “We'll see how the Tax Directorate General handles the case. But clearly, the government will chase after payment of all the tax debts plus the fines.”
On Monday (14/5), the Tax Directorate General already stated that five Asian Agri Group directors were suspects of tax embezzlement. The five persons' initials are LA, WT, ST, TNK and AN.
Asian Agri is the second biggest holding company in the Grup Raja Garuda Mas – a company owned by Sukanto Tanoto, Indonesia's richest person in 2006 according to Forbes magazine.
According to Tjiptardjo, 18 members of the Tax Directorate General investigation team are working domestically and abroad to search for new findings in the case.
The legal base being used to charge the embezzlers, including those who asked for the manipulation to be carried out, he said, was Decree No. 16/2000 on Tax General Provisions and Procedures.
So far, according to him, the case development was only as far as the involvement of the five Asian Agri directors.
Signs regard new suspects have not yet been reached at this level of the investigation.
It is so far estimated that the state's losses amount to Rp786.3 billion, or around 30 percent from the total funds marked-up by the company which reached Rp2.62 trillion, but this amount could rise.
According to M. Salim, Director of the Attorney General's Office Investigators, the AGO is still analyzing public complaints about Asian Agri’s alleged corruption and tax embezzlement practices.
“We just received the reports last week,” said Salim.
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Saturday, May 12, 2007
China Asks Broadcasting Commission to Freeze 'Voice of Hope' Radio
The Chinese Embassy asked the Indonesian Broadcasting Commission (KPI) to freeze the 'Voice of Hope' radio program in Batam. The Commission received the request from the Counselor Minister at the Embassy of the People's Republic of China in Jakarta, Monday (7/5). Labels: Internet News, People
“They said the radio often broadcasts political propaganda by speading anti-China teachings,' KPI Chairman, Sasa Djuarsa Sandjaya, told Tempo, Tuesday.
The radio station owned by PT Radio Semesta Baru, said Sasa, was suspected of having spread Falun Gong teachings. In its country of origin - China – in the beginning Falun Gong was only a part of martial arts. However, the Chinese government believes that the teachings are misleading.
According to Sasa, the Commission cannot cancel a radio station's permit abruptly. The measure that is to be taken must first be discussed with the Foreign Affairs Department and the State Intelligence Agency (BIN). In addition, the Press Council's opinion must also be considered, whether or not the program's material is in line with the journalistic code of ethics in Indonesia.
The 'Voice of Hope' radio is community radio which has been on-air in FM 106.5 frequency. Around 50 percent of the radio programs' material is conveyed in the Mandarin language. “Half in Indonesian language,” said Sasa.
The Embassy of the People's Republic of China's Counselor Minister for Indonesia, Yu Hong Yao, stated he did not intend to interfere with Indonesia's affairs. “We are only informed that there is Falon Gong in Indonesia, “Yu told Tempo.
According to Yu, he agreed that Falun Gong's activities are only limited to health and well-being. “But if it comes to politics and defaming the Chinese government, then we don't want it,” said Yu.
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The police have frozen nine bank accounts that belong to PT Wahana Bersama Globalindo, which is suspected of having embezzled its customers' funds. Labels: Bank, Internet News, Money
According to Adjunct Chief Commissioner Tornagogo Sihombing, Head of the Jakarta Regional Police’s State Security Unit, most of the bank accounts' balances were nearly zero.
There were accounts with some funds, he said, but at most the balances were Rp1 million.
“We have already frozen nine accounts, including those in Citibank, BII, Bank Mandiri and BCA,” said Tornagogo yesterday (9/5).
Tornagogo went on to say that freezing the accounts was aimed at securing the assets of company which was suspected of having embezzled customers' funds totaling at least Rp1.4 trillion.
The police have also frozen other assets such as land, buildings and vehicles.
However, Tornagogo acknowledged he could not yet estimate the total value of the frozen assets.
He explained that the company which had been operating for 10 years started to become unsteady when customers in Surabaya withdrew their money in large amounts
“Then this affected other branches,” he said.
According to Tornagogo, the police are also investigating whether or not there were any misconducts in the customers' funds management because the funds collected in one city should have been transferred directly to Dressel.
“But lately funds have been transferred to Wahana first, not directly to Dressel,” said Tornagogo.
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The government will accelerate the privatization of several state-owned enterprises (SOEs) this year. Labels: Internet News
“Privatization that has already been approved by the House of Representatives (DPR) must be speeded up,” Sofyan Djalil, SOE Minister, told reporters at the Presidential Office, Jakarta, yesterday (7/5).
Sofyan was installed as SOE Minister recently, replacing Sugiharto in the cabinet reshuffle announced by President Susilo Bambang Yudhoyono, on Monday (7/5).
In addition to BNI, he said that SOE privatizations to be accelerated include PT Wijaya Karya and PT Jasa Marga.
“As regards Garuda (Indonesia), I don't know yet,” said Sofyan
According to him, another privatization that must be accelerated include further divestment and the rights issue of PT Bank Negara Indonesia because this has already have approved by DPR members.
“With right issue to market, capitalization will be strong,” said Sofyan.
DPR in fact approved BNI privatization using a secondary public offering of 15 percent and rights issue of 15 percent with an additional option of five percent.
Maximum divestment is 35 percent and minimum 30 percent.
Currently, 99.17 percent of BNI shares is owned by the government and the remainder by the public.
Divestment of BNI shares is aimed at fulfilling privatization target in the State Budget by Rp3.3 trillion.
Further BNI divestment is targeted to be realized in the first half of this year.
Wijaya Karya will carry out an initial public offering (IPO) of 35 percent with targeted proceeds of Rp500 billion.
As regards Jasa Marga, it will offer 30 percent shares in an IPO, with proceeds target of Rp2 trillion.
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Wednesday, May 09, 2007
State Suffers Tens of Million Rupiah Losses Due to Fictitious Tax Invoice
Up to early May 2007, the Tax Directorate General has found nine cases of fictitious tax invoices which caused the state to suffer more than Rp20.1 billion in losses. The five fictitious tax cases were in Medan, North Sumatra; one in Jambi; two in Lampung and one in Jakarta. Labels: Internet News, Money, Tax
The Director of Tax Intelligence and Investigation, Mochamad Tjiptardjo, said in Jakarta yesterday (7/5) that tax officers were also finalizing the investigation into the fictitious tax invoice carried out by a consultant office in Jakarta. “We continue concentrating on this case as the loss is certainly higher (than the findings in the nine cases),” he said.
The findings in the fictitious tax invoice cases, he said, were based on the complaints, reports and information from the general public to the tax investigation officers during 2007. The mode of operation includes preparing annual notification letter on behalf of the taxpayer's name with the claim amount already arranged based on the taxpayer's request, also issuing and using fictitious tax invoices.
Based on the administration records of the Tax Directorate General, he said taxpayers, either a body or individual, who have become suspects did not have tax numbers or never submitted the annual income tax notification.
He stressed that every action of using fictitious tax invoices is subject to imprisonment in line with Article 39 Paragraph 1, Letter a,b and c in conjunction with Article 43 Paragraph 1 of the Decree No.16/2000 on Tax General Provisions and Procedures.
The Head of the Tax Investigation Sub-directorate, Ilhamsyah, said the perpetrators who abused the fictitious tax invoice have become suspects.
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Tuesday, May 08, 2007
Industry Asked to Build Factories in Gas-Surplus Areas
The government asked industry to build factories in a gas-surplus area in order to ease energy fuel distribution to the industries. Labels: Internet News, News
“Now it's time for industries to follow the energy, not vice versa,” said Minister of Energy and Mineral Resources, Purnomo Yusgiantoro, during the presentation, Jakarta, Friday (4/5).
Purnomo said about the industries that can be developed in gas-surplus areas, such as Sulawesi and East Java, “Those which are not bound by gas contracts .”
Several areas which were listed as undergoing gas deficits until 2009 include North Sumatra and East Kalimantan.
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The government ordered PT Minarak Lapindo Jaya to pay compensation to locals starting this Monday. This was included in the points of agreement resulting from the dialog between the government, hot mudflow victims and Lapindo, Wednesday (2/5). Labels: Internet News, Money, People
The dialog that went on from 3pm to 9.30pm was attended by the government – comprising the Sidoarjo Mudflow Handling Agency and the National Land Agency- PT Minarak Lapindo Jaya; Head of Sidoarjo Regional Representatives Council (DPRD); Porong District Chief, Tanggulanging District Chief also representatives from four villages – Jatirejo, Renikenongo, Kedungbendo and Siring.
“Compensation must be paid as soon as everything has passed the verification of notary or officials empowered to draw up land deeds (PPATK),” said Head of the Sidoarjo Mud Handling Agency Advisory Board Chairman, Bachtiar Chamsyah, during a press conference after the tripartite negotiation, at the Social Affairs Department, Jakarta, Wednesday.
In addition, the agreement says if a resident does not have the building permit (IMB), the building width will be based on the Sepuluh Nopember Technology Institute, Surabaya's (ITS) data. Then, if the ITS data is lacking, the building width will be based on the letter of resident's statement legalized by the government based on the Government Regulation No. 14/2007.
Sidoarjo DPRD Chairman, Arly Fauzi, acknowledged he was not satisfied with the agreement. This is because there has not yet clarity about the definition of 'certificate legalization by the government.'
One of the residents' representatives, Khairul Huda, also said he was dissatisfied with the agreement.
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It is possible that the Bank Indonesia's interest standard (BI Rate) will decrease due to deflation (goods and service's price decreases) last April. Labels: Bank, Internet News, Money
It is estimated that by the end of the year, the BI Rate could reach 8.5 percent.
“The room for a BI Rate decrease is larger,” said Burhanuddin Abdullah, Bank Indonesia (BI Governor) in Jakarta yesterday (2/5).
Deflation, he said, also enlarged the possibility of reaching the inflation target of six percent plusor minus one percent.
“The possibility to reach the inflation target is larger,” he said.
On Tuesday (1/5) the Central Statistic Bureau (BPS) announced there was 0.16 deflation, better compared to in March which underwent inflation of 0.24 percent.
Of 45 cities surveyed by BPS, 30 cities or 66 percent underwent goods and service's price decreases, while the remainders underwent inflation.
The deflation was due to the decrease of prices shown by the decreasing index of food category (11.30 percent) and leisure and sports education (0.03 percent).
The causes of deflation include the drastic decrease of rice and red chili prices as also other vegetables.
In the State Budget 2007, the government targets annual inflation to be 6.5 percent while BI's target is six percent plus-minus one percent.
Currently, the BI Rate is at the level of nine percent.
During the meeting of Governors Board in early April, the central bank did not lower the interest standard as there was a threat of inflation.
Boediono, Coordinating Minister for the Economy, stressed that the deflation in April was extreme.y good agreeable because it strengthened the government's optimism in maintaining economic stability.
Therefore, the government will maintain the low inflation rate maximally in the following months.
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A business group from Russia, Altimo – Alfa Group is rumored as ready to buy 42 percent of the PT Indonesian Satellite's (Indosat) shares owned by ST Telemedia (Singapore). Labels: Internet News, Money, Network, People
Coordinator of the Business Technology and Information Analysis Institute, Musarman, explained that from the result of his institution's study, Altimo's plan to buy Indosat was discovered. “They provide US$2 billion of funds (around Rp18 trillion) for the transaction,” Musarman told Tempo in Jakarta yesterday (30/4).
He said that in order to realize the plan, Altimo has designed two scenarios. First, Altimo will directly buy 42 percent of Indosat's shares from ST Telemedia. Second, Altimo, through the State Enterprises Ministry, will buy all Indosat's shares that are owned by the Temasek Holding's subsidiary.
Musarman said, in carrying out the missions, Altimo utlized its representative in Jakarta to perform lobbying. “The name is Suharto,” he said.
When asked for confirmation, Suharto, who was in Russia, disputed the accusation. “That's not true,” he said.
He promised he would respond to the accusation by the time he returns from Russia. Indosat's spokesperson, Adita Irawati, also acknowledged not having information about the purchase plan. “So far we only know about the issue from the media,” she said.
Earlier, the government was also interested in buying back Indosat's shares from PT Telemedia. Vice President Jusuf Kalla, on many occasions, stated that the government wanted to buy back Indosat's shares. Adding to this, many groups in the House of Representatives (DPR) and the Regional Representative Councils (DPDs) continue generating support for the plan.
Indosat's shares on the floor of the stock market has been recording a rise since last week. On yesterday's trade, Indosat's price closed at Rp6,800 per share, rising Rp400 compared to Wednesday's (23/4) price of Rp6,400.
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Tuesday, May 01, 2007
Manpower Minister: Outsourcing Contract Provision Put Labor at a Loss
Minister of Manpower and Transmigration, Erman Soeparno, said that the provision about outsourcing (sub-contract) workers in the Manpower Decree No. 13/2003 must be reviewed because it causes workers and laborers to suffer losses. The Article does not regulate the provision that a new company must extend the laborers’ contract after two years time. Labels: Internet News, People
“Many of the laborers’ contracts were not resumed and in the end they lost the job,” said Erman during an official visit to Pulogadung industrial zone, yesterday (30/4).
He said the Manpower Decree should have regulated the sanction for companies that do not extend the laborers’ contracts. “So that companies do not act arbitrarily,” he said.
In addition, the law must not regulate a company’s obligation to establish workers as permanent employees after the two-year contract term is due. As a result, companies often do not resume the contract.
Head of the Indonesian Prosperous Trade Union Confederation, Rekson Silaban, agreed that the provision on outsourcing contracts is reviewed. The Decree No. 13/2003, he said, still needs many Government Regulations. “There hasn’t yet been the detailed regulation, including about the companies’ reserves funds,” he said.
He also asked that the regulation on Workers’ Social Security be revised, especially the policy of unemployment and severance pay. In addition, the government needs to guarantee the use of the industrial relations court.
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