SBY (AKA Save Bakrie, Yudhoyono) & Development...

I have not posted much lately. This has nothing to do with writer's block or similar ills that plague us all every now and then. Rather, it was a conscious decision to hide behind being "too busy" at work to blog. The truth though is more along the lines of getting a little bored with bagging SBY all the time. But, some things that the president says really are worth commenting on and this is one of them.

It seems that Susilo Bambang Yudhoyono has had a "No Shit, Sherlock" moment. This little moment came when the president was signing-off on an accelerated economic (or is that eco-comic?) development plan at the State Palace in Bogor. It appears that SBY (Save Bakrie, Yudhoyono) believes development in Indonesia has failed during his tenure because of five illnesses. The five illnesses is a pretty convenient number as it fits the same basic framework as Pancasila or the five basic principles that the modern state of Indonesia is founded upon.

What Stupid Bloody Yudhoyono is doing here is passing the buck. He is the classic "buck-passer". He is the consummate "I am the president, so it is someone else's fault" type of guy. Simply, why take responsibility when you think that Teflon is a genetic trait?

The five illnesses plaguing Indonesia are:

1. an inefficient bureaucracy (dealt with by black-balling the best performing, and reforming, Minister he had and forcing her to a post at the World Bank);
2. regional governments (to be dealt with by removing direct elections in favour of central government appointments);
3. investors who promise the world and then do not deliver (hmmm, didn't SBY come to the presidency promising the Indonesian people the world and delivering it to his family and friends?);
4. a flawed legal system (the system is not the problem, the enforcement within the system is the problem, as is an inefficient and hands-off president who allows the institutions of state tasked with combating corruption to be undermined by special interests); and
5. unhealthy political interests (what the president really means here is that he has been held hostage by the short and curlys by these very special interests, and happily so).

It seems like the events in Tunisia inspired events in Egypt which have further inspired others in the Middle East to express their collective desires for change. I wonder how long it is until the Indonesian people feel it is time to express their collective displeasure at a government that promises much and delivers nought? Maybe it is time that the masses returned to the street with a view to re-invigorating reformasi and finishing that which was started in 1998?

Ho hum...

Sherlock out!

The Evolution Of A Corruptor...

Something that I picked up off Facebook...

Good to see that Indonesians, even in these testing times, have a sense of humour.

"Poor" SBY...

The President of Indonesia, Susilo Bambang Yudhoyono or "SBY" to those in the know, has gone on the record (Kompas) intimating to high-ranking police and military officers that he understands their suffering on the salary front because he has not had a salary rise in more than seven years.

However, this is the kicker, what the president did not say is that his salary is already twenty-eight times the GDP per Indonesian. 

One of the fundamental questions with respect to eradicating corruption in Indonesia is whether or not a significant rise in the level of salaries of police and other officials of state will reduce the reliance on illegal fees to supplement those meager salaries, and thereby reduce corruption. It was within this framework that the president was promising to reinvigorate the government's commitment to improving the prosperity of members of the Armed Forces and Police.

Now, most people would not begrudge a salary increase to those who have earned one. Simply, where performance justifies a salary increase then it is fair that an increase occur. Yet, in situations where performance is poor or promises have been broken, then it is not only hard to justify a pay rise but it is the height of arrogance to be suddenly crying poor, particularly when it would seem that one's workload is not so extreme that there is no time to put out an album of favourite songs to entertain the masses rather than feed them.

A survey by The Economist highlighted that SBY was enjoying a salary that ranked him third highest from twenty two countries surveyed. So, what is this in dollar terms? The president enjoys a salary of more than USD 124,000 per year. Interestingly the two leaders in front of him were Kenya (240 times GDP) and Singapore (42 times GDP). It is worth noting that this is the basic salary of the president, according to The Economist. Therefore, it does not include all the fringe benefits that the Head of State enjoys.

The sad truth of the matter is, Mr President, that you have not earned a pay rise. Even more telling in your attempt at empathy is that you really have lost touch with what it is like to be poor in Indonesia and living on or below the poverty line in a nation with vast national wealth and huge potential for growth but with a leadership that has no commitment to anything other than preserving itself. Mr President, perhaps it is time to worry about doing your job, the one you were elected to do and the one that has nothing to do with singing, rather than how long it has been since you have had a pay rise!

Ho hum...

Bank Century, Bailouts, Quorum, and Libel: Need or Diversion?

No apologies on the long-winded nature of this post. Some will find it interesting and some will be bored to snores.

The Bank Century issue is one that has lingered and lingered, and will seemingly linger some more. It is an interesting political issue in the sense that so many are staking so much on "the case" being resolved. However, the issue, at least for some, for a long time, has been whether or not there is in fact a case to be resolved.

The previous hearings on the "scandal" presumably saw most, if not all, of the pertinent information revealed and placed onto the record. However, it would seem that Golkar, under the auspices of the one and only Aburizal Bakrie, alleged artful tax-dodger, that there is more to the Bank Century scandal than meets the eye. Therefore, Golkar is pushing hard for a full-scale inquisition to re-ignite the Bank Century case in the public arena. The cynics among us will surely not miss that Bank Century will serve as an excellent foil for the immediate aftermath of the Gayus debacle which would have seen some focus return to the Bakrie family and their business accounting practices. A diversion? To each their own.

The question then becomes: "Is there a need for the Bank Century matter to be replayed and re-tried in the court of public opinion through a long and drawn out parliamentary process?" On information currently available and the information that wended its way into the public domain the last time around, the answer is no. Any further inquisition is a waste of time and tax-payers money. Yet, perhaps another round of Bank Century frivolity can put this case to rest once and for all.

A point that must not go unnoticed is that the case has ramifications for the 2014 presidential elections. So, in no uncertain terms much of the desire to keep the Bank Century scandal running is nothing more than cynical political electioneering and an attempt to remove possible challenges to the status quo. Here is a scenario that not a lot of people are talking about yet, but they will.

Sri Mulyani Indrawati, the former Finance Minister and current Managing Director of the World Bank Group will undoubtedly be a target of Golkar in its inquisition. The reason is that Aburizal Bakrie has an axe to grind and she is perceived as a threat to him and his political aspirations. Indrawati has the added value of being perceived as "clean". Clean in no other sense of the word than free of the taint of corruption. The point of the Bank Century scandal is a cynical effort to taint her with the stench of corruption that has and continues to permeate to the core of Indonesian politics.

Aburizal Bakrie wants to be president and Indrawati has the credentials to stand in his way. In fact, there are many who believe that she would make a good president of the Republic of Indonesia herself.

But, Indrawati aside, there are others who can be tainted by the brush of corruption and as such "tarred and feathered" in the public eye. These include the son, Edhie Baskoro, of the current president, SBY. There has been an equal amount of 2014 presidential election talk that the democratic party are looking at cementing the Yudhoyono family political dynasty by either anointing the First Lady, Ani Yudhoyono, or Edhie as the successor and rightful heir to the big chair, RI-1.

Therefore, the current libel case being played out in the Central Jakarta District Court has much relevance to those aspirations of the Demokrat Party and Edhie Baskoro himself. Edhie along with Djoko Suyanto (Coordinating Minister for Legal, Political, and Security Affairs), Andi Mallarangeng (Minister for Sport), and Hatta Rajasa (Coordinating Minister for Economic Affairs), have launched a libel action against Mustar Bonaventura and Ferdy Simawun.

Bonaventura and Simawun are from a group called Bendera (Benteng Demokrasi Rakyat / People's Defense for Democracy) (Benteng is a fort and it is used here in the Alamo sense of being the last holdout against the invaders that are all around them. Bendera is also the Indonesia word for Flag). The group is oft described as being an ultranationalist youth group whose first real moments in the public eye came with calls to destroy Malaysia.

Bonaventura and Simawun were at the forefront of claims that Edhie and the others were the recipients of almost USD 200 million in kickbacks from the Bank Century scandal. Aside from Edhie and the others, the implication was that these kickbacks were used to fund others as well and hence the corrupt monies flowed to SBY and others in his inner circle, thus tainting them all with corruption.

The Demokrat Party and some of the other members of the governing coalition have been quick to point out that they are going to try and thwart any re-opening of the Bank Century scandal. However, there are a couple of "problems" on that front. The Constitutional Court recently lowered the numbers necessary for parliamentary quorum to be achieved in order to trigger debate from 3/4 to 2/3. In simple terms, the 26% of the seats that the Demokrat Party held in the House are no longer sufficient to ward of any public pronouncements by the parliament on issues that the Demokrats find striking a little close to home.

Nevertheless, if Golkar was dead set keen to tarnish the reputations of as many political opponents as they can, then they should be channeling much of their attention to the Central Jakarta District Court in support of Banventura and Simawun. They could conceivably be doing this out of the public eye.

The first trial hearing in the libel case was a mess. It was a mess because Bonaventura and Simawun refused to enter the court until their supporters were allowed to be seated in the court for the hearing. For some reason this was permitted. Chaos was almost certain to follow. When Bonaventura and Simawun were finally brought to court and seated for the opening salvos, it was not long before the proceedings degenerated into shouting matches between supporters and witnesses with judges trying to keep order. In the end, the judges ordered the chamber cleared of Bendera supporters, at which point Bonaventura and Simawun left the building with their lawyers in toe. They left because of the inherent unfairness with which their supporters were being treated.

Seriously though, I have no problem with supporters being present, but there are rules and etiquette to be observed in a courtroom whether you like it or not. One of those rules is that there is to be civility, which means that the judges were well within the bounds of fairness to remove unruly supporters.

Nevertheless, unruly supporters aside, the case is an excellent opportunity to put on the public record all and sundry with respect to evidence of the corruption linked to the Bank Century case. In that sense, like it or not, the Bank Century scandal is not done and any dirty laundry, if it exists, can certainly be aired in a libel case like this one.

The reality for Bonaventura and Simawun is that merely getting Edhie and his cohorts up on the stand and asking them whether or not they took the kickbacks is not going to "cut the mustard". The only way that the defense will corner any of these men into confessions is to overwhelm them with the truth of the allegations that have led to the libel petition being filed in the first place. This was evident in the short proceedings of Thursday when Suyanto sat in the witness chair.

Saor Siagian for the defense asked Suyanto whether or not he had received Bank Century funds. Suyanto's simple response was he was not involved in the case. The only way that Siagian can resolve this good ol' Mexican standoff is to have a little more ammunition left in the gun. There needs to be a magic bullet that ties all these claims together and proves that kickbacks were paid. If not, then Siagian has a hard road to hoe that is going to end up with his clients being found to have committed the offense as claimed.

And, this is where Golkar and other Bank Century conspiracy theorists can help Bonaventura and Simawun. Simply, if they have anything like hard evidence as opposed to hearsay, innuendo and the odd creative thought process, then now would be the time to put it out there.

But, getting back to where we started; a need or a diversion? You be the judge!

Gayus Tambunan, Seven Years, and Justice Seen to be Done?

Gayus Tambunan, the corrupt tax official, received a sentence of seven years for his crimes. On hearing the verdict, Gayus thanked the judges for being fair and impartial, lambasted the incompetent and lying Legal Mafia Eradication Taskforce, and hinted that the CIA was involved in the process of helping him out.

The big question that most people are asking in the immediate aftermath of this decision is: "Was justice done and was justice seen to be done?" Perhaps the 'real' question is whether there is any difference in those two concepts; justice and justice seen to be done.

The prosecution demanded a sentence of 20 years. When one considers the scope of the fraud and the corruption that was alleged in this case, then 20 years was probably not a manifestly excessive request. So, a sentence of 7 years does seem to be on the light, the very light, side of the justice equation. This leads to the idea of justice being seen to be done. In this case, seven years leaves a bitter taste in one's mouth when there are others sent to prison for fraud and corruption cases that involved considerably less losses for considerably longer periods of time. Justice was not seen to be done in this case.

It is a foregone conclusion that the prosecution will appeal this verdict. Based on the 12 instructions issued by the president, it would be a toss-up as to whether the president would want this case to be an ongoing distraction. Perhaps, the Legal Mafia Eradication Taskforce will say "we have done our job and we are outta here...thanks for coming!" After all, the president said he wanted the Gayus case resolved, and it is. Although, the result is hardly a positive outcome for anyone but Gayus who would have been thinking that 20 years was a very real possibility.

Nevertheless, the real question for the president, for law enforcement officials, and to a lesser extent the community is "what happens next?" The reality is that the trial of Gayus Tambunan was a media circus, but in amongst all those shenanigans were some rather explosive allegations and counter-allegations. All of these allegations must be investigated and  'resolved'.

The companies that had dealings with Gayus need to be worried. The individuals that have had dealings with Gayus or who are in someway connected to him need to be worried. The biggest issue now facing the president is does he modify his instructions a little to demand that the KPK become the lead investigator on all these matters or does he let the corruption-tainted national police force continue to participate in a charade where public perception is clearly that the police are operating in a way to protect their own interests and their own people.

The reason this is such a test for SBY is that some of the companies involved are conglomerates owned by well-connected people with special interests that they will be seeking to remove from public scrutiny. The "biggie" now is does the president have the testicular fortitude to take these matters head on an exhibit some leadership to his people? Or, does he do as he has always done hand it off to one of his many minions so that he can later use "plausible deniability"?

But, getting back to the sense of justice and justice being seen to be done. The argument is really one about what is a legally sound judgment and what is a sound judgment with respect to public perceptions. Seven years does not satisfy the public perception of either justice or justice being seen to be done. In a strict legal sense, a seven-year sentence may in fact be fair in light of what the prosecution was able to prove regarding the indictment charged.

Finally, the statement by Gayus that intimated that the Legal Mafia Eradication Taskforce had provided assurances of certain conduct being undertaken and promises being made that were not fulfilled must also be investigated, particularly as this taskforce reports directly to the president and seemingly works at his discretion. Perhaps Gayus was misled into believing a promise from the taskforce was a promise from the president?

The CIA involvement angle may well become a side-show of some importance as it has the potential to distract from the real issues in the case. The US Ambassador, Scot Marciel, wasted no time in suggesting that the whole CIA claim was nothing more than an attempt to divert attention from other aspects of the case. But, then again, he would, wouldn't he?

Ho hum...next case!

Gayus Tambunan: SBY Adopts A "Hands-On" Approach...

There is a limit to the "ummming" and "ahhhhing" that one's constituents can take before they start to get fidgety and demand a more hands-on approach to end what appears to be a never-ending lurch from one crisis to another. There is probably also a point that a president reaches where they can no longer look at themselves in the mirror without being horrified at their own incompetence. So, in many respects it is a "no-brainer" that Susilo Bambang Yudhoyono (or SBY to the masses) has decided to tell the nation that he has issued 12 presidential instructions and appointed the Vice President as his point man on the Gayus case.

Yet, the more hands on approach runs counter to the president's preference of the past. The president avoided getting involved in the shenanigans that saw two Corruption Eradication Commission commissioners investigated on fabricated evidence because he did not want to be seen to be interfering in the application of the prevailing laws and regulations. Yet, in this case he seems to think that it is time to meddle and sort things out.

Although his meddling is really an attempt to look like he is doing something without really doing anything at all. It is, for those of you familiar with the term, a "Clayton's Presidency"; the presidency you have when you are not having a presidency.

SBY has instructed law enforcement to cooperate. He has instructed law enforcement to engage the KPK in a more pro-active way in investigating the cases that have not already been investigated by the police. Oops, sorry Mr. President, but aren't the police implicated in some of these cases, and wouldn't having the police in charge of some of these investigations be a conflict of interest that is not all that different to letting the fox have the keys to the hen house? The KPK should be handling all these cases and the KPK must be given the mandate to re-open and re-investigate, if they so desire, any and all cases of their choosing. Anything short of this leaves you exposed to charges of favouritism and interfering in the drive to eradicate corruption.

One of the "biggies" that the president put forward was that it was time to adopt a reverse burden of proof. Simply, this means that the burden is no longer on the prosecution to prove the case, but the burden shifts to the accused to prove that they did not commit the crime that they stand accused of. The question that people should have of the president is where do you want to stop the reversal of the burden of proof? Is this just for corruption cases or is the intent to just reverse the presumption of innocence in favour of a presumption of guilt until such time as the accused can prove their innocence?

As a matter of interest, Mr President, how much smoke is needed to reverse this burden of proof? For example, if a citizen says that a bribe was demanded and then paid would this be sufficient to trigger the reversal and the accused receiver of the bribe have to prove they did not make the demand and accept the money or goods? What happens if someone accuses the president of having acquired wealth during a stint in the army from illicit means? Would the president then be required to prove the origin of their wealth? Is it not the case that the wealth reports that elected and appointed officials in government must complete designed for this purpose.

Reversing the burden of proof is a double-edged sword and a very slippery slope. In any event, one must ask whether a reversal of the burden of proof would have made any difference in this case?

But I digress.

The 12 Presidential Instructions in a nutshell are:

1. The National Police, Attorney General, and the Ministry of Law and Human Rights are to expedite the resolution of the Gayus case;
2. Increase the synergy between the Financial Transaction Reports and Analysis Center (PPATK) and the Legal Mafia Eradication Unit. And, the KPK to become more involved in cases not yet "handled" by the police;
3. Performance audits of all those involved in the Gayus case;
4. All the companies mentioned in the case to date are to be investigated;
5. Reverse the burden of proof;
6. Relevant agencies are to search for, locate, and repatriate all state assets including any money obtained corruptly;
7. All officials who have violated the prevailing laws and regulations are to be punished accordingly (within a week);
8. Restructuring of all organisations and agencies that have been found wanting throughout the Gayus case;
9. Review and reform of work systems to ensure that future failures of this kind do not occur again;
10. The president to receive written reports on the progress of the implementation of these instructions;
11. Progress reports are to be made public so that the knows what has been done, what is being done, and what will be done with respect to the Gayus case; and
12. The Vice President is appointed to head-up the supervisory team, and the VP is to be assisted by the Legal Mafia Eradication Unit.

Just a personal note. I am not convinced that this is a more hands on approach. To me it reads as a statement to try and preserve personal public support for himself while maintaining enough distance that he is not fully hands-on and can claim later, when this does not get a positive result, that people did not do as he instructed them to and therefore it is "not my fault".

Ho hum...

BlackBerry and Taxes...

It makes sense to make life difficult for foreign businesses operating in a country when that foreign business is not complying with the prevailing laws and regulations. After all, fair is fair. If the laws and regulations apply to Indonesian companies doing business in Indonesia then a fair shake of the cherry tree must see foreign businesses complying with the prevailing laws and regulations too.

Truth be told, Indonesian businesses that head into foreign markets will undoubtedly have to comply with the prevailing laws and regulations of the country where they begin operating. What goes around, comes around, including taxes.

So, Pay Your Taxes: Prove Your Love For The Motherland" (Membayar Pajak: Bukti Cinta Tanah Air)

However, it does not make sense that a company; local or foreign, must pander to the personal desires, wishes and agenda of an individual, even where that individual is the Minister of [Mis]Communication and [Mis]Information, Tifatul Sembiring (aka TitS). Indonesia has moved on from the iron-hand business practices of Soeharto and his cronies, has it not? Indonesia has become an economy that has a conducive investment climate based on the rule of law, right?

This is what makes the TitS crusade so bizarre. It is no longer looking like the government trying to enforce prevailing laws and regulations, rather it looks like a man on a mission to eradicate pornography from the Red & White Republic at all costs by waging a one-man war against RIM. TitS where are the statistics that show RIM and their BlackBerry Smartphones are leading the charge of porn downloaded by Indonesians. I reckon, at least anecdotally, that the Minister would find that traditionally it has been the small internet cafes that have been at the forefront of the porn boom in Indonesia.

So desperate is TitS to beat down RIM he has gone outside his mandate to try and portray this spat as one that has a nationalist pride angle to it. In fact, TitS has decided that, in his opinion, RIM is a marauding infidel invader that has only come to Indonesia to rape and pillage her of her resources and wealth, and pay no taxes into the bargain.

Taxes are generally the domain of the Minister For Finance, and perhaps the Coordinating Minister for Economic Affairs, but generally taxes are not the primary concern of ministers in other fields. In light of the TitS charge, it is worth asking whether RIM pays its dues. The reality is, if RIM has not been paying its financial obligations then why has it taken a spat over porn filters to make this publicly known?

Starting to look like a good ol' shakedown.

According to Gregory Wade, Southeast Asia Managing Director for RIM, they have. The actual statement went along the lines of RIM makes a habit of complying with, and therefore obeying, the laws and regulations of every country within which they operate or have business interests ("RIM dutifully pays all applicable taxes that are exercised from its business within the region in the same manner as all other importing manufacturers".)

This gives rise to the obvious question: "Was TitS lying to the Indonesian people about RIM and what it does and doesn't do with regards to tax obligations?"

If TitS was lying, or in more delicate terms "deliberately misrepresenting the truth", should he resign? And, if TitS will not resign is it time that the President fired him for gross incompetence?

It is unlikely that either will happen.

For TitS it sort of reminds me of that famous Top Gun quote: "Son, your ego is writing checks that your body can't cash!" In other words he is so full of himself and his abilities he has not realised yet that he is not going to be able to deliver on the threats that he is making.

For president SBY to fire TitS it would seem that TitS would have to make a move on the first lady and try and convince her to become wife number 5. SBY just does not have the testicular fortitude to fire a Minister unless the puppet-masters give him the go ahead. The best case scenario is a reshuffle that sees TitS move to a different portfolio where he could do less harm (if there is a portfolio where he can do less harm). Indonesia has been living with the promise of a cabinet reshuffle for almost the whole of SBY's second term as president.

Twitter is a great place to communicate, and perhaps it is a great place to sell your message, it is probably not a good place to be telling lies and / or misrepresenting the truth to your constituents.

Ho hum...

Is The Fight Against RIM More Than Just Porn?

The Jakarta Globe is reporting that the Minister for [Mis]Communication and [Mis]Information, Tifatul Sembiring (or as I prefer to call him, "TitS") has moved his anti-RIM and anti-BlackBerry fight to an argument that is "more than just about porn". And, he is telling the truth.

The Minister's campaign against RIM is about beating RIM into submission. It is all about control. TitS problem with RIM is that he cannot control it. The fact that he cannot control RIM or how people use their BlackBerry Smartphones is a threat. In the TitS world this is a threat against the unity of the Republic, it is a threat to the political and corporate elite that "run" the show in Indonesia in part to the ability to control the president and organise SBY's agenda. The TitS view is that social networking and the internet are threats to the controlled democracy that Indonesia currently enjoys.

A TitS reality is that if he does not control upstart foreign infidels like RIM then there will be significant repercussions for Indonesia that are not natural disasters (currently linked to viewing too much porn) such as a people-centered democracy as opposed to a political and business elite-centered democracy where the rich get ever so much richer and the rest can do whatever they want so long as it is not social networking.

If you want to see how much of a threat the social networking phenomenon is to Indonesia in the eyes of the National Security Council (Dewan Ketahanan Nasional / Wantannas) then follow this link (unfortunately it is in Indonesian). This is a Terms of Reference (TOR) document for meeting held early 2010.

So, the fact that TitS is now playing the nationalism card is not surprising. In fact, it is long overdue. The best way to turn public opinion is to play to one's sense of nationalistic pride and make the foreigners the bad people who are only in Indonesia to rape and pillage in a vein similar to what the Dutch did when they were the colonial masters of the Dutch East Indies universe. It is a standard game of "us" and "them" rhetoric that is designed to deceive Indonesians to give up voluntarily their freedom to access information in a manner that is difficult for the Indonesian authorities to monitor.

The reality is that a legitimate request for information from RIM or to track corruption or terrorist suspects through the RIM servers would more than likely be granted. The need for a RIM server in Indonesia is nothing more than "big brother" wanting to be able to go in without legitimate reasons to track the activities of every day Indonesians going about their business.

The suggestion yesterday that RIM was stealing the wealth of Indonesian citizens because it did not pay taxes or have business investment such as servers in Indonesia is absurd. RIM provides a service you pay for it, and you get what you pay for. RIM is not stealing from ordinary Indonesians. I am all for finding a way that allows Indonesians to benefit from RIM expertise through employment and the like. Perhaps, a start is the service center. But, the threat to shut RIM down is silly.

It would have been fun to watch RIM tell TitS that they were not going to comply; call his bluff. If TitS had the testicular fortitude to shut RIM down then all hell would break loose down Senayan way as all the BlackBerry using politicians and party appartchiks found themselves carrying round a useless piece of technology.

Yes, Minister, this confrontation is about more than just porn. This shakedown is about the sort of freedoms and democracy that Indonesians want to enjoy in the future. It is about whether Indonesians are allowed to utilise the Internet on their own terms and social network freely or submit to your terms of control.

Is the TitS plan the first step along the path to the dark abyss?

Indonesia vs. Gayus...

I will leave it up to you to decide which one is Indonesia and which one is Gayus Tambunan. Or is this RIM and Tifatul Sembiring (TitS)?

Is RIM really going to get away with the cheese?

Thanks to Enver Arslan who has these stop photography images on his posterous page. And, also, thanks to @BrettMcGuire for letting me know about these amazing photos.

The Problem with the Indonesian Remission System...

This is probably not an expose on the scale of Wikileaks. However, thanks to my mate Treespotter, we do have access to some interesting documents that highlight how poorly organised the remission system is in Indonesia. The files attached to his post relate to the case of Artalyta Suryani or Ayin. Ayin was convicted and sentenced to prison in a corruption case. She was found guilty of bribing a prosecutor.

Ayin's case did not end there. She decided that as a woman of means, she would spruce up her cell a little. So, in agreement with the relevant jail authorities she co-opted a couple of cells and made them into a little fiefdom where she ran a beauty salon and a karaoke parlour. Her enlarged cell also had a visiting room where she could entertain guests.

Unfortunately for Ayin, the word leaked regarding her luxury set up and a random raid uncovered her souped-up cell arrangement. Her punishment was that she was not to receive a remission in 2010. Remissions are at the discretion of the relevant authorities. These authorities are ultimately at the discretion of the Minister for Justice and Human Rights who will have the final say on a remission. Nevertheless, it was a surprise to see a convict who was not supposed to be getting any remissions in 2010 because of her bad behaviour end up with a remission of 2 months and 20 days.

In the words of Treespotter:

"Hypocrisy really knows no bounds".

Perhaps it is time that Indonesians stopped buying into this diversion called SBY and came to understand that there are obviously more powerful interests above the president that really run the show in Indonesia. The war on corruption is an illusion and the president is a fraud.

In essence, the first document authorises a remission for Ayin. The second document, at point 5, notes that Ayin is not to be granted any remissions in 2010.

This whole sorry saga is seemingly another black mark against the name of the Minister for Justice and Human Rights who simply has no control over the Ministry that he leads. Then again, with a leader like SBY, what does a lowly minister have to fear. The president is too busy trying to sure up his legacy and promote himself as an international statesman worthy of the Secretary General's post at the UN to be too worried about undeserved remissions for corruptors.

Ho hum...

Gayus Tambunan & A Sense of Humour...

When one is facing some time in the 'big house' it is important to maintain a sense of humour in facing such circumstances. Gayus Tambunan, the tax officer at the centre of a corruption scandal that touches a lot of the big names in Indonesian politics and business, in his final plea to the South Jakarta District Court asked to be made a member of the expert staff of the Chief of Police.

His plea also suggested if not the Chief of Police then he could produce equally excellent outcomes as an expert staff member at either the Office of the Attorney General or at the Office of the Head of the Corruption Eradication Commission (KPK).

With a bit of luck Gayus will see the inside of a jail cell for the crimes he has committed. By his own admission he is a corruptor. Hopefully, this time he will be afforded the opportunity to stare at the walls for 23 hours a day rather than enjoy jaunts to the tennis or overseas to Singapore, Thailand, Macau, or Mainland China.

The rest of the plea focused on how he was but a bit player, a small fish, in the corruption scheme and he fully supports the president, SBY, in his drive to eradicate corruption from the Republic of Indonesia. The cynic in me says, "of course you do!" Let's face it, you have been caught. If you had not been caught out then in all likelihood you would still be trying to fleece big business using the schemes that made you so much money in the first place.

To suggest that you have now seen the error of your ways and support the anti-corruption drive is nothing more than a desperate cry from a desperate man. Where was your support for the president's anti-corruption drive when you were bribing judges, police and prison guards?

Nevertheless, the funny in the plea was the request to be made an expert staff member of the Chief of Police. However, Gayus seemed serious in his claim that if he was made an expert staff member of the Chief of Police then he would be instrumental in eradicating corruption within two years. Gayus, not only do you have a sense of humour, but you also have a wonderful imagination. Seriously, Gayus, what makes you think you can achieve what so many others have failed to achieve since 1998?

Sri Mulyani Indrawati went hammer and tong to ensure that corruption and the culture of corruption was torn down in her spheres of influence when she was a minister. Her reward was to be hung out to dry by the president. In a shrewd move she is now at the world bank (there is more than one way to skin a cat - that is the saying, right?).

With a bit of luck Gayus you will receive a sentence that will afford you many years to think about your fantasy. Alternatively, you could write a confessional, tell all, name names autobiography about your 15 minutes of fame as a corrupt tax official that titillated the odd Indonesian with your international travel itinerary from your pre-conviction detention days.

Super Gayus...

It is a little hard to know whether to laugh or cry when reading about the exploits of one Gayus Tambunan.

Gayus Tambunan is a mid-ranking tax official who was arrested for corruption relating to the extortion of trillions of Rupiah from a whole raft of Indonesian conglomerates where the Bakrie family figured prominently. The plan was that this young man would roll over and rat out all those that he had worked with in this elaborate scheme.

The outcome was to be the shining light of the President's, SBY, fight against corruption. Instead, it has been a complete farce that has seen Gayus, dubbed as Super Gayus by The Economist, take Indonesian law enforcement on a world-wide ride taking in sites such as Singapore, Thailand, Macau, and even some more local sites in Bali (including a trip to the Commonwealth Bank Cup Tennis Tournament).

The ever-reliable and most knowledgeable Treespotter has an interesting analysis, and an enjoyable read, over at his place. I would encourage people to read the Treespotter's take on this matter and a whole stack of others that he has blogged about, insightful.

The laughing and crying angles on this case relate purely to watching law enforcement and elected officials try and explain these shenanigans away by passing the buck. If there was ever a case of "pass the hot potato" this has to be it. What has become painfully clear to more and more Indonesians is that the battle that they are waging against corruption is far more difficult than they ever imagined that it might be. To say corruption is endemic is, in light of the Tambunan case, an understatement.

Yet, the case is exposing the people who most Indonesians are relying on to fight this battle as complete incompetents that perhaps should be facing charges themselves rather than holding down positions of authority  and influence. At best some of these individuals need to be handing in their resignations en masse.

For example, the Minister for Law and Human Rights, Patrialis Akbar, in an attempt to make himself look good and to deflect any unwarranted attention from his Ministry decides that he must categorically deny that the possibility that Tambunan traveled overseas on a fake passport was possible.

After all it is the immigration department that would have had to have had a hand in issuing a fake passport and that is an area under his jurisdiction. Sadly, as the picture above shows, the man was able to get a second passport in a false name and was seemingly able to travel with ease to the places that the media is now claiming that he did.

I guess what is becoming most surprising to me now is why this story did not break some time ago. Let's face it, the biggest ace in SBY's "war on corruption" managed to spend less than a week in his cell over a four month period. How is that no-one noticed this until now? Perhaps this says something more important about the battle ahead. Perhaps it says something more important about the President and his minions that have been tasked with fighting this battle.

It seems that the President, his minions, and other law enforcement officials can only say so many times that "we don't have to worry Indonesians are too stupid to see through this" before the good citizens of Indonesia rise up en masse and say "hold on a second, we are not stupid, we will not tolerate incompetence any longer, we want change - change that we can not only believe in, but change that gives us real and tangible benefits". Indonesians are not stupid, but this will require Indonesians as a whole to take a long hard look at themselves and say "enough is enough!"

Indonesia really does deserve better than SBY!

What Do The Indonesian Cables on Wikileaks Reveal?

Tongue in cheek...

Someone asked me whether I thought the 3000+ diplomatic cables that Wikileaks are leaking on Indonesia will be interesting and worth a read. My answer, Yes!

No matter what is in these cables, they are going to make for interesting reading. This is particularly so for those who consider themselves knowledgeable on all things diplomatic and Indonesia / USA relationship wise. For those that are truly in the know, or those that are on the coal-face of this relationship, or those who are passionate about the study of the Indonesian / US bilateral relationship are likely to be more disappointed than anything else. These are secret and confidential cables. They will include some nice tidbits and probably some comments that will cause offense both at home and abroad, but they are unlikely to be earth shattering.

Yet, it is worth putting a modifier on that. For example, if one of the cables included a statement to the effect that there was evidence that SBY was on the Bakrie payroll, now that would be a pearler. It might not be earth-shattering, let's face it, it would be an easy assumption to make considering the ease with which Bakrie gets "passes" on everything that should tarnish and sink him for ever as a political player. Nevertheless, it would be fun to watch the fallout and the subsequent spin.

So, in light of the question, here are a couple of choice cable exchanges that I would be intrigued to read:

"SBY prefers to sing than to lead!"

Or, "the 2009 election was clearly not fair despite what the Carter Center may have said in its report. Evidence suggests that on the orders of SBY, Partai Demokrat spent huge sums of money to manipulate voting in areas outside of Jakarta!"


Or, "SBY: can't sing, can't dance, can't lead, all round waste of time, effort, and space. Indonesians are holding out to 2014 believing something is better just around the corner!"

Or, "despite public protestations to the contrary, SBY has performed poorly on key election promises relating to corruption and terror."

Or "the recent good results on the elimination of terrorists is really nothing more than elements of the national police and military cleaning house and tidying up some 'loose' ends!"

Or, "The Minister for Communication and Information is publicly an avid anti-porn advocate however he is known to frequent massage parlours that offer a plus plus service. Obviously, the man has an insatiable appetite for the bump and grind considering he has four wives and seven known mistresses!"

Or, more on TitS..."the Minister for Communication and Information's staff have been secretly trying to set up a session with Vicky Vette to determine whether she was serious about her offer to 'pleasure' the Minister. It is widely known that the Minister has a 'thing' for blondes with big breasts. One of his staff members noted that the Minister was a 'TitS man'. Maybe he meant that TitS is the man?"

Or cables along those lines. I could go on and on and on with the possibilities. I am sure that you, if anyone reads this, will have some of your own. So, feel free to share.

Once again, this is tongue in cheek. No 'real' offense is intended.

Why Deponering Must Not Be An Option...

Deponering is a legacy of Dutch Colonial administration of the Dutch East Indies. It has remained a legal option for certain cases even after the Republic of Indonesia was declared. It has come to the fore again having been argued as an appropriate mechanism for concluding the "case" against Chandra M Hamzah and Bibit S Rianto. My opinion is that deponering is not an appropriate or suitable mechanism for resolving this case.

This post is not an in-depth legal analysis, it is opinion.

Deponering in its most simplest sense is the dismissal of a case in the public interest. In essence, the arguments for deponering in this case are that pursuing this case is likely to cause more problems than it resolves. particularly with respect to creating social and community unrest.

Chandra and Bibit are Commissioners on the Corruption Eradication Commission (KPK). The allegation against them was that they extorted money, a bribe, out of a corruption suspect's brother, Anggodo Widjojo, in order to lift a travel ban on Anggoro. From the outset the case against the two KPK Commissioners was a farce. There was no evidence and continuing investigations into the supposed evidence only served to highlight a conspiracy to frame the two Commissioners as a means of weakening the KPK and its effectiveness in fighting corruption.

Nevertheless, the fact that the case is ongoing highlights just how far special interests have infiltrated the law enforcement and judicial systems. This is evidenced in the fact that the case was to all intents and purposes dropped once before, only to have the courts overturn the dismissal and set the case back in motion.

The matter is now at a stage where the Supreme Court is making statements that it thinks a deponering of the case is the best way forward. It is not the best way forward. The public interest is not best served by deponering this case.

There has been a concerted effort to smear and destroy the reputations of two honourable men. This effort has been facilitated in a large part by those individuals that have been tasked with upholding and enforcing the laws of the Republic of Indonesia. There is nothing to be gained in the public interest by trying to sweep this whole sordid affair under the carpet by deponering it.

The reality is that these two men deserve nothing less than complete vindication. If they have to go to court to get it, then so be it. Going to court though has a real Pandora's Box risk to it. Once you take the lid of this thing, one can not really be sure what might be exposed. This is the reason that a deponering resolution is being pushed as hard as it is. It avoids exposing the dirty workings of quite a number of state institutions. There might also be some concerns as to how high up the chain of command this smear campaign goes.

The problem with deponering is that the public angle here is that deponering is being spun as a confession of guilt without having to go to trial to get a conviction. This is the AGO's attempt to convict Chandra and Bibit in the Court of Public Opinion. Deponering is saying these two men are guilty as they were charged, we have the evidence to prove it, but because adducing this evidence in court will upset you the public, we have decided to let them off with a pass.

The correct resolution to this case is that it is dismissed with prejudice. The dismissal must also include a statement that contains explicit language which states in unequivocal language that there was never any evidence that Chandra or Bibit took bribes, that this case was fabricated from the start, and the final part of the dismissal of this case must name those who attempted to perpetrate this fraud against the Indonesian people. Anything less than this is an insult. It is an insult to Chandra and Bibit, and it is an insult to good law-abiding Indonesian citizens.

Deponering must not be an option. Indonesia deserves better!

Aburizal Bakrie: Defamed?

Has Singapore come to Indonesia? The way of the Singaporean political elite is to sue their political opposition into oblivion by abusing defamation laws. Perhaps, Aburizal Bakrie has realised that Indonesia defamation laws, both criminal and civil, allow for Indonesian politicians to do the same.

The recent reporting of an alleged meeting between Gayus Tambunan and Aburizal Bakrie in Bali during a recent tennis tournament has struck a chord with the man behind the Sidoarjo mud extrusion. Gayus was the point man on a tax avoidance racket that included a number of Bakrie companies. The racket saw tax obligations lowered and mechanisms put in place to ensure that the government lost any challenges that it made against the assessments.

The racket worked well for a while, but it has seemingly begun to come unstuck. Needless to say there are a few nervous people floating around the circles of the political elite as they wonder just how much Gayus knows and just how big the bucket of crap is that he has to spill. This is particularly so if the Corruption Eradication Commission (KPK) gets involved. So, it is within this framework that a meeting between Gayus and Aburizal Bakrie appears believable.

And, truth be told there would be plenty of people from all walks of life who would like to see Bakrie come unstuck and get shafted in the most figurative of senses, then again there are probably a few who wouldn't mind seeing that happen in a literal sense either!

But I digress. Aburizal Bakrie has decided that the news organisations that reported this alleged meeting have defamed him. So, he went to the press council to lodge a formal complaint. It is expected that an official complaint to police will be lodged in the near future.

The five media organisations include Kompas, SCTV, Metro TV, Detik.com, and Media Indonesia. Metro TV and Media Indonesia are an interesting choice as as they are the media vehicles of Surya Paloh. Paloh happens to have been a past challenger to Bakrie's dominance in Golkar.

It seems that Bakrie is a little upset that his denials of a meeting ever taking place were not accepted as given. Therefore, Bakrie is of the belief that because his denials were not accepted as the ultimate truth that he has been defamed because the media is guilty of character assassination. The man is on a mission to clean up the media which he believes has degenerated into outlets purveying lies and spin-doctoring the truth to turn the public against him.

It will be interesting to see where this latest crack at criminal and civil defamation laws goes.

(Photo courtesy of Antara)

Gayus Tambunan & Aburizal Bakrie in Bali...

If anyone was doubting whether Gayus Tambunan, tax official extraordinaire, and Aburizal Bakrie, [alleged] Tax Evader, met in Bali recently during the Commonwealth Bank Tournament of Champions Tennis, then wonder no more. Here is a photo of them together. It is pretty obvious the man in the wig is Gayus, but the man in the jilbab I would never have picked for Aburizal Bakrie if someone did not tell me it was him.

I guess when your main man in the tax office gets jammed up for helping people avoid their tax obligations then it is a pretty good certainty that one would like to know what he knows and get your respective stories straight.

Ho hum...

(The photo is not mine. It came via Facebook. If the original owner wants credit for it, then let me know, as I am happy to give it where it is due)

Has Indonesia Turned the Economy Corner?

I really should get back to writing more dry analysis of business and economics news and the legal frameworks that impact those two areas in Indonesia. Sometimes, I miss writing for a captive audience. My previous life at hukumonline.com afforded me that opportunity.

The amount of money coming into Indonesia through 2010 is the most to be placed since 1998. The amount is a rather impressive USD 23.3 billion. This has been driven by consumers and resources. However, it is interesting that some are suggesting that the biggest factor in this surge of investment is thanks to President Susilo Bambang Yudhoyono (aka SBY). According to those in the know, foreign lawyers, the resurgent confidence is directly related to SBY's ability to fight corruption and terrorism combined with his drive to raise the levels of spending on critical infrastructure.

To be honest, I am not sure that a lot of others, who would also consider themselves to be in the know would agree with this assessment. There is no doubting that the Indonesian economy is going great guns in terms of investment. This might just as easily be attributed to the idea that some investors have reached a point where any risk is justified by the potential returns. It may be that it is simply no longer an option to wait and see and get left behind.

The idea that corruption is under control and that the Indonesian judiciary is sufficiently reformed to make business transactions certain is tantamount to burying one's head in the sand. A recent speech by the former Finance Minister of Indonesia, Sri Mulyani Indrawati, highlighted just how prevalent corruption is and how much of a threat it still is. I would argue she might know about these things, particularly when one considers most people believe that she moved to her current position at the World Bank after getting worked over by Aburizal Bakrie and a compliant SBY when she sort to clean house at the tax office.

The judiciary is still a long way from being an organisation that provides legal certainty to business players. Judges are still on the take. Police officers and prosecutors are also on the take. The recent case of Gayus Tambunan and his ability to get out of jail highlights.

Nevertheless, the surging business environment is providing plenty of legal work, and the numbers of accredited foreign lawyers working in Indonesia has risen from 20 to 50. I will need to make some calls and get the relevant data to substantiate this because as I recall there were like 40-odd accredited lawyers in the beginning of 2009. All foreign lawyers must be accredited through the Indonesian Bar Association (PERADI) if they are to work in Indonesia. It is worth noting that there are a significant number of foreign lawyers in Indonesia who are not accredited by PERADI. This is achieved through technicalities as the foreign lawyer is not employed as a lawyer, but rather in some other capacity.

With all these things to be considered, the question is "has Indonesia turned the economy corner?"

Get Out Of Jail Free -- The Indonesian Version of Monopoly...

In light of the recent shenanigans in Indonesia with high profile prisoners taking time out of their jail cells to attend sporting events and visit family and friends (maybe I should do a post on this), this is a most apt (and very clever) adaptation of the Monopoly "Get Out Of Jail" card.

My thanks to Andika Gunadarma (my former Boss at hukumonline.com) for the image.

No one thought the fight to eliminate corruption was going to be an easy one, but it might be fair to say that no one really expected it to be quite as challenging as it has been to date.

Corruption Perceptions Index...

The 2010 Corruption Perceptions Index by Transparency International has been released recently. I was reading about this on a blog, "the two-way", hosted over at the National Public Radio (NPR) site and came across the following excerpt:

Corruption is something that just becomes ingrained in a society and once it's there it's hard to stop. It becomes a habit of mind, a sense that this is simply how things done. An official pamphlet given to Iraqi refugees who are heading to the States advises them not to bribe police officers. After working in Iraq for years I came home from one trip and had to go to the DMV. I'm waiting in line, as one does, and all I can think is, "Who can I bribe to make this go away?" To address corruption you have to change a society's whole way of thinking about what the cultural norms are, which is not easy, to say the least.

There are no real surprises in the list in the sense that Somalia, Burma, Afghanistan and Iraq rank as the most corrupt countries on earth. There are also no real surprises in Denmark, New Zealand and Singapore being the least corruptible nations going around.

Indonesia has stayed pretty much steady. The fact that Indonesia has remained steady is not a real positive outcome for Indonesia or Indonesians. It is, though, and accurate indictment of the failures of SBY and his government in delivering on the core election promise that he made in 2004 and 2009 to clamp down on corruption. However, that is for another post.

What struck me about the NPR piece is the idea that to address corruption requires a fundamental shift in the way the community thinks. The cultural norms that have developed that allow corruption to persist have to be broken down and new norms established. This idea is just so true for Indonesia. Yet, it is also the reason corruption eradication efforts have been so unsuccessful. Entrenched interests have been very successful at thwarting most efforts for reform and change while simultaneously encouraging others to be change-resistant as well. Corruption is something that is ingrained, no doubt about that.

I am the eternal optimist. Change will come to Indonesia. It is only a matter of time. Corruptors need to known that they are on borrowed time, the game is up!

Deponeering and the KPK...

Will they or won't they, that is the question?

It seems every man, woman, child and perhaps some of our friends from further afield in the animal kingdom are weighing in with what the Office of the [Acting] Attorney General should do in the case of the "fabricated case". So, not one who like to be left out, I figure I will weigh in with a few "insights" of my own.

Deponeering is a legal remedy that the Attorney General has at their disposal to discontinue the prosecution of a case where the discontinuing is in the public interest. This case should not be deponeered. The simple reason is that there is nothing that is subject to deponeering. There is no case!

The case from the outset was a complete and utter fabrication. It was a fabrication constructed to tarnish the good names and reputations of two men whose crime was to passionately believe in the vision extolled by the current president to rid Indonesia of the scourge that is corruption. For their passion they were sent forth as sacrificial lambs by the president who they have so faithfully served.

What should, no, what must, happen with this case is that it should be dismissed with prejudice. There needs to be a very public apology issued to both men, Chandra M Hamzah and Bibit Samad Riyanto, that states unequivocally that the case against them was fabricated, that there was never any evidence to sustain the allegations, and that they will be compensated if they so choose to pursue any civil claim.

Anas Urbaningrum, the Chair of the Democrat Party, has been vocal in expressing the Democrat Party view that the best course of action now is deponeering. I beg to differ. Mr. Urbaningrum represents the political vehicle of the president, and perhaps the deponeering view is the president's view as well. And, if it is the SBY view, then I would suggest that the president is a coward. Deponeering by its very nature can be interpreted as there is a case to be answered but rather than force the answers to be brought forth at trial the big picture of social and civil stability calls for a trial to be avoided.

Once again, it is time that the president stepped into the great abyss that is Indonesian politics and said, "This case is not going to be deponeered! There is no case to be answered! This case is going to be dismissed because the 'evidence' that it is based on is not evidence at all, but lies." Is this going to happen? No! Why won't it happen? It won't happen because deponeering is a face-saving measure where the president can claim that he was right not to get involved, that justice has run its course and justice has been done. The president has just about always been somewhat two-faced on anything that is significant to Indonesia making real progress.

Once again, deponeering this case is not justice served, it is justice denied.