Susilo Bambang Yudhoyono

Biography

Family:
 Born September 9, 1949 in Tremas, Pacitan, East Java, Indonesia to Soekotjo (a retired
lieutenant) and Siti Habibah
 Married Ani Bambang Yudhoyono (daughter of a general in the Indonesian Army) in 1965.
 Children:
o Agus Harimurti, attended the Indonesian Military Academy
o Edhie Baskoro, ran for Parliament in 2009
See page(s) 3, 4

Education:
 Indonesian Armed Forces Academy (1973)
o Awarded the Adhi Makayasa Medal, by the Pres. of Indonesia upon graduation
 Weber University, St. Louis - M.A. (1991), L.L.D. (2005)
 Bogor Agricultural University, Indonesia – PhD (2004)
 Thyammasat University, Thailand – D (2005)
See page(s) 3, 4

Career:
Yudhoyono served in the Indonesian army from 1973 to 1999. During his time in the army, he
was the chief Indonesian Military Observer to Bosnia (1995-96) and the chief of the Armed Forces Social
and Political Affairs Staff (1997-1999), and rose to be Chief Military Commander of Jakarta and South
Sumatra. In 1999, he retired from the military to become the Indonesian Minister of Mining and
Industry. The following year, he became the Indonesian Minister of Political, Social, and Security Affairs.
He was released from that position and subsequently returned to it in 2001, serving for three more
years. At that time, he resigned from the cabinet to be elected President of Indonesia in 2004 over the
incumbent Megawati Sukarnoputri. His initial goals of reducing governmental corruption and enhancing
Indonesia's political and economic standing were overshadowed by the Southeast Asia tsunami, but he
managed to stabilize rice prices and grant amnesty to rebels in the northwestern province of Aceh. In
2005, he was named one of the 25 Stars of Asia by Business Week Magazine. See page(s) 3, 4

He won reelection in 2009 in a landslide, the first Indonesian president to ever win two terms. A
month after reelection, Yudhoyono was the target of a failed assassination attempt mounted by a
militant Islamic group. That same year he was also named one of the World’s Most Influential People by
Time Magazine. His anti-corruption crusade continued through his second term – though he drew
criticism for a scandal in late 2009 that saw two senior officials resigned after their controversial arrests
of members of Indonesia's anti-corruption commission. See page(s) 3, 4

Works and Awards:

He is the author of “Coping with the Crisis--Securing the Reform” (1999),“Revitalization of the
Indonesian Economy: Business, Politics and Good Governance” (2002), “Taman Kehidupan “(Garden of
Life) (2004), and “The Making of a Hero” (2005). is also a songwriter and singer, evidenced in his album
“My Longing for You,” released in 2007. See page(s) 3, 4
Current Events:

Domestic
 He has announced a focus on modernizing Indonesia’s road, port, and electricity infrastructure,
which has been holding back economic growth. See page(s) 9
 The Press Council has criticized him for scolding the media for relying on texts messages as
sources on the graft scandals surrounding his political party. He has, however, supported “new
media” on the regional level, saying it will help unify ASEAN. See page(s) 9, 13
 Corruption scandals within his party have harmed his popularity. See page(s) 15
 Along with the Indonesian House, he has favored increases in fuel subsidies to offset rising costs,
despite the fact that there are plans to cut the budget for the program. See page(s) 23

International
 Is currently meeting with other ASEAN leaders in Bali. See page(s) 15
 Has stated that talks with China about the South China Sea are a priority. See page(s) 14
 Has made comments in favor of greater military ties with Malaysia. See page(s) 17
 Faces accusations of deeply entrenched human rights violations. See page(s) 19
 Has positioned Indonesia to become a leader in climate change policy through unilateral
declarations of emissions goals, among other things. See page(s) 20
Who's Who in the World
22nd, 23rd, 24th, 25th, 26th, 27th Editions; Who's Who in Asia, 1st Edition

Copyright 2011 Marquis Who's Who LLC. All Rights Reserved

May 5, 2011

Susilo Bambang Yudhoyono

Relatives: Son of Raden Soekotjo and Siti Habibah; Married Ani Bambang Yudhoyono, 1965; children:
Agus Harimurti, Edhie Baskoro.

GENDER: Male
September 9, 1949 Tremas, Pacitan, Indonesia

Office: Office of Pres, Veteran 17 Istana Merdeka, 10110, Jakarta Indonesia

* * * * * * * * * * * * * * * CAREER INFORMATION * * * * * * * * * * * * * * *
OCCUPATION: President of Indonesia

Mil. tng. Fort Benning, Ga., Fort Leavenworth, Kans.; Indonesia's chief mil. observer Bosnia, 1995-96
pres., Republic of Indonesia, 2004 - .
min. security & polit. affairs, Republic of Indonesia, 2002 - 2004.
min. security & polit. affairs, Republic of Indonesia, 2000 - 2001.
min. for mines, Republic of Indonesia, 2000.
ret. from active mil. svc. as gen., Indonesian Nat. Army, 2000.
chief Armed Forces Social and Polit. Affairs Staff, Indonesian Nat. Army, 1997 - 2000.
including territorial comdr. Jakarta and South Sumatra, Indonesian Nat. Army, 1973 - 2000.
served in numerous positions with, Indonesian Nat. Army, 1973 - 2000.
* * * * * * * * * * * * * EDUCATIONAL INFORMATION * * * * * * * * * * * * * *
grad., Indonesian Armed Forces Acad., 1973
MA, Webster U., St. Louis, 1991
LLD, Webster U., St. Louis, 2005
PhD, Bogor Agrl. U., Indonesia, 2004
D, Thammasat U., Thailand, 2005
* * * * * * * * * * * * * * * * OTHER INFORMATION * * * * * * * * * * * * * * *
CREATIVE WORKS:
Singer: (albums) My Longing for You, 2007

AWARDS: Recipient Adhi Makayasa medal, Pres. of Indonesia, 1973; named one of 25 Stars of Asia,
BusinessWeek Mag., 2005, The World's Most Influential People, TIME mag., 2009

LANGUAGE: ENGLISH

LOAD-DATE: July 5, 2011

Gale Group: Susilo Bambang Yudhoyono
Copyright 2010 All rights reserved
Newsmaker
March 2010

* * * * * * * * * * * * * PERSONAL INFORMATION * * * * * * * * * * * * *
Born on September 9, 1949, in Picitan, East Java, Indonesia; son of Raden Soekotjo (a retired lieutenant)
and Siti Habibah; married Kristiani (Ani) Herawatti, 1965; children: Agus Harimurti, Edhie Baskoro.

Office--Republic of Indonesia, Office of President, Bina Graha J1, Veteran 17 Istana Merdeka, Jakarta,
10110, Indonesia.

* * * * * * * * * * * * * * * CAREER INFORMATION * * * * * * * * * * * * * * *
OCCUPATION:
President

Served in Indonesian army, 1973-99

commander, United Nations Military Observers and Indonesian Military Contingent in Bosnia-
Herzegovina, mid-1990s
chief, Armed Forces Social and Political Affairs Staff, 1997-99
retired from the military to become Indonesian Minister of Mining and Energy, 1999
minister, Political, Social, and Security Affairs, 2000
released from position and later rehired, 2001
resigned from cabinet position, elected president of Indonesia, 2004
reelected to a second term, 2009. Author of books and articles including: Coping with the Crisis--
Securing the Reform, 1999
Revitalization of the Indonesian Economy: Business, Politics and Good Governance, 2002
Taman Kehidupan (Garden of Life), 2004
The Making of a Hero, 2005. Songwriter on albums including My Longing for You, 2007.

* * * * * * * * * * * * * EDUCATIONAL INFORMATION * * * * * * * * * * * * * *
Indonesian Military Academy, 1973
Webster University, St. Louis, MO, M.A., 1991
Bogor Agricultural University, Bogor, Indonesia, Ph.D., 2004.

* * * * * * * * * * * * * * * * OTHER INFORMATION * * * * * * * * * * * * * * *
CREATIVE WORKS:
DISCOGRAPHY: My Longing for You, 2007.

WRITINGS: Coping with the Crisis--Securing the Reform, 1999.

(Editor) Revitalization of the Indonesian Economy: Business,
Politics and Good Governance, 2002.
(With others) Taman Kehidupan (Garden of Life), 2004.
(With others) The Making of a Hero, 2005.
AWARDS: Numerous Indonesian military honors
25 Stars of Asia, BusinessWeek magazine, 2005.

INTERESTS:

SIDELIGHTS:
Retired general-turned-politician Susilo Bambang Yudhoyono--sometimes known by the nickname SBY--
has achieved two significant firsts in his native Indonesia. When he won election to the presidency over
incumbent Megawati Sukarnoputri in 2004, Yudhoyono became the first directly elected chief executive
in Indonesian history. Five years later, Yudhoyono made history again when he was re-elected to that
office in a landslide victory-- the first time an Indonesian president had ever won re-election. A few
weeks before his victory, the president declared that "I am optimistic that in the next five years we will
be doing many things for a better future," according to Norimitsu Onishi of the New York Times. A
month after reelection, in August of 2009, however, Yudhoyono was the target of a failed assassination
attempt mounted by a militant Islamic group. His inauguration to a historic second term came two
months later.

Yudhoyono's tenure has been marked by a series of reform efforts and liberal policies aimed at reducing
governmental corruption and enhancing Indonesia's political and economic standing. These initial goals
were temporarily subsumed by the crisis following the tsunami that devastated much of Southeast Asia
in December of 2004. Nevertheless, Yudhoyono succeeded in bringing increased political and economic
stability to Indonesia through such measures as the stabilization of rice prices and an amnesty for rebels
in the northwestern province of Aceh. During his second term he continued work to mitigate
government corruption, with two senior officials resigning in November of 2009 following their
controversial arrests of members of Indonesia's anti-corruption commission. In addition to his political
achievements, Yudhoyono is known for his mental capabilities. The "thinking general" has published
numerous books and articles, including 1999's Coping with the Crisis-- Securing the Reform, 2002's
Revitalization of the Indonesian Economy: Business, Politics and Good Governance, 2004 anthology
Taman Kehidupan (Garden of Life), and 2005's The Making of a Hero.

Born on September 9, 1949, in Pacitan--a small town located in the eastern portion on the Indonesian
island of Java--Yudhoyono came from a well-off family with a background in the military; his father,
Raden Soekotjo, retired from the Indonesian army as a lieutenant. In 1965, Yudhoyono married another
child of a military family, general's daughter Kristiani (Ani) Herawatti. The couple has two sons, Agus
Harimurti and Edhie Baskoro. Both of these sons have themselves followed in their father's footsteps,
with the elder repeating the president's success at the Indonesian military academy and the younger
running for election to the nation's parliament on the ticket of Yudhoyono's Demokrat Party in 2009.

Yudhoyono attended Indonesia's military academy, graduating at the top of his class in 1973. The young
officer then served largely in the politically tumultuous region of East Timor over the next several years,
advancing briskly through the ranks of the army. During the conflict in Bosnia-Herzegovina in the mid-
1990s, Yudhoyono served as Commander of the United Nations Military Observers and Commander of
the Indonesian Military Contingent. By the time of East Timor's formal independence from Indonesia in
the late 1990s, Yudohoyono had become the Chief of Territorial Affairs for the region.

This rise was supported by Yudhoyono's continuing education abroad. In 1976, the future president
completed the first of two military training programs at Fort Benning, Georgia; he returned to the
United States for a second stint with the Infantry Officer Advanced Course in 1982. Yudhoyono is also a
1991 graduate of the United States Army's Command and General Staff College, located at Fort
Leavenworth, Kansas. That same year, Yudhoyono completed a master's degree in business
administration and management from St. Louis, Missouri's Webster University. In 2004, the then-retired
military officer rounded out his education with a doctorate in Agricultural Economics from the Bogor
Institute of Agriculture, West Java, Indonesia.

During the declining years of the regime of military leader Suharto in the late 1990s, Indonesia was
rocked by public protests, violence, and economic turmoil. Although Yudhoyono served as chief of the
army's social and political affairs division, he emerged largely unscathed from this challenging era even
as some of his colleagues faced criminal charges for their actions. In 1999, he retired from the military to
join the cabinet of Indonesian President Abdurrahman Wahid as Minister of Mining and Energy,
receiving his fourth general's star as a purely honorary measure soon after. The following year
Yudhoyono advanced to become Wahid's Minister for Political, Social, and Security Affairs; however, this
position proved short-lived; Wahid, who was soon to undergo impeachment proceedings, requested
that Yudhoyono declare a state of national emergency. Yudhoyono refused to do so, and Wahid fired
him in February of 2001.

After Megawati ascended to the presidency later that year, she rehired Yudhoyono to serve as her own
Minister of Political, Social, and Security Affairs. In this role, he dealt with several domestic crises,
including bringing a swift close to an investigation into a series of terrorist bombings on resort hotels in
Bali during 2002 and 2003. In March of 2004 Yudhoyono resigned his post after publically sparring with
Megawati and her husband--and after becoming the 2004 presidential candidate of the recently formed
Demokrat Party. Neither this resignation nor his earlier dismissal soured Yudhoyono's career. In fact, the
president's BBC News profile noted that "being forced from office under successive presidents seems to
have enhanced Mr. Yudhoyono's reputation as a man of principle, willing to sacrifice his own ambitions
for the values he believes in."

The retired general mounted his first campaign for Indonesia's top political office in the spring of 2004.
Running on what his Web site described as a platform to create a "more just, more peaceful, more
prosperous, and more democratic Indonesia," Yudhoyono emerged as a strong candidate for the
presidency due to his educational and professional background. His reputation for adhering to his
principles even at the expense of his own personal advancement resonated with the Indonesian
electorate. "Even though SBY was a senior member of a deeply unpopular government, he has come to
be seen as a victim of that government rather than part of it," explained executive director of the
Indonesian Survey Institute Denny Ja to Rachel Harvey of the BBC. The general public--voting for
president for the first time in Indonesian history--gave Yudhoyono a wide advantage in the first round of
voting, and he successfully carried the presidency over Megawati in a run-off election in September of
2004.

Entering office the following month, Yudhoyono affirmed his commitment to growing Indonesia's
economy and eradicating government corruption. "Indonesia will be a democratic country, open,
modern, pluralistic, and tolerant," he declared in his inaugural speech, according to Jane Perlez in the
New York Times. Before the new president could begin implementation of his goals, a devastating
tsunami struck much of southeast Asia, including Indonesia. The president's response drew the respect
of observers, and soon he overcame the natural disaster to embark on numerous reforms that touched
much of Indonesia's economic and political worlds. Some of these measures, such as easing controls on
fuel prices, courted potential disapproval from the country's electorate. Yet Yudhoyono's successes at
stabilizing rice prices, overseeing a peace agreement ending a long-standing rebellion in the province of
Aceh, and uprooting corruption at all levels of Indonesian government won him great public approval.
The president also found time to pursue a perhaps unexpected project: an album of music. In 2007,
Yudhoyono released My Longing for You, a collection of songs "written to relieve the tedium of being
stuck on an airplane, flying from summit to summit," according to Maclean's, and performed by some of
the nation's most popular singers.

Entering 2009, Indonesia enjoyed a stable economy much changed from what it experienced at the
beginning of the president's term in 2004, despite the global economy downturn. This economic
improvement along with Yudhoyono's popular anti-corruption measures contributed to a successful
election season for the parliamentary candidates running on the ticket of the president's Demokrat
Party. Months later, Yudhoyono himself enjoyed a boost from the public when his re-election campaign
ended in a landslide victory in July of 2009. He garnered more than 60 percent of the popular vote,
carrying 28 of Indonesia's 33 provinces; runner-up Megawati won just 27 percent of the vote, while
sitting vice-president Jusuf Kalla carried 12 percent.

In early August of 2009, however, continuing Islamist militant attacks in Indonesia struck close to the
president's home-- literally. As part of a larger raid on terrorists operating in the country, Indonesian
security forces discovered a truck containing explosives and bomb-making materials scant miles from
Yudhoyono's residence. Although the police raid nipped the attack in the bud, Indonesian authorities
stated that two men believed to be connected to notorious Malaysian terrorist Noordin Muhammad
Top intended to drive the truck to the president's home and detonate the explosives as part of a suicide
bombing attack on Yudhoyono. "Our president was a target," Indonesian National Police chief General
Bambang Hendarso Danuri confirmed to Seth Mydans of the New York Times. Two months after the
seizure of these explosives, an unharmed Yudhoyono was inaugurated for his second five-year term.

Continuing efforts to stamp out top-level government corruption again made headlines during the fall of
2009. In late September of that year, Indonesian police arrested Chandra Hamzah and Bibit Samad
Rianto, two prominent deputy chairmen of the nation's Corruption Eradication Commission, or KPK, in
what was widely considered a move in a long-standing feud between that commission and the police
and attorney general's offices. The pair were accused of taking bribes from corruption suspect Anggodo
in return for allowing him to leave Indonesia. Public outcry against the arrests was swift and loud, with
popular opinion clearing the accused and placing blame squarely on the shoulders of the police and
attorney general's staff. In response to the situation, Yudhoyono launched a formal investigation, and
government officials along with Anggodo's brother, Anggodo Widjojo, appeared in court in early
November. Shortly after the initiation of this investigation, the Economist observed that "the scandal is
overshadowing all Mr. Yudhoyono's plans for economic reform, and denting the mood of optimism that
followed his re-election."

Indeed, details that emerged throughout the investigation gained great attention in Indonesia, and
Yudhoyono drew criticism for not being active enough in the proceedings. However, after wiretapped
conversations played in court revealed that Anggodo Widjojo had conspired with the police and
attorney general's office to create false evidence implicating the suspended officials, Yudhoyono had
little choice but to step in. He called for the resignation of two high-ranking government officials. In
early December, Yudhoyono announced that both of the suspended deputy chairmen were reinstated in
their positions with the KPK. A follow-up investigation by the KPK into Anggodo Widjojo and others
involved in the scandal was widely anticipated to be undertaken soon after their return to work.
With the corruption scandal behind him, the president is expected to continue to his agenda of reform
throughout Indonesia's political and economic system. Regardless of the success of these reforms, the
leader's second term will be his last: Indonesian law limits presidents to two terms.

LANGUAGE: ENGLISH

LOAD-DATE: July 27, 2010

Yudhoyono Plans Big, Bold Steps for Next Five Years
Straits Times Indonesia | July 22, 2011
http://www.thejakartaglobe.com/home/yudhoyono-plans-big-bold-steps-for-next-five-years/454593

President Susilo Bambang Yudhoyono delivers a speech during the opening ceremony for the 44th
Association of Southeast Asian Nations (Asean) foreign ministers’ meeting in Nusa Dua, Bali, on Tuesday.
Yudhoyono said in an exclusive interview published on Friday that he has big plans for Indonesia. (AFP
Photo/Sonny Tumbelaka) President Susilo Bambang Yudhoyono delivers a speech during the opening
ceremony for the 44th Association of Southeast Asian Nations (Asean) foreign ministers’ meeting in
Nusa Dua, Bali, on Tuesday. Yudhoyono said in an exclusive interview published on Friday that he has big
plans for Indonesia. (AFP Photo/Sonny Tumbelaka)

Indonesia has immense potential and ambitions as an emerging-market superstar, but is stymied by
basic infrastructural potholes. Choked roads, overcrowded ports and unstable electricity supply make it
difficult for businesses to operate as well as move their products. But Indonesia plans to change all that
in the next five years.

The government intends to step up the building of modern infrastructure, pouring billions of dollars into
new roads, ports and electricity networks as part of a push to eradicate the main bottlenecks that stand
in the way of the country's economic growth.

A long-awaited law allowing the government to acquire land for public use more easily will be passed
this year.

The plans were laid out by Indonesian President Susilo Bambang Yudhoyono this week, in a rare
interview with The Straits Times.

"In the next five years or so, we will be able to accelerate the process of our infrastructure building," he
said. "It is strongly needed for improving our investment."

It was an upbeat tone that the President maintained throughout the wide-ranging interview, which he
gave on the sidelines of a meeting of Asean leaders in Bali this week.

But the Indonesian leader also tempered his optimism about the development plans with an
acknowledgment of the many challenges Indonesia faces, including the need to get local politicians on
board and to put in place a clear legal framework and "responsive bureaucracy".

Yudhoyono's plans come on the heels of an ambitious economic masterplan that he laid out in May,
aimed at turning Indonesia into one of the world's top 10 economies by 2025.

The masterplan is part of his vision of "strong, balanced and sustainable growth", under which the
government wants to draw more investments and promote exports, so that the country can generate
revenue to fund more programs for the poor and help small businesses grow with micro-credit and
other schemes.

A key plank is to attract US$468 billion (S$ 568 billion) in investments over the next 14 years, including
for infrastructure.
There is an added measure of urgency for the Indonesian leader to get things going in the next few
years. Now midway through his second term, the 61-year-old is constitutionally barred from running
again and must step down by 2014.

While Yudhoyono has been largely popular since he came to power in 2004, he has taken some heat
from critics who say he is too slow - or is unwilling to expend political capital - in pushing through
difficult reforms.

To be sure, Indonesia under his charge survived the 2008 recession well, and today has a seat at the
table occupied by the world's most influential powers, as a Group of 20 member. Last year, it recorded a
respectable 6.1 per cent growth and is expected to do slightly better at 6.5 per cent this year.

But South-east Asia's largest economy - and the world's 17th-largest - continues to suffer from crippling
infrastructure gaps, stultifying bureaucratic delays and corruption.

The lack of infrastructure is by far the biggest obstacle to faster development.

In addressing this, Yudhoyono outlined a two-pronged strategy during the interview.

One, increased government spending.

He said: "I am pleased to say that our economic growth keeps increasing. Our revenue is also increasing.
So we could allocate more resources in our national budget to build more infrastructure."

According to estimates by analysts, Indonesia spent just 3.9 per cent of its gross domestic product in
2009 on infrastructure - well below the 10.4 per cent spent by China and the 7.5 per cent by India.

Complementing this is boosting public-private partnership. The government, said Yudhoyono, will
encourage investors to bid for "commercially viable" projects.

"We will try to distinguish what kind of infrastructure is to be built by the government using our national
money, and what kind of infrastructure that is commercially viable, so we can attract investors - both
domestic as well as foreign - in a nice partnership," he said.

So far, he added, state-owned enterprises are already planning to invest more than US$100 billion in
infrastructure and other projects.

And private-sector partners "are committed already to investing more or less equal to what the state
enterprises will invest", he disclosed. These partners, he said, included China, India, Japan and South
Korea.

Yudhoyono said he is confident that such investments will help Indonesia attain its US$468 billion target.

"In my calculation it will reach that kind of number," he said. "And when we are able to grow our
economy across the country continuously, there will be many investors coming to Indonesia because
they know that we have great opportunities, that the business is moving."
One major sticking point that the government has long encountered in building more infrastructure is
the difficulty it faces in procuring private land for public use.

A lack of clear regulations on land ownership often holds up the state's bid to acquire land for
infrastructure, especially in rural areas, with plans to build much-needed roads blocked by villagers
refusing to vacate their homes.

But the Indonesian government is addressing the problem with the long-awaited Land Acquisition Bill,
which streamlines the process. It was to have been passed in March but is still being discussed in
Parliament now.

"We expect it can be adopted this year," said Yudhoyono. "Both Parliament and the government have
agreed to speed up the process of the adoption of our new law. With this, we will ensure that our
national land agency is more effective in doing its business."

The nub of the President's difficulties arguably lies in the political arena.

The young and vast democracy's multi-party and decentralized political system often left policy-making
mired in politics.

While Yudhoyono secured more than 60 per cent of the vote when he was re-elected in 2009, his
Democratic Party got just 26 per cent of seats in Parliament, limiting his influence in the Lower House.
Governors and mayors at the local and regional government levels are also directly elected, so getting all
parties on board on Jakarta's agenda takes time and political acumen.

Still, buffeted though he may be by pressures from different directions, Yudhoyono maintains an air of
calmness - he is known for composing music and singing as a form of destressing - as he dissected his
own approach to tackling such challenges; by getting the "masses to ensure that regional government
policies and regulations really follow our policies and regulations".

He said thoughtfully: "So this is our challenge, this is the real issue, but I believe along with the maturity
of democracy, all those problems will be resolved over time.

"I should not give an empty promise by saying, 'Well, everything is okay, well, it will be solved soon'. I
will not say that, but the time is correct and we have progressed along the way."
Yudhoyono rapped for comments on media
Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/13/2011 12:05 PM
http://www.thejakartapost.com/news/2011/07/13/yudhoyono-rapped-comments-media.html

The Press Council on Tuesday criticized President Susilo Bambang Yudhoyono for blaming the media for
relying on text messages as news sources in the graft scandals surrounding his political party.

Text messages are a valid source for news stories as long as the media meets principles of covering both
sides, council deputy chairman Sabam Leo Batubara said.

However, he added, media outlets should verify all allegations made in text messages.

“Information for the media could come from many sources, including text messages. It is a matter of
technology,” Press Council member Agus Sudibyo told the The Jakarta Post on Tuesday.

“It is the right of media outlets to use text messages as the source of a news story. The media outlet
knows whether the source is reliable,” Batubara said. “Of course, the media outlet is responsible for
verifying all allegations made in the text message.”

Batubara said Yudhoyono should use existing mechanisms to settle disputes over news stories.

Under the mechanism, people or groups who feel disadvantaged by a news story have the right to seek
clarification directly from the media outlet.

“If that fails, the case can be brought to the Press Council. The final option would be legal recourse. Such
mechanisms have been effective so far,” he said.

Batubara said Yudhoyono’s statements at a press briefing on Monday escalated the issue as he did not
directly blame any specific media outlet.

“I was surprised by Yudhoyono’s generalization that all media outlets did wrong by publicizing the text
messages allegedly sent by Nazaruddin.”

At the press briefing, Yudho-yono said the media continued to discredit the Democratic Party by basing
reports only on text messages purportedly sent by Nazaruddin, the former treasurer of the Democratic
Party and a fugitive graft suspect.

“I don’t understand this. The news stories’ sole cited source are text messages, which then make
headlines. The messages allegedly sent by Nazaruddin — which has not been proven — were publicized
to cast a bad light on the Democratic Party,” Yudhoyono said.

Nazaruddin fled to Singapore in May following growing allegations against him implicating him of
involvement in a graft scandal surrounding a Southeast Asian (SEA) Games construction project.

Since leaving Indonesia, the media has received numerous text messages from a person claiming to be
Nazaruddin. The messages alleged that the scandal also involved other high-ranking members of the
Democratic Party.
‘New media can help boost ASEAN unity’
Abdul Khalik, The Jakarta Post, Nusa Dua, Bali | Wed, 07/20/2011 10:54 PM
http://www.thejakartapost.com/news/2011/07/20/%E2%80%98new-media-can-help-boost-asean-
unity%E2%80%99.html

President Susilo Bambang Yudhoyono blasted local news media for using BlackBerry Messenger and text
messages as sources for stories.

But at the regional level, he countered his stance, advising ASEAN country members to maximize the use
of new technology and media to boost unity.

In his opening speech at the ASEAN Ministerial Meeting (AMM) in Jakarta on Tuesday, Yudhoyono said
ASEAN must seize the opportunities offered by new technologies and social media such as Facebook and
Twitter to boost contact among the citizens of ASEAN countries to help turn the bloc into a genuine
community.

He said that, for the first time and in contrast to just four decades ago, ASEAN members faced a reality
where the frequency and depth of contact between citizens — through cable television, email, Twitter
and Facebook — far exceeded the formal interactions between government officials.

“Indonesia, being the world’s second-largest Facebook nation and third-largest on Twitter, knows this
very well,” he told the foreign ministers, officials and journalists.

Indonesia is home to the second-largest number of Facebook users after the US, with 24 million users.

Reports said that about 20 percent of Internet users in Indonesia visited twitter.com last year.

“There is no government in the world that has all the answers to this new trend. ASEAN, too, must get
into the act. We must be creative and open minded in harnessing the power of technology to promote
people-to-people contact.”

He added that establishing an ASEAN blogger community was one innovative idea and that more should
follow.

ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Vietnam, a collective population of 600 million.

The more developed member-states such as Indonesia, Malaysia, Singapore and Thailand have
witnessed explosive growth in the use of social networking and micro-blogging sites, even if overall
Internet penetration remains low.

In the heat of mounting corruption troubles involving his Democratic Party, Yudhoyono blamed the
media and outsiders who relied on BlackBerry messages, text messages and online news to spread “lies”
against his party.
During his speech in Jakarta on Tuesday, he again warned that the question was not only of how the
grouping’s members could advance and expand contact between citizens, but also how it could manage
that contact in ways that would reduce complications and add benefits and opportunities.

“This is because when millions of people engage across borders — as we have seen in bilateral contexts
— there are bound to be issues and problems,” he said.

Human rights watchdogs have criticized Yudhoyono for approving a 2008 law that sets tough penalties
for online defamation, saying it has been used to intimidate critics and whistle-blowers.

South China Sea talks with China a priority: Yudhoyono

04:45 AM Jul 20, 2011
http://www.todayonline.com/World/EDC110720-0000041/South-China-Sea-talks-with-China-a-
priority--Yudhoyono

NUSA DUA (Indonesia) - A code of conduct governing actions in the contentious South China Sea should
be a priority for the Association of South-east Asian Nations (ASEAN) and China, said Indonesian
President Susilo Bambang Yudhoyono yesterday.

Mr Yudhoyono was speaking in Bali in his keynote speech at the ASEAN Foreign Ministers' meeting this
week, where territorial disputes and flare-ups in the South China Sea are expected to take centre stage
at Asia's largest security forum, after Vietnam and the Philippines accused China of interfering in their
efforts to explore for oil and gas.

"We need to finalise those long overdue guidelines because we need to get moving to the next phase,"
Mr Yudhoyono said.

"The more we are able to do this, the better we can manage the situation in the South China Sea. I am
sure that soon we will be able to commence discussion on a regional code of conduct in the South China
Sea."

Mr Yudhoyono also noted ahead of closed-door talks that it has been nine years since the 10-member
ASEAN and China agreed to negotiate a code of conduct in the potentially resource-rich waterway.

"Things do not necessarily have to be this slow. We need to send a strong signal to the world that the
future of the South China Sea is a predictable, manageable and optimistic one," he said, adding "some
progress" was long-overdue.

The five-day ASEAN summit culminates in Saturday's ASEAN Regional Forum security dialogue, which
will include officials from China, Japan and the United States.

US Secretary of State Hillary Clinton, now in India, will be among those attending. China's Foreign
Minister Yang Jiechi and Mr Pak Ui-Chun of North Korea will also be present.

Mrs Clinton was expected to touch on the issue, but only indirectly, sources in Washington told
reporters.
Meanwhile, China yesterday protested a planned trip by five Filipino lawmakers to a Philippine-occupied
island in the Spratlys, saying it would do nothing but undermine regional stability and "sabotage"
bilateral ties.

Chinese Embassy spokesman Ethan Sun said China would relay its "great concern" to the Philippine
government over the plan by five House of Representatives, members led by Representative Walden
Bello, to fly to what Manila calls Pag-asa Island today.

Pag-asa, which has been occupied by Filipino troops and a small civilian community, lies 480km west of
the western Philippine province of Palawan. AP

ASEAN meetings kick off in Bali Island

Updated: 2011-07-22 15:54
http://www.chinadaily.com.cn/video/2011-07/22/content_12963516.htm

Asia's largest security forum has begun in the Indonesian resort island of Bali where 10 members of
ASEAN have gathered for a series of meetings in the coming week. Indonesian President Susilo Bambang
Yudhoyono rang a traditional Balinese gong to launch the annual gathering.

ASEAN partners China, Japan and the Republic of Korea will also attend the meeting. The US, the
Democratic People's Republic of Korea and the European Union are among the other participants. The
44th ASEAN Ministerial Meeting, the Post Ministerial Conference, and the 18th ASEAN Regional Forum
will take place between July 19 and 23.

There will also be several bilateral meetings among participant countries on the sidelines of the event.
The South China Sea, Thai-Cambodia relations, and nuclear issues in the DPRK are among the issues to
be discussed.

Jakarta Pursues Corruption Battle

JULY 20, 2011
http://online.wsj.com/article/SB10001424052702304567604576455850180531080.html?mod=google
news_wsj

JAKARTA—Indonesia's graft-battling body pledged to press ahead with its efforts to clean up corruption
in Southeast Asia's largest economy, even as a spreading political scandal saps the popularity of
Indonesia's president and threatens to derail the country's momentum on reform.
[INDOGRAFT]

The popularity of Indonesian President Susilo Bambang Yudhoyono has plummeted this year on the
perception that he hasn't addressed allegations of corruption within his own party, according to polling
and political analysts. The president won his second term in office with more than 60% of the popular
vote in 2009 on the back of pledges to keep fighting corruption and to reform the giant archipelago
nation's economy. From a high of close to 80%, his approval rating has fallen to less than 50%, according
to recent surveys.

Much of voters' earlier optimism about their leader was a result of numerous high-profile cases brought
by a new Corruption Eradication Commission, which didn't shy away from throwing judges, millionaires
and members of Parliament into prison. More recently, however, even some fans of the commission
worry it is losing momentum amid personnel changes and other problems. Critics charge the board may
not be fully investigating cases that could embarrass the ruling party.

In an interview Monday with The Wall Street Journal, the commission's vice chairman said the board's
enthusiasm for pursuing graft is unchanged—even as a ballooning bribery scandal threatens to engulf
members of Mr. Yudhoyono's Democrat Party.

"We don't care about the Democrat Party, we don't care about the government," said Haryono Umar,
the commission vice chairman. "Whenever we have the evidence, nobody can stop us."

He declined to speak in detail about particulars of the case.

Since it was started in 2004, the commission—known here by its local acronym, KPK—has backed more
than 300 cases against high-ranking officials and recovered billions of dollars in graft money. It seems to
be launching raids, arrests and new investigations every week.

The latest case, involving the country's ruling party, concerns facilities being built for the Southeast Asia
Games in November, and has been dominating political discourse here for weeks. During the trial, which
started last week, of people outside the party, prosecutors claimed there was bribery and collusion
among contractors and government officials to rig bidding on a project to build part of the athletes'
village.

The former treasurer of the Democrat Party, Muhammad Nazaruddin, whom the commission has
officially declared a key witness and suspect in its investigation, has fled the county, said Mr. Umar.
Some observers criticize ruling-party officials for not ousting Mr. Nazaruddin from the party, despite
public statements from the commission that it has evidence of his involvement in bringing together
parties in the Southeast Asia Games scandal.

Meanwhile, local newspapers and magazines have been publishing telephone interviews with Mr.
Nazaruddin, whose current whereabouts are unknown, in which he claims that he is innocent, and that
other leading politicians are involved.

Neither Mr. Nazaruddin nor his lawyer could be reached to comment.

Mr. Umar said that although the public sometimes wants the Corruption Eradication Commission to
work faster, and politicians sometimes want to slow it down, it doesn't respond to pressure and will
forward on only the cases that it has the evidence to win.

He added that there hasn't been pressure from the Democrat Party to delay the investigation against
Mr. Nazaruddin.
The Democrat Party has said that it isn't shying away from attacking corruption within its ranks, and that
party leaders are scheduled to meet this weekend to announce measures to clean house and improve
the party's image.

"Our party's reputation is tarnished and that is reflected in the popularity surveys," said Achmad
Mubarok, a member of the Democrat Party's advisory board Member. "But ups and downs are natural in
political life."

More than just the future of the Democrat Party is stake in the KPK's corruption investigations, analysts
say. Kickbacks, bribery and collusion are widely believed to take a big toll on the country's crucial efforts
to build the new roads, ports and power plants it needs to keep its economy expanding.

Mr. Umar said the commission's investigations have shown that as much as 40% of money slated for
some government projects is stolen by corrupt officials. About 70% of the corruption cases his team
looks into are connected to government contracts, he added.

"There are many, many cases connected to infrastructure," including the building of roads, the purchase
of ferries and the building of bridges, he said.

In the typical case, he said, a contractor with political connections, or a politician with a dummy
contracting company, pays off government officials to rig and win a bid at an inflated price. They then
subcontract the work to a different company for a much lower price and pocket the difference.

The commission has received more than 50,000 complaints from the public since its start in 2004, and
would like to chase after more corrupt officials, but there is only so much its staff of around 700 people
can do, Mr. Umar said. It has tried to expand its staff but there aren't enough qualified candidates that
can pass its strict interview process, he said. That process includes sending investigators to applicants'
homes and offices to test their integrity and to prove they have never been involved with corrupt
organizations in the past. When it tried to add 100 new employees last year it got 16,000 applicants, but
hired only 44.

To improve the country's infrastructure, as well as the government's approval rating, the commission
needs more whistle-blowing private citizens, politicians, bureaucrats and company auditors to stand up
against those that abuse their positions of power, he said.

"We need more [employees], but what is most important is we need more friends—friends in
government and friends elsewhere," that can point us to the wrongdoers, he said.

SBY wants better military ties between Jakarta and KL

Adianto P. Simamora, The Jakarta Post, Jakarta | Wed, 07/06/2011 9:34 PM
http://www.thejakartapost.com/news/2011/07/06/sby-wants-better-military-ties-between-jakarta-
and-kl.html
President Susilo Bambang Yudhoyono called for better military relations between Indonesia and
Malaysia to ward off looming conflict since the two neighboring countries had a number of outstanding
border issues.

Yudhoyono received a courtesy call from Malaysia’s newly appointed Armed Forces chief Tan Sri Zulkifeli
at the Presidential Palace on Tuesday.

It was the first ever foreign visit by Zulkifeli, who was appointed on June 15 to succeed chief Gen. Tan Sri
Azizan Arrifin, who is retiring.

“Yudhoyono delivered a message on the importance of bilateral ties based on the pillars of military and
economic affairs,” presidential spokesman on domestic affairs, Julian Aldrin Pasha, said after the
meeting.

Defense Minister Purnomo Yusgiantoro and Indonesian Military chief Adm. Agus Suhartono
accompanied Yudhoyono at the meeting.

Yudhoyono’s spokesman on foreign affairs, Teuku Faizasyah, said Zulkifeli’s first foreign visit to
Indonesia showed the importance of Jakarta to Malaysia.

He said Yudhoyono and Zulkifeli did not address border issues at the meeting.

“The two countries are currently discussing border issues. The potential [for conflict] is still there, that’s
why military leaders from the two countries should build better relations to prevent an escalation of
tensions,” Teuku said.

He added that Yudhoyono spoke to Zulkifeli about the long-established joint training of military officers
from the two countries.

“[The two countries] conduct joint training of military officers that could reduce conflicts,” he said.

Teuku played down suggestions that Malaysia’s purchase of two submarines threatened bilateral
relations, saying instead that it could “stabilize regional security”.

He said Malaysia had informed neighboring countries about the procurement under ASEAN’s defense
white paper, which required ASEAN member states to notify other members of its military hardware.

Indonesia and Malaysia have been engaged in several border spats, with each side unilaterally laying
claim to areas near their borders as in case of Ambalat, a 15,235-square-kilometer maritime area
located off the coast of East Kalimantan.
Indonesia is the world's largest Muslim democracy but faces accusations that
human rights violations are deeply entrenched.
11:07PM BST 11 Jul 2011
http://www.telegraph.co.uk/news/worldnews/asia/indonesia/8630800/Indonesias-human-rights-
violations-deeply-entrenched.html

Johan Teterisa was sentenced to life in prison for treason after dancers performing for President Susilo
Bambang Yudhoyono and dozens of dignitaries in 2007 unfurled the independence flag for Republic of
South Maluku flag. The development created an uproar and prompting Yudhoyono to take over the
microphone, ordering their arrest. Other colleagues who had displayed the flag received sentences of
seven to 20 years.

The country's military took a step back from politics a decade ago but human rights groups point out
that massacres committed by troops in East Timor, Papua, Aceh, Maluku, Kalimantan have not been
examined in the courts.

The murder of Munir Thalib, a well regarded human rights defender who was fatally poisoned on a
Garuda Indonesia flight in 2005 remains unresolved. Evidence has pointed to the involvement of high-
ranking intelligence officers in the attack.

A range of journalists and activists who have taken on entrenched political or economic interests have
been subjected to criminal defamation charges.

Everyday acts – such as complaining about treatment received at a hospital or asking a local official
about a land assessment – can result in a defamation prosecution and a prison sentence.

Activists outside the country have pursued abuses in Western courts. ExxonMobil faced claims it aided
and abetted murder, torture and sexual assault by its security forces in Indonesia's Aceh province.

Indonesian villagers claimed ExxonMobil was responsible for the abuses because they were committed
by an Indonesian military unit dedicated only to Exxon's Aceh facility and under the company's direction
and control.

Exxon provided material support to the unit by hiring mercenaries for training, advice and intelligence,
the villagers alleged. The human rights abuses began in the early 1990s, according to one of the
complaint.

Even when complaints are prosecuted, the actions have been criticised as inadequate.

A 10-minute, mobile-phone video, published last October, showed soldiers kicking Tunaliwor Kiwo, a
Papuan farmer, in the face and chest, burning his face with a cigarette, and applying burning wood to his
penis.

The soldiers placed a knife to the neck of the other man, Telangga Gire, while threatening to kill him.
According to Kiwo the torture lasted for three days.
The soldiers beat him with their hands and sticks, crushed his toes with pliers, suffocated him with
plastic bags, burned his genitals and other body parts, cut his face and head and smeared the wounds
with chilies.

But military prosecutors did not bring torture charges and only three of the soldiers were charged with
minor offences.

Safeguarding the world’s forests: Indonesia’s promising future

Volume 5 Number 2 PDF • 1.05 MB
http://ictsd.org/i/news/bioresreview/110711/

Through his unilateral pledges for ground-breaking climate change action, President Susilo Bambang
Yudhoyono has positioned Indonesia as one of the global leaders on climate change. If Indonesia
succeeds in reducing emissions by 26 percent from expected levels by 2020, 750 million tonnes of
carbon emissions could be saved annually, potentially equalling as much as 5 percent of what is needed
on a global basis to meet the target of capping climate change at maximum increase of 2 degrees
Celsius. To support these remarkable efforts, Norway has pledged US$1 billion in support to Indonesia,
to be paid based on independently verified results in reaching the goals.

With its 240 million people, Indonesia is the world’s fourth most populous country, and the country with
the largest Muslim population in the world. It has the world’s third largest tropical rainforest, and has
the highest number of plant and animal species of any country on the planet. Indonesia’s rainforest
covers an area of 1 million square kilometers. It is Southeast Asia’s largest, and the world’s seventeenth
largest, economy, with an economic growth rate of around 6 percent.

Indonesia also has the world’s third largest greenhouse gas emissions, after the US and China.
Approximately 78 percent of these emissions stem from deforestation and forest degradation, as well as
the conversion and burning of carbon-rich peatlands to plantations. Jakarta estimates that, in a
business-as-usual scenario, the total emissions are expected to increase to three billion tonnes of CO2
by 2020; emissions from forests make up as much as 50-60 percent of this total. Globally, emissions
from deforestation and forest degradation in developing countries account for approximately one-sixth
of the total emissions.

At a G-20 meeting in Pittsburgh in 2009, Indonesia’s President Yudhoyono delighted the world by
making a significant commitment. He promised that Indonesia would reduce emissions by 26 percent
from expected emissions levels in a business-as-usual scenario by 2020 without international assistance
and by as much as 41 percent with international assistance. President Yudhoyono’s pledge to reduce
emissions was - together with a similar pledge from President Lula da Silva of Brazil - the most significant
made by any developing country in the context of climate change.

Climate change and economic growth

Almost half of Indonesia’s population still lives below the UN poverty line of US$2 a day. Food prices
have increased. Indonesia’s planned reduction in deforestation should not hamper development. While
economic growth is key for achieving social and environmental goals, long-term economic growth and
lasting competitiveness can only be secured through environmentally sustainable and climate-friendly
development policies. Efforts to battle climate change, poverty, and food, water and energy insecurity,
are mutually reinforcing.

As made clear by President Yudhoyono, the only way to truly succeed with any of these goals is by
striving to reach them all. In Indonesia, two aspirations are intertwined through the President’s 26/7
goal, which refers to the goal of 26 percent reduction in emissions and the President’s stated goal of
reaching 7 percent annual economic growth by 2014. Climate change, economic growth and poverty
reduction is at the forefront of politics in Indonesia, demonstrated by the President’s four main goals for
his presidency: pro jobs, pro poor, pro growth and pro green.

Indonesia is the world’s twenty-seventh largest exporter overall, and the largest exporter of palm oil.
The increasing global demand for minerals, logs, paper and palm oil is among the main drivers of
deforestation and peat-land destruction. Logging does not in itself lead to deforestation, but may, if not
carried out sustainably, destroy the forest to such an extent that the area is eventually reclassified and
made accessible for plantations. Moreover, unsustainable logging contributes significantly to CO2
emissions, as well as the loss of biodiversity and livelihoods that depend on the ecosystem services of
intact natural forests.

As the Indonesian governments REDD+ strategy makes clear, with sufficient political control and
satisfactory land-use planning, forest-based industries such as palm oil and pulp-and-paper may
continue to contribute to economic growth, without destruction of natural forests and peat lands.
According to some estimates, Indonesia may have as much as 35 million hectares of degraded land, and
has offered to allocate the expansion of plantations and other economic activities to already-degraded
or low-carbon areas. This proposition raises new challenges in the form of the need to sort out land use
rights in these areas - so there are no simple solutions - but they can be handled as part of a more
comprehensive, less carbon-intensive approach to land use, tenure and spatial planning.

If Indonesia succeeds in reducing emissions by 26 percent from expected levels by 2020, as much as 750
million tonnes of carbon emissions could be saved annually, potentially equalling as much as 5 percent
of what is needed on a global basis to reach the 2 degrees target.

The pledge and the partnership

On 26 May 2010, Indonesia and Norway signed a letter of intent, during the Oslo Climate and Forest
Conference. Norway will pay for results delivered in three phases, first in the form of institutional
development, capacity building, forest governance reform and enabling policies, and eventually, from
2014, for independently verified emission reductions.

It is essential to emphasise, from a Norwegian viewpoint, that we are supporting an already established
Indonesian effort. REDD+, or any aspect of low carbon growth for that matter, cannot and should not be
imposed from abroad; it must be domestically owned and run. That is why Norway is proud to support
President Yudhoyono’s and his Cabinet’s efforts.

Based on Indonesia’s priorities, the mutually agreed deliverables for the first phase include a
comprehensive, national REDD+ strategy addressing all significant drivers of deforestation and forest
degradation; an independent REDD+ Agency, reporting directly to the president; an independent
institution for monitoring, reporting and verifying forest emissions; development of a financial
mechanism and benefit sharing system according to international fiduciary, social and environmental
standards, and the identification of a pilot province for experimenting with results based support for
measures and policies to reduce emissions from deforestation and degradation of peatlands.

In Oslo in May 2010, President Yudhoyono also declared that he would introduce a two-year
moratorium on conversion of natural forests and peatlands. One year later, the president launched a
two-year suspension on the issuance of new licenses for conversion of primary forest and peatlands. The
moratorium may help facilitate the president’s 2020 goals, and constitutes an important part of a
broader forest and land use reform agenda in Indonesia, though it will not in itself ensure success.
Transparency and multi-stakeholder involvement in all stages of implementation will be crucial to
achieve precise coverage and reconciliation with other land uses, including existing concessions that
cover large areas of the country. The moratorium, however, only signals the beginning of more
comprehensive forest governance reform, which over the next couple of years may encompass
increased efforts against illegal logging and clearing of forests, prosecution of organised forest crime,
review of existing concessions, land tenure and conflict resolution mechanisms for dealing with
overlapping land claims.

What Indonesia is embarking on is a very serious development choice. The ultimate goal of the
Indonesian-Norwegian partnership is to pay for results in the form of emission reductions from
deforestation and forest degradation within 2014 (phase III), and earlier in the pilot province. The
magnitude of the financial contributions from Norway in this phase will depend on the extent to which
Indonesia succeeds in reducing emissions.

Before reaching this phase, however, an annual evaluation will be carried out by a third-party identified
by international tender, which will verify results in phase I and phase II. Their work will be based upon
deliverables identified in a mutually agreed joint concept note, which again is derived from Indonesia’s
REDD+ priorities and ambitions. The verification reports will form part of the basis of payments from
Norway before phase III. The third party will verify the progress in delivery of mutually agreed enabling
policies and forest governance reform measures. The first report, undertaken by the Finnish consulting
firm Gaia Ltd in association with Creatura Ltd, noted good progress in a number of areas, as well as the
challenges involved in completing the remaining, and most difficult deliveries related to institutional
responsibilities and monitoring of emissions.

The challenge of climate change remains a global one, and we continue to need a plan in the form of a
global regime if we are to reach the 2 degree target. Only the United Nations can offer this framework.

However, greenhouse gas emissions continue to rise towards a dangerous tipping point, without waiting
for diplomatic solutions. In addition to the negotiation track, therefore, an action track is needed.
Norway’s partnership with Indonesia is one of many elements of this action track. In the years to come
Indonesia’s efforts may contribute significantly to reducing the global emissions from deforestation and
forest degradation.

As mentioned, REDD+ cannot be imposed from abroad, but must be domestically owned and run. Over
the past few years, a broad constituency of forest countries has emerged, eager to get REDD+ off the
ground.

Now, adequate, predictable and sustainable medium and long-term funding is needed to deliver and
reward large-scale verified results in reducing tropical deforestation. There is every reason to be
optimistic. This is an area where we can achieve significant results - even before a final international
climate agreement is settled.

House Votes to Increase Fuel Subsidies Despite Plans to Cut Program by 2014
Dion Bisara | July 22, 2011
http://www.thejakartaglobe.com/business/house-votes-to-increase-fuel-subsidies-despite-plans-to-
cut-program-by-2014/454692

The House of Representatives approved on Friday a hefty 35 percent increase in fuel subsidies amid
speculation that the government was planning to raise subsidized fuel prices this year.

Under the bill, the government will spend an additional Rp 33 trillion ($3.8 billion) on fuel subsidies this
year, despite plans to cut funding entirely by 2014.

The revised 2011 budget raised energy subsidies across the board, earmarking Rp 127.9 trillion for fuel
subsidies and Rp 65.6 trillion for electricity subsidies — a 61 percent increase over last year’s budgeted
electricity funds.

The revised budget totals Rp 1,320.8 trillion, up from original forecasts of Rp 1,229.6 trillion.

The government had proposed a Rp 120.8 trillion budget for fuel subsidies earlier this month. That
amount was 35 percent higher than the original budgeted amount of Rp 96 trillion.

Electricity subsidies were also lower, set at Rp 40.7 trillion in the original budget.

Critics called the move short- sighted, explaining that rising fuel prices would only drive fuel subsidies
higher in the coming years.

“In the long run, oil prices will keep increasing and such inaction would burden us further,” said Marwan
Batubara, executive director of the natural resources think tank Indonesian Resources Studies.

Marwan said President Susilo Bambang Yudhoyono was unlikely to risk raising fuel prices in the current
political climate.

“This has nothing to do with the economy of the poor,” Marwan said. “The momentum is just not right
for the government.”

Yudhoyono’s popularity has faltered amid recent graft allegations targeting senior members of the
president’s Democratic Party.

In the short term, the House could impose an additional vehicle tax on motorists to recoup some of the
money spent on subsidies, Marwan said.

“But for the long term, the government has to come up with a reliable scheme that can channel the
subsidy to the poor directly,” he said.
According to a World Bank report released earlier this year, the top 10 percent of the population receive
Rp 135,000 in fuel subsidies per capita, while the poorest 10 percent receive Rp 23,000.

And any move to increase fuel subsidies only distorts the budget’s structure, said Milan Zavadjil, a senior
resident representative of the International Monetary Fund in Indonesia.

“Fiscal policy needs to be re-oriented away from subsidies and toward infrastructure and social
spending,” Zavadjil said in a written statement on Friday.