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NATIONAL INFORMATION AGENCY REPUBLIC OF INDONESIA
Front cover: Modern buildings of Bank Indonesia in Jakarta (front), and ancient buildings of Prambanan Temple in Yogyakarta (back)
All material contained in this book may be freely quoted provided that the source is acknowledged.
Prepared by: Proyek Peningkatan Pelayanan Informasi Publik TA 2004 Direktorat Media Informasi Tercetak Lembaga Informasi Nasional Jl. Medan Merdeka Barat, 9. Jakarta 10110 INDONESIA
Supervisor Editor-in-Chief Managing Editor Executive Editor Associate Editors
Writers Coordinator Writers
Photography Art Design & Layout Cover Design Secretariat
: Roem Lintang Suharto : Amsal Asagiri : Nana Sunara : Bagio Prihatono : Totok Saptogondo Jamalem Subangun Sedia Barus : Maria Sri Margini : Zulfa Basier Wiwiek Satelityowati Fasekhah Yane Erina Nusirwan Ifnaldi Jaka : Indar Ritawani : Brontho Dwiatmoko : Suandi Tanjung : Theresia Luciana M.M Jose rizal
2004 is the thirty-fifth official handbook in the series prepared and revised each year by the National Information Agency, a government institution dealing chiefly with operational activities in the field of information. This 2004 edition, which covers events up to October 2004, gives a factual account of administration and the national economy of Indonesia. It features the activities of many of the national institutions, and the part done by the Government in the life of community. This handbook does not claim to be comprehensive. But the factual and statistical information it contains has been compiled from official and other authoritative sources. The issuance of this book is in coincidence with the inauguration of President Susilo Bambang Yudhoyono and Vice-President Mohammad Yusuf Kalla -the first President and Vice-President of the Republic who were elected by direct popular vote. The editors sincerely hope that this book can assist the readers in keeping track of the progress of the world's largest archipelagic republic.
Culture and Ethnic Groups • Population Growth Rate • Religions HISTORY Ancient Time The Period of Hindu Kingdoms The Period of Islamic Kingdoms European Influences National Movements General Elections STATE AFFAIRS Pancasila. the State Philosophy iv v 1 1 10 17 17 18 22 23 26 40 49 49 v .CONTENTS FOREWORD CONTENTS LAND AND PEOPLE Land • Geographical Features • Climate and Weather • Rivers and Lake • Fauna and Flora • Indonesian Standard Time • Exclusive Economic Zone People • Languages and Dialects • Race.
Communications and Mass Media 51 58 58 59 60 79 85 90 90 102 105 106 113 120 124 130 134 143 148 152 158 161 164 164 168 173 vi . Postal Services and Telecommunications Mining Maritime Resources and Fishery Manpower Tourism Culture POLITICAL AFFAIRS Domestic Affairs Foreign Affairs • The Bali Concord II Information.The 1945 Constitution The National Flag The Coat of Arms The National Anthem State Organs • The People's Consultative Assembly • The Presidency • The House of Representatives • The State Audit Board • The Supreme Court • The Constitutional Court • The Regional Representatives Council • The Indonesian Presidents REGIONAL DEVELOPMENT THE LAW ECONOMY General Features Banking Insurance Investment Manufacturing Industry and Trade Small and Medium-Scale Enterprises and Cooperatives Agriculture Forestry Transport.
and Drug Abuse Control Environment DEFENCE AND SECURITY Security Problems 178 178 181 185 190 194 200 203 206 209 213 218 vii .SOCIAL AFFAIRS Social Welfare Religious Affairs Education Science and Technology Health Housing Women Empowerment Youth Sports.
8 million sq km (including Exclusive Economic Zone _EEZ). 1 . consists of five main islands and some 30 smaller archipelagoes. Kalimantan or two-thirds of the island of Borneo measuring 539. the Pacific and Indian oceans and a bridge between two continents. The name "INDONESIA" is composed of the two Greek words: "Indos" meaning India and "Nesos" meaning islands. therefore. The island of Java.LAND AND PEOPLE LAND Indonesia.981 sq km which forms part of the world's second biggest island of New Guinea. Indonesia's five main islands are: Sumatra is about 473. Sulawesi 189. Jambi The Indonesian archipelago is divided into three divisions.000 are inhabited.606 sq km in size.187 sq km.216 sq km and Papua 421. the largest archipelago in the world to form a single state. social. Asia and Australia. which consists of a land territory of 1.9 million sq km and a sea territory of 7. Kerinci Mountain.508 islands and islets of which about 6. Sumatra and Kalimantan. the most fertile and densely populated island. The other islands are smaller in size. Its estimated total area is 9. Java 132. Indonesia's cultural. Because of its strategic position.9 million sq km.460 sq km. stand on the Sunda Shelf which extends from the coast of Indonesia's land area is generally covered by thick tropical rain forests where fertile soils are continuously replenished. totalling about 17. GEOGRAPHICAL FEATURES The territory of the Republic of Indonesia stretches from 6°8' north latitude to 11°15' south latitude and from 94°45' to 141°65' east longitude. together with the small islands in between. The Indonesian archipelago forms a crossroad between two oceans. political and economic patterns have always been conditioned by its geographical position.
508 islands and islets of which about 6. Its estimated total area is 9.187 sq km. the largest archipelago in the world to form a single state. The other islands are smaller in size. consists of five main islands and some 30 smaller archipelagoes.216 sq km and Papua 421. Sumatra and Kalimantan. therefore. The lava ejected has a high degree of fertility. which consists of a land territory of 1. in the evening 2 . The Indonesian archipelago is divided into three divisions.9 million sq km and a sea territory of 7. Gorgeous Uluwatu. The island of Java. Java 132. The name "INDONESIA" is composed of the two Greek words: "Indos" meaning India and "Nesos" meaning islands.Indonesia. Bali. GEOGRAPHICAL FEATURES The territory of the Republic of Indonesia stretches from 6°8' north latitude to 11°15' south latitude and from 94°45' to 141°65' east longitude. the most fertile and densely populated island. the Pacific and Indian oceans and a bridge between two continents. Because of its strategic position. totalling about 17. political and economic patterns have always been conditioned by its geographical position. Sulawesi 189. The Indonesian archipelago forms a crossroad between two oceans. Indonesia's cultural. Asia and Australia. Indonesia's five main islands are: Sumatra is about 473.9 million sq km. together with the small islands in between.000 are inhabited. The island of Java has 112 volcanic centers of which 15 are active.981 sq km which forms part of the world's second biggest island of New Guinea.606 sq km in size. Kalimantan or two-thirds of the island of Borneo measuring 539. social.460 sq km.8 million sq km (including Exclusive Economic Zone _EEZ). stand on the Sunda Shelf which extends from the coast of Indonesia's land area is generally covered by thick tropical rain forests where fertile soils are continuously replenished by volcanic eruptions like that on the island of Java.
An additional advantage of the island of Java is that its coastal plains are not edged by wide swamps as in the case of Sumatra. The dry season is from June to September and the rainy season from December to March. Indonesia's monsoon-type climate changes approximately every six months although in recent years weather patterns have been somewhat disrupted as part of global changes in weather. not bordered by coral reefs as in the case of the island of Sulawesi. This characterizes the weather of Indonesia. inland and mountain areas: 26°C. RIVERS AND LAKES Besides the great number of mountains and hills. These factors contribute to the displacement and intensity of the Inter-Tropical Convergence Zone (ITCZ) being an equatorial through of low pressure. there are still many rivers scattered throughout the country. higher mountain areas: 23°C. Batanghari. Ciliwung and Brantas Rivers. On the island of Sumatra there is plenty of evidence of past volcanic activities. varying with the altitude. Its variation is caused by the equatorial circulation (Walker circulation) and the meridional circulation (Hardley circulation). the Musi. although the ejected material contained acid which is of less fertility compared with Java. and Kampar Rivers in Sumatra. CLIMATE AND WEATHER Indonesia's climate and weather is characterized by an equatorial double rainy season. Barito. and Rajang Rivers in Kalimantan. 3 . The displacement of the latter circulation is closely related to the north-south movement of the sun and its position at a certain period with regard to the earth and the continents of Asia and Australia. They serve as substantial transportation means in certain islands. height above sea level and proxim ity to the sea and exception. Indragiri. rivers are very important for irrigation means. with a minimum of 73 percent and a maximum of 87 percent. In Java. Average temperatures are classified as follows: Coastal plains: 28°C. and Memberamo and Digul Rivers in Papua. the Kapuas. Intervening periods are transition months in which the weather will be mixed. for instance the Bengawan Solo. Mahakam. Indonesia has an average relative humidity between 70 percent and 90 percent. Kalimantan and Papua. while the prevalence of the West monsoon and the East monsoon (the rainy and dry seasons) are characterizing Indonesia's climate. Land and People Humidity and temperatures are vary according to the season but temperatures are affected additionally by time of day.
Towuti. such as Seram and Halmahera. Poso. are not found in the Oriental Region. the marsupials. Sumatra and Kalimantan are completely lacking in Papua. Maninjau and Singkarak Lakes in Sumatra. and Kalimantan lay on the Sunda Shelf and were joined to each other and to the mainland of Asia. and the islands. although it is only 50 km from Kalimantan across the Makassar Strait. Sidenreng. The region between these two shelves (Maluku. lack the major part of the latter's fauna. Limboto and Tondano Lakes in Sulawesi. Sumatra. which occur in Papua. Java. Similarly. lay on the Sahul shelf. ending at the southeast of the Philippines). Weber's (a line drawn and passing through the sea between Maluku and Sulawesi) and Lydekker's (a line drawn at the edge of the Sahul shelf. which skirts the western border of Papua and the Australian continent) although some of them prefer to characterize the zone itself as a "subtraction-transition zone. closest to Papua. the Tempe. Sulawesi and the Lesser Sunda Islands) has another type of fauna. Scientists represent this situation in terms of three faunal lines Wallace's (a line drawn from south to north through the Lombok and Makassar straits. This original geographical segregation explains why the typical oriental fauna species found in Java. In that glacial period. but Papua and the Australian continent at that time. All of them are located amidst of islands. such as the Toba. which dates back to the glacial period when the sea level fell worldwide. 4 .A number of unique lakes are also found in some islands. Bekantan (Nasalis larya-tus wurmb). The bulk of Oriental fauna does not occur in Sulawesi. FAUNA AND FLORA FAUNA Within the Indonesian archipelago lies one of the most remarkable zoogeographical boundaries in the world." Endangered one-horned rhino (Rhinoceros sondaicus) that can be found only at Ujung Kulon National Park in West Java (above). the Paniai and Sentani Lakes in Papua. This may be the result of the ancient presence of a deep strait between Kalimantan and Sulawesi and the depth of the Banda Sea so that this group of islands may never have been connected with either shelf during the glacial period.
out of at least 75 species of mammals known as fossils. is very dependent on primary forest habitat. which emphasizes the conservation of the entire ecosystem. as it is often not possible to preserve wildlife without its habitat. off the west coast of Flores. in Java. For example. and Rinca Islands. in Sumatra and Kalimantan respectively. is found only in Kalimantan and its surroundings (above). eastward of Java. Information obtained from the paleontological record reveals that the number of species known today is much smaller in the past. For example. There are at present 320 natural preserves and natural parks in Indonesia. now this kind of bird is decreasing in number (below). The extinction of many species of animals was probably due to normal ecological and evolutionary processes related to such factors as shifting sea levels. found only in Sumatra and Kalimantan. 5 . climatic changes and habitat alterations. The Komodo dragon (Varanus komodoensis) which is the largest lizard in the world. In order to safeguard and protect wildlife in Indonesia. the PPA in cooperation with the World Wildlife Fund (WWF) has established "Orang Utan Rehabilitation" Projects in Bohorok and in Tanjung Putting reserve. Padar. wildlife is considered as being incapable of caring for itself. has its home in the Komodo group of reserves. 35 are extinct. A gorgeous peacock. The PPA has adopted the modern natural conservation practice. This is necessary. to protect their habitat. reaching a length of 2 to 3 meters. the Directorate of Nature Conservation and Wildlife Management (Direktorat Perlindungan dan Pengawetan Alam) or PPA as abbreviated has set the target of designating about 10 percent of land as preserve areas. the orangutan (Pongo pygmaeus). for retraining illegally captured orangutans for life in the wilderness. and more being proposed. Therefore.belonging to the monkey species. 20 still survive and 20 are extinct in Java but found elsewhere in Asia. comprising Komodo. At the present stage of Indonesian social and economic development. The more recent process of extinction of certain animals in Java may have been closely related to human influences on the ecosystem.
The babirusa or pigdeer (Babyroussa-babyroussa) and the anoa. the red colored Labridae and the Coris Aygula species found in plenty around the Bali strait. hawks. Papua and Maluku areas are rich in colorful birds. and many others. and also exotic species of fishes. and many kinds of lizards and snakes. kingfishers. 6 . are very interesting. tortoises. Japan. ranging from the great flightless cassowaries (Casuarius-casuarius) to brilliantly plumaged birds of paradise of the family Paradiseidae and Ptilinorhynhidae (more than 40 species altogether) and many numbers of the parrot family. eagles. and Germany. Ornamental Fish Indonesia is also known for its ornamental fish species which are now being exported to the United States. such as the banteng (Boss Javanicus). the maleo fowl and the Sulawesi shrubhen. thousands of species of insects. many interesting animals are worthy to note. the Sumatran tigers (Panthera tigris Sumatrae). which are noted for their enormous beak topped by a bony casque.Due to its geographical isolation from other land masses for a longer period than the other major islands. the largest of all civets. off the west coast of Sumatra. a species of tarsier (Tarsius spectrum). crabs. and the very small number of remaining Java tigers (Panthera tigris Sondaica). the small number of one-horned rhinoceros (Rhinoceros sondaicus) found only in the Ujung Kulon reserve in West Java. the Mentawai macaquel and leaf monkey Mentawai (Macoca pagensis and Prebystis potenziani) only found on the Mentawai Islands. These ornamental fish species which are known for their colorful shape and beauty include: the Amphiprion fish. mollusks and other aquatic animals living both in salt and fresh water. three kangaroo (Dorcopsis mulleri) from Papua. and several forms of the Sulawesi macaque (Cynopithecus niger). Other endemic mammals of Sulawesi are the giant pam civet (Macrogalidia musschenbroeki). Besides. Among the many species of birds in Sulawesi. Other members of the Oriental fauna are the hornbills of the family Bucerotidae. herons. a forest-dwelling dwarf buffalo are among the interesting endemic animals of Sulawesi. Some parts of the Indonesian archipelago are still unexplored and open for botanical and zoological surveys and discoveries. two species of the megapode birds. the Dascyllus. roaming the forest of Sumatra and Kalimantan. turtles. In addition there are the great variety of birds including egrets. fresh-water dolphin (Orcaella brevirostris) from Mahakam River in Kalimantan and the proboscis monkey also from Kalimantan. elephants (Elephas indicus). Sulawesi has a unique fauna comprising many endemic species and many variations thereof.
Volitans. Pterois-bachiopterus. Other attractive species are the Acunthurus-leucosternon fish. The Peacock fishes called so after their long fins. Flora Indonesia lies within the botanical region of Melanesia. P. saprophytes and lianas. The Heniches acuminatus have very long back-fins exceeding their body length and the Monish idol or Zanclus canescens can have a size of 20 cm. all of them belonging to the Scorpanidae family. Pamancanthus semicirculatus. examining their patients or pecking the body of other fishes. a type of ever-wet vegetation containing a large number of timber species harboring various kinds of epiphytes. Pygoplites-diacanthus and Auxiphipos navarchus or angle fishes belonging to the Pamancanthidae families are collected because of their beautiful colors. which behave like doctors. There are still many other species of ornamental fish in Indonesia. Fishes living solitary are the Triggerfishes or Balistidaes. found in Indonesian waters are the Ptrerois-zebra. Pearl shells are found plentifully in Maluku. the Indonesia archipelago. Pearl oysters became an important marine product after the setting up of the Marine Fisheries Research Institute (LPPL) in 1960 which started to conduct research and making experiments on the cultivation of pearl bearing oysters on the island of Aru and in Sulawesi. These characteristic 7 . P. Indonesian pearls are in great demand because of their large size and superb quality. Sea Horses or Hippocampus-coronatus of the syngnathidae family are also among the ornamental fishes collected in Indonesia. The Acarthuridaes and Paracunthurus hepatus fishes are very attractive due to their specific bleish color. Pearls Shells Pearl oysters found in Indonesia are the Pictada maxima. The Chaetotontidae have small beaks. Pamancanthus imperator. too many to be mentioned. P. People used to dive for these shells for their iridescent colors and make of them beautiful ornamental articles and jewelry. The series of successful experiments have given rise to the establishment of several pearl cultivation companies in the country. the Maluku and Aru islands are the habitat of these species. the Philippines and the whole of Papua New Guinea and Papua except the Solomon Islands. Pmagaritifera and Rteria penguin species. the Zebrazoma-veliverum and the Naso-literature fishes. Miles and the Radiatas. covering the Malay Peninsula south of the Isthmus of Kra. For the most part the Melanesian region is covered by the luxuriant growth of the characteristics tropical rainforest vegetation. The seas of Indonesia's eastern part around Halmahera Island. but the Forcipiger longirostris and the Rostratus fish are characteristic for their long snouts. The most common species among Indonesia's ornamental fishes are the Thalassoma lunare.Doctor fishes or Labroidae dimidiatus are ornamental fishes. Rusellii.
000 species of Indonesian plants are known to be used directly by the 8 . or about 10-12 percent of the estimated number of plant species in the whole world.000 species of pants. Besides. Rafflesia arnoldi From the same area in Sumatra comes another giant. The myriad or orchids found in Indonesia are rich in species. with the largest inflorescence of its kind. The insect trapping pitcher plants (Nepenthea Spp. Above an altitude of 1. a valuable kind of timber for furniture.000 m. The Dipterocarp family is world famous as the main source of timber (the meranti) as well as resin and vegetable fat. is obtained from species of Gonystylus. Approximately 6. this parasitic plant grows on certain lianas but does not produce leaves. the luminescent species.features and the high number of genera and species endemic within this region make the flora of Indonesia completely different from that of neighboring continental Asia and Australia. ulin and the kayu Palembang are taken directly from the forest. a product of man-made forest in Java. is reflected in the accommodation of close to 40. the rich flora of Indonesia contains many unique examples of tropical plant life and manifestations Rafflesia arnoldi. varying in size from the largest of all orchids. including the horsehair blight. Indonesia is also known for its teakwood. Higher still. etc. which is found only in certain parts of Sumatra is the plant with the largest flower in the world. ebony. but comparatively speaking this is insignificant since the major part of Indonesian land-mass consists of lowland. tengkawang or illipe nuts. such as the Rosaceae. medicine and handicraft. to the tiny and leafless species of Taeniophyllum used by the local people as a source of food. Lauraceae. The forest ground in Indonesia is so rich in litter enabling a multitude of fungi to grow luxuriantly. a better development of what is normally considered temperature families can be seen. as well as from the flora of other tropical areas in the world. the flora making up the Indonesian vegetation abounds in timber species. Ramin. Fogaceae. As might be expected. In view of the richness of the Indonesian flora it isn't surprising that the Indonesian people are depending heavily on these natural resources to support their daily life. the tiger orchid Grammatophyllum speciosum. Moreover. elfin or mossy forest and alpine vegetation are found. The richness of the Melanesian region of which Indonesia represents the major portion. Amorphoplalus titanum. whereas sandalwood. the sooty mould and the black mildew.) are represented by different kinds of species from many areas in western Indonesia.
covering the provinces of Maluku and Papua.local people. Indonesia Standard Time Indonesia's three time zones are as below: 1. all provinces in Sulawesi. 1983. and the provinces of West and Central Kalimantan. and the provinces of Bali. 2. Indonesia had to enact laws to govern the seas in accordance with the geographic structure of an archipelagic state. Eastern Indonesia Standard Time equals GMT plus 9 hours (meridian 135°E). It stated that all the waters surrounding and between the islands in the territory came within Indonesia's sovereignty. archipelagic states like Indonesia have unilaterally determined their 200-mileExclusive Economic Zones. the Indonesian Government issued a declaration on the territorial waters of the Republic. Exclusive Economic Zone When independence was proclaimed and sovereignty gained. It also determined that the country's territorial water limit was 12 miles. In the past. The laws were necessary instruments for the unity and national resilience of the country. the islets and the seas in between. however. This. West and East Nusatenggara. 1957. Most characteristics in this modern time is probably the use of plants as the source of raw material for Indonesia's traditional herbal medicine (jamu) and as indispensable part in ceremonies. customs and traditions. did not mean that the country would bar international passage. This is the legal basis of the Indonesian-Exclusive Economic Zone. 5 of the same year. by Act No. 9 . covering the provinces of East and South Kalimantan. In view of the country's susceptibility to foreign intervention from the sea and for domestic security reasons. Western Indonesia Standard Time equals GMT plus 7 hours (meridian 105°E). 3. covering all provinces in Sumatra and Java. Central Indonesia Standard Time equals GMT plus 8 hours (meridian 120°E). Today such economic zones are confirmed by the International Convention on the Law of the Sea. which was ratified by the Indonesian Government on October 18. measured from a straight baseline drawn from the outermost points of the islands. on December 13. with a territory that embraces all the islands.
Halmahera. Dayak. into four ethnic groups. and in the southern part. Languages and Dialects Languages and dialects spoken and written over the whole of the Indonesian archipelago. On the island of Sulawesi in the north are the Minahasas and in the center the Torajas. the Makasarese and the Buginese. These Melanesians are again sub-divided into the Acehnese of North Sumatra. The Ambonese on the group of islands in the Maluku and the Irianese in Papua are classified into the Polynesians and the ProtoAustronesians.People Due to Indonesia's emergence into an archipelago where its inhabitants. including their languages and their growing into diversification. but more so on the basis of their linguistics identities caused by mentioned diversification. In between these languages there exist many other different dialects. the Proto-Austronesians (including the Wajaks). the Minangkabaus in West Sumatra. 150 to 250 in number are usually classified according to the above mentioned ethnic denominations. Ambonese. one finds the Dayaks. the population of Indonesia has been reclassified. have caused the individual development of cultures. Tetum of Timor. The Micronesians are found on tiny islets of Indonesia's eastern borders. and Timorese on Timor Island. though of one similar ancestry. Minahasa. Sundanese. the Sasaks on the island of Lombok. Batak. the Sundanese in West Java. On the island of Borneo in Indonesia's Kalimantan. the Batak in Northeast Sumatra. were separated by seas and therefore lost contacts. These four main ethnic groups are the Melanesians (the mixture between the Sub-Mongoloids with the Wajaks). the Madurese on the island of Madura. A pure classification according to their racial origins is difficult to realize due to their inter-marriages. Buginese. 10 . not so much on the basis of their racial origins. the Balinese. Javanese. Nevertheless. the Javanese in Central and East Java. Ceramese. Toraja. The main district local languages of Indonesia are among others: the Acehnese. several Irianese languages and other such languages. Sasak. the Polynesians and the Micronesians.
9 . the greater parts of the Indonesian nationals are bilingual. Its lexicon and structure is mainly based on the Malay language enriched by Indonesia's lexicon of her multi-local languages and dialects.Profiles of some Indonesian women Ambon Bali Betawi Riau West Kalimantan South Tapanuli Lombok South Sumatra Nias Indonesia's National Language has been officially introduced since Indonesia's independence and is called the BAHASA INDONESIA. Although the Bahasa Indonesia has since been regarded as the Lingua Franca. In August 1973. Indonesia and Malaysia signed a cultural agreement in which similar spelling of both the Malaysian "Bahasa Persatuan" and the Indonesian "Bahasa Indonesia" has been agreed upon. yet local languages are equally valid and no attempt and intention exist to abolish these local languages and dialects. Therefore.
Culture and Ethnic Groups The first inhabitant of Indonesia was the Javaman. There are about 500 ethnic groups in Indonesia spread from Sabang (the northernmost tip of Sumatra) to Merauke in Papua. In Aceh.000 BC. The Javanese community is the largest number of Indonesia's total population.000-500 BC. followed by the Sundanese. The first to accept the Islam religion were the coastal kingdoms. the Gujarat and the Arab people also spread the Islamic religion in this area. who lived 500. In the period of 3. Madurese. Islam founds its way to the community at a later stage. The arrival of the Portuguese should be linked to the European demand for spices. The influx of the Indian settlers until the seventh century AD brought about the Hindu religion spread throughout the archipelago. the "Wali Songo" (Islamic preachers) had played a very important role. Moslem merchants from Gujarat and Persia began visiting Indonesia in the 13th century and established trade links between this country and India and Persia. They were followed by Spaniards.language. which before had embraced Hinduism. Particularly in Java. culture and customs they share. The members of each group are tied to each other by a sense of solidarity and identity which finds its roots in the land. Minangkabau. First accepted by court circles. In the period preceding independence.Race. The fossils found in 1891 and 1892 in the village of Trinil.000 years ago. they propagate Christianity. that Portuguese arrived in Indonesia. near Solo. Besides search for spices. thus making the beginning of 350 years of Dutch colonialism over the country. intermarriage still occurred with Indo-Arian migrants from the South-Asian sub-continent of India. It was in 1511. Indonesia's community was made up of a large variety of ethnic groups or rural communities. the Dutch ultimately succeeded in gaining the trade monopoly in spices throughout the archipelago. named Pithecanthropus erectus by Eugene Dubois who found the fossils at several places on the island of Java in the vicinity of the Bengawan Solo River. the Dutch and the British. were called Homo Soloensis. art. 11 . In the rivalry that ensued. In 1. while those found in Wajak were called Wajakensis. Homo Soloensis with the same characteristics as the Austro-Melanosoid people had roamed to the West (Sumatra) and to the East (Papua). Indonesia was inhabited by Sub-Mongoloid migrants from Asia who later inter-married with the indigenous people. While conducting trade. Islam was widely accepted by the community with the Pasai and Perlak Kingdoms becoming the first Moslem kingdoms in the archipelago.
600.5 heads per household. manufacturing.700. some 44. the country has held population census for five times i.6 percent. its data could be used as comparative basis of reference. etc. In 2002. Population growth rate tended to decline during the past two decades.7 percent.34 percent worked in agricultural sector. Kalimantan 3. This declining growth rate was parallel with the decrease of a households' number. meaning more male than female in number. was 60. it decreased to an average of 1.e.000 with an average of 3.7%) occupied the island of Java. Such a census was once held during the Dutch colonialists' occupation as well but its results' accuracy were doubtful.843. However. 1980.97 percent per annum. trade. the remaining 27. The decline was chiefly due to the success of family planning programs starting into operation in 1970s. Other ethnic groups are among others the Ambonese. The island of Sumatra accounted for only 13. Arabs and Indians. Apart from the indigenous communities. in 1961.9 heads per household.industry.000 heads _placing it the world's fourth largest after China. POPULATION Number.008. of which 41.33 percent worked as labors or employees. of 91.700.000 heads with population density at about 111 heads per sq km. 19. the total number of population in June 2003 was estimated at 215. With population growth of 1.000 heads. Based on the 1990 Census. 1990.000 working population.42 percent in trade. Indonesia had total population of 205. Further. India.9 percent. the Acehnese. 12 .49 percent per annum during the period of 1990-2000. Sulawesi 6. The following decade saw the total households numbering 52. Sasaks. 1971. Growth Rate.276. and Distribution According to the 2000 Population Census.21 percent in manufacturing ployees in the sectors of services. Maluku and Papua 1. Batak and the Balinese. 13. population grew at an average of 1.546. there were 39. and 11. Higher proportion of the working population in Java earned their life in manufacturing and trade rather than in agriculture.000 households with an average of 4.30 percent in services. and agriculture. at the time the total number of population of the Netherlands East Indies now called Indonesia.6 percent. According to Kolonial verslag: Volkstelling 1930 (Colonial Report: Population Census 1930). Nusa Tenggara 5.49 percent in the 1990-2000 period. other sub-communities of foreign descent are the Chinese. and 2000. Dayaks. Since its proclamation of independence in August 1945.Buginese.000 heads (68. and the United States of America_ with ratio between males and females over 100.5 percent. During the period of 1980-1990. The reverse applied in other islands.
It was during the second Indonesian Youth Congress on October 28. Biak. with Pancasila as its state philosophy. Sasak. Torajans.37 percent of the country's total land area. Mandar etc. Flores and Timorese live in East and West Nusa Tenggara. which accounts for only 0. making its density of only six heads per sq km. is home to only 1. Indonesia. Races and Ethnic Groups The Indonesian people consist of hundreds of ethnic groups. Jambi. The island of Sumatra is home to the ethnic groups of Acehnese. 13 .3 percent of the country's total area. which makes up some 30. art.985 heads per sq km. The island of Bali is home to the Balinese. Tortor dance of the Batak. In overcoming such uneven distribution of population. Palembang etc. Lenso dance of Ambon (Maluku). Artak are ethnic groups that live in Papua. Yali. Kalimantan and Papua). Marind-anim.With its land area of about 6. was for the first time declared as lingua franca for ethic groups residing in the territory of then the Netherlands East Indies.4 percent of the country's total area. On the contrary. The island of Java is home to the ethnic groups of Betawi. Korowai. in Sulawesi the Minahasans.83 percent of the country's total population. Banjar and Malays. The Asmat. Minangkabauan. In Kalimantan live in the Dayak. Kalimantan (part of Indonesia). It means population density in Java Island is 997 heads per sq km. Outside Java.01 percent of the country's total population. the Indonesian Language. Each of those ethnic groups has its own distinct dances popularly known among the public. now called Indonesia. Javanese. The Greater Jakarta.75 percent of the country's total land area.100 heads per sq km. etc. The event _called as the "Youth Pledge"_ was the starting point of the all ethnic groups to awake to build one nation and one motherland. making its population density stood at 12. Sundanese. Piring dance of Minangkabau (West Sumatra). such as Saman dance of Aceh. Dani. Makassar. Indonesia had for many years introduced and carried out migration programs by moving a number of people from the densely populated islands (Java and Bali) to the sparsely populated islands (Sumatra. Serui. the Gayo.10 percent of total population. Those ethnic groups politically and geographically unite into a nation. The programs ended a couple of years ago. 1928. while the ethnic groups of Lombok. Java accounts for about 58. accounts for only 5. Bugisnese. Papua which accounts for some 19. the Batak. Bali is the most dense with 596 heads per sq pm. is home to about 4.49 percent of the country's total population or with an average density of 20 heads per sq km. with each group having distinct language. Trailing behind is Banten with 1. tradition and custom. and North Sumatra with 162 heads. that the Bahasa Indonesia. Malays. the Indonesian nation under the Unitary State of the Republic of Indonesia. Ondel-ondel dance of Betawi.
51 percent.53 5. Balinese 1. The 2000 Census recorded only 15 ethnic groups. Sasak 1. Composition of Main Ethnic Groups to the country's Total Population (%) No.37 percent.71 2.66 percent. Chinese descents make up only 0. Sundanese 14. Trailing behind are Sundanese with 15.86 percent. It also revealed different composition from that of the 1930 Census recorded.41 3.02 14 . among the hundreds existing ones. and bear clan names after their own surnames.37 4.4 percent.99 percent. namely some 41.51 percent.71 percent of the country's total population. particularly in term of quantitative data reflecting socio-political perspective changes in the country.49 6.04 3. and Papuans are the country's promising athletes for the future.37 percent. and their arts batik textiles are popular at home and even abroad.72 percent. This feature was dropped in the following censuses until the 1990 Census due to mainly socio-political reasons. According to the 2000 Census. Madurese 3.Each ethnic group adopts a different kinship system as well. The availability of data on each ethnic group is believed to be able to help understand them. Minangkabau 3.45 percent. Ethnic Group 1930 2000 1. known as domestic tough migrants. Banjar 1.43 percent. Bugis 2. The Bataks are known for their talented singers. Meanwhile.36 2.59 2. Sundanese and Javanese are known for their industrious and tenacious labors. It was the 1930 census that for the first time recorded the composition and number of ethnic groups in the country. for instance. Makassar 0. with ethnic members more than one million people. Acehnese 0. Javanese 47. So are the Balinese with their particular dancing and carvings. The Minangkabauans. Betawi 2.84 percent.74 percent.30 percent. The Bugisnese-Makassars have been known for their seafaring people with their wooden "phinisi" ships sailing high seas since hundreds years ago. But the 2000 Census did it again. Madurese 7.49 percent. Bugisnese 2.02 41. The Bataks. Javanese people account for the greater part. stick to a matriarchal system. the Bataks 3. Torajan 0. and others 14.02 percent. the people of Maluku have been known for their skillful singers and traditional music instruments. Batak 2. Gorontalo 0.72 5.28 3. Malay 3. adopt a patriarchal system. and settle any ethnic conflict. Minangkabau 2.
74 During the period of 1930-2000. they also live in Lampung (4. Religions Since many centuries ago the territory. and the capital of the Republic.60 percent of the country's total population adhered to Hinduism. 15 . Central Java.62 percent Malays. and the remaining of other ethnic groups.58 percent. The least Javanese people can be found living in West Nusa Tenggara (1. in 2003 was home to estimated 8.62 percent). While trading. The greater concentration of Hindus is in Bali Island (some 75. 3.81 percent). Hinduism and Buddhism.53 percent Chinese descents. Indonesians may boast Borobudur Temple. Bugis 1.18 percent Minangkabauans. were propagated by Indian merchants and migrants. 3. homeland to the Betawis.35 percent of the Island's total population). The majority of the Javanese people reside in Central Java.66 percent of the area's total population).03 percent) and North Sulawesi (0.34 percent. Balinese 1. for example. recording the highest population growth rate was the Malay with an average of 2. Jakarta.61 percent the Bataks. has been an important passage of trading ships and place to call in for traders from many nations. and the Javanese with an annual average of 1. particularly in Java. 5.88 1. located in Magelang.7.94 percent.84 percent per annum. North Sumatra (32.51 9. Betawi 1. Malay 1.66 2. Banjar 1. they also propagated religious teachings they respectively adhered to local people.000 people. The Sundanese live in West Java _their homeland_. 1.16 percent). In 2000. The least percentage of this ethnic group can be found living in East Nusa Tenggara (0. some 1.713.61 3. which is now called Indonesia. in Jakarta (35. of whom 35. and in Jakarta (15. the Batak 2. and Yogyakarta _their native land. East Java.31 percent. Remnants of the two religion's glory are the monumental buildings of Borobudur Temple (Buddhist) and Prambanan Temple (Hindu) in addition to tens of smaller temples.27 percent).08 percent of the province's total population). in Banten (22.27 percent Sundanese. followed by Betawi with an average of 2. as one of the world's marvels.45 10.51 8.640.47 percent of its total population) and in East Nusa Tenggara (0.69 percent. However. 15.52 1.731 heads or 61.16 percent are of Betawis.89 percent of the area's total population). Banjar 1.
After failing to defend Malacca. It is worth noting that the Istiqlal Mosque in Jakarta is the country's largest mosque.18 percent).27 percent). the Portuguese went away to land in Larantuka.92 percent of Indonesia's total population adhere to Catholicism and Protestantism.22 percent. by Gujarati and Persian merchants embracing the religion. They initiated preaching the religion at Tapanuli (North Sumatra).51 percent). and later on by American missionaries. According to the 1971 Census. before to Kalimantan. 16 . before spreading to Banten and Demak in Java Island. Islam followers accounted for 88. the most northern tip of Sumatra Island. Missionaries are still active in Papua.Buddhism is followed by some 1. and the Demak Mosque one of the country's oldest mosques. and even the largest in Southeast Asia. According to the 2000 Census.51 percent of the country's total population were followers of Islam. Minahasa (North Sulawesi) and Manokwari (Papua).23 percent of the province's total population) and in Riau Province (4. and in North Sulawesi Province (69.67 percent of the province's total population). Java and others. While Protestantism was introduced and propagated by Dutch and German missionaries. Flores. some 8. and other areas later on. From this place Catholicism was propagated and spread for the first time to throughout the country. some 87. Papua (75. Catholicism was first introduced to this area by pastors participating in the Portuguese voyages in search of Indonesian spices. In Java in particular. The number of followers has been increasing from time to time. and according to the 2000 Census. The number of the two religions' followers grew at an annual average of 2. Islam was thus developed at coastal areas first before penetrating to hinterlands. the role of the nine Islamic holy men (Wali Songo) in propagating Islam was prominent. Greater concentration of the Christian denominations are found in East Nusa Tenggara Province (87. Jakarta's large and beautiful cathedral is the pride of Indonesian Catholics. This makes Indonesia a country with the largest Islam followers in the world. with their greater concentration found in the province of Bangka-Belitung (7. or an average increase of 1. Ambon (Maluku).51 percent of the country's total population.86 percent annually. Islam was brought to Aceh.48 percent during the past there decades.
named Pithecanthropus erectus by Eugene Dubois. and Miocene period (12 million BC). due to the rise of the sea that the Indonesian archipelago emerged. Relations with India were not only confined to religious and cultural exchanges which later on developed into diplomatic realizations between the Buddhist Kingdom of Sriwijaya and Nalanda in South India. while the Hindu Kingdom on Borneo (Kalimantan) Island was called Kutai. The first Indian immigrants mostly from Gujarat in Southeast India came during the period of the first Christian era. Beside this Pallawa script. Indonesia did not exist yet. Sumatra was then named "Swarna Dwipa" or the Island of Gold. the Devanagari script of the Sanskrit language was also in use as indicated in the ancient stone and copper inscriptions (pracasthies) unearthed in Indonesia. A later mixture was brought about by Indo-Aryan migrants from the South Asian sub-continent of India (1000 BC). Both the language and scripts were in a later period of Indonesianized and called the "Kawi" language which has in its lexicon a number of additional Javanese words and phrases. It is believed that Indonesia must have existed and was linked with the present Asian mainland. the Oligacene period (25 million BC). during the Pleitocene period (4 million BC). the island of Java was called "Java Dwipa" or the Rice Island. who found fossilized remains on the island of Java.HISTORY Ancient Time Indonesia in ancient time DURING the Paleocene period (70 million years BC). It was during the smelting of ice sheets north of Europe and America that resulted in the emergence of islands. It was in this period that the "Java Man" must have inhabited that part of the world now called Indonesia. 17 . Early trade relations were established between South India and Indonesia. but grew into well-developed trade relations. Nor did it exist during the Eurocene period (30 million BC). This period was also closely related to the first appearance of the Homonids. It was also in this period (3000-500 BC) that Indonesia was inhabited by Sub-Mongoloid migrants from Asia who later inter-married with the indigenous population of the archipelago. must have been the first inhabitant of Indonesia. The Caka period in Indonesia was marked by the introduction of the Sanskrit language and the Pallawa script by the Indian Prince Aji Caka (78 AD). "The Java Man.
a Chinese Buddhist Saint Fa Hsien. As Buddhism was also spread to China so many Chinese pilgrims went to India. The Hindu religion was peacefully spread throughout the archipelago gradually to all layers of society in Java and to the upper classes only in the outer islands. Devawarman. In 144 AD. introducing the Hinayana and the Mahayana sects.A continuous influx of Indian settlers went on during the 1st to the 7th century AD. the organizing of their armed forces. Other Chinese chronicles dated 132 AD mentioned the existence of diplomatic relations between Java Dwipa and China. the use of the metric system and the production of coins. on the island of Borneo. in Kutai region there were the successive rules of the Hindu Rajas. was introduced and spread all over the country. The northern part of Java was then ruled by a Hindi Raja. "Labadiou's Ptolemy's Chronicles described Java as a country having a good state system. music and dances. 18 . and Mulawarman. Indian customs and culture were introduced with regard to the monarchic system of governing. architecture. Opposite his kingdom. navigation and astronomy and mentioned that the people already knew the "batik" processing of cloths. named either the island of Java. driven by a storm. their ancestral geneological pedigree system. while there already existed metal works. Its culture and civilization. advanced in agriculture. which are still popular nowadays in the Republic of Indonesia." The Hindu religious interpretation of the "Vedas" Holy Scriptures in the Mahabharata and Ramayana epics presented through the Wayang puppets shadow-play as its visual media. which lasted from ancient time to the 15th century AD. The latter became more advanced in the 8th century AD. The Greek explorer and geographer. Aswawarman. emanating from the Hindu and Buddhist religion were later syncretized with Indonesia's cultural elements and therefore also termed as the "Hindu-Indonesian" period. literature. and it was for this reason that this period in history was called the Period of Hindu Kingdoms. The first Indian Buddhist arrived in Indonesia between 100 and 200 AD. sailing through the Strait of Malacca. or Sumatra. Some of them on their way to India did make visits to Indonesia and even stayed for a while to get trained in and to develop their knowledge on the Buddhist religion. methods and ritual of worship and even the "Varna" (cast) division of labor system was introduced in a less strict division of the "Varnas. The Period of Hindu Kingdoms Many well-organized kingdoms with high civilization were ruled by indigenous Rajas who embraced the Hindu religion or Buddhist religion at a later stage. Kudungga. landed in Java Dwipa (present Java Island) and stayed there for five months. Ptolemy from Alexandria who visited Indonesia.
presumably in the neighborhood of present Palembang in South Sumatra. called Cailendra and was ruled by the Cailendra dynasty or Rajas. A manual for singing. Kanoman. At the end of the 13th Century. like Sakyaktri. In 772 AD. apart from developing their knowledge on the Buddhist philosophies. so Sriwijaya influence sphere also grew in many other parts of the archipelago. The Crivijaya diplomatic mission had attached to its building a school when local Indians could learn the art of molding bronze statues. "KantoLi". The Hindu Civaite temple complex of Prambanan was built in 856 AD and accomplished in 900 AD by Raja Daksa. the Crivijaya Empire began to decline as a result of severance by its vassal states as well as due to frequent attacks by the South Indian Kingdom of Chola and by the Kingdom of Majapahit. China. West of the Central Java Kingdom of Cailendra. in the year 675 AD. Dharmapala and Vajrabudhi. and Pajajaran. These temples are at present still found in the vicinity of Yogyakarta. As Buddhism at the period flourished. Kawali and ParahyanganSunda. Kuningan. "Pajajaran" was founded by Raja Purana. southwest of the capital of Medang Kamolan.Around 502 AD. which already knew the use of ink and paper since 2nd century AD. which was fostering art and culture. Kalasan and Pawon. It was in this period (750-850 AD) that the famous Buddhist monument "Borobudur" was built. Central Java). in present West Java Province. on his way to India. The capital of this Hindu Kingdom of Mataram was Medang Kamolan. the capital of the Special Territory of Yogyakarta. One of the Pallawa language stone inscriptions (Pracasthi) of 732 AD mentioned the name of the Hindu Raja Sanjaya who was later identified as the Raja of the Hindu Kingdom of Mataram (Replacing Cailendra in Central Java)." one of the might Buddhist kingdoms in Indonesia. recorded in their annals the existence of the Buddhist kingdom in Sumatra. visited Sriwijaya in 671 AD to study the Sanskrit language and returned 18 years later in 689 AD. Sriwijaya was then the center of Buddhist learning and had many well-known scholars in the Buddhist philosophy. which was ruled by a Buddhist Raja Gautama Subhadra and later by his son Pryawarman or Vinyawarman who established diplomatic relations with China. "Kanto-Li" was presumably "Crivijaya. Earlier. Due to phonetically language barriers. Hindu Civaite temples were erected on the mountain plain of Dieng. named the Chandra-Cha-ana was first composed in 778 AD. Another known Buddhist kingdom emerged on the island of Java (i. The Chinese Buddhist pilgrim I-Tsing. The Kingdom of Cailendra was also known as being the center of commercial and naval power. with Pakuan as its capital and which succeeded an earlier established kingdom of "Galuh." Later there were the kingdoms of Taruma Negara. were the Hindu Kingdoms of Galuh. in the neighborhood of present Semarang city. This kingdom had established diplomatic relations with the South Indian kingdom in Nalanda.e. It was ultimately entirely subdued 19 . other Buddhist temples were built by Raja Panchapana such as the temple complexes of Mendut.
mighty Hindu kingdoms of Central Java disappeared from its historic records and new prosperous Hindu kingdom emerged in East Java. Majapahit first conquered the Jambi Kingdom in Sumatra. Meanwhile. the "Bhagavat Gita. The "Panji" novel produced Prambanan temple in Yogyakarta.by Majapahit who in its subjugation efforts was supported by Raja Adityawarman of the Kingdom of Melayu. which later extended its expansion along the rivers and finally annexed the Kingdom of Pagar Ruyung in West Sumatra. Raja Balitung who ruled within 820-832 AD had once succeeded in uniting Central and East Java kingdoms. for unknown reasons. for unknown reasons. a mighty Hindu Kingdom of Singasari was emerging in East Java. he also ordered the translation of the Hindu Holy Book. which completed the entire subjugation of Sumatra under the rule of Majapahit. Airlangga was also known as the promoter of the production of literary works. which completed the entire subjugation of Sumatra under the rule of Majapahit. which later extended its expansion along the rivers and finally annexed the Kingdom of Pagar Ruyung in West Sumatra. The disappearance of records was presumably caused by a catastrophic natural disaster. At the end of the 10th Century (911-1007 AD). Its King. Majapahit first conquered the Jambi Kingdom in Sumatra. or by an endemic. Before his death in 1409 AD. Meanwhile. Besides. Raja Dharmawangsa codified laws and translated the Indian Sanskrit Hindu Epic of the Mahabharata into the Javanese language and also the philosophical essence of it as contained in the "Bhisma Parva" scripture. It was ultimately entirely subdued by Majapahit who in its subjugation efforts was supported by Raja Adityawarman of the Kingdom of Melayu." Raja Airlangga who meanwhile also ruled over the island of Bali was known for his water-works along the Brantas River now still in use and who was a wise and firm ruler. built in 856 AD by Hindu King Sanjaya frequent attacks by the South Indian Kingdom of Chola and by the Kingdom of Majapahit. Raja Airlangga divided the kingdom into the Kingdom of Jenggala and Daha or Kediri to be ruled by his two sons. Raja Balitung who ruled within 820-832 AD had once succeeded in uniting Central and East 20 . mighty Hindu kingdoms of Central Java disappeared from its historic records and new prosperous Hindu kingdom emerged in East Java.
During this golden period many other literary works were produced such as the Javanese version of the Hindu epic "Mahabharata" composed by the Hindu Mpu (Saint) Sedah and his brother Mpu Panuluh and published in 1157. the first European. which afterwards was succeeded by a yellow race (the Japanese) domination and ended his book by forecasting that Indonesia ultimately will regain her independence under the rule of justice. Its King. 21 . Marco Polo visited Java and North Sumatra." During that golden period many literary works were produced such as "Nagara Kertagama" by the famous author. His troops however were defeated and driven back to their ships. and Malaysia. or by an endemic. The Mogul Empire founded in East Java became the most powerful. and the present Philippines (1331-1364). The disappearance of records was presumably caused by a catastrophic natural disaster. Raja Dharmawangsa codified laws and translated the Indian Sanskrit Hindu Epic of the Mahabharata into the Javanese language and also the philosophical essence of it as contained in the "Bhisma Parva" scripture. Cambodia. succedeed in gradually uniting the whole Indonesian archipelago under the name "Dwipantara. Raja Hayam Wuruk who appointed his successful premier." first ruled by the Hindu Prince Wijaya or later known as Raja Kartarajasa. Before his death in 1409 AD. Airlangga was also known as the promoter of the production of literary works. The "Panji" novel produced during this period are today still known and taught at certain university literary coleges in Thailand. which was earlier attacked by the South Indian Kingdom of Chola. the "Bhagavat Gita. At the end of the 10th Century (911-1007 AD). Besides. Cambodia. These kingdoms of East Java were later succeeded by a might Hindu Kingdom of "Majapahit. Raja Jayabaya of the Hindu Kingdom of Kediri (1135-1157) wrote a book in which he foretold the downfall of Indonesia and made subservient to the white race domination (the Dutch)." Raja Airlangga who meanwhile also ruled over the island of Bali was known for his water-works along the Brantas River now still in use and who was a wise and firm ruler. Kubilai Khan in 1293 attempted to invade Majapahit.Java kingdoms. Annam. Gajah Mada. In 1292. This gradually powerful growing empire also subdued the kingdom of Sriwijaya in South Sumatra. Tonkin. a mighty Hindu Kingdom of Singasari was emerging in East Java. Raja Airlangga divided the kingdom into the Kingdom of Jenggala and Daha or Kediri to be ruled by his two sons. The Moghul emperor. Prapancha (1335-1380) in which some parts described the diplomatic and economic ties with the then existing South-East Asian countries like Burma. he also ordered the translation of the Hindu Holy Book. Thailand. which had dependencies in territories outside the present borders of the Indonesian archipelago as far as Champa in North Vietnam. Hindu kingdom ever known in Indonesia under the reign of Raja Hayam Wuruk.
" the "Gajah Mada" and the "Adigama" Codes of Law. Also books on various codes of law were produced such as the "Kutaramanawa." the "Manava Dharma Sastra. East Java 22 . Arjuna Wiwaha. Ramayana. East Java Cambodia and even with India and China. The Period of Islamic Kingdoms Gujarati and Persian merchants who embraced the Islam religion started to visit Indonesia in the 13th century and established trade links with Persia and India. they also propagated the Islam religion among the Indonesian Hindus. Other literary works written in the "Kawi" (old Javanese) like the Pararaton. Grave of Maulana Malik Ibrahim. particularly in the coastal area of Java. Along with the trade.Gate of the mighty Majapahit Kingdom in Trowulan. Sarasa Muschaya and many other such literary works were later translated into many modern languages of Europe for study purposes. At a later stage they succeeded in influencing and even converting Hindu ruling Rajas to Islam. Gresik. such as in Demak.
and further east to the northern part of the Maluku where the Sultanates of Ternate and Tidore were established. North of Java. Both started their first attempt to propagate Christianity in Indonesia. in later periods the eastern part of the island of Lombok was converted to Islam which infiltrated the island from Makassar in South Sulawesi. The capital of the Hindu Kingdom of Pajajaran in West Java was Sunda Kelapa (1300 AD). As VOC's merchant fleets were often not free from pirate attacks. Islam spread further east of the island of Java and established the Bone and Goa Sultanates in Sulawesi. Islam spread to Banjarmasin in Borneo and further west on the island of Sumatra and converted Palembang. which was situated at the present Capital of the Republic of Indonesia. in search of Indonesian spices. To make their trade more efficient and organized. However.The Hindu Raja of the Kingdom of Demak was the first in Java who converted to Islam. their sailing to the East were later on accompanied by Dutch warships in convoy. Jakarta." Besides conquering Sunda Kelapa. entered Indonesia after conquering the Islam Kingdom of Malacca on the Malay Peninsula. the exploitation of Indonesian commodities for Europe developed into Dutch suzerainty over Indonesian territories where the people on such territories were levied by force to make agricultural tributes to 23 . which they sold in European markets with big profits. and ever since renamed it Jaya-Karta meaning "the City of Victory. After Dutch VOC was nationalized by the then Dutch Government (1799). Pasai and Perlak to Islam. which was followed by the Spaniards. After the subjugation of Majapahit by Islam rulers. It was this Islam Sultan who later further spread Islam west of Demak in Cirebon up till Banten and then eastwards along the northern coast of Java to the Kingdom of Gresik and ultimately caused the downfall of the mighty Hindu Kingdom of Majapahit (1513-1520). the Dutch established the Dutch East India Company (VOC) with the aim to exploit the Spice Islands in the Indonesian archipelago for European markets (1602). The Beginning of Dutch Colonialism In the meantime. European Influences The Portuguese in Indonesia The Portuguese. This capital of the Sunda Kelapa Kingdom was conquered by an Islam General Falatehan of the Sultanate of Demak in 1527. the Dutch started their ventures to seek spices in Indonesia. Their position was strongly felt then in Maluku. religious scholars and Hindu Khsatryas ret through the East Java Peninsula of Blambangan. further eastwards to the island of Bali and Lombok. General Falatehan succeeded also in defeating the Portuguese who attempted to conquer mentioned city. Minangkabau (West Sumatra). Meanwhile. therefore. Majapahit aristocratic descendants.
who in 1629 sent his troops to Batavia to attack the Dutch bulwark but were repulsed by the troops of the then Dutch Governor General. Sultan Agung was also the greatest enemy of the Dutch. Indonesia's inter insular trade. Dutch policy of exploitation through "divide and rule" tactics were introduced. Aceh. the Dutch carried out their notorious "Hongi Expedition" by burning clove trees of Indonesians which they regard as being "superfluous" causing the drop of its prices in European markets.R.H. who waged a war against the Dutch was defeated and killed by the Dutch in 1680. After Dutch seizure of Ambon in Maluku in 1605 and Banda Island in 1623. Merciless. as well as foreign trade was gradually crippled by the Dutch ruthless policies and which had forced Indonesia to merely become an agricultural country growing crops suitable to be sold to European markets. Meanwhile. Jan Pieters Zoon Coen. He introduced the Islamic Javanese calendar in 1633. The Dutch meanwhile pursued a so-called open door policy for Chinese to become their middlemen in their trade with Indonesia Wars against the Dutch Sultan Hasanuddin of Goa waged a war against the Dutch in 1666. the Dutch gained all the spice islands trade monopoly. particularly conducted against those who opposed the destruction. such as between Makassar. In 1605. Kohler who was killed during the Aceh War 24 . the former Hindu Kingdom of Mataram in Central Java became the Islam Kingdom of Mataram and was ruled by the Islam Sultan Agung Hanyokrokusumo. These outrageous expeditions aimed at destroying crops were seldom not accompanied with cruelties. but was defeated by the Dutch who made Goa a vassal state of the VOC under the Treaty of Bunggaya signed in 1667. Dutch colonialism began to have a foothold in Indonesia. To control spice monopolies in the Maluku. Sultan Agung did not only develop the political power of the state but was also a great patron of arts and culture. The capital of Sunda Kelapa was named "Batavia" by the Dutch. Grave of Dutch Major General J. Mataram and Banten. Prince Trunojoyo of the Kingdom of Madura.the Dutch.
the British and Dutch signed a convention in London on August 13. These rebellious Chinese were later joined by Indonesians. slaves were held and traded by foreigners." The British stayed in Bengkulu till 1825. Raffles introduced the "land-rent system" replacing the Dutch hated system of "contingent land use" and "compulsory deliveries of crops. 1799 all its territories in Indonesia were taken over by the Dutch Batavian Republic. British Temporary Rule In 1714. Tuanku Imam Bonjol led the "Padri" war against the Dutch in West Sumatra. Sisingamangaraja. Indonesia fell under the rule of the British East India Company (1811-1816). which was a fierce struggle for independence. 1814. Raffles introduced partial self-government and the slave trade was prohibited. Prince Diponegoro of Mataram led the Java war against the Dutch from 1825 till 1830. was divided by the VOC into the Principalities of Yogyakarta and Surakarta. In those days.In 1740. which was later renamed "Fort Marlborough. when Holland was occupied by France. Teuku Umar led the Aceh war in North Sumatra (1873-1903). During the Napoleonic wars in Europe. To mention some of those revolts: Thomas Matulessy alias Pattimura staged a revolt against the Dutch in Maluku (1816-1818)." The Buddhist monument of Borobudur and other Hindu temples were restored and research carried out. After the end of French occupation of Holland. King of the Batak led the war against the Dutch in 1907. Mismanagement and corruption forced the VOC into bankcruptcy and on December 31. Since the British stayed in Sumatra from 1814 till 1825. 25 . the Dutch suppressed a rebellion in Jakarta sparked by dissatisfied Chinese. The Kingdom of Mataram. the Dutch intensified their colonial rule in Indonesia but was responded by wide-spread Indonesian revolts to regain their independence but were suppressed by the Dutch one after the other. Ten thousand Chinese were massacred by the Dutch. Dutch Return to Indonesia Soon afterwards. the British came to Indonesia and built their "Fort York" fortress in Bengkulu on the west coast of Sumatra. which was published in 1889. Raffles wrote his famous books entitled "The History of Java" in which he described Java's high civilization and culture. in which it was agreed that Dutch colonial possessions existing since 1803 should be returned and consequently the Batavian Republic reclaimed the Indonesian archipelago from the British in 1815. which deteriorated in strength. William Marsden wrote a similar book on the history of Sumatra. Sir Thomas Stamford Raffles became Lieutenant-Governor-General of Java and dependencies subordinated to the Governor General in Bengal in India. after the downfall of Napoleon.
The founder of "Boedi Oetomo" was Dr. Second Youth Congress held on 27-28 October 1928. Haji Agus Salim and others. In December 1912. Communism was introduced in the Dutch East Indies by Dutch nationals. These three leaders of the party were later exiled by the Dutch colonial government of the Dutch East Indies in 1913. later named Setyabudhi. which was initially designed as a cultural association for Indonesian intellectuals. Sneevliet.In 1908 the Dutch attempted to occupy Bali but were fiercely repelled by Raja Udayana who led the Bali war against the Dutch. turned into politics. with Dr. Indonesian leaders started a more organized struggle against Dutch colonialism known as Indonesia's national movements for independence. in Jakarta National Movements When all these regional wars of independence were unsuccessful. In 1914. In 1911. an Indonesian Party "Partai Indonesia" was founded by Dr. Baars. Gunawan and Suradji. 26 . However. in 1912 this middle class entrepreneurial organization turned into a political party and called them "Sarekat Islam" led by HOS Tjokroaminoto. a Progressive Moslem Organization "Muhammadiyah" was established by Hajji Dahlan in Yogyakarta aimed at social and economy reforms. supported by Dr. This period was pioneered by the founding of the "Boedi Oetomo" (Noble Conduct) movement on the 20th of May 1908. Wahidin Sudirohusodo. Soetomo. the Society of Moslem Entrepreneurs "Sarekat Dagang Islam" was founded by Haji Samanhudi and others which was aimed at encouraging and sponsoring the interest of Indonesian business within the Dutch East Indies. which accelerated modern national movements throughout Indonesia. Douwes Dekker. and Brandsteder. Tjipto Mangunkusumo and Ki Hajar Dewantoro (Suwardi Suryaningrat) striving for complete independence for Indonesia from the Dutch. In 1911. Revolts were also launched in Goa in South Sulawesi and also in South Kalimantan. stimulated by Japan's victory over Russia in 1901.
In 1942. Achmad Jayadiningrat and Sujono were among the very few Indonesian members of the "Raad van Indie. and others. whereas part of the number of its members consisted of appointed colonial officials. were members of mentioned body. Restrictions were put on the freedoms of assembly. Sarekat Islam was split into a right and left wing faction. this demand was countered by the Dutch by setting up powerless People's Council named the "Volksraad" in 1918 which was purely of an advisory nature to Dutch colonial rulers. This student's association had put more leverage to the Indonesian Nationalist Independence Movements in Indonesia in general. the Indonesian Students Association "Perhimpunan Mahasiswa Indonesia" was founded by Dr. MH Thamrin. an organization aimed at promoting Indonesian national education calling themselves "Taman Siswa" was founded on the 3rd of July of mentioned year by Ki Hadjar Dewantoro. 27 . HOS Tjokroaminoto. Besides the "Volksraad" there was another body called the "Raad van Indie" whose members were appointed by the Ducth. Sukiman. Sutardjo Kartohadikoesoemo. Abdul Muis. Under pressure of social unrest in the Netherlands at the end of World War I in Europe. The Indonesian representation within the council was by indirect election through regional councils. Further Growth of Indonesian Organizations Despite those restrictions by the Dutch colonial government. Dr. The Powerless People's Council "Volksraad" In 1916. Darsono. When the Sarekat Islam demanded the Dutch Colonial Government of Dutch East Indies for minimum social legislation in the colony. speech and expression in writing. the Sarekat Islam Party held its first congress in Bandung and advocated in its resolution self-government for Indonesia in cooperation with the Dutch. Dr. GSSJ Ratulangi. Alimin. Dr.In May 1920. in 1922." Restrictions of Civil Liberties Worsening economic conditions and increasing labor strikes in the Dutch East Indies prompted the Dutch colonial government in 1923 to put severe restrictions on Indonesian civil liberties and made further amendment to the colonial constitutional law and penal codes. Tjipto Mangunkusumo. Mohammad Hatta. Wiwoho. Radjiman. Soekardjo. the latter of which formed the Indonesian Communist Party "Partai Komunis Indonesia" (PKI) under the leadership of Semaun. It later developed into a semilegislative assembly in which body some Indonesian prominent nationalist leaders. such as Dr. and others. the Dutch pledged to the Indonesians to grant self government to Indonesia known as the "November" pledge which was never realized. Muso and others.
Dr. a pledge was made by the Indonesian Youth to strive for "One Nation. It exerted a militant policy of non-cooperation with the Dutch colonial authorities on the basis of a permanent conflict of interest between Indonesian nationalism and Dutch colonialism. After Dutch suppression of these communist rebellions many Indonesian non-communist nationalist leaders were exiled to Tanah Merah. led by the Indonesian Communist Party "PKI" broke against Dutch colonial rule. Soekarno. In 1929. Communist revolts. replacing the former Law School in 1924. In July 1927. Tjipto Mangunkusumo was exiled to Bandaneira. Dr.In 1926 till 1927. A balanced budget policy for the colony was strictly carried out detrimental to the economic and educational life of the Indonesians." and "One Language. The Medical University College. which the Dutch called "Boven Digul" in Papua. Sartono and others formed the Indonesian Nationalist Party (PNI). Gatot Mangkupradja and Maskun Supriadinata were tried in court on charges of "plotting" against the colonial 28 . which later became Indonesia's National Anthem. On the 28th of October 1928. All of these University Colleges were later united into the University of Indonesia in 1946 during Indonesia's independence. Ir. Other leaders of the PNI. replacing the former Medical School was opened in August." "One Motherland." etc. Ir. Mohammad Hatta and Achmad Soebardjo and some other members of the federation attended the First International Congress of League Against Imperialism and Colonial Oppression in Brussels together with Jawaharlal Nehru and many other prominent nationalist leaders from Asia and Africa. Soekarno in December of mentioned year which caused great discontent among the Indonesians. during the Second Indonesian Young Congress held in Jakarta. Dutch colonial authorities in the Dutch East Indies concerned about the developing national conscience and the increasing urge for independence by the Indonesian arrested PNI leader. Meanwhile in 1930. was for the first time introduced at the Second Indonesian Youth Congress by its composer." "Young Sumatra. a federation of all Indonesian parties was called into being by Dr." This youth pledge is today still commemorated every year. the Technical University College was set up in Bandung in 1920. In November 1926 it rebelled in West Java and in January 1927 in West Sumatra. called the "Perhimpunan Politik Kebangsaan Indonesia" (PPKI). Wage Rudolf Supratman. Meanwhile. which had a great impact in the Indies being a raw material producing colony of the Dutch. the world suffered from an economic and monetary crisis. In the same year an all Indonesia's Nationalist Movement was set up among the Indonesian youth and women replacing earlier established youth organizations based on regionalism. In February 1927. The Law University College was opened in Jakarta. 1927. Mohammad Hatta. which adopted the Bahasa Indonesia as the official language. such as the "Young Java." and Young Ambon. "The Indonesia Raya" song.
regime. Ir. Soekarno was released in September 1931 but again exiled in August 1933 and remained in Dutch custody till the Japanese invasion in 1942. In January 1931, Dr. Soetomo aimed at elevating the status of the Indonesian people on the basis of nationalism founded the Indonesian Unity Party, the "Persatuan Bangsa Indonesia." In April of the same year, the PNI was abandoned and followed by the founding of another party, the Indonesia Party or "Partai Indonesia" by Sartono, LLM, based on nationalism and Indonesia's self-supporting movement. In the same year, Sutan Syahrir founded the Indonesian National Education Group or "Pendidikan Nasional Indonesia," abbreviated as the new PNI, which was joined by Dr. Mohammad Hatta. In 1933, a mutiny broke out on the Dutch warship "Zeven Provincien," the Indonesian nationalists were held responsible for this. In 1934, Sutan Syahrir, Dr. Mohammad Hatta and other nationalist leaders were arrested by Dutch colonial authorities and sent into exile till 1942. In 1935, under the leadership of Dr. Soetomo a merger of the "Persatuan Bangsa Indonesia" organization with the "Boedi Oetomo" was brought about, aimed at striving for the independence of Greater Indonesia, the "Parindra."
Indonesian Petition In July 1936, Sutardjo submitted to the "Volksraad" the Indonesian petition calling for greater autonomy for Indonesia. This petition was flatly rejected by the Dutch dominated "Volksraad." In 1937, Dr. AK Gani founded the Indonesian People's Movement, "Gerakan Rakyat Indonesia," which was based on the principles of Indonesian nationalism, social independence and Indonesia's self-supporting efforts. In 1939, the All Indonesia Political Federation "GAPI" called for the establishment of Indonesia's full-fledged parliament, which was flatly rejected by the Dutch government in Holland in 1940. They also demanded an Indonesian National Military Service in order to defend Indonesia in times of war. This demand was also rejected in spite of the grave international situation, which proceeded the outbreak of the Second World War, the situation of which called for fundamental and progressive reforms in colonies and dependencies in Asia in general. Japanese Occupation After the Japanese attacks of Pearl Harbor in Hawaii, Japanese Armed Forces went southwards and occupied several Southeast Asian countries. After the British defeated Singapore, Japanese forces invaded the Dutch East Indies whereupon the Dutch colonial army surrendered to the Japanese in March 1942. Ir. Soekarno was released from his
detention. The Japanese introduced Japan's "Great East Asia Co-Prosperity Idea," which became unpopular in Indonesia as the Indonesians realized that Japanese occupation was just an alternate colonialism substituting Dutch colonialism. For the sake of furthering the course of Indonesia's independence however Ir. Soekarno and Dr. Mohammad Hatta were giving limited assistance to Japanese occupation authorities on the surface while other Indonesian nationalist leaders went underground to stage insurrection all over Java, such as in Blitar (East Java), Tasikmalaya and Indramayu (West Java), Sumatra and Kalimantan. Due to the hardships suffered by the Japanese in waging the Pacific war caused by interruptions of their supply lines and by Indonesian insurrections, the Japanese occupation forces in Indonesia ultimately gave in to recognize the Indonesian Red and White colored flag as the Indonesian national flag which was followed later by the recognition of the "Indonesia Raya" as Indonesia's National Anthem, and the "Bahasa Indonesia" as Indonesia's National Language. After persistent demands by the Indonesians for complete Indonesianization of the Civil Administration in Indonesia, the demands were ultimately met the Japanese. This became Indonesia's basis to further build up the foundation for the proclamation of independence of the Republic of Indonesia. Proclamation of independence …..sian insurrections, the Japanese occupation forces in Indonesia ultimately gave in to recognize the Indonesian Red and White colored flag as the Indonesian national flag which was followed later by the recognition of the "Indonesia Raya" as Indonesia's National Anthem, and the "Bahasa Indonesia" as Indonesia's National Language.
Text of Proclamation
After persistent demands by the Indonesians for complete Indonesianization of the Civil Administration in Indonesia, the demands were ultimately met the Japanese. This became Indonesia's basis to further build up the foundation for the proclamation of independence of the Republic of Indonesia. Proclamation of independence The final defeat of Japan after the dropping of the atomic bomb in Hiroshima and Nagasaki on the 6th and 9th of August 1945 prompted the Japanese to surrender unconditionally to the Allies. This constituted an ample opportunity for Ir. Soekarno and Dr. Mohammad Hatta to proclaim Indonesia's independence on the 17th of August 1945. The Republic of Indonesia came into being based on Pancasila under a constitution, with strong Presidential powers, a Parliament, Supreme Advisory Council, State Audit Board and a People's Consultative Assembly as the embodiment of people's sovereignty in free Indonesia, all of which were adopted on the 18th of August 1945. This 1945 Constitution is still in force up till now. The Red and White flag was officially accepted as the National Flag of Indonesian and the Bahasa Indonesia as the National Language. Ir. Soekarno was elected as the first Indonesian President and Dr. Mohammad Hatta as VicePresident. On the 5th of September 1945, a Presidential Cabinet was formed with President Soekarno as Premier.
Wars of Independence against the Dutch Soon after the independence proclamation, British troops as a component of the Allied Forces landed in Indonesia with the task of disarming Japanese Forces in Indonesia. Dutch troops have meanwhile used this opportunity to also land in Indonesia however with a different purpose, i.e. to restore the Dutch East Indies. The Dutch were in the beginning aided by the British Forces under General Christson which was confirmed later by Lord Louis Mountbatten, British Commander of the Allied Forces in Southeast Asia and based in Burma, whereas the British Allied Forces' task was to be the repatriation of Allied Prisoners of War and Internees and the disarming and internment of Japanese troops in Indonesia. Fierce fighting broke out in Surabaya on the 10th of November 1945 between the British troops and Indonesian armed volunteers, which culminated in "Allied Forces" attacks by battle ships, airplanes tanks and armored cars in which Brigadier Mallaby died. The newly recruited republican army was not yeat ready to face such an all-out attack by such superior and well-armed Allied Forces fresh from their victorious battle against Hitler's Nazi forces in Europe. The Indonesian Armed Forces therefore withdrew from urban battles and organized themselves into guerilla forces, which put heavy pressures on the invading troops. The newly Republican Armed Forces fought along with the people armed units. Meanwhile, Dutch troops, under the pretext of representing Allied Forces, grew in number and attacked Indonesian Republican strongholds twice in their military actions between 1945-1949.
During the 1948 Dutch military action against the Republic, the Indonesian Communist Party unilaterally proclaimed the "Indonesian People's Republic" in Madiun (East Java), armed themselves and began to attack republican forces, from the rear. Squeezed by Dutch forces and communist forces, the Indonesian people and the republican army fought their enemies back in two fronts. Since its inception, Indonesia experienced threats from without and from within. Diplomacy vis-à-vis Fighting On the 11th of November 1945, Vice-President Hatta issued a Manifesto laying down the policy of peace with the whole world and the principle of good neighbor policy for the new Republic. On the 14th of November 1945, the newly appointed Prime Minister, Sutan Sjahrir introduced a parliamentary system in the republic with political party representation. On the 22nd of December 1945, Sutan Sjahrir announced Indonesia's acceptance of the British proposals to disarm and confine to internment camps, 25,000 Japanese troops within Indonesia's territory, which successfully carried out by the Indonesian National Army "TNI." On the 28th of April 1946, the transportation of the Japanese troops to be emigrated, took place from all places in Indonesia. When fighting with Dutch troops continued, even in urban areas, including Jakarta, the seat of the Government was moved from Jakarta to Yogyakarta on 4th January 1946.
The Indonesian Question in the United Nations Since the war in Indonesia dragged on which was considered as endangering the maintenance of international peace and security, in line with the principles of the United Nations as stipulated in Article 24 of its Charter, the question of Indonesia was officially brought before the Security Council by the Ukranian Soviet Socialist Republic. Soon afterwards the first official meeting of representatives of the Republic of Indonesia and the Netherlands took place on the 10th of February 1946, under the chairmanship of Sir Archibald Clark Kerr. Besides Indonesian forces putting stiff resistance against Dutch military aggressions and therefore dragging the war, the Indonesian government also conducted diplomatic offensive against the Dutch. With the good offices of Lord Killearn of Great Britain, Indonesia and Dutch representatives met and negotiated together at Linggarjati in West Java in which negotiations the Dutch were forced to recognize the "de facto" sovereignty of the Republic of Indonesia over the territories in Java, Sumatra and Madura. The Linggarjati
This first military aggression was ended by the signing of the "Renville Agreement" on the 17th of January 1948. the Dutch. an agreement was signed between Indonesia's Emissary. in which Dutch troops intensified from their urban military bases. Yogyakarta. On the 20th of January 1949. off the east coast of Sumatra. On the 7th of May 1949. their military aggression against Indonesia guerilla strongholds. 19 nations gathered in New Delhi at the Asian meeting which adopted a resolution submitted to the United Nations demanding the Dutch to surrender complete sovereignty to the Republic of Indonesia by 1st January 1950. Mohammad Hatta and other Republican leaders whom they interned on the island of Bangka. the UN Security Council adopted a resolution on a ceasefire. initiated by Jawaharlal Nehru of India. but was finally defeated and killed. which was proclaimed on the 17th of August 1945. This agreement was in fact in violation of Indonesia's independence. the restoration of the Indonesian Republican Government to Yogyakarta and the holding of further negotiations.Agreement was initiated on the 15th of November 1946 and officially signed on the 25th of March 1947. West Sumatra. On the 19th of December 1948. which resulted in the capture of President Soekarno. guerilla fighting continued putting heavy pressure on Dutch troops wherever they exercised their military operations. leader of the Indonesia's Communist Party (PKI) led the communist coup and attacked the Indonesian Army from the back. under the auspices of a UN Commission at a Round Table Conference between Indonesia and the Dutch. Mohammad Roem and Dutch Emissary Van Royen calling for the end of hostilities. Vice-President Dr. ignoring the Renville Agreement launched their second military aggression against the Republic and succeeded to penetrate into the then Republican capital. It also demanded the Dutch to surrender all Indonesian prisoners and territories seized during their military actions to the Indonesian Republic. under the auspices of the United Nation's Security Council. The first Dutch military aggression was launched in July 1947. The Indonesian Government still functioned under caretaker Syafruddin Prawiranegara who headed the Republican Emergency Government with headquarters in Bukittinggi. Therefore. On the 28th of January 1949. 33 . It was in September 1948 that Muso. initiated by representatives of India and Australia. the release of republican leaders and their return to Yogyakarta.
On the 27th of December 1949. Indonesia became a member of the United Nations. the President became Chief Executive and Mandatary of the People's Consultative Assembly. The conference was concluded on the 2nd of November 1949 in which an agreement was reached that Holland was to recognize the sovereignty of the Republic of Indonesia. which dragged on for more than 13 years. retaining a liberal democratic system of a cabinet answerable to the House of the People's Representatives. where no political stability could be secured. Ceylon On the 23rd of August 1949. And since September 28. the original proclaimed Unitary State of the Republic of Indonesia was restored however.World Recognition of Indonesia's Sovereignty Indonesian Representative Office in Colombo. which became the source of frequent changes of cabinet or governments. the Round Table Conference was held in The Hague under the auspices of the United Nations. 34 . the former territory of the Dutch East Indies ceased to exist and became the sovereign Federal Republic of Indonesia under a federal constitution based on a parliamentary system providing Cabinet responsibility of Parliament. 1950. This situation naturally could not be a firm basis for national development in a developing country. while the sovereignty over Papua (former West New Guinea) was suspended till further negotiations between Indonesia and Holland. With the reinstatement of the Unitary State. This issue had since become the source of perpetual conflict between the new Republic and Holland. The Unitary State of the Republic of Indonesia On the 15th of August 1950. which had just become an independent state. He is to be assisted by ministers of his choice and at his discretion and who can not be discharged by the House.
was debated and ultimately adopted. the 1945 Constitution. It was only after the 14th of August 1945. the structure of the state and the constitution to be. In South Sulawesi ex colonial army-man.00 hours of that date in which the Dutch East Indies' Governor General. After hectic debates which went on and which were seldom not interrupted by extreme conflicting views." Since then many other armed rebellion emerged such as the "Queen of Justice" (APRA) rebellion led by an ex-Dutch Army Captain. the Committee for the Preparation of Indonesia's independence dissolved itself. i. In Kalimantan Ibnu Hadjar led another 35 . The first year of the sovereign Republic of Indonesia under the Presidency of President Soekarno was marked by a war of defense against the Dutch who attempted to reinstate the former colony of the Dutch East Indies. consisting of 26 members comprising Indonesian nationalist leaders chaired by Ir. On the same day. Soekarno. other armed revolts were staged such as in Maluku where demobilized ex-colonial army-men faithful to the Dutch Crown proclaimed the Republic of South Maluku. due to Indonesia's armed resistance and pressed by world opinion as manifested in the UN resolution finally recognized Indonesia's independence. When the Dutch. Tjarda van Starkenborgh Stachouwer and Dutch East Indies Armed Forces Commander. Earlier. Soekarno emerged as the over-riding leading figure who won the acceptance of the "Pancasila" principles to be the ideological basis for a sovereign Indonesia. followed by the election of Soekarno and Hatta as Indonesia's first President and Vice-President. Andi Aziz also rebelled. Outside Java. It was also at this forum that Indonesia's first constitution. The official surrender took place at 16. General Imamura. Mr. when Japan surrendered to the Allies after the atom bomb dropped at Hiroshima that a power vacuum existed in the Indonesian archipelago. occupied by Japanese occupation forces. for a sovereign Indonesia. Ter Poorten signed the documents of surrender to the Japanese Commander. This forum provided ample opportunity for these Indonesian nationalist leaders to debate. another armed rebellion flared up pressing for Islamic state under the leadership of Kartosuwirjo who coined his demand as "Darul Islam.The First Government of the Republic of Indonesia The Dutch East Indies was since its unconditional surrender to the Japanese Armed Forces on the 7th of March 1942. Soekarno and Hatta had pressed the Japanese for yielding to Indonesia's demand to set up a committee for the preparation of Indonesia's independence. The Indonesian Communist Party (PKI) disagreed with the principles of Pancasila and in 1948 staged an armed and bloody rebellion against the newly proclaimed Republic of Indonesia and unilaterally proclaimed a Communist "People's Republic" in the region of Madiun (East Java). weight and contemplate about the ideological basis. Turco Westerling.e. This power vacuum prompted Soekarno and Hatta to proclaim Indonesia's independence on the 17th of August 1945.
while in Sumatra and later linked up with North Sulawesi rebellions against the central Government demanded separation like the case in the South Maluku. 1955.armed revolt. The conference was attended by delegates from 24 Asian and African countries. the Muslim Majelis Sjura Party (Masyumi) and the Indonesian Communist Party (PKI). Myanmar and Ceylon (Sri Lanka). President Soekarno succeeded in carrying out Indonesia's first General Elections in 1955 in which 47 political parties contested to elect their representatives for the House of People's Representatives and for the Constituent Assembly. The purpose of the meeting was to promote 36 . This election was won by the Indonesian Nationalist Party (PNI). Pakistan. The Asian-African Conference President Soekarno had to his credit the holding of the Asian-African Conference in Bandung. Their elected representatives in the Constituent Assembly failed to reach a consensus on laying down a new constitution which compelled President Soekarno to dissolve the Constituent Assembly and the House which he was constitutionally entitled to and called for the reinstatement of the 1945 Constitution. At the end of this chain of armed rebellion emerged the second communist rebellion on 30rd of September 1965 led again by the Indonesian Communist Party manifested in an abortive coup attempt by kidnapping and murdering six top army generals of the Defense Department. The political pattern which governed the new republic was a liberal parliamentary democracy based on a provisional constitution of the Federal Republic of Indonesia as imposed by the Dutch after its abandonment of the 17th of August 1950. which was to lay down a new constitution for the Republic. West Java. The initiative was taken by Indonesia. from April 18 to 24. The first Republican Government under President Soekarno after the recognition of independence was marked by efforts to unite the Indonesian people and to claim the Dutch occupied Province of Papua. India. Political strive was rampant due to the multi-political party system Indonesia copied from the then existing system in Holland. the Nahdlatul Ulama Moslem Scholars Party (NU). This system has not seldom led towards a dichotomy of extreme political and ideological view which found linkages between parliamentary and armed conflicts.
at the height of Indonesia's confrontation with Malaysia. The resolution also sought to uphold the human rights principles of the United Nations.The Asian African Conference. respect for one another's sovereignty and territorial integrity. on the outskirts of Jakarta. the Indonesian Communist Party (PKI) attempted another coup on September 30. or "The Ten Principles. who was undergoing treatment by a Chinese medical team from Beijing." of Bandung. however. On the night of September 30. April 1955. Their bodies were dumped in an abandoned well at Lubang Buaya. in Bandung closer and amiable cooperation in the economic. 1965. The Beginning of the New Order Government Over-confident of their strength and precipitated by the serious illness of President Soekarno. cultural and political fields. crack troops of the Army's Commando Regiment (RPKAD) freed the central radio station (RRI) and the telecommunication center from communist occupation. armed PKI men and members of Cakrabirawa. was abrupt and quickly stamped out by the Armed Forces under Major General Soeharto. at the time. 1965. The coup was staged in the wake of troop deployments to Kalimantan. 37 . torture and kill six top Army Generals. It strived for world peace. or more precisely in the early hours of October 1. set out to kidnap. Moreover. The resolution adopted became known as the "Dasa Sila". The Asian-African Conference became the embryo of the Non-Aligned Movement. then Chief of the Army's Strategic Command. The seeds that sprouted in Bandung took firm root six years later when 25 newly independent countries formally founded the Non-Aligned Movement at the Belgrade Summit of 1961. many cabinet members were attending a celebration of the Chinese October Revolution in Beijing. Under instructions from General Soeharto. and for non-interference in each other's internal affairs. It was during this power vacuum that the communists struck again. Since then the membership of the Movement has grown to its present strength of 112 member countries. The uprising. the President's security guard.
" that aimed to ban the PKI. To complete the restoration of order and security and to establish political stability. 7. This decision was endorsed and sanctioned by virtue of the Provisional People's Consultative Assembly Decree Number XXV/MPRS/1966. particularly when Soekarno did not show support for the cabinet's program to establish political and economic stability. which Indonesia had quit in January 1965. pending the election of a new President by an elected People's Consultative Assembly. To consistently pursue an independent and active foreign policy. To hold general elections once every five years. General Soeharto banned the PKI. 2. 38 . He also formed a new cabinet.Students made for the streets in militant demonstrations to fight for a three-point claim. 4. Under these explosive conditions. but Soekarno remained as Chief Executive. To prepare a plan for national development and execute it with the emphasis on economic development. on March 12. 9. 3. and reduce the prices of basic necessities. The New Order Government Ever since taking office in 1967. President Soekarno eventually gave in and granted Soeharto full power to restore order and security in the country. 5. 8. To carry out economic rehabilitation. The transfer of power was affected by a presidential order known as "the 11th of March order" of 1966. Soon afterwards. To rejoin to the United Nations. To regain Indonesia's economic credibility overseas. 1966. replace Soekarno's cabinet ministers. the new government set out to undertake the following: 1. 1967. Hence. To end confrontation and normalize diplomatic relations with Malaysia. 6. the New Order Government of President Soeharto was determined to return constitutional life by upholding the 1945 Constitution in a strict and consistent manner and by respecting Pancasila as the state philosophy and ideology. a special session of the Provisional People's Consultative Assembly (MPRS) was convened from March 7-12. To resolve the West Irian question. This brought dualism into the cabinet. They set up a "street parliament" to gather the demands of the people. or "Tritura. To emerge from the political and economic legacy of Soekarno's Old Order. The Assembly resolved to relieve Soekarno of his presidential duties and appointed Soeharto as Acting President.
Unfortunately. the Philippines. finally causing this situation to develop into a political crisis. severe economic crisis. had been able to achieve substantial progress in various fields which had been enjoyed by the majority of the Indonesian people. they reflected the malfunctioning of the political order and of the government. New Zealand. Indonesia succeeded in the formation of a consortium of creditor countries to assist in her economic development. the leadership of the House suggested the President resign. The decline in the people's standard of living was aggravated by various political tensions arising from the 1997 general elections. The political system which had been developed since 1966 turned out to be unable to accommodate the dynamism of the aspirations and interests of the community. Since the middle of 1997. while Vietnam was accepted as the seventh member of this regional organization followed suit by Myanmar. which began with the monetary crisis. On May 12. Singapore and Thailand joined to establish the Association of Southeast Asian Nations (ASEAN). the people's standard of living dropped considerably. On May 18. including the occupation of the People's Consultative Assembly/House of People's Representatives compound. the IGGI has been replaced by the Consultative Group for Indonesia (CGI) consisting of the former members of IGGI (except the Netherlands) and five new creditors. a tragedy happened in the Trisakti University Campus. Indonesia secured an agreement with creditor countries to reschedule an overseas debt of US$5 billion.With regard to Malaysia. The President's effort to accommodate the developing aspirations of the people by forming are 39 . This led to riots and disturbances. Australia. demanded President Soeharto to step down and stamp out corruption. Indonesia under the New Order Government of President Soeharto had endeavored to achieve its national development goals. Its annual meetings were held in Amsterdam under the chairmanship of the Netherlands. social and cultural fields. To prepare for national development. Further. Britain and a number of West-European countries. They appealed for political and economic reform. Indonesia. Brunei Darussalam became the sixth member of ASEAN. collusion and nepotism. in addition to economic rehabilitation. not only were relations normalized but Indonesia together with Malaysia. Critical moments prevailed in the capital. A number of student demonstrations ensued. Indonesia had gained success in the national development. Kampochea and Laos. struck Indonesia as of July 1997. To a certain extend. but ASEAN also operates in the political area. This consortium was known as the Inter-Governmental Group on Indonesia (IGGI) and included the United States. With the recovery of the country's overseas credibility. Jakarta. Canada. causing the death of four students. The Reform Order Government Since the outset of the First Five-Year Development Plan in 1969. indeed. Japan. Currently. and other towns from 12 to 21 May 1998. The objective of the association is the establishment of regional cooperation in the economic.
1999 and the recent 2004. VII/1973. The first. Conducting a special session of the People's Consultative Assembly (MPR) in November 1998. Habibie took his oath of office before Chief Justice Sarwata to become Indonesia's third President. After the announcement. he handed over the country's leadership to Vice-President Bacharuddin Jusuf Habibie. 1982. and create a clean government. namely in 1955. 1987. President B. regional administrations and elections. President Soeharto. General Elections The Indonesian nation has been so far organizing general elections for nine times. 1977. Habibie formed the Reform Development Cabinet. collusion and nepotism. Pursuant to Article 8 of the 1945 Constitution and the People's Consultative Assembly decree No. They are the laws on mass organization. agribusiness. Rooting out corruption. political parties. 8. 1992. export-oriented industry and tourism sectors. and legal fields. He picked the ministers from the various political and social forces. Implementing sweeping reform in all sectors. followed by General Elections on May 1999. widely acclaimed as a fairly democratic general elections. Earlier President Soeharto disbanded the cabinet which he formed shortly after his reelection for a seventh five-year presidential term in March. 1998.J. on May 21. including three politicians from the United Development Party (PPP) and the Indonesian Democratic Party (PDI). after a 32-year rule of the New Order Government resigned. 4. A day after his installment as the third president. to provide the needed synergy.form cabinet and a reform committee never materialized as there was no adequate support from various circles. 2. was held in 1955 under the 40 . Finally. the People's Consultative Assembly (MPR). Safeguarding the implementation of the 1998/99 state budget 6. 1997. to enable the government to satisfy mounting demands for a strong and clean government. Habibie outlined the agenda for reform during his presidency as follows: 1. 5. Boosting output from the agriculture. 1971. the House of Representatives (DPR). economic. including in the political. Accelerating the bank restructuring program 7. Resolving the problem of corporate foreign debts. 3. Reviewing the five political laws upon which the current political system is bound.
The second was in 1971.Administration of Soekarno. the Indonesian Democratic Party of Struggle (PDI-P) won the contest by getting the most votes. Act No. held under the Administration of President Soeharto. Only during the 1999 General Elections under the relatively short-term Administration of President B.J. Eligible voters cast their votes at the 1955 General Election Partai Persatuan Pembangunan (the United Development Party) and Partai Demokrasi Indonesia (the Indonesian Democratic Party). This time Partai Demokrasi Indonesia-Perjuangan. 1945. they failed in scoring a majority. After that there had been only the two parties and the functional group contesting the next five general elections.3 of 1975 was issued with regard to the fusion of about 150 political and mass organizations into two political parties i. after deliberating for three years. with ideologies ranging from religious. in which the Functional Group always came up first with a landslide victory. the day after the nation proclaimed its independence. issued on July 5. relegating the Golkar Party to second place. Then in 1975. 1959 revoked at the same time a Government Manifesto calling for the formation of as many political parties as possible. The Presidential Decree. During this general elections many parties. many parties (48 parties) could contest again. However. Habibie.e. 41 . the first president of the Republic. As a result. contested to elect members of the House of Representatives and the Constituent Assembly with the task to draw up the nation's new constitution to replace the existing 1945 Constitution adopted on August 18. and to issue a Presidential Decree calling for the reinstitution of the 1945 Constitution. Marxism and nationalistic. and one Functional Group (Golongan Karya). in which there were still many parties contesting. then President Soekarno was forced to dissolve the Assembly.
and for the first time in the history of this Republic. Law No. 31 of 2002 on Political Parties.Eligible voters cast their votes at the 2004 General Election Counting of votes in the poll station in 2004 General Election The 2004 General Elections Article 1 clause (2) of the amended 1945 Constitution stipulates that "sovereignty is vested with the people and shall be exercised according to the Constitution. 23 of 2003 concerning General Elections to elect the President and Vice-President. Translating the stipulation are Law No." It explicitly means that sovereignty shall no more be exercised by the People's Consultative Assembly as it did previously. Regional Representatives 42 . the President and Vice-President are to be elected direct by popular votes. 12 of 2003 on General Elections to elect Members of the House. Law No. but shall be done according to the provisions of the Constitution. Under this stipulation all members of the House of Representatives and the Regional Representatives Council _the members of the two legislative bodies then constitute members of the Assembly_ and members of provincial and district as well as municipal Houses of Representatives should be elected.
(3) Prof.990.H. Susilo Bambang Yudoyono is the first president of the Republic since Indonesia proclaimed its independence on August 17. who was elected by direct popular votes.Council and Regional Houses of Representatives.38 percent seized by incumbent Megawati Soekarnoputri and Hasyim Muzadi. 1945.054 votes or less than 80 percent declared valid. 22 of 2003 concerning the Composition and Status of the Assembly. Salahuddin Wahid. there were five candidate pairs competing.350 votes or 60. 12 of 2003 stipulates that the number of seats of the House is 550. proposed by the National Mandate Party (PAN).266. and regional Houses were 24 political parties to fight for seats mentioned earlier. followed by the Indonesian Democratic Party of Struggle (PDI-P) with 21.564 votes to gain 52 seats. 2004 in fair. Susilo Bambang Yudoyono-Jusuf Kalla and Megawati Soekarnoputri-Hasyim Muzadi were eligible to contest to the election runoff that was held successfully on September 20. that of Provincial Houses shall not be less than 35 and no more than 100 seats.68 percent of total valid votes. Amien Rais-Ir. (2) incumbent President Megawati Soekarnoputri-K. 2004 that retired Army general Susilo Bambang Yudoyono and his running mate Mohammad Yusuf Kalla as the winner of the election runoff. Contesting in the 2004 general elections to elect members of House.989. proposed by the United Development Party (PPP). Law No.257. There were 148 million eligible registered voters. the election of the President and Vice President is in pair by direct popular votes.248. and Law No. the two top pairs. With no single pair winning a majority votes in the first-round presidential election on July 5. the United Development Party (PPP) with 9. (5) and incumbent Vice Prersident Hamzah Haz-Agum Gumelar. an independent institution that organized the legislative and presidential-vice-presidential elections. During the 2004 general elections to elect the President and Vice President. Siswono Yudo Husodo. proposed by the Indonesian Democratic Party of Struggle.026. the House. announced officially on October 4. proposed by the Golkar Party. DR. against 44.757 votes to win 127 seats of the House.764 votes to have 58 seats and the Democratic Party with 8. The Susilo Bambang Yudoyono-Jusuf Kalla pair garnered 69.225 votes to seize 57 seats. Pursuant to Article 6A of the Constitution.480. Hasyim Muzadi. and the Regional Houses.455. The General Elections Commission (KPU). and the candidates in pair shall be proposed by a political party or a coalition of parties participating in the general elections. There were 155 million registered voters but only 114. (4) Susilo Bambang Yudoyono-Muhammad Jusuf Kalla. namely: (1) H. and those of district/municipal Houses shall not be less than 20 and no more than 45 seats. 43 .629 votes to get 109 seats. the Nation's Awakening Party (PKB) with 11. proposed by the Democratic Party. peaceful and democratic manner. but only 124 million or some 83 percent cast their ballots. H.704 votes or 39. Five major parties topping the outcome of the 2004 general elections are: the Golkar Party that garnered 24. Wiranto-Ir.
freedom and equality are exercised in order to be able to reflect the feeling of togetherness that guarantees the manifestation of the people's whole ideals. a simple multiparty system. It is realized that the process that lead to political life giving a role to political parties as a national asset takes place on the foundation of the principles of change and continuity that promote democratic maturity and responsibility. Therefore the political structure must rely on the people's sovereign norms which give freedom. respect human rights. uphold the law. and receive donation and/or grant contribution from foreign parties in any means that is against the statutory regulations. The law stipulates the formation. some 50 percent of the total districts/municipalities in each province concerned. socialization. but also better nurture democratic environment that enables political parties to take optimum role. i. and secure stability. equality and togetherness. Through those political parties. materialize justice. 2 of 1999. 2002 to replace Law No. Through implementing their functions as agents of political education. and communication. associate. 31 of 2002 that governs political parties was enacted on December 27. people can manifest their rights to express their opinion concerning their life direction and their future in the society and state. with the requirements of having regional party boards at least 50 (fifty) percent of the total provinces. A political party must be established by a notary public certificate and registered to the Department of Justice. and over the fixed limit. Political parties as participants of general elections have the opportunities to struggle to win the broad interests of the people. A political party is prohibited to receive contribution either in the form of goods or money from individual and/or enterprise or any part whatsoever without stating clear identities. fill up state institutions. This mechanism tends not only to discourage monolithic. and cohere various groups and social classes.Political Party Law No. maintenance. 44 . underpin national unitary and integrity. it is necessary to establish a sound and mature party life and system. By the simple multiparty system it will easier to carry out cooperation for the creation of national synergy. To create the aims of the society and state having national perspective. Political parties constitute the most important component in the democratic political system. and 25 percent of the total sub-districts in each district/municipalities concerned.e. and development of political parties that basically constitute one of the reflections of citizens' rights to assemble. and to form government. political parties in fact will improve political awareness and participation of the society. This can be achieved by systematizing the parties' life. in addition to the existence of appropriate system and process of general elections. and express opinion. In the democratic political system. interests formulation and channeling.
national-owned enterprises. the Regional Representatives Council (DPD). all members of the House of Representatives (DPR). a political party is prohibited to ask or receive contribution from state-owned enterprises. This amendment means that the sovereignty is no longer fully exercised by the People's Consultative Assembly. fair. the general elections shall be executed in a more qualified fashion in order to secure sound competition. honest. and just and once in every five years. free. non-government organizations. Provincial DPRD. 3 of 1999 on General Elections. cooperatives. secret. and other names. General Elections to Elect Members of the Houses. Every political party that participates in the general elections can nominate its candidates for the membership of the DPR. According to the Law. a new law is required to replace Law No. secret. while of the House of Representatives of the provincial level (Provincial DPRD) shall have at least 35 seats and no more than 100 . and District/Municipal DPRD for each electorate by taking the female representation at the minimum of 30 percent into account.In addition. The general elections will in turn produce democratic representative institutions and government. 45 . In conformity with the reformation mandate. and the Regional Houses of Representatives of the Districts/Municipalities shall be elected through elections which shall be executed based on the principles of direct. general. the Regional Houses of Representatives (DPRD) of the provinces. and humanity organizations. but shall be exercised according to the provisions of the Constitution. higher representation. the membership of the House of Representatives (DPR) shall total 550 persons. and clearer mechanism of accountability. With the taking effect of this law. foundations. To this end. regional-owned enterprises. Article 1 clause (2) states that sovereignty shall be vested in the people and shall be exercised according to the Constitution. Based on these amendments. and of the House of Representatives of the district/municipal level shall have at least 20 seats and no more than 45. the settlement of the cases of political parties in penal process adjusts itself to the provisions of this law. and the Council The amendments to the 1945 Constitution of the Republic of Indonesia. free. and fair. social organizations. general. General elections shall be executed based on the principles of direct.
22 of 2003 concerning Composition and Status of the People's Consultative Assembly (MPR). In the 2004 general elections. the Constitution Court is one of the state organs exercising an independent judiciary power to uphold law and justice according to its duty and authority. Composition and Status of Legislature The Preamble to the 1945 Constitution has stated that the state of Indonesia shall be in the form of Republic which in its implementation will adopt the principle of democracy guided by the inner wisdom of deliberation amongst representatives. Constitutional Court Based on the amended 1945 Constitution. Law No. Considering that the Constitutional Court is one of the substantial parts to the 1945 Constitution. the legislative bodies shall be established to strive for the people's aspirations including regional ones in the frame of upholding democratic values. and Sub-District General Elections Supervisory Committees shall be established. In line with development of state affairs and national public. after the 1945 Constitution having been amended. regulating 46 . 24 on the Constitutional Court was enacted. the state organs have experienced a substantial change in their composition and status. the House of Representatives (DPR). as well as improving the quality. 2004 as the 2004 General Elections Day. Law No. The General Elections Commission has determined April 5. and performance of the members of those bodies for the sake of realizing the people's well-being.To supervise the general elections. Provincial General Elections Supervisory Committees. productivity. is enacted in the frame of improving the role and responsibility of the members of parliament/regional parliament in exercising their duty and authority. the Central General Elections Supervisory Committees. and developing the mechanism of checks and balances between legislative bodies and executive ones. the Regional Representatives Council (DPD). and the Provincial and District/Municipal Houses of Representatives (DPRD). as well as correction to the state affairs experience emerging in the past dual interpretation to the Constitution. To realize that. including of the newly established regional representatives council. The existence of the Constitutional Court is also aim to keep state administration stability. the personnel of the Indonesian Defense Force and the National Police had no rights to vote. District/Municipal General Elections Supervisory Committees.
10. there will be general elections to be executed to elect the members of the People's Consultative Assembly (MPR). National Awakening Party (Partai Kebangkitan Bangsa _PKB). 15. Both the elections shall be executed in accordance with the Law as an implementation of a state based on law in the Unitary State of the Republic of Indonesia. Indonesian Unity Party (Partai Sarikat Indonesian _PSI). 20. 22. Prosperous Justice Party (Partai Keadilan Sejahtera _PKS). Golkar Party (Partai Golongan Karya _Golkar).appointment and discharge of constitutional court judges. 23. 17. Prosperous Peace Party (Partai Damai Sejahtera _PDS). Freedom Bull Nationalist Party (Partai Nasionalis Banteng Kemerdekaan _PNBK). 2. United Development Party (Partai Persatuan Pembangunan _PPP). Concern for Nation Functional Party (Partai Karya Peduli Bangsa _PKPB) . 11. Article 1 clause (2). Marhaenism Indonesian Nationalist Party (Partai Nasional Indonesia Marhaenisme _PNI Marhaenisme). it is stated that: "The sovereignty shall be vested in the people and shall be exercised in accordance with the Constitution. 9. The 24 Parties Taking Part in the 2004 General Election The General Elections Commission determined the 24 parties that have passed the clarification. Regional Unity Party (Partai Persatuan Daerah _PPD). law of procedure. 6. Indonesian Democratic Vanguard Party (Partai Penegak Demokrasi Indonesia _PPDI). 19. 21. Therefore. Freedom Party (Partai Merdeka _PM). but shall be exercised in accordance with the stipulations of the Constitution. duty and authority. they have the right to be the participants of the General Elections of the members of the House of Representatives. Indonesian Unity and Justice Party (Partai Keadilan and Persatuan Indonesia _PKPI). 12. Reform Star Party (Partai Bintang Reformasi _PBR). 7. 4. and 24. The parties are as fallows: 1. As one of the application of the sovereignty. 5. the House of Representatives (DPR). 8. New Indonesia Alliance Party (Partai Perhimpunan Indonesia Baru _PIB). Pioneer Party (Partai Pelopor _PP) General Elections to Elect President and Vice President According to the amended 1945 Constitution of the Republic Indonesia. and other provisions on the Constitutional Court. Democratic Solidarity Labor Party (Partai Buruh Sosialis Demokrat _PBSD). National Mandate Party (Partai Amanat Nasional _PAN). 16. 14. Pancasila Patriot Party (Partai Patriot Pancasila _PPP). Crescent and Star Party (Partai Bulan Bintang _PBB). 13. 18. Indonesian Nahdlatul Community Party (Partai Nahdlatul Ummah Indonesia _PPNUI). the Regional Representatives Council (DPD) and the Regional Houses of Representatives (DPRDs) as well as another to elect the President and Vice President. 3. Indonesian Democratic Party of Struggle (Partai Demokrasi Indonesia Perjuangan _PDIP). The first general elections to elect the President and Vice-President in 2004 is a political process for the Indonesian nation towards a democratic and responsible political life. and 47 . the Provincial Houses of Representatives and the District/Municipal Houses of Representatives. Democratic Party (Partai Demokrat _PD). Democratic Nationhood Unity Party (Partai Persatuan Demokrasi Kebangsaan _PPDK). The amendment has a meaning that the people's sovereignty is no longer fully exercised by the People's Consultative Assembly (MPR). composition and status.
to elect the President and Vice President who have concrete support from the people. permanent and independent commission. free. general. 2004 as the date of the first round of general elections for President and Vice-President. secret. Supervision on the general elections to elect President and Vice-President shall be executed by supervisory committees for general elections at the level of province. The political party or a coalition of political parties shall only be able to. The general elections to elect the President and Vice-President shall be executed once in five years in direct. fair and just manners and will be organized by a national. Whereas the General Election Commission (KPU) will handle violations and dispute settlements of general elections related with administration and procedures. 48 . district/city and sub-district. 2004 as the second round if it is deemed necessary. 2004. The general elections supervision and monitoring are executed based on the principle of accountability. General Elections Commission has determined July 5. The determination of the result of the general elections for President and Vice-President took place on October 5. The law enforcement of criminal provisions shall be done by the court of justice. This is meant that the political party as a means of people's political participation to propose candidates has made first selection for the candidate pairs of President and Vice-President. The Constitution Court will settle disputes on the results of general elections to elect President and Vice-President. propose one candidate pair who meets the requirements of having a votes return minimum of 20 percent of valid votes in the national general elections to elect the House of Representatives members. The candidate pairs who want to race in the general elections to elect the President and Vice President shall be proposed by a political party or a coalition of political parties which meet the requirements. and September 20.
That occasion opened the opportunity for the Indonesian people to proclaim their independence. An English translation of the proclamation was broadcast overseas. SOCIAL JUSTICE FOR WHOLE OF THE PEOPLE OF INDONESIA 49 . Hiroshima and Nagasaki. Jakarta. THE UNITY OF INDONESIA 4. was heard by thousands of Indonesians throughout the country because the text was secretly broadcast by Indonesian radio personnel using the transmitters of the Japanese-controlled radio station. 1945. 1945. on August 17. the Indonesian national leaders Ir. the United States dropped Atom bombs on two Japanese cities. The proclamation. on August 14. the Japanese surrendered to the Allied Forces. the Japanese occupied the Dutch East Indies as of March 1942. Soon after.STATE AFFAIRS When World War II broke out in Europe and spread to the Pacific. On April 1. They are: 1. "Panca" meaning five. and "sila" meaning principle. Manila and Singapore. pronounced Panchaseela. Jakarta Hoso Kyoku. BELIEF IN THE ONE AND ONLY GOD 2. on August 6 and 9. Three days after the unconditional Japanese surrender. the State Philosophy Pancasila. Soekarno and Drs. is the philosophical basis of the Indonesian State. 1945. JUST AND CIVILIZED HUMANITY 3. Jalan Pegangsaan Timur. Mohammad Hatta proclaimed Indonesia's independence on behalf of the people. Pancasila. which took place at 58. DEMOCRACY GUIDED BY THE INNER WISDOM IN THE UNANIMITY ARISING OUT OF DELIBERATIONS AMONGST REPRESENTATIVES 5. American troops landed in Okinawa. after the surrender of the Dutch colonial army following the fall of Hong Kong. It comprises five inseparable and interrelated principles. A few days later. Pancasila consists of two Sanskrit words.
Section 1 of the 1945 Constitution and reads: "The state shall be based on the belief in the One and Only God. 3) The Unity of Indonesia This principle embodies the concept of nationalism.Elaboration of the five principles is as follows: 1) Belief in the One and Only God This principle of Pancasila reaffirms the Indonesian people's belief that God does exist. to reach a consensus. It believe in life after death." 4) Democracy Guided by the Inner Wisdom in the Unanimity Arising Out of Deliberations amongst Representatives Pancasila democracy calls for decision-making through deliberations. and with a view to preserving and strengthening national unity and the pursuit of social justice. with respect for humanitarian values of man's dignity and integrity. 50 . while the Indonesian coat of arms enshrines the symbol of "Bhinneka Tunggal Ika" which means "unity in diversity. Thus. In 1928 Indonesian youth pledged to have one country. for reasons of ancestry and color of the skin. This implies that democratic right must always be exercised with a deep sense of responsibility to God Almighty according to one's own conviction and religious belief. Pancasila nationalism demands that Indonesians avoid feelings of superiority on ethnical grounds. This means that the use of democratic rights should always be in line with responsibility towards God Almighty according to the respective faith. or mufakat. guarantee and strengthen national unity. uphold human values in line with human dignity. and be aimed at realizing social justice for the whole of the people of Indonesia. It envisages the need to always foster national unity and integrity. 2) Just and Civilized Humanity Just principle requires that human beings be treated with due regard to their dignity as God's creatures. of love for one's nation and motherland. The principle is embodied in article 29. Pancasila Democracy means democracy based on the people's sovereignty which is inspired by and integrated with other principles of Pancasila. or musyawarah. one nation and one language. It emphasizes that the Indonesian people do not tolerate physical or spiritual oppression of human beings by their own people or by any other nation. It emphasizes the pursuit of sacred values will lead the people to a better life in the hereafter. It is democracy that lives up to the principles of Pancasila.
making the MPR be a state institution that had unlimited authority because it became an institution of the sovereignty embodiment of all Indonesian people. Furthermore. 2001 and 2002. they should work according to their abilities and fields of activity. the MPR became a super body state institution that in the structure of the matters pertaining to form of the government 51 . not in a static but in a dynamic and progressive way. and completion for four times in the annual session of 1999. Accordingly. Social justice implies protection of the weak. the 1945 Constitution originally adhered an ideology that the sovereignty was vested in the people executed fully by the People's Consultative Assembly (MPR). and defended thereafter. and another to distinguish it from other constitutions which were introduced in free Indonesia. deliberations of representatives (musyawarah) and consensus (mufakat). 1945. should always be respected by every Indonesian because it is now the ideology of the state and the life philosophy of the Indonesian people. additions. These are the sacred values of Pancasila which. the articles of the 1945 Constitution spell out the ideals and the goals for which independence was proclaimed on August 17. The 1945 Constitution The Constitution of the Republic of Indonesia is usually referred to as the 1945 Constitution. The Main Materials of the Amendments to the 1945 Constitution Since the reformation era. Protection should prevent willful treatment by the strong and ensure the rule of justice. the 1945 Constitution has experienced some amendments. It reflects the spirit and vigor of the time when the constitution was shaped. Its huge and unlimited power caused the People's Consultative Assembly was unable to be controlled by any other state institutions. But protection should not deny them work. 2000. This partly is because the constitution was drafted and adopted in 1945 when the Republic was being established.5) Social Justice for the Whole of the People of Indonesia This principle calls for the equitable spread of welfare to the entire population. It was inspired by the urge for unity and for the common goals and democracy built upon the age-old Indonesian concepts of gotong royong (mutual assistance). It adhered an ideology of the People's Consultative Assembly supremacy. On the contrary. All the amendments were based on topics covering the following issues: 1. as a cultural principle. This means that all the country's natural resources and the national potentials should be utilized for the greater possible good and happiness of the people. Sovereignty The Constitution.
so the current election system by the MPR has to be changed to the direct election system by the people. therefore the formulation was changed by conforming that all members of the MPR have to be chosen by the people through general election. the president has such a quite big and important power and role. The Structure of the Membership Authority of the People's Consultative Assembly Before the amendment. The members of the HR were elected in the General Election. and Group and Delegates (DG). Direct Election of the President and the Vice-President by the People Since the establishment of the Republic of Indonesia. especially concerning his power begun from declaring war until granting abolition. The Authority of the President The 1945 Constitution adheres presidential government system. then the second round will be executed to appoint a candidate pair who has the majority vote from the first and 52 . the original 1945 Constitution views was no longer conforming to democracy ideology that required the implementation of checks and balances system among intra-state institutions. The MPR does no longer become the state institution having huge authority. 3. its decree of the Article 2 section (1) were converted to the sovereignty is vested in the people and executed according to the constitution. To keep abreast to the changing era. 4. In accordance with the spirit of democracy that requiring the people are being given the right to elect the president and vice-president directly. while the RD and DG were appointed. so that its position makes it be equal with other state institutions. the election of president and vicepresident had been executed by the MPR by an indirect of representative mechanism. a new representative institution in the structure of the matters pertaining to form of government of the Republic of Indonesia. With this amendment. the structure of the membership of the MPR consists of the HR members and the Regional Representatives' Council members. the People's Consultative Assembly is no longer the highest state institution.of the Republic of Indonesia was positioned as the highest state institution. it was logical that there were quite many materials related to the Presidential authority in the 1945 Constitution that spread over in various articles and sections. 2. Either in theoretic and practice of the matters pertaining to form of government in countries following the presidential government system by this constitution. the structure of the membership of the People's Consultative Assembly consisted of member of the House of Representatives (DPR) including appointed members of the Indonesian Military/Police. For that. The appointment of some members of the MPR was considered not conforming to with the teaching and spirit of democracy. So does in Indonesia. Therefore. If the conditions of the first round general election are not fulfilled. the appointed Regional Delegates (RD).
The Term of Office of the President and Vice-President Before having been amended. That position makes the Vice-President automatically shall replace the president until the end of his/her term if the president dies. there was no decree in the 1945 Constitution which arranged the discharge of the president and/or vice-president from their offices. the President and Vice-President at the same time die. prompt decision based on a strong law is needed. In this condition. 7. for example. there remain another possibility of the emergency condition caused by. It is executed when the DPR considers the president is really violating the basic state guidelines or guidelines of state policy. the Home Affairs Minister and the Defense Minister. The couple that has the majority vote will be inaugurated as the president and vice-president. the formulation of the term of office of the president and vice-president in the 1945 Constitution was not decisive or concrete to arrange the frequency of the term. The constitution only stipulated a decree on the accountability of the president before the extraordinary session of the MPR based on the invitation of the DPR. 8. 6. The amended 1945 Constitution sets that the president and vice-president hold the fixed term of five years and can be reelected for another term. the position of the Vice-President is to assist the President in discharging his/her duties. The replacement of the President amid the Term by the Vice-President According to the amended 1945 Constitution. and are discharged. In consequence. or are unable to discharge their duties of offices during on their terms. 5. resigns. and is discharged. it opened chance for more than one interpretation.second ranks. It means that an Indonesian citizen is only being able to be voted for the president and/or vice president for 10 years consecutively. the executors of the presidential duties are that consisting of three cabinet members namely: the Foreign Affairs Minister. Ancitipating such case the amended 1945 Constitution stipulates that in case that condition occurred. The Discharge of the President and Vice-President on Posts Prior. 53 . resign. The Executor of the Presidential Duties Although improbable. or unable to discharge his/her duties during his/her term of office. Now the amended 1945 Constitution embodies casual factors and procedures of discharging the president and/or vice-president from their offices.
To substitute for it the constitution gives the authority to the President to form the Advisory Council that has the task to give advice and judgment to the President. Now. are to assist the President. The newly amended Constitution also regulates the state recognition of and respect for regional administration units. the original 1945 Constitution was amended to be more details and perfectly managed. The institution is the Regional Representatives Council as stated in the provisions of the Chapter VIIA concerning the Council. 10. The regional autonomy has to be executed and remains within the Unitary State of the Republic of Indonesia. the amended 1945 Constitution asserts that the state ministers. with the yields emphasized regu lates to raise the regional progress and prosperity. Based on that consideration. 12. study of constitution draw of the budget that was proposed by the president and then executed together with the HR by taking note of the judgment of the Regional Representatives' Council. Financial Matters Concerning with the increase of the awareness of the importance of the state financial management. which was equal with the president and had a task to give advice and judgment to the president was viewed as less effective and efficient. who are appointed and discharged by him/her. 13. The Regional Government The regions are given the freedom and authorities to exploit and manage their natural resources. the amended 1945 Constitution eliminates the existence of the Council. It was due to unbinding of the advice and judgment to the president. The State Ministry As a constitution adhering to the ideology of presidential government system. The Regional Representative's Council The amended 1945 Constitution introduces a new representative institution in the structure of the government of Indonesia. which is special and extraordinary in character. 54 .9. 11. The formation of the President Advisory Council and the Elimination of the Supreme Advisory Council The existence of the Council as a state institution.
15. having the status of a free and independent. It is expected to be able to manifest the prompt court in order not to become a prolongedterm case. The Supreme Court The amended constitution concerning the justice authority produces two new state institutions: Judicial Commission and Constitutional Court. except certain cases taken into court by the Commission. so that the implementation of its duties is not intervened. The Audit Board In the new provision concerning the Board it is. it was also firmed that there is the tax arrangement and other collection of finance duty that are by force for the state needs. The authority of the Court as enacted in the provision of the Article 24C of the 1945 Constitution is to judge in the first level and final. 17. 55 . influenced. With the formation of the Judicial Commission it is expected that the quality of the supreme judges and judges improve. inter-institutional arbitrariness disputes. and in turn it will improve the judicial process and judicial decision in the Commission as the highest judicial institution in the Indonesia judicial structure. political party dismissal. or be under the pressure. among others confirmed that the AB as the state institution functions in the field of financial investigation. The amended Constitution stipulates that besides locates in the capital city the Board also has a representative office in each province. either by the state institutions or boards or public and individuals. The formation of those two institutions is aimed at strengthening the implementation of the justice authority to achieve the expected results to upholding the law and justice. 14. The Judicial Commission The judicial commission as a new institution is formed related to the implementation of the justice authority. it is arranged in the new amended 1945 Constitution. 16. and results of the general election. The confirmation is viewed as very important. which decision is final.In the new chapter concerning the financial. The Constitutional Court The existence of the Court is viewed very important to implement the judicature function on cases related to the judicial review.
20. as the main force. 21. and nation having the wish to realize the national grandeur and noble civilization. The State Defense and Security The 1945 Constitution stipulates that defense and security is carried out through total people's defense and security system by two state organs. and fulfilling of human rights is vested on the state. Human Rights Along with the development of ideas concerning Human Rights. The national education budget prioritize is at least 20 percent of the state budget and the regional budget constitutes the answer to the reality that most part of the human resources belong to lower standards of education. This formulation becomes a specific characteristic of the Indonesian national defense and security since it places the people to take part actively in the system. and the Indonesian people as the supporting force. After having been amended. The retroactive principle shall be operative in the context of protecting human rights themselves. namely the Indonesian Nation Army and the Indonesian Police. Educations and Culture It was formerly formulated in the 1945 Constitution that each citizen has the right to obtain education and the right to take basic education. the formulation of the provisions of the national education objectives improved by inserting the formulation of "improving faithfulness and devotation. development. upholding. National Economies and Social Welfare By examining carefully the dynamic of national economy and development of the global economy. In the provision concerning human rights it is also asserted that the responsibility to implement protection. 19. formulation concerning the national economy contained in Chapter XIV Social 56 ." "nobleness of character" and "advance the intellectual life of the nation". it is necessary to improve the formulation of the rights in the 1945 Constitution. Concerning with the exercise of human rights there has been a non-retroactive principle confirming that the violation on human rights shall not to be charged on the ground of the retroactive law. mainly the government. The implementation of it is the inclusion of Human Rights in a separated chapter of the amended Constitution. So it becomes the government obligation to pay for each citizen acquisition of his/her elementary education. The inclusion of those three matters constitutes the realization of the collective awareness of the Indonesian nation as a religious nation.18.
24. The Amendment of the Constitution One of the provisions considered important to be regulated in a constitution is a matter concerning amendment to the constitution itself. independence. the amended 1945 Constitution inserted into it formulation about the national economy that shall be managed based on economic democracy with the principles of common endeavor. or interim in character. underwent some improvements by constitutional amendment to become Chapter XIV National Economy and Social Welfare. 22.Welfare. Transitional Provisions The provision concerning the transitional provisions in the 1945 Constitution consists of 3 (three) articles aimed at regulating the transitional enforcement from ius constitutem (positive law in force) to ius constituendum (new law replaces it) The transitional provisions are needed because each constitutional amendment (in the wider aspect of law amendment) will cause the transitional situation of the old constitution to the new one with the legal norms having been changing. The State Attributes Before the amendment. and by maintaining the balanced proportion between the progress and the national economic entity. 23. The transitional provision is proportional. transitional. persistence. fairness. It aims that the next generations remain to have an opportunity and poses legal foundation to amend it to keep abreast with the changing era. Beside maintaining the formulation of the existing provision of Article 33. The change of the title has been viewed appropriate considering that the provisions encompass economy and social welfare. Having been amended. and "Indonesia Raya" as the National anthem (the Article 36B). the 1945 Constitution encompasses the "Garuda Pancasila" as the state symbol with the slogan "Bhineka Tunggal Ika" (Unity in Diversity) in Article 36A. 25. friendly environmental vision. efficiency. In the transitional provisions embodied in the 1945 Constitution it is said that all existing provisions remain in force before being amended according to the Constitution. Additional Provisions The additional provision consists of 2 (two) articles that govern the task of the MPR to carry out judicial review on the materials and legal status of the provisions of the PCA 57 . In addition is asserted that all existing state institutions remain functioning before being amended according to this Constitution. the state attributes mentioned in the 1945 Constitution included only the State Flag (Article 35) and Indonesia Language as the state language (Article 36).
it was a part of this Constitution. The provision of Article 11 Additional Provision asserts that by the enactment of the amendments to the 1945 Constitution. was flown for the last time on August 17. or two meters by three meters. called "garuda" that is a figure from ancient Indonesian epics. These provisions terminated the existence of the elucidation of the 1945 Constitution of which. red on top of white. of government buildings and Indonesian missions abroad. As provided for in Articles 35 of the 1945 Constitution. suggests the greatness of the nation. the flag is made up of two colors. These figures stand for the date of Indonesia's independence proclamation: 17 August 1945. The eagle is a symbol of creative energy. It is hoisted in front of the presidential palace. Its principal color. There are 17 feathers on each wing. It is also pictured on many temples from the 6th Century. 1968. The National Flag The Indonesian national flag is called "Sang Saka Merah Putih". 8 on the tail and 45 on the neck. or "bendera pusaka". before the 1945 Constitution amended. the 1945 Constitution consists of the Preamble and Articles.and the PCA in relation with the MPR changing authorities as stipulated in Article 33 of the 1945 Constitution. gold. This historical flag. 58 . Since then it has been hoisted at Independence Day commemoration in front of the presidential palace in the capital city of Jakarta. The first flag was courageously flown amidst Japanese occupation forces on the day Indonesia's independence was proclaimed. The black color represents nature. The Coat of Arms The Indonesian coat of arms consists of a golden eagle. Its width is two-third of its length. Since then it has been preserved and replaced by a replica woven of pure Indonesian silk.
religious and cultural backgrounds resolutely pledged allegiance to: 1. The birth of Indonesia Raya marked the beginning of Indonesian nationalist movements. cultural and religious differences amongst the people. which is black on a red background. the Indonesian nation. The bar across the center indicates the equator. symbolizes the third principle. is symbolized by the gold and white paddy and cotton ears. The song was composed in 1928. The chain symbolizes successive human generations. The shield symbolizes self-defense in struggle and protection of oneself. It signifies the unity of the Indonesian people despite their diverse ethnic and cultural backgrounds. represents the fourth principle. The round links represent women and the square ones men. The National Anthem The national anthem is "Indonesia Raya". just and civilized humanity. a saint of the Majapahit Kingdom introduced this old Javanese motto. Sulawesi and Halmahera.The motto. One unifying language. language. belief in the One and Only God. One nation. at the second All Indonesian Youth Congress on October 28. social justice for the whole of the people of Indonesia. The "beringin. The colonial policy of the day was "divide and rule. which means Great Indonesia. the foundation of the Indonesian state. 2. "Bhinneka Tunggal Ika" (Unity in Diversity). This is a reminder of the fact that the Republic of Indonesia is the only tropical country in which the people have built a free and sovereign state by their own hands." or banyan tree. The head of the "banteng"." It was a policy that deliberately aggravated language. now Jakarta. ethnic. in the 15th century. The song was firstly introduced by its composer. is enshrined on a banner held in the eagle's talons. 3. Kalimantan. The golden star on the black background in the center of the shield represents the first principle of Pancasila. It is the symbol of the second principle. The red and white colors on the shield's background denote the colors of the Indonesian national flag. The five symbols on the shield represent the state philosophy of Pancasila. The fifth principle. or wild bull (Bos javanicus). the Indonesian language. which passes through the islands of Sumatra. Indonesia. Empu Tantular. It was the moment when Indonesian youth of different ethnic. One native land. the unity on Indonesia. 1928 in Batavia. Wage Rudolf Supratman. 59 . democracy guided by the inner wisdom in the unanimity arising out of deliberations amongst representatives.
The State Audit Board (Badan Pemeriksa Keuangan _BPK) 5. because the President and Vice-President in pair are elected direct by the people. became popular. as they were previously. The Assembly does no longer elect the President and Vice-President. there are now 7 (seven) organs of the state: 1. The House of Representatives (Dewan Perwakilan Rakyat _DPR) 4. The Constitutional Court (Mahkamah Konstitusi _MK) 7. The Assembly has the authority to amend and stipulate the Constitution and to inaugurate the President and Vice-President. where people stood in solemn observance. delegates of the regions and delegates of functional grouping will no longer be appointed to the membership of the MPR. The People's Consultative Assembly (Majelis Permusyawaratan Rakyat _MPR) 2. the MPR Chairman is assisted by three 60 . The Assembly can only discharge the President and/or Vice-President during his/her term of office with due observance of the Constitution. the Chairmanship of the People's Consultative Assembly is made separate from that of the House of Representatives. which called for the unity of Indonesia. which is elected through the general elections. The song seriously aroused national consciousness among the people throughout the archipelago Indonesia's National Anthem State Organs According to the amended 1945 Constitution. According to the amended 1945 Constitution. The Regional Representatives Council (Dewan Perwakilan Daerah _DPD) The People's Consultative Assembly Article 1 of the amended 1945 Constitution states that Indonesia is a unitary state which has the form of republic with the sovereignty vested in the people and shall be exercised in accordance with the constitution. It was echoed at Indonesian political rallies. The Supreme Court (Mahkamah Agung _MA) 6. According to the amended the 1945 Constitution. According to the amended 1945 Constitution. Pursuant to Decree Number VII/MPR/1998. the assembly is no more the highest political institution in the state.Soon the national song. The Presidency 3. The membership of the Assembly consists of 550 members of the House of Representatives and the number of the members of the Regional Representatives Council.
securing people's regional representation in implementing their duty and authority. The DPD may submit to the DPR bills relating to regional autonomy. and developing a mechanism of check-and-balance between legislative bodies and executive ones and improving the quality. establishment and development of new regions. The Regional Representative Council The Regional Representatives Council (DPD) is a regional representation institution with the status as a state institution.vice-chairmen. Where as the candidates who come from civil servants. and fourth largest number in the concerned province. third. It is established pursuant to Article 22C of the 1945 Constitution and based on Law No. the DPD will also give considerations to the DPR concerning the bills on State Budget and the bills concerning tax. 22 of 2003 on structure and status of the People's Consultative Assembly (MPR). the Assembly has taken the oath of Susilo Bambang Yudhoyono as president. 61 . the requirements and procedures shall be regulated by law. the House of Representatives (DPR). and the DPD members shall be able to be dismissed from their position. relationship between the central and regional government. and he/she is not being an organizer of a political party at least for four years. The establishment of DPD is aimed at enhancing the democratic life. The DPD shall hold session at least once in a year. Electoral region for DPD members are the provinces. and religious affairs and perform surveillance on the implementation of the law and submit the results of surveillance to the DPR. the Regional Representatives Council (DPD) and the Regional House of Representatives (DPRD). Current chairman of the Assembly is Hidayat Nur Wahid. which is counted until the date of submitting the candidacy or have been domiciled for ten years since he was 17 years old in the concerned province. natural and economic resources management which are related to the central and regional finance affairs. and Mohammad Yusuf Kalla as Vice-President. In fulfilling one of its tasks. who reflect the groupings in the DPR and DPD and are elected by and from among the members of MPR in an MPR Plenary Session. The terms of office for the DPD is five years. whereas total number of all DPD members shall not exceed 1/3 (one third) of the number of DPR members. The determination of DPD elected candidates is based on candidates' names who have the first. The DPD consists of regional representatives of the provinces who are elected through general elections. Accordingly. second. should resign themselve from their organizations/offices. the Indonesian Military/Police members. education. Candidates for DPD members should meet the requirements of: having been domiciled in concerned province at least for three consecutive years. which is counted until the date of submitting the candidacy. and the amount of DPD members for each province are 4 (four) persons. productivity and performance of the members of people's consultative/representative's bodies and the regions to realize justice and welfare for the people.
The Presidency In the government system of Indonesia. VII/MPR/1998 regulates that the Chairman of the People's Consultative Assembly is made separate from Speaker of the House. Further. representing political organizations that took part in the general elections which are elected through general elections. the President shall be assisted by a Vice-President. budgetary function. or indecent act. current House Speaker is Agung Laksono. It shall have legislative function. or any other big crime. In carrying out its functions the House shall also have the rights of interpellation. the President is both head of state and chief executive. such as betrayal of the state. The President has the right to submit bills to the House of Representatives and determine Government Regulations to expedite the enforcement of laws. The General Elections Commission has determined seats allocation for the House of Representatives by the amount of 550 seats for 32 provinces in Indonesia. submit suggestions and views. The President and Vice-President can be discharged from office in mid-term by the People's Consultative Assembly. inquiry and expression of opinions. either when he/she has been proved guilty of violating the law. as well as the right of immunity. the President and Vice-President in pair is elected direct by the people. based on the proposal of the House of Representatives. or he/she has been proved to be no longer fulfilling the qualifications of a President and/or Vice-President. According to the amended 1945 Constitution. The President and Vice-President shall hold office for a term of five years and shall be eligible for re-election in the same position only for another term. members of the House shall have the right to submit a bill. 62 . bribery. The House shall convene at least once a year. In exercising his/her duties. Besides those rights it shall have the rights to pose questions. The House of Representatives The total membership of the House of Representatives is five hundred and fifty (550) members. Decree No. and supervision function. corruption.
63 . The findings of the Board are submitted to the House of Representatives. The Supreme Court The Supreme Court and the subordinated judiciary institutions within the realms of the general court. Its main function is to conduct official examinations of government financial accounts. and other authorities accorded by law. the religions court. and to settle disputes on the results of general elections. whose ruling irreversible. They shall exercise the judiciary power. Current chairman of the Court is Bagir Manan. and the Regional Houses of Representatives in accordance with their respective authorities. the Regional Representative Council.South Sumatra Provincial House of Representative Building The State Audit Board The functions of the State Audit Board are outlined in Article 23E of the 1945 Constitution. the material court and the administrative court are independent courts. The Supreme Court. to decide the dissolution of political parties. to review laws against the Constitution. shall have the authorities to hear appeal cases to review regulations below the level of laws to the laws concerned. The Constitutional Court The Constitutional Court shall have the authority to put on trial at the first and final instance. to rule on conflicts of authorities among state institutions whose authorities are given by the Constitution. according to Article 24A of the Constitution. Current chairman of the Board is Anwar Nasution. The Board should locate in the capital of the state and have representatives in every province.
28 of 1999 concerning the Management of State Affairs. monitoring. upholding ethics and morality of the government auditors. including the State Apparatus Scrutiny Scheme. In this context there have been some schemes. there are main activities of the scheme aimed at: developing a transparent and accountable information system on supervision. and the Improvement of Public Services Quality Scheme. the Improvement of Public Services Quality Scheme. improving the information quality of supervision system. which is designed to refurbish the state apparatus institutional and management system in the execution of general governmental task and development focused on the implementation of decentralization which is supported by a more efficient and effective documentary/archival management. and the enhancement of human resources capacity. measures have been taken to include the execution of state apparatus supervision. The Government Apparatus The government apparatus have a decisive role in achieving successful implementations of general government affairs and development activities. which is aimed at enhancing quality. The Court's current chairman Jimly Asshidiqie. and following up transparent internal supervisory results. the institutional and management refurbishment. professionalism and skill of the state apparatus in performing their respective duties and functions in a more optimum way. collusion and nepotism. and reporting. which is intended to improve the quality of public services in various fields of public administration and development in consonance with the system of Governmental Institutions' Performance Accountability in central and regional administrations' working units. Therefore. In addition. and striving efficiency in the inspectorial structure. collusion and nepotism and at the same time improving the role of the Commission Watch on the State Apparatus' Wealth. arranging and developing the system of Governmental Institutions' Performance Accountability as criteria for the success and/or failure of main tasks completion and function of government institutions. which is free from corruption. implementing consistently Law No. The other schemes are: the Institutional and Management Restructuring Scheme. and reinforcing civil servants disciplinary regulations. controlling. respectable state apparatus that are free from cases of corruption. the improvement of public services quality. which aims to realize clean. 64 .It shall also be obliged to rule on the opinion of the House on the assumption of violation by the President and/or Vice-President according to the Constitution. which is integrated with the measure of enhancing the quality of planning.
Pakistan. 1945. Also presences in the conference were Chou En-Lai of China. The conference was attended by delegates from 24 Asian and African countries. In 1955. Nehru of India. 1959 he issued a Decree for the reinstatement of the 1945 Constitution. 1945. Regarding Indonesia's claim to get back West Guinea. the First President On August 18. now Papua that was being occupied by Dutch troops. Soekarno's address before the members of the Investigating Committee for Preparation for Indonesian Independence (BPUPKI) on June 1. outlined five principles called Panca Sila that later on developed to become the nation's basic philosophy contained in the Preamble of the 1945 Constitution. and Nasser of Egypt. This was an important beginning for nonaligned movement. the Indonesia's Committee for Preparation of Independence (PPKI) elected Soekarno by acclamation as first president of the young Republic with Hatta as vice-president.The Indonesian Presidents Soekarno. he ordered to establish 65 . Later the Manifesto became the Guidelines of State Policy. President Soekarno had to his credit the holding of the Asian-African Conference in Bandung. West Java. the day after independence was proclaimed. On July 5. Furthermore. This was followed by his announcement of a Political Manifesto on August 17. his handpicked Provisional People's Consultative Assembly did resolve to make President Soekarno president for life. The initiative was taken by Indonesia. President Soekarno's stance was firm. India. Myanmar and Ceylon (Sri Lanka). In the same year Soekarno succeeded in holding Indonesia's first general election in which 47 political parties contested to elect their representatives for the House (DPR) and the People's Consultative Assembly (MPR).
66 . Diplomatic ties between the two countries. President Soekarno staged a confrontation against it. XLIV/1968. Considering the formation of Malaysia being the British Empire's puppet and satellite government. On the 30th of September 1965 the Indonesian Communist Party (PKI) staged another coup which was however abortive failed by the Indonesian Armed Forces. The negotiations resulted in a resolution of the UN to administer the territory of West Irian for a period of one year to be ultimately officially transferred to the Republic of Indonesia. before passing away in June 1970 Soeharto." This move was bringing some tangible result which led to the negotiations between the Dutch and Indonesian Government in New York under the auspices of the UN to reach an agreement to settle the problem of Indonesia's claim to West Irian or West New Guinea. The people's "act of free choice" later resulted the West Irian's choice to remain with the Republic of Indonesia. 1964. Later. and ordered the army to eliminate all traces of the Communist Party. He also created the "Mandala Command for Liberation of the West New Guinea. At the time Malaysia was ultimately accepted as member of the UN Security Council. that President Soekarno ordered Indonesia's representatives of the UN to quit the organization. Soekarno was put into house detention. pursuant to the Provisional People's Consultative Assembly's Decree No. Major General Soeharto emerged as the strong man of a new regime. the second general election was held. the Second President In July 1971. In March 1967 the MPR formally revoked Soekarno's governing authority and appointed Soeharto acting president.the "People Threefold Command" to liberate it. Indonesia and Malaysia severed as of September 3. and the functional group (Golkar) won 73 percent of the total seats in the House of Representatives (DPR).
The nation's third general election was held on May 2. The Golkar emerged as the winning party at every national election with landslides vote during the New Order government. Adam Malik was elected vice-president. Parallel with this. and took control of 332 seats in the 460-member House of Representatives. the MPR had re-elected Soeharto to the fourth. It had gained success in the national development. sixth. collusion and nepotism. 67 . 1973. Following suit was political crisis since the existing political system was unable to accommodate the dynamism of the aspirations and interests of the community. and seventh five-year term as president. and seventh general election had been held consecutively in 1982. and he handed over the country's leadership to Vice-President B. 1998. The ruling Golkar won 62 percent of the vote. On March 22. sixth. Indonesia under the New Order Government of President Soeharto had shown substantial achievement in many fields. Students' street protests occurred frequently. Even the leadership of the House suggested Soeharto that he should resign.The 960-seat Assembly (MPR) unanimously re-elected Soeharto as president to a second five-year term on March 22. Such economy crisis caused substantial decline in the people's standards of living.J. Soeharto resigned on May 21. 1978 the MPR re-elected Soeharto to third five-year term as president. Finally. Sultan Hamengku Buwono IX was elected vicepresident. 1977. before severe economic crisis that began with monetary crisis hitting the country as of July 1997. 1987. fifth. Pressure against President Soeharto to resign became so strong. Habibie. which had been enjoyed by the majority of the Indonesian people. they demanded political and economic reform as well as resignation of President Soeharto who had ruled the country for more than 32 years and eradication of corruption. The nation's forth. fifth. 1992 and 1997.
J. 68 . 1999. from October 1 to 3. At the conclusion of its session. he formed the Reform Development Cabinet. then the Assembly elected Mr. Golkar Party. Earlier. It was under the Habibie Administration a number of political prisoners were released. 1999. It was under the leadership of President Habibie the country's eighth general election taking place on June 7. During the session the accountability address of President Habibie was rejected. and October 14-21. Hamzah Haz. Habibie. the Habibie's administration reintroduced party system. i. Abdurrahman Wahid secured 373 votes out of the total 691 against 313 votes gained by Megawati. Abdurrahman Wahid after he outvoted four contenders including Megawati Soekarnoputri.e. the United Development Party (PPP) and the National Mandate Party (PAN). the United Development Party (PPP) and the Indonesian Democracy Party (PDI). The MPR held general session in two stages. followed by its major contenders. and Habibie withdrew from his presidential nomination as a candidate from the Golkar Party. The Indonesian Democracy Party of Struggle (PDI-P) got the top of the list. A day after having been inducted as President. freedom of expression by the people and press respected. the National Awakening Party (PKB). composing of various political and social forces. who later was elected vice-president after overcoming Mr.B. including politicians from the two minority parties. by which forty-eight (48) political parties contested the election. the Third President Habibie became the nation's third president.
Even his image started to fade away. DPR and Golkar Party. so he ignored the summon from Parliament to give explanations. But it proved that during his one year and nine months in office he failed to recover the economic as well as political crisis. on July 31. especially when he was suspected to have a connection with the so-called "Buloggate" and "Bruneigate" extortion. the House sent letters of warning in the form of "Memorandum" I and II to him and demanded him to give explanations to Parliament. he is one of the National Awakening Party's founders. 69 . For this. But on the other hand. better know as Gus Dur. President felt his administration had governed in conform with the constitution. Internationally acclaimed moderate Moslem leader. he declared a state of emergency that would be effective as of 6 p. Instead. the Fourth President Abdurrahman Wahid. He started his political career in 1984 when he was elected chairman of the Nahdlatul Ulemas Islamic Organization. the MPR immediately held a special session during which it discharged Abdurrahman Wahid as president and appointed VicePresident Megawati Soekarnoputri the fifth president of the Republic of Indonesia. In respond to the actions made by President Wahid.m. The people's earlier expectations and hope upon President Abdurrahman Wahid to be able to restore the prolonged crisis was high enough. indisputably became Indonesia's fourth president. 2001. and suspended the MPR.Abdurrahman Wahid. Relations between the House and President Abdurrahman Wahid became sour and severe because the House regarded Abdurrahman Wahid failed to execute the constitution properly and to administer good governance.
and two high officials enjoying ministerial level. During her tenure. fair and democratic general elections of members of legislature and President and Vice-President in 2004. 2001. She surrendered the presidential post she served for more than three years. to her predecessor Susilo Bambang Yudhoyono. Megawati _the eldest daughter of Soekarno. 70 . 18 ministers with portfolio. She served his term of office until October 20. 2004. Megawati succeeded in not only improving substantially macroeconomic performance. it was only on August 9. Diah Permata Megawati Soekarnoputri took an oath of office of President of the Republic of Indonesia. the Fifth President On July 23.Megawati Soekarnoputri. maintaining socio-political stability. However. 2001. Her cabinet consists of three coordinating ministers. President Megawati could announce members of her Cabinet named "Kabinet Gotong Royong" (Mutual Cooperation Cabinet). nine state ministers. but also in managing fairly arduous. complicated but peaceful. So far. the first Indonesian president_ and her cabinet have tried hard to first of all stabilize the country and to recover the nation's economy from severe crisis.
and Coordinating Minister for Political and Security Affairs under the Cabinet of Megawati Sukarnoputri before quitting to contesting for the presidency. South Korea and the Netherlands President Susilo Bambang Yudhoyono was proposed to be a candidate for the President. Before becoming President. Under the administration of President Soeharto. Susilo Bambang Yudhoyono was once Minister of Energy and Mineral Resources under the Abdurrahman Wahid Administration. and special envoys from Japan. Broad education and experiences during his military and public services he holds are regarded as his advantages to lead the country to a better situation and condition. and took his oath of office. 2004. was officially inducted by the People's Consultative Assembly. to become the sixth President of the Republic of Indonesia. He graduated from the Military Academy in 1973 before earning a master degree in management from Webster University in the United States of America. the Democratic Party. retired Army general. on October 20. Thailand.SUSILO BAMBANG YUDHOYONO. Brunei Darussalam Sultan Hassanal Bolkiah. replacing Megawati Seokarnoputri following his landslide victory _by garnering more than 60 percent of total valid votes in the nation's first-ever direct presidential election. he was considered among the Army's rising stars and one of the architects of reform in the military. Timor Leste Prime Minister Mari Alkatiri. the SIXth President Susilo Bambang Yudhoyono. Malaysian Prime Minister Abdullah Ahmad Badawi. by his party. The installment itself was also attended by heads of governments of and special envoys from some foreign countries _the first installment of an Indonesian President attended by foreign envoys. Heads of foreign Governments at ending the installment of President Susilo Bambang Yudhoyono were newly elected Australian Prime Minister John Howard. pairing with Mohammad Jusuf Kalla as his running mate. Singaporean Prime Minister Lee Hsien Loong. and recently completing his doctorate with the Bogor Institute of Agriculture. 71 .
H. S. M. Jusuf Anwar 10. Ir. Alwi Shihab Ministers with Portfolios: 4. 14. Listed below is the line up of the cabinet: Coordinating Ministers: 1.E. 2. S. Coordinating Minister for Political.S. Minister of Defense: Prof. Hamid Awaluddin. Ir. 2004 at Presidential Palace. Minister of Foreign Affairs: Dr. Ma'ruf. on 21 October. Marie Elka Pangestu 13. Minister of Home Affairs: H. Dr. Minister of Finance: Dr. 6.I. Nur Hassan Wirajuda 7. Minister of Maritime Affairs and Fisheries: Freddy Numberi 17. and three high officials with status of state ministers.P. State Secretary: Prof. Fahmi Idris 72 . President Susilo Bambang Yudhoyono inducted his cabinet called as the United Indonesia Cabinet. M. Minister of Agriculture: Dr. Minister of Energy and Mineral Resources: Dr. Moh. M. Minister of Trade: Dr. Aburizal Bakri 3. Coordinating Minister for People's Welfare: Prof.S. Minister of Transportation and Telecommunication: Ir. consisting threee coordinating ministers. Yusril Ihza Mahendra 5. Dr. Coordinating Minister for the Economy: Ir.. M.Si. Minister of Justice and Human Rights: Dr. Purnomo Yusgiantoro 11. 9.S. 18 ministers with portfolios. Ir."INDONESIA BERSATU" (UNITED INDONESIA) Cabinet The first Indonesian President elected by direct popular votes. Dr. S. Legal. and Security Affairs: Widodo A. Anton Aprianto. Andung Nitimihardja 12.Hatta Rajasa 16. Minister of Forestry: H. Minister of Industry: Dr. Minister of Manpower and Transmigration: Drs. 15. Juwono Sudarsono 8. 11 state ministers. Kaban.
A. Muhammad Yusuf Asy'ari. Maftuh Basyuni 23. M. MADD.E. State Minister for Youth and Sports: Adhyaksa Dault.. M. Djalil.Si. 33. S. Rahmat Witoelar 27.B. M.H.. A.Si. Minister of Public Works: Ir. 32. M. State Minister for Women Empowerment: Dr.Si. Minister of Social Affairs: Dr. Minister of Health: Dr.A. Jero Wacik. Dr.B.K. Meutia Farida Hatta Swasono. State Minister for State-Owned Companies: Sugiharto.A. 21.A. Fadilah Supari 20. Bachtiar Chamsyah 22. S.H.E. M. Kusmayanto Kadiman 25. M. Sofyan A. Taufiq Effendi. Saifullah Yusuf 30. State Minister for National Development Planning/Chairman of the National Development Planning Board: Dr. State Minister for Environment: Ir. 73 . 29. M. State Minister for Cooperatives and Small/Medium Enterprises: Drs. 34. Suryadarma Ali. S. Minister of National Education: Prof. State Ministers: 24.. State Minister for Communication and Information: Dr. Bambang Sudibyo. S.. 26. H. State Minister for the Accelerated Development of Disadvantaged Regions: Dr. S. State Minister for Administrative Reform: Drs.S. Minister of Religious Affairs: M. State Minister for Public Housing: Drs. M. 19.. 28. Joko Kirmanto.E.H.. Minister of Culture and Tourism: Ir.A.18. Dipl. State Minister for Research and Technology: Dr. H. Sri Mulyani Indrawati 31.
and the formation of an independent Professional Certification National Body. illegal fishing. and the provision of sufficient attention over the establishment of courts for corruption criminal acts. to augment the nation's resilience against terrorism. and the reform of governmental administration system (bureaucracy). and building and fostering trust among inter-communal groups in those places.H. However. M.H. to uphold law enforcement at the country's territorial waters. The program also urges on the maintenance of conducive situation during the commemoration of religious events of Idul Fitri (Islamic feast at the end of the Ramadhan fasting month) and Christmas. contains concrete measures to respond to public high expectations over the government of the newly inducted President Susilo Bambang Yudhoyono. the cabinet's middle-term development program itself is scheduled to be introduced to the House of Representatives in January 2005 to be made into a law. Meanwhile. and the anticipation of possible floods during the rainy season (October 2004-March 2005). S. such as in Mamasa (West Sulawesi). and creating a tranquil situation in some conflict-torn areas. Other activities are to cope with separatist movements in the provinces of Nanggroe Aceh Darussalam and Papua. the payment of Idul Fitri and Christmas allowance. the close monitoring over some organizations that possibly do massive lay-off. personnel. They include maintaining security and order.. and on the review of the 2005 State Budget. a number of urgent matters that are considered routine and already going on well are excluded from the 100-day program. the 100-day program impels on the prudent execution of the 2004 State Budget. and to combat illegal logging. an inseparable part of the Cabinet's middle-term development program for the next five years. Regarding macro-economy. that have the potential to retrieve embezzled state money. Prominent in the short-term program is the eradication of corruption. Poso. Attorney General: Abdul Rahman Saleh. and smuggling of sea-sand and tin-sand. The short-term program covers a wide-range of activities in many fields. On the creation of job opportunities and the protection of workers.High-ranking Official with the Status of State Minister: 35. The 100-Day Working Program of "Indonesia Bersatu" Cabinet The United Indonesia Cabinet's 100-day working program. the protection and the repatriation of Indonesian migrant workers from Malaysia. including serious handlings of corruption cases. the formation of a commission tasked to control public prosecutor offices. 74 . on their authorities. and finance. North Maluku. and to fight terrorism as well as to improve institutional bodies dealing with terrorist acts. the 100-day working program puts emphasis on the improvement of regulations and ministerial decisions to make them capable of creating a more flexible manpower market.
the 100-day working program puts emphasis on the improvement of regulations and ministerial decisions to 75 . On poverty alleviation. and the protection of manufacturing industrial establishments as well as the encouragement of industrial establishments in the regions. Susilo Bambang Yudhoyono takes official oath as President of the Republic of Indonesia before the Assembly Touching on health care. the program seeks to enhance the provision of various tax incentives and trade facilities for business players. and the purification of drinking water. Last but not least. and the establishment as well as equitable distribution of educational facilities and infrastructures. the program encourages the improvement of hajj pilgrimage services and the provision of free meals for nine days during the pilgrimage in Saudi Arabia. On the creation of job opportunities and the protection of workers. the program stresses the review of regional regulations and taxes which are considered impeding investment. and the improvement of competitive edge of industrial products. and the protection of small-scale depositors. the improvement of educators' professionalism. As far as the business world is concerned. the provision of qualified skills and entrepreneurship education. the program aims on the provision of free-of-charge health care services by third-class hospitals. In dealing with education. and the reform of governmental administration system (bureaucracy). the program spurs the Cabinet on the provision of access and guarantee on rights over land plots for people belonging to economically-weak bracket.On investment. the program drives for the improvement of the implementation of the nine-year compulsory education system. commission tasked to control public prosecutor offices.
and the purification of drinking water. the program drives for the improvement of the implementation of the nine-year compulsory education system. the program aims on the provision of free-of-charge health care services by third-class hospitals. the program encourages the improvement of hajj pilgrimage services and the provision of free meals for nine days during the pilgrimage in Saudi Arabia. Last but not least. the close monitoring over some organizations that possibly do massive lay-off. the payment of Idul Fitri and Christmas allowance. and the formation of an independent Professional Certification National Body. and on the review of the 2005 State Budget. On poverty alleviation.make them capable of creating a more flexible manpower market. Regarding macro-economy. the program stresses the review of regional regulations and taxes which are considered impeding investment. the program seeks to enhance the provision of various tax incentives and trade facilities for business players. the program spurs the Cabinet on the provision of access and guarantee on rights over land plots for people belonging to economically-weak bracket. On investment. the 100-day program impels on the prudent execution of the 2004 State Budget. 76 . and the protection of small-scale depositors. As far as the business world is concerned. the provision of qualified skills and entrepreneurship education. In dealing with education. the protection and the repatriation of Indonesian migrant workers from Malaysia. Touching on health care. and the improvement of competitive edge of industrial products. and the establishment as well as equitable distribution of educational facilities and infrastructures. and the protection of manufacturing industrial establishments as well as the encouragement of industrial establishments in the regions. the improvement of educators' professionalism.
President Susilo Bambang Yudhoyono Vice-President Mohammad Jusuf Kalla Members of the United Indonesia Cabinet pose for a photograph in front of Merdeka Palace 77 .
Dumai from previously a fishing village to a modern town 78 .
and the Special Management of Aceh. Pursuant to Law No. the Housing Development scheme. namely the regional autonomous development program. the Social-Organizations Promotion scheme.REGIONAL DEVELOPMENT Policy on regional development underlines the development of regional autonomy focusing on the creation of balance in financial proportion between the central and regional administrations. 25 of 1999 and Government Regulation No. Papua. the continuation of reformation and democratization. concrete. 25 of 1999 on Financial Sharing between the Central and Regional Administrations meanwhile governs the regional governments in performing their tasks. the Regional Financial Development scheme. enhancement of competency of regional government apparatus. the Consolidation Phase during the period of 2004-2007. and Maluku. has been so far formulated through phases consisting of the Initiation Phase in 2001. In implementing the policy on regional development. 25 of 2000 regulates. 22 of 1999 on Regional Administration and Law No. as well as the potentiality and plurality in the provinces. the allocation of profit-sharing fund of oil and gas for regional administrations is determined at 15 percent and 30 percent respectively from the revenue after taxes. The regional development comprises the Regional Government Apparatus Promotion scheme. the Development scheme of Areas at Borderlines with few neighboring countries. the Strategic Areas Development scheme. which is pursuant to Law No. measures adopted as of 2001 included the maintenance of the nation's unity and integrity. area development program. and the Stabilization Phase after 2007. 22 of 1999 on Regional Administration allows extensive. the allocation of profit-sharing fund from oil and gas for the province is 70 percent each. the Development scheme of Spatial Management. the Rural and Urban Development scheme. the Community's Alertness Promotion scheme. and empowerment of the Regional Houses of Representatives or regional legislative bodies. the Lessdeveloped Areas Development scheme. improvement of managerial institutions of regional administrations. and are divided into four major programs. Papua. Law No. and special development program for the provinces of Nanggroe Aceh Darussalam. the Land Management Development scheme. The decentralization policy. empowerment of communities program. and Maluku. equality and justice. the Non-Governmental Institutions Promotion scheme. the Regional Economic Development scheme. people's participation. and responsible execution of regional autonomy based on the principles of democracy. the Regional Government Institutions Development scheme. The policy covers 20 regional development schemes as Law No. 25 of 1999 on Financial Sharing between Central and Regional Administrations. and the improvement of regional economy. but in nine years the ratio will be 79 . the Installation Phase during the period of 2002-2003. betterment of personnel and public service management. the Empowerment of Poor People Development scheme. Law No. Pertaining to the Province of Nanggroe Aceh Darussalam (NAD). 104 of 2000.
Revenues apportioned for provincial and local governments are derived from taxes and natural resource revenues. agriculture.e. Chapter 7 of Law No. politics and economy that need fast and accurate response. to the President through the Minister of Home Affairs. to maintain the integrity of the Unitary State of the Republic of Indonesia. With 80 . to the Regional House of Representatives (DPRD). That reposition has also influenced the regional administration accountability which is previously is in vertical manner. just and equitable. except those of defense foreign policy. significance and capacity to execute the authority. communication. environment.reduced to 50 percent each. cooperatives and manpower. According to the law. 22 of 1999.e. a slight decrease from that of 2001 which was 32. 22 of 1999 concerning Regional Administration has caused changes in the paradigms that contained in the concept of regional autonomy. land affairs. and thirdly. filling the position of head and deputy head of regions and policy making concerning the region. the accountability will become horizontal. such as regional administration construction. in which the general allocation fund is fixed at a minimum of 25 percent of net domestic revenue minus profit-sharing fund and special allocation fund derived from reforestation fund. Article 7 of Law No. 22 of 1999 on Regional Autonomy are: first. District/city or municipality up to the province will manage their regions according to its relevance. to enhance people's participation. Further. industry and trade. 25 of 1999 regulates the ratio of budget between Central and Provincial Governments. fiscal and religious affairs.8 percent of central government expenditures for provincial and local governments. self-reliant. The reposition and redefinition of government administration in the region shall be understood clearly to reach the goals of the regional autonomy. secondly. based Law No. as regulated in Law No. exploring regional potentials in the process of the development which is based on the principle of democracy. Meanwhile. 22 of 1999 concerning Regional Autonomy covers some regional administration instruments. the regional administration will receive some power delegation or decentralization from the central government. which is still processed creatively in line with temporal change. 2 of 1999 says that the authority of the regional administration covers the authority in all government aspects. The background and goals of which underlaid the writing of Law No. i. education and culture. The regional autonomy gives a greater role and participation of regional (district) administrations to manage their regions. head of region accountability. health. and to promote a dynamic sense of unity and cohesion. monetary. and conversely decrease the role and participation of province and central government. investment. The change of this function and role. The 2004 state budget allocates some 31. Subsequently. Regional Autonomy The implementation of decentralization and regional autonomy policy based on Law No.2 percent. the authorities to be executed by a regional administration are among others: public works. to give an extensive autonomy to the region in anticipation of the rapid growth of social affairs. i.
oil and gas mining and natural gas. In the case. In line with the principle of justice. along with 80 new district administrations to total 349. and with Timor Leste in East Nusa Tenggara. still not definitive border marks. Developing Less Developed Areas Disparities. The areas that also receive development priority are of areas near and along the borderlines with the neighboring countries such as with Malaysia in Kalimantan. Regional developments are among other things aimed at addressing and dealing with such unfavorable conditions and simultaneously boosting regional economic growth rate. The central government has also given share to the provinces state revenues from the exploitation of natural resources of forestry. the share will be divided not only to the producer-region. general mining. with Papua New Guinea in Papua. both in the from of average and proportional computation. In fact there are some problems to deal with seriously among other things: a lackluster of control due to primarily unavailability of sufficient infrastructures and facilities. between those of relatively moredeveloped urban areas and the relatively less-developed rural areas. the provincial tax revenue will be shared with the districts/cities or municipalities. Also conditions hampering the development of the areas are limited domestic funds to 81 . several provincial and local (district and municipal) administrations came into being. the region will also receive fund from the State Budget (APBN). fishery. Up to 2004 there have been six new provinces added to the system to make the country's total provincial governments 32. and six new municipal administrations to number 91 in total. will be given to the region. with the distribution of 8 percent for the province and 12 percent for districts/cities. Besides taxes. improving economic infrastructures and facilities etc. unavailability of integral national policy to develop areas along the borderlines and of coordination between the central and regional administrations.these new procedures. while the 10 percent of the central government share will be distributed back to the region. of the less-developed areas to make them on par with the relatively more-developed areas. Meanwhile. but also to the non-producer regions that are situated in the neighboring areas within the province. the regional administration will receive all fund received from Tax on Land and Building (PBB). particularly in economic and welfare term. including regional gross domestic products (RGDP). 20 percent of personal income tax and corporate income tax. it is hoped that the supervisory function of the legislative will run smoothly In the regional autonomy. and between the relatively advanced Java Island and the less-advanced outer-Java. the General Allocation Fund (DAU) and the Special Allocation Fund (DAK) Expansion of Regional Administrations Parallel with on-going political dynamism of development and in accommodating public aspirations. are tangible and common between the relatively more-developed regions in the country's western part and the relatively less-developed regions in the country's eastern half. and were put into the state system.
and economic institutions and non-governmental organizations. to arrange spatial management of land and seas at border areas. the Philippines. to improve bilateral cooperation with neighboring countries in the fields of security. and East Nusa Tenggara. including to set out integrally development of border areas. rampant smuggling of people and natural resources. welfare disparity between domestic people Downtown Palembang city. there have been action plans to be executed. as well as to better infrastructures and means of transport. Therefore the main aims of the development of areas near and along the borderlines are to improve the living standard of the people of these areas. Papua. limited availability of infrastructures and facilities in offices of local security. to promote potential resources the areas near borderlines have. such as in Kalimantan. Papua New Guinea. immigration and custom and quarantine offices. to enhance managerial capacity to exploit potentialities the border areas have. immigration and custom as well as quarantine services. To achieve such conditions. the organization of bilateral meetings with some foreign parties from neighboring countries like Malaysia. to encourage the development of growth centers at areas near and along borderlines. and to improve infrastructures and means of security. and Timor Leste through various fora. education and health. and crossing points. South Sumatra living along the borderlines and those across such as in Kalimantan. to empower socio-political. and to maintain the areas' security and order. the execution of economic cooperation through investment for development of special areas in the districts within the Provinces 82 . to maintain the security and order at border areas. bilateral cooperation still takes the form of ad hoc nature and valid for certain areas. economy and management of natural resources and environment. including the complete arrangement of measures and strategies as well as planning of spatial management of areas near borderlines. Up to 2004 some regional development programs have been carried out.accompany foreign investment.
and Maluku. and the improvement of welfare of the Papuan people. and the Law has been socialized to people at large. the lackluster implementation of Law No. 21 of 2001 on Special Autonomy of the Province of Papua. In dealing with such unfavorable situation and condition. and status of special autonomy run normally as they should. have introduced the development acceleration schemes to make the province more conducive to allow all aspects of life including legal certainty. 83 . and the good functioning of local governmental institutions to provide public services in the context of maintaining security and order.. Regarding the province of Papua. thus impeding almost all development activities. 18 of 2001 on Special Autonomy Status for the province of NAD crippled and ineffective. So far. to settle more quickly cases of human rights abuses.of West and East Kalimantan under the Malindo socio-economic framework. ISSUES ON THE PROVINCES OF ACEH. The main goals of the scheme are the availability of qualified human resources. and hampering the development and rehabilitation of transport infrastructures and facilities as an important economic mover. rather less-developed socio-culture of native tribes. causing the implementation of Law No. for instance there are some regional regulations adopted to support the implementation of Law on Special Autonomy Status of NAD. the Central Government along with the Provincial Administration of NAD. and improving welfare and justice. A main problem the province of NAD administration has been facing is on security matters caused by a rebellious armed movement calling themselves the GAM (Gerakan Aceh Merdeka the Aceh Freedom Movement) that has hampered the province's socioeconomic and administrative activities. its geography that is rather too rough to facilitate the development of economic infrastructures and facilities. The security problem has also forced many people to flee to more secure and tranquil areas. etc. and peace. and information and charts of areas along borderlines and the most outer islands and islets have been made available. the settlement of cases of human rights abuses. The main aims of the development acceleration scheme are to encourage the local people to take part more actively in development activities. and many others. to improve the capacity of the local governmental institutions. and between the Indonesian Armed Forces and the rebellious armed group of OPM (Free Papua Organization). and to expedite the implementation and operation of Law No. 21 of 2001 on Special Autonomy of the Province of Papua. PAPUA. the schemes have been bearing fruit. human rights. things that to some extent impede developments in this province are among other things unfavorable condition and situation of internal security and order due to frequent armed conflicts among tribes. Papua or Irian Jaya. At the same time database on areas along borderlines have been composed and built up. AND MALUKU The national issues the Government has been giving serious attention to are those pertaining to problems of security and order in the provinces of Nanggroe Aceh Darussalam (NAD).
Under the scheme and with the issuance of Presidential Instruction No. to recover socio-economic life. to intensify religious guidance and preaching. and to grant financial assistance to refugees. to restore damaged infrastructures and facilities of education and health as well as to activate schooling. Nanggroe Aceh Darussalam Province It is hoped that under the scheme Law No. and to recover comprehensively the feeling of the local people from traumatic insecurity and gross fear of previous bloody social conflicts. the local socio-economic conditions has been showing an encouraging trend. regional administrative services run more effectively and efficiently. The goals of the scheme are the resumption of normal life of the local people and the refurbishment of socio-economic as well as public infrastructures and facilities. etc. Meanwhile the main aims of the development acceleration scheme for the provinces of Maluku and North Maluku are to maintain security and order. 84 . marked by the lifting of civil emergency status. and the normalization of local governmental administrative activities. and their education level advances. 6 of 2003 on the Post-conflict Accelerated Development Recovery for the province of Maluku and North Maluku. development activities go well as they are planned. the welfare of the local people improves meaningfully. and the people's health condition sound. the people's economic activities flourish. 21 of 2001 would serve as it is envisaged.One of supermarkets available in Banda Aceh. etc. to strengthen the communities' resistance against any provocation from within and without. including schooling for children in refugee camps. and to normalize the life of the local people through dialogues and peaceful agreements. The scheme has been designed as well to reconcile the hostile parties. as well as the settlement of cases of human rights abuses. the growing number of refugees who have returned to their hometowns or villages.
there are Law No. 25 of 2003 concerning Money Laundering Criminal Acts has been put into force. there has been put into force Law No. 30 of 2002 concerning Commission for Corruption Crime Eradication. to be executed through four development programs: the Legislation Formulation Program. and replacing statutory regulations inherited from the Dutch colonial government as well as discriminative laws. there are Law No. etc. Regarding money laundering. low-cost operations. As regard to judicial authority. to manage fast. to continue ratifying international conventions. Law No. Pertaining to human rights. to improve moral integrity and professionalism of law enforcers. suitable with the need and interests of the nation. 17 of 2002 on Amendment to Law No. supportive means and facilities. and corruption-collusion-and nepotism-free judicial process by upholding the justice and truth principles. In relation with the legislation formulation program. to cultivate the public's trust in them by improving their welfare. 19 of 2002 on Copyright. to arrange a comprehensive and integrated national legal system by recognizing religious and traditional laws. the 1999-2004 Guidelines of State Policy gives directions to promoting legal affairs as follows: 1) to develop legal culture to all levels of society to make them have legal awareness and obedience within the frame of upholding law supremacy and a law state. 14 of 2002 on Tax Tribunal. 30 of 2000 concerning Trade Secrecy. to uphold consistently regulations to secure legal certainty and respect to human rights. and to promote the protection. 5 of 2004 on Supreme Court. 7 of 1983 concerning Income Tax as well as Law No. education and control. 31 of 2000 concerning Industrial Design.THE LAW Legal developments during the recent years have been focusing on the promotion of law supremacy and improvement of good governance. 15 of 2001 concerning Trademark. and Law No. Law No. In the context of reinforcing law supremacy. and the Program for the Enhancement of Legal Awareness and Development of Legal Culture among the People. 3 of 2004 on Amendment to Law No. Law No. Law No. Law No. On intellectual property rights. Collusion and Nepotism and Human Right Abuses. several laws have been enacted. to nurture legal understanding and consciousness. respect to and enforcement of human rights in all aspects of life. among other things Law No. 32 of 2000 concerning Integrated Circuit Lay-out Design. 24 of 2003 on Constitutional Court. to develop statutory regulations conducive to economic activities in facing the free trade era without hampering national interests. On monetary and tax. Law No. 14 of 2001 concerning Patent. including the Police of the Republic of Indonesia. and to settle completely various judicial processes on unsettled abuses of laws and human rights. 23 of 1999 concerning Bank Indonesia (Indonesia's Central Bank). including those related to gender. and Law No. the Empowerment of Judiciary and other Law Enforcement Institutions Program. 1 of 2000 on 85 . a number of laws pertaining to various areas have been enacted and promulgated. 4 of 2004 on Judicial Power. Law No. the Program for the Settlement of Cases of Corruption. to realize independent legal institutions that are free from interference by any party whatsoever. particularly those pertaining to human rights. So has Law No.
3) law on the Constitutional Court. studies have been done to cover five issues: 1) legal matters on economic reform and regional autonomy. 86 . 26 of 2000 on Human Rights Court. and Legal Aspects of Credit Reconstruction in stimulating the real sector. and Amendment to Law No. So far there are 321 legal technical organizing units. on Banking Reconstruction. various activities have taken place to include promotion of public courts and state administrative courts at central and regional levels. and 399 permanent court halls. 50 justices have been appointed under crash-program recruitment to fill the posts in those areas. Legal Aspects of the Settlement of BLBI (Bank Indonesia Liquidity Support) by banks. In the context of developing the national legal system. It has been endeavored as well to arrange bills on Police Acts against Legislators.773 justices. In overcoming the shortage of justices in conflict-torn areas. improvement of legal service facilities at central and regional levels. has been lifted. On immigration matters.000 in their possession when entering Indonesia.Ratification of International Labor Organization Convention No. a special measure has been adopted that allows citizens of the People's Republic of China wanting to visit Indonesia to get visa from all Indonesian representative offices abroad without prior approval from the Directorate-General of Immigration of the Republic of Indonesia. and Law No. improvement of trainings for justices. In addition. on Ombudsmen. manned by 2. by among other things setting up 13 special correctional institutions for drugs convicts in 13 cities and towns. 4) laws on foreign investment in the framework of the World Trade Organization. In addition. 154 justices have been assigned to 47 courts of first level in those areas. of immigration and customs. 9 of 1990 concerning Tourism. 182 (concerning the Prohibition and Immediate Action For the Elimination of the Worst Form of Child Labor). and projects planning and control. legal assistance. In addition. on State-Owned Enterprises. promotion of correctional institutions. and 5) laws on private court in the system of free foreign exchange. 2) direct election of president. Much more attentions have also been given to the fight against the drugs abuses. the obligation for visitors from troubled countries to show US$ 2. In view of empowering judiciary and other law enforcement institutions. legal researches have been conducted to include Legal Aspects of the Implementation of the Rights of the House of Representatives in the context of controlling government management.
it has been officiated villages with high awareness of legal matters in West Sumatra and East Kalimantan. Medan. 39 of 1999. Promotion of human rights has been giving stress on efforts to protect the rights of women. to displays.807 special criminal cases including corruption cases. 2 of 2002 concerning Procedure for the Protection of the Witnesses and the Victims of Serious Abuses of Human Rights.Human Rights Under Law No. 14 of 2003 on Compensation. In relation with the Human Rights Court. In line with this. This is to add to Law No. Eradication of Corruption Endeavors to establish good and clean governance have been persistently sought out by among other things preventing and eradicating the practices of corruption. and Government Regulation No. labors. and put into force the burden of reverse proof by keeping on abiding the principle of presumption of innocence. In line with this. 26 of 2000. The legal promotion has taken place in various forms from dramas broadcast by radio and television. During the period of 2001-2004. and Makassar. had adjudicated 24 cases of serious human rights abuses. 87 . namely 18 cases in East Timor. four cases in Tanjung Priok incident and two cases in Abepura (Irian Jaya or Papua) incident. disabled and minority people. and respect to human rights.099 cases had been adjudicated. In this context. 30 of 2002 on Corruption Crimes Eradication Commission has been enacted and put into effect. This law in principle accommodates conventions of Rome Statute that contains definitions of international crimes such as genocide and crime against humanity. 20 of 2001 on the Eradication of Corruption Crimes that broadens the meaning of corruption crime. collusion and nepotism. there have been issued as well Law No. of which 1. the Office of Attorney General etc. under Law No. Further. Restitution. children. During the period of 2001-2004. the Human Rights Court is established. Under the Law. the Human Rights Courts. Evaluation and assessment of the legal promotional activities have been regularly made. available only in Jakarta. to promote the public's legal awareness. has been active in maintaining cooperation and coordination with other related bodies such as the Police. the Commission has been in operation. etc. and Rehabilitation to the Victims of the Crimes of Human Rights. the Ministry for Law and Human Rights as the official institution that is concerned with the matter. and even investigating six big corruption cases involving government officials. the Offices of Immigration and Customs. the National Commission on Human Rights came into being to among other things promote and maintain human rights and help settle human right cases arising in the public. the Attorney General handled 1. Law No.
and Nepotism. visual displays for education and science. the FATF determined that the previous law on Money Laundering still contained weaknesses. Application of Copyrights Law Law No. in addition to lackluster of the intelligence function. 522 cases in the phase of prosecution. July 29. The Attorney General had handled 733 cases of corruption crimes in the period of January 2002 to April 2003 in the phase of investigation. cinematography. Law on Anti-Money Laundering In its Plenary Session on September 16.It is realized that there are still difficulties for law enforcers to handle cases of corruption. so far the steps have been taken for the supervision of special cases in relation with cases handling. 318 in the phase of appeal. architecture. Meanwhile. the Ministry of Justice and Human Rights has established the Steering Committee for the Preparation of Appointment of Membership of the Corruption Crimes Eradication Commission. The amendment of these five articles is important because these will be one requirement for Indonesia to be exempted from the sanctions of Counter Measures from the countries involved in money laundering eradication grouped in the Financial Action Task Force on Money Laundering (FATF). books. 502 cases in the phase of appeal to the Supreme Court. To eradicate KKN optimally. It must be admitted that the eradication of Corruption. 16 of 2003 on Eradication of the Crimes of Money Laundering. 2003. in coordination with the Indonesian Police. in the short term has made priority to eradicate film and song piracy. Collusion. and 38 cases in the phase of judicial review. batik arts. collusion and nepotism as well as abuses of human rights due to primarily the lack of public trust over law enforcers for there are still many cases left unsettled. putting investigators and attorneys on unfavorable situation to gather sufficient corruption-related proofs. Five important articles from the previous law were amended as the efforts to prevent money laundering parties. songs or music. primarily in the Attorney General Office. Previously. authority delegation. Preferring to the Law on Copyrights. art works. the Government has enacted Law No. speeches and lectures material. 30 of 2002 on Corruption Crimes Eradication Commission. (KKN) has not been executed optimally. 88 . The Ministry of Justice and Human Rights. In line with KKN eradication in the law enforcement field. to follow up the law aforementioned. and translation or interpretation. other property works that have also been admitted are computer program. 6 cases in the phase of resistance. 2003. photography. accountability and transparency. the House of Representatives agreed to enact Law No. 19 of 2002 on Copyrights started to take effect as of Tuesday. drama. Films and songs have been included as intellectual property. which is estimated to have caused the state losses of Rp8 billion every year.
corruption. By tightening money laundering action. financial fraud. — To extend the definition of money suspicious money transaction. it is hoped to narrow the terrorism actions. — To regulate international cooperation in the form of reciprocal legal on problems of money laundering handling. — The period of reporting suspicious transactions has been shorted from 14 work days to three work days. as well as a realization of Indonesia as a member of the international community to participate in narrowing the action space of crimes and as an effort to prevent and eradicate money laundering. or smuggling. The United States and other developed countries believed that the biggest sources for terrorist fund had come from dirty money resulted from narcotics trafficking. 89 . — To prohibit financial service institutions and authorities not to leak the transaction reports. The enactment of the bill into law shows Indonesia's commitment to adjust the regulation on prevention and eradication of money laundering crimes to international standard. 2001. The five articles of the amendment of Law concerning Money Laundering Crimes are: — To eliminate the minimum requirement of Rp500 million to be categorized as a crime of money laundering.The fight against money laundering action has been boosted since the tragedy of bomb blast at the World Trade Centre (WTC) building in New York on September 11.
ECONOMY General feature Entering the year of 2004.77 percent. particularly in pursuing the improvement of investment and exports. a continued easing of inflation environment. agricultural sector at 2. lower than 10 percent in 2002. Fairly conducive and stable monetary condition as indicated chiefly by the strengthening of rupiah (the country's currency). meaning it was returning to the level reached before the monetary crisis in 1997. of which its recovery assumptions of the real and macro-economic sectors to be attained have been defined through the 2004 State Budget. which ran smoothly without even a single incident. As a matter of fact.y). This will certainly promote a sustained economic recovery with more favorable condition. lower than that of 13 percent at the beginning of the year. Export value reached US$61.6 percent (y.5 percent. Bank Indonesia's benchmark interest rate was 8.3 percent. Moody's. investment at 2.8 percent. the country's macro-economy was enjoying a heartening and significant improvement. More heartening are the implementations of the country's legislative general elections and the direct presidential election in 2004. boosting foreign trust to invest in Indonesia. following the maintaining of more favorable political and security conditions. economic growth was recorded at 3. 90 .8 percent. in the context of anticipating the post IMF program. Thanks to sound achievements of the country's macro-economy during the year of 2003 the best achievement since the crisis hit the country in the middle of 1997. particularly for the year 2004. the Government formed a National Team for Export and Investment Improvement assigned with three tasks: to formulate general policy for export and investment improvement. The better performance of economic indicators in 2003 should certainly become the stable basis for more improvement of economy on 2004. and manufacturing sector at 3. and international foreign exchange reserve stood at US$36 billion. Those assumptions are among other things: economy is projected to grow at 4. an international ratings agency. has upgraded the country's sovereign rating from CCC-to B+. The performance has become a solid basis for economic development in the future. and controllable base money.18 percent compared to that of 2002. sufficient for exports during seven months. inflation in 2003 stood at 5. Non-oil and gas export value showed an increase of 5. Still. Rupiah exchange rate was stable with strengthening trend. and to examine and decide settlement for crucial problems when they arise in the process of export and investment improvement. More hearteningly. to determine measures required to improve export and investment.1 percent in 2003. In 2002.3 percent (in December 2003).02 billion or US$5 billion in average per month. had indeed attributed to moderate economic growth of 4.o.
S. the economy in 2003 proved tough enough to grow moderately at 4.5 percent.5 percent in average. to continue the strive for poverty eradication and creation of job opportunities through human resource quality improvement towards Millennium Development Goals. to secure the implementation of the 2004 general elections from the economic point of view. Further. the year 2003 also saw the dissolution of the National Bank Restructuring Agency (BPPN) and the termination of the IMF's Extended Fund Facility.3 percent. better economic stability as the national result of better representation system in national. the government debts to gross domestic product (GDP) ratio is expected to be 60. The Government then issued an economic policy package called the "White Paper" (Presidential Instruction No. to execute strategy of growth based on competitive edge improvement through investment and exports. oil price per barrel at US$22. to further strengthen the financial sector. namely: to maintain continuous economic recovery and reform in the first year after the termination of the IMF's Extended Fund Facility to nurture external and internal credibility. and to improve the climate of investment. Bank Indonesia's three month-notes (SBI) at 8. The decrease is chiefly due to the payment of principal and interest of foreign debt. lower than that of 2003. general elections to elect members of legislative bodies and the direct Presidential Election. inflation rate is projected to stand at 6. Meanwhile.500. much better than that of 2003 which was 66.15 million barrels. impeding the country. and better economic development which takes social-welfare into account. In the context of achieving the matters mentioned above. provincial and district/municipal legislative bodies. the post 2004 general elections is expected to give contributing achievements as follows: improvement of economic growth. to boost more growth of the 2004 Gross Domestic Product for the sake of the people's welfare improvement in the whole.4 percent. the Bali bombings and the Marriott Hotel bombing.In line with the improved macro-economy. and to maintain sufficient supply and distribution of basic materials throughout the country. exports and job opportunities. enhancement of quality of economic growth as the result of political and public accountability improvement. The country's foreign exchange reserve is projected to reach US$34. Economic Growth (GDP) Despite SARS endemic and terrorist attacks.7 percent and even higher than 91 . the Government has determined economic priority programs for the year 2004. 5 of 2003) on September 2003 with its principal targets: to build on the macro-economic progress. In addition. Economic Prospects The 2004 General Elections i. to anticipate the possibility of accelerating the 2005 State Budget drafting in connection with the implementation of the 2004 general elections. by maintaining economic activities in order that market of goods and services.e.4 billion. which stood at US$36 billion. and crude oil production per day at 1. would truly encourage the increase of expense and demand for goods and services in bulk. and to encourage the application of good corporate governance. capital market and labor market run normally.1 percent. higher than that of 2002 by 3. Rupiah exchange rate against one U. dollar at Rp 8.
Non-oil and gas GDP in March 2004 grew at about 24. While oil and gas GDP in March 2004 decreased by 12.4 billion in March 2003 going down to Rp 45.2 percent and 5 percent.5 percent. namely from Rp 51.3 percent and 4. Economic growth for the first quarter of 2004 was estimated to hover between 4.36 percent compared to that of March 2003. 10. 6.1 million rupiahs or about US$968. Viewed from economic industrial sectors' contribution to GDP in 2003.530. Consumption was expected to grow by between 4. to reach Rp 506. though has not yet reached the level before the monetary crisis in 1997. meaning an increase of 24. other sectors such as electricity. and in March 2004 at Rp 551. gas and drinking water.5 percent and 3.39 percent from services. from 6.6 million rupiahs in 2002. The value of GDP at 2000 constant prices in 2003 was estimated to reach Rp444.265.22 percent from utility.777.7 trillion. which was estimated at 3. is expected to contribute almost a quarter of GDP.2 percent.6 percent.7 percent.49 percent.164. The country's GDP at current prices in March 2003 was recorded at Rp 451. per capita income in 2003 noted an increase of 2.6 percent. By sactorial fronts.29 billion. Economic growth without oil-and-gas was recorded at 4.58 percent in 2002. 10.85 percent and 1. the GDP per capita for Indonesians notes an increasing tendency. Based on 2000 constant prices. and without oil-and-gas was Rp412. though predicted to grow by 2. 16. Income per Capita Parallel with the improved economic situation as macro-economic indicators showed. 92 . and export between 2. the biggest contribution to GDP in 2004 is still expected coming from the sectors of manufacture and agriculture.88 percent from finance.58 percent from agriculture.8 billion compared to that of March 2003. Agriculture is expected to contribute some 16 percent. Manufacture.8 billion in March 2004.5 percent.00 percent from construction. 6.5 percent. some 24. and 2. 16. In 2003 per capita income at current prices grew to 7.25 percent from transport and communications.32 percent from trade.6 billion.5 trillion.70 percent from mining.global economic growth.376.65 percent originated from manufacture. which is predicted to grow at only 3. hotel and restaurant as well as transport are expected to post an increasing contribution. Except mining. trade. construction. The estimated growth was expected to be underpinned by higher fair growth of exports and consumption. 6.
18 percent surpassing the targeted 5 percent to reach US$47. and Singapore for 9. In April 2004. The increase of exports in April 2004 was attributed to the growth of non-oil and gas exports by 3.94 percent from those of March 2004.63 percent to reach US$13.18 percent.21 billion. When entering the year 2004.Jakarta International Container Terminal that plays an important role in importing-exporting activities Exports Exports continue to show a heartening development. compared to that of January 2003. The value of non-oil and gas exports in 2003 grew by 5. increasing by 2. Export value in May 2004 even reached US$5. They accounted for 13. Export value in 2003 reached US$61.023 billion or an increase by 6. particularly those of non-oil and gas. That of oil and gas increased by 12.07 billion.5 billion or an increase of 5.08 percent.6 percent.99 billion.380 billion. animal and vegetable oil for 6. Main export destinations of the country's exported commodities in 2003 were the US that accounted for some 15 percent. which stood at US$4.93 percent.03 billion. Japan for 14 percent. export value was recorded at US$5. exports continued to indicate an increasing trend: In January 2004. which reached US$5.76 percent compared to that of 2002.68 percent compared to that of March 2004. Attributable to the increase was the 93 . export value reached US$5.05 percent. Trailing behind was mechanical engines that accounted for 6. Dominating exports of non-oil and gas in 2003 were machinery and electric tools.642 billion.
21 percent compared to that of the corresponding period in 2003. On another side. Imports The country's import value in whole in 2003 was US$32.71 billion. interest rate is still made possible to be lowered prudently and consistently by the achievement of such inflation target.52 percent. international reserves were recorded at US$34. This is aimed at securing the target of the middle-run inflation by keeping on reinforcing the process of economic recovery through the promotion of economic growth.76 billion.29 billion in April 2004. making the total amount of imports during the said month US$2. In March 2004. In the meantime. necessary interventions in foreign exchange would be done to control excessive volatility of rupiah exchange rate. In May 2004.0 billion in 2002. The increase was attributed to imports of oil and gas as much as 35.22 billion. import value rose by 10.18 billion before augmenting by 5 percent to reach US$2. Japan and South Korea.97 billion. Balance of Payment Balance of payment in the past few years marked positive development. meaning an increase of 2. and 3. In May 2004 the country's foreign trade surplus was recorded at US$2. Cumulatively the country's import value reached US$16.81 percent compared to that of April 2004. Indonesia imported those commodities mainly from Japan.2 billion. Imported commodities comprised machines. During the period of January-April 2004. Underpinned by increasing tendency of exports. compared to US$1.28 billion.3 billion. In January 2004.high augment of non-oil and gas exports to China. which amounted to US$13. swelling from US$32. electric machines and equipments. cumulative exports during the period of January-May 2004 reached US$25. the US and China.24 percent. In line with this.0 billion in 2002.99 billion to US$12. decreasing by 6. In the second week of August 2004. the country's international foreign exchange reserves at the end of 2003 stood at US$36. namely from US$10.05 percent of non-oil and gas imports.16 percent. This 94 .20 percent compared to that of the corresponding period last year. organic chemical. up from US$4. Thus.75 billion in April 2004. non-oil and gas imports reached US$2.57 billion.38 percent compared to that of the corresponding period in 2003.88 billion or an increase by some 24. the country's balance of payment in 2003 recorded a surplus of US$4.12 billion. import value amounted to US$3. or increasing by some 3. import value grew a bit by 0.39 billion. Monetary Monetary policies remain to be focused on striving to maintain monetary stability.
5 percent each. Rupiah Exchange Rate On average. For the year 2004. lower impact of administered prices.2 percent higher than annual rate target of 6. inflation rate is expected to be 6.5 percent.469 per US$. Interest Rate The benchmark interest rates of Bank Indonesia (Central Bank) promissory notes (SBI) have been enjoying a downward trend. In general. underpinned by more favorable domestic economic fundamental factors and controllable inflation expectation.1 percent. inflation noted a downward trend. and for the year 2005 and 2006 is projected to be 5. namely 5.98 percent. portraying this was expanded stable and controlled monetary.would be parallel with the implementation of foreign exchange transactions monitoring and control against prime doers in markets. In July 2004. recorded at Rp8. Attributable to the relatively stable rupiah exchange rate were more favorable domestic economic fundamental factors that promote domestic foreign exchange supply. For the year 2004. far lower than that of 2002 at 10.300 to Rp8. The figure is close enough to the previous estimate of Rp8.500 per US$ on average.y) due to the decrease of inflation rate in foodstuff components. monetary condition during the first quarter of the year 2004 was quite stable. particularly deposit interest rate.5 percent on average.34 percent. Following this trend have been credit interest rates.25 percent. Inflation The year-on-year inflation rate in the year 2003 was recorded at 5. the benchmark interest rate of 3-month SBI is projected at 8. During the first quarter of the year 2004. down from 13 percent at the beginning of the year 2003. positive market expectations towards rupiah value movement. and lower than the target of 10. In the first quarter of 2004 the 1-month deposit interest rate was 5.5 percent. rupiah exchange rate during the first quarter of the year 2004 was relatively stable compared to that of the fourth quarter of the year 2003. it was recorded at 7. At the end of the year 2003.o.1 percent.99 percent. the 3-month SBI stood at 8.11 percent (y. and 3-month deposit interest rate 6.48 percent. increasing investors' 95 . and relatively stable of rupiah exchange rate. The rise was mainly due to increasing prices of foods and other basic commodities. inflation recorded a 15-month high of 7. In April 2004.
confidence on account of up-grade sovereign rating by Moody's international rating agency.6 percent of GDP in 2005. slightly higher then the expectation of 1. Rupiah exchange rate in April 2004 was recorded at Rp8. the position of M1 (currency and demand deposit) changed insignificantly. and expenditures totaled Rp 374.4 trillion or some 18. which merges routine and development expenditures into single expenditure format. starting in 2005. The declining trend of M2 was largely due to lowering demand deposit following the decrease of deposit rate. The 2004 State Budget earmarked government revenue and grants of Rp349. budget allocation for government revenue and grants in 2003 totaled Rp341. shrinking from Rp935.1 trillion or 17.2 percent and 0. In addition. The budget deficit has been consequently financed from both internal and external sources. It means government expenditures in 2004 are 96 . 17/2003 on State Finance. and in 2003 it stood at 1. replacing the two-decade standing balanced budget policy.34 trillion. as mandated by Law No. This declining trend was attributed chiefly to the strengthening of US$ against other world's currencies following the improvement of the US's macro-economic indicators. it is projected to be 1. Current State Budget As of 2002 the Government has been practicing a deficit budget system. The relatively unchanged growth of M1 and M2 would hopefully give room to the improvement of public purchasing power and consumption. or declining by 1.3 percent of GDP.9 trillion or some 17. For 2004. The 2004 State Budget features a continuation of the government's endeavors to attain its three major economic policy objectives: (1) achieving favorable fiscal condition and reducing government debt. The 2002 budget deficit was recorded at 2. For comparison.5 percent of GDP.0 trillion. the total amount of M2 (M1 plus quasi money) reached Rp935. Meanwhile.7 percent of GDP.5 percent of the country's GDP. within the constraints set by the government's fiscal year policies.8 trillion or 19. Base Money and Economic Liquidity Base money in April 2004 stood at Rp146. reaching Rp219. as well as greater socio-political stability. and government expenditures of Rp374.8 percent. At the same time.48 percent against that of March 2004.691 per US$. (2) maintaining sustainable medium-term fiscal policy. and (3) providing a modest degree of stimulus to the overall economy.9 percent.7 trillion in March 2004. the state budget will adopt a new budgetary system called an integrated or united system.1 percent of GDP.2 trillion.
Of the total government revenues in 2004.124 trillion or some 3.budgeted to shrink to 18. and non-tax revenues to reach Rp77.175 trillion or some 13. health.3 percent in 2003. social assistance and programs aimed at poverty alleviation.5 percent from 3. transportation. The largest shares of the development budget are allotted to education. 97 .7 percent of GDP from 21.9 percent of GDP.7 percent in 2003. and development spending are budgeted to decline to 3. tax revenues are projected to reach Rp272.6 percent of GDP.
214.858.0 0.289.5 iv.9 13.2 3.0 285. Domestic Taxes 260.1 13. Oil and Gas 13.1 b.4 5.3 13.7 4.941.951. Oil and Gas 44.132.5 377.136.9 0.030.1 2.6 12.6 2. Land and building tax 8.0 2. Import duties 11.4 10.238.240.671.2 47.0 13.0 128.2 0.3 vi.667.0 6.9 0. Export tax 315.2 2.3 0.7 0.147.7 0.3 17. Other taxes 1.6 0.272.7 13.STATE BUDGET 2004 & PROPOSED BUDGET 2005 (In billions rupiah) 2004 2005 Items Budget % Proposed % to GDP Budget to GDP A.9 0.1 2.5 iii.4 2.039. Duties on land and building transfer 2.6 i.886.6 297.7 17.4 50.2 ii.272.121.4 4.7 141. Value-added tax 86.4 28.4 3.0 1.6 a.3 0.6 2.820. Non oil & Gas 120.1 3. Domestic Revenue 349.299.9 79.3 3.626.002.5 377.933. International trade tax 11.636.124.6 6.0 344.568.6 1.9 ii.367. Tax revenue 272.5 ii.835.1 v.5 17.967.6 a.223.2 98 .2 0.3 17.3 i.614. Total Revenue and Grants 349.2 0. Natural Resources 47.5 1. Excises 27.6 12.3 98.5 6.2 I.510.933. Income tax 133. Non-tax Revenue 77. Non Oil and Gas 3.8 0.0 0.2 0.828.017.175.2 1.6 0.0 i.
Grants 634.6 0.0 1.5 18.5 b.7 8.645.1 ii.8 2.0 2.775. Private entreprises 48.078.375.7 394.0 42.0 0.351.8 1.927.8 2.9 II.5 1.0 0.3 33. Others 16. Revenue Sharing 26.9 5.2 25.186.1 1. Balanced Funds 112. Grants 7.2 5.5 0.153.0 6.238. Subsidies 26.042.8 264.130.9 a.8 b.1 2.3 33. Financial Institutions 853.1 12.736.4 b.4 0.3 32.2 1.2 0.0 1.450.9 62.235. Domestic interest 41.309.3 6.429.4 c.1 88.651.b.448.217.9 1.6 0.3 0.4 1. Material expenditures 35. SOE's 26.0 750.986.639.901.142.0 0.420.0 4.3 31.293.5 a.0 1. Non Financial Institutions 25.2 0.844. General Allocation Fund 82.1 5.0 B. Profit transfer from SOE's 11. Social Assistance 14.0 3.589.454.8 0.970.778.9 19.0 I.7 II.3 12. Regional Transfer 119.4 4.1 1. Expenditures 374.3 63.8 14. External interest 24.9 1. Other non-tax revenues 18.5 i.2 0.2 5.268.6 9.275. Personnel expenditures 57.9 4.2 2.638.1 38.7 16.1 1.8 1.5 1.9 2.260.6 123.8 1.1 2.0 42.6 a.8 0. Capital Expenses 39. Interest Payments 65.4 3.0 99 .8 30.0 129.971.130.3 18.1 1.796.877. Central Government Expenditures 255.603.9 0.
Domestic Financing 40.8) (20. Amortization (44.233.094.198.4 0.600.0 0.6) (0.193.8 1. 22 of 1999.1 1.212. Privatization Proceeds & Assets Recovery 10.7 1.2 C.3 a.5 percent. Foreign Financing (16.128.642.2 a.642. inflation 100 . Financing 24.100.0 0.417.4 2.8 1.892.8 2.4 8.0 37.6) (1. The Proposed 2005 State Budget The proposed 2005 State Budget portrays key assumptions used to estimate expenditures and revenues are quite conservative.3 2.9 1.9 II. The 2004 budget allocates some 31.6 1. Special Autonomy & Adjustment Fund 6.2 16. Government bonds (net) 11.2 0.1 0. Domestic Bank Financing 19.0 0.3 b.836.2) (46.2 4. It estimates a GDP growth of 5.0 9.138. Adjustment Fund 5.6 0.6 20.500.2) (0.762. Special Autonomy Fund 1.5) (2.c.085.8) E.0 1. Overall Balance (A-B) (24.892.042.3 4.085.000.5 7.3 a.0 0.7 1.4 0.8 0.4 percent.4 2. an average rupiah exchange rate of Rp 8.9 0.8 I.1 47.737.1 D.885. Primary Balance 41. interest rate at 6.0 0.8 0.2 2.375.2) (16.237.2 percent in 2003. a significant proportion of central government revenue goes to provincial and local governments.600 to one US dollar.556. Special Allocation Fund 3.4 26.1 28.0 0.8 percent of central government expenditures for provincial and local governments.417.3 6.357. compared to some 32. Gross Drawing 28.1 b.357.690.453. Project Loan 19.585.4 b.000.7) (2.7) (0.0 1.6 0. Domestic Non-Bank Financing 21.0 18.7 2.1) Pursuant to Law No.500. Revenues apportioned for provincial and local governments are derived from taxes and natural resource revenues.0 0.7 0.6 1.9) 1. Program Loan 8.
5.5 percent, and average international oil price at US$24 a barrel. It also predicts a budget deficit of 0.8 percent, down from 1.2 percent at current year. The budget envisages higher government's expenditures of Rp 264 trillion than that of previous year, which amounted to Rp255.3 trillion. Those which would receive larger proportion are ministries of defense, education, settlement and infrastructure, health, and the National Police. Of the proposed total government expenditures, some Rp 22 trillion would go to the Defense Ministry, Rp 21.5 trillion to the Ministry of Education, Rp12.4 trillion to the Ministry of Settlements and Infrastructures, Rp11.2 trillion to the National police, and some Rp 7.4 trillion to the Ministry of Health. The budget also envisages tax revenues of Rp297.5 trillion (US$32.11 billion), higher than the 2004 tax revenues target of Rp 260 trillion. Taxation As of 2001 the share of tax receipts to government revenues has been noting an increasing trend. In 2001, tax revenues accounted for some 61.6 percent of the total government revenues. The figure then grew to some 70.0 percent in 2002 and 75.6 percent in 2003. In 2003, realized tax revenues were 97.2 percent of the year's target; domestic tax revenues were 97.3 percent; and international tax revenues 98.8 percent of the target. In the context of augmenting the share of tax revenues to the government revenues in 2004, endeavors have been focused on tax and custom administration reform. The reform includes improved utilization of modern technology, regulatory reform, institutional developments, and improvement of quality of human resources. Parallel with this, the scheme to minimize arrears has been more intensified due to increasing tendency of evading. In 2001, for example, tax arrears amounted to Rp13.3 trillion, and swelled to Rp17.3 trillion in 2002, before decreasing slightly to Rp17.1 trillion in 2003. For 2004, tax revenues are projected to amount to Rp272, 2 trillion or growing by 7.1 percent from that of 2003. Of the total tax revenues, some 49.2 percent derives from income tax and some 31.7 percent from value-added tax as well as tax on luxurious goods. By value, realized tax revenues during the first quarter of 2004 amounted to Rp 51.5 trillion or an increase of 15 percent compared to that of the corresponding period in 2003. Tax ratio in 2003 stood at 13.1 percent of GDP, and for 2004 it is projected to reach 13.6 percent, a slight increase from the target of 13.5 percent, but still below those of neighboring countries, which ranges between 14 percent and 15 percent. In helping to improve and boost domestic businesses in order that they enable their outputs to meet both local and overseas demands, the 10-percent value-added tax on the
import of certain capital goods and raw materials by several industries has been waived, and the luxury tax on 45 products eliminated. Foreign Debt It has been a key policy of the Government since 1997, when financial crisis hit the country as well as other Asian countries, to reduce public debt in percentage of GDP. So far, the fruit of the policy has been tangible: Its external debts as a percentage of GDP shrank from a peak of 65.3 percent in 1998 to 49.5 percent in 2000, further to 47.5 percent in 2001, to 43.1 percent in 2002, and to 39.1 percent of GDP in 2003. The country's total debt repayment is expected to reach US$21.01 billion in 2004, down from the estimated US$28.31 billion in 2003. Of the total debt repayment, around US$16.24 billion would be for the payment of principal, and the remaining US$4.77 billion would be the interest. Up to March 2004, the country's outstanding foreign debt amounted to US$136.10 billion, up from US$134.40 billion during the previous month. Attributable to the increase was the raise in official foreign debts of US$81.197 billion from US$80.01 billion previously. On the contrary, the outstanding private debts slightly shrank from US$52.77 billion in February 2004 to US$52.39 billion in March 2004. The decrease was chiefly due to the lower outstanding private debt of non-financial institutions, whereas the bank and nonbank private debt augmented. Banking Policies in the banking industry are more focused on various measures to reinforcing the condition of the national banking industry. This is a continuation of banking restructurization programs in the context of making the banking industry recover. The measures put a stress on sustained efforts to recover its intermediary role. They are also aimed at improving the banking system through among other things enhancement of banking good corporate governance, and improvement of banking regulations and control. This includes the betterment of banking services innovations such as mobile banking services via the growing popular cellular phones. In line with more favorable monetary condition, some indicators in the banking industry have shown heartening improvements. Banking intermediary function has slightly improved further as the growing third party funds and higher credit position reflect, so this needs to be optimized. Other banking indicators such as net interest margin (NIM) has been persistently growing; non-performing loans (NPLs) relatively low;
BNI branch office in Medan, North Sumatra banks' capital and profit ratio relatively stable; and capital adequacy ratio (CAR) improving. At the first quarter of 2004 (March 2004), banks' total assets amounted to Rp1,150.0 trillion. Meanwhile, third party funds shrank by Rp11.5 trillion to reach Rp877.1 trillion. At the same time, credit position stood at Rp477.30 trillion. New credit during the first quarter of 2004 was amounting to Rp4.3 trillion, some 53.9 of which went to small-andmedium establishments (SMEs). By type of usage, the new credits had been channeled for working capitals (45.6 percent), investment (24.3 percent) and for consumption (30.1 percent). Loan-to-deposit ratio in March was recorded at 43.7 percent, growing from 42.9 percent in the previous month. Reflecting improved banking performance had been net interest income that grew from Rp3.2 trillion in the third quarter of 2003 to Rp5.1 trillion in the first quarter of 2004. The increase was mainly due to the increase of credits and the declining tendency of credit interest. In general, banks' capital adequacy ratio (CAR) in the first quarter of 2004 was well above the minimum level, namely around 23.2 percent, up from 19.4 percent in the previous quarter. During the year 2003 the average CAR level was around 23 percent, higher than that of 2002 at 21 percent. The central bank's minimum requirement was set at eight (8) percent. 103
Until June 2002, the number of bank offices was recorded at 14,300. The country's major banks are Bank Mandiri, which in March 2004 had a total asset of Rp239,383 billion; Bank Central Asia (BCA) which had a total asset of Rp 136,139 billion; Bank Negara Indonesia (BNI) Rp125,078 billion, Bank Rakyat Indonesia (BRI) with its total asset of Rp 94,503 billion, Bank Danamon with total asset of 54,887 billion, Bank International Indonesia (BII) with its total asset of Rp29,769 billion, Lippo Bank Rp 26,090 billion, Bank Tabungan Negara (BTN) Rp 25,623 billion, Bank Niaga Rp 23,393 billion, and Citibank with total asset of Rp 23,012 billion. In addition, there are also several overseas banks' representative offices operating in the country's major cities. Those banks include Bank of America, Bank of Tokyo, Hong Kong Bank, Amro Bank, Standard Chartered Bank, Thai Bank, etc. Bank Indonesia Previously, Bank Indonesia, the country's central bank, was regulated under Law No. 11 of 1953. However, since the issuance of Law No. 23 of 1999, which has been amended by Law No. 23 of 2004 on Bank Indonesia, the bank operates under the Law that allows it the status and position as an independent state institution, free from any interference by the Government and other external parties. It means that the bank is fully autonomous in formulating and executing each of its task and authority as the Law regulates. As it is governed, the Bank Indonesia has one single objective: to achieve and maintain stability of Rupiah, the country's currency. To pursue the objective the bank has the task: to formulate and implement monetary policy; regulate and ensure a sound payment system; and regulate and supervise the national banking system. The Bank's accountability and transparency take the form of open information pertaining the evaluation of monetary policies having been executed in the previous year, and policies being planned for next year as well as their targets for the public. Such information is also reported to the President and the House of Representatives (DPR). In relation with the Government, the bank assists the printing and placement of government securities to finance the State Budget; acts as the cashier to the government and administrator of government account at the Bank Indonesia, and accepts, upon request by the Government, foreign loans for and on behalf of the government. State-owned Enterprises The meaning of a state-owned enterprise (BUMN) in general term is a corporate body outside of the Bank Indonesia, with no-less-than-51 percent share of which must be owned by the government, and a joint-venture in which all shares are owned by the government together with local governments or other state-owned enterprises without taking the composition of the government ownership into account.
four reinsurance companies. During the year 2002 and 2003. trade. while medium enterprises own assets worth ranging from Rp5 trillion to Rp10 trillion. They are grouped into large. PT. the total assets of those state-owned enterprises were estimated to reach Rp849. Their net profits in 2000 were Rp13. 105 .8 billion. communications. total assets of companies running insurance programs for civil servants and military personnel swelled from Rp10. and small undertakings. two social insurance and worker social insurance companies and three companies running insurance programs for civil-servants and military personnel. Privatization schemes are still underway to broaden public ownership.5 billion in 2003. total assets of reinsurance companies shrank slightly from Rp15. Bank Mandiri. tourism industry.19 trillion.3 trillion respectively. On the contrary. improve their efficiency and productivity.9 trillion. there are four large state-owned enterprises which possess assets worth over Rp 50 trillion. total assets of insurance companies have augmented meaningfully. plantations and forestry as well as public services. Petrokimia Gresik.39 percent from that of 2002. Pupuk Kujang.320. numbering 160 establishments in 2003. So far. particularly insurance.1 billion in 2002 to Rp13. Realization of such privatization schemes in 2002 and 2003 was Rp7. gains of BUMN privatization schemes having been deposited to the state treasury amounted to Rp3. consisting of 60 life insurance companies.320. In 2003. The total assets of life insurance companies in September 2003 were recorded at Rp 31. and 21 insurance consultants. However. before growing to Rp 442. 25 insurance adjusters. six enterprises with assets worth from Rp10 trillion to Rp 50 trillion.4 billion in 2003. 140 loss insurance companies.323. PT. and revive finance and management in order to augment their outputs and products' competitive edge.2 billion in 2002 to Rp15. Bank BNI.8 billion in 2003. construction services and consultancy.The Office of the Minister of State-owned Enterprises supervises state-owned enterprises. 20 reinsurance brokers. financial services. PT Aneka Tambang Tbk. Bank Rakyat Indonesia. there were 120 insurance brokers.500. up from Rp 26. Meanwhile.7 trillion and Rp7. the number of insurance enterprises remained 73 establishments.4 billion in 2002.3 trillion and in 2001 were estimated at Rp26. Investment gains in the field of insurance have also noted an improved performance. and their whole capitals amounted to Rp249. transport. up to March 2004. medium. Insurance Non-bank financial institutions continuously show an improved performance. Telkom Indonesia Tbk.2 trillion. increasing 7.5 billion in 2002.2 trillion out of the targeted Rp5 trillion. agriculture.5 billion. In 2001. Investment from insurance companies amounted to Rp 412. Insurances' total investment value in September 2003 amounted to Rp 442. In addition.768. Those 160 establishments do businesses in the sectors of manufacturing. Among the large enterprises are PT. those state enterprises were estimated to gain profit of Rp28 trillion.397. For the past five years.
11 of 1970. In term of number. established in 1973. while direct foreign investment is regulated under Law No. Domestic Investment Performance Approvals on domestic investment during the period of January-June 2004 or the first semester of 2004 were 72 projects with investment value of Rp15.867. and step to centralize the authority to license foreign and domestic investment in the Investment Coordinating Board (BKPM) aimed at relevant ministerial offices and regional administrations as well as making it easier for investors to get business permits. Attributable to this was that the country introduced liberal investment policies and regulatory frameworks. In addition. Indonesia had been one of most attractive investment destinations in the Southeast Asian region. the country's representative offices such as embassies. the prolonged economic crisis since the middle of 1997. coordinate and perform investment promotion. Investment trend Up to 1997 when monetary crisis hit the Asian countries. 1 of 1967. as amended by Law No. and they turn away looking for other promising countries. and coordinate investment development activities among government institutions. Unfortunately. the Government has introduced various efforts. In anticipation of such unfavorable situation.773.Investment Domestic investment is regulated under Law No. there were 45 expanded projects with investment value of Rp3. widespread security problems. directly accountable to the President. Included in those measures have been plan to open more sectors for foreigners' ownership. approved projects during the January-June 2004 noted a substantial decrease compared to those of the corresponding period in 2003. ranging from the issuance of measures as required by "the White Paper". consulategenerals and consulates abroad. with investment value of Rp10. but in term of investment value recorded the contrary. In giving approvals to direct foreign investment applications. are authorized to do that. there is a Provincial Investment Agency. 6 of 1968 which has been amended by Law No. In provincial level. to promotional activities such as road-shows to overseas in the context of improving investment to speed up economic recovery and widen job opportunities. 12 of 1970. Approved projects in the January-June of 2003 numbered 109 projects. A government institution that manages investment in Indonesia is the Investment Coordinating Agency (BKPM).5 billion. 357. 106 . and offered foreign investors good incentives and favorable investment climate.3 billion. and frequent disputes among labor associations and employers have to some extent withered away foreign investors' interest to invest.7 billion. This agency. is tasked mainly to: formulate and assess national investment policies. headed by a chairman of the agency who is accountable to local governor.
there were also 118 expanded foreign investment projects with investment value of US$1. In addition. and the province of Lampung US$256.1 million.4 million for 42 projects. the province of Banten US$271. followed by the Special Territory of Jakarta that absorbed US$590. By location. Trailing behind were transport.3 billion.8 million for 74 projects. went to West Java Province. and transport. warehouse and telecommunications with US$282. warehouse and telecommunications third with Rp1. By country of origin. most investment. By term of investment value.994.8 million.831. The most attractive sector for direct foreign investment during the period of January-June 2004 was metal.890.591.6 million with two projects.038.597 projects. but in term of project number was increasing. namely US$760. Direct Foreign Investment There were 551 approved projects of direct foreign investment worth US$3. Central Java that did US$315 million with three projects. followed by Riau.4 million. Compared to that of the corresponding period of 2003. with 85 projects.4 million for 30 projects.049. Japan ranked first with US$882. and the Province of Banten.At the same time. in the period of January-June 2004 suffered a decrease. foodstuffs industry came second with Rp4.4 million. textile industry with US$321. 107 . The total investment value during the period of January-June 2003 was US$ 4. the Province of West Java. there had been 1.1 million with 273 projects.4 billion.2 million. the most attractive business sector for domestic investment was foodprocessing industry (14 projects). gas and drinking water sector ranked first by absorbing Rp4. the Special Territory of Jakarta.0 billion. Malaysia with US$321.7 million to finance 510 projects.046.2 million during the period of January-June 2004. the electric.3 million. warehouse and telecommunications (8 projects). and Singapore with US$131.1 million for 107 projects. By location.626 projects with investment value amounting to US$114. machine and electronic industry (7 projects). direct foreign investment in term of value. of domestic investment given permanent business permits from 1997 to June 2004.3 million for 44 projects.649. and rubber and plastic industry (5 projects). the UK with US$793. followed by hotel and restaurant with US$536. and transport. the Province of Central Java ranked first. At the same time. worth Rp114. machinery and electronic industrial group that absorbed as much as US$729. Cumulatively. the cumulative number of direct foreign investment having received permanent business permits had been 8. construction with US$312.8 million. South Korea with US$230.1 billion.3 million.9 million with 45 projects.
945 693. Indonesian index development ranked second after Thailand. 783.29 33.70 42. This was the highest level of the index since the revival of the Indonesian capital market.48 746. 735.033 63.80 21.89 108 . which recorded an increase by 109. the index declined solely.32 787.62 22.07 1741. Compared to the development of composite index of other countries in the Southeast Asian Countries (ASEAN). In the first-five month.82 Dow Jones 8341. or an increase by 63.08 Philippines 1018.95 10500. 2003 % Thailand 356.159 points on April 27.40 Malaysia 646.72 Taiwan 4452.67 points in March.45 Hong Kong 9321.50 pct. It successfully restored confidence toward the Indonesian capital market and enhanced improvement in trading activities on the Indonesian stock exchanges-the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) in East Java.63 10450.08% compared to 2002.033 points toward the end of the year and closed at 691. inflation and rupiah exchange rate were supported by a stable political situation.01 29.51 points in May. The table below shows the index development in the ASEAN countries: Countries Dec.28 Japan 8578.41 points in April and 732. On the JSX.89 30. In 2003. As a result. the highest index was 693.29 12464.50 Indonesia 424. Improvements to several macroeconomic indicators-economic growth.08 points in February.38 Singapore 1341.CAPITAL MARKET The Indonesian capital market during the year of 2003 posted a strong performance.895 points on its closing level in 2003. 2004.81 109. 2002 Dec. the highest CPI was noted at 818.45 5804.41 1450. 761. from January to May 2004. It was 752. the composite share price index (CPI) during the year reached a higher level.93 points in January.00 25.
In addition.84% from 492.85 points in February. Market capitalization Till the end of December 2003.61 points in March. there had been 488 companies issuing stocks and bond while the total fund mobilization was Rp320. Meanwhile the value of transaction totaled Rp124.32 points in 2000. 414.13% compared to that in 2002 which was only Rp120.4223 trillion in 2002. The SSX was mostly known as the second class market as it specialized in bond trading activities.03 points in 2001.90 points in 2003. Issuers Up to May 2004. which was at 566.79 billion in 2003.81 points in January.57 points in 1999.63 points in 2000. or an increase by 72. 109 . or an increase by 3. two bonds wits the US dollar denomination had also been available in the Indonesian bourses worth US$ 105 million.91 billion in 2002 to Rp516. at 424.24 points in May. 432. market capitalization on the JSX. and at 691.821 trillion. Daily transactions lose by 3.578 trillion.33% compared to Rp268.94 points in 2002.91 points in 1999. it was noted at 410. at 220.The composite price index development on the JSX was noted at 676.51 points in 2003. 137 companies issued bond. the Indonesian Capital Market Supervisory Agency (Bapepam) promoted new launch of Syari'ah Capital Market by signing a memorandum of understanding with concerned institutions. Six companies were unlisted as they did not carry out IPO. This was a reward of hard work by capital market elements to fight for coping with the crises which had hit the country for several years. 2 Syari'ah Bond (Islamic Concept). at 416.89 points in 2001. Meanwhile. In the first five months of 2004. Some 410 companies had launched initial public offering (IPO) and listed their shares on the stock exchanges. It was seen from the composite price index.81 points in April and 402. Meanwhile. 399. and at 252. was noted at Rp462. 7 Convertible Bond (CB) and 1 Credit Securities (CS). In March 2003. consisting of 127 launched IPO.765 trillion. the main stock exchange.55 trillion. at 392. The significant increase of index marked an awakening of the securities industries in Indonesia. at 267. the Surabaya Stock Exchange (SSX) had posted a slow development.
crossing and others through main and development boards mechanisms.05% as its number increased from 13 in 2003 to become 98 companies.During 2003. in 2003 the Bapepam recruited 206 professionals. a decrease by 70% compared to 2002 with a value of Rp8. 593 civil law notaries. convertible bonds. rights. 20 legal consultant & offices.5 trillion.25% from Rp46. Market instruments on the Indonesian stock exchanges consist of 336 stocks. all bonds issued in the capital market had reached 254 corporations and 133 companies with a value of Rp62. the unit holders also made a significant reward in number. Fund mobilization from third party was worth Rp56. negotiated market. 110 . 242 legal consultants.93% compared to only 131 companies in 2002. the Bapepam during 2003 issued 4 licenses to new four securities companies. from Rp 1. its number had also increased to 182 companies in 2003.2 trillion to Rp7. margin. while the value of fund mobilization was up 525.99 trillion.2 trillion. The Indonesian Capital Market Supervisory Agency (Bapepam). Net Asset Capital (NAB) rose by 56. and 199 mutual funds. non-regular market. As such. announced that in 2003 there were 54 bonds issued with the total value of Rp 25. all professionals who had registered in the agency were 105 appraisals.2 trillion. from 125. nine companies launched IPO. Mutual Funds In terms of mutual funds as a market instrument of the bourses.45% compared to 2002 which was only Rp6. or an increase by 306. Investment Management activities showed an increase by 47. They are traded in regular market.0% in 2003. consisting of 7 appraisals.820 in 2002 to 174.6 trillion. up by 38. a government institution authority. 137 bonds.83 trillion in 2003.87%. To complete the run of the capital market. 7 warrants. This figure decreased by 60.61 trillion in 2002 to Rp 72. making a total of 191 companies.5 trillion in 2003. 96 civil law notaries. 45 legal advisors. 33 public had accountants (partners) and 17 accountants (public). In line with the development of securities industry in Indonesia. The government institution also registered 20 custodian banks and 12 securities administration bureaus. 11 companies launched rights issue with a value of Rp2. cash market.892 in 2003. Up to 2003.9 trillion in 2002 to Rp82.48 trillion in 2003. In addition. By that way.
1999. frozen one investment management. which has function as broking and trading activities concurrently an investment management. A company which has function as securities underwriter needs to have paid-up capital Rp50 billion and net adjusted capital of Rp 25 billion. With the issuance of the new regulations. futures contract. To tighten monitoring system in 2003. fines to 23 investment managements and investigated custodian banks. and revised regulations on script less and remote trading in the Jakarta Stock Exchange. Gudang Garam Tbk (1.924.088. liquidated 17 mutual funds.000). two appraisers and one commissioner of a listed company.000). 6. the institution had posted administrative sanctions to 83 listed companies.000.200 million. based on the government regulation dated May 7. accountability of board of directors of the issuers on financial reports. 3. work of auditory committee. the maximum number of listed shares and foreign ownership on Banks Company was set to 99%. A company dealing with broking and trading with client's account needs to have paid-up capital of Rp 500 million and net adjusted capital of Rp 200 million.000. lifted out licenses on investment management.079. client's principles. right issue.In the sector of regulation. A company which has function as securities broking and trading with client's account needs to have paid-up capital of Rp30 billion and net adjusted capital of Rp 25 billion. Biggest Market Capitalization Ten Biggest Market Capitalizations until June 2004 were as follows: 1. the Bapepam until 2003 had issued 151 regulations on capital market. In May 1999.060). option.377.640).000. the Bapepam obliges all capital market supporting elements to improve their synergy. Bank Mandiri Tbk (19.999.800. 4. Astra International 111 . HM Sampoerna Tbk (4. public accountant and periodical financial reports. net adjusted capital.630. Telekomunikasi Indonesia Tbk (10. 2.163. listing procedures. A securities company. is deemed necessary to have paid-up capital of Rp55 billion with net adjusted capital of Rp25. written warning to nine investment managements.000). three securities administration bureaus. 7. except for banks (49% of the total listed shares). 5. Unilever Indonesia Tbk (7. the foreign ownership limitation was abolished. Bank Central Asia Tbk (12. 3 trustees. bonus shares. 23 securities companies. among others on management system of securities account in the Indonesian Central Securities Depository (ICSD). the use of proceedings from IPO. six custodian banks. Crucial to foreign investors. A securities company which has function as investment management is obliged to have paid-up capital of Rp 5 billion with net adjusted capital of Rp 200 million. asset-backed securities. index. in September 1997. A securities company functioning as broking and trading with client's account and investment management also should come up with paid-up capital of Rp35 billion and net adjusted capital of Rp25.000).200 million.500. The Bapepam also issued eight regulations in 2003.
Top Losers Ten top losers in June 2004 were 1. 8. Bank Rakyat Indonesia Tbk. 5. 5.000).177. Pelangi Indah Canindo Tbk. Energi Mega Persada Tbk. Hortus Dana vest Tbk. Indofarma Tbk. 8. Bank Global Internasional Tbk. 6. 4. 10.870. 3. Sierad Produce Tbk. Top Gainers Ten top gainers on the JSX till June 2004 were 1. 10. 7. Bank Negara Indonesia Tbk (13. Asuransi Harta Aman Pratama Tbk. Bank Mandiri Tbk. 9. 5. Bank Central Asia Tbk. Bank Rakyat Indonesia (11. CLSA Indonesia 4.647. 6. Energi Mega Persada Tbk. 5. 8. 3. Palm Asia Corpora Tbk. 8. Danasupra Erapacific Tbk. 7. Most Active Stocks (volume) Ten most active stocks until June 2004 on the JSX were as follows: 1. Ryane Adibusana Tbk.950). Panca Wiratama Sakti Tbk. Indosat Tbk.048. Wicaksana Overseas Int. 9. Bank International Indonesia Tbk. Bakrie & Brothers Tbk. Tbk. Bumi Resources Tbk.2. Adhi Karya Tbk. 9.314). Cipendawa Agroindustri Tbk. Indoexchange Tbk. 4. Bank Buana Indonesia Tbk. 4. 3.355.526). 6. Surya Toto Indonesia Tbk. Asuransi Harta Aman Pratama Tbk. DBS Vickers Securities Indonesia 2.057. 3. 8. 7. 5. Indosat Tbk (5. 2. Bank Mandiri Tbk. JAPFA Comfeed Indonesia Tbk. 4.500. Artha Pacific Securities Tbk. 6. Astra Argo Lestari Tbk. JP Morgan Securities Indonesia 5. 9. Hortus Dana vest Tbk. 10. 7. 4. Energi Mega Persada Tbk. 9. Most Active Stocks (Value) Ten most active stocks till June 2004 were 1. Telekomunikasi Indonesia Tbk. 10. Hortus Dana vest Tbk. Bumi Resources Tbk. Telekomunikasi Indonesia Tbk. Indosat Tbk. Bank Mandiri Tbk. Kim Eng Securities 3.148. 6.Tbk (4. Astra International Tbk. Bumi Resources Tbk. Kawasan Industri Jababeka Tbk. 2. Bank Buana Indonesia Tbk. 112 . Maskapai Reasuransi Indonesia Tbk. 2. Panasia Filament Inti Tbk. Asuransi Jasa Tania Tbk. HM Sampoerna Tbk. 3. 10. 8. Bank Rakyat Indonesia Tbk. 7. Most Active Stocks (Frequency) Ten most active stocks till June 2004 were 1. Bank Central Asia Tbk. Suba Indah Tbk. 9. Most Active Brokerage (Value) Ten most active brokerage house in June 2004 were 1. 2. 10. Artha Pacific Securities Tbk.
113 . small. Pursuant to Law No. and on the prevention and control of environments from any destruction and pollution. in bringing in and saving foreign exchange. and improving the people's earnings as well as in alleviating poverty. empowering small-and medium-scale enterprises (SMEs) by improving the mastering of science and technology. boosting regional developments. ABN-AMRO Asia Sec. Indonesia 9. development of various industrial branches. CLSA Indonesia 8. on the improvement of domestic products' competitive edge. Merrill Lynch Indonesia. focusing on: revitalization of various industrial branches. MANUFACTURING INDUSTRY AND TRADE Policy in the sector of manufacturing industry and trade as the 1999-2004 Guidelines of State Policy underlines is aimed at: developing popular economy based on market mechanism. In refurbishing the real sector in a short term in a bid to recover economy from crisis the Government has introduced industrial and trade revitalization scheme. Semesta Indovest 8. Danarreksa Sekuritas 7. rearrangement of industrial structure. Valbury Asia Securities 3.Danareksa Sekuritas 6. Artadwipa Persada 7. fair competition. and promoting bilateral and multilateral economic cooperation in the framework of augmenting exports. Kim Eng Securities 2. medium and cooperative undertakings. The world's economic order has been undergoing a more rapid and fundamental change due to mainly more widespread economic globalization practices and fast development of technology. Dhanawibawa Arta Cemerlang. DBS Vickers Sec. and non-monopolistic practices. Most Active Brokerage (Frequency) Ten most active brokerage house in June 2004 were 1. development of manufacturing industry and trade stresses on the establishment of micro. In one aspect the fast technological advancement has been offering substantial benefits. advancement of industrial technology. GK Goh Indonesia 9.25 of 2000. Sarijaya Permana Sekuritas 6. This sector has in fact played a key and strategic role either in underpinning economic growth and improving productivity of the people engaged in or in creating job and business opportunities. Trimegah Securities 4. establishing a globaloriented economy by building competitive edge based on comparative superiority of being a maritime and agrarian state. and development of supporting industries. Mandiri Sekuritas 10. Indonesia 5. but in another aspect it has caused impairment for a country to compete when the country is heavily relying on comparative superiority based on natural resources and abundant but unskilled labor. Ciptadana Sekuritas 10.
In the meantime the availability of natural resources in term of sorts. Middle-term measures cover the strengthening of market institutions. and by improving trade funding. This means that to have improved competitive edge and industrial competitive superiority based on skillful and creative human resources. The main aims of improving the country's competitive edge are to augment foreign exchange from non-oil-and-gas exports. and development of manufacturing industries having competitive edge based on comparative superiority which is underpinned by the advancement of science ad technology. East Kalimantan The shorter time cycle of a product indicates the faster technological development. Short term measures having been taken to achieve the aims include maximizing the installed capacity of manufacturing industries by minimizing inefficiency of domestic and overseas trade. This situation would make human resources becoming more-determining factor than other resources. and to strengthen the country's economic viability. including from tourism industry. many technologies being out of date.Bontang NGL plant. technological and managerial capabilities is unquestionably-a prerequisite. quantity and quality become rare and dwindle. 114 .
It grew to 65. Other sectors accounted for 57. and in 2003 24.5 percent. Manufacturing Industry Manufacturing industry has been for the past ten years playing a prime mover of the country's economy by contributing the biggest share to the gross domestic products (GDP).9 percent in 2000 and for 58. or growing on an annual average of 1.47 percent of agriculture. printing and recording industrial group.6 percent in 2003. required 26 percent 115 . and 54 establishments respectively. except of machinery. In 2000 the utilization of installed production capacity of manufacturing industries was about 61. 50 establishments.126 in 2003 or a decrease of 0. Expenses for those employees by those establishments in 2002 totaled Rp46 trillion or a decline of 12 percent from those of 2001.2 percent in 2000 and decreasing to 16. medium-.7 percent. The number of large-and medium-scale industrial establishments in the whole indicated a decreasing tendency from 21.1 percent. So were their expenses for workers.and medium-scale establishments altogether employed 4.5 percent from that of previous year. At the same time that of agriculture was 17.The period of 2000-2004 saw a less-than-optimum increased utilization of installed industrial production capacity. agro-and forestry industrial group the production capacity in 2003 was recorded at 75.7 percent.9 percent. machinery. But individually the number of publication.8 percent in 2003. Investment of fixed capitals at subsectors of leather and leather goods industry.9 percent during the last four years. namely about Rp 5 trillion. This classification is based on the number of workers employed without taking machineries of production used or capitals invested into account. electronics and multifarious industrial group was 55.4 percent per annum.e. compared to 17. or an average of Rp10. and of metal. Of chemical. The increase. For instance in 2002 this sector accounted for some 25.2 percent or increasing on an average of 0.6 million per worker per annum. rubber and plastic industrial processing group and motorized vehicles assembling group added by 56 establishments. and of metal goods. In 2000 the share of manufacturing industry to the country's GDP was making up some 24.01 percent of the total GDP. however. Outputs of large and medium industrial establishments in 2002 recorded a rise of more than 30 percent to reach Rp882 trillion. amounting to Rp5 trillion. large-. In 2002 the largest decrease of expenses for workers in large and medium industrial establishments was suffered by food and beverage industrial sub-sector. suffered a decrease of almost 50 percent. The highest formation of fixed capitals occurred in machinery and its accessories industry.364. The number of workers employed by large and medium industrial establishments was expected to increase quite high in 2002. Those large. and small-scale industrial groups in addition to cottage or household industrial group.3 percent in 2003.869 workers in 2002 or a decrease of 0.146 in 2002 to 21. Manufacturing industry is classified into four major groups i.
733.41 percent and 7. on constant market prices. Output of small-scale establishments in 2002 swelled by 20.and medium-scale industrial establishments at outer Java.47 percent and cottage establishments by 27. the total added value of large and medium scale industrial establishments in 2002 noted a rise of 16.65 percent. Parallel with the increase of output value.3 billion.69 percent.34 percent.7 billion. development of innovative and realistic schemes meeting all market players in real sector.40 percent of Rp1.64 percent and an estimated rise of 13.98 percent in 2003. the sub-sector of food and beverages accounted for the biggest proportion of 15.26 percent. and that of cottage establishments by 21. and growing to an estimated 16. system and supporting facilities. empowerment of entrepreneurs of the industries and their institutions.4 billion in 2002.51 percent in 2003. 116 .54 percent or as much as Rp2. the values of products made by the establishments grew at more than 21 percent to reach Rp 811 trillion. particularly at rather isolated and remote areas. The sub-sector also earned from its products added value as much as Rp 40. improvement of prime services in term of management.91 percent respectively compared to those of 2001. The increase was followed by the rise of raw materials by 23 percent or amounting to Rp 468 trillion. small-scale and cottage industrial establishments added by 3. output of small-scale establishments was expected to grow by 6. For 2003.155. Dominating the country's industrial structure has been cottage industrial establishments.37 percent. and that of cottage 1. and cottage establishments 10. the cost of input borne by small-scale establishments raised by 23. At the same time. Wholly.83 percent or as much as Rp720.28 percent. By the increase.and medium-scale industries puts priority on the promotion of small. Promotion of Small.64 percent in 2003. Of the total production value in 2002.5 trillion in 2003. That of small-scale grew at 15.8 billion. areas along borderlines with some neighboring countries and at the countries eastern part. betterment of business climate.additional expenses of input. small-scale establishments were assumed to absorb a 4. 850. and cottage establishments 1. In 2002. Added value of cottage industries in 2002 also noted a rise of 13. accounting for 91.and Medium-Scale Industries Development policy of small. and an estimated 9.67 percent from that of 2002 or as much as Rp 7.5 trillion in 2000 and the figure was expected to reach Rp46.29 percent.42 percent additional workers. The number of employees absorbed by small-scale industrial establishments noted an increase of 0.53 percent.
and that of SMIs in handicrafts increased from Rp2.7. chemicals of construction materials. The main aims of the development of SMIs are the formation of modern and viable SMIs that can offer job and business opportunities as well as better income for SMIs entrepreneurs in a more equitable fashion.969 trillion to Rp5. At the same time that of SMIs in clothes swelled from Rp 9.720 trillion.808 trillion in 2001. improvement of exported products made by SMIs.740 trillion in 1998 before shrinking to Rp8.Banana processing middle-scale industry.777 to Rp. metal and electronics.908 trillion in 2001.and medium-scale industries (SMIs) is oriented to approach the year 2020 for the creation of people's economy-based SMIs that play a significant role as important mover for manufacturing industries in a whole.793 trillion in 1998 to Rp 27. Banana is basic raw material for pasta Development vision of small.994 trillion. At the same time that of SMIs dealing in clothes augmented from more than Rp3. Gross domestic product (GDP) of SMIs engaged in foodstuffs had amounted to Rp 9.114 trillion. of SMIs undertaking in chemicals of construction materials rose slightly from Rp12. greater number of technology-based SMIs.207 trillion.548 trillion to Rp15.746 trillion to Rp 28. the formation of more viable and stronger industrial structure.123 trillion to Rp12.711 trillion to Rp15.473 trillion in 1998 to more than Rp 5. there are SMIs engaged in the industries of foodstuffs.516 trillion to Rp4. Production value of SMIs in foodstuffs based on 1993 constant prices suffered a decrease from Rp 31. that of metal and electronics grew from Rp4.5589 trillion in 2001. By type.741 trillion. as well as handicraft. of SMIs in chemical of construction materials shrank slightly from Rp28. in clothes. and that of SMIs in handicrafts undertakings rose from Rp 5. of SMIs in metal and electronics undertakings swelled from Rp11. 117 .473 trillion.592 trillion.
improvement and distribution of income. 802 supermarkets. and even rather isolated and remote areas.Domestic trade Trade sector has been playing a substantial role in the country's economy. Retail business as part of the trade sector has been also featuring a heartening development in recent years. and change of the people's needs. To encourage the business in 1999 the Government lifted the retail business from the investment negative list. to operate in Indonesia. allowing big foreign retailing players such as Sogo. Trade activities are intertwining and intersupporting with other sectors of production such as agriculture. and the development of exports as well as imports. Macro. to say some. distribution of population (that tends to the occurrence of urbanization). change of population age composition. Its practices embrace sheer areas to include inter-insular migration resettlements areas. mining. in protecting local retailing players and traditional markets. Development of domestic trade is very much related to the population growth rate. including mini-markets. and 37 hypermarkets. meets the needs of people for staple foods. technological advancement. Loading and unloading activities at Bom Baru riverport in Riau 118 . Trade sector has served a substantial share in economic development as it is proved by the establishment of more viable trading system. transport and communications. finance. Carrefour and Giant. and promotes stability of appropriate prices. the creation of relatively stable prices. It was booming in 1996 or before the monetary crisis hitting the country. It supports greatly the distribution of goods and services. How ever. the Government limits their operations to major towns or they are not allowed to operate at district or municipal towns. the formation of job and business opportunities and trade facilities. manufacturing industry. thanks to the availabilities of facilities of trading. areas at or along borderlines. tastes and life style following the betterment of their living standards. In 2002 alone there were 100 convenience stores.
76 billion.4 billion in 2002. and tighter competition as well as some domestic unfavorable conditions such as high cost in getting documents of export and import. and Medan. insufficient infrastructures and facilities to help boosting investment in export-oriented manufacturing industries. Exports of oil and gas from 2001 to 2003 grew at an annual average rate of 1. Indonesia still records trade balance surplus when export value of gas was counted in. Makassar. A similar center is planned to be established at Banjarmasin. In one hand in fact the country's export commodities destinations have been expanding. trade exhibitions. Johannesburg.1 billion in 2001. By the improvement of competitive edge of the country's non-oil and gas export commodities at international marketit is marked by the augment of exports in term of volume and valueand the betterment of non-oil and gas export structure as well as expansion of their market. Some kinds of the country's products have proved themselves successful in competing in and gaining international market to bring in large amount of foreign exchange. Los Angeles. Non-oil and gas export value in 2000 reached US47. centers for trade promotion have been established in Surabaya. and trade diplomacy as well as the operation of overseas trade promotional offices in six cities (one each in Osaka.9 percent.2 percent.3. In this context market expansion to countries of non-quota has been carried out through various activities including selling missions. The target was not attained due to chiefly the global economic slowdown as a direct effect of the September 11 tragedy. and the rampant illegal trade and smuggling practices. and Sao Paulo). and though sorts of non-oil and gas commodities have been growing more varied only some have export basis. labor disputes. Dubai. In encouraging non-oil and gas exports in 2001 necessary measures were taken including the reduction of export tariff of some commodities and the improvement of textile quota management system.67 percentfar in fact below the target of 11. During the period of 2000-2003 non-oil and-gas exports grew at an average of 5. and swelling again to US$47. For domestic market. it is expected that Indonesia would turn to be a leading and viable trade state. Budapest. before decreasing to US$45. During the first five months of 2004 Indonesian crude oil price was averaging at US$33. The increase trend of oil in world market caused unfortunately trade balance deficit to Indonesia for the Indonesian oil export value was below its oil import value.Foreign trade Overseas trade plays a key role in marketing oil and gas as well as non-oil and gas commodities. 119 . but on another hand large proportion of those exported commodities is still concentrating to several countries.
imports of oil dropped substantially by 17.5 percent.1 percent in 2003 120 . All of these have helped SMEs. At the same time. It plunged by 15. The number of SMEs also recorded an increasing trend. So did their aggregate investment and imports. Their contribution to the country's GDP during the 2002-2003 period noted an increasing trend to reach Rp1. The large-scale enterprises. the medium-scale enterprises grew by 5. their contribution to the country's economic growth rate had been relatively smaller than that of other groups due to relatively little added value the group created. and large-scale only 3.5 percent in 2002 and 17.1 percent. trade. Even though the growth rate of medium-scale enterprises was relatively higher. that of large enterprises on the contrary dropped from 45.7 percent of total GDP.2 percent.013.1 percent in 2003. So has their contribution to the country's economic growth and the creation of job opportunities. In 2003. urban gas.4 percent in 2003 due to mainly high degree of oil prices and domestic needs. In 2000. At the same time. Medium scale enterprises' contribution to the national economic growth of 4. While that of medium-scale enterprises had been relatively stable at 15 percent. has been significant. in electricity.5 trillion or some 56. and forestry. hotel and restaurants. plantation or estate.8 percent in 2001 before regaining by 0.7 percent in 2000 to 41. Small-scale enterprises have always more advantages in businesses utilizing natural resources and in tertiary sector such as agricultural crops. and mining. services. livestock. The medium-scale enterprises at the same time played a leading role in making higher added value in the businesses of hotel. small-scale enterprises managed added value more than 75 percent during the 2000-2003 period. Products' added-value of small enterprises also noted a growing tendency: 39.3 percent. meanwhile. and their kinds of business more varying. leasing. and of large-scale about 5. and fisheries. more viable and strong as the country's economic backbone.1 percent.The country's sluggish economy has affected the import of non-oil and gas commodities.6 percent. of smallscale 4.1 percent in 2002 and 9. The added value they made in those sub-sectors reached some 60 percent. the growth rate of the middle-scale enterprises stood at 5. SMALL-MEDIUM ENTERPRISES AND COOPERATIVES SMEs The role of small-and medium-scale enterprises (SMEs) in endeavors to recover the country's prolonged economic crisis happening since 1997. finance. gained some advantages in the advanced processing industries. meaning higher than that of the large enterprises did.5 percent to 43. small-scale 43 percent. communications. In each sub-sector.4 percent in 2003.
an increase compared to that of 2000. and the small-scale to be a balancing element of income equity and labor-intensive absorbing.9 percent in 2000 to 14. 18. it proved that small-scale undertakings are of low or not capital intensive establishments.73 percent of large-scale enterprises.8 billion respectively in 2003.4 million units.e. They employed 79 million workers. investments in all economic fronts had been almost stagnant.3 percent of total exports .9 percent of the total exports in 2003. Investment During the 2000-2003 period. Small-scale group attracted the least investment i.2 percent or an average of 4.86 trillion or some 19. There is a tendency that mediumscale enterprises focus on products of processing industries.5 percent against that of the year 2000. increasing by 9. Exports of SMEs Exports from products of SMEs reached Rp75. before augmenting to Rp31.4 billion annually. Labors and Productivity The number of small-scale undertakings in 2003 was 42.1 per annum.2 trillion. annual average investment in small-scale group amounted to Rp58.accounted for only 0.9 trillion and in medium-scale Rp73.7 million and Rp1.6 percent on average per annum.8 million and Rp1. The increase was attributed to the rise of exports of medium-scale from 13. It contrasts with what a large-scale establishment could absorb.6 percent from the number of workers absorbed in 2000.69 percent of small-scale and 1. During the period of 2000-2003. Combined.6 percent per annum. which accounted for 19. compared to 1. Business Units. 121 .53 percent of total exports. compared to medium-scale group that could record at an average of 23 percent per annum.5 million per small-scale establishment. Compared to the total number of small-scale undertakings. namely Rp91. small-and medium-scale groups only absorbed investment about 41. The number of workers employed by small-scale undertakings during the period of 2000-2003 grew by 12. Those of mediumscale and large-scale were respectively Rp24. meaning a rise of 8.5 billion in 2000.69 percent. It means equivalent to Rp1. Productivity of small-scale enterprises also noted a significant increase from Rp8 million per worker in 2000 to Rp10.5 million per worker per annum in 2003. The large-scale undertakings group is potential to be a pump-primer of economic growth.
9 Small-scale group in 2003 recorded its investment growth at 2. the small-scale group's dependency on large-scale enterprises' products was 14. Economic subsectors that absorbed the greater part of investment in large-scale group were services (35 percent).556 7.51.424.51 Medium 73. and mediumscale as well as large-scale at 0.8 percent to household consumption and 30.024 1.8 percent.69 Large 185. In small-and mediumscale the sectors were transport (29 percent and 20.191 56. the greater part to exports.806 establishments in 2002 or an increase of 6.8 percent of the national demands for goods and services (small-scale accounting for 30.6 percent).658 establishments in 2001 to 117. that of medium-scale about 48.0 percent.0 percent to exports.823 1.4 percent respectively). Cooperatives Cooperatives. It means that SMEs tend to be much more influenced by domestic economic dynamism rather than of large-scale enterprises.8 percent). and that of large-scale. In producing its goods. From one year to another the number of cooperative establishments showed a rising tendency: from 110. and that of mediumscale groups was 15. The small-scale group's output was primarily dedicated to household consumption (61.2 Total 317.197.9 percent. have been contributing meaningfully to the national economy. and medium-scale 13.01 percent and 2 percent respectively.2 percent respectively).043 2.5 percent).240.118 40. as the people's economic backbone.138. Small-and medium-scale groups.709 1.0 percent and 9.884 40.46 percent. in addition to SMEs.1 percent. and large-scale accounted for 42. and on imported materials 5.2 percent).1 percent of imports.1 percent of the total national demands. and to exports (19.Average Investment by an Establishment (2000-2003) Scale Investment Number of Investment per (billion Rp) Establishments Establishment Small 58. supplied some 43. They spread in 122 . and electricity.3 percent respectively. and 14. gas and drinking water (18.5 percent and 15. at the same time. and trade (16.
Their members totaled 586. On the contrary.589 trillion paid-up capital in 2002.038 trillion in 2001 to Rp 23. from Rp 28. Rp14. and external paid-up capital for 24. meaning an increase of 1. Business Development Services (BDS) "Provider" To improve the performances of SMEs and cooperatives.448 in 2002.088 members of cooperatives in 2001. Saving-Credit Scheme Cooperatives Saving-credit cooperatives are cooperatives that receive savings from members. Of Rp 23. Their internal paid-up capital accounted for some 29. there were 23. It functions not only to help SMEs and cooperatives finding working capital from financial institutions in order to improve their business activities.40 %) were external paid-up capital. the Business Development Services (BDS) "Provider" has been formed and introduced. The number of saving-credit cooperatives in 2002 was 1.01 percent. but also supervises them to recruit employees. better their management and help seek market opportunities as well as educate managers of SMEs and cooperatives to read market demands. paid-up capital of cooperatives suffered a decrease.635. 123 .92 percent compared to that of 2001. With the paid-up capital the saving-credit cooperatives owned plus their members' savings.040.11 percent.589 trillion in 2002 or shrank by 15.21 percent were of members' savings.947.06 percent. and in return offer credits to their members. and in 2002 was 209.Milk cooperative undertaking in Bondowoso.2 percent compared to that of 2001.265 or an increase of 1.87 percent. and the remaining Rp8. compared to that of 2001. At the same time. and the remaining 46. before increasing to 24.67 percent.207 in 2002 against 576. the amount of credits channeled to their members noted a raise of 1.624 in 2001.257 trillion (63.60 percent) were internal paid-up capital.058 or growing by 3. The number of employees working for cooperatives in 2001 was 202. East Java more than 391 districts and municipalities.632 trillion (36. The amount of their paid-up capital in 2002 noted an increase of 0.56 percent to reach Rp642.55 billion in 2002.
5 percent of 25. making these time Indonesia self-sufficient in food. Of the growth rate. The world's economy that grows at a lower rate would certainly cause an unfavorable impact to the country's economic growth. Thank to endeavors the Government. Agriculture grew at 3.Due to the important and strategic role the BDS has played. statistics says that in 2003 some 56. Even though this sector still proved viable from the economic crisis the country suffered in the middle of 1997. a number of foreign institutions such as the Japan International Cooperation Agency (JICA).000 groups of peasants scattering in some 250 districts throughout the country.57 percent the lowest rate the country had ever made. and some domestic and overseas business agencies have been invited to improve professionalism of the BDS. So would unfair practices of international trade such as excessive subsidies to agriculture in some developed countries since it would affect the competitive edge of products from the developing countries such as Indonesia. The policy that stressed more on self-sufficiency in rice during the said periods led to rather unfavorable impact towards other types of food crops. it grew at only 1. the procurement of their tools 124 . Up to 2003 some two trillion rupiahs had been granted directly to some 25. However. cultivating land of less than 0. namely by developing a business system from downstream to upstream. and fisheries) up to the third quarter of 2003 noted a growing rate of 2. Extensive socialization of this system is required to reach all levels of society. forestry. AGRICULTURE According to Population Census 2000.54 percent. Cumulatively this sector (agriculture. In empowering peasants or farmers. their collective undertakings or cooperatives. The country's agricultural performance has been to some extent influenced by the ongoing domestic and global dynamism.65 percent. Though almost all regions in the country suffered a rather long drought in 2003. and 5. direct aids for them have been made available. including politicians and legislators.73 percent per annum.40 percent. foodstuff sub-sector grew on average 2. Policies and Strategies New paradigm has been currently adopted to develop agriculture.4 million families of peasants or farmers belonged to the economicallyweak bracket. to make it the prime mover of the country's economy. that agribusiness should be managed not by the Government but by the society itself. to finance their undertakings.72 percent in the period of 1976-1986.39 percent during the period of 1967-1976. some 60 per cent of the country's population earned their living from agriculture. estate sub-sector 1.5 ha on average or were merely tenants. and animal husbandry 1. the public and business circle made to maintain such growth rate that the country's stockpile of foodstuffs suffered no shortage. agriculture was still capable of growing in a heartening trend.
000 tons to 674. mustard green. pineapple. green pea by 8. introducing various deregulations such as on pesticides.14 percent from 51. The increase had in fact improved the country's viability of food supplies. and estate crops. salaks.77 percent.82 million tons in 2003. cabbage. potatoes. facili tating the formation of synergic undertakings of agribusiness. except of sweet potato.79 percent. soybean by 0. from 673.99 percent than that of 2002. though they were still below the target. Vegetable production at the same time amounted to 3. including with regional administrations. lower than the target of 53 million tons. encouraging peasants or farmers at rural areas to have more accesses to financial institutions. which the island of Sumatra mainly 125 . banana. and maintaining stability of unhusked rice prices.7 thousand ha or a rise of 3.40 percent and 13. Other stimuli would be among other things increasing budget allocation either from state budget or regional budget that reflects serious commitment of the Government for the development of agribusiness.08 million tons in 2003. and orange. and carrot. along with increasing the trend of domestic investment during the last few years.08 percent.20 percent. reached 316. improving skills and knowledge of peasants. the harvested areas of vegetable consisting of spring onions.000 tons. down by 3. fertilizers. for instance. sapodilla. lanzon. speeding up dissemination of technology. Indonesian main fruit crops are avocado.66 percent. facilitating the cultivation of seedling. durian. Production of rice.8 million tons. reinforcing system of quarantine.65 million tons in 2002 to 10. and cassava by 4. and guava. Java Island is the country's main fruit producer.79 percent respectively. helping peasants or farmers to have more accesses to market and market information. grew 1. orange. producing excellent varieties of plants of food. peanut by 5. from 9. mango. and simultaneously become a stimulus for rural economic development. Agricultural Products Food crops The year 2003 saw in general better performance of agricultural productions than those of 2002.46 percent due to primarily the decline of production of mustard green and shallot by 16.and development of their skills and knowledge. and agricultural tools and machines. lanzon. Horticulture At the end of 2003. protecting domestic agribusiness undertakings from unfair trade practices by other countries. Horticulture products. rambutan. except of durian. also noted an increase: production of corn up by 12. The aid proved offering the peasants either positive impacts for the development of agribusiness or a multiplier effect to the development of the real sector of economy. horticultural. shallots.49 million tons in 2002 to 52. Policies and programs having been introduced by the Government to encourage agribusiness include: maintaining sactorial cooperation.
8 thousand tons). in coconut plantation.7 thousand ha.6 thousand tons) and sugar (1. in tea plantation 144 establishments with 84. coconut (3. and that of avocado which decreased by 33.8 thousand tons). in cacao plantation 222 establishments with 155.7 thousand tons).4 thousand ha. in oil palm.788.6 thousand ha). East Nusa Tenggara is also the main fruit producer.9 thousand ha).2 percent. accounting for 33.360. coconut (3. in coffee plantation 155 establishments tilling 60.648. Large-scale companies engaged in rubber plantation in 2003 numbered 453 establishments.876.61 percent of the Island's total production.7 thousand ha. cacao (817.7 thousand tons).456.325 thousand tons). coffee (669. five es tablishments with 1.4 thousand ha.1 thousand ha).3 thousand ha.8 thousand ha). there were 882 establishments with total plantation area of 2.0 thousand ha). there were 230 establishments cultivating some 78.3 thousand ha. in kapok 25 establishments with 4.9 percent.875. cultivating a total planted area of 543.796.0 thousand ha). 126 . and 16 companies of quinine estates. Fruit production in 2003 declined due to chiefly the decrease of lanzon production from 208 thousand tons in 2002 to 116 thousand tons in 2003.6 thousand tons).8 thousand tons).810. oil palm (1. 19 companies of tobacco estates. West Java is a major fruit producer. tea (122. coffee (1.231. in quinine 16 establishments with 1. Within the Java Island. rubber (3. Of outer Java. 803. Major products of large scale estate companies were palm oil (5.1 thousand ha.141.7 thousand ha. they were rubber (1. down by some 44.produces.4 thousand tons). and cashew nut (604.9 thousand tons). palm oil (3. In term of production. palm kernels (1. Plantation Estates Plantation estates consist of large estates and smallholdings.9 thousand ha. Leading smallholding estates in term of the size of cultivated area in 2003 were respectively rubber (3. in jute. and cacao (572. In addition there were 88 companies engaged in sugarcane plantation.
Smallholders cabbage plantation in Lembang, West Java Animal Husbandry The year of 2003 saw a rise of large livestock population: dairy cow grew at 2.90 percent, to 368.7 thousand heads; slaughtered cow went up by 0.87 percent to reach 11.4 million heads, buffalo by 2.18 percent to 2.5 million heads, and horse by 8.06 percent to 452.9 thousand heads. So did the population of small livestock such as goat that amounted to 13.3 million heads or a rise of 5.79 percent compared to that of 2002, sheep eight million heads or a rise of 5.04 percent, and pig 6.3 million heads or a rise of 7.05 percent. Also noting an increase was the population of poultry: native breed chickens in 2003 amounted to 85 million heads or a rise of 8.98 percent, broiler chickens 917.7 million heads or a rise of 6.08 percent, and ducks 48.1 million heads or a rise of 4.16 percent.
Large scale palm oil estate in North Sumatra Province 127
Exports and Imports The exports of agricultural commodities (excluding those of fisheries and forestry) went up substantially by 26 percent in 2003 to a total of US$5.7 billion from US$4.5 billion in 2002. The year 2003 also saw the net exports of agricultural commodities arising significantly from mere US$0.8 billion in 2002 to US$1.35 billion, an increase of 225 percent. Of the amount, the commodities of plantation accounted for US$2.91 billion, horticultures for US15.3 million, but animal husbandry suffered a decrease to US$139.4 million. At the same time total imports of agricultural commodities recorded a rise of 4.94 percent to reach US$4.37 billion in 2003 from US$4.16 billion in 2002. Exchange Values of Commodities In general, the exchange values of agricultural commodities in 2003 were better than in 2002. In Java, the value increased between 2.59 percent and 31.11 percent. Of West Java, a province in Java Island, it grew by 4.84 percent, in Central Java 9.84 percent, in Yogyakarta 2.57 percent, and in East Java 31.11 percent. Of outer Java except of North Sulawesi, South Kalimantan and Bali, there was an increase of the agricultural commodities' exchange value. In West Nusa Tenggara it recorded a rise of 5.77 percent, in South Sumatra 4.23 percent, in West Sumatra 3.40 percent, and in South Sulawesi 2.27 percent. Six out of 14 provinces which their agricultural commodities' exchange value was less than 100 percent were Lampung (74%), South Sumatra (74%), West Sumatra (91%), and North Sumatra (99%). If this exchange value was a reference of peasants' welfare, it could be reasonable to say that the peasants' welfare was improving. Prospects of Agribusiness
Bullfrog farming for export commodity, at Pacitan, East Java
Indonesia's economy for the year 2004 is envisaged to grow at 4.8 percent, and during the first quarter of 2004 it recorded a growth rate of 3.54 percent (based on constant prices). Recording the highest rate was among other things the agricultural sector (agriculture, forestry, and fisheries) that grew at 17.07 percent. Attributable to such growth rate in the sector were the sub-sector of food crops that went up by 54.99 percent and of animal husbandry by 6.69 percent. On the contrary, other sub-sectors such as plantation grew minus 22.29 percent, forestry minus 29.83 percent, and fisheries minus 8.92 percent. The World Bank predicted that estate commodities such as coffee, tea and crude palm oil would increase. So would the price of rice to return to the level achieved in 2002. According to the prediction, meanwhile, economies of the developed countries would be growing at 1.5 percent, and of the developing countries at between 4 percent and 4.9 percent. At the same time the world's trade would go up by an estimated 4 percent. The said trends would certainly affect economic development in Indonesia. Another factor that would also influence economy in Indonesia is the recovery of Iraq, for this country is one of the countries importing Indonesia's commodities. What is more, the exports of Indonesian coffee, cocoa, and pepper to the US would probably be affected by the imposition of the Bio Terrorism Act and stricter export procedures by the US. Market segment of Indonesian traditional export commodities would also probably dwindle by the admission of 16 East European countries to the European Economic Community. In general, the exports of Indonesian agricultural products still have promising prospects in some regions such as the Middle East, South Asia and East Asia, but they will largely depends on creativities and shrewdness of Indonesian exporters to seek out and manage the opportunities. In promoting the agribusiness, the Government has taken measures to among other things continue augmenting productivity and improving seedling system; to keep on schemes of direct financial assistance to peasants; to continue modernizing the agribusiness system and its production marketing as well as agricultural tools particularly in rural areas; and to continue struggling for fairer trade policy through the World Trade Organization. Poultry and Bird Influenza Epidemic The country's large number of population should certainly be a potential market for the production of chicken eggs and meat. These days the country's per capita egg consumption is 50-60 eggs annually, and per capita consumption of chicken meat is ranging from 3.5-4.0 kg per annum. After being hit by the impact of the monetary crisis in the middle of 1997, the poultry industry in 2001 started indicating its recovery, and become a substantial economic mover. The poultry industry involved businesses worth estimated at Rp 50 trillion as it was reflected in the production of poultry feed of six million tons per annum, with price assumption of Rp 2000 per kg. In 2002 Indonesia was known as one of eggs-producing countries with cheapest cost of production and selling prices.
During the period of 1974-1986, in which the country's economic growth rate recorded as high as seven percent per annum, the sub-sector of animal husbandry's GDP once accounted for some 25 percent of total contribution of agriculture to the country's GDP. Modernization of animal husbandry in Indonesia began in late 1970s when the breeding of egg-laying chickens, broilers, and native-breed chickens had been developing rapidly. The chicken feed industry usually related to foreign investment also flourished. Of the total 854 million chickens in 2004, broilers accounted for 524 million heads, native chickens for 263 million heads, and egg-laying chickens for 67 million heads. They were susceptible to viruses of the so-called "bird influenza" recently attacking several countries in East Asia. The Government officially admitted that this dangerous chicken disease attacked some provinces in Indonesia in January 2004. In protecting chickens and minimizing victims of the disease, the Government helped farmers in tackling the endemic by providing vaccine (Avian Influenza Vaccine), imposing biosecurity, socializing and disseminating information related to bird influenza, and other preventive actions. The number of chickens victimized by either bird influenza or Newcastle Disease (ND) etc., was 4.7 million heads or 0.05 percent of total population, relatively low indeed. However, the plague had caused Japan to temporarily stopping of importing chickens from Indonesia, and domestic consumption declined to the lowest ever of 20 percent of total supplies, and the prices of chicken meat dropped substantially. The price of feeds on the contrary soared because some 70 percent of materials were imported. The country's exports of poultry in 2002 amounted to US$4.8 million. In tackling and eradicating bird influenza endemic, Indonesia along with other countries such as Thailand, Vietnam, Laos and Cambodia received emergency financial aid from the Food and Agricultural Organization (FAO). Prospect for poultry industry of post-bird flu plague is still promising and its domestic market is still significant. Technological innovation in poultry industry is indeed required to improve output qualitatively and quantitatively. Also required is to improve the production of corn as one of prime raw materials for feed industry. FORESTRY The main aims of forestry policy are to maintain the preservation of forests for the improvement of public welfare; secure the existence of forests, optimize the benefit of forests; and reinforce forestry institutions. To achieve these aims, with reference to policy and strategy having been determined, there are five priority schemes put into operation in addressing the major issues of forestry: Illegal Logging Eradication scheme; Forest Fire Handling scheme, Forestry Restructurization scheme, Rehabilitation and Conservation scheme of Forest Resources; and scheme for Decentralization of the Forestry Sector.
and at the same time to protect people living around fires-prone forest areas. Early warning system is given priority to be developed in the context of preventive actions against forest fire.Illegal Logging Eradication Scheme The scheme aims to secure and preserve forest resources. Forestry Restructurization Scheme The main aims of the scheme are to preserve forest resources and to manage them in order to provide socio-economic and ecological benefits for the whole Indonesian people. in order that forests are managed in a sustainable fashion. In this frame work. the implementation of forestry sector soft landing. and with the Governments of countries joining in the Forum of Forest Law Enforcement Good Governance (FLEG). Riau. to manage well the supplies of wood for industrial raw material and to secure that only legal logs and timber are available in the market. South Korea. and the establishment of the Forestry Industrial Revitalization Agency to improve performance of the timber processing industries. which recently tend to decline. The 131 . Forest Fire Handling Scheme Under the scheme it has been and is being strived to prevent and minimize forest fire. with each area has already a Forest Fire Brigade. etc. The zero burning scheme has been also imposed upon forest concession holding companies to prevent forest fires. and from HIMAWARI of Japan. and to encourage the establishment of viable wood industries and of efficient wood industrial structure that can produce products of high quality and having competitive edge in global market. including: maintaining close cooperation with the Police and the Navy in intensifying the operation to fight illegal loggers on the spots (such as under the Waralaga Operation that enforces a law upon illegal logging including transport and trading of illegal logs. Similar cooperation has also been organized with the Governments of Japan. The early detection system on forest fires is taken from meteorology data satellite of the US National Oceanic and Atmospheric Administration (NOAA) and from the Geo-Stationary Meteorological Satellite (GMS-5). as well as intensifying activities towards the establishment of conserved forests. and of improving law enforcement. and under the Operation of Wana Bahari done by the Navy to hunt down the transportation of illegal log by sea). Execution of the scheme also covers: the implementation of sustainable production forest management being the manifestation of sustainable forestry development concept. Under the scheme various activities have been done. Cooperation has been maintained with donor countries in handling forest fires. International cooperation has also been maintained such as with the Governments of the UK and People's Republic of China in the context of curbing down and fighting the illegal trade of logs. there have been spotted fire-susceptible areas that should be given high priority in dealing with forest fire. and East Kalimantan. and to intensify surveillance operations along the northern coast of Java to prevent smuggling of illegal logs from outer Java. namely gradual reduction of timber production from natural forests as an effort to curb down the destruction of forests. Those areas include North Sumatra. Jambi. Central Kalimantan.
urban forest.000 ha in 27 river basins. In the implementation of the scheme of rehabilitation of damaged forest and land. through a scheme known as "seed for people". various measures have been. Through this scheme. Regarding the decentralization system. and 300. types of plant. promotion of active participation of society in the program of forest and land rehabilitation. Banjarbaru. multilateral as well as international cooperation. economically and socially can be maintained and even improved. are being and will be done to include: rehabilitation and reforestation programs of damaged forests and land of about three million hectares in five years. improvement of institutions engaged in forest seed under the auspices of the Indonesian Forest Seed Project (IFST) through maintaining bilateral. explore the possibilities of employment and business opportunities. and to accelerate the recovery of damaged forests.agency is also tasked to endeavor the preservation of forest. the Ministry of Forestry has provided Rp134 billion to 182 district administrations. and reforestation fund. the development of social forestry to improve the management of forest and land preservation. By conserving forest resources it is hoped that the utilization of forest function and status ecologically. arrangements of national and regional-scope master plans for forest and land rehabilitation. economic and ecological values of forestry are expected to be optimum. and simultaneously animal population. Forest Resources Rehabilitation and Conservation Scheme The scheme aims to secure and maintain the still unimpaired forests. utilization and use of forest areas. and to create common understanding and perception on forestry decentralization system in implementing sustainable forest management in the context of regional autonomous system application. 132 . and the establishments of Forest Plant Seedling Houses (already available are in Palembang. to empower members of society particularly those who live around forest areas to enhance their welfare. genetic germs and ecosystems existing in the conserved forests be protected and preserved. To make the implementation of the scheme successful. and social conditions of the people living around the forest improve by getting direct benefits from it either as the doers or business partners. have been imposed. various regulations which govern forest management. Bandung. Denpasar. Makassar. Decentralization Scheme of Forestry Sector The scheme aims to promote the good organization of coordination of decentralization system in the field of forestry among related agencies and institutions in conforming to their respective authority and function in order to create harmony in actions to achieve better performance. forest management planning. and Ambon).
forests can offer directly and indirectly.06 million ha limited production forest. Indonesia has as many as 27. but also regulate the supply of water. and by-products such as rattan. Indonesia has a total forest area of about 120. and wildlife sanctuaries (51 areas). major forest parks (13 areas). Most of these species are found in forest areas which these days are suffering heavy pressures from different fronts such as animal smugglings. or about 10-12 percent of the estimated number of plant species in the world. Indonesia has also some 1. about 33. flood. and pollution.Ecology Indonesia still has many parts of its territory covered by the luxuriant growth of the characteristic tropical rainforest vegetation.25 million hectares or some 63 percent of the country's total land area. In 1997 employment in forests was estimated at 183 thousand. 133 . 23. resin. hunting ground (15 areas).539 species of reptile and amphibians (16 percent of the world's reptile). Forests provide not only its main products such as many kinds of timber. About 6.52 million ha protection forest. and about 8. excessive and indiscriminative timber cuttings have to some extent degraded.500 species of flowered plants or about 10 percent of the estimated number of flowered plant species in the whole world. a type of ever-wet vegetation containing a large number of timber species. nature conservation (179 areas). Conservation forest area is divided into national parks (41 areas).5 million ha constitute parks and reservation forests. socially and economically. prevent flood. aloe wood. illegal hunting. For instance the total number of people earning their living directly or indirectly from forests was estimated at about 30 million. timber illegal cutting. draught.000 species of plants are known to be used directly by the local people. nature recreation parks (89 areas). and kinds of bird 17 percent.07 million ha of convertible production forest.000 species of plant. about 35. kinds of fish 25 percent. While its mammal accounts for 12 percent of the world's mammal. and about 40. What makes the flora of Indonesia completely different from those of other countries as well as the flora of other tropical areas in the world is among other thing its high number of genera and species endemic. depleted and damaged the forests. illegal trade of protected species of flora and fauna etc. and offer employment. Forest Social-Economic Function Numerous people have enjoyed the benefits. micro-seasonal changes. Frequent landslide. Unfortunately reforestation and land greening have not kept abreast yet during the past few years. theft of germ plasma. Of the area about 20.2 million ha production forest. sandalwood etc. As it is recorded.
892 million cubic meters of timber per annum natural forests can supply. The number of sawmill and wood working. 339. In 2003 the Government imposed a regulation that determines a maximum of about 6. private enterprises.5 trillion. TRANSPORT. In 2001.881 establishments with installed capacity of 44.60 million cubic meters raw materials can supply. fair and open business climate in the transport sector so that all business players such as state-run enterprises.867.614 cubic meters (from 2000 to 2002).5 million ha belonging to 182 forest concession areas were managed by private companies. qualified secure.Forest Concession Up to December 2002 there were 270 valid forest concessions. and the remaining 5. exploiting for about 28 million ha of forest.096 persons touring conservation areas. capable of offering services and benefits for the people. some 22. This limitation is intended to recover forests potentiality and to achieve balance between supply and demand of timber logs as raw material.2 million ha belonging to 83 forest concession areas were administered by Joint-Venture companies between private and state owned enterprises. reliable. pulp mill was 1. and 3. and integrated with the regional development drive.77 million cubic meters far higher than the 18. for instance. and to realize the national transport networks in inter-model system. Of the total area. The main aims of development of transport means and infrastructure are: 1) to rehabilitate and maintain the existing transport means and infrastructure in order that they function as they should. In meeting the supplies of timber as raw materials for industries such as for pulp (for making paper) and other purposes. The Government revenues from reforestation funds (collected from forest concession holders) and other taxes and levies during the period of 1999-2002 amounted to Rp13.220 persons visiting nature parks. They are designed to be part of the whole system of distribution. scheme of industrial timber concessions has been in operation for some years covering about 2.344. including making the rural and urban networks function properly. An encouraging trend is that the number of people visiting nature tourist objects such as nature parks and conservation areas has been increasing. plywood mill.221 ha (up to the end of 2002) to produce 16.101. there were 741. as well as central and regional governments take part 134 . 3) to create a much more favorable. and affordable. POSTAL SERVICE AND TELECOMMUNICATIONS Development of transport means and infrastructure continues taking place to make services much more efficient. 2) to make them meet the standards of transport security services operation of domestic and international ones.240 ha belonging to five forest concession areas were run by state-owned enterprises.
of which 73. pick ups and vans 7. along with new construction of roads. rehabilitation and improvement of transport infrastructure of land transport.10 percent buses.6 thousand km are under the management authority of the central government. and to link the centers of production and their market places.4 thousand km. 13 of 1992 on Railways. and competition fairer and healthier. buses for 1. and 4) to meet at least the minimum necessities of transport services in remote or rural areas. and air transport In making the traffic of goods and passengers services run more smoothly to reach even remote areas.99 million vehicles licensed for use on the roads in Indonesia. 15 of 1992 on Civil Aviation. sea. sedans 1. the Government has offered subsidies for the operation of pioneering transport services. and those under the authority of district/municipal administrations. Law No. of which motorcycles accounted for 90. 48. The total length of road networks in 2002 was 368. Law No. The studies have been so far leading to among other things final drafting of amendments to the existing laws in the field of transport (Law No. of which some 27.9 thousand km under the authority of provincial administrations.07 percent. there were 50 pioneering bus routes in 2001. including inland waterways (river. and to take measures on tariff and subsidies more conducive to investment by private and state-owned enterprises. It is worth noting that the number of vehicles assembled at home in 2003 was 3. At the end of 2002 there were 22.370 in 2004. Road Transportation Roads play a leading role in passenger and freight traffic. 8. which increased to 92 routes in 2004. up from 17. an increase of 19. Improvement and repair as well as maintenance. are continuously being made in the network of roads which are classified into road networks under the central government's management authority (which form a basic network linking major cities. industrial areas and ports). 13 of 1980 on Roads.03 percent. Enjoying the subsidy scheme for pioneering bus services. which were numbering 19. 21 of 1992 on Sea Transport). in addition to the economic-class transport services for people of economically low-andmiddle brackets. 14 of 1992 on Road Traffic.actively in providing transport services.28 percent than that of 2002. Law No. to offer the private business sector and regional administrations more room to take part.03 percent. lake and ferry transport).97 percent were passenger cars. in the period of 20002004 priority was given to the development. and 135 . In the context of improving and maintaining transport services. and Law No. and jeeps 0. and 3.28 percent. The number included inter-city buses serving public passenger services. institutional tariff and subsidy aspects as well as the aspects of human resources.21 percent.613 in 2001.12 percent trucks. Studies on transport-related measures covering legal aspects. have been and are being done to improve services.46 percent. The amendments to these laws are designed among others things to reposition the real role and function of the Government in public transport services. trucks 0. those under the management authority of provincial governments.12 million units.
including the installation of 1. and improve the role of residential areas along and by borderlines as international gateways. 20. Buton Island. 11. Road widening and reinforcing of their surface structures have been made to some 3.130 m mainly on 136 . Flores-Seram routes. and East Nusa Tenggara (with Timor Leste). Sangihe Island and Wetar Island. at Papua (with Papua New Guinea). The road constructions in those places are also designed to speed up development in the country's less-developed eastern territory. The Suramadu (abbreviation of Surabaya and Madura) suspension bridge that will link Surabaya and Madura across the Strait of Madura in East Java is under construction. East A bridge over Kahayan River in Central Kalimantan Province Kalimantan (with Malaysia).000 m of bridges along the road networks of Java's northern coast. such as Jayapura-Wamena route.500 traffic nail marks and road marks of 349. To address the issue the Government has managed to construct and install road safety devices. and road routes along borderlines at West Kalimantan.000 m of bridges have been built to open up residential areas along and by the country's borderlines with a few neighboring countries. Some 1. in addition to the construction of 2. Road safety and facility The country's road accident record had been considerable. Sumatra's eastern coast.500 km of roads and 1. at Sumatra's western coast including Ladia Galaska route (a land route linking Indian Ocean's coast to coast of Malacca strait via Gayo and Alas mountains) in the Province Nanggroe Aceh Darussalam.291. Some 850 km of roads and 1. making accident road traffic density high enough.000 km. in addition to roads in Nias Island. Also under construction is the 40-km toll road between Purwakarta and Padalarang (West Java). Buru Island.8 thousand km under the authority of district/municipal administrations. which will shorten the drive time from Jakarta to Bandung to only about two hours from about four hours currently.185 traffic lights.500 m of bridge were also built at Java's southern coast. Kalimantan routes and Sulawesi routes.976 m of road safety fence.
Riau and North Sumatra. Railway facilities and infrastructure continue to be made available and modernized. there had been the procurement of 1.100 km of R-54 rail track. betterment of rail traffic signs and telecommunication devices. and improvement of a 118. This includes the construction of double-track rail and installation of electronic traffic signs in heavy traffic routes. Yogyakarta-Solo route are being done.25 km rail track of economy-class trains. and construction of a 223 km double-track rail of Cikampek-Cirebon route. the "Transjakarta" bus services has come into operation since the beginning of 2004 to serve the main route of Kebayoran Baru (South Jakarta) Kota (West Jakarta). Rehabilitation schemes from 2001 to 2004 (up to August) included the betterment of rails as long as 71. Cikampek-Padalarang route. Still to minimize the effect of road accidents. it has been made compulsory to wear seat belts in the front sears of cars. and Sumatra Island (North Sumatra. and the Kutoarjo-Kroya route double-track rail is being prepared along with the reconstruction of railway in the Province of Nanggroe Aceh Darussalam. Railways Railway services in Indonesia are available only in Java Island.national road networks.8 km. and repairs of 18 units of diesel trains and three units electric trains. and South Sumatra). along with improved services. Also. in easing the city's traffic congestion two monorail systems have been planned. In addition. faster ride. and wearing helmets for motorcyclist. In offering the public in Jakarta much more comfortable services with relatively reasonable price. 137 . It is also designed to help easing the city's heavy traffic. In dealing with overloaded freight by trucks and container trucks. The state-run PT Kereta Api Indonesia (The Indonesian Railway Company) manages train services. The island of Kalimantan will have such services in a few years to come as preparations are being worked on. West Sumatra. weighing bridge stations have been put into operation in many places including those having been built in West Sumatra.
especially Jakarta and its surroundings such as Bogor. and railway enthusiasts by operating Nusantara. and are equipped with bed rooms. Argo Gede train and Parahyangan train both operate on the Jakarta-Bandung route. and Bekasi. Argo Lawu train and Dwipangga train both operate on the Jakarta-Yogyakarta route. and the Track Access-Charges (TAC) application to fund railways services.7 million.Pasar Senen train station Passenger services The passenger networks consist of inter-city network linking major cities in Java in particular. and commuter services in and around the large cities. Infrastructure Maintenance and Operation (IMO). the coaches of which having facilities and interior decoration of Indonesian cultural nuance.7 million. The PT KAI also provides special services for tourists. In improving railway management. but in 2003 it dwindled to 150. local stopping services. the Gajayana train that operates on the Jakarta-Blitar-Malang route. businessmen. The decrease was chiefly due to tighter competition the services had to face from other modes of transport. dining rooms. and Bima train that operate on the Jakarta-Surabaya route. especially in inter- 138 . runs inter-city executive services such as Argo Bromo train. PT KAI started in the period of 2000-2004 adopting a financial scheme of Public Service Obligation (PSO) for subsidizing the operation of economy-class passenger train services. Gumarang train and Kamandadu train both operated on the Jakarta-Semarang route. The number of passengers transported by trains services in 2000 totaled 190. The PT KAI also operates electrified services from Jakarta to Bogor. mini-bars. The Indonesian Railway Company PT KAI. audio-videos etc. Bali and Toraja trains. Depok. Argo Bromo Anggrek train. meeting rooms. Bekasi and Depok.
ten vessels have been constructed and made available for serving pioneer crossing services. Kalimantan and Papua. 30 crossing wharves and five river and lake wharves developed. While the number of passenger transported by commuter trains tend to increase. The number of both passengers and freight carried on ferry crossings shows an increasing tendency. both in Southern Sumatra 139 . In addition. Inland Waterways and Ferry Crossing The inland waterways. especially in view of Indonesia being an archipelago. etc.city services from air transport. Java and Bali. play an important part in both passenger-and freight-carrying. among other things 13 crossing beacons and 700 river buoys were installed. there were some 277. To open up isolated and remote areas. Development and rehabilitation of inland waterways and ferry crossings continue to improve services. On the contrary the total amount of freight handled by cargo trains rose from 16.8 million tons in 2000 to 17. four crossing and river wharves rehabilitated.99 million tons in 2003. In the period of 2000-2004. Subsidies are also provided for the operation of pioneer shipping services on 59 crossing routes. The number of passengers transported Passenger ship that plies between Palembang and Muntok. particularly big rivers in Sumatra. Meanwhile ferry crossings play a key role in transporting passengers and freight from and to adjacent islands such as between Java and Sumatra.529 cubic meters of mud along some shipping courses dredged.
Papua Province.36 million in 2003.94 million.8 m in length at Kupang (East Nusatenggara). the dredging of 10. and East Nusatenggara.7 million cubic meters of mud along some shipping routes. and a container wharf of 130 m in length in Bitung (North Sulawesi). 22 beacons. including the construction of a multipurpose wharf of 237. and 119 floating beacons). the rehabilitation of 101 units of supporting navigation instruments.9 million tons before increasing to 14. eight pioneer vessels have been constructed and handed over to the administrations of North Sulawesi Province. totaled 35. but the number then shrank to 5. In addition. Sea Transport Shipping has been playing an important role for so many.712 million units. and another five still under construction.4 million tons in 2003. The number of vehicles ferried in 2000 was 8. many years in transporting inter-island passengers and freight. So it is very reasonable the Government to always pay serious attention to the development of shipping facilities and infrastructure as well as improvement of its management.9 million units in 2003. Sundakelapa traditional harbor for inter-insular shipping In the framework of developing sea transport services. and the number swelled to 39. North Maluku. subsidies have been provided for the operation of pioneer-shipping at 174 routes. To make isolated and remote coastal areas and islands better accessible. marine facilities and infrastructure have been made available during the past few years.by ferry crossing services in 2000. for instance. the installation of supporting navigation instruments (12 light houses. Total freight handled in 2000 amounted to 13. the construction of two marine disaster prevention ships and three passenger ships of 2000 type. 140 .
At the same time. m respectively. Of the number. to make them capable of handling larger aircraft and many more passengers and cargo. and Mimika Air. For the year 2004 the Government allotted Rp33 billion for the development of pioneerflight routes in Papua or Irian Jaya by the state run airline company PT. and the remaining 184 fixed-wing aircraft and 163 helicopters were owned by private airline companies. m and 18.303 passengers in 2002. The runways and terminals of Manado airport in North Sulawesi and Ambon (Maluku) airport are among those undergoing expansion. Concerning pioneer-flight.515. Merpati Nusantara. the amount of cargo carried by air was 154.In 2002 overseas freight loaded amounted to 163. the Government has provided subsidies for some 317 routes. and expansion of runways and terminals of 431.450 tons in 2003. up 1. swelling from 9.95 million tons.354.811sq. some 185 fixed-wing aircraft and 13 helicopters belonged to the Government.m respectively.778 tons in 2002. Those include the maintenance of runways and terminals of 470.34 million tons.76 percent from that of the previous year. and 225.920 sq. m and 1. Air Transport Development and improvement of air transport facilities and infrastructure keep on going to improve services. consisting of 369 fixed-wing aircraft and 176 rotary wing or helicopters. up 5.96 percent.179 sq. 141 . Garuda aircraft was in the Netherland's Schippol Airport The number of national fleet in 2003 was 545 aircraft.866 passengers traveled by air. and domestic freight to 139.310 sq. In 2003 a total of some 13.
five automatic port weather devices. Included in the restructurization scheme is the modernization of the agency's instruments and their optimum use. but also those of other strategic elements such as agriculture.5 per 100 populations. rehabilitation schemes of post and telecommunications infrastructures.68 million telephone connections to make the total installed capacity of the company's telephone centre amounting to 10. forestry. irrigation.5 percent penetrating level. rearrangement of radio FM and television frequencies.3 million. two units of three seismograph broadband components. Telkom had added to its system some 1. and the public. Telkom.developments of radio frequency station and procurement of various devices for controlling illegal radio frequencies. the Government has enacted Presidential instruction No. In 2003.6 million in 2002. In anticipating this trend. 142 . Post and Telecommunication Various efforts have been done to improve the services of Post and Telecommunications. with used capacity of 8. continues to improve telecommunication services. three units of accelerograph digital components. During the period of 2000-2003. improvement of laboratory for telecommunications tests to help the supply of telecommunications devices meeting international standards. mobile communications or cellular telephone subscribers totaled 11. internet subscribers grew by 140 percent to reach 865 thousand. water resources. 46 of 2002 and No. in Soekarno-Hatta Meteorological Station. the Agency uses VSAT Link 32 Kbps. VSAT IP. through PT. and the users of internet services swelled by 320 percent from 1. 6 of 2001 on the development of telecommunications and information technology in Indonesia. and one unit of gravimeter. 4.15 million telephones lines. PT. the Agency has developed a center for flight weather information services that meets international standards. 2. The Government.9 million in 2002 to eight million in 2003. among other thing through: 1. and that of cellular telephone is 5.6 per 100 populations. fixed line telephone ratio is 3. For improved meteorological and geophysics telecommunications. a substantial increase from more than 3. transponder and LC. Telecommunications and information are growing rapidly during the past few years. six automatic weather stations (AWS). three units of lightning detector. In addition. Instruments added to the Agency's system comprise one unit of rain radar.Meteorology The institutional restructurization of the National Meteorology and Geophysics Agency took place in 2002 pursuant to Presidential Decisions No. Currently. The restructurization aimed to allow the Agency function optimally and serve not only the interest of transport sector.73 million of telephone or a 3. 48 of 2002. During the period of 2002-2003. 3.
and in 7.615 billion or some 108.147 post offices in 2002 throughout the country. 143 .507. Gas production. silver.8 million Mscf in 2002. on the other hand. coal. and universal service obligation (USO) in field of post and telecommunications. down by 24.016 villages.6 percent of the targeted 463. Of the total amount in 2003 revenues. During the period of 2000-2004. copper.491 billion MMBTU. nickel. consisting of 207 main post offices. down by 39. and gold that spread throughout the country.544 postal services kiosks.621 million barrels or some 84.057. 2.456.7 million. amounted to US$8.2 billion. the Government in 2003 provided PT. MINING Mining sector still plays an import role in economic force.4 billion. as well as in supporting the efforts of economic recovery.6 percent from that in 2001. oil and gas contributed as much as Rp 78. and other minerals resources Rp 1. and accounts for a substantial share in the country's endeavor to recover from its economic crisis.0 percent from that in 2001. the postage consumption for domestic mail and for overseas mail noted a decreasing tendency: domestic mail in 2002 amounted to 282.4 billion or some 110 percent of the targeted Rp 72. and 3.In meeting public service obligation (PSO).072 billion.041.3 million barrels from 474. increased slightly to 3.392 million metric british thermal units (MMBTU) or some 96 percent of the targeted 2.508 billion or some 112. production of oil dwindled to 456.500 villages in 2004. measures taken in this sector give emphasis on the development of its means and infrastructure to make it self-sufficient in meeting the domestic needs and even exports. At the same time overseas mail amounted to 11.556 million barrels and that of gas reached 2. Production of oil and gas has been always quantitatively influencing the economy because the production constitutes one of the basic assumptions in planning the annual state budget.8 million Mscf from 3. Due to the important role the sector does play as foreign exchange earner. In 2003.9 percent per annum. Gross revenues of gas at the same time. Government revenues from energy and mineral resources in 2003 amounted to Rp 79.85 percent of the amount targeted in the 2003 state budget. Pos Indonesia with compensation fund. Those minerals include tin. Oil and Gas Gross revenues from the selling of crude oil in 2003 reached US$11.496 auxiliary village post offices.49 percent of the target. There were 7. During the past five years the sector of energy and mineral resources has been growing averagely at minus 2.579.6 million pieces. Oil lifting realization in the year reached 400. and built telecommunications facilities in 3. Indonesia is in fact rich in minerals in addition to its oil and gas.9 million barrels in 2002.
Indonesia.9 million for the period of three years. In augmenting foreign exchange earning. in 2003 exported 35. the Government in 2003 signed agreements on 15 oil and gas working contracts in land and off-shore areas with total commitment of US$140.150 million barrels per day. Oil refineries are available in Pangkalan Brandan.081 million barrels in 2003. Nunukan. of the amount.05 billion cubic meters were exported to Japan. The contract is worth US$1. of which US$779 million for exploration activities.3 trillion cubic feet. was signed by Indonesia and Singapore. and one LNG refinery and one LPG refinery.Average price of Indonesian crude oil in 2003 was US$28.6 percent above the price fixed for the 2003 state budget of US$22 per barrel. the world's top rank LNG producer.68 billion cubic meters to Taiwan. It is predicted that crude oil production in 2004 would reach 1. or accounting for 1. and of gas.58 billion cubic feet (BCF). up from 1. Lubuk Linggau (South Sumatra). US$3. the Government offered working areas in oil and gas through tenders and direct offers.5 percent of the world's total deposits. Its proven gas deposits are estimated at about 90. 6. it is predicted to increase to 6.096 million for development activities. Investment realization of production sharing contracts in 2003 amounted to US$3. Cilacap. 24. 144 . Cepu and Balongan (Java).482 million in up stream oil industry. Investment in the down-stream sub-sector in 2003 took place by the issuance of approvals for 20 oil refineries. US$2. The country's current total oil refinery capacity is 987 MBCD or 360 thousand MBBL. from 6. In 2004.66 billion cubic meters.10 billion. The seven blocks are Bulungan. Cooperation contracts for seven blocks were agreed through direct offer and were signed in March 2004 and ten other blocks in August 2004.73 per barrel or some 30. and US$686 million for administrative matters.510 million for production. and Balikpapan (Kalimantan).921 million for production activities. in 2003 a working contract of natural gas supply through piped transmission of 100 million cubic feet a day for a duration of 15 years. Dumai and Plaju (Sumatra). and 4.93 billion cubic meters to South Korea.28 billion cubic feet in 2003. and US$329 million for administrative matters. and Boven Digul (Papua or Irian Jaya). In speeding up the economic recovery. US$2. Seruai (Nanggroe Aceh Darussalam).971 million for exploration. Tingau and Ambalat Timur (East Kalimantan). as well as 13 principle agreements on oil and gas supply through pipelines. The Government planned also to invest as much as US$7.
PT Arutmin (14. The country's estimated coal reserve deposit is 5. Indonesia exported LNG as much as 1. PT Adaro Mining Company is currently the country's leading coal producer with coal output of 22 million tons per day.40 million kiloliters. to the US (3 million tons). In 2003. Japan. LPG as much as 1.2 trillion. Papua.15 million tons) and to China (2.65 million kiloliters for households. The supply will last for 12 years. South Korea. The main importers of Indonesian coal are Taiwan. Indonesia signed in 2003 a contract to sell more than three million tons of LNG from the Tangguh field. Coal Indonesia is one of the world's leading coal producers. Also in 2003.02 trillion. of which 26. it reached Rp26. For domestic needs. the total consumption of oil reached 57.7 million metric tons.22 billion tons. and PT Berau Coal (8 million tons). 7.58 million kiloliters for industries. PT Tambang Batubara Bukit Asam (11 million tons). up from 106. ranking third after Australia and China.40 trillion. In addition.105 MT. South Korea (1. coal production is expected to reach 119. the greater part of which is available in Sumatra and Kalimantan. a contract of an additional natural gas supply of 50 million cubic feet per day through piped transmission to Singapore with selling value of US$0. In 2004.77 billion. Trailing behind are the mining companies Kaltim Prima Coal (18 million tons. it dwindled to Rp32. and 11. In 2001 subsidy for oil amounted to Rp36. It is the current Government's commitment to continuously reduce oil subsidy by increasing retailed oil prices.6 metric tons in 2002. or above the targeted Rp13. plans to produce 24 million in the near future).6 million tons).29 trillion in 2002.For the year 2004. South Sumatra in 145 . has been also agreed and signed. and crude oil 59.71 million kiloliters for need of transportation. Parakan special coal pier in Tarahan.7 million metric tons in 2003 and 100.5 million tons).359 billion MMBTU.87 million barrels. and India. PT Kideco (12 million tons).
and 3.306 metric tons in 2002.031 tons.803 metric tons in 2003. among other things in Papua.05 percent of gold.142 million metric tons in 2002.4 percent of gold.3 million ounces. nickel ore is also processed to be nickel matte produced by PT.500 metric tons. Spain. decreasing from 3.786 million metric tons in 2002. and that of silver shrank from 288. South Korea. the reserve can last for about 15 years. Reserve deposit of copper in Batu Hijau is estimated at 1. The company has an estimated gold reserve deposit of 64. the Philippines. The country's total gold production dwindled to 141. total production of nickel matte was 15. 1. 146 .798 tons. North Sulawesi. Inco.5 million pounds.238 kg in 2002. With its fixed production assumption. production of copper concentrate reached 3.000 metric tons. in 2003 it could produce only 71. with annual production is expected to reach 245.13 percent of copper. Another copper mining is being worked on in Batu Hijau. Freeport Indonesia is the country's largest private gold mining company. the production of which reached 17. up 18 percent from 13.366 metric tons in 2002. the country exported tin as much as 62. This concentrate was dug from the Grasberg copper-pit managed by the PT Freeport Indonesia. In 2003.000 ounces.176 kg and silver of 28.806 kg in 2002 to 278. The state-owned gold mining company PT Aneka Tambang operation in West Java could produce gold of 4.52 percent of copper. Private gold mining company operating in West Nusatenggara could produce gold of 585. West Nusatenggara. One ton copper concentrate contains 1. Gold and Silver Gold and silver reserve deposits are scattering in several sites. In 2002. Sumbawa Island by PT Newmont Nusa Tenggara by investing about US$1.9 billion. This copper-pit has reserve deposit of an estimated 2. declining from 42.019 kg in 2003 from 142.570 kg in 2003. Copper In 2003. While its total production still reached 88.000 tons of copper concentrate and 18 tons of gold concentrate that are exported to Japan.695 million metric tons. Germany and Bulgaria. PT.8 percent of silver.Tin production indicated a declining trend. and West Java. and 0.238 million metric tons. one ton of copper concentrate contains 0. So did its exports.5 million ounces.5 million ounces of gold in 2003 or a raise of eight percent compared to that of 2002 amounting to 2. in 2003 it could manage only 5. In addition.395 metric tons in 2003 from 4. Part of nickel ore is processed to be ferronickel. Nickel Production of nickel ore in 2003 noted a slight increase to 4. with its total selling reached 2. India.21 million pounds in 2002.986 kg in 2003. The reserve deposit can be mined for and estimated 25 years.
8 trillion for building transmission networks. industry took 41.34 percent. Sutami (102 MW). The state-owned electricity company Perusahaan Listrik Negara (PLN) supplies most electricity. so non-PLN bodies such as cooperatives or small private companies manage the supplies. Area III (124 MW).114 MW with total production of 108. The greater part of bauxite is exported to China and Japan.283 million metric tons in previous year. using small and medium capacity electricity generation plants such as diesel-power plants. Electricity There are two main electricity grids in Indonesia: the Java-Bali electricity grid. producing 10.53 percent to reach 117. The number of households using electricity supply in 2001 was 27. Not all the country's territory is covered by the national electricity grid managed by the PLN. particularly for remote rural areas. at the same time. In bettering its national grid and in overcoming short supply. Sales of electricity in 2003 amounted to 89.360 thousand MWh. Those plants are Area I (33. The number of villages enjoying electricity supply. The company is also to complete the Java southern transmission networks to improve the security of electricity supply in Java-Bali 147 .3 percent (2. making the electricity ratio in Indonesia reach 60.2 percent (13.9 trillion in 2004.2 thousand or 79. and public 8 percent (2. Out of the total consumption in 1990s.849 GWH).500 MW. industry took 49. commercial 10. household 33.879 MWh. Eleven area electricity boards and four regional electricity distribution boards of PLN are responsible for the distribution and for the retail sale of electricity.5 MW).000 MW). In 2001. which is interconnected by extra-high voltage networks.5 MW). Brantas-Non Sutami (125 MW). and the outer Java-Bali electricity grid. which has not been interconnected yet. Installed capacity of electric power plants in 2002 amounted to 21. was 31. production was increasing by 8. with almost unchanged installed capacity. The state-owned company PLN currently operates 41 hydro-power plants with installed capacity of 3.3 percent.1 trillion for distribution expansion. of which Rp 2.4 percent of the country's total villages.244 GWH). It is also responsible for the operation and maintenance of power stations and the national grid.536 gigawatt hours (GWH).9 millions. Cirata (1. In 2003.266 MW. or 3.644 GWH).262 million metric tons from 1.9 percent. Mrica (176 MW).Bauxite Production of bauxite in 2003 suffered a slight decrease to 1. the PLN is to invest Rp5.20 percent higher than that of 2002. and Jatiluhur (179 MW).5 percent. Area IV (40 MW). Saguling (695 MW).605 thousand MWh. Area II (54. and Rp3. The need for electricity in Java and Bali is supplied by several hydro power plants with total installed capacity of 2. and commercial 13.
Altogether their total potential economic value is estimated at US$82. brackish cultivated fish. The main aims of maritime and fisheries policies are the improvement of the welfare of Indonesian fishermen and fish farmers in particular and the whole Indonesian people in general. They include: empowerment scheme of people who are engaged in fish farming and are living at coastal areas. and is rich in maritime natural resources which have not been optimally exploited. particularly to help accelerate economic recovery and simultaneously improve the people's welfare.06 billion. small-scale private electric companies are encouraged to sell their products to the State-owned electric company PLN. scheme for improving the growth rate of fishery-based businesses in the sector of maritime and fisheries. It means that the development is based on a sustained development conception. MARITIME RESOURCES AND FISHERIES Being an archipelago. The potency includes demersal and pelagic fish catch. with a capacity of 60 MW. Thus this sector is still expected to be a substantial economic mover in the years to come. rehabilitation and conservation schemes of marine natural resources and fisheries and their ecosystems. Indonesia has a total maritime area of 5. the GDP 148 . and that the development of maritime resources and fisheries is made in a sustainable. development scheme of technology and information system of maritime and fisheries natural resources. The country's maximum sustainable yield of sea fish is estimated at 6. In 2000 and 2001. underpinned by development of maritime and fisheries industries having excellent human resources to produce highly competitive products. the maritime and fisheries sector has developed more rapidly to offer a meaningful contribution to the country's economy. marine biotechnological fish as well as fresh-water cultured fish. scheme for enhancing the role of Indonesian waters as the unifying element of the Indonesian Nation and marine culture. the company plans to build two hydro-power plants in Raja Mandala. West Java. the Government encourages companies dealing in the supply of electricity to develop micro hydro-power plants and sell their production to the PLN.000 km. wise and environment-friendly manners. Responsible for policy.8 million sq km and coastline of some 81. In advancing the maritime and fisheries sector. In addition. development and promotion of maritime resources and fisheries is the Ministry for Maritime Resources and Fishery. some schemes were introduced in 2003. to make remote villages capable of enjoying the supply of electricity. As a maritime state Indonesia is rich in fish in term of quantity and variety. and international cooperation development scheme. During the past three years. In augmenting the supply of electricity.4 million tons per annum. sea cultured fishery. spreading in nine major maritime zones. Meanwhile.interconnection.
2 percent.176 ha run by 80. higher than that of sea fish catch production that grew at about 4. At the same time. and it increased to 21 percent in 2003. Sea fish catch grew at an average of 4. and floating net caged sea fish farming was 56. While the growth rate of area for sea cultured fish.of fisheries sub-sector grew at an average of 15. As cultured fish production has an increasing tendency.65 percent per annum. the contribution of the fisheries sub-sector to the country's GDP amounted to Rp46.521 million tons in 2002 to 4.33 percent of the country's GDP. the growth rate of cultured fish production was 7.1 percent of the country's total GDP. The area and establishments then expanded to 730. but in 2003 export value swelled to US$2 billion with export volume of 696 thousand tons.090 ha and 315.39 percent of the total GDP. During the period of 2000-2003 fish products noted a rise of about 5. The export value of fish products in 2002 declined to US$1.63 million. In 2002.76 percent only.44. sea caged-fish farming. sea fish catch still constituted a dominant proportion. That of sea fish catch.51 million tons.3 percent and 43.04 percent. slightly dropped from 81 percent in 2000 to 79. the total area of cultured fisheries was 594. and 28. bringing in a foreign exchange earning of US$1.21 percent per annum from 5.000 fish farming establishments respectively in 2003 or growing at 5.58 percent per annum from 4.48 million tons.6 percent respectively. In 1999. Fresh water fish farming in Riau Exports of fish products in 2001 amounted to 0. Contribution of cultured fish to the country's total fish production reached 19 percent in 2000. 149 . 35. Thus it is reasonable that the development of cultured fish has been given priority in the development of fisheries.61 trillion or constituted about 2.79 trillion or made up 3.728 million tons in 2003.07 million tons in 2000 to 5.57 million with export volume reaching 0. In 2001 GDP of fisheries sub-sector amounted to about Rp34.5 percent in 2003.3 percent respectively.94 million tons in 2003. so has the area and establishments of cultured fish.919 fish farming establishments. on the contrary.67 trillion or accounted for about 2.9 percent. In 2003 it amounted to Rp. Of the total fish production.
The schemes include: scheme for improving productivity of economic activities.2 million cultured fish farmers.14 percent per annum. During the period of 2000-2003 law enforcers had handled and settled 186 criminal cases in the field of maritime and fisheries.30 million tons in 2003. promoting coordination among related government agencies such as among the Ministry for Maritime and Fishery and the Police. there were estimated 7. Various schemes have been introduced to empower fishermen. kerapu. The number of fishing vessels rose by 1. 150 . development scheme for small-scale sea fish catch undertakings. the Government has imposed a decision that allows no more than 900 foreign fishing vessels to operate in the 200-mile EEZ limits.1. cultured fish farmers and communities living at coastal areas. Attributable to the increased fish production during the last three years had been the bigger number of fishing vessels and even fishing boats being operated and modern technology applied to augment productivity. In minimizing illegal fishing by foreign fishing vessels. securing the country of about Rp.4 million fishermen and 2. In 2003 there were 3. the Navy etc. domestic fish consumption rose at an average of 6. reinforcing law enforcement and the imposition of fish catch control. and promotion for collective fish farm undertakings. with composition of larger-size vessels bettering to make increasing number of employment. improving licensing system for fishing businesses.69 million tons. In this context. the Government has maintained and improved cooperation with the governments of the People's Republic of China. Illegal Fishing Having sheer waters territory.000 foreign vessels fishing illegally. and Thailand. The scheme for improving productive activities of coastal communities has been implemented up to 2004 in 527 districts throughout the country. encouraging local fishermen to improve their fleet and fishing equipments. among other things. In 2003 alone the Indonesian Government was successful in capturing a number of foreign vessels fishing illegally on the country's waters territory.83 percent per annum from 449 thousand in 2000 to 474 thousand in 2003. Before the decision took effect.055 trillion in potential loss. seaweed. Also in overcoming such illegal fishing. the Philippines. and 5. cultured fish intensification scheme for shrimp. and nila fish. rural fish farming development scheme. Indonesia is faced with rampant illegal fishing within its seas by foreign fishing vessels. the Indonesian Government has taken some anticipative measures. During the period of 2001-2003. particularly within the country's 200-mile limits of its Exclusive Economic Zone (EEZ).Domestic fish consumption in 2001 reached 4.
some 50 percent of sea sand exploitation areas are closed. profitable and much in demand by both domestic and international market. while others are being processed. With the imposition of the sea sand exploitation zoning areas. the campaign aims to build infrastructures for both sea fish catch landings and cultured fish farming. and construction of coastal protective structures has also been done to maintain the ecosystem in a number of islets. 33 of 2002 on Control and Surveillance of Sea Sand that governs the mechanism of control and exploitation of sea sand. Regarding the management of islets which are many in number. the Government has identified their basic data.Sea Sand Exploitation In dealing with the control and surveillance of sea sand exploitation the Government has issued Presidential Decision No. The years 2004 and 2005 would be the phase of preparatory to reinforce the ground of the scheme as the continuity and improvement of the on-going development. National Campaign To more advance the maritime and fisheries sector. the regulation on exports of sea sand is governed by Decision of the Minister of Industry and Trade No. The main aims of these endeavors are to improve and preserve sustainable exploitation of natural resources for the interest of environmental and socio-economic development in helping governmental decentralization. endeavors have been made to manage integrally the resources of seas and coastal areas. and the construction of mini ice plants in several islets. Rehabilitation of mangrove forests. in October 2003 at the Tomini Bay. along with planting of coral reefs. It has also built some facilities and infrastructure such as communication devices. Meanwhile. 598 of 2003. the Team for Controlling the Exploitation of Sea Sand. of which eight arrangements have been enacted to be Regional Ordinances. designation of local seas conservation in four locations. and business circles. In short-term. Activities of these endeavors include: the arrangement of seas. and the formation of an ad hoc institution. President Megawati Soekarnoputri launched the national campaign for maritime and fisheries development. South Sulawesi. coastal areas and islets management. and to address all marine problems through synergic efforts by communities. So far the Team has issued regulation on quota and zoning areas for the exploitation of sea sand. Marine and Coastal Areas Ecosystem In pursuing an improved quality of the ecosystem of seas and coastal areas. solar-system electric power installations. and the national campaign for cleaning the seas and coastal areas from organic litters. rehabilitation of coral reefs in six provinces covering 12 districts. The Team is tasked to mainly manage and run the mechanism. The major aims of the campaign are to manage and maximize the exploitation of the sector. Infrastructures and facilities to be constructed include industries to process cultured 151 . government. Kinds of fish to be cultured and developed are fish having high economic values.
Article 27 clauses (2) the development of manpower aims to provide jobs and business opportunities for the working population to enable them to have jobs and earn their proper living. the CSIRO and AIMS of Australia. The construction of the center received financial assistance from several countries including the US. Germany. sea pollution. Furthermore.shrimp. CLS-Argos and Spot Image of France. and to safeguard resources of illegal fishing. marine tourism. and marine technological innovations. Indonesia has been selected as the site of the center due to chiefly to the fact that Indonesia has seas with highest bio-variety in the world. Research Center In 2003 Indonesia initiated the establishment of an ocean research center named the Southeast Asia Center for Ocean Research and Monitoring. the Policy also envisages the improvement of quantity and quality of manpower to work abroad by taking into account their competency. Bali Island. Restec Mitshubishi Corp of Japan. Necessary infrastructures and facilities are to be made available in some 89 islets along the country's borderlines. such as fishery. France. and environment-friendly energy. and other islets and islands to control pollution on seas. which is located at Perancak. and Australia. transport. JIFIC. secure the welfare of manpower. BMBF of Germany. JICA. Chiba University. mining at the deep-seas and coastal areas. legal protection. Joining the center are noted international institutions such as the National Science Foundation and NOAA of the US. The main aims of this center establishment are : to improve marine monitoring and research in Indonesia and Southeast Asia region. mollusk. to develop small-scale fish catch undertakings in all provinces. maintenance of coastal and marine environments. In addition. and to run meteorological monitoring system for monitoring local or sub-regional weather conditions. It also serves information on marine resources management. MANPOWER Pursuant to the 1945 Constitution. the UK. and to protect manpower and the freedom to associate. better wage. The center provides information on various matters. and legal defense which are managed integrally to prevent the emerging of manpower exploitation. The same things are to be developed to promote marine tourist potential at coastal areas and islets. Korean Ocean Research and Development Institute of South Korea. cultured fishery. Canadian Space Agency. which has an estimated economic value of about US$2-US$4 billion per annum. the 1999-2004 Broad Outlines of State Policy stipulates that the comprehensive and integral development of manpower aims to improve the competency and self-capacity of manpower. Radarsat International of Canada. 152 . seaweed. and patin fish as well as sea fish catch. satellite monitoring on weather and seasons.
Labor force participation rates (LFPRs the number of population classified as labor force for every 100) of the country in 2003 recorded a decrease to Women working at a tobacco company 153 . improvement of quality and productivity of manpower scheme.37 percent of them were in Java Island.Based on the policy there are various programs introduced. program of social security system development. Labor Force The total working population of Indonesia in 2003 was 152. of which some 60. including: expansion and development of job opportunities scheme. and social insurance program.6 million.
Agriculture employed about 42 million people.4 million. and (4) to improve the mechanism of the sending.54 percent).3 million. with some 59.23 percent). manufacturing industries. In striving for the expansion and development of job and business opportunities. The unbalanced growth rate of manpower and job and business opportunities as well as economic growth caused unemployment. Meanwhile. and to set up an excellent manpower information system. and the figure increased to 9. to develop Indonesian workers who are qualified and capable. self employed assisted by temporary employees (53. and employers (6. Open unemployment in 2002 numbered eight million people. the goals of the scheme are: to expand job opportunities in various fields of business. Employees in Indonesia in 2003 numbered 23.72 percent from 67. of which some 90.23 percent). both at rural and urban areas. guidance and selection of Indonesian workers who want to work abroad. provincial and district administrations. The total number of labor force in 2003 was 100. and some 32.99 percent of them were unpaid workers.50 percent had been working. trade sector and agriculture. with lower level of education (secondary school and under) accounting for 76. The total number of unemployment in 2004 is estimated at 10. and seek out their protection. business representatives and representatives from higher learning institutions. the Government in July 2004 launched a National Campaign for the Handling of Unemployment.76 percent in 2002. At the same time the number of population employed totaled 41. The campaign aims to nurture sensibility and awareness of government apparatus and members of society to seek a solution to overcome the growing unemployment. and augment foreign exchange earnings through the sending of Indonesian workers abroad.68 percent of them was of lower level education and the remaining 40. (3) to set up settlements for new inter-island migration to expand job opportunities in agriculture. Expansion and Development of Job and Business Opportunities The main aims of the scheme are: to reduce unemployment and disguised unemployment through adding working hours in various business fields. which involved leading figures of central. entrepreneurship development. The major activities of the scheme include: (1) to improve trainings with curriculum related to acknowledging efficient technology.8 million people.65.32 percent of higher level education. (2) to prepare and disseminate information on job market. comprising self employed (40.8 million or some 26.5 million people in 2003. and other supporting skills and expertise in order to make the work force capable of creating job opportunities.22 percent of higher level of education (college and university).78 percent and the remaining 23.25 percent of the country's total working population. Mostly they worked at the service sector. 154 .
499. 171 people undergoing job-trainings at home. the number of job seekers getting placement under the scheme of PIYM/VM was 210. During the past three years the number of Indonesian workers who had been placed overseas totaled 1.183 people undergoing apprenticeship abroad. The number of Indonesian workers who had overseas placement from January up to May 2004 was 106. 2. 4. The main activities under the scheme include: the development of competency standardization and certification done through the formation of an institution dealing with competency standardization and certification.993 people undergoing institutional trainings. high productivity and high competitive edge both in domestic and international market.088 people undergoing training for on-the-jobtraining abroad and 2.930 job seekers under the placement program of Educated Independent Manpower (EIM). and improving trainings and all aspects that affect productivity enhancement. employees. and efficiency of the job-trainings organized by the Government as well as private institutions. 98.753.344 job seekers employed under the placement program of Professional Independent Young Manpower (PIYM)/Volunteer Manpower (VM).Under the campaign scheme. popularizing.602 job seekers under scheme of Inter-regional Manpower Placement (IrMP). 8. there were 1. attending institutional trainings and 20. 4. 1.225 people undergoing training of trainers. in 2003 there were 4.406. the betterment of relevancy.867 workers getting jobs abroad. Under the scheme.38 percent of them working in non-formal sector and the remaining in formal economic activities. The number of job seekers placement in 2003 showed an increasing trend compared to that of 2002. and of Special Manpower Placement (InMP). in 2003 there had been 14. and the placement of Indonesian workers abroad totaled 18. as well as another 293. Improvement of Quality and Productivity Scheme The scheme is aimed at encouraging. 258 undergoing training for trainers. some 75. The chief target of this scheme is the availability of work force having good quality. leading figures of communities and non-government organizations. 820 persons attending entrepreneurship trainings and 123 persons attending training on institutional productivity development. Local Manpower Placement (LMP).883. and the promotion of the system and method of productivity improvement. and 2. Up to May 2004. Up to April 2004 there had been 167 institutions organizing training for workers who wanted to work overseas.419 job seekers under Expanded Labor-Intensive scheme.521 people undergoing non-institutional trainings.885 job seekers under the labor-intensive scheme. 1. social workers. and 171 people undergoing on the job-training abroad. quality. The sending of Indonesian workers to the Middle East countries had been handled by 171 service companies and to Asia-Pacific region by 233 service companies. under expanded labor-intensive scheme 1.764 people taking part in entrepreneurship training. under labor-intensive scheme 457.800 people consisting of job seekers. and under schemes of IrMP. under EIM scheme 248.300.069. Up to May 2004. 155 . LMP and InMP 9.485 people of the same professions attending non-institutional trainings.
207 workers. the composition of 9.821 companies. and healthy vocational security.200 persons taking trainings on Manpower Institutional Development (MID). the settlement of 63 cases of labor strikes and protests. company regulations for 36. enhancing working conditions. 22.630 persons attending training courses on Communications. In addition. to improve obedience over the implementation of regulations on labors. More similar attaches will be commissioned and posted in other countries such as Singapore.16 million workers working in 102. and the 10.745 persons on Employment Protection and Industrial Relations Control (EPIRC).118 joint cooperation agreements. 156 . and Taiwan are still under preparation. and 9.876 persons taking training courses on MID. Under this scheme. 1.8-percent increase of regional minimum wages. to improve vocational safety and health. In 2004 (up to May 2004) there were 866 persons attending training courses on CIE.Industrial Relations There is a program designed to maintain a working and business tranquility in order to create harmonious relations between employees and employers that in turn will improve the welfare of employees and their families. Brunei Darussalam. three Government Officials (attaches) have been currently commissioned and posted in those countries.530 persons having guidance on Job Requirements and Labor Welfare (JRLW). and Taiwan. in 2003 there were 14. some 160 cases of industrial disputes and lay-off were settled. to follow up various regulations of the ILO Convention on Labor Protection. 1. South Korea. So far memorandums of understanding (MoU) on the placement of Indonesian workers have been agreed and signed with Jordan (in 1996) and with Malaysia (in 2004). control. 3. and in helping them when they have problems involving legal cases.269 enterprises. The main activities of the program are: to promote industrial relations and labor protection in order to encourage the formation of labor institutions in companies. the arrangements of company regulations for 36. Qatar.210 enterprises were drawn. This program is aimed at improving labor institutions in companies. Information and Education (CIE). and social security for improvement of labors welfare.76percent increase of regional minimum wages and provision of Employees Social Security (locally known as Jamsostek) to 20. Similar MoUs with other countries such as Syria. Hong Kong. In the context of dealing with all matters of Indonesians working abroad particularly in Malaysia and Saudi Arabia. South Korea.102 cooperation agreements were made. which has been ratified. Kuwait. to enhance protection. along with the settlement of industrial disputes and lay-off for 1. and law enforcement of regulations imposed on labors. Also done under the scheme were the 14.
This social security is necessary in protecting individual workers. during its 2001 Annual Session commissioned the President of the Republic of Indonesia to establish a National Social Security System in the framework of granting the labor force a comprehensive and integrated social security. Further. Parallel with this. unpaid wage. Although still short of covering the communities. as stipulated by the nation's Constitution. and accident. work accidents. In dealing with all social risks arising during the employment of Indonesian workers overseas or during preparation for the overseas placement at home. as well as the communities from emergency conditions caused by among other things famine. permanent deformity. and c) post-placement program that embraces insurance on death due to accident. Article 28H clause (2). including the cost of burial/sending a corpse to his/her native hometown. and allowances for celebrating religious commemorations. states that "the State shall develop a social security system for the whole Indonesian people…" Meanwhile. b) on-going placement program that covers insurance on outand in-work accident. The operator of this social security scheme has been asked to expand its services. 157 of 2003. the People's Consultative Assembly of the Republic of Indonesia. their family members. The schemes are also aimed at covering more and more number of people being protected by social insurance schemes. to build public facilities for religious houses of worship. there has been a scheme locally known as Jamsostek. and lay-off . for sports etc. It is a social security scheme for employed workers. death due to accident or sick. sick. maximum treatment. such as to provide its members with down-payment for credit of house mortgage. and total paralysis caused by accident. 102 of 1952 recommends all countries to provide protection to every worker. are designed to protect members and their families from unfavorable situations such as layoff. the International Labor Organization's Convention No. The insurance scheme consists of three kinds of programs such as : a) pre-placement program that secures insurance on death. sick treatment. through Article 34 clause (2). accidents and social unrest that might disturb the people's earnings and supplies of foods. there has been arranged a scheme that will protect Indonesian workers working abroad through an insurance scheme pursuant to Decision of Minister for Manpower and Transmigration No. natural disaster. 157 . is the citizen's basic right. the Constitution. which are funded by individuals and companies. Social Insurance Scheme Scheme of social insurance.Social Security Social security. and death.
TOURISM Tourism industry in Indonesia has placed itself as an important economic sector in speeding up the national sustainable development. construction. nursing. This is in line with Law No. This has been in parallel with the industry's expanding contribution to the opening of business opportunities to accommodate more and more labors to work in. and natural beauties. arts. the criteria of which are set forth by developed countries. it is time for Indonesian workers to adjust themselves to the criteria on each profession to be able to compete with professionals from other countries to fill in vacancies at domestic and international market.Global Trend Liberalization of global trade will pose a tight competition among workers of all countries since it allows the traffic of workers from one country to another much more rapidly. decentralization. However. technical. various policies. put into practice and implemented appropriately to the developments of the industry. human resources and community-based tourism development. measures and steps necessary have been introduced. though this sector was in fact put into the Guidelines of State Policy only in 1978 or during the implementation of the Second Five-Year Development Plan. The 1999-2004 Guidelines of State Policy affirms that tourism industry needs to be developed through a comprehensive and integrated approach system. Thus.13 of 2003. the industry later on has turned to be one of important economic sectors of foreign exchange earner. relevant regulations ascertain that tourism development should be based on the potency of socio-cultural diversity. In facing this situation. Furthermore. Some professions the Indonesian workers have claimed international reputation for are among other things accountancy. energy thrifty. In dealing with such tourist industrial development. oil drilling. and midwifery. by using economic. It also will require professional workers. much more foreign exchange earnings. and the utilization of expatriates. The development should certainly take into account the aspects of good governance. seamanship. Having been regarded as a cultural based development activity during its initial stage. in one hand. it has been proved that the policy which stresses more on foreign exchange drive has gained. 158 . which stipulates among other things the improvement of Indonesian worker's ability and self-capacity to compete. as of 1999 tourism concept has been regarded as part of socio-cultural development program. natural resource preservative and environment friendly criteria. inter-discipline and participative in character. agronomic. socio-cultural. Foreign exchange the industry had brought in proved swelling from one year to another to turn much more significant contribution to the economy. but on the other hand has caused rather unfavorable impact to natural resources and culture.
etc). Bangka-Belitung Province The long-term goals of tourism development are: sustainable development of national tourism industry. promotional schemes and marketing's have been launched. attractive tourist destination having high competitive edge. and to the J. TTG Asia. To encourage domestic tourism promotion it has been launched the "Gebyar Wisata Nusantara" (Archipelago Tourism Glitter) scheme with the theme: "Come on Exploring the Archipelago". Marriott. as well as the latest attack in Kuningan area both in Jakarta. Promotional marketing has been done not only through participation in various tourism bourses at home and overseas (the International Tourism-Milan Bourse. In relation with the targets to achieve. The country's image was plunged to negative due to terrorist attacks in Kuta. Travel Weekly East etc. including world's well known TV stations such as CNN. Ultimate in Diversity". the 7-percent to 10-percent growth of foreign arrivals and the 1.M. While the shortterm target is the recovery of the country's tourism image in international market. foreign exchange earning of US$7.6 billion at the end of 2004. and BBC and world's leading magazines such as the Time Asia. In connection with efforts to lure more tourists. and domestic tourists' expenses of Rp16. both in term of quality and quantity. For overseas promotional scheme. CNBC. the International Tourism Bourse-ITB Berlin.9 percent growth of domestic tourists. it also strives to lure more domestic as well as foreign tourists to outer islands of Java and Bali. and Indonesia as a comfortable. Targets to be achieved in the field of tourism industry in 2004 are. among other things. it certainly should strive to make the products of tourism industry more improved.97 trillion. In addition. with its natural beauties and culture to rely on. domestic and foreign ones. 159 . by promoting Indonesia as the most varied destination anywhere'. the new theme is: "Indonesia. Bali. that in turn they would offer more contribution to the expansion of job opportunities and improvement of community's income. but also through advertisement via mass-media. and other promotional forms.Matras beach in Bangka Island..
Chile. During the meeting it was also designated Prof DR. Indonesia has been appointed as member of Executive Council of the World's Tourism Organization (WTO) for the period of 20032007. Singapore.Visa Policy As of February 1. and member of Committee for the WTO's 2003-2005 Program. Foreign Arrivals The number of foreign tourists visiting Indonesia in 2003 was only 4. Peru. the United Arab Emirate. which numbered 369. In June 2004 the number of foreign arrivals reached 407. Poland. New Zealand. as well as with world organizations such as the UN-ESCAP.02 percent from that of 2002. Argentina. the Government has endeavored various efforts. Macao Special Administrative Region. Finland.51 percent compared to that of previous month.79 days in 2002 to 9. The decrease of the number was followed by the reduce of their length of stay from 9.3 billion in 2002 to US$4.9 thousand. While tourists from countries offering visa-free facilities to Indonesians. Tourism Working Group and Japan ASEAN Centre. UNESCO. and bilateral cooperation among other things with Japan. The Pay-on-Arrival Visa is required of visitors from 21 countries. Brazil. Thailand. Brunei Darussalam-Indonesia Malaysiathe Philippine-East ASEAN Growth Area. Britain. Canada.1 thousand. These countries are the United States. At the 160 . decreasing by 12. the Indonesia Malaysia-Thailand Growth Triangle (IMT-GT). Australia. 2004 Indonesia has started implementing the Visa-on-Arrival (VoA) policy. Italy. such as Thailand. growing by 10. Denmark. and Taiwan. WTO.69 days in 2003. and Vietnam.0 billion in 2003. Algeria. and Poland. which totaled 5. ASEAN and APEC. Malaysia. Hong Kong Special Administrative Region. Switzerland. Emil Salim of Indonesia as member of the world committee on Tourism Ethics. remain to enjoy a reciprocal policy by the Indonesian Government. South Africa. Germany. The appointment was made during the 15th WTO Meeting held in Beijing in October 2003. The shrink of tourists' number and their length of stay had in fact diminished the earning of foreign exchange from US$4. The new pay-on-arrival visa allows visitors to stay for 30 days. South Korea. Japan.03 million. Hungary. Norway. including maintaining cooperation with other governments such as in sub-regional cooperation. Brunei Darussalam. Overseas Cooperation In promoting tourism industry. the Philippines. A foreign tourist has to pay US$25 for a 30-day visit and just US$10 for a three-day visit. UNICEF. In its role within the international fora. Tajikistan.428 million. namely the Indonesia-Malaysia Singapore Growth Triangle (IM-GT). France. Morocco. The new policy also shortens the length of stay of tourists able to continue availing of the free-visa facility from 60 days to 30 days.
0 thousand in May 2004 to 137. in the form of national culture suitable with the motto `Unity in Diversity'. cloth weaving from East Nusa Tenggara and Palembang. Pekalongan (Central Java). conserving and renovating historical sites and objects spread throughout the country. In many places in the country. is plaited artistically and decorated with patterns inherited from one generation to another. etc. usually made of bamboo or rattan. this kind of music has been well known in almost entire Indonesia. and mass-media. Various measures have been taken in the context of among other things improving the performance of national film industry as part of culture. the number of foreign tourists visiting Bali noted a growing trend from 123. For instance. so that they can be a reference in the life of society. and enhancing the community's appreciation to the national film products. batik cloth from Solo (Central Java). pride and respect towards our national cultural nobility be more nurtured to strengthen the nation's self esteem. Word of Gamelan is derived from Javanese word `gamel' meaning "to beat. So have craftsmen and artisans of woodcarving from Jepara. developing the national Indonesian language and local languages and promoting the use of the Indonesian language and local languages properly and well. study. safeguarding.same time.3 thousand in June 2004. a mere simplest household item. artistry has been a daily life. caring. Yogyakarta. Nowadays.13 million. and protecting. and believe in One and Only God existing and developing in respective tribes or ethnic groups. nation and state. customs. and nurture of traditional values. Music Gamelan is a music instrument having been so popular and reaching a sublime degree in Java and Bali." The gamelan orchestra generally composes of xylophones of bronze or copper bars 161 . Besides. CULTURE Policy Policy in the field of culture aims to among other things enhance the people's awareness on the importance of preserving each local culture. Cirebon (West Java). including that of underwater archaeology. formal education. Cumulatively.64 percent compared to that of the corresponding period in 2003. Skill and creativity of Balinese artisans have been popular worldwide. the number of foreign tourists visiting Indonesia during the first quarter of 2004 was 2. It is also designed to more preserve the national cultural values through efforts of revelation. writing and nurturing historical values and heroism to build nationality and spirit of patriotism. increasing by 34. particularly for younger generation through the channel of non-formal (family and community) education. Cultural remains The country is stunningly rich in kinds of arts and craft. particularly for younger generation. Madura (East Java) etc. within the frame of national unity. Central Java and West Sumatra.
such as in welcoming guests or visitors. each tuned to a different tone system. negejiak and kantet from Kalimantan. Meanwhile. piring dance of West Sumatra. kecapi. In West Java.suspended over bamboo. puppet show is a shadow show to which onlookers watch the shadow of puppets. 162 . Usually this kecapi is accompanied by bamboo flute. seudati agam from Aceh. puppets are made of wood. In Central and East Java and Bali. Indonesian style zitar. a music instrument in the form of guitar but more narrowed. remong dance of East Java. In addition to these puppet shows. there is also wayang wong which is played by a number of dancers. and the local people name them "golek." "golek" show. popular among Sundanese (West Java). one of the UN organizations. Puppet show The word wayang derives from the Javanese word meaning bayangan in the Indonesia language or shadow in English. A complete gamelan outfit consists of two sets of ensembles. manipulated by a narrator while narrating a story. to make kecapi-suling with rather melancholic resonance. Through TV. Puppet show is usually played during the night. Indonesians were puffed up with pride when in November 2003 the UNESCO. Among those dances acclaiming popularity among the people are: tanggai dance of South Sumatra. the best known war dances include baris dance from Bali. Dances Many regions of the country have their own dances. and cakalele from North Sulawesi. mask dance of Jakarta and Cirebon (West Java). wood or metal resonators. angklung. recognized and appointed puppet show as the World Master Piece of Oral and Intangible Heritage of Humanity. puppet show time usually is shortened to a half to one hour only. beksa lawung dance from Yogyakarta. In addition to gamelan there are gambus. saman dance of Aceh. traditional music instrument made of bamboo popular in many places in the country. almost the whole night. made of leather. The dances are believed to originate from either religious rituals or have been developed for presentation at special occasions. etc. The story of the show is usually culled from Hindu epics Ramayana and Mahabrata.
Balinese carvers and sculptors often tend to follow innovative and creative spirit of the people. the art of carving and sculpting has always been the artistic heritage of Indonesians. The centers of leather art are Solo (Central Java) and Yogyakarta. unlike Jepara's art. such as birth. However. Less popular but not of mediocre degree are the carvings of some regions including West Sumatra and Tana Toraja (South Sulawesi). While rather "primitive" art pattern of Asmat people in Papua have been famous the world over. the batik of Java. ulos cloths of Batak. 163 . the songket or Saji textiles of South Sumatra. which typically adopts rather traditional patterns for the ornamentation of objects. Some of the most beautiful and highly artistic cloths are the work of even simple village throughout the country. many of the traditional cloths were attributed to magical properties and in some occasions still are and were used in the various rites related to the important milestones in the human life cycle. Of the country's best known traditional textiles are the ikat cloths of several regions. adulthood and death. Jepara (Central Java) and Bali are the hubs of the woodcarver's art. and bone.Betawi modern dance Carvings Using various materials such as wood. North Sumatra. In the past. and lurik of Solo (Central Java) and Yogyakarta. ivory. Traditional Weaving Indonesia is one of the world's leading traditional textiles producers. The skills to produce the traditional textiles have been going down from one generation to another within thousands of years.
development of domestic politics aims to strengthen and maintain the existence of the unitary state of the Republic of Indonesia based on the motto of unity in diversity. Political Structure Improvement Scheme The main aims of this scheme are: to make the Constitution comply with the dynamism of the national political life and aspirations of the public as well as development of international environments. the Political Process Quality Improvement Scheme. improve effectiveness. to improve the role of legislative bodies and higher state institutions by asserting each function. and participation of social organizations. to encourage political institutions to practice democratic 164 . To that end there have been four major schemes to be and to some extent have been implemented. and the Political Culture Development Scheme. responsibilities which refer to separation of power and clear relationship order among executive. dynamism and reformation by remaining to nurture the national unity and integrity in accordance with the soul and spirit imbued in the Preamble to the 1945 Constitution. function. legislative and judicative bodies. authorities. namely the Political Structure Improvement Scheme. to perfect the 1945 Constitution to keep abreast with the needs of the nation. maximize control over the performance of state institutions. and to promote national political system that is more open and democratic. and NGOs in the state life.Producing exquisite "songket" cloth in South Sumatra POLITICAL AFFAIRS DOMESTIC AFFAIRS Pursuant to the 1999-2004 Guidelines of State Policy and the National Development Programs in the field of Domestic Politics. professional groups.
national consensus on neutral stance of state institutions and the Armed Forces and the Police as regard political affairs. the agreement that ends the existence of appointed representatives from the Armed Forces and the Police in legislative bodies. freedom and fairness Also worth noting is the formation of Constitutional Court. But the ultimate goal of this scheme is the strengthening and maintenance of the Unitary State of the Republic of Indonesia. and agreed consensus on the need for a special and independent institutional umbrella in eradicating corruption. Appropriate attention has been given to regional autonomy and the institutionalization of the National Reconciliation and Truth Commission (NRTC) for the creation of a more 165 . In this context it is understandable that all aspects related to the checkand-balance among state institutions. are improved. independency. including things that promote the development of civil society which is tolerant and antidiscrimination. an important legal institution functioning to do judicial reviews on legal products against the Constitution. and the creation of improved capacity of state institutions in executing their respective role. stressing on the empowerment of the role and position of the Regional Representatives Council. and maintain internal check-and-balance system to avoid excessive hegemony in the parliament. An important development worth noting in political life is the organization of general elections by an independent institution. The scheme is also designed for the formation of a democratic political structure. the formation of new format of relationship between central and regional and local administrations. the agreed consensus on new format on civil-military relationship. and task as well as the mechanism of check-and-balance. The Court is expected to produce a breakthrough in legal affairs. and to make the sound application of it. and relation between the Armed Forces and the Police based on decrees of the Assembly and laws on defense and security. formation of new political format with the operation of new law on political matters. and to encourage the neutrality of civil servants and personnel of the Armed Forces (TNI) and the Police. general elections and composition and status of the People' Consultative Assembly and the House of Representatives. Major changes the nation has had currently are marked by: amendments of the Constitution that changes substantially some previous consensuses in governing the nation and state life. The introduction of bicameral system in the nation's parliament it certainly requires appropriate adjustment itself is to create a parliament that can accommodate more balanced political aspirations and representation between those of national and local levels. which separates power of state. which is based on new regional autonomous law. the implementation of direct elections for president and vice-president as the Constitution mandates and relevant laws ask for.principles. capable of reforming political life. the General Elections Commission (KPU) that more or less has proved itself capable of organizing the 2004 general elections on the principles of honesty.
and less focusing on ism. well-rooted political parties adopting fairly modern conceptions emerged to compete with primordial parties which in the future are expected to be no more dominating the country's political spectrum. coalition. Members of the House of Representatives and the Regional Representatives Council constitute members of the People's Consultative Assembly that has become being a bicameral. Political Process Quality Improvement Scheme The main aims of the scheme are to develop national political system which is democratic and open. Another important change in the membership of legislature worth noting is the exclusion of appointed representatives from the Armed Forces and the Police as of 2004. to elect members of the regional or local Houses of Representatives. 166 . House of Representatives. as well as all members of legislature (the People's Consultative Assembly. Regarding the NRTC. It is also the ideal of the scheme to organize general elections in a more well-organized fashion with maximum participation of eligible voters. The scheme is directed towards political parties' improved independency. including the process of their alliance. religion and ideology. The nation may claim having organized the most complicated general elections system with numerous eligible voters scattering at a very large territory consisting of thousands of islands and islets. Parallel with the growing critical and intelligent people. political process in quality term has undergone relatively drastic changes. to build the life of political parties. members of the national House of Representatives and members of the Regional Representatives Council in a single year. and in democratic. and new.peaceful and just political culture to reinforce the foundation of national unity and integrity. has been apparently undergoing the process of rationalization. The life of political parties. political parties and recruitment of state officials. free. fair and civilized ways. the institutionalized reconciliation underlines the settlement of political bickering and conflicts in the past with the main aim to create a peaceful and sound political climate in order that the nation's energy is concentrating on building the nation a better future. which respect differences of political aspirations and notions. The multiparty system regained in 1999. and to promote a democratic system of general elections and the application of it by improving related statutory regulations. particularly in struggling for popular aspirations and interests. and non-governmental organizations in the life of state. honest. general. In consequence of the effective laws on general elections. and Regional Houses of Representatives). In the year 2004 the Indonesian nation for the first time elected directly its President and Vice-President. by an independent and non-partisan organizing body. direct. the relation between political parties and the mass has been apparently oriented to the implementation of vision and mission as well as programs. secret. professional groups. function and participation of social organizations. compromise and consensus among them. and political parties' function to control effectively the performance of state institutions as well as to promote effectiveness.
nation and state. mission. Political Culture Development Scheme The scheme is aimed at improving political education in more intense and comprehensive ways to make political culture more democratic. The process of political recruitment tends to be on rational considerations rather than on emotional ones. At the grassroots level a number of organizations came into being as the watchdogs over the political process occurring so intense particularly in 2004. All of them have reduced substantially the role of Government participation in preparing.Institutions having been established to improve the political process such as the Constitutional Court. Promoting civic education containing modern political education along with improving schooling curriculum containing cultural matters. things that democracy nurtures. Thus. Things still need to be promoted. in encouraging this tendency a mechanism of public debates is in fact imperative to be given ample room and promoted to allow the public to know more and even examine critically the eligibility of the vision. popularizing and practicing the principles of equality and anti-discrimination in the life of society. the differences of opinion respected. peaceful. in a more credible and transparent ways. and programs a candidate of public leader or parliamentarian can envisage and offer. dynamic. the cultivation of the importance of respecting differences of opinions. Freedom of the press in this matter is decisive to nurture more sound and democratic political process. the General Elections Commission. the values of democracy. including cultural values. Amendments to the 1945 Constitution. tolerant. settling disputes on the result of votes counting. and it needs to be applied more widely to candidates for secondary and even tertiary posts. legal supremacy and human rights upheld pursuant to what the 1945 Constitution stipulates. human rights and political ethics are imperative to be sought out to educate Indonesians of younger age to understand and respect the high values of political ethics and egalitarianism. promoting nation-and-character building towards a more modern. the effectiveness of new laws on political field. executing and supervising the 2004 general elections. The fit and proper test method practiced currently by the House of Representatives to select a candidate nominated to hold an important public post has been a good way to gauge a credible leader. no more appointed representatives from the Armed Forces and the Police in legislative 167 . prosperous and just Indonesian nation. Hard work by those institutions and active participation of the public in making the general elections successful have been good signs that political reform has been in the right track. the Judicial Commission. encouraged and facilitated are the holding of sociopolitical forums and discussions for which the mass-media can play a key role. unified. and the General Elections Supervision have already played their respective roles in preparing general elections. and supervising the implementation of the general elections. and simultaneously discouraging discrimination. democratic.
antidiscrimination. and to enhance cooperation in all fields with some neighboring countries. and human rights. particularly in approaching the working of the AFTA. it is also sought out to broaden agreement of extradition with friendly countries. In diplomatic front. including institutional creditors and investors towards the Indonesian Government. and the implementation of regional autonomy or decentralization have been the real evidences of the reform of the country's political culture through democratic processes. Those encouraging trends are hopefully leading to the materialization of social transformation that preserves noble values of tolerant behavior. In addition. More over. which is free and active. national unity. regional and international levels. in the context of speeding up the recovery of the nation's and country's dignity and trust of foreign governments. particularly by reinforcing and improving the system of the United Nations Organization. tourism. and inter-community. improving the nations' help-capacity. development. stressing solidarity among developing countries. and maintaining international cooperation's for the people's welfare. trade. the public have been apparently more mature and critical in understanding the existing political conditions and in controlling the management of the state administration. on 168 . free. and cooperation under the ASEAN region to maintain regional stability. It is also stated by the state policy that the quality of diplomacy should be more improved in order to help speed up economic recovery and development activities. refusing colonialism in its all forms. Policy of bilateral relations covers the fields such as political security. socio-culture. the aim of the country's foreign policy is to strive for a meaningful contribution for the creation of the world that is peaceful. it is Indonesia's commitment and principle to continuously improve multilateralism. Foreign AFFAIRS As the 1945 Constitution stipulates. helping the nations' struggles for their independence. APEC and WTO. For this. among other things that: the direction of foreign politics. This is pursuant to what the 1999-2004 Guidelines of State Policy says. Policy The country's free and active foreign policy aims to bilateral. Indonesia has tried hard to revive its foreign politics by remaining to adopt a free and active foreign policy. is national interest orienting.bodies. and socially just. It is also underlined that the country's preparations in all fields boosted to face the world free trade. economy. Bilateral relations in political and security fields focus on matters of protecting Indonesians citizens and workers abroad under the umbrella of law and diplomacy. cooperation and development drives. and improve welfare. through regional and international economic cooperation in the context of improving regional stability.
and with East European countries on intensive trade diplomacy followed by efforts to build new agreements on economic and technical cooperation. simultaneously the improvement of investment of those countries to Indonesia. the Philippines. Japan. with Russia. diversifying armor system. Bilateral measures in the field of economy and trade aim to enhance bilateral relations in investment and trade between Indonesia and some key countries such as the US. Bilateral cooperation in tourism covers among other things the implementation of visafree for short visits for 11 countries on reciprocal basis.fencing the whole territory of Indonesia in the legal and political sense through border diplomatic activities (the implementation of foreign policy) in the context of settling any borderline dispute and the management of state borders with all participation of the people living near the border lines. provision of facilities for international conventions and visiting-exchange programs for foreign editors ad chief-editors of noted newspapers to boost mass-media promotion in the context of 169 . and with Afghanistan on the reactivating of Indonesian representative office. and provision of inputs periodically on security condition in Indonesia in order that the countries where tourists come from. as well as with the Middle East countries on the enhancement of economic relations. on balance-trade system and improvement of function of the two-country commissions. through the establishment of joint-working groups. on among other things the establishment and implementation of MOU on banking cooperation among commercial and central banks. the policy covers: improvement of educational and scientific cooperation with various friendly countries such as Australia. and the visa-on-arrival constitutes efforts to combine tourism promotional interest and interest of national security. concerning the improvement of various programs pertaining to economic cooperation and technical assistance for trading activities. and with Malaysia. review their travel warning. improving bilateral military cooperation with several countries in the context of modernizing the country's military might. organization of cultural and tourism roadshows in a more integrated and well-planned ways in several countries. guarding the territory from any foreign interference that can worsen the tendency of disintegration. with India. regarding developments of various bilateral forums and agreements among other things Agreement on Investment Improvement. transferring of technology. fighting inter-state crimes through among other things agreements of extradition with various countries such as what the country has done with Australia. and cooperation on the handling of related trans-national crimes. with Chile and Peru for instance. particularly in strengthening efforts to prevent and fight inter-state crime. with the European Union (EU). particularly the US. In socio-cultural front. The cooperation also embraces development of bilateral cooperation with several countries where the tourists come from. Britain. and Australia. the US etc. with Japan. concerning improvement of non-oil and gas export segment and investment in various sectors. with the Central Asia on preliminary attempts on the application of balance-trade system to improve trade relations with countries of this region. enhancing law enforcement to help overcome national security problems particularly on separatist movement and terrorism such as that has done with Sweden on separatism of Aceh. particularly expansion of market access to this region.
170 . Indonesia acts as the coordinator for the ASEAN Disease Surveillance Net. directs ASEAN cooperation to the establishment of an ASEAN Community consisting of the ASEAN Security Community. In addition. At the regional level. ASEAN-Australia. ASEAN-the US. the ASEAN Economic Community.maintaining the nation's positive image. economic. continues to be sought for by Indonesia for common interest in various fields. cooperation. the Pacific Island Forum (PIF). Indonesia received a mandate to formulate a plan of action for the ASEAN Security Community that will be put forward in the ASEAN Summit in November 2004. ASEAN-India etc. Various measures covering efforts to improve participation. Concerning its policy in the APEC. the Southwest Pacific Dialogue (SwPD). ASEAN+3. Regarding the ASEAN. ASEAN-Japan. and the sending of Islamic preachers and Qoranic recites in the context of providing clear and true description on Islamic development in Indonesia. and support in. AASROC. by and for various regional organizations and fora such as the Pacific Islands Forum. Regional policy covers measures on the ASEAN. APEC. the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC). The country also makes efforts to improve ASEAN relations with dialogue partners such as ASEAN-China. It also includes the offering of one-year-nondegree travel scholarships to post-graduate scholarships. Indonesia keeps endeavoring that the expansion of the European Community does offer opportunities for political. handling natural calamity and infectious diseases as the implementation of the ASEAN Security Community. Indonesia continuously pursues the creation of a more fair multilateral trade system and a more open economic regionalism. and Technical Cooperation and Economy. ASEAN-Republic of Korea. Indonesia. stable and prosperous Southeast Asian region. and sociocultural relations improvement to both parties. The same effort has been sought to make the APEC remain paying more attention on the permanent institution and programs focusing on economic issues by offering fair balance between: Liberalization and Trade Facilities. Indian Ocean Rim Association for Regional Cooperation (LOR-ARC). and the ASEAN Socio-Cultural Community to create a peaceful. etc. Indonesia also promotes ASEAN cooperation improvement in fighting against inter-state crime. Indonesia underpins the building process of a mechanism of the regional ASEAN Human Right based on step by step building blocks approach. the Southwest Pacific Dialogue. During the 37th ASEAN Ministerial Meeting held in July 2004. On account of the European Community. Indonesia continues endeavoring the achievement of ASEAN economic integration (by realizing the sole market and production base as contained in the ASEAN's Vision 2020) going towards the ASEAN Economic Community. and on Middle East. among other things. Liberalization and Investment Facilities.
Oslo Peace Conference (1993). economic. developmental. and socio-cultural fields. environmental. in quality and quantity. security recovery. etc. 242 (1967) and No. Indonesia is eager that the trade liberalization process accommodates fairly the interests of developing countries and developed countries. Non-Align Movement. Indonesia has a strong commitment to improve multilateral cooperation in responding to global opportunities and hurdles in political. On Iraq issue. Russia. and decision making process that involves participation of all members. Group 77. Indonesia keeps on pursuing for restructurization of system and function of the UN's main bodies such as the General Assembly. that through this Movement various problems faced by the developing countries can be 171 . the receipt of Special Product (SP) and Special Safeguard Mechanism (SSM) concepts as an integral part of agricultural advanced liberalization. This is based on a reality that multilateral cooperation places all nations as equal by still respecting their sovereignty. 338 (1973) demand unconditional return of all Arab territories occupied by Israel. and the International Court. to step up. and recognition over the rights of the Palestine people to determine their own fate to establish their state on their own land. WTO. the Economic. the Security Council. Indonesia also supports peace initiatives under the Madrid Peace Conference (1991). and the promotion of a new legitimated representative administration in Iraq. and proposes that the use of veto rights to be completely abolished. and at the same time to encourage active participation of Indonesia in various multilateral fora. On the WTO. Indonesia keeps on supporting the struggle of the Palestine nation as what the UN-Security Council's Resolution No. among other things. While concerning its multilateral policy. the UN and the European Union. Concerning the Non-Aligned Movement. Indonesia gives support to the leading role by the UN in the process of reconstruction. through technical assistance and cooperation. and the principle of land for peace. Indonesia's representatives in various committees and commissions as well as other international agencies in order to struggle for national interest. among other things. Together with other developing countries. Sham Al Sheikh Peace Conference (1999). General policy of the Republic of Indonesia on its membership in multilateral organizations is among other things: to make its membership advantages in multilateral organizations optimum for the interest of national development. Indonesia strives for food security and rural development interests being accommodated through. Socio-Cultural Council. It is worth noting that Indonesia is a member of multilateral fora such as the UN. which has been initiated by the US. including financial assistance. particularly on access for products of the developing countries to the developed countries. Indonesia seeks out expansion of permanent and nonpermanent members of the Security Council.In Palestine issue. Regarding the UN. and the latest Road Map. Secretary-General and other organizations of the UN. OIC. Indonesia makes efforts.
and to seek for improvement of economic and financial cooperation as well as of trade among the organization's member countries. Indonesia tries among other things to enhance the organization's performance to make it a relevant and effective means to contribute to the settlement of problems faced by its members. it should be supported by three pillars of cooperation. The country's policy on the Group-15 is among other things to try to manage.settled. the leaders of the 10-member grouping signed the Declaration of the Bali Concord II. The country's policy on the Group-77 is to endeavor that the group capable of improving its members' bargaining position in dealing with the developed countries upon economic. and socio-cultural cooperation that are closely intertwined and mutually reinforcing for ensuring lasting peace. 172 . common vision and objectives. Indonesia. The leaders of the ASEAN unanimously agreed the ASEAN Security Community for the concept is envisaged to be able to bring ASEAN's political and security cooperation to a higher plane to ensure that countries in the region live at peace with one another in a just. Indonesia strives to make cooperation among member countries of the Group improving more through exchange of experience schemes. finance. economic cooperation. trade and human resources development. and food security. namely political and security cooperation. on October 7-8. the ASEAN Economic Community (AEC) and the ASEAN Socio-Cultural Community (ASCC). particularly in the frame work of the UN. it is also agreed to adopt frameworks for the establishment of the ASEAN Security Community (ASC). stability and shared prosperity in the region For that purpose. bonded together in partnership in dynamic development and in a Community of Caring Societies Committed to upholding cultural diversity and social harmony. investment and monetary. foreign debt. By the Concord II it is agreed that in achieving the ASEAN community objective before 2020. economic and technical cooperation such as in investment. They agreed that they regard their security as fundamentally linked to that of other members and bound by geographic location. to reaffirm that ASEAN is the grouping of the Asian Southeast nations. The Bali Concord II During the 9th ASEAN Summit meeting held in Bali. Those problems include international trade. 2003. social. through this Group. and inter-D8 trade cooperation. and developmental issues. democratic and harmonious environment. While on the Developing-8. In relation with the OIC.
socio-cultural and defense and security aspects. In addition. economic and social realities. information. promote and advance the communicationsinformation-mass media-related matters. Mass media 173 . the enhanced role of the press in line with the improvement of the journalists' welfare.It is stressed that the ASC subscribes to the principle of comprehensive security as having broad political. information and the mass-media have been playing an important role either in determining possible success of the democratic political system or in advancing the intellectual life of the nation. It recognizes the sovereign right of the member countries to pursue their individual foreign policies and defense arrangements and taking into account the strong interconnections among political. communications and the mass-media should focus on the improved use of information through modern and traditional mass media to educate the people. and the availability of more open political control. Information. INFORMATION. Therefore. What the program does want to achieve are the creation of the public's political awareness and maturity through the formation of information flows and exchanges in free and transparent ways. They include the introduction of: information. program for improving infrastructures of broadcasting. Current trends of information and communications technological advancements have indeed brought about on one hand significant changes in the lives of the public in political. in relation with this. COMMUNICTIONS AND MASS-MEDIA The 1999-2004 Guidelines of State Policy underlines that the development of information. military alliance or a joint foreign policy. The ASEAN leaders affirmed the importance of the ASC to have capacities and responsibilities as the key mover of the ASEAN Regional Forum (ARF). communications and mass-media development program. and communications among individuals and community groups and between the government institutions and the communities in conformities with their respective role and function. social and cultural aspects in consonance with the ASEAN Vision 2020. communications and the mass media. Communications. cultivating national identity and secured right to use information and communications means and infrastructures. legal supremacy. and Mass Media Development program The main aims of the program are to encourage and improve information exchanges. and improved quality of development information services program. various action plans have been made and carried out to develop. improved quality of communications in various fields through the mastering and application of information and communications technology in order to strengthen the nation's competitive edge in facing global challenges. the ASC shall work to ensure that the Southeast Asian region shall remain free of all weapons of mass destruction. economic. and human rights. on the strengthening of unity and integrity of the nation. Communications. rather than to a defense pact. economic. The ASC has a view to reinforce national and regional capacities to flight against and deter terrorism and transnational crime.
the community media offer the public greater access to any information sources. Developmental concepts of the community media empowerment have been made available in the context of realizing nation-wide networking of information. However. The mixture of the advancement of information technology and freedom of the press has in turn a great potentiality to encourage firmly the process of democratization. The regulations concerned include Law No. It is under the program that relevant studies have been taking place to produce data and information on overseas information system and on the utilization of new media communications or internet as new means of communications. composing developmental concepts for media watch institutions. and composing concepts 174 . the industries as a matter of fact still need to better their professionalism. To this end a series of actions have been undertaken.32 of 2002 on Broadcasting. and of the manual on Indonesian Television Ethical Conducts covering Television Broadcasting Ethical Standards and Broadcasting Business Standards prepared by the Indonesian Television Broadcasting Association. on another hand have already got improved and ample freedom to perform their social and political control. More encouraging are the issuances of directives on Broadcasting Ethical Conducts and Standards of Broadcasting Materials or Contents by the Indonesian Broadcasting Commission. socialization of formulations of community media development. By the networks. Improved capacity and capability of the national information services in supplying and catering to information are indeed directed towards efforts to reduce disparity of information among the public. Opportunities the communities may get to determine public tastes and demands are made much more ample by granting the communities chances to disseminating information considered important. communications and the mass media. The expected outcomes from the secured legal certainty are the guarantees that the public have the right to get information they wish to know or more popularly known as the right to know. and the Government's obligation to disseminate information the public may want to know or more popularly as known as the obligation to tell. including the arrangements of central-regional information model. in conformity with the development of democratic life of the state and nation. all members of society may share equal access to information. electronic and printed ones.industries. The developments which have already encouraged the function of the mass media run as they should are the introduction of related regulations that secure legal basis for the operation of the mass media. and even the Bill on the Freedom of Access to Obtain Public Information. Thanks to community media. No less important is the establishment of such institutions such as the Television Watch that reflect the public concern over television programs in particular. and simultaneously protect the public from any negative impacts the mass media might cause. The results of the studies constitute inputs for policy decision-making in developing overseas information service system and in utilizing new media as telecommunications means to disseminate information on government policies and measures. inventories of community media.
Along with them. It is realized that economic and social disparity which causes information deficiency has in turn caused wider a gap between the rich and the poor information society and this has 175 . and guidance for government information service mapping. and to build and develop institutions of information. and to set up communications forums of mass media watch organizations. business circles. Students seeking information via internet Besides. under the framework of improving infrastructures of information and telecommunications. to improve participation of government institutions. communications. The activities constitute among other things increased studies on statutory regulations to promote the utilization of communications and information technology.of professional rating standards for mass media contents. there have been also related activities that put emphasis on the encouragement of the communication media to fulfill the needs for information. and the public in composing measures on the networks of communications and information technology to stimulate participation of the said elements in arranging policies on social-communications networking in the public. The arrangements of development plans of overseas information service system and the provision of information on public opinions concerning governmental policies and performance are aimed at promoting studies and development of communication and information. and of the mass media. it has been sought out to expand information and communication networks even up to remote areas. by providing the application of documentary management and data reporting. and the mass media. to endeavor equitable dissemination of information to all layers of society. to encourage stakeholders in developing infrastructures of communications and information.
public understanding on the importance of mass media watch institutions. the need of synergic works among institutions of information. Thus. Still in this context. and preparation for communications and information network between the central and regional governments. Information-Telecommunication and Mass Media Development scheme some things worth noting are the establishment of information and communications networks between central and regional areas and among regional areas themselves in mutually promoting national development. a foundation having been established in advancing information. information and mass media infrastructures improvement scheme is to improve the quality of information in all fields through the mastering and application of information and communications technology in a bid to better the nation's competitive edge in facing global competition.been one of the main problems the nation has to face. communications and the mass media in composing minimum service standards as one of the measures on the utilization of information technology. Following steps need to be taken into considerations are among other things: more intensive socialization of the Bill on Freedom of Access to Obtain Public Information. communications and the mass media still requires follow-up actions to maintain the continuity of the goals and targets of related development programs. efforts are required to facilitate judicial reviews over socio-political aspects against the Law on Broadcasting and the press and media-related statutory regulations. serious preparations for the formation of centers for governmental information services. 176 . Other steps need to be more seriously facilitated and promoted are the role the community media should play. and promotion of independency and maturity of the press. it is the common concern of the people at large to maintain together the freedom and independency Infrastructure Improvement Scheme The main aim of the communications. Under the Broadcasting. the required efforts to facilitate cooperation forums between governmental institutions and the public in the context of nurturing understanding of the people to improve the participation and investment in the use of information services. the relevant studies and researches in the framework of bettering mass media professionalism with characteristics among other things capable of cultivating excellent tradition of the press that adopts the principles of precision journalism (based on investigative reporting). It is unquestionable that the press here is a significant institution capable of maintaining and protecting political transparency and in safeguarding the very right of the society to get information related to the living needs of the people at large. It is under the scheme the ware house data are developed and to be the basis application of the system for the governmental information inflow order. and to overseas to struggle for the national interests. Parallel with this. particularly with regards to the formulations being considered controversial for the freedom of the press and for the process of democracy. and centers for the data interconnection on services and regulations of state institutions.
it is realized that what the nation needs now to further promote society-based independent information and communications establishments is the formulation of a grand design as the basis for the development of the Indonesian Society Electronic Infrastructure Network (ISEIN). to some great extent. In materializing the instruction a number of action plans have been introduced and carried out. including the so called Inter-Governmental Access Share Information system or Governmental Data and Information Exchange system prepared by the Ministry of Communications and Information. which will be tried out at the office of 177 . Quality Improvement of Services scheme The scheme is more directed towards the development of information and communications networks between central and regional areas and among regional areas to mutually support national development activities and to improve their institutions. For the reason. websites may be used nation-wide. The availability of websites has.Following suit is the establishment of government and private websites to further disseminate information on government policies and measures by on-line. socio-culture. as well as the improved inter-institutional cooperation. politics. and improved capacity of governmental websites on the aspect of content. the scheme has been bringing about increased availability of information. Its improved capacity may enable it to cater to varied and increased kinds of services. the provision of public service advertisements. Improving the quality of developmental information services has been undertaken place by among other things: the provision of information on regional potentialities in the form of chart. and disseminated information. industry. helped reduce the hindrances in disseminating information on government policies in a quicker way. information concepts on the fields of economy. and information means and infrastructures.3 of 2003 constitutes a legal basis for the development of egovernment in Indonesia. broadcasting. security and defense. human resources. and the improvement of studies on the utilization of informationtelecommunications technology at central and regional governmental agencies and institutions. It is also in the context of the scheme that a manual for governmental information services map has been made available to help governmental institutions and agencies or bodies in arranging their respective information services map. particularly for areas where private and public media hardly cover them. However. informationtelecommunication and mass media infrastructures have been developed and improved to make the flow of information and communications between the central and regional administrations smooth to underpin the national development programs and to strengthen the unity and integrity of the nation. So far. including regional administrations in composing their respective maps of their own potentialities. For the future. Presidential Instruction No. particularly in relation with that for overseas services in the framework of struggling for the national interests in the international forums.
particularly students. and the people. in this case the Ministry of Communications and Information. the Government has arranged four programs: 1.the Coordinating Body for Family Planning Program. as Articles of 27 and 34 of the 1945 Constitution state that every citizen has the rights to gain worthy livelihood and means of living and welfare. The national commitment. governmental electronic documentation management system. electronic infrastructures are installed at designated locations such as campuses of high schools and premises of local administrations or even premises of small-scale internet business undertakings locally known as "warnet". 178 . SOCIAL AFFAIRS Social Welfare Development in social welfare was held in cooperation among the government. Parallel with the introduction of the system mentioned above. and active roles in coping with social problems in their neighborhood. and improve physical and non-physical accessibility for disabled persons. that is aimed at developing people's awareness. and institutional e-government development plan directive. responsibility. based on global. and national commitment. the Government. living in rural areas and even at rather remote areas may have greater access to information at local. Program for the Development of Social Welfare Potential. in cooperation with local administrations have been trying to introduce an electronic network system called the Indonesian Society Electronic Infrastructure Network Scheme (ISEINS). the office of Ministry of Communications and Information. and improving life's quality and welfare of people who have problems in social welfare. manuals on the operation of e-government have been made available. and Lembaga Informasi nasional (LIN)—the National Information Agency. Under the scheme. In the context of promoting and popularizing the use of e-government by which people. regional as well as international levels. business world. and the office of the Ministry of Agriculture. by which one can explore the information domain. Pursuant to the policy in social welfare. of governmental websites infrastructure development. regional. step up concern to the people suffering from some social problems (PMKS). to make more and more people get used to or familiar with internet. including manual for the establishment and organization of regional governmental websites. ability. and e-government human resources education and training directive. improve appreciation to elderly citizens and veterans. internet shops. Development policy in social welfare is directed to develop social resilience. national.
42 percent.5 million people (12.6 percent. Poverty and Unemployment For the years of 2000 through 2003. 18. developing information system needed as an early warning device. and business guidance with business capital assistance to about 371.20 percent. that is aimed at realizing public policy suitability in coping with social problems towards the realization of people's social resilience and people's protection from the effects of the fast development and social changes through employment network. 3. and developing the function and coordination of institutional information network to form an integrated social problems control. poverty rates were 19. Besides.41 percent. about 192 thousand destitute children and 143. In the period of 2001-2004 in the social welfare development. the Government has given social guidance. and 24. 4. motivation. that is aimed at improving the quality and professionalism of social welfare services through development of alternatives for intervention in the fields of social welfare. or about 16. the Government has undertaken social welfare efforts to the PMKS. In poor family empowerment.3 thousand of poor families living in the slums have received assistance in the form of housing materials and tools to renovate their houses. 179 . juveniles and drugs victims. beggars. the homeless.1 million out of 217 million people of Indonesia still living under the poverty line. 18.2.14 percent.6 million people (19.5 percent) living in rural areas.100 calories of food per capita per day and cannot fulfill his/her basic non-food need. and arranging social welfare standardization and legislation. Destitute and street children are helped through empowerment schemes. Public Policy Suitability Development Program in Coping With Social Problems.3 thousand street children had received social empowerment services. about 30 thousand elder lies have received social assistance. Meant by poor people is a person who consumes less than 2. and ex-prisoners. or relocating those who cannot be returned. improving the ability and competency of social welfare and social workers. that is aimed at identifying the kinds of data and information needed for decision making in social problems policy. Social Welfare Services Professionalism and Management Quality Improvement Program. From that sum. Social Problems Information System Development Program. About 9. Until 2003. about 11. and 17.6 percent) were living in urban areas. including women with unstable social-economic condition and in isolated customary communities (KAT). Rehabilitation services have also been given to disabled persons. For 2004. prostitutes. Domestic refugee problems have been controlled by giving them assistance to overcome emergency condition and returning them back to their home.1 thousand heads of families. data from the Central Bureau of Statistics (BPS) until February 2004 showed that there was 36.
and 6. the rates of open unemployment were 4. 6. Through this new strategy.431 29.319 1.70 Source: BPS.332 26. This is due to the low investment growth and lack of public facility in Indonesia. has still been stagnant at 16 percent. it is stated that the efforts to decrease poverty rate in Indonesia which reached 20 percent in the crisis era. the World Bank has prepared loans of US$450-850 millions annually for Indonesia.599 13.867 38. of about US$200 million per year.28 Total 47.975 38.96 percent.312 8.394 -6.15 Rural 32. namely the development platform for businesses activated by the people up to about 25 percent total loan.15 percent. the local services platform about 20 percent.268 25. representative head of the World Bank in Indonesia said that the World Bank has prepared four business platforms. 2003 In that event. In the even of the launching of Indonesia Country Assistance Strategy (CAS) for 20042007. INDONESIA'S POVERTY TREND 1999-2002 (in thousand people) 1999 2000 2001 2002 Annual average growth(%) Urban 15. 5.075 -7.753 37.98 percent.33 percent.For the year of 2000 through 2003. 180 .643 12. and the national loan platform about 20 percent of the loan.
349 3. bigger than that of 2003 allocation of 2.843 families (2. This program is implemented by distribution to poor families of 20 kg per family per month at the ceiling price of Rp.TOTAL OF INDONESIAN POOR PEOPLE BY EMPLOYMENT 1999-2002 (in thousand people) Head of Household 1999 2000 2001 2002 Unemployed 4.048.390 tons.109 23.401 4.969 38.793 tons of rice).833 37.590.746.793 tons and has been distributed to 30 provinces.069 5. the raskin has reached 2. Religious Schooling Improvement.560 2.571 Total 47.784 6. Buddhism. the Enhancement of Understanding and Application of Religious Teachings and Harmonious Life among Religious Followers.843 poor families. Protestantism.380 4.061.984 7.109 35.997 20. since 2004 the Government has continued the Program of Rice Ceiling for Poor People (Raskin Program) and the Program for Compensation of Fuel Subsidy Reduction for Social Welfare (PKPS-BBM Program). For 2004.063 3.471 Services 11.061. Catholicism. Hinduism and Confucianism. and Promotion of Religious Socio-Institutions and Religious Traditional Schooling. there were 15. 1000 per kg.375 20. whereas the budget plafond provided by the Government was only for 8. In 2004. namely Islamism. The raskin and PKPS-BBM in the field of food is decided based on subsidy provided by the Government.719 Source: BPS.605 Industry 6. 181 . RELIGIOUS AFFAIRS There are six religions officially recognized by the Government. During the period of 1999-2004 the development in the field of religious affairs underlines the schemes of: Improvement of Religious Life Services. 2003 Program for Compensation of Fuel Oil Subsidy Reduction In the effort to improving food sustainability and giving protection to poor families and empowering the people.072 Agriculture 25.840 9.
886 cases of divorce and separation. some 2. and 5.971 plots of land were certificated in 2001. For this purpose. optimum use of houses of worship. and 2.193 plots in 2002. and the like continues to be intensified to improve the people's welfare and to alleviate poverty. etc. the Government has helped them by offering religious holy books including their translations and interpretations. Promotion of religious institutions such as religious alms. promotion.000. The number of holy books and their translations and interpretations of different religions procured per annum from 2000 to 2003 was 2.930 plots in 2003. and development related to religious matters is the Ministry of Religious Affairs. Each institution has been also tasked to promote household's welfare. Catholic/Protestant churches. and motivate households to practice family planning program.799. the Offices of Marriage Affairs throughout the country handled 1. and improvement of hajj pilgrimage management. Hindus temples etc). Buddhist viharas. temples. a number of institutions have been established and made available in every province. viharas. In handling marriage affairs those institutions need about 4. the Government and the communities have been striving for religious adherents to have ample facilities to do religious worship by building more houses of worship.. contribution. Islamic Marriage Halls or Religious Marriage offices. there are also the sub-district-based Offices for Marriage Affairs that also deal with remarriage and divorce. churches. 1. and other books related to religious teachings.126 cases of remarriage.000 copies. there are the Marriage Halls and Marriage Consulting Institutions. In securing the use of plots of land used for religious interests such as plots of land donated for mosques.000. To deal with this promotion. 143. more than thousands of people have attended upgrading courses. provision of holy books etc.174 cases of marriage.000 copies of marriage guidance books and marriage certificates per annum. Improvement of Religious Life Service Scheme The scheme aims to facilitate religious adherents to worship in accordance with their respective belief and religion.187 units. During the period of 1999-2004 the Ministry has introduced and carried out many activities under the schemes mentioned above. During the period of 2001-2003 the cumulative number of houses of worship having been rehabilitated was 5. hajj transit boarding houses. The translations and interpretations of those holy books give boost to experts in this field to develop interpretations on holy books in accordance with temporal needs and developmental course. Other action 182 . In 2002. In addition to the institution. guidance. donation. In this context the Government either allots a sum of money or gives financial assistance to build or rehabilitate the houses. Regarding the enhancement of Religious Understanding and Application and the broadening of religious knowledge of religious adherents. Under the scheme. The scheme has been manifested through development and rehabilitation and maintenance of religious houses of worship (Islam mosques. charities. In improving services on marriage affairs.Responsible for policy.
The growing number of hajj pilgrimages has been to some extent due to better management of the services by the Ministry of Religious Affairs that is responsible for the services. and the number increased to 201. as well as socio-reconciliations of Malindo I and II Declarations (declarations of reconciliation between hostile parties in Maluku). courses for officials who cater hajj pilgrimage affairs. In addressing this issue.14 percent from Sumatra Island and the remaining from other islands. Religious-related conflicts are a potential to disintegrate this nation. there were accumulatively 255 groups of hajj pilgrims attending guidance courses. These included the organization of Islam-Christian International Conference in Jakarta attended by a number of representatives from 18 countries. 183 . consultations and dialogues among religious leaders of different religions. thousands of people groups attended guidance courses on harmonious life among different religious adherents. and among different religious adherents.78 percent came from Java Island. meetings and forums to find out preventive and deterrent ways or peaceful solutions.057 persons to manage Islamic religious donations and other religious donations as well as the distribution of 69. Qur'an Recital competitions are always organized from local to national and even international level. During the period of 2001-2003. The total number of Indonesians doing hajj pilgrimage in 2002 was 182. family. During the period of 2001-2003. including the formation of inter-religious adherents' cooperation networks. (2) the reinforcement of foundation of harmonious life among the same religious adherents. and community. various activities have been taking place. Still in the context of deepening religious understanding and application. and (3) the establishment of social and national harmonies. So are of Christian "Pesparawi". Hindus "Utsawa Dharma Gita". Scheme of Harmonious Life among Religious Adherents The main aims of the scheme are: (1) the improvement of understanding and application of religious teachings by any individual. etc.plans included the organizations of upgrading short courses for 1. the accelerated finalization of the Bill on Harmonious Life among Religious Adherents. various measures have been introduced and done to include the construction of new hajj boarding houses and rehabilitation of rather old hajj boarding houses. and Buddhist Tripitaka Art Recital festival. and provision of books related to hajj pilgrimage codes and services. Of the total number of persons who did hajj service in 2003 some 46. to study the historical relations between Islam and Christianity and discuss religious. socio-political and economic dimensions. In seeking out the aims.319 persons in 2003. various efforts have been sought out by prominent leaders of each religion through dialogues.483 copies of guidance books on management of socio-religious funds. to say but some.062 persons. some 15. To promote the hajj pilgrimage management.
sending religious teachers/lecturers to Yemen and 184 .The formation of the Institute for Studies on Harmonious Life of Religious Followers in Jogyakarta and its branch offices in Medan and Ambon. the Ministry of Religious Affairs has taken necessary measures to improve religious curriculum. the Indonesian Hindu Dharma Parisada (PHDI). Under the scheme a large number of religious teachers and lecturers have had chances to attend up-grading courses. together with other governmental agencies and non-governmental institutions. gives priority to the promotion of the schools by. particularly for villagers of economically-weak bracket. Improvement of Religious Schooling Quality scheme The 1945 Constitution underlines that education sector shall have first priority of development. which in turn are expected to be able to organize trainings on empowering people's economy. model and integrated Islamic boarding schools. for instance. training/guiding courses on religious affairs attended by many people. the Indonesian Catholic Churches Conference (KWI). Pursuant to what the Constitution stipulates and the compulsory nine-year schooling. installing websites.000 copies in 2003 alone). seminars. is expected to play an important means for religious intellectuals to jointly study and examine histories of plural communities to find out peaceful solutions when religious-related conflicts arise. and equip those schools with better teaching aid devices and equipment. Promotion of Traditional Religious Schooling scheme This scheme is aimed at: (1) empowering and improving the capacity and quality of socio-religious institutions. the Indonesian Buddhist Association (Walubi) and the Indonesian Confucian High Council (Matakin). the Ministry of Religious Affairs. Also under the scheme are the improvement of means and infrastructures of schooling by providing teaching aid devices and equipment. Regarding the development of traditional Islamic boarding schools. and even colleges and other higher learning institutions at home and abroad. and development of socio-religious institutions. and (2) serving educational services for the public. arrange competency standards for religious teachers. Reference books of various disciplines in large number are also made available to allow students to enrich their knowledge. various action plans have been undertaken. nine-year schooling is compulsory. Under the scheme. workshops. and the development of a number of workshops for students to do practical teaching system. In addition. the Indonesian Churches Association (PGI). Having demonstrated an important role in appeasing religious-related conflicts are religious organizations such as the Indonesian Ulemas Council (MUI). Students are at the same time encouraged to attend not only curricula but also extra-curricula activities. including the provision of reference books (numbering 542. particularly their schooling quality. better Islamic boarding school and public school buildings. organize regular. etc.
and after graduating from junior secondary in three years or to vocational senior secondary school in three or four years. implementing compulsory education. After graduating from primary school. Reformation of the national education system. they can continue to specialist program. the Government enacted Law No. If they choose graduate program. development and implementation of competency-oriented curriculum. that allocation has not been fulfilled. academy. to be followed by preparation of 14 Government Regulation bills as materialization of said law. pupils can continue to next higher level that is called junior secondary school in three years. In 2003. and will be fulfilled by stages. The main agenda of education development in Indonesia is to develop and stabilize the national education system based on decentralization. 20 of 2003 on National Education System to replace Law No. graduate school. institute. scientific autonomy. they can continue to post-graduate study and if they choose diploma program. Based on Law Number 20 of 2003 on National Education System. and certification. In accordance with Law Number 20 of 2003 on National Education System. organizing open and equitable education. encouraging the establishment of model Islamic boarding schools. and implementing supervision of the national education system. providing scholarships to students from rather remote and isolated areas with the hope that they would later set up similar schoolings at their native villages or hometowns. educative and dialogic learning process. Due to the Government's budget limitation. Education The 1999-2004 Guidelines of State Policy states that education development policy is directed to extend and equalize the chance to reach high quality education to all Indonesian people. followed by next higher educational level called primary school in six years. such as university. implementing autonomous educational management. and helping the development of agro-businesses at 60 Islamic boarding schools. as entrusted by the amended 1945 Constitution. 2 of 1989 on National Education System. 185 . Article 31 directs the Government to allocate education budget up to 20 percent of the National Budget and the Regional Budget. enhancing the professionalism of teachers and educational manpower. or polytechnique. the strategy of national education shall consist of implementation of religious teaching and good behavior. supplying educational facilities. however. educational expenditures that is in accordance with the principles of justice and equality. schooling in Indonesia shall begin from kindergarten in two years. empowering educational evaluation. empowering people's participation. accreditation. Graduates from general senior secondary schools can continue to diploma or graduate programs or other types of higher education.the Middle East countries and other countries. and management principles as education development direction in Indonesia.
927.808. Basic education provides the learners with basic knowledge and skills. equivalent to general junior secondary school. On the other hand. the total of private and state-run primary schools was 169. equivalent to primary school and Islamic general secondary school called Madrasah Tsanawiyah. while playgroups and day-care centers are attended by children of at least three years old. six years of primary school and three years of junior secondary school. Primary School In 2002/2003 academic year.234. showing an increase over the previous academic year's 1.164. citizens and members of humankind. Primary school students.926.377. members of society.315. Pre-school education aims at stimulating physical and mental growth of children outside of the family circle before entering primary education that can be held in formal school system or informal education. the hope of future generation 186 .050. managed and supervised by the Ministry of Religious Affairs. Among the types of pre-school education available are kindergartens at the formal schools and playgroups and day-care centers at the out-ofschool form.834 showing an increase from the previous academic year's 28. i. Included in Basic Education are Islamic general primary school called Madrasah Ibtidaiyah. The total pupil in 2002/2003 was 29. total of teachers in 2002/2003 was 1.147.Pre-school and Basic Education Basic education is general education of nine years. as well as to prepare them to pursue studies in senior secondary education. The goal of basic education is to develop student as individuals.e. Kindergarten is provided for children for one to two years of education. showing a decrease from the previous academic year's 171.
The goal of the program is to realize autonomous management to four state-run higher learning institutions. Senior Secondary Education The program for the development of senior secondary education includes general secondary schools. or to continue their studies to a higher level of education. vocational secondary schools.143.322.730 pupils in 2002/2003 academic year.522.e. The number of teachers in 2001/2002 academic year was 90. particularly to students with excellent achievements but coming from poor families. In addition. improving educational quality as a basis for the pupils to continue their studies to a higher level of education or the preparation of student to enter the work market.027. Secondary education consists of general secondary schools. Higher Education The national development program for higher education is aimed at developing the higher education system.753 pupils in 2002/2003 academic year.672 in 2002/2003 academic year.176 pupils in 2001/2002 academic year and 3. vocational secondary schools and religious secondary schools that aims at extending the scope and accommodation capacity of the schools.Junior Secondary School The number of private and state-run junior secondary schools in 2002/2003 academic year was 32.464 pupils in 2001/2002 academic year and 2. the Bandung Institute of Technology (ITB) in West Java. The number of general senior secondary schools in 2001/2002 academic year totaled 7.757.647.512 from the previous academic year's 384.123. On the other hand. total of pupils in the academic year of 2002/2003 was 9. 2.626. An increase was also shown in the number of pupils i. increasing the quality and relevance of higher education with the job market. 187 .089 in 2002/2003 academic year. Secondary education gives priority to continue and expand the basic education and prepare students to become members of society with knowledge and skills to make relations with social environment.682. culture. total of teachers on the academic year rose to 376. showing an increase over the previous academic year's 31. An increase was also shown in the number of pupils i. and religious secondary schools.036 in 2002/2003 academic year. The length of secondary education is three years for general secondary schools and four years for vocational education.e. an increase over previous academic year's 9.943 in 2002/2003 academic year. and enhancing an equitable opportunity to continue studies to the higher level education. and 261. Secondary education is made available to graduates of basic education. 3. i. The number of teachers in 2001/2002 academic year was 252. and natural environment and to develop further skills to enter the work market. The number of vocational secondary schools in 2001/2002 academic year was 4.806 and 96.099.024. and 4.785 and 8.843.e.936.
the Bogor Institute of Agriculture (IPB), also in West Java, the University of Indonesian in Jakarta, and Gadjah Mada University in Yogyakarta, and to do pioneering work for its implementation of other state-run higher learning to increase the number of graduates absorbed in employment and to increase the crude participation rate (APK). Higher education is an extension of the senior secondary education, consisting of academic and professional education. Higher education is made available to prepare the students to become members of society with academic and/or professional skills, who have ability of education that holds higher education is called the higher learning institutions in the form of academies, polytechnics, schools of higher learning, institutes, or universities. The length of higher education is called the higher learning institutes, or universities. The length of higher education is three years for diploma program, and four years for undergraduate studies and finally to post-graduate program for three more years. Higher Learning Institutions In 2004, the number of state-run universities was 81 and private universities 2,399. The number of students studying in state-run universities in 2002/2003 academic year was 2,935,848 and the number of lecturers was 143,096. In 2003/2004 academic year, all of Indonesia's 81 state-run universities admission of new entrants showed a decrease from 82,969 in 2002/2003 academic year to 82,190 seats for new entrants in 1,615 study programs. In the year of 2003/2004 the participants of State University Admission Test (SPMB) who passed it were 78,829 from 350,306 who had registered for the test. The number of SPMB participants who passed the admission test in 2002/2003 academic year was 78,829, showing a decrease 3.24 percent compared to 471 in 2001/2002 academic year. In 2003/2004 academic year, the status of six leading State Higher Learning Institutions (PTN) has been changed to be State-Owned Higher Learning Corporate Body (PTBHMN). They are the Bandung Institute of Technology (ITB), the Bogor Institute of Agriculture (IPB), the University of Indonesia (UI), the Gadjah Mada University (UGM), the North Sumatra University (USU), and the Indonesian Education University (UPI) in Bandung, West Java. The establishment of State Higher Learning Institutions with the status of State-Owned Higher Learning Corporate Body (BHMN) is aimed at decreasing government financial burden in financing the education sector, in addition to the autonomous implementation of Higher Learning Institutions and the application of Government Regulation No. 61 of 1999 on Implementation of Indonesia's State Higher Institutions as State-Owned Higher Learning Corporate Body. Research University With a status of State Owned Higher Learning Corporate Body (BHMN), the University of Indonesia (UI) has targeted its program to become a research university in 2010, but it 188
needs government support especially through laws and regulations. According to the Rector of UI, Usman Chatib Warsa, actually UI has taken action as a research university, by establishing a noble industry, namely the Institute of Human Virology and Cancer Biology (HIVCB), which involves a world expert, Professor Robert Gallo of University of Maryland, United States. The IHVCB laboratory has started its activity since August 2004, together with physical facility building in the UI Campus of Salemba, Jakarta. Informal Education Development for informal education (PLS) is aimed at providing services to the people who do not receive or have not received a formal education to develop their selves, behavior, knowledge, and skills, self-potential, and developing productive efforts to increase their welfare. In addition, the PLS Program is directed to give basic knowledge on professional entrepreneurship and skills for themselves and their families. The goal of PLS program is to enable people or students who do not receive or have not received formal education. They consist of people who have not yet finished nine-year compulsory basic education. The program is also directed to empower centers or workshop of people's learning activities. The main agenda of the PLS Program is to accelerate illiteracy eradication through the development of functional literacy, especially to people of 10-44 years old. The existence and usage of book centers shall be developed and increased to make people love to read. The efforts to eradicate three-old illiteracy (the Latin words and number illiteracy, Bahasa Indonesia illiteracy, and basic education illiteracy) are developed by their types to accommodate drop-out students from various paths, kinds and levels of education services and quality and quantity of student of Package A Learning Group (equivalent to primary school), Package B Learning Group (equivalent to junior secondary school) to support nine-year basic education, and to develop learning model for sustainable education program with skill and entrepreneurship orientation. Types of informal education may include courses, education and training, group learning, centers for group community education; and religious education. In line with this development, the rate of literacy people by the age of 15 years off and up increased to 89.8 percent in 2003. International Olympic In 2003, Indonesia participated in Natural Sciences and Mathematics Olympics, both in national and ASEAN level followed by ten nations and won gold medals, one silver and two bronze medals. In 2004's, representatives from Indonesia followed the Asian Physics Olympic, and they gained six gold medals. In the 2004's XXXV International Physics Olympiad in Pohang, South Korea, Indonesia gained one gold medal, one silver medal, and one honorable mention.
SCIENCE AND TECHNOLOGY One of the duties of the Ministry of Research and Technology is to assist the President of the Republic of Indonesia to formulate policies to be implemented by the Indonesian Government specifically in utilizing, developing and mastering science and technology for the national development. The implementation of these policies are based on several regulations: the 1945 Constitution, the Guidelines of State Policy (GBHN), National Development Programs (Propenas), Law No. 18 of 2002 on National System of Research, Development and Application of Science and Technology, and Development Programs of National Strategic Policy of Science and Technology (JAKSTRANAS IPTEK). Article 31 clauses 5 of the Amended 1945 Constitution stipulates that the Government shall develop science and technology based on religious values and unity of nation for the development of human dignity and welfare. This is further emphasized in Decree No. IV/MPR/1999 of the People's Consultative Assembly concerning the Guidelines of State Policy (GBHN), which states that Indonesia shall improve her ability in mastering, enhancing and utilizing science and technology, including the capability of Indonesian people and business players, especially Small and Medium Enterprises (SMEs) and cooperatives, in order to increase product competitiveness based on local resources. This also means that technology shall be able to carry out activities in increasing health, education, food fulfilment, industry and others, to meet self sufficiency and improvement of the nation's competitiveness. In parallel, the National Development Programs (Propenas) 2000-2004 emphasizes that science and technology (S&T) is expected to take part in the acceleration of the economic recovery, the strengthening of the foundation of sustainable and equitable development, as well as the development of cultural resilience and social welfare. To develop science and technology effectively, oriented to people's need, promoting the real benefits, and fulfilling the whole regions, in 2002 the Government ratified Law No.18/2002 on National System of Research, Development and Application of Science and Technology. This law forms a guideline to the formulation of the National Science network system. Hence, the role of the central government, regional governments and society, especially business players, can be in synergy in the development of the national science and technology. With determined policies, therefore, the implementation of various programs is related with the mastery of science and technology in the frame of strengthening national economy and developing social life. To materialize such contribution, the Ministry of Research and Technology implements the Strategic Policy of National Science and Technology Development 2000-2004 (JAKSTRA IPTEKNAS).
Achievement To increase the science and technology capability and culture, the Ministry has carried out some priority research programs such as the Integrated Priority Research Scheme Program (Riset Unggulan Terpadu), the International Integrated Priority Research Scheme (Riset Unggulan Terpadu Internasional), the Partnership Priority Research Scheme (Riset Unggulan Kemitraan), and the Selective Research Scheme for Social Sciences and Humanities (Riset Unggulan Kemasyarakatan dan Kemanusiaaan). In these research schemes, participants initiate research topics and plans of proposed activities. Another priority research scheme program is the National Strategic Priority Research Program (Riset Unggulan Strategis Nasional). In this top-down research, the Ministry initiates plans and ideas of intended activities for research and technology. The Integrated Priority Research scheme is designed, among others, to orient the ability of human resources of research institutions, be they in central and regional governments, universities or industries, toward the creation of an integrated network to improve their ability in enhancing basic and applied science and technology. The International Integrated Priority Research scheme has carried out international joint research and development among Indonesian researchers and international research institutions/universities in various fields, such as with CSIRO-Australia and University of Twente in the Netherlands (marine), Oregon State University-USA (agriculture and food), Katolieke Universiteit Leuven, Belgium (environment), and Shinshu University of Japan (health). The Selective Research Scheme Program for Social Sciences and Humanities is designed to bridge the gap between social sciences and humanities with other sciences and to develop theories and new concepts in this field. In 2003, this program conducted applied research and science development researches. The implementation of the national strategic research scheme program covers six activities of enhancement in the fields of: (1) Information technology and microelectronics that produces gateway media prototype, antenna planner array prototype, IP Core video transcoder; (2) priority fruits pineapple, banana, mangosteen for consumption and raw material for industry; (3) group fish cultivation; (4) diversification of corn-based stapple food; (5) light Aluminium Engine for various transportation modality; and (6) oil-palm downstream industry to lengthen its value-added chain. The Partnership Priority Research scheme is one of the Ministry's policies in utilizing science and technology in industrial sector through research cooperation between research institutions and industries. The Government, together with industries, funds this research in the form of cost sharing. In 2003 this program financed 35 research activities. Start-Up Capital. This program is designed to bridging the S&T activities, done by research institutions and universities, with business activities. In 2003, this program executed research activities in the fields of health, agriculture and food, 191
192 . This scheme is aimed at encouraging technology-based small-medium-scale industries (UKM) to increase their productivity. Garut. Warintek is equipped with a data base in the form of an "Educating Nation" CD-ROM. Purbalingga.telecommunication and information. Bengkulu. Magelang. Center of Technology Promotion and Marketing (Sentra Promptek). non-government organizations. Incentives for Strengthening Technology and Management (SIPTEKMan). enhance marketing network and simultaneously absorb numbers of manpower. the Ministry has distributed computers to some education institutions. as well as the promotion of regional S&T. manufacturing laboratory facilities for education. covering the development of Digital Library. the promotion of Laboratory Accreditation. several programs have been executed. to strengthen the synergy of biotechnology-based industries and to provide an integrated infrastructure for biotechnology research and development. the government of Germany also supports this program through training and networking channeling. To promote the socialization and utilization of S&T. comprising of Appropriate Technology. Information Technology Kiosk (WARINTEK) is a program aimed at cultivating and utilizing S&T information in society. To increase the added value of biological resources in Indonesia. chemical and post harvest. This program is adopted from UNESCO's "Information for All Program". The objectives of Bioisland development are to increase the biotechnology role in the global economic and human welfare. The Advancement of Regional Innovation through Business Technology Center (BTC). In 2003. the BTC had been established in Batam. medical and pharmaceutical biotechnology. Riau. Yogyakarta. Bioisland is an integrated research and development area for commercialisation of biotechnology. Bandung. To further improve society knowledge. The concept of BTC is the strategy of the Ministry to accelerate the process of interaction between business world and technology suppliers in regional areas of which their activities will very much depend on the market and industrial need. OLEH Paten. Other incentive programs conducted by the Ministry of Research and Technology are among others: Center for Intellectual Property Right (Sentra HKI). industrial and environment biotechnology as well as marine biotechnology. and Jakarta. in term of science. technology and industry. Yogyakarta. Batam Island. The Bio-island's field of works covers agricultural and food biotechnology. such as the enhancement of S&T information system. such as Bioisland and Agrotechnopark. Medicinal Crops and Food Diversification Information. the Ministry has carried out Bioisland planning and development in Rempang. product diversification. the development of S&T activities using multimedia information system. Along with the incentive scheme programs. and regional governments such as Malang. Jambi. To internationally broaden the market. the Ministry of Research and Technology has also executed some specific or thematic programs.
Government Regulation on the Permit of Hazardous Research. Universities and industry. Government Regulation on Research Permit for Foreigners residing outside Indonesia. Some of the cooperation. the Ministry of Research and Technology steps up partnership and networking between S&T institutions. The Ministry of Research and Technology also conducts some programs related to guidance and strengthening the S&T Institutions. The four regulations are: Government Regulation on Technology Transfer by Research Institution. and BAPETEN (Nuclear Control Board). PUSPIPTEK development program is another priority program. In 2003. construction of post-harvest processing. National Institute of Aeronautics and Space (LAPAN). Higher Education Institutions.18/2002. Involved in this program are Regional Government. In order to build national superiority and competitiveness. Furthermore. the Ministry has also set up coordination with its LPNDs (Non Departmental Government Agencies). South Sumatra. and business society be they in domestic or international scope. is the development of an integrated agro system emphasized on technology transfer. for instance. Included in this program are the development of Eijkman Institution. Agency for National Nuclear Energy (BATAN). ducks. hatchery and shrimp pond. Indonesian Institute of Sciences (LIPI). Development and Application of S&T. animal husbandry (laying pullets. corn plantation. In order to strengthen the basis and sharpen the direction and priority of S&T development. This effort is implemented through the development of Center for S&T Visual Display (PP IPTEK) located at the Beautiful Indonesia in Miniature Park (TMII) and in several other regions. and Government Regulation on Research Permit for Foreigners residing outside Indonesia. 193 . and animal provision. In 2003 the Ministry accomplished the examination of the two drafts of those regulations. this program built some physical constructions such as clearing of soil. namely the Agency for the Assessment and Application of Technology (BPPT). PUSPIPTEK and PP Iptek. To enlarge productivity and competitiveness for the national utilization and development. located in Muara Enim. Board of National Research Development and other stakeholders through among others developing Regional Research Development Boards and fostering S&T cooperation. The main duty of Agrotechnopark is to develop human resources through agribusiness application in the field of agricultural (corn and peanut) cultivation. shrimps and sheep) and post-harvest process. The Eijkman institution has conducted some researches and developments in health and medication. the Ministry has introduced and facilitated S&T to the people of the early age. the ministry has also promoted cooperation with Regional Research and Development Institutions. the Ministry is dedicated to formulate four Government Regulations as the implementation of Law No. In the frame of S&T socialization. Government Regulation on Allocating part of enterprise earning. which is expected to support the growth of technology-based industry. namely Government Regulation on Technology Transfer by Research Institution. BSN (Agency for National Standardization). cows. BAKOSURTANAL (National Coordination Agency for Survey and Mapping).Agrotechnopark.
000 Live Births 150 Dengue Fever Infections per 100.000 Children 2 Childhood Diarrhea Deaths per 1.18 billion (routine and development additional budget). 3) keep and improve qualified. as mentioned in this table: HEALTHY INDONESIA VISION 2010 Health Indicators Target Life Expectancy at Birth 70 Infant Deaths per 1. people. the remaining 15% of budget is allocated to fund "policy study" program. and neighborhood health. such as incentive scheme. and priority research scheme programs. Health In building health for the people.include the ASEAN COST (Committee on Science and Technology) which is held twice a year. the Republic of China. and Germany. health development should be able to: 1) motivate national development with health outlook. commonly prevalent. and bilateral relations with India. Total budget for executing those all mentioned programs amounts to Rp 172.000 People <1 Malaria Infections per 1.000 Live Births 40 Childhood Deaths per 1. This Healthy Indonesia Vision 2010 is also aimed at improving 16 health indicators. with its four missions. family. some 85% of which is allocated to fund "policy instrument" programs.000 Live Births 58 Childhood Pneumonia Deaths per 1. 4) improve individual.5 Recovery Percentage from Tuberculosis of the Lungs >85 Percentage of HIV/AIDS Carriers to Risk Population <1 194 . and attainable health service. Meanwhile. namely. the Government has determined Healthy Indonesia Vision 2010.000 Children 1 Maternal Deaths during Childbirth per 100. that is the study of S&T Development. 2) urge people's independence to live healthily.000 People 0.
and the results based on the performance indicators of the PROPENAS: 1) Healthy Environment. Children Under 15 Years per 100. Children Under Five Years Old with Lack of Nutrition rate has declined from 30 percent in 1998 to 27.000 live births (SDKI 2003). and protecting their health and environment towards the development of a healthy. Infants death rate (AKB) has declined from 46 per 1. Maternal Death during Childbirth (AKI) has gone down from 334 per 100. Life Expectancy has increased from 63 years (1990) to become 66 years (2002-2003).000 live births (SDKI 1997) to 46 per 1. improving. The National Development Programs (PROPENAS) 2002-2004 has determined six health programs. In general.000 live births (Indonesia Demographic and Health Survey SDKI 1997) to become 35 per 1. fulfills basic needs to live healthily and enhances social interactions. Healthy Behavior and Community Empowerment Program is aimed at promoting the quality of healthy living environment that supports the growth of children and youth. empowers individual. Along with the decline of Infants Death rate. death rate of children under five years age. among others 195 . attitude.Acute Flaccid Paralysis (AFP). life expectancy at birth. Children Under Five Years of Age death rate has decreased from 79 per 1. their aims.000 People <1 Percentage of Infants with Low Birth Weights 5 Percentage of Children With Sufficient Nutrition 80 Percentage of Pregnant Women With Malnutrition -induced Anemia 45 Prevalence of Disorders due to Iodine Deficiency 6 Percentage of Women of Child Bearing Age With Chronic Energy Deficiency Syndrome 10 Source: Department of Health (2002) In building health for the people. The status of people's health and nutrition can be seen among others from infants death rate. family and community health in the frame of keeping. and active participation of individuals. Meanwhile. and the status of people's nutrition. self-supporting and productive community through improvement of knowledge. Following are the programs. the result of health development implementation can be seen at among others in people's health and nutrition and illness pattern. Meanwhile. development of positive behavior.000 live births (SDKI 2003). maternal death rate during childbirth.000 live births (SDKI 2003).5 percent in 2003. the results of this program show an increasing trend. families.000 live births (SDKI 1997) to 307 per 100. and the communities in line with local socioculture. and keeps the community out of threats coming from the neighborhood.
protecting people from usage of pharmaceutical. psychotropic. narcotics. 2) Health Efforts Program is aimed at promoting equitable distribution and the quality of effective and efficient health efforts and their affordability by the community.an increase of families using healthy toilet from 61.2 percent in 2001 to 80 percent in 2003. and the scope of medical treatment at childbirth by health workers reaching 68 percent and 70 percent respectively.64 per 100.1 percent and 27. and exclusive breast feeding (ASI Exclusive) to infants of 0-4 months old reaching 52 percent and 53 percent respectively.8 percent respectively. and logistic support to health services.7 percent respectively. households consuming iodized salt reaching 64 percent and 78. lack of Vitamin A (KVA) among children under five years old reaching 0. prevalence of chronic lack of energy (KEK) among pregnant women reaching 20. The results of the program reached in 2001 and 2003 included: prevalence of malnutrition to children under five years old reaching 26. infrastructures. and distribution of health workers.33 percent. affordable and usable by the community. food.1 and 16. health equipments which do not meet the requirements of quality and safety. 3) Improvement of Community Nutrition Program is aimed at improving the intellectuality and productivity of human resources through the improvement of family self-supporting efforts to improve nutrition. 5) Drugs. and addictive substance (NAPZA). which is equitably distributed. The result of this program in 2001 and 2003 included: the scope of Universal Child Immunization (UCI) reaching 72. quality.5 percent respectively. improving the number.46 per 100.000 people.5 percent respectively.5 percent in 2001 to 68 percent in 2003.1 and 45 percent respectively. quality. and ratio of health workers compared with the number of people reaching 85. effectivity and efficiency of health budgeting and improving the availability of facilities.000 people and 120. iron anemia (AGB) of pregnant women reaching 40. 4) Health Resources Program is aimed at stepping up the number. and improvement of quality food diversification to strengthen household food reinforcement.9 and 80 percent respectively. Food and Hazardous Material Program is aimed at protecting people from the dangerous effect of the abuses of drugs. 196 . rising percentage of families using clean water in urban and rural area from 77. securing the availability and equitable-distribution of quality medicine needed by the people. The results of the program reached in 2001 and 2003 among others were: people following the financing system of pre-efforts 20 percent and 21. and improving pharmaceutical industries competitive power potential based on domestic natural resources. improvement in nutrition services to reach good nutrition.
In 2003. The Government provided 30 percent of the total budget spent on the anti HIV/AIDS movement. only six years after the first in the U. etc. Drug use by injection and commercial sex have been fueling the epidemic. reaching 100 percent of the processed cases in 2003. AIDS Carriers in Indonesia The first AIDS case in Indonesia was diagnosed in 1987. up from US$3.4 percent among sex workers in Papua and 47 percent among drug users in Jakarta. foreign donations increased to US$19. widely known as the antiretroviral (ARV) treatment. drugs for AIDS. psychotropic. control upon 65 percent of production and distribution of health pharmaceutical in the frame of Good Management Practice (GMP) in 2003. introduction of the concept of essential drugs of the National Essential Drugs List (DOEN) as an instrument of rational drugs consumption and cost effective. social riots. pharmacy and traditional medicine. through the Program for compensation of Oil Fuel Subsidy Reduction (PKPS BBM). operational research for intensification of contagious diseases eradication. ecology. determining drugs list and drugs price standard ceiling of basic health drugs as a guide for district/city in connection with natural disaster.3 million last year. making 199 research works that covered policy studies. In Indonesia.7 million from its 2003 fiscal budget for the fight against the virus.25 million in the previous year. health fostering research. Indonesia also allocated US$5. epidemic. Separately.9 in 2004. Most HIV-infected are males (77 percent) while the most-affected age group are those between 20 years and 29 years old (41.The results of the program are among others: protecting people from the dangerous effect of the abuses of drugs. and publishing of 174 articles on scientific researches. with the rest provided by foreign donors. The results of the program reached in 2003 were among others: determining 56 laws and regulations to become health program policies. contagious diseases eradication. Generic ARV has been available in this country since September 2001.S. 197 . 6) Health Development Policy and Management Program is aimed at facilitating health efforts implementation through an efficient and effective policy and management and supported by science and technology. and addictive substance (NAPZA). imported from Thailand and India. remains big concern due to its unaffordable cost. at the rates reported by the United Nations Program on HIV/AIDS (UNAIDS) as high as 26. the Government distributed drugs for the community. health technology services. narcotics. from US$9.7 percent).
namely: Cipto Mangunkusumo Hospital. Sulanti Saroso Hospital.500 transvestites and 6.000 of their customers 24. as follows: 198 . the number of Indonesian population was 179.49 percent in the period of 1990-2000.4 million people and 202. The number of Indonesian people has been increasing yearly. the Government had arranged legal support for the waiting of the Bill on Demography Administration and academic draft on population data protection. Besides. The decrease of the TFR was a consequence of increased contraceptive devices (prevalence) of fertile age spouses.8 children. the Total Fertility Rate (TFR) of reproduction age women reached 2. Success in controlling population showed in the significant decline of birth rate. 2002 Since August 2004.000 sex workers and 6.000-130. as well as develop and harmonize the policy of demography by noting the aspects of demography and environment as the center of development. Bali. West Java. decrease death rate. Dharmais Hospital. and North Sulawesi). Based on Population Censuses (SP) of 1990 and 2000. Mintoharjo Hospital.97 percent).000) 43. the Government has provided free AIDS medicines in nine hospitals in Jakarta. Prevalence rate increased from 57 percent in 1997 to 60 percent in 2002 (SDKI 20022003). improve the quality of the Family Planning Program.000 couples from the above mentioned groups Source: Department of Health. with population growth reaching 1. Duren Sawit Hospital. To develop the information system. Central Java.AIDS Carriers in Indonesia (90.000 injecting drug users 10. although the growth rate tends to decrease. or lower than that of previous period of 1980-1990 (1. Polri Hospital.6 children in 2002 (Indonesia Demographic and Health Survey SDKI 2002). Demography and Family Planning The policy in the field of demography and family planning is to improve the quality of people through birth control. For demography and Family Planning. and Fatmawati Drugs Dependency Hospital. Persahabatan Hospital.000 gays 8. Gatot Subroto Hospital. In 1997.2 million people.000 of their customers 1. demography administration tryouts had been implemented in 13 districts in 6 provinces (Banten. Special Territory of Yogyakarta. but decreased to 2. the Government has setup some programs.
Youth Reproduction Health Program is aimed at improving knowledge. National Campaign on Free Birth Certificates. and the establishment of the Indonesia Children Protection Commission in 2003 through Presidential Decree Number 77 of 2003. In 2004 (until March 2004) Prosperous Family Income Improvement Effort (UPPKS) groups were still recorded at 342. marked by among others increase of family awareness and empowerment in fulfilling basic. children protection. health. The results reached until 2004 are among others: formularization of demography administration system and policy. bill on Demography Administration and Family Development as the amendment to Law Number 10 of 1992. During the period of 2000-2004 the Government has established the Youth Consultation and Information Center (PIK) for 662 groups. document on National Program for Children Protection (PNBAI) 2015 which is children program in national scope covering the fields of education.1. while active family planning participants in 2004 reached about 27. behavior and positive attitude of youths on reproduction health in the form of improving their reproduction health degree to prepare family living to support the improvement of efforts for the development of future generation. covering about 7. Family Empowerment Program is aimed at improving family welfare and resilience as the smallest unit in community. 4. demography effect analysis and indicators. Besides. Family Planning Program is aimed at fulfilling the need for qualified Family Planning and reproductive health services.3 thousand people.9 of the total UPPKS members. 2. developed the Ceria (happy) Internet Website. population numbering system. social. Demography Policy Appropriateness and Development Program. which is aimed at realizing appropriateness of demography policies in all aspects of development.1 thousand groups. Prosperous Family Undertaking Credit (Kukesra) reached 50.2 million. 3.9 million for the past five years (2000-2004 until April 2004). and HIV/AIDS controlling.8 million of families primarily from Pre-Prosperous Family (KPS) and Prosperous Family I (KSI). and controlling the birth rate that in turn improving qualified small families. and psychological needs. The results of the program include the capability to ask Fertile Age Spouses (PUS) to become new family planning participants at the average of 3. Meanwhile the programs relating to children development are among others: Master Plan of Children Welfare and Protection (KPA). there were also established the Concern-for-Youth Family Groups (KKPR) for 21. and training for promotion force for Youth Reproduction Health for 15.2 thousand groups. 199 .
particularly of economically low income bracket.97 percent). Under the 1999-2004 National Development Plan.5 percent in SDKI 2002-2003. 10.533 Village Family Planning Assistant Supervisors (PPKBD). by owning proper and healthy houses. The family planning participation has successfully decreased the birth rate.48 percent in the period of 1990-2000.470. Family Planning Network and Institutional Strengthening Program is aimed at improving self-support as well as the scope and quality of Family Planning and reproductive health .0 in SDKI 1991.32 percent) and the period of 1980-1990 (1. and increased to 60. 363. (3) promote the development of simple high-rise apartments for people of low income bracket at urban areas with high population density. and the majority of them were held by private midwives. Housing Housing development constitutes a major concern of the Government to improve the people's living standard. The proportion of the patients serviced by this private services had been increasing from 41. 5.6 children per woman in SDKI 2002-2003.4 percent. primarily those undertaken by the community. The relationship between the Family Planning Program and the population number is shown from the efforts above.195 Private Doctors. with population growth rate of 1.2 million respectively. and of separate unit of readyto-be built environment. In SDKI 1997. particularly by people of low income bracket. and become 2. the family planning program has taken part to decrease the population growth rate in the past three decades.6 children per women in 1970-s to 3. the participatory rate of family planning reached 57.8 in SDKI 1997. industrial areas 200 . In early 2004 there were recorded Rural/Urban Community Institutions (IMP) as follows: 80. Based on Population Censuses (SP) 1990 and 2000.920 Private Family Planning Clinics.4 million and 206. the number of Indonesian population was 179. doctors and private midwives giving family planning services to community were recorded at 51.478 Private Midwives. consisting 2.066 Sub-PPKBD and 749.034 Family Planning Groups having participated in as the spearhead of Family Planning in the field. The efforts to improve the Private Family Planning Network that consists of Family Planning Clinics.3 percent in SDKI 2002-2003. and 35.The SDKI has also showed increase of family planning participation for the past five years. and at last to 2. (2) encourage the development of large-scale residential areas through schemes of ready-to-be built housing areas. or lower than that of in the period of 1970-1980 (2.9 percent in SDKI 1997 to 62. In line with the increase of people's socio-economic degree. housing policy aims to: (1) meet demand for appropriate and affordable houses. that is the number of children per reproductive age woman (15-49 years) or the Total Fertility Rate (TFR) had decreased from 5.
and (5) help recover the living of refugees. there are 27 banks ready to provide subsidies to finance the construction of 112.2 million persons in 10. are given to people with earning less than Rp1. In this context the Government allots Rp420 billion to subsidize the disparity of bank interest those banks should bear for the construction of 150. the central Government strives to improve the effectiveness of housing development programs and maintain synergy with regional administrations.297 homes built for people of low-income bracket under a mortgage.000 locations.5 million (28.000 homes. which was launched in October 2003. limited economic capacity of the said families (some 70 percent of them earn less than Rp1. 474.000 homes being the target to be built in the year. slum clearance of 3. The subsidies. For 2004.5 million per month). The homes are of the sizes from 21 sq. In addition there were a number of simple apartments having 6. simple but healthy to be occupied. about 800. meters worth ranging from Rp21 million to Rp36 million per house. districts and municipalities) to be used for simple but healthy homes and high-rise rented apartments. to utilize efficiently and effectively plots owned by regional administrations (provinces. and victims of natural disasters or calamites through the establishment and rehabilitation of damaged houses and their environmental infrastructures and facilities.968 homes having historical values or traditional styles covering 641 ha in 145 areas. During the period 2000-2004. However. there are problems to face in addressing the housing supply and conditions.602 homes constructed under micro-mortgage scheme.and trading areas. help to make access to financial institutions to obtain low-interest credits through a mortgage.22 percent of the total) In tackling the short supply of housing. 66. and high-rise apartments. subsidies have been made available.5 million per 201 .114 units of homes constructed at urban areas. Those homes.742 ha through the supply of micro-mortgage for 6.000 homes need to be built to keep pace with the country's population growth. there were 378.573 homes erected by home owners.000 units. the increase of slum dwellers to about 17. and renovation of 191. and so does the number of rented dwellings. The number of owner-occupied homes keeps growing. and not-healthy-for-occupation homes numbering about 14.000 homes out of 200. are for people who still do not have their own homes or apartments with low income or unfixed earnings. which is a system of installment purchase through loans from some sources (banks etc). among other things: about six million heads of families still do not own homes. provided under a mortgage system. to simplify procedures to get permits. (4) promote sound environment at residential areas. business circles and the communities. meters to 36 sq. Scheme of Building One Million Homes In supporting the scheme of building one million homes per annum during the period of 2004-2020. and utilize foreign loans efficiently and effectively.
The trend of property business in 2003 was astonishing: it grew by 87 percent from Rp25. meters in the first quarter of 2004. from Rp5.22 trillion. To pay the down payment of the housing construction.600 sq. Demand for office space noted a rise of 160 percent or 220 sq. or a rise of 30 percent. from 176 in the previous year. meters from 8. and the Home DownPayment Loan Scheme for first-time home buyers.79 trillion in 2002 to Rp45. of which 27 administrations have signed agreements with developers.34 percent.753 units out of 27. In the same year property business' contribution to the country's GDP was 2. Development of Property The past few years have seen a substantial growth in the property sector. A 11-percent interest per annum is offered by the agency to housing developers.5 million have no homes of their own yet. Also in 2004 the Government built 160. the agency earmarks about Rp 2.58 trillion to Rp10.month.5 million. This sector was suffering a great loss when the country was hit by monetary crisis in the middle of 1997. It means they each get financial aid ranging from Rp2. To accelerate the supply of housing since 2002 the agency has offered housing builders loans under the Home Construction Loan Scheme. The same trend occurred in rented apartment new-occupation when the number increased to 243 units during the first quarter of 2004.000 homes for civil servants.4 million to Rp3.000 homes per annum.2 trillion.128 homes or averaging 75. In 2000. The total number of civil servants is 3.000 homes for civil servants. Every civil servant has the right to get a subsidized home credit on condition he or she has been a civil servant for five years and his or her age no more than 50 years. Following suit was the number of housing developers that increased from 1. The agency has set a target to set up 100. the agency has financed the construction of only 752. to reach 22.1 percent. Demand for property during the first quarter of 2004 showed a rise in many sectors. 202 . and members of the Police to improve their living standard.15 percent.936 units. Condominium occupation grew at 83. by maintaining cooperation with regional administrations and developers. So far there are 101 district/municipal administrations willing to build homes for civil servants in their respective areas. personnel of the Indonesian Armed Forces (TNI). and credit interest of six percent to ten percent. Cross-subsidies along with their housing savings managed by a Housing Savings Supervision Agency will help finance the construction cost.500 sq.5 million. meters during the final quarter of 2003 to 10.90 trillion in 2003.000 establishments in 2002 to 1. Cumulatively the number of rented apartments was 14. capitalization of national property projects swelled by 83.368 units having been constructed. During the past ten years.300 establishments in 2003. of whom 1.
3 percent at the beginning of 2003. Women Empowerment The government has arranged three programs on the position and role of women. that is aimed at improving the position and roles of women as individuals. Youth of Girl Movement.Stimulating the rapid growth of property in 2003 was the decline of the SBI interest rate from 13. 203 . they are: • Women Life Quality Improvement Program. as part of family setting up recent and future generations. the exiting policy is directed to increase service of men to be able to actively participate in Family Planning Program. and Breast Feeding Care Movement. Through Family Planning Program. that is aimed at improving the role and independency of institutions having the vision of women empowerment especially that of women organizations. Other supporting programs are Developing Family of Children under Five years. as social being acting as agent of social change in all aspects of life and development. which measures the quality of human development related to gender showing increased rank from 92 out 162 countries with index of values of 0. both as development human being and sources. through Love Mother Movement (GSI). Empowerment of People's Role and Gender Mainstreaming Institutions Capability Program. Love Mother District. making housing loan interest relatively lower or cheaper. • • Some results of the programs of women life quality improvement in 2001-2004 include: The Gender-related Development Index (GDI). Love Mother Hospital.671 in 2001 to become rank of 91 out of 175 countries with index values of 0. It was followed suits by Bank Tabungan Negara (BTN-the State Savings Bank) that lowered its housing loan interest to 15 percent from previously 18 percent. developing the capacity and ability of government institutions in Improving gender mainstreaming in all phases of development process. improving male contraceptive services. and developing family development approach with emphasis on health and reproduction rights. especially in rural areas and slums in urban areas.2 percent in 2002 to 10. In health development. strengthening active roles of the people in the efforts of enhancing women empowerment. Working of Women Movement.678 in 2003. Women Empowerment Policy Suitability and Development Program that is aimed at realizing suitability in all policies of women empowerment in all fields of development. and Husbands Readiness-to-help Campaign. the Government has increased the efforts to improve the quality and scope of health service to reduce high mortality rate of women delivering babies.
The result of the 2004 General Election shows that women representation in the House of Representatives has reached 11 percent or an increase compared with 9 percent in previous General Election. improvement of recruitment process until departure. To protect Indonesian workers. and the Regional Houses of representatives has given opportunity for women to participate more actively in political sector. by establishing special working unit to handle credit for small and medium enterprises empowerment of the real sector of businesswomen.8 percent. Women's role in economic development showed the increase of women's work participation rate (TPAK) from 42. and fight against people trafficking especially women and children.000 villages. in the period of 2001-2004 the Government has conducted some studies concerning implementation of leave for women who deliver babies for women workers in the formal sector. and preparation of bill on Indonesian Workers Placement Abroad. scholarship grant for girl students has decreased the number of drop-out girl students. In executive institution.25 percent in 2003. Law No. women politicians are about 19. a women caucus in parliament has been established to express women issues. 204 .In education development. the Regional Representatives Council.9 percent in 2003.4 percent in 2000 to become 92. protection to women trafficking victims. 187 districts. some efforts have been implemented. mapping of business. especially women workers who work abroad. women in First and Second Echelon posts had increased from 9. potential partnership.83 percent in 2001 to 44. and protections to women as victims of household violence. including women migrant workers. opportunity to continue study for pregnant girl students. and 26 provinces (year of 2003). social insurance for women workers informal sector. the Government has implemented coordination and cooperation with related parties in arranging policy on women worker protection. To support public policy backing up gender mainstreaming. Some programs implemented to increase women empowerment in the economic sector are among others: Family Empowerment Program (PPK) with activities including productive economic business and infrastructures development that have been implemented in 20. In political development. improvement in protections agreement for Indonesian workers in receiving countries.9 percent in 2001 to become 13.81 percent in 2003 (SUSENAS 2001 and BPS 2003).12 of 2003 concerning General Elections to Elect Members of the House of Representatives. In the field of women protection. such as establishment of services of Indonesian workers in receiving countries. The efforts to improve women economic well-being has also involved the banking system. and improve women involvement and awareness to participate in political activities. The data from the National Socio-Economic Survey (SUSENAS) show that the percentage of literate women had increase from 91. In Regional Representatives. and financial relation facility (credit and saving) between businesswomen and banking.
in 2001 the Government together with people has built commitment through Declaration of Joint Commitment of Indonesian Country and People for Eradication for Violence against Women. the government has established the Forum of Gender Equality and Fairness (KKG) in national level. A number of 123 institutional networking of Women Study Centers (PSW) have been established to be able to actively participate in giving inputs to regional governments. To give protection and service to the victims of violence against women. To prevent and cope with the problems of trafficking in women and children. the Government has drawn a Bill on Anti Pornography and Porno Actions. the Government has issued Presidential Decree Number 88 of 2002 on National Action Plan on Eradication of Trafficking in Women and Children and Presidential Decree Number 87 of 2002 on National Action Plan on Eradication of Commercial Sexual Exploitation of Children. To cope with violence against women. the Government also held women detective training to cope with victims of violence against women involving policewoman from 21 Regional Police Commands in Indonesia. including HIV/AIDS. which includes health of new born babies and improvement of breast feeding. which until 2003 stood in 7 provinces. focal points in 37 ministries and nonministerial institutions. the Government has improved policies to expand and revitalize Love Mother Movement Plus. the Government has established One-Stop Crisis Center in some big hospitals in 10 provinces. To institutionalize the gender mainstreaming. The effort was followed by arrangement and implementation of the National Action Plan of Eradication of Violence against Women (RAN PKTP). Nowadays the Bill on Anti-Violence against Women that initiated by the House of Representatives has been passed. Besides. the Government has established some working units dealing with women empowerment. 205 . Since 2002 the efforts were extended by building crisis centers in some districts and 163 Specials Services Rooms in 19 Regional Police and Resort Police in some districts in Indonesia. public education on reproductions health. institutional management and network of the Love Mother Movement. To cope with pornography and porno action.In relation with the effort to improve health. women empowerment institutions in all provinces and its initiative in 235 districts. In the efforts to strengthen regional. It was realized by establishing the Integrated Service Centers of Women Empowerment (P2TP2). and development of gender equality and fairness in the field of reproductions health in family. the Attorney General Office and Indonesian Police Headquarters. and district/city institutions. provincial. People participation in coping with the problems of women and children in refugee sites has proved to be helpful for victims of social conflicts.
to improve physical fitness of the people. vehicle for the process of value transformation of national culture. that is that sports is an instrument of nation's integrity. In general.Youth. 206 . • To improve potential/talented young athletes development. and Drugs Abuse Control Taufik Hidayat. • To support the birth of the Sport Act. mastering the competency of social skills. and human intelligent forming in macro meaning. Sport. and to improve the efforts to foster and guide prospective athletes since the early age. the development of sport is aimed to realize sports policy harmonization in various fields of development. The National Sports Committee of Indonesia (KONI) consists of members from various branches of sport divisions. The XXIXth National Special Conference of KONI in Jakarta in 2004 has declared important pointers through its Work Programs. • To prepare the best Athletes in taking part in the 2004 Olympic Games in Athens. of about 33 sports committee members at the provincial level. the national sports development policy is marked by some priority themes. and self confidence. as follows: • To make sports a means of national cohesion and unity in upholding national values and dignity in international fora. and creativity. the only Indonesian athlete who grabs gold medal in Athens Olympic Games Sports In accordance with the direction of the Guidelines of State Policy and National Development Program 2000-2004.
archery. archery. football. and weight lifting. lawn tennis. • To prepare implementation of the 2004's XVI PON National Sport Games in Palembang. the 2005 First Indoor Asian Games in Bangkok. was established as follow-up action of the anti-doping in sports declaration on March 3-5 2003. the 2005 Solidarity Games in Saudi Arabia. archery. and the 2008's XVII PON in East Kalimantan Province. The LADI. The "Indonesia Bangkit" Program In line with the long-term development series of "Garuda Emas" (Golden Eagle). karate. Central Java. and the 2006 Asian Games Qatar. South Sumatra Province. and boxing. medical doctors and lawyers. namely in DKI Jakarta. football. and some of which are prepared for international level. taekwondo. Training Center for Higher Learning Student Sportsmen (PPLM): These centers are located in seven provinces. beach volley. the 2004 Paralympic Games in Greece. especially in facing some international events namely the 2004 Olympic Games in Athens. diving. sailing. athletics. which consists of professionals. wrestling. the XXIII SEA Games 2005 in the Philippines and the 2006 ASIAN Games in Qatar. Australia. 2004 in Jakarta. and South Sulawesi. and boxing. rowing. Anti-Doping Agency As an effort to keep sportsmanship and values of sports out of bad actions damaging sports images. 207 . athletics. athletics. Denmark. the 2005 Arafura Games 2005 in Darwin. national. namely training center for 16 sports branches for regional. The "Indonesia Bangkit" Program is a short-term program of the Central KONI in preparing Indonesian athletes contingent in some sports branches which has been predicted and evaluated to have potential to win gold medals in the 2004 Olympic Games in Athens. takraw. North Sumatra. the Achievement Development Program of the Central KONI is focused on the successful implementation of the "Indonesia Bangkit" (Indonesia Rises) Program. lawn tennis. The centers are for sports development for regional and national level for athletics. pencak silat (martial arts). The sports branches are: fencing. takraw. wrestling. namely the priority sports development in: badminton. cycling. the 2005 SEA Games in the Philippines. chess. Training Center for Student Sportsmen (PPLP): These centers are located in 30 provinces. the Ministry of National Education has established the Indonesian AntiDoping Agency (LADI) on August 6. namely fencing. East Java. cycling. West Java. and international level. diving. in Copenhagen.• To prepare the best Athletes to the event of the 2006 Asian Games. Special Territory of Yogyakarta. volley ball. table tennis. as obliged by the World Anti-Doping Agency (WADA) established by the Montreal-based (Canada) International Olympic Committee (IOC) in 1999. swimming.
As a coordinator agency. and facing much more serious illicit drugs and organized crime problems then ever before. 17/2002. Non-Government Sector. the NNB is directly under the President of the Republic of Indonesia. In fact. the Government has also revised Law Number 5 of 1997 on Psychotropic Substances and Law Number 22 of 1997 on Narcotics. Law Enforcement. 208 . On the other side. the LADI will socialize the existence of this agency and act as an official agency for the 2004's XVI PON in South Sumatra. the LADI will organize education for medical doctors in monitoring doping application. And for the long term. the most serious aspects has been the rapidly rising incidence of HIV/AIDS among injecting drug users. The facts above. Indonesia is indicated as one of the destinations for illicit drugs and producer of synthetic drugs. do not and will not stop or discourage the Government of Indonesia in continuing to pursue its strong commitment in fighting against drug abuse. and is expected to give firm and comprehensive law enforcement in facing drug problems in the country. within the past five years. BERSAMA has also a special coordination forum in regional and international level."Badan Kerjasama Sosial Usaha Pembinaan Wargatama". at the same time to implement preventive and control measures and activities to prevent and eradicate the abuse of illicit trafficking in drugs through its Task Forces/TF composed of relevant government agencies. There are four TF's Centers of Prevention. As stipulated in Article 1 of Presidential Decision No. with the National Police Chief as the NNB Chairperson. especially in implementation of DRUGS FREE ASEAN in the year of 2015. and Research & Development. known as BERSAMA is the Organization of Indonesia's Focal Point of Non-Government Agencies. treatment facilities. illicit production and trafficking remains one of Indonesia's serious problems and has become a national concern. Drugs Abuse Control The rising trend of drug abuse. BERSAMA is an umbrella of all Indoensian nongovernment organizations/NGOs related or the agencies which have activities in drug abuse prevention. It is supported by 25 government ministries and agencies. rehabilitation centers and guidance & consultation programs. however. The Government focal point in Indonesia is The National Narcotics Board of Indonesia (NNB).For the short term. The NNB has the tasks to formulate and implement policies related to drug demand and supply reduction. Treatment & Rehabilitation.
action plans are focused on schemes of: development and improvement of access to information on natural resources and environments. and improvement of the role of community in natural resources management and environmental preservation. studies on `green gross domestic products". It is realized that pressure against the environment is mounting up chiefly due to varied and different causes and interests. and that the country's economy to be developed on its comparative superiority as a maritime 209 . relevant action plans have been formulated to include the arrangement of natural resources and environments balance sheet. controlling and monitoring natural resources. studies on the application of green tax model. For long-term. Access to Information scheme The scheme is aimed at disseminating complete and comprehensive information on potentiality and productivity of natural resources and environments after being inventoried and assessed and evaluated. making draft of bill on natural resources management. and promotion of the role of communities in managing. conservation. A number of rivers and creeks or inlets particularly at urban areas are being polluted because of waste disposals from industries and households which have not yet been treated well by using modern method and sophisticated technology. institutional management and environmental preservation. value and balance of natural resources and environments. In addressing the problems. enhancement of effective natural resources management. has made short-and long-term action plans and development schemes. the Government. and rehabilitation. resulting in the destruction of coral reefs and other marine biota including fish species. For short-term environmental development.ENVIRONMENT Development in the field of environment as it is envisaged in the 1999-2004 National Development Programs aims to exploit wisely and prudently natural resources for the benefits of the people by improving equitable and sustainable people's welfare in term of improved and healthy quality of environment. High degree of pollution is also happening particularly at big cities due to primarily gas emission from motorized vehicles. hand-in-hand with NGOs concerned with the issue. Almost a similar situation happens at sea and under the sea. Excessive timber cutting and slash-and-burn farming system for instance have been bringing about high degree of forest destruction. protection and control of environments against destruction and pollution. The ideas of the scheme are that natural resources and environments as well as their supporting forces to be managed well and preserved for the benefits of the people's welfare from one generation to another. Reckless and irresponsible disposals of industrial and mining wastes to the sea in many places have already polluted those places. making critical lands enlarge almost uncontrollably. studies on funding scheme through debt-for-nature swap (DNS) and clean development mechanism (CDM). By the scheme the public may have ample access to get information on natural resources and environments in form of spatial data.
economy. data on sea sand at Riau Islands. For 2002. dissemination of 210 . one of the major lacks to intensify the implementation of action plans. which also caters public complains. and the publication of magazine "SERASI" both dealing chiefly with issues on environments. including geological and geophysical maps. inventories on fresh water resources. Related activities worth recording in 2004 included the finding of several places identified as important habitats for protected species.and agrarian state capable of producing superior products as output of every region within this country. a concept of biological variety clearance house mechanism has been composed. environmental geological mapping and land water conservation. at part of the Malacca Strait. have been part of the scheme. The counting of natural resource balance has been conducted by doing experiments on benefits they can offer. making inventories on metal and non metal minerals. inventories of mineral resources have also been done by composing or drawing varied maps. West Kalimantan and East Kalimantan. Bali. In addition. promotion of information system on integrated marine and fish farming developments. West Kalimantan. It included additional inventories of wild animals. Besides doing geological mapping and studies. sea waters. Other activities included doing advanced inventories on mineral resources by systemic ocean geological mapping. Papua. Under the scheme. including those of maritime with its limited infrastructures and facilities as well as accessible data. and arrangements of maps of land water curves as a basis for of socio. and its data are accessible to the public in the provinces of West Java. In 2003. fresh water. survey on marine geology at the Sunda Shelf. The establishment of website. and inventories of coal and peat moss potentialities. the making available information on fertile fishing grounds for fishermen and cooperatives as well as fishing enterprises on regular basis. and South Kalimantan. and minerals. to make all available resources. and arranging balance of mineral and coal resources. In attempts to protect national biological varieties. Central Java. There are also accessible data on evaluation of potentialities of forest resources. and at the seas of Riau. it is sought out to improve information technology. and the implementation of Agenda 21. various environment-related activities were carried out to make among other things data on non-informal mining undertakings and unlicensed mining undertakings. and natural resources spatial management. the 2000 State of Environment Report featured environmental situation and status in Indonesia. data on natural resources and environments were updated. examining South Sumatra and Kutai curves. Southeast Sulawesi. identified properly. Central Kalimantan. data on potentialities of geothermal and renewable energies. As of 2001 a system of management information on environmental impact analysis has been put into operation. composing data base of mineral and coal resources.
Meanwhile lingering unfavorable conditions to be addressed in implementing the scheme are among other things: the public's poor understanding on the importance and beneficial values of marine resources and sea fish species. and geological and geophysical research and development in the field of geological catastrophes or calamities. with the aim of utilizing natural resources in efficient and sustainable way to meet the needs of industries for raw materials. completion of geological and geophysical mappings. In addition some preparation works have been going on for the designation of Kakaban Island in East Kalimantan as area of marine conservation. and the yet-to-be optimum development of cultured fish farming and development of islets. and the Philippines in fish catching. and socialization of policies on geological calamity and potential geological calamity in Indonesia. improvement of volcano monitoring technology. 211 . and control of environmental pollution at marine and coastal ecosystem.125 ha mangrove reforestation program has been carried out at Segara Anakan region. Management Effectiveness Scheme This scheme underlines the urgent need for maintaining the balanced proportion between the utilization and preservation of natural resources and environment. volcano. coal. and regreening at Cikawung and Cimeneg river banks. And improved utilization of natural resources and environment through natural resources conservation and rehabilitation by using environment-friendly technology has been what the scheme does require.000 ha. lackluster law enforcement against offenses occurring in exploiting resources of sea fish. and Banda Island as the world's heritage site. geothermal. solid bitumen. such as those with the BILB of Germany and the CEVA of France. Studies on environments and marine geological calamity at coastal areas and seas have been and are being conducted. In cultivating and managing sea weed. forestry. and mining areas. arrangement of blue print of volcano catastrophic mitigation as the foundation for planning of national volcano mitigation system. and underground waters. unsmooth implementation of spatial management. reforestation areas have been expanded along with recovery of coral reef at several locations. a 1. mining. cooperation with foreign institutions concerned with marine development continues to be maintained and promoted. The Government has also launched campaign scheme for reforestation of national forest and rehabilitation of critical lands covering a total area of 300. and with related organizations in the People's Republic of China. unbalanced proportion of fish stock distribution. forest areas. Thailand.information on potentialities of mineral resources. Under the conservation and rehabilitation scheme. The scheme is also sought out to make conservation areas being protected from any destruction as a consequence of excessive and uncontrolled exploitation. peat moss. In the context of preventing and reducing the area of critical land.
conduct inventory on newly designated marine conservation areas by using marine ecosystem unit approaches. in promoting the preservation of environments. the Ministry of Forestry.In improving and maintaining marine biota. socialization of environment-friendly technology for small-scale industrial undertakings. publication of directives to treat waste of oil and gas products. the maintenance of cooperation between the government institutions concerned with environmental issues and non-government environmental organizations. and designation of geological protected areas and mining areas. Prevention and Control Scheme The scheme of Prevention and Control over environmental destruction and pollution aims to improve the quality of environments in a bid to prevent environmental pollution. and recomposing directives for the management of lakes. provision of soft-loans to a number of companies to encourage them to use environment-friendly technology. provision of designs for small-scale waste water disposal treatment installation rehabilitation. 212 . of hotels and hospitals and many others. development of communal-based management of coastal areas and islets. manuals for the management of land rehabilitation and land conservation. Scheme for Institutional Arrangement and Law Enforcement The main concern of this scheme are the development of environmental institutions. and to recover spoiled environments due to excessive exploitation of natural resources and environment-unfriendly activities of industries and transport. Achievements made under the scheme included the reviews and recomposing of various regulations and bills related to matters of natural resources and environments. the making of master plans for cleaner river program. It underlines the application of indicators enabling the preservation of renewable natural resources to avoid unrecoverable damages. domestic and overseas. promotion of environment-friendly cultural system at damaged green areas through mangrove-fish farming. manuals to handle waste of chemical industries. to make the environment healthy. Attainable achievements made under the scheme have included investment in equipments to support preventive efforts of environmental pollution. the arrangement of legal system and law enforcement to secure. promotion of status for a number of technical executing units under the Directorate for Forest Protection and Nature Conservation. the scheme stresses on gradual transfer of authority from central to regional administrations in managing natural resources and environments. preserve natural resources and environments and protect them from illegal practices or exploitation. to be Natural Resources Conservation Offices and Offices of National Parks. Pursuant to the 2000-2004 National Development Programs. to develop national marine parks and marine conservation areas. clean and fresh. it has been endeavored to rehabilitate damaged coral reefs and implant artificial coral reefs.
forum for ecosystem-based environmental management and many others. as the 1999-2004 Guidelines of State Policy outlines. it has been sought out to involve members of the community in establishing partnership mode at river basins. and defend the unitary state of the Republic of Indonesia against any treat from within and outside by respecting human rights. Initiating systematic and well planned development of the defense and security components have been the arrangement and improvement of all related statutory regulations as the manifestation of the People's Consultative Assembly's Decree No. training and up-grading courses have been organized. Improvement schemes have been taking place at all components of the state defense might. The scheme gives emphasis on the greater utilization of natural resources and environments for the broadest possible benefits to the people without neglecting the preservation of function and balance they should hold. In addition. VIII/MPR/2000 of 2000 on the role of the Indonesian Defense Forces 213 . In empowering members of the communities. and development of state defense and security might which is supported by appropriate facilities. partnership with gold miners at Gunung Pongkor. maintain. (4) expansion and intensification of bilateral cooperation in the field of defense and security in a bid to maintain regional defense and security stability. redefinition. VI/MPR/2000 of 2000 on the separation of the Police from the Indonesian Defense Forces. which is supported by other components to improve state defense. military and police as the main elements. to strengthen the might and capability of defense and security. the documentation of fauna and flora identities per district and municipality. DEFENCE AND SECURITY Policy in the development of defense and security. such as training to prevent and control destruction of mangrove forests. (2) capability enhancement of the people's total defense and security system based on the might composing the society. to protect and guard the public. trainings for cultured mangrove-fish farming to develop a system of communal mangrove preservation. (5) completing separation scheme of the Police from the Indonesian Defense Forces (TNI) and improvement of professionalism of the Police as the state instrument tasked to enforce law and order. (3) the military professionalism improvement. with the defense forces and the police as its core. and to participate actively in maintaining the world's peace and order. Improvement of Communal Role Scheme The scheme aims to improve the role and awareness of parties concerned with prudent and wise management of natural resources and efficient and effective preservation of environment. Decree No. is more directed towards: (1) restructurization of the Indonesian Military pursuant consistently to its new paradigm through reposition.economic evaluation models for natural resources and environment. infrastructures and budget. etc. and reactualization of the role the Military should play as the tool of the state to protect.
and Law No.536 trillion to Rp13.I. and to give the public appropriate protection and services. Law No. 2 of 2002 on the Police of the R. So have basic paradigms of the Indonesian Defense Forces as the mighty pillar in the defense system.721 trillion were mostly allocated to finance the operational units and procurement and maintenance of defense equipment. As of 2004. and domestic security promotion. and of the Police as the element to maintain security and order. namely from Rp11. Of the total budget in 2004. In developing and maintaining defense and security there have been adopted a number of development schemes grouped into main development schemes of state defense. Ever since the reformation era taking place. the TNI has been continuously repositioning its stand in shouldering the task and responsibility to defend the country and the nation. Rp10. they cease their political role. supporting defense. and will have no more appointed representatives sitting at legislative bodies. 3 of 2002 on State Defense. So do the Police to maintain security and order. To manage the schemes defense budget allocation for the year 2004 saw a 15 percent rise compared to that of 2003. State Defense Development Scheme The scheme is designed to build the might of state defense in proportional and gradual way in the context of establishing the mighty President Megawati Soekarnoputri inspects parade during a commemoration of the State Defence anniversary day 214 . With the country's very vast and rough geographical condition under its protection and surveillance while its personnel have to readjust their behavior-and mentality to the new paradigms. public security and order maintenance. but striving to be professional in their respective field and being credible. to enforce law. The Military and the Police do not play their dual-function role (defense-security and social functions) any more. By taking each role as the national defense guard and security guard the TNI and the Police are expected to be able to play a role in maintaining the nation's unity and integrity.266 trillion.and the Police. the country's defense and security system has undergone a substantial transformation.
navy. The Army As the defense might at land. rebels. effective. Besides. efficient. to launch anti-terror operation.061. in addition to maintaining services of aircraft. supporting operations at Maluku and Papua. The country's defense policy covers the developments of system. and preventive operations. while capable of operating through the country's territorial waters as required. and 129. the Navy is developed to have mighty marine equipment and marine corps. as well as aircraft maintenance services to prolong their operational services.963 commissioned officers. communication services night vision goggles (NVG). equipment. the Army has procured transport-combat MI-35 helicopters and personnel transport MI-17 helicopters. and improve the operations of their existing prime aims system to create a complete and credible might. Naval forces. 114. the Navy has procured KAL-12M type warships. In improving its defense power. consisting of 29. and KAL-28M warships. and four landing platform deck (LPD) warships from South Korea. personnel. the Army in 2004 (up to first quarter) had personnel totaling 274. 23. and facilities materialized through development of the army. the Philippines.486 noncommissioned officers. and modern with high quality and mobility so that it can be deployed in a relatively short time to all corners of the country. and air force dimensions. Singapore. and Police supporting operations. and 24. and artilleries.567 commissioned officers. are concentrating their operations around the Malacca Strait to the Natuna Sea. repressive operations. and separatists. It aims to maintain the capabilities and might of the Defense Forces. Naval operations are classified into: the prioritized operations safeguarding the Natuna Islands and the Sangihe-Talaud Islands. it has also pursued to retrofitting combat vehicles. protecting vital objects. combat vehicles. The Navy Commissioned to protect the country's waters.state defense which is professional. consisting of 7.528 lower noncommissioned officers. It also plans to add its might by purchasing four corvettes from the Netherlands.541. 215 . and India. The Government attaches high priority to making the most effective use of defense personnel and equipment to be capable of deterring enemies. Naval military supporting operations to support shifting of naval personnel deployment. The total number of the Navy's personnel up to first quarter of 2004 was 55. and maintaining coordinative patrols with neighboring countries such as Malaysia. selected operations.356 noncommissioned officers. and repowering canon dragging vehicles. To improve its military equipment. deploying intelligent operations and clandestine operations.612 lower noncommissioned officers.
732 consisting of 6. including surveys on and determination of borderlines with Malaysia (at Kalimantan-Sabah border). with Papua New Guinea. 16 radar squadrons. natural resources. 216 . and countries at the Asia-Pacific region in the context of maintaining regional as well as international security stability.548 commissioned officers. Parallel with the organization of state defense. The Indonesian Air Force' might consists of 15 air squadrons. and with Timor Leste. and maintaining international cooperation in the field of defense. and the developed might of the Police. and seven KT-1 trainer aircraft. It is also continuing the repair program of F-16 aircraft. and to improve the capabilities of promoting and utilizing state territory. the Air Force continues to procure new aircraft to enhance air defense including the introduction into service of 16 Hawk 2000 aircraft. seven technical squadrons.313 lower noncommissioned officers and a number of combat and non-combat aircraft as well as other supporting equipment the Indonesian Air Force fulfils various operational roles to protect and secure air defense. it has been always pursuing the improved professionalism and readiness of the police to uncover any case. four Sukhoi (two SU-30 and two SU-27) combat aircraft. and 16 NAS-332 aircraft and three CN-235 KPA aircraft. conducting national surveys and mapping. In maintaining the unity of the Republic. promotion and nurturing awareness of any Indonesian citizen's responsibility to participate actively in state defense have been conducted by empowering social organizations. In improving its might. Scheme of Security and Order Maintenance The main aim of this scheme is to realize the organization of security and order system to enable the system to protect the public from any disorder and disturbances. and overhauls of Puma SA-330 helicopters. Supporting Defense Scheme The scheme is designed to make the use of modern management more professional. six "Special Force" squadrons. three training squadrons.The Air Force With total personnel of 25. and seven maintenance depo squadrons. Under the scheme. 12 Colebri EC-120 trainer helicopters. various activities have taken place. including the ratio between the number of the police personnel and the number of the public to serve. 11. and international military cooperation with members of ASEAN. pursuant to the operative statutory regulations.871 noncommissioned officers and 7. The scheme underlines the importance of good management of human resources. and artificial resources to help the organization of state defense.
671. Papua. motorized vehicles. and in handling domestic security disturbances by deploying all components of the state security might is the main aim of the scheme. The conceptions are on the Police doctrine and ethics.5 tablets and 488 bars were seized. 70 of 2002. In fighting against drugs. the Police established in 2002 the National Drugs Agency with the authorities to formulate policies. aircraft and helicopters. Steps taken under the scheme are to uphold and maintain law enforcement. in addition to tightening the control and upholding discipline of the personnel in doing their jobs as well as to impose reward-andpunishment system. The scheme is also directed towards the creation of a system that promotes cooperation between the Police and the Indonesian Defense Forces as well as related bodies in facing security troubles threatening the unity and integrity of the nation. Marriot Hotel. either at home or abroad. and Maluku. such as communications devices. J. management. strategies on the eradication of drugs trafficking. Some 2. 862. the Police have set up a Security Intelligence Agency tasked to deal with state security and safety and to give input to the State Intelligence Agency that handles any threat from inside and outside.In promoting the Police might seven basic conceptions have been introduced to promote the Police's self-reliance. Domestic Security Development Scheme Improved capability in safeguarding the national legal territory.460 grams of narcotic substance. Kuningan (in front of the Australian Embassy) bloody incidents. Various trainings continue to be organized for the Police personnel. and to hunt down and arrest the doers and masterminds of bomb attacks. to improve their professionalism. personnel and training operation. budget. Under the drugs operations launched during the first quarter of 2004 the Police had succeeded in uncovering 795 cases of illegal use and trafficking of drugs that involved 1. and to carry out programs of preventive actions therapies and law enforcement against drug users and traffickers. It is the priority concern of the Police to maintain and restore security and order in some conflict-torn areas such as in Aceh. including bomb attackers in the Kuta-Bali. It has been always pursued to maintain the operative quality of their rather out-of-date equipment. logistics. and take strict actions against rioters. etc. and on legal affairs and statutory regulations.077 suspects including 14 foreigners. Pursuant to Presidential Decree No. including drugs trafficking. 217 .W.293.
the government has exerted every effort to settle the issue through a peaceful way by holding dialogues and negotiations with the Aceh armed separatist movement. 1 of 2003 on the acceleration of the implementation of Law No. allows ample room to actualize political life and economic growth and others related to the principles of justice and rights of the local people. 28 of 2003 concerning the State of Emergency with the Status of Material Law in the Province of Nanggroe Aceh Darussalam. 21 of 2001 on Special Autonomy Status for Papua constitutes the best compromise for a peaceful. Papua Law No.Security Problems The most serious problems in the field of security the Indonesian Government is currently coping with are the armed separatist movement in parts of the Provinces of Papua and Nanggroe Aceh Darussalam. 45 of 1999 on Formation of the Province of Central Irian Jaya. This military emergency measure has been the last choice after exhausting a series of peace efforts by the government. But neither could halt the intention and action of the Aceh armed separatist movement to secede from the Unitary State of the Republic of Indonesia. in addition to a security restoration operation. or dialogues held abroad. Mimika. The meeting failed to be held. be it through the granting the province with the status of special autonomy. The implementation of the status of martial law has been viewed successful since it has succeeded in reducing room for action of the armed separatist movement. and the Districts of Paniai. there was issued Presidential Instruction No. Substantially the law governs almost all life aspects of the local communities. and terrorism. the Province of West Irian Jaya. modern and civilized life in the Province within the Unitary State of the Republic of Indonesia. on April 25. and granting the majority of Aceh people an improved feeling of security and protection. 2003. Aceh In dealing with the issue of Aceh. Puncak 218 . 2003 in Tokyo. The failure to reach an agreement with the separatist movement led to the issuance of Presidential Instruction No. but then another could be convened on May 18. but only to come to a deadlock. which was properly speaking to be held in Geneve. law enforcement and empowerment of the public administration. In early 2003. The implementation of the status of martial law takes in the form of a concerted approach by carrying out humanitarian operation. Switzerland. concerted approaches in more comprehensive development plans. These included endeavors to hold the Joint Council Meeting (JCM).
as an international terrorist action. The issuance of Law No. In addition. major casualties and indiscriminate destruction. the Indonesian Police deserve to be given thumbs up for their successes to uncover. In their later development the two regulations have been adopted and promulgated as Law No. the government is going to maintain close cooperation with other countries in the fight against terrorism. Aware of the terrorist actions of having always caused horrible consequences. claimed not only hundreds of lives and untold material damage but also brought about negative impacts to either the Bali Island's and Indonesia's tourism industries or the country's economic development. 1 of 2002 concerning Eradication of the Crimes of Terrorism and Government Regulation in lieu of Law No.Jaya. the Indonesian government among other things has issued Government Regulation in lieu of Law No. has been an indication to some extent of the success of the government in coping with anarchies committed by a group of people suspected of having connection with international terrorist networks. who had waged a series of terrors. capture and detain terrorist suspects. including the Bali blasts. 2002. 16 of 2003 (though it was then nullified through a judicial review by the Constitutional Court) showed that the Government and the Indonesian nation have a strong commitment to persistently fight against terrorism. both in bilateral and multilateral framework. This tragedy was noted in the Agenda of the UN Security Council in Resolution No. for instance. 2002. Meanwhile. 15 of 2003 and Law No. 2 of 2002 on the application of Government Regulation in lieu of Law No.W. 1438 dated October 14. in a relatively short time. the government keeps on improving the mechanism of terrorism eradication. Marriott Hotel in Jakarta. and will never surrender. In line with this. 16 of 2003. Now some have even been sentenced to death and life imprisonment. which give strong legal foundation to fight against terrorism. and Sorong. and intensifying early detection efforts and deterrent actions. 15 of 2003 and Law No. Terrorism The tragedy of Bali bombings on October 12. 219 . The trial process of the Bali blasts. For that. The instruction is the policy to improve the management of administrative affairs and public services. there are no other ways then to condemn them and at the same time to fight against and eradicate them. 1 of 2002 on the Bali bombings. not to mention a string of bombings in other sites including the J.
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