[Marinir] Indonesia Digest No: 07.06 ; 06 - 03 -'06

[Yap Hong Gie]

INDONESIA DIGEST
Indonesia's complex Issues in a Nutshell
By: Ms. Wuryasuti Sunario
Published by: TBSC-Strategic Communication
No.: 07.06 - Dated: 6 March 2006
In this issue:

MAIN FEATURE:

INDONESIA'S ARCHIPELAGIC SOVEREIGNTY
and FOREIGN OWNERSHIP OF ISLANDS

NEWS AND BACKGROUND:

1.      Transportation and Tourism:
January Tourist arrivals down 15.3%

2.   Health, Culture and the Environment:
Bali remains officially free from Avian Flu

3.      Politics and Security
New Military Commander is Air Marshall Djoko Suyanto
Police reveal: Al-Qaeda financed bombings in Indonesia
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MAIN FEATURE:

INDONESIA'S ARCHIPELAGIC SOVEREIGNTY
and FOREIGN OWNERSHIP OF ISLANDS

Indonesians were rudely awakened from their complacency when in December
2002 the Court of Justice in the Hague ruled that ownership of the
Indonesian claimed border islands of Sipadan and Ligitan in the North
Celebes Sea was granted to Malaysia, thus ending a long-standing dispute of
the islands between the two ASEAN neighbours.
The reason given by the Court was that the islands had been "utilized" by 
Malaysia, since Malaysia had built diving resorts on the islands, whereas, 
Indonesia had done almost nothing.

Thus, ruled the Court that although "the activities relied upon by Malaysia
are modest in number but they are diverse in character and include
legislative, administrative and quasi-judicial acts. They cover a
considerable period of time and show a pattern revealing an intention to
exercise State functions in respect of the two islands in the context of the
administration of a wider range of islands. The Court thus concluded, that
on the basis of the effectivités referred to above, "sovereignty over Pulau
Ligitan and Pulau Sipadan belongs to Malaysia".

Therefore, when last year, Malaysia again claimed the Indonesian island of
Ambalat bordering Malaysia as its own for the exploration of oil, Indonesia
was adamant not to let go of this island as well. The Indonesian Navy
patrolled the area day and night, although this tiny island would disappear
at high tide. Here the Navy planted the Indonesian red and white flag, and
set up a lighthouse. But not without a struggle from Malaysia.
There were times when Navy patrols from Indonesia and Malaysia sailed at
close firing distance from one another, although not a single shot was
fired.

And thus, considering that Indonesia is an archipelagic state comprising
over 17,000 islands, the recognition of border islands are important to
determine the exact boundaries of the state. It was, among others, Prof.
Mochtar Kusumaatmadja, former Foreign Minister, who, earlier, with the
Indonesian delegation under then Prime Minister Juanda to the International
Law on the Seas Convention, fought and won Indonesia's claim as an
archipelagic state, which is now legally recognized in the International
Law. This means that all islands AND seas within her boundaries are within
the sovereignty and jurisdiction of Indonesia. This includes the seas that
would be most convenient to become sea lanes for shipping between the
continents of Asia and Australia, such as the Straits of Macassar, the
Lombok Strait and others.

In 1994 The United Nations endorsed the Convention on the Law of the Seas
that defined an "archipelagic State" as a State that is constituted wholly
by one or more archipelagos and may include other islands. Further, by an
"archipelago" is meant a group of islands, including parts of islands,
interconnecting waters and other natural features which are so closely
interrelated that such islands, waters and other natural features form an
intrinsic geographical, economic and political entity, or which historically
have been regarded as such.
In this context, therefore, Indonesia is the largest archipelagic state in
the world.

Consequently, identifying and recognizing the outermost border islands as
Indonesian territory, thus not only marks the outermost corners of
jurisdiction on Indonesian soil, but also the fact that from these borders
are measured the Economic Zones for exploration within the sea (for oil and
other minerals, or sunken treasures) AND the jurisdiction over the air above
these claimed and recognized territories.

According to the Department for the Seas and Fishery, Indonesia counts
17,504 islands, of which 7,870 islands are named, but a hefty 9,634 are as
yet nameless. Indonesia's total shoreline is 81,000 kilometers, and the
country comprises 5.8 million square kilometers of sea, constituting 63% of
Indonesia's total territory.

There are 93 islands bordering 10 neighbouring countries, with 22 islands
bordering Malaysia, 2 islands bordering Vietnam, 11 bordering the
Philippines, 7 bordering Palau, 23 are on the border with Australia, 10
border Timor Leste, 12 border India, 4 border Singapore, 1 island lies on
the border with Thailand, and 1 with Papua New Guinea. (note: the media
differ one another as to exact numbers)

According to Province, the most (20 islands) are in the province of the Riau
Islands, 18 are in the Moluccas, and 11 in North Sulawesi. While, the Natuna
in the Riau Islands is known to hold the most reserve in oil and gas.
Considering the above, the government has established a Special
Inter-Departmental Board entrusted with the task to register, inhabit and
"utilize" these islands, and to provide these with "effectivités" as
required by International Law.
In this context, therefore, with Regional Autonomy, the national government
is responsible for Defense and Foreign Affairs, whereas, regional
governments are responsible for the management, and effective utilization of
the islands as well as their close supervision.

Lately the government has allocated Special Funds amounting to Rp. 267.7
billion to build modest piers, footpaths, solar energy for electricity,
provision of clean water, construction of small ice factories,
transportation modes and satellite telephones for these border islands.
Construction to start this year.

The case of Pulau Bidadari

And, just when the media was heating up the topic of border islands, out
comes an article that Pulau Bidadari in the Komodo island cluster, as well
as other adjacent islands, have been sold to foreign nationals. Pulau
Bidadari, some ten minutes by speedboat from the town of Labuan Bajo on
Flores, and springboard to the habitat of the prehistoric Komodo dragons,
has apparently been bought by a British national by the name of Ernest Lewan
Dowsky (otherwise also written Lewandowski) , who has now prohibited all
locals from entering the 15 hectares island.

Although the island is not located on the border, Indonesia's legislation,
nonetheless clearly prohibits foreign nationals from owning any piece of
land in Indonesia. Foreigners are only allowed to build or operate on
Indonesian soil. The controversy reached such heights that the issue was
discussed in a meeting of a number of related Cabinet ministers, chaired by
the Coordinating Minister for Politics, Law and Security. Lewan Dowsky, it
seems, had overstayed his immigration visa.

As outcome of the meeting, two Navy patrol boats were sent to the island
and an Army post built just outside the government recognized 5 hectares 
plot.
The Indonesian Chamber of Commerce, however, urged the government
not to blow up the case so as not to scare off investors.

In the latest development in this controversy, District Head of West
Manggarai, Wilfridus Fidelis Pranda confirmed that Ernest Lewan Dowsky,
a British national, possesses a complete and legal building certificate 
(HGB)
issued by the authorities of West Manggarai in the province of East Nusa
Tenggara. The certificate permits the use of an area of 5 hectares (not 15
hectares) on the island of Bidadari, for the construction of a hotel and
restaurant, and is valid for 30 years. The certificate registration number
is no. 17 of the year 2005, issued by the Land Development Office of the
District of West Manggarai dated 9 July 2005.


The land, nonetheless, remains owned by the state, avers Bupati Pranda,
which is in accordance with national legislation, which states that no piece
of Indonesian soil may be
sold to a foreign national.
His statement, however, contradicts statements earlier made by lawyers of
Lewan Dowsky that on 5 June 2000, Dowsky on behalf of PT Reefseekers
Kathernest Lestari had signed and paid for a contract of the sale of land
that was estimated at 15 hectares  (the entire island), owned by one named
Haji Muhammad Yusuf, a well respected local citizen. The total sale price of
Rp. 495 million was paid in installments, with the last installment paid out
on 10 April 2002 to the amount of Rp. 279.5 million.

In fact, the Indonesia Digest believes that if the government is serious in
developing small and border islands for tourism, then first and foremost
needed are clear stipulations in the legislation, rules and regulations,
by-laws and law enforcement as to ownership of land and operations to avoid
multi-interpretation of the law. There should also be clear-cut boundaries
of authority among the many agencies involved, within the national
government, the provincial government, and the Districts. Furthermore,
besides identifying the rights and responsibilities of communities, on the
one hand, the government should also spell out the rights and
responsibilities of investors, on the other. There should also be kept a
proper balance in policies between security measures and territorial
integrity on the one hand, and the creation of a conducive and welcome
environment for investors and tourists, on the other.
The media hype rages on.

(Sources: Kompas, Media Indonesia, Bisnis Indonesia)
(Tuti Sunario)
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NEWS AND BACKGROUND:

1.   Transportation and Tourism:

January Tourist arrivals down 15.3%

The National Statistics Board informed that visitor arrivals to Indonesia in
January reached a mere 295,165 visitors, or a hefty drop of 15.34% compared
to the same month in 2005.Compared to the month before, this is decline of
5.45%. One possible cause for this decline, surmises the Board, is the fear
of avian flu infection that prevents tourists from visiting the country.

Highest drop for January compared to December 2005 was felt in Makassar
(-82%), West Sumatra (-25.7%), Lombok (-18.2%), Manado (-17.7%), Tanjung
Pinang, Riau (13.3%), Batam (-9.3%), and Jakarta airport (-7.6%). However,
Bali registered an improvement of 4.88%. So did Solo, Central Java, which
experienced a significant upswing of 48.6%, reports Bisnis Indonesia.

Foreign visitors stayed 4.32 days in Bali, and 4.08 days in North Sulawesi.

2.      Health, Culture and the Environment.

Bali remains officially free from Avian Flu

Just as this edition of Indonesia Digest was ready to be mailed, we received
the latest issue of Bali Update from balidiscovery.com on the latest
information on Bali's efforts to ward off entry of the dreaded Bird Flu to
this prime resort island, as follows:

. According to the World Health Organization (WHO) Bali remains officially
free of H5N1 or Bird Flu. All Cases to date in Indonesia have been limited
to the island of Java, with the majority of infections occurring in West
Java. Suspected cases of H5N1 infection in a Bali bird population in January
2006 were subsequently shown to be Newcastle Disease.



. Concern and vigilance mounts as it becomes likely that the disease will
eventually touch Bali's shore, with some of the most recent cases discovered
in East Java, just across the straits from Bali.

. In August of 2005 Bali's Governor appointed a select council to monitor,
control and recommend action steps to prevent the spread of Bird Flu to
Bali.

. The importation of live poultry stocks and swine to Bali is specifically
prohibited under instructions issued by the Province's Agricultural
Directorate and further strengthened by a Gubernatorial decree.

. Over the past three months thousands of lives birds have been refused
entry to Bali at the Port of Gilimanuk, the western sea entrance to Bali.

. An effort to smuggle 450 live ducks and 150 chickens into Bali by a
Denpasar poultry dealer, Subali, on March 1, 2006, resulted in the immediate
destruction of all the birds. At last report, both Subali and his truck have
been detained by Bali Police with the dealer having already suffered losses
estimated at Rp. 10 million (approximately US$1,050) for the destroyed
birds, and still facing possible fines of up to Rp. 150 million
(approximately US$15,800) for violating the Governor's decree banning
importation of live birds.

. All affected provinces and adjoining provinces in Indonesia are undergoing
massive vaccination campaigns against Bird Flu, as directed by Indonesia's
Minister of Agriculture.

. The Indonesia government is in the process of obtaining an emergency
supply of 1.5 dosages of Tamiflu to add to current stocks and be available
should the disease be identified as spreading from human to human. The
government is targeting to have 5 million dosages of Tamiflu on hand by
April eventually growing to 12 million dosages shortly thereafter.

. The Government of Indonesia has embarked on a widespread publicity and
education campaign using the electronic media and advising people of the
need to practice good hygiene, keep chicken stocks away from residential
settings, avoid unnecessary contact with poultry and not to use poultry
droppings for fertilizer.

. Indonesian health officials have begun door-to-door sweeps, testing ducks
and chicken for the H5N1 virus. When any bird is found to be infected, all
poultry and domesticated birds are immediately destroyed within a 1
kilometer radius from the location of the infected animal with compensation
paid to the animals' owners.

. Bali's main Bird Park attraction has introduced a program of rigorous
checks and screening protocols to ensure that its bird population remains
virus free.
The Park is also acting as an education center for villagers and local
officials on how to prevent the spread of the Avian Flu. (balidiscovery.com
reports)

3.      Politics and Security

New Military Commander is Air Marshall Djoko Suyanto

For the first time since the 1970's Indonesia has an Armed Forces Commander
from the Air Force. Taking over from outgoing Army General Endriartono
Sutarto, Air Marshall Djoko Suyanto informed the press that he has three
priority agenda items aimed to build a professional and dedicated Indonesian
Armed Forces. These are, improved welfare of soldiers, improved military
equipment according to available budgets, and implement the commitment of
the Military to no longer become engaged in politics.

Firstly, to become professional and dedicated, soldiers must have a decent
livelihood. This the government and Parliament must ensure, especially since
in line with Law no 34 of 2004, the Military may no longer be involved in
business, and the Military can, therefore, no longer have other sources of
income to improve living conditions of its soldiers.

Secondly, most military equipment are not up to par to support defense and
security requirements. Depending on budgets available, Marshall Djoko
Suyanto expects to achieve ideal conditions only within three to six years.
For this purpose, each Force will determine its priorities. Thirdly, avers
the Commander, the Military will not be entrapped in the controversy whether
the Military will start to vote again in the 2009 or 2014 elections. The
Armed Forces will study in depth both the preparedness of its soldiers and
staff, as well as conditions of political parties, before deciding when to
use its voting rights.

Police reveal: Bombings in Indonesia financed by Al Qaeda

For the first time, Indonesian Police disclosed that bomb blasts that
occurred in Indonesia between 2002 and 2005 were financed by Al Qaeda
through their contacts in Jamaah Islamiyah. Head of the Police Cyber Crime
Unit, Petrus Reinhard Golose, told Kompas daily journalist on the sidelines
of the Seminar in Jakarta at end February on the subject of International
Cooperation against Terrorism, - that the Police now possess reliable
information that the bomb blasts in Jakarta and Bali between 2002 and 2005
were financed by the top leadership of Al Qaeda. The funds were almost
always carried by couriers through Thailand and Malaysia, and on to Sumatra,
said Golose, as reported in the Kompas daily of 1 March 2006.

Police investigations revealed that funds were sent a number of times.
The first installment amounting to US$ 30,000 funded the first Bali bombings 
in 2002.
The second, also a couple of thousand dollars, was used to bomb Hotel
Marriot in 2003, and the remainder to bomb the Australian Embassy, both
in Jakarta, in 2004. A third installment was sent to finance the second
bombings in Bali, but the Police are yet unsure as to the exact amount,
while some more funds  were sent through the terrorist network in the
Philippines. In addition, the Indonesian terrorists also received other
funds, but all of these originated from Al Qaeda.

As a matter of fact, a number of Indonesian terrorists, members of the
Jemaah Islamiyah, who had been arrested and tried for involvement in the
Indonesian bombings, had earlier met Osama bin Laden in Afghanistan.
They are known to have signed a kind of pact with Bin Laden before starting 
their terrorist acts in the country.

Golose further informed the Seminar that Police have retrieved documents in
a number of raids. One document explained in detail procedures how to
detonate the three bombs in Bali last October. This document was handwritten
by notorious terrorist leader Malaysian Noordin M. Top, and was found by the
remains of the suicide bomber at Café Manega at Jimbaran. While a second
document showed in most minute detail the entire Bali II operation.
This operation is even more detailed than a military or police operation, 
said
Golose. And, indeed, the bombs in Bali, both in 2002 that killed 202
persons, and 2005 that killed 20 people, were aimed against foreign
tourists, in particular American, Australian and other tourists whose
countries are allied to these two above. Nonetheless, both bombs, as well as
the bombs in Jakarta also killed a large number of Indonesians.

Meanwhile, Bali Pos reports that the first amounts were received by
terrorist Mukhlas (2002 Bali bomber who has been passed the death sentence).
Al-Qaeda first sent the money through Khalid  Syeh Muhammad, who sent it to
Thailand, then from Thailand to Malaysia, and from Malaysia to Indonesia.
All remittances were hand carried by couriers. One installment was sent
through Abdullah Sonata, terrorist in the network, now on trial.

Once in  Indonesia, part of the funds were given to top Malaysian terrorist
Azahari bin Husin, that was used in a number of bombings, while Police found
the remainder of the money on Azahari's body when he was shot dead in
Malang, East Java.  Another part of the funds, continued Golose, was sent to
the Philippines to defray costs for military training of the terrorists in
that country, reports Bali Pos.

For your comments or further inquiries, please e-mail to:
tbsc-strategy at indo.net.id