[Marinir] Indonesia Digest No: 14.06 ; 08 - 05 - '06

[Yap Hong Gie]

NDONESIA DIGEST
Indonesia's complex Issues in a Nutshell
By: Wuryastuti Sunario
Published by: TBSC-Strategic Communication
No.: 14.06 - Dated:  8 May 2006
In this issue:

MAIN FEATURE:

INDONESIA DEFORESTS AT RATE OF SIX FOOTBALL FIELDS PER MINUTE
NEWS AND BACKGROUND:
1.      Tourism and Transportation:
Makassar to host 13th Pasar Wisata : TIME 2006, September 18-21
Central Kalimantan stages Isen Mulang Dayak Festival, May 16 - 19
Sail Indonesia 2006 between Darwin - Kupang in July

2.       Culture and the Environment:
Indonesian Youths win Gold Medals in Physics

3.      The Economy, Trade and Industry:
Entertainment Tax now a Hefty Maximum 75% of Sales
--------------------------------------------------------------

MAIN FEATURE:

INDONESIA DEFORESTS AT RATE OF SIX FOOTBALL FIELDS PER MINUTE

Like the rest of the world, Indonesia commemorated World Earth Day on 22 
April. In the morning, President Yudhoyono and cabinet members planted rare 
trees in Jakarta's dense urban area, instructing all governors and district 
heads to activate the campaign of tree planting throughout the archipelago. 
The president also reminded provinces to "no longer export haze from 
Indonesia's forest fires to our neighbours".

Indonesia's deforestation moves at a rate of six football fields a minute, 
alerts Green Peace

Media Indonesia reports that of the total 192,200,000 hectares of land area 
comprising the Indonesian islands, just over half, or 54.7% is forested. 
Indonesia's forests are among the most biodiverse in the world, and include 
large tracts of tropical rainforests in Kalimantan and Irian Jaya. 
Indonesia has some 3305 known species of amphibians, birds, mammals and 
reptiles according to figures from the World Conservation Monitoring Centre. 
Of these, 31.1% are endemic, meaning that they exist in no other country, 
and 9.9% are threatened. Indonesia is home to at least 29,375 species of 
vascular plants, of which 59.6% are endemic. 4.5% of Indonesia is protected 
under IUCN categories I-V.

However, between 1990-2000 Indonesia was among countries with the fastest 
rate of deforestation, which also included Micronesia, Myanmar and Malaysia. 
Today, however,  Indonesia deforests 7.2. hectares, or equal to the size of 
six football fields every minute. Minister for Forestry, MS Kaban reports 
that total deforested areas have already reached 59.2 million hectares, or 
nearly 50% of Indonesia's erstwhile forests. And, when deforestation 
continues at this rate, then in ten years time Indonesia will have no more 
forests left, warns Minister Kaban.

Deforestation rate on Sumatra is 2%, on Java 0.42% per year, Kalimantan 
0.94% , Sulawesi 1%, and 0.75% in Irian Jaya, or an average of 1.61% for 
total Indonesia.

If between 1985-1998 yearly deforestation covered 1.6 million hectares per 
year, the Media Group estimates that in 2000 this tract has expanded to 
cover 3.8 million hectares, but declined to the (still hefty) present rate 
of spoilage of 2.4 million hectares a year.

Most of the spoilage are the result of destructive logging and illegal 
logging, as well as conversion of forests into human habitat or plantations. 
Erosions, especially on the island of Java and Sumatra are the result of 
forests that had strong trees and deep burrowing roots which could hold the 
soil together, being converted to coffee or palm oil plantations, whose 
plant roots are weaker and remain close to the surface.

It is small wonder, therefore, that between 1998 -2004 more than 623 natural 
disasters occurred in the form of flash floods, erosions and earthquakes 
that have taken too many human lives. Of these, more than 65% are caused by 
the mismanagement of the environment, says Walhi, Indonesia's 
Non-governmental organization for the Environment.

On Java, reports Kompas daily, the situation is exacerbated by the extreme 
density of its population. On a total land area of 13 million hectares that 
is the island of Java, more than 130 million people live on Java and 
adjoining island of Madura. In the year 2000 alone, out of a total 3 million 
hectares of Java forests, more than 56.7% or 567.315 hectares of protected 
forests and nature reserves were spoilt, while production forests without 
any more trees already extend an area of 1.15 million hectares. Because of 
intense population pressure, Java's forests had been transformed into towns, 
industrial estates, agricultural land and plantations, while along with 
these, the practice of illegal logging continues unabated.

In response to accusations that it is because of the mismanagement of the 
environment, that now 81% of Indonesia is prone to natural disasters, 
Minister for the Environment, Rachmat Witular feels that this rate is 
exaggerated. However, the Minister admits that present natural disasters are 
caused by the accumulation of neglect over the years since the 1990's when 
Indonesia concentrated more on economic development rather than on the 
preservation of the environment, thus resulting in the unchecked logging of 
jungles and the opening up of large open mines in the middle of pristine 
forests.

Indeed, deforestation in Indonesia has reached almost 60%, admits Minister 
Witular. And we will need at least 50 years of replanting and conservation 
to restore these forests. For this reason, the government will focus on 
reviewing legislation related to land use, which needs close coordination 
with many government agencies, including with the Department of Public 
Works. Meanwhile, we have tightened regulations on environmental 
requirements for industry. Industry must aim towards zero emission in their 
production and the recycling of waste. Any violation of these will be 
punished.

Meanwhile, Police and the Indonesian Navy are scouring rivers and seas for 
ships suspected of smuggling illegal logs for exports. However, to mete 
culprits with the punishments they deserve still takes a complicated 
process, that will too often result in perpetrators going completely free.

In the latest development, in efforts to conserve existing National Parks, 
Minister of Forestry, MS Kaban has formed 16 organizations tasked with  the 
management of Indonesia's National Parks. These are dedicated for the 
management of the National Parks of Kayan Mentarang in East Kalimantan, the 
Sebangau in Central Kalimantan, the Danau Sentarum in West Kalimantan, 
Bantimurung Bulusaraung Park in South Sulawesi, the Togean in Central 
Sulawesi, the Manupeu Tanadaru in East Nusa  Tenggara, the Laewangi 
Wanggameti also in East Nusatenggara, Aketajawe Lolobata in North Maluku, 
the Lorentz in Papua, the Batang Gadis in North Sumatra, the Tesso Nilo in 
Riau, the Sembilang Park in South Sumatra, the Bukit Dua Belas in Jambi, the 
Gunung Ceremai Park in West Java, the Merapi Merbabu Park in Yogyakarta and 
the Gunung Merbabu National Park in Central Java.

Additionally, Head of the Forestry Information, Achmad Fauzi explained that 
challenges facing forest conservation in Indonesia are complex, and can not 
merely concern the technical management of forests, but must also take into 
account economic pressures from regional administrations and the widening 
economic and social gap among communities surrounding forests.
(Sources: Media Indonesia, Kompas)    (Tuti Sunario)
--------------------------------------------------------------------

NEWS AND BACKGROUND:

1.      Tourism and Transportation:

Makassar hosts Pasar Wisata - TIME 2006
This year's 13th Pasar Wisata, otherwise known as TIME 2006, Indonesia's 
prime contract show, will be staged from 18-21 September in Makassar, South 
Sulawesi with venue the Convention hall of the Clarion Hotel.
This is the first time that TIME is held outside Java. Centrally located 
between West and East Indonesia, Makassar is earmarked to soon become 
Indonesia's next busy airline and trade hub. Makassar will again host Pasar 
Wisata 2007.  Organized by the Indonesia Tourism Promotion Board since 1993 
TIME has continued to be staged year after year despite the many crises and 
setbacks faced by Indonesia's tourism,  since the event has the full support 
of the entire tourism industry in Indonesia.

Last year, when Pasar Wisata was held in Yogyakarta on Java, it was attended 
by 84 buyers from 23 countries and 126 sellers from Indonesia's 20 
provinces. These figures, however, are down when compared to the previous 
year in 2004 when appointments were made between 102 buyers from 28 
countries and 147 sellers from 20 provinces. "We are optimistic that 
Makassar will be able to attract more buyers and sellers to TIME this year 
since Makassar is the gateway to the eastern Indonesia region which has many 
unexplored tourist attractions. Moreover, this year TIME is held back to 
back with the PATA Travel Mart held in Bali, and therefore, hopes to achieve 
greater number of participants", said  Meity Robot, Chairperson of TIME 
Steering Committee.

TIME 2006 has the full support of the Department of Culture and Tourism, the 
South Sulawesi Provincial Government, the South Sulawesi Tourism Board, 
Garuda Indonesia as the Official Carrier, and Gulf Air as Co-official 
Carrier, as well as other international air carriers operating to and from 
Indonesia, namely Singapore Airlines and Cathay Pacific. Also supporting are 
INACA (Indonesia National Air Carriers Association), BARINDO (Board of 
Airline Representatives Indonesia), ASITA (Association of the Indonesian 
Tours and Travel Agencies), PHRI (Indonesia Hotels & Restaurants 
Association, with Event organizer Pacto Convex.
For more information contact email: tiara_hsb at cbn.net.id
or open Website: www.pasar-wisata.com.
Central Kalimantan stages Isen Mulang Dayak Festival, May 19 - 23

Indonesia's new destinations are now also vying for attention. From 19-23 
May 2006, Palangkaraya in Central Kalimantan will stage the "Isen Mulang 
Dayak Festival", offering a variety of traditional Dayak Cultural dances, 
games and competitions such as fireball matches, canoe racing and 
decoration, the Putra Putri Kalteng pageant and competition, and more.

In tandem with the Festival, the Kalimantan Meeting Centre (KMC) is offering 
tours exploring the Kahayan River in special boats, a canoe trip on the 
Rungan River, or a visit to the BOS Orangutan Education Centre, where 
visitors can enjoy jungle lined rivers, orangutans and traditional 
longhouses.

A seven day tour includes a visit to Tanjung Puting orang utan 
rehabilitation centre, see the apes being released into the wild, and go 
bird watching. There is also a cultural tour to Kasongan and to a rattan 
processing centre. Accommodation is at the eco-village of KMC.  For more 
information click: www.kalimantanmeetingcentre.com

·   "Sail Indonesia 2006" yachts race between Darwin and Kupang
Meanwhile, also in the Eastern part of Indonesia, in July 2006 an 
international marine tourism event will be underway between the Australian 
and Indonesian seas.
The Cinta Bahari Indonesia Foundation supported by the Indonesian Department 
of Culture and Tourism will again organize "Sail Indonesia 2006", which it 
has staged since 2001, involving international participants with well-built 
yachts. Participants will sail from Darwin in Australia to Kupang on the 
East Nusatenggara island of Timor as Indonesia's first maritime entry-point 
from Australia. This event traces the path known as the Indonesian Passage, 
bridging the continents of Asia and Australia.
Starting in Darwin on July 22 ,2006, yachts are expected reach Kupang 
harbour, Indonesia's first port of entry between July 25th to 27th, 2006. 
Participants will be in Indonesia for about three months.
To date, Sail Indonesia 2006 has already attracted 150 yachts from some 20 
nations around the world, double last year's participants. The event is 
supported by a number of Indonesian governmental agencies including the 
immigration office and the provincial government, while local communities 
will stage cultural performances, festivities and offer a variety of 
handicrafts for participants to shop.

Indonesia Third fastest growth in Asia Pacific Air Transportation

The International Air Transport Association (IATA) has ranked Indonesia as 
the country with the third highest growth in air transportation in the 
Asia-Pacific region, after China and India, informed Minister for 
Communications, Hatta Rajasa. Indeed, growth in air passenger traffic during 
the past years has consistently shown double digits rate, as a result of 
Indonesia's deregulation policy which allowed the surge in the number of 
budget airlines serving the Indonesian airspace. In addition, Indonesia's 
huge market potential with its total population of 230 million, as well as 
its geographical structure as an archipelago are opportunities for continued 
market growth. IATA reported that last year China's air transportation 
showed highest increase at 25%, followed by India in second, and Indonesia 
in third place.

In response, Secretary General of INACA, the Indonesian Association of 
Commercial Airlines, Tengku Burhanuddin, commented that this high growth 
proves that Indonesia's own home-grown airlines have the capacity to further 
develop this sector. The government should, therefore, support the industry 
and provide the protection it needs, without having to depend on foreign 
airlines to dominate the Indonesian skies.

2.   Culture and the Environment:

Indonesia's Youth win Gold medals in Physics

Indonesia is not only among the top countries in Badminton, but also in 
Physics, so it seems. The Jakarta Post editorial calls these champions in 
science: "the real Indonesian Idols". Two Indonesian high school students 
have succeeded to win gold medals in the Seventh Asian Physics Olympics 
recently held in Almaty, Kazakhstan. One won a silver medal and three 
bronze. With these results, Indonesia came second as overall champion, after 
China.
The six idols are high school students Pangus of Jakarta and Irwan Ade Putra 
of Pekanbaru in Riau, who each won a gold medal; Jonathan Pradana Mailoa of 
Jakarta who won a silver; and Andy Latief of Pamekasan in East Java, who 
earned a bronze medal.
Two junior high school students also won bronze medals: Muhammad Firmansyah 
Kasim of Makassar in South Sulawesi and Rudy Handoko of Medan, North 
Sumatra.

Also deserving applause, says the Jakarta Post, is Yohannes Surya, their 
physics professor who continues to find promising young students from among 
the country's notoriously
uninspiring educational system, and train and guide them in this 
not-so-popular field. Yohannes Surya is also publisher of the science comic 
Kuark, a rare effort to interest young people in the natural sciences.

 If one of the values we want to instill in young people is the value of 
education, continues the Post, then all possible support must be given to 
Yohannes and other educators. And merely making statements that education is 
a national priority is not nearly enough when there is little evidence to 
back this claim. As long as only 9 percent of Indonesia's  national budget 
is allocated to education, and not the 20 percent as mandated in the 
Constitution, then we cannot claim to give the priority the education sector 
deserves, concludes the Jakarta Post editorial.

The Economy, Trade and Industry:

Entertainment Tax now a hefty maximum 75% of Sales

The Indonesian government has raised the maximum allowable tax on 7 types of 
amusement and entertainment, up from the former 35% to a maximum 75%. This 
measure is to allow Regions to receive additional incomes, or to limit 
excessive growth in these entertainments in their areas, said Director 
General on Administration of Regions in the Department of Home Affairs, 
Daeng M. Nazier on Thursday, 4 May, as reported in the Kompas daily. The 
seven that may be slapped these high tax rates are: games in skills, discos, 
bars, night clubs, karaoke, steam baths, massage parlours, fashion shows, 
and beauty contests.

Whereas, on other forms of entertainment outside the above, as well as 
traditional cultural performances still apply the old tax rate of 35%.

General Manager of Hard Rock Café in Jakarta, Yoris Sebastian, expressed 
dismay at the sudden jump in these tax rates. This will cause promoters to 
think twice before staging performances in Indonesia. Indonesian musicians 
and artists will also face problems and will limit holding concerts in the 
regions, Yoris said.

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