[Marinir] Indonesia Digest: No.15.07 ; 31-05-'07

[Yap Hong Gie]

INDONESIA DIGEST
Indonesia's complex Issues in a Nutshell
By: Ms. Wuryastuti Sunario
Published by: TBSC-Strategic Communication
No.: 15.07 - Dated: 31 May 2007

We wish all our Buddhist readers a most Serene and Happy Waisak Day

In this issue:
MAIN FEATURE:
INDONESIAN PAPUA: REVITALIZE "LOCAL GENIUS" TO DEVELOP REGION


NEWS AND BACKGROUND:

1.      Tourism and Transportation:
Asia-Pacific Tourism to boom
Imbalance in Indonesia-Singapore Tourist Traffic
Bali received Record Number of Tourists, but Hotel Occupancies are down
Medan's new Kuala Namu International Airport to start operations in 2009
--------------------------------------------------------------------------------------

MAIN FEATURE:

INDONESIAN PAPUA: REVITALIZE "LOCAL GENIUS" TO DEVELOP REGION

To achieve Sustainable Development in Papua, the government must revitalize 
"local genius", asserts Dr. Jannes Johan Karubaba, - hailing from Papua - 
who recently defended his thesis at the University of Indonesia in Jakarta, 
entitled: "Revitalizing Local Environmental Values for Sustainable 
Development"

The panel of examiners included a host of prominent names, led by Purnawan 
Junadi as Head of Post-graduate studies of the University of Indonesia-UI, 
Emil Salim (member of the Advisory Board to the President and former 
Minister for the Environment), Sonny Keraf (former Environment Minister), 
Minister for Mining and Mineral Resources, Purnomo Yusgiantoro, Setyo S 
Moersidik (Head of Environmental Studies at UI), Herman Haeruman (former 
Deputy for Regional Development and Natural Resources at the National 
Planning Board), and Frans Wanggai, Rector of the University of Papua, 
reported Kompas daily.

The study made by Jannes Karubaba had three implications, he said, these 
are:
Firstly, that ecological, social-cultural values and traditional systems 
must become the basis for plans on incrementing the number of provinces or 
districts on the island of Papua. Secondly, wider access must be made in 
order to better understand local values and principles (or what Dr. Quaritch 
Wales called "local genius" - ed), which should not be interpreted as equal 
to narrow concepts of pre-mordialism. Thirdly, this understanding must be 
approached through multi-disciplinary principles involving the sciences of 
ecology, the natural and social environment, and of the more modern man-made 
environment.
Jannes is convinced that through such multi-disciplinary approach, six 
provinces may be established based on ecological and social-cultural 
development. These are Jayapura, Teluk Cenderawasih, Irian Jaya Barat (West 
Papua), Fakfak, South Papua, and Pegunungan Tengah (the Central Mountain 
Region).

"My hope in writing this thesis" says Jannes Karubaba, is that in future, 
ecological and social-cultural values will no longer be neglected in the 
political and economic development of Papua".
In response, Prof. Dr. Emil Salim agreed that thus far, the massive mining 
activities undertaken in Papua have tended to neglect ecological and 
social-cultural values adhered to by the local people, where, in the 
planning process of mining activities, ecological considerations are still 
held as being subordinate.
Sonny Keraf, on his side said that, the Karubaba study, which is based on 
the values adhered to by the local Papua tribes, must be incorporated in 
government's development policies for Papua, in order to provide optimum 
benefits to the people.

Widespread Poverty in the Land of Potential Plenty
Data mentioned by the Province of Papua website clearly show the irony that 
is Papua, namely that, while, on the one hand, the island has huge 
potentials in gold, copper, silver, gas, palm oil, and wood, yet the people 
are still among the poorest in the world, where at least 1 million of its 
population, or 80% of Papua households live below the poverty line. Poorest 
among these are in the districts of Tolikara, where 99.3% are poor, in 
Puncak Jaya (99.62%), and Yakuhimo (99.78%). Papua counts a total of 480,576 
households.

Malnutrition is rife among Papua's more than 300 tribes, as they 
traditionally live from hand to mouth or still live a nomadic life. Food 
stocks are low in each of these districts, in particular in the isolated 
districts of Asmat, Tolikara, Puncak Jaya, and Yahukimo, as these tribes 
that have only very recently emerged from the Stone Age period, live from 
garnering forest products, hunting and gathering, and the planting of sweet 
potatoes. As they live in widely scattered small hamlets, their remote 
locations make it very difficult for the outside world to access them. With 
sparse existing roads, people must often traverse thick forests, high 
mountains, deep valleys, or wide marshlands to distribute additional food 
aid, which must, therefore, depend largely on expensive air transportation.
Health facilities for the population are, therefore, also minimal, counting 
only some 291 doctors, 72 specialists and 14 hospitals on the island.  Of 
the total 19,000 km. of roads on Papua, only some 7,000 km. is asphalted.

On 21 November 2001, when the Province of Papua (formerly named Irian Jaya) 
was granted Special Autonomy, its main purpose was, not only to correct 
human rights violations in the province, but also to correct the imbalance 
in development between Papua and Indonesia's other provinces.  This includes 
improved economic capacity of the province and its people, so that public 
services may be upgraded through increased financial capacity.

However, Governor Suebu conceded that "Papua's local government had not been 
prepared to implement the special autonomy granted to it, where the capacity 
of local government remained weak, oversight was not enforced, 
accountability and transparency were and are still weak, with the result 
that corruption and graft are rife at all levels of government" said  Papua 
Governor Barnabas Suebu in  Makassar recently.

In fact, during the five year since the granting of the Special Autonomy 
status (from 2002-2006), the National Government had provided some Rp10 
trillion to Papua, or equal to 2% of total national general allocation 
grants.
"This amount did not yet include the many other grants given to the 
province. Therefore, considering that there are still so many poor families 
in Papua, this means that these finances that were supposed to lever local 
development has not touched these isolated communities" said Suebu.

The first measure undertaken by Governor Suebu, at his reelection for the 
period of 2006-2011, was to make wholesale reform of the local bureaucracy, 
of regional finances, and improve the capacity of local manpower.  This 
includes restoring the structure of regional spending to that of a pyramid 
with its base on the bottom, rather the previously upside-down position. 
Spending for local apparatus has now been reduced to 27%, down from a hefty 
70% before. While, priority is now focused on village development rather 
than on development of towns.
Meanwhile, Papua statistics mention that total proven deposit in gold and 
copper in mines owned by PT. Freeport Indonesia is estimated at a total 
value of US$ 100 billion, with more than 30 other lodes expected to contain 
similar potential amounts of ores. Another resource is natural gas, which 
scientists estimate can offer a total of 14.4 trillion cubic feet, which is 
available at Yapen and Waropen.
Furthermore, Papua's jungles are rich in resources that may be developed 
into bio-ethanol, to an expected total value of US$ 3.7 billion.

Therefore, based on these rich natural resources, the Papua Provincial 
Government has urged the national government that the province should 
receive a larger share of Freeport taxes. In 2006 Freeport paid out some Rp 
15 trillion in taxes to the National Government, whilst Papua received a 
mere 1% of its total.
Governor Barnabas Suebu plans to accelerate development of Papua and its 
people, by boosting the capacity of the province in infrastructure, 
telecommunications, electricity, media, shipping and trade.

Papua was for decades neglected by Dutch Colonizers, remaining in the Stone 
Age
Formerly known as Irian Jaya, the western part of the island of New Guinea 
which was colonized by the Dutch, was formally restored to the fold of the 
Republic of Indonesia only in August 1969, twenty years after the 
Netherlands ceded sovereignty of the former Dutch East Indies to Indonesia. 
In the fight for Independence, Indonesia claimed as its territory the entire 
territory of the former Dutch East Indies, which included the western part 
of the island of New Guinea. At the formal recognition of the Independence 
of the Republic of Indonesia by the Dutch in December 1949, the Dutch 
withheld Western New Guinea, however, promising that this would subsequently 
be handed over to Indonesia. However, when Indonesia saw that the Dutch kept 
New Guinea as their last stronghold, from where efforts were made to 
disintegrate the unity of the Republic of Indonesia, Indonesia staged 
military confrontations. In 1963 the United Nations handed over the area to 
Indonesian control, and finally through UN supervised representational 
elections, the former Dutch New Guinea officially rejoined Indonesia in 
1969, when its name was changed to Irian Jaya.

For hundreds of years of colonization, Papua had been kept undeveloped by 
the Dutch, leaving its local population to live in the Stone Age culture. 
Indonesian Papua comprises some 300 large and small autonomous tribes, many 
of whom until today still live in isolated mountain hamlets or in untamed 
marshland, with only a small number of coastal towns developed here.  In its 
once impenetrable interior surrounded by dense jungles along the Equator 
loom snow-capped mountain peaks.  Only lately, the modern mining town of 
Timika rises in stark contrast to its very primitive surroundings.
During World War II, General McArthur broke through Japanese military 
defense by staging air attacks on Hollandia (today's Jayapura in Papua), 
after which conquest he made Hollandia the US command base from which point 
he staged military operations against the Japanese.

It was only after the restoration of Papua to Indonesia since 1969 that 
Irian Jaya was gradually opened to the outside world. Later, Indonesia's 
second President, Soeharto, gave copper mining concessions to PT. Freeport, 
which until today remains the largest mining company in Indonesia.
In 2001, the province of Irian Jaya was granted a Special Autonomous 
Province status and was renamed Papua.
(Sources: Kompas daily, Papua website, Periplus Guide to Indonesian New 
Guinea)
 (Tuti Sunario)
--------------------------------------------------------------------------------------


NEWS AND BACKGROUND:

1.            Tourism and Transportation:

Asia-Pacific Tourism to boom

Eighteen Asia Pacific destinations are expected to receive more than US$110 
billion in additional tourism revenue over the next three years, according 
to a new report by the Pacific Asia Travel Association (PATA) as quoted in 
eTN Destination News.

Thailand will be one of the biggest beneficiaries, gaining almost US$13 
billion by 2009.
Other markets likely to receive strong receipts growth over the forecast 
period include Malaysia with close to US$11 billion; Korea (ROK) with US$7 
billion, China (PRC) with US$36 billion; and Macau SAR with US$5 billion. 
These findings are contained in the Asia Pacific Tourism Forecasts 2007-2009 
report which was just released by PATA.

The predicted windfall for Thailand follows on from the results of the 
recent Asia Travel Intentions Survey 2007 which revealed that nine percent 
more travelers were looking at Asia as their next travel destination. One in 
five ranked Thailand as their most likely destination with 84% of Swedish 
respondents most likely to consider the destination for a holiday within the 
next two years.

The survey was jointly conducted by Visa International Asia Pacific (Visa) 
and PATA.

"One of the fast growing regions in the world, Asia Pacific stimulates some 
60% of global tourism demand. Last year, we recorded 350 million 
international inbound trips - that's almost 100 million more arrivals to 
Asia Pacific shores than we saw at the end of the twentieth century, only a 
few years ago", says John Koldowski, Director of PATA's Strategic 
Intelligence Centre.

"And PATA expects this momentum to continue in the medium-term with arrivals 
growth averaging around six cent per year to 2009."

"While inbound flows are expected to continue in the medium-term, Asia 
Pacific shall remain largely an intra-regional bloc. Most of this growth 
will come from other Asia Pacific markets with some of these expected to 
show double digit growth. Hong Kong traffic into Japan is expected to grow 
by 17% over the forecast period; China (PRC) to Singapore by 16%; India to 
China by 15%; and USA and Canada to China each by 13%", he added.

Produced by PATA's Strategic Intelligence Centre, the Asia Pacific Tourism 
Forecasts 2007-2009 is a must-have resource for travel industry 
decision-makers and researchers who need in-depth knowledge to formulate 
winning business strategies.

It is researched and prepared by the noted Professors Lindsay W. Turner and 
Stephen F. Witt, both of whom are internationally recognised as leading 
experts on the econometric modelling and forecasting of tourism demand. For 
more information, visit www.PATA.org/catalogue or email sic at PATA.org.
Meanwhile, Indonesia's tourist arrivals statistics published by the 
Department of Culture and Tourism showed that in 2006 Indonesia received 
some 4.87 million international visitors, who spent a total of US$ 4.45 
billion in the archipelago. With Indonesia's positive growth in the economy 
and more international organizations now convening their conferences in 
Indonesia, the government hopes to reach the target of 6 million arrivals 
contributing US$ 5.5 billion.

In December this year Indonesia expects to receive some 10,000 delegates to 
attend the UN Climate Change Conference in Bali. Environment Minister, 
Rachmat Witoelar said that preparations are well underway, with some 6,500 
hotel rooms already block-booked in the Nusa Dua resort near the Bali 
Convention Centre, while meetings are held with Minister for Transportation. 
Jusman Syafi'I Djamal, to ascertain that sufficient numbers of airline seats 
are available for all delegates to the Climate Change Conference, to and 
from Bali.


Imbalance in Indonesia-Singapore Tourist Traffic

In 2006 some 1.92 million Indonesia visited Singapore, constituting 20% of 
total arrivals to the island republic that reached a total of 9.7 million 
visitors, said Chooi Yee Choong, Regional Director ASEAN of the Singapore 
Tourism Board in Jakarta recently.
Total spending of all tourists to Singapore came to S$ 12.4 billion or US$ 
8.1 billion (at an exchange rate of US$1 = S$ 1.53), reported Media 
Indonesia on line. When Indonesians spent an estimated total 20% of total 
tourist spent here, this would amount to some US$ 1.62 billion spent by 
Indonesians in Singapore.

For the Great Singapore Sale which is held during 25 May - 22 July, 
Singapore targets the visit of an additional 3% - 4% of Indonesian 
shopaholics compared to 2006. During the same period last year, more than 
360,000 Indonesians visited Singapore, said Chooi Yee Choong.

Conversely, according to statistics issued by the Department of Tourism, the 
number of Singaporeans visiting Indonesia in 2005 constituted 28.34% of 
total arrivals of 5 million, making up a total of 1.417 million Singaporeans 
to Indonesia that year. This number is down from 1.6 million Singapore 
arrivals in 2004. In 2005 Singaporeans spent an average of US$ 507.78 per 
visit, contributing a total income of US$ 689.73 to Indonesia's tourism 
receipts.

To improve receipts from Tourism, the government is boosting domestic 
tourism, targeting a total of 218 million this year, with total spending of 
Rp. 79.8 trillion, up from 216.5 million in 2006, with total spending of Rp. 
78.6 trillion. "We urge Indonesians to spend their holidays in Indonesia's 
many and attractive tourist destinations rather than holidaying overseas" 
said Thamrin Bachri, Director General for Marketing of the Department for 
Culture and Tourism in Makasar recently, as reported by Bisnis Indonesia. 
Thamrin, however, conceded that Indonesia's destinations still needed many 
improvements to attract our own domestic tourists to holiday at home.

Bali received Record Number of Tourists, but Hotel Occupancies are down

Balidiscovery.com reports that  total foreign arrivals during the first four 
months of 2007 totaled 472,082 -  an improvement of +38.38% over the same 
four months in 2006 and the strongest start to any year on record

Comparing arrivals by residence for Bali's top four source markets and China 
for the first four months during the past years, it emerged that:

. Japanese arrival figures have recovered completely, improving +57.53% in 
the first for months of 2007 (107,254) as compared to the same period in 
2006. Japanese arrivals during the opening months of 2007 performed at 
near-record levels.

. Australia arrival numbers, while improving +56.65% for January-April 2007 
as compared to 2006, still lag some -35.49% behind the first four months of 
2005.

. Taiwanese arrivals finished the first four months of 2007 +9% better than 
the same period in 2006. A closer look at Taiwan's arrival patterns suggests 
recovery in that market is mirroring the pattern following the 2002 
terrorist attack. All things being equal, expect strong performance ex 
Taiwan in 2007 and 2008, said balidiscovery.com

. South Korea logged in the strongest opening on record for Bali arrivals, 
totaling 38,636 for the current year.

. The People's Republic of China may prove itself to be a "sleeping giant" 
in terms of Bali arrivals. Better flight connections and easier visa access 
saw 22,263 mainland Chinese visitors come to Bali in the first four months 
of 2007, up from a near-zero base just 7 years ago. Expect a 100% 
year-on-year improvement from this market for 2007.


Where have the tourists gone?

Despite these encouraging statistics, recent surveys carried out by the 
Bureau of Statistics (BPS) and Bank Indonesia (BI) in Bali nonetheless 
confirmed that while the quantity of tourists visiting Bali is increasing 
dramatically, the overall quality of those tourists is on a sharp decline, 
wrote balidiscovery.com further.  Increasing competition among accommodation 
providers, which now include hundreds of private villas and new resorts, has 
made the current lack of quality embodied in current arrival numbers even 
more apparent. The survey, conducted in January 2007, showed many starred 
hotels in Bali are running with occupancies at less than 50%, a fact 
underlining the dramatic over-supply of rooms facing the Island.
The BI and BPS surveys also showed that there have been fundamental changes 
in the complexion of inbound tourism to Bali. Much of the growth in arrival 
numbers can be credited to the advent of low-cost carriers serving 
short-haul markets in the Asia-Pacific region bringing visitors who spend 
less and stay for shorter duration than their long-haul counterparts from 
Europe and the Americas.

While the Bali-based survey suggested an average overall length-of-stay 
(LOS) of 9.87 days, this figure is down markedly from the 11.71 day LOS 
recorded just a few years ago. That the actual length of stay may be even 
lower is suggested by the overwhelming preponderance of Bali visitors who 
opted for a 7-day visa-on-arrival as opposed to the next alternative of a 
30-day visa. This is consistent with other results from the survey which 
showed that North Asian and East Asian visitors are staying on the Island 
for only 6.83 days while ASEAN visitors spend an even shorter period of 5.10 
days in Bali.

Overall, 55.20% of all visitors to Bali stay less than 7 days.


Spending Less

While regional airlines championing "Now Everyone Can Fly" have largely 
lived up to that promise, the amount of money left in Bali by regional 
travelers on perhaps their first trip abroad is much less than more seasoned 
travelers of yesteryear. One local hotelier said that requests for three or 
four people sharing a single room are increasingly common and these 
customers leave the hotel to purchase their meals from local street vendors 
or dine on food items purchased from local supermarkets.

Arguably, if there is a bright side to this situation it is the money reaped 
by street vendors lucky enough to snare a share of the "new travelers" and 
the local inns and home-stays attracting the conservative-spending regional 
tourists.

In the end, however, the overall net effect for both Bali's larger 
businesses and small local traders experiencing larger arrival numbers 
comprised of visitors who stay briefly and spend sparsely means that the 
tourism business is still down, reports balidiscovery.com

Medan's new Kuala Namu International Airport to start operations in 2009

New Minister for Communication, Jusman Syafi'i Djamal and Minister for State 
Enterprises, Sofyan Jalil, recently on inspection to Medan, told the press 
that the government plans to accelerate the construction of the new Kuala 
Namu International Airport at Medan, to start operations by September 2009.

Medan urgently needs a larger airports, said the Minister, since the city's 
present Polonia Airport already handles a total of 4 million passengers per 
year, whereas its maximum capacity is a mere 800,000. The location of the 
present airport is also too close to the city.


The new Kuala Namu Airport is designed to be 9 times larger than Polonia. It 
will have a runway of 2,750 meters, its terminal is designed to handle a 
capacity of 8 million passengers per year. Total area of the airport will be 
131,000 square meters, with a terminal building of 90,000 sq. meters, and 
131,000 sq. meter cargo space made available.


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