IndonesiaToday Vol. X No.03 February 01, 2007ИндонезияСегодня стр. 20-24Contents Domestic Issues 3 Political Issues 3 1. ELECTED STATE OFICIALS CAN'T BE REPLACED ANY TIME: PRESIDENT 3 2. PRESIDENT INSTRUCTS CONTINUATION OF SECURITY OPERATIONS IN POSO 3 3. KALLA CALLS ON PRESS TO REDUCE NEWS WHICH MAY TRIGGER RADICALISM 4 4. PKS WELCOMES CHANGE IN TNI'S DOCTRINE 4 5. WORLD APPRECIATION FOR RI INCREASING, SAYS FOREIGN MINISTER 5 Economic Issues 5 1. AGRICULTURE AND AGRO-INDUSTRY TO BE KEY SECTORS IN DEVELOPING IMT-GT: PRESIDENT SAYS 5 2. INDONESIA'S EXPORTS OF BUILT-UP CARS INCREASE BY 70 PCT 6 3. RO SHOULD TAKE ADVANTAGE OF EU MARKET 6 4. IMF EXECUTIVE DIRECTOR TO VISIT INDONESIA 6 5. FOREIGN INVESTORS BEGIN EYEING RI AS INVESTMENT DESTINATION: BI GOVERNOR 7 6. VP HOPES S KALIMANTAN BECOMES CENTER FOR NATIONAL STEEL INDUSTRY 7 7. RI NOT TO SEEK ANY NEW LOANS FROM IMF 8 8. RI TO CEASE SEEKING FINANCIAL AID THROUGH CGI 8 9. NATIONAL FISHERY PRODUCTION PROJECTED AT 4.9 MILLION TONS IN 2007 9 10. FDI DROPS BY 32.2 PCT IN 2006 9 11. INVESTMENT IN CEMENT INDUSTRY IN 2007 ABOUT US$1.4 BILLION 9 Social and Cultural Issues 10 1. PRESIDENT: CAMPAIGNS AGAINST BIRD FLU NOT ONLY TO PROTECT TOURISM, TRADE 10 2. RESCUE WORKERS FIND 27 FRAGMENTS BELIEVED PARTS OF MISSING ADAM AIR PLANE 10 3. UNITED STATES HELPS BRING CLEAN WATER TO FAMILIES IN INDONESIA 11 4. OVER 9,000 SMALL ISLANDS IN INDONESIA HAVE NO NAMES 12 5. GOVT TO RAISE RETAIL PRICES OF CIGARETTES: OFFICIAL 12 6. BALI GLOBAL FORUM TO BE HELD ON JANUARY 21-23 12 7. RI TOURISM UNAFFECTED BY BIRD FLU CASES: MINISTER 13 8. BALI HOPES TO ATTRACT 1.6 MILLION FOREIGN TOURISTS IN 2007 13 9. RI TO TAKE PART IN TOURISM WEEK IN SPAIN 13Regional/International Issues 14 1. INDONESIA TAKES PART IN NORWAY'S GREATEST TOURISM BOURSE 14 2. RI, BRAZIL EXPLORING COOPERATION IN FORESTRY 14 3. INDONESIA, QATAR TO SET UP JOINT INVESTMENT FUND 14 4. PRESIDENT: RI STIL CONCERNED ABOUT SITUATION IN PALESTINE, LEBANON 15 5. GLOBAL FORUM ENDS WITH ADOPTION OF 'SPIRIT OF BALI' DECLARATION 15 6. US GOVT TO ESTABLISH COOPERATION WITH PAPUA 16 7. RI TO STRIVE FOR IMPROVEMENTS IN REGIONAL COOPERATION 16 8. US PROVIDES US$15 BILLION TO FIGHT HIV/AIDS 16 9. RI READY TO PARTCIPATE IN UN MISSION IN NEPAL 17 10. PRESIDENT WANTS MORE INTENSIVE ECONOMIC, TRADE RELATIONS WITH LAOS 17 11. RI FOREIGN MINISTER TO VISIT LEBANON, BRITAIN, SYRIA IN FEBRUARY 18 12. FOREIGN MINISTER ATTENDS RI-UK PARTNERSHIP FORUM IN LONDON 18 13. YUDHOYONO, MUSHARRAF TO DISCUSS MIDDLE EAST CONFLICTS IN JAKARTA 19 Published by Indonesian Embassy in Kyiv, UkraineNagornaya str, 27 “B”, Kyiv 04107Tel. 206 54 46, 489 7633 Fax 206 54 40^ Domestic Issues Political Issues ELECTED STATE OFICIALS CAN'T BE REPLACED ANY TIME: PRESIDENT Jakarta - President Susilo Bambang Yudhoyono here Saturday (Jan 20) warned groups in the community that were critical of the government to desist from arbitrarily demanding the replacement of public office holders any time they want, especially state officials who had been directly appointed by the people through a general election. "A district head elected by the people should not be changed every year. The same applies to governors. And also to those in office at national level (president and vice president)," the President said at a meeting with Star Reform Party (PBR) executive board members. Yudhoyono was commenting on recent public activities launched by certain groups to express their dissatisfaction about the government's performance. One of those activities was a demonstration led by Hariman Siregar, a key figure in the 1974 "Malari" riots, which called for the revocation of President Susilo Bambang Yudhyoyono's and Vice President Jusuf Kalla's mandate. With reference to the Hariman Siregar-led demonstration, the president said he had received support from many elements in the community who had contacted him by telephone, cellular text messages and letters urging him to respond to the rally. "The point is not whether I am afraid or not. But if I react to every expression of discontent , the situation will become more complicated and precarious," Yudhoyono said. He said government officials, especially those who had been elected by the people through general or regional elections, should learn to restrain themselves (in reacting to manifestations of public discontent) so as not to worsen the situation. The president made the statements in the presence of PBR chairman Bursah Zarnubi and Transportation Minister Hatta Radjasa. Earlier, at a function to mark Islamic New Year, 1 Hegira (Muharram) 1428-H in the Istiqlal mosque here, the president said the people should not bemoan or complain about the situation or blame one another in the face of the problems in daily life including the occurrence of natural disasters. "We should not bemoan and complain about the situation or blame one another," he said when attending the function in the company of First Lady Ani Yudhoyono. He said Moslems in particular and Indonesian people in general should keep in mind that God Almighty would not help them if they themselves did nothing to change their own fate.^ PRESIDENT INSTRUCTS CONTINUATION OF SECURITY OPERATIONS IN POSO Jakarta - President Susilo Bambang Yudhoyono has instructed the continuation of security operations in Poso, Central Sulawesi, to search for and arrest perpetrators of criminal and terrorist acts without exposing the local community to negative excesses, a senior cabinet minister said. "The President wants the operations to uphold the law in Poso to be continued because they are inherent in the role, functions and tasks of the law enforcing agencies," Coordinating Minister for Political, Legal and Security Affairs Widodo A. Sutjipto said following a limited cabinet session led by the President at the presidential office here Thursday (Jan 25) . He said the President had also asked that the local people be familiarized with and given explanations about the purpose of the police operations which was the capture of perpetrators of criminal and terrorist acts. To ensure the effectiveness of the operations, the President had also called for good synchronization and coordination among the security agencies involved, Widodo said. In conducting the operations, the law enforcing agencies concerned were also expected to prevent excesses by upholding the principles of accountability, sense of proportion, professionalism and paying due heed to the required procedures, Widodo said in the presence of State Intelligence Agency (BIN) Chief Syamsir Siregar and National Police Deputy Chief Makbul Padmanegara. About reports that many firearms were to be found in the local community in Poso, the minister said they were probably remainders of arsenals used in the past communal conflict in Ambon, Maluku province, where the local Mobile Brigade headquarters was broken into some time ago. Earlier this week, police in Poso exchanged fire with a group of armed civilians in the former's efforts to hunt down 29 men wanted for criminal and terrorist acts committed since 2004. Twelve people including a police officer were killed in the gun battle which created a tense atmoshere and a temporary stanstill in the local people's activities.^ KALLA CALLS ON PRESS TO REDUCE NEWS WHICH MAY TRIGGER RADICALISM Denpasar, Bali - Vice President Muhammad Jusuf Kalla called on the press to reduce the publication of news which might trigger radicalism and contribute to bringing about peace in the world. "A journalist's pen is much sharper than a soldier's bayonet, and thus the media plays a strategic role in creating peace," he said here on Sunday (Jan 21) when opening the Bali Global Forum. Addressing 300 participants from 30 countries, Kalla said the impact of news broadcasts or coverage as well as short-message-services could be much stronger than the capabilities of a tank. The mass media and electronic coverage give a strong impact on creating peace, he said, adding that the press should be able to encourage the establishment of peace and dialogue among people of different religious creeds. State Minister for Communications and Information Sofyan A. Djalil said the meeting organized jointly by the Indonesian government and the United Nations Organization for Education, Science and Culture (UNESCO) is aimed at identifying practical parameters that might benefit both the mass media and means of information and communications. This was meant to gain free access to information, the ability to use the mass media and the means of information and communications in bringing about peace, he added. The current era of technology and information provides chances to find practical ways to use the means of communications and information in expressing a statement in the creation of peace. Indonesia is using this opportunity to promote tourism and culture through the "Bali Landscape" in the hope for inclusion in the World Cultural Heritage, Sofyan said. Some international panelists are scheduled to deliver lectures at the meeting held from January 20 to 23, including former foreign affairs minister Ali Alatas, telecommunications expert and former rector of Bandung Institute of Technology (ITB) Prof Dr Ir Iskandar Alisyahbana, and managing Director of Kompas daily Jakob Oetama. The Bali Global Forum is a follow up of the 22th UNESCO general assembly in Paris on October 10, 2005, and the discussions between the Indonesian delegation and the UNESCO at the 4th Intergovernmental Council for Information of All Programs (IC-IFAP) UNESCO in Paris in March 2006. Several leading international media, including CNN, AlJazeera, international non-governmental organizations, Nobel Prize winners, religious leaders, political journalists and journalists take part in the meeting.^ PKS WELCOMES CHANGE IN TNI'S DOCTRINE Jakarta - The Prosperous Justice Party (PKS) welcomes the change in the Indonesian National Defense Forces (TNI) doctrine from "Catur Darma Eka Karma" to "Tri Darma Eka Karma" and hopes it will make the TNI more professional, a party executive said. Tatang Wahono, PKS associate chairman for political affairs, said here on Thursday (Jan 25) the party welcomed the change in the TNI's doctrine because it meant that the TNI would no longer interfere in the country's social and political affairs. "It is also in line with the political will of the people who want the TNI and the National Police (Polri) to be professional after having played a political role for 32 years during the New Order era," said Untung who is also a member of the PKS faction in the House of Representatives (DPR). TNI Chief Marshal Djoko Suyanto had earlier said the military would this year change its doctrine from Catur Darma Eka Karma to Tri Darma Eka Karma following the separation of Polri from the TNI seven years ago. Speaking to the press after a meeting at the TNI Headquarters in Cilangkap on Wednesday, Djoko said following the change in its doctrine the TNI would concentrate on its national defence mission and conduct itself in accordance with the state's political decisions. "The important thing is that after the doctrine change, the TNI will no longer meddle in social and political affairs like it did in the past. The TNI in the future will play its role in maintaining the sovereignty and integrity of Indonesia," Djoko said. Commenting on the question of servicemen's right to vote in the 2009 general elections, Untung said it should be separated from the TNI's essential role because the voting right belonged to every Indonesian citizen, including TNI personnel. Asked about the TNI's plan to send troops to the restive Central Sulawesi town of Poso to back up the police there, Untung said it was not necessary.^ WORLD APPRECIATION FOR RI INCREASING, SAYS FOREIGN MINISTER London - The world is increasingly appreciating a new and democratic Indonesia with its predominantly moderate Muslim population, Foreign Affairs Minister Hassan Wirajuda said here Tuesday (Jan 30). "The appreciation has been expressed by many international quarters and is enabling Indonesia to pursue its active and independent foreign policy," Wirajuda said at a gathering with members of the Indonesian community in Britain. Present at the function were also Indonesian Ambassador to the United Kingdom and Ireland Marty M. Natalegawa, Kartika Soekarno Puteri, a daughter of the late President Soekarno. Wirajuda is visiting London together with Trade Minister Mari Pangestu and Defense Minister Juwono Sudarsono to attend an Indonesia-UK Partnership Forum and to inaugurate the newly-established Indonesia-UK Islamic Advisory Group (IAG). The Group's formation was agreeed on at a meeting between President Susilo Bambang Yudhoyono and Prime Minister Tony Blair when the latter visited Jakarta in March 2006. Wirajudha said Blair's visit to Indonesia had become a new pillar in Indonesia-UK bilateral relations.^ Economic Issues AGRICULTURE AND AGRO-INDUSTRY TO BE KEY SECTORS IN DEVELOPING IMT-GT: PRESIDENT SAYS Mactan, Philippines - President Susilo Bambang Yudhoyono acting as chairman of the 2nd summit of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) underlined the importance of developing agriculture and agro industry sectors to promote subregional cooperation which was started in 1993. "The success of IMT-GT to increase their peoples' welfare relies on pushing their agriculture and agro-industry sectors as the main factors in the sub-regional cooperation," the president said here Friday (Jan 12). According to him, if the 27 provinces in Indonesia, Malaysia and Thailand included in the cooperation had been connected, trade among them would developed. Tourist visits would increase and the economic life would be more dynamic if backed by better human resources, he added. "In this context, we must standardize our regulations on customs, immigration, quarantine and security," the head of state said. To further push trade relations among the busniess sectors under the cooperation, Yudhoyono said cooperation and coordination among the governments and private sectors were absolutely necessary. "Therefore I am happly to learn that the governors and private sectors from the regions held dialogs in Selangor last September," he said^ INDONESIA'S EXPORTS OF BUILT-UP CARS INCREASE BY 70 PCT Jakarta - Indonesia's exports of completely built-up (CBU) cars in 2006 increased by 70 percent to 30 thousand units from 17 thousand units in 2005, Director General for Telematics and Transportation Equipment Industries, Budi Darmadi, said here on Monday (Jan 15). He said that the increase in the car exports was a consequence of the drastic drop in the domestic market by about 40.9 percent as the result of the fuel oil price hike in October 2005. "There is a blessing in disguise in the drop in the domestic market. Our exports increased and we should continue to maintain this trend," he said. He said that in 2006 the domestic market absorbed 315 thousand units, down compared to 530 thousand units in 2005. The director general expressed optimism that this year the sale of cars at home would reach 400 thousand units and exports 40 thousand units. "Our per capita income has increased while bank interest rates have been lowered. This would boost car sales at home," he added. He said that Indonesia's exports would also increase because exporters had won new markets particularly in African and Latin American countries. The director general also said that Toyota Innova, Avanza, Fortuner and Suzuki APV cars were among Indonesia's primary export cars.^ RO SHOULD TAKE ADVANTAGE OF EU MARKET Jakarta - Indonesia should be able to take advantage of the European Union market potentials for its products particularly after Bulgaria and Romania had been admitted into the regional grouping on January 1, a diplomat said. "The good market potentials are also indicated by the relatively high economic growth in the new members which may eventually boost economic growth in the EU," Indonesian Ambassador to Belgium, Luxembourg and the European Union Nadjib Riphat Kesoema said when contacted by phone from Jakarta on Tuesday (Jan 16). He added that with the increasing growth, their imports from the developing countries, including Indonesia, were expected to increase, provided the country took advantage of the opportunity. The European Union is one of Indonesia`s leading trade partners and in the past few years trade between the two sides had increased significantly. Indonesia enjoyed a surplus in its trade with the EU in 2003 (6.183 billion Euro), in 2004 (5.548 billion Euro) and in 2005 (5.985 billion Euro). Data from the Indonesian Embassy as quoted by Eurostat said Indonesian exports to the European Union in 2003 reached 10.405 billion Euro but declined to 10.39 billion Euro in 2004 and further down to 10.739 billion Euro in 2005.Meanwhile, Indonesia`s imports from the European Union in 2003 reached 4.222 billion Euro, and increased to 4.791 billion Euro in 2004, but declined to 4.754 billion in 2005. Indonesia`s imports from the EU included furniture, footwear, vegetable oils and data processing apparatuses, and its exports to that part of the world include palm oil, coffee, cocoa, tea, rubber, shrimp, tuna and crackers.Indonesia has yet to be one of the European Union`s main trading partners as Indonesian imports were still relatively low, accounting only for 1.0 percent of the total imports from the EU in 2004. However, Indonesia is one of the three countries enjoying customs exemption under the Generalized System of Preference (GSP) granted to 178 developing countries. (*)^ IMF EXECUTIVE DIRECTOR TO VISIT INDONESIA Jakarta - The executive director of the International Monetary Fund (IMF), Rodrigo de Rato, will come to Indonesia on January 23 and 24 to meet with government officials as well as private business people and parliament members. "He wants to hear how Indonesia sees future economic challenges and how the IMF might possibly help," IMF representative in Indonesia, Steven Schwartz, said here on Thursday (Jan 18). He said no talks about new loans were on the agenda. Steven said "we saw that Indonesia has been on the right track. In terms of government policies, their aim and agenda have already been right. Indonesia's economy is now much stronger," he said. Steven said Rodrigo, who would be accompanied by IMF's director of the Asia Pacific Department David Burton, would also discuss regional issues that could affect the economic situation in Asia during the visit. "He would also explain reform efforts that are currently being made in the IMF," he said. This would be the first visit by Rodrigo to Indonesia after visiting tsunami survivors in Aceh in 2004. Besides Indonesia Rodrigo will also visit Japan and China. He will visit Japan on January 21-22 to participate in a symposium sponsored by the Bank of Japan and the Monetary Cooperation Center in Asia. While in Japan he would meet Prime Minister Shinzo Abe. Rodrigo will come to China on January 25-26 to meet its government officials.^ FOREIGN INVESTORS BEGIN EYEING RI AS INVESTMENT DESTINATION: BI GOVERNOR Jakarta - Foreign investors have began eyeing Indonesia as an investment destination besides China, India and Vietnam thanks to its increasingly stable economic and political conditions, Bank Indonesia (BI) Governor Burhanuddin Abdullah said. "I think that the investment climate, political stability and macro economic conditions are getting better," he said on Friday. Foreign investors would only invest in a country which offered more favorable opportunities, he said. "I think Indonesia is one of the nations that must be taken into account thanks to its increasingly stable conditions," he said. "Therefore, I am optimistic that the engine of economic growth in 2007 will be not only the government, the banking sector and exports but also foreign investment," he said. Lack of legal certainty remains a major obstacle to attracting investments into the country. In the January-November period of 2006 foreign investment fell by 45.91 percent from a year earlier. Burhanuddin further said to enable domestic banks to carry out their intermediary function they needed to reduce credit risks and increase credit access. "Why does the intermediary function not work? This is not because of liquidity shortages but because of their failure to reduce credit risks and increase credit access," he said. He said the problem currently facing the banking sector was overhanging liquidity funds which reach more than Rp200 trillion. On the other hand, the real sector was in dire need of funds to run their business.^ VP HOPES S KALIMANTAN BECOMES CENTER FOR NATIONAL STEEL INDUSTRY Banjarmasin, S Kalimantan - Vice President Jusuf Kalla has expressed hope that South Kalimantan which is rich in natural resources could be developed into a national steel industry center. The vice president made the remarks at the anauguration of the Banjar traders forum here on Tuesday (Jan 23). On the occasion, the Vice President asked Irvan Kamal, project manager for the strategic development of PT Krakatau Steel (the state-run steel industry) to expose PT Krakatau Steel expansion plan in South Kalimantan. Irvan said, the first corner stone PT Krakatau Steel (PT KS-II) expansion project is expected to be laid in June 2007. Jusuf Kalla also hoped that the presence of PT KS-II will accelerate the existence of down-stream steel industries conducted by the Banjar traders. The Banjar traders should also be able to produce supporting spareparts (components) for the steel industries. The Vice President urged the Banjar traders to revive, meaning that they must work hard to be become businessmen in the region. Irvan said, his company will complete PT KS-II feasibility study in the middle of February, 2007. One of nine districts in South Kalimantan, including three most potential namely Tanah Bumbu, Kotabaru and Tanah Laut, will be selected to become the plant site of PT KS-II, Irvan said. The district which will be used as the plant site of PT KS-II should have raw material deposit for steel industries for not less than 20 years, Irvan said, adding that the construction for the new steel company would take about 16 months. ^ RI NOT TO SEEK ANY NEW LOANS FROM IMF Jakarta - The Indonesian government will not seek to obtain new loans from the International Monetary Fund (IMF) as the country's balance of payments is in sound condition, Coordinating Minister for Economic Affairs Boediono said here Wednesday (Jan 14). "We have no plan (to ask for new loans from IMF). We only recently repaid all our debts to IMF. There has been no discussion with the president on seeking new loans," he said following a meeting between IMF Managing Director Rodrigo de Rato and President Susilo Bambang Yudhoyono. "Neither have they (IMF) offered any new loans or made any new loan commitment," Boediono said. Speaking on the same occasion, Bank Indonesia (BI) Governor Burhanuddin Abdullah said Indonesia may ask for a new IMF loan if its balance of payments was not sound. "Our balance of payments is in a surplus so we don't need any IMF loan," he said. Boediono said de Rato was visiting Indonesia as a courtesy and to have a chance to get first-hand information on currrent conditions of the Indonesian economy as well as to exchange views on global economic conditions with the Indonesian president. At his meeting with de Rato, Yudhoyono suggested that IMF determine a country's borrowing quota not based on the country's foreign exchange reserves but on its economic openness and regional role. De Rato told Yudhoyono that the latter's idea would be taken into account when the financial lender determines a country's borrowing quota. The IMF official also said what the Indonesian government had done so far had created stability in the macro-economic sector. He hoped Indonesia would further focus its economic growth on capacity building. Finance Minister Sri Mulyani Indrawati and National Development Planning Minister Paskah Suzetta were also present at the meeting. ^ RI TO CEASE SEEKING FINANCIAL AID THROUGH CGI Jakarta - President Susilo Bambang Yudhoyono said here Wednesday (Jan 24) Indonesia would cease to seek financial assistance through the Consultative Group on Indonesia (CGI) this year as it no longer needed the aid. "I think it is necessary to terminate the CGI forum this year. I hereby state we no longer need the CGI," the president told newsmen on the premises of the presidential palace. He said Indonesia had taken the decision because it was now able to overcome its foreign debt problems without the involvement of CGI. "It is important for us to be more independent and to develop our independence in the planning and implementation of development," the president said. The CGI was established by the Indonesian government and the World Bank to coordinate the provision of financial assistance from donor countries to Indonesia. He said with the dissolution of the CGI, Indonesia had to cautiously and properly draw up its development budgets in order not to reduce the quality of its planning and development. Asked about his meeting with IMF (International Monetary Fund) Executive Director Rodrigo de Rato, the president said the IMF executive had not come to Indonesia to offer new loans. "The government is no longer thinking of obtaining loans from the IMF and other institutions," he said. "We have to start reducing our external loans to make our budget more healthy and to bring our debt-to-GDP (Gross Domestic Product) ratio back to the normal level," he said. Established in 1992, the CGI is a consortium of countries and institutions providing loans to Indonesia. It was formed to replace the Inter-Governmental Group on Indonesia (IGGI). CGI membership is made up of 30 bilateral and multilateral creditors, including the World Bank, the Asian Development Bank, the International Monetary Fund and industrialized countries such as Japan, the United States and the United Kingdom. It also includes Australia, Austria, Canada, Denmark, Finland, France, Germany, Italy, , South Korea, the Netherlands, New Zealand, Norway, Spain, Sweden and Switzeland. Other international lending orgnizations in CGI are the Asian Development Bank, the European Investment, the European Commission, the International Finance Corporation, the International Fund for Agricultural Development, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the Nordic Investment Bank, the Organization for Economic Cooperation & Development, the Saudi Fund for Development, the United Nations Children's Fund and the United Nations Development Program.^ NATIONAL FISHERY PRODUCTION PROJECTED AT 4.9 MILLION TONS IN 2007 Jakarta - The Indonesian Ministry of Fishery and Marine Resources has projected the national fishery production to reach 4.9 million tons, a 3.6 pct increase compared to that in last year's corresponding period, a spokesman said. Husni Mangga Barani, director general at the ministry said here Wednesday (Jan 24) that the marine and fishery products contributed 4.63 million tons and inland fishery products 305,650 tons. Though the increase in fuel oil prices in October 2006 was still the main problem in the sector, provisional statistics in 2006 still showed an upward trend of the national fishery production, he added. "Therefore we still project the national fishery production in 2007 to reach 4.9 million tons," he said. Husni also said the 2006 national fishery production was expected to reach 4.76 million tons to which marine fishery production contributes 4.4 million tons and inland fishery products 301,150 tons. The national fishery production in 2006 increased by 1.34 pct compared to that in last year's corresponding period a year reaching 4.70 million tons. In total, the national fishery production including from fish ponds rose by 7.39 million tons or increase by 7.6 pct compared to the same period a year earlier reaching 6.86 million tons. Meanwhile the sector is expected to absorb 2.66 million workers in 2007, an increase by 2.5 pct compared to that in last year's corresponding period reaching 2.60 million tons.^ FDI DROPS BY 32.2 PCT IN 2006 Jakarta - Foreign Direct Investment (FDI) in the January to December 2006 period dropped by 32.9 pct to US$5.977 billion from US$8.915 billion in 2005. Data from the Investment Coordinating Board (BKPM) made available to ANTARA here Wednesday (Jan 24) said that the number of projects in 2006 also declined to 867 from 909 in the same period last year. Meanwhile domestic investment in 2006 dropped by 32.2 pct to Rp20.788 trillion from Rp30.665 trillion in the corresponding period a year earlier. The number of projects dropped by 24.4 pct to 164 from 214. In total, foreign investment had provided jobs for 206,945 workers, higher than those in last year's corresponding period reaching 156.109, according to the data. However, the number of workers absorbed in domestic investment in 2006 dropped to 79.415 from 122.750 in the corresponding period a year earlier. Other parts of the BKPM report showed that FDI approvals rose by 15.1 pct to US$15,624 billion compared to the same period last year (US$13.579 billion), with domestic investment approvals alone increasing by 221.8 pct to Rp 162.767 trillion from Rp50.577 trilllion in the same period last year.^ INVESTMENT IN CEMENT INDUSTRY IN 2007 ABOUT US$1.4 BILLION Banda Aceh, NAD - Total investment in cement industry in 2007 reaches about US$ 1.4 billion, head of the National Investment Coordinating Board (BKPM) Muhammad Lutfi said. Lutfi made the remarks here on Thursday during his visit to the capital city of Nanggroe Aceh Darussalam (NAD), the westernmost province of Indonesia. The investment was among others for the development of Siam Cement plant (PT Semen Jawa) amounting US$100 million with a capacity of one million ton and PT Holcim Indonesia Tbk's palnt in Tuban (East Java) with the designed capacity of 1.5 million tons, he said, adding that PT Semen Gresik would also realise its expansion program. In addition, Orascom and Cemex would also build medium-sized factories respectively in East and South Kalimantan provinces, he said on the sidelines of inauguration of a cement factory of PT Lafarge Semen Andalas Indonesia (SAI) in Lhok Nga village, Aceh Besar district. Tsunami devastated this area in December 2004. According to him, with the investment of US$ 1.4, the designed capacity of national cement production would rise by some 6 million tons from 46 million to 52 million tons. PT Semen Jawa and Orascom have been conducting the Environmental Impact Analysis (Amdal) he said, citing that it will likely take a long time because the Amdal will also cover other aspects including the pollution problem. Lutfi said, in the first semester of 2005, the growth of national cement consumption rose up to 10 percent compared with the previous year, causing price disparity between Indonesia and Malaysia nearly US$30 per ton. "Thus, businessmen come to Indonesia to invest because the cement price is higher," he said. During 2006, however, the cement consumption only rose 1.6 percent compared with the previous year due to the high interest and the decline of the people's purchasing power following the fuel oil price hike. "But, the national cement consumption this year could increase from 8 to 10 percent," he noted. In the meantime, Industry Minister Fahmi Idris expressed hope that new investment for cement industry would come to Indonesia to meet the raising demand. ^ Social and Cultural Issues PRESIDENT: CAMPAIGNS AGAINST BIRD FLU NOT ONLY TO PROTECT TOURISM, TRADE Jakarta - President Susilo Bambang Yudhoyono said on Thursday (Feb 01) the purpose of the government-sponsored campaigns to fight bird flu was not only to protect the tourism and trade sectors but also to ensure the people's safety. "We must have the courage to make sacrifices for the sake of our own safety," the president said after conferring awards on 18 blood donors representing 541 other awardees nation-wide. Mass culling must be conducted to prevent the virus from spreading further, he said. "The bird flu pandemic has not been fully overcome," he noted. The Health Ministry has declared nine of the country's 33 provinces vulnerable to bird flu outbreaks after extraordinary cases had happened there. The President said if the bird flu outbreaks in the country were not handled effectively, the international community would doubt Indonesia's seriousness in fighting the disease, he said. "Consequently, foreign nationals will be afraid to visit Indonesia. The number of tourist arrivals and the volume of our international trade will fall. But the most important thing is how to ensure the safety of our people," he said. The head of state asked all government agencies to work in close cooperation with the people to fight bird flu. "I ask all the people to be aware of the need to prevent further outbreaks of this disease," he said. All governors, district heads and mayors should take an active part in fighting the virus, he said. "I commend the Jakarta governor who is leading a campaign against bird flu in the field. I hope all regional heads will follow his example," he said.^ RESCUE WORKERS FIND 27 FRAGMENTS BELIEVED PARTS OF MISSING ADAM AIR PLANE Makassar - Rescue workers conducting a massive search in Pare Pare waters, Barru district, South Sulawesi, for the missing Adam Air jetliner with 102 people on board have recovered 40 fragments believed to be parts of the ill-fated plane. But Search and Rescue (SAR) Mission Coordinator Air Commodore Eddy Suyanto speaking to newsmen at Hassanuddin airport here on Friday confirmed that some 27 of them were parts of the Boeing 737-400 jetliner gone missing since Monday (Jan 1). The finds include a landing gear cover, a fiber plate, and a rear tray of one of the plane's chairs. He however did not elaborate on the objects. Some of the objects are kept at the center established to search for the plane and have been sorted by the National Commitee for Transportation Safety (KNKT). Earlier, on Wednesday night, a fisherman in Malusetasi district, caught the aircraft's right tail horizontal stabilizer in his fishing net. The airplane's part was found 8 km south of Pare Pare district in South Sulawesi and about 300 meters from the beach. After the finding of the objects, rescue workers intensified their search in the sea and on beaches near Pare-Pare and discovered more parts such as life vests, cabin attendant seats, seat belts, and the aircraft's tail. But the finds had motivated the rescue workers to intensify their efforts at sea, especially in waters off Pare Pare in South Sulawesi and Majene district in West Sulawesi, he said. Other rescue workers who had been combing certain areas in Tana Toraja and Polewali Mandar had been diverted to Pare Pare to help optimize the search there. Meanwhile, a number of navy ships that had been combing waters off Mamuju district in West Sulawesi with support from the USNS Mary Sears from the United States, were also directed to move to Majene waters in Pare Pare to locate the wreckage of the Adam Air Boeing 737-400. The jetliner was on a flight from Surabaya in East Java to Manado in North Sulawesi on New Year's day when it disappeared in bad weather.^ UNITED STATES HELPS BRING CLEAN WATER TO FAMILIES IN INDONESIA Jakarta - The U.S. Agency for International Development (USAID) in partnership with the John Hopkins Center for Communications Programs is supporting the building of a water production, distribution and marketing facility in Indonesia for clean water supply to families, according to an e-mail dispatch of the US Embassy made available to ANTARA here on Friday (Jan . The report said that more than 100 million people in Indonesia have no access to safe drinking water. Contaminated water is a major cause of diseases like diarrhea, the second leading cause of death of less than 5 years old children. Indonesian women used to boil water first before drinking it, but this requires time and costly fuel. Bottled water is an even more expensive alternative. Now, it said, there is an affordable way to make water safe to drink. Air RahMat is a sodium hypochloride water treatment solution contained in an attractive, easy-to-handle bottle. Mixed with a few drops of Air RahMat, makes ordinary water safe to drink. One bottle can meet the needs of a family of five for a month. According to the embassy, the product was developed by the U.S. Center for Disease Control and Prevention. The U.S. Agency for International Development (USAID), in partnership with the John Hopkins Center for Communications Programs, is supporting Air RahMat's production, distribution and marketing. It said that the result of clinical studies show that water treatment solutions like Air RahMat can reduce the number of diarrhea cases by 85 percent. After consistent use in West Timor, for example, self-reported diarrheal episodes fell by nearly 60 percent. More than 2 million households worldwide are using products similar to Air RahMat. At faith-based women's clubs in Sumatra and West Java, USAID and its partners demonstrated how many drops to add to a container of water and how to store the water to keep it safe. A halal certificate from the Indonesian Council of Ulamas, a group of Muslim leaders, is official approval that the product complies withMuslim dietary laws. "In the beginning it has an unusual odor," reports one woman, "but I put it in plastic bottles overnight and it doesn't smell anymore. It is also cheaper than boiling water." Now, the woman and her family has become less likely to suffer from a waterborne diseases, it said.^ OVER 9,000 SMALL ISLANDS IN INDONESIA HAVE NO NAMES Jakarta - Over 9,000 small islands in Indonesia still have no names and the government has a program to give them names later this year, an official said. "The program will be expedited, so all 17,000 islands in Indonesia will have names," Soadjuangon Situmorang, director general of general administra-tion at the Ministry of Home Affairs, said here Friday (Jan 23). The government issued a presidential regulation No. 112/2006 on the National Team for Island Name Standardization to expedite the program. The team chaired by the President comprises the Minister of Defence, Minister of Foreign Affairs, Minister of Fishery and Marine Resources and the Minister of National Education. The secretaries of the team are the Head of the National Survey and Mapping Coordinating Board and the director general. Indonesia has around 17,540 islands, large and small. The country's small islands include Nipah bordering with Singapore, Sekatung with Viet Nam, Dana with Australia, Batek with Timor Leste, Pondo with India and Sebatik with Malaysia.^ GOVT TO RAISE RETAIL PRICES OF CIGARETTES: OFFICIAL Jakarta - The government is planning to increase the retail sale prices (HJE) of cigarettes in March in an effort to achieve its excise tax revenue target of Rp42.03 in 2007, a Finance Ministry official said. Besides, the government was also planning to apply specific tax rates to cigarretes to narrow the gap among the tariff rate categories, the ministry's director general of customs and excise Anwar Suprijadi said here on Tuesday (Jan 16). He said that the revenue target of Rp42.03 trillion from excise taxes in 2007 was unlikely to be achieved unless the retail prices of cigarettes were raised and a specific tax rate was imposed. "With the present production level, state revenues from excise taxes could not reach Rp42.03 trillion if the HJE is not raised and a specific tax rate is not imposed," he said. He said that without an increase in retail prices, the state revenues could only reach Rp39 trillion to Rp40 trillion. Anwar said a specific tax rate, namely a tax rate for each piece of cigarettes could be imposed to narrow the gap among the tariff rate categories of different cigarettes. The gap among the tariff rate categories caused cigarette makers to produce cigarettes with low tax rate categories, he said. "We are introducing specific tax rates which enable small-and medium-scale firms to pay lower cigarette taxes than their larger counterparts do," he added. The government and the House of Representatives have set excise tax revenues in the state budget for 2006 at Rp38.5 trillion. Of the target, only Rp37.9 trillion were realized. For 2007, the government and the House of Representatives set the target at Rp42.03 trillion. "The target was raised from Rp38.5 trillion last year to Rp42.03 trillion in 2007 because the state needs more funds to finance projects such as infrastructure and education," he added. He said that the decision to increase the retail prices of cigarettes and to impose a specific tax rate was not taken all of a sudden. "This decision was taken since the beginning so that businesses would get legal certainty," he added. He said that the government had plan to raise the retail price of cigarettes in March 2007 and to apply the specific rate taxes in June 2007.^ BALI GLOBAL FORUM TO BE HELD ON JANUARY 21-23 DENPASAR - The Indonesian Communication and Information Ministry (Depkominfo) along with the United Nation Educational, Scientific and Cultural Organisation (UNESCO) will hold Bali Global Forum on January 21-23, a statement said. The meeting which will take place in Jimbaran resort area will be opened by President Susilo Bambang Yudhoyono, the statement from a forum committee said here Thursday (Jan 18). The international event will be entitled with The Power of Peace: Using the Tools of Information and Communication. About 400 participants including state leaders and other VVIP guests will take part in the forum which will discuss issues on imbalance information and information technology abuse for terror and war. Malaysian Prime Minister Abdullah Badawi, Nobel Laurieate South Afarican Desmond Tutu, Queen Rania of Jordan, CNN founder Ted Turner, Apple Computer CEO Steve Jobs, Microsoft CEO Bill Gates are scheduled to attend the forum. The international meeting will hopefully encourage media and technology to become partner in creating a peaceful world by promoting justice and humanity.^ RI TOURISM UNAFFECTED BY BIRD FLU CASES: MINISTER Jakarta - The Avian Influenze (bird flu) cases that happened in Indonesia recently have so far not had a negative impact on the country's tourism sector, Culture and Tourism Minister Jero Wacik said here on Thursday (Jan 25). "I still have not seen a decline in the number of tourist arrivals due to the incident of bird flu in the country. I am optimistic, they will not adversely affect the flow of tourists," the minister said on the sidelines of a seminar on state administration management here. The minister said, in an effort to anticipate a decrease in the number of tourist arrivals, his ministry was continuinng to promote the country's tourism , especially by showing Indonesia's conducive situation. He said his ministry had earmarked some Rp100 billion for tourism promotions during 2007. However, not all of the funds would be used for promotion efforts to counter the effects of the bird flu cases because part of the funds would also be used to project the country's wealth of natural resources. "In the bird-flu-motivated promotion efforts, we will say that although the disease exists in Indonesia, the government is tackling the problem seriously," the minister said. The minister pointed out bird flu outbreaks had not only happened in Indonesia but in other countries as well. ^ BALI HOPES TO ATTRACT 1.6 MILLION FOREIGN TOURISTS IN 2007 Denpasar - Bali is hoping to receive 1.6 million foreign tourists and 2.8 million domestic tourists in 2007."We have made various efforts and breakthroughs to improve the tourism industry in Bali. We hope that Bali could become a safe and convenient resort island," an official of Bali provincial administration, Wayan Subagiarta, said here on Thursday (Jan 23).In 2006, a total 1,260,317 foreign tourists and around 1.3 million domestic tourists visited Bali Island.Most of the foreign tourists came from Japan, Korea and Australia."Their average stay duration was nine days and each tourist spent around Rp 801,000 daily at the average," Subagiartha said. ^ RI TO TAKE PART IN TOURISM WEEK IN SPAIN London - Indonesia will take part in a tourism week (FITUR 2007) in Madrid, Spain, to be held on Jan 31 - Feb 4, a spokesman of the Indonesian Embassy in Madrid said on Monday (Jan 30). "Spain is the potential market for the Indonesian tourism industry so that it should be managed seriously," Allen Simarmata said. Spanish King Juan Carlos is expected to open the FITUR 2007 on Wednesday. Simarmata said a total of 12 travel bureaus, tourism and hotel operators would be on the Indonesian Pavilion in the world's second biggest tourism fair after the one held in Berlin. He added Indonesia's participation in the fair would be the seventh of its kind. FITUR 2007 will be participated in by more than 13,000 hotel, tourism and flight operators from 170 countries. The Indonesian Embassy in Madrid has prepared traditional snack for visitors to the stand.^ Regional/International Issues INDONESIA TAKES PART IN NORWAY'S GREATEST TOURISM BOURSE New York - Indonesia is taking part in an Norwegian tourism bourse which is being held in Norge Varemesse town on January 11-14 in a bid to lure more foreign, notably Norwegian tourists to Indonesia, an Indonesian envoy said. The Indonesian participation in the Norway's greatest tourism bourse called Reiselive 2007 was the first of such its kind, Ambassador Retno Marsudi told ANTARA here from Oslo on Saturday. The Indonesian participation in the international tourism bourse would hopefully keep the country from being forgotten by Norwegian people, she said. The Norwegian tourism bourse is being taken part in by about 1,000 participants from 170 countries. India, Japan, Malaysia, and Thailand are among Asian countries participating in the Reiselive 2007 event. Retno said the four Asian countries always took part in the Norwegian tourism bourse. Number of Norwegian tourist that visited Indonesia was recorded at 16,819 in 2005, increasing from 15,226 in 2004 and 15,010 in 2003, she said. The number, however, was far lower compared to number of Norwegian tourist visiting other Southeast Asian countries like Thailand and Malaysia which recorded millions of Norwegian tourists every year, she said. ^ RI, BRAZIL EXPLORING COOPERATION IN FORESTRY Jakarta - Indonesia is exploring the possibility of cooperation with Brazil in forestry, environment and trade of forest products, the Ministry of Forestry said in a press release here on Monday (Jan 15). It said that Forestry Minister MS Kaban had held official meetings recently with three ministers from Brazil, a country believed to have made significant progress in the development of timber estates (HTI). In a meeting with Brazilian Environment Minister Marina Silva, Kaban discussed the development of village community forests, environmental preservation and forest plantations and management. Kaban also held a meeting with Deputy Brazilian Trade and Industry Minister in charge of Development, Industry and Overseas Trade Affairs, Ivan Ramalho. On the occasion, Indonesia and Brazil agreed to cooperate in the development of the pulp and paper industry as the two states constituted the biggest forest producer countries. "Indonesia hopes to become the fifth biggest player in the pulp and paper industry at the end of 2009," the press release said. Indonesia currently ranked ninth in the industry. Therefore, Indonesia invited Brazilian timber estate investors to invest in Indonesia. Indonesia is currently active in raising funds for the development of timber estate and community forest projects. Kaban also met with an expert staff of the Brazilian State Secretary for International Cooperation, Ambassador Raymundo Magno, who represented the Brazilian president. During the meeting, the two sides discussed possible operation in the development of biofuel energy. Brazil has developed ethanol as an alternative energy. Brazil's ethanol production has reached 15-17 billion kilo liters per annum, which represents 25 percent of its total need. The two countries have a good opportunity to build their respective potentials for both of them are rich in ethanol sources such as oil palm, cassava, sugar cane and jatropha plants.^ INDONESIA, QATAR TO SET UP JOINT INVESTMENT FUND Jakarta - Indonesia and Qatar are planning to set up a joint investment fund for equity sharing for which Indonesia will gain 15 percent of capital, while the remaining 85 percent will go to Qatar. "This investment fund aims to support the building of infrastructure projects in Indonesia," Finance Minister Sri Mulyani said after a limited meeting at the vice presidential office here on Thursday (Jan 18). According to her, the joint investment fund of Indonesia and Qatar had been one of the results of the president's visit to the Middle East some time ago. The setting up of the joint investment fund is expected to net funds from the Middle Eastern countries in a bid to build infrastructure projects in Indonesia. Under an agreement, she added, the government of Indonesia will get a 15 percent share, while Qatar the remaining 85 percent. Asked about the total Indonesia has to pay, the minister said she could not yet mention the exact figure, but it may reach Rp15 trillion. It is for that reason that the amount is still being calculated at her office. Earlier, the government confirmed that the infrastructure projects include the building of 1000 kms toll roads in Java, 1000 public apartment buildings and some airports, seaports and power plants. ^ PRESIDENT: RI STIL CONCERNED ABOUT SITUATION IN PALESTINE, LEBANON JAKARTA - President Susilo Bambang Yudhoyono said on Friday (Jan 19) the Indonesian people and government are still concerned about the ongoing conflict in the Middle East, hoping security conditions there will improve soon. "Indonesia is concerned about security conditions in Palestine and Lebanon. Indonesia continues to expect the establishment of an independent and sovereign Palestinian state in the near future," the president said when opening a meeting of the International Forum for Islamist Parliamentarians (IFIP) here. The head of state said the sending of Indonesian troops to join the UN peacekeeping force in southern Lebanon reflected Indonesia's concern about the impact of Israeli aggression against the war-torn country. In his speech at the three-day meeting attended by delegates from 28 countries, the president also touched on what he called "Islamophobia" among western countries. "Islamphobia happens because some people still have a poor knowledge about Islam," he said referring to the publication of a caricature of the Prophet Muhammad in a number of European countries, something which is totally forbidden by Islam. "To deal with the matter, dialogs and cooperation are needed," he said. He further reminded the participants of the civilization of Muslims in the past through their discoveries or inventions in the fields of science, technology, health and culture. However, European nationa later took over the Muslims' role. He said many Muslims in various countries currently were living in poverty or privation. "Therefore, the challenge facing Muslims is how to improve their capacity so they will not be left behind in the era of globalization," he said.^ GLOBAL FORUM ENDS WITH ADOPTION OF 'SPIRIT OF BALI' DECLARATION Denpasar - A three-day Bali Global Forum ended here on Tuesday (Jan 23) with the adoption of a "Spirit of Bali" declaration aimed at creating global peace through the media. Participants of the meeting committed themselves to contributing to global peace through the media and information technology so as to promote mutual understanding and wide ranging dialogs, assistant to UNESCO Director General for Communication and Information Abdul Waheed Khan said. "The world is facing a wide range of challenges in creating peace. For instance, in the past few decades, there have been endless wars, civil wars and escalation of domestic religious and ethnic tensions," Khan said. The participants were worried that a number of internal and bilateral conflicts would lead to poverty and misery, putting peace-building efforts at risk, he said. Only by means of sustainable information and knowledge exchanges through the so-called "freedom of thought by words and thoughts" as laid down in the UNESCO constitution could mutual understanding be promoted, he said. According to the Spirit of Bali declaration, the peace and security built by mankind would increase the influence of the mass media and lead to the emergence of information means, he said. He said the participants had long realized how important it was to exploit communication means to create peace. To create peace, they underscored the need to involve children and youths in the peace-building efforts, he said. The forum which was opened by Vice President Jusuf Kalla on Sunday was attended by hundreds of representatives from 43 countries.^ US GOVT TO ESTABLISH COOPERATION WITH PAPUA Jayapura - The United States will establish cooperation with the Indonesian province of Papua in the fields of government administration, education, health and forestry. US ambassador to Indonesia B Lynn Pascoe told newsmen here on Tuesday (Jan 23) after visiting the region for two days that his government would also help the province deal with HIV/AIDS cases. He said he had come to the province to find out how much the US should give the province and discuss what further aid his government could give to Papua. He said President George W Bush had pledged aid for the development of education when he visited Indonesia in 2003. The aid for improving elementary education in Indonesia totalling US$1.57 million is allocated for 1,500 schools, he said. He said that the most important thing was how to make the fund reach and enjoyed by the people in villages in Papua. ^ RI TO STRIVE FOR IMPROVEMENTS IN REGIONAL COOPERATION Jakarta - The Indonesian delegation to the first Asia-Pacific Economic Cooperation Senior Officials Meeting (APEC SOM I) in Canberra, Australia, is to strive for improvements in regional cooperation to secure the national interest and to optimize APEC's function for the country, an official statement from the Indonesian Embassy in Canberra said on Tuesday (Jan 23). According to the statement, Indonesia this year would assume a role in bilateral and regional management of corruption and tsunami among APEC member countries. Issues such as regional economic integration, fuel oil supply security and APEC reform which were taken up by the leaders of APEC member countries in Hanoi, Vietnam, last year would also be discussed in the ongoing APEC SOM I in Canberra from Jan 22-27. Over the weekend, the APEC members started to consider the sensitive issue of whether to increase the number of their forum's members from 21 to 22 by admitting India. The APEC SOM I in Canberra is the first of a series of meetings to take place in Australia in the run up to an APEC Summit which is to be attended by among others US President George W Bush, Japanese Prime Minister Shinzo Abe and Chinese President Hu Jintao.^ US PROVIDES US$15 BILLION TO FIGHT HIV/AIDS Jayapura - US Ambassador to Indonesia Lynn B Pascoe has said that the US government has provided a fund amounting to US$15 billion to fight HIV/AIDS in a number of countries. The fund was channeled through various organizations in Asia and Africa, Ambassador Pascoe said here on Tuesday (Jan 23). The US government was concerned about the HIV/AIDS infection because it became a human tragedy in the world, he said. Some countries had difficulty in controlling the disease because it could spread easily, he added. During his stay in Jayapura, Ambassador Pascoe visited an HIV/AIDS Counseling and Testing clinic and got first-hand information on HIV/AIDS problems in Papua. Papua Deputy Governor Alex Hesegem, who accompanied the US ambassador in Jayapura, said that the ambassador had promised to help Papua in dealing with HIV/AIDS cases in Indonesia's eastern mostprovince. According to the September 2006 data, some 2,770 people were infected with HIV/AIDS virus in Papua, including 119 patients in Jayapura. Earlier, Ambassador Pascoe said that the United States would establish Cooperation with Papua in the fields of government administration, education, health and forestry. Ambassador Pascoe during his stay in Papua Province, visited Jayapura and Timika, Mimika District, where a US gold and copper mining company PT Freeport Indonesia is located.^ RI READY TO PARTCIPATE IN UN MISSION IN NEPAL New York - Indonesia has expressed its readiness to take part in a UN Political Mission in Nepal (UNMIN) which the UN Security Council has decided to form to help end a 10-year-old conflict between the Nepalese government and the Maoist Communist Party that has killed 130,000 people, a spokesman said. The formation of UNMIN was called for in UN Security Council Resolution 1740 which was passed at a UNSC session on Tuesday, Hasan Kleib, Indonesia's Deputy Permanent Representative to the UN, said. Hasan Kleib told the UNSC meeting Indonesia was prepared to assign six military personnel to join the UNMIN in Nepal. "In fact, the six Indonesian military officers were already sent to Nepal in December last year in anticipation of the issuance of the UNSC resolution on the UNMIN's establishment," he said. Meanwhile, Commodore Putu Adnyana, military adviser to the Indonesian Permanent Representative to the United Nations, said the six Indonesian military officers sent to Nepal were Lt Col Bastari, Major Nugraha, Major Suherman, Major Ferdinal, Major Purnowiranto and Major Hidayat. "The UN asked for the assignment of experts possessing experience in similar missions so we sent one lieutenant colonel and five majors," Putu said. He said the six officers were flown directly from Jakarta to Kathmandu, capital of Nepal, in two batches, namely in December 2006 and on January 8 this year. Their stay and activity in Nepal would be funded by the UN Security Council. Besides Indonesia, other nations the UN's Department of Peacekeeping Operations (DPKO) had selected for participation in UNMIN were Brazil, Switzerland, Guatemala, Uruguay, Jordan, Yemen and Norway. Nepal had been experiencing the bloody conflict since 1996 after the Maoists launched an insurgency against the government. Nepal also plunged into a crisis following a failed cease-fire in 2001 and the cessation of the parliament's functions in 2002. The crisis was worsened by the murder of King Birendra in June, 2001. Birendra was succeeded by his brother, King Gyanendra, who ruled from 2002 to February 2005. On November 2005, an alliance of seven parties in the parliament and the Maoists signed a 12-point agreement to set up an absolute democracy and end the king's powers and on November 21, 2006 the two parties signed a peace agreement to end the conflict in Nepal. The November 21, 2006 agreement was used by the United Nations Security Council as one of its arguments to issue its Resolution 1740. Based on the resolution which was approved unanimously by the Council's 15 members, the UNMIN would be in Nepal for one year and led by a special envoy of the UN Secretary General. The UNSC would withdraw or extend the mission in accordance with a request from the government of Nepal. The UNMIN's mandate was to help the Nepalese government in supervising the ceasefire between the government and the Maoists and providing technical assistance in preparations for the appointment of people's representatives in the country. ^ PRESIDENT WANTS MORE INTENSIVE ECONOMIC, TRADE RELATIONS WITH LAOS Jakarta - President Susilo Bambang Yudhoyono has expressed hope that Indonesia and Laos could intensify their bilateral relations in the economic and trade sectors as there were no more problems in their politcal ties, a presidential spokesman said. "The president hopes the joint commission between Indonesia and Laos can formulate concrete steps to increase bilateral relations (between the two countries), mainly in the fields of economy, investment and trade," presidential spokesman Dino Patti Djalal said on Friday