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*IBRAHIM ISA'S - SELECTED INDONESIAN NEWS & VIEWS, 10.09. 2007*

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*RI, Russia strike historic deals
TNI reshuffle promotes SBY relative *

*Forest pact a birthday present for SBY *

*State aircraft maker declared bankrupt *

*Supreme Court rejects final Amrozi appeal *

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RI, Russia strike historic deals *

*Urip Hudiono*, The Jakarta Post, Jakarta, 07 SEPT 07

Indonesia and Russia dusted off and greased up their somewhat rusty 
relationship with the signing of a US$1 billion defense deal during 
President Vladimir Putin's visit to Jakarta on Thursday.Russia, intent 
on boosting its diplomatic and military influence in Asia, should be 
able achieve just that through the deal, which will provide credit lines 
for Indonesia to buy Russian-made helicopters, tanks and submarines.

In addition to the military deal, President Susilo Bambang Yudhoyono and 
President Putin also witnessed later in the day the signing of 
agreements for cooperation in the financial sector, financial audits, 
foreign loans, investment protection, terrorism, the environment, sport 
and tourism -- with the latter envisaging a "visa-on-arrival" facility 
for Russian tourists coming to Indonesia.

Speaking to reporters following the signing of the military agreement, 
Yudhoyono said that defense cooperation would help Indonesia modernize 
the arms and military equipment of its land, air and naval forces. The 
arms agreement follows Indonesia's signing of a deal to buy six 
Sukhoi-30 fighter planes at a Moscow airshow last month, and is seen as 
being part of an effort to reduce its dependence on U.S. weaponry. 
Commenting on the deal, Defense Minister Juwono Sudarsono told reporters 
that the military cooperation would allow Indonesia to gain access to a 
broader selection and supply of arms, and would entail simpler 
procurement procedures and savings of up to 40 percent.

"Purchasing arms from Western countries is complicated compared to 
Russia, with many conditions concerning human rights, accountability and 
licensing being attached," he said. Indonesia plans to buy 10 transport 
helicopters, five assault helicopters, 20 amphibious tanks and two 
submarines from Russia, Defense Ministry spokesman Edy Butar Butar had 
said. The arms agreement follows Indonesia's signing of a deal to buy 
six Sukhoi fighter planes at a Moscow airshow last month.

Putin, meanwhile, said that Russia was also interested in expanding 
cooperation in the energy, mining, aviation, telecommunications and 
other technical fields with Indonesia, which he said was "among the most 
dynamic and influential nations in the Asia Pacific region." Adding 
further geopolitical nuance to the new defense deal, Putin referred to 
the common interests in international affairs that he shared with 
Yudhoyono during a closed-door meeting before the signing of the 
agreements. These common interests included Palestine, Iraq, Iran and 
North Korea.

"Russia and Indonesia's approach to global issues are very much alike," 
Putin said. "We both support relations between nations on a equal basis 
and peaceful resolution to conflicts." Both countries, among the worlds' 
most populous, will be members of the United Nation's Security Council 
until next year, with Indonesia holding the chairmanship and Russia 
being a permanent member with veto rights.

Putin's one-day visit follows Yudhoyono's visit in December last year to 
Moscow, and is the first by a Russian leader in almost five decades, 
after Nikita Kruschev came here in 1960 at a time when the relationship 
between Indonesia and the former Soviet Union was at its peak -- 
politically and economically. After the signing of the agreements, Putin 
addressed the Indonesia-Russia business forum and attended a state 
banquet, before heading to the Asia-Pacific Economic Cooperation (APEC) 
summit in Sydney. After Australia, he will fly to the United Arab Emirates.

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TNI reshuffle promotes SBY relative , 07 SEPT 07*

*Ridwan Max Sijabat*, The Jakarta Post, Jakarta

The Indonesian Military (TNI) announced Thursday a major reshuffle which 
included the promotion of President Susilo Bambang Yudhoyono's 
brother-in-law as the new TNI chief of general affairs.

Lt. Gen. Erwin Sudjono, a 1975 graduate of the Armed Forces Academy and 
the husband of First Lady Ani Yudhoyono's older sister, is the current 
commander of the Army's Strategic Reserves Command (Kostrad). His 
elevation to the post of chief of general affairs will see him filling 
the post of Lt. Gen. Endang Suwarya, who has been moved to 
"administrative tasks" at TNI headquarters.

The reshuffle, which was decided at a meeting of the TNI's High-ranking 
Officers Promotion Council (Wanjakti), was presided over by TNI 
commander Air Chief Marshal Djoko Suyanto on Tuesday and involved a 
total of 129 high-ranking officers from all the three forces -- the 
Army, the Navy and the Air Force -- including 32 officers entering 
retirement age.

"The reshuffle has been conducted as part of the routine tour of duty to 
refresh the military organization. It has been held in accordance with 
principles of professionalism and fair proportion among the three 
forces," TNI spokesman Rear Marshal Sagom Tamboen told /The Jakarta 
Post/ after a ceremony that saw the chief of the National Air Defense 
Command Vice Marshal Eris Haryanto pass his position on to his successor 
Rear Marshal Gandjar Wiranegara. Eris was appointed the new Director 
General for Defense Planning and Weaponry at the Defense Ministry.

Some 51 senior officers were transferred to new positions while 
maintaining their military ranks, while 46 others were promoted to 
higher ranks. Other officers affected in the reshuffle include Lt. Gen. 
Cornel Simbolon, currently commander of the Army's Education and 
Training Command, who was appointed as Deputy Army chief. He will 
replace retiring Lt. Gen. Herry Tjahjana.

Maj. Gen. George Toisutta, currently chief of the Siliwangi Regional 
Military Command overseeing West Java and Banten provinces, was promoted 
as the new Kostrad chief. He is expected to get his three-star-general 
rank in the immediate future. Maj. Gen. Bambang Darmono, assistant to 
the TNI chief for General Affairs, was promoted to lead the Army 
Education and Training Center (Kodiklat) in Bandung. He will also get 
his three-star-general rank soon.

Rear Marshal Subandrio, currently assistant to the Air Force chief on 
logistic affairs, was promoted to deputy Air Force chief, while Brig. 
Gen. Sunarko, currently chief of staff of Kostrad's First Division, was 
promoted to commander of the Army's Special Forces (Kopassus). Both 
Subandrio and Sunarko will be awarded a higher rank.

Brig. Gen. Suwarno, currently a senior officer at Kodiklat, was promoted 
to be commander of the Presidential Guard Command, while Brig. Gen. 
Haryadi Sutanto, chief of staff of Central Java's Diponegoro Military 
Command, was promoted to chief of the Trikora Military Command 
overseeing the provinces of Papua and West Papua.

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*Forest pact a birthday present for SBY*

*The Jakarta Post*, Sydney

On the sidelines of the second day of the Asia-Pacific Economic 
Cooperation summit in Sydney, world leaders congratulated President 
Susilo Bambang Yudhoyono on his 58th birthday.

"Happy birthday to you," the Australian Prime Minister John Howard told 
the President, while other leaders applauded. Pictured here are (/left 
to right/) Chilean President Michelle Bachelet, Chinese President Hu 
Jintao, Hong Kong Chief Executive Donald Tsang and Japanese Prime 
Minister Shinzo Abe. Earlier in the morning, Foreign Minister Alexander 
Downer, who was celebrating his 56th birthday on the same day, visited 
the President at his suite in the Four Seasons Hotel. Yudhoyono 
witnessed the signing of a forests partnership to reduce greenhouse gas 
emissions between Downer and his counterpart Hassan Wirayuda.

The deal aims to preserve 70,000 hectares of peat forest in Kalimantan 
and Australia is initially contributing A$30 million ($22 million) to 
the project. It will contribute up to A$100 million in the next four 
years, which includes the planting of up to 100 million trees and the 
re-irrigating of 200,000 hectares of dried peat land. The project aims 
to cut greenhouse gas emmissions by about 700 million tons over 30 
years, Downer said. Annual forest fires in Indonesia are in part caused 
by the burning of the peat lands, contributing to the country's 
greenhouse gas emissions. On Monday morning Yudhoyono is scheduled to 
meet with Indonesian students in Sydney. A lunch is scheduled with 
Howard at the prime minister's residence, Kirribili House, before 
Yudhoyono's departure to Jakarta on a special Garuda flight. 
*JP/Kornelius Purba*

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*State aircraft maker declared bankrupt *

*Tony Hotland and Yuli Tri Suwarni*, The Jakarta Post, Jakarta, Bandung 
- 05 SEPT 07

State-owned aircraft manufacturer PT Dirgantara (PTDI) was on Monday 
declared bankrupt by Indonesia's commercial court system.The court said 
PTDI was on the verge of demise and had several long-overdue debts but 
PTDI said it would appeal to the Supreme Court.

The company said its defense would continue to be that it was still 
operating and had orders from overseas that would see it through to at 
least 2017. The lawsuit against the aircraft manufacturer was filed last 
month by some 6,500 former employers who were dismissed in 2003. They 
were told then the company was being restructured. The employees have 
demanded the company pay their pension funds and retirement allowances 
as per their last salaries. PTDI currently employs 3,200 employees and 
has said it has no further obligations to pay said pension or retirement 
funds, which amount to some Rp 200 billion (US$21.5 million). The 
presiding panel of judges said the evidence against Bandung-based PTDI 
was incriminating.

Presiding judge Andriani Nurdin said a document issued by the Committee 
for Central Labor Disputes (P4P) in January 2004 showed the company had 
been required to pay the compensation. A warning letter issued by the 
then-manpower and transmigration minister in October 2004 obligated PTDI 
to pay the funds within 30 days. The court also saw the company had 
outstanding debts to other creditors including Bank Mandiri at Rp 125 
billion, as well as individuals Supriadi Jasa at Rp 79 million and Neli 
Ratna Sari at Rp 15 million. The court found the company's defense was 
baseless. "The document simply shows estimates that are not supported by 
adequate infrastructure and capital," judge Heru Pramono said, adding 
that there was no reason left to sustain the company. The court 
appointed curator Taufik Nugroho to appraise the company's standing 
assets and Zulfahmi as the overseeing judge. Legal expert Frans H. 
Winarta said a bankruptcy status would force the company to pay back all 
of its debts and compensation to its current employees. If the value of 
its assets is lower than the overall debts, the company should pay 
according to a proportion based on the amount of debt of each creditor, 
Frans said.

"But this cannot be executed until there's been a verdict from the 
Supreme Court." A pioneer in Asia's aviation industry, PTDI was set up 
as PT Industri Pesawat Terbang Nurtanio in 1976 with then-research and 
technology minister BJ Habibie as president director. The 1997 Asian 
financial crisis forced it to restructure and reduce its payroll from 
almost 10,000 to less than 4,000. In Bandung, West Java, company 
spokesmen Rakhendi Priyatna said the company was "starting to pick up 
its pieces with orders coming from in and out of the country". "A 
bankruptcy verdict will lead to complaints and even penalties regarding 
our current production," he said. Workers at the company appeared 
unaffected but said they deplored the verdict. They said they believed 
the company would win the case at the Supreme Court.

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*Supreme Court rejects final Amrozi appeal *

*The Jakarta Post*, Jakarta, 08 09.07 == The Supreme Court announced 
here Friday it has rejected a case review appeal from Amrozi bin 
Nurhasyim, a convicted bomber in the 2002 terrorist attacks on Kuta, 
Bali.Separately, Vice President Jusuf Kalla was quoted by /AP/ as saying 
the ruling "abides by the law" and it was up to the attorney general to 
decide when to carry out the death penalty.

The 2002 bombings are considered one of the most high-profile cases in 
the country's judicial history. 202 people, mostly foreigners, were 
killed in the blasts. The Supreme Court's verdict was issued by a team 
of judges led by Iskandar Kamil. The team also included panel members 
Bahauddin Qoudry and Djoko Sarwoko. The verdict, issued on Aug. 30, 
upheld the death sentence issued by the Denpasar District Court against 
Amrozi in August 2003. The sentence was upheld by the Bali High Court in 
late 2003 and then by the Supreme Court in January 2004. Justice Djoko 
Sarwoko, who is also spokesman for the Supreme Court, said the court had 
decided to reject Amrozi's request for a review of the court's January 
2004 verdict on the grounds that Amrozi had failed to provide any new 
evidence.

In his statement, Amrozi quoted a ruling by the Constitutional Court 
establishing that the 2003 law on antiterrorism could not be applied 
retroactively. Amrozi argued that he could not be convicted under the 
2003 law since the Bali bombing occurred in the previous year. "However, 
the Constitutional Court's verdict does not automatically negate the 
verdicts of the Denpasar District Court and the Bali High Court, both of 
which sentenced him to death," Djoko said as quoted by /Antara/ news 
wire. "The Court's panel of justices decided that the Constitutional 
Court's ruling was not new evidence in the case. It also concluded that 
there had been no mistakes (committed by the Denpasar Court and the Bali 
High Court) in issuing the death sentence," he added.

Djoko said the Supreme Court was aware the 2003 antiterrorism law was 
not without its flaws, including articles in contradiction to other 
legislation. Djoko added that the court believed the verdicts of the 
District Court, the Bali High Court and the Supreme Court met all the 
stipulations of the Criminal Code Procedures. The other two men 
currently serving sentences for the Bali bombing -- Imam Samudra and 
Amrozi's brother Ali Gufron -- have also filed for a case reviews with 
the Supreme Court. The Supreme Court has yet to issue its ruling on the 
two convicts' plea. Amrozi, Imam Samudra, and Ali Ghufron are currently 
serving their jail terms at Batu Prison in Nusakambangan, Central Java.

The 2002 Bali bombings were blamed on the Al-Qaeda-linked Jamaah 
Islamiyah terror network. None of the three condemned convicts has 
expressed remorse over the attacks.



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