H&A Daily Risk Assessment - 25 Apr 2017

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Please find attached H&A Daily Risk Assessment - 25 Apr 2017

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[Jakarta Info]

Dear Clients,

 

Please find below H&A Daily Risk Assessment - 25 Apr 2017

   

DPR PUSHES BACK AGAINST E-KTP GRAFT PROBE    COUNTRY HEADLINES

The House of Representatives (DPR) is pushing back against a Corruption Eradication Commission (KPK) probe into graft claims surrounding the electronic identity card project (e-KTP) that has implicated senior government officials and lawmakers. Bambang Soesatyo, the chairman of DPR Commission III overseeing legal affairs, told Tempo that a majority of members have agreed to exercise their legislative right of inquiry to force the KPK to release classified tran¬scripts and video record¬ings of interviews with Miryam S. Haryani, a former DPR member and key witness in the case. Haryani was also declared a suspect in the case after allegedly giving false testimony in court. In a hearing on 30 March, KPK investigator Novel Baswedan testified that Haryani had told him five DPR members had threatened her so she would not report that she and several other politicians had received illicit payments. As many as 70 high profile government officials and DPR members, including speaker and Golkar Party chairman Setya Novanto, were named in a KPK indictment as having received illicit payments from the project that reportedly caused an estimated IDR2.3 trillion (USD173 million) in state losses. KPK spokesman Fe¬bri Dian¬syah said that sub¬mit¬ting the records to the DPR would ham¬per the investigation into other sus¬pects in the case. “The KPK will not open those doc¬u¬ments be¬cause it risks ob¬struct¬ing the on¬go¬ing graft probe,” he said. Arsul Sani, a member of DPR Commission III from the United Development Party, said that the inquiry was not aimed solely at the e-KTP investigation. “We will also demand a KPK clarification on a recent report from the Supreme Audit Agency (BPK) that indicates irregularities in the agency’s annual budget and reports of abuse of power by KPK commissioners in issuing legal documents,” said Sani, as reported by Kompas. Almas Sjafrina, a researcher at Indonesia Corruption Watch (ICW), said that the inquiry is a bid to protect a number of DPR members allegedly involved in the graft case. Meanwhile, police continue to investigate links between the e-KTP case and an acid attack on Novel Baswedan, who is heading the graft probe. Police have questioned two men who allegedly stalked Baswedan days before the attack; however it is understood that neither are believed to be responsible for the incident. National Police chief Gen. Tito Karnavian said that police have collected information that indicates there’s a link between the attack and the e-KTP investigation, but he did not disclose further details.

TOP ISSUES 

PROVINCIAL AFFAIRS

At least six people were injured in a clash between Freeport Indonesia workers and police outside the Timika District Court in Mimika regency, Papua, on Thursday 20 April. (Page 6)

CIVIL & LABOUR AFFAIRS

Labour unions have announced plans for large rallies in Jakarta and West Java on 1 May. (Page 6)

PHYSICAL RISKS

TERRORISM | EXTREMISM

Immigration Officials Detain Three Indonesians Deported From Turkey

Immigration officers at I Gusti Ngurah Rai International Airport in Denpasar, Bali, detained three Indonesian nationals who were deported from Turkey for alleged involvement with the Islamic State (IS) group. One of the people arrested claimed that he was accompanying his daughter and her husband on a honeymoon trip to Turkey. A Bali Police spokesman said that the trio were unable to present any documents confirming the marriage. All three people have been handed over to the National Police counterterrorism unit, Densus 88, for further investigation.

Sources: The Jakarta Globe | Tempo Interactive

ETHNIC, RELIGIOUS & SOCIAL CONFLICT

Police Block Plans for HTI Event

Jakarta Police banned the hard line group Hizbut Tahrir Indonesia (HTI) from staging a Khilafah forum in the capital on Sunday 23 April. Police spokesman Sr. Comr. Argo Yuwono said that police had decided not to issue a permit for the event. It is believed that the decision was made to avoid stirring up religious and political tensions in the capital. Gerakan Pemuda Ansor (GP Ansor), the youth wing of Indonesia’s largest mass Muslim organisation Nahdlatul Ulama, had previously said that it would deploy thousands of members to disband the event. The head of GP Ansor Jakarta, Abdul Aziz, said that HTI’s ideology could cause “national disintegration”.

Sources: Kompas | Koran Tempo | Republika | Media Indonesia

Comment: Hizbut Tahrir Indonesia (HTI) aims to establish a khilafah system and implement sharia law in Indonesia. HTI has been involved in clashes with members of more moderate Islamic groups like Nahdlatul Ulama, especially in its strong-hold of East Java. The government is drafting a law that would allow it to disband hard line groups such as HTI.

HEALTH & DISEASE | FIRE & SAFETY

Fire Destroys Homes in North Jakarta

A gas cylinder explosion sparked a fire that burned down dozens of houses in Pluit, North Jakarta, on Friday 21 April. No injuries were reported.

Sources: Kompas | Warta Kota | Media Indonesia 

Three Killed in Central Java Lighting Strike

11 people were struck by lightning during a hike on Mount Prau in Wonosobo, Central Java, on Sunday 23 April. A police spokesman said that three people were killed while resting at the Patak Banteng basecamp during heavy rain at around 1430hrs (WIB). Police said that at least two others were badly injured. Authorities in Central Java have temporarily closed the mountain for hiking.

Sources: Detik | Warta Kota | Kompas

POLICE | OPPORTUNIST, ORGANISED & VIOLENT CRIME

Police Officer Injured in Shootout 

Police shot and killed one of four armed robbers who stole a motorcycle from a parking area in Cikupa, Tangerang (Banten), on Monday 24 April. One police officer was injured in a shootout with the suspects. Three others managed to flee.

Sources: Kompas | Warta Kota  

Several Injured in Inter-Community Clashes

Several people were injured in a violent inter-community clash in Kramat Jati, East Jakarta, on Monday 24 April. A similar violent clash was reported in Cilandak, South Jakarta, on Monday in which three people were injured. Police are investigating both incidents.

Sources: Kompas | Warta Kota  

Police Seize IDR600 Million in Counterfeit Banknotes 

Police in Semarang, Central Java, arrested an alleged counterfeiter on Thursday 20 April and confiscated IDR600 million (USD45.055) worth of fake banknotes that were ready to be distributed. A police spokesman said that the suspect was convicted of a similar offense in 2007. Police also arrested three alleged couriers during a raid at a rented house in Jl. Pedurungan, Semarang. The group had allegedly manufactured fake versions of the new IDR50,000 and IDR100,000 banknotes.

Sources: The Jakarta Post | Kompas | Republika

NATURAL DISASTERS

Houses Damaged in Tasikmalaya Earthquake

A magnitude 5.4 earthquake hit Tasikmalaya in West Java early on Monday 24 April damaging at least 24 houses in the regency.   The local Disaster Mitigation Agency (BPBD), however, reported that most of the houses sustained only minor damage. There have been no reports of injuries. The Meteorology, Climatology and Geophysics Agency (BMKG) said that the epicentre of the quake, which occurred at 0100hrs (WIB), was located 58 kilometres southwest of Tasikmalaya and was also felt in neighbouring Garut and parts of Bandung.

Sources: BMKG  | Detik | Okezone | Viva News

INDONESIA EARTHQUAKE ALERT TUESDAY 25 APRIL

Day / Date Time

WIB RS Depth

Km Location Remarks

Tue 25 Aug 04.28 5.1 10 70 km SW of South Lampung, Lampung No reports of damage, injury or tsunami risk.

Mon 24 Aug 13.13 5.3 17 128 km SE of East Bolang Mongodow, North Sulawesi No reports of damage, injury or tsunami risk.

Mon 24 Aug 01.01 5.4 13 58 km SW of Tasikmalaya, West Java Dozens of houses were damaged, however no reports of injury or tsunami risk.

Sources: Meteorology, Climatology and Geophysics Agency (BMKG) | ASEAN Earthquake Information Centre | USGS

ENVIRONMENT & CLIMATE

BMKG Detects 20 Hotspots in Sumatra

The Meteorology, Climatology, and Geophysics Agency (BMKG) has detected 20 hotspots indicating forest and land fires in six provinces in Sumatra. A BMKG spokesman said on Monday 24 April that the number of hotspots had increased from 15 hotspots on Sunday 23 April. BMKG data showed that Riau province had the most hotspots, with two reported in Siak and Singingi and the rest were detected in Bengkalis, Indragiri Hilir and Pelalawan. The Riau provincial administration declared a state of emergency over smoke caused by forest and land fires in 2017, effective for 96 days from January to 30 April.

Sources: BMKG | Detik | Okezone | Viva News

INDONESIA HIGH WAVE ALERT TUESDAY 25 APRIL

Height Location Remarks

2.0 – 3.0 m The Arafuru and Sawu Seas. Waters off Kupang (East Nusa Tenggara/NTT). The eastern reaches of the Banda Sea. Waters to the west and north of Aceh. Waters to the south of Sumba and Rote Islands (NTT). Waters from the west of the Simeulue Islands (Aceh) to the Mentawai Islands (West Sumatra). Waters from Bengkulu to the west of Lampung (southernmost Sumatra). Waters from the south of Java to Sumbawa (West Nusa Tenggara). The southern reaches of the Lombok, Bali and Alas Straits. The waters of the Kai, Aru, Babar, Tanimbar, Sermata and Leti Islands (Maluku). Hazardous for fishing vessels and motorised wooden vessels.

Source: Meteorology, Climatology and Geophysics Agency (BMKG)

JAKARTA AIR QUALITY INDEX TUESDAY 25 APRIL

    

TRANSPORT & TRAVEL

Four Killed in Puncak Multi-Vehicle Crash

Four people were killed and dozens injured in a crash involving a bus, six cars and five motorcycles on Saturday 22 April in Puncak, Bogor regency (West Java). A police spokesman said that the driver lost control of the bus when its brakes failed on a downhill road section of Jl. Raya Puncak. Police said that the driver, who does not possess a driving license or vehicle registration document (STNK) for the bus, has been charged. The route to Puncak, a popular recreation area near Jakarta, is often packed with vehicles on weekends.

Sources: Metro TV | Warta Kota | Pos Kota | The Jakarta Globe | The Jakarta Post

AVIATION | AIR SAFETY

Garuda Indonesia to Move International Flights to T3 

State-owned airport operator Angkasa Pura II (APII) announced on Friday 21 April that Garuda Indonesia will start operating all international flights from the new Terminal 3 at Soekarno-Hatta International Airport in Cengkareng, Banten, on Monday 1 May. An APII spokesman said that Garuda has finished testing check-in, boarding, luggage-handling, arrival, departure and safety procedures at the new terminal. The operator said that international flights by other airlines will still use Terminal 2 for the time being.

Sources: The Jakarta Globe | Kompas

SHIPPING | MARITIME SECURITY

Chinese Crew Detained, Ship Flees Local Waters

A Chinese-flagged dredging vessel detained by the Indonesian Navy (TNI-AL) on Thursday 20 April for allegedly scavenging items from a shipwreck near the Anambas Islands in Riau Islands province, sailed from the area while authorities waited for military assistance to secure the ship. The MV Chuan Hong 68 was boarded by TNI-AL personnel about 1800hrs local time and 20 crew members were detained, consisting of 16 Chinese nationals, three Indian citizens and one Malaysian. Navy deputy chief of staff Vice Adm. Achmad Taufiqoerrochman told journalists on Friday 21 April that he had ordered a warship to go to the site to secure the dredger. “When our warship eventually got to the location, the [Chinese-flagged] vessel was no longer there,” he said. It is believed that the vessel sailed north to the South China Sea. Taufiqoerrochman said that there may have been crew members still hiding in the ship. Minister of Maritime Affairs and Fisheries Susi Pudjiastuti said that she believed the dredger was scavenging the wreck of the Swedish super tanker Seven Skies that sank in 1969. Pudjiastuti said that the ministry would contact Interpol to help locate the dredger, while the Ministry of Foreign Affairs has been notified about the arrest of the foreigners.

Source: The Jakarta Post

Five Children Killed as Boat Capsizes in Kalimantan

A vessel carrying 35 people, including 13 kindergarten students, capsized in the Buntut Gurung River, Kapuas Hulu regency, West Kalimantan, on Saturday 22 April. A spokesman for the search and rescue team said on Sunday 23 April that five students and one adult were found dead while 29 others were rescued. He said that the vessel sank after hitting a log.

Sources: Merdeka.com | Antara News | The Jakarta Post 

BUSINESS RISKS

NATIONAL ECONOMY | FUEL & FOOD SECURITY

US Trade Probe Poses No Major Risks to Indonesia: IMF

The International Monetary Fund (IMF) expressed optimism that a recent executive order by US President Donald Trump that put Indonesia on its trade-probe hit list will not harm the relationship between the two countries. IMF chief economist Maurice Obstfeld said that the US would remain reliant on Indonesia for several commodities, including palm oil, as the world’s largest economy could not produce those goods on a large scale. “At some level […] trade is helpful for productivity as it allows specialisation of production among countries. Indonesia is actually a deficit country itself, so I don’t see any charge [by the US] against Indonesia as being a very compelling charge,” he said. IMF division chief for Asia and Pacific Luis Enrique Breuer said that the fund did not see Trump’s measures as a downside risk to Indonesia’s growth, which the IMF has estimated will reach 5.1 percent this year.

Source: The Jakarta Post

PROVINCIAL AFFAIRS

Riau Islands: Immigration Officials Raid Batam Tourist Area 

At least 70 people, including 32 foreign nationals, were arrested by the authorities after failing to show proper documents during raids on bars in Batam, Riau Islands, on Sunday 23 April. 40 of those arrested were Indonesian nationals who failed to show their identity cards during the raids. A spokesman for the Batam immigration office said that the raids were a part of an operation to control “social problems” in the popular tourist area. All of the foreign nationals arrested were deported on Monday 24 April, including six Singaporean military personnel who were detained at a bar in the “Kampung Bule” area.

Sources: Tribun News | Batam Post | The Jakarta Post 

Papua: Six Injured in Clash Between Police, Freeport Workers

At least six people were injured in a clash between Freeport Indonesia workers and police personnel outside the Timika District Court in Mimika regency, Papua, on Thursday 20 April. A police spokesman said that officers fired rubber bullets in an attempt to disperse the crowd, which were mostly Freeport employees who were there to support a colleague standing trial in an embezzlement case. One of the victims is Mimika Police chief Adj. Sr. Comr. Victor Dean Mackbon, according to local police, while the remaining five victims were Freeport employees. All six have been hospitalised for treatment.

Sources: Detik | Kompas | The Jakarta Post | Antara News | Republika

CIVIL & LABOUR AFFAIRS

Labour Unions Plan Rallies in West Java & Jakarta

Thousands of members of the Congress Alliance of Indonesian Labor Unions (KASBI) are set to stage a rally at the Cimahi Manpower Office on Labour Day, 1 May.  A spokesman said that the rally is being held to protest against the performance of the office in monitoring violations of employees’ rights. A spokesman for the West Bandung branch of the Indonesian Workers Union Confederation (KSPSI) said on Sunday 23 April that a larger number of members are scheduled to attend a rally in Jakarta on Labour Day. He however did not elaborate on the location or demands of the protesters.

Source: Republika 

GOVERNMENT REGULATIONS & POLICY

Freeport Collects Export Permit Amid Workers’ Strike Threat

US mining company Freeport McMoRan Inc collected a permit to resume copper exports from Indonesia on Friday 21 April after a pause of more than three months. The Ministry of Trade issued Freeport with a permit to export 1.1 million tonnes of copper concentrate up to February next year, although it was unclear how long shipments would last. Freeport is still locked in a dispute with the government over rights to its Grasberg mine in Papua, and tensions with workers threaten to disrupt its operations further. US Vice President Mike Pence thanked President Joko Widodo for the interim solution to the Freeport dispute on Friday but said that more steps were still needed to address the dispute. Tensions are also high around Grasberg after Freeport laid off thousands of workers there to halt losses. Freeport warned on Friday it would punish workers for absenteeism, a day after one of the main unions announced plans to strike over employment conditions. The Freeport workers’ union has demanded an end to the furlough policy and notified the company of plans to strike for 30 days from 1 May.

Source: Reuters

 

Comment:  The government halted Freeport's copper concentrate exports in January under new rules that require the company to adopt a special license, pay new taxes and royalties, divest a 51 percent stake in its operations and relinquish arbitration rights. The dispute has cost the company and the government hundreds of millions of dollars.

COURTS & JUSTICE | CORRUPTION | FRAUD

Former Ministers Sentenced in Corruption Cases 

The former minister for state-owned enterprises Dahlan Iskan was sentenced to two years in prison by the Surabaya Anti-Corruption Court in East Java on Friday 21 April. The presiding judge found Iskan guilty of corruption related to the sale of assets belonging to PT Panca Wira Usaha (PWU), a company owned by the East Java administration. In addition to a two-year prison sentence, Iskan was also ordered to pay a fine of IDR100 million (USD 7,525.03) or face an additional two months in prison. Meanwhile, the former minister for youth affairs and sports Andi Mallarangeng was released from Sukamiskin Penitentiary in Bandung, West Java, on Friday. Andi was sentenced to four years in prison and ordered to pay IDR200 million in fines in July 2014 after being found guilty of corruption in a case linked to the construction of the Hambalang sports complex in Bogor, West Java. Andi was a Democratic Party politician and once the spokesman for former president Susilo Bambang Yudhoyono.

Sources: Antara News | Media Indonesia | Kompas | Republika | The Jakarta Post

OTHER RISKS

FOREIGN NATIONALS | EXPATRIATE AFFAIRS

52 Foreigners Detained for Cybercrimes

The South Jakarta immigration office on Friday 21 April detained 52 foreign nationals for allegedly committing cybercrimes. An immigration office spokesman said 27 foreigners were arrested in Kemang, while 25 were arrested in Pejaten. Police seized mobile phones, printers, and scanners, among other items. Police have decline to reveal more details about the alleged crimes.

Sources: Detik  | Antara News

Interpol-Listed Fugitive Arrested in Bali 

Immigration authorities at Ngurah Rai International Airport in Denpasar, Bali, arrested an Interpol-listed fugitive on Thursday 20 April. Chinese citizen Cheng Liang, 34, who is on Interpol’s red list for alleged fraud, reportedly faces a life sentence in his home country. Liang was arrested in Denpasar after arriving from Bangkok. He has been detained at the Bali Police detention facility after attempting to take his own life at the immigration detention facility.

Sources: Kompas | Okezone | Antara News | The Jakarta Post

Foreign Citizen Arrested for Theft 

Police arrested a Norwegian national for stealing a mobile phone at Soekarno-Hatta International Airport on Saturday 22 April. A police spokesman said that the suspect stole the phone from another passenger at Garuda Indonesia’s lounge at terminal 3. He was later released after assisting police.

Sources: Kompas | Warta Kota  

 

UPCOMING EVENTS DIARY

Date Event Public Holiday Remarks

Wed 26 – Sun 30 Apr INACRAFT 2017 No Jakarta Convention Centre (JCC)

Thu 27 Apr – Sun 7 May Indonesia International Motor Show 2017 No Jakarta International Expo (JIE) Kemayoran

Mon 1 May International Labour Day Yes Public Holiday

Thu 11 May   Waisak; Buddha’s Birthday Yes Observed by Buddhists nationwide

Fri 12 May Commemoration of the 19th anniversary of the 12 May 1998 riots. No Widespread riots in Jakarta followed fatal student shootings which have never been fully resolved. Student demonstrations likely in observation of the day.

Thu 25 May Ascension of Jesus Christ Yes Observed by Christians nationwide.

 

COUNTRY RISK RATING – INDONESIA

Terrorism Crime Ethnic, Religious & Social Conflict Health Risks & Services

H (B3) M (C2) H (B3) H (B3)

Natural Disasters Corruption & Fraud Business Ethics & Compliance Utilities & Infrastructure

H (B3) H (B3) H (B3) H (B3)

Qualitative Risk Analysis Matrix - Level of Risk:

Probability

Rating Consequence Rating

Insignificant

1 Minor

2 Moderate

3 Major

4 Catastrophic

5

A (almost certain) H H E E E

B (likely) M H H E E

C (possible) L M H E E

D (unlikely) L L M H E

E (rare) L L M H H

Legend:

E Extreme risk Immediate action required

H High risk Senior management attention needed

M Moderate risk Management responsibility must be specified

L Low risk Managed through routine procedures

 

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