Problems & Solutions

Jun 10th, 2010, in IM Posts, Opinion, by

How to solve Indonesia's massive problems, corruption, sharia laws, and the rest.


Resolving Indonesia's Massive Problem

Before Soeharto's downfall and the post Soeharto era, Indonesia has been bogged by problems that until so far no businessmen, politicians, and academics have been able to come up with an absolute answer to.

It just seemed to be like passing on the baton, the result is each time the baton is passed the baton gets heavier and heavier.

Worst still is that the political elites pick and choose the position they want in order to get the max out of their post.

Over the years, there has been talk about what is bothering Indonesia's political scenario, many made fun of them (at time I as among one of them too) but no action whatsoever was taken to ease the tensions caused by clergy, layman and political scavengers.

So what should be done to enable Indonesia in the forthcoming election to enable voters to gauge who can do a better job.

The problems that have been bugging Indonesia's economic deficit were:

  1. How Indonesia should deal with corrupt officials in the Cabinet, in Parliament and in Government office?
  2. What punishment must they get? Should there be a precedent?
  3. Should Indonesian Law face a total revision eliminating leftovers from her predecessors?
  4. What must the Indonesian Government do to have Sharia Law removed from the current statutes?
  5. What must be done for officials failing to implement and abide by a Presidential Decree?
  6. There is the blasphemy law passed in 1965? Who does that apply to? Why is that made into law? Must that be revoked?
  7. What percentage of allocation is to be fixed for State Budget? What must they do with that? What to do with leftovers?

If Indonesia is serious about these problems and working a way to have it resolved (I suppose with relative ease), then the majority of her problems could be resolved, thus being capable to overcome and apprehend any obstacles meant to undermine her economy.

Indonesia cannot continue going on with all these burden of problems pass on from one President to another. The earlier indoctrinated criteria in selecting a President is that the person should be a Javanese. These should no longer exist in this electronic era.

There are people who are smart but dare not place themselves to serve the country, and there are also people who wit themselves to service the country with purpose and intent to benefit themselves as most do.

Why the ABRI was stripped of their Dwifungsi status is perhaps a way of stripping the President of his power as Supreme Commander. ABRI claims that they stand on neutral ground but, insofar they are always the main cause of trouble for Indonesia be it political or commercial.


48 Comments on “Problems & Solutions”

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  1. avatar realest says:
    June 10th, 2010 at 9:09 pm

    1. Can’t beat em? Join em
    2. Death penalty sounds nice
    3. Define “liminating leftovers from her predecessors?”
    4. Shariah laws don’t apply to me
    5. Afaik Keppres is abided
    6. Freedom of anything should be followed by being responsible and i don’t see this as a ‘massive’ problem either.
    7. DPR decides the allocation and there is usually no leftovers. If there are any, nobody would reveal them for fear of lesser allotted share the next fiscal year.

    Answer: Education usually solves most of the massive problems gradually.
    smiley

  2. avatar sputjam says:
    June 10th, 2010 at 10:06 pm

    If I remember correctly, during soharto’s time, his cronies had major monopolies.
    Those with export monopolies, normally will have an office in singapore, where all the paymens were directed and deposited, and just enough was repatriated back to indonesia to cover maintenance/manpower and loans.
    So it is no surprise, for an island of 100milion people, java lack basic infrastructure.
    Also, since petroleum products were heavily subsidised, huge amounts of diesel and kerosine were smuggled out and sold slightly less than the market prices to bunker companies in singapore. So the rich in indonesia, with their oil tankers, made vast amount in wealth, at the expense of the Pertamina, who had to carry the burden of the subsidies. I don’t have to tell you where the wealth were kept.
    And those timber tycoons etc. payments were never repatriated back home. For all the vast amount of mineral and commodities Indonesia exported, a huge amount of the payment ended up in singapre or Hong Kong.
    Only way for the government to receive some money back,is to tax the commodities/natural resource at the point of export. Corporate tax can always be manipulated.
    As for syariah law, muslims lag christianity by approximately 700 years. The christians unshackled themselves maybe four hundred years ago with the renaissance. So muslims may be elightened maybe fifty to one hundred years from now, thanks to the impact of technology.

  3. avatar realest says:
    June 11th, 2010 at 1:05 am

    I don’t think Indonesia lost “that significant” amount of money from illegal oil exports. Indonesian was one of the original members of OPEC and have been a net importer for quite some time which means, with subsidy, Indonesia merely wasn’t shifting the burden of oil prices on its citizens. Afaik, Indonesia got screwed of a fair deal in mining of natural resources because those in charge took bribes to give large corporations low priced long-term contracts. Those contracts lasted till Megawati’s short-lived era and her government did complain about it.

  4. avatar Dragonwall says:
    June 11th, 2010 at 4:31 am

    1. Can’t beat em? Join em

    So it will add one more corruptor. Of course knowing the fact if you can’t fight the bull go alongside and you won’t be hurt.

    2. Death penalty sounds nice

    So mus there be a precedent? How about taking this ABU as an example? Then we start the guns ready to execute those Supreme court Judge and prosecutors. A good start.

    3. Define “liminating leftovers from her predecessors?”

    If Indonesia were to move forward, then Indonesia’s Law cannot continue to use what was leftover by the Dutch. It should be carefully revise. Singapore and Malaysia had continue using the British Law. But why is Singapore’s Law more efficient?

    4. Shariah laws don’t apply to me

    You may say it doesn’t apply to you! But it is real in Aceh and 18 other Regencies. It also says that non Muslims also had to abide! How come it does not apply to you?

    5. Afaik Keppres is abided

    Certain Keppres when beneficial will be abided but not when it does not benefit then. One example is the Governor of Kalimantan.

    6. Freedom of anything should be followed by being responsible and i don’t see this as a ‘massive’ problem either.

    How do you define being responsible. Is there any freedom of speech in Indonesia? No definitely not. Susno is one good example. Pollycarpus case HAM etc etc. people who died mysteriously investigating the victime of rape in the 98 riots. Absolutely no freedom of speech.
    Who really cares about everyday kong kali kong.

    7. DPR decides the allocation and there is usually no leftovers. If there are any, nobody would reveal them for fear of lesser allotted share the next fiscal year.

    And that is the most fearful problem in Indonesia you too knew. And that is the real problem behind the funds being used

    Answer: Education usually solves most of the massive problems gradually.

    Of course to educate the general public is of ulterior importance, but with those clergy and ulamas what will be your bet.

    Only way for the government to receive some money back,is to tax the commodities/natural resource at the point of export. Corporate tax can always be manipulated.

    Right, like placing it as a BBM commodity and add 300 percent in tax. Nice handsome profit. WHo cares where they are going to!

    As for syariah law, muslims lag christianity by approximately 700 years. The christians unshackled themselves maybe four hundred years ago with the renaissance. So muslims may be elightened maybe fifty to one hundred years from now, thanks to the impact of technology.

    So you think that Sharia should be applicable in Indonesia and other minorities be subjugated to such oppressions!

    Indonesia got screwed of a fair deal in mining of natural resources because those in charge took bribes to give large corporations low priced long-term contracts. Those contracts lasted till Megawati’s short-lived era and her government did complain about it.

    So who should be blamed and who should be held responsible? So there is a start on how to resolve the problems.

  5. avatar Dragonwall says:
    June 11th, 2010 at 10:53 am

    Lets take this ABU for example.

    1. He started out in commodity business.
    2. Venture out into industrial.
    3. Broaden into Banking.
    4. He then go into coal mining and exporting of coal.
    5. He also had the exploration, drilling for oil and gas.
    6. He went on to the Indo Chamber of Commerce.
    7. He then was appointed Menko Kesra.

    During his terms (6) he still had controlling interest (4) with all the Bakrie Businesses and his presence felt.

    During his terms (7) did he declare his assets? I guess No. Did he resigned from all his business positions? I guess Yes. But acted behind the scene (5).

    When he started the Nusa Bank he offered his Bank shares at a premium holding very minimal share for himself just within the controlling margin.

    For 1 rupiah he offer it for lets say 3 rupiah thus owning his share for a song. What he is doing then is to use the MO of OPM without his own involve. He get people to place money in the bank offering interest and use the money to loan to other business and so he get his crony companies including his own family businesses to make loan from his own bank. Zero balance the bank equity. Make loan from BI using corporate assets as collaterals while maintaining liquid to qualify as a liquid bank.

    When corporate borrowers fall into delinquency and defaulted one after another it all fell like a house of cards and went into receivership making BI solely responsible for the loss.

    Government bailed out the bank and pay back depositor their savings within a certain limit. Nusa bank collapse and is taken over by BI.

    BI then continue to carry the baby with no head hoping someone will buy their assets to clear the debt piled up at BI. BI unable to offload the assets sell them cheaply at a loss to cronies who then bought them back for penny to the dollar.

    If there are wrong doing, people at BI will try to cover their arse as much as possible, and if there are wrong doings those people from the bank will be charge for fraud and deceiving BI. But in this case there is no wrong doing because BI already carry the baby on his own. So everyone is clear of any charges.

    Then come the process of regaining control of those assets at a lesser price without having to be responsible for any payables or liabilities to BI and the Indonesian Government.

    By this time they already have huge sums of money stuff into their own pocket.

    Into his terms he amassed large concession of coal mining and oil exploration concession.

    The same MO happened to coal mining and oil exploration selling forward in commodity market, taking order and command the market based on the deman against production. China is thirsty of all these coal.

    So while in the office as Menko Kesra he managed to amass his assets from 1.2 billion of stolen money to become 5.4 billion doing the same circle of business cycle from IPO till it collapse.

    These complicated analogy if go into such minute details will cover extensive write out.

    His assets dwindles is because of extensive usage of funds into random drilling especially the LP venture, though he does not have to pick the bills, his share price drop, he still has funds abroad for him to regain when situation settle down.

    He sold LP for a princely sum of 2 dollar with a caution that the buyer had to assume responsibilities and took the company over by Bakrie Brothers since Lyte backed out.

    Now they are looking for new hunting grounds, like in coal and other oil drilling ventures. It is possible he might shift his venture investment into property and building, hotel air travel communications etc.

    If he is successful in getting SBY to ‘rangkul’ him then there could be another Tommy Soeharto in the making. His cronies and family members will be later brought to the scene.

    What must be done to stop this ABU from getting more corrupt by involving the Indonesian Government and Government Officials?

    What must be done to uncover all his wrong doings?

    Of course when he gets off easily is because he is prepared to pay THE price to get away.

    What will the Indonesian Government do to avoid being used by this ABU with his 15 billion KKN ploy to broaden his base? Expand his cronies?

    How to Stop the BLEEDING!

  6. avatar realest says:
    June 11th, 2010 at 11:49 am

    @Dragonwall: u sound like a mahasiswa conspiracy theorist.
    1. true he had interest(control is likely) while he’s in office
    2. most business use non-performing assets as collaterals for loans to operate their business. that’s how all banks work.
    3. I dont know the extent of the Nusa bank buyback but, in the case of BCA, the govt has blacklisted the salim group from buying back BCA.
    4. i dont think bakrie controlled enough coal mining to dictate prices even in the indonesian market, let alone the regionals.
    5. unless bakrie is doing some serious double book-keeping, his business so far has been legit. say he is a rogue, with the amount of public scrutiny it currently gets, the matter would get blown out at some point.
    6. Lapindo Brantas was sold for $2 to Lyte Ltd which is now renamed Bakrie Gas & Oil. He was, in a sense, trying to secure his bigger company from share free-fall but far from shirking responsibilities.
    7. I don’t think there would be another suharto-era level of collusion because sby, unlike suharto, doesn’t have absolute power. sby is currently exhausting his second(and last) 5-year term as president, bakri had to “rangkul” someone else after 2014.
    Bakrie apa loe

    I don’t revere bakri and, in most sense, i think he’s a rat but i believe he’s smart enough to make things legit. Ppl used to say all sort of things when Salim was no 1 too, but banks are learning from bca’s methods(pioneered by mochtar riady) even today.

  7. avatar Hans says:
    June 11th, 2010 at 12:12 pm

    it,s so wonderful
    How wonderful it would be to have a Real Brain which could tell things to a

  8. avatar Dragonwall says:
    June 11th, 2010 at 12:51 pm

    @Dragonwall: u sound like a mahasiswa conspiracy theorist.

    Right now we are talking about problems and resolutions how to get these people back on track straight to the cell. Politics gives in on people power, crime gives in on legal pressure.
    This is not something of a mahasiswa conspiracy let alone theory.
    I first came to know MR when he was with Bank Duta before moving to BCA. And that is in the 80′s. So were with his kids when they were manning the Kota Branch.

    1. true he had interest(control is likely) while he’s in office

    So that means that there should be some kind of proof that he had violated his ethiquette when he was sworn into office!

    2. most business use non-performing assets as collaterals for loans to operate their business. that’s how all banks work.

    So these is what I am referring where Bi can hold these people responsible and bring them to the green table, don’t you agree?

    3. I dont know the extent of the Nusa bank buyback but, in the case of BCA, the govt has blacklisted the salim group from buying back BCA.

    Well lets say that their wariness is due to perhaps from people who own the bank like SS! Where the backlog of history in their past tells people that they should not be trusted!

    4. i dont think bakrie controlled enough coal mining to dictate prices even in the indonesian market, let alone the regionals.

    Well my friend, I am sure you hear of assosiasi? If not how come the price rose from 60 plus to 73 lately!

    5. unless bakrie is doing some serious double book-keeping, his business so far has been legit. say he is a rogue, with the amount of public scrutiny it currently gets, the matter would get blown out at some point.

    Thre is bound to have a breaking point sooner or later. You will be surprise double book-kepping is the norm of a corporate trying to siphon money for tax purposes and perhaps triple book-kepping where one is suppose to show losses in the PNL.

    6. Lapindo Brantas was sold for $2 to Lyte Ltd which is now renamed Bakrie Gas & Oil. He was, in a sense, trying to secure his bigger company from share free-fall but far from shirking responsibilities.

    Didn’t we see that they have already been shirking off responsibilities long time ago since 2006 when it happened! Free fall or not just happened to be the market reaction when large amount of dumping comes in the bear follow. Limit downs after limit down will trigger the JSX to halt trading. At the end of the day the share had already become worthless. The portforlio no longer exist. It was like gold in the early 80s and the same to recent when the US economy crash. The Asia economy crash did not cause much impact to expect some heavy buying and selling. There is still the bouyance. But in the case of LB big zero.

    7. I don’t think there would be another suharto-era level of collusion because sby, unlike suharto, doesn’t have absolute power.

    The level of corruption today is by far greater than that of the Soeharto Era. Belief me. Many said Soeharto was reported to have been corrupting the country big time but until today there is no trace of where the funds were kept. Many of us forget that perhaps, I am saying perhaps Soeharto did corrupt the country’s money. But for what cause? Only one. ABRI. Therefore the money disappear, no trace of it. Because they were all spent on the Armed Forces who were underpaid and overwork. In order to be the Supremem Commander and there is not extra allocation for him to keep the army alive he had to. Who ever in his position will do the same. Is that corruption? Therefore I maintain that Soeharto did not corrupt the country’s money for his personal luxury. A little bit yes acceptable. Even a US Governor is willing to sell his seat at a prize. But if you refer to his cronies and his sibblings, and children well I definitely agree that there were collusion and nepotism involve that cause the corruption to go on big time. They still have to pay a price for that. But what happened to this ABU?

    sby is currently exhausting his second(and last) 5-year term as president, bakri had to “rangkul” someone else after 2014.

    Whoever this ABU rangkul it doesn’t matter, what matters is the President. Whoever takes the baton or continue to take the baton must not be burden by these. The exhaustion was cause by the support he lack and because of that, he too fear that he might fall down branded dirty.

    I don’t revere bakri and, in most sense, i think he’s a rat but i believe he’s smart enough to make things legit. Ppl used to say all sort of things when Salim was no 1 too, but banks are learning from bca’s methods(pioneered by mochtar riady) even today.

    Yes that is why he is still roaming the street. Even a whistle blower is being questioned. How smart is he? Paying the PRICE of staying free now.

    Hans (PM) Says:

    June 11th, 2010 at 12:12 pm
    it,s so wonderful
    How wonderful it would be to have a Real Brain which could tell things to a

    Any contributions?

  9. avatar Tence says:
    June 11th, 2010 at 4:05 pm

    If Indonesia were to move forward, then Indonesia’s Law cannot continue to use what was leftover by the Dutch. It should be carefully revise. Singapore and Malaysia had continue using the British Law. But why is Singapore’s Law more efficient?

    It is more efficient because they actually implement the law. The problem with Indonesia is not the letter of the law itself, but the fact it is so poorly implemented. Revising it will be utterly useless if the judges and prosecuters will continue to be corrupt as hell.
    You even might wanna reconsider the revisement statement altogether, because all the ‘new laws’ Indonesia is getting right now are anti-porno crap and sharia-based laws. I’d chose Dutch law over that any day ;)

  10. avatar Ross says:
    June 11th, 2010 at 7:14 pm

    Indonesia already has laws against corruption, and sits on the UN Human Rights Commission, I beleive (altho given some of the other countries that sit there too, no big help!)
    Happily, it has shown no inclination to knuckle under to decadent Western busy-bodies like Amnesty ( which sobbed bitter tears over Imam Samudra and co) and intends to keep and use the death penalty.
    Aceh is permitted to use corporal punishment (though mostly for the wrong offences) so the central government has both means and precedent to tackle the slugs that are bringing the country down.

    Hang the most prominent corruptors.
    Floggings for their lesser brethren. (public? – why not?)
    Incarceration, for many years, for those like the FPI who incite violence against citizens and try to usurp police roles.
    And of course no handphones/ laptops for subversives/terrorists in jail.

  11. avatar Ross says:
    June 11th, 2010 at 7:16 pm

    Oya, and treason trials for Hizbut Tahrir – other Muslim-majority countries have already outlawed them.

  12. avatar realest says:
    June 11th, 2010 at 8:13 pm

    1. What etiquette? He’s in charge of social welfare. And every politician, except amien rais, who doesn’t want to remain poor has a business somewhere.
    2. Then BI would’ve to sue almost every business that has gone bankrupt since the declaration of independence.
    4. And did Bakri control the ‘assosiasi’ ?
    6. Shirking responsibility = evading responsibility/pointing at someone else
    7. I don’t see how corruption today is worse than say 15 years ago. Statistics and real life experience are behind me on this.

    In any case, im done discussing this with you. I don’t think both of us live in the same realm.

  13. avatar diego says:
    June 11th, 2010 at 9:52 pm

    Hizbut Tahrir, oh man, I saw their site, those guys are so ugly-looking. Probably the ugliness in their heart oozes out and show in their face.

    Btw, at least I agree with Ross on this: I have idea like big-brother show for those FPI thugs. Lock them up in a small house made of glass, put in public, under jakartan sun (and smog), hang them on the wall medieval style, etc, all televised (e.g.: MTV), primetime advertising cost.

  14. avatar Hans says:
    June 11th, 2010 at 11:13 pm

    why not a complete amnesty, after cleaning up the judiciary, police, prosecution and tax authorities. of these four agencies can become independent and self-determination, with well-paid staff. then we need free education from kindergarten to high school without fees. The tax system needs to be upgraded to the computer age total control. all have to pay taxes 05-30%. all employees must have proof of employment by the employer. annual income tax return with automated data on bank assets.
    Computer-controlled cash registers except for Square merchants.
    Build up the system until 2013, then give amnesty to all the old deceivers.

  15. avatar Dragonwall says:
    June 12th, 2010 at 4:10 am

    It is more efficient because they actually implement the law. The problem with Indonesia is not the letter of the law itself, but the fact it is so poorly implemented.
    Right Tence, this is what it should be, the proper implementation of The Law and to

    have it properly implemented shall trigger a revision where loopholes are being covered and a precedent set in motion.

    Revising it will be utterly useless if the judges and prosecuters will continue to be corrupt as hell.

    After revising it and if the prosecutors and judges are still as corrupt, then they will have to pay the price no regrets. In order to prevent them from being corrupt is what kind of incentives the Government is prepared to offer these people. Understandable the hell of a job being underpaid.

    You even might wanna reconsider the revisement statement altogether, because all the ‘new laws’ Indonesia is getting right now are anti-porno crap and sharia-based laws. I’d chose Dutch law over that any day

    That is why it should be revise. Anti porno is a law applicable in order not to degrade a society. What is a Sharia Law? It is made coupled with religious influence and cannot stand in public view to be a law to govern a country, to Muslims it is alright but out of sight f the Gazette because Indonesia is not an Islamic State. It is being made to force the Indonesian Government to turn Indonesia into an Islamic country and that cannot be condoned. So it must go.

    Indonesia already has laws against corruption, and sits on the UN Human Rights Commission, I beleive (altho given some of the other countries that sit there too, no big help!)

    If it is not properly implemented then, what is the use? But when implemented it will gather momentum like the awareness of the Government being serious! A sudden decrease in corruption! People will start to be more alert of the consequences! And sooner or later the topic of corruption will disappear from Indonesian political and commercial scenario.

    Happily, it has shown no inclination to knuckle under to decadent Western busy-bodies like Amnesty ( which sobbed bitter tears over Imam Samudra and co) and intends to keep and use the death penalty.

    Amnesty International is not for people who are corrupt or wage terrorism to any country but using religious as a front. I am sure Amnesty has not put pressure on any Government because of these!

    Aceh is permitted to use corporal punishment (though mostly for the wrong offences) so the central government has both means and precedent to tackle the slugs that are bringing the country down.

    Aceh had gone independent and if they want to use Sharia Law for their religious group it ism alright. But the problem is Aceh is still reliant on the Central Government therefore the Government cannot allow Sharia to be implemented, to hell with Yusril Ihza Mahendra.

    Hang the most prominent corruptors.

    Right, similar to the Chinese Law. People died, Corporate fell, culprit sent to long prison term and death penalty for those that sell with intent to cause human lives. They were carried out swiftly n bargaining, no amnesty for them.

    Floggings for their lesser brethren. (public? – why not?)

    When the law is implemented, flogging will be in the sentence and publish but not in public view or when it will be carried out. Singapore did that, Malaysia which is an Islamic State also does the same!

    Incarceration, for many years, for those like the FPI who incite violence against citizens and try to usurp police roles.

    It depends on the extent of their involvements.
    Someone dies = Death penalty. Instigator (People behind the scene and exposed) = Sentence to long prison with no possibility of parole. Trespassing and destruction of others property = Fine and long prison term.

    And of course no handphones/ laptops for subversives/terrorists in jail.

    Since when laptops and cell phones is allowed in prison, I mean any prison. It should not have happened in the first place.

    Oya, and treason trials for Hizbut Tahrir – other Muslim-majority countries have already outlawed them.

    This will depend to what extent their involvement and damages done. Had that rose to a state of a national threat like bombings, fueling subversion, poisoning etc.

    After reading what you said and as far as you are concern, you are an ordinary layman. You are unwilling to get into further details except when reading report that a person is corrupt, you will agree to that and that’s the end of story. If every Indonesians were to act the way you do, there are always questions without any possibilities of a resolution or beyond that point. And I guess you are right since people who are on paper value do not live in my realm of reality. Your clock do not move forward when the world stopped.

    What etiquette? He’s in charge of social welfare. And every politician, except amien rais, who doesn’t want to remain poor has a business somewhere.

    The best thing you have said so far is that you agree this Abu is a rat! So you do also agree that they have no professional and political etiquette! And that when they don’t want to be poor they should have a business elsewhere even though they have been sworn their allegiance and to relief and refrain themselves of all other private business connections!

    Then BI would’ve to sue almost every business that has gone bankrupt since the declaration of independence.

    If that has to be the case, so be it! Whether it is before or after the independence. The Law is The Law there is no exception to that, and I guess you don’t get the point. What I would tend to consider is that after eating the bowl of bakso you consider to have filled your stomach.

    And did Bakri control the ‘assosiasi’ ?

    Since you mentioned to a questionable disagreement, lets see how you figure this out.
    (a) Does a person or entity doing business in Indonesia needs to have it incorporated?
    Answer is yes either, CV, PD, PT, BUMN & Tbk etc
    (b) In order to attain recognition by foreign country’s business entity they joined the Chamber of Commerce (usually a medium size up corporate) so that when a third party inquiry comes in they will get a positive reaction instead of a suitcase company.
    (c) The business they belong to will entail them to group together in a way they exchange view on the demand and supply factor to determine a price so that no one producers undercut each other. Of course the quality of produce is of primary deciding factor.
    (d) So since he is with the Chamber of Commerce he tends to put himself to the best of his interest to be actively involved in the assosiasi. Do does he control the assosiasi? You can dismiss the fact if you like but I guess not in reality.

    6. Shirking responsibility = evading responsibility/pointing at someone else
    7. I don’t see how corruption today is worse than say 15 years ago. Statistics and real life experience are behind me on this.

    In any case, im done discussing this with you. I don’t think both of us live in the same side of the world. You are looking right up to the horizon and say the world is flat. I would like to see beyond that point and thinks the world is round.
    Yeah like I said, because you do not come to the level of a real business involvement you can say as you please. In reality it is an undeniable fact to dismiss.

    why not a complete amnesty,

    Before it rained there are bound to have storm. Amnesty can only come in after the initial clean up of the past and a certain level of damage to be gauge to determine whether they fall within the category of amnesty. Like you said

    after cleaning up the judiciary, police, prosecution and tax authorities. of these four agencies can become independent and self-determination, with well-paid staff. then we need free education from kindergarten to high school without fees.

    First the Judiaciary
    Second comes the Tax and banking coming first,
    Third is the Police
    And lastly the Prosecutors.

    The tax system needs to be upgraded to the computer age total control. all have to pay taxes 05-30%.

    Taxation should be flexible depending on their income level and until they reached a state of well to do country, one cannot afford up to 30% or more in taxes like in Singapore and Malaysia, Hongkong etc.

    all employees must have proof of employment by the employer. annual income tax return with automated data on bank assets.

    The mandatory implementation of NPWP is that similar to IRS taxation number. If they were to successfully implement this then they have to set a benefit for them, like unemployment benefits, health care etc and retirement benefits. Many will be asking a question how can that be done. I will say it can. It is a matter of how big or small the scale is.

    If you want people to pay tax, they will asked what is my benefit otherwise who cares. Assuming you earned the following

    5,000,000 per month that is 60,000,000 per year. The taxation should be in the region of 15 % where employer pays half the employee pays half. Is that too heavy, the answer is no.

    Then the state shall diversify and re-invest the money collected. And provide tax payer with insurance, death benefits which is relatively cheap insurance policy.

    If they become unemployed they will be eligible, after they have been employed for like 5 to 10 years, a certain percentage of unemployment benefit until he gets another job. Once that is exhausted then there will be no more pay out. You can’t have all of it.

    When the person retires he will be entitled to a certain percentage of the amount to be distributed over a period of what time to be determined. Please not forget that the re-investment for X amount multiply by the number of people multiply by the rate of interest multiply by the number of years (40% of the whole Indonesian population) mortality a percentage can be arrive for distribution.
    (Repayment or redistribution = Terms and Conditions Apply when approved.)

    5,000,000 x 15% = 750,000 employers/employees each pay half – 375,000
    Multiply by 12 months = 9,000,000
    Multiply by 40% of population that is 100,000,000 people = 900 trillion
    Multiply by say 6% interest? = 54 trillion in interest earnings per year.
    Total 954 Trillion.
    When compiunded over the years? How much would that be?
    You see the figures?
    This will make that ABU look so kecil.
    This will make Indonesian eyes boggle to disbelief. All they need is just to want to participate and understand the values of fuure earnings.

    In this way people will be ready to pay their tax (all electronic generated receipt central controlled) No cheating, no manipulating, no running away. Like
    Computer-controlled cash registers except for Square merchants.

    Of course, those under 21 and over 55 should be exempted and if he choose to continue working it will be extended to 65.

    2012 (filem) kan diperkirakan dunia akan kiamat (joking) but 2013 is relatively too short a period.

    By the way there is no death for Dutch! People can go about easily in Holland with Meth, Coke and perhaps get killed by rival gang and thrown into the river.

    When someone in Indonesia gets arrested, they ngrengek so much like a pussy especially those FPI, JI, etc,etc with protest and all those threats.

  16. avatar diego says:
    June 12th, 2010 at 4:32 am

    Hizbut Tahrir should be outlawed on the basis that their members look so butt ugly. That’s to start with…, and they’re denieng their east-asian root (by looking toward semit culture *), arab)

    *) semit culture = oxymoron

  17. avatar dragonwall says:
    June 12th, 2010 at 5:37 am

    So the next level is to

    1. Resolve the taxation problem
    2. Find every possible details to prove ABU’s guilt before he get further into the mud and camouflage himself.

  18. avatar Dragonwall says:
    June 12th, 2010 at 8:59 am

    To format taxation structure:

    1. Standard Minimal 25,000 / per month
    2. Personal (a) Direct from employment = 15% of salary
    (b) Income from Savings = 15% from earning
    (c) Income from Profit on share trading = 15%

    3. Corporate Between 15 – 25% of net declare income.

    Example (1) Standard NPWP Taxation

    Category Standard Contribution Declare Revenue Total Tax Payable
    Personal Minimal 25,000 25,000
    Monthly Wages
    Income from Savings
    Profits from Stocks/Shares
    Earnings from Bills/Bonds
    Employer
    Corporate Gross Income
    Expenditures
    Nett Income
    Total Income 0 0
    Sub Total 25,000

    Example (2) A working Class with savings NPWP Taxation

    Category Standard Contribution Declare Revenue Total Tax Payable
    Personal Minimal 25,000 Waived
    Monthly Wages 500,000 37,500
    Income from Savings 20,000 3,750
    Profits from Stocks/Shares1,500,000 225,000
    Earnings from Bills/Bonds 250,000 37,500
    Employer 37,500
    Corporate Gross Income
    Expenditures
    Nett Income
    Total Income 2,295,000 341,250
    Sub Total 341,250

    So this guy earns 2,295,000 per month and he pays 303,750 whereas the employer pays 37,500. At the bottom line he pays only 13.235%

    Example (3) A working Class without savings NPWP Taxation

    Category Standard Contribution Declare Revenue Total Tax Payable
    Personal Minimal 25,000 Waived
    Monthly Wages 2,500,000 187,500
    Income from Savings 20,000 3,750
    Profits from Stocks/Shares
    Earnings from Bills/Bonds
    Employer 187,500
    Corporate Gross Income
    Expenditures
    Nett Income
    Total Income 2,545,000 378,750
    Sub Total 378,750

    So this guy earns 2,545,000 per month and he pays 191,250 whereas the employer pays 187,500. At the bottom line he pays only 7.514%

    You can see a variation that though his income could be higher the percentage may not be as high as it seemed.

    Throughout Indonesia all receivable on such taxation shall be directed to the Central Government. Those that does not re-direct such payments to Central Government will not receive any APBD or APBN allocation.

    What will people who face or qualify for such mandatory NPWP payments receive?
    (1) Accidental Benefits.
    (2) Health Care Benefits
    (3) Death Benefits
    (4) Unemployment Assistance Benefits
    (5) Retirement Benefits.

    So where must the money go?
    Not all will go straight to the coffer waiting to be spent on APBD and APBN. The percentage had to be worked out for the following

    (1) Reinvestments – Retirement Benefits
    (2) Diversification – Unemployment Benefits
    (3) Insurance Allocation – Accidental & Death Benefits
    (4) Health Insurance Allocation – Health Care Benefits
    (5) National Allocation – Government Coffer.

    We take an average from the 250 million odd populations of which
    30% make up of old and aged, 30% make up of women and children. 40% comprise of both employed and unemployed who may be farmers.

    Unless I have the details, otherwise I can only make predictions. The figures worked out to around 900 Trillion plus minus 150 Trillion.

    Percentage on Import duty and for BBM can be then reduced to lighten the burden or importers and consumers.

    With the implementation to combine with the other taxation and sales tax, the funds available is astronomical.

  19. avatar Dragonwall says:
    June 12th, 2010 at 9:02 am

    How come I copy and paste and the whole column doesnt show.

  20. avatar BrotherMouzone says:
    June 12th, 2010 at 10:35 am

    @Ross

    Happily, it has shown no inclination to knuckle under to decadent Western busy-bodies like Amnesty ( which sobbed bitter tears over Imam Samudra and co) and intends to keep and use the death penalty.

    Hang the most prominent corruptors.
    Floggings for their lesser brethren. (public? – why not?)

    Yeah, those Amnesty International guys are real scumbags… :D

    So you propose the death penalty for accused corruptors in a country where the judiciary is available for hire? Do you not see a teensy-weensy problem with that approach?

  21. avatar Dragonwall says:
    June 12th, 2010 at 12:32 pm

    Well I really must say this. Indonesian high ranking officials are like people in the silver screen potraying like those actors in movies like Burn Notice, Leverage, Human Targets.

    One thing they had overlooked is to see themselves in the mirror whether if they had sold their dignity and integrity for a few dirty dollars.

    Either get all these people indicted for what they did in passing sentence and sacked all those bastard and hire people who are really qualified with a difference. Someone should oversee them in the cross examinations, prosecutions and sentencing. If they did not perform as they were suppose to, stripped them of their qualification and bar them from practicing law.

    And one othr thing is that I find many bloggers when the find a topic that they could make fun off, they will all gather there like honey. Come up with a lot of problems that has no answer to it. When things get serious, well they shy away..pathetic.

  22. avatar Hans says:
    June 12th, 2010 at 1:07 pm

    Important may be that all contracts must be public and choice of supplier must be on a commercial basis and be made to the vendor offering the best products, services, works for the best price. yes I know it’s very large tax office.
    : If You Want People to pay tax, They Will Asked what-is my benefit: that is where the free school comes in, all want to give their children the best, and almost all have children, grandchildren. then you have to build infrastructure, municipal sewage treatment plants and do what you can to the indoor environment so people can live and live but to die just because they exist.
    Amnesty International: I sponsor them

  23. avatar Hans says:
    June 12th, 2010 at 1:11 pm

    Dragonwall (PM) Says:
    June 12th, 2010 at 9:02 am
    How come I copy and paste and the whole column doesnt show.

    http://www.filehippo.com/
    http://www.filehippo.com/download_ccleaner/

  24. avatar Hans says:
    June 12th, 2010 at 1:12 pm

    often use CCleaner and clean your system

  25. avatar realest says:
    June 12th, 2010 at 1:28 pm

    We’ve unemployment benefits o_O?

  26. avatar Hans says:
    June 12th, 2010 at 1:29 pm

    taxes generates actually works and there with also more tax revenue. so the local authority would get the wheel spinning as Indonesia would have a more pleasant investment climate, as it is now you get to be almost an idiot if you’re going to do business with this country.

  27. avatar realest says:
    June 12th, 2010 at 1:45 pm

    @Hans: Bribes !! This type of bribery actually hurts nobody. You’ll be amazed how efficient they’re when given enough incentives.

    When i was young and fiery, i wanted to be a member of the parliament. After asking my aunt on all the necessary fees including donations to the party, campaign expenses (village security, event procedures, coffee money ++) … etc, my nett income(what i can actually take home if i win) amounts to a mere average of 3+million/month. One could say it’s a sacred duty, but to me it’s under-appreciated.

  28. avatar Dragonwall says:
    June 13th, 2010 at 4:16 am

    Important may be that all contracts must be public and choice of supplier must be on a commercial basis and be made to the vendor offering the best products, services, works for the best price. yes I know it’s very large tax office.

    The Excise Law to impose a huge tax on BBM is discriminative and not based on the basic principle of taxation derivative from income. There has been no other reasons like in Singapore where land area is small so imposing a 300% import duties for things like cars is to deter those people from owning more cars. Besides that there is another 3% on consumer tax. The consumer tax is reasonable because whoever who buys it needs to pay such tax. American impose a 9% consumer tax.

    : If You Want People to pay tax, They Will Asked what-is my benefit: that is where the free school comes in,

    Each one of us is are educated enough to understand the infra on education is already existing and free school does no longer appear to us as a necessity.
    The only difference is how to reach the people! Mass Communication and not free school.
    During the Soeharto era there is the KB where it is mandatory for TV network to air the message for people to better understand the need to have the KB program. To prevent population explosion like in India and China. China is very successful in curbing the population control whereas India is not. The next country that will face population explosion will be places like Iran and Iraq.
    All it needs is for the President to issue a mandatory program for all TV station to air the need for such implementation of taxation and having people to understand how the program works.
    The Jamsostek (Jaminan Sosial Tenaga Kerja) had a big building which is a white elephant feeding people who are overpaid and under work.
    This program is suppose to be for employed people to have unemployment benefits if they join the program. But most of the time they only cater for human cargo meant for abroad. Agency charge contracted worker a fee for processing, passport and exemption of exit permit. Jamsostek receive a certain fee paid for these people to go abroad. So I should rename it as Center for Transition of Human Cargo.
    People who became unemployed after returning from abroad get a one time benefit for a certain amount and that’s it. It does not serve an unemployment purposes but a temporary relief. Just ask Din Samsuddin how he became so fat.

    Thanks for the info but doesn’t serve any purpose. What I meant is inserting of forms.

    We’ve unemployment benefits o_O?

    Well this, like I mentioned had indeed happened to Indonesia long ago as mentioned above but the implementation was meant to benefit some people, the handful of people. That’s why I called it the White Elephant.

    taxes generates actually works and there with also more tax revenue. so the local authority would get the wheel spinning as Indonesia would have a more pleasant investment climate,

    Still it is the implementation, but most of the time they got the wrong interpretation and transformation of which fell into wrong hands. You know what that means.

    as it is now you get to be almost an idiot if you’re going to do business with this country.

    So you want the better part of everything? Like getting benefits from this country and not doing business with this country!
    I am not doing business in Indonesia. I am nowhere near there. I am trying to come up with something to see if Indonesians could adopt to better the future of the economy and the people suffering what is known as the generation gap. Generation Gap has for decades been the core of Indonesia’s massive problems and the malignancy of this society. People getting more educated, reliance on the country becomes even greater, politicians and officials enriching themselves to a even more sophisticated extent, poor people get poorer the rich gets richer, investors shying away due to unenforceable judiciary systems, the system gets degraded even further, production fell, unemployment rise, consumer good burdened upon taxation had push the whole economy into a superficial hyper inflation. This superficial hyper inflation is something that Indonesian business people like most due to imposition by the government and unknown to the consumers. When inflation rate fell the price remain the same, whereas the salary remained stagnant.

    @Hans: Bribes !! This type of bribery actually hurts nobody. You’ll be amazed how efficient they’re when given enough incentives.

    Like I said Jamsostek, but that has never been implemented to what it was meant to be!
    You were right and you certainly seemed to like the way this thing works! I like my world to continue where you tsopped.

    So you propose the death penalty for accused corruptors in a country where the judiciary is available for hire? Do you not see a teensy-weensy problem with that approach?

    Whether they are for hire or not, the system should stay. If they were unable, being a Supreme Court Judge, to leash what is enforceable then something is wrong and the person should be investigated. If the person is thought to have misuse his power from “certain influence” then they should be stripped off their qualification and post. Any wrong doing found shall subject them to imprisonment.

    This is the teensy weensy problem that needs to be addressed.

  29. avatar Dragonwall says:
    June 13th, 2010 at 9:45 am

    Perhaps my posting is one too long to hard to digest! Must try another way but could be misleading. Well lets see.

  30. avatar Dragonwall says:
    June 13th, 2010 at 10:05 am

    Honestly speaking, after browsing through various blogs at IM I find that most bloggers are less interested when coming to serious topics.

    One tends to be more engross on subject that requires less innovation and creation. Well I guess that is human attitude, who cares.

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