16 August 2003
RI DID NOT SURRENDER SIPADAN, LIGITAN TO MALAYSIA, SAYS PRESIDENT
Jakarta - President Megawati Soekarnoputri said allegations that the government had failed to defend Indonesia's sovereignty over Sipadan and Ligitan islands and surrendered them to Malaysia were based on misunderstanding of the issue.
"We never lost the islands as indeed they had never belonged to us," the head of state said in her state-of-the nation address and the government explanation on the 2004 draft state budget before the House of Representatives (DPR)'s session here Friday.
According to the president, she needed to again explain the Sipadan and Ligitan issue before the House as she had learned that certain quarters considered the International Court of Justice's ruling to award the islands to Malaysia as Indonesia's loss.
The head of state pointed out that legally, the two islands had never been part of Indonesian territory.
She further said, Law No.4/1960 on Indonesian waters did not mention the two small islands.
"We thus never claimed the isles as part of our national territory," she said, adding that ever during the colonial era, the Dutch government had never claimed the two isles as part of its colonial territory.
Legal facts
Megawati however said the British government, which once colonized Malaysia, also never claimed the two isles and never put them (the isles) in its map.
The International Court of Justice had clearly made those legal facts as basis to make the decision on Sipadan and Ligitan.
The International Court of Justice in The Hague decided to grant Sipadan and Ligitan to Malaysia in December 2002.
She said, in 1997, the two governments agreed to bring their dispute about the two isles to the International Court of Justice and to accept whatever the court would decide.
On the occasion, the head of state also called on all the Indonesian people as members of a civilized nation to respect the International Court of Justice's ruling.
Based on the experience, she said, the government was stressing the importance of taking measures soon to improve the management of the national territory and efforts to set up border areas on land, sea, continental shelf and exclusive economic zone shared with neighboring countries. (Antara)
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PRESIDENT MEGAWATI ON WORLD TRADE VOLUME AND ECONOMIC GROWTH IN 2004
Jakarta - President Megawati Soekarnoputri has said that in 2004, both the global economic growth and trade volume are expected to reach higher levels, namely at 4.1 and 6,1 percent consecutively, as compared to that of this year.
In a state address before the Parliament (DPR) dealing with the bill on the state budget of the fiscal year 2003 here Friday, said that such optimism was particularly driven by the economic recoveries taking place in several major industrialized countries.
The economic recoveries are partly attributed to the world's economic stimulation policies, which contribute to the trend of deflation and decrease in the interest rate, the President said.
According to President Megawati Soekarnoputri, these developments have brought about positive impacts in Indonesia and contributed to strengthening the stability of the rupiah's exchange rate.
This has, in turn, given the opportunity to bring under control the rate of inflation and decrease the domestic interest rate, the President said.
She said that if those trends could be maintained, and the volume of the world trade could continue to increase, they will sequentially prop up the Indonesian exports.
"Although there remain several points requiring our attention, the national economic development in 2002 and the first semester of 2003 demonstrated an improving macro economic stability", President Megawati said.
The President expressed hope that when entering the year 2004, the rupiah's exchange rate will grow more stable, inflation will remain under control, the foreign exchange reserves will increase, and the interest rate will continue to rise.
The continuing conditions are also expected to enable the revitalization of the activities in the business sectors, President Megawati said.
Economic Growth in 2003
Speaking of economic growth this year, President Megawati said that by 2003, the economic growth is predicted to reach four percent.
Such prediction is based on, among other things, the continuous improvement of the domestic investment climate, which begins to be discernible from the increase in growth of the gross fixed capital formation (PMTB) of 6.4 percent within the course of the first tri-semester of 2003, President Megawati said.
President Megawati said that apart from the improving export performance in the first semester of 2003, the above prediction is also supported by the improvement in the production and employment sectors.
This includes electricity, gas and clean water sectors amounting to 6.1 percent, the property sector at 5.8 percent, the transportation and communications sector at 6.2 percent and the financial, leasing and enterprises sector at 5.7 percent, the President said.
Meanwhile, the rupiah's exchange rate against the US dollar has also shown the trend of growing stronger, particularly resulting from the increasing capital flow into the country by virtue of the programs of banking divestment and the privatization of State-Owned Enterprises (NBUMN), the improvement of the risk and macro-economic indicators and the attractiveness of the domestic interest rate, the President added.
Up to July this year, the rupiah's exchange rate has grown stronger reaching Rp 8.371 per US$ 1,00 as compared to the average exchange rate in December 2002 of Rp 8.912 to the US$ 1,00, President Megawati added. (Antara)
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PRESIDENT APPOINTS 3 CONSTITUTIONAL COURT JUDGES
Jakarta - President Megawati Soekarnoputri has appointed Prof. Achmad Syarif Natabaya, Mukti Fajar and Haryono as judges in the Constitutional Court and they would be installed on Saturday.
Justice and Human Rights Minister Yusril Ihza Mahendra said Friday, the three judges were selected by President Megawati and her aides specifically Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono, Attorney General MA Rachman and Yusril.
Achmad Syarif Natabaya is a professor at Sriwijaya University in Palembang and former head of the National Legal Development Agency.
Mukti Fajar is a lecturer at Brawijaya University in Malang, East Java, while Haryono is a member of the People's Consultative Assembly (MPR) representing East Java.
On the criteria to select the three judges among 23 candidates, Yusril admitted they were difficult to explain.
But the basic criteria were their performance and reputation in the legal sector, the minister said. (Antara)
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QUEEN ELIZABETH CONGRATULATES RI ON INDEPENDENCE DAY
Jakarta - United Kingdom's Queen Elisabeth II has conveyed her congratulations to the Indonesian nation on its Independence Day to be commemorated on August 17, 2003.
In her message sent to Indonesian President Megawati Soekarnoputri, the Queen said, "On the occasion of your National Day, I have pleasure in sending Your Excellency and the people of the Republic of Indonesia my best wishes for the prosperity and happiness of the people of the Republic of Indonesia."
The message was made available to ANTARA from the British Embassy here Friday.
The diplomatic mission of Indonesia and UK was established in 1949.
The Indonesian Foreign Ministry noted that in general, the bilateral relations between the two countries had run well.
Meanwhile, the current political issue between Indonesia and UK was recently marked by the UK's ban on the use of British-made military equipment to wipe out separatist rebels in Aceh.
The Indonesian government has since May 19 been imposing a martial law on the conflict-torn Aceh, including implementing military operations to crush the rebels.
In trade relations, Indonesia has been enjoying surplus in its trade with Britain in the past six years.
Data from the Indonesian Foreign Ministry suggest Indonesia enjoyed a surplus of US$596.1 million in its trade with Britain in 2002 compared to US$740 million in 2001 and US$950 million in 2000.
The surplus in 2002 was, however, higher than those in 1997 and 1998.
Indonesia's main exports to UK include shoes, plywood, textiles, electronics, furniture, coffee, tea, cacao and spices. while its main imports from UK are aircraft and spare-parts, machines, chemicals, vehicles and spare-parts, and medical devices. (Antara)
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PRESIDENT MEGAWATI SPEAKS OF PEACEFUL SOLUTION TO SEPARATISM
Jakarta - President Megawati Soekarnoputri has said that the Indonesian government has given emphasis to peaceful efforts to cope with the separatist movements in Aceh and Papua provinces.
Conveying the government explanation on the 2004 draft state budget at the House of Representatives (DPR) building here Friday morning, President Megawati said that the Indonesian government had opened ample opportunities for dialogues with the Aceh Rebel Movement (GAM) but in vain.
President Megawati said that in addition to holding dialogues and adopting a comprehensive and integrated development approaches, a special autonomy has also been given to the people of Nanggroe Aceh Darussalam (NAD) and Papua.
Particularly as regards the Aceh issue, President Megawati said that aside from deploying a security restoration operation, the Indonesian government was also committed to carrying out humanitarian operation, law enforcement, and fortifying the running of the administration in an integral and balanced manner.
Referring to Papua Province, President Megawati said that the security situation in that easternmost province had been increasingly improving, notwithstanding some limited security disturbances.
According to President Megawati, a variety of approaches have continued to be adopted to lead into a more positive direction.
However, in terms of politics, such step still requires further scrutiny, particularly in harmonizing the perception and vision of the special autonomy and the enlargement of the regions in that province, the President said.
The Head of State said that the Indonesian government was eager to resolve those conflicts as soon as possible in order to concentrate the nation's time and energy for development program for the sake of the people's welfare.
Territorial Integrity
Speaking of international supports, President Megawati said that the diplomatic efforts already exerted thus far had also garnered supports from the international community for the territorial integrity and national unity of the Republic of Indonesia.
"We have also received international supports when we decide upon granting a scheme of special autonomy as a final settlement to problems lingering in the Papua and NAD provinces", President Megawati said.
Generating international supports, which has lately been an important factor in the dynamics of the relations among nations, the President said, has always been one of the items of her talking agenda with the heads of state or heads of government whom she has visited or who has paid a visit to Jakarta.
Referring to the issue of Indonesia's territorial integrity, President Megawati said she found it necessary to explain about the case of the Sipadan and Ligitan islands, of which ownership, at the end of 2002 and by virtue of the decision of the international court of justice in The Hague, was accorded to Malaysia.
President Megawati said that Indonesia had never lost neither one nor both of those two islands because Indonesia had never owned them in the first place.
The islands of Sipadan and Ligitan, from the legal perspective, are indeed not and were never part of Indonesia's territory, President Megawati added. (Antara)
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RI'S GDP IN 2ND QUARTER GRRW 1.59 PCT
Jakarta - Indonesia's gross domestic product (GDP) in the second quarter of 2003 grew 1.59 percent from the previous quarter, the Central Statistics Agency (BPS) said.
"All economic sectors posted growth," BPS Chief Soedarti Surbakti said on Friday.
Compared to a corresponding period last year, the GDP in the second quarter of 2003 rose 3.76 percent, sending the cumulative GDP in the first half of 2003 to grow 3.62 percent from the same period last year, she said.
The economic growth in the second quarter of 2003 was mostly fueled by the electricity, gas and drinking water sector (4.40 percent), followed by the agriculture, husbandry, forestry and fishery sector (2.98 percent), the mining and industrial sector (1.87 percent), and the communication and transportation sector (1.6 percent).
The trade and hotel sector contributed 1.53 percent to the economic growth, the construction sector (1.53 percent), and the manufacturing sector (0.97 percent), and the financial, leasing and service sector (0.98 percent), she said.
Compared to the same period last year, the GDP in the second quarter of 2003 reflected a change without being influenced by seasonal factors, she said.
Overall, the GDP in the second half of 2002 rose 3.76 percent, she said.
If measured by the prevailing prices in the second quarter of 2003, the GDP reached Rp433.3 trillion, while the GDP based on the constant prices was Rp110.3 trillion, she said.
She said the GDP in the second quarter of 2003 was fueled by all components of spending; namely government spending (7.24 percent), household spending (1.79 percent), export of goods and services (1.46 percent) minus import of goods and services (5.76 percent).
Compared to the previous quarter, government spending in the second quarter of 2003 rose 8.11 percent, household spending (4.27 percent), imports (3.46 percent) and exports (0.41 percent), she said. (Antara)
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