Indonesian Political, Business & Finance News

1. NAGA: 28 pt, 1 cols, 3 x 11

1. NAGA: 28 pt, 1 cols, 3 x 11

Two Tangerang
districts seek
separation

Residents of Teluk Naga and Kosambi districts have agreed to
separate from Tangerang regency and become part of Tangerang
municipality as they claimed the regency has neglected them for
years.

In an attempt to seek out ways to joining with Tangerang
municipality, the two districts recently formed a team tasked
with formulating a plan for such a merger.

"We're really disappointed with the regency administration
because they have made no serious efforts to develop the
districts. That's why we want to split from the regency," Imam
Hambali, who chairs the team, told The Jakarta Post last
Saturday.

He explained that the districts actually had numerous economic
possibilities -- including agriculture, tourism and warehousing
services -- that could be developed to improve the residents'
standard of living.

"Should those sectors be seriously developed, they will not
only improve the lives of local residents, but could also make a
huge contribution to the regency's own-source revenue," he
explained.

He said that it had been eight years since the regency
administration promised to develop tourism at Tanjung Pasir beach
in Teluk Naga district and at Dadap beach in Kosambi district.
But to date, no action had been taken.

According to Hambali, the main roads connecting the two
districts, such as the main Kampung Melayu-Teluk Naga and Kampung
Melayu-Lemo roads had been in severe disrepair for years, while
the construction of public transportation terminals in the
two districts had never been completed.

He claimed that the education sector was similarly neglected.
The regency had given no attention at all to this sector so that
many schools in the two districts were also in severe
disrepair. Several school buildings had almost collapsed but the
administration continued to turn a blind eye.

Commenting on the plans of the two district, Tangerang Regent
Agus Djunara said that people were allowed to voice their
aspiration but it would not be easy to accommodate their wishes.

However, the regent, who is coming near the end of his term,
denied that his administration had ignored the two districts,
saying that in order to improve the lives of residents, his
administration would begin the construction of 45 kilometers of
new tollway that would connect the two districts with the
airport, Tangerang and Serpong, plus a seaport in Tanjung Pasir
next year.

"We have asked an investor to conduct a feasibility study on
the new tollway and the sea port, and the study will start in
December," he told the Post, adding that if the feasibility study
was completed within one month, the construction would begin
early next year.

On school buildings, he said that other districts also faced
similar problems due to lack of money.

2. PENSION: 50 pt, 4 cols, 2 x 24

City faces overstaffed,
but poor performance

City administration agencies are overstaffed, corrupt and
mismanaged, resulting in huge numbers of complaints from a
frustrated public.

Civil servants employed by the agencies spend most of their
days reading newspapers, playing computer games, watching
television, chatting with friends or running their side
businesses, many of which involve corruption.

"I finished my jobs an hour ago, I'm free now, therefore I can
chat with my friends," said Syarief, 52, not his real name, the
head of a small division at the City's Protocol and Information
Center Bureau.

He said his office was overstaffed, causing confusion over who
did what and shortages of work to actually do.

Syarief said many staff ran side businesses during work hours,
saying their monthly salaries could not support their families.

Syarief, with the bureau for 30 years, is paid Rp 1.5 million
per month.

"Without a side business, I cannot afford education fees for
my two children studying at university."

He said his business "helped" people obtain various documents,
including land certificates and construction permits.

The previously described scenes are mirrored at central
government departments.

Jajang, 30, not his real name, lives in Serpong, Tangerang and
works for a government agency in South Jakarta.

He usually leaves home at 9.30 a.m. and returns around 4 p.m.
or 5 p.m.

"I have no specific jobs at my office, therefore I can arrive
and leave anytime. There are many employees there who can do my
job if I'm not there," Jajang told The Jakarta Post recently.

The city administration and central government are aware of
the problem. Vice Governor Fauzi Bowo said the city
administration had 21,000 people too many.

The City's figures show the excess is due to the transfer of
employees from various ministries closed by former president
Abdurrahman Wahid during his tenure from 1999 to 2001.

The transfer of teachers from the central government to the
city administration, following implementation of regional
autonomy, was also attributed to the increase.

State Minister of Administrative Reforms Feisal Tamin has said
that three million of its five million civil servants nationwide
were unproductive, unprofessional and corrupt.

To increase efficiency, the city administration was in the
process of cutting staff numbers from 96,998 to 75,000, though
the process had hit problems.

Many employees have rejected tempting early pension packages
of between 100 million and 200 million rupiah as they will lose
easy jobs with numerous fringe benefits from corruption.

Sudirham, 51, also not the real name, from the City's General
Bureau, said he would not accept the golden handshake as he would
not know what to do with the money.

City Administration spokesman Muhayat said problems with
shedding 21,000 employees was the cost of Rp 2 trillion to Rp 4
trillion in pension and redundancy packages.

Another problem was that the administration had no legal basis
to lay off staff, he said.

3. SPEAK: 28 pt, 4 cols, 1 x 41

'City should improve services if taxes up'

JP/8/speakup

The city administration announced earlier this month it was
raising the annual vehicle tax from 1 percent to 1.5 percent of a
vehicle's market price. There are currently some 3.8 million cars
and motorcycles registered in Jakarta, and vehicle taxes
represent about 80 percent of the city's total tax revenue. Some
city residents shared their objections to the increase with The
Jakarta Post.

Acep, 28, has worked as a motorcycle taxi (ojek) driver in
Cawang, East Jakarta, for 10 years. He lives in Cawang with his
wife and son:

If the city administration increases the annual vehicle tax, I
think it will burden poor people like me.

It will influence the lives of the poor. I don't own a
motorcycle. I rent one for Rp 20,000 a day. With the tax hike, I
guess the owner is likely to increase the rental fee. And I am
already finding it hard to make money, particularly during the
fasting month with fewer passengers.

I have to work all day in the heat and rain just to get Rp
30,000 if I'm lucky.

Sometimes I regret that I spent all those years in school and
now I just work as an ojek driver.

Why is it the poor who always suffer because of government
policies? We deserve prosperity, but we never get it.

Warsidi, 27, works for a cleaning service at the Kalibata
shopping mall in South Jakarta. He lives in Mampang, South
Jakarta, with his wife and daughter:

The tax increase will make the lives of the poor even harder.

Taxes always make it harder for the poor to survive. I'm not
happy about always paying taxes but never seeing the situation
get any better.

My daily income is only Rp 14,000. You can figure out how much
I make in a month. Do you think it's enough for me and my family
to live on in the current economic situation?

I don't have a motorcycle, but I worry the government will
increase all taxes. And I'm afraid public transportation fares
will be increased too.

It's not impossible that I won't be able to afford to send my
daughter to school because the taxes I have to pay are more than
my income.

On the other hand, in return for the taxes the city government
doesn't seem to provide any services for the people.

I think it's unfair that the city administration always
victimizes poor people like me. Our lives are getting harder and
harder by the day.

Festarini, 30, a housewife who lives with her husband and
daughter in Halim, East Jakarta:

I don't have any reason to disagree with the increased vehicle
tax.

Despite the burden, we have to comply with the policy. City
residents who have vehicles are deemed to be well-off. So, paying
a bit more in taxes is one of the consequences of having a car.

Besides, motorcycles are no longer considered luxury goods.
Everyone can afford them now. If they are able to afford it, they
should be ready to pay their taxes regardless of the amount.

But in my opinion, in return the city government should
provide better public services, such as health care for poor
children, and improve the infrastructure. I have seen, for
example, that the city administration has been repairing damaged
roads in the city.

I think whether or not the taxes are used for the benefit of
the public depends on how the residents see the problems here.

But I hope land, property and income taxes don't increase
because that would burden everyone.

4. EMAS: 36 pt, 3 cols, 2 x 24

Gold selling still
dull as holiday nears

Idul Fitri has always seen an increase in gold sales, with
people buying jewelry as a means to demonstrate to others that
they have been successful.

But that is a trend of the past.

Perhaps because of the financial crisis, with increasing
prices forcing people to reduce spending and the rising crime
rate making them wary of being too ostentatious, people have
toned down somewhat, especially in relation to the jewelry they
wear.

These day they apparently deem it unnecessary to deck
themselves in gold jewelry to demonstrate to others how
successful they have been in the big city.

This year, despite the relatively stable price of gold over
the last three months, gold traders in various districts of the
capital say their sales have dropped 20 percent compared to last
year.

Eva, a shop assistant at Toko Bandung, and Stefanus, the owner
of Toko Mutiara Hati in Palmerah market, Central Jakarta, said
that their shops were usually packed with customers during the
Ramadhan fasting month. Sales usually peak 10 days to five days
before Idul Fitri, when people receive their Idul Fitri bonuses.

"Last year, the number of buyers increased each week prior to
the holiday. But now our sales have dropped approximately 20
percent from last year," Stefanus told The Jakarta Post.

They said that their customers do not look for a specific type
of jewelry.

Nia, the owner of Toko Selamat on the second floor of Senen
market, Central Jakarta, said people buy either rings, bracelets
or necklaces from her shop.

"Most customers prefer 22 karat gold jewelry, of which we have
in various items. They buy items ranging from three grams to 10
grams," she said.

One gram of gold ranges in price from Rp 80,000 (US$8.90) to
Rp 95,000, depending on how many karats it is and its quality.
According to traders, the price usually jumps by Rp 1,000 to Rp
2,000 per gram two weeks ahead of Idul Fitri.

Santi, from Sukabumi in West Java, a housemaid in an upmarket
housing area in Pancoran, South Jakarta, told the Post on
Wednesday that she had bought less gold than usual this year. She
said she only bought a three gram gold bracelet for Idul Fitri.

Interviewed after buying her bracelet at Toko Bandung gold
store in Jatinegara's Mester traditional market in East Jakarta,
she claimed she bought more last year, but had sold most of it to
send money home.

"If I had the money, I'd rather buy clothes for my relatives
or have a feast at home. Moreover, I'm afraid to wear too much
jewelry because there are so many robberies on buses these days,"
she said.

One customer at Stefanus' shop, Yati, said that she often
invested in gold. Whenever she has extra money, she exchanges her
jewelry for larger pieces. "Then whenever I need money, I just
exchange my jewelry for smaller pieces plus some money in
return," she said.

Apparently, the decrease in business is not limited just to
gold shops, but also extends to stores selling imitation jewelry.

Upik, who sells imitation jewelry at Mester market, said sales
had dropped 75 percent compared to last year.

"Many returning to their hometowns for Idul Fitri celebrations
last year bought imitation jewelry. But so far this year, I've
hardly had any customers at all," she said.

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