RECENT ECONOMIC REPORTS

INDONESIA: ENVIRONMENT, SCIENCE &TECHNOLOGY, AND HEALTH HIGHLIGHTS 
JULY 2005

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GOI Acts after AI Human Cases

After the deaths of three Indonesians from avian influenza (AI) on July 12-14 (reftels A and B), the GOI took several comprehensive steps to stop the spread of the disease. The Directorate General of Communicable Diseases Control and Environmental Health (DCEH) of the Ministry of Health (MOH), the Directorate General of Livestock Services of the Ministry of Agriculture (MOA) and relevant local governments took coordinated action to prepare for a more serious situation. The GOI promised to monitor developments "to ward off a possible epidemic and global pandemic."

GOI actions against the spread of AI included:

• Sent an investigative team to the affected areas;
• Monitored 315 people who had contacted with the victims and took blood and mucus/phlegm samples from 70 of them;
• Isolated AI endemic areas: 3 regencies in Tangerang, Banten Province, and 4 potential endemic regencies in West Java (i.e., Sukabumi, Subang, Indramayu, and Cirebon) - only animals in these areas faced quarantine;
• Designated 44 hospitals to handle bird flu cases, distribute antiviral medicines (e.g., Oseltamivir), diagnostic kits and personal protection equipment (PPE) - however, the amount of anti-virals and PPE's is totally inadequate in the event of a crisis.
• Expanded the network system of the Early Outbreak Response System (EWORS) from 9 to 34 hospitals for hospital-based sentinel surveillance program;
• Launched a public awareness and media campaign - many criticized the GOI for its confused and contradictory public announcements;
• Allocated emergency funds of 52 billion rupiah (USD 5.3 million) for "stamping out" potentially AI-infected swine, poultry, and waterfowl in affected areas in Tangerang. The MOA also asked parliament for an additional Rp 88 billion (USD 8.9 million) to fight bird flu;
• Conducted comprehensive surveillance in AI-affected and AI- vulnerable areas;
• Conducted strict bio-security in pig and poultry farming areas;
• Provided vaccines to local/regional animal husbandry officers for small farms.

Large Forestry Revenues Expected

During a July 19 hearing chaired by Commission IV of the Indonesian Parliament (DPR), the Minister of Forestry M.S. Kaban announced that his Ministry (MOF) expects to receive significant revenues in 2005. They would largely come from taxes for reforestation (Rp 1.04 trillion - USD10.6 billion); timber royalties (Rp 868.5 billion - USD88.6 million); and logging permit fees (Rp 6.6 billion - USD 673,000). Kaban said the forecast assumed that timber production would reach eight million cubic meters in July 2005, 46 percent above the 2005 target of 5.4 million cubic meters. The Minister added that demand from reconstruction work in tsunami-stricken Nangroe Aceh Darussalam (NAD) would boost the timber production. Kaban said he expects state- owned timber firm Perhutani to increase its timber production to 26.6 million cubic meters and its non-timber production to 422,500 tons. Kaban also announced that his ministry would seek a budget allocation of Rp 1.6 trillion (USD 163 million) to help finance efforts to develop and Indonesia's timber industry.

Illegal Logging and China

During his July visit to China, President Yudhoyono reportedly asked the Chinese government for help in stopping the flow of illegal timber from Indonesia. President Yudhoyono apparently based his appeal on a joint report released last February by an Indonesian NGO TELEPAK and the Environmental Investigation Agency (EIA), an international NGO, alleging that 300,000 to 600,000 cubic meters of "Merbau" logs are illegally shipped from Papua to China every month. The report, entitled "The Last Frontier: Illegal Logging in Papua and China's Massive Timber Theft, "details the activities of illegal loggers from Papua, Malaysia, Singapore, Jakarta, and China. Kaban claimed that 10 million cubic meters of illegal logs enter China annually, costing the GOI 20 trillion rupiah (USD 2.0 billion) in lost revenues.

Putting the Brakes on Motorbikes

The Jakarta provincial administration (DKI Jakarta) is considering imposing restrictions on motorcycles in the capital due to their excessive numbers and contribution to worsening traffic and pollution. The Governor of DKI Jakarta Sutiyoso announced July 19 in City Hall that the number of motorbikes in the capital was now growing faster than that of cars. Sutiyoso reportedly modeled his decision on similar policies adopted by the Hanoi and Shanghai city governments. DKI Jakarta also plans to impose taxes on the operation of motorcycles with two stroke engines to cut down on air pollution in the capital. The Head of the City Environmental Management Board Kosasih Wirahadikusumah told us the higher taxes aimed to discourage people from using bikes.

According to City Police traffic division data, the number of motorbikes in Jakarta increased at an annual rate of about 15.72 percent during the past five years, while that of cars rose by only 7.37 percent. Thus motorcycles now account for 63 percent of the more than 6.5 million vehicles if the city, compared with 27 percent for cars and the remaining 10 percent for buses and minivans. The Indonesian Motorcycle Industry Association (AISI) estimates the sales of motorcycles nationwide will continue its steady growth due to the inadequate public transportation infrastructure, affordable loans and reasonable prices for bikes.

The New National Geology Agency

On July 5, at a Symposium on "Earthquake and Tsunami Hazards in the Indonesian Island Arc" in Bandar Lampung, the Director General for Geology and Mineral Resources of the Ministry of Energy and Mineral Resources Simon F. Sembiring announced the GOI's plan to create a new National Geology Agency (BGN). The goal is to enhance coordination in geological disaster mitigation and management. The agency's authority would encompass disaster management, spatial arrangement, and regional planning and development. The BGN will act as a one-stop shop for information on geological disasters. The Head of Sub-directorate of Geological Disaster and Mitigation Surono admitted that there had not yet been a single authority for information dissemination on disaster and disaster management.

Indonesian Students Shine Again

Fresh from their success earlier this year in the 6th Asian Physics Olympiad (4 gold, 1 silver, 2 bronze ). Indonesian students won one bronze and two gold medals in the International Physics Olympiad in Salamanca, Spain, July 3-12, 2005. Around 340 students from 76 countries participated in the scientific competition. Indonesia, which sent five senior high school students to the competition, achieved the same rank as India, Korea, and Iran, and thus finished above the United States, Germany, and Australia (one gold each). China and Taiwan (5 gold medals each), Russia (4 gold) and Hungarian (3 gold) took top honors. Meanwhile, in another science competition, Indonesian students also reached Olympian heights, winning three silver and one bronze in the International Biology Olympiad, which was held in Beijing, July 11-16, 2005. About 200 high school seniors from 50 countries participated in that Olympiad.

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