Key perspectives in Bank Century bailout

Arkas Viddy and Eggi Sudjana , Melbourne/Sydney/Jakarta | Thu, 01/14/2010 9:32 AM | Opinion

The Bank Century bailout policy was implemented, because, as the government argued, it was necessary, otherwise Bank Century Bank would have collapsed.

When it did collapse, not only would Century customers be shocked and lose their trust in the bank, but also the customers of other banks would lose trust in other banks.

And a run on banks rush would have been the consequence. People would have withdrawn their savings en masse, which would have massively their money led to another massive crisis rush like what happened during the 1997 financial crisis.

But Let us examine the government policy based on both quantitative and qualitative approaches, to help to decide whether the bailout policy was effective or not.

First, let’s look at the decision from an economics perspective. We will use Linear Multiple Regression formulation by puttingusing the input from the bailout policy variable as a dummy variable, where a 0 score to time series before bailout policy implementation periods (before December 2008) and 1 score to time series after bailout policy implementation (December 2008 to November 2009).

In this regression the independent variables that can be used are foreign exchange reserves, rupiah against foreign currencies especially US dollar, stock exchange rate, export - import, bank liquidity, Bank Century bailout policy, while Indonesia’s economic growth is the dependent variable.

Based on Bank Indonesia’s data for for the first quarter in of 2009, Indonesia’s economic fundamentals were in a relatively stable condition in facing impacts of the global financial crisis.

Foreign exchange reserves decreased to US$50.6 billion, but this amount was still controllable and it was not significant because previously the largest Indonesian exchange reserves had been $57.1 billion in 2007, while some years earlier there had only been between $40 and $50 billion. And this was completely different to what happened during the 1997 crisis when Indonesia only had about $20 billion.

In October 2008, the Jakarta Stock Exchange was closed with the composite index at 1,256.70 — a decrease of around 31 percent compared to the month beforehand, and 54 percent below the same period one year earlier — because of impacts of the global financial crisis, but it was not because of Indonesia’s economic fundamentals.

This could be compared with the data in August 1997, when the Indonesia Stock Exchange composite
index decreased by 34 percent because of increasing of inter-bank interest rates and the rise of Bank Indonesia’s promissory note (SBI) interest rates by between about 28 and 30 percent.

During the 1997 crisis, it this rate even went to between 75 percent and 300 percent, which never happen during the 2008 global financial crisis. Inter-bank interest rates and interest rates of SBI increased, but only from 9.25 percent to 9.50 percent.

The rupiah against foreign currencies, especially the US dollar, became relatively weak and fell 16 percent to Rp 11,050/USD at the end of October 2008. But it was fluctuative.

The situation was much worse during 1997 and 1998 crisis, when rupiah fell to its lowest level — dropping 600 percent to Rp 16,000 per dollar.

Another economic fundament is the inflation rate, and we compare the inflation rates during the 1997/98 financial crisis with those of the 2008 global financial crisis.

In October 2008, Indonesia’s inflation was at around 0.45 percent, while for the whole of 2008 it was about 11 percent. During the 1997/98 financial crisis period, inflation reached 77 percent.

It could be concluded that the bailout policy for Bank Century in Indonesia was not effective and also violateds existing rules and laws.

How about from law legal perspective?

The House of Representatives’ Bank Century Iinquiry Committee should consider to use implementing the law no. 242 in their its inquiry against investigations of Vice President Boediono (in his capacity as former Bank Indonesia governor), and Finance Minister Sri Mulyani.

It also needs to consider to cross-checking data from longer-term (at least from 2006 to 2009).
The Financial Stability System Committee (KSSK) used short-term data (from 2008) to justify the government’s bailout policy.

It would also be better for President Susilo Bambang Yudhoyono to explain what he has done in relation to the issuance of the 2008 government regulation in lieu of Law on the Financial Security Network System (JPSK).

According to this Regulation, the Finance Minister and Bank Indonesia Governor can not be punished for policies they issue.

The House has refused the chapter 29 of the this Regulation and asked the government to revise
it. However, the government has maintained this regulation as the legal foundation for the bailout decisioning of Bank Century, without any correction as requestedired by the House.

It is ridiculous that the government spent Rp 6.7 trillion from state coffers to bailout the bank.

Alternatively, this huge sum could have been spent in establishing around 6,700 school buildings,
or paying the yearly salaries of 200,000 teachers , where they each receive Rp 2.8 million For their a monthly salary.

The House’s committee must be able to acquire and use all necessary evidences from the Supreme Audit Agency (BPK) and the Financial Transaction Analysis Report (PPATK), to make sure that it would be able to issue the strongest legal recommendation.


Arkas Viddy, PhD is an international economy researcher in Australia.

Dr. Eggi Sudjana is a lawyer.

Gus Dur as a defender of pluralism, religious freedom

Muhammad Ali , Riverside, CA | Wed, 01/06/2010 9:31 AM | Opinion

Pluralism has always been a contentious issue, but Abdurrahman “Gus Dur” Wahid worked beyond passive tolerance. He advocated the creation of a public space for communication, dialogue and cooperation between the mainstream and the marginalized.

Raised in a pesantren (Islamic boarding school) and Nahdlatul Ulama (NU) tradition, but also in Western and Eastern traditions, Gus Dur became the advocate of a reform rooted in the traditions.

He received awards and honorary positions from Shimon Peres, Temple University, for his con-tinued advocacy for the rights of minorities in Indonesia, and many others.

He was the president of the Non-Violence and Peace Movement, a board member of the International Strategic Dialogue Center in Israel, Interreligious for Reconciliation and Reconstruction in London, and one of the founders and board members of the Shimon Perez Center for Peace in Israel. He has been regarded by many in the world as a true defender of pluralism.

Christian scholar Th. Sumartana calls Gus Dur a consistent interpreter and giver of meaning to pluralism as both reality and norm.

He underwent a religious and intellectual evolution from being an “extremist”, who viewed Islam as an alternative to the West, to being an “eclectic cosmopolitan”, who saw Islam as a way of life that learned from nonreligious and other religious ideas.

For him, religious pluralism was a new concept nonexistent in the writings of classical and medieval Muslim scholars, but the absence of the term did not mean Islam was not pluralistic.

For him, pluralism was both descriptive and prescriptive. It meant awareness that Muslims were diverse and people were religiously diverse, believers and nonbelievers.

Pluralism awareness could only come from a nation without a formalized religious system. He reasoned that because the Koran guaranteed religious freedom and no compulsion in faith, the state should not engage in making any one religious interpretation superior over others.

He asked, rhetorically, “Isn’t it that God and his messenger promote a universal brotherhood [persaudaraan manusia]?”

For Gus Dur, pluralism also meant accepting that everyone had the right to be exclusive as well as inclusive.

Muslims’ claim of truth is not unique, as the Second Vatican Council stated they respected everyone’s right to reach their truths, but they believed the truth was in the Roman Catholic Church. Competing truth claims are normal. Gus Dur said, “That is clear.

“And Islam is also clear. We will not be shaken in our tauhid concept, but we respect other faiths. Our founding fathers, although mostly Muslims, were able to accept other concepts of God, and worked out to agree on the basic concept of One God for Indonesia.”

In 1995, Gus Dur said, “Essentially all religions are the same as they are revealed by God in order that human beings from different origins, cultures and trajectories may love each other and in order that they may uphold morality, mercy and solidarity.”

He emphasized Islamic universalism in different aspects (belief, law and ethics), addressing humanness (insaniyya), including human equality and human rights.

At the same time, Islam is open to different cultural manifestations and intellectual insights from other civilizations.

This creative Islamic cosmopolitanism, in his view, had been achieved at its peak when there was a balance between Muslims’ normative orientations and freedom of thought given to all peoples, including non-Muslims.

For Gus Dur, a kafir was not just one who denied God’s truth, but also one who could be a believer but denied God’s blessing. “Kafir doesn’t necessarily mean non-Muslim,” Gus Dur said, but rather unbelievers who attacked Islam, in that context nonbelievers in Mecca. There was a difference, he went on, between non-Muslims and the offensive kafir, the categorical kafir.

To Gus Dur, the Koran was clear in affirming religious freedom. Concerning apostasy or irtidad, he was aware of the traditional view that it be punishable by death, but warned one should not compromise the Universal Declaration of Human Rights and Indonesian contexts.

He wrote, “If capital punishment were to be applied in Indonesia, there would be more than 20 million people killed because of their conversion from Islam to Christianity since 1965.” Therefore, he urged reform in Islamic law in accordance with time and place.

Gus Dur also promoted the idea of localization (pribumisasi) of Islam, rather than “Arabization”,
although he was well versed in Arabic. By the Indonesianization of Islam he meant the blending of
Islamic beliefs and values with local culture.

“The source of Islam is revelation, which bears its own norms. Due to its normative character, it tends to be permanent. Culture, on the other hand, is a creation of human beings and therefore develops in accordance with social changes.

This, however, does not prevent the manifestation of religious life in the form of culture,” he said.

Islamic ecumenism, borrowed from historian Arnold Toynbee, Islamic universalism or cosmopolitanism, was for Gus Dur based on the five objectives of Islamic law (of al-Shatibi): protection of life, protection of belief, protection of family and future generations, protection of property and protection of mind. The rule of law and certainty must guarantee fair and just treatment for all citizens, without exception.

He believed that through free and open dialogue, truths could be reached by those participants who had “healthy and common reason”.

In dialogues, one must be sincere in seeking and keeping truth and in thinking and expressing views.

Intolerance comes from religious illiteracy and narrow-mindedness. For instance, one who likes to mock the deities of others is religiously illiterate.

Gus Dur quoted the Koran: “You should not mock the gods of others because when you mock them then it means you mock your own god.”

Gus Dur was a consistent defender of the Pancasila, and saw the Religious Affairs Ministry as a political compromise between the Islamic state and the purely secular state. Muslims do not have the obligation to establish an Islamic state.

His progressive thinking, advocating democracy, religious tolerance and human rights, have become influential among younger, progressive NU and non-NU activists, liberal intellectuals, NGOs, Christians and Chinese, Ahmadiyah sect leaders, businesspeople and more. Rest in peace, Gus Dur!


The writer wrote a master’s thesis on Gus Dur’s religio-political thought. He is now an assistant professor at the Department of Religious Studies, University of California, Riverside

http://www.thejakartapost.com/news/2010/01/06/gus-dur-a-defender-pluralism-religious-freedom.html

see you in heaven GUSSSS..

The danger of diabetic complicated, Gus Dur dies cause by diabetic complication

One of the main causes of Indonesian former President Abdurrahman WahidAbdurrahman Wahid dies last Wednesday, December 30, 2009 was his complicated diabetic which straight his other organ vital such as his heart failure, kidney, and glaucoma. That is why Gus Dur practically blind cause by his glaucoma.

Medical experts, according to the Diabetic net report, believe that two defects are necessary to get Type 1: an imbalance in the immune system plus exposure to a toxin, such as a virus or an environmental toxin that causes insulin or the beta cells to become a target for an immune system that is out of balance. One part of the puzzle appears to be heat shock proteins that, despite their unusual name, are involved in the proper folding of the insulin molecule into its natural, active form. When heat shock proteins get damaged or sidetracked during a viral or toxic event, insulin may be released into the blood with abnormal shapes that then attract the immune system. A gradual destruction of the beta cells begins. After many months to a few years, when only 10% of the beta cells are left to make insulin, the blood sugar abruptly rises. Symptoms then begin to develop.

Genes play a role in placing a person at risk for developing Type 1 Diabetes. The strongest genetic links are associated with the HLA-DR and HLA-DQ regions of DNA. These regions are 10 times more strongly linked to Type 1 diabetes than any other genetic region, but they account for only one third of the total risk. Most people who have these genes will never develop diabetes and many others who do not have them will develop it. When both parents have Type 1 diabetes, there is only a 20% chance that a child will get it. About 70% of those who develop Type 1 diabetes have a weak inheritance pattern or seemingly none at all. Most often, only one person in a family will have Type 1 diabetes.

Risk Factors For Type 2 Diabetes

The National Institutes of Health (NIH) recommends that people age 45 and older consider getting tested for diabetes, and the American Diabetes Association (ADA) suggests a routine test every three years for those over 45. If you are over 45 and also overweight or obese, a major risk factor for type 2 diabetes, more frequent testing may be necessary.

You should also consider talking to your doctor about testing at any age if you are overweight and have one or more of these risk factors:

- A parent or sibling with type 2 diabetes.

• Being of African American, American Indian, Asian American, Pacific Islander, or Hispanic American/Latino descent.
• A history of gestational diabetes, or having at least one baby weighing more than 9 pounds at birth.
• Blood pressure of 140/90 mm Hg or higher.
• HDL cholesterol ("good" cholesterol) levels of 35 or lower and/or triglyceride levels of 250 or higher.
• Living a sedentary (inactive) lifestyle (i.e., exercising less than three times a week).

Diagnosis of Diabetes

One method of diagnosing diabetes is using the Fasting Plasma Glucose(FPG) test. This test measures blood glucose levels after fasting. Normally, fasting causes the plasma glucose levels to rise. In people with diabetes, the body will produce and process insulin to counteract the rise in glucose levels. In people without diabetes, this does not happen and levels will remain high. The ADA recommends having this test administered in the morning because you must fast 12 to 14 hours before the test is given. Also, test during the afternoon tend to give lower readings. This test consist of having blood drawn and tested for glucose levels by your doctor. A fasting blood glucose level between 100 and 125 mg/dl signals pre-diabetes. A person with a fasting blood glucose level of 126 mg/dl or higher has diabetes.

Another method is the Oral Glucose Tolerance Test (OGTT). In the OGTT test, a person's blood glucose level is measured after a fast and two hours after drinking a glucose-rich beverage. If the two-hour blood glucose level is between 140 and 199 mg/dl, the person tested has pre-diabetes. If the two-hour blood glucose level is at 200 mg/dl or higher, the person tested has diabetes.

That is why for the peoples who got a diabetic for more than 10 years, possibly he become an impotent. But, do not worry, the sophisticated newly medical pills prescription was found such as Viagra, Cialis and Levitra. But, event you still enjoy your sex life with your wife event you got a diabetic, but other complicated diabetic diseases still waiting, like a stroke, glaucoma, kidney failure, heart failure and other related diabetic complicated.

Gus Dur before he dies was three times a week to curing of dialysis his blood in Cipto Mangunkusumo Hospital. When the Doctor Judge you that you’re Kidney was failure cause by Diabetic complication, your doctor probably will advise you to curing your blood. For the rich peoples to curing the blood is do not matter, but for the majority of Indonesia whose still live below poverty line is the matter. Mostly poor peoples who get a diabetic and cause a complicated on their kidney failure, they just wait the ‘’Angel’’ to bring their soul to visit another world ‘’Here after’’.

http://books.google.com/books?id=96k2HzQVnBoC&lpg=PP1&ots=1bBkjIZ2vw&dq=gus%20dur&pg=PP8#v=onepage&q=&f=false

SBY Setuju Gus Dur Dianugerahi Gelar Pahlawan Nasional

JAKARTA - Presiden Susilo Bambang Yudhoyono (SBY) setuju dan akan mempertimbangkan masukan sejumlah pihak untuk menganugerahi almarhum KH Abdurrahman Wahid alias Gus Dur gelar pahlawan nasional. Namun, presiden tetap memperhatikan sejumlah syarat administrasi penganugerahan gelar tersebut.

Sesuai UU No 20/2009 tentang Gelar, Tanda Jasa, dan Tanda Kehormatan yang baru disahkan pada Mei tahun lalu, masukan nama calon pahlawan nasional harus dibahas lebih dulu. Yakni, oleh Dewan Gelar, Tanda Jasa, dan Tanda Kehormatan yang hingga kini belum terbentuk.

"Tentu presiden sudah mendengar usul berbagai pihak. Presiden menghargai dan menerima pernyataan seperti itu dan menjadi masukan buat presiden. Namun, presiden tetap mengacu UU No 20/2009 yang telah disetujui bersama DPR," kata Juru Bicara Kepresidenan Julian Aldrin Pasha kemarin (3/1).

Dengan adanya Dewan Gelar, lanjut dia, kewenangan penuh penentuan pahlawan tidak lagi di tangan presiden. Usul dari masyarakat, termasuk pemda, harus disaring lewat Dewan Gelar.

Julian mengatakan, dengan masukan dari DPR, Dewan Gelar segera terbentuk. Jika Dewan Gelar terbentuk, penganugerahan gelar pahlawan nasional tidak harus dilaksanakan menjelang perayaan hari kemerdekaan sebagaimana yang lazim dilakukan sebelumnya. "Dewan Gelar itu bekerja lima tahun. Jadi, saat sudah dibentuk, mereka bisa langsung membahasnya," kata Julian.

Meski demikian, Julian mengakui bahwa Gus Dur merupakan tokoh khusus. Karena itu, sangat mungkin presiden ke-4 RI itu diberi gelar di luar nomenklatur yang ada dalam undang-undang. "Tapi, saat ini kita berpedoman dengan undang-undang dulu," kata Julian.

Dewan Gelar dibentuk presiden melalui keppres. Dewan itu terdiri atas dua orang dari kalangan akademisi, dua orang dari militer, dan tiga orang sisanya dari tokoh yang pernah meraih tanda kehormatan.

Terkait syarat administrasi tersebut, Fraksi PKB siap memulai langkah nyata dengan mengirimkan surat resmi permohonan pengangkatan Gus Dur sebagai pahlawan kepada presiden RI pada hari ini (4/1).

Bagi fraksi beranggota 28 orang di parlemen itu, almarhum sudah sangat memenuhi syarat. Baik syarat secara umum maupun khusus seperti yang diatur dalam pasal 24, pasal 25, dan pasal 26 UU No 20/2009. "Sebagai pelapor awal, kami akan mulai langkah konkretnya," ujar Ketua FPKB Marwan Ja'far di Jakarta kemarin (3/1).

Selain itu, FPKB akan mendorong pimpinan DPR dan semua fraksi mengirimkan surat resmi yang sama. Menurut Marwan, hanya melalui mekanisme seperti inilah presiden memiliki cukup data dan alasan secara legal formal untuk memproses pemberian gelar tersebut.

Atas dukungan dan usul banyak pihak selama ini, Marwan menyatakan, pihaknya secara khusus memberikan apresiasi tinggi. "Ucapan terima kasih juga kepada pemerintah yang telah merespons dengan baik tentang itu," tambahnya.

Sekjen DPP PDIP Pramono Anung mengatakan, melalui fraksinya di DPR, PDIP akan mendorong pengajuan gelar pahlawan untuk Gus Dur menjadi usul resmi DPR. Persoalan ini disampaikan melalui sidang paripurna DPR hari ini.

''Agenda paripurna besok (hari ini) memang hanya pidato pembukaan masa sidang DPR. Tapi, nanti di sana FPDIP mengusulkannya melalui interupsi agar gelar pahlawan untuk Gus Dur segera dibahas agar menjadi sikap resmi,'' kata Pramono yang juga wakil ketua DPR itu.

Menurut dia, dalam penetapan gelar pahlawan nasional ada mekanisme yang harus diikuti. Prosesnya mengacu kepada UU No 20/ 2009. PDIP sendiri, imbuh dia, sudah mantap mengusung Gus Dur sebagai pahlawan nasional. ''Kami mendapat arahan langsung dari Megawati untuk mendorong ini,'' tegasnya. Keseriusan itu sama sekali bukan karena Megawati pernah menjadi Wapres saat Gus Dur berkuasa. Tapi, benar-benar karena ajaran Gus Dur memberi konstribusi besar bagi bangsa dan negara.

''Mulai komitmennya membangun demokrasi, pluralisme, melindungi kelompok minoritas, diplomasi umat Islam Indonesia di level internasional yang menampilkan wajah Islam yang ramah, harus diakui Gus Dur punya jasa besar,'' bebernya.

Di tempat terpisah, Ketua FPAN Asman Abnur juga siap mengajukan surat resmi untuk ikut mendorong gelar pahlawan nasional bagi Gus Dur. Menurut dia, FPAN sepakat Gus Dur berhak menyandang gelar tersebut. "Tentu, jika diperlukan, kami akan ikut kirim surat," ujarnya.

Namun, dia mengingatkan, derasnya dorongan sejumlah pihak selama ini tetap harus disikapi dengan arif. Pengajuan harus dilakukan dengan hati-hati dan sesuai prosedur. "Jangan grusa-grusu. Nanti malah ada kesan ada unsur rekayasa atau sebagainya, karena gelar pahlawan ini memang agak sensitif," tandas Asman.

Desakan mengajukan Gus Dur menjadi pahlawan nasional telah membangkitkan keinginan Golkar yang lama tertunda untuk menjadikan presiden ke-2 RI Soeharto mendapat penghargaan yang sama. Mereka siap mendukung upaya menjadikan Gus Dur, tapi harus disertai menjadikan Pak Harto pahlawan pula.

"Kami siap-siap saja mendukung. Tapi, jangan lupa, Pak Harto juga sudah berbuat banyak untuk rakyat. Beliau juga berhak," tegas Ketua FPG Setya Novanto kemarin.

Menurut dia, sebagai bapak pembangunan dan ekonomi, jasa presiden yang meninggal awal 2008 itu tidak boleh dilupakan. "Fraksi-fraksi sudah sepatutnya ikut mendukung," tambahnya.

http://www.jawapos.co.id/ today.