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Hi, and welcome to my Indonesian expat news and real estate blog site. I hope you find the information here useful, informative, thought provoking, and perhaps good for even a chuckle or two. Please feel free to join in and participate by leaving a comment, suggestion or question. On the right side column navigation panes you will find areas for getting around on this site and some helpful links as well. To search my blog site for a topic of interest to you either use the search box in the upper left hand corner menu bar or use the blog archive on the right side column pane. Thanks for stopping by... And if you, or someone you know, is looking to buy or sell a property in Indonesia or the United States please contact me at +62.815.1000.8967

Tuesday, December 18, 2012

Indonesian Rupiah to be Re-Denominated (3 zeros at end to be cut off)

Some of my articles tend to be critical of life in Indonesia, but I also believe in giving positive and encouraging feedback as well. 



Bank of Indonesia will re-denominate the Rupiah (IDR) by cutting off 3 zeros behind the denominational bills starting in 2013.

For example: 



Rp 50.000 will become Rp 50  (approximtely $5 USD)

Rp 100.000 will become. Rp 100  (approximately $10 USD)

The current exchange rate as of the time this article was written is:   $1 USD = 9,635 IDR


This will make things so much easier!  Kudos to Bank of Indonesia for doing this!


Vehicular Travel Restrictions Into Jakarta

The newly elected Governor of Jakarta, Ir. Joko Widodo (a/k/a "Jokowi"), has enacted a new government regulation that will go into effect March 2013.

Effective in March of the New Year:

  • vehicles with even number license plates will only be allowed into Jakarta on Tuesday, Thursday and Saturday.   
  • vehicles with odd number license plates will only be allowed into Jakarta on Monday, Wednesday and Friday.
  • Sunday is free unrestricted travel for all vehicles.


Already, you can spot a huge injustice.  Those who were fortunate, by fate or other means, to already have been issued an odd number license plate will be allowed ingress to Jakarta 3 days of the week; while people who have been issued even number plates will only be allowed ingress 2 days of the week - assuming a traditional work week schedule of Monday through Friday.

For the rich and affluent (Indonesians or expats) who live in areas of Jakarta like Pondok Indah or Kemang, they can just buy another car or use another car that has the alternate odd/even license plate number as a way of circumventing this new regulation.  But those people live and/or work in Jakarta already.

But what about the less affluent people who live in outlying areas of Jakarta (such as Bekasi, Bogor, Cibubur, Citeureup, etc) and rely on vehicular transportation to work in Jakarta because there is no reliable, safe and clean public transportation system as we know it in the United States? 

As in most major metropolitan areas in the U.S., people work in the cities for the higher salaries and better job opportunities (but often cannot afford the higher rents or housing prices in the city) and must therefore live outside the city to find affordable housing.

Those people who live outside the city and must commute into Jakarta on a daily basis (and who are unfortunate to have been issued an even number license plate) will be affected and hurt the most, as they will only be allowed into Jakarta 2 days of the normal work week (Tuesday & Thursday).  You can see where this is leading....

This new ruling, like many I have seen in Indonesia, is counter intuitive and not clearly thought out.  This is going to be an absolute disaster if fully implemented in March 2013. Expect to see even further police corruption as a result of this; chaos, mass protests, demonstrations and ensuing violence erupting on the streets of Jakarta like Gunung Merapi as a result of this most ill-conceived plan.  

This is like putting a Band-Aid on a wound that requires a tourniquet.  The solution is to address and fix the GROSSLY inadequate infra-structure in and around Jakarta!

National Geographic (NatGeo) did a great piece called "MegaCities" which featured a segment on Jakarta and documented some of these woefully inadequate infra-structure issues.  The Jakarta "MegaCities" segment can be seen if you click here.   

For an idea what driving in and around Jakarta is like, click here.

The United States did do this odd/even license plate type of restriction in the late 1970's during the Carter administration; however, the restriction was on getting gasoline at the pumps and not on driving per se.  

When is the Best Time to Buy Your Airline Ticket?

 
The best time to book your flight is on a Tuesday, at least 8 weeks (2 months) before your intended trip; however, there are also last minute travel deals as well if you are prepared to up and go within days of booking your flight.  

The days of the week that you depart and arrive on also make a big difference. Generally speaking, try to avoid leaving out and returning home on a weekend day.  

The time of day can also be a factor as well. You might find that a "red-eye flight" (leaving at night and arriving in the morning - or conversely leaving at the crack of dawn and arriving at night) may give you a better fare than leaving during the middle of the day.  Be flexible with your days and times if at all possible.

Unless you're booking some last minute travel deal, booking a flight less than 2 full weeks prior to departure will be the most expensive.  Also, remember the "Goldilocks Rule" of air travel; don't book too early and definitely don't book to late.   
 

(this does not constitute an endorsement for Bank of America)



Here are some other tips:

Travel Midweek 

International travel deals are entirely based on availability and since most people travel over the weekend (Friday & Saturday); you will find the cheapest international airfare deals if you travel midweek, usually departing and returning on a Tuesday or Wednesday. 

Spend Saturday night  

Business travelers fly home on the weekend, so most discounted international airfare deals require a Saturday night stay.  So be prepared to spend Saturday at your destination (party time!)  

Don’t book too Early or Too Late  

When it comes to cheap international airfares, you have to follow the Goldilocks rule: Don’t book too early or too late. We all know that an international ticket booked with less than 3 days notice will be very expensive, but it will also be pricy if you book too far in advance. Most airlines start competing for passengers around three to four months before departure; this is known as the “Goldilocks Zone”. Search for your international airfare about three to five months out and you will be in the best position to hit the international airfare deal jackpot.  

Fly Trough the Side Door  

If your desired destination is sold out (too expensive), try flying out of a secondary international airport (Boston vs JFK or San Francisco vs Los Angeles). The same works with your destination airports; If London is sold out (expensive), try Brussels, Amsterdam or even Stuttgart. You can use the savings to book a low cost inter Europe flight to London or you can jump on the Eurostar train from Paris or Brussels.  

Fly Seasonally  

Most budget travelers never fly during high season. They take advantage of the lower airfares and decent weather during the ‘shoulder season’.  Europe’s fall shoulder season starts around September 15th and extends until the middle of November. It’s spring shoulder season starts in mid February and extends until the end of April. For the cheapest deals to New Zealand and Australia, fly in mid August, their fall and winters are quite mild and still allow you to enjoy the many outdoor adventures available Down Under. For Asia, fly from late September through November to get the lowest airfare deals. South America’s low season is anytime it’s not Christmas, New Year’s, Carnival or a school holiday.  

Use the Multiple Flights Function  

Vayama has a ‘multiple flights’ function on it’s ‘find a flight’ box. It’s a good idea to use it because it may be cheaper to fly into one city and return from another (for example; New York to London, returning from Amsterdam).  Play around with different combinations and save.  

Add a Stopover and Save  

Direct flights (those with one stop) are also cheaper than nonstop flights, particularly when you fly long haul. For example the fares for a New York to Johannesburg flight will be cheaper on airlines that add a stopover (usually in Europe, Africa or the Middle East) versus the nonstop option from New York. The same applies to long haul flights to Asia. One stop in Seoul or Taipei could shave hundreds of dollars off an India trip when compared to nonstop flights.


Sunday, December 16, 2012

Record Numbers of Americans Leaving the U.S. & Expatriating

As a result of the financial crisis and recession in the United States (which caused and set in motion a global financial crisis like falling dominoes), record numbers of Americans are leaving the United States and expatriating in other countries; either by being a "PR" (Permanent Resident) of another country, or all out denouncing their American citizenship all together.  

In what amounts to a global "Boston Tea Party", record numbers of Americans are seeking greener pastures and opportunities elsewhere in the world and are refusing to be slaves to the IRS (Internal Revenue Service). They are seeking better tax shelters or havens elsewhere in the world.  The statistics are alarming.  Thanks to groups such as America Wave, who have been tracking this "exodus" since 2005, we have a better picture on not only the root causes but also the demographics involved as well.

The process of expatriating or denouncing one's U.S. citizenship is not as simple as merely buying a one way plane ticket and leaving the U.S. It also has very serious and far reaching ramifications. See my other article, Expatriation & Income Taxes, which discusses this issue in more depth.  

(To view the text better in the charts and graphs used in this presentation, click on full screen mode in the lower right hand corner of the video window)

Tuesday, December 11, 2012

Indonesia Approves Forest Protection Plan (in Kallimantan)

Here is some great news for the orangutans! Kudos to the Forestry Minister and the government of Indonesia for this conservation effort.  Let's hope this sets a precedent or a stepping stone for further conservation efforts throughout the entire archipelago of Indonesia. 



SINGAPORE - Indonesia on Wednesday approved a rainforest conservation project that sets aside an area roughly the size of Singapore and rewards investors with trade-able carbon credits in the first of its kind to win formal backing in the country.

Four years in the making, the Rimba Raya Biodiversity Reserve will protect nearly 80,000 hectares (200,000 acres), much of it carbon-rich peat swamp forest at risk of being felled for palm oil plantations.

Russian energy giant Gazprom and German insurance firm Allianz are backers of the project, the world's first on deep peat.

A senior Indonesian official announced the approval on the sidelines of UN climate talks in Doha, Qatar. Forestry Minister Zulkifli Hasan signed a letter last week saying the project had passed all the key steps. Reuters has seen a copy.

"We hope projects like Rimba Raya will lead the way in proving that conservation can address the rural development needs of the communities and also preserve our forests for generations to come," Hasan said in a statement.

The project challenges Indonesia's often poor conservation record and lax enforcement where national parks are illegally logged. Indonesia has the world's third-largest expanse of tropical forests but these are disappearing quickly in the rush to grow more food and exploit timber and mineral wealth. Forest clearance is a major source of greenhouse gases.

By saving the forest and locking away planet-warming carbon, investors such as Gazprom will receive carbon credits they can sell for profit or use to cut their own emissions. Money from credit sales will also fund local livelihood projects.

The project area, in Central Kalimantan province on Borneo island, is brimming with rare animal species and adjoins a national park. It is designed to be a sanctuary for endangered orangutans.
Rimba Raya is part of a UN-led scheme called reducing emissions from deforestation and degradation (REDD). The aim is to show forests can pay for themselves and compete with powerful palm oil, mining and timber interests.

Sunday, December 9, 2012

The Indonesian Judiciary - Run Amok

Here is an excellent article below published in the Jakarta Post that describes the extent to which gross inequity, corruption and graft is rampant and pervasive in the Indonesian Judiciary (Courts).

When I was in Indonesia I actually had a meeting with a high ranking judge (who shall remain nameless) who wanted to set up a "referral" program with me whereby I would refer certain cases to the judge where the aggrieved party or litigant would pay a bribe for a "guaranteed outcome" of their case.  I couldn't believe what I was hearing !! I walked away from that meeting refusing to engage in any such illegal, immoral and unethical chicanery such as that.  PREPOSTEROUS & OUTRAGEOUS!! 

My editorial remarks appear in blue text.

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Through social media networks, thousands of (mostly young) judges called for a movement to save the Indonesian judiciary last month. The movement, initiated by judge Sunoto of the Aceh Tamiang District Court via a Facebook group called Rencana Peserta Aksi Hakim (Judges Action Plan), aims to save the Supreme Court from the mafia, clean up the judiciary corps, promote judges of integrity and help reform-minded judges prosper.

This movement is timely, following a series of cases plaguing the Supreme Court and the entire judiciary force, including the arrest of Corruption Court judges who were caught accepting bribes in Semarang, the ambush of a judge who was enjoying drugs and lately, the sudden resignation of a Supreme Court justice held responsible for changing a jail sentence for a convicted drug producer.

This moral call has harvested support, if not a positive response, from the public. A number of figures from the Judicial Commission, the Constitutional Court, the House of Representatives and universities have urged the Supreme Court to immediately conduct internal correction and improvement. Pressure is mounting on the court to improve its transparency, uphold justice and pay more attention to the moral integrity and capability of judges.

Public criticism and pessimism toward the country’s judiciary system apparently stem from three major problems facing Indonesian courts: low quality, inconsistency and a lack of moral integrity in judges.  (perhaps someone needs to study what is going in law schools, where ideals; principles, Code of Ethics, & Standards of Conduct should all be instilled from the very beginning!)

Concerning the first two challenges, the newly-introduced chamber system, which has come into effect since October last year, should have offered an answer. The chamber system aims to improve the quality of judgments and maintain the consistency of verdicts in similar cases. But it seems the Dutch-imported system needs much more time and a stronger commitment to take effect.

In this case, the role of outsiders is needed to help the Supreme Court maintain uniformity of judgments. (Agreed, the public needs to become more involved and demand the removal of any Justice who does not adhere to strict Code of Ethics & Standards of Conduct) In New South Wales, for example, this role is played by the local Judicial Commission whose core function is to ensure consistency in handing down sentences. This is crucial since consistency in decisions, according to former chief justice of Australian High Court, CJ Murray Gleeson, is the most important and most difficult part of the administration of justice.

As for moral integrity, which the public perceives as elusive, Indonesian judges need to act to prove their commitment to a clean justice system, something which can only start from themselves. (Wrong! It all starts in law school first) There at least four alternative actions they may take into consideration.

First, the judges have to play a role as a “broom” in their respective offices. Each judge is expected to “clean up” his or her office and prevent any irregularities from occurring. To act as a broom, they have to ensure that they themselves are “clean” before turning their attention to others. (practice what you preach)

Second, signing an integrity pact. The commitment to a clean judiciary system should be documented as proof in the form of, among others, an integrity pact. Under this pact, for instance, a judge will state his readiness to immediately step down and take punishment once she/he is found guilty of corrupt practices.

Third, playing a whistle blower role against corrupt judges. Rampant bribery and other criminal cases involving judges indicates that judges’ oversight bodies, such as the Judicial Commission and Supreme Court Supervisory Body, need more power to effectively conduct their jobs. Promoting a whistle blowing culture within the judiciary is a feasible solution.

Finally, intervention with judges’ independence, which may come from both internal and external parties, must be put to an end. Judges need legal protection from any form of intervention. A law of anti-contempt of court will help establish an independent judiciary. In this context, the Judicial Commission and Supreme Court should actively push for the enactment of the law.

Despite the challenges and weaknesses, the Supreme Court is not without its achievements. In September 2011, the Central Information Commission named the Supreme Court the most transparent among state institutions dealing with law enforcement and justice. The court is also the sixth most transparent public institution in the country.

Sebastiaan Pompe, an observer from the Netherlands, said in his article (The Jakarta Post, March 29, 2011) that the Supreme Court was the most transparent public institution in the country, given the fact that it had published tens of thousands of court judgments online. The number, Pompe said, far exceeded the verdicts published by the Supreme Courts of the US, the Netherlands and Australia combined over the past decade.  (just because you publish tens of thousands of court rulings doesn't affirm or make the Court "transparent" - you would have to go back and "audit" each case to affirm it's final case disposition and everything that transpired during the entire litigation or judicial process was "transparent", just and uniform)

It is true that corrupt judges still exist but it is not fair to judge the judiciary corps based on misconduct committed by a small number of corrupt and immoral judges. There are still many judges who are intelligent, clean and of high integrity. (You just contradicted yourself! If the majority of judges where "clean and of high integrity" then your statement should have said MOST instead of many!)

Corrupt judges must be punished severely, but make sure to give credit and reward to good judges. (I vehemently disagree! Why should we have to "reward" a person who has been appointed to a position of public trust or public office for doing the right thing which is what they're supposed to be doing in the first place!)  Let us save clean and progressive judges and protect Indonesian courts for the sake of a respected judiciary corps. (Strongly disagree again!  You should be doing this for the PEOPLE of the Republic of Indonesia and for fundamental fairness and equity in the Judiciary, and NOT do it for sake of the Judiciary itself!)

The writer is a judge at the Bekasi Religious Court and LLM candidate at Melbourne Law School, the University of Melbourne, Australia. The opinions expressed are his own. (Religious Court ?! Minister of Religious Affairs ?!  - if you had true "freedom of religion", or freedom from it, and the Gov't was more secular then all that would not be necessary, would it?)

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Here are some related articles which are clearly demonstrative of Indonesia's corrupt Judiciary: