Developing Muslim nations hatch food security plan

The Jakarta Post, The Associated Press, Kuala Lumpur | Thu, 02/26/2009 4:52 PM  

Developing Muslim countries sought ways Thursday to help their farmers boost production and prevent the global economic downturn from choking the steady supply of affordable food. 

Agriculture ministers and business officials from eight nations began a two-day meeting in Kuala Lumpur to discuss cooperation on food, including possibly setting up special funds to tackle potential problems in supply and prices. 

Malaysian Prime Minister Abdullah Ahmad Badawi said food security was "not only a prerequisite for social and economic development but also a necessary condition for domestic stability." 

"The shortfall in food production and high food prices are being compounded by the global financial crisis," Abdullah said in a speech presented by his deputy at the meeting. 

The meeting's focus was to help resource-poor farmers increase production by making high-quality seeds, fertilizer and animal feed more easily available. 

The other countries participating in the talks were Indonesia, Bangladesh, Pakistan, Iran, Turkey, Egypt and Nigeria. 

Officials from Bangladesh and Iran have said they will propose creating food banks or emergency funds to help stabilize prices and supply, including in the wake of natural disasters.

Free-Trade Deal With NZ, Australia Ready for Signing

The Jakarta Globe, Dian Ariffahmi & Teguh Prasetyo, February 26, 2009 

The Association of Southeast Asian Nations, or Asean, is set to ink a free-trade agreement today with Australia and New Zealand. The deal, dubbed AANZ-FTA, is expected to remove import duties worth $2.95 billion annually on Indonesian exports to Australasia this October, and will see tariffs gradually eliminated on a wide range of important exports from then until 2020. 

The deal will be signed at the 14th Asean summit, which was rescheduled to be held from Friday to Sunday at the Thai beach resort of Hua Hin, after it was postponed in December last year due to the political crisis in Bangkok. 

Indonesia’s textile and garment producers, pulp and paper manufacturers, furniture makers and nickel miners are all set to benefit after the agreement comes into effect in October, with Australia removing 93 percent of the tariffs it levies on imports of these products from Indonesia. 

In return, Indonesia will remove import duties and other tariffs in 2009 from five key Australian exports — salt, wheat flour, animal feed, cotton and aluminium. 

Other industries set to benefit from lower tariffs include automotive parts, electronics and agribusiness, although sectors deemed “sensitive” will only see tariffs being removed gradually between 2017 and 2020. 

Indonesian farmers will also benefit from capacity-building programs provided by Australia and New Zealand. 

Speaking about the signing of the AANZ-FTA, Trade Minister Mari Elka Pangestu said that with the agreement, Indonesia would have bilateral pacts in place with Australia and New Zealand. “This agreement is not just about commodities, but also about foreign investment opportunities and the sharing of knowledge,” Mari said in Jakarta on Wednesday. 

Indonesia is Australia’s fourth largest trading partner among the Asean nations, with bilateral trade amounting to more than $10.3 billion in 2007-08, according to Australia. 

Regarding fears among Indonesian farmers about the country being flooded by imported dairy and beef products from Australia and New Zealand, Mari said that tariffs would only be removed gradually to ensure that Indonesia’s agribusiness sector was able to grow and develop first. 

“A total of 92.98 percent of Indonesia's exports will have no tariffs on them when the FTA comes into force in October 2009, but beef and dairy products will not be included on that list,” Mari said.

For these products, the agreement would only become effective between 2017 and 2020, depending on the readiness of Indonesia’s agricultural sector, she said. 

Commenting on the benefits Indonesia will gain from the FTA with Australasia, Rahmat Gobel, a member of the Indonesian Chamber of Commerce and Industry, or Kadin, said the Australian market would be difficult for Indonesian exporters and investors — “In reality, it’s more about our Australian counterparts realizing the potential of the Indonesian market.” 

“Kadin is of the opinion that the FTA with Australia and New Zealand will pose some challenges for the industrial sector in Indonesia. We will have to work to increase our productivity and the quality of our products as the FTA will impose tighter quality requirements,” he said. 

Zero-tariff exports to be extended to Indonesia from Australia, from 2009: 

• Textiles
  
• Footwear 
  
• Pulp and paper 
  
• Nickel 
  
• Wood and furniture 

Zero-tariff exports and imports to be extended to Indonesia from Australia and New Zealand, from 2017: 

• Beef 
• Dairy 
• Automotive

MoU to net illegal fishing boats

Mustaqim Adamrah, THE JAKARTA POST, JAKARTA | Thu, 02/26/2009 10:43 AM  

Being a maritime country with abundant sea resources has apparently made Indonesian waters very attractive to illegal fishing boats. 

With fish poaching having become a threat to the state, Indonesia and Thailand are working on a memorandum of understanding (MoU) that will require cooperation between firms from both countries in the fisheries sector. 

“In our experience, all this time, many Thai fishing boats operate in Indonesia, while (the Thai government) doesn’t know about this. 

“They don’t know, for example, who owns these boats,” Maritime Affairs and Fisheries Minister Freddy Numberi told The Jakarta Post recently. 

“And when another problem comes up, say a violation, we’ll have to wait for months until it is settled,” he said. 

Therefore, he said, an MoU was necessary to ensure that stakeholders upheld their responsibilities, “and those guilty undergo all legal proceedings”. 

“The MoU will mandate cooperation in fishing and (require operators) to build (fish processing) plants in Indonesia,” said Freddy. 

The MoU would also require “openness”, with the Thai authorities also knowing of Indonesian firms that every Thai fishery firm worked with in Indonesian waters, he said. 

Rampant illegal fishing in Indonesian waters is estimated to cost Rp 30 trillion (US$2.4 billion) every year in state losses, according to calculations from the ministry. 

Many Thai fisheries firms operate in the archipelago with legal documents but allegedly do not build processing plants as required under Indonesian regulations until their licenses expire. 

The requirement for building processing plants, introduced only last year, is aimed at creating added value and jobs in Indonesia. 

When their licenses end, these firms apply for new ones and make a joint venture with a different Indonesian firm in order to wipe away their track record. This is a loophole in Indonesian regulations that may benefit them. 

But Thailand Prime Minister Abhisit Vejjajiva said Thailand is committed to abiding by the regulations in the sector, saying Thailand “is not to benefit from your resources by exploiting any kind of loopholes” in Indonesian regulations. 

“We (I and President Susilo Bambang Yudhoyono) have affirmed that Thailand will participate under Indonesian regulations,” he said recduring his recent visit to the State Palace. 

“The best way to proceed, we think, is the course of finding partners … we need to invest in the processing industry, which of course will require support for infrastructure,” he added. 

Likewise, President Yudhoyono said new joint investments on these lines would provide  examples to follow for future cooperation. 

“(Both countries) are now working on finding the right, concrete cooperation formats that will help us manage our resources better and thus, will benefit both of us,” he said. 

Presidential spokesman Dino Patti Djalal said for the time being, both governments were identifying companies willing to join in future cooperation, as suggested. 

For the industry itself, the ministry is targeting production of 4 million tons of processed fishery products out of total annual production of 12.7 million tons. 

Data shows that from 2007 to 2008, the volume of exports increased by 4.9 percent, from 854,328 tons to 896.140 tons. However, at the same time export value increased by 14 percent, from US$2.26 billion in 2007 to $2.57 billion in 2008, reflecting higher value added. 

The ministry’s short and mid term plan targets 9 percent growth in the value of exports for this year, rising to $2.8 billion. 

The ministry hopes to increase the total fisheries workforce to just over ten million this year, while also planning to increase the average income of fishermen and fisheries workers to Rp 1.5 million per month,  empowering 850,000 poor people living in coastal areas.

Related Article:

Minister Calls for Overall Maritime Policy Reforms

Letter to ASEAN Secretary-General Surin Pitsuwan

Human Rights Watch, February 25, 2009

Dr. Surin Pitsuwan
Secretary General 

ASEAN
70A Jalan Sisingamangaraja
Jakarta 12110
Indonesia 

Via Facsimile: +62 21 739 8234 

Dear Secretary General, 

We write to urge you and ASEAN leaders to use the discussions during the summit meeting from February 27 to March 1 to address three crucial human rights concerns in the region.  First, ASEAN should set a new standard to address the human rights situation in Burma. Secondly the recent tragedy surrounding the perilous exodus of Burma's Rohingya minority reveals glaring failures of ASEAN and its member countries on the treatment of refugees and asylum-seekers. Finally, the global economic downturn and the resulting impact on migrants' rights highlights how gaps in current labor and policy frameworks across the region have left millions of workers at high risk of mistreatment. 

A test case for ASEAN's fledgling Human Rights Body 

Burma's military government continues to deny its citizens' basic rights, including the rights to freedom of expression, association, and peaceful assembly. Repeated promises of democratic transition do not justify the subversion of these rights. The ruling State Peace and Development Council (SPDC) regularly arbitrarily imprisons political activists, journalists, and human rights defenders-the number of political prisoners nearly doubled following the September 2007 crackdown to more than 2,150. The government's pardoning of thousands of prisoners in September 2008 and February 2009 has resulted in only a handful of political prisoners being released, while dozens or hundreds more are arrested and sentenced to lengthy prison terms for peaceful political activities. 

The Burmese military continues to violate the rights of civilians in ethnic conflict areas by committing extrajudicial killings, forced labor, and land confiscation without due process both as part of military offensives and in preparation for mega-infrastructure projects of foreign companies. The military government also worsened economic hardship and humanitarian crises in many parts of Burma by obstructing international assistance, including the ASEAN-led international humanitarian efforts to assist more than two million people affected by the devastating Cyclone Nargis. 

The continuing serious violations of human rights in Burma reflects in part ASEAN's failure to devise concrete measures for the SPDC to adopt to improve domestic situations and conform to the core values of the ASEAN Charter, which came into effect on December 15, 2008. The ASEAN Charter commits member states to protect human rights. At the summit, foreign ministers will discuss the terms of reference for the ASEAN human rights body and this is an important opportunity for ASEAN leaders to create an independent and effective mechanism. 

We urge that Burma be a priority in the AHRB's assessment of human rights situations in member countries. Findings and recommendations should then be presented and discussed during the ASEAN Foreign Minister Meetings and the ASEAN Summits so that there will be collective action of ASEAN to respond to Burma's serious violations of international human rights law and human rights provisions in the ASEAN Charter. In addition, we urge ASEAN to use the AHRB's mandate to encourage Burma on the following issues: 

• Ratifying and implementing human rights and international humanitarian law treaties.
  
• Timely and adequate reporting to the United Nations human rights treaty-monitoring bodies.
  
• Opening the country to the United Nations Special Procedures and providing them with full assistance and access.
  
• Implementing recommendations of the United Nations treaty bodies and Special Procedures.
  
• Establishing national human rights institutions in accordance with the United Nations Principles relating to the status of national institutions (the "Paris Principles").
  
• Ensuring that human rights defenders can carry out their work unhindered. 

Asylum Seekers and Refugees in ASEAN Member States 

Recent events, when hundreds of Rohingya refugees and asylum seekers were found perished at sea trying to reach the coastlines of Thailand and Indonesia, are a wake-up call for ASEAN to change its approach in dealing with the exodus of people from Burma. The Rohingya are among millions of Burman and ethnic minority populations inside Burma who have for decades sought refuge in neighboring countries, hoping to be protected from persecution and abuses committed by Burma's military government. 

As more and more people try to escape from deteriorating conditions in Burma, ASEAN member countries cannot look the other way and close the door to those in need of assistance and protection. Horrific examples include the policy adopted by Thailand to use navy warships and maritime militias to block Rohingya boats from entering its territorial waters and tow those boats back to the high sea, and then failing to provide sufficient food and water. 

The 14th ASEAN Summit may discuss short- and medium-term measures in recipient countries to provide the Rohingya fleeing Burma shelter and access to the protection mechanisms of the United Nations High Commissioner for Refugees (UNHCR). But given the trajectory of repression and hardship in Burma, those measures, while necessary, will not be sufficient. At present, only two ASEAN countries have ratified the 1951 Convention relating to the Status of Refugees and its 1967 Protocol despite Southeast Asia's long history of both refugees and assistance for refugees. Countries like Malaysia and Thailand, have in the past assisted many refugees, but currently make no real distinction between undocumented migrants, asylum seekers and refugees, and have at times committed refoulement, the forced return of refugees to places where they face persecution, a fundamental violation of international law. 

We urge ASEAN member states to: 

• Ratify the 1951 Refugees Convention and its 1967 Protocol without delay.
  
• Incorporate the international refugee definition into domestic law and introduce asylum procedures consistent with international standards that will give asylum seekers a fair opportunity to present their claims and protect them while their refugee claims are pending. Grant rights to residence, documentation, and work.
  
• In the absence of a domestic asylum procedure that enables Burmese to challenge the grounds for their deportation, end the practice of deporting Burmese without an opportunity for UNHCR to screen them to determine if they are asylum seekers or refugees.

Migration, Forced Labor and Trafficking 

Millions of men and women from Southeast Asia work as migrants in both Asia and the Middle East, typically in domestic work, construction, manufacturing and agriculture. While migrants' labor and their earnings play a pivotal role in the economies of both their countries of employment and origin, few protections exist to avoid their exploitation. ASEAN has a critical role to play to ensure that governments establish and enforce standards to ensure that recruitment, employment, and repatriation take place respecting international human rights norms. 

Trafficking within and emanating from Southeast Asia remains a serious problem, and harsh immigration enforcement measures have served to fuel additional abuses in countries such as Malaysia and Thailand. Many migrants are deceived about their working conditions, cheated out of the rightful wages, abused by their employers, and deported without access to redress. In Thailand, migrants are vulnerable to arrest and extortion by corrupt officials, and risk exploitation, abuse and death. Migrants have told Human Rights Watch how police routinely "shake down" undocumented migrants, threatening to arrest them if they do not pay up. Decrees in Ranong, Rayong, and Phang Nga provinces have made it unlawful for migrants to go out at night, carry mobile phones or ride motorcycles. 

While some ASEAN countries have begun to establish regulations for labor recruitment, these remain inadequate and poorly enforced. For example, migrants from Indonesia are regularly charged illegal and exorbitant fees, often incurring debts at usurious interest rates. Prospective domestic workers are often locked up in pre-departure "training" centers for months. Agents sometimes deceive prospective workers about the nature and conditions of work they will perform, their wages, and the country in which they will be employed. 

Countries that employ migrant domestic workers, such as Singapore and Malaysia have failed to ensure that these workers enjoy protections such as provisions for one day off per week, overtime pay, limits on salary deductions, access to labor courts, annual leave, and other benefits. Establishing standard contracts or separate laws with weaker protections than those in existing labor laws are not a substitute for providing domestic workers equal protection under the law. 

In many cases, bilateral cooperation between ASEAN countries has failed to establish adequate protection for vulnerable migrant populations. For example, a memorandum of understanding between Malaysia and Indonesia fails to protect migrant domestic workers ability to keep their passports or to establish minimum labor standards. Regional cooperation and leadership from ASEAN can help to ensure minimum standards across the region that will avoid an unhealthy race to the bottom, as countries compete for jobs in a volatile economic climate. Furthermore, ASEAN can play an important role in facilitating mechanisms for complaints that cross international borders. In many cases, migrants are repatriated or deported before they have the opportunity to complain to authorities about mistreatment or crimes. 

Such cooperation is also critical in the fight against human trafficking. Both Malaysia and Thailand have failed to investigate allegations of collusion between government officials and trafficking gangs on the Malay-Thai border. In 2008, Burmese migrants told Human Rights Watch of being sold to criminal gangs, who charged those with money to smuggle them back into Malaysia and trafficked those who could not pay. Human Rights Watch has interviewed Burmese migrants in Thailand who confirm the trafficking allegations. They said that others working alongside them on fishing boats have been trafficked by gangs working on the Malaysian border. Other Burmese had been in Thai police lock-ups, but brokers had paid police to release them, and then sold them to fishing-boat captains. 

Immigration enforcement measures have compounded these issues.  In Malaysia, enforcement of the Immigration Act 2002 has involved mass immigration sweeps without proper screening of migrants to detect individuals in need of protection-such as refugees, trafficking victims, and workers who have been subject to abuse-and to ensure that they are not subject to penalties imposed under the Act. Malaysia has failed to address abuses against migrants by the People's Volunteer Corps (Ikatan Relawan Rakyat or RELA), the government-backed force that apprehends irregular migrants and provides security for Malaysia's immigration detention centers. In 2008, Human Rights Watch documented a pattern of abuse by members of RELA, including physical assault, intimidation, threats, humiliating treatment, forced entry into living quarters, extortion, and theft perpetrated against migrants, asylum seekers and refugees. 

We urge ASEAN member states to: 

• End the use of government-backed civilian corps to apprehend migrant workers.
  
• Ratify the International Covenant on the Protection of the Rights of All Migrant Workers and Members of their Families and bring domestic law and policy into conformity with the convention.
  
• Extend equal protection of the labor laws to domestic workers and create mechanisms for enforcement.
  
• Institute screening procedures to identify and assist trafficking victims and abused migrant workers.
  
• Strengthen regulations governing recruitment agencies, with clear mechanisms to monitor and enforce these standards, independent monitoring, substantial penalties for violations, and clear standards for recruitment fees or their complete elimination.
  
• End unlawful restrictions imposed on migrant workers freedom of movement and freedom of association.
  
• Ensure migrants have access to justice and support services-Including international cooperation to file complaints from migrants who have been repatriated or deported.
  

While ASEAN has recently declared its intention to address some of these issues through the ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers, ASEAN Declaration on Trafficking in Persons, Particularly Women and Children, and the Bali Process, concrete improvements on the ground are yet to be seen. 

We look forward to your attention to these matters of concern. 

Yours sincerely, 

Elaine Pearson, Deputy Director Asia Division 

Nisha Varia, Deputy Director Women's Rights Division

Asean Members To Sign Two Trade Pacts

BANGKOK, Feb 25 (Bernama) -- Two important trade agreements are expected to be signed at the 14th Association of South-East Asian Nations (Asean) Summit. 

Deputy secretary general for Asean Economic Community (AEC), Pushpanathan, said the agreements -- Asean Trade in Goods Agreement and Asean Comprehensive Investment Agreement -- would not only boost trade liberalisation among the ten members of the grouping but also facilitate the process. 

"The Asean Trade in Goods Agreement is a comprehensive agreement not only for trade liberalisation but will also facilitate Customs and standards," he said during a special session on AEC after the opening of 2008 Asean Business and Investment Summit here on Wednesday. 

The agreement, which will first go through a ratification process, will have clear guidelines, among others, on tariff reductions. 

He said the business community would know when certain product tariffs would be reduced. 

"There is a schedule attach to it. So, they can be prepared well ahead," he said. 

Pushpanathan said the Asean Comprehensive Investment Agreement would provide a clear timeline for investment liberalisation in line with the AEC. 

"The benefits will be extended to foreign-owned Asean-based investors," he said. 

Advice body champions benefits of brand Asean

NAREERAT WIRIYAPONG, Bangkok Post,  26/02/2009 at 12:00 AM 

Asean leaders are being asked at this weekend's summit to establish regional brands for products and services and create a standard across the region. 

Asean business leaders will also be encouraged not to slow their investments so that there are more segments being marketed to counter slow consumer spending resulting from the global financial meltdown. 

Arin Jira, chairman of the Asean Business Advisory Council (Asean-BAC), said regional brands should start with tourism-related products and services, such as fashion and hotels, to create more businesses and attract more tourists to the region. 

An example of this, Mr Arin said, would be the creation of Asean budget hotel brands which provide the same standard of service.

Also, intra-Asean trade should be stepped up while markets elsewhere slow down, notably the United States, Europe and Japan, which are major trading partners of the region, he added. 

Intra-Asean trade now is valued at US$410 billion (14.7 trillion baht), which is a fivefold increase over 1993, accounting for 25% of the region's overall trade value. 

"I think the intra-Asean trade ratio has the prospect to grow to 30-35% in the next three to five years," Mr Arin said. 

Sundram Pushpanathan, deputy secretary-general of Asean for the Asean economic community, agreed with the Asean brand concept, saying it was in line with Asean's Think Global, Act Asean initiatives. 

Mr Pushpanathan said foreign direct investment (FDI) flows to Asean totalled $63.3 billion in 2007, representing 3.5% of global FDI, with the 2008 figure expected to rise. 

However, the region had to take additional steps to stay attractive by speeding up integration and offering greater openings to the rest of the world, he said. 

The business sector had to play a key role in helping the region be more resilient to the global crisis, he said. 

"You should continue to invest to cut costs and create consumer spending," Mr Pushpanathan said. 

At the weekend Asean summit, the leaders are scheduled to endorse a comprehensive investment agreement that would basically set clear timelines for investments and industry liberalisation, he said. 

Suthad Setboonsang, former deputy secretary-general of Asean and a former PricewaterhouseCoopers partner, said intra-Asean investments had so far been limited and should be promoted. 

The Asean member countries should look at their neighbours as cooperators rather than competitors. The automotive sector, for example, should be considered by Asean countries to find out which role each nation wants to play, he said.

Philippine, Malaysian leaders to discuss Mindanao peace process at ASEAN summit

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Piracy Issue To Be Raised At Asean Summit

Bernama, February 25, 2009 15:56 PM 

PUTRAJAYA, Feb 25 (Bernama) -- Malaysia will raise the issue of piracy in the Somalian waters at the three-day 14th Asean Summit in Hua Hin, Thailand which begins this Friday. 

Foreign Minister Datuk Seri Dr Rais Yatim said pirates did not only threathen Malaysian vessels but also those of other Asean countries including Singapore. 

He said although the United Nations had passed a resolution to end piracy there the reality was that it was still widespread. 

As such Malaysia will initiate various efforts on the matter including using the summit to discuss the issue and getting agreement among Asean countries on the matter, Rais told reporters after launching two ministerial publications which were 'Asean Record' and the book 'Malaysia-Europe: Strategic Partnerships for the Pacific Century, here today. 

Rais said an anti-piracy seminar would be held in Kuala Lumpur in May to be attended by various countries and Malaysia would continue to propose constructive preventive steps to overcome piracy. 

Meanwhile, Rais said at the summit Malaysia would also attend meetings at various levels to discuss an Asean human rights body whose setting up would take at least a year. 

"We have formed a high level panel, consisting of legal experts, officials from various ministries of the member states, the Secretary-General's office in Jakarta but to date we have not accepted any specific projects, programmes, or interpretations (regarding human rights in Asean). 

"But we are quite sure that the human rights concept and implementation of its projects will have to be in conformity with the societies of Asean states," he said. 

Besides that, Rais said the delegation to be led by Prime Minister Datuk Seri Abdullah Ahmad Badawi was expected to discuss the matter of Rohingya refugees, the Asean progress map declaration for the future, and also obstacles faced by the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) which was set up in 2003. 

He said the prime minister would also be involved in various discussions on the global economic situation and suggestions and proposals from the Asean Finance Ministers' meeting on Feb 22. 

On the Asean Record published in Bahasa Malaysia, Rais said it would distributed to schools, non-governmental organisations, public libraries and the like to enhance people's understanding on Asean relations and his ministry would also have various fora on it. 

He said the book titled Malaysia-Europe: Strategic Partnerships for the Pacific Century by noted intellectual Dr Corrado Letta suggests steps to enhance and strengthen bi-lateral Malaysia-Europe relations.

U.S. to seek ASEAN cooperation on new Myanmar tack

Reuters, Wed Feb 25, 2009 12:44pm GMT  

HANOI (Reuters) - The United States wants Southeast Asian states to press for reform, openness and political progress in Myanmar, while seeking views on a new approach toward the military-ruled country, a senior U.S. diplomat said on Wednesday. 

 A worker installs a billboard in preparation for the upcoming Association of Southeast Asian Nations (ASEAN) summit at a hotel in Prachuap Kriri Khan, 200 km (125 miles) south of Bangkok February 25, 2009. The upcoming 14th ASEAN summit is scheduled to be held at the seaside resort town of Hua Hin from February 27 to March 1, 2009. REUTERS/Chaiwat Subprasom

The comments come after Secretary of State Hillary Clinton announced during a visit to Asia last week that the United States was taking a fresh look at its policy on Myanmar to seek ways to sway the country's ruling junta. 

"What we're asking of other ASEAN members really is, first and foremost, welcome their thoughts and ideas on how we can best work together," Deputy Assistant Secretary of State Scot Marciel told reporters in Vietnam. 

"And second, that they use whatever contacts and access that they have in the country to encourage new thinking and reform, increased openness and political progress," he said. 

Marciel said the U.S. goal "remains to encourage release of political prisoners, dialogue between the government and the people and the opposition, and overall progress." 

He said Washington wants Myanmar to stop "going in a negative direction." 

Washington has gradually tightened sanctions on the generals who have ruled the former Burma for more than four decades to try to force them into political rapprochement with Nobel laureate Aung San Suu Kyi's opposition National League for Democracy. 

Myanmar's opposition won a 1990 election landslide only to be denied power. Suu Kyi has been in prison or under house arrest for more than half of the past two decades. 

Clinton, however, said that neither the sanctions nor ASEAN's non-interference approach has worked, and there was a need for new thinking in Myanmar policy. 

Marciel also serves as U.S. Ambassador to the Association of Southeast Asian Nations, or ASEAN, which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. He will attend the annual ASEAN summit in Hua Hin, Thailand this weekend. 

(Reporting by John Ruwitch; Editing by Paul Tait)

2,000 furniture workers laid off

The Jakarta Post, Jakarta | Wed, 02/25/2009 9:47 PM  

Around 2,000 furniture workers were temporarily laid off following a 35 percent drop in furniture export volumes resulting from the global economic woes, tempointeraktif.com reports. 

Indonesian Furniture and Handicraft Association (Asmindo) chairman Ambar Tjahyono on Wednesday said furniture and handicraft businesses were temporarily laying off workers until export volumes improved. 

“Among the workers, around 500 of them were from furniture companies in Yogyakarta,” Ambar said. The association had made efforts to prevent the industry being adversely affected by the downturn. 

“For instance, we will sell products to new destinations like Russia, the Middle East and Eastern European countries,” Ambar said. 

Businesses had also encountered difficulties in transferring funds from banks in Russia. 

“Until now, there are no regulations on funds transfers with Russia,” Ambar said. 

Asmindo has planted 200,000 teak trees in Yogyakarta and Central Java to provide enough raw material to serve the industry for the next 15 years. (ewd)

Indonesia approves 6.15 bln dlr stimulus package

Jakarta (ANTARA News) -  Indonesia`s parliament has approved a six-billion-dollar stimulus package to protect Southeast Asia`s largest economy from the worst of the global economic crisis, lawmakers said Wednesday. 

The parliamentary budget committee approved the plan worth 73.3 trillion rupiah (6.15 billion dollars) late Tuesday after weeks of debate, amid a rash of bad economic news from some of Asia`s major economies. 

"We approved the stimulus in accordance with the government`s efforts to overcome the effects of the global slump," committee deputy chairman Suharso Monoarfa said. 

"We hope that the stimulus can prevent rising unemployment, sustain consumer spending capability and strengthen businesses." 

Japan on Wednesday posted a record trade deficit and Hong Kong said its economy would shrink by up to three percent in 2009 but regional stock markets were generally higher as investors cheered a Wall Street rally. 

Indonesia`s economy has slowed due to falling commodity prices and plunging demand for its exports from major buyers such as Japan and the United States. 

Even so, the mainly Muslim country of 234 million people is still hoping to post growth of 4.5 percent in 2009, down from a previous forecast of 6.0 percent. 

The central bank has been tapping its foreign currency reserves to prop up the rupiah, which has sunk to around 11,500 to the dollar this year compared to an earlier forecast of 9,400. 

The stimulus which will take effect from March consists of 56.3 trillion rupiah of tax incentives and 17 trillion in additional government spending and subsidies designed to boost demand, production and jobs. 

Its success or failure could be crucial to the political fortunes of President Susilo Bambang Yudhoyono as he seeks re-election in July, after parliamentary polls in April. 

"The approval for the fiscal stimulus is important progress and hopefully will benefit the people," Finance Minister Sri Mulyani Indrawati was quoted by AFP as telling  reporters Wednesday. 

"We`ll finish working on all the documents within the next five days. We hope that the legal backing will be available in early March." 

Monoarfa said the government could withdraw 44.5 trillion rupiah of six billion dollars in standby loan arrangements it has secured to help fund the budget. 

The government earlier this year secured the standby loans with bilateral and multilateral lenders including the Asian Development Bank and the governments of Australia and Japan. 

Development Planning Minister Paskah Suzetta expected the spending and incentives plan to create millions of new jobs to boost the mainstay of the Indonesian economy -- domestic demand. 

The unemployment rate is estimated at 8.4 percent compared to 8.7 percent in 2008, according to International Labour Organisation, but this is expected to rise.

"It is estimated that (the stimulus) could absorb three million workers. Especially with the extra fiscal stimulus of two trillion rupiah," Suzette said. 

Deloitte chooses Malaysia for Islamic finance hub

Kuala Lumpur (ANTARA News/Asia Pulse) - Deloitte has set up an Islamic finance centre of excellence in Malaysia to provide consultation on Islamic finance for the Asia Pacific region. This is the professional services firm's only such centre in the region and one of its three globally, together with London and Dubai. 

Deloitte's Asia Pacific chief executive officer Chaly Mah Chee Kheong said the company had started to build a team of between eight and 10 professionals to be based in the Kuala Lumpur office and would continue to recruit more. 

Deloitte's Islamic finance specialist Daud Vicary Abdullah said many traditional non-Muslim countries such as Singapore, the United Kingdom, Japan and Hong Kong have expressed interest in becoming major players in the Islamic finance industry.

Vietnam-US bilateral trade tops US$15 bln in 2008 despite crisis

Hanoi (ANTARA News/Asia Pulse) - Two-way trade between Vietnam and the US amounted to nearly US$15.3 billion in 2008, an increase of 23.61 per cent compared with the previous year, according to official figures released recently by the US Department of Commerce (DoC). 

Last year, Vietnam's export turnover to the US amounted to US$12.6 billion, a year-on-year increase of 19.6 per cent while the country's import value from the US reached US$2.7 billion, up by 46.6 per cent compared with 2007.

Vietnamese products obtaining high export growth to the US market were textile and garment items, with export value of US$5.3 billion, a year-on-year increase of 19.97 percent; wood products at US$1.5 billion, up by 18.5 per cent; and footwear at US$1.2 billion for an increase of 17.5 percent over 2007.

Memorial for Tsunami Victims Pays Tribute to Acehnese Culture

The Jakarta Globe, Nurdin Hasan, February 23, 2009 

A grand building shaped like a cruise ship stands proudly in Banda Aceh, the capital of Aceh Province. The tsunami museum cost the Aceh-Nias Rehabilitation and Reconstruction Agency, or BRR, Rp 67 billion ($5.6 million) to build and is said to represent the strength of the Acehnese in surviving the Dec. 26, 2004, Indian Ocean tsunami. 

The 2,500-square-meter museum, which stands on a 10,000-square-meter plot north of Blang Padang field, was opened by President Susilo Bambang Yudhoyono on Monday. 

Eddy Purwanto, operations deputy for BRR, said the concept for the tsunami museum was “Rumoh Aceh [traditional Aceh house] as Escape Hill.” A traditional Aceh house on stilts is a symbol of local wisdom, and has been incorporated into the museum’s design. When Aceh was struck by a tsunami, many houses on stilts were able to survive the raging water. 

“If you look at the walls of the museum, you will see thousands of people doing the s aman dance,” Eddy told the Jakarta Globe. “The philosophy behind it is that the Acehnese are a disciplined and orderly people. The saman dance is another symbol of the strength of the Acehnese.” 

In 2007, a nationwide design contest was held for architects and planning consultants. From the 125 submissions, the Acehnese jury chose a design by Ridwan Kamil, a professor of architecture from the Bandung Institute of Technology, or ITB, in Bandung, West Java Province, for its portrayal of Acehnese characteristics. 

The contours of the building, according to the jury, show the designer’s efforts to delve into the Acehnese culture and psyche. A chamber in the museum is shaped like a tapering chimney with the Arabic inscription for God written on its top. This reflects the religious nature of Aceh’s people, who believe that God holds supreme might and power over all things. 

The museum’s first floor is an open space, as is traditional in an Acehnese house. In addition to its use as a public space, the space allows floodwater and tidal waves to run unencumbered. 

The building’s exterior expresses the cultural diversity of Aceh through its use of transparent, decorative ornaments. The interior takes the visitors through a “tunnel of sorrow” that invites contemplation of the disaster. 

The museum also has an escape hill, a park on a knoll that people can run to in the event of a flood or tsunami. It also features a hill of light, in addition to a garden with space where people can lay flowers. Another memorial room is located underground, complete with an exhibition hall. 

The chimney wall will be inscribed with the names of tsunami victims. Eddy said the names had been listed by the Aceh government. “More than just a place to remember the martyrs who died in the tsunami, the museum will serve to educate people and can serve as a refuge in the event of another tsunami,” he said. 

The inner room features a two-meter-wide alley with waterfalls on both sides to simulate a tsunami. The museum also sets aside a room where visiting families can pray. A conference room has been made available for community meetings. 

The museum’s memorial hall is dimly lit in preparation for displays of electronic data. The building’s oval roof is covered with grass where visitors can sit and relax. 

To the south of the museum lies the graves of hundreds of Dutch soldiers, called Kerkhof or Peucut , who died in battles against Aceh’s armies. To the northeast lies Taman Sari, where residents often go for picnics. Some 150 meters away lies an urban forest park, Taman Putroe Pahang. In the 16th century the place used to be the bathing house of Puteri Pahang, an Aceh queen in the days of Sultan Iskandar Muda. 

Eddy said BRR had only been assigned to build the museum, at the request of the Acehnese and members of the House of Representatives in Jakarta. The contents of the museum will be supplied by the Ministry of Energy and Mineral Resources, in collaboration with Aceh’s government. 

“The initial idea [for the museum] came from looking at memorials in other countries,” he said. “There was no memorial for the many people who fell victim to the tsunami. Victims of the Kobe earthquake in Japan have their own memorial. Pearl Harbor has a museum. So we built a memorial for the tsunami victims in Aceh after we consulted with the public.” 

Eddy hopes an international trust fund will be established to ensure that the tsunami museum is properly maintained. 

Muhammad Nazar, Aceh’s deputy governor, welcomed the tsunami museum. “This is a masterpiece to be viewed not only by us, but by future generations as well. They will be grateful and proud of our generation, which has produced such a fine work for them to inherit.” 

Nazar said that in addition to becoming a historical icon with potential as a tourist destination, the museum would also serve as an educational facility that supported research and teaching about tsunamis. 

“Professional management is needed,” he said. “The Aceh government does not have the capacity to manage the museum because we are short-staffed.” 

He said that he hoped the management of the tsunami museum would involve the government of Aceh, the central government and Unesco, including a team of museum experts with international experience.  

Photo: Visitors exploring the completed Aceh tsunami museum in Banda Aceh during its inauguration on Monday. (Hotli Simanjuntak, EPA)

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Thai central bank slashes key rate to 1.5 percent

The Jakarta Post, The Associated Press, Bangkok | Wed, 02/25/2009 2:59 PM  |  Business 

Thailand's central bank has slashed its benchmark lending rate for the third time in three months as it attempts to kickstart an economy headed for its first recession in a decade. 

The Bank of Thailand's statement Wednesday says the rate was lowered by half a percentage point to 1.5 percent - its lowest level since early 2005. 

Last month, the bank cut the rate by 0.75 percentage point after a 1 percentage point cut in December. 

Southeast Asia's second-largest economy may contract as much as 1 percent in 2009 because of declining exports and weak domestic demand, according to the government's National Economic & Social Development Board.

ASEAN financial gloom to trump rights issues

The Jakarta Post, Jocelyn Gecker, The Associated Press, Bangkok | Wed, 02/25/2009 4:58 PM 

The prickly issue of human rights in Myanmar will take a back seat to the global financial meltdown as leaders of cash-strapped Southeast Asian countries meet this weekend or an annual summit. 

Ducking the spotlight will be a relief for Myanmar's military junta, which has been busy locking up dissidents and has ignored U.N. demands to free its highest-profile political prisoner, the Nobel laureate Aung San Suu Kyi. 

For the rest of the 10-nation Association of Southeast Aian Nations, the financial crisis offers an opportunity to avoid the perennial dilemma of confronting its most troublesome member and other sensitive topics. 

Thailand, which currently holds ASEAN's rotating chairmanship and is hosting the summit, is billing the meeting as a turning point for the bloc thathas long been criticized as a talk shop that forges agreements by consensus while steering clear of confrontation. 

It is the first time leaders will meet since the group signed a landmark charter in December. The document made ASEAN a legal entity and moves it a step closer toward the goal of establishing a single market by 2015 and becoming a European Union-like community. 

"This summit will mark a new chapter for ASEAN," Thailand's Prime Minister Abhisit Vejjajiva said recently. "We want to make ASEAN a more rule-based and effective organization according to the charter." 

But the run-up to the summit has showcased some of the disarray of ASEAN, which groups more than 500 million people and includes fledgling democracies, a monarchy, a military dictatorship and two communist regimes. 

Originally scheduled for December in Bangkok, the summit was postponed because of political upheaval in Thailand. Abhisit, who came to power that month on the back of the unrest, shifted the venue to Cha-am, a beach resort 200 kilometers (120 miles) south of the capital, to escape lingering protests in Bangkok. 

Senior officials start meeting Thursday ahead of the weekend leaders' summit. ASEAN's 10 members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. 

Cambodia's Prime Minister Hun Sen has already said this weekend's summit will be "a waste of time," since China, Japan and South Korea are unable to attend. Their absence means ASEAN can't lobby Asia's economic powers for financial aid. 

Philippine diplomats also say their interest in the summit has "really waned" without the three East Asian powers attending. 

Southeast Asian countries are struggling to revive their export-driven economies amid rising unemployment and fears of recession. The economies of Thailand and Singapore have already shrunk while Indonesia, Malaysia and the Philippines are grappling with rapidly slowing growth. 

Asian finance ministers agreed last weekend to form a $120 billion pool of foreign-exchange reserves to protect falling currencies. 

Among the key documents to be signed at the meeting are a free trade agreement with Australia and New Zealand and a roadmap for turning ASEAN into an EU-style bloc by 2015, as outlined by the new charter. 

Human rights issues - including the plight of the stateless Rohingya boat people who flee Myanmar and have recently washed up on the shores of Thailand, Malaysia and Indonesia - will be discussed on the sidelines but not as part of the summit's formal agenda. 

But ASEAN has no intention of formally scolding Myanmar, Vitavas Srivihok, the director-general the Thai Foreign Ministry's ASEAN department, told reporters earlier this week. 

Myanmar's junta holds more than 2,100 political detainees, including pro-democracy leader Suu Kyi.

Indonesia investment agency says FDI jumps 61 pct in Jan

Forbes.com, 02.24.09, 07:14 AM EST 

JAKARTA, Feb 24 (Reuters) - Foreign direct investment in Indonesia jumped 61 percent to 6.39 trillion rupiah ($536 million) in January from a year ago, the state investment agency said on Tuesday, despite the global economic downturn. 

Muhammad Lutfi, investment board chairman, said that the energy, infrastructure, agri-business and agriculture sectors are the main areas expected to attract foreign investment this year. 

Domestic investment rose by a third to 760 billion rupiah in January from a year ago, with total investment up 58 percent to 7.15 trillion rupiah. 

Indonesia, which holds parliamentary and presidential elections this year, has tried to make its investment climate more attractive, but analysts have warned that the country, which is a major exporter of commodities such as palm oil and rubber, could see a slowdown on the back of a slide in commodity prices. 

Investment in Indonesia rose 15.5 percent to $17 billion in 2008, below the target of around $20 billion rupiah, reflecting the worsening global economic conditions. 

The government has announced a fiscal stimulus package, including spending on infrastructure and other projects in order to boost growth and create more jobs. 

It has forecast economic growth of 4-5 percent in 2009, down from 6.1 percent in 2008.

Global Recession Will Put Asean Solidarity To Test

February 24, 2009 23:12 PM 

SINGAPORE, Feb 24 (Bernama) -- The current global economic crisis has put members of the Association of Southeast Asian Nations (Asean) to the test as to whether they will stick to commitments to their organisation. 

Singapore's Foreign Affairs Minister George Yeo said the preoccupation of its members to solve domestic economic woes following the global recession might ruin efforts to make Asean a closer community. 

He was speaking at the launch of a book entitled "The Making of the Asean Charter" at his ministry here today. The book contained contributions from many of those who were involved in drafting the Asean Charter. 

Yeo said this year would be a difficult one for all Asean member countries as no one knew how long the global economic crisis would last. 

He said: "It is not likely to be short. In the coming months, retrenchment in every Asean country will rise steeply and all governments in Asean will come under stress to a greater or lesser degree." 

The minister said under such conditions, it was natural that protectionist sentiments would rise and governments would come under growing domestic political pressure to protect jobs and to favour local businesses. 

He said Asean itself would be put to the test, and without strong leadership, individual Asean countries in their preoccupation with domestic economic problems might not follow through on commitments. 

"The political will to make Asean an ever closer community may slacken," Yeo said. 

The minister said by the time the crisis was over "the cards would have been reshuffled" with some countries surging ahead while others are left behind. 

Yeo said the question for Asean was whether the crisis would make the association stronger or weaker, and much would depend on the response of Asean leaders and their collective determination to maintain solidarity under trying conditions. 

The minister hoped the Asean Charter would help Asean member countries weather the economic crisis collectively.

Korea Joins ASEAN 'Orchestra'

By Bae Ji-sook, Koreatimes.co.kr 

Musicians from 11 Asian countries established an orchestra to play their respective traditional music together. 

Sixty-six members ― one composer and five players from each country ― will be joining. Korean members will be playing the ``daegeum'' and ``sogeum'' flutes and ``ajaen'' and ``haegeum'' stringed instruments. 

Park Beong-hoon, president of Chung-Ang University, and Prof. Joseph Peters of the National University of Singapore will lead them. 

The orchestra will perform May 24 at the Guro Art Valley Theater, with more than 600 multicultural family members invited. 

``The orchestra will be about more than playing music ― it will be an opportunity for Koreans to learn about their friends elsewhere in Asia and for Koreans to promote their country to them,'' a district official Park Jong-pyeong said. 

Other countries in the orchestra are ASEAN members Brunei, Cambodia, Laos, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. 

bjs@koreatimes.co.kr

AIG willing to cede control of Asia "jewel": sources

Reuters, Tue Feb 24, 2009 7:55am EST    

HONG KONG/LONDON (Reuters) - American International Group Inc, facing massive losses and seeking fresh funds, may be willing to give up control of its prized Asian division, worth about $20 billion, said sources with direct knowledge of the matter. 

Advisers have signaled the embattled U.S. insurer would consider a bid for a majority stake in American International Assurance Company Ltd (AIA), should buyers submit a compelling offer, the sources said on Tuesday. 

That would mark a significant shift for AIG, which had been determined to cap the stake sale of its Hong Kong-based subsidiary at 49 percent. 

AIG's majority grip on AIA is coming under increasing pressure for several reasons, sources say. 

For starters, AIG's financial situation only appears to be getting worse, a view backed by reports the company faces a massive quarterly loss and is seeking a third round of U.S. government aid. 

The prevailing argument among possible AIA suitors is that any company willing to spend around $10 billion in this brutal environment will want control, said the sources, who did not want to be named because they were not authorized to speak on the record about the process. 

First round bids for AIA are due this week, the sources added. 

UK insurer Prudential Plc is still deciding whether it will submit an offer, one source said, adding that the company would prefer to acquire a majority stake in AIA if it proceeds. 

A Prudential spokesman declined to comment on AIA, but said shareholders would expect it to examine any opportunities that conform to its objectives and financial criteria. 

Other media reports have listed U.S. insurer Prudential Financial, Canadian insurer ManuLife Financial and U.K. bank HSBC as potential suitors. 

Eamonn Flanagan, an analyst who covers Prudential Plc at UK brokerage Shore Capital, said Prudential would be able to finance a $10 billion bid for a significant AIA stake through a combination of cash from strategic investors, equity and debt. Prudential Plc's market capitalization is $10.3 billion. 

"This is a once in a life time opportunity," he said. "AIA is regarded as AIG's crown jewel." 

BALLOONING BAILOUT 

The plans to sell up to 49 percent of AIA were put in place last fall, shortly after the U.S. government saved AIG from bankruptcy in September with a rescue that has since ballooned to around $150 billion. 

Several other insurers across the globe have been mentioned as interested, including Chinese buyers, though doubts remain if they would get support from Beijing. 

Private equity firms and sovereign wealth funds could also team up or partner with a bidder, sources say. 

AIG spokesman David Monfried declined comment on whether bids are due this week for AIA. AIG is working with companies that sometimes have their own issues due to the financial crisis and so deadlines for auctions are often not hard and fast, he said. 

"We are being very deliberate on AIA because of its value and its importance," Monfried said. "We are anxious to see what the market says about the valuation of that company." 

With AIG focused on raising as much as possible from its Asian operations, smaller auctions for various AIA units across the region are off the table, the sources said. 

But the lucrative sale of a majority stake is not. AIG was hesitant to give up control of AIA early on, but not now, according to the sources. 

As in any auction, suitors could drop out or the seller could to decide to cancel or postpone the process. 

Citigroup and Goldman Sachs are advising AIG on its Asia asset sales. 

AIA has more than 2 million policies in force, according to its website, with branches and affiliates in most major countries throughout Asia outside of Japan. It has 3,800 financial services consultants and 800 staff. 

(Additional reporting by Paritosh Bansal in New York; Editing by Lincoln Feast and David Holmes)