News
Indonesia’s bid to woo investors complicated by ‘sex ban’ code
Medan, Indonesia– For years, Indonesia has strived to present itself as a welcoming investment destination, to rival neighbours Vietnam and Malaysia.
In 2016, during his first term in office, Indonesian President Joko “Jokowi” Widodo announced the opening up of dozens of industries to foreign investment in what he termed a “big bang” of economic liberalisation.Six years later, the Southeast Asian country’s controversial new criminal code – which has been blazed across international headlines, since its adoption earlier this month, due to its ban on sex outside of marriage – is raising questions about Jakarta’s commitment to fostering an open and welcoming business environment.
In Indonesia, opinion remains divided on whether the revised criminal code, which includes prohibitions on blasphemy, cohabitation, sorcery and insulting the government, helps or hurts Jakarta’s sales pitch to the world.
The Indonesian Employers Association (APINDO) has raised concerns about several sections of the code, including penalties for corporate crime, that will have a “broad impact”, and the recognition of customary law.
“For the business sector, the implementation of this customary law shall create legal uncertainty and make investors reconsider investing in Indonesia,” APINDO said in a statement provided to Al Jazeera.
APINDO also said the ban on non-marital sex will “do more harm than good, especially for the business sector engaged in tourism and hospitality”.Other industry figures have brushed off such concerns.
“Currently the government is still implementing the new criminal code. Of course, there will be some pros and cons, but there will be a three-year period before it is applied in real life,” Clement Gultom, Managing Director of Boraspati Tour and Travel, in Medan, told Al Jazeera.
“As such, I am more inclined to choose not to be aggressive towards the new criminal code,” Gultom said, adding that lawyers and activists could apply for a judicial review of the code, through the Supreme Court, if necessary.
Khairul Mahalli, Chairman of the North Sumatra Chamber of Commerce and Industry, expressed similarly upbeat sentiments.
“The function of the government is as a regulator and the function of businesses is as an operator,” he said. “We need to support the government and make sure that the new laws are coordinated at all levels of governance.”
Mahalli said bodies, such as the Chambers of Commerce, would be instrumental in connecting foreign businesses, with local partners, and ensuring the smooth continuation of businesses, after the code comes into effect.
“For now, the world of business, in Indonesia, has not been affected and is a world of opportunity,” he said.
The revised code – a complete overhaul of the code from 1918, when Indonesia was a Dutch colony – had been controversial for years, before its passage, sparking nationwide protests, in 2019. Then, as now, critics feared it would violate basic human rights and erode Indonesia’s democratic freedoms.The changes come as Indonesia has been making strides in its bid to attract investment, which includes a target of attracting $89bn in foreign investment next year.
Indonesia’s foreign direct investment (FDI) rose 63.6 percent, on a yearly basis, in the third quarter of 2022, hitting $10.83bn, according to the Investment Minister, Bahlil Lahadalia.China, Japan and Singapore were the biggest sources of investment, which was mainly driven by the development of resources processing – part of the country’s wider strategy to add value to its minerals.
Some environmental activists have suggested the revised code, far from dissuading investors, will embolden those who wish to exploit fragile ecosystems.Arie Rompas, a campaigner at Greenpeace Indonesia, said he believed the code had been ratified for the benefit of foreign investment and to silence critical voices.
“Investors will be happy because articles on environmental crime have been made easier, which is to say that environmental crimes have been made more difficult to prove in Court,” Rompas told Al Jazeera.
Rompas said many of the new laws, that critics say will restrict dissent and protest, are likely to be used against those who criticise foreign investment, particularly projects that threaten the environment.
“The potential for criminalisation actually threatens local communities and activists if they protest or criticise projects, considered strategic by the government, in cooperation with outsiders,” he said.
“This criminal code was designed to strengthen the spirit of colonialism’s legacy of exploiting natural resources, damaging the environment and silencing critical voices in civil society.”
The new criminal code places restrictions on “organising a march, rally or demonstration” and includes penalties of up to six months in prison for anyone found to have caused “a disturbance to the public interest, trouble, or riots in the community”.Other articles make insulting public authorities, and state institutions, a crime, punishable by up to 18 months in prison.
Usman Hamid, Director of Amnesty International Indonesia, said the Batang Toru Dam project, a $1.6bn China-funded hydropower business, run by Jakarta-based PT North Sumatra Hydro Energy, is an example of the kind of projects the government hopes to protect with the criminal code.The project, which began in 2017, has been controversial, from the start, due to what activists say is the threat it poses to the local Tapanuli orangutan population. Source: Al Jazeera
Latest News
Special Coordination Committee meeting for Badulla District chaired by the President
A Special Coordination Committee meeting for the Badulla District was held on Wednesday (13) afternoon at the Badulla District Secretariat under the patronage of President Anura Kumara Dissanayake to review the progress of measures taken to restore normalcy to the lives of people affected by the cyclone “Ditwah” and to develop infrastructure in the district.
As a result of the disaster situation, 90,667 individuals belonging to 26,517 families in the Badulla District were affected. A total of 77 estate houses and 507 rural houses suffered complete damage. In addition, 1,376 estate houses and 1,474 rural houses have been identified as high-risk dwellings. Accordingly, the total number of families that need to be resettled in the Badulla District is 3,434. During the meeting, the President inquired separately at divisional secretariat level about the resettlement process and the issues that had arisen.
Special attention was also given to the speedy release of state lands currently occupied by private companies, which have been proposed for resettlement purposes. The President instructed officials to commence housing construction work immediately after reaching agreement among the relevant institutions regarding the release of these lands.
The President further emphasized the need to expedite the resettlement process and stated that authorities should move beyond reports and plans and ensure that people who lost their homes gain confidence and hope in owning a new house.
The President also instructed that people who are hesitant about relocating to different lands should be given time until June 15 to make a decision.
The President separately reviewed the progress of compensation payments to affected people in the Badulla District, including compensation for loss of livelihoods, compensation for small and medium-scale business establishments, housing rental assistance and compensation for loss of life.
Attention was also drawn to the process of removing sand and rocks deposited on paddy fields and agricultural lands due to the disaster. It was decided to provide an allowance of Rs. 25,000 per acre for this purpose and to implement the programme with the support of farmer organizations.
Special focus was also given to the development of roads in the Badulla District damaged by the disaster. The President instructed that work on all 21 affected roads under the Road Development Authority be completed within this year.
The President also inquired about the programme being carried out for provincial road development and the required allocations and instructed officials to prepare and submit estimates for the necessary funding for all those roads.
The President further instructed officials not to consider financial constraints as an obstacle in restoring normal life for those affected by the disaster. President Dissanayake stated that the district should recover from the destruction caused by the cyclone within this year and be prepared to restart the Badulla District development programme from next year onward.
Also attending the meeting were Badulla District Coordination Committee Chairman and Minister of Plantation and Community Infrastructure, Samantha Vidyarathna; Co-Chairman and Uva Province Governor, Attorney-at-Law Kapila Jayasekara; Deputy Minister of Tourism, Ruwan Ranasinghe; Deputy Minister of Youth Affairs, Dinidu Saman Hennayake; Members of Parliament Kitnan Selvaraj and Ravindra Bandara; the Mayors of Badulla and Bandarawela Municipal Councils; Chairpersons of Local Councils; public representatives; the Chief Secretary of the Uva Province; the District Secretary; government officials of the Badulla District; Heads of relevant Departments; and representatives of the security forces.
(PMD)
News
SJB flays PUCSL for shifting coal scandal losses to electricity consumers
Alleging that the Public Utilities Commission of Sri Lanka (PUCSL) has shifted the massive losses, caused by the coal scam, to the hapless public, Opposition and SJB Leader, Sajith Premadasa, has questioned the conduct of the regulator, noting that it is mandated to protect the interests of both the service provider and the consumers.
Premadasa alleged that the PUCSL ignored the representations made by the SJB on behalf of local industries.
Premadasa said that the PUCSL had authorised the latest 18% increase, in response to the request made by the recently established National System Operator (Pvt) Ltd (NSO), on behalf of the NPP government.
The PUCSL was established in terms of the Public Utilities Commission of Sri Lanka Act, No. 35 of 2002. Although the PUCSL was supposed to function as a multi-sector regulator for electricity, water services and petroleum industries, successive governments refrained from bringing water services and petroleum industries under its purview.
The Opposition leader alleged that the PUCSL did the bidding of the government.
Since January this year, PUCSL has increased electricity tariffs on three occasions. The latest came into operation on 11 May.
The PUCSL consists of Prof. K. P. L. Chandralal (Chairman), Engineer Piyal Henanayake (Deputy Chairman), Dr. M.C.S. Fernando, and Lilantha Samaranayake, PhD.
Premadasa said that instead of taking tangible measures to recover the unbearable losses caused by the coal scam, the government burdened the entire country through the PUCSL.
“Don’t forget that the government is shielding its henchmen responsible for the coal scam at the expense of the country,” MP Premadasa said, pointing out that there couldn’t have been any dispute over their culpability, after the National Audit Office (NAO) found fault with the Energy Ministry for granting the tender for the supply of coal for the 2025/2026 season to a company not qualified even to participate in the tender process.
The SJB leader declared that the resignation of Energy Minister, Kumara Jayakody, and its Secretary, Prof. Udayanga Hemapala, in the immediate aftermath of Parliament defeating a no-faith motion against the Minister was meant to protect the ruling party.
The PUCSL has stated that the NSO received Rs 15 bn from the government to grant relief to 95% of the consumers. “How could the PUCSL justify unbearable electricity tariff increases for the remaining 5% of the consumers, knowing very well that it will destabilise key sectors in the economy?” a power sector expert said.
By Shamindra Ferdinando
News
Rains bring relief to debt-ridden CEB as reservoirs fill; one dead, 62 families affected by adverse weather
The widespread torrential rains currently experienced countrywide are expected to provide significant financial relief to the debt-ridden Ceylon Electricity Board (CEB) by sharply increasing hydroelectric power generation and reducing dependence on costly thermal and coal-powered electricity generation, power sector officials said yesterday.
Senior engineers of the CEB told The Island the rapid rise in water levels in major catchment areas and reservoirs had already strengthened hydropower generation capacity across the country.
Officials of the Irrigation Department confirmed that 33 reservoirs are presently spilling following continuous heavy rainfall over several parts of the island.
Among the major reservoirs spilling are Rajanganaya, Lunugamwehera, Weheragala, Deduru Oya, Nalanda and Wemedilla reservoirs, while several spill gates have been opened to release excess water due to heavy inflows into the catchment systems.
An Irrigation Department engineer said catchment areas linked to the Mahaweli, Kala Oya and southern river basins had received exceptionally heavy rainfall over the past several days.
“The inflows are extremely high. Reservoir capacities are increasing rapidly and this is highly beneficial for irrigation, water supply and hydroelectric generation,” the official said.
CEB engineers explained that the increase in reservoir storage levels would enable the Board to maximise hydroelectricity generation from major hydropower stations linked to the Mahaweli and Laxapana systems.
A senior CEB engineer said hydropower remained the cheapest electricity source available to Sri Lanka.
“Hydro generation costs are minimal compared to thermal generation. Once reservoirs fill up, we can considerably reduce expensive oil-based thermal generation,” the engineer said.
According to power sector estimates, hydroelectricity generation costs remain below Rs. 5 per unit, whereas coal-fired electricity generation costs range between approximately Rs. 18 and Rs. 25 per unit depending on international coal prices and exchange rate fluctuations.
Diesel and furnace oil-powered thermal generation are significantly more expensive, costing between Rs. 40 and Rs. 70 per unit.
CEB officials said the prevailing rainy conditions were therefore producing enormous savings for the financially-strained utility.
Daily electricity demand currently fluctuates between 45 million and 50 million units. One unit equal 1 kWh. One million units 1 GWh.
Energy sector estimates indicate that if hydropower generation replaces between 10 million and 15 million thermal-generated units daily, the CEB could save between Rs. 350 million and Rs. 900 million per day depending on the displaced fuel source.
Even replacing coal-powered generation alone could save between Rs. 150 million and Rs. 300 million daily.
“The present rains have arrived at a critical time for the CEB. Higher hydro generation means lower fuel imports, reduced thermal dispatch and major savings for the utility,” another senior engineer said.
Meanwhile, the prevailing adverse weather has also caused fatalities and damage in several districts.
The Disaster Management Centre (DMC) said one person had died while 62 families in four districts had been affected by the severe weather conditions.
The fatality was reported from the Koralai Pattu South Divisional Secretariat Division in the Batticaloa District.
According to the latest DMC situation report issued at 10.00 p.m., 17 Divisional Secretariat divisions across four districts have been affected by the disaster situation caused by the severe weather.
Some 203 persons belonging to 62 families have been affected so far, while 17 people are currently being accommodated at safe shelters.
The DMC further stated that 39 houses had been damaged due to the prevailing adverse weather conditions.
Meanwhile, the Department of Meteorology issued a red warning for heavy rains in several parts of the country.
The Met. Department said the prevailing showery conditions were expected to continue further due to the low-pressure area in the vicinity of Sri Lanka.
Very heavy showers exceeding 150 mm are likely at some places in the Western, Sabaragamuwa, Central and Northwestern provinces and in the Galle and Matara districts.
Heavy showers of about 100 mm are also likely at some places elsewhere across the island.
The Disaster Management Centre yesterday urged the public to take adequate precautions to minimise damages caused by heavy rain, strong winds and lightning during thundershowers.
By Ifham Nizam
-
News4 days agoLanka Port City officials to meet investors in Dubai
-
News1 day agoEx-SriLankan CEO’s death: Controversy surrounds execution of bail bond
-
News5 days agoSLPP expresses concern over death of former SriLankan CEO
-
Editorial6 days agoThe Vijay factor
-
News5 days agoPolice inform Fort Magistrate’s Court of finding ex-CEO of SriLankan dead under suspicious circumstances
-
Features2 days agoHigh Stakes in Pursuing corruption cases
-
Features2 days agoWhen University systems fail:Supreme Court’s landmark intervention in sexual harassment case
-
Features6 days agoPalm leaf manuscripts of Sri Lanka – 1
