Sunday, January 17, 2016

Jokowi under pressure to revamp terror laws after Jakarta attack

Jokowi under pressure to revamp terror laws after Jakarta attack

[JAKARTA] The first Islamic State-linked attack on the world's most populous Muslim nation puts more pressure on Indonesian President Joko Widodo to give the military a bigger role and add legal heft to anti-terrorism efforts.
Unlike some countries facing threats from Islamic State, authorities in Indonesia lack laws to arrest returnees from Syria and Iraq.
Giving security forces greater leeway to lock up Islamists is a sensitive issue in the Southeast Asian nation, which until 1998 was a military dictatorship.
Last week's attack on central Jakarta which killed four civilians was relatively unsophisticated.
But it brought home to Indonesia - and the region more broadly - the risks of Asians going to fight in the Middle East and then returning skilled and more radicalised. While Mr Joko, better known as Jokowi, has urged countries to "wage war" against terrorism, he has not moved to bolster laws to tackle the threat.
"All that is needed is political support, but that is difficult in Indonesia," said Ansyaad Mbai, a former head of the country's anti-terror agency. "At the highest level people are afraid of being accused of being anti-Islam."
REVOKING CITIZENSHIP
On Friday, Police-General Badrodin Haiti said he wanted to be able to revoke the citizenship of Indonesians fighting with IS abroad. National intelligence agency chief Sutiyoso said laws were not sufficient to arrest and track extremists.
He said Malaysian authorities can attach electronic tracking devices to suspects, while the US and France were able to strike a balance between human rights and the need for firm action.
"Those countries respect human rights and freedom," he told reporters. "But when national security is threatened by terrorism, they can prioritise the intelligence process."
The police chief on Saturday called for anti-terrorism laws to be strengthened to allow preventative detention. "We can detect a terrorist network but we can't act before they have committed a crime," he said. "That is the weakness of our laws."
ECONOMY, JOBS
Revising the law requires getting it through parliament, a slow-moving body where the opposition has significant clout and which includes Islamic parties that could oppose giving police more powers.
Since taking office in October 2014, Mr Joko has largely stuck to a campaign pledge to focus on everyday issues like the economy, health and jobs. The brazen gun and bomb attack less than two kilometers from his office could change that. Even so, when Rizal Ramli, coordinating minister for maritime affairs, was asked if there had been any talk at cabinet level on revising anti-terror laws or issuing an emergency regulation, he replied "not yet."
If Mr Joko gives greater powers to the army it could see it more involved in clamping down on those with radical views. It could also strengthen the military's hand in the public sphere.
There are already concerns Mr Joko has allowed it a greater role in order to shore up his administration.
Coordinating Security Minister Luhut Panjaitan, a former army commander, is one of Mr Joko's trusted advisers in the cabinet.
Under Suharto, the military had a broad internal security role and was implicated in human rights abuses during crackdowns on separatists, Islamic activists and democracy advocates.
It was curtailed after the fall of Suharto, but still jostles for influence with the police, including in Central Sulawesi, a remote eastern province where a small band of militants loyal to Islamic State are based in jungle hideouts. The army has been pushing to take over counter-terrorism operations from the police.
OPERATIONAL INVOLVEMENT
"President Jokowi has stressed the need for the police and military to work together on terrorism prevention, but the TNI has long wanted more operational involvement," the Institute for Policy Analysis of Conflict said in a report in May. "Each of the three services within the TNI - army, navy and air force - has a highly trained CT detachment as part of its special forces unit, but they are rarely employed."
Indonesia, where most people practice a moderate form of Islam, has struggled against a violent radical fringe seeking the imposition of Shariah law since independence in 1945.
A group of militants, many of whom trained in al-Qaeda camps in Afghanistan, staged large-scale bombings against mostly Western targets in the 2000s, prompting a crackdown that severely weakened the movement.
'GREATER ATTENTION'
Last month, Mr Joko's government rejected an appeal by Saudi Arabia to join its coalition against IS, saying it lacked details. A devout Muslim himself, Mr Joko has spoken out against extremism, but his rhetoric and action against drug smugglers, for example, has been more pronounced.
"Up until now, Jokowi has remained disengaged in defence and security matters relative to domestic issues such as boosting economic growth and improving infrastructure," said Natalie Sambhi, an Indonesian defense analyst at the Australian Strategic Policy Institute. "Jokowi will be forced to pay greater attention to this issue."
Money for Thursday's attack was sent by an Indonesian militant, who was released from jail in 2012 and is now in Syria, said Haiti. One of the attackers had been convicted of attending a militant camp and was released from jail in Jakarta last year, said Haiti.
Since the early 2000s, the Indonesian government has funded nationwide programmes aimed at blunting the appeal of extremist propaganda and "deradicalising" convicted terrorists in jail. There have been several cases of militants returning to violence after their release.
"We must raise our awareness because terrorism has yet to be destroyed," Mr Joko said in a tweet after the attack. "Protect your family from the influence of terrorist ideology."
As well as boosting laws to deal with returnees, Indonesia needs to tackle radicalism online to curb recruitment.
The government shut 10 websites and social media accounts after the attack, Rudiantara, the communications minister, said in an interview on Friday.
"From a policy point of view, they need to act against IS by finding a legal way to arrest returnees, stop people from getting to Syria and, most importantly, stop extremist religious figures from recruiting," said Paul Rowland, an independent Jakarta-based political consultant.
"The public is going to want some kind of action and Jokowi has the opportunity to act now to curtail extremism."
BLOOMBERG

British PM Cameron attacks isolation of Muslim women

British PM Cameron attacks isolation of Muslim women

[LONDON] British Prime Minister David Cameron Monday said more needs to be done to help Muslim women learn English to tackle discrimination and gender segregation in their communities.
Writing in The Times newspaper, Mr Cameron said it was time to confront the "backward attitudes" held by a minority of Muslim men who were exerting "damaging control" over the women in their lives.
Due to "'passive tolerance', people subscribe to the flawed idea of separate development", he said.
The Conservative leader launched a £20 million (S$41 million) language fund for women in isolated communities as part of a drive to to build community integration.
And he said migrants would be forced to improve their fluency English or risk their ability to stay in Britain.
Mr Cameron said new figures showed that some 190,000 Muslim women - or 22 per cent - speak little or no English despite many having lived in Britain for decades.
Some 40,000 of these women speak no English at all, he added.
"So it's no surprise that 60 per cent of women of a Pakistani or Bangladeshi heritage are economically inactive." Mr Cameron linked the issue to extremism, saying separate development helped prompt the search for something to belong to among second-generation immigrants.
He said Muslim women were reporting "an alarming picture of forced gender segregation, discrimination and social isolation from mainstream British life".
"We must take on the minority of men who perpetuate these backward attitudes and exert such damaging control over their wives, sisters and daughters. And we must never again allow passive tolerance to prevent us from telling the hard truths."
The prime minister said British society needed to be "more assertive about our liberal values, clearer about the expectations we place on those who come to live here and build our country together, and more creative and generous in the work we do to break down barriers".
He said it was up to migrants to improve their English language skills if they wanted extend their stay in Britain or apply for citizenship.
"We will now say: if you don't improve your fluency, that could affect your ability to stay in the UK. This will help make it clear to those men who stop their partners from integrating that there are consequences."
AFP

China investigates senior Beijing official for corruption

China investigates senior Beijing official for corruption

[BEIJING] Chinese authorities are investigating a former deputy Communist Party official in Beijing for suspected corruption, China's top prosecutor said on Monday.
Lu Xiwen is under investigation on suspicion of taking bribes and has been placed "under coercive measures", a term that usually means detention in China, the Supreme People's Procuratorate said in a statement on its website.
Lu is head of the city's party school, which trains officials.
Last November, he was sacked after being accused by the ruling Communist Party of suspected "serious breaches of discipline", the usual euphemism for corruption.
The government has given no other details about the case and it was not possible to reach Lu for comment.
President Xi Jinping has embarked on a massive campaign to root out deeply ingrained corruption since assuming office three years ago, warning, like others before, that the problem is so bad it could affect the party's grip on power.
REUTERS

China to start implementing RRR for some banks in offshore yuan market: PBOC

China to start implementing RRR for some banks in offshore yuan market: PBOC

[BEIJING] China will start implementing a reserve requirement ratio (RRR) on some banks involved in the offshore yuan market, the People's Bank of China (PBOC) said on Monday, in what appears to be its latest attempt to stem speculation in the currency.
Sources told Reuters on Sunday that the PBOC is preparing to raise the reserve requirement ratio next week for yuan deposits placed in yuan clearing banks. The rate is currently at zero.
The PBOC confirmed the move would be effective on Jan 25, but made no mention of increasing restrictions on banks in its statement.
Some analysts said the announcement may at this stage be a more symbolic warning to banks, aimed at discouraging them from being too active in yuan dealings as part of the PBOC's broader campaign to stabilise the yuan in offshore markets.
The offshore yuan, or CNH, fell earlier this month to its lowest level since trading began in 2010 on fears that China was planning to sharply devalue its currency to boost the slowing economy. "The market sees that this is a gesture by PBOC to warn the speculators that are betting on a fast depreciation of its currency," said Zhou Hao, senior emerging market economist for Asia at Commerzbank in Singapore.
HSBC estimates offshore yuan deposits totalled 1.45 trillion yuan (US$220.41 billion) in the four main markets of Hong Kong, Taiwan, Singapore and South Korea as of last November.
Market participants suspect that any increase in the reserve ratio would be intended to soak up additional liquidity in the offshore yuan market.
By forcing banks offshore to hold more yuan in reserve, it would reduce the amount of the currency available in the market, squeezing supply further and making it more difficult and expensive for speculators.
According to other sources and HSBC analysts, the deposits that will be affected include: 1) Offshore participating banks' CNH deposits placed with onshore correspondent banks; 2) CNH deposits from Bank of China Hong Kong and Macau with PBoC Shenzhen and Zhuhai; 3) other offshore clearing banks' CNH deposits placed with onshore parent banks.
The rule applies to yuan deposits from offshore financial institutions that are put in onshore financial institutions, excluding foreign central banks, monetary authorities, international financial organisations and sovereign wealth funds.
The PBOC has been under increasing pressure from policy advisers to let the currency fall quickly and sharply, after spending billions of dollars buying yuan over recent months to defend the exchange rate.
Confusion over China's foreign exchange policy and its commitment to reforms has roiled global financial markets in recent weeks as the central bank allowed the yuan to fall and then moved in aggressively to try to stabilise it.
The PBOC said on Monday will continue to use multiple policy tools to maintain ample liquidity in the domestic banking system.
REUTER
S

China steel firms suffered US$8b in losses in Jan to Nov 2015

China steel firms suffered US$8b in losses in Jan to Nov 2015

[BEIJING] China's major steel firms lost 53.1 billion yuan (S$11.6 billion) from January to November last year, as prices fell because of overcapacity and slumping demand, the China Iron and Steel Association (CISA) said on Monday.
China's steel sector, responsible for around half of global output, has been one of the biggest casualties of the country's economic slowdown, with prices now at multi-decade lows as a result of a massive supply glut.
China's total annual crude steel capacity is now 1.2 billion tonnes, CISA's chairman Zhang Guangning said in a speech at the association's annual conference last week that was posted on the group's website on Monday.
With about a third of the country's total capacity now standing idle, Mr Zhang said China has still not established a mechanism that would allow loss-making steel enterprises to exit the market.
"Some enterprises want to exit, but an exit route has not been opened up.. and some local governments continue to urge steel firms to produce in the interests of local economic development and social stability," said Mr Zhang, who is also chairman of the state-owned Anshan Iron and Steel Group.
He said CISA member firms saw their total earnings decline 19.3 per cent over the 11 months, with more than half making losses, he said.
The association consists of around 100 medium- and large-sized steel mills covering nearly 80 per cent of national output.
Steel consumption in China peaked in 2013, while output in the world's biggest producer peaked the following year, Mr Zhang said. "The period of high market demand growth has already passed into history, and from now on... overall demand will slowly decline," he said.
Crude steel output in China fell 2.2 per cent to 738.4 million tonnes in the first 11 months of 2015, but apparent steel demand fell 5.5 per cent to 645 million tonnes over the 11-month period, Mr Zhang said.
Exports have offered a lifeline for Chinese steelmakers, with falling domestic prices allowing them to undercut overseas producers, leading to a surge in trade disputes.
Mr Zhang said there were 36 anti-dumping investigations into Chinese steelmakers last year, double the 2014 number.
A composite price index of eight steel products compiled by CISA was at 56.37 in early January, compared to the 1994 baseline of 100.
REUTERS

Prosecution files petition of appeal against 'manifestly inadequate' sentences on Kong Hee and 5 others

Prosecution files petition of appeal against 'manifestly inadequate' sentences on Kong Hee and 5 others

THE Attorney-General's Chambers (AGC) said on Monday that the prosecution has filed the Petition of Appeal against sentences imposed on City Harvest Church (CHC) founder Kong Hee and five others.
"The prosecution will proceed with the appeal against the sentences imposed on the six accused persons, and we have accordingly filed our Petition of Appeal on Jan 15, 2016," an AGC spokesman said.
The AGC is of the view that the sentences imposed on the six accused persons were "manifestly inadequate, in all the circumstances of the case", and wants harsher punishment.
Kong and five others were found guilty of misusing church funds to the tune of millions of dollars, in a bid to prop up the music career of Sun Ho, who is Kong's wife.
Kong was handed the heaviest sentence of eight years' imprisonment; former CHC fund manager Chew Eng Han, 55, was given a six-year term; deputy senior pastor Tan Ye Peng, 42, received 5-1/2 years; ex-CHC finance manager Serina Wee, 38, got five years; former CHC committee member John Lam, 47, was jailed three years, and ex-CHC finance manager Sharon Tan, 40, received the lightest sentence of 21 months.
The six accused persons had also filed their notices of appeal against both conviction and sentences in December, indicating to the court that they intend to appeal.

China home-price recovery spreads to more cities amid easing

China home-price recovery spreads to more cities amid easing

[SHANGHAI] China's home-price recovery spread to more cities in December, especially smaller ones, after authorities rolled out easing measures targeting regions with a surplus of unsold homes.
New-home prices climbed in 39 cities, compared with 33 in November, among the 70 cities tracked by the government, the National Bureau of Statistics said Monday. They dropped in 26 cities, compared with 27 in November, and were unchanged in five.
China's politburo, the top decision-making body of the Communist Party, last month vowed to reduce home inventory as one of its key tasks in 2016, prompting expectation of more easing measures. The area of unsold new homes nationwide increased 12 per cent from a year earlier to 441 million square meters as of Nov 30, according to the latest available data from the statistics bureau.
Prices in December gained month-on-month in 51 cities among the 100 tracked by SouFun Holdings Ltd, which owns China's biggest property website. That was 10 more than in November. Average new-home prices rose 0.74 per cent in December from November.
BLOOMBERG

Asia: Stock rout deepens as Japan, Australia bear markets loom

Asia: Stock rout deepens as Japan, Australia bear markets loom

[SYDNEY] Asian stocks slumped, with Japanese and Australian shares on the cusp of joining China in a bear market, as concern grew over the strength of the global economy amid a continuing collapse in oil prices.
The MSCI Asia Pacific Index lost 1 per cent to 118.94 as of 11:10 am in Tokyo, extending this year's slide to 9.9 per cent. Japan's Nikkei 225 Stock Average declined 1.4 per cent after plunging as much as 2.8 per cent in early trading. The gauge is down 19 per cent from a June peak. A drop of more than 20 per cent at the close would meet the definition of a bear market. Australia's S&P/ASX 200 Index slipped 0.7 per cent, and is currently down 19 per cent from an April high.
Oil is below US$30 a barrel for the first time in 12 years as global growth worries roil equity, bond and currency markets. Investors awaited 2015 gross domestic product estimates from China on Tuesday as it struggles to boost a slowing economy and money managers debate how many times the Federal Reserve will raise interest rates this year.
"Worries about China, the Fed and global growth are likely to drive continued share market weakness and volatility in the short term," said Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd, which oversees about US$115 billion. "Expect volatility to remain high." Traders have been whipsawed in 2016, with equities around the world off to their worst start to a year on record as oil plummeted to levels last seen more than a decade ago and China struggled to maintain control over its markets.
The Shanghai Composite Index entered a bear market last week, for the second time in seven months, amid persistent investor concern over volatility. China's stock-market watchdog has acknowledged ineptitude and loopholes within its regulatory system after a review of the turmoil that has rocked local markets since June.
The measure rose 0.2 per cent Monday as China's central bank strengthened its daily reference rate for the yuan by 0.07 per cent, the biggest gain in four weeks. The People's Bank of China will impose reserve-requirement ratios on yuan deposits held on the mainland by offshore participant banks from Jan. 25, according to people familiar with the matter. Premier Li Keqiang on Friday pledged a "stable" exchange rate, and said the nation has no intention of stimulating exports through competitive currency devaluation.
The MSCI Asia Pacific Index has been in a bear market since August, as global equities plummeted after China devalued the yuan. The gauge is trading at the lowest level since 2012.
Japan's Topix fell 1.3 per cent on Monday, bringing its losses from an August high to 18 per cent. Hong Kong's Hang Seng Index retreated 0.9 per cent, extending a three-year low, and South Korea's Kospi index dropped 0.2 per cent. Singapore's Straits Times Index lost 1.3 per cent. The market is one of the worst global performers over the past year, with the benchmark gauge down more than 25 percent from a peak.
New Zealand's S&P/NZX 50 Index slid 1.5 per cent. Australia's ASX 200 pared earlier losses as Woolworths Ltd. surged 4.8 per cent after saying it's exiting Masters - its unprofitable Australian home-improvements joint venture with Lowe's Cos.
Both US crude and Brent settled below US$30 a barrel at the end of last week and the Standard & Poor's 500 Index sank 2.2 per cent on Friday. Brent oil briefly dropped below US$28 a barrel on Monday after international sanctions on Iran were lifted, paving the way for increased exports from the OPEC producer amid a global glut.
Futures on the S&P 500 rose 0.2 per cent. US markets are closed Monday for a holiday.
The US economy is weaker than expected though probably not headed for recession in 2016, Mohamed A. El-Erian said in an interview on Fox News.
"We are experiencing a lot of volatility. Growth and wages are lower than where we could've been, but let's not forget it's an economy that creates a lot of jobs," Allianz SE's chief economic adviser said.
BLOOMBERG

China investors brace for volatility as global markets slide

China investors brace for volatility as global markets slide

[SHANGHAI] China's financial markets braced for more volatility on Monday as the central bank prepared fresh measures to curb yuan speculation and the securities regulator blamed immature markets and inexperienced investors for the latest meltdown.
Chinese shares tumbled again on Friday, with the Shanghai index closing lower than at any time since December 2014, leaving most investors who put their faith in Beijing's measures to end last summer's crash nursing losses. "After experiencing the crashes last year, the sentiment is quite vulnerable and pessimistic now," said Xiao Shijun, an analyst at Guodu Securities in Beijing.
China's central bank is preparing to raise the reserve requirement ratio for deposits placed in yuan clearing banks from Jan 25, in its latest bid to stem speculation in the currency, according to three sources who have seen the document outlining the change.
Market participants suspect the planned reserve increase is intended to soak up additional liquidity in the offshore yuan market as the central bank tries to stem speculative bets on further depreciation.
On Friday, the yuan weakened sharply offshore, opening up a gap of more than 1 per cent with the steady onshore market, despite central bank efforts earlier in the week to squeeze out speculators.
The turbulent start to 2016, with currency and stock markets tumbling, has stoked concerns that Beijing's policymakers were in danger of fumbling as China headed toward its slowest growth in 25 years.
China's major share indexes have lost 16-18 per cent so far in 2016, and although Friday's close was the lowest since December 2014, there has so far been no breach of the 2015 intraday lows chalked up in August, when the market lost more than 40 per cent in a summer crash.
Xiao Gang, head of the China Securities Regulatory Commission (CSRC), said at the weekend that the market rout had highlighted shortcomings in the country's regulatory mechanisms.
"The abnormal stock market volatility has revealed an immature market, inexperienced investors, an imperfect trading system, and inappropriate supervision mechanisms," Mr Xiao said at an annual meeting. His remarks were published on the CSRC website.
Global markets have also tumbled at the start of 2016, with Asian shares set to slide to near their 2011 troughs on Monday following weak US economic data and sharp falls in oil prices.
REUTERS

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