6th East Asia Summit Adopts 2 Declarations

The sixth East Asia Summit (EAS) has recently been held in the Indonesian resort island of Bali. The EAS is a gathering of leaders from 10 Association of South East Asian Nations (ASEAN) countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Singapore and Vietnam– the Dialogue Partners and the United Nations.
Indonesian President Susilo Bambang Yudhoyono addressed the opening ceremony that the combined forces of the participating countries are remarkable. New Zealand Prime Minister John Key and Russian President Dmitry Medvedev are represented by their respective Foreign Ministers.
The EAS discussed broad and strategic issues of common concern at the regional and international levels, and ways to enhance and strengthen the cooperation within five priority areas of the EAS, namely finance, energy, education, communicable diseases, and disaster management.
Joint Declarations
At the end of the summit, leaders adopted two declarations namely, the Declaration of the EAS on the Principles for Mutually Beneficial Relations, and Declaration of the 6th East Asia Summit on ASEAN Connectivity.
The first declaration contains basic norms and common principles taken from various previous basic documents including the UN Charter, the Treaty of Amity and Cooperation in Southeast Asia and other arrangements among EAS participating countries.
It will serve as the guidance of conduct for EAS participating countries toward promoting and maintaining peace, stability and prosperity in the region.
The second declaration includes connectivity as one of the key areas of cooperation of the East Asia Summit besides the existing five priorities, namely finance, energy, education, communicable diseases and disaster management.
This declaration will inter alia support and facilitate further cooperation between the ASEAN and other EAS participating countries in the Connectivity initiative, and a regional public- private partnership development agenda and will promote greater engagement and cooperation in people-to-people connectivity.
The EAS seeks to promote cooperation in political and security issues, boost economic growth and integration, and secure financial stability. At last year's summit in Vietnam, leaders formally agreed to expand the meeting to include the United States and Russia.
With the participation of the two world powers, the group hopes to strengthen cooperation on global challenges and discuss rules on maritime security and nuclear non-proliferation.
About EAS
The EAS is originally an annual gathering of 10-member ASEAN and six other East Asia countries, including Australia, China, India, Japan, South Korea and New Zealand. Established in 1967, ASEAN, which groups Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia, forms the core of the broader EAS.
In October 2010, ASEAN leader agreed at the end of the 17th ASEAN Summit to invite the United States and Russia to join the EAS in 2011, which increased the number of ASEAN dialogue partners to eight.
The EAS serves as a forum for dialogue on broad strategic issues of relevance to East Asia as well as other regional and global issues, with the focus on areas such as international terrorism, energy, infectious diseases, sustainable development, poverty reduction and others.
Relief measures for floods and other natural disaster will be a top agenda item for this year's EAS. Leaders will discuss how to recover their economic growth and prevent future natural disaster for the good of the whole region.

US Interference in South China Sea

In the five-day ASEAN meetings held in Bali, Indonesia, starting 19 July, as expected, the issue of the sovereignty dispute over the South China Sea has become the center of attention. On 20 July, senior officials from both China and Association of South East Asian Nations (ASEAN) countries agreed to formulate the guidelines for the implementation of the Declaration on the Conduct of Parties in the South China Sea. This is one step towards a legally-binding ‘code of conduct’. If both sides could reach an agreement in this regard, they would be able to make ‘the rules of the game’ in the South China Sea clearer.
Recent Series of Controversies
On the first day of the meetings, Susilo Bambang Yudhoyono, President of Indonesia -- the current ASEAN chair and organizer of the meetings -- had expressed his impatience on the slow progress of the matter. ASEAN and China signed the non-legally-binding Declaration on the Conduct of Parties in the South China Sea in 2002. Nine years have passed with no progress. The recent series of controversies surrounding the South China Sea have manifested the insignificance of this declaration. Nevertheless, it is still a foundation laid down after many years of negotiation between China and ASEAN. As the situation changes, it is more pressing now for China and ASEAN to seek breakthrough based on this foundation. Perhaps now we can look forward more optimistically to the endorsement of China and ASEAN to the ‘implementation guidelines’ reached between their senior officials. We also look forward to the official legal documents that put the spirit of the declaration into practice and set the standards for the conduct of parties in the South China Sea from now on.
Uncompromising Confrontation
Undeniably, such progress would only mitigate the tension of the uncompromising confrontation, the conflicts over sovereign rights and territorial claims will persist.
In the past one month, tension arises in the relations between China and several ASEAN countries while the South China Sea is surrounded with more excitement. The United States, Japan, and Australia conducted their first joint military exercise in the waters of Brunei. In addition, the United States also conducted its joint naval exercises with Vietnam and the Philippines separately. Against the backdrop of the current state of affairs, in the eyes of China, the joint military exercises conducted by the United States with countries in this region in the South China Sea were certainly meant to target at China. Among others, China had strongly opposed to the US-Vietnam joint military exercise. Although the United States and Vietnam claimed that the exercise was scheduled before the conflicts between China and Vietnam in the South China Sea, China insisted that ‘the timing was inappropriate’ and the United States and Vietnam should cancel their pointed naval exercise.
At the same time, various parties have also resorted to diplomatic approach. For instance, in the visit of the Philippine Foreign Secretary Albert del Rosario to China, both he and the Chinese Foreign Minister Yang Jiechi stressed after their meeting that the bilateral relations between the two countries would not be affected by the sovereignty dispute. Both sides agreed to safeguard peace and stability in the region of the South China Sea.
Establishment of Power and Influence
The interference of the United States into the sovereignty row over the South China Sea is an inevitable development. The United States has established its power and influence in this region since long ago. When small countries in this region face territorial conflicts with China, they will naturally turn to the United States for support. This is a fact that China has to accept, although it has insisted that the sovereignty dispute is a bilateral issue and refused to internationalize the issue. As the situation in the South China Sea is full of variables, we must not overlook the interaction b etween China and the United States as well.
In return to the visit of Chen Bingde, Chief of General Staff of the People's Liberation Army (PLA) of China, to the United States in May this year, the US Chairman of the Joint Chiefs of Staff, Mike Mullen, recently paid a four-day official visit to China. In his program in places like Shandong and Zhejiang, Mullen visited the army, air force, and navy of the PLA. This was the first time a top rank US military leader had ever surveyed China's military strength in such ‘close distance’. In particular, China had for the first time shown to an outsider the military equipment of the Second Artillery Force, a force equipped with possesses nuclear missiles and conventional operational-tactical missiles. From China's perspective, this was an action to ‘show friendliness’ to the United States.
After its further interference into the sovereignty dispute in the South China Sea, the United States has more obligation and responsibility to prevent the conflicts between any of the ASEAN countries and China from going out of control. Otherwise, the United States would have to face the risk of a direct armed conflict with China, which is not in line with the interests of the country.

Drug Money Connection Uncovered in Indonesia's Bank Century Scandal

The tracing of the Bank Century fund flow has indicated startling facts. The special committee investigating the Bank Century case has discovered suspected fund flow in connection with an international drug network in addition to money laundering.

Special Committee Vice Chairman Gayus Lumbuun said that the Bank Century fund flow in connection with drug transactions was discovered by the special committee team while conducting the investigations in Denpasar. ''The team discovered the drug fund flow in Bali. That is the part that we will trace,'' he said when presenting the result of the field investigations at the special committee meeting.

According to Gayus, the transactions involved the 50 customers mentioned by the Financial Analysis and Transaction Reporting Center (PPATK) as suspicious transactions. Unfortunately, the details of the transactions could not be obtained because the Bank Mutiara management was reluctant to provide them. In fact, the customers who made the drug transactions in Denpasar are being handled by the police.

Confidential Data Disclosed

It is suspected that the Bank Century fund flow in connection with drugs was also carried out in Jakarta. The suspicion was disclosed in the confidential data presented by the PPATK. The method is precisely the same as those in Bali. The difference is that those in Bali have been uncovered, whereas these ones are being investigated. According to him, the fund flow suspected to be drug-related was carried out by a customer initialed MT. ''Previously, he was bruited about by the People's Representatives Council (DPR) members. In fact, he was not. I have traced it. MT is a young man, aged 24, from Tegal, Central Java, and lives in Jakarta. Based on the data of the PPATK and the tracing, added the source, MT has the Indonesian manpower and money changer businesses. The fund flow to MT was in big amounts, up to billions of rupiah (Rp).

The data of the PPATK indicate that MT executed 26 transactions of sending money to in the period between February and July 2009 and they were related with the general election activities. It was in the amount of some Rp. 13 billion. However, MT's total fund was in the amount of more than Rp 20 billion.

Priorities of Tracing by Special Committee

According to the source, the special committee suspects that the fund flow from overseas received by MT in rupiah and foreign exchanges in billions of rupiah was not from the Indonesian manpower but from the international drug networks. The fund, he added, was then transferred to the drug networks in various regions. Once again, the method is precisely the same as those in Bali. Therefore, MT is one of the priorities of the tracing by the special committee. Meanwhile, Agun Gunanjar, member of the special committee from Golkar Party Faction, said that one of the priorities for tracing by his faction is Amiruddin Rustan, a Bank Century customer from Makassar. Because the information that he provided for the special committee team going to Makassar was different from the data traced by the PPATK. Perhaps, he gave false testimonials.

Further, because of Bank Century's worsening condition, he divided his deposit into 33 accounts, each in the amount of Rp 2 billion, in the names of his family members and employees, so that if Bank Century was closed, the funds would be included in the guaranty scheme of the Savings Guaranteeing Institution (LPS). However, Amiruddin's information was not in accordance with the data traced by the PPATK, which was also released by the Supreme Audit Agency (BPK). According to the two state institutions, the Rp 66 billion fund was from the bank account of PT Animablu Indonesia, a trade company affiliated with former Bank Century owner Robert Tantular.

It seems that the fund from PT Animablu Indonesia originated from the sales of Bank Century bonds in the form of the US Treasury Strip. The sales of the SSB were in the total amount of $ 38 million. From the sales, $ 31 million went to the bank account of Rafat Ali Rizvi, former Bank Century shareholder, in Dresdner Bank of Switzerland (DBSL), whereas the other $ 7 million went to PT Animablu Indonesia. The fund from PT Animablu Indonesia then went to Amiruddin's bank account.
Flow of Funds

According to Agun, Amiruddin's fund flow should be traced because although the Bank Century management has blockaded the account, the fund can be disbursed. It is in the amount of Rp 35 billion. Therefore, it should be traced in order to know the persons behind Amiruddin. Moreover, he added, the terrors against Akbar Faisal, member of the special committee from Hanura Party Faction, were because he continuously suggested that Amiruddin should be investigated thoroughly. ''They said that some state officials are involved. We will find out,'' he said.In addition to MT and Amiruddin Rustan, the focus of the special committee is certainly Boedi Sampoerna.

According to Andi Rahmat, member of the special committee for the Bank Century case from PKS faction, one of the irregularities that should be uncovered is why Boedi Sampoerna could disburse his fund in the Antaboga fundraising, whereas the other 1,060 customers with the funds in the total amount of Rp 1.4 trillion have been unable to do so. Indeed, Boedi Sampoerna's fund in the amount of Rp 1.8 trillion could influence the decisionmaking.In connection with the tracing of the fund flow to the political parties or the campaign teams of the presidential candidates, Andi said that only PT Asuransi Jaya Proteksi (AJP) has been indicated thus far.

Nonetheless, this does not mean that the Bank Century bailout fund was free from the political aroma. In fact, there are several fund flows that candidates have continued to trace in connection with the political elements. However, as this is very sensitive, candidates cannot uncover it. So, please wait. The candidates will disclose it when the data are complete. Meanwhile, the agenda of presenting the stance of the factions in connection with the fund of the Short-term Funding Facilities (FPJP) and Bank Century bailout was finally postponed.

Idrus Marham, chairman of the special committee for the questionnaire right on the Bank Century case, said that the agenda was postponed to provide the opportunity for the factions to study more accurately the details of the result of the field investigations just handed over to the special committee management . 'So, the reports from the factions were postponed. After that, a smaller team will be formed to formulate the final conclusion of the special committee.

Fictitious Customers

M. Romahurmuzy, member of the special team from United Development Party Faction (FPPP), said that the fictitious customers are one of the methods applied sporadically by the people. In connection with the fund flow, indeed there are the names of two companies that happen to be the same as the contributors to presidential and vice presidential candidates Susilo Bambang Yudhoyono (SBY) and Boediono.However, the parties should be fair. This is not a violation of the law on the presidential election because the amount is below Rp. 5 billion. The companies took their own funds from Bank Century, not others' funds. Second, the companies are PT Asuransi Jaya Proteksi (AJP) and Bank Tabungan Pensiunan Nasional (BTPN).

According to Romi, nickname for Romahurmuzy, the PPATK has just handed over the profile of PT AJP and its financial transactions in Bank Century to the special committee. From there, it is known that PT AJP has the deposit in the total amount of Rp. 14 billion. Following the bailout, PT AJP withdrew its funds several times. Up to June 2009, they contributed four times to the success team of SBY and Boediono, and this was justified by the law. What was the total nominal amount?

Registration of Claim

In another development, former Bank Century owner Robert Tantular filed a claim with the Central Jakarta District Court. Represented by his legal proxy, the claim was registered. The claim is against the president as Defendant I, the Indonesian Police Chief as Defendant II, the Attorney General's Office as Defendant III and the special committee for the questionnaire right on the Bank Century case as a co-defendant.Triyanto, one of the legal proxies of Robert, said that the claim is in connection with several matters, among them the instruction of Jusuf Kalla, who was then the presidential caretaker, to arrest Robert Tantular.

"In our opinion, this was an intervention by the law enforcers and a violation of the law," he said in his written information.Another claim is in connection with Robert Tantular's isolation when detained at the Research and Crime Unit of the Indonesian Police Headquarters from 23 February to 25 March 2009. He said that the action was a violation of the law and was against human rights.