Category: Business

Indonesia slapped Facebook with second warning letter over data leak

Facebook was slapped on Tuesday with a second warning letter by Indonesia’s Ministry of Communications and Information Technology for having improperly shared Indonesian data users with political consultant Cambridge Analytica.

In a statement posted on its website, the ministry said it warned Facebook again in the letter, which was signed by the ministry’s Information Applications Director General Semuel Pangerapan, to explain the ministry how personal information from over a million Indonesian users have been used by a third-party application on Facebook.

The ministry gave Facebook the first warning letter during a meeting on Thursday, when Indonesia’s Minister of Communications and Information Technology Rudiantara summoned the company’s representatives to his office, after Facebook disclosed in a blog post on Wednesday that a large number of Indonesian users’ data had been shared with Cambridge Analytica.

In the meeting, Rudiantara said he asked them to provide the ministry with their audit results to see how personal information of Indonesian users have been used and asked Facebook to block third-party applications from accessing Indonesian users’ personal data.

Rudiantara said he already got in touch with Facebook representatives in Indonesia when initial reports of Cambridge Analytica scandal emerged and gave them verbal warning over possible data breach of Indonesian users.

He called for Indonesian users to “temporarily fast from using social media. If they really have to use it, please be really careful when sharing personal data.”

According to the chart in the post, written by Facebook Chief Technology Officer Mike Schroepfer, Indonesia and two other Southeast Asian countries the Philippines and Vietnam are among the top ten countries whose citizens’ personal data may have been harvested for Cambridge Analytica’s inappropriate use.

The chart shows data of 1.75 million users in the Philippines, which is second to US users, could have been leaked, followed by Indonesia as third most-affected with more than a million users. Vietnam’s some 427,000 users, which ranked ninth in the chart, are believed to have also been affected.

Rudiantara said he has asked police to probe alleged violations of electronic information and transactions law on the misuse of Indonesia users’ data. If Facebook is found guilty of violations, its representatives in Indonesia could face a maximum 12 years in prison and a fine of up to 12 billion Indonesian rupiah.

A Facebook spokesperson said they are strongly committed to protecting people’s information, and intend to make all the same privacy controls and settings available everywhere. They also said it has recently taken significant steps to make their privacy tools easier to find, restrict data access on Facebook, and make their terms and data policy clearer.

The spokesperson said the company believes these changes will better protect people’s information and they will keep the community updated as they make more change, and continue to work with privacy and information commissioners, and authorities, in Indonesia.

Indonesians are among the world’s most active social media users, consistently remain among the top five countries with the largest number Facebook users.

A survey conducted from Oct. to Nov. 2017 by the Indonesian Internet Service Providers Association and the Indonesian Telecommunications Society showed Facebook is the second most popular social media applications on smartphones, according to 66.5 percent respondents, after Instagram which is owned by Facebook, with 82.6 percent respondents.

The survey was conducted across the country, involving 1,020 respondents, more than half were high school and university students, followed by professionals and entrepreneurs.

The survey also showed 79 percent respondents object to having their personal data being transferred to another party without their consent. Almost all respondents, or 98 percent, said they acknowledged personal data shared online should be protected and that the government should issue a legislation regulating protection of personal data shared online.

Rudiantara said this data leak case calls for a momentum for lawmakers to start deliberating a government-sponsored personal data protection bill and pass it into law. In the absence of such a law, data protection is currently guaranteed by a 2016 ministerial decree.

He added despite the importance of having personal data protection law, the bill had failed to be listed in the House of Representatives’ 2018 National Legislation Program.

“I hope this users’ data breach case could push for the bill to be eventually included in this year’s national legislation program,” he said.

This story has been updated from its original version in Arab News

Indonesian braces for greater environmental damage as oil slick widens

Indonesian authorities have launched a massive cleanup operation off the coast of Balikpapan, the provincial capital of East Kalimantan, where an oil slick from a ruptured undersea pipeline has sprawled to 20,000 hectares, contaminating mangrove forest and marine life.

Satellite images from state space agency LAPAN showed in just two days since the initial oil slick was detected on Mar. 31, the spill has sprawled to 13,559 hectare on Apr. 2 from 12,987 hectare on the previous day.

According to the Fisheries and Maritime Affairs Ministry, by Apr. 5 the spill has sprawled to 20,000 hectares, Kompas newspaper reported.

“Now it would take months to recover from the environmental damage,” Arifsyah Nasution, a marine campaigner from Greenpeace Indonesia said.

Environmental activists in Balikpapan have team up to collect evidence and assess the environmental damage, which Nasution said the public can later use as a comparison to assessment made by government agencies.

Balikpapan city administration has declared a state of emergency as locals’ livelihoods suffer. The oil spill claimed the lives of five fishermen when it ignited on fire on Mar. 31 and killed at least an Irrawaddy dolphin, a rare and protected species.

State-owned oil company Pertamina, which at first denied the leak was its fault, acknowledged that the spill had come from its undersea pipelines, located 22 to 26 meters below the sea.

“The crude oil leaked from one of the pipelines that was dragged more than 100 meter from its location,” Yudi Nugraha, a spokesman for Pertamina operations in Balikpapan said.

The company said the steel pipelines, which distribute crude oil from the Lawe-Lawe Terminal to its refinery in Balikpapan are 20 years old and that only external forces can dragged them as far as 100 meter.

Greenpeace’s Nasution said the crisis could have been minimized if Pertamina had responded more quickly.

The Energy and Mineral Resources Ministry said the likely culprit is a Panama-flagged coal ship that dropped its anchor in Balikpapan Bay, dragging one of the pipelines and causing it to rupture.

The ministry’s oil and gas director general Djoko Siswanto said ships are not permitted to drop anchor on that part of the bay where the pipelines are installed.

Environmental and Forestry Minister Siti Nurbaya Bakar has dispatched ministry officials to Balikpapan, an oil and mining hub in the island of Borneo, to spearhead the cleanup effort and to assess the adverse impact on the bay’s ecosystem and biodiversity. Pertamina has deployed 15 cleaning vessels.

Siti Nurbaya said the ministry team will measure the length of the coastline impacted by the spill. They found that it has so far polluted 34 hectare mangrove wetlands in Kariangau village and 6,000 mangrove trees in another village.

“We have asked Pertamina to prioritize cleaning the oil slick in waters close to human settlements to get rid of the oil’s nauseating smell and other imminent health hazards,” Siti Nurbaya said.

The team also collected oil booms, or temporary floating barriers, from oil companies operating in the region to contain the oil spill and by late Wednesday, the team has collected up to 70 meter cubic oil slick.

“We are coordinating with the police, which will launch a criminal investigation into the case. The forestry ministry will assist in determining the loss suffered by locals and the compensation for those affected,” Rasio Ridho Sani, forestry ministry’s director general for law enforcement said.

Octavinus, a search and rescue official in Balikpapan said locals began to see oil slick floating on the waters on Mar. 31 midnight and it was sparked on fire before noon, burning two fishing boats.

An operation was immediately dispatched to rescue the fishermen and by Apr. 3,  Octavianus said they found one of the boats completely burned and all bodies of five fishermen killed in the fire.

“A coal barge with 20 crew on board was sailing by but the barge was only slightly damaged and the whole crew is safe,” he said.

The original story was published in Arab News

With a temperamental volcano looming, Bali beckons ready to welcome global financiers, bankers

Indonesia is gearing up to host the 2018 Annual Meetings of the International Monetary Fund and World Bank Group (AM 2018) in Bali in October, and despite the looming threat of volcano Mount Agung erupting, the government is convinced that all contingency plans are well in place as it looks forward to hosting up to 20,000 participants.

The volcano’s alert status has been lowered to level three or the second highest level, which means that the danger zone is reduced to a two-kilometer radius from the crater. The government also launched in August the official website for the event: www.am2018bali.go.id. Indonesia is the fourth Association of Southeast Asian Nations (ASEAN) member country to host the global meeting, after the Philippines (1976), Thailand (1991), and Singapore (2006).

Tasked to chair the organizing committee of the AM 2018 by President Joko Widodo is the Coordinating Minister for Maritime Affairs and Resources Luhut Binsar Pandjaitan, whose office oversees ministries and government agencies crucial to playing host to heads of governments, finance ministers, senior bankers, global CEOs and foreign journalists.

Dr Safri Burhanudin, the Deputy Minister for Human Resources, Sciences and Technologies and Maritime Culture at the Coordinating Ministry for Maritime Affairs and Resources, who is in charge of supervising the preparations go as planned, explained the latest updates on the plan.

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Safri Burhanudin planted a tree at Suwung landfill in Bali, in preparation to welcome delegates attending IMF-WB Annual Meetings in Bali, October this year. Photo: Kemenko Maritim/maritim.go.id

How are the preparations going so far?

Preparations in terms of venues in Nusa Dua are all ready. We are going to have a meeting with the organizer in February to evaluate the preparation. There will be a team from the IMF and the World Bank that will come to check and evaluate everyting. We are also finalising side events. Indonesia is only hosting and providing the venues, but the main organizer is the IMF and the World Bank, so they are the ones that develop the event program. We will be in charge of hosting and ensuring security for the VVIPs and servicing them.

How many VVIPs will attend the meetings?

All finance ministers from 189 countries will attend, and 32 of the ministers also serve as prime ministers so the treatment will be different for finance ministers and heads of government. We also plan to welcome leaders of ASEAN countries. There could be a meeting of ASEAN leaders on the sidelines but it is still being discussed, and we are waiting the final decision. We hope the ASEAN leaders will attend the opening session, and prior to that they would be meeting the managing director of the IMF and the president of the World Bank.

How many participants do we expect to welcome in Bali?

About 17,000 participants are expected to come, but there could be more if they bring their spouses and their families, about 20,000 people. We’ve heard that since the event will be in Bali, their families will come along later for a vacation. There are 21 official hotels appointed in Nusa Dua, Tanjong Benoa, Jimbaran and other areas outside Nusa Dua. There are 4,000 rooms available in Nusa Dua hotels for this event, while we are going to welcome 17,000 participants. We also heard that Bank of America already booked 200 rooms in The Mulia in Nusa Dua.

Why is the Coordinating Ministry of Maritime Affairs and Resources in charge of the event, instead of the Coordinating Ministry of Economic Affairss?

President Joko Widodo appointed Coordinating Minister Luhut as the head of the organizing committee, because we focus on the tourism part of this event, while the main program is already handled by the IMF and World Bank. We want to benefit the most from the annual meetings as a platform to promote Indonesia’s tourism and the tourism ministry is under the Coordinating Ministry of Maritime Affairs and Resources. That’s why we launched the Voyage to Indonesia (VTI) drive as a promotional program  with a number of activities such as seminars, public discussions and art exhibitions underway. We also offer the participants seven main tourist destinations that they can go to after the meetings, namely Lake Toba in North Sumatra, Mandalika in Lombok, Labuan Bajo in East Nusa Tenggara if they want to see the Komodo dragons, Banyuwangi in East Java where they can choose to go to Mount Ijen for example, Yogyakarta and the Borobudur Temple, Toraja in South Sulawesi and of course Bali itself.

What about concerns regarding Mount Agung’s volcanic activity?

There were initial concerns regarding the volcano but it was because we didn’t communicate about it the right way. It made the public think that if the volcano erupts, the whole of Bali will be closed. So, we explained that technically if Mount Agung erupts, the farthest area affected will be 10 kilometers away from the crater, while Nusa Dua is 70 kilometers and the airport is 68 kilometers away. Even if there was some volcanic ash, the wind patterns would be mainly blowing to the east, not to the airport which is southwest of the volcano. If it erupts, it won’t affect the airport’s operations much.

What are the side events that Indonesia will organize?

There will be an economic forum that the Investment Coordinationg Board will coordinate and events to promote investment and the ease of doing business in Indonesia. Some of our main agenda will be to set up the Indonesia pavilion at the Westin Hotel and organize the Indonesia Gourmet and Food Festival, cultural performances, ASEAN Leaders Retreat and Host Country Reception at the Garuda Wisnu Kencana Cultural Park. The final rundown, however, will be released in April, as it is still now being discussed and will be evaluated during the spring meetings in Washington, DC.

Indonesia is footing the huge bill with Rp 868 billion to host this event, how are we going to benefit from it?

The cost we bear, including to organize major events such as the welcoming party and other promotional events, is not much compared to what we are going to get, which is a lot more. The participants are paying for the hotels, at least 17,000 hotel rooms and the increasing foreign exchange reserves through participant visits. We will be taking back most of the costs we spend for playing host.

What other special preparations are taking place, and is there any special infrastructure being built for this event? 

The infrastructure we built for this event is the underpass at the airport intersection before the entrance to the toll road, Tanjung Benoa cruise terminal, and Suwung landfill. The latter is already finished and it doesn’t emanate a stench anymore. We are also expediting the completion of the Garuda Wisnu Kencana statue. It should be finished by September. If all goes well, it will be the largest event we have ever hosted.

This article was first published in AmCham

It’s connectivity that matters: Indonesians use smartphones and internet for staying in touch

If there’s one thing that Indonesians can agree on when asked what smartphones and the internet are most useful for, it would be to access social media and messaging applications.

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A survey conducted by the Indonesian Internet Service Providers Association (APJII) and the Indonesian Telecommunications Society (Mastel) showed that 95.1 percent of respondents use smartphones to access social media applications, while 73.7 percent said they use it to access messaging applications.

The survey was conducted across the country from October to November involving 1,020 respondents, more than half of them are high school and university students, followed by professionals and entrepreneurs.

The most popular social media applications among the respondents are Instagram with 82.6 percent, while 66.5 percent named Facebook and 49.6 percent said they liked Pinterest.

The top chat application is Line with 90.5 percent respondents, followed by WhatsApp and Blackberry Messenger with 79.3 percent and 33.10 percent  respectively.

Typical of these users is 19-year-old waitress Andini Sugeha, who says she uses Facebook most of the time but the features she most uses are messaging services.

Uploading photos and chatting with friends are what draws user to these applications the most.

“I use Facebook to upload photos while I also do that on Instagram, and I use WhatsApp as well to chat,” Andini said.

Media professional Ami Afriatni said she has been on Facebook for a decade and still uses it mainly to stay in touch with friends and families living in faraway places, while for her works she finds Twitter is most useful.

“It is helpful to get news updates, personal insights public figures might offer or official statements of some credible organizations. People also often take to Twitter to respond to recent issues and to express their stance,” Ami said.

As a budding photographer, she uses Instagram to sharpen her photographic skills, adding that the entertainment aspect of the photo sharing platform is the main draw for her.

In a reflection to the APJII and Mastel survery, Ami said social media and messaging applications are equally important but agreed that social media platforms have reached maturity while messaging applications are more important.

“I think there are rooms for improvement for this, let’s say creating a messaging applications that are more friendly to elders or communities who are less exposed to technology,” she added.

But the proliferation of hate speech, hoax and fake news on Facebook, especially as they relate to political preference, has made the world’s largest social networking platform no longer as enjoyable as it used to be, she said.

fake-news-snopes

Internet stakeholders in Indonesia are well aware of the problems and in anticipation of regional elections this year, the Ministry of Communications and Information Technology, APJII and Elections Supervisory Body have launched a campaign against online hoaxes.

The three agencies, along with local representatives of internet giants including Google, Facebook, Telegram, Twitter, Line, MeTube, Bigo Live and Live Me signed on Feb 7 a memorandum of understanding to curb the spread of hate speech and fake news related to the elections.

ICT Minister Rudiantara said the drive to issue such declaration started in 2016 and every party involved in the online ‘ecosystem’ had an obligation to be part of it.

“So, there is no reason for service provider not to takedown [negative content] when the General Elections Committee and Elections Supervisory Body request for it because they are the independent bodies that organise the elections and are well aware of election rules and regulations,” Rudiantara said.

APJII chairman Jamalul Izza, said application providers and related parties agreed it was time for joint effort to curb negative content, as previous experience during the divisive presidential election in 2014 and Jakarta gubernatorial election last year showed how content that incited hate and misinformation directed at some candidates can flourish and go viral.

“Therefore, as the internet ecosystem in the country we agreed to safeguard the 2018 regional elections to make them free from negative contents and hate speech,” Jamalul said.

An APJII survey released in November showed that there were 132.7 million internet users in Indonesia, out of its 256 million population.

The ICT Ministry has been stepping up its efforts to ensure that the material available online does not breach local standards for behavior and morality. That includes material related to homosexual activity. In January, it asked Google to suspend applications related to LGBT activities from its Google Play Store so that they are no longer accessible in Indonesia.

It also said it has handled 72,407 complaints regarding pornographic content on the internet in January. Earlier in the month, the ministry has begun to operate an artificial intelligence-based censorship system to using keywords to detect and crawl pornographic content online.

The US$14-million dollar machine was installed following years of manual monitoring that failed to curb the flood of illicit contents on the internet, especially pornographic material. A ministry team will evaluate and verify the data crawled and take the necessary measures such as blocking the sites if they are validated to have inappropriate content.

“Global and national internet providers are urged to be active in ensuring the availability of positive contents and suppress negative material from spreading,” ministry spokesman Noor Iza said.

The story first appeared in Bangkok Post

 

 

Indonesia aims to emulate Norway in managing its mineral wealth

After three years leading Indonesia’s largest state-owned bank by assets, former Bank Mandiri chief executive officer Budi Gunadi Sadikin has a new role as special staff to Rini Soewandi, the Minister of State-Owned Enterprises (SOE).

In this role, which he started in late June 2016, Budi is charged with establishing a holding company made out of state-owned mining enterprises to re-do the way the government handles its future stakes in the industry.

Continue reading “Indonesia aims to emulate Norway in managing its mineral wealth”

New Pertamina chief faces one-price fuel policy challenge in a vast archipelago

The newly appointed president director of state-owned energy firm Pertamina, Elia Massa Manik, has a huge task ahead to carry out President Joko Widodo’s one-price fuel policy, in the face of inadequate infrastructure to distribute fuel to the country’s remote areas and far-flung islands in the Indonesian archipelago.

Maryati Abdullah, the national coordinator for PWYP Indonesia, a civil society coalition for energy and extractive industry governance reform, considers the policy is viable if Pertamina could import crude oil at a much more affordable price and refine it in its own refineries.

“They could start by revitalizing its existing, old refineries so they could increase its production output, while also remain committed to developing new ones,” she said.

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Pertamina refinery in Cilacap, Central Java. Photo: Pertamina.com

Widodo announced the policy in October 2016 during a visit to Yahukimo, a district near the Indonesia-Papua New Guinea border in the easternmost province of Papua. Due to the location and lack of infrastructure in Papua and the eastern part of Indonesian archipelago, fuel prices can cost up to a dozen time more from the normal price of 6,450 rupiah per liter for petrol and 5,150 rupiah per liter for solar. The policy is expected to cost Pertamina about 800 billion rupiah annually.

Fahmy Radhi, an economic energy analyst from Universitas Gadjah Mada in Yogyakarta agrees that having its own production infrastructure could give Pertamina wider fuel distribution coverage.

“If it has its own refineries, Pertamina won’t have to import up to 650,000 barrel per day. This is a huge amount that the oil and gas rent seekers have been cavorting around,” Fahmy said.

Kurtubi, a lawmaker from the House of Representatives Commission VII which oversees energy and mineral resources said as a company drawn to constitutional obligation about exploitation of the country’s natural resources should benefit the people, there is more that Pertamina has to consider in its operation than merely making a profit.

Article 33 in Indonesia’s 1945 Constitution states that “sectors of production which are important for the country and affect the life of the people shall be controlled by the state and the land, the waters and the natural riches contained therein shall be controlled by the State and exploited to the greatest prosperity of the people.”

“One-price fuel policy is a constitutional mandate. Pertamina could do it as long as the cost is efficient,” Kurtubi, who goes by one name, said.

“The new president director has to be able to operate the company without contradicting the constitution,” he added.

Kurtubi also said that cutting fuel import should be high in Pertamina’s agenda under Manik’s leadership.

“It should develop its own refineries so that Pertamina could produce its own fuel to meet the domestic demands,” Kurtubi said, adding that the existence of a refinery in a certain area could also create multiplier effects that would boost the local economy and open new jobs.

Manik was appointed to head the company during Pertamina’s general shareholders meeting at the State-Owned Enterprises Ministry in Jakarta on March 16, more than a month after then-chief executive Dwi Soetjipto and deputy director Ahmad Bambang were ousted on Feb 3 because of what the government – its majority shareholder – was a leadership problem and a lack of teamwork.

Manik, who was the president director of PT Perkebunan Nusantara (PTPN) III, the holding company of 14 state plantations firms since April 2016, is an alumnus of Bandung Institute of Technology and Asean Institute Of Management.

In his first address to Pertamina’s employees, Manik said he would focus on strengthening the company’s human resources and maintaining Pertamina’s improved performance for the past years.

Sudirman Said, the then-energy and mineral resources minister, said in 2015 that Pertamina was able to save 250 billion rupiah per day after ousted CEO Dwi in 2015 disbanded Pertamina Energy Trading Limited (Petral), a Singapore-based Pertamina subsidiary handled crude and fuel oil imports for the state energy company and was notorious for being the oil and gas rent seekers’ den.

“There are many important projects we need to execute to achieve the national energy security goal, therefore it is important to gain trust so that we can adeptly carry out the projects,” Manik said.

PWYP Indonesia had urged the government to select the new president director in a transparent, credible and independent manner, following the Feb 3 ouster of Dwi.

Maryati said the government didn’t say much about the reason they appointed Manik, but given his public track record on improving corporate efficiency, she holds a favorable view that Manik would be efficient in his human resources planning and be able to restructure various executive positions to a more effective appointments.

“We also hope he would not be swayed by certain political interests,” Maryati said.

 

Alvin Tjitrowirjo: Product Designer with a Mission

A lack of appreciation for locally-made products in Indonesia motivated designer Alvin Tjitrowirjo to create a contemporary design language steeped in the country’s traditions and culture for his furniture brand. Continue reading “Alvin Tjitrowirjo: Product Designer with a Mission”