The Irrawaddy Magazine

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• Demonstration to Call for Investigation Into Journalist’s Killing
• E-Visa Service to be Offered for 6 Additional Entry Points
• Father of Koh Tao Accused Describes Threats Against His Son
• AirAsia to Fly Direct to Naypyidaw From Kuala Lumpur
• Burmese Women Honored for Activism
• In Arakan State, Concerns Grow Over Rise in Drug Seizures, Abuse
• Missing Reporter Killed in Custody of Burma Army: Report
• Protesters in Hong Kong to Vote on Government Proposals
• A Divisive Dialogue
• Three Major Nations Absent as China Launches Asian Bank Rival
• Foreign Policy Question Mark Over Indonesia Leader
• US Think Tank Faults Burma on Arakan Response

Demonstration to Call for Investigation Into Journalist’s Killing Posted: 24 Oct 2014 05:33 AM PDT A photo of killed reporter Aung Kyaw Naing, also known as Par Gyi. (Par Gyi /Facebook) RANGOON — Several activist groups said on Friday afternoon that they plan to soon hold a demonstration to call for a full investigation and justice in the case of the reported killing of a journalist by the Burma Army in Mon State. "We will ask for a transparent investigation, for the officials to take fair [legal] action to account for his death, and to bring his body back to his family for a proper funeral," said Moe Thway from Generation Wave, a youth activist group. On Friday morning, it emerged that an aide to Commander-in-Chief Min Aung Hlaing sent a statement to the Interim Myanmar Press Council on Thursday, saying that an unnamed army unit in Mon State's Kyaikmayaw Township had shot dead 49-year-old freelance journalist Aung Kyaw Naing, also known as Par Gyi, on Oct. 4. He said a letter requesting permission to hold the demonstration in front of Rangoon's City Hall had been sent to Kyauktada Township on Friday, adding that the protest was scheduled to start on Sunday at 4 pm. He said some 200 people from youth activist groups, journalist organizations and the 88 Generation Peace and Open Society are expected to join. Moe Thway added that protestors had asked for permission to chant, "Protect reporters!", "Justice must prevail!" and "Down with the oppressive military!" "He was missing for a month, but it has now been confirmed that he was dead soon after he disappeared. We think it is deceiving," said Moe Thway. Min Nay Htoo, a youth activist with DPW Network, said he planned to join the protest. He said the journalist's killing "proved that the current government is not a government that is transitioning to a real democracy; the military is still above the law and can do whatever they want." The post Demonstration to Call for Investigation Into Journalist's Killing appeared first on The Irrawaddy Magazine.

E-Visa Service to be Offered for 6 Additional Entry Points Posted: 24 Oct 2014 05:20 AM PDT Tourists arrive to a hotel located on Inle Lake, one of the main tourist attractions in Burma, on Sept. 25, 2013. (Photo: Reuters / Minzayar) RANGOON — Burma's Ministry of Immigration and Population will begin issuing electronic visas for tourists at six additional locations, a ministry official told The Irrawaddy on Friday. The e-visa registration, introduced on Sept. 1, is currently only available to visitors entering the country through the Rangoon International Airport. The ministry said that service will soon be extended to Mandalay, Naypyidaw and four overland crossings along Burma's border with Thailand. Applicants must complete an online visa form, verify that all information is correct and make a credit card payment for fees. Those approved will receive an emailed document that they can print out and present to immigration officers upon arrival. Turnaround time averages five days, and the visa is priced at US$50 per person. After approval, travelers have 90 days to enter Burma, where they can stay for up to 28 days. "We're going to set up the machines, and we'll conduct trials in Mandalay and Naypyidaw. Afterwards we plan to start offering e-visas in four Thai-Burmese border stations," said Maung Maung Than, director-general of the immigration ministry. The government has only recently allowed overland entry into Burma; four checkpoints along the Thai-Burmese border—at Myawaddy, Tachilek, Kawthaung and Htee Khee—only offered one-day passes or specially issued travel exemptions until just last year. The change effectively meant that visitors can enter through a border station and travel to other parts of the country via land or air, whereas they were previously restricted to areas close to the border and were required to go out the way they came. The number of people entering Burma has increased dramatically since the overland borders were opened, a trend that the government would like to see continue as the tourism industry begins to take off in the once-closed country. "As you know, many international airlines now offer direct flights to Mandalay and Naypyidaw," said Maung Maung Than, "and many people are coming in through the border stations. That's why we're going to expand the availability of e-visas." In the initial phase of implementation, 41 nationalities were eligible for e-visas. Eligibility has expanded to include a total of 67 countries at present. Ministry figures indicate that 13,283 e-visas have been issued during the trial period, which began on Aug. 10. A total of 16,087 applications were submitted, according to the ministry. The majority of applicants were United States citizens. Phyo Wai Yar Zar, chairman of Myanmar Tourism Marketing, said that the number of e-visa applicants is still far lower than the total number of visitors entering the country via overland crossings, which demonstrates a demand for expanding availability. He predicts that the service will account for a larger percentage of visas as time goes on. "The reason for the low number of applicants is simply that e-visas have only been available for a short time. Many tourists don't yet realize that it's even an option, and it's still only available for those entering through the Rangoon airport," he said. Phyo Wai Yar Zar added that his organization, a non-governmental industry promotion and coordination body, will "welcome this expansion of services." The total number of visitors to Burma topped one million annually for the first time in 2012, after the onset of political reforms. Many foreigners formerly boycotted the country at the request of opposition leader Aung San Suu Kyi, so as to avoid contributing money to the repressive military regime. But many are now optimistic that tourism could become a major driver of economic development. In 2012, the government created a Tourism Master Plan with the help of foreign consultants, with the goal of 3 million foreign visitors by 2015 and 7.5 million by 2020. In early October, the Ministry of Hotels and Tourism announced plans for a "Visit Myanmar Year" campaign in 2016, in a renewed attempt to revamp the tourism sector amid chronic complaints of accommodation shortages and weak infrastructure for communications and transit. The post E-Visa Service to be Offered for 6 Additional Entry Points appeared first on The Irrawaddy Magazine.

Father of Koh Tao Accused Describes Threats Against His Son Posted: 24 Oct 2014 05:15 AM PDT Parents of the Koh Tao murder suspects visit the Koh Samui provincial legal department office on Friday. (Photo: Min Oo / The Irrawaddy) CHIANG MAI, Thailand — Tun Tun Hteik, the father of Win Zaw Htun, one of two Burmese suspects in the Koh Tao murder case, told The Irrawaddy on Friday of threats made against his son by Thai police that led to his confession. The parents of the two Burmese migrants accused of killing two British tourists arrived at Koh Samui in southern Thailand on Friday morning and were able to meet their sons for the first time since their arrest. "When I asked him why he confessed [to killing the British tourists], he said that the police and interpreter threatened to kill them—to cut off their hands and legs and throw them into the sea and to pour fuel on them and set them on fire. They then confessed as they were afraid," Tun Tun Hteik said. "So, they have now openly admitted that they didn't kill them." Win Zaw Htun and Zaw Lin, both 21 years old, were detained by police on Oct. 2 for the alleged murder of British tourists David Miller and Hannah Witheridge, whose bodies were found on the morning of Sept. 15 on Koh Tao in Thailand's Surat Thani province. Aung Myo Thant, a Burmese lawyer assigned by the Burmese Embassy in Bangkok to assist the accused during the legal process, told The Irrawaddy that his group, along with the suspects' parents, met the two migrants from 11:30 am to 1:30 pm. "Basically, they [the accused] admitted that they weren't involved in this crime. We submitted documents signed by their parents to the legal provincial office [the prosecutor's office] on Koh Samui to review the case," Aung Myo Thant said. The Koh Tao murders have made international headlines, with rights groups and other observers, including from within Thailand, openly critical of the Thai police's handling of the investigation. In early October, Thailand's national police chief Somyot Poompanmoung told reporters on Koh Tao that the two Burmese migrants had confessed to the killings. He also said that DNA samples taken from the two men matched DNA found on the female victim. Htoo Chit, executive director of the Foundation for Education and Development migrant rights group, also traveled with the suspects' parents to Koh Samui. "Their parents are happy as their sons officially reported that they didn't commit the crime," Htoo Chit told The Irrawaddy. Surapong Kongchantuk of the Lawyer's Council of Thailand said on Friday that his legal team would help the suspects to ensure they receive justice in accordance with Thai law. "We want and hope to see the truth come out in this case in order to arrest those who really committed the crime," Surapong said. The two accused men also told the Thai fact-finding team, who met with the two suspects on Koh Samui, that they weren't responsible for the murders. "They said they didn't kill [the two British tourists] or rape the female tourist. They said they didn't even know about the incident," added Surapong. The parents of the two migrants arrived in Bangkok on Wednesday and met with members of the Lawyers Council of Thailand and the National Human Rights Commission of Thailand at the Burmese Embassy. The post Father of Koh Tao Accused Describes Threats Against His Son appeared first on The Irrawaddy Magazine.

AirAsia to Fly Direct to Naypyidaw From Kuala Lumpur Posted: 24 Oct 2014 05:11 AM PDT AirAsia planes are seen on the runway at Kuala Lumpur International Airport on Aug. 19, 2014. (Photo: Reuters) RANGOON — The Malaysia-based low-cost carrier AirAsia will soon fly direct flights between Naypyidaw and Kuala Lumpur as the Burmese capital prepares to host a major regional summit next month. The maiden flight will take place on Nov. 10, 2014, and will be AirAsia's second direct flight to Burma, after Rangoon-Kuala Lumpur, Malaysia state media reported on Friday, citing a press release from AirAsia. Tickets start from 169 ringgit (US$52). The airline also offers indirect flights from Kuala Lumpur to Mandalay, via Bangkok. AirAsia will be the first airline to fly directly to Naypyidaw from Kuala Lumpur, the Malaysian capital, but Win Swe Tun, director general at Burma's Department of Civil Aviation, told The Irrawaddy that the flights would likely only be offered for about a month. "There is the 25th Asean Summit in November and the AirAsia company is planning the scheduled flights for the delegates to attend the summit," he said. The summit is scheduled to run from Nov. 12-13. The East Asia summit will follow, concluding on Nov. 14. During the 27th Southeast Asian Games, Thai AirAsia, a joint venture of the Malaysian airline and the Thai firm Asia Aviation, launched a scheduled flight between Naypyidaw and Bangkok for visitors attending the SEA Games, which were held in Rangoon and Naypyidaw. That service is no longer offered. AirAsia was founded in 2001, and has since flown 220 million guests to more than 88 destinations, according to the company's website. The post AirAsia to Fly Direct to Naypyidaw From Kuala Lumpur appeared first on The Irrawaddy Magazine.

Burmese Women Honored for Activism Posted: 24 Oct 2014 04:25 AM PDT From right to left, Khin Khin Kyu, Ma Thandar and Naw Ohn Hla, along with Wai Wai Nu, far left, will receive awards for their peace advocacy. (Photo: Facebook / Sanda Thant) CHIANG MAI, Thailand — Two Burmese women activists and an advocacy group will accept awards from the N-Peace Network alongside other Asian peace activists at a ceremony in Bangkok on Friday evening. N-Peace, a network of peace advocates active in six nations, is honoring 11 advocates from seven Asian countries with the N-Peace Awards 2014, for their work in advancing women, peace and security. The network is not active in Burma, but it does maintain contacts with Burmese advocacy groups. The Burmese women are also participating in a two-day N-Peace workshop prior to the award ceremony. "We reflect on, and find solutions to, the persistent challenges of peacebuilding in Asia," Naw Ohn Hla, leader of the award-winning Burmese advocacy group, told The Irrawaddy. Her Rangoon-based Democracy and Peace Women Network (DPWN) will be honored as winner of the "Thinking Outside the Box" category. Cofounded in 2012 by Naw Ohn Hla and Ma Thandar—both former political prisoners—DPWN raises awareness of human rights among farmers and campaigns against domestic violence. The former is of particular value in Burma, where land disputes and confiscations make headlines regularly. Ma Thandar made headlines of her own earlier this week when she held a press conference to bring attention to the disappearance of her journalist husband. On Friday, she found out that her husband, Aung Kyaw Naing, was killed by the Burma Army. "There is still more work to be done in boosting awareness of marginalized people's rights as we, people of Burma, are still under the suppression of the authorities and face human rights violations," said Naw Ohn Hla, whose group is active in lower and central Burma, and in Karen and Mon states in the country's southeast. Winning individual awards are a young peace activist named Wai Wai Nu and minority women's rights activist Mi Khin Khin Kyu. Wai Wai Nu is a former political prisoner and currently a peace activist and defender of the rights of marginalized women. Along with a Pakistani man, Shah Zaman, she is co-winner of the "Peace Generation: Young Women and Men Building Peace" award. Khin Khin Kyu, an ethnic Mon woman who is also known as Kun Chan Non, will be honored under the category "Untold Stories: Women Transforming Their Communities," together with four other women from Afghanistan, Indonesia, Nepal and Pakistan. The N-Peace Awards were first launched by the UN Development Program (UNDP) in 2011 to recognize and profile women and men leaders and activists effecting positive change from the grassroots to national levels in Asia. Coordinated by the N-Peace Network across Indonesia, Pakistan, Burma, Nepal, Afghanistan, and the Philippines, the awards spotlight women and men who demonstrate leadership in building peace and community empowerment. The post Burmese Women Honored for Activism appeared first on The Irrawaddy Magazine.

In Arakan State, Concerns Grow Over Rise in Drug Seizures, Abuse Posted: 24 Oct 2014 04:20 AM PDT In June, Burmese authorities organized a drug-burning ceremony in Rangoon that destroyed a reported US$19 million worth of illicit drugs. (Photos: Hein Htet/ The Irrawaddy) Recent drug seizures and reports of growing drug abuse in western Burma's Arakan State are causing concern among local residents and state authorities, with some fearing that the developments indicate a rise in drug trafficking through the region to neighboring Bangladesh. In September, at Nandawgon City Wall of the old Arakan temple complex of Mrauk-U children playing in the area found a hidden haul of some 400,000 methamphetamine pills, Mrauk-U Township police force have said. Earlier this month, about 600,000 pills were found by Rangoon Division Police hidden in bales of clothes on a bus that was about to leave Rangoon for Arakan State. Mrauk-U residents said they were surprised to hear that such a large amount of drugs was found in their small community, located some 50 km (30 miles) north of the Arakan capital Sittwe and about 150 km (90 miles) southeast of the Burma-Bangladesh border. "Police still can't find the owner. It is the largest drug bust in Mrauk-U so far," said local resident Maung Than. "Since most of the people in Mrauk-U are poor they can hardly afford such expensive drug. Some youths use expensive drug, but the number is very limited. "So, the tablets seized at Nandawgon would have been meant for export to the neighboring country, I think," he said. Some Arakanese politicians said that in recent years they witnessed an increase in drug abuse among Arakanese youths. "It can be said drug abuse is the worst in Sittwe. Particularly, the extent to which it has spread among students and youths is a real concern," Sittwe resident and Arakan State Assembly lawmaker Aung Mya Kyaw told The Irrawaddy. He said he believed the abuse was linked to an increase in drug trafficking to neighboring Bangladesh, adding, "The state authorities do not pay attention to drug problem." Ba Shwe, an Arakanese resident of Maungdaw Township, said, "Those aged between 18 and 25 are using more [drugs]. Since this is a border area, [abuse] is worse and police and authorities concerned do not give serious attention. Everyone knows who buys and sells drug as our Maungdaw Township is quite small." Drugs from Shan State, Asia's biggest region for production of methamphetamine and opium, are known to be trafficked from northern Burma into India's northeastern states. Reports of cross-border drug-trafficking to Bangladesh through the Arakan region, although often offering scant detail, have appeared in the Bangladeshi media. Win Myaing, an Arakan State government spokesman, confirmed that illicit drugs were regularly being seized in the state, but declined to be drawn on whether this pointed to a rise in drug trade. "There have been frequent drug busts, there were also in the past," he said, adding that most seized drugs were being trafficked from Burma to Bangladesh via Arakan State. Since 2012, Sittwe and townships in northern Arakan State, such Kyauktaw, Mrauk-U, Maungdaw, and Buthidaung, have been the scene of outbreaks of bloody inter-communal violence between the Arakanese Buddhists majority of state and the roughly 1 million Rohingya Muslims who live in parts of northern Arakan. Border townships Maungdaw and Buthidaung are not easily accessible due to a heavy presence of security forces, which have been deployed to guard the border and to enforce a range of harsh restrictions on the stateless Rohingya who make up most of the population in the two townships. Win Myaing, whose has frequently levelled all sorts of public accusations against the Rohingya, was quick to blame the drug trafficking reports on the stateless minority, especially on the 140,000 displaced Muslims forced to live in crowded, squalid camps around Sittwe and in northern Arakan. "Since they [displaced Rohingya] have a lot of money provided by international [aid] community, they can deal and use drugs," he claimed. In Bangladesh, where tens of thousands of Rohinya refugees live in camps near the border, nationalist politicians and media have reportedly also been keen to link the unpopular group to drug trafficking from Burma. Jeremy Douglas, Southeast Asia and Pacific regional representative for the UN Office on Drugs and Crime in Bangkok, told UN news agency IRIN in June that there had been no confirmed reports of Rohingya involvement in drug trafficking, but he added, "Drug trafficking networks … use people who don’t have much to lose to operate in dangerous border areas—this is what appears to be happening between Bangladesh and Myanmar." Additional reporting by Paul Vrieze. The post In Arakan State, Concerns Grow Over Rise in Drug Seizures, Abuse appeared first on The Irrawaddy Magazine.

Missing Reporter Killed in Custody of Burma Army: Report Posted: 23 Oct 2014 11:02 PM PDT Aung Kyaw Naing, also known as Par Gyi, was reportedly killed in custody of the Burma Army. (Photo: Yamoun Nar / Facebook) RANGOON — A local journalist who was reporting in Mon State on the recent fighting between the Burma Army and Karen rebels was killed while in custody of government soldiers, according to the Interim Myanmar Press Council. Kyaw Min Swe, editor-in-chief of local newspaper The Voice and the Press Council's general secretary, told The Irrawaddy on Friday morning that the council had received a statement from the Burma Army on Thursday, informing them of the death of Aung Kyaw Naing, also known as Par Gyi. He was detained on Sept. 30 by the army's Light Infantry Battalion 208 in Mon State's Kyaikmayaw town and had not been heard of since. The army's statement, which was obtained by The Irrawaddy on Friday afternoon, claimed that the reporter had been in the custody of an unnamed "roving battalion" looking for DKBA rebels in an area outside of the town on Oct. 4, when he "tried to seize a gun from a guard and run away; then he was shot dead the guard" at around 7:40 pm. The statement also alleged that the journalist had been a "communications captain" of the Klohtoobaw Karen Organization, the political wing of the Democratic Karen Benevolent Army (DKBA). The statement added that the body of the journalist had been buried in Shwe War Chong, a village some 20 km from Kyaikmayaw, and that his wife would be informed of his death. The statement was not printed on official letterhead of the Ministry of Defense and was undated. Kyaw Min Swe said he knew that it had come from the army because it was emailed to the Press Council by an aide to Commander-in-Chief Min Aung Hlaing. "We are going to discuss these events with the members of the Press Council soon," he added. Aung Kyaw Naing had worked with The Voice's reporters based in the Mon State capital Moulmein. The 49-year-old freelance journalist regularly reported on ethnic issues along the Burma-Thai border and contributed to different Rangoon-based papers. He travelled to Mon State's Kyaikmayaw Township late last month to cover an outbreak of heavy fighting between the DKBA and the army. It is believed that the army's Light Infantry Battalion 208, based in Mon State's Kyaikmayaw town, arrested Aung Kyaw Naing in order to interrogate him about the whereabouts of the DKBA units, which were on the run from the army at the time. He was last seen returning to Kyaikmayaw town from an area of DKBA control when was apprehended by authorities, police and soldiers in late September, his wife Than Dar said last week. She is an activist with the Rangoon-based Peace and Women Network and made a public appeal to the army calling for his immediate release. When The Irrawaddy contacted Than Dar in Bangkok on Friday morning she said that no one had informed her yet of her husband's death. "If he is dead, I want to get his body back," she said in a phone call. "I could not accept that he has died. I will continue fighting for justice. "I don’t want any wives or daughters to suffer like we suffer. I will proceed with the charges [against the army] for torture and death," said Than Dar, who has one daughter with Aung Kyaw Naing. The Voice reported the news of the killing on the front page on Friday morning. Kyaw Min Swe said the daily had gone ahead with publishing the news before informing the victim's wife because she was abroad. "We tried to contact her but she is in Thailand," he said. Saw Lont Lone, the secretary of Klohtoobaw Karen Organization, denied to The Irrawaddy that Aung Kyaw Naing was in any way affiliated with the Karen rebel group, as the army claimed. "He is just a journalist and we helped him when he came to gather news, that’s all," he said. Shawn Crispin, Southeast Asia representative for the Committee to Protect Journalists, said in a reaction on Friday afternoon that the government should publicly address the allegations. "We are gravely concerned by preliminary reports that journalist Aung Kyaw Naing may have been killed while in military custody. Government authorities must investigate these reports and if founded reveal publicly the circumstances behind his death," he told The Irrawaddy. Reporting by Lawi Weng, Nyein Nyein and Kyaw Hsu Mon. This story was updated on Oct. 24 at 3 pm. The post Missing Reporter Killed in Custody of Burma Army: Report appeared first on The Irrawaddy Magazine.

Protesters in Hong Kong to Vote on Government Proposals Posted: 23 Oct 2014 10:56 PM PDT A large banner hung by pro-democracy protesters is seen at Lion Rock, overlooking Kowloon in Hong Kong, on Oct. 23, 2014. (Photo: Reuters) HONG KONG — Pro-democracy protesters in Hong Kong say they will hold a straw poll on government proposals they had rejected earlier in the week as the campaign in the Chinese-controlled city entered the fifth week on Friday. With crowds likely to swell at the weekend, student leaders late on Thursday announced a plan for an electronic poll of protesters on reform proposals tabled by senior city government officials in talks on Tuesday that failed to break the deadlock. "The government always says that the students don't represent the people in the plaza and Hong Kong citizens, so we are here to make all our voices heard and we will tell the government clearly what we think," Alex Chow, one of the students guiding the movement, told protesters late on Thursday. Demonstrators would be asked whether the government's offer to submit a report to China's State Council, or cabinet, on the Occupy protests that have roiled Hong Kong, would have any practical purpose, with a bid to collating these responses to strengthen their bargaining position. Friday marks the start of the fifth week since tens of thousands began blocking major roads to oppose a plan by the Chinese central government to let Hong Kong people vote for their leader in 2017 for the first time but limit candidates to those vetted by a panel stacked with Beijing loyalists. The United Nations Human Rights Committee on Thursday gave a boost to the protest movement by calling on China to ensure universal suffrage in Hong Kong, including the right to stand for election as well as the right to vote. Committee members voiced concerns about the right to stand without unreasonable restrictions, chiming with protester demands for civil nominations for the 2017 poll. A chasm exists between the government and the protesters who have been calling for open nominations in 2017 and for the current leader, Leung Chun-ying, to step down. The government branded the movement's occupation of streets illegal and has repeatedly said open nominations are not allowed under the laws of the former British colony. The talks on Tuesday marked a shift in the government's approach from stonewalling to dialogue, although expectations for a breakthrough had been low. The poll to be held on Sunday would be the first potentially constructive response from the protesters after the student leaders emerged from the talks disappointed. They planned to hand the results to the government on Monday. The poll will also seek views on the establishment of a platform for dialogue on constitutional development, and whether it should come into effect before 2017 as student leaders want. "I am ready to vote any time. My demands have never changed but my expectations from the government have been lowered," said Lau Wah, a 21-year-old protester helping to man a provisions station amid a sea of tents at a major protest site. Protesters would register for the poll, which would be restricted to occupied areas, with their phone number and Hong Kong identity card. "We will use these figures to bargain with the government on Monday. We will be able to better represent the people and take the initiative on behalf of them," said Benny Tai, a law professor and one of the organizers of the "Occupy" movement. A massive yellow banner with an umbrella symbolizing the people's movement and calling for "real universal suffrage" was hung from the iconic Lion Rock mountain on Thursday by a group of climbing enthusiasts, in a prominent symbol of the movement that could be clearly seen from the city below. The post Protesters in Hong Kong to Vote on Government Proposals appeared first on The Irrawaddy Magazine.

A Divisive Dialogue Posted: 23 Oct 2014 10:35 PM PDT A Divisive Dialogue The post A Divisive Dialogue appeared first on The Irrawaddy Magazine.

Three Major Nations Absent as China Launches Asian Bank Rival Posted: 23 Oct 2014 10:31 PM PDT China's President Xi Jinping, front center, poses for photos with guests at the Asian Infrastructure Investment Bank launch ceremony at the Great Hall of the People in Beijing on Oct. 24, 2014. (Photo: Reuters) SHANGHAI — Australia, Indonesia and South Korea skipped the launch of a China-backed Asian infrastructure bank on Friday as the United States said it had concerns about the new rival to Western-dominated multilateral lenders. China's US$50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both multilateral lenders that count Washington and its allies as their biggest financial backers. China, which is keen to extend its influence in the region, has limited voting power over these existing banks despite being the world's second-largest economy. The AIIB, launched in Beijing at a ceremony attended by Chinese Finance Minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50 percent. Indonesia was not present and neither were South Korea and Australia, according to a pool report. Japan, China's main rival in Asia and which dominates the $164 billion Asian Development Bank along with the United States, was also not present, but it was not expected to be. Media reports said US Secretary of State John Kerry put pressure on Australia to stay out of the AIIB. However, State Department spokeswoman Jen Psaki said: "Secretary Kerry has made clear directly to the Chinese as well as to other partners that we welcome the idea of an infrastructure bank for Asia but we strongly urge that it meet international standards of governance and transparency. "We have concerns about the ambiguous nature of the AIIB proposal as it currently stands, that we have also expressed publicly." In a speech to delegates after the inauguration, Chinese President Xi Jinping said the new bank would use the best practices of the World Bank and the Asian Development Bank. "For the AIIB, its operation needs to follow multilateral rules and procedures," Xi said. "We have also to learn from the World Bank and the Asian Development Bank and other existing multilateral development institutions in their good practices and useful experiences." The Australian Financial Review said on Friday that Kerry had personally asked Australian Prime Minister Tony Abbott to keep Australia out of the AIIB. "Australia has been under pressure from the US for some time to not become a founding member of the bank and it is understood Mr. Kerry put the case directly to the prime minister when the pair met in Jakarta on Monday following the inauguration of Indonesian President Joko Widodo," the paper said. South Korea, one of Washington's strongest diplomatic allies in Asia, has yet to say it will formally participate in the bank. Its finance ministry said last week it has been speaking with China to request more consideration over details such as the AIIB's governance and operational principles. "We have continued to demand rationality in areas such as governance and safeguard issues, and there's no reason [for Korea] not to join it," South Korean Finance Minister Choi Kyung-hwan said in Beijing on Thursday. The Seoul-based JoongAng Daily quoted a South Korean diplomatic source as saying: "While Korea has been dropped from the list of founding members of the AIIB this time around, it is still in a deep dilemma on what sort of strategic choices it has to make as China challenges the US-led international order." The AIIB is expected to begin operations in 2015 with senior Chinese banker Jin Liqun, ex-chairman of investment bank China International Capital Corp, expected to take a leading role. Last month, China's finance ministry said Australia and South Korea had expressed interest in the AIIB. On Thursday, the Asian Development Bank (ADB) chief said he did not welcome a China-backed rival bank that will have a virtually identical aim. "I understand it, but I don't welcome it," said bank president Takehiko Nakao. "I'm not so concerned." The ADB, created in 1966, offers grants and below-market interest rates on loans to lower to middle-income countries. At the end of 2013, its lending amounted to $21.02 billion. China has a 6.5 percent stake in the ADB, while the United States and Japan have about 15.6 percent each. The post Three Major Nations Absent as China Launches Asian Bank Rival appeared first on The Irrawaddy Magazine.

Foreign Policy Question Mark Over Indonesia Leader Posted: 23 Oct 2014 10:26 PM PDT New Indonesian President Joko Widodo walks with heads of the military, police and intelligence to address the media at the Presidential Palace in Jakarta on Oct. 22, 2014. (Photo: Reuters) WASHINGTON — The remarkable rise of Indonesia's new president has captured popular imagination at home and won praise internationally, but Joko Widodo still needs to prove his foreign policy prowess. The United States is looking for him to sustain Jakarta's role as a regional leader in Southeast Asia. US Secretary of State John Kerry attended the inauguration this week of Jokowi, as he is better known, whose personal story is symbolic of Indonesia's own transition from autocracy to democratic rule. After he was sworn in, the leader of the world's fourth-most populated country traveled to the presidential palace by horse and cart, underscoring his credentials as a champion of the poor. The United States and other foreign governments will be willing Jokowi to do well. The 53-year-old, who previously served as governor of the congested capital, Jakarta, must make tough decisions, and soon, to boost economic growth in the sprawling, island nation of 250 million people. Washington will be hoping for a more welcoming climate for foreign investors. Jokowi is poised to announce his cabinet line-up, including the key position of foreign minister, amid lingering questions about the president's own dearth of experience in foreign affairs, and whether his ambitious domestic agenda, facing hostile political opposition, will preoccupy him. The Obama administration is paying close attention to how Jokowi fares, and his management of Indonesia's relations. The United States has made engagement with Southeast Asia a centerpiece of its attempt to rebalance its foreign policy toward the fast-growing economies of the Asia-Pacific, and has been supportive of Indonesia's activist role. President Barack Obama, who has a personal connection with Indonesia because he spent part of his childhood there, visited twice in his first term, and Kerry pulled out the stops to attend Monday's inauguration, taking 26 hours of trans-oceanic flights from Boston. Bilateral relations have thrived during the tenure of outgoing president, Susilo Bambang Yudhoyono, although the trade and investment ties with the United States have been difficult because of Indonesian protectionism, including in the mining industry, said Murray Hiebert, deputy director of the Southeast Asia program at the Center for Strategic and International Studies in Washington. Indonesia has emerged as de facto leader of Southeast Asia's regional bloc, best known by its acronym, Asean. Indonesia mediated when a border dispute between Thailand and Cambodia flared; it nudged Burma toward greater openness; and it helped patch up differences among Asean's 10 members after an embarrassing public dispute in 2012 over its stance to maritime disputes involving China. Indonesia performs a balancing act in its relations between strategic rivals China and the United States. Indonesia doesn't count itself among nations contesting for islands in the South China Sea, but it is concerned that China's expansive maritime claims extend to the Indonesian-held Natuna Islands. Indonesia's military chief in April said it was strengthening its forces there. The United States also views Indonesia, the country with the highest population of Muslims, as a voice of moderation and important partner in countering Islamist militancy. Indonesia has outlawed membership of the Islamic State group that has taken control of a swath of Iraq and Syria. Washington wants Jakarta to stop any flow of fighters from Indonesia and tighten controls on terrorist financing. Aaron Connelly, an Indonesia specialist at the Australian think tank Lowy Institute, predicted a continuation of Indonesia's slight lean toward the West. But he said Jokowi was likely to show less leadership on foreign policy than Yudhoyono and delegate more to advisers, which could lead to competition among them and give greater influence for nationalist voices at the margins. "For the first time in 10 years, the Indonesian state will lack a paramount policy-maker on foreign affairs at its apex," Connelly wrote in a recent commentary. Jokowi, formerly a furniture maker, has risen to prominence on the back of his hard work as Jakarta governor. He has a chance to make his international mark at a sequence of regional summits coming in November, to be hosted by China, Burma and Australia and attended by Obama. In the meantime, he has plenty to grapple with at home. The transition to democracy after the dictatorship of Suharto, who was toppled in 1998, took root during Yudhoyono's 10-year tenure. But economic growth on the back of a commodities boom has slowed. Infrastructure is fraying and corruption is rife. Economists say Jokowi must soon decide how much to cut fuel subsidies that will cost the government US$30 billion this year unless they are trimmed—a move likely to stoke street protests. Jokowi's supporters have already expressed concerns any reforms he tries to enact could be blocked by an opposition led by the Suharto-era general he defeated in July elections. Legislators loyal to that defeated candidate voted last month to scrap direct elections for local officials, seen as a setback to the democratic system that enabled Jokowi to rise in politics. The post Foreign Policy Question Mark Over Indonesia Leader appeared first on The Irrawaddy Magazine.

US Think Tank Faults Burma on Arakan Response Posted: 23 Oct 2014 10:03 PM PDT Burmese President Thein Sein, right, and US President Barack Obama share the stage in Bali on Nov. 19, 2011. Relations between the two countries have improved rapidly since this first meeting between the two leaders. (Photo: Reuters) WASHINGTON — An influential Washington think tank is criticizing Burma's government for presiding over a "humanitarian catastrophe" in western Arakan State and doing little to track down perpetrators of Buddhist-on-Muslim violence around the country. Those criticisms come in a very mixed assessment by the Center for Strategic and International Studies of the situation in Burma, three years after it began a historic transition to democracy from decades of oppressive and ruinous military rule. The centrist think tank, which has the ear of the Obama administration, visited Burma in August and issued its report on Wednesday. President Barack Obama, who counts US support of the Southeast Asian nation's reforms as a foreign policy success, will make his second visit to Burma in two years when it hosts a summit of regional leaders in November. The report points to some hopeful signs in Burma, which is gearing up for elections in late 2015. It cites prospects for a nationwide cease-fire in long-running ethnic conflicts, improvements in a woeful health care system and economic reforms that have spurred rapid growth. But the report also says power is deeply skewed in favor of the military, and that decision-making on key political reforms has stalled. It says that likely reflects a struggle between "reformists" allied to President Thein Sein — the former general who has overseen the shift to democracy — and establishment interests who fear losing privileges through more change. "It is not yet clear that the military's overwhelming dominance will diminish significantly as the current government approaches the end of its formal tenure in April 2016," the think tank says. The report says massive human suffering continues in Arakan, where 140,000 stateless Rohingya Muslims have been rounded up into barbed-wire-enclosed camps after sectarian violence erupted in mid-2012 with majority Buddhists. It said for months the Burmese government has "abdicated its leadership responsibilities" as worsening violence drove international humanitarian groups out. The government's action plan to address the situation in Arakan State — criticized by human rights groups as discriminatory — puts forward ideas for peaceful coexistence, citizenship and resettlement, but it remains to be seen if the government can defuse the crisis, the report says. In the past three years, the United States has led the charge as Western nations have re-engaged with Burma and rolled back sanctions, and Wednesday's report advocates continued American engagement despite congressional concerns over Burma's "backsliding" on reforms. The report calls for the US to double health aid to Burma, including in the fight against drug-resistant malaria, and to sustain limited US engagement with the military. It says however, those ties shouldn't be expanded before it is clear the military hasn't intervened in the elections. The post US Think Tank Faults Burma on Arakan Response appeared first on The Irrawaddy Magazine.

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