Wednesday, August 28, 2013

The Irrawaddy Magazine

The Irrawaddy Magazine

Thein Sein, Shwe Mann Rivalry Ripples Through Parliament

Posted: 28 Aug 2013 06:29 AM PDT

President Thein Sein, left, and Union Parliament Speaker Shwe Mann, right, at a USDP party conference in Naypyidaw in October 2012. (Photo: The Irrawaddy)

President Thein Sein, left, and Union Parliament Speaker Shwe Mann, right, at a USDP party conference in Naypyidaw in October 2012. (Photo: The Irrawaddy)

RANGOON — A power struggle between President Thein Sein and Union Parliament Speaker Shwe Mann has resulted in a division in Parliament between army representatives and MPs from the ruling Union Solidarity and Development Party (USDP), lawmakers say.

At a session of the Lower House last Friday, the divide was clear during a heated debate of a bill that is opposed by Shwe Mann.

The bill, which was proposed by the Union Election Commission (UEC), would allow for the removal of lawmakers from Parliament if the election commission receives complaints about their performance from 1 percent of their constituents.

Shwe Mann and other USDP lawmakers oppose the bill, saying 1 percent is not a large enough base of criticism to warrant removal from office. If enacted into law, they said the bill could stir up political unrest.

Army MPs have a reputation for staying quiet during discussions of bills, but on Friday they took part in a heated debate.

While three USDP lawmakers called to suspend talks on the bill until after the Constitution is amended, army representatives in Parliament—who are not elected by a constituency—demanded that the bill be discussed and approved.

Both sides launched verbal attacks against each other until Shwe Mann decided to suspend discussion of the controversial bill.

Burma's Constitution reserves 25 percent of seats in Parliament for military representatives, who are appointed by the commander-in-chief of the armed forces.

Ye Htun, a Lower House lawmaker representing Shan State's Hsi Baw Township, said military MPs have sided with Thein Sein and are consequently opposing Shwe Mann and other USDP lawmakers.

He said it was clear why the election commission's bill would be supported by Thein Sein and government officials but not by Lower House lawmakers.

"The chairman of the UEC and at least five members can be appointed by the president, so we can say they are his men," the lawmaker said.

If the UEC's bill were enacted, he added, "The president, vice president and other high-ranking officials at the Union level could be charged and dismissed by Parliament, while all lawmakers—including the speaker—could also be ousted by the UEC, which comprises the president's men, with complaints from 1 percent of their voters."

Phone Myint Aung, a member of the Upper House, cautioned against rivalries between Parliament and the government, calling for greater collaboration and mutual respect.

In recent months, lawmakers have reported that a political rivalry has developed between Thein Sein, who also belongs to the USDP, and Shwe Mann, who was the third-ranking general in the former regime and has expressed ambitions to run for president in the 2015 election.

Tension has reportedly been related to the ouster of the union auditor general last year during a major cabinet shakeup by Thein Sein, as well as the government's decision to cut Parliament's budget. Disagreements have also arisen over the current peace process and administrative matters.

State-run newspapers and broadcasters have reported accusations by lawmakers against government officials for allegedly not following the Constitution in efforts to draft bills.

Political observer Dr Yan Myo Thein, however, warned that talk of a rivalry between Thein Sein and Shwe Mann was only speculation.

"We should also consider the fact that there is a possibility of division into two groups—the soft and hardliners—in the USDP, in order to systematically attract public attention and regain support."

Promising Medical Assistance, Chinese Hospital Ship Docks at Thilawa

Posted: 28 Aug 2013 06:06 AM PDT

The Chinese hospital ship 'Peace Ark' is docked at Thilawa Port in Rangoon Division on Wednesday. (Photo: JPaing / The Irrawaddy)

The Chinese hospital ship 'Peace Ark' is docked at Thilawa Port in Rangoon Division on Wednesday. (Photo: JPaing / The Irrawaddy)

THILAWA PORT, Rangoon Division — The Chinese hospital ship dubbed "Peace Ark" docked at Thilawa Port near Burma's commercial capital on Wednesday, with hundreds of Burmese naval personnel in attendance along with Rangoon-based Chinese nationals and members of China's diplomatic corps.

Rear Adm Shen Hao, deputy chief of staff of the East Sea Fleet of the Chinese Navy, told dozens of journalists at a press conference at the port that Chinese doctors and nurses would provide medical treatment, including administering Chinese traditional treatments, for Burmese people on board the ship.

Shen Hao also said he would dispatch Chinese doctors and nurses to hospitals, clinics, schools and orphanages to treat those in need of medical treatment.

"Our main objective for this visit is to provide medical treatment to the Burmese people and military forces. We also want to show friendship between Myanmar and China," Shen Hao said.

"The trip will benefit the pauk hpaw [brotherly] bilateral friendship between Myanmar and China as well as its people. I believe our friendship, especially between naval forces, will be better in the future," added Hao.

During its one-week docking in Burma, the ship will also send its physicians and nurses to Rangoon's Chinatown, where a substantial portion of residents are ethnic Chinese. Medical crews will also provide free on-board treatment to selected local residents and Burmese military personnel, from simple medical check-ups to surgeries.

"For China, the pauk hpaw relationship with Myanmar is very important," Chinese Ambassador to Burma Yang Houlan told The Irrawaddy. "And this time, they [the Chinese medical team] have come here to promote China's long-standing and mutual friendship.

The Chinese ambassador said he hoped the free medical services, made at the arrangement of Burmese authorities, would benefit not only military personnel but also average Burmese citizens in need.

The Peace Ark is on an eight-country "Mission Harmony – 2013" tour this year, with Thilawa serving as its latest port of call.

Some 4,000 square meters in size, the hospital ship has 300 beds, 20 intensive care units (ICUs), eight surgical operating theaters and the capacity to accommodate 40 major surgeries a day. Traditional Chinese medicinal remedies will also be shared over the next week, and academic and culture exchanges will be held.

According to a statement by the Chinese Embassy in Rangoon, people who would like to receive free medical treatment on board the ship are asked to register with the Rangoon regional government.

Scant Stocks, Weak Demand Dent Burma’s Hopes Of Rice Revival

Posted: 28 Aug 2013 03:55 AM PDT

To match feature MYANMAR-RICE/

A man works in a rice field in Dala Township, near Rangoon, in 2011. (Photo: Reuters)

RANGOON — Shrinking global demand, poor infrastructure and hesitant investors could leave Burma far short of its rice export target this year, dealing a blow to its ambitions of competing with the world’s top shippers of the grain.

Industry experts and government officials say the 3 million-ton target for the current fiscal year ending March 2014 is unrealistic and Burma, the world’s top rice exporter under British rule in 1934, faces multiple hurdles in revamping an industry that withered during 49 years of military rule.

“It’s quite impossible to export 3 million tons of rice … simply because we can’t expect dramatic increase in rice production this year,” an expert at the Agriculture Ministry told Reuters, requesting anonymity because he was not authorized to speak to media.

Burma’s quasi-civilian government wants to utilize the abundant fertile land of the strategically located country.

Burma borders booming economic growth areas — India, China, Thailand, ASEAN — has sea ports in Indian ocean, and will have a deep sea port in Dawei that will allow shipments through a narrow stretch of the Thai peninsular to the Pacific ocean.

In terms of land, the Irrawaddy Delta is huge and fertile, and has big agricultural potential but lacks the infrastructure to boost production and exports.

Part of that is privatizing the rice industry, in line with a slew of reforms introduced since 2011, when a quasi-civilian government replaced a military junta that decimated an economy squeezed for two decades by Western sanctions, most of which are now suspended.

Burma generated $124 million from 320,000 tons of rice exported from April to July this year, Commerce Ministry data shows. It shipped 1.45 million tons of the grain in 2012/2013 and traders forecast about 1.5 million tons for 2013/2014.

The Agriculture Ministry official said water was the main source of the production problem, with either too much, or too little of it. Long-lasting floods had swamped paddy fields in the southern delta, while the summer crop in the central region was hit by low water levels in dams.

Help Sought

Burma has invited millers and exporters from neighboring Thailand, until recently the world’s biggest rice shipper, to bring expertise and capital to the industry, which exports just 41 percent of the amount it shipped at its peak 79 years ago.

Investors are hesitant however, like many foreign firms interested in Burma but frustrated by the protracted passage of new investment laws and unclear regulations on the agriculture sector, which is among several with restrictions.

Burma’s decades of poverty and isolation under the military have also left it with vastly underdeveloped infrastructure and a power grid unable to fully support even its biggest city – problems many foreign firms do not want to face.

“We’re concerned about energy and electricity, which are not quite stable at this stage,” Manas Kitprasert, president of the Thai Rice Millers Association, told Reuters. “We also need a better logistics system to export smoothly at manageable costs.”

According to traders, most of the rice Burma produces is the low quality 25-percent broken grain, about half of which is sold to neighboring China.

The U.S. Department of Agriculture (USDA) has forecast Burma rice production at 11 million tons in the 2013/2014 fiscal year, up from 10.6 million tons a year earlier, but only just above the 10.25 million tons expected to be consumed by the estimated 60 million people in Burma, where rice is the dietary staple.

That would leave a surplus of just 750,000 tons for export. Even if Burma manages to produce more rice in the next few years, it might not be able to find buyers for it.

Chit Khine, president of Burma Rice Industry Association said demand for Burma’s rice was flat while the world’s biggest exporters had plentiful rice stocks.

Players like Thailand, India and Vietnam, which have better quality grains than Burma, are struggling to sell because importing countries have grown more rice this year.

In addition, a government intervention scheme in Thailand has made its rice uncompetitive in the international market, resulting in massive stockpiles of unsold rice.

Thailand is sitting on rice stockpiles of 17 million tons, almost double a normal year’s exports and nearly half of annual global trade of 38 million. Thai 5 percent broken rice is trading around its lowest in three years.

“They’re well-stocked so we don’t expected to see any huge demand over the next few years,” said a Bangkok-based businessman who trades Burma rice.

Land Prices Soar in Muse As New Zone Attracts Chinese, Burmese Investors

Posted: 28 Aug 2013 03:11 AM PDT

A conceptual illustration of the planned Central Economic Zone project in Muse, a town on the Burma-China border. (Image: The New Light of Myanmar)

A conceptual illustration of the planned Central Economic Zone project in Muse, a town on the Burma-China border. (Image: The New Light of Myanmar)

RANGOON — Chinese and Burmese businessmen have been rushing to buy up land in a new economic zone in the border town of Muse, northern Shan State, causing local land prices to skyrocket, according to residents, who claim that prices have topped US$200,000 per acre.

"This is a big project and Chinese people really like it. Every day, many people from PRC [People's Republic of China] come to purchase lands from that project zone. Generally, the buyers give two hundred million Kyats [about $205,000] for a one-acre plot," resident Sai Aye said.

Such land prices are roughly on par with the market rate for land located on favorable locations, such as near roads, on the outskirts of Rangoon.

Earlier this year, Muse District authorities approved plans for the 288-acre (115-hectare) Central Economic Zone located on the banks of the Shweli River, which demarcates the Burma-China border. Burmese firms Great Hawkham Public Co Ltd and New Star Light Co Ltd were granted rights to develop the zone, government newspaper The New Light of Myanmar reported in June.

New Star Light Company has so far claimed about 200 acres (80 hectare) of land in the project area and offered $25,000 per acre in compensation to affected farmers, said Sai Kyaw, a Muse District farmer who sold his land.

Although this compensation sum is far above the rates that farmers in for instance the Thiliwa Special Economic Zone near Rangoon can expect, Muse residents were still disgruntled because Chinese investors were now offering even higher prices, according to Sai Kyaw.

"New Star Light Company started the project by giving 25 million kyat [$25,600] for each acre of farmland. But now, Chinese people buy the land that is not yet confiscated for the project for 100 million kyats [$105,000]," the farmer complained. "So, the owners of the confiscated farmlands feel really sorry. However, the companies are partly supported by the government. We cannot object to the project."

Real estate development in Muse Central Economic Zone is said to include hotels, jade trading shops, supermarkets, recreation centers and business towers. A conceptual illustration of the completed project depicts a mix of futuristic high-rise buildings, malls and modern residential areas in the town.

Muse is located on the opposite riverbank of the Chinese border town Ruili, Yunnan Province. It is the country's most important border trading post and functions as a conduit for the growing trade between Burma and Yunnan Province, which was valued at about $2.7 billion in 2011, according to Chinese state news agency Xinhua.

Sai Aik Maung, another local farmer, said he feared he would be forced to part with his farmland because Burmese firms and Chinese businessmen seeking to buy land had the support of local authorities.

He said wanted more than $25,000 per acre as he would be without a livelihood after he sells his land. "We have been farmers ever since the days of our grandparents. Now, even if we cannot continue as farmers, we want to get good prices for our farmlands," Sai Aik Maung said.

Additional reporting by Paul Vrieze.

Activist Naw Ohn Hla Boycotts Letpadaung Trial, Cites Judicial Failings

Posted: 28 Aug 2013 02:51 AM PDT

Naw Ohn Hla is pictured after her release from prison, where she was serving time for participating in an illegal protest march, on May 17, 2013. (Photo: The Irrawaddy)

Detained activist Naw Ohn Hla told a court this week in Monywa, Sagaing Division, that she would not attend future trial proceedings, citing her belief that the country's justice system was broken.

The township court in Monywa on Tuesday charged Naw Ohn Hla and nine other farmers from the Letpadaung mining area with organizing an unauthorized gathering, which falls under Section 18 of the Peaceful Assembly Act. Naw Ohn Hla will also be charged with inciting unrest, Section 505(b) of the Burmese Penal Code

"She told the court that she will not come to the court in future because she does not have faith in the judicial system," her lawyer, Robert San Aung, told The Irrawaddy. "'Let them charge whatever they want. I'm not afraid and ready to face any obstacle,' she told me."

"There was a dispute at the court as the police tried to handcuff her. According to the law, women need not be handcuffed while they are present in court," he added.

The accused protestors, all women, were forcibly dragged into waiting police vehicles and detained by authorities near the controversial Letpaduang copper mine area, where they were calling for the suspension of the mining project two weeks ago. The mining venture has led to frequent protests over the last year by members of local communities who say they have been forced off their lands by a project that is harming the environment.

According to Naw Ohn Hla's lawyer, a request for permission to protest in the area was submitted to the local authority in Letpadaung more than five times, but government approval was not granted.

Naw Ohn Hla will be tried on the two counts, while the nine other women are accused of violating Section 18 only.

"I don't want to say much about Section 18, because the authorities are so used to using this section to prevent the people from freedom of speech, but charging Naw Ohn Hla with Section 505 does not reflect the actions of the accused," Robert San Aung said.

Meanwhile, at the Nattalin Township Court in Pegu Division, three activists involved in social networking groups are facing trial on charges of violating the Unlawful Association Act, which requires social organizations to register with the government.

"Actually, we are not an organization but a network," Myint Myint Aye told the court on Tuesday. "Charging us with the unlawful organization act shows that there is no rule of law in the country yet. We want high-ranking officials and parliamentarians who are discussing the rule of law in Parliament to know what is happening here and all over the country."

Myint Myint Aye, Khin Mi Mi Khine and Thant Zin Htet from the Nattalin Social Network and Meikhtila Social Network were detained in June after visiting the village of Pae Ma Khan in Pegu Division's Nattalin Township. The three activists made the visit to show solidarity with farmers there whose land was seized nearly 20 years ago by the Burma Army and local law enforcement.

Burma’s Constitutional Review to Stay Confidential Until Next Year

Posted: 28 Aug 2013 01:56 AM PDT

Burma's Parliament building in Naypyidaw. (Photo: The Irrawaddy)

RANGOON — Burma's Union Parliament approved on Tuesday a four-month timetable to review the country's controversial Constitution, which was drafted in 2008 by the former military regime.

Led by the deputy speaker of Union Parliament, the Constitutional Review Joint Committee will divide itself into small groups to review particular section of the Constitution.

The joint committee will consider the country's historical background as well as current political, economic and social realities, the political maturity of the people, the national reconciliation process, rule of law and stability, according to a statement released on Tuesday.

The committee's findings will be submitted to the Union Parliament by Dec. 31, but the review will be kept confidential until then, the statement said.

Committee members will be exempt from legal punitive actions during the review if they criticize the Constitution, which is currently illegal in Burma.

Dr Zaw Myint Maung, a lawmaker from the opposition National League for Democracy (NLD), told The Irrawaddy that his party would submit to the committee a list of provisions that it would like to amend.

Amending the Constitution has been an objective of NLD lawmakers since they were elected to Parliament in by-elections last year.

"There will surely be discussions during the committee meeting," Zaw Myint Maung told the Irrawaddy. "What we will achieve will depend on those discussions."

The Constitutional Review Joint Committee is made up of 109 members, including 52 lawmakers from the ruling Union Solidarity and Development Party (USDP), 25 army representatives, seven lawmakers from the NLD and others lawmakers from ethnic political parties.

Thai Oil Firm PTT Sees Vietnam as Better Investment Bet Than Burma

Posted: 28 Aug 2013 01:50 AM PDT

Construction site for the Dawei deep-sea port project in southernmost Burma. (Photo: Irrawaddy)

Thailand's state-controlled oil company PTT has begun a feasibility study into funding and building what would be Southeast Asia's biggest refinery—in Vietnam.

The proposals for a huge US$30 billion plant capable of processing 660,000 barrels of crude oil per day could undermine PTT's previously declared interest in investing in Burma's dilapidated and inadequate oil refining industry.

The Burmese Ministry of Energy has said it was in discussions with PTT on building a refinery near Rangoon with a daily processing capacity of 150,000 barrels—three times Burma's current capability.

Burma has just three small old refineries, which together have a capacity of only 57,000 barrels per day, less than half of the country's rising petrol and diesel demand. It has virtually no petrochemical making capacities.

Vietnam suffers from similar problems to Burma: plenty of crude oil and natural gas resources but inadequate oil refining and petrochemical production.

Vietnam has only one refinery and must import two-thirds of its domestic fuel oils such as diesel.

But PTT's mega refinery plan for Vietnam isn't just about filling that country's energy fuels shortfall.

"The giant PTT refinery proposal is about developing a downstream fuels export market by proxy," Bangkok independent energy industries analyst Collin Reynolds told The Irrawaddy.

"PTT plans to sell at least 50 percent of products from this Vietnam refinery into the regional market, which is crying out for diesel, gasoline and other fuels. I dare say some of the fuel would be shipped back to Thailand, where the environmentalist lobby is hampering further expansion of refining and petrochemicals."

A specialist team has been hired by PTT to complete the study by May next year, when it must report back to the Vietnam government, reported Vietnam's Thanh Nien newspaper, quoting PTT executive vice president Sukrit Surabotsopon.

"Construction would take another five years and the plant would begin operating in 2020 with a capacity of 33 million tons, almost five times that of [Vietnam's] sole existing refinery and one of the largest in the world," said the newspaper last week.

PTT's decision to press ahead with plans for a mega refinery in Vietnam comes as the Bangkok company's overseas investment program for the next five years is under review.

PTT, the biggest valued company listed on the Stock Exchange of Thailand, has already slashed its budget for this year by almost 50 percent because of what it termed the knock-on effects of a global economic slowdown. Underlining the industry's uncertainty, PTT in July cut its investment budget for 2013 by nearly $1.5 billion, even though this had been approved only in April.

The PTT investment review, which could affect Burma plans, is separate to its subsidiary PTTEP, which has several developments in Burma's Gulf of Martaban territorial waters.

PTTEP invests primarily in oil and gas exploration and development.

Only last week, PTTEP announced that it had found gas in several exploratory wells in the gulf's M3 block. The announcement gave no indication of the size of the discovery, but PTT said it intended to carry out more drilling early in 2014 and hoped to begin commercial production at M3 in 2016.

PTTEP is planning to begin gas production in its Zawtika field in Burmese waters of the gulf at the end of this year.

However, PTT's capital spending review coupled with its proposed massive project in Vietnam could result in its outlined plans for Burma being shelved.

In addition to a refinery near Rangoon, PTT has been looking at investing in petrochemical and refining possibilities at Dawei on Burma's southeast coast as part of a proposed special economic zone, and developing a chain of roadside vehicle fuel stations across the country.

"PTT have not yet announced any investment cutbacks beyond 2013. All the same, the uncertainty surrounding the overall Dawei project and the general lack of infrastructure in Burma does not weigh well alongside Vietnam right now," said Reynolds.

"None of PTT's ideas for Dawei seem to make much sense without the development of a port and crude oil import terminal, and the Thais cannot attract any meaningful investors. Dawei might reach fruition in the next decade."

PTT might be eyeing Vietnam for such a major investment project as the mega refinery because of the export potential,as the Association of Southeast Asian Nations (Asean) moves toward a single market.

Although Burma is opening up economically, lack of infrastructure such as roads and ports and poor electricity supplies pose a serious problem for export-driven investments.

"It's important for us to ensure we invest at a time that generates the highest returns on investment," a PTT senior manager told The Irrawaddy in an email, speaking on condition of anonymity.

"We are reviewing plans all the time, and local economic circumstances in target countries will determine which investments are to proceed and which will be likely to be delayed or canceled."

Meanwhile, Burma's much awaited offshore licensing round for 30 oil and gas development blocks could face stiff competition from Thailand.

Initial bids for licenses from international companies have already been made for the 30 Burmese blocks. But while an outcome is awaited from Naypyidaw—possibly not until the end of this year—Thailand is preparing to offer 22 blocks for licensing in its territorial waters and also onshore areas.

US Hopes Apache Sales Will Keep Indonesia on Its Side

Posted: 27 Aug 2013 11:29 PM PDT

An AH-64 Apache from the US Army's 101st Aviation Regiment in Iraq. (Photo: Wikimedia Commons).

JAKARTA – Indonesia will buy eight Apache attack helicopters off the United States, it was announced on Monday, as US Defense Secretary Chuck Hagel met Indonesian President Susilo Bambang Yudhoyono in Jakarta in what analysts said was a diplomatic bid to check the rise of China.

During the meeting, Yudhoyono said Indonesia-US cooperation could enhance the prosperity of both nations, as well as have important implications for the peace and stability of Asia, according to a spokesman.

The world's largest economy is in the process of shifting resources in Asia and the Pacific as part of a "pivot" with a view to the emergence of China.

"We are strengthening our bilateral ties and our cooperation in the region," Yudhoyono said on Monday.

Both statesman said the Asia-Pacific region was an engine of global economic growth, underscoring the importance of peace and stability in the region, including a peaceful resolution to South China Sea territorial disputes.

"South China Sea is part of … the larger picture of relations in the region," said Teuku Faizasyah, Yudhoyono's spokesman for international affairs.

Hagel, for whom Jakarta was the second stop on a week-long four-nation trip that began in Malaysia on Saturday, voiced US appreciation for Yudhoyono's leadership, which he said contributed to regional stability.

"I bring you greetings from President [Barack] Obama," Hagel told Yudhoyono at the start of their meeting.

Hagel said the US president was "looking forward to seeing you in October," referring to the Asia-Pacific Economic Cooperation leaders meeting in Bali.

The defense secretary added that Washington was committed to "deepening and strengthening" ties between the two countries.

Obama spent part of his childhood in Indonesia and has called for improved ties with the world's most populous Muslim-majority country, which has embraced democracy since the downfall of dictator Suharto in 1998.

The United States has gradually expanded cooperation with Indonesia's military over several years, even while voicing concerns about the country's human rights record.

US officials say the Indonesian military has improved its human rights practices and that Washington has an interest in expanding cooperation on counter-terrorism.

The US tilt to Asia is driven in part by the region's growing economic importance and concerns over China's expanding military might.

Several analysts said that Monday's announcement of the sale of the eight Boeing AH-64E Apache helicopters in a deal worth $500 million (including radar, training and maintenance), was part of a broader effort to persuade Indonesia to maintain its position as US friend amid the rise of China.

"I think the US needs to keep Indonesia close. And offering military equipment is one way to do it," said Aleksius Jemadu, dean of Pelita Harapan University's social and political science department.

Officials confirmed that the sale represented the culmination of more than a year of behind-the-scenes work by Indonesia, which saw the helicopters as a key part of a wider plan to modernize its weaponry.

A 14-person delegation, including Army Chief Gen. Moeldoko and Defense Ministry Secretary General Lt-Gen Budiman, traveled last week to a Boeing factory in Arizona to inspect the aircraft.

On meeting the Indonesian delegation, Boeing business development manager Dave Bostrum said the deal was important to the evolution of the Indonesian military. "The Apache is expected to be a key part of Indonesia's continuing efforts to improve its strategic defense capabilities," he said.

When it first emerged that Indonesia wanted to acquire the helicopters, two human rights groups—The East Timor Action Network and West Papua Advocacy Team—wrote to the US Congress expressing their opposition to the sale.

Indonesia's defense preparedness has lagged in recent years, with economic problems preventing the country from maintaining or upgrading its military equipment. During his first term, Yudhoyono slashed defense purchases to free up money for economic and social policies, but he later increased the defense budget.

For 2014, defense allocations stand at Rp 83 trillion (US$7.65 billion), the largest share of any government program.

Beside bilateral and regional issues, Yudhoyono and Hagel also discussed global issues—including the conflicts in Syria and Egypt—where Indonesia may play a role. The US has indicated it is preparing for military action in Syria.

"The president expressed Indonesia's position on Syria and Egypt," Faizasyah said.

After meeting with Yudhoyono, Hagel met with Indonesian Defense Minister Purnomo Yusgiantoro in a follow-up to talks held recently at the Shangri-La Dialogue.

Hagel will head to Brunei today for a regional defense gathering that will include China. On Thursday he will fly to the Philippines, his final stop.

Additional reporting from AFP & Reuters

This article was cross-posted from The Jakarta Globe (www.thejakartaglobe.com)

UN Rights Chief Meets Sri Lankan War Survivors

Posted: 27 Aug 2013 10:42 PM PDT

In this photo taken on May 18, 2010, ethnic Tamil women pray during religious rituals at a Hindu temple in Batticaloa, about 260 kilometers (163 miles) east of Colombo, Sri Lanka. (Photo: AP)

MULLIVAIKKAL, Sri Lanka — Survivors of Sri Lanka's civil war complained on Tuesday to the United Nations' human rights chief about missing relatives, military land grabs and a life without basic facilities more than four years after the end of the quarter-century war.

UN High Commissioner for Human Rights Navi Pillay visited Mullivaikkal village in northern Sri Lanka, the site of the final battle between government troops and separatist Tamil Tiger rebels, where hundreds of civilians are alleged to have died.

Pillay told the survivors that she will raise their complaints with government authorities when she meets them later this week.

Earlier, Pillay visited northern Jaffna, the cultural heartland of ethnic minority Tamils, where a group of civilians carrying pictures of their missing relatives called for help in finding them.

Pillay is on a weeklong visit to assess the situation before reporting to the UN Human Rights Council next month. The council passed a resolution in March urging Sri Lanka to more thoroughly investigate alleged war crimes committed by government soldiers and the rebels.

Government troops defeated the Tamil Tigers in May 2009, ending their attempt to create a separate state for Tamils. A UN report said government troops may have killed 40,000 Tamil civilians in the final phase of the war.

Many civilians and rebels said to have surrendered to the military toward the end of the fighting are reported missing.

The rebels are accused of killing civilians, using them as human shields and recruiting child soldiers.

Human rights groups say the military has seized about 6,400 acres (2,589 hectares) of land from war victims since the end of the fighting and now run farms on the land.

China’s Top Paper Says United States Wants Regime Change in Syria

Posted: 27 Aug 2013 10:24 PM PDT

A US military transport plane is pictured in 2008. (Photo: Reuters)

BEIJING — China's top newspaper said on Wednesday the United States and its allies were seeking to use the issue of chemical weapons to pursue regime change in Syria illegally and fan an already ugly and difficult conflict.

The United States and its allies are gearing up for a probable military strike against Syria that could come within days and would be the most aggressive action by Western powers in the Middle Eastern nation's two-and-a-half-year civil war.

Western envoys have told the Syrian opposition to expect a military response soon against President Bashar al-Assad's forces as punishment for a chemical weapons attack last week, according to sources who attended a meeting with the rebel Syrian National Coalition in Istanbul.

The People's Daily, the official newspaper of China's ruling Communist Party, said the overthrow of Iraqi leader Saddam Hussein a decade ago on the pretext he had weapons of mass destruction risked repeating itself in Syria.

"The essence of the Iraq war was to circumvent the United Nations and change the government of a sovereign nation with the aid of force," the newspaper said in a commentary, which it said "contravened the basic principles of morality and justice."

"The international community must be on high alert for certain foreign forces repeating this method in Syria," the paper said. "Since the start of Syria's civil war, the impulse to forcefully topple the Assad government has never vanished."

It also said the world should wait for the outcome of investigations by UN experts into the suspected use of chemical weapons.

Schemes to protect Syria's opposition, including no-fly zones, would only succeed in dividing the unity of the UN Security Council and make it more difficult for the international community to help seek a resolution.

"It even adds oil to the flames of Syria's civil war," The People's Daily said.

The world should be patient in waiting for the outcome of a probe into the suspected use of chemical weapons by UN experts, the newspaper said.

The commentary was published under the pen name "Zhong Sheng," meaning "Voice of China," which is often used to give the paper's view on foreign policy issues.

China has repeatedly condemned any plan that hinted at outside interference or proposed "regime change." China and Russia have vetoed proposed UN Security Council resolutions intended to put pressure on Assad.

Beijing also has been keen to show it is not taking sides and has urged the Syrian government to talk to the opposition and take steps to meet demands for political change, and that a transitional government should be formed.

NY Times Site Inaccessible, Twitter Problems Also

Posted: 27 Aug 2013 10:02 PM PDT

A screen grab shows a Twitter home page. Readers who tried to click on the New York Times' website got nothing but error messages Tuesday afternoon during the site's second major disruption this month, and people also had trouble accessing Twitter.

SAN JOSE, California — Readers who tried to click on the New York Times' website got nothing but error messages Tuesday afternoon during the site's second major disruption this month, and people also had trouble accessing Twitter. A hacker group calling itself the "Syrian Electronic Army" claimed responsibility.

Within minutes of the attack, the New York Times quickly set up alternative websites, posting stories about chemical attacks in Syria. "Not Easy to Hide a Chemical Attack, Experts Say," was the headline of one.

The cyberattacks come at a time when the Obama administration is trying to bolster its case for possible military action against Syria, where the administration says President Bashar Assad's government is responsible for a deadly chemical attack on civilians. Assad denies the claim.

"Media is going down …" warned the Syrian Electronic Army in a Twitter message before the websites stopped working, adding that it also had taken over Twitter and the Huffington Post U.K.

Times spokeswoman Eileen Murphy said the disruption was caused by a "malicious external attack" that affected its website and email, while Twitter spokesman Jim Prosser said the viewing of images and photos was sporadically affected. Huffington Post U.K. did not respond to requests for comment.

Both Twitter and the Times said they were resolving the attack, which actually hit an Australian company that registered their domain names, Melbourne IT.

Melbourne IT spokesman Tony Smith said a reseller's username and password were used to access several domain names on that reseller's account. Several of those domain names were changed, including the Times' domain.

Once Melbourne IT was notified, the company restored the affected DNS records to their previous values and locked the affected records from any further changes, Smith said. It also changed the reseller's credentials so no further changes could be made.

"We are currently reviewing our logs to see if we can obtain information on the identity of the party that has used the reseller credentials, and we will share this information with the reseller and any relevant law enforcement bodies," Smith said in an email.

"We will also review additional layers of security that we can add to our reseller accounts," he added.

Tracking the hack even further, computer forensics from security firm Renesys Corp. traced the Internet protocol addresses back to the same ones as the Syrian Electronic Army's website sea.sy, which the firm said has been hosted out of Russia since June.

A Syrian Electronic Army activist confirmed to The Associated Press that the group hijacked the Times' and Twitter's domains by targeting Melbourne IT.

"I can't say how, but yes we did hit Melbourne IT," the hacker said in an email. No further details were disclosed.

The Syrian Electronic Army has, in recent months, taken credit for Web attacks on media targets that it sees as sympathetic to Syria's rebels, including prior attacks at the New York Times, along with the Washington Post, Agence France-Press, 60 Minutes, CBS News, National Public Radio, The Associated Press, Al-Jazeera English and the BBC.

FBI spokeswoman Jenny Shearer in Washington said the agency has no comment on Tuesday's attack.

Tuesday's victims were hit by a technique known as "DNS hijacking," according to Robert Masse, president of Montreal, Canada-based security startup Swift Identity.

The technique works by tampering with domain name servers that translate easy-to-remember names like "nytimes.com" into the numerical Internet Protocol addresses (such as "170.149.168.130") that computers use to route data across the Internet.

Domain name servers work as the Web's phone books, and if attackers gains access to one, they can funnel users trying to access sites like The New York Times or Twitter to whichever rogue server they please. Masse said DNS attacks are popular because they bypass a website's security to attack the very architecture of the Internet itself.

"Companies spend a lot of time, money, resources and defending their servers, but they forget about auxiliary infrastructure that is integrally connected to their networks, like DNS."

Cybersecurity experts said hijacking attacks are preventable if website administrators are meticulous about what code they bring into their sites.

"As this incident illustrates, any time you integrate third-party code into your site, it presents a new attack vector for hackers. You must not only ensure your own code is secure, but you must also rely upon third parties' security practices," said Aaron Titus, a privacy officer and attorney at New York-based privacy software firm Identity Finder.

Michael Fey, a chief technology officer at Santa Clara, California-based cybersecurity firm McAfee, said that as long as media organizations play a critical role as influencers and critics, they will continue to be targets of cyberattacks.

He said the battle tactics are broad, from denial of service attacks, to targeted attacks using social engineering and to deploying information-gathering Trojans.

"Regardless of technology or tactics deployed, we should expect to see more of these attacks," he said.

Associated Press writers Raphael Satter in London, Nick Jesdanun in New York and Rod McGuirk in Canberra, Australia, contributed to this story.
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