ProdukHukum Perdagangan X.
STIPULATION OF THE PEOPLE'S CONSULTATIVE ASSEMBLY
OF THE REPUBLIC OF INDONESIA/MPR-RI
NO. X/MPR/2001 DATED NOVEMBER 9, 2001
ON
THE REPORT ON THE IMPLEMENTATION OF DECISION OF THE
PEOPLE'S CONSULTATIVE ASSEMBLY (MPR) BY STATE HIGH INSTITUTIONS
WITH GRACE OF THE ALMIGHTY GOD
THE PEOPLE'S CONSULTATIVE ASSEMBLY (MPR)
Considering :
a. that the People's Consultative Assembly of the Republic of Indonesia (MPR-RI) as the
state highest institution holding people's sovereignty that carries out its tasks and
functions in compliance with the Constitution of 1945;
b. that in accordance with Stipulation of MPR-RI No. II/MPR/1999 regarding Disciplinary
Rules of MPR, which has finally been amended by Stipulation of MPR-RI No.
V/MPR/2000, the assembly shall hold annual sessions in order to hear and discuss reports
furnished by state high institutions, with regard to the implementation of decisions of
MPR-RI;
c. that MPR-RI needs to hear and discuss the said reports, which, afterwards, may be used
as a basis for improving and enhancing the performance of the state high institutions in
the following year;
d. that in relation to the considerations set forth in paragraphs a, b, and c, a stipulation of
MPR-RI with regard to report on the implementation of decision of MPR-RI by the state
high institutions in the annual session of the MPR for 2001 is required.
In view of :
1. Article 1 paragraph (2), Articles 2 and 3 of the 1945 Constitution;
2. Stipulation of MPR-RI No III/MPR/1978 regarding the Status and Working Relations
between and/or among state high institutions;
3. Stipulation of MPR-RI No II/MPR/1999 regarding Disciplinary Rules of MPR, which has
finally been amended by MPR Stipulation No V/MPR/2001;
4. Stipulation of MPR-RI No IV /MPR/1999 regarding the state guidelines for the 19992004 period;
5. Stipulation of MPR-RI No IV/MPR/2001 regarding the stipulation of Vice President
Megawati Soekarnoputri as the President of the Republic of Indonesia.
Observing :
1. Decision of MPR-RI No 5/MPR/2001, which has been amended by MPR Order No.
6/MPR/2001 regarding Schedule of the MPR Annual Session;
2. Report on the implementation of MPR orders by the President in the second plenary
session, report furnished by other state high institutions at the second plenary session
st
(continued) of the MPR held on November 1 , 2001, general review of fractions with
regard to reports submitted by the president and other state high institutions at the third
nd
plenary session held on November 2 , 2001;
st
th
3. Deliberation at the Annual Session held from November 1 - 9 , 2001;
4. Decision of MPR-RI resolved at the seventh plenary session (second part) held on
th
November 9 , 2001 of the Annual Session.
DECIDES :
To stipulate :
THE STIPULATION OF MPR-RI REGARDING REPORT ON THE IMPLEMENTATION OF
DECISIONS OF THE PEOPLE'S CONSULTATIVE ASSEMBLY (MPR) BY STATE HIGH
INSTITUTIONS BODIES.
Article 1
Result of the discussions regarding report on the implementation of MPR orders by the state
executive bodies shall be written in a separate report, which is construed as an inseparable part of
this MPR Stipulation.
Article 2
To assign the President and recommend the Supreme Advisory Council, House of
Representatives, Financial Advisory Body, and Supreme Court to implement this MPR
Stipulation, in accordance with the function, duty, and authority set forth in the 1945
Constitution, and to report in the next annual session.
Article 3
This MPR Stipulation comes into full force from the date of stipulation.
Stipulated in Jakarta
On November 9th , 2001
Speaker of MPR-RI
sgd.
Prof. Dr. H.M Amien Rais
Vice Speaker
sgd.
Vice Speaker
sgd.
Prof. Dr.Ir. Ginanjar Kartasasmita
Ir. Sutjipto
Vice Speaker
Vice Speaker
sgd.
sgd.
Prof. Dr.Jusuf Amir Feisal, S.Pd
Drs.H.M Husnie Thamrin
Vice Speaker
Vice Speaker
sgd.
sgd.
Drs.H.A Nazri Adlani
Agus Widjoyo
RESULTS OF DISCUSSIONS REGARDING REPORT ON
THE IMPLEMENTATION OF DECISIONS OF MPR-RI BY
STATE HIGH INSTITUTIONS IN 2001
INTRODUCTION
The national crisis, which originated from monetary, economic, political, security and public
trust problems prevailing in Indonesia since 1997 has reached a dangerous situation that
endangers the life of the Indonesian nation and state. Such a situation has become worse due to
the arising of threat of the global economic recession.
In order to overcome such a difficult situation, sturdy determination, commitment, and
togetherness of all the nation's components, especially the state bodies, are required.
Establishment of a new government, which is democratic and constitutional, is construed as an
important moment for the efforts to improve the life of the country.
Based on the foregoing matters and after hearing and discussing the reports of the state
executives bodies and the general review of MPR fractions in the annual session of 2001, the
MPR has ordered the President and recommend the state executive bodies.
The President
Concerning President's report with regard to the implementation of MPR orders in the
annual session of 2001, the MPR would like to convey the following matters :
1. Politics and Security
a. Disintegration Threat
Disintegration threat through political and armed movements that threaten the wholeness
of the Indonesian territory, especially those occurring in provinces of Nanggroe Aceh
Darussalam and Papua, have not been fully resolved. The establishment of special
autonomy law for the Province of Nanggroe Aceh Darussalam and Papua is construed as
a real and constitutional effort for the solution to public dissatisfaction with regard to
welfare, justice, and respect to the said regions. Therefore it will encourage a fair and
benefit settlement.
To order the President :
To stipulate policies on the real and systematic implementation of special autonomy law
for the Province Nanggroe Aceh Darussalam and Papua within the framework of the
unitary state of Indonesia. In order to accelerate the improvement of socio-economic life
in the said regions, it is necessary to stipulate policies that give the broadest opportunity
to the local society to manifest development in all sectors and the expansion of work
opportunities. In line with the foregoing, it is necessary to enhance dialogues involving
all components of the society, in order to obtain similar view for the settlement of conflict
in a peaceful, dignified, and constitutional manners, within the framework of the unitary
state of Indonesia, and to settle cases concerning human rights violations and other
violations of law.
b. Horizontal Conflicts
The slow, unaccomplished settlement, which does not touched the basic causes of riots,
such as those occurring in Maluku, North Maluku, Western Kalimantan, Central
Kalimantan, and Poso (Central Sulawesi), which have resulted in death, loss and other
various social problems and encouraged the development of similar problems in other
regions.
To order the President :
To take firm actions against the culprits, provokers, and rioters in an accurate, welldirected, and well-coordinated manner, in compliance with applicable laws, facilitate all
efforts and reconciliation directions and rehabilitation, and take efforts to prevent the
possibility of similar problems in other regions.
For Maluku and North Maluku, the MPR orders the President to immediately continue
and improve policies, which have been taken up to this time, which are, amongst others,
through social reconciliation, physical rehabilitation, law enforcement, and handling of
refugee problems, by providing of adequate funds through a special budget.
c. Anarchism
The abuse of freedom, on behalf of democracy and human rights, have resulted in a
negative impact, in the form of anarchic actions that obstruct democratic growth and
human rights violations.
To order the President :
To take firm actions against anarchic actions and human rights violations, in compliance
with applicable laws.
d. Reposition of Indonesian Armed Forces/Police Forces
The reposition of the Indonesian Armed Forces/Police Forces has not been organized in
accordance with MPR Stipulations No. VI/MPR/2000 and No. VII/MPR/2000 and the
uneven socialization of the division of the Indonesian Armed Forces and Police Forces. This
arises disturbances to the relationship between the two institutions, which disturbances bring
a negative impact on the society, so that it influence the performance, authority, and
reputation of the Indonesian Armed Forces and Police Forces
Lack of professionalism of the Indonesian Armed Forces and Police Forces must be put into
priority. This is due to lack of support, and it becomes an obstacle in the improvement of the
state preventive power in the field of defense and security.
To order President :
1. for the sake of defense and security, the President needs to immediately solve the said
reposition problem and revive its authority and capability, including support, so that the
functions and role of the Indonesian Armed Forces and Police Forces may be achieved at
the maximum.
2. The President and the House of Representatives shall jointly and immediately arrange
and stipulate a law concerning the Indonesian Armed Forces for the sake of legal
certainty.
a. International Relations
1. The implementation of Indonesian free and active global politics is felt inconsistent in the
framework of the manifestation of an everlasting and just reflecting peace of the world.
2. The development of more speedy international relations has claimed for the improvement
of the role of Indonesia in global politics. However, the Indonesian people judge that the
diplomatic role of Indonesian representatives abroad has not reached its best in the
struggling for national interest, especially in solving national crisis.
3. Violations against Indonesian territorial borders by foreigners that occurs frequently,
resulting in losses.
To order the President :
1. So that the policy concerning global politics shall still hold to the principle of free and
active politics.
2. In order to become active and selective, Indonesia shall play a role in various and
international forums, either bilaterally or multilaterally, especially in the framework of a
accelerating the efforts to recover crisis so that the role of Indonesian diplomats abroad
must be improved at the maximum.
3. To settle problems with regard to Indonesian territorial borders in compliance with
applicable international laws.
a. Illegal Immigrants
Smuggling of illegal immigrants due to the geographic opening of the Indonesian
territory has resulted in various social and political implications.
To order the President :
To improve coordination between the central and regional government involving the
security apparatus, improve diplomatic activities in the settlement of problems with
regard to illegal immigrants and establish a comprehensive information system network.
b. Regional Autonomy
In the implementation of regional autonomy, the various overlapping and contradictory
laws and regulations are found. Therefore, it causes legal uncertainty.
To order the President :
To establish the National Verification Team for the sake of laws and regulations with
regard to regional autonomy.
c. General Election Preparation
Due to the amendments to the 1945 Constitution, especially those regarding general
elections, inadequate preparation will not produce qualified general election.
To order the President :
1. Jointly with the House of Representatives, to revise three political laws, i.e. Law No.
2/1999 regarding Political Parties, Law No. 3/1999 regarding General Election, and Law
No. 4/1999 regarding Structure and Status of the MPR, the House of Representatives, and
the Regional Legislative Councils (DPRD).
2. To immediately create a conducible atmosphere across the country, especially in conflict
regions, so that they are ready to join general election in the future.
2. Economy and Finance
a. Trust of the Business World
Lack of trust to the local condition and policies and government's actions which have not
been focused, and lack of a well coordination of all the related parties, including fiscal and
monetary coordination between the government and Bank Indonesia, and between the central
and regional government, particularly in the privatization of state-owned enterprises
(BUMN), the organization and sale of assets managed by the Indonesian Bank Restructuring
Agency (IBRA), bank recovery, management of onshore and offshore loans, investment, and
regional autonomy.
To order the President :
To immediately designate policies and take comprehensive and concentrated actions for the
acceleration of economic recovery, which is followed by coordination of all related parties,
especially fiscal and monetary coordination between the government and Bank Indonesia,
between central and regional government, particularly in the framework of privatization of
state-owned enterprises (BUMN), organization and sale of assets managed by IBRA, bank
recovery, management of onshore and offshore loans, investment, and regional autonomy.
1. Privatization of State-Owned Enterprises (BUMN)
a. To immediately arrange action plan in a comprehensive manner with regard to
privatization program, including sectoral deregulation agreed by the House of
Representatives.
b. To implement systematic socialization of the objective and purpose of
privatization, in order to reduce public resistance.
c. Shall be done selectively and first consulted with the House of Representatives.
1. Management and Sale of Assets Organized by IBRA
a. Management and maintenance of assets organized by IBRA shall be aimed for
enhancing productivity and value of assets.
b. To accelerate sale of assets organized by IBRA with a reasonable rate of recovery,
transparent and accountable procedures, and to take efforts to implement asset to
bond swap.
c. The government needs to consistently implement Master Settlement and
Acquisition Agreement (MSAA) and Master of Refinancing Agreement (MRA).
And firm actions need to be taken against those who haven't fulfilled their duty in
accordance with Chapter IV paragraph C.2, 3, and 4 of Law No. 25/2000
regarding PROPENAS (the National Development Program).
1. Banking Restructuring
a. The government shall cooperate with Bank Indonesia, after consultation with the
House of Representatives, in order to immediately arrange the national banking
system functioning as a bank intermediatery so that it is able to be implemented
effectively and efficiently.
b. A deposit guarantee institution needs to be established in order to achieve
certainty for savers/depositors.
c. The government, jointly with the House of Representatives (DPR), need to
immediately stipulate a law with regard to an independent institution having the
duty to supervise financial and banking services.
d. Banks that do not fulfilled CAR (Capital Adequacy Ratio), NPL (Non Performing
Loans) that have been designated and do not implement their intermediary
function shall immediately be frozen and, afterwards, legal actions in favor of the
country shall be taken, and banks' owners and controllers shall be responsible for
third party refund.
1. Management of Onshore and Offshore Loans
a. Onshore Loans
1. To accelerate sale of assets organized by IBRA and withdraw government bonds.
2. To maximize privatization program in a selective manner, and the proceeds shall
be used for withdrawing government bonds.
3. To accelerate the restructuring of debt of the regional government and stateowned enterprises (BUMN) owed to the central government.
4. To accelerate the collection of tax arrears.
a. Offshore Loans
1. Indonesian offshore loans shall be paid, but the government needs to take efforts
to realize restructuring programs for foreign loans, either through debtrescheduling (principal and interests), exchange of relative costlier debts with
relatively cheap debts (IDA/International Development Agency), debt to poverty
swap and debt to nature swap programs, in order to reduce the expenses borne by
the State Revenues and Expenditures Budget (APBN).
2. The government needs to gradually reduce new offshore loans, in order to become
independent.
3. The purpose of offshore loans, in the form of programs and projects, must be used
effectively and efficiently, in accordance with the aim and priority of
development.
1. Investment
a. To implement certain policy, in the form of an adequate incentive in order to
attract direct investment, either domestic or foreign investments.
b. To implement deregulation against laws and regulations, either in the centre or in
the regions, in order to get rid of investment encumbrances.
c. To enhance coordination between related institutions, through a one-umbrella
system, in order to enable services to the investors.
d. To improve the frequency of promotions and diplomacy, in order to attract
investors to Indonesia.
1. Regional Autonomy
a. The government shall immediately rationalize the laws and regulations that have
been issued by the central and regional government, which hamper development
of the business world.
b. The funds in Regional Budgets of Revenue and Expenditures/APBD (pure
regional revenues and financial sharing) need to be allocated on priority sectors,
in accordance with those designated in APBN and implemented transparently and
accountably.
b. Legal Certainty
The effectiveness of government economic policies and world's trust are
often disturbed by the non-existence of laws and the low quality and weak
enforcement of the existing laws.
To order the President :
Jointly with the House of Representatives to accelerate the
accomplishment of laws regarding bonds, financial and banking service, money
laundering, state finances, state-owned enterprises, electricity power, capital
investment, and the Amendment to Law No. 23/1999 concerning Bank Indonesia,
and the Establishment of Deposit Guarantee Institutions, in compliance with Law
No. 10/1998 with regard to Banking.
c. State Revenues
The state revenues have not reached the best expectation. This is marked by the not-yet
accomplished settlement of BLBI (Bank Indonesia Liquidity Aid), tax violations, great
numbers of smuggling and stealing of natural resources, and non-maximum management of
natural resources.
To order the President :
1. To take firm actions against those proven as being involved in the violation of BLBI, tax
violations, smuggling of oil, etc, and stealing of natural resources (woods, fish, etc.)
2. All non-budgetary funds, which are now with the account of government institutions and
officials, to be reported and delivered to the state (in this case, the Minister of Finance)
3. To take firm actions against violators of the management of natural resources, especially
in forestry, marine, and mining fields, including offshore sand, in order to prevent
environmental damage and enhance state revenues.
4. Jointly with the House of Representatives, to immediately establish law regarding
management of natural resources.
d. Bank Indonesia.
Bank Indonesia's performance at this moment is ineffective, either as a monetary authority or
banking supervisor. This is marked by exchange rate that continues to decrease, interest rate
and inflation that continue to hike.
To order the President :
1. To enhance coordination with Bank Indonesia, in order to guarantee coordination
between fiscal and monetary policies, maintain exchange rate stability, push down
inflation to two digits lower, low interest rate, and provide loans for small, medium
businesses, and cooperatives.
2. Jointly with the House of Representatives, to immediately accomplish the amendment to
Law No. 23/1999 regarding Bank Indonesia.
e. The Real Sector and Empowerment of Small and Medium Businesses and Cooperatives.
Unclear policies and actions, which are real and coordinated, in order to accelerate recovery
of the real sector and priority to the empowerment of small & medium businesses and
cooperatives.
To order the President :
1. To immediately arrange policies, followed by real and coordinated steps, in order to
recover the real sector by guaranteeing the availability of bank loans with low interest
rate, guarantee over safety and law enforcement, and the priority on the empowerment of
small & medium businesses and cooperatives.
2. To focus on the development of the real sector, which covers the efforts to provide basic
necessities (food, clothing, and housing), development of exports, and the provision of
work opportunities.
3. In order that the development of agricultural sector in a wide scope of meaning, including
marine affairs, must grant a priority to gradually improve food independence and to
develop Indonesia into a reliable exporter of agricultural products.
4. Jointly with the House of Representatives, to establish law regarding loans, which will
enable the procedures and lighten loan requirements for small & medium businesses and
cooperatives.
5. To immediately establish information system, which is supported by competitive
telecommunications and transportations facilities and infrastructure in the framework of
entering the free trade era (WTO & AFTA)
6. To activate partnership programs, which are reciprocally profitable, between small and
huge enterprises, medium enterprises and cooperatives or the government, and between
the central and regional government.
7. To accelerate restructuring of debt of small and medium businesses.
f. The National Thrifty Movement
During the crisis, luxurious, wasteful, and consumptive activities are seen many. This shows
a low sense of crisis.
To order the President :
1. To proclaim national thrifty movement in all sectors, implemented by all institutions and
components of the society. Government officials shall pioneer this.
2. To limit import of luxury goods until the crisis comes to an end.
3. Law and Human Rights
a. Elimination of Corruption, Collusion and Nepotism
Corruption has systematically occurred and expanded. It does not only cause losses to the
state financies, but is even construed as violations against social and economic rights of
the society in a wide scope. And the examination of corruption has not been conducted
extensively, consistently, speedily, firmly, and transparently until it ceases.
To order to President :
1. To continue and improve real steps, in order to manifest a clean government and state
apparatus, which are free from corruption, collusion, and nepotism.
2. To investigate thoroughly all corruption acts in the field of banking and finance,
including BLBI cases.
3. To pay attention to the welfare, improvement of quality and quantity of the law
enforcement apparatus, and of facilities and infrastructure.
a. Law Enforcement
1. Low determination and commitment of the law enforcement apparatus and related
institutions in enforcing law with regard to criminal acts concerning natural resources,
banking and finance, which cause losses to the state finances, and other crimes disturbing
peacefulness and security, and destroying the future of the nation.
To order the President :
To continue and fully settle law enforcement problems with regard to natural resources,
non budgetary funds, banking, and finances, and other crimes threatening the sovereignty
of Indonesia.
2. Various related laws with regard to the earth, water, space territories, including the
resources contained therein, are no more in accordance with the principles of human
rights, justice, and continuation, which have the purpose of prosperity and welfare for all
the Indonesian people.
To order the President :
To become a pioneer in the arrangement of laws and regulations with regard to the
earth, water, and space territories, including the natural resources contained therein.
a. Settlement of Cases Regarding Human Rights Violations
Settlement of human rights violations cases has not been implemented speedily, justly,
and thoroughly. It looks slow and discriminative so that it has not fulfilled the principle
of justice.
To order the President :
To immediately settle the process of investigation and prosecution of human rights
violation cases.
b. Establishment of Truth and Reconciliation Committee
The mandate in MPR Stipulation No. V/MPR/2000 regarding Assurance of National
Unity and Integrity, particularly the establishment of the Truth and Reconciliation
Committee, which has not been manifested.
To order the President :
Jointly with the House of Representatives, to establish a law regarding the Truth and
Reconciliation Committee.
1. Religion
a. Religious Harmony
1. Recently, religious harmony has suffered from many obstacle so that it will disturb
national unity and integrity.
2. Development in religious field is often obstructed since some of the religious
communities have not understood and implement the teachings of their respective
religion consequently. Therefore the worsening of characters and national morality
principles arises, which can be seen from, amongst others, the increasing number of
crimes, prostitution, misuse of narcotics and prohibited drugs.
To order the President :
1. To improve policies of development in religious field, especially in the maintenance and
improvement of religious harmony through the establishment of inter-religiouscommunity cooperation network, improvement of religious service by respecting human
rights principles, improvement of religious facilities and infrastructure.
2. To enhance the empowerment of all religious communities by fair treatment, in order to
implement religious teachings.
a. Religious Educational Institutions
The life of the said institutions, especially those in conflict areas, are generally
threatened. And the said institutions are very important for religious and moral
educations.
To order the President :
To pay careful attention to the maintenance of religious educational institutions,
especially in conflict areas.
1. Social and Culture
a. Health Service
Health service has not been able to be provided at the maximum, especially the problem
of the organization of nutritional crisis and the contagion of infectious diseases in refugee
and conflict areas and areas in which natural disasters occur.
To order the President :
1. To immediately establish health service crash program
2. To establish participation and self-support of the society jointly with the government, to
implement the said crash program.
3. To pay careful attention to nutritional crisis, especially with pregnant women, babies, and
children under five.
4. To try to increase health budget from 15% of APBN to the minimum HDI (Human
Development Index) requirement designated by WHO.
a. Education
The national educations system has not been able to improve the quality, relevance, and
even distribution of educations across the Indonesian territory, as an efforts to improve
human resource quality.
To order the President :
1. To implement renewal of the national educations system in the framework of
improvement of quality, relevance, and even distribution of educations across the
Indonesian territory.
2. To improve welfare of teachers/educators and fill vacant positions of teachers/educators,
especially in remote areas.
3. To try to improve efficiency and improvement of educations budget to reach at least 20%
of APBN.
4. To improve the educational quality of teachers.
a. Youth and Sports
Youth and sport development system has not been fully able to improve the quality of
competition in various international forums.
To order the President :
To implement the development of youth and sport system comprehensively and
integrally, provide reasonable budget, establish participation of the society, and develop
national youth and sports, jointly with the government.
b. Tourism and Culture
1. Local and national culture has not been well developing and the preservation of national
historical remains has not been well maintained.
2. Visits of international tourist have been decreasing due to safety disturbances in the
country.
To order the President :
1. To give attention and adequate budget for the development of culture, preservation of
historical remains and create peacefulness and safety in the country.
2. To develop tourism industry integrally and professionally.
a. Labor and Social Insurance
1. Increase in the number of labors and the increasing unemployment rate have result in
complex social implications, such as the rising of anarchic actions, criminality, and other
crimes, which result in public anxiety.
2. The impact of the long crisis has resulted in layoffs, which has increased anxiety so that it
requires comprehensive handling.
To order the President :
1. To try to establish crash program that directly touches public interest, with regard
to the provisions of work and business opportunities.
2. To establish social security system in order to provide a more comprehensive and
integrated social protection.
a. Traffic of Women and Children
Increasing number of traffic of Indonesian women and children has causes anxiety to the
nation and international bodies.
To order the President :
1. To ratify the 1949 International Convention with regard to the Prohibition of Women
Trafficking (Convention for the Suppression of the Traffic of Persons and of the
Exploitation of the Prostitution of Others), and establish bodies/institutions, or task force
in order to eliminate traffic of women and children.
2. To try to handle the safety and future of children, especially street children
3. To accomplish law regarding protection of women and children, jointly with the House of
Representatives.
a. Narcotics, Psychotropic, and Other Addictive Substances
Misuse of narcotics, psychotropic, and other addictive substances, which are able to
accelerate the spread of HIV/AIDS, has been widespread and arose public anxiety, since
they will destroy the future of the nation.
To order the President :
1. To take firm actions in accordance with applicable laws, against the manufacturers,
distributors, and users, and take effective, anticipative, educative, and coordinative steps.
2. To try to establish a budget for the rehabilitation of victims of misuse of narcotics,
psychotropic, and other addictive substances.
a. Pornography
Broadcasting and distribution of pornographic news in printed and electronic media, and
advertisement, have damaged morality of the nation, especially the young generation,
family and the society.
To order the President :
To discipline the publication, show, and advertisements in order not to expose writings,
pictures, and shows that are categorized as improperly pornographic, and punish the
violators, in accordance with applicable laws and regulations.
b. Refugees
Around three million refugees caused by horizontal conflicts at this moment are people
living under poverty, who, until now, have not been handled reasonably and humanely.
To order the President :
To handle those refugees and provide aid for the fulfillment of basic necessities in an
integrated manner between related departments and try to establish international aid, in
order to bring them to their original condition.
SUPREME ADVISORY COUNCIL
1. With regard to the annual report of the said council, MPR is in the opinion that the
performance of the said council as one of the state high institutions has not reached their
maximum performance.
2. Recommendation :
Based on the foregoing matter, MPR recommends as follows :
a. In accordance with Law No. 4/1978 and Law No. 3/1967 regarding Supreme Advisory
Council, and with regard to the change of political constellation, change of membership
structure of the said council may be implemented.
b. The membership of the said council must be based upon personal integrity, national
perspective, public leadership, and professionalism reflecting regional perspective.
c. All proposals and considerations informed to the President, must be construed as a
collective opinion of the said council, which opinion shall be furnished directly to the
President.
d. In order to improve the performance of the said council, Law No. 4/1978 and Law No.
3/1967 with regard to Supreme Advisory Council, needs to be revised in accordance with
the requirements for a reformation.
HOUSE OF REPRESENTATIVES
1. With regard to the annual report of the House of Representatives, MPR is in the opinion
as follows :
a. General
The effectiveness of the House of Representatives has showed improvement, but still
requires improvement of performance.
b. Legislative Function
The implementation of legislative function is relatively slow
c. Budgetary Function
The implementation of this function has not yet been fully consistent with their budgetary
right
d. Supervisory Function
1. Follow-up actions to findings of the Financial Audit Board have not been
performed at the maximum.
2. Complaints and audit findings during individuals/committee visits and input from
work sessions, hearings, and public hearings, has not been follow-up properly.
a. Others
1. Discipline of members of the House of Representatives is still low
2. In conveying their opinions to the public, the chairman and members are
sometimes not able to differentiate between personal and institutional opinions
3. In the performance of their duties, they receive lack of funding support for
providing expert staff, adequate facilities and infrastructure, in order to fulfil their
legislative, budgetary, and supervisory functions.
2. Recommendations
Based on the foregoing matters, MPR recommend as follows :
a. General
The performance of members of the House of Representatives needs to be improved,
based upon high sense of morality and responsibility
b. Legislative Function
1. Productivity of the House of Representatives in the arrangement of laws needs to be
improved
2. In order to improve the performance of the House of Representatives in legislative field,
an institution having a particular duty to assist the House of Representatives needs to be
established, in order to prepare bills
a. Budgetary Function
1. A proactive attitude of members of the House of Representatives in the arrangement of
budget, in accordance to the 1945 Constitution, is required.
2. In order to improve performance of the House of Representatives with regard to the
budget, an institution having a particular duty to assist the House of Representatives in
the budgetary field needs to be established.
a. Supervisory Function
1. Findings located by the Financial Advisory Body must immediately be followed-up
2. a) Complaints and audit findings during individuals/committee visits and input from
work sessions, hearings, and public hearings need to be immediately followed up in
accordance with the function of the House of Representatives.
b). The House of Representatives needs to be active and proactive in encouraging
legal settlement of old and new corruption, collusion, and nepotism cases, by
paying attention to the principle of priority.
a. Others
1. Discipline of members of the House of Representatives in each parliamentary activity,
including attending of various meetings, in accordance with the Disciplinary Rules and
Codes of Ethics of the House of Representatives, needs to be improved.
2. Chairman and members of the House of Representatives shall clearly differentiate
between their personal and institutional actions.
3. a). Support of expert staff, in accordance with the members' duties in their respective
committee, is required
b). Adequate support of budget, facilities, and infrastructure is needed for the
improvement of performance of the House of Representatives, by autonomous
management.
c). Improvement of socialization of actives and performance results of the House of
Representatives need to be improved.
FINANCIAL AUDIT BOARD (BPK)
1. With regard to the annual report of BPK, MPR is in the opinion as follows :
a. The performance of BPK has improved, but has not fulfilled what has been expected of
them
b. Many findings with regard to violations can be seen from results of audit of BPK in
performing their quasi-judicative function have not been fully followed-up.
c. Lack of professional auditors.
1. Recommendations
Based on the foregoing matters, MPR recommend as follows :
a. BPK is the only external state financial audit institutions. And its role needs to be ensured
as an independent institution.
b. BPK needs to improve intensity and effectiveness of audit conducted against state
executive bodies, government institutions, state-owned enterprises (BUMN & BUMD),
and other institutions utilizing state funds.
c. BPK needs to be supported by adequate human resource quality with high sense morality
and independence, completed with adequate budget, facilities, and infrastructure.
d. Various findings with regard to violations/criminal acts, need to be immediately reported
to the Attorney General Office and/or the Indonesian Police, in accordance with Article 3
of Law No. 5/1973 regarding BPK.
SUPREME COURT (MA)
1. With regard to the annual report of MA, MPR is in the opinion as follows :
a. Even though MA has tried to improve its performance, it has not met expectations of the
law enforcement efforts.
b. The piling up of cases is due to the tendency of the submission of final appeal, lack of
professionalism in the performance of MA, indication of corruption, collusion, and
nepotism, and the influence of other parties outside MA.
1. Recommendations
Based on the foregoing matters, MPR recommends as follows :
a. MA needs to be tidied-up, in order to improve their performance in enforcing the law.
This is done by, amongst others :
1). Constantly improve human resource quality of all the judges, clerks, and
administrative staff in all levels, so that the integrity, morality, perspective,
professionalism, and skills are able to support the acceleration of their duties.
2). Immediately settle outstanding cases by the improvement of quality and quality of
their judgements
3). Reasonable fulfil the facilities and infrastructure for all ranks of office
4). Immediately apply the principles of integrated judiciary system
5). Anticipate reactions from the public, which sense of justice with regard to the
judgements of MA and the courts of lower hierarchy is disturbed, in order to maintain the
reputation of MA.
b. MA needs to ensure their independence in performing their duties and functions, and to
establish MA as an institution, which is free from corruption, collusion, and nepotism.
c. MA needs to immediately implement Law No. 35/1999 regarding Amendment to Law
No. 14/1970 concerning Supreme Court that needs to be revised.
d. In order to improve the existence and performance of MA, Law No. 14/1995 regarding
Supreme Court need to be revised.
e. In order to support the implementation of regional autonomy, MA, in accordance with
their authority, needs to immediately conduct a special function for a judicial review
against all regional regulations that are in violation to higher laws and regulations,
without going through final appeal, as referred to in Article 5 of MPR Stipulation No.
III/MPR/2000.
f. In order to improve MA's performance, adequate budget, facilities, infrastructure are
required.
CLOSING
The assignment delegated to the President and recommendations to the state high institutions
depends on the commitment of state apparatus and the support from all the Indonesian people.
Therefore, the state executive bodies shall establish togetherness, in accordance with their
function, duty, and authority as referred to in the 1945 Constitution.
The assignment delegated to the President and recommendations to the state high institutions are
expected to be able to gradually escape from the crisis and create a good arrangement of the
state, which is clean and firm, as a basis for the manifestation of a just and prosper society under
the protection of God The Almighty.
Stipulated in Jakarta
On November 9th , 2001
Speaker of MPR-RI
sgd.
Prof. Dr. H.M Amien Rais
Vice Speaker
Vice Speaker
sgd.
Prof. Dr.Ir. Ginanjar Kartasasmita
Vice Speaker
sgd.
Prof. Dr.Jusuf Amir Feisal, S.Pd
Vice Speaker
sgd.
Drs.H.A Nazri Adlani
sgd.
Ir. Sutjipto
Vice Speaker
sgd.
Drs.H.M Husnie Thamrin
Vice Speaker
sgd.
Agus Widjoyo
OF THE REPUBLIC OF INDONESIA/MPR-RI
NO. X/MPR/2001 DATED NOVEMBER 9, 2001
ON
THE REPORT ON THE IMPLEMENTATION OF DECISION OF THE
PEOPLE'S CONSULTATIVE ASSEMBLY (MPR) BY STATE HIGH INSTITUTIONS
WITH GRACE OF THE ALMIGHTY GOD
THE PEOPLE'S CONSULTATIVE ASSEMBLY (MPR)
Considering :
a. that the People's Consultative Assembly of the Republic of Indonesia (MPR-RI) as the
state highest institution holding people's sovereignty that carries out its tasks and
functions in compliance with the Constitution of 1945;
b. that in accordance with Stipulation of MPR-RI No. II/MPR/1999 regarding Disciplinary
Rules of MPR, which has finally been amended by Stipulation of MPR-RI No.
V/MPR/2000, the assembly shall hold annual sessions in order to hear and discuss reports
furnished by state high institutions, with regard to the implementation of decisions of
MPR-RI;
c. that MPR-RI needs to hear and discuss the said reports, which, afterwards, may be used
as a basis for improving and enhancing the performance of the state high institutions in
the following year;
d. that in relation to the considerations set forth in paragraphs a, b, and c, a stipulation of
MPR-RI with regard to report on the implementation of decision of MPR-RI by the state
high institutions in the annual session of the MPR for 2001 is required.
In view of :
1. Article 1 paragraph (2), Articles 2 and 3 of the 1945 Constitution;
2. Stipulation of MPR-RI No III/MPR/1978 regarding the Status and Working Relations
between and/or among state high institutions;
3. Stipulation of MPR-RI No II/MPR/1999 regarding Disciplinary Rules of MPR, which has
finally been amended by MPR Stipulation No V/MPR/2001;
4. Stipulation of MPR-RI No IV /MPR/1999 regarding the state guidelines for the 19992004 period;
5. Stipulation of MPR-RI No IV/MPR/2001 regarding the stipulation of Vice President
Megawati Soekarnoputri as the President of the Republic of Indonesia.
Observing :
1. Decision of MPR-RI No 5/MPR/2001, which has been amended by MPR Order No.
6/MPR/2001 regarding Schedule of the MPR Annual Session;
2. Report on the implementation of MPR orders by the President in the second plenary
session, report furnished by other state high institutions at the second plenary session
st
(continued) of the MPR held on November 1 , 2001, general review of fractions with
regard to reports submitted by the president and other state high institutions at the third
nd
plenary session held on November 2 , 2001;
st
th
3. Deliberation at the Annual Session held from November 1 - 9 , 2001;
4. Decision of MPR-RI resolved at the seventh plenary session (second part) held on
th
November 9 , 2001 of the Annual Session.
DECIDES :
To stipulate :
THE STIPULATION OF MPR-RI REGARDING REPORT ON THE IMPLEMENTATION OF
DECISIONS OF THE PEOPLE'S CONSULTATIVE ASSEMBLY (MPR) BY STATE HIGH
INSTITUTIONS BODIES.
Article 1
Result of the discussions regarding report on the implementation of MPR orders by the state
executive bodies shall be written in a separate report, which is construed as an inseparable part of
this MPR Stipulation.
Article 2
To assign the President and recommend the Supreme Advisory Council, House of
Representatives, Financial Advisory Body, and Supreme Court to implement this MPR
Stipulation, in accordance with the function, duty, and authority set forth in the 1945
Constitution, and to report in the next annual session.
Article 3
This MPR Stipulation comes into full force from the date of stipulation.
Stipulated in Jakarta
On November 9th , 2001
Speaker of MPR-RI
sgd.
Prof. Dr. H.M Amien Rais
Vice Speaker
sgd.
Vice Speaker
sgd.
Prof. Dr.Ir. Ginanjar Kartasasmita
Ir. Sutjipto
Vice Speaker
Vice Speaker
sgd.
sgd.
Prof. Dr.Jusuf Amir Feisal, S.Pd
Drs.H.M Husnie Thamrin
Vice Speaker
Vice Speaker
sgd.
sgd.
Drs.H.A Nazri Adlani
Agus Widjoyo
RESULTS OF DISCUSSIONS REGARDING REPORT ON
THE IMPLEMENTATION OF DECISIONS OF MPR-RI BY
STATE HIGH INSTITUTIONS IN 2001
INTRODUCTION
The national crisis, which originated from monetary, economic, political, security and public
trust problems prevailing in Indonesia since 1997 has reached a dangerous situation that
endangers the life of the Indonesian nation and state. Such a situation has become worse due to
the arising of threat of the global economic recession.
In order to overcome such a difficult situation, sturdy determination, commitment, and
togetherness of all the nation's components, especially the state bodies, are required.
Establishment of a new government, which is democratic and constitutional, is construed as an
important moment for the efforts to improve the life of the country.
Based on the foregoing matters and after hearing and discussing the reports of the state
executives bodies and the general review of MPR fractions in the annual session of 2001, the
MPR has ordered the President and recommend the state executive bodies.
The President
Concerning President's report with regard to the implementation of MPR orders in the
annual session of 2001, the MPR would like to convey the following matters :
1. Politics and Security
a. Disintegration Threat
Disintegration threat through political and armed movements that threaten the wholeness
of the Indonesian territory, especially those occurring in provinces of Nanggroe Aceh
Darussalam and Papua, have not been fully resolved. The establishment of special
autonomy law for the Province of Nanggroe Aceh Darussalam and Papua is construed as
a real and constitutional effort for the solution to public dissatisfaction with regard to
welfare, justice, and respect to the said regions. Therefore it will encourage a fair and
benefit settlement.
To order the President :
To stipulate policies on the real and systematic implementation of special autonomy law
for the Province Nanggroe Aceh Darussalam and Papua within the framework of the
unitary state of Indonesia. In order to accelerate the improvement of socio-economic life
in the said regions, it is necessary to stipulate policies that give the broadest opportunity
to the local society to manifest development in all sectors and the expansion of work
opportunities. In line with the foregoing, it is necessary to enhance dialogues involving
all components of the society, in order to obtain similar view for the settlement of conflict
in a peaceful, dignified, and constitutional manners, within the framework of the unitary
state of Indonesia, and to settle cases concerning human rights violations and other
violations of law.
b. Horizontal Conflicts
The slow, unaccomplished settlement, which does not touched the basic causes of riots,
such as those occurring in Maluku, North Maluku, Western Kalimantan, Central
Kalimantan, and Poso (Central Sulawesi), which have resulted in death, loss and other
various social problems and encouraged the development of similar problems in other
regions.
To order the President :
To take firm actions against the culprits, provokers, and rioters in an accurate, welldirected, and well-coordinated manner, in compliance with applicable laws, facilitate all
efforts and reconciliation directions and rehabilitation, and take efforts to prevent the
possibility of similar problems in other regions.
For Maluku and North Maluku, the MPR orders the President to immediately continue
and improve policies, which have been taken up to this time, which are, amongst others,
through social reconciliation, physical rehabilitation, law enforcement, and handling of
refugee problems, by providing of adequate funds through a special budget.
c. Anarchism
The abuse of freedom, on behalf of democracy and human rights, have resulted in a
negative impact, in the form of anarchic actions that obstruct democratic growth and
human rights violations.
To order the President :
To take firm actions against anarchic actions and human rights violations, in compliance
with applicable laws.
d. Reposition of Indonesian Armed Forces/Police Forces
The reposition of the Indonesian Armed Forces/Police Forces has not been organized in
accordance with MPR Stipulations No. VI/MPR/2000 and No. VII/MPR/2000 and the
uneven socialization of the division of the Indonesian Armed Forces and Police Forces. This
arises disturbances to the relationship between the two institutions, which disturbances bring
a negative impact on the society, so that it influence the performance, authority, and
reputation of the Indonesian Armed Forces and Police Forces
Lack of professionalism of the Indonesian Armed Forces and Police Forces must be put into
priority. This is due to lack of support, and it becomes an obstacle in the improvement of the
state preventive power in the field of defense and security.
To order President :
1. for the sake of defense and security, the President needs to immediately solve the said
reposition problem and revive its authority and capability, including support, so that the
functions and role of the Indonesian Armed Forces and Police Forces may be achieved at
the maximum.
2. The President and the House of Representatives shall jointly and immediately arrange
and stipulate a law concerning the Indonesian Armed Forces for the sake of legal
certainty.
a. International Relations
1. The implementation of Indonesian free and active global politics is felt inconsistent in the
framework of the manifestation of an everlasting and just reflecting peace of the world.
2. The development of more speedy international relations has claimed for the improvement
of the role of Indonesia in global politics. However, the Indonesian people judge that the
diplomatic role of Indonesian representatives abroad has not reached its best in the
struggling for national interest, especially in solving national crisis.
3. Violations against Indonesian territorial borders by foreigners that occurs frequently,
resulting in losses.
To order the President :
1. So that the policy concerning global politics shall still hold to the principle of free and
active politics.
2. In order to become active and selective, Indonesia shall play a role in various and
international forums, either bilaterally or multilaterally, especially in the framework of a
accelerating the efforts to recover crisis so that the role of Indonesian diplomats abroad
must be improved at the maximum.
3. To settle problems with regard to Indonesian territorial borders in compliance with
applicable international laws.
a. Illegal Immigrants
Smuggling of illegal immigrants due to the geographic opening of the Indonesian
territory has resulted in various social and political implications.
To order the President :
To improve coordination between the central and regional government involving the
security apparatus, improve diplomatic activities in the settlement of problems with
regard to illegal immigrants and establish a comprehensive information system network.
b. Regional Autonomy
In the implementation of regional autonomy, the various overlapping and contradictory
laws and regulations are found. Therefore, it causes legal uncertainty.
To order the President :
To establish the National Verification Team for the sake of laws and regulations with
regard to regional autonomy.
c. General Election Preparation
Due to the amendments to the 1945 Constitution, especially those regarding general
elections, inadequate preparation will not produce qualified general election.
To order the President :
1. Jointly with the House of Representatives, to revise three political laws, i.e. Law No.
2/1999 regarding Political Parties, Law No. 3/1999 regarding General Election, and Law
No. 4/1999 regarding Structure and Status of the MPR, the House of Representatives, and
the Regional Legislative Councils (DPRD).
2. To immediately create a conducible atmosphere across the country, especially in conflict
regions, so that they are ready to join general election in the future.
2. Economy and Finance
a. Trust of the Business World
Lack of trust to the local condition and policies and government's actions which have not
been focused, and lack of a well coordination of all the related parties, including fiscal and
monetary coordination between the government and Bank Indonesia, and between the central
and regional government, particularly in the privatization of state-owned enterprises
(BUMN), the organization and sale of assets managed by the Indonesian Bank Restructuring
Agency (IBRA), bank recovery, management of onshore and offshore loans, investment, and
regional autonomy.
To order the President :
To immediately designate policies and take comprehensive and concentrated actions for the
acceleration of economic recovery, which is followed by coordination of all related parties,
especially fiscal and monetary coordination between the government and Bank Indonesia,
between central and regional government, particularly in the framework of privatization of
state-owned enterprises (BUMN), organization and sale of assets managed by IBRA, bank
recovery, management of onshore and offshore loans, investment, and regional autonomy.
1. Privatization of State-Owned Enterprises (BUMN)
a. To immediately arrange action plan in a comprehensive manner with regard to
privatization program, including sectoral deregulation agreed by the House of
Representatives.
b. To implement systematic socialization of the objective and purpose of
privatization, in order to reduce public resistance.
c. Shall be done selectively and first consulted with the House of Representatives.
1. Management and Sale of Assets Organized by IBRA
a. Management and maintenance of assets organized by IBRA shall be aimed for
enhancing productivity and value of assets.
b. To accelerate sale of assets organized by IBRA with a reasonable rate of recovery,
transparent and accountable procedures, and to take efforts to implement asset to
bond swap.
c. The government needs to consistently implement Master Settlement and
Acquisition Agreement (MSAA) and Master of Refinancing Agreement (MRA).
And firm actions need to be taken against those who haven't fulfilled their duty in
accordance with Chapter IV paragraph C.2, 3, and 4 of Law No. 25/2000
regarding PROPENAS (the National Development Program).
1. Banking Restructuring
a. The government shall cooperate with Bank Indonesia, after consultation with the
House of Representatives, in order to immediately arrange the national banking
system functioning as a bank intermediatery so that it is able to be implemented
effectively and efficiently.
b. A deposit guarantee institution needs to be established in order to achieve
certainty for savers/depositors.
c. The government, jointly with the House of Representatives (DPR), need to
immediately stipulate a law with regard to an independent institution having the
duty to supervise financial and banking services.
d. Banks that do not fulfilled CAR (Capital Adequacy Ratio), NPL (Non Performing
Loans) that have been designated and do not implement their intermediary
function shall immediately be frozen and, afterwards, legal actions in favor of the
country shall be taken, and banks' owners and controllers shall be responsible for
third party refund.
1. Management of Onshore and Offshore Loans
a. Onshore Loans
1. To accelerate sale of assets organized by IBRA and withdraw government bonds.
2. To maximize privatization program in a selective manner, and the proceeds shall
be used for withdrawing government bonds.
3. To accelerate the restructuring of debt of the regional government and stateowned enterprises (BUMN) owed to the central government.
4. To accelerate the collection of tax arrears.
a. Offshore Loans
1. Indonesian offshore loans shall be paid, but the government needs to take efforts
to realize restructuring programs for foreign loans, either through debtrescheduling (principal and interests), exchange of relative costlier debts with
relatively cheap debts (IDA/International Development Agency), debt to poverty
swap and debt to nature swap programs, in order to reduce the expenses borne by
the State Revenues and Expenditures Budget (APBN).
2. The government needs to gradually reduce new offshore loans, in order to become
independent.
3. The purpose of offshore loans, in the form of programs and projects, must be used
effectively and efficiently, in accordance with the aim and priority of
development.
1. Investment
a. To implement certain policy, in the form of an adequate incentive in order to
attract direct investment, either domestic or foreign investments.
b. To implement deregulation against laws and regulations, either in the centre or in
the regions, in order to get rid of investment encumbrances.
c. To enhance coordination between related institutions, through a one-umbrella
system, in order to enable services to the investors.
d. To improve the frequency of promotions and diplomacy, in order to attract
investors to Indonesia.
1. Regional Autonomy
a. The government shall immediately rationalize the laws and regulations that have
been issued by the central and regional government, which hamper development
of the business world.
b. The funds in Regional Budgets of Revenue and Expenditures/APBD (pure
regional revenues and financial sharing) need to be allocated on priority sectors,
in accordance with those designated in APBN and implemented transparently and
accountably.
b. Legal Certainty
The effectiveness of government economic policies and world's trust are
often disturbed by the non-existence of laws and the low quality and weak
enforcement of the existing laws.
To order the President :
Jointly with the House of Representatives to accelerate the
accomplishment of laws regarding bonds, financial and banking service, money
laundering, state finances, state-owned enterprises, electricity power, capital
investment, and the Amendment to Law No. 23/1999 concerning Bank Indonesia,
and the Establishment of Deposit Guarantee Institutions, in compliance with Law
No. 10/1998 with regard to Banking.
c. State Revenues
The state revenues have not reached the best expectation. This is marked by the not-yet
accomplished settlement of BLBI (Bank Indonesia Liquidity Aid), tax violations, great
numbers of smuggling and stealing of natural resources, and non-maximum management of
natural resources.
To order the President :
1. To take firm actions against those proven as being involved in the violation of BLBI, tax
violations, smuggling of oil, etc, and stealing of natural resources (woods, fish, etc.)
2. All non-budgetary funds, which are now with the account of government institutions and
officials, to be reported and delivered to the state (in this case, the Minister of Finance)
3. To take firm actions against violators of the management of natural resources, especially
in forestry, marine, and mining fields, including offshore sand, in order to prevent
environmental damage and enhance state revenues.
4. Jointly with the House of Representatives, to immediately establish law regarding
management of natural resources.
d. Bank Indonesia.
Bank Indonesia's performance at this moment is ineffective, either as a monetary authority or
banking supervisor. This is marked by exchange rate that continues to decrease, interest rate
and inflation that continue to hike.
To order the President :
1. To enhance coordination with Bank Indonesia, in order to guarantee coordination
between fiscal and monetary policies, maintain exchange rate stability, push down
inflation to two digits lower, low interest rate, and provide loans for small, medium
businesses, and cooperatives.
2. Jointly with the House of Representatives, to immediately accomplish the amendment to
Law No. 23/1999 regarding Bank Indonesia.
e. The Real Sector and Empowerment of Small and Medium Businesses and Cooperatives.
Unclear policies and actions, which are real and coordinated, in order to accelerate recovery
of the real sector and priority to the empowerment of small & medium businesses and
cooperatives.
To order the President :
1. To immediately arrange policies, followed by real and coordinated steps, in order to
recover the real sector by guaranteeing the availability of bank loans with low interest
rate, guarantee over safety and law enforcement, and the priority on the empowerment of
small & medium businesses and cooperatives.
2. To focus on the development of the real sector, which covers the efforts to provide basic
necessities (food, clothing, and housing), development of exports, and the provision of
work opportunities.
3. In order that the development of agricultural sector in a wide scope of meaning, including
marine affairs, must grant a priority to gradually improve food independence and to
develop Indonesia into a reliable exporter of agricultural products.
4. Jointly with the House of Representatives, to establish law regarding loans, which will
enable the procedures and lighten loan requirements for small & medium businesses and
cooperatives.
5. To immediately establish information system, which is supported by competitive
telecommunications and transportations facilities and infrastructure in the framework of
entering the free trade era (WTO & AFTA)
6. To activate partnership programs, which are reciprocally profitable, between small and
huge enterprises, medium enterprises and cooperatives or the government, and between
the central and regional government.
7. To accelerate restructuring of debt of small and medium businesses.
f. The National Thrifty Movement
During the crisis, luxurious, wasteful, and consumptive activities are seen many. This shows
a low sense of crisis.
To order the President :
1. To proclaim national thrifty movement in all sectors, implemented by all institutions and
components of the society. Government officials shall pioneer this.
2. To limit import of luxury goods until the crisis comes to an end.
3. Law and Human Rights
a. Elimination of Corruption, Collusion and Nepotism
Corruption has systematically occurred and expanded. It does not only cause losses to the
state financies, but is even construed as violations against social and economic rights of
the society in a wide scope. And the examination of corruption has not been conducted
extensively, consistently, speedily, firmly, and transparently until it ceases.
To order to President :
1. To continue and improve real steps, in order to manifest a clean government and state
apparatus, which are free from corruption, collusion, and nepotism.
2. To investigate thoroughly all corruption acts in the field of banking and finance,
including BLBI cases.
3. To pay attention to the welfare, improvement of quality and quantity of the law
enforcement apparatus, and of facilities and infrastructure.
a. Law Enforcement
1. Low determination and commitment of the law enforcement apparatus and related
institutions in enforcing law with regard to criminal acts concerning natural resources,
banking and finance, which cause losses to the state finances, and other crimes disturbing
peacefulness and security, and destroying the future of the nation.
To order the President :
To continue and fully settle law enforcement problems with regard to natural resources,
non budgetary funds, banking, and finances, and other crimes threatening the sovereignty
of Indonesia.
2. Various related laws with regard to the earth, water, space territories, including the
resources contained therein, are no more in accordance with the principles of human
rights, justice, and continuation, which have the purpose of prosperity and welfare for all
the Indonesian people.
To order the President :
To become a pioneer in the arrangement of laws and regulations with regard to the
earth, water, and space territories, including the natural resources contained therein.
a. Settlement of Cases Regarding Human Rights Violations
Settlement of human rights violations cases has not been implemented speedily, justly,
and thoroughly. It looks slow and discriminative so that it has not fulfilled the principle
of justice.
To order the President :
To immediately settle the process of investigation and prosecution of human rights
violation cases.
b. Establishment of Truth and Reconciliation Committee
The mandate in MPR Stipulation No. V/MPR/2000 regarding Assurance of National
Unity and Integrity, particularly the establishment of the Truth and Reconciliation
Committee, which has not been manifested.
To order the President :
Jointly with the House of Representatives, to establish a law regarding the Truth and
Reconciliation Committee.
1. Religion
a. Religious Harmony
1. Recently, religious harmony has suffered from many obstacle so that it will disturb
national unity and integrity.
2. Development in religious field is often obstructed since some of the religious
communities have not understood and implement the teachings of their respective
religion consequently. Therefore the worsening of characters and national morality
principles arises, which can be seen from, amongst others, the increasing number of
crimes, prostitution, misuse of narcotics and prohibited drugs.
To order the President :
1. To improve policies of development in religious field, especially in the maintenance and
improvement of religious harmony through the establishment of inter-religiouscommunity cooperation network, improvement of religious service by respecting human
rights principles, improvement of religious facilities and infrastructure.
2. To enhance the empowerment of all religious communities by fair treatment, in order to
implement religious teachings.
a. Religious Educational Institutions
The life of the said institutions, especially those in conflict areas, are generally
threatened. And the said institutions are very important for religious and moral
educations.
To order the President :
To pay careful attention to the maintenance of religious educational institutions,
especially in conflict areas.
1. Social and Culture
a. Health Service
Health service has not been able to be provided at the maximum, especially the problem
of the organization of nutritional crisis and the contagion of infectious diseases in refugee
and conflict areas and areas in which natural disasters occur.
To order the President :
1. To immediately establish health service crash program
2. To establish participation and self-support of the society jointly with the government, to
implement the said crash program.
3. To pay careful attention to nutritional crisis, especially with pregnant women, babies, and
children under five.
4. To try to increase health budget from 15% of APBN to the minimum HDI (Human
Development Index) requirement designated by WHO.
a. Education
The national educations system has not been able to improve the quality, relevance, and
even distribution of educations across the Indonesian territory, as an efforts to improve
human resource quality.
To order the President :
1. To implement renewal of the national educations system in the framework of
improvement of quality, relevance, and even distribution of educations across the
Indonesian territory.
2. To improve welfare of teachers/educators and fill vacant positions of teachers/educators,
especially in remote areas.
3. To try to improve efficiency and improvement of educations budget to reach at least 20%
of APBN.
4. To improve the educational quality of teachers.
a. Youth and Sports
Youth and sport development system has not been fully able to improve the quality of
competition in various international forums.
To order the President :
To implement the development of youth and sport system comprehensively and
integrally, provide reasonable budget, establish participation of the society, and develop
national youth and sports, jointly with the government.
b. Tourism and Culture
1. Local and national culture has not been well developing and the preservation of national
historical remains has not been well maintained.
2. Visits of international tourist have been decreasing due to safety disturbances in the
country.
To order the President :
1. To give attention and adequate budget for the development of culture, preservation of
historical remains and create peacefulness and safety in the country.
2. To develop tourism industry integrally and professionally.
a. Labor and Social Insurance
1. Increase in the number of labors and the increasing unemployment rate have result in
complex social implications, such as the rising of anarchic actions, criminality, and other
crimes, which result in public anxiety.
2. The impact of the long crisis has resulted in layoffs, which has increased anxiety so that it
requires comprehensive handling.
To order the President :
1. To try to establish crash program that directly touches public interest, with regard
to the provisions of work and business opportunities.
2. To establish social security system in order to provide a more comprehensive and
integrated social protection.
a. Traffic of Women and Children
Increasing number of traffic of Indonesian women and children has causes anxiety to the
nation and international bodies.
To order the President :
1. To ratify the 1949 International Convention with regard to the Prohibition of Women
Trafficking (Convention for the Suppression of the Traffic of Persons and of the
Exploitation of the Prostitution of Others), and establish bodies/institutions, or task force
in order to eliminate traffic of women and children.
2. To try to handle the safety and future of children, especially street children
3. To accomplish law regarding protection of women and children, jointly with the House of
Representatives.
a. Narcotics, Psychotropic, and Other Addictive Substances
Misuse of narcotics, psychotropic, and other addictive substances, which are able to
accelerate the spread of HIV/AIDS, has been widespread and arose public anxiety, since
they will destroy the future of the nation.
To order the President :
1. To take firm actions in accordance with applicable laws, against the manufacturers,
distributors, and users, and take effective, anticipative, educative, and coordinative steps.
2. To try to establish a budget for the rehabilitation of victims of misuse of narcotics,
psychotropic, and other addictive substances.
a. Pornography
Broadcasting and distribution of pornographic news in printed and electronic media, and
advertisement, have damaged morality of the nation, especially the young generation,
family and the society.
To order the President :
To discipline the publication, show, and advertisements in order not to expose writings,
pictures, and shows that are categorized as improperly pornographic, and punish the
violators, in accordance with applicable laws and regulations.
b. Refugees
Around three million refugees caused by horizontal conflicts at this moment are people
living under poverty, who, until now, have not been handled reasonably and humanely.
To order the President :
To handle those refugees and provide aid for the fulfillment of basic necessities in an
integrated manner between related departments and try to establish international aid, in
order to bring them to their original condition.
SUPREME ADVISORY COUNCIL
1. With regard to the annual report of the said council, MPR is in the opinion that the
performance of the said council as one of the state high institutions has not reached their
maximum performance.
2. Recommendation :
Based on the foregoing matter, MPR recommends as follows :
a. In accordance with Law No. 4/1978 and Law No. 3/1967 regarding Supreme Advisory
Council, and with regard to the change of political constellation, change of membership
structure of the said council may be implemented.
b. The membership of the said council must be based upon personal integrity, national
perspective, public leadership, and professionalism reflecting regional perspective.
c. All proposals and considerations informed to the President, must be construed as a
collective opinion of the said council, which opinion shall be furnished directly to the
President.
d. In order to improve the performance of the said council, Law No. 4/1978 and Law No.
3/1967 with regard to Supreme Advisory Council, needs to be revised in accordance with
the requirements for a reformation.
HOUSE OF REPRESENTATIVES
1. With regard to the annual report of the House of Representatives, MPR is in the opinion
as follows :
a. General
The effectiveness of the House of Representatives has showed improvement, but still
requires improvement of performance.
b. Legislative Function
The implementation of legislative function is relatively slow
c. Budgetary Function
The implementation of this function has not yet been fully consistent with their budgetary
right
d. Supervisory Function
1. Follow-up actions to findings of the Financial Audit Board have not been
performed at the maximum.
2. Complaints and audit findings during individuals/committee visits and input from
work sessions, hearings, and public hearings, has not been follow-up properly.
a. Others
1. Discipline of members of the House of Representatives is still low
2. In conveying their opinions to the public, the chairman and members are
sometimes not able to differentiate between personal and institutional opinions
3. In the performance of their duties, they receive lack of funding support for
providing expert staff, adequate facilities and infrastructure, in order to fulfil their
legislative, budgetary, and supervisory functions.
2. Recommendations
Based on the foregoing matters, MPR recommend as follows :
a. General
The performance of members of the House of Representatives needs to be improved,
based upon high sense of morality and responsibility
b. Legislative Function
1. Productivity of the House of Representatives in the arrangement of laws needs to be
improved
2. In order to improve the performance of the House of Representatives in legislative field,
an institution having a particular duty to assist the House of Representatives needs to be
established, in order to prepare bills
a. Budgetary Function
1. A proactive attitude of members of the House of Representatives in the arrangement of
budget, in accordance to the 1945 Constitution, is required.
2. In order to improve performance of the House of Representatives with regard to the
budget, an institution having a particular duty to assist the House of Representatives in
the budgetary field needs to be established.
a. Supervisory Function
1. Findings located by the Financial Advisory Body must immediately be followed-up
2. a) Complaints and audit findings during individuals/committee visits and input from
work sessions, hearings, and public hearings need to be immediately followed up in
accordance with the function of the House of Representatives.
b). The House of Representatives needs to be active and proactive in encouraging
legal settlement of old and new corruption, collusion, and nepotism cases, by
paying attention to the principle of priority.
a. Others
1. Discipline of members of the House of Representatives in each parliamentary activity,
including attending of various meetings, in accordance with the Disciplinary Rules and
Codes of Ethics of the House of Representatives, needs to be improved.
2. Chairman and members of the House of Representatives shall clearly differentiate
between their personal and institutional actions.
3. a). Support of expert staff, in accordance with the members' duties in their respective
committee, is required
b). Adequate support of budget, facilities, and infrastructure is needed for the
improvement of performance of the House of Representatives, by autonomous
management.
c). Improvement of socialization of actives and performance results of the House of
Representatives need to be improved.
FINANCIAL AUDIT BOARD (BPK)
1. With regard to the annual report of BPK, MPR is in the opinion as follows :
a. The performance of BPK has improved, but has not fulfilled what has been expected of
them
b. Many findings with regard to violations can be seen from results of audit of BPK in
performing their quasi-judicative function have not been fully followed-up.
c. Lack of professional auditors.
1. Recommendations
Based on the foregoing matters, MPR recommend as follows :
a. BPK is the only external state financial audit institutions. And its role needs to be ensured
as an independent institution.
b. BPK needs to improve intensity and effectiveness of audit conducted against state
executive bodies, government institutions, state-owned enterprises (BUMN & BUMD),
and other institutions utilizing state funds.
c. BPK needs to be supported by adequate human resource quality with high sense morality
and independence, completed with adequate budget, facilities, and infrastructure.
d. Various findings with regard to violations/criminal acts, need to be immediately reported
to the Attorney General Office and/or the Indonesian Police, in accordance with Article 3
of Law No. 5/1973 regarding BPK.
SUPREME COURT (MA)
1. With regard to the annual report of MA, MPR is in the opinion as follows :
a. Even though MA has tried to improve its performance, it has not met expectations of the
law enforcement efforts.
b. The piling up of cases is due to the tendency of the submission of final appeal, lack of
professionalism in the performance of MA, indication of corruption, collusion, and
nepotism, and the influence of other parties outside MA.
1. Recommendations
Based on the foregoing matters, MPR recommends as follows :
a. MA needs to be tidied-up, in order to improve their performance in enforcing the law.
This is done by, amongst others :
1). Constantly improve human resource quality of all the judges, clerks, and
administrative staff in all levels, so that the integrity, morality, perspective,
professionalism, and skills are able to support the acceleration of their duties.
2). Immediately settle outstanding cases by the improvement of quality and quality of
their judgements
3). Reasonable fulfil the facilities and infrastructure for all ranks of office
4). Immediately apply the principles of integrated judiciary system
5). Anticipate reactions from the public, which sense of justice with regard to the
judgements of MA and the courts of lower hierarchy is disturbed, in order to maintain the
reputation of MA.
b. MA needs to ensure their independence in performing their duties and functions, and to
establish MA as an institution, which is free from corruption, collusion, and nepotism.
c. MA needs to immediately implement Law No. 35/1999 regarding Amendment to Law
No. 14/1970 concerning Supreme Court that needs to be revised.
d. In order to improve the existence and performance of MA, Law No. 14/1995 regarding
Supreme Court need to be revised.
e. In order to support the implementation of regional autonomy, MA, in accordance with
their authority, needs to immediately conduct a special function for a judicial review
against all regional regulations that are in violation to higher laws and regulations,
without going through final appeal, as referred to in Article 5 of MPR Stipulation No.
III/MPR/2000.
f. In order to improve MA's performance, adequate budget, facilities, infrastructure are
required.
CLOSING
The assignment delegated to the President and recommendations to the state high institutions
depends on the commitment of state apparatus and the support from all the Indonesian people.
Therefore, the state executive bodies shall establish togetherness, in accordance with their
function, duty, and authority as referred to in the 1945 Constitution.
The assignment delegated to the President and recommendations to the state high institutions are
expected to be able to gradually escape from the crisis and create a good arrangement of the
state, which is clean and firm, as a basis for the manifestation of a just and prosper society under
the protection of God The Almighty.
Stipulated in Jakarta
On November 9th , 2001
Speaker of MPR-RI
sgd.
Prof. Dr. H.M Amien Rais
Vice Speaker
Vice Speaker
sgd.
Prof. Dr.Ir. Ginanjar Kartasasmita
Vice Speaker
sgd.
Prof. Dr.Jusuf Amir Feisal, S.Pd
Vice Speaker
sgd.
Drs.H.A Nazri Adlani
sgd.
Ir. Sutjipto
Vice Speaker
sgd.
Drs.H.M Husnie Thamrin
Vice Speaker
sgd.
Agus Widjoyo