This is an abridged and translated statement by the President  to  the press (from an unofficial transcript) after a meeting with other  heads of high state institutions —  including the vice president,  Speakers of the People’s Consultative Assembly (MPR), the House of  Representatives (DPR) and the Regional Representatives Council (DPD),  Chiefs of  the Supreme Court, the Constitutional Court and the heads of  the State Audit Agency and the Judicial Commission — at the Bogor Palace  on Jan. 2.
The challenges are first,  the four  pillars of the State’s way of life that we refer to as our  basic  consensus: the Pancasila state ideology, the 1945 Constitution, the  Unitary Republic of Indonesia, and the state motto Unity in Diversity.  We all agreed to observe our respective tasks in order to strengthen  these pillars. 
The second relates to the proliferation of  administrative regions. A moratorium has been put in place pending the  outcome of an evaluation. We will come up with a grand policy design and  master plan in 2010 and consult them with the DPR and DPD before they  become policy. 
The above proliferation imposes a huge budget  burden on the state. These moves must lead to improvement of people’s  welfare and not the other way round. In the last 10 years, we have seen  the creation of more than 200 new autonomous regions. 
We cannot  let this happen without a clear concept. With the new grand design and  master plan, some regions may be divided and some have to be merged with  others.
The third relates to free trade, including the  ASEAN-China Free Trade Agreement (ACFTA). Free trade is not a novelty  for us. We took the initiative at an APEC Summit here in Bogor in 1994.  In 2003, we had three meetings in Bali, the ASEAN Summit, the ASEAN+3  and the ASEAN with its dialogue partners, which culminated with ACFTA.
Today,  there are talks about not implementing ACFTA. The government position  is clear: we will see and evaluate our preparedness. 
We need to  meet and discuss so that the objectives of the agreement will not create  problems to our 
people. These talks should be conducted according  to international practices. 
The government will manage this  problem as best as it can. We have to protect the interests of our  people and prepare them better but we must maintain strong cooperation  within ASEAN and with our trading partners.
The fourth challenge  is the stability of commodity prices. The recovery of the global economy  has led to increases in prices of basic commodities. The government is  taking steps to prevent this from burdening people. We have set aside Rp  38 trillion under the Amended 2010 Budget to stabilize prices through  market operations and other measures.
The fifth relates to the  2014 general elections. We have some way to go, but the campaign for  legislative elections will commence in July 2013. Learning from past  experiences, we have to prepare early.
All the laws should already  be in place two years ahead. We are counting on the cooperation of the  House of Representatives. We must also appoint the Election Commission  and assign it with the appropriate budget. 
Number six relates to  the amendment of the 1945 Constitution.
Although the Constitution  makes provisions for constitutional amendment, we have to make sure that  the changes reflect the urgency and the will of the people.
Number  seven relates to the local elections at provincial and regency levels.  We want these polls to be more effective and efficient, and not become  costly political exercises. We need to improve the mechanisms and the  rules of these local elections.
The eighth challenge would be  the  campaign to end mafia practices in the judiciary. The Task Force to  Fight the Judiciary Mafia enjoys widespread support and counts on public  participation. People can report directly to my office or the Task  Force, and their information will be followed up. 
Number nine  relates to the national school final exams. The government will make  sure that 
preparatory steps are taken beforehand. They will be in  accordance with the Supreme Court ruling, without sacrificing the  quality of our education.
The 10th challenge relates to the  judicial review process conducted by the Constitutional Court. The court  is obliged to explain to the public about its rulings. 
Number 11  relates to the quality of judges. We have had cases of judges acting  unprofessionally.
Reforming the judiciary is imperative and must  be thorough, and not simply confined to the district courts. We need to  build a credible judiciary system. 
Number 12 is  financial  accountability. All state institutions must strive to improve the  quality of their financial reporting and auditing. We support the  initiative to build an audit facility that links them with the BPK, so  that any irregularity can be checked, traced and tracked immediately.
The  13th challenge is  the checks and balances between the different state  institutions.
They can synergize their acts, sometimes  complementing one another, other times  controlling each other, but they  are there to prevent abuse of power. 
These checks and balances  mechanisms are not meant as tools for one state institution to bring  another down.
This is a presidential, not parliamentary system of  government, so we don’t recognize the concept of “vote of no confidence”  that can bring down the Cabinet. Conversely, the President cannot  dissolve the parliament, the MPR and the DPD. The rules on impeachment  are clearly stipulated in the Constitution.
by Susilo Bambang Yudhoyono 
Opinion of The Jakarta Post, January 28, 2010
27 Januari 2010
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Thirteen challenges facing Indonesia
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