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U.S. Debt Ceiling Deadline; Libyan PM Freed; India's Political Corruption; Indonesia's Self-Made Billionaire; Military Death Benefits; "On the Road: Indonesia"; Tendulkar to Retire; Wingsuit Flyer Dies
Aired October 10, 2013 - 08:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KRISTIE LU STOUT, CNN ANCHOR: Now he has already warned of unthinkable consequences if the U.S. reaches its debt ceiling. And now U.S. Treasury Secretary Jack Lew is expected to echo that sentiment directly to Congress.
He is scheduled to testify before the Senate Finance Committee this hour. We'll bring that to you live when it happens right here on NEWS STREAM.
But first to Libya, where it has been a day of dramatic and confusing events. It started before dawn in Tripoli when gunmen grabbed Prime Minister Ali Zeidan. The gunmen were members of a militia that works with the interior ministry and say that they were acting legally.
Mr. Zeidan's office called it a kidnapping. And just hours later, he was freed. Nic Robertson is in Tripoli. He has been watching all of this unfold today.
And, Nic, what is your latest understanding about what went down today?
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we understand that the prime minister is to give a briefing or is giving a briefing right around now to update on the situation. He was freed about 21/2 hours ago.
He was captured, kidnapped, according to government officials, by a militia that's sanctioned by the General National Congress here and Libyan lawmakers, the top legal body here in the country, sanctioned this militia who say that they arrested him. The justice minister said absolutely not; there was no arrest warrant. This was, in fact, a kidnapping.
What this underlines is the fragility of this government, the lack of military capability, the lack of law enforcement capability that the government here has, and the strength of the militias.
Government ministers we've talked to in the past couple of days have told us they've been concerned that there could be some kind of reprisal action, destabilizing action in retaliation for the arrest over the weekend in Tripoli of Abu Anas al-Libi, a suspect in the bombing of the U.S. embassies in Kenya and Tanzania, believed by the United States to be or have been a member of Al Qaeda.
So what appears to have happened, the kidnapping of the prime minister, appears to be part of that last night. I talked to the justice minister just hours before the kidnapping. I asked him if Libya was on its way to becoming a failed state. This is what he told me.
(BEGIN VIDEO CLIP)
SALAH MARGHANI, LIBYAN JUSTICE MINISTER: I don't think we are there yet. We aren't very far. But we still can do it and get Libya proper statehood; we can uphold the rule of law. Still optimistic we can do it.
ROBERTSON: Very worrying to hear you say --
MARGHANI: We are worried. We are worried.
ROBERTSON: -- close to being a failed state.
MARGHANI: Well, if the security situation say deteriorate further, and further --
ROBERTSON: And it's been declining for some time.
MARGHANI: Yes, the challenges and -- are mounting.
(END VIDEO CLIP)
ROBERTSON: And what we're hearing now is that the government appears to be moving closer to calling a state of emergency; precisely what that means in Libya, where militias are essentially the rule of law and the government doesn't have a clearly defined national security force, really is open to speculation at the moment, Kristie.
STOUT: Nic, can you tell us more about the militia believed to be behind this kidnapping? The operations room of the Libya revolutionaries, they are understood to be an officially backed or officially sanctioned militia. I'm trying to get my head around that concept.
What does that mean?
What is their objective?
ROBERTSON: Well, their objective in this situation appears to be to highlight their grievances. They have many grievances, I've been told. They were acting emotionally is also what I've been told. There is here a sort of a widespread feeling that their prime minister's not measuring up to his job, not doing his job.
But everyone agrees that this is not the way to handle it. This militia seems to have taken the law into their own hands, because they feel that they're the law.
They've said that the prime minister had broken a law that is working against the country's national interests and implication, according to some of their earlier statements that they would hunt down and bring to justice people who were working with foreign intelligence agencies in connection with the arrest of al-Libi over the weekend.
So it seems to me that they feel that they can write their own lawbook here, contrary to what the justice ministry and others, the attorney general, et cetera, here, say. This is symptomatic of across the country of the different militias, some of them have tribal affiliations, some of them have Islamist natures (ph), some of them are affiliated with Al Qaeda.
But these are the militias that the government relies on across the country when it needs security actions performed, and indicates really that this government two years on from the overthrow of Moammar Gadhafi, is no closer to ruling (ph) the country that they were when they began to come to power, Kristie.
STOUT: All right, Nic Robertson, reporting live for us from Tripoli, thank you, Nic.
And now back to the other big story we're following this hour for you. The U.S. Treasury Secretary, Jack Lew, he will be testifying today before U.S. lawmakers all about the debt ceiling deadline, which is now, we're just one week away from it.
Let's bring up some live pictures from Capitol Hill, Secretary Lew is due to speak before the Senate Finance Committee. He has said that the government is dangerously close to reaching its borrowing limits and risks going into default if the debt ceiling is not raised soon.
And we will bring you Jack Lew's testimony live when it happens.
In the meantime, let's bring in Richard Quest; he joins us live from CNN Washington.
And, Richard, we know his stance. Lew stands when it comes to the debt ceiling debate, what will he reveal in this hearing?
RICHARD QUEST, CNN CORRESPONDENT: I think the important thing to note is several issues.
First of all, it's just 5 past 8:00 in the morning in Washington. So it's unusual that he's speaking; it's a sign of the importance of the issue that the committee's meeting at this time and that the Treasury Secretary is giving his testimony at this time.
We have an advanced copy of it, which is embargoed, and it's -- the embargo's just gone.
There's nothing terribly new in what the Treasury Secretary will tell the committee except he reiterates the significance if it goes wrong.
Now the bit I want to read, the bit that's struck me, is when he basically says, "Trying to time a debt limit increase to the last minute could be very dangerous." And this is a warning to those in Congress that think they can go right down to the last second before they raise the debt ceiling.
And what he's going to tell Congress is why that is so dangerous. He says that, "After October the 17th, the U.S. government," in his words, "will have exhausted our borrowing authority and will only have cash on hand to pay bills," and they're expecting big bills for health care, Social Security and veterans.
And that's why, Kristie, this October the 17th, it's not a hard, fast, rigid deadline. It's the point at -- upon which robbing Peter to pay Paul no longer works for the U.S. Treasury.
STOUT: So Jack Lew is there and we're waiting to hear him speak there, to warn lawmakers what could happen here.
I was just reading "The Washington Post" earlier today, and they were mentioning that this could be the first public confrontation between a senior Obama administration official and Republicans, that that could be happening during this hearing.
Could we see sparks fly?
QUEST: I think you're going to -- well, first of all, it's the Democrats who, of course, control the Senate. So he has some natural friends on the committee.
But I think that -- and it's the Senate Finance Committee; it's not a bunch of rabble rousers. They will be questioning him about why they believe their president will not negotiate. And that's the political side of it.
And there are some people, some outliers, who say that a default or that a technical default or a delayed payment is not the catastrophe that the administration and many believe. And Lew says that in the -- in his testimony. He specifically says that it is -- that to those who believe this is not going to be dreadful, they are wrong.
He says, "No credible economist or business leader thinks that defaulting is good for job creation or economic growth."
So he's got two jobs to do: he's got to first of all remind them of how serious this is and why they shouldn't wait until the very last possible moment, and then he has to also say, and, by the way, to those of you who think it's not going to be as bad as you think, you're wrong.
Unfortunately, he might be preaching to the choir with the Senate; it's the House that he really needs to get to grips with. And there, of course, he's not speaking.
STOUT: And, Richard, there's been a lot of talk about a short-term deal to raise the debt ceiling?
STOUT: Where does that stand now?
QUEST: Yes, this is the idea that you have a 4- to 6-week debt ceiling raising while at the same time you have a negotiating or an agreement to negotiate on other issues.
The problem with that is it solves the issue today, but it doesn't put in place anything else for the future.
So you merely get over -- I mean, I'm going to use the cliche -- forgive me, Kristie, but you've kicked that battered old can, you just haven't kicked it very far down the road.
And the reason why I think many might be skeptical on that particular one is simple: if you remember, in 2011, it was such an agreement to kick the can with a grand committee for a grand bargain that got them over that hurdle. But that only led them down to the fiscal cliff hurdle further down the road.
So they're going to have to do something. But it's going to have to be sooner rather than later, because what Lew is also saying, he's going through the economic numbers. He's pointing out how Treasury interest rates, how yields have risen on short-term debt. He's pointing out how the VIX index, the volatility index, is rising.
He's pointing out how $100 billion worth of U.S. Treasuries are rolled over every week. He's also probably going to mention at some point how even one big bond purchaser, Fidelity, has sold many of its bonds for this month. It's all creating this pressure cooker effect that if you do not do something sooner rather than later there is an accident, a serious accident, waiting to happen.
STOUT: All right. Richard Quest, joining us live from Washington, thank you.
And you've been looking at live pictures there from Washington as we are waiting for the U.S. Treasury Secretary, Jack Lew, to give his comments, this, his hearing with the Senate Finance Committee. And once he starts to speak, we'll bring that to you live right here on CNN.
Now this is NEWS STREAM. And coming up next, there has been a national outcry in the U.S after it was learned that the families of fallen troops were not being paid death benefits because of the government shutdown. Now the government has made a quick fix, but the ordeal has been another PR nightmare for Washington.
Also ahead, the legendary Indian cricket player, Sachin Tendulkar, announces he will retire after playing his 200th test match. More on that straight ahead.
STOUT: All right. Welcome back. Let's bring you some more live pictures from Washington. The U.S. Treasury Secretary, Jack Lew, is testifying in front of the U.S. Senate Finance Committee on the issue of raising the debt ceiling. Secretary Lew has already hit out at Congress for, quote, "playing with fire," for failing to reach an agreement.
And once Secretary Lew starts speaking, we'll bring it to you live right here on CNN.
Meanwhile, in India, it may surprise you to learn that a significant number of sitting lawmakers are actually facing criminal charges because nothing bars them from serving in Parliament. A recent Supreme Court ruling is changing things, thanks to the anti-corruption crusade of an 85- year-old woman. Sumnima Udas has more.
LILY THOMAS, LAWYER: (Inaudible) scam. And after seeing this, how can you keep quiet?
SUMNIMA UDAS, CNN CORRESPONDENT (voice-over): Eighty-five-year-old Lily Thomas never imagined a petition she filed eight years ago in the Indian Supreme Court would one day put some of the country's most prominent politicians behind bars.
Thomas' petition requested the court intervene to ban convicted lawmakers from serving in Parliament.
UDAS: Why did you feel the need to file this petition?
THOMAS: Look at the condition of the parliament; so many criminals. Parliament is not a place for criminals. They should be in the jail. No compromises.
UDAS (voice-over): Thirty percent of the lawmakers in the lower house of Parliament face criminal charges, including rape and murder. But today, a proud moment for Thomas and a turning point for India after the court ruled the government had to act.
UDAS: In 72 hours, three powerful politicians were jailed in a country where corruption is rampant. It's a warning to all that the old ways will no longer be tolerated.
UDAS (voice-over): Charismatic former cabinet minister, Lala Pusad Yada (ph), the first to go since the Supreme Court ruling, sentenced to five years for his involvement in a corruption scam 17 years ago.
ANIL BAIRWAL, ELECTORAL REFORMS ACTIVIST: This guy has got --
UDAS (voice-over): Electoral reform activists say the political system does a poor job of scrutinizing potential candidates.
BAIRWAL: Political parties, when they distribute tickets, they just want a candidate who can win elections, whatever means they use doesn't matter. So the two main things that a candidate used to win elections, one is the muscle power and another one is money power.
UDAS (voice-over): All major Indian political parties were initially against the Supreme Court ruling. Several attempts were made to overturn it through an ordinance, a temporary legislation that bypasses Parliament.
But then a dramatic about-face by the ruling Congress party, after Rahul Gandhi, one of its most powerful leaders and potential candidate for prime minister dissented.
RAHUL GANDHI, V.P., INDIAN NATIONAL CONGRESS: My opinion in the (inaudible) is that it's complete nonsense and it should be torn up and thrown out.
UDAS (voice-over): Now the controversial legislation protecting convicted politicians has been withdrawn, and the timing couldn't have been more significant, coming as the country gears up for national elections early next year.
For Thomas and millions of Indians demanding a cleaner government, there's a sense of change in the air.
THOMAS: It's high time that politics is cleansed.
UDAS (voice-over): Sumnima Udas, CNN, New Delhi.
STOUT: That is NEWS STREAM. And we are awaiting first comments from the U.S. Treasury Secretary Jack Lew. He is testifying in front of a U.S. Senate Finance Committee on raising the debt ceiling. As soon as he talks, we'll bring it to you live right here on CNN.
STOUT: Coming to you live from Hong Kong, you're back watching NEWS STREAM.
Indonesia is grappling with tough economic times. One of the country's richest men says Indonesia must do more to unlock its economic potential. From humble beginnings, Chairul Tanjung now heads a multibillion dollar empire. And he tells Patricia Wu why education has the power to transform his country.
PATRICIA WU, CNN CORRESPONDENT (voice-over): Flying around in a chopper was not one of Chairul Tanjung's childhood dreams.
CHAIRUL TANJUNG, CT CORP. CHAIRMAN: I come from a poor families. So because of that, I have to come to the public university. I don't care so much what this discipline is. So finally I graduate as a dentist.
WU (voice-over): That training actually helped him to build CT Corp, a media, retail and banking empire that "Forbes" estimates makes him worth $3.4 billion.
TANJUNG: If the -- this is a problem, you try to fix it. If cannot, you just pull out, right? So that is in the business also. If you have a problem in the company, we try to fix it. If not, just killing the company or selling the company.
WU (voice-over): One of his most famous successes, turning around Carrefour (ph) here when its original foreign owners failed. His advice?
TANJUNG: Knowing about Indonesia, I think it's very important for the foreign investors. And the most faster it's actually is try to partner with somebody from Indonesia. But we understand also what the good partner is not so easy.
WU (voice-over): Indonesia's economy is difficult to navigate, but especially now with slowing growth and rising inflation.
WU: One of these is worth more than 11,000 rupiah, the currency has dropped around 16 percent so far this year versus the U.S. dollar. As the U.S. considers tightening its monetary policy and investor confidence in Indonesia starts to slip.
WU (voice-over): Tanjung points to the country's population of 250 million as an asset that he believes can be counted on and uses Carrefour (ph) as an example.
TANJUNG: Even with this situation, we can grow to around 20 percent to 30 percent every year. So that is not because the situation of reversing quantitative easing, not because also the bonanza of China and India, but because the growing of consumpting (sic) here in Indonesia.
WU (voice-over): Hundreds of millions were spent on upgrading infrastructure here in Bali to host the APEC summit. Tanjung served as vice chair of the local organizing committee.
But elsewhere in the country, aging infrastructure and corruption have hindered growth.
Tanjung believes the country is showing its commitment to anti- corruption.
TANJUNG: Indonesia not only the chairman of (inaudible) ministers, governors, mayors, plenty more than 100 going to the jail. Never having is ever to understand (inaudible).
WU (voice-over): From his lofty perch, Tanjung sees potential for his country, saying the key to unlocking that potential is the same one that fuels his rise: education.
TANJUNG: We need (inaudible) another 10 to 20 years to make it the new, new generation to also very smart of Indonesia and they are not poor. They are on the average people.
WU (voice-over): Decades after graduating as a dentist, the 51-year old's dreams are much bigger now -- Patricia Wu, CNN, Bali, Indonesia.
STOUT: A man pulled out a gun on a train in San Francisco and nobody noticed. Why? A prosecutor says that they were distracted by their smartphones. Stay with us.
STOUT: All right. Let's take you live to Washington now, where the U.S. Treasury Secretary Jack Lew is testifying before the Senate Finance Committee on the looming debt ceiling deadline. Let's listen in.
JACK LEW, U.S. TREASURY SECRETARY: -- so we can honor all of our country's past commitments.
The Treasury Department has regularly updated Congress over the course of the last five months as new information has become available about when we would exhaust our extraordinary measures. In addition, Treasury has provided information about what our cash balances will be when we exhaust our extraordinary measures.
As our forecasts have changed, I've consistently provided updates in order to give Congress the best information about the urgency with which they should act. And last month, I met with the full membership of this committee to discuss these issues.
Treasury continues to project that the extraordinary measures will be exhausted no later than October 17th, 2013, at which point the federal government will have run out of borrowing authority. At that point, we will be left to meet our country's commitments with only the cash on hand and any incoming revenues, placing our economy in a dangerous position.
If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations, including Social Security and Medicare benefits, payments to our military and veterans and contracts with private suppliers for the first time in our history.
At the same time, we're relying on investors from all over the world to continue to hold U.S. bonds. Every week we roll over approximately $100 billion in U.S. bills. If U.S. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance.
Let me be clear: trying to time a debt limit increase to the last minute could be very dangerous. If Congress does not act and the United States suddenly cannot pay its bills, the repercussions will be serious.
Raising the debt limit is Congress' responsibility because Congress, and Congress alone, is empowered to set the maximum amount the government can borrow to meet its financial obligations.
Some in Congress have suggested that raising the debt limit should be paired with accompanying spending cuts and reforms. I have repeatedly noted that the debt limit has nothing to do with new spending. It has to do with spending that Congress has already approved and bills that have already been incurred.
Failing to raise the debt limit would not make these bills disappear.
STOUT (voice-over): OK. You've been listening to the U.S. Treasury Secretary Jack Lew testifying to Senate Finance Committee about raising the debt ceiling. He's been warning about the failure to raise the debt limit would endanger timely payments to veterans, senior, doctors, also warned about the overall impact it would have on the economy.
We have our Richard Quest listening in. He joins us live from Washington.
And Richard, some explicit warnings there from Jack Lew.
QUEST: Yes, and the bit you heard from the Treasury Secretary is really the core of his warning to Congress today, that they will only -- they will have insufficient cash on hand after October the 17th. And that's this artificial deadline. It basically says -- excuse me -- it basically says the kitty will be almost empty after October the 17th. And we know we have big bills that have to be paid.
And that's why unless there's a hard and fast deadline, everybody's focused in on October the 17th. It's that part of the month with one's salary, where you no longer have enough to pay all the bills that are due.
And the crucial part of me is where he says trying to time a debt limit increase to the last minute could be very dangerous, because this is the game of chicken that is being played between the president and Congress, who's going to blink first? Who's going to move? Who's going to capitulate before we get to that October the 17th deadline?
And what Lew is saying is we're already seeing effects in the markets. Interest rates are rising on certain bonds; volatility is increasing in the stock market. Monday and Tuesday, the market was down more than 100 points on each day.
So talks take place today. But the warning is very real from the Treasury Secretary.
STOUT: The debt ceiling deadline is quickly approaching, as you mentioned, quoting Jack Lew, the effects are already being felt. They're going to be felt at a far, far worse way if this deadline passes.
What do you think is going to be the impact of this hearing, of this testimony on U.S. lawmakers? Will it somehow spur them to reach an agreement?
QUEST: No. He's saying nothing really new. I mean, I suppose one could arguably say he's turning up the gas under the -- under the burner. And that might have an effect.
But anybody who knows this issue is going to know what he's saying very well indeed.
I think where it may have an effect is on Wall Street, because if you have the U.S. Treasury Secretary consistently and repeatedly screaming the sky's about the fall, the sky's about to fall, and you're getting closer and the sky starts to get darker and darker, then eventually you may start to see serious real market dislocation.
And probably unless some deal is done, you know, out of political goodwill, that's going to be the only thing that will force their hand. So short of dramatic market dislocation, the market movement, that finally pours an enormous bucket of cold water over this city, brings everybody to their senses.
And just let me -- on one point here, Kristie, the president of the World Bank, speaking to me yesterday, said four (ph) countries are already feeling the effect. They are watching money going into the Swiss franc, the U.S. dollar, into gold. They're watching their economies being hit by having to pay higher interest rates.
We're going to hear in another hour or so the managing director of the IMF, Christine Lagarde, in her press conference, she's going to be warning about it.
So the rest of the world, which is here in Washington for the IMF meetings, is basically watching something that's short of a gasp at what's taking place.
STOUT: Yes, the world is watching; the markets in particular, Richard Quest reporting for us, thank you.
As Richard was mentioning there, just the effects of the political impasse in Washington, so far-reaching it definitely relates to this next story, families of fallen U.S. troops that were devastated to learn that survivor benefits to help pay for burials and other expenses had been suspended because of the partial U.S. government shutdown, which is now in day 10.
And public outrage saw the government scramble to find a quick fix on Wednesday. Our Pentagon correspondent, Barbara Starr, has more now from Washington.
And Barbara, it seems that outrage has turned into action there.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, it finally did, a temporary fix for the families of more than 2 dozen troops that had been killed since the shutdown began, so they can get these benefits, a temporary fix. The question is, how did they get this far?
STARR (voice-over): At Dover Air Force Base, 24-year-old Army Ranger Cody Patterson came home to his family as Defense Secretary Chuck Hagel paid his respects, unbearable grief for families made much worse because the government shutdown left them without death benefits.
Marine Lance Corporal Jeremiah Michael Collins' remains were brought Monday to Dover. His mother, Shannon, says he was a great Marine.
UNIDENTIFIED FEMALE: He became a Marine to become somebody. And he became a great Marine.
STARR (voice-over): The White House Wednesday promised a quick fix to a tragedy that had become a PR disaster. The president told WRC TV he acted as soon as he learned of the problem.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When I heard about this story, I told the Department of Defense, within our administrative powers, we should be able to get that fixed.
STARR (voice-over): As Hagel stood on the tarmac, top aides were urgently working on a solution. The Pentagon signed a contract with Fisher House Foundation, a private organization that helps war wounded.
Fisher House will pay the families' bills and a $100,000 death benefit. The government will pay it back when the shutdown ends.
But for veterans, a looming disaster if the shutdown continues much longer. More than 3 million receive disability checks that may not come on November 1st. Many new veterans from Iraq and Afghanistan, still waiting to be approved for disability payments, will have to keep waiting.
ERIC SHINSEKI, SECRETARY, U.S. DEPARTMENT OF VETERANS AFFAIRS: Roughly 1,400 veterans a day are now not receiving decisions on their disability compensation claims.
STARR (voice-over): If the mess in Washington isn't solved, the V.A. will not be able to pay $6 billion due to more than 5 million people expecting checks, including veterans, their surviving spouses and children, on November 1st.
STARR: And the Pentagon insists it told Congress, it told White House officials about this fact that the death benefits wouldn't be paid; there was even a news briefing to reporters. But many members of Congress said they believed the Pentagon still could have gone ahead and paid it, still a very major PR political disaster, Kristie.
STOUT: All right, Barbara Starr reporting, thank you, Barbara.
Now let's take a look at a few world headlines right now.
The Libyan prime minister, Ali Zeidan, is now free and unharmed after he was taken at gunpoint from a hotel in Tripoli earlier on Thursday. A militia calling itself the operations room of Libya's revolutionaries detained him for several hours.
The U.S. President Barack Obama is set to meet with Republican leaders today. GOP lawmakers tell CNN they may put forward a proposal to temporarily increase the debt ceiling. A high-ranking Democrat says that the president is open to looking at the Republican plan.
The Canadian author, Alice Munro, has won the Nobel Prize in literature. The Nobel committee called the 82-year old "a master of the contemporary short story." One of 106 winners of the literature prize, Munro is the 13th woman.
You're watching NEWS STREAM. And still head, this Indonesian village was devastated by a huge earthquake in 2006. And we'll show you how an innovative architect helped rebuild it using traditional techniques to better withstand the forces of nature.
STOUT: Welcome back.
Now far from the discussion debate of this week's APEC gathering, all this week CNN's "On the Road" series will bring you greater insight into the customs and culture of Indonesia, from homegrown architecture to high- flying photography, we explore the places, the people and the passions unique to this diverse Southeast Asian nation.
And today, Anna Coren shows us how tragedy motivated one architect to act.
ANNA COREN, CNN CORRESPONDENT (voice-over): Under coconut palms and banana trees, in a small village outside Job (ph), Jakarta, the rhythms of life revolve around family, tending to rice paddies and their livestock.
But just before dawn on the 27th of May, 2006, this peaceful existence was shattered when a 6.3 magnitude quake lasting almost a minute flattened buildings within a 20-kilometer range. Densely populated areas became piles of rubble, claiming the lives of more than 3.5 thousand people.
COREN: What did this place look like after the earthquake?
EKO PRAWOTO, ARCHITECT: Well, most of the house, I think, collapsed, because the (inaudible) still some bricks left, I think.
COREN: And they use bricks mainly for their construction?
PRAWOTO: Yes, brick with a poor quality cement.
COREN (voice-over): Renowned Indonesian architect Eko Prawoto knew people in this village and needed to help. He contacted a local newspaper and asked for donations for building materials. And then over the next few months, he and his team volunteered their time to construct more than 100 new homes. They used coconut wound bound together with bolts (ph), based on traditional design.
PRAWOTO: The whole wooden pieces become kind of one, so it's very stable. It still have for flexibility as a wooden structure. So it means that it will stand during the tremor.
COREN (voice-over): Situated in what's known as the Ring of Fire, Indonesia is prone to earthquakes. And while 51-year-old Bu Suatarim (ph) has witnessed many, she vividly remembers the day the earth violently shook back in 2006.
"All I could think of was my grandchildren," she told me. "I raced back and found my house in ruins. One of the children was trapped. Thankfully, he survived."
While there are at least five tremors a year, Bu (ph) says she now feels much safer.
"I'm very fortunate to have my new home. It's solid without much brick. I believe when the next big one hits, it will still be standing."
Eko's designs are certainly built to last. An architect for more than 30 years, his homes have graced the pages of books and glossy magazines. But his philosophy isn't about standing out; rather, blending into the environment, using tradition to enhance the natural surroundings.
PRAWOTO: Architecture is not an isolated entity. It's not begin and end in itself, but it should be part of the larger context of the environment, not only environment but also social context or (inaudible) context.
COREN (voice-over): He's also a strong believer in community, using local materials, local skills, which in turn help the local economy.
PRAWOTO: We have to rediscover the spirit of the community and how it's possible to keep that spirit or to strengthen it in our contemporary situation.
COREN (voice-over): Anna Coren, CNN, Job (ph), Jakarta, Indonesia.
STOUT: And tomorrow we'll wrap up our "On the Road" special series in Indonesia. Anna Coren will take us to the country's new holiday hot spots, the destinations hoping to rival the popularity of Bali.
You're watching NEWS STREAM. And coming up next, find out about the inspiring CNN Heroes who are having a huge impact on their communities. Anderson Cooper unveils this year's top 10, and you won't want to miss it.
STOUT: Now all year, CNN Heroes has introduced you to ordinary people who are making an extraordinary difference in their communities. And today, we reveal our top 10 CNN Heroes of 2013. You can vote online for the person who inspires you the most . And here is Anderson Cooper with the top 10.
ANDERSON COOPER, CNN HOST: I'm Anderson Cooper. All year we've been introducing you to some truly remarkable people. We call them CNN Heroes, everyday people changing the world.
And now it's time to announce the Top 10 CNN Heroes for 2013. Every year we receive thousands of nominations from you, our global audience, and now we're here to announce the 10 individuals who have been selected to receive $50,000 and a shot at the top honor: 2013 CNN Hero of the Year. That person will get an additional $250,000 to continue their work.
And you can help decide who that deserving person will be by voting now at CNNHeroes.com. So with that, let's get to the top 10 CNN Heroes of 2013 in random order.
(BEGIN VIDEO CLIP)
COOPER (voice-over): From Statesville, North Carolina, Dale Beatty: after losing his legs in the Iraq War, he was embraced by his hometown and then he decided to pay it forward. Today, he's modified or helped provide homes for more than 2 dozen disabled veterans.
From Berkeley, California, Dr. Laura Stachel uses solar power to help health care workers deliver babies safely.
Since 2009, her solar suitcases help save lives in more than 20 countries.
DR. LAURA STACHEL, CNN HERO: (Inaudible). Isn't that beautiful?
COOPER (voice-over): From Trenton, New Jersey, Danielle Gletow. She's a fairy godmother for foster children across the U.S. Since 2009, she's made thousands of their wishes come true.
DANIELLE GLETOW, CNN HERO: How are you guys?
COOPER (voice-over): From Nairobi, Kenya, Kakenya Ntaiya: she made great sacrifices to get an education; now she's opened the first primary school for girls in her village where she's educating and inspiring more than 150 young women.
KAKENYA NTAIYA, CNN HERO: Come on. (Inaudible) to the end.
COOPER (voice-over): From Camden, New Jersey, Tawanda Jones, in one of the poorest cities in the country, her drill team provides discipline and inspiration to children of all ages, 4,000 of her students have graduated from high school and 100 percent success rate.
UNIDENTIFIED MALE: You guys ready? Yes.
COOPER (voice-over): From East Moline, Illinois, Chad Pregracke: he's made it his life's work to keep America's rivers clean. Since 1998, his team has removed more than 7 million pounds of garbage from 22 waterways across the country.
ESTELLA PYFROM, CNN HERO: All right. Let's get on board and (inaudible).
COOPER (voice-over): From West Palm Beach, Florida, Estella Pyfrom: this 76-year-old grandmother poured her retirement savings into a mobile computer lab. Now she's bringing technology and tutoring to more than 2,000 low-income children and adults.
UNIDENTIFIED MALE: There you go. All right.
COOPER (voice-over): From San Diego, California, Richard Nares. He lost his son to leukemia, and now he's helping low-income children get to their cancer treatments, giving them more than 2,500 free rides a year.
From Ouande (ph), Cameroon, Dr. George Bwelle, nearly every weekend he travels into the jungle, bringing surgery to those in need. Since 2008, his team has helped 32,000 people for free.
ROBIN EMMONS, CNN HERO: These are heirloom tomatoes over here.
COOPER (voice-over): And from Charlotte, North Carolina, Robin Emmons: since 2008, she's grown more than 26,000 pounds of fresh produce for underserved residents in her community.
COOPER: Join me in congratulating the Top 10 CNN Heroes of 2013, a truly extraordinary group of people. And now you can help choose which one will be CNN Hero of the Year. Go to CNNHeroes.com to learn more about each of our heroes and vote once a day every day for the one who inspires you the most.
Don't forget to tune in for CNN Heroes, an all-star tribute, when we honor all of these remarkable people in a CNN tradition that promises to inspire.
STOUT: Each and every one of them truly amazing.
Now the Indian cricket legend, Sachin Tendulkar, will retire from the sport. Tendulkar will say goodbye after a test match against the West Indies next month. He holds many batting records and has recorded plenty of honors in his long career. But perhaps the best way to sum up his legacy is his nickname. He's simply known as "The Little Master."
Let's get more now on the legacy of Sachin Tendulkar, "WORLD SPORT's" Amanda Davies joins me now live from London.
And, Amanda, just what did he mean to Indian cricket fans?
AMANDA DAVIES, CNN CORRESPONDENT: Well, he's absolutely everything to Indian cricket fans, Kristie, (inaudible) the board of cricket control in India has said he's not just one of the greatest sports people in the world, he's one of the greatest Indians of all time.
This is something we've been expecting for a long time. He's 40 years of age and as you said, he's broken and rewritten most batting records there are. We knew he'd played his last one-day game at the weekend. He played his last 20-20 match when he successfully led the Mumbai Indians to victory in the Champions League 20-20.
We've long had his 200th test match penciled in the diary as something that might be a decent date. He's on 198 currently. And yes, as expected, he has said that those two tests against the West Indies will be his last.
He's released a statement through the board of control for cricket in India, which says, "All my life, I have had a dream of playing cricket for India. I have been living this dream every day for the last 24 years. It's hard for me to imagine a life without playing cricket, because it's all I have ever done since I was 11 years old.
"It's been a huge honor to have represented my country and played all over the world. I look forward to playing my 200th test match on home soil, as I call it a day."
And, Kristie, it really has been a truly remarkable career. Have a look at this.
DAVIES (voice-over): His life has played out like a Hollywood blockbuster movie, the humble Mumbai Kid cracking it in the big time.
Sachin Tendulkar made his professional debut at 16, and his international career lasted an astonishing 24 years. He became revered around the world for both his elegance and power at the crease (ph), and became the only batsman to score an incredible 100 hundreds in internationals.
Milestones have fallen, but they have never been important to The Little Master.
SACHIN TENDULKAR, INDIAN CRICKET LEGEND: I don't play for milestones. I play cricket and I want to enjoy it. And you know, (inaudible) somehow perception or it's (inaudible) by possibly (inaudible) a few guys living here, because you're right. I don't play for milestones. While playing, this is a journey where it's, you know, you end up breaking records and all that.
But I don't play for records.
DAVIES (voice-over): (Inaudible) Tendulkar's finest moments was winning the World Cup with India in 2011. In front of an adoring home crowd, the hosts beat great rival Sri Lanka, sending over a billion Indians into raptures. But despite all the success, it's Tendulkar's humility that's bowled people over.
MAHELA JAYAWARDENE, FORMER SRI LANKAN CAPTAIN: What he has achieved as a cricketer is phenomenal. But same thing, as a person, (inaudible) I think he's a fantastic guy, especially with 1 billion people's expectation on his shoulders. That something that you have to admire.
DAVIES (voice-over): Tendulkar has broken nearly every run scoring record there is, and it's not surprising, over his career, he's had phenomenal commercial success. (Inaudible) his earnings for 2012 alone at $18.6 million. But all the fame and fortune is living his childhood dream that's brought him the most joy.
TENDULKAR: I remember when I first held a cricket bat when I was probably 4 or 5. And the love for cricket only grew bigger and bigger after that. And it hasn't stopped. Every outing is a special one. And that is what I've dreamt of as a kid. And I'm living that dream.
DAVIES (voice-over): One record Tendulkar doesn't hold is batting average. That's held by another giant of the sport, Australia's Don Bradman. But when The Little Master calls it a day after the home series against West Indies, few would argue against him being ranked alongside Bradman as the greatest batsman in history.
DAVIES: Kristie, that debate will run and run, who is the greatest of all time, the likes of Bradman and Lura (ph) are always mentioned. But he will always, always be up there. There is no doubt about that. He's had such an incredible impact, not just in India; if I tell you, one of my friends names their sons after him, he's called Sachin as well.
He's a little boy, aged 5 years of age, living here in London. But the tributes are not coming in. The former England captain, Michael Vaughan, has tweeted, "One of the greatest ever, Sachin Tendulkar is retiring, one of my heroes, an absolute joy to play against."
So we do know we've got two tests left of The Little Master. It's been 38 innings since he scored a century. But it's not a bad bet, I'd say, that to lay a bit of money on maybe another one before that final test, which it gets underway in India on November the 14th.
STOUT: That's right. And after that, The Little Master will get a very big and very fond farewell. Amanda Davies, joining us live from London, thank you.
Now before we go, I want to share a tragic story out of China. Now here you see the windsuit flyer, Victor Kovats. He's jumping into the Tianmen Mountain National Forest Park on Tuesday. And this was the last time he was seen alive.
Kovats, he was practicing for the World Wingsuit Championship. He was a three-time Hungarian national champion. He had completed 700 jumps. Witnesses lost sight him after his parachute failed to appear. And nearly 200 rescuers searched the rocky terrain, and then they found his body on Wednesday at the foot of a 100-meter cliff.
The Red Bull World Wingsuit League organizes the competition, and it has expressed sadness over Kovats' death and says that it will review the accident. And the championship event is set to begin on Friday.
Now that is NEWS STREAM. But the news continues at CNN. "WORLD BUSINESS TODAY" is next.