1. On 28 November 1996 members of the community reported that a military element (Kostrad), a certain First Lieutenant Novie Ardi held a meeting with his colleagues to plot the assassination of the bishop, Monseigneur Carlos F Ximenes Belo, SDB and David Diaz Ximenes.

2. In the village of Samalari, subdistrict of Baguia, Baucau, on 8 November 1996 troops from the Kostrad and the Sandi Rajawali units gathered a number of youths they had recruited with the promise of money, to monitor (intelligence operation) the nightly activities of the people of Samalari/Baguia. The youth were given the authority to take action against anyone leaving their houses at night and, if needed, arrest them under the accusation of political involvement.

3. On 7 November 1996 in Baucau (Kota Baru) 2 young men, Evaristo Ximenes and Aniceto Ximenes were arrested by elements of the Kostrad unit. They were accused of involvement in the assassination of Sarge ant Major Juliao Fraga. Both youths were arrested in their rice fields in the village of Bui Bau at night. They are presently being held at police headquarters in Baucau.

Furthermore, on 9 November 1996 also in the village of Bui Bau, close to Baucau, two men Armindo do Rosario and Manuel were arrested. From information received the two men and the two youths are still being held in the police headquarters in Baucau and have been undergoing heavy torture. Their mental and physical conditions are causing grave concern.

4. The inhabitants of the subdistrict city of Quelicai (Baucau) are under intensive surveillance. In the past two weeks Kostrad has added an extra platoon to increase surveillance. The inhabitants' every movements are being monitored to the point that they do not feel free to move, they are scared and feel oppressed. On 17 November 1996 the Baucau police called in Quintino Emanuel de Cristo, a public servant from the Office of Information in Quelicai, on suspicion of involvement in the assassination of Sargeant Major Juliao Fraga. Quintino had been a member of the Rajawali intelligence unit but was dismissed and his radio communication equipment confiscated in June 1996 because his loyalty was put in doubt. Quintino has been held at the Military Police detachment (DENPOM) where he is undergoing intensive interrogation [by the militaries who want him] to confess to either being an eyewitness or the perpetrator of the assassination. He has been tortured and when his family visited him he had wounds and swelling on most of his body. Quintino has since been released on the condition that he reports daily to police HQ. According to information received and a power of attorney he has signed, Quintino is being represented by Legal Aid.

5. Reports from Viqueque say that 2 [sic] young people were arrested in Viqueque on 6 November 1996 at 15.00 hours by the Rajawali commando troops. One has been identified as Agustino Ximenes of RT 01 RW 01 Letemumo village. Four others have not yet been identified. The five youths were workers for a private company project in Sabukara Laran, Becora, East Dili and were engaged in selling books, including novels. Febri worked for another boss in a different place.

The incident started with the borrowing of a novel owned by the victim. On 6 November 1996 at approximately 6.30, Febri went past the victim's place of sale and found the victim arranging his books. Febri was interested in one of the novels for sale and wanted to purchase it but did not have the money. As Febri was well known to the victim he was allowed to borrow the book provided he returned it by 12.00. By 17.30 Febri had not returned the book and the victim went to his place with the intention of collecting it but he only found Febri's boss. As the book had been borrowed for such a long time in the end [the boss] paid Rp 3,000 - the price of the book - to the victim.

The following morning, 7 November 1996 at approximately 6.30, it is not known whether under instructions from his boss or because his boss had become involved, Febri went to victim's place. Approaching him from behind he swung his machete hitting the man on his left arm. When he saw what he had done Febri run to police to give himself up. The victim was immediately taken to the hospital. At present he is back at home although he has not fully recovered. This incident caused a strong reaction from local vendors and from local youths including students from Untim (East Timor University) but the reaction did not spread further than the area where the incident occurred.

6. Following a demonstration in front of the Bishop Dioceses Office in Dili on 25 November 1996 on the occasion of the Bishop's press release with regard to the "Der Spiegel" interview, a number of youths were arrested, among them:

1. Anibal Ximenes 20, RT12 RW VII Quintal-Boot, Santa Cruz, opposite the Department of Information office. According to a report by his parents to the Bishop's Commission for Peace and Justice in Dili, the youth's arrest was connected to the demonstration which took place in front of the Dili Dioceses on the occasion of the Bishop's press release. At the time of this report the family is not aware of the youth's whereabouts. An unsubstantiated report has him held in Manatuto although the family has not yet checked the veracity of the information. The boy's parents are Carlos Ximenes and Angelina Matias Ximenes.
2. Joao Rangel Pires, born in Manatuto 17 September 1972, known as Ajao, living in Manatuto at Maa-Ma RT 3, RW II Aitias. The youth was arrested on 25/11/96 by the police and the SGI (Intel) He was taken away without a warrant from the appropriate authorities. The arrest was connected with the demonstration in front of the Dili Dioceses on the occasion of the Bishop's press release. Since receiving this report from the family it is still not known whether he is being held in the police HQ in Manatuto as unconfirmed reports would have him held in the Becora jail.
3. Panraleo do Rosario Pires was arrested in Becora in front of the workshop on the night of Monday 25/11/96 at 21.40 in the house of his sister Mrs do Rosario. The youth has since been released on the condition that he reports daily to police HQ.

7. On 27/11/96 at approximately 10.00 am Rajawali troops chased, shot, arrested and interrogated a man from Quilicai in the Quilicai Kota market. The man is Mario Lucio da Costa, 20, address: Bati-Casu, in the village of Laisorulai Leten RT 02 RK I. Parents: Mateus da Costa (deceased) and Celestina Cabral.

The incident started with the victim distributing photocopies of the Bishop's press release of 25/11/96 to the people of Quelicai on 27/11/96 in the local market. A Rajawali soldier who was aware of the man's activities arrived at his house while Mario was reading the press release. The soldier approached the man while saying insulting words about the bishop. "CARLOS [the bishop] is a liar. He is only aggravating the problem". Mario took exception to the bishop's being insulted and an altercation ensued. The soldier lost his temper too and closed his hands around Mario's neck while threatening him with his gun. Mario managed to escape but the Rajawali soldier run after him while shooting his gun 4 times. These shots were followed by 6 more shots from an FNC rifle. The man was hit and suffered serious injures to his upper arm.

As his wounds prevented him from running Mario was caught and taken to the Rajawali post approximately 0.5 km from the Quelicai Kota market. On the way to the post he was repeatedly beaten until he was black and blue and some of his teeth were broken. This incident was witnessed by several people. The Rajawali soldiers told the people that he had been hurt in a fall. There were 5 Rajawali soldiers involved in the chasing, shooting, capture and torture of the man. The names of the perpetrators are not yet known, however steps are being taken towards obtaining a positive identification.

At the time of receiving this report neither the victim's family nor the ICRC have been permitted to visit. Since the incident the Kodim 1628 unit in Baucau has increased the number of soldiers in Quelicai.

8. On 15/11/96 at approximately 15.00 hours Rajawali troops arrested Rodolfo da Costa Sarmento from the village of Ililai-Laivai while he was working in his field in Laivai. The young man originates from Ilia-Laivai in the subdistrict of Lautem, district of Los Palos. After the arrest the young man was taken to the sub district of Laga - Baucau, where he was interrogated and heavily tortured. He was hung from a tree by his right foot then the rope was cut causing him to fall to the ground. He was then buried alive and taken out again. The young man's condition is bad and to the present time it is reported that he is still being held at the Flamboyan in Baucau - the HQ of the Rajawali - and that his case has not as yet been legally processed.

9. In connection with the demonstrations which took place in Baucau in the past months, information has been received that young people who have been held for an average of one to two years have been secretly moved to the island of Alor without the families' knowledge. They are:

1. Mateus Lopes Pinto, 29, Catholic, ex- politics students at Untim, from the village of Luto-Guia, Macadiki RT 02/RW X, district of Viqueque.
2. Celestino Viegas, 38, Catholic, farmer, from Luto-Guia, village of Macadiki RT 02/RW X, district of Viqueque.

10. on 26/11/96 around Liquica a woman was shot dead. Her name was Fernanda da Silva, 52, married. Her husband's name is Fernando Soares, 54, farmer, originating from the village of Asmanu RT 01, village of Hatu-Rae-Hei, district of Liquica. She left three adopted children aged 18, 15 and 3.

Based on the report of three eyewitnesses on 24/11/96 three ABRI elements from the local BTT post (Linud 700 battalion) in civilian clothes, one armed and two unarmed (name and identity of perpetrators not yet known) were chasing four girls who were taking flowers to a grave close to the victim's house. As they lost track of the girls the three ABRI soldiers switched direction and went to Fernanda (the victim)'s house. Without saying a word they caught a chicken belonging to her and just threw Rp 500 to the three year old woman's son. The woman did not protest because this was the first time it had happened. A few days later the ABRI soldiers returned demanding eggs and untying the rooster belonging to the woman's husband. The woman chased them, screaming "please do not take the rooster, I have nothing, the rooster is for sale". Without a word, but with angry expressions, the three handed back the rooster and returned to their post. This sort of behavior is not uncommon among ABRI elements posted in the hills and villages far from the cities where they take what they want by force.

On the 26/11/96, Fernanda and her husband attended a `tara bandu' ceremony in Kilohei. Fernanda and other women were in the kitchen preparing lunch. After lunch they (the men and a number of ABRI elements) started gambling. The players were divided in two groups. The Head of the military post (DAN POS) and one of his subordinates were among the players while the others just watched, cradling their rifles. After several rounds a soldier changed his viewing position and sat down with his weapon pointed at Fernanda who was sitting in the kitchen talking with other women. Suddenly there was a shot and those playing cards were startled. A woman shouted from the kitchen "Fernanda has been shot dead". The DAN POS took the rifle away from his subordinate and took him back to the post. Fernanda's body was kept for the night at the place of the shooting and the following day was taken back to her house in the village of Hatu Rae Hei for burying (28/11/96). The Liquica Military Commando (KODIM) donated 200 kg of rice and 6 dozen packs of instant noodles to the family for the funeral. At the time of receipt of this report no action had been taken against the perpetrator. For the time being the Liquica KODIM has apologized to the family of the victim and has said that the shooting was accidental.

On 24 November 1996, during the day, three ABRI elements, members of the local BTT Post (LINUD 700 battalion) in civilian clothes and all armed (names and identities not yet known) arrived at the victim's house. Without a word they untied a rooster belonging to the victim and left. The woman chased them screaming "please do not take my rooster, I am old, I have nothing, the chicken is to be sold". The three ABRI elements, without a word, returned the chicken and went back to their post, looking angry and disappointed. The witness said that the soldiers' behavior towards villagers was not unusual. ABRI soldiers often took things by force and the people just had to accept it. A man did get shot on one occasion because he refused to give up his rooster.

On 26/11/96 at approximately 13.00 hours, the same three ABRI elements (all in civilian clothes and armed) arrived at the victim's house. This time the three just entered the house and sat down in the parlour. As it is customary, the woman welcomed her guests and offered them coffee, cakes and bananas then she retired to the kitchen leaving her guests to sit by themselves.

While the three ABRI elements were sitting enjoying their snack, the witness Antonio Da Silva arrived and immediately entered the house where he saw the three armed guests. The witness was invited to partake of the food but he refused. The witness saw one of the three soldiers holding his rifle and his fingers twitched as if he was about to pull the trigger. The rifle was pointed towards the kitchen where the victim was at the time. Suspecting something the witness went to sit outside the house.

Still according to the same witness, the victim still had a chance the clear up the ABRI guests' glasses and plates then she returned into the kitchen to chat with the wife of the local village head. At that time the witness heard a shot (just one) but he did not think the shot had hit the woman. A short time after the shot was heard the youngest adopted child of the woman shouted "auntie Nanda is dead". The witness hurried up inside and saw the woman. She was already dead, a bullet had entered her right armpit and come out under the right one.

One of the three ABRI rushed off to report to his post and shortly after the DAN POS (identity not yet known) arrived to the scene of the shooting. The witness who was still at the place of the shooting told the DAN POS that the woman had been shot by one of his three subordinates who were being entertained as guests at the time. He demanded that the DAN POS and his three subordinates take responsibility for the woman's death. Shortly after the witness went to report the incident to the local parish priest. As he left, the witness is not in a position to report about developments in the case of the shooting of Fernanda Da Silva in the village of Asumanan, Liquica.

Up to date only the testimony of Antonio Da Silva has been heard. Other witnesses have not yet been heard. The provisional conclusion is that the motive for the shooting it was a case of personal anger by one of the ABRI elements of the PTT POS because the woman had not allowed him to taker her rooster. Further enquiries are required to investigate the factors, motives that led to the shooting and the identity of the perpetrators.

11. The shooting by the militaries of a civilian, Tomas Sarmento, 35, from Secorai, Betano village, Same, Manufahi district.

This incident took place on 25 September 1996 when two brothers were searching for their horses who had broken loose. They believed the horses had run off to the grass fields towards Bermeit. The two left at 13.00 hours and arrived at their destination at approximately 16.00 hours but the horses were not there so they (Tomas Sarmento and Armindo Nunes) took different routes back while still looking for the horses and agreed to meet in Barolau. Armindo Nunes arrived in Barolau first and waited for over one hour then he heard three shots followed by another one.

In this incident, the security forces confessed to the shooting but said that it had been unintentional as the shooter took the wrong aim. Having given that as a reason, the BADIK/RAJAWALI unit produced a statement to be signed by the family, the village head, the three leaders of the village, the three leaders of the district and the BADIK/RAJAWALI Commander stating that the family would not make any claims against those responsible for the shooting.

Statement of Arsenio Ramos-Horta

ETRA - 18 February 1997

[In the original posting from Apakabar, the title of this report was prefixed with the term "ALLEGED" - JB]

It came to my attention the article of Sunday Observer of December 15, 1996 by Charlotte Clayton. As the person recently often used by the Indonesian Government propaganda machine to denigrate the name of my brother Jose Ramos- Horta by using this so-called book "the Eyewitness" I wish to state publicly the following:

1. My name is Arsenio Ramos-Horta, a brother of Jose Ramos-Horta who was quoted in the Sunday Observer by Charlotte Clayton as having written the so-called book "The Eyewitness".

I am currently residing in Sydney, NSW, Australia. I arrived in Sydney in April 1995 and requested political asylum.

2. I am aware that the Indonesian Government is now trying to make use of the book "Eyewitness" to discredit my brother, Jose Ramos-Horta. References to the book have been published in the Sunday Observer as a consequence of the desperate moves by the Indonesian Government to avoid hearing the truth about East TImor.

3. Between 1979-80 I was a prisoner of the Indonesian military occupying East Timor. I was a captive of the Indonesian secret service intelligence - INTEL. As it is well-konwn, the role of INTEL was never to gather intelligence but rather, to terrorize the people of EAst TImor. Between this period, many times I was forced to accompany INTEL to follow them to witness their barbaric and sadistic sessions when they torture my own people in the famous HOuse of 'San Tai Ho' (the most feared torture centre in Dili).

3.1. By demanding my presence in these torture sessions, their aim was to terrorize myself. They told me that if I do not do as I was told, I would suffer the same consequences.

3.2. It is not easy to visualize what I mean by torture unless you have seen INTEL in action. The torture I have witenessed included bashing, kicking, hit with steel rod, electric shock and pressing your toe nail with a chair where the INTEL officer sit on. All of these were done with tremendous sense of humour by the INTEL officers.

3.3. The torture sessions used to start at 0:00 (midnight) when they (INTEL) forcibly wake the prisoners up, and torture them until 3:00AM. This was a routine exercise of the INTEL agents. Major J. Ganap, Captain Metan, Captain Synaswul, Lt. Col. Bamban Permadi and Sergeant Suhartoyo, are some of these sadistic names I will never forget for the rest of my life. They were some of the perpetrators who hopefully will be made to respond to their horrendous crimes.

If you are or being invited to Bambang's place, you can only expect that you will be killed. Many were killed and disappeared forever as a consequence of "going to Bambang's place".

105 released, at least four still detained (names unknown)

Amnesty International - 19 February, 1997

Of those arrested in the Viqueque district of East Timor in relation to disturbances between 7 and 11 February, 105 have now been released, leaving at least four still in detention. According to reports, many of those that have been released were tortured or ill-treated while in custody.

According to East Timor police chief, Colonel Yusuf Muharram four people "who engaged in destruction [are] being interrogated and are suspected of causing the incident". No information was given about their names or whereabouts. In view of the reports of torture and ill-treatment of the 105 who have been released, Amnesty International is seriously concerned for the safety of those still in detention.

Muslim migrant killed in riot over priest insult

South China Morning Post - February 22, 1997

Agencies in Dili and Jakarta – One man was killed and several others injured yesterday when 6,000 East Timorese set fire to the homes of migrant Muslims in reaction to reports a Catholic priest had been insulted at a Muslim gathering.

At least seven people were injured during the six-hour riot in Ambeno district in the former Portuguese colony.

The dispute began after the priest reportedly was served left-over chicken bones as a guest at a Muslim dinner to celebrate Halal Bihalal, a Muslim gathering usually held after the Eid al-Fitr holiday, Filomeno Musquito, the top official in Ambeno, said.

The Catholic East Timorese heard about the insult and rioted through a colony of Bugis migrants from South Sulawesi. The colony is 190 kilometres west of Dili, the capital of East Timor.

Mr Filomeno said in a telephone interview that 86 houses, two cars and four motorcycles owned by Bugis migrants were set ablaze.

A 30-year-old Bugis man, Mahmud Abu, was killed, he said. No arrests had been made.

The Government encourages migrants to move to more remote islands to ease population pressure in central islands.

In overwhelmingly Christian East Timor, discontent over migration is more deadly because of simmering anger against Indonesia, which invaded in 1975.

Three arrested over Ambeno killing

The Straits Times - February 25, 1997

Ambeno, East Timor – Indonesian police have arrested three people and are hunting another who allegedly killed a man during unrest in East Timor last week which left more than 300 people homeless, The Jakarta Post reported yesterday. The three people were arrested on Saturday, the report said, adding that police were also looking for others, including a man who allegedly stabbed to death a Muslim migrant from South Sulawesi in the unrest which erupted on Friday in Ambeno, 200 km west of the East Timor capital, Dili.

A protest by some 6,000 East Timorese for an alleged slight against a local Roman Catholic priest Lazarus Mau turned into an attack on migrants from South Sulawesi. One migrant was killed, 10 injured and scores of buildings and vehicles burned or damaged. Indonesia, the largest Muslim-populated nation in the world, annexed the former Portuguese colony of East Timor in 1976, where most of the 800,000 residents are Roman Catholic.

Lieutenant-Colonel Hambali, who heads the Ambeno military command, said on Sunday that the unrest left 329 people homeless.

He estimated financial losses caused by the rioting at 2 billion rupiah (S$1.3 million), adding that the homeless were being housed in barracks at the police district office and the military sub- district office.

A source in Dili said yesterday that the situation in Ambeno had returned to normal.

Father Mau gave a Sunday mass calling on the Catholic community to keep the peace.

"I have already asked the Christians in this area to stop acting in a bad way, and stop destruction. I have also asked them to go back to work," Father Mau was quoted as saying by the Antara news agency. The priest had attended a feast at a local military base on Wednesday with other local dignitaries, religious leaders and public figures, where leftover food was allegedly handed to him in a lunch box.

The local population began protests against the alleged slight on Thursday and the protest turned violent the following day. – AFP.

Embassy employee seeks asylum in S Africa

Kompas - 25 February, 1997

According to The Sunday Age of South Africa on Sunday, 23 February, an employee at the Indonesian embassy in South Africa has asked for asylum and says that he is in possession of secret documents giving proof of corruption in Indonesia and relating to human rights violations in East Timor.

Kompas also reported that Foreign Minister Ali Alatas said he had not yet received a report from the embassy in South Africa about this request for asylum. Kompas reported on Monday that the person in question was named Stany Aji. Marco Boni, spokesperson of the South African foreign ministry, confirmed that the person had asked for asylum but the South African government has not yet taken a decision on the matter.

Contacted from Australia, the Indonesian ambassador Dr Rahadi Iskandar said the asylum request was not connected with anything political and claimed that Stany had be dismissed after being accused of falsifying signatures. He claimed that Stany had used his position for personal gain.

He was dismissed at the beginning of January and had immediately spoken to the South African press about his dismissal.

Religious conflicts kill one in East Timor

Lusa - February 24, 1997

Dili – An estimated 6,000 East Timorese have burned tens of houses owned by Indonesians migrants after local people became enraged by a slight against a Catholic priest who had been given a dinner-box containing leftover food on Wednesday evening.

The incidents in Ambeno, about 200 km west of Dili, capital of East Timor, on Friday morning were reported to have lasted more than six hours, causing the death of one person, 30-year-old Mahmud Abuh, and injuries in six other people.

The official governor of Ambeno, Filomeno Musquito, told Associated Press, that 86 houses had been burned as well as two cars and four motorcycles owned by Moslem migrants from the Indonesian island of South Sulawesi.

East Timor was invaded in 1975 by Indonesia and annexed one year later but the United Nations still regards Portugal as the territory's administering power.

East Timor is a predominantely Catholic territory while the Indonesian population is mainly Moslem.

Downer tells Horta Australia will not review its policy on East Timor

Antara - February 17, 1997

Canberra – Australian Foreign Minister Alexander Downer told anti-integration activist Ramos Horta that Australia will not review its support to the East Timor integration to Indonesia.

The remark was made by Downer in his meeting with Horta in Adelaide, Thursday, in the fulfilment of the Nobel peace winner's request for talks on East Timor. Downer said Australia only recognised tripartite's dialogue in their effort to solve problem in the Indonesian province.

The tripartite dialogue comprises only Indonesia, Portugal, and the UN Secretary General.

Horta called on Australia to review its policy on East Timor and supported his claim as a representative of East Timor.

Ramos Horta, co-receiver of the last year's Nobel Peace Prize sought Australia's support on the withdrawal of the Indonesian Armed Forces from East Timor. His co-receiver of the prize is Dili's Bishop Felippe Ximener Belo.

East Timor integrated with Indonesia in 1976 after being colonised by Portugal for nearly 400 years. Downer did want to meet with Horta in Canberra, but prefered to receive the Fretilin leader in Adelaide. Some local observers saw that a change of the place was a hint from Australian government belittled the essence of the meeting. The Australian press also played down Horta's eleven day visit in in the state. The press only wanted to cover his meeting with Minister Downer.

Horta himself understood that his effort to persuade Australiato review its policy on East Timor is not easy.

Speaking at a meeting organised by the Australian Institute ofInternational Affairs, Horta said his meeting with Minister Downerwill not able to change Austalia's position on East Timor.

No death tolls in Viqueque mass brawls, says military commander

Antara - February 17, 1997

Dili – Col Mahidin Simbolon, the East Timor military commander,firmly denied unconfirmed reports that six people were killed in a recent mass brawls in Uatolari sub-district, Viqueque, East Timor.

"It's totally untrue the reports saying that six people were killed in the mass brawls that occurred from 7 to 9 February. It's not true... Nobody has died," he told newsmen here on Saturday.

Simbolon also denied foreign press reports that a number of Catholic priests had been beaten during the brawls.

He further said that the fights broke out after a dispute among local youths and the fights have no political tendency and were purely criminal.

He said the brawls were purely criminal and that the authorities had confiscated daggers, stones and other objects from the suspects.

"We are still investigating the incident," he said.

Meanwhile, security authorities are still holding 109 youths who were arrested for their involvement in the brawls, a spokesman said.

"Initially, we arrested only 85 persons but the figure eventually grew to 109. One of them had fired a gun during the fights," said Dili Police Chief Col Yusuf Mucharam here.

He said the incident was sparked by a quarrel between youth groups. A group of pro-integration and Makikit youths became the target of another youth group that had gone wild.

Economy and investment

PT Timor will no longer rely on govt's special assistance

Antara - February 26, 1997

Jakarta – Timor national car producer, PT Timor Putra Nasional,will no longer rely on special assistance from the government indeveloping its car industry, its president director, Hutomo "Tommy" Mandala Putra, said Monday.

"We will no longer need special assistance in the future becauseby achieving the 60 percent local content on the third year, we willhave tax exemptions for the import of other car components," Tommytold newsmen after the groundbreaking ceremony for the constructionof PT KIA Timor Motors' car factory in Cikampek, some 100 km east ofhere.

He expressed hope that his company would achieve a 100 percentlocal content for the Timor national car.

He is also optimistic that his company would be able to increasethe Timor's local content to 60 percent by 1999.

In February 1996 the government granted PT Timor import duty andluxury sales tax exemptions.

Import duties and the luxury sales tax, applicable to all othercar producers in the country, add about 60 percent to the prices ofcars.

The tax breaks were extended because Timor was designated asIndonesia's national car.

PT Timor was required to achieve a 20 percent local content inits first year of production, 40 percent in the second and 60percent in the third.

Since August last year, PT Timor has been importing Timor sedansfrom South Korea's Kia Motors, pending the completion of its ownproduction facilities in 1998.

Low-priced car Tommy also disclosed that PT Timor will launch in 1999 a new1000 cc sedan, the Timor S-2, to be priced at Rp 20 million.

The present 1600 cc Timor S-515 has been in the market sinceOctober last year and costs about Rp 36 million.

The company will also develop a 2000 cc jeep to be called theJ5, he added.

The jeep will be imported in completely-knocked-down (CKD) formfrom South Korea's Kia Motor to be assembled here, he said.

The price of the J5 jeep will be less than that of other jeepsin the same class, Tommy said.

Behind the tussle for gold – How connections solved the spat for the

Bloomberg - 21 February, 1997

Jakarta – In Indonesia, doing business is largely a matter of whom you know. And few executives know more people than Mohamad "Bob" Hasan.

Mr Hasan, 72, just helped settle a tussle for control of the world's largest gold deposit. The tale of how the dispute got settled is a good example of how business gets done in Indonesia these days.

The gold – an estimated 71 million ounces, worth US$25 billion (S$35.66 billion) at today's prices – was discovered in 1994 in Borneo by a small Canadian exploration company called Bre-X Minerals Ltd.

Bre-X didn't have the expertise to mine all that gold. No problem. Indonesian Mining Minister I B Sudjana had a candidate for a partnership in mind: he insisted Bre-X sell two-thirds of its stake to Canada's Barrick Gold Corp, a US$1.3 billion company that's exploring more acreage in Indonesia than any other mining company. Barrick was partner with a company controlled by Siti Hardiyanti Rukamana, President Suharto's eldest daughter.

The mining minister had threatened to take away Bre-X's rights to the mine if it didn't come to terms. That worried the other mining companies in Indonesia. And that would be bad for the mining business, one of Indonesia's biggest industries.

Enter Bob Hasan. An ethnic Chinese brought up on Java, Mr Hasan made his millions in the vast timber stands of Kalimantan on Borneo – akin, in Indonesia, to making your money in the Wild West. Mr Hasan keeps a gun in his desk and once said, after playing golf with Sylvestor Stallone, "I told Rambo I'm the King of the Jungle".

At the beginning of December, in the midst of this unusually public spat over the gold, Mr Hasan met Mr Suharto, mining executives said. Mr Hasan has been an adviser and golfing buddy of Mr Suharto's for decades. He took along a friend, Freeport McMoRan Copper & Gold Inc chairman James Moffett, known as "Jim Bob". They came up with a way to resolve the problem, and do themselves a good turn as well.

Freeport, based in New Orleans, has operated in Indonesia for three decades. It was one of the few companies to invest here after Mr Suharto suppressed a coup attempt in 1965 when some foreign investors shied away. Mr Suharto has never forgotten that Mr Moffett took a chance on Indonesia when few would. Freeport's major business is operating the massive Grasberg copper and gold mine in the mountain jungles of the Indonesian province of Irian Jaya.

It's the largest mine of its kind in the world, and staying friendly with local politicians has been essential as expansion plans were criticised by environmental groups and the US funding agency Overseas Private Investment Corp. Resentful guerillas of the Amungme tribe killed an employee a year ago.

The company has prospered – earnings were US$226 million last year. With sales of US$1.9 billion, Freeport is among the country's largest taxpayers.

A company led by Mr Hasan handles catering for the mine. After Messers Hasan, Suharto and Moffett met in December, a company owned by foundations headed by Mr Suharto and led by Mr Hasan – PT Nusantara Ampera Bakti, known as Nusamba – bought controlling interests in Bre-X's local partners.

Then on Monday Bre-X announced it had found a new partner – Freeport. Under the deal Mr Hasan brokered, Bre-X will get a 45 per cent stake compared to the 22.5 percent it would have got under the deal with Barrick. Freeport gets 15 per cent and has to kick in US$400 million towards the cost of the mine. Plus it has arranged a US$1.2 billion loan towards the rest of the costs.

That's compared to the 67.5 per cent share Barrick was to have received. The big difference from the earlier deal, though, is the 30 per cent Bre-X's local partners – the biggest being Mr Suharto's foundations and Mr Hasan – will get. There may be room for other investors, Mr Hasan said.

It looks at first glance like a better deal for Bre-X, which winds up with nearly half of the mine instead of a quarter. The problem is, it turns out Bre-X won't get any money for their 30 per cent stake, Mr Hasan told a press conference on Wednesday. Nor will the Indonesian government have to pay for the 10 per cent stake it's taking. While Bre-X would have got a smaller share of the mine in the Barrick deal, at least it would have been paid cash for the stake it gave up.

Eight-year-old Bre-X has practically no sales and is operating at a loss. The mine is its ticket to the big time. Bre-X executives say they're happy, since they might have been edged out of the deal entirely. Freeport stock, not surprisingly, is up US$2.62 to US$32.12 a share.

No wonder Mr Hasan, a short man with a moustache, looked pleased at Wednesday's press conference. "I've been friends with Suharto for 40 years," he told the reporters. Yet "I'm not under pressure, because I'm not a government employee."

The Timor Gap

Far Eastern Economic Review - February 27, 1997

Jay Solomon, Jakarta – Tommy Suharto's car project may be hitting the skids, but ironically it's been a boon to Indonesia's auto industry.

So what was all the fuss about? When President Suharto granted exclusive tax breaks in February 1996 to national-car producer Timor Putra Nasional, headed by his youngest son Hutomo "Tommy" Mandala Putra, the reaction ranged from outrage to panic.

Timor Putra's exemption from import duties and a luxury-sales tax allows its passenger car the Timor to severely undercut the price of comparable sedans. And without its own assembly line, the company was also allowed to import the first 45,000 Timors, produced in South Korea by its joint-venture partner Kia Motors, fully built and duty-free.

After news of the Timor's privileges broke, the share price of Indonesia's largest auto maker Astra International nearly halved on fears that it could not compete; General Motors of the United States shelved Indonesian expansion plans; and Japan, the U.S. and the European Union filed complaints with the World Trade Organization charging unfair trade practices. Car sales fell 14% last year as Indonesians put off making purchases in anticipation of the first Timors going on sale in October. Competitors worried that the cheap "national car" would dominate the market.

But a year later, it seems all the fuss was much ado about nothing. Far from commanding the market, Tommy Suharto's car venture appears to be floundering and the Timor is having trouble finding buyers. Thousands of models sit "rusting and unsold," as one Western diplomat put it, on an unprotected tarmac west of Jakarta's international airport. Of the 45,000 cars that Timor Putra is allowed to import duty-free from South Korea, only 16,000 had actually been shipped into the country as of January 1. And even those must be begging for buyers, judging from the letters that executives at major Indonesian companies say they've received from Timor Putra. "If the letter is the same one received by some of my colleagues, then my company is expected to buy up to 200 300 units," said one high-level executive who was expecting his to arrive any day. "And who could refuse?"

Such a drastic sales tactic is an obvious sign that the Timor isn't being snapped up, despite being priced 10%-50% lower than rivals in the 1.5-litre category. In fact, with sales sluggish and prospects grim, some analysts believe that Tommy Suharto is either looking for a way out or willing to let his national-car project fade away, something that Kia Motors and Timor Putra adamantly deny.

The problem with the Timor is basically two fold, say auto-industry analysts in Jakarta – a less than state-of-the-art sedan coupled with the absence of any significant after sales service. Tommy Suharto is essentially importing an $8,000 Kia Sephia model from South Korea and reselling it in Indonesia for $15,000. While it still costs less than competitors in the passenger-car market, the unsold Timors prove that price isn't everything. "Timor misjudged what consumers want," says Yeow See Yeun, auto analyst with Deutsche Morgan Grenfell in Jakarta. "They want power steering, fuel injection, and support services and are willing to pay more for it."

In fact, sentiment towards the Timor has been so poor that at a recent parliamentary hearing, Kia was accused of dumping defective Sephias into Indonesia. The Indonesian Democratic Party member who made the accusation, Ni Gusti Ayu Eka Sukmadewi, also claimed that only three of the 1,000 2,000 Indonesian workers to be trained in Seoul under the national car programme had actually been sent there. Officials at Kia, South Korea's second-biggest car maker after Hyundai, called the charges "utterly groundless." Minister of Trade and Industry Tunky Ariwibowo later said that only 100 trainees were to be sent to Seoul but Kia and Timor Putra officials gave different figures.

Despite the accusations and ambiguities, both Kia and Timor Putra executives say everything is going fine and sales are rising towards the target of 3,000-4,000 units per month. With after sales service improving and more authorized dealerships opening, they maintain they'll be able to sell 45,000 units this year.

Figures submitted by Timor Putra to Gaikindo, the Indonesian Automobile Association, put sales of the Timor at about 6,000 units since the car came on the market in October to the end of 1996, an average of around 2,000 units per month. This has since increased to 3,300 units sold in January alone, contends Moon Ki Kim, financial controller of Kia-Timor Motor in Jakarta. But faced with this figure, Yeow of Deutsche Morgan Grenfell says: "January would be a very unusual month."

He's among analysts who do not believe that any of these figures accurately reflect consumer demand. Not only have some Indonesian companies said they received purchase quotas, but government ministries and civil servants have also been obliged to buy Tommy's Timor. "It is very difficult to believe that there are even genuine buyers for 2,000 units a month," says Pablo Zuanic, auto analyst at ING Baring Securities in Jakarta. "Many, we believe, have been sold at a discount or even given way." Some analysts think that genuine demand may be as small as 200 units a month.

Certainly, there are no signs that the Timor's price advantage is causing large numbers of Indonesians to forsake their "utility vehicles," the light trucks that account for 85% of the vehicle market (see chart), as competitors had feared. And in two years, when its tax breaks are due to expire, the Timor's sole competitive advantage will disappear. The government could, of course, extend Timor Putra's tax breaks, although the case pending at the WTO would make any extension extremely difficult to pull off, analysts assert. But the company may already be attempting to backslide: Soemitro Soerachmad, head of its Timor Industri Komponen subsidiary, recently told the Bisnis Indonesia daily that the company would meet its 20% local-content level by April 1998, exactly a year after what was generally seen as the deadline. (Under the national car programme, local content must reach 20% after the first year, 40% after the second year and 60% by the end of the third year.)

However, even if the Timor's privileges are extended, by 1998, rival auto makers such as Astra, Indomobil and possibly Bimantara Citra will have reached the 60% local-content requirement that will entitle them to similar tax concessions. They will then be able to compete on an equal footing with the Timor, but they'll have more mature distribution networks.

Time will level the playing field, and also put more players in it. Auto analysts point to numerous affordable models of "family cars" descending on Jakarta from Tokyo. There's also the low-cost "Maleo" the brainchild of Minister of Research & Technology B.J. Habibie, who calls it his "Volkswagen" which will be ready for road-testing by April. Then there are the two self-proclaimed "national cars" produced by Hyundai and Bimantara Citra, headed by Tommy's brother Bambang Trihatmodjo, that went on sale last July. Not to mention the small van planned by the Bakrie Group and France's Peugeot-Citroen to hit the market next year.

Given this crowded outlook, many auto analysts suspect that Tommy Suharto and his South Korean partners are quietly putting the brakes on the Timor project. Moon of Kia-Timor Motor says such speculation is "baseless." As evidence that "Tommy has a lot of interest in the project," Moon cites the new date for the ground-breaking ceremony of the company's assembly plant in Cikampek, West Java. But it was precisely Timor Putra's repeated failure to break ground on the plant that convinced many analysts the Timor was a non-starter. Construction of the 60-hectare plant was set to begin in June last year, then was delayed to October and is now tentatively scheduled for February 24. "We got the sense that Tommy wanted to use revenues from the sales from the first year to build the plant," says a Jakarta-based auto analyst. "But because sales have been so slow, we think both Timor and Kia are having second thoughts. At up to $400 million, this is a significant investment."

Without its own assembly line, Timor Putra announced in January that it would assemble its sedans at the production facility of Indomobil, the automotive subsidiary of the Salim Group. Timor Putra executives say that starting in April, about 4,000 Timors a month are to be built at Indomobil's Tambun plant in West Java.

But with so many imported Timors still unsold, many in the market are wondering why the company wants to push ahead with local production. Some speculate that Timor Putra's relationship with Indomobil is meant eventually to lead to a merger of the two companies, or to Tommy Suharto selling his national car licence to the Salim Group a nice exit plan. "Timor Putra's alliance with Indomobil would make sense as they would get production and distribution facilities without making any more investments," says Wilianto Ie, auto analyst at Schroders Indonesia. With tycoon Bob Hasan, President Suharto's right-hand man, set to become chairman of Astra International this month, there's also speculation that Indonesia's largest vehicle assembler will come to Tommy's aid.

Other analysts suggest that Tommy Suharto might be content just to let the Timor fade away. "As a long-term threat to the industry, the Timor is just not what people thought," one analyst says. "Tommy will most likely just make a decent profit from the Timors he has sold and move on."

Though the Timor may turn out to be another bungled business venture by this Suharto son, the irony is that the project has actually had a positive effect on the nation's auto industry, analysts say.

In response to angry competitors, the Indonesian government announced in June that any car maker that could reach 60% local content would get the same tax exemptions as the Timor. This has led to more and more companies seeking to source parts locally, which lessens dependence on overseas manufacturers, and in turn brings down prices and reduces foreign-exchange risk. "You can only be competitive now if you increase your local-content level," says Jongkie Sugiarto, president of Bimantara Citra's automotive wing. "The more you use, the better-off you will be, and unless Mazda and Toyota continue to move in this manner, they won't be able to compete."

But Toyota and its joint venture partner, Astra, are moving in precisely this direction. Their "Kijang" commercial vehicle will definitely have 60% local content by 1998, says Astra's finance director, Rini Soewandi. Other Toyota-Astra models are upping local content as well, she says. What's more, Toyota is increasingly willing to allow Astra to export auto components. (Japan's refusal to allow such exports had been a sticking point among Indonesian auto makers.) Rini says that Indonesia now exports auto components, primarily for the Kijang, to such destinations as Malaysia, the Philippines, Taiwan and the Middle East.

Stephen Rogers, director of research at UBS Securities in Jakarta, goes so far as to say that the entire industry is being transformed by the advent of the Timor. "Paradoxically, the car policy initially introduced to assist one entity has brought forward deregulation. A transformation is taking place as the reduction in auto prices will stimulate tremendous long-term growth, plus the switch from commercial vehicles to passenger cars as the price deferential decreases."

In the long run, this will be good news to Japanese, American and European car makers, who might still be fuming at the immediate consequences of the Timor's entry into the market. Yet even among its rivals, there are signs that the Timor's impact is diminishing.

Diplomats have noted that none of the plaintiffs at the WTO neither the Japanese, the Americans nor the Europeans have actually brought the case before the WTO's dispute panel, leaving the matter at the consultative stage. And one Japanese official who took part in Prime Minister Ryutaro Hashimoto's December visit to Jakarta having seen the thousands of Timors parked in long rows near the airport told the REVIEW: "Maybe this isn't such a big deal after all."

'As a long term threat to the industry, the Timor is just not what people thought' auto-industry analyst

Astra's new chairman steps into the spotlight

Wall Street Journal - February 20, 1997

Richard Borsuk, Jakarta, Indonesia – Bankers and securities analysts piled into PT Astra International's news conference Wednesday for a glimpse of the Indonesian auto assembler's new chairman.

In Mohamad "Bob" Hasan, they saw a man far different from his two shy, soft-spoken predecessors. Mr. Hasan occasionally chided reporters, and, at one point, pulled out a camera and snapped a picture of an Indonesian journalist posing a long question.

The news conference was a kind of coming-out party for the 65-year-old Mr. Hasan. He has been a big shot in Indonesia for many years, but only consistently in the public eye in the past four months. Also available to take questions were two of Indonesia's biggest tycoons – newly named to Astra's supervisory board – but nearly all the attention was on the new chairman.

Stepping Into the Spotlight

Mr. Hasan moved center stage in Jakarta in October when he said that Nusamba Group – the company he manages, which is 80%-owned by foundations headed by President Suharto – would buy 10% of Astra. Then he emerged as leader of an informal group of five businessmen who jointly own more than 50% of the company. Mr. Hasan then won a stake and big role in the giant Busang gold find in Borneo. Next, Nusamba bought part of Freeport McMoRan Copper & Gold's huge mine in Irian Jaya.

In the past week, Mr. Hasan arranged a settlement to a long brawl over who will develop the Busang find. It is a settlement that effectively gives companies run by Mr. Hasan a 30% stake in Busang, for which he isn't paying anything to Bre-X Minerals Ltd., the Canadian exploration concern that found the gold.

Mr. Hasan makes no effort to camouflage the reason why he is a heavyweight. "I've been friends with [President] Suharto for 40 years," he said at the news conference. The relationship between Messrs. Suharto and Hasan is so close that some Jakarta businessmen privately refer to the president as "RI 1" – the license plate number on Mr. Suharto's limousine, for "Republik Indonesia" – and Mr. Hasan as "RI 1.5."

Every move he has made, Mr. Hasan asserts, has been done simply because it was good business. But to most Jakarta business executives, a major motive for Mr. Hasan's moves is carrying out what Mr. Suharto would like. "He became Astra chairman because that's what the president wanted," an Astra executive said.

'Not a Government Employee'

Asked whether he has taken on the role of "peacemaker," settling business disputes between Mr. Suharto's children, Mr. Hasan replied that whatever he does is "purely done on a business basis – nothing else."

Asked if, as Astra chairman, he can make pure business decisions, or whether he will inevitably represent government interests, the plywood baron responded: "I'm not a government employee. The government can't employ me, I'm too expensive."

Some investors have found it costly not to have Mr. Hasan on their side. Mr. Hasan denies it, but many mining industry executives say that a deal under which Barrick Gold Corp. was to get most of Bre-X's share in Busang – a plan that some government officials heavily pushed late last year – came off the tracks because Mr. Hasan took a personal dislike to Barrick Chairman and Chief Executive Officer Peter Munk.

Some securities analysts think Mr. Hasan, as Astra chairman, intends to change the management team that has been in place for years. But on Wednesday, he indicated there was no need for a personnel shake-up. "If the directors are fine, why change?" he said.

While joking often, the blunt Mr. Hasan made clear he likes things done his way. When some reporters in the packed room moved close to the front table, Mr. Hasan warned "If you stand up there again, I'll leave." No one stood there again until the function ended.

Indonesia accepts Bre-X proposal to develop Busang

Reuters - February 19 1997

Jakarta – Indonesia has accepted a proposal by Canada's small Bre-X Minerals Ltd mining company to develop the huge Busang gold find, Mines and Energy Minister Ida Bagus Sudjana confirmed yesterday.

The approval follows news on Monday that Bre-X and its local partners had formed a joint venture with US giant Freeport McMoRan Copper and Gold Inc to develop Busang in Indonesia's East Kalimantan province, one of the world's richest gold finds.

"The government has agreed to accept the Bre-X proposal," Mr Sudjana told a Jakarta news conference.

Under the Bre-X proposal to develop Busang, whose estimated 70.95 million ounces of gold reserves are worth over US$24 billion (S$34 billion) at current prices, Bre-X would take a 45 per cent stake in the venture and Indonesian and government interests 55 per cent.

The Indonesian interests had agreed to allocate a portion of their share to Freeport McMoRan, which amounted to 15 per cent.

Freeport McMoRan, which has run one of the world's biggest copper and gold mines in Indonesia's Irian Jaya province through PT Freeport Indonesia for the past 30 years, would develop and operate the Busang II and Busang III properties. Mr Sudjana said yesterday that Indonesian state-owned companies would have the opportunity to participate in the development of Busang at the production level.

But he did not specify the state-owned companies.

Tin miner PT Tambang Timah and nickel and gold miner PT Aneka Tambang have both indicated their interest in participating in Busang.

The Indonesian government last November pressed Bre-X to team up with Canada's Barrick Gold Corp, the world's second largest gold miner, which had an agreement with President Suharto's eldest daughter Siti Hardiyanti Rukmana.

It said in December they had agreed to split the find 22.5 per cent for Bre-X, 67.5 per cent for Barrick and 10 per cent for the government.

But there was no mention of Barrick in the recent announcements.

Call to curb Indonesia's Chinese businessmen

Sydney Morning Herald - February 26, 1997

Louise Williams, Jakarta – The Indonesian Chamber of Commerce and Industry has proposed a new economic policy to support indigenous entrepreneurs.

The move is an attempt to reduce the overwhelming power of the country's small groups of ethnic Chinese businessmen and defuse potentially explosive racial tensions.

The chairman of the chamber, Mr Aburizal Bakrie, pointed to Malaysia's affirmative action program to boost indigenous entrepreneurs and the range of restrictions on Malaysia's Chinese minority in company ownership, management, access to government contracts and financing.

Indonesia's ethnic Chinese make up about 5 per cent of the population but control about 60 per cent of the national economy, an imbalance which has recently fuelled several anti-Chinese riots causing property damage, injuries and deaths.

Unlike Malaysia, which has a Chinese minority of 35 per cent, Indonesia has made few adjustments to correct the racial imbalance of economic power.

"Our economic condition is far from balanced. That is why we need a new economic, political policy to correct the situation," said Mr Bakrie, one of Indonesia's handful of powerful indigenous entrepreneurs.

He said an affirmative action program must be put in place for indigenous people "before more political explosions occur".

The issue is extremely sensitive for the Soeharto Government and the many foreign investors in joint ventures with Indonesian Chinese. The Soeharto Government has actively bolstered the big corporate empires of the leading Chinese in exchange for their support, business expertise and, in some cases, a share of the profits for family members.

Under President Soeharto's Government a new indigenous business class has emerged, but it is a class with political power such as the President's children and members and relatives of the ruling political elite.

The Soeharto Government, however, has been under increasing pressure to adjust the balance - particularly from the majority Muslim lobby, which wants more economic power for the country's 85 per cent indigenous Muslims.

Mr Bakrie cited Malaysia's 1970 New Economic Policy which stipulated that 30 per cent of the economy must return to Malay hands, effectively forcing ethnic Chinese businesses to sell 30 per cent of their stock at discount prices to qualified indigenous Malaysians.

However, despite the widespread recognition of the ethnic imbalance in the Indonesian economy, analysts have pointed to lack of economic management expertise within the indigenous community. Historically, indigenous Indonesians were banned from doing business during Dutch colonial rule and were limited to working on plantations while the Chinese minority established local business empires.

Busang stake free for Indon partners

Bloomberg - 20 February, 1997

Jakarta – Bre-X Minerals Ltd will not receive any payment for the 30 per cent stake in the Busang gold deposit that it gave to its Indonesian partners, said Mohamad "Bob" Hasan, an Indonesian businessman who helped broker the agreement.

"It's very straightforward," Mr Hasan said.

Mr Hasan's statement confirms speculation by investors and analysts that Bre-X won't be compensated for giving its local partners a larger stake in the mine than agreed under a previous plan.

The plan, approved by the Indonesian government on Tuesday, gives a 45 per cent stake to Bre-X, down from 90 per cent. Freeport-McMoRan Copper & Gold Inc will have a 15 per cent stake while the Indonesian government gets 10 per cent interest. Two Indonesian companies controlled by Mr Hasan, a close adviser to President Suharto, hold the remaining 30 per cent.

The agreement replaces any previous plans for the mine's development, Mr Hasan said. Under the original agreement between the Hasan companies and Bre-X, Mr Hasan's companies would have been entitled to 10 per cent of the eventual mine. The additional 20 per cent they're getting now is free.

Bre-X discovered the deposit in 1994 and under its exploration contract with the government originally expected to be given full title to develop the mine. The government now takes 10 per cent.

Freeport will pay US$400 million (S$568 million) of the estimated building cost of the mine. – Bloomberg Business News

Indonesian oil company to sell stake in Natuna gas project

Associated Press - February 18, 1997

Jakarta – Indonesia's state-owned oil and gas company plans to sell to Japanese investors a 13 percent stake in a giant gas project in the South China Sea, the government said Tuesday.

Research and Technology Minister B.J. Habibie said that negotiations are under way for Pertamina to possibly sell a one percent stake each to 13 Japanese companies.

Once that is done, Pertamina will be left with a 11 percent share in the project. The Japanese corporations include Mitsubishi Corp., Sumitomo Tomen Corp., Mitsui Corp., GNOC Corp. and Enpex Corp.

Pertamina originally had a 50 percent share in the $20 billion offshore project. The other half is controlled by Exxon Corp. of the United States under a November 1994 deal.

Pertamina later sold a 26 percent stake to Mobil Oil, another U.S.-based company.

The Natuna field, located about 800 miles north of Jakarta, is expected to produce some 5 million tons of liquefied natural gas per year by 2003.

Tycoon 'Bob' Hasan tipped to take key role in Astra

Reuters - February 19, 1997

Jakarta – Business tycoon Muhammad "Bob" Hasan, a close associate of Indonesia's President Suharto, is tipped to take a key role in the country's largest carmaker PT Astra International, brokers and analysts said yesterday.

Brokers said there was intense market talk that Mr Hasan would be appointed chief commissioner of Astra, maker of the nation's most popular Kijang car, at the company's extraordinary general meeting (EGM) today.

"It is believed widely that he is the strongest candidate for commissioner," a broker with a Japanese securities firm said.

But he said the speculation on changes in Astra's board of commissioners was no longer affecting sentiment in shares of the firm, which dominates the local car market with the Toyota, Daihatsu, Isuzu, BMW, Peugeot and Nissan brands.

Astra also makes Honda motorcycles.

"It is a sound company which is doing very well and so far it's a widely held public company in Indonesia," the broker said.

"The changes, I believe, will not have much impact on its bottom line."

But brokers said the market would be more interested in changes in the company's day-to-day management as there was speculation that the current president director, Mr Theodore Permadi Rachmat, had decided to step down.

"I have heard that finance director Rini Suwandi is the strongest candidate for president director," a broker said.

If Ms Suwandi, who has headed Astra's corporate finance department since 1990, rose to the top job, she would be one of few Indonesian women to head a major listed company. Mr David O'Neil, analyst at BZW Niaga Securities, said changes in Astra's board of commissioners could add value to the firm.

"In terms of earnings growth, Astra will do well superbly for the next three or four years," he said.

But he added that while it might be difficult for the board of commissioners to enhance directly the earnings growth, they could play a key role in business development.

He said that there would be discussions on business development such as Astra's wood-based industries, its non-core assets and the flotation of its subsidiaries.

They are going to have a view on those issues, he added.

Yesterday, Bisnis Indonesia newspaper quoted Mr Hasan as saying it was up to the majority shareholders to appoint Astra's commissioners.

He said in future Astra should be developed in such a way as to give benefit to Indonesia in general.

"For the automotive industry, we will increase the use of local components and boost exports," he was quoted as saying.

The EGM is the first since major changes in Astra International's ownership late last year.

Mr Hasan's Nusamba group now holds 10 per cent of Astra's stock, the largest single stake in the company.

Nusamba is 80 per cent owned by charitable foundations headed by President Suharto.

Indonesia formally endorses deal on Busang ownership

Wall Street Journal - February 19, 1997

Richard Borsuk, Jakarta – The government gave its formal blessing to the recently settled ownership battle for the giant Busang gold find, and an official used the occasion to deliver a message to all mining companies: Don't worry.

Kuntoro Mangkusubroto, director-general of mining in the Mines and Energy Department, assured miners – many worried by how the Busang squabble unfolded – that Indonesia has no plans to significantly change its rules for mining. He said "contracts of work" that 68 mining firms have been waiting to receive to start production work – while authorities grappled with the Busang case – will be signed "as soon as possible."

He added that the current "contract of work" system, under which companies that produce minerals pay the government royalties and taxes, will be continued. "Once a contract of work is signed, companies are assured that the rules applying to it won't change for 30 years," Mr. Kuntoro noted.

His comments will be welcomed by mining companies. Many foreign exploration firms have watched with great concern the unfolding of the Busang saga, which was settled in the past week after the intercession of powerful businessman Mohamad "Bob" Hasan.

Miners' Concerns

Mining companies were particularly worried at one stage that Bre-X Minerals Ltd., the Canadian exploration concern that found Busang and had preliminary approvals for a contract of work, might be denied the right to sign a final contract of work due to political maneuvering by groups which wanted to get a share of the mother lode, which is located on Borneo island.

Miners have also been uneasy about the roles played at times in Busang by the children of President Suharto, and companies have been unhappy over efforts by some government officials to dictate that Bre-X enter a joint venture with Barrick Gold Corp. of Canada.

There will be some changes in future policies, Mr. Kuntoro said, citing plans for a next generation of contract of the work. It will be the seventh generation of the basic document and will promote "community development" work by mining firms, he said. But he also stressed that Indonesia's basic system will remain intact. Mr. Kuntoro's comments came at a news conference he held after Mines and Energy Minister I.B. Sudjana, who had been expected to answer questions, quickly left the meeting room after reading an announcement confirming the government's endorsement of the Busang settlement.

Mining-industry executives, who give Mr. Kuntoro high marks, said the director-general is playing a major role in helping restore investor confidence, which has been dented by the Busang case.

Tuesday's government statement on Busang said it is "important that the shareholders who have taken the risks on the exploration efforts for Busang receive treatment in accordance with valid stipulations."

A Jakarta mining executive said this conveyed a key message that any company that takes the exploration risk and finds a good mineral deposit shouldn't worry that it will be forced to let another company take over the production work.

Indonesian Role

The government's announcement had one twist that appears to pay lip service to calls for a greater Indonesian role in mining. Bre-X's Monday statement about Busang said the joint venture being formed to develop the Busang find will be 45% owned by Bre-X, 40% by Indonesian government and private interests, and 15% by Freeport McMoRan Copper & Gold Inc. of the U.S. The government announcement said Busang would be 45%-owned by Bre-X, and 55%-owned by "national" interests.

However, government officials explained that the "national" interests have agreed to naming Freeport as an operator, and to allowing the U.S. company take a 15% stake in the overall venture.

Mr. Kuntoro, confirming statements Monday by Mr. Hasan, said that Indonesia's state-owned mining companies, PT Tambang Timah and PT Aneka Tambang won't be allowed to invest in Busang during the construction stage. He said the government wants them to come in only after production begins. Mr. Kuntoro also said the government's 10% stake in Busang will be held through the Finance Ministry.

Freeport beats out Canadians to develop Busang gold mine

Wall Street Journal - February 16, 1997

Richard Borsuk, Jakarta, Indonesia – A dramatic saga over who will develop the giant Busang gold deposit on the island of Borneo is set for a surprise ending.

The closing chapter, hammered out late last week, goes like this: Barrick Gold Corp. and Placer Dome Inc., the two big Canadian miners competing to team up with Bre-X Minerals Ltd., a Calgary-based exploration firm that found the Busang deposit, will both lose out to Freeport McMoRan Copper & Gold Inc. of the U.S., people close to the situation say. Freeport came to Indonesia 30 years ago and runs a huge mine in the rugged Irian Jaya province.

Another winner will be Bre-X itself, which late last year was in danger of losing any significant part in mining the gold it discovered. And the biggest winner may be President Suharto's trusted friend Mohamad "Bob" Hasan, who not only gets a sizable role for the Suharto-linked Nusamba Group, but also emerges as the author of the Busang settlement.

There are still many details to be worked out, including whether two of Mr. Suharto's children – who have been lined up in opposing sides in the Busang battle – will end up with any shares. But the people closely monitoring Busang say the alliance of Bre-X, Freeport and Mr. Hasan will be announced soon.

They say a broad informal agreement on the alliance – in effect a memorandum of understanding – that makes Freeport the operator of Busang was signed in Jakarta Friday by Bre-X, Mr. Hasan and Freeport. The agreement outlines a 45% stake for Bre-X and a 15% holding for Freeport. The other 40% would be held by both government and private Indonesian interests to be sorted out by Mr. Hasan, a Suharto confidant and golfing partner for decades.

A $400 Million Chunk

According to one businessman close to the accord, Freeport has promised to pay $400 million of the estimated $1.6 billion cost of getting Busang into initial production. Also, he says, the New Orleans-based company has won a commitment from Chase Manhattan Bank to line up $1.2 billion to develop the find in the Indonesian province of East Kalimantan. Confirmation of the U.S. bank's role couldn't be obtained over the weekend. Bre-X and Freeport declined to comment on the agreement or Freeport's emergence in Busang.

Late last year, Barrick appeared firmly in the driver's seat for Busang development as the Indonesian government directed Bre-X to enter a joint venture giving Barrick 67.5%, Bre-X 22.5% and the Indonesian government 10%.

Last month, Placer Dome announced a merger proposal with Bre-X, and it too has campaigned hard to be operator of the Busang find. On Friday, a Placer Dome spokesman told AP-Dow Jones: "We have no knowledge of the Freeport entry into the race at all," though he acknowledged that "it's always been a possibility."

Jakarta mining executives speculated that Placer Dome might eventually emerge with some share of Busang as part of Bre-X's stake, though they believe that Barrick's chance to get any role is gone. The executives speculate that Mr. Hasan sought to keep Barrick out of Busang because he doesn't get along with Barrick Chairman Peter Munk.

Barrick and Bre-X are due to report Monday to the Indonesian government whether they have reached agreement with their local partners and between themselves on entering a joint venture. The answer will be that they have failed, industry executives said, which opens the way for Bre-X to say it is entering an alliance with Mr. Hasan and Freeport.

'Find Another Way'

On Friday, Mines and Energy Minister I.B. Sudjana took a sharply different approach to Busang than last year, when he told Bre-X to team up with Barrick. The minister said that if Barrick and Bre-X did not meet Monday's deadline for resolving differences, the Indonesian government could call an open tender or "find another way" to develop Busang.

It's Mr. Hasan who has found the other way. Mining executives say Mr. Suharto told him to work things out, and that's what he did with Freeport Chairman James R. Moffett. Mr. Hasan and the Freeport chief, known as "Jim Bob," have been friends for years. And their business links have been growing.

In recent years, a company led by Mr. Hasan has handled catering for Freeport's huge Irian Jaya gold and copper mine. In late January, an affiliate of Mr. Hasan's flagship company PT Nusantara Ampera Bakti, known as Nusamba, which is 80%-owned by foundations headed up by Mr. Suharto, bought a 4.7% share in the Freeport mine from Indonesia's Bakrie Group.

In mid-January, Mr. Hasan garnered a key role in Busang for himself and Nusamba by acquiring 50% of PT Askatindo Karya Mineral, an Indonesian company that owns 10% of Busang II, the richest of Busang's three delineated exploration zones.

"Bob Hasan has been working overtime to work out the Busang case by putting Freeport together with Bre-X," one Jakarta mining executive said. "In Indonesia, only Bob has the authority and ability to do this kind of deal."

Hurting Indonesia's Image

The arrangement began to fall into place when Mr. Moffett a week ago made his annual Islamic holiday courtesy calls on Mr. Suharto and senior officials. Some businessmen believe that Messrs. Hasan and Moffett may have been working on the deal earlier because they met the president in early December to express concern about how confusion over Indonesia's handling of Busang was hurting the country's image and worrying the mining industry. (Many mining companies have been concerned that Bre-X, the company that had legal rights to sign a contract with the Indonesian government to work Busang, was instead being ordered by authorities to team up with Barrick, a company it didn't want as a partner.)

"I think Jim-Bob was hungering for a role in Busang," one Jakarta mining executive said. "But he couldn't be direct about it, and he didn't stand a chance until Bob Hasan was in effect handling Busang."

Assuming the arrangement with Freeport proceeds, Busang will catapult the U.S. company into the ranks of the biggest gold miners in the world. Bre-X last year estimated the find at 57 million ounces of gold, which miners speculate may eventually grow to 100 million ounces or more. Busang, they believe, could turn into the largest single gold find to date.

For shareholders in New York Stock Exchange-listed Freeport McMoRan Copper & Gold, involvement in Busang would greatly increase the size of the company – and the number of chips it has put on Indonesia, home to nearly all its assets. Freeport was one of the first foreign companies to invest in Indonesia after Mr. Suharto came to power in the mid-1960s, and that was clearly one reason Indonesia is turning to it for Busang, analysts said. Mohammad Sadli, a foreign mines minister, told AP-Dow Jones Friday that Freeport "has been close to the government for a long, long time."

Details to Take Time

While last week's developments appear to settle who will develop Busang, mining executives say it may take considerable time to work out details. One potential obstacle is a lawsuit filed in a Canadian court against Bre-X by Indonesian businessman Jusuf Merukh, who has a share of Busang I and asserts he also is entitled to a share of Busang II.

One big question left to resolve is which Indonesian individuals and companies get what Busang shares. Two state-owned mining companies, listed PT Tambang Timah and unlisted PT Aneka Tambang, are hoping to get roles. Bisnis Indonesia, a Jakarta daily, on Saturday quoted Mr. Hasan as saying state companies shouldn't be in a hurry to get stakes because of costs to develop Busang are "very big." (Mr. Hasan didn't comment specifically on the Freeport arrangement, except to say that Freeport was one of several companies that could be turned to if Bre-X and Barrick didn't work out their differences by Monday. Mr. Hasan couldn't be reached over the weekend.)

Nusamba is expected to get a significant portion of the Indonesian stake. In addition to the 80% owned by Suharto-chaired foundations, Nusamba is 10%-owned by Mr. Hasan, with another 10% stake owned by Sigit Harjojudanto, the president's eldest son.

Before its moves into mining, Nusamba in October bought 10% of auto-assembler PT Astra International. Mr. Hasan is expected to be named chairman of Astra at a shareholders meeting Wednesday.

[Jay Solomon of AP-Dow Jones contributed to this article.]

Indofood buying six affiliates for 1.75t rupiah

Bloomberg - 17 February, 1997

Jakarta – PT Indofood Sukses Makmur, the largest instant noodle maker in Indonesia, is buying control of six affiliated companies for 1.75 trillion rupiah (S$1.05 billion), or about 15 times their projected 1996 profit.

The acquisition of 80 per cent stakes in each of the companies, which before tax will put about 1.4 trillion rupiah in the pockets of the Salim family, will require minority shareholder approval at a meeting scheduled for March 17. The Salim family controls both Indofood and the companies being acquired.

Indofood said the companies had consolidated net profit of 98.29 billion rupiah in the first 10 months of 1996. If that performance is annualised, they would have made 117.9 billion rupiah in 1996.

Indofood expects the new purchases will contribute about 200 billion rupiah to 1997 net profit, said Ivy Santosa, who covers the company for Deutsche Morgan Grenfell Securities in Jakarta. That is a good enough profit boost to justify the acquisition price, she said.

Among the companies to be acquired are PT Indomarco, a distributor of food products made by the Salim group, a series of plantations that produce palm oil and PT Intiboga Sejahtera, a packager of edible oils that has about 50 per cent of the brand-name market for food oils in Indonesia.

One of the companies being acquired, PT Salim Ovomas Pratama, has five wholly-owned subsidiaries.

In a preliminary prospectus on the share sale and purchases released on Saturday, Indofood said it will raise 1.25 trillion rupiah with a sale of 381.5 million new shares for 3,300 rupiah each. Each holder of four Indofood shares on March 18 will receive the right to buy one new share.

The issue price is at the low end of a 3,300 to 4,000 rupiah range the company had set earlier this month.

Environment/land disputes

Statement against the nuclear bill

Kabar Dari Pijar - February 28, 1997

We strongly demand that the House of Representatives of Indonesia will not approve the nuclear bill!

We Japanese anti-nuclear organizations have been opposing to the export of nuclear power to Indonesia. The signature collecting campaign had been conducted and more than 140,000 citizens and 80 Diet members have signed expressing their protest and anxiety toward the problem. The signatures were submitted to the President of the House of Councilors as well as the speaker the House of Representatives and we petitioned the Japanese government not to give public funds and permission to the export of nuclear power to foreign countries. At last, the committee of foreign affairs at the House of council decided not to use ODA for the export of nuclear power.

The Japanese nuclear industry is targeting the Asian countries because it is already impossible to construct new nuclear power plant in Japan.

Recently two local referendum were conducted in Japan and the results clearly showed that they never accept the construction of new nuclear power plants.

Japanese society has been already aware that nuclear power is abandoned technology and began to reject it.

From the bottom of our hearts, we demand that Indonesia will give up the construction of nuclear power plant. Nuclear power is an abandoned technolog Nuclear power has no future. In most of the advanced countries, it is widel believed that nuclear power create only the environmental distraction and can be a solution for the energy problem. Again, nuclear power is abandoned and reckless technology. If you go ahead with the construction of nuclear power plants in your country, it is only the nuclear industry and some people of po who get benefit from the project.

For the future of nuclear-free and peaceful Asia, please make decision not to possess nuclear power. Please don*t approve the controversial nuclear bill.

It is only nuclear -free countries that can create prosperous, affluent and peaceful future.

February 25, 1997

Campaign to Halt the export of nuclear power plants
Citizens* nuclear information center
No Nukes Asia Forum Japan
Muria Anti-nuclear Group of Japan

Less that 15% present. we cannot lie to the people

News from Pijar - 27 February, 1997

PDI fraction member Laksmiari Priyonggo interrupted the Minister of Research and Technology BJ Habibie during constitutional meeting at the National Parliament saying: "Although the speaker states that 317 people are present, in fact there are only 75 members of the DPR here or less than 15% of a total of 500 members. We cannot lie to the people". She asked that the meeting be postponed. When the majority did not agree, she chose to "walk out" saying to journalists: "I pity the one entrusted with the mandate who must later sight a law which in reality is not supported by the people".

Activists then took her to the entrance of the parliament to meet other anti-nuclear demonstrators outside. Anti-nuclear banners and posters were unfurled. The chair of the PDI fraction, Fatimah Achmad [Suryadi's camp - JB] apologized for "her actions" to Habibie who said: "Its' okay, that is 'dynamics'".

[Original source unknown - JB]

'Walk out' at nuclear constitutional planning meeting

Media Indonesia - February 27, 1997

Jakarta – The Constitutional Meeting at the National Parliament (DPR), intending to pass in to law draft laws on nuclear power yesterday and was attended by 75 people, was coloured interruptions and a "walk out" by PDI (Indonesian Democratic Party) fraction member Laksmiari Priyonggo along with anti-nuclear demonstrators.

When the Minister for Research and Technology BJ Habibie arrived at around 9.30am he was greeted by anti-nuclear protesters. As he got out of his car, around 50 demonstrators unfurled poster, one of which read" "We reject the Nuclear Power Legislation. God forgive them for they do not know what they are doing with nuclear [power]".

Habibie guarded by a Security Officer was able to get away from the demonstrators and the Officer blocked the demonstrators from entering. The Minister of Justice, Oetojo Oesman after answering questions on the laws left by the rear.

Herman Widyananda and Amril Hamidy from the ABRI fraction said they hoped that the government would "socialise" the laws so they could be understood by society. Muhammad Buang from the PPP (United Development Party" said: "The PPP fraction asks for attention on this issue, because through Batan already publicised its enthusiasm to build a nuclear power plant in the Muria peninsular, Central Java.

Habibie, was then given an opportunity to answer these and a number of other concerns. After the meeting, he held a press conference in which he explained that the nuclear power option was the last alternative claiming that "we have not yet decided the Muria nuclear power plant". He also left by the rear door.

[Abridged translation from Media Indonesia - JB]

Talk of Indonesian nuclear plant 'premature'

Straits Times - February 25, 1997

Susan Sim, Jakarta – Indonesia's Environment Minister has described talk of a nuclear power plant in the country as premature as yet another local non-government organisation attacked the nuclear energy Bill due to be passed by Parliament tomorrow. Commenting on criticisms that the Bill was designed to legitimise the building of a nuclear power facility despite objections from environmental groups and local residents, Mr Sarwono Kusumaatmadja reaffirmed that "going nuclear will be the government's last option".

Although a feasibility study for a proposed plant site in the Muria peninsula in central Java had been completed, the project "still has a long way to go", The Jakarta Post quoted him as saying yesterday. The government, he added, could not build a plant until it had considered the country's environmental, energy and health laws.

The developer would also have to conduct an environmental impact analysis under the law, said the minister, who is also head of the Environment Impact Management Agency (Bapedal).

Officials of the National Atomic Agency (Batan) had earlier said that a 1,800-megawatt nuclear power facility would start operating in 2003 and that it would be built at the foot of the dormant Muria volcano in central Java's Jepara district.

But Mr Sarwono dismissed their comments as "typical of incumbent officials who have personal interests".

"The nuclear energy controversy is premature since the government has not yet decided whether to go ahead with the plan."

He added: "Just take the word of State Minister of Research and Technology Habibie that going nuclear will be the government's last option."

Analysts told The Straits Times the decision on whether to build a plant would be Dr B. J. Habibie's call.

It was Dr Habibie who introduced the Bill last year. And he was very likely to push for the Muria plant, a Golkar official said, citing the request of the minister to the party's central board to name a top Batan official, Mr Asmedi Suripto, as the party's candidate for the Jepara district elections in May.

If elected, he is expected to lobby for support for the plant among local residents, most of whom had voiced objections. The latest criticism of the plant came on Sunday from the Indonesian Consumers Agency.

According to a Bloomberg report from Darwin, where a uranium conference is being held, a deputy-director of Batan, Dr Azhar Djaloeis, said yesterday that a decision on whether to go ahead with the nuclear plant might come as early as this year.

Jakarta panel supports n-energy bill

Straits Times - February 21, 1997

Jakarta – A special Indonesian parliamentary commission had recommended unanimously the passing of a Bill which would allow the government to control the use of nuclear energy, reports said here yesterday. The 87-strong commission, led by legislator Andi Mattalata, ended four months of deliberations with an approval of the draft Bill on Wednesday and Parliament was due to make a final decision about it on February 26 after a debate, said the Antara news agency.

The draft Bill is widely expected to be passed into a law on that day, said the Kompas daily.

Parliamentary debates have added five more chapters to the government's proposed 43 chapters, including two requiring the government to consult parliament before deciding on building a commercial nuclear-power plant and the location of nuclear-waste dumping, said Antara.

The Bill provides for an executive body appointed by the President which would oversee the research and development and exploration and exploitation of the minerals.

The body is also authorised to co-operate with state-owned, private or foreign companies in the execution of its duties.

Indonesia is considering proposals for an 1,800 megawatt nuclear plant on the slopes of the Muria volcano on the northern coast of densely-populated Central Java.

It would be the first of a series of 12 nuclear-power plants in Central Java with a total power-generating capacity of 7,000 megawatts.

The Canadian, Japanese and United States governments and nuclear companies are rallying to offer Indonesia nuclear technology for the plants.

But legislators, environmentalists and academics have opposed the project, claiming the decision about whether to build a nuclear-power plant should rest with the people. – AFP.

Disaster fears as Indonesia clears way for 12 nuclear plants

Sydney Morning Herald - February 27, 1997

Louise Williams, Jakarta – The Indonesian Parliament has passed a controversial nuclear energy bill, clearing the way for the construction of up to 12 nuclear power plants.

The first nuclear reactor is due to be built alongside the dormant Muria volcano in Java.

Opponents of the nuclear program have warned of a potential disaster because of the high level of volcanic and earthquake activity throughout Indonesia.

A computer simulation of radioactive fallout from the Muria site by the Australian National University last year showed that radioactive gas would reach Australia within a few days of an accident, particularly during summer wind patterns.

Scores of anti-nuclear activists demonstrated outside the Indonesian Parliament yesterday as the bill was passed, rejecting assurances by the Science and Technology Minister, Dr Jusuf Habibie, that nuclear power was just one of Indonesia's future energy options.

Speaking in favour of the bill, Dr Habibie said: "We have to prepare the umbrella before the rain. We have found other energy sources such as geothermal, so I'll do my best not to use this nuclear plan."

However, many energy industry analysts believe the 12-site reactor program is inevitable given Indonesia's rapid industrial growth and consequent power crisis.

Government studies have concluded that demand will outstrip the generating capacity of the current grid in less than a decade, known oil supplies will be exhausted in 20 years, and known gas deposits in 38 years.

The National Atomic Energy Agency has said that work can begin before 2000 on the first 600mW plant for the Muria site.

The agency has also dismissed any danger to Australia. It says a cloud of radioactive gas would be impossible because of a five-barrier sealing system which would contain all contamination in an accident.

The Howard Government has indicated it would like to supply uranium to Indonesia. But an Indonesian official said decisions on buying nuclear fuel would depend on politics, and that more uranium suppliers were entering the market, including members of the former Soviet Union, South Africa, Namibia, Nigeria and Canada.

But he added: "Right now we have a good neighbour policy with Australia, so it would be sensible to buy from the nearest country."

Mining concession comes under fire

Jakarta Post - 17 February, 1997

Jakarta – The Indonesian Center for Environmental Law (ICEL) attacked the government Saturday for allowing a coal mining firm to control 100,000 hectares of a Kalimantan national park.

ICEL executive director Mas Achrnad [this should read Achmed - JB] Santosa charged that the government had, once again, violated the laws it made to protect forests and the natural riches therein.

Santosa said the 1989 decree jointly issued by the minister of mines and energy and the minister of forestry strictly banned commercial mining activities in protected forests.

"The exceptions are noncommercial activities, such as geological surveys conducted in efforts to learn more about potential natural disasters in a particular forested area, " he told The Jakarta Post.

The permit for Pl Dwipangga Sakti Prima to exploit 100,000 hectares of the 200,000 hectare Kutai National Park in East Kalimantan has reportedly been issued by the mines and energy ministry.

The park is one of the world's few remaining tropical rain forests, often dubbed the "lungs of the world." Since it was proclaimed a national park in 1982, the park has lost about 50,000 hectares, mainly due to human encroachment.

The controversial plan has also met strong objections from local environmentalists and UNESCO, which uses the protected forest for research activities.

Santosa said under 1985 Law No. 5 on forest protection, Pr Dwipangga Sakti Prima's manager was liable to a 10-year imprisonment teen. The public officials that issued the permit are liable to legal action through the State Administrative Court by individuals or legal bodies affected by the policy.

He said the Kutai Park affair was not the first in which the government breached rules on protected forests.

In another instance, he said, a permit for a mining activity was issued by the wrong ministry without approval from the office of the state ministry for environment and the Indonesian Institute of Sciences as required by law.

"The case in point is the permit issued for a mining company to exploit minerals in the Lorentz protected forest, Irian Jaya," he said, adding the permit was issued by the mines and energy minister. ICEL called on the government to improve compliance with the laws on mining activities.

Indonesia has three laws concerning mining in protected areas. First, the Government Decree No. 28 of 1985 on protection of forests. Second, the joint Ministerial Decrees of the mines and energy minister and minister of forestry issued in 1989 on Mining activities in forested areas. Third, the 1991 Joint Ministerial Decree issued by the same ministries on application procedures for mining permits. (pan)

Elections

Illegal to encourage poll boycott: Indonesian general

Agence France Presse - February 26, 1997

Jakarta – A top Indonesian military officer has warned that encouraging people not to vote was against the law, following a recent statement by the Catholic Church which told its followers it was not a sin to refuse to vote in this year's general election.

The pre-Easter letter by the Indonesian Bishops' Conference headed by Cardinal Julius Darmaatmaja, read out in many Catholic churches last week, said that "Catholics should really feel free in expressing their attitude" in the general election.

"If you really do not feel represented and are sure with all your heart that your aspirations are not channelled, we can understand that you voice your responsibility and freedom by not voting, and you are not sinning if you do not vote," the statement said.

Lieutenant-General Syarwan Hamid, head of the armed forces' socio-political affairs division, when asked about the Church's statement, said that "to encourage people not to vote is against the law", according to the Republika daily on Monday.

Indonesia's three official parties – the United Development Party (PPP), the Indonesian Democracy Party (PDI) and the ruling Golkar party – will compete in the May 1997 election for 425 parliamentary seats. Golkar has won every election since 1971.

The Church's statement also said that "if you are under intense pressure" to vote, "you may follow those orders rather than suffer the consequences".

Muslim party considers poll boycott

Agence France Presse - February 28, 1997

Jakarta – Indonesia's Muslim-led United Development Party (PPP) is considering a boycott of the upcoming campaign for 29 May elections in response to tough restrictions on political campaigning.

A party cadre said on Tuesday seven PPP chapters in Central Java had sent a letter to the party's executive board recommending a boycott of official campaigning from April to late May.

A letter suggesting the boycott ``has been sent to the PPP executive board", Zainal Ma'arif, party secretary for the Solo chapter, said.

He said the letter was also signed by PPP chapters in Sragen, Wonogiri, Karanganyar, Boyolali, Klaten and Sukoharjo, all districts of Central Java.

``If the (campaign) regulations that disadvantage the parties are retained, we just do not see the point in us taking part in the election campaign," he said.

He said the letter referred to a package of five new regulations governing campaigning which did not reflect ``honest and just" elections.

The PPP holds 62 seats in parliament. The party, along with the ruling Golkar party and the Indonesian Democracy Party (PDI), will compete for 425 seats in the 500-seat parliament in the May elections.

The remaining 75 seats go to members from the armed forces who are not allowed to vote in the elections.

Under the new campaigning rules, political parties are given a strict campaign schedule that could require party executives to travel to distant destinations throughout the Indonesian archipelago in a single day.

Parties also must have campaign speeches they plan to broadcast checked by the government and must register any vehicles used in campaign rallies with local police.

Jakarta has also ruled that the three recognised political parties _ the ruling Golkar party, PPP and the PDI _ will be prohibited from organising street rallies during the campaign.

Catholics told refusal to vote in elections is not a sin

Agence France Presse - March 1, 1997

Jakarta – In a rare political statement the country's Catholic Church has told its faithful that it would not be a sin to refuse to vote in this year's general election.

But a senior Indonesian military officer warned on Monday that encouraging people not to vote was against the law.

The pre-Easter apostolic letter by the Indonesian Bishops' Conference headed by Cardinal Julius Darmaatmaja, read out in many Catholic churches last week, said that ``the Catholics should really feel free in expressing their attitude in the general election".

``If you really do not feel represented and are sure with all your heart that your aspirations are not channelled, we can understand that you voice your responsibility and freedom by not voting, and you are not sinning if you do not vote," the statement said.

It is rare for Indonesia's Catholic Church to give statements on political matters.

Indonesia is the world's largest Muslim-populated nation, with almost 90 per cent of its 200 million people following Islam. About 3 per cent of the population are Catholics.

When Lieutenant-General Syarwan Hamid was asked about the Catholic Church's statement on not voting, he said that ``to encourage people not to vote is against the law", the Republika daily newspaper reported.

Gen Hamid emphasised the importance of voting and said he ``appreciate(s) all parties which... encourage as many people as possible to vote".

Indonesia's three official parties _ the United Development Party (PPP), the Indonesian Democracy Party (PDI) and the ruling Golkar party _ will compete in May's elections for 425 parliamentary seats. Golkar has won every election since 1971.

The authorities have been publicly criticised for calling on all civil servants, about six million people, to vote for Golkar. It is also widely known that civil servants' spouses and children are unofficially required to vote for Golkar in polls.

The Catholic Church's statement said that ``if you are under intense pressure (to vote), you may follow those orders rather than suffer the consequences".

Lawyer Trimulya Suryadi said on Monday that while it was true that the election laws prohibited people from encouraging others not to vote, the church's statement could not be ``encouragement".

``It is merely giving information and an explanation to Catholics," he said.

The church also expressed its concern in the same document for the future of religious freedom in Indonesia. In recent months mobs of Muslims have gone on the rampage against Christians.

PPP meeting discusses election boycott

Kompas - March 1, 1997

Jakarta – The chair of the United Develop Party (PPP), Ismail Hasan Matareum has said that the National Leadership meeting of the PPP has placed on the agenda, recommendations from a number of Regional Councils of the PPP (DPW) a plan to boycott the coming 1997 General Election campaign. This issue arose because many of the [new -JB] regulations controlling the election are considered to cause difficulties for the PPP as one of the political parties.

"Certainly there have been recommendations from a number of DPWs which have included a plan to boycott the election campaign. There has been no decision on this issue yet, we are waiting for the outcome of this meeting", said Buya (Matareum's familiar name), answering questions from journalist on 28 February in Jakarta after the opening of the meeting which will continue until Sunday, tomorrow.

The following is an interview with Buya:

Journalist (J): What will be the attitude of the PPP national leadership if the government decides not to change/review the election campaign regulations, will PPP join a boycott?

Buya (B): We have a number of alternatives, including for example not joining a campaign in a form which is considered by PPP to be damaging [to us], but other things could be followed. But we have not yet decided on that because it is only just begun to be discussed by our compatriots in the regions.

W: What about if there are DPWs which decide not to join the campaign?

B: No. It must be agreed jointly in this meeting first. Don't take individual steps because we are a single party.

W: How about the issue of a number of DPWs recommending a boycott of the election campaign?

B: That has certainly been suggested and is one the things being discussed in this meeting including running the campaign, campaign regulations and campaign management.

W: Is the PPP national leadership courageous enough to take a decision to boycott the campaign if there is such a recommendation.

B: Yeh, if they [the national meeting] take that decision that's the PPP. That is the issue. But we have not yet taken it [the decision - JB] because we have only just begun to discuss the issue. I can preempt the meeting.

W: Politically, will the government change the regulations?

B: Even if they don't want to politically, technically they can do so. But not to the point, for example, [the government] feels it has lost face. Perhaps it is possible to make notes so to carry out what forms a obstacle.

W: But how far will you struggle for this desire?

B: We will ask for a meeting with the Minister of Internal Affairs and the head of the police but that will only be done after we have held this meeting. (ama)

[This a full, not abridged translation from Kompas - JB]

Encouraging vote abstention illegal: Indonesian general

Kyodo – February 25, 1997

Jakarta – A top Indonesian military official has said that encouraging people not to vote in the upcoming general election is against the law, a local newspaper reported Tuesday.

The English-language Indonesia Times quoted Lt. Gen. Syarwan Hamid, chief of sociopolitical affairs at the Indonesian Armed Forces, as saying that he appreciates any efforts to encourage as many people as possible to vote.

However, he stressed that any attempt "to encourage people not to vote is against the law," according to the newspaper, which is controlled by the Indonesian Muslim Intellectuals Association chaired by Minister of Research and Technology Bacharuddin Jusuf Habibie.

Syarwan's comments were reported following the release of a pre-Easter apostolic letter by the Indonesian Bishops' Conference, which tells Catholic believers that it is not a sin to refuse to vote in the May 29 general election.

"The Catholics should really feel free in expressing their attitude in the general election," said the statement, which was signed by Indonesian Cardinal Mgr. Julius Darmaatmadja and was read out in all Catholic churches in Indonesia two weeks ago.

To Indonesians who do not feel they are being represented, the statement said, "We can understand that you voice your responsibility and freedom by not voting. You are not sinning if you don't vote."

The statement, read on the Ash Wednesday mass Feb. 12, which opened a 40-day period of fasting for Catholics, also indicated that a number of riots in Indonesia have made the Catholic community in the country feel unsafe.

"We question whether in the future the freedom of religious activities, which we enjoy now, will still be ours," it said.

Ethnic- and religion-related riots have recently broken out in Indonesia, with Christians and people of Chinese descent becoming the target of rampages or killings, while some churches and Buddhist and Chinese temples were torched.

Colour war rages as political rivals repeatedly paint the town

Agence France Presse - February 20, 1997

Jakarta – A war of political colours in a Central Java town took another turn this week after supporters of an ousted opposition leader painted the town square in the colours of the national flag.

The "colour war" in Solo, about 650 kilometres southeast of Jakarta, has led to pavements, trees, lampposts and fences in the town's square being repainted three times since late last year, the Jakarta Post reported.

Sympathisers of ousted opposition leader Megawati Sukarnoputri took to their paint pots on Monday and Tuesday and covered the yellow paint - applied to the public facilities by supporters of the ruling Golkar party in mid-January - with the red-and-white of the country's flag.

"Red and white symbolise unity. We don't want to see the nation divided," Megawati loyalist Mustofa Budiwaluyo said.

Ms Megawati, a daughter of founding president Sukarno, was removed as Indonesian Democracy Party chairman last June by a government-backed party faction, but remains a popular figure among party members.

Last year, Solo's mayor ordered the square to be painted in the Golkar party's yellow. This angered the local chapter of the Muslim-led United Development Party, who changed the colour to white in January, saying it was a neutral colour not linked to any political entity.

Golkar supporters then repainted everything yellow a few weeks later and an angry Solo mayor threatened to sue the Muslim party for changing the colour of the square without the approval of city authorities.

Central Java Governor Suwardi, who came to the defence of Solo's mayor, was widely ridiculed when he said yellow was not just the colour of Golkar but also that of Central Java's mascot bird.

Meanwhile, the local Muslim party chapter has said it planned to sue Mr Suwardi for ignoring the people's aspirations in connection with the painting of the square.

Solo chapter chairman Mudrik Sangudi said his organisation was conducting a poll to see whether the population agreed with the party's plan to sue the Governor.

Ms Megawati will answer a police summons today as a witness in a probe into an alleged illegal meeting at her house, one of her lawyers, Ahmad Dilapanga, said.

Golkar accepts regulations for 1997 general elections campaign

Kompas - 17 February, 1997

Jakarta – The Secretary General of the Central Directing Board of the Functional Group, Ary Mardjono, affirmed that the Functional Group can accept the three regulations regarding the implementation guidance for the 1997 general elections, including those issued by the Minister of Home Affairs, the Minister of Information, as well as the State Police Headquarters.

"The Functional Group can accept those three regulations. There is no problem, because all three regulations refer to two previous legislative products, namely a Presidential Decree and a Government Regulation," said Mardjono at the Functional Group Central Directing Board offices in Jakarta, on Sunday (16/2). When he spoke, Mardjono was sided by the Chairman of the Functional Group Central Directing Board's Department of Information, Publication and Mass Media, Sofyan Lubis.

The three regulations in question are Letter of Decision of the Minister of Home Affairs/Chairman of the General Elections Institute No.7/1997 concerning implementation guidance for the general elections campaign, Letter of Decision of the Minister of Information No.012/Kep/Menpen/1997 regarding utilization of radio and television broadcasts in general elections campaign activities, and Field Operations Guidance of the State Police Head Number Juklap/01/I/1997 concerning the granting of campaign permits.

According to Mardjono, these three regulations are the detailed realization of the Presidential Decree and Government Regulation. He added that the three regulatory products are intended to enhance the quality of the general elections. "After the Central Directing Board of the Functional Group studied them, the three regulations do indeed aim at general elections of a better quality," said Mardjono.

On that occasion, the Secretary General of the Central Directing Board of the Functional Group conveyed five statements of position, one of those being that the Central Directing Board of the Functional Group evaluates, that the subject matter of the general elections campaigns of the three general elections participant organizations, represent their respective programs in relation to national development. "In the previous general elections, unnecessary derogatory words were often heard."

Another position states that with the determination of six campaign regions, the Central Directing Board of the Functional Group evaluates that an advance has been made which was absent in the previous general elections. According to the Central Directing Board, the division into regions is intended to avoid the occurrence of physical clashes between the respective participating organizations in the elections. "Now there will be no disturbing of one participant organization's campaign in progress by another participant organization," he said.

The Functional Group Central Directing Board also supports a dialogue-style campaign, which it evaluates as an advance, because in the previous elections there were only monologue campaigns which took the form of mass meetings. Campaigns through television and radio (TVRI/RRI) were also evaluated by the Functional Group Central Directing Board as a quality enhancement, because these would be transmitted to all points of the country in their entirety without cutting.

Another position of the Central Directing Board concerned the absence of parades, which was evaluated as a meaningful advance. "Parades act more to the detriment of the public or the little people. I don't need to put forward the excesses resulting from public parades," said Mardjono.

Must be obeyed

As said by Ary Mardjono, the Functional Group Central Directing Board states that it agrees to those three regulations, and that these are decisions which must be obeyed by the three participating organizations in the general elections, because these are binding decisions. "The Central Directing Board of the Functional Group will implement the three regulations consistently. Hopefully all three elections participant organizations will be able to implement them," hoped Mardjono.

Asked about objections by another participant organization (PPP, Ed.) to the appointment of a program guide who has to be a member of the Indonesian Elections Committee (PPI), and the campaign speech draft which has to be scrutinized, Mardjono called that a good step. According to him, a program guide is needed with certain criteria. While regarding the campaign speech draft, scrutiny does not mean that it has to be studied word for word like a cinetron draft, but just the core matter framework.

Is there a possibility that when another general elections participant organization is campaigning in a region, the Functional Group suddenly arranges a meeting with its cadres? asked journalists. Mardjono affirmed that the meetings with cadres which are commonly held by the General Chairman of the Central Directing Board of the Functional Group. H Harmoko, have been finalized. "So there will be no Functional Group cadres meetings when other general elections participant organizations are campaigning," promised Mardjono.

On that occasion Mardjono also disclosed the readiness of the Functional Group Central Directing Board to welcome the implementation of the 1997 General Elections. He mentioned that the Central Directing Board is already at the stage of carrying out the implementation guidance of the Functional Group's campaign, and preparing the campaign director, preparing the campaign subject matter concerning the programs which are adapted to each respective region, and orientation of the campaign managers who will organize all requirements for the implementation of the campaign. "The Functional Group is moving towards optimum readiness," emphasized Mardjono. (*)

PPP sees possibility of setback implementing 1997 elections

Kompas - 16 February, 1997

Jakarta – The Secretary General of the Central Leading Board of the United Development Party (DPP PPP) Tosari Widjaya clarified, that the DPP PPP sees the possibility of a setback in the implementation of the General Elections (Pemilu) of 1997. This is caused by ever increasing restrictions which briddle freedom, particularly in implementing Pemilu campaigns.

Tosari disclosed this after the internal meeting of the DPP PPP on Saturday (15/2) at the DPP PPP office in Jakarta. Present were also the General Chairman of the DPP PPP Ismail Hasan Metareum and the Chairmen of the DPP PPP.

Taking as an example the Decree (SK) of the Minister of Information No. 012/Kep/Mempen/1997 especially concerning the stipulation for the moderator of the agenda and the stipulation that only the chairman of the party may give a monologue speech for the radio and television, Tosari considers that this regulation can remove the independence and freedom to stipulate who shall be assigned.

"If such a regulation is stipulated, it means that we have lost our independence to stipulate," he said.

He clarified that a campaign in a monologue form will at least be performed two times and conveyed by the party's general chairman. It may not be done if it is not the party's general chairman except if the hindred person can be replaced with a written mandate.

"Is not this also removing the freedom. Actually it must just be left to the DPP. Later on the DPP can assign the Secretary General, the DPP Chairman, the Vice Secretary General or even a Moslem scholar who we will give a recommendation," he said.

Another restriction concerns the text of the campaigning speech. He said that the DPP PPP had no objection if said text had to be submitted to the screening committee as long as the substance which they wanted to convey was not lost.

"But if the screening committee just starts cutting so that the spirit and information which we want to convey is lost, is not that no campaign anymore," said Tosari.

He added, if the text concerned a basic principle which we want to convey, this is no problem. But if the questions and answers must be arranged, the dynamics of a dialogue are clearly lost while what is expected is exactly a dialogue. "If from the side of texts there are restrictions and the content of the recording is also cut, the dialogue dynamics for political education will be lost," Tosari stressed.

Conveyed to minister

Tosari stated, what became the focus of the results of the DPP PPP internal meeting will soonest be conveyed to the Minister of Home Affairs, including the objections of the DPP PPP regarding the Decree of the Minister of Information which regulates the coverage and directives for the field (juklap) from the Police Headquarters No. Pol. Juklap/01/I/1997 particularly concerning the use of vehicles for campaigning participants.

"As far as I remember there was formerly no regulation which stipulated that the vehicles had to be registered. Now it must even be registered seven days before implementing the campaign," he said.

The DPP PPP is according to Tosari not in possession of vehicles to transport the masses, even for the interest of the campaigns they often have to look for passing vehicles according to him, a moment before implementing the campaign, so that it is impossible to register it one week before.

"The impression is that we shall find difficulties to meet this stipulation. If that is not fulfilled, may there be no campaign? Is this what is called a Pemilu with quality?" Tosari demanded.

The DPP PPP besides sending a letter to the General Elections Institute (LPU) will also send a delegation to discuss the difficulties which probably will be faced with the intention to obtain clarity and at the same time ease in order that no new problems will exactly arise. "The community starts to become critical in political problems, don't they," he said.

Another restriction is that a campaigner may not criticize. According to Tosari this must also be clear, what kind of critic is not allowed. "If the policy of the Regional Government proves to be wrong for instance, may that not be criticized? If a campaigner is forbidden to speak, will it not cause unrest in the community?"

Tosari asked while reminding that this must be anticipated that no anarchy will arise by a group of the society which intentionally wants to provoke.

He clarified that the DPP PPP never thought that PPP would win, but how can the people follow the Pemilu in a democratic way without having difficulties in participating in the Pemilu.

"That has become our concern. That at one time PPP will win, that is our hope. But if PPP wins with the people black and blue, that is not our hope," Tosari stressed.

He hoped that the mass media could cover objectively and in a balanced way the developments of the campaigns. According to Tosari the press should be given the chance to release the results of various voting places (TPS), not the result of the figures from the computer, because the press is according to him one of the channels of the aspirations of the community.

"You (reporters, Red.) may next not write the results from the TPS. The DPP PPP expects that the press is now allowed to cover it to show the real quality of the Pemilu.(*)

Soerjadi - Campaigning rules for the general elections is setback

Kompas - 18 February, 1997

Bogor – The General Chairman of the Central Directing Board of the Indonesian Democratic Party (DPP PDI) Soerjadi clarified that the implementation of the General Elections (Pemilu) 1997 campaign would experience a setback if there are too many rules which will be beneficial for one of the OPP (pemilu participating organization). Because, with causing an advantage for one of the OPP's it meant that a disadvantage is caused for other OPP's.

And a rule which is considered as a disadvantage, is among others about the total of campaign days, the regulation of the moderator, and the prior screening of the campaign text.

The clarification was disclosed after opening the PDI leadership meeting (Rapim) on Monday (17/2) at Wisma DPR Kopo, Bogor. Soerjadi also mentioned the total of campaign days as an example.

According to Soerjadi, with the new regulation, the number of campaign days added from 25 days to become 27 days. But because in the new regulation the three OPP were given the same allotment, in practice each OPP would only get a third of 27 days. "This regulation clearly harms the PDI," Soerjadi stressed.

He described that in the Pemilu 1971 the campaign lasted 3 months, then was decreased to 1.5 months, then decreased to 25 days and in the coming Pemilu 1997 practically only nine days, "Will there in the Pemilu after the five coming years be no campaign? Is there a country in this world which held general elections without campaign?" he demanded.

Soerjadi saw that in the present system only the rich OPP would be advantaged. But as it has become an official regulation, he said, there is no other choice for the PDI but to implement it.

"We shall obey the regulation and attempt to the utmost to comply with the new stipulation," he said.

Regarding the text of the speeches that had to be screened, Ssoerjadi considered it as a setback. "How will people campaign? Their text must be screened by the powers. This is funy and makes no sense," said Soerjadi while supposing that this stipulation was like letting loose the head but still holding the tail.

"Trust must actually fully be given. I am not convinced that there is an OPP which wants to call to rebel or an OPP which in its campaign wants to destroy the system, I am not convinced," he said while adding that the many binding regulations would decrease the weight of democracy.

Tight guard

The PDI leadership meeting which was opened by the General Chairman of the Central Directing Board of the Indonesian Democratic Party was coloured by the tight guard of the security apparature. Two armoured cars were parked at the premises of Wisma DPR while the road to the Wisma was blocked by barbed wire.

Anti riot units of the Mobile Brigade complete with their shield and other parapehernalia guarded at the end of the road. The anti riot units even already guarded at the gate of the Ciawi toll road, or 20 km from the location of the leadership meeting (Rapim).

Meanwhile PDI task forces checked strictly the journalists who wanted to cover the Rapim which was attended by DPP PDI functionaries from the Medan Congress, eventhough the reporters came with invitations in form of a fax and identity card. "Invitations without original stamps are not valid," a task force member said.

When the tight guarding was confirmed with the General Chairman of the DPP PDI Soerjadi, so that there had to be two armoured cars at the premises and the "harsh" attitude of the PDI task force, he was not willing to reply.

"It is as if you (reporters - Red) don't know," said Soerjadi after opening the Rapim.

Violating decision

Meanwhile the Central Advisory Board (Deperpu) of the PDI of the Medan Congress stated that the 11 legislative candidates for the DPR (House of Representatives) of the DPP PDI Medan Congress, including Soerjadi and Fatimah Achmad, could not be nominated as legislative candidates anymore.

They fell under the stipulation of SK DPP PDI No 059/DPP/KPTS/IX/1986 which limitted the duration of a DPR function of PDI for two successive years while they could be reelected after a grace period of one year. The restriction was effective as of the Pemilu 1997.

The Deperpu letter dated 15 February 1997 addressed to the DPP PDI was signed by the Deperpu PDI Chairman Hardjanto Soemodisatro and IInd Secretary MB Samosir of which a copy was sent to various mass media. Said letter was a follow up of the one of December about the Provisory Candidate Lists (DCS) of the Pemilu. According to the Deperpu PDI, both were not answered by the DPP PDI.

"With this stipulation PDI members who were DPR RI members in 1988 and 1992 can only be reelected in 2002. At the Pemilu 1997 the concerned person cannot be reelected as legislative candidate (caleg)," thus the Deperpu PDI.

The eleven caleg are Soerjadi, Hj Fatimah Achmad, Anwar Datuk, M Syafei Ali Gumay, Popo Sonandar Haroen, Djufri, Subagyo, Benidikt Nahon Marbun, Dimmy Haryanto, Budi Harjono and Markus Wauran.

The Deperpu PDI Chairman reminded that in determining the caleg the DPP PDI should consequently implement the two decisions for limitting the office period at the DPR in order that there would be no legal flaw in the Pemilu of PDI 1997.

After opening the Rapim Soerjadi said that in the Deperpu were regulations and mechanisms. He saw that the mechanism was not implemented yet. "Regarding said SK DPP PDI, you have maybe not yet read said SK. It has no connection with nomination but with the assignement," Soerjadi said.

He clarified that there were two rules in the SK. First that who already two times was member of the House could not become a House member anymore, but not that he could not be nominated.

Second, the chairman of the party may not become a DPR member which is above it, namely a Branch chairman may not become a member of the Ist Level Regional DPR nor National DPR and the Chairman of the DPD may not become a DPR member. "So there is no prohibition on nomination," said Soerjadi.

Human rights

PRD cadres raided and arrested

Info Pembebasan - Chronology

[The original chronology covered the dates March 24-26 1997 and it was assumed that the writer meant February not March. Some details in the original text were also unclear - JB]

- February 24, 11 pm. A number of youths residing at a boarding house on Pahlawan Road in Bandung stated their objections to the presence of Yudha (Unpas university student Bandung, the head of SMID/PRD Bandung) who they considered had influened a YPKP Bandung studnent, Irwan to become involved in political activities which according to them are always discrediting the government. This was on the grounds that Yudha often photocopied and sold the magazine Suara Independen. That evening Yudha was able to calm the situation down after a short discussion with those involved.

- February 25, between 2 and 3pm, one of those who had complained about Yudha previously, Harhan an STIE banking student was seen having a serious discussion with the boarding house owner while holding the most recent issue of Independen. At 4pm Irwan tried to explain the issue to Harhan and asked about the discussion with the boarding house owner who after being investigated, worked at the Jabar Social and Political Affairs office. Since that afternoon Harhan had been avoiding Irwan and Yudha.

- February 26, at 10am Irwan was called by the boarding house owner who intimidate him who said that Yudha was being looked for [by the authorities] because of his activities in the PRD. At 1.30pm Irwan met with Yudha and to discuss the issue,

- 7.50pm, Yudha, Inda (a Unpas university student) and Indra (a STEMIK student) left for Pahlawan street. When they entered Yudha's house they saw two cars with a number of people in them parked in front of Yudha's house, who quickly hid. Irwan was not home and end they were met by a number of Irwan's friend from campus who they didn't know well and appeared frightened. They decided to go quickly home. While traveling Yudha phoned the boarding house and was warned by Ikra (YPKP student) to approach the house.

Ikra was informed him that between 6 and 6.30pm a raid occurred and a number of Yudha's possessions were seized including:

1. A copy of Suara Independen
2. To copies of the magazine Pembebasan (#1 & 2)
3. 7,000 leaflets demanding an election boycott, justice for the people and a change of president
4. SMID and Oposisi Indonesia stickers
5. A number of pieces of clothing (a KIPP Lampung T-Shirt)

- At 9pm, after leaving Pahlawan, Yudha, Indah and Ikra hid in a house facing the boarding house. At 9.30pm they saw vehicles parked in the vicinity of the boarding house. A number of people got out of the cars and hid to watch the boarding house. The situation had not changed by 4.30am.

- Around 3am, Yudha's pager received a message that "Irwan had had an accident and hopped it was not critical - Sister Anita" which was suspected to be an attempt by the authorities to arrest Yudha.

- At the time of writing the chronology, the fortunes of Yudha, Irwan, Ikra and Indah are unknown. A number of eye witnesses saw Irwan being interrogated by security personnel.

Labour issues

Niketown – Just don't do it

San Francisco Chronicle - February 20, 1997

[Following is an op-ed column from the February 20, 1997 San Francisco Chronicle. Accompanying it was a photo of Niketown, with a caption reading "The glitzy Niketown store in Union Square gives no hint of the sordid conditions under which Indonesians and others produce its wares." The article is a co-founder of Global Exchange, a San Francisco-based human rights group that recently led a delegation to Indonesia to meet with Nike workers.]

Kevin Danaher – As you travel around the San Francisco Bay Area, it is hard to avoid the many ads promoting the new Nike store that is opening at Union Square. How ironic that Union Square (as in trade "union") should be the home of a store owned by a company that has grown fat off the labor of workers in countries, such as Indonesia, China and Vietnam, where free trade unions are prohibited.

Thanks to billions of dollars in advertising, the Nike symbol and Nike products are known throughout the world. Celebrities such as Michael Jordan, Andre Agassi and Tiger Woods are paid millions every year to lend their names to the promotion of Nike products.

Less well-known, however, is the story behind the symbol. Nike has been a global corporate pioneer in exploiting the low-wage labor of workers in other countries. The mere pennies per hour earned by Nike workers in Asia are the main reason that Nike Chief Executive Officer Philip Knight is one of the richest people in the world, estimated by Fortune magazine to be worth $5.2 billion.

Isn't it just a bit disgusting to accumulate that much money off the backs of people who can't even feed their families – much less buy a pair of Nike shoes on the miserable wages Nike is paying?

During the 1970s, most Nike shoes were made in South Korea and Taiwan. When workers there gained new freedom to organize and wages began to rise, Nike looked for "greener pastures." It found them in Indonesia, where it started producing shoes in 1986.

Indonesia has a repressive regime that outlaws independent unions and sets the minimum wage at rock bottom. Even the Indonesian government admits that the minimum wage there does not provide enough for one person – let alone a family – to survive. In 1996, the entry-level wage was a miserable $2.20 a day. Labor groups estimate that a livable wage in Indonesia is about $4.25 a day.

Compare this with the pay of Nike's celebrity promoters. Michael Jordan gets $20 million a year to promote Nike sneakers. Jordan's compensation alone is more than the annual income of 20,000 workers who make Nike shoes.

Despite Indonesia's repressive government, workers in the shoe industry have been rebelling against low pay, forced overtime, abusive treatment by managers and lack of health and safety standards. When the foreign press publicized these abuses, Nike denied responsibility. It insisted that Nike did not own the factories but simply contracted the work to independent contractors.

Yet with mounting criticism, Nike relented and in 1992 came up with a code of conduct that set standards for its contractors. But abuses continued; workers demanding better conditions were dismissed, and independent organizing was still prohibited.

Jeff Ballinger, who worked with Indonesian workers for five years, writes that Nike suppliers in Indonesia rely on "management by terror," rampant corruption of government officials to keep labor inspectors at bay, forced overtime and illegal "training wages" used as a subterfuge to steal thousands of dollars from workers.

Since it has come under increasing pressure from labor and human rights groups, Nike has mounted a counter-offensive. Through slick promotional materials, Nike tries to defend itself against a growing list of critics. Yet in its own promotional material, Nike admits that its labor costs for producing a pair of shoes that will sell for $80 here the United States are just $2.60.

Nike could take just 1 percent of its advertising budget ($280 million per year) and use the money to raise the income of all the workers in its six Indonesian factories above the poverty line.

Opinion polls show that a broad majority of Americans believe that businesses have a responsibility to treat their workers well, even if it means making less profit. It is up to us, the citizens of the country in which Nike is incorporated, to bring pressure for fundamental change.

Labor, religious and consumer groups have increased their anti-Nike organizing. They are demanding that Nike agree to independent monitoring of their factories by local human rights groups, that the company settle claims by workers who were unfairly dismissed, that independent organizing be allowed in Nike factories, and that wages and working conditions be improved.

Until these conditions are met, the Niketown on Union Square will be a focus of human rights protests.

Two indonesian workers fall to death

Star - February 18, 1997

Kuala Lumpur – Two Indonesian contract workers were killed and one escaped unhurt when a scaffolding on a building which was undergoing construction in Damansara Heights gave way yesterday.

Abdul Karim Sakariya, 24 and Jeseri Ibnuh, 41, died on the spot while Mursinah Murni, 25, was unhurt.

They were working on a platform supported by the scaffolding at the 10th floor of the 13-storey building in Lorong Dungun when the incident occurred at about 2.30pm.

According to Mursinah, they were about to unload sand from a steel bucket when the platform shook and gave way.

Mursinah said she threw away the spade she was holding and jumped into the building.

However, she said Abdul Karim and Jeseri who were standing on the platform plunged to the ground together with the bucket, the metal support frames and scaffoldings.

Protesters cause mob scene at opening of San Francisco store

Associated Press - February 22, 1997

San Francisco – As Nike opened a new store in San Francisco's bustling Union Square Saturday, human rights advocates protested what they call worker exploitation at the sports and footwear giant's factories in Indonesia.

It was a veritable mob scene during an already busy shopping day. Hundreds of shoppers lined up to enter the Nike Town store as a large group of protesters screamed and waved banners. Police arrested at least 16.

San Francisco advocacy group Global Exchange says Indonesian workers at Nike's shoe production facilities are paid below a livable wage: about $2.20 a day. Although a few protesters were wearing Nike sweatshirts, the group is calling for a boycott of Nike products until conditions and wages improve.

Jim Small, a spokesman for Beaverton, Ore.-based Nike, agreed that the conditions at the company's 16 Indonesian plants are not ideal. But he says the wage is closer to $4 a day. He also says Nike is one of only a few sports merchandise and footwear makers to institute a ``code of conduct" in overseas factories.

``The bottom line is: Do we abuse our workers? Absolutely not," Small said. ``We want to make sure that we make the best products, and we want to make sure that we make them in the best possible conditions."

But according to the U.S. Department of Labor, Nike is not one of the 31 major apparel companies that have asked to be put on the ``Trendsetters List" of firms the department hails for exemplary labor practices, said spokesman Tino Serrano in San Francisco.

Walter Johnson, the executive secretary of the San Francisco Labor Council who has joined the protesters, castigating the shoemaker as a ``heartless, disgraceful operation."

``This is a new form of slavery," Johnson said, referring to big corporations that manufacture their goods overseas with cheap labor. ``As Thomas Jefferson said, merchants have no soil of their own. They go to where the profits are."

Mayor Willie Brown, who attended a press event earlier in the week with 49ers wide receiver Jerry Rice and women's soccer star Tisha Venturini, ``does not get high marks" for his participation, Johnson said.

Brown, wearing a custom-made fedora with Nike's familiar ``swoosh" logo on the brim, said, ``There are 100 new jobs here. That's the only reason I'm here."

Rice, who has had a Nike endorsement deal for 12 years, bristled when asked whether he had any comment on the protest, saying, ``I don't think it's fair for you guys to throw this in my face."

Well-oiled Nike machine runs into SF protest machine

Associated Press - February 20, 1997

Richard Cole, San Francisco – The multi-billion dollar Nike empire and its muscular sports machine rolled into town Thursday to launch a new store, but instead ran into the city's protest movement and eked out a public relations draw.

Demonstrators carrying giant mock Indonesian shadow puppets gathered outside the new Nike Town super store's media opening to accuse the footwear company of exploiting workers in Asia.

Walter Johnson, head of the San Francisco Labor Council, said he would call on the AFL-CIO to launch a national boycott of Nike products until 25-cent-an-hour wages were raised and conditions improved.

Caught in the crossfire was San Francisco 49ers record-smashing receiver Jerry Rice, who for 12 years has had a contract to promote Nike.

Rice was visibly upset by questions about Nike's factories, saying he had heard of the controversy only when he arrived at the Union Square store Thursday. He finally stalked away from reporters.

"I think it's unfair you guys throwing this in my face," Rice told reporters. "I understand it's a situation that has to be dealt with, but it's also something you have to think about. You can't just respond right off the bat."

San Francisco Mayor Willie Brown displayed his political cross-training by sidestepping the controversy after oohing and aahing at the slick, expensive – $79 for a U.S. soccer team shirt – three-story retail store. Brown said he welcomed the jobs Nike was bringing to the city.

"I'd love to have the same thing happen to people all over the world, but my first responsibility is obviously to San Francisco," the mayor said.

Nike spokesman Jim Small defended his company's record, saying Nike pays at least the minimum wage in all its factories, and an average of 50 percent more.

Nike, he noted, is a member of a committee of apparel makers that will make recommendations to President Clinton next month on how to protect overseas employees of U.S. firms.

"Nike will not tolerate the abuse of workers in our facilities," he said. "We care about them."

But union organizers and advocates for Nike workers told a different story outside the Union Square building.

Katie Quan, Northwest regional manager of the garment workers union, said Nike's contractors in Indonesia have consistently fought against efforts to organize their factories.

"The labor leaders there have been fired and imprisoned," Quan said.

Medea Benjamin of Global Exchange organized the protest and contrasted conditions she saw in visits to Indonesia with the plush Union Square environs of Nike Town, which opens Saturday.

Phil Knight, chairman and chief executive officer of Portland, Ore.-based Nike, she noted, is one of the world's richest men.

"Nike sweatshop workers in Indonesia make $2.20 a day – well below the liveable wage, yet Nike continues to pour money into bloated megastores, into its CEO's $5.2 billion hoard, and on multi-million dollar promotional contracts with rich sports stars," Benjamin said.

International relations

President Soeharto - Developing countries need to support solidarity

Kompas - 18 February, 1997

Phnom Penh – President Soeharto clarified that the developing countries need to increase cooperation to support solidarity to overcome arising problems. This is important, because the changes which happen in the world are still more profitable for the advanced industrial countries.

"The developing countries, of which a major part of the population still forms mankind's majority which is still repressed by poverty and backwardness. The movement ahead of the developing countries is still delayed due to limitted capital, technological backwardness and lack of qualified human resources," said the Head of State.

Kompas journalist Rien Kuntari reported this evening from Phnom Penh that the Head of State's clarification was conveyed at the state's dinner by King Norodom Sihanouk and Queen Monineath at Preah Tineang Chan, another part of the Cambodian King's Palace, Monday (17/2).

"Except one or two countries, the developing countries are in general not yet ready to face the open economic era and the ever stricter competition, which becomes a main characteristic in the coming century. These imbalances are not impossible one of the world's concerns in the future," the President continued.

He clarified that in such a situation, for the long term, there is not one state or group of states which will have profit, including the advanced industrial countries. Therefore, all international societies must fight shoulder to shoulder to build a fairer, more balanced world and to guarantee welfare for whole mankind.

"In such a condition, the developing countries need to increase cooperation to support solidarity in overcoming arising problems," the Head of State clarified.

Warm welcome

Exactly at 10.55 hours local time (same with West Indonesia time). the Boeing 737 of Garuda Indonesia landed at Pochentong airport, Phnom Penh, Cambodia. At the same time was played the Prashit Forrest (Magic Forest) which was played in the open air by live music.

The song composed by King Norodom Sihanouk was played in a slow tempo by the local band of the Department of Culture of Cambodia with the Cambodian vocaliste Sin Sovan Nary. Some moments later another Cambodian singer Pok Sam on sang Bengawan Solo composed by Gesang perfectly.

Before they also presented the Indonesian regional song Mande-mande followed by another composition of King Sihanouk, Phnom Penh, My Love, which was composed around the 1960's.

While along the road to the airport and the grounds around the airport it was crowded with people and Cambodian school children with a uniform of white blended with a dark blue trouser or skirt. They who were already prepared since 09.00 o'clock, brought the red- and-white flag in the right and the Cambodian flag in the left hand, while displaying posters with the picture of President Soeharto and King Sihanouk.

At the airport ground stood various groups of the Cambodian people, including the Cambodian Moslem group which represented around 500,000 other citizens.

As soon as the plane's door was opened, the President, escorted by the State's Minister and Secretary Moerdiono, the Minister of Foreign Affairs Ali Alatas, Mrs Siti Hardiyanti Rukmana, and Mrs Siti Hediati Hariadi Prabowo, and Major General Prabowo Subianto who was earlier in Cambodia, were welcomed by King Sihanouk, the Parliament Chairman Chea Sim, the First Premier Ranariddh and the 2nd Premier Hun Sen at the staircase of the plane.

As if by command, simultaneously, the community around the airport directly welcomed with shouts and laughing while waving the flags and flowers in all colours. King Sihanouk directly extended his hand to President Soeharto and slowly they went on the red carpet to the honorary platform for the welcome ceremony.

The Indonesian anthem Indonesia Raya (Great Indonesia) was played followed by Noko Reach (Royal Kingdom) King Sihanouk then invited the President to the Fan room. At the Fan room's door the President clasped his hands on his chest, smiled and bowed a little, answering the respects paid by the Cambodian youth who kneeled and bowed very low. They all used Cambodian dresses au kontrong neng somput cong keben.

At the open Fan room President Soeharto was introduced to the whole Cabinet of the Cambodian government, who were all using the white au kontrong and turmeric yellow neng somput cong keben.

After the introduction the Head of State directly went to the President Palace. At the corner of the Preah Norodom road a group of youngsters was welcoming the President with jazz music.

Gratitude

After the meeting, at the meeting room of the Moha Prasat Khemarin Palace, the State Minister and Secretary Moerdiono informed that upon arrival in Cambodia the President directly met King Norodom Sihanouk. The afternoon the Head of State received a courtesy call from the Chairman of the Cambodian Parliament Chea Sim, the Ist Premier Prince Norodom Ranaariddh, and the IInd Premier Hun Sen.

He said that Prince Sihanouk repeatedly disclosed the gratitude of the Cambodian people for Indonesia's big role in the reunification of Cambodia. On the other hand President Soeharto stressed that his visit to Cambodia this time was very historic. The Head of State visited Cambodia about 29 years ago, several hours after the assignment as President at that time.

Besides that, the occasion was used by both leaders to clarify the developments of each country. President Soeharto stressed the similarity in the development process of both countries. Therefore Indonesia was willing to share its experience on development with Cambodia.

Touching the experience of the settlement of Cambodia, Prince Sihanouk stressed again President Soeharto's big role since the time of the Minister of Foreign Affairs Mochtar Kusumaatmadja until the Minister of Foreign Affairs Ali Alatas. He stressed that RI's involvement this time was more caused by Indonesia's wish in dedicating the Preambule of the 1945 Constitution.

Through this Preambule of the 1945 Constitution, Indonesia clarified the need to be involved in erecting world order based on social and eternal peace.

While at the meeting with the Chairman of the Parliament Chea Sim, the Ist Premier Ranariddh and the IInd Premier Hun Sen, accordinmg to Moerdiono, President Soeharto congratulated them with Cambodia's progress in the reconstruction of their country. For instance, Cambodia's ability to check inflation and to arrange economic growth.

Information collected by Kompas stated that in 1991 Cambodia's inflation rate reached 150 percent. This figure decreased drastically to 3.5 percent in 1995. A year later Cambodia's inflation rate reached five percent, which will be maintained in the coming periods.

In 1995 Cambodia reached a real GDP growth of seven percent. this figure is far more stable compared with the average growth in 1988-1991 which only reached 3.4 percent. In 1993-1994 that figure increased to four percent. It is estimated that in the five coming years the real GDP of Cambodia will reach eight percent.

Forty four percent of GDP is received from the agricultural sector, 37 percent from the service sector and 19 percent from industry. Income per capita of Cambodia doubled, from 120 US dollar per year (1990) to 290 US dollar (1995).

Therefore, the State Minister continued, President Soeharto stressed three important elements in development, namely national stability, economic growth and equal spread. The President also brought forward that Indonesia experienced various development phases after independence, or before reaching a firm national integration.

"The President stresed, that the most important thing is the wish of all parties, the wish of the leadership to settle differences of opinion among them and to find meeting points" the State Minister said quoting the President. Besides that both parties hoped to increase mutual relations in the future.

ASEAN Member

Answering questions about Cambodian membership in the ASEAN, Moerdiono stated that it was briefly touched. He reminded the agreement between ASEAN leaders to accept Cambodia, Laos and Myanmar together.

Ali Alatas said separately at the same place that the three leaders were also grateful for Indonesia's support to accept Cambodia as full member of ASEAN. The two premiers even wished that this could be realized in 1997. Alatas said that the time of acceptance of the three countries was not mentioned. He said that their hope was of course tht it could be realized this year, but they did not make it a big problem.

Alatas clarified that Indonesia was at any time willing to accept the three countries in ASEAN, as far as the technical criteria were fulfilled. He was however not willing to state whether those criteria were already fulfilled or not. He said that he still waited for the results of the discussion with the ASEAN Secretary General.

"Therefore I only say that the decision is from our government heads who are not bound by time. Besides that I show to the process which at the moment is going on. A technical process, not a process of criteria or political conditions as the Western countries state. We cannot accept that. This is a normal process, a technical process like each organization has," he clarified.(*)

Megawati/PDI

Police sends second summons to Megawati

Antara - February 18, 1997

Jakarta – Police has sent a second summons to ousted party leader Megawati Soekarnoputri and his husband Taufik Kiemas to explain about the political activity they held at their home on January 10, a South Jakarta police chief said here on Monday.

"The summons was sent on February 11 and they are expected to come to the South Jakarta police resort on February 18 and 20," Lieutenant Colonel Sisno Adiwinoto, the chief of the South Jakarta police resort, said.

He said unless Mega and Taufik would meet the call police would force them to do it.

Despite the ban Megawati Soekarnoputri has held a commemoration to mark the anniversary of the Indonesia Democratic Party (PDI) she once chaired. The party is now headed by Suryadi who toppled her in a congress in Medan.

Asked whether the presence of Megawati and Taufik at the police office could be represented by their lawyers Sisno said that it possibly could so far as they had reasons for it.

He said "it all depends on the reason," adding that police would study it to see if it was acceptable.

He said the police had met the legal conditions needed for sending the summons so far.

"We have done it accoding to the law. According to us we have already had the permits including the one from the President and the Attorney General," he said.

Riots, social unrest

State's apparatus must be reorganized

Kompas - 20 February, 1997

Jakarta – The attitude and conduct of the whole state's apparature must totally be reorganized, so that it will be more communicative and persuasive. This is as one of the efforts to lessen, or even check the various riots which presently are ever more flaring up.

"The state servants must really perform their tasks as servants of the society, not that they had to be served. This must be a fact, not talk only," said the ex Minister of Home Affairs Rudini, who is Chairman of the Indonesian Institute for Strategic Studies (LPSI), answering questions from Kompas in Jakarta, Wednesday (19/2).

Rudini, former Chief of Staff of the Army, said that until this moment still too many of the apparature were acting arbitrary, causing anger of the people. Various cases proved this.

He mentioned various cases of condemnation of the people which caused that they could not find a living at other places. This happened because the condemning party, whether is was the government or private enterprise only was concerned about compensation, without observing human aspects.

"For instance, people who for generations have made roof-tiles along the Bekasi railroad. They are said to go away. Compensation. They are said to change profession. Who is responsible for preparing their farming if they want to become farmers. Are the people given money to live continuously," he said.

"We succeeded in chasing away the colonial powers. But the colonial attitude and mentality are still here. Feodalism for instance. Structurally it does not exist, but mentally there is still much," said Rudini.

The attitude and conduct of the apparature experienced no change, while the people's awareness developed very far. In such a situation, the people's anger will easily explode spontaneously.

"Formerly, the people was angry because they were pushed or organized by certain parties. The situation is now different. People is spontaneously angry, then probably there are other parties which take a free ride. A clear proof is the Tanah Abang case. The people could be handled. But then they were asked illegal taxes. The subdistrict head asked, the district head asked, Military Headquarters at district level asked. Chaos," Rudini told.

The political awareness of the people has far increased, according to Rudini, among others proven by the many demonstrations and even riots.

"They are ever more conscious of their rights. In that situation, they must be guided so that they are also conscious of their duty to keep and obey all rules and regulations. So they know the rules of the game," he said.

In political matters, Rudini said, the people proved not just to be able to pierce the picture in the general elections. Proven with the many protests against the candidate legislative list because they feel that they don't know them.

"How can a person feel to be represented if they don't know that member of the House of Representatives. So the opinion is true that order has to be put in the persons in the constitutional institutes," thus Rudini.

He added that change of attitude, mentality and conduct of the apparature is important so that the regional government will not always hastily invite the Armed Forces to act and eradicate riots.

"If there is trouble, let the Armed Forces quickly eradicate it. That is wrong. Keep first order in the government apparature," said Rudini. Thus, he added, the Armed Forces could be utilized for more productive matters.

Rudini saw also many methods to overcome social disharmony if that was one of the reasons for the riots. He said that the collecting of taxes was the best means for the government to increase the social condition of the lower society.

He brought forward that in the capitalistic United States of America 60 percent of income tax was drawn. "Lippo which got much profit with trading of land, has only PBB tax, no income tax. And now much fuss is made about Busang. No need to make such fuss, just place a big tax. Finish. The result is for the people," he said.

Rudini gave an example of the implementation of investment tax at IInd level regions, which thus pressed each second level to invite investors. This will simultaneously increase the welfare of the local people due to employment opportunities.

"Then the province implemented sales tax. To place income tax at a national level," he said. He added that there were so many methods to dig for sources of funds.

"Another example is the erasing of regional offices and project managements approved by the President but rejected by the department because they will loose their livelihood. If that is implemented, how many quintillion rupiah can be set aside from the National Budget, which finally will be used to increase the salary of public servants. There are many methods, we must be innovative," said Rudini.(*)

Buya denies members were involved in West Kalimantan

Kompas - 19 February, 1997

Jakarta – The General Chairman of the Central Directing Council of PPP, Ismail Hasan Metareum, evaluates that those meant by Army Chief of Staff General R Hartono, when he mentioned there were elements from East Java inciting the community in West Kalimantan, were Parliament PPP Fraction members KH Amin Imron and Madurese religious teacher KH Abdullah Schal.

Therefore, in his meeting with the press in the office of the PPP Central Directing Council on Tuesday (18/2) yesterday, Ismail Hasan Metareum, who is cordially called Buya, denied that accusation. Buya emphasized that the two persons had never incited the mass and caused the riots in West Kalimantan.

Buya who was sided by Chairman Hamzah Haz, Zain Badjeber, and PPP Fraction member Koen Solehoeddin, put forward that the two high religious teachers from East Java had not been to West Kalimantan after the initial riot which happened in Sanggau Ledo.

This statement was conveyed after Buya had delegated Koen Solehoeddin to meet with Amin Imron in Jakarta yesterday. Amir Imron is fourth on the list of candidate members of legislature for PPP from East Java.

Koen explained that Amir Imron had been shocked that his name had been linked to the riots in West Kalimantan. Amir, said Koen, regretted that the apparatus had not questioned him prior to launching that unfounded accusation. Amir also said never to have visited West Kalimantan in that connection.

According to Buya, the PPP Central Directing Council had once indeed send a team to observe the riots that had occurred in Sanggau Ledo. But that was a while ago, namely around the beginning of the fasting month.

"They long since returned and we are still studying the results. We have indeed not yet written a letter to the Armed Forces Commander concerning our findings," said Buya.

Posters did not incite

Buya also said it was not true that the posters picturing the two religious teachers from East Java - with the PPP symbol in the center and Arabic writing above - were inciting in tone. Buya heard that the Arabic writing on the upper side of the posters was thought to call for holy war.

"In fact when you understand Arabic, it means, may on us be bestowed by Allah the blessing of these two people in the world and in the hereafter," said Buya while pointing at the poster.

The Security Assistant to the Army Chief of Staff, Maj.Gen. Zaki Anwar Makarin on Monday (17/2), before journalists showed photographs of persons with initials AI and AD, who until now are suspected as the cause of the spreading of the riots. (Kompas, 18 February 1997).

Those posters, recounted Buya, were printed about three months ago in Bangkalan, Madura, East Java, and sold to get general elections campaign funds for the Bangkalan PPP Branch Directing Council. The branch printed about 25 thousand sheets. Thus far, already some Rp 25 million has been collected.

According to Buya, those posters had created a problem in East Java, but subsequently the local government stated it had no objections and permitted circulation of those posters.

But Buya admitted that the bare Arabic writing on those posters could well be interpreted in various ways by people who did not understand the specific purpose. "That can happen," he said.

To meet the Army Chief of Staff?

Buya said he had not yet thought about meeting Army Chief of Staff General R Hartono, because the accusation about the two persons from East Java had come from the side of the Army leadership.

"I read about it just today. Even should we have to meet, we must have complete data, so we will know what problem will be discussed," said Buya.

Of course, Buya said that he wants the matter to be settled fully quickly. He also asked the Chairmen of the PPP Central Directing Council to officially summon the PPP members who had been the target of the accusation.

"I want this problem to be over quickly. And I am also grateful to Pak Hartono who quickly settled the riots. Only, I think that they obtained inaccurate information which led to misdirected accusation," he said.

Nevertheless, Buya invites the authorities to investigate the two accused if that is in accordance with procedure. (*)

Jakarta launches command centres to curb social unrest

Straits Times - February 19, 1997

Jakarta – The Jakarta Military Command has begun operating the National Alert Command Centre (PKN) which would be effective throughout the country.

"Through the command post, people can contribute information to the authority and related-agencies regarding the truth of rumours," Jakarta Military Chief Major-General Sutiyoso said here after officiating at the opening of the operation of the command post on Monday.

Following recent riots, President Suharto had asked for alert command centres aimed at ensuring peace to be set up at regional military commands.

Maj-Gen Sutiyoso said people were expected to contribute to the post because averting riots which may disrupt the process of national development was the responsibility of all Indonesians, Anatara news agency reported on Monday.

The National Alert Command Centre will involve a number of parties, including public figures, religious leaders, the military, policemen and local municipal officials.

The centre is set up to provide confirmation on rumours, including those about riots.

Asked about the possible overlapping of its task with the Coordinating Board of National Stability (Backorstanas), he ruled out the possibility, saying that "the post will become the spearhead of Backorstanas at the military district level".

"The most important thing is that we can get accurate and fast information in order that we can solve the problem immediately."

He said the post would provide a free telephone service through telephone number 122 for anyone who wanted to give or obtain information about certain issues.

He gave an assurance that the centre will respond to "any report from the people", adding that for those who wished to give information through the mail, they could send it to P.O. Box 122.

"The services were given the same number to help people to memorise it easily," he said.

He expressed the hope that the officials of the centre would introduce the new agency to the people in order that they do not hesitate to give their contributions.

The task of the National Alert Command Centre is to anticipate and detect various potential problems which may lead to mass riots and disruption to the development process.

The centre should also give information to the people about incidents happening in their regions and analyse reports about unrest and formulate a proper action with a view to finding the best solution.

300 died in ethnic clashes, not 1,000, says ABRI

Agence France Presse - February 19, 1997

Jakarta – About 300 people have died as a result of recent ethnic clashes in West Kalimantan and four people are being investigated for allegedly sparking the unrest, military (Abri) officials are reported to have said yesterday. "It's not true that the number of victims killed reached more than 1,000 like it was quoted in an English-language newspaper in Jakarta. The number of people killed was about 300 people," Major-General Zacky Anwar Makarim was quoted as saying by the Media Indonesia daily.

The Indonesian Observer reported last week that thousands of people had died in the violence.

Until Maj-Gen Makarim's statement, military sources had only said that "hundreds" of people had died since late December in clashes between the indigenous Dayak people and migrants from Madura, a small island north of Java.

The Jakarta Post quoted Maj-Gen Makarim as saying four people were being investigated for allegedly circulating anonymous leaflets and pictures slandering a certain religious and ethnic group. "We strongly suspect they were instigators of the latest wave of violence in Pontianak and the surrounding areas," he said.

He declined to identify the four people, saying only that the police had questioned but not arrested them as they were collecting more evidence.

Major-General Namuri Anum, head of security in West Kalimantan, said last week that 68 people had been detained on suspicion of criminal actions during the mass unrest.

Army chief General R. Hartono said over the weekend that the military had proof of individuals travelling from East Java province to incite unrest, but he did not elaborate.

A Pontianak resident told AFP yesterday that the situation was "a bit calmer here compared to the last few weeks, but there is still tension between the two communities". The source said there were fresh clashes between the warring groups as late as Sunday in Sungai Ambawang, a town less than 10 km east of Pontianak, but could not give further details.

The resident said that while the authorities had lifted the curfew in Pontianak, "the city is still pretty empty at night".

Yesterday morning, a ceremony involving representatives from the Dayak and Madurese communities was held in front of the Pontianak mayoralty office building.

During the ceremony, attended by about 1,000 people, including the local government and military leaders, a declaration was read out in which the two sides pledged to work for peace and to settle their differences, a witness said by telephone. Provincial officials said a series of peace talks at district and provincial level were underway between the two ethnic groups.

Observers said they were sceptical about the outcome of the talks, saying they believed a peace accord would not relieve deep-seated tension between the two ethnic groups who have had at least eight major disputes over the past 20 years. In another development, the Indonesian-language Angkatan Bersenjata newspaper quoted Lieutenant-General Syarwan Hamid as saying that Abri would act in a sterner and more direct manner without compromise.

He said Abri would not allow any attempt to disrupt national stability and integrity. – AFP.

Four killed as accident sparks riot in Bandung

Straits Times - February 21, 1997

Bandung – Tension gripped several parts of the Indonesian city of Bandung following a traffic accident and a riot on Tuesday evening which left four people dead and seven others hospitalised.

Residents and passers-by went on a rampage after two people were killed in a traffic accident, The Jakarta Post reported yesterday.

Pedicab driver Jana bin Samijah, 39, and his passenger, 16-year-old Uus M. Yunus died after they were hit by a minibus driven by Mardamo Marbun, 37.

Passers-by and residents began attacking the minibus and its driver and in the process killed a resident, Mr Pipin Arifin, 25, who had been helping the two victims.

The mob continued to a carwash area for minibuses where it attacked and burned 13 of the vehicles and killed 23-year-old Yana who was washing the vehicles.

Bandung military chief Lieutenant-Colonel Osaka Meliala was quoted by the Kompas daily as saying that "the motive was purely criminal and not linked to any other issue".

Bandung, near the Indonesian capital of Jakarta, has been rife with rumours of unrest in recent weeks, with flyers in circulation calling for ethnic and religious violence.

Lt-Col Meliala said no arrests had been made but that the incident was being investigated. – AFP.

25 to be charged over unrest in West Java town

Agence France Presse - February 21, 1997

Jakarta – Indonesian authorities are to charge 25 people, including four accused of subversion, over a December riot in the West Java town of Tasikmalaya in which four people died, a report said yesterday.

Subversion carries a maximum death penalty in Indonesia.

The head of West Java's high attorney's office, Mr Mohamad Adenan, said 14 people would be charged with damaging and setting fire to property and faced life imprisonment. Seven others would be charged with theft and violence and could face seven years' jail, he added.

He said that all the trials would be held in Tasikmalaya but did not give a date, the Antara news agency reported. However, he said one of the subversion files was completed and ready for trial.

Last week, Mr Adenan said the first trial would begin in about one month. The four subversion suspects, aged 24 and 25, have so far been identified only by their initials – AGS, AM, AF, and MH. Press reports identified them as activists of youth and Muslim organisations.

Thousands of Muslims angered by police mistreatment of three teachers of an Islamic school, went on a rampage in Tasikmalaya on Dec 26, torching and damaging more than 100 buildings and vehicles.

Although several police stations were hit, most targets were the properties of ethnic Chinese and non-Muslims.

Four policemen suspected of having beaten the school teachers have since been dismissed from the force and face a court martial, the police have said. – AFP.

4 ex-policemen face 32 months in jail over Tasikmalaya riot

Antara - February 27, 1997

Bandung, W Java – Four former policemen charged with inciting the recent riot in Tasikmalaya, West Java are facing up to 32 months in jail.

Military prosecutor, Col Ismail Bangun, demanded here Tuesday that the West Java military court imprison former Corporal Nur (38) for 32 months and former 2nd Sgt AM (24) for 30 months.

He also sought 24 months for former 2nd Sgts AY and DH.

The four, who were dismissed from the police force on Jan 10, were accused of torturing Moslem teacher, Mahmud Farid (37), and two of his students, Habib Hamdani (22) and Ikhsan (20), of the Riyadul Ulun Wadda'wah Islamic boarding school in Tasikmalaya.

Farid and the students, who needed medical treatment after the beating, were summoned by Nur after his son, Mohamad Riza (14), also a student at the school, was punished by one of the teachers for alleged theft.

The four former policemen confessed to the tribunal that they had beaten Farid and the two students but they also said there were other officers involved but have not been charged.

ABRI calls meeting to address crisis

SiaR - 14 February, 1997

On February 5, the ABRI (Armed Forces) Social and Political Chief of Staff, Syarwan Hamid called in 83 social and political organisations to discuss how to overcome SOB (situation of national crisis) [Javanese acronym - JB]

He said: "ABRI needs legitimacy to hold political power" and referred the meeting as being in the framework of "discussing social and political developments which pictured the national situations as in the mists of an emergency."

The meeting included leaders from the three political parties, other groups loyal to the regime such as ICMI and Pemuda Pancasila, professional organisations such as IKADIN (Ikatan Advokat Indonesia, Indonesian Association of Advocates) as well as religious groups including NU (Nahdlatul Ulama, Association of Muslim Scholars).

Syarwan said that the "coordinating meeting" was not to give "direction" but to "exchange information". That there was a trend to increase the threat against "security" by a party who was using issues of social inequality and concern with the goal of undermining confidence in the authorities. He said that the group had a form and network. "And it is natural to assume (suspect), their strength is not small", "the common thread is clear, the PRD. Although Budiman has been arrested, their network still exists. Proven by their activities on the internet. At least two times a week their writings are published. If they are brave enough to appear on the internet, that means that they are strong. Because if they were not yet strong, they would not appear on the surface", added Hamid, to those present most of whom do not understand the internet, seen or even able to run a computer.

"ABRI wants to continue to guarantee security. But a 'low profile' attitude will be considered weak. At the moment, ABRI does not have the same power as it did before during the time of Kopkamtib (Komando Pemulihan Keamanan dan Ketertiban, Command for the Restoration of Security and Order). At the moment there is also the National Human Rights Commission, along with NGOs which always 'make a racket' if ABRI acts strongly. Because of this ABRI asks for your input," said Syarwan in a shrill voice. With regard to NGOs, Syrawan mentioned YLBHI (Yayasan Lembaga Bantuan Hukum Indonesia, Indonesian Legal Aid Foundation). He then again raised an idea which has never been popular, that is the establishment of State Security Laws.

"The present dosage to cure the illness is to light. Perhaps one Bodrex a day still leaves the body hot. We cannot ignore this, so that the illness disappears, the dosage must be increased" said Syarwan who always admits to being able to know each state enemy from the 'tone of their song'.

All of those present responded to Syrawan's remarks with interesting arguments. For example, I Bagus Gunade who represents the Hindu social organisations said: "If you states that the goal of this meeting is to 'distribute' concern; if ABRI already feels worried, what about civil society such as us. The impression in society is that ABRI is rather late in anticipating this".

One of the participants told SiaR that of all of the reports apparently this was the climax of a long scenario to carry out SOB as "scenarioed" by the Army in the 1950s. "From incidents such as the PDI congress in Medan, the forceful removal of Megawati, the accusations against the PRD as the masterminds of the July 27 riot, also the white book "Facts & Evidence in the Situbondo Tragedy" compiled by the GP Ansor Jatim fact finding team, it is clear that the military are involved. They engineer things to create "amok", fear and then create a crisis. Then they pretend they are not strong enough. So that in the end people are forced to give legitimization to ABRI to act on it all" said the participant who declined to give their name. "Kid, please, don't mention my name. I could disappear later", they asked.

So what does the ABRI Social and Political Chief of Staff want? A high ranking ex-Army member was asked to respond by SiaR in relation to the meeting. "From this meeting, it is as if ABRI is asking for support from society so they can take explicit steps. While in reality the meaning of Dwifungsi (dual social-political role of ABRI) is so that ABRI only functions as the extinguisher of a fire."

A number of groups are suspicious of the aim of the meeting. Aside from Syarwan's tone which is so dramatic and compassionate, Syarwan's arguments are subjective in nature. "Just matching up one fact with another. He eliminates the possibility that there are others who know there is an intelligence operation which is popularly known as 'Operation Red Dragon' and 'Operation Green Dragon' ('Operasi Naga Merah' and 'Operasi Naga Hijau') which is behind the riots" said a academic political observer.

"Obviously, at the moment there is already Dwifungsi, but an elite group in ABRI is also still power mad and demanding the return of extrajudicial institutions such as Kopkamtib to be able to carry out their security function. If they are not capable, they should be brave, ask to resign an return the mandate to Pak Harto (Suharto). Not ask for facilities to carry out a blow against the people which will definitely damage Indonesia's international image in the upholding of human rights", added an observer from a well known state university in Jakarta.

A rather different comment was given by a political observer who admitted they did not know much about what was behind this. They said: "Ah, all of it is clear. Syarwan himself is only "paring bodies" [lit - JB]. That indicates that ABRI has only become the actor. Behind that is a super-mastermind who is playing a role so that everyone is dependent upon them. ABRI, the Chinese, Islam, all of them done completely wrong and depend upon the super-mastermind".

[Translation from SiaR. Please not that this article contained a number of unusual colloquialisms and Javanese terms and so some sections of the article were omitted and some the translations may not be accurate - JB]

Military holds 86 amid new ethnic rioting"

South China Morning Post - February 21, 1997

Joe Leahy and Agencies in Jakarta – The military has arrested 86 people during a resurgence of ethnic conflict which has left hundreds dead and forced more than 1,000 people to abandon their homes in West Kalimantan.

Indigenous Dayak tribesmen went on a rampage on Tuesday, torching 107 houses in Sungai Kunyit, 60 kilometres northwest of the provincial capital of Pontianak, the Merdeka newspaper said yesterday.

The violence forced more than 1,000 people, most of them migrants from Madura Island, to flee.

The military arrested 86 people and confiscated 21 muskets and 96 other weapons. The military was reportedly questioning 12 detainees and police were holding the rest.

The latest outbreak of violence follows warnings by human rights officials that further peace efforts were needed, even though warring parties signed a reconciliation agreement on Tuesday in Pontianak.

The military yesterday attributed the latest ructions to poor communication, saying news of the pact had yet to reach outlying districts.

"There are constraints on communication such as transportation, language and distances," Lieutenant-Colonel Imur Pandji, of Pontianak's new military command forward post, said.

"Some of the tribal chiefs in remote areas have not heard of the signing of the peace pact."

The Pontianak command post is one of the first to see action since President Suharto ordered the armed forces to establish special surveillance posts in the regions.

Sources say the peace accord ceremony has had little impact.

"Dayak elders remain steadfast that they will not tolerate Madurese presence in the area any longer, and that there will be no peace until all Madurese have left the region," a source said.

Miriam Budiardjo, the deputy chief of the National Commission on Human Rights, which helped broker the agreement, said: "We hoped the signing of the accord would bring a more lasting peace, but I realise that it's a long-term problem and won't go away just like that."

Rights watchdog wants bigger peace effort

South China Morning Post - February 20, 1997

Joe Leahy, Jakarta – Further peace efforts are needed in West Kalimantan to avoid a repeat of ethnic clashes which have rocked the province in the past two months, a senior member of the National Commission on Human Rights warns.

Commission Secretary-General Baharuddin Lopa was commenting after a senior military officer sought to play down reports that the death toll in the clashes was as high as 300.

Mr Lopa said yesterday more peace-making efforts were needed between the warring parties - indigenous Dayak tribesmen and settlers from Madura Island near East Java - before the situation could be classified as secure.

Mr Lopa and other commission officials brokered peace talks between Dayak and Madurese community leaders in Pontianak on Tuesday.

"Just because there's been a plaque-signing ceremony in the capital, that does not mean the situation is over in the villages," Mr Lopa said yesterday.

The commission could not confirm how many died in the clashes, mostly in the Sanggau Ledo district about 100 kilometres north of Pontianak, until it had implemented a full inquiry, he said.

"But we cannot start a proper investigation until the situation settles down at the lower levels. We're still waiting for the reconciliation process to take effect in the outlying districts."

The official news agency, Antara, quoted the West Kalimantan police chief, Colonel Erwin Achmad, as saying 68 people had been arrested since the riots began in December. He said 13 of the suspects faced interrogation.

On Monday, Army chief General Raden Hartono alleged a number of "individuals" from East Java had gone to Pontianak with the intention of inflaming the conflict.

"These slanderers are being detained by the West Kalimantan police," Major-General Namuri Anum, commander of the Tanjungpura military region, said.

General Hartono rejected reports quoting one of his aides, Major-General Zacky Anwar Makarim, as saying 300 had died in the clashes.

"No, it's wrong. The death toll was not that high," General Hartono said.

General Anwar had quoted the figure while contradicting reports between 1,000 and 2,000 had died.

The 300 estimate was a significant departure from earlier military statements.

Sporadic ethnic and religious rioting has erupted in other parts of mainly Muslim Indonesia since October, especially on Java.

'ABRI' not to withdraw 3,000 troops from W Kalimantan

Antara - February 17, 1997

Pontianak – The Tanjungpura Regional Military Commander, MayGen Namuri Anoem, said that he had no intention to withdraw around 3,000 personnel of the Armed Forces (ABRI) already deployed to the riot-stricken West Kalimantan.

"Even the overall situation in many regencies is under control,we still hope that ethnic riots could be immediately settled," he said here Saturday.

However, economic and traffic activities in many cities of the province have returned to normal. "Conflicting parties should settle their problems amicably and swiftly," he stressed after briefing a number of local authorities.

Indigenous Dayak community and migrants from Madura in some cities in the regencies of Mempawah and Ketapan, have been brought to a traditional peace talk.

Representatives from the clashing ethnic groups are now drafting a peace agreement to end the conflict that has rocked the province since December, daily Observer said.

"The peace committee is still working on it (the agreement), as certain cultural elements must be taken into consideration," said Kalimantan Governor Aspar Aswin.

Commander Anoem in his briefing stressed that an ethnic clash which had erupted recently was recorded as the fifth one.

The first ethnic riot broke out on August 6 and 9, 1977 in the regencies of Samalantan, Sambas, killing at least five people.

The second one was recorded on November 11-12, 1979 with a total death toll of 20 people.

The third occurred on November 20-23 on Ambawang river of Pontianak in 1983 with 12 people were reported killed in the incident.

The forth incident was what many people have known from newspaper whereas Sanggau Ledo is hit by ethnic riot on November 29,1996 up to January 1997, leaving around 12 people dead.

The fifth riot erupted in Siantan, the capital city of Pontianak which then expanded to regencies of Pontianak, Sanggau and Sambas with the bigger number of death toll.

In the meantime, local police chief Col Erwin Achman admitted that his office had arrrested about 68 rioters.

13 out of the arrestees deserved to be brought to court for their conpiration and plan to refuel and spark the riot, he said.

The police were reported to have confiscated the local people-made long rifles as evidents.

On the occasion, Commander Namuri Anoem promised to take a stern action against rioters.

Peace pledge after 300 die in ethnic clashes

Agence France Presse - February 19, 1997

Jakarta – About 300 people have been killed in ethnic clashes in West Kalimantan, according to the military, but rival groups have pledged in a public ceremony yesterday to work for peace.

The toll was given by Major-General Zacky Anwar Makarim, assistant to the army chief for security affairs to the Media Indonesia newspaper.

Until the statement, military sources had only spoken of "hundreds" dead since late December in clashes between the indigenous Dayak people and migrants from Madura, a small island north of Java.

The Jakarta Post quoted General Makarim as saying four people were being investigated over anonymous leaflets and pictures slandering certain religious and ethnic groups.

"We strongly suspect they were instigators of the latest wave of violence," General Makarim said.

He declined to identify the four people, saying only that police had questioned but not arrested them.

The head of security in West Kalimantan, Major-General Namuri Anum, said last week that 68 people had been detained over criminal actions during the unrest.

Army chief General Raden Hartono said at the weekend the military had proof of individuals travelling from East Java province to incite unrest.

A resident of the provincial capital, Pontianak, said yesterday that the city was "a bit calmer" compared with recent weeks "but there is still tension".

The source said there were fresh clashes between rival groups on Sunday in Sungai Ambawang, a town just 10 kilometres east of Pontianak.

The resident said that a curfew had been lifted, but "the city is still pretty empty at night".

Two other sources said areas north of Anjungan and east of Mandor were still under Dayak control with minimal military presence.

There were Dayak checkpoints on roads leading to Ngabang, east of Mandor, and locals spoke of Dayak parties "hunting" Madurese in the jungles, one source said.

Yesterday, a ceremony involving representatives from the Dayak and Madurese communities was held in front of the Pontianak mayor's office.

During the ceremony, attended by about 1,000 people, including local government and military leaders, a declaration was read out in which the two sides pledged to work for peace, a witness said.

While provincial officials have said that peace talks were under way, residents said they knew little about them.

Observers were sceptical about the discussions, saying they believed that a peace accord would not be able to relieve the deep-seated tension between the two groups, who have had at least eight major disputes over the past 20 years.

PPP rejects Amin Imron and Abdullah Schal were involved in the riots in

Waspada - February 19, 1997

Jakarta – PPP has rejected the accusation that PPP cadres RKH Amin Imron and KH Abdullah Schal were involved in the riots in West Kalimantan, said the chair of PPP Ismail Hasan Metareum. "It's really not true" said Buya, on February 18. According to Buya photos and posters of the two are common in the Maduran community not just in West Kalimantan but throughout Java

Imron and Schal are two of PPPs most important kiai's from Bangkalan, Madura.

Arabic writing on the posters of the two read: "Afadhallahu Alaina Min Barokah Fihima Fiddunnya Wal Akhirat", which according to Buya means: "Hopefully Allah's blessings will flow forth from these two people in the world and the hereafter". He said the posters were sold to PPP members and Santris to collect campaign funds for the elections. 25 Million Rupiah was collected from sales.

[Abridged (very) translation from Waspada - JB]

Bid to curb news of unrest

South China Morning Post - February 19, 1997

Joe Leahy, Jakarta – The Government has sought to suppress details of the disturbances in West Kalimantan with a clampdown on foreign media and apparent self-censorship by the Indonesian press.

Jakarta censured Japanese media for coverage of recent unrest and foreign journalists who attempted to visit the site of the Kalimantan violence were ordered to return to their hotel in the provincial capital, Pontianak.

"The Japanese mass media has not stopped reporting the riots and surrounding events in Indonesia," the Department of Information said in a letter dated February 14 to Japanese correspondents.

"We are extremely concerned that these media are being taken advantage of by certain groups who are opposed to the development of Indonesia."

The letter appealed to correspondents to help maintain good relations between the two countries.

The letter included a clipping from a local newspaper, describing an interview by Indonesia's official Antara news agency with the deputy president of the Japan-Indonesia Friendship Organisation, Shizuo Miyamoto.

The article, headlined "Japanese media dramatise riots", quoted Mr Miyamoto as alleging agents of the Japanese Communist Party were behind the negative reports on Indonesia.

Japanese journalists were unavailable for comment yesterday but reportedly responded to the allegations at a meeting with the Department of Information.

Five Western journalists are returning from Pontianak where they were held in what one described as "hotel arrest" for several days.

They said military authorities ordered them to stay in the city for "their own safety".

Foreign journalists in Indonesia normally face travel restrictions in only three provinces - East Timor, Irian Jaya and Aceh, North Sumatra

Despite disturbances since December, the outside world has only recently discovered the scope of the bloodshed. Malaysia's border closure signalled the situation was getting out of control.

Gus Dur asks Maduran citizens to be calm

Jawa Pos - 19 February, 1996

Jakarta – The head of NU Abdurrahman Wahid said yesterday that he is not convinced that a number of Maduran's went to Kalimantan to "provoke the people". He added that the two kiai (Islamic teachers) have stated their concern of the victims and damage of the riots.

He also asked the Maduran community to be calm and wait for clarification. He also said that several days before Idul Fitri he was asked by the head of the Kalbar Pesantren to visit Kalbar with three kiais from Madura but when the request was reported to the Armed Forces they asked that the meeting be delayed until things were calmer.

[Abridged (very) translation from Jawa Pos - JB]

Indonesia warns Japanese media over reports on riots

Kyodo – February 17, 1997

Jakarta – Indonesia warned all Japanese media Monday against what it calls bias in their recent coverage of riots in Indonesia.

The Information Ministry sent warning letters to all Japanese media affiliates based in Jakarta.

"We are very worried that the mass media have been misused by certain groups which do not want to see progress in Indonesia," said the letter dated Feb. 14 and signed by Akhmadsyah Naina, director of journalism development at the ministry.

Since October last year, Indonesia has been rocked by a series of racial scares sparked by Muslim rioters. Dozens of people have been killed in the riots which have been targeted at the nation's Chinese and Christian minorities.

The letter urged the media to be more careful in covering events in Indonesia.

However, it added "We expect that your coverage will not harm the feelings of confidence and brotherhood of the Japanese people to Indonesia."

The letter was enclosed along with an interview between the state-run news agency Antara and Shizuo Miyamoto, deputy president of an Indonesian-Japanese friendship society.

In the interview, Miyamoto said major Japanese dailies such as the Asahi Shimbun and Mainichi Shimbun had sold out their objectivity because he said they have been influenced by Japanese Communist Party agents.

Indonesian President Suharto on Wednesday warned of the foreign press' "bad influence" on society because of what he described as its unbalanced and sensational reporting.

According to Suharto, the Indonesian press often relies on foreign media for its reporting on Indonesia. He said he views foreign press coverage as "a sort of spectacles which colors our perception in looking over the development of ourselves and our surroundings."

"The use of foreign spectacles recently has motivated the increase of dramatizing incidents, making hasty conclusions or writing unbalanced news," he said.

Political trials

Pakpahan and Petrus need medical treatment

Tapol - February 27, 1997

There is growing concern for the health of two men currently on trial for subversion. Both are detained in Cipinang Prison in Jakarta and have not been allowed to obtained medical treatment since being transferred there earlier this year. They were arrested after the raid on the PDI office in Jakarta on 27 July 1996. They have both been on trial since December 1996.

Muchtar Pakpahan, 44, is the leader of Indonesia's independent trade union, the Indonesian Prosperous Workers' Union (Serikat Buruh Sejahtera Indonesia, SBSI).

Pakpahan is an outspoken critic of the Indonesian Government and has frequently raised his concerns about labour rights, human rights and Indonesia's occupation of East Timor. He has been charged under two separate sections of the Anti-subversion law for "overthrowing, damaging, undermining state power or the authority of the legal Government or the State apparatus" for which the maximum penalty is death. He has also been charged under Article 154 of Indonesia's Criminal Code for spreading hatred against the government which carries a maximum penalty of seven years.

Since being arrested, Muchtar Pakpahan has suffered a variety of ailments, including vertigo, sinusitis and stomach disorders. He was unable to attend at least one court hearing because of ill health. He is now complaining of a very painful swelling of his left arm, from the wrist to the elbow. The cause of the swelling is not known.

At first when Pakpahan asked the judge to instruct the authorities to arrange for medical treatment, the judge said this was not within the authority of the court. After further complaints in court, the judge instructed the prison authorities to arrange for him to receive treatment.

However, the Director of Cipinang Prison will only allow Muchtar Pakpahan to be treated at a police hospital. Muchtar can accept this but insists that his family doctor should accompany him and be present during the treatment. This request has not yet been granted. It is understood that Muchtar may refuse to attend the next court hearing on Monday, 3 March if his request is not granted.

Petrus Hariyanto, 26, is the Secretary-General of the People's Democratic Party (Partai Rakyat Demokratik, PRD), the organization blamed by the Indonesian authorities for "masterminding" the events in Jakarta in July 1996.

After his arrest on 11 August 1996, he was held incommunicado until 18 August when his family were finally provided with information about his whereabouts. Earlier this year, he was transferred to Cipinang Prison. He is facing three separate charges under the Anti-subversion Law and also a charge under Article 154 of the Indonesian Criminal Code.

For several weeks, he has complained of suffering from a painful itching condition and swelling over the whole body. As far as is known, he has not received any medical treatment since being transferred to Cipinang Prison.

Judge requests that the prosecutor present Bambang Widjojanto as witness

Kompas - 21 February, 1997

The prosecutor, M Salim in the Central Jakarta State Court on Thursday, February 20, again requested the appearance of Bambang Widjojanto, the chairperson of YLBHI [Yayasan Lembaga Bantuan Hukum Indonesia, Indonesian Legal Aid Foundation]. Bambang has been ordered to be a witness in the subversion case against PRD chairperson Budiman Sudjatmiko.

"We [the judges] still want to have Bambang appear as a witness in this case. It is a technical problem, if needed, the prosecutor can be accompanied by security personal to forcibly present that witness" said the presiding judge Sjoffinan Sumantri. He added that he will again release a summons to present Bambang forcibly.

In the previous hearing, the judge ordered the prosecutor to present the witness forceably. But, obviously the prosecutor was not able to find the witness either in his home or office.

In Budiman's case yesterday, eventually only one witness was questioned, Dwi Setyaning Sunu, an employee of PT Kingstone. While in the case of another PRD activist, Garda Sembiring, again only one witness, and employee of the General Secretary of the Parliament (DPR RI), Haposan Hutabarat, was questioned.

Meanwhile, in the case against Mochtar Pakpahan in the South Jakarta State Court, Pakpahan's defense lawyer and a number of others present objected because the judge overly dominated the proceedings. Each question, either from the prosecutor or the defence lawyers had to be done though the presiding judge.

Bambang remains firm

Bambang told Kompas he was determined not to appear as a witness against Budiman. "The summons must be presented to the witnesses' house not office... if I am presented forcefully, then where is the concept that a witness should be questioned in a situation free from pressure and threats", said Bambang.

Meanwhile in court, the judge explained that he had gone to Bambang's address as listed in the BAP (Berita Acara Pidana, Preliminary Investigation Report). But it was in fact the address of the witnesses' parents. In the end the prosecution took the summons to the witnesses' office, YLBHI. "When I arrived at the YLBHI offices, the witness was there. But I was prevented from meeting with Bambang by Munir (the Operational Secretary of YLBHI). In the end the summons was handed over to Bambang via Munir. And the witness has accepted it", added Salim.

As stated by Sjoffinan, before the session, he had received two letters of objection from Bambang. Dated February 13 and 19 and read to the court, Bambang said that the summons was in conflict with the Indonesian Criminal Code which states that a witness may not be forced to give evidence.

[Abridged translation from Kompas - JB]

Anom Astika refuses to give evidence in the case against Petrus Hariyanto

Kompas - 25 February, 1997

Jakarta – I Gusti Agung Anom Astika, one of the leaders of the Peoples Democratic Party (PRD) has refused to be a witness in the subversion case against the Secretary General of the PRD, Petrus Hariyanto. His statement was given to the South Jakarta Court on Monday, February 24.

"I refuse to be a witness against the accused Petrus Haryanto. Because this would violate the human rights of the accused. Aside from this I am also accused in a case which resembles the case against Petrus Hariyanto" said Anom.

In yesterday's subversion case, lawyers of the accused Petrus Hariyanto and Ken Budha Kusumandaru each stated their objection to the presiding judge that the public prosecutor had read the statements of witnesses without their appearance.

In Petrus' case, defense lawyer Leonard Simorangkir expressed his concern when the presiding judge Moegihardjo allowed the public prosecutor Slamet Soebagio to read evidence from Didit Soetopo who did not appear in court.

Responding to the defense attorneys objects, Moegihardjo said that the objections would be noted and invited the prosecutor to read the testimony of Didit Soetopo. "If there is an objection from the defense we will note it" said Moegihardjo.

Witnesses evidence read

The same issue occurred in the questioning of Ken Budha Kusumandaru, Victor da Costa and Ign Putut Arintoko. The public prosecutor said that they would read the witnesses' testimony.

The request to read the testimony of the witnesses by the public prosecutor Aman Surbakti was granted by the presiding judge Soedadi. "We object that the testimony of the witnesses is only based on their BAPs" said lawyer Irianto Subiakto.

In the Central Jakarta State Court

Meanwhile, two witnesses from the Bogor [West Java - JB] Office of Social and Political Affairs in the case against Budiman Sudjatmiko told the judge that they know about the existence of a hand written letter written by Budiman 8 years ago [Budiman's first 'run-in' with the authorities was when he was still in high school; he was brought in for questioning by the intelligence body Bakorstanas after being reported by the school's headmaster for organising 'Marxist' discussion groups at school. Given his age and the fact that his activities were restricted to discussions, Bakorstanas took no action at that time - JB].

Yamin M Saleh, the head of the Bogor Office of Social and Political Affairs, said he had a discussion with Budiman in 1988 related to his activities when he was in Senior High School in Bogor.

His office, said Saleh, received a letter from the principle which in essence provided information on Budiman's activities which were considered to disturb other students by their discussion groups.

"In the discussion, Budiman showed a great interest in the teachings of Marx" said Saleh, he also added that Lenin and Tito were included in world figures admired by Budiman [In later years, Budiman used to regularly visit the Russian and Yugaslavian Embassies in Jakarta to borrow books on Lenin, Tito and others - JB].

Saleh emphasised that Budiman, liked to discuss plans to form a "Marx House" as a place to exchange their thoughts. The letter written in Budiman's handwriting to send to his friends, was the basis of Saleh's discussions [with Budiman - JB]. "In the letter there were many uses of the jargon "comrades in arms" and "salam red", said Saleh.

When the letter written by Budiman was accepted, Saleh was only able to show a photocopy of the letter. He did not bring the BAB at the time of the discussions with Budiman.

Budiman's lawyer, Luhut MP Pangaribuan stated his objections to the witness who only based his testimony on what he had heard from another person. Not from what he had heard or seen himself.

Budiman also stated an objection against the question of the witness. "In accordance with the spirit of the process of the trial which is cheap and effective, I request the judges consideration of the relevance of the witness which was presented" [he said - JB].

The accusations against me make an issue of my activities between 1995 and 1996 while the witness questioned me in 1998", said Budiman.

[Abridged translation from Kompas - JB]

Labour leader's bank account scrutinized in court

Far Eastern Economic Review - 27 February, 1997

Margot Cohen, Jakarta – The judge hunched forward eagerly as details of a bank statement were read aloud in open court. "What is the total amount of overseas aid?" he prodded the witness.

The bank account in question bore the name of Muchtar Pakpahan, the beleaguered Indonesian labour leader who stands accused of subversion in south Jakarta district court. And the witness, a Jakarta branch manager for the Amsterdam-based ABN Amro Bank, obligingly recited the amounts deposited in the account in 1995 and 1996 by trade unions and aid organizations in the Netherlands, Finland, Germany and the United States.

The February 3 testimony has provoked the latest burst of outrage in a trial targeting Pakpahan's speeches, writings and songs. Critics regard the trial as a witch-hunt aimed at crippling Indonesia's independent labour movement. While bank records often serve as evidence in corruption and embezzlement trials, this is the first time that the state has pressed for such financial disclosure in a political case. "This is a very bad precedent," says Mulya Lubis, chairman of the Centre for Human Rights Studies in Jakarta. "This can hamper the effectiveness of non governmental organizations."

Such disclosures also run the risk of eroding confidence in financial institutions. The Netherlands Trade Union Confederation, known as the FNV Holland's biggest union and one of Pakpahan's strongest supporters has turned up the heat on ABN Amro in letters and newspaper editorials. "We have very strong doubts that they were forced to provide the information by law," says FNV International Secretary Tom Etty. "Because they knew very well the character of the case and the dangers to Muchtar Pakpahan, they should have been very careful."

For its part, ABN Amro maintains that it had to comply with Indonesian banking laws, which authorize police and prosecutors to obtain bank records with written permission from the Indonesian Finance Ministry. The matter was discussed at the highest levels of bank management in Amsterdam. "We handled this carefully and we will always do as much as we can to limit the amount of information transferred to third parties," says ABN Amro spokesman Tanno Massar. "The confidentiality of customer information is one of the most important things in our organization."

Ironically, Pakpahan had switched his account to the Dutch bank after overseas contributions sent through an American bank mysteriously vanished in 1995. That account was listed under the name of Pakpahan's organization, the Indonesian Workers' Welfare Union, which has not been legally recognized by President Suharto's government. Lubis believes that the burden lies with the Finance Ministry to clarify the reasons for granting the prosecution's unorthodox request. But no answers are forthcoming from Indomen Saragih, the ministry's director of banking and financial services, other than that the permit complied with the law.

For some Indonesian activists, the startling public exposure of Pakpahan's bank account stirred memories of the telephone records revealed during the 1995 trial of Ahmad Taufik and Eko Maryadi, local journalists who are now serving three year jail terms for producing an unlicensed publication critical of the government. In that case, prosecutors obtained a computer printout of phone numbers and messages from a private paging service, which had promised to respect customer confidentiality.

Pakpahan's lawyers have made no secret of their dislike for Djazuli P. Sudibyo, the presiding member of the three judge panel hearing the case. On January 29 the lawyers petitioned to have Sudibyo removed, citing a number of irregularities since the trial began last December. For starters, Sudibyo has barred defence lawyers from posing direct questions. Instead, the judges rephrase the questions and address them to the witnesses. "Many of our questions have been twisted in a way that prevents us from developing our case," grouses defence lawyer Bambang Widjojanto.

The defence team also deplores the court's treatment of witnesses. For example, Sudibyo ordered prosecution witness Berar Fathia to be isolated in a separate room after her testimony contradicted previous statements given to the police. "Think about whether you're going to provide the real explanation... or whether you're going to make up a new story," the petition quotes the judge as saying. On another occasion, the petition quotes Sudibyo as telling Pakpahan: "Once again, if you talk too much I'm going to throw you out."

Neither the judges nor the Justice Department has responded formally to the petition. But during the subsequent court session on February 3, Sudibyo appeared slightly subdued. He did warn observers repeatedly not to cross their legs in court a posture deemed disrespectful. He also banished Pakpahan's teenage daughter from the courtroom on the grounds that she was underage although she had attended a previous session. And he insisted on having every ABN Amro transaction read into the record. Otherwise, he let the other two judges take the lead.

Observers contrast the histrionics in the Pakpahan case to the relatively smooth pace of the other subversion cases taking centre stage the prosecution of Budiman Sudjatmiko and 13 fellow adherents of the Democratic People's Party, a dissident group known as PRD that sought to recruit workers and students.

During the February 8 session of Budiman's trial, the prosecution produced a PRD letter requesting funds from Pakpahan's union. However, the subsequent testimony revealed more about secretarial inefficiency than any international conspiracy to bankroll subversive activity in Indonesia. "Was the letter answered?" the prosecutor, Mohammad Salim, asked a member of Pakpahan's union, Rekson Silaban. "No," came the reply.

Salim dismisses suggestions from defence lawyers that none of the 25 odd witnesses so far has provided evidence supporting the subversion charges. Most of the testimony has focused on legal activities such as protests before parliament and factory owners. "We will prove our case," he told the REVIEW.

One witness who has refused to appear is Bambang Widjojanto, director of the Indonesian Legal Aid Foundation, which provides legal support to the PRD defendants. If Bambang fails to testify in Budiman's case, he faces a possible five-year jail sentence. Bambang was also called to testify in Pakpahan's case, but declined on the grounds that he serves as the union chairman's lawyer.

Pakpahan's allies in the international trade-union movement are taking their case outside the courtroom. In early February workers from 17 unions demonstrated outside Indonesia's embassy in Washington. Further protests are planned at the New York and Los Angeles consulates. And thanks to some concerted lobbying, it looks like Pakpahan has become a Friend of Bill. "I share your sense of outrage over Indonesia's decision to reinstate Mr. Pakpahan's prior conviction and to bring new charges of subversion against him," President Bill Clinton wrote to an AFL CIO union leader on December 30. "I also share your concern that Indonesia's actions in this case demonstrate a pattern of disrespect for fundamental freedoms."

Of course, that might not mean much more than tea and sympathy. Clinton ended the letter with a reminder of America's "broader national security concerns" in maintaining ties with Indonesia.

'Pakpahan never uttered antigovt statements'

Jakarta Post - February 18, 1977

Jakarta – A prosecution witness told the court trying labor leader Muchtar Pakpahan yesterday that he had not heard Pakpahan utter any antigovernment statements between August 1995 anc! July 1996.

The witness, Tohap Simanungkalit, told the South Jakarta District Court, he never heard any of the statements alleged by Prosecutor R. Moekiat. When Pakpahan questioned Tohap, he asked whether the latter had ever heard him make the statement "Soeharto has lied too much. " Tohap said: "I never heard you make the statement."

Tohap, a deputy chairman of the Pakpahan-led Indonesian Prosperous Labor Union (SBSI), gave the same reply when Pakpahan asked him about other alleged antigovernment statements.

Pakpahan is accused of subversion, punishable by death, for allegedly making subversive statements between August 1995 and July 1996.

According to the indictment, Pakpahan's alleged statements include: "... (I refuse) to nominate Soeharto for 1998", "... Soeharto's administration has turned upside down the country's rule of law", "... (I) do not agree with the Armed Forces' dual function", and "revoke the five political laws." Tohap, the only witness to testify yesterday, was questioned by the court for almost four hours.

He told the court that Pakpahan's statements in an SBSI newsletter dated July 27 had never been released, as Pakpahan had requested.

The SBSI letter signed by Pakpahan, titled The Chronology of the Involvement of Hoodlums in the Takeover of the PDI Headquarters on Jl. Diponegoro 58, accused Soerjadi, hoodlums and the Armed Forces of forcibly taking over the headquarters of the Indonesian Democratic Party (PDI), controlled by supporters of Megawati Soekarnoputri, who Soerjadi had ousted in a government-sanctioned rebel congress in Medan on June 22.

Tohap told the court: "The letter was considered 'not to exist' after the SBSI central board refused to issue it."

Pakpahan was seemingly surprised by Tohap's testimony, saying: "I only knew of the situation just now. I thought the letter had been sent to the mass media," he told the court.

'Labor politics'

The trial, presided over by Judge Djazuli P. Sudibyo, resumed after 13 days off for the Idul Fitri holiday. Responding to Prosecutor R. Moekiat's question on SBSI activities, Tohap said SBSI was a labor organization involved in "labor politics".

"But, as an independent and democratic labor union, we set our sights on politics and defending laborers' rights. We are neither structurally nor by organization connected with any political party in Indonesia," he said. "Labor unions which do not step into labor politics are not labor unions at all, for they serve only their masters," Tohap said.

Pakpahan was accompanied yesterday by only one member of his seven-lawyer team, M. Luthfie Hakim, who again jousted with Djazuli.

The judge said "lawyers always protest", in response to Luthfie's protest that the judge had "repeated questions" which he said "wasted time", a move defended by the prosecutor.

Djazuli adjourned the trial until this Thursday because one of the three judges, Marsel Buchari, fell sick. He told the prosecutor to call on Tohap to reappear in court then.

Brussels-based group accuses Jakarta of suppressing union

Reuters - 17 February, 1997

Jakarta – The International Confederation of Free Trade Unions (ICFTU) yesterday said it had called on the United Nations human rights investigator to investigate the trial of an Indonesian independent labour union leader charged with subversion.

The Brussels-based trades union group said in a statement it had sent a letter to the UN special rapporteur on the independence of judges and lawyers, Param Cumaraswamy, asking him to look into the trial of Muchtar Pakpahan, head of the unrecognised Indonesian Labour Welfare Union.

"The ICFTU accuses the Indonesian government of using the courts to suppress the country's only independent trade union organisation," it said in a statement.

"The unprecedented move to call on the UN Rapporteur to observe the trial and report this to the March session in Geneva of the UN Commission of Human Rights, is in response to the 'exceptional nature and scope of irregularities surrounding the case'," said the statement.

Pakpahan, accused along with several others on a charge that carries the death penalty, was arrested in connection with riots in Jakarta on July 27. At least five people died in the riots, the worst in more than 20 years, which erupted after a police-backed takeover of the headquarters of the Indonesian Democratic Party to evict supporters of ousted PDI leader Megawati Sukarnoputri.

The ICFTU said it criticised what it called the "partial and hostile attitude" towards defence lawyers of presiding judge Jasuli Sudibyo.

"Judge Sudibyo does most of the questioning of the witnesses himself (and) often leads with questioning aimed at incriminating Pakpahan," said the statement.

"It is worth noting that the prosecutors have referred very little in court to the July 27 riots since they apparently cannot link Pakpahan to the violence," it added.

The statement also said: "All the evidence at our disposal suggests that Pakpahan's legal problems are only linked to his trade union activities and that the authorities are determined to keep him in detention at all costs."

Pakpahan's lawyer Lutfie Hakim said recently the authorities seemed to be preparing to expedite the proceedings and conclude the trial as soon as possible, before the general elections. Indonesia goes to the polls in May.

Pakpahan is being tried for statements he made in a book, speeches, news releases and a music cassette of workers' songs between mid-1995 and July last year.

Miscellaneous

Focus on military role, panel urges ABRI

Agence France Presse - February 26, 1997

Jakarta – The Indonesian armed forces (Abri) should reduce its non-defence roles and concentrate more on their defence duties to allow democracy to flourish, members of the state-run Indonesian Institute of Science were quoted as saying yesterday. The institute, which made public a report on the military's role on Monday, called for a gradual reduction of the military's role in socio-political affairs, the Antara news agency said.

The military is guaranteed 75 seats in the country's national assembly, in addition to 425 elected seats.

Antara said the military should move back from its current controlling nature in politics to a participatory role and then eventually take a backseat in the process.

The institute was asked in 1995 by President Suharto to write the report, said Mr Ikrar Nusa Bakti, a member of the institute's research team.

"This team of research is not anti-Abri and does not consider a civilian-military dichotomy," he said.

Under Indonesian laws, the military are accorded a role in the defence of the country, but also a role in the country's socio-political affairs. The latter role has seen active and retired officers holding key posts in the government, legislative and judicial sectors, as well as in business.

The institute also recommended that the military reduce control over political institutions and focus on poverty eradication and promotion of human rights. – AFP.

Islamic leader quits post in Jakarta Association

Straits Times - February 25, 1997

Susan Sim, Jakarta – The leader of Indonesia's second-largest Islamic organisation has resigned from his post in a Suharto-linked Muslim association amidst talk that he had angered the President with his criticism of the government's handling of the Busang gold find and the activities of American mining company Freeport.

Sources told The Straits Times that at a special plenary meeting yesterday that lasted almost five hours, the Association of Indonesian Muslim Intellectuals (ICMI) accepted Mr Amien Rais' resignation as chairman of its board of experts.

Mr Rais, the leader of Indonesia's most progressive Islamic organisation, the 28-million-strong Muhammadiyah movement, and a founder member of the six-year-old ICMI, had in the last few weeks repeatedly criticised President Suharto's New Order government and its economic policies.

In an recent interview with a local news magazine, he had described the government's concessions towards Freeport McMoRan Copper and Gold, the largest American investor in the country with extensive operations in Irian Jaya, as "unconstitutional" because they benefited only the company and not Indonesians.

He was similarly critical of the government's original decision to allow foreign investors majority stakes in a gold mining project in East Kalimantan.

In a deal finalised last week, Indonesian interests emerged with a 40 per cent stake in a joint venture with Canadian company Bre-X and Freeport.

Sources close to Mr Rais told The Straits Times last week that he was interviewed by officials from the Attorney-General's office in Yogyakarta, where he is a professor at the University of Gajah Madah, soon after the interview was published.

On February 8, the Islamic scholar was summoned to a meeting in Jakarta with ICMI chairman, Research and Technology Minister B. J. Habibie.

The sources said that the minister, a close Suharto confidant, held an hour-long meeting with him, where Mr Rais was given to understand that his comments had upset the palace greatly and that given his position in ICMI, his comments might be misunderstood as reflecting the group's views.

Mr Rais then offered to step down from the council and tendered his resignation two days later, the sources said.

Although news of his ICMI resignation leaked last week, the Muhammadiyah leader refuted them, insisting that it was "impossible" for him to resign. On Saturday, he again denied rumours that Prof Habibie had demanded his resignation.

The ICMI leader told reporters that the resignation was not politically motivated nor connected to the Muslim scholar's criticism of the government. Mr Rais, he said, had wanted to resign as chairman of the ICMI board of experts since last year because the panel had not been productive.

Asked to comment on speculation that other ICMI activists close to Mr Rais would also be forced to resign, Prof Habibie was quoted by Antara national news agency as saying: "No one has called for, ordered or requested the resignation of Amien Rais, Parni Hadi, Adi Sasono and Jimly Asshidique. What happened was that Amien Rais resigned because of technical reasons."

Mr Sasono is the group's secretary-general, Mr Parni is the chief editor of the Republika daily, the group's newspaper, while Mr Asshidique is an official in the Ministry of Education and Mr Sasono's rival at the 1995 congress. Their positions are believed to be secure.

Analysts said that given Mr Rais' increasingly strident comments about the government, his departure from the ICMI council would "save" the group from being seen as an opposition body.

Muslim leader forced out for radical views

South China Morning Post - February 26, 1997

Joe Leahy, Jakarta – One of the country's top Muslim leaders has been ejected from the influential Suharto-backed Association of Indonesian Muslim Intellectuals because of his outspokenness, analysts said.

Amien Rais has denied that his "resignation" from the association, known as ICMI, was connected with his recent attacks on the Government over the level of foreign investment in two mining projects.

Instead, he blamed his heavy workload as leader of the Muhammadiyah, a Muslim organisation claiming 25 million members.

But most analysts believe Mr Rais was forced out by the association's chairman, Research and Technology Minister Yusuf Habibie.

Mr Habibie, a protege of President Suharto, was appointed chairman of ICMI by Mr Suharto after it was formed in 1990.

ICMI is widely seen as an attempt by Mr Suharto to enlist the support of the vast Muslim majority.

"He has resigned from ICMI not by his own free will but because of his views," said Syamsuddin Haris, a political analyst.

"He was forced out by the Habibie group who want to bring ICMI closer to the Government."

Mr Rais, a staunch nationalist, has been a fierce critic of the level of foreign ownership in a giant copper and gold mine in Irian Jaya operated by United States-based Freeport Indonesia.

He has also been outspoken on the high levels of foreign involvement in the proposed Busang II gold mine in West Kalimantan.

Mr Suharto has emerged as one of the main players in the race to develop the mine, possibly the largest gold deposit in the world to be discovered this century.

Mr Syamsuddin said Mr Rais had also been outspoken on the alleged "Christianisation" of Indonesia - the growing economic strength of the Chinese minority.

[Rais is also one of several of Islamic leaders who has made a number of very critical statements on the recent spate of riots in Indonesia. Rais was quoted in the Jakarta daily Kompas on January 6 as saying: "the source of danger, however, is not SARA (Suku, agama, ras dan antar golongan - Tribe, religion, race and inter-group) itself, but economic injustice which has been going on for a long time, making it no longer bearable for the people. This injustice is due to three ever-worsening chronic ills, namely corruption, a widening social gap, and opportunism among state officials. I think we should not take the incidents lightly because they have become really serious". In an interview with Tempo interactive on January 7, he referred to Indonesian society as being "like dry grass ready to ignite". Habibie, who is clearly at odds with such a view, has refuted that such issues have anything to do with the "unrest". On February 7, he was reported as saying: "Indonesia must be vigilant of maneuvers by the international communist network which want's to play one side off against the other with issues of SARA along with human rights to split the nation." - JB]

Army Commander: No change in the set up before election

Antara - February 18, 1997

Jakarta – The Indonesian Army Commander Gen R Hartono has reaffirmed there will be no changes in the set up of the regional military territory commanders before the upcoming general election.

"There is no regional military commander entering retirement age before the general election, so there won't be any change of the set up," Hartono told journalists here Monday.

However, he admitted that if there is a commander making a mistake, he should be changed. "But not one has made a mistake or needs to be changed right now." Rumours on a plan to change the set up in the army has been raised among the public recently, considering some of them have been holding the position quite long while some others are approaching retirement age. On inquiries about any possible change of the post he has been holding since February 1995, Hartono said curtly: "It's up to the President."