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ASIET Net News 34 – September 1-7, 1997
Reuters - September 3, 1997
David Brough, Lisbon – South Africa would welcome the
release of jailed Timorese rebel leader Xanana Gusmao before a
state visit by Indonesian President Suharto in November, South
Africa's ambassador to Portugal Kingsley Makubela said.
But the ambassador said South Africa's hopes for the release of
Gusmao should not be seen as pressure on Indonesia or as a pre -
condition for the visit by President Suharto, who was expected to
discuss bilateral issues including trade.
"I hope that President Suharto will make a gesture (to free
Gusmao) before he goes to South Africa," Ambassador Makubela told
the Foreign Correspondents' Club in Lisbon on Tuesday night.
"The release of Gusmao and other political prisoners will show
the intention of Indonesia to give good faith to talks on East
Timor," he added.
Ambassador Makubela said South Africa had received no reply yet
to President Nelson Mandela's letter to President Suharto in mid
- July asking for Gusmao's release.
Mandela, who has offered to host peace talks between Indonesia
and rebels in the former Portuguese colony of East Timor, met
Gusmao during a visit to Indonesia in July and discussed his case
with President Suharto.
Gusmao was jailed for 20 years in 1992 for resisting Indonesian
rule. Portugal abandoned its former Asian colony in 1974.
Indonesia, which includes the western half of Timor island,
invaded it the following year and annexed it in 1976 in a move
never recognised by the United Nations.
Ambassador Makubela said that he expected President Mandela to
use his good relations with all the parties to encourage them to
talk to each other.
"If the Indonesians don't release Gusmao, we will be able to tell
the world we did our best in this matter," he said.
Last month the Portuguese government called in Ambassador
Makubela and asked him to explain a decision by Pretoria to ask
the Portuguese ambassador in South Africa to return home.
Portuguese ambassador Vasco Valente was asked to withdraw over
the leaking of a misdirected letter from Mandela to Suharto
asking for Gusmao's release.
Makubela denied local media reports that Indonesia had applied
pressure on the South African government to press for the
withdrawal of the Portuguese ambassador.
Reuters - September 4, 1997
Jakarta – East Timor governor Abilio Soares, who once
escaped an assassination attempt by suspected rebels in the
troubled former Portuguese colony, was re - elected to office on
Thursday, a local legislator said.
"He was re - elected today by the (local) legislative council.
Ninety percent of the votes were for Abilio," Forentino Sarmento,
a legislator from the ruling Golkar party, told Reuterss by
telephone from the territory's capital Dili.
He said the council, comprising legislators from Golkar, the
United Development Party and the Indonesian Democratic Party, met
on Thursday to elect a governor for a five - year term.
"Soares has been working hard to develop East Timor, even though
in the first two years there was a boycott of his political and
development programmes," Sarmento said.
Soares, whose re - election will need final approval from
President Suharto, was challenged by two candidates.
The governor escaped an assassination attempt in 1995 when up to
15 shots were fired at a group of motorcyclists he was with
during a rally in East Timor.
Indonesia still faces small bands of guerrillas who oppose its
rule in the territory, which it invaded in 1975 and annexed the
following year in a move not recognised by the United Nations.
Human rights
Social unrest
Environment/land disputes
Arms/armed forces
International relations
Economy and investment
Miscellaneous
East Timor
South Africa hopes Gusmao freed before Suharto trip
East Timor governor elected for second term
Timorese political party rejects "Puerto Rico" solution
Lusa - September 2, 1997
Macau – East Timor's political party Timorese Democratic Union (UDT) rejected on Tuesday in "absolut and vehemently" the recent statements by guerrilla leader Konis Santana who said the territory's resistance could accept the relationship Puerto Rico has with the United States as a model for future ties between the former Portuguese colony and Indonesia.
In a statement sent to Lusa - Macau, UDT's Supreme Political Council, commenting on the message by Santana broadcast on the Portuguese television last month, said also it "profoundly repudiates the insinuation" that Portugal is not "interested in a fast solution for the East Timor problem".
UDT said Portugal, through President Jorge Sampaio "has been firm in its defense of the right of self - determination of the East Timorese people", and that the government, through Foreign Minister Jaime Gama, "has been competent and tirelessly sought a fair and honest solution for the Timor's problem without disregarding the aspirations and legitimate interests of the Timorese".
In a message recorded in the mountains of East Timor and broadcast on Portuguese television on August 22, Santana said the Falintil (armed wing of the East Timorese resistance movement) could accept the transformation of East Timor into a state associate with Indonesia, similar to the relationship Puerto Rico has with the United States.
Puerto Rico has almost total autonomy, with only foreign affairs and defence under the responsability of the United States.
Indonesia invaded East Timor in 1975 and annexed it one year later in a move not recognised by the United Nations that still regards Portugal as the territory's administering power.
Portugal has demanded that East Timor be given the right of self -- determination.
Radio Australia - September 1, 1997
An Indonesian court has jailed four East Timorese men to two months and 15 days each for forcibly entering the Bulgarian embassy in Jakarta to seek asylum.
Local reports say the court found the four guilty of using violence against law officers.
The Judge said the men scaled the fence of the Bulgarian embassy on the 27th of June and, in the process, brushed aside two policemen who tried to restrain them.
135 East Timorese have left for Portugal since September 1993 after having gained protection inside foreign embassies in Jakarta, however the four were handed to the police two hours later.
Indonesia has been dealing with an East Timorese resistence movement since it invaded the former Portuguese colony of in 1975.
It annexed East Timor in 1976 in a move NOT recognised by the international community.
The Times (UK) - August 30, 1997
David Watts, Jakarta – Britain is proposing a new move in the decades - old East Timor dispute. In an attempt to bring Indonesia out of isolation over its illegal occupation of the tiny Far Eastern territory, Robin Cook, the Foreign Secretary, proposed yesterday that a European Union "troika" should carry out a fact - finding mission.
The group, comprising senior representatives of the EU presidency, would be the first senior diplomats to travel there since Indonesian troops fought to seize control in 1975. Mr Cook's announcement was accompanied by a wider initiative to foster human rights in Indonesia in general as part of Britain's "moral" foreign policy in the Third World. The Foreign Secretary held "very frank" talks with his Indonesian counterpart on Jakarta's human rights record and offered a six - point aid package to improve matters.
The EU troika's mission will be to try to find a way out of the deadlock that has bedevilled negotiations between Indonesia and its former colonial power, Portugal, for years.
Indonesia has refused to yield the territory despite years of international pressure. Its takeover came with British and American connivance at a time when communism was felt to be dominating East Asia. The Indonesians invaded only months after the fall of Saigon, believing that East Timor itself would become communist.
Jakarta has steadfastly refused a plebiscite among the 800,000 inhabitants and says that Portugal has no right to negotiate East Timor's future because it irresponsibly abandoned the territory after 500 years of colonial exploitation at the time of the Portuguese revolution.
Ali Alatas, the Indonesan Foreign Minister, welcomed Mr Cook's initiative last night, saying that Indonesia had been trying for years to get senior diplomats to travel there to see the reality for themselves. Britain and other countries have so far sent only junior diplomats to East Timor, feeling that sending a more senior person would amount to recognition of Indonesia's right to the territory.
Mr Cook said the six -- point British aid package included offering material support to the National Human Rights Commission which, although set up by the State, has criticised what it considers to be abuses.
Similar help would be given to the Legal Aid Foundation, which advises poor defendants, and would offer 20 scholarships in Britain for the study of good government. British police would also give lectures to Indonesian law enforcement officers on ways of dealing with public order problems.
Today Britain will announce new measures to crack down on paedophiles and the child sex trade in the Philippines. Mr Cook, who arrived in Manila last night, is to unveil the measures after visiting a child refuge.
They are expected to focus on co - operation between the British and Philippines Governments and police forces, with support for child aid organisations.
| Human rights |
Tapol - September 6, 1997
One of the most disappointing developments during the visit to Indonesia last month of the British Foreign Secretary, Robin Cook, was the cancellation of his meeting with ailing independent trade union leader, Muchtar Pakpahan. Had this taken place, this would have been the only public display of support for a victim of human rights violations by the Indonesian regime.
Before leaving London for his visit to four South East Asian countries, Foreign Secretary Robin Cook had told The Observer [24 August] that he would be meeting Muchtar Pakpahan, the leader of the independent trade union, the SBSI, who has been on trial for subversion since last December. Pakpahan's trial was adjourned in March, since when Pakpahan has been under treatment in hospital. Cook's meeting with Pakpahan was to have taken place at 5 pm on Friday, 30 August but it was cancelled on the insistence of the Indonesian Government.
The day before, on Thursday 29 August, Pakpahan had been summoned to attend the first court hearing in his trial since the adjournment in March but during the hearing, he had a severe attack of vertigo and the hearing was suspended after 15 minutes. The British embassy were certainly aware of this. They also knew that Pakpahan's request to be allowed to travel abroad for treatment that is unavailable in Indonesia has been rejected by the Indonesian authorities. This should have made Robin Cook all the more determined to meet the labour leader.
The meeting appears to have been cancelled at short notice and Pakpahan himself was not informed of the cancellation. Journalists in Jakarta, including those accompanying Cook, knew about the planned meeting and were present at the hospital hoping to cover the event, only to be told that it had been cancelled.
TAPOL has written to Robin Cook protesting at his failure to insist on meeting Muchtar Pakpahan despite Indonesian objections.
Tapol - September 6, 1997
During his visit to Indonesia on 29-30 August 1997, Foreign Secretary Robin Cook held a meeting with representatives of four Indonesian human rights NGOs. The meeting was extremely brief. Originally, it was to have lasted half an hour but this was reduced to fifteen minutes. Even so, Robin Cook arrived late. The four who attended the meeting were: Bambang Widjojanto, director of the legal aid foundation YLBHI, Goenawan Muhamad, former edited of the banned weekly TEMPO and director of ISAI, Tohap Simanungkalit, acting chairperson of the independent trade union SBSI, and Coki Naipospos of the political reform organisation, PIJAR. The meeting was limited to four because of the brevity of the meeting.
Although human rights was billed as one of the key issues to be raised by Robin Cook during his visit to Indonesia, his meeting with the human rights NGOs was hardly mentioned at all in the publicity associated with the visit.
The following is a report of the meeting by Coki Naipospos of PIJAR:
Robin Cook started by asking two questions: what are the worst human rights violations in Indonesia at present and what can the British Government do to help bring about an improvement in the human rights situation in Indonesia.
Goenawan began by saying that the lack of freedom of association is the most serious violation, while Bambang and Tohap spoke about the new Labour Law shortly to be enacted which is much worse than current labour legislation. Coki stressed that there were a great number of human rights violations which he would have liked to raise but he focused on the many 1965 political prisoners who have spent more than 30 years in prison. He then went on to say that he thought it would be best to concentrate on what the British Government ought to be doing.
Cook than spoke about his six - point human rights initiative the contents of which have been reported widely in the press: supporting the National Human Rights Commission with books and computers, giving computers to the YLBHI, the provision of scholarships for Indonesians to study human rights in the UK, and giving training to members of the Indonesian police force.
Commenting on the British plan to train the Indonesian police, Goenawan said that this was useless because the police are part of the apparatus of violence. There is not a shred of evidence to show that training will result in any change in the behaviour of this apparatus of violence, he said. He pointed out that US training of Indonesian police officers had not made any difference. Jokingly he asked why the British government didn't consider giving NGOs training on how to conduct demonstrations. Cook then explained the British Government's criteria for the export of arms to Indonesia and other countries. His said the government would implement tighter criteria on the sale of military equipment to authoritarian governments, but he did not explain what the criteria were, only that arms exports would be reviewed if the recipient government was proven to have used them to repress the population. When he asked for comments, Goenawan and Coki said that the Indonesian people would gain nothing at all from the sale of military equipment to Indonesia and stressed that arms sales to Indonesia should be halted.
The NGO representatives also stressed the importance of the British Government giving support to civil society and the NGOs in Indonesia as a way of balancing the relations between the Indonesian and British governments. Cook did not comment on this, probably because earlier in the day Alatas had issued a warning to Britain not to give any assistance to 'illegal groups'.
After the meeting between Cook and Ali Alatas earlier that day, Indonesian journalists had pressed Robin Cook hard to explain why he was prepared to have a meeting with organisations like the SBSI and PIJAR which are regarded by the Indonesian government as illegal.
South China Morning Post - September 4, 1997
Jakarta – The wife of murdered journalist Fuad Syarifuddin yesterday testified that police were holding the wrong man.
"I clearly saw the face of the person who came to my house at the eve of my husband's murder, and the face was very different from that of Iwik's," Marsiyem, the key witness in the trial of the man accused of killing her husband, was quoted by the Republika daily as telling a district court in Yogyakarta, central Java.
Ms Marsiyem was testifying at the trial of Dwi Sumaji, also known as Iwik, who has been accused of planning and carrying out the murder of Syarifruddin. The crime carries a maximum penalty of death.
The widow, who repeatedly broke down in tears, said the face and the build of the man she saw that night were "completely different" from Sumaji's.
"It is impossible that I can forget the face of my husband's killer," she told the court.
Syarifruddin died in August 1996 after three days in intensive care. He failed to regain consciousness after he was attacked and beaten by two strangers who visited his home.
The 33 - year - old journalist had been writing about controversial land cases and corruption issues involving senior local officials. His colleagues said he had received death threats over the phone about his articles.
The National Commission on Human Rights has said police violated procedures in investigating the case and arresting Sumaji, giving him large amounts of alcohol at a nearby resort hotel and offering him a prostitute before arresting him. Sumaji said the police offered him money and a better job if he admitted to the killing.
Public attention on the case intensified after Captain Suko Hariyanto of the Yogyakarta police, who had been responsible for the murder investigation, was arrested in July for allegedly being involved in a drug ring.
[Fuad Muhammad Syafruddin (better known as Udin) was a journalist with the Yogyakarta based newspaper Bernas who at the time of his murder, was investigating a corruption case involving the regent of Bantul (about 10 kilometers from Yogyakarta), Sri Rosa Sudarmo. Despite the fact that Sudarmo was implicated in the murder, he was never questioned by police. Instead Dwi Sumaji, an employee of an advertising company, was plied with drink, provided with a prostitute, and promised money by police officials in return for confessing to Udin's murder. On at least three occasions courts had rejected the police case against Sumaji for lack of evidence - James Balowski.]
| Social unrest |
Antara - September 1, 1997
Garut – An outraged group of people torched a police station in Pameungpeuk, Garut, some 200 km south of Jakarta, on Sunday evening.
Head of Priangan police Colonel Sukamto could not give the details on the incident, saying it is still being probed.
Some local people who were at the police station said they did not know the motive of the group.
Witnesses said a number of angry people from Mancagahar village, some 2.5 km from the site, gathered the Pameungpeuk police station at around 19:30, local time, and suddenly threw cocktail bombs to the station.
Deputy Police Chief Lt Gen Luthfi Dahlan in a press conference in Jakarta Monday said the incident was instigated by a rumor on the murder of a local low - ranking police officer by a colleague.
"The rumor is of course untrue. The truth is that he (the officer) was killed accidentally during a routine shooting exercise last Friday (Aug 28)," Dahlan explained.
The officer was killed when a bullet exploded in the barrel.
Apparently, he did not realize that an unexploded bullet remained in the barrel when he was reloading his riffle.
Dahlan expressed his deep concern on the incident and pledged to investigate it thoroughly.
He said he would also launch a study on why people are easily provoked by issues now.
No casualty had been reported from the incident, however Dahlan declined to comment on how many people have been detained following it. He said he is still waiting for the reports from Garut and stressed that the investigation is still underway. Meanwhile, West Java Police Chief Maj Gen Chaeruddin Ismail in Bandung on Monday told the press that so far five suspects have been arrested.
| Environment/land disputes |
Reuters - September 5, 1997
Jakarta – Indonesian Environment Minister Sarwono Kusumaatmadja has identified three local firms that cleared land for agriculture through illegal burning, the Jakarta Post newspaper reported on Friday.
Kusumaatamadja told a parliamentary commission on Thursday that satellite data had been used to identify PT Musimas in Medan, North Sumatra, PT Torganda in Riau province and PT Surya Barokah in the Waringin Timor district of Central Kalimantan as offenders.
He could not say what action would be taken against the companies.
"We just investigate companies' activities and report them to related ministries, such as the ministry of agriculture and the ministry of forestry, which have the authority to take action against them," he was quoted by the Jakarta Post as saying.
Companies illegally burning forest cover to set up plantations have been identified as the main cause of a haze engulfing large parts of Sumatra and Kalimantan islands, which has affected neighbouring Singapore, Brunei and Malaysia.
The official Antara news agency quoted the minister as saying he was astonished by the actions of the companies.
"This is a disaster. Threats of sanctions without real action have proven ineffective," he said.
Forestry Minister Djamluddin Soeryohadikusumo told a another parliamentary commission on Thursday his ministry had no authority to fight pollution caused by the burning of forests.
"We hope the Environment Minister can take action against the polluter companies under the environment law," he said.
The Jakarta Post quoted Kusumaatmadja as saying poor coordination among ministries was hampering the handling of the haze problem. "It means it is sometimes too late to do anything about the forest burning," he said.
The newspaper quoted a director of PT Musim Mas as denying his company was responsible for the fires as his plantations had been in the planting stage in the last few weeks.
No comments were available from the other companies.
"Forest burning will destroy our seedlings," he said. Under Indonesian law those who burn forests without proper permission can be punished by a maximum jail sentence of 10 years or a fine of 100 million rupiah ($33,000)
Worried by thickening smoke haze that is spreading over large chunks of Southeast Asia, Singapore on Thursday told the ill and elderly to take it easy and stay indoors.
The warning accompanied news that the Pollutant Standards Index (PSI), which measures air quality, had hit 99 at 7.00 a.m. (2300 GMT Wednesday). The index classifies a level of 101 and above as unhealthy.
Voice of America - September 4, 1997
The Indonesian government has threatened to expose the names of logging and plantation companies that are lighting fires to clear land on the islands of Kalimantan and Sumatra. Jenny Grant reports from Jakarta, smoke from the fires is a health hazard affecting neighboring Malaysia and Singapore.
State minister of environment Sarwono Kusumaatmadja has accused plantation company bosses of lighting illegal fires like this one in the central Kalimantan town of Palangkaraya.
Mr. Sarwono said plantation owners are threatening public health and trying to shift blame for the smoke and fires onto small - scale farmers.
The minister estimated 20 - million people in Indonesia and abroad are facing respiratory problems due to the smoke, which has spread to Singapore and parts of Malaysia. Mr. Sarwono says unless the companies stop clearing land by burning he will expose their names.
Plantation and logging companies, wanting to open up new tracts of land, have burned ground scrub and trees, setting fire to underground peat that smolders for weeks. Many small - scale farmers are subcontracted by the big companies to open up the new land for lucrative palm oil and rubber plantations.
Other farmers, who are poorly informed about the severity of the drought, have also torched their plots believing the dry season will soon end and allow them to plant new crops of rice, corn, cassava, peanuts, and soybeans. climate experts say the drought will not break until late december.
Mr. Sarwono says the fires caused by slash and burn techniques have destroyed 100 - thousand hectares of productive land since September.
The Indonesian government has banned the lighting of new fires.
Environment laws provide up to 16 - years in jail for lighting illegal fires, but Jakarta has yet to imprison anyone for commercial burning.
Mulyadi – from the Indonesian Forum for the Environment, in Central Kalimantan – says the government must do more to control the fires and to respect the environment. he says the plantation owners are to blame for the smoke hanging over the huge island.
Several airports in central Kalimantan and Sumatra have been forced to temporarily close their runways because of poor visibility.
More than two - thousand - 500 Indonesian soldiers have been deployed to fight fires around Pontianak in west Kalimantan.
The minister for transmigration, Siswono Yudohusodo, says a lack of coordination between government departments is heightening the smoke crisis.
The fires have not reached 1982 levels, when three - million hectares of land in kalimantan and sumatra were set ablaze, causing an estimated 300 - million - dollars damage.
Straits Times - September 4, 1997
Unlike the pervasive haze in 1994 which trapped Singapore in a suffocating day - long twilight, the island has so far been spared the worst of this year's seasonal nuisance. Road and air visibility has not been impaired too badly, and those with respiratory complaints have not reported anything untoward. It can get worse, of course, at least until the onset of the north - east monsoon season in November, when the rains perform their self - cleansing of the atmosphere. But Malaysia has been having it bad, as it has in most years, because it lies smack in the path of prevailing winds. These blasts carrying the residue of country - sized burning forests in Indonesia have made such a muck of the air over the Klang Valley, which has Kuala Lumpur at its centre, that the federal authorities have declared a national disaster. Car - driving may be controlled as a result. Apart from car emissions, the valley's extensive discharge of pollutants from industries and construction means that Malaysia has had an air quality problem to begin with. But the Indonesian forest fires which reach their peak during the dry months from July to October have acted as the coup de grace.
An obvious question arises: are Singapore and Malaysia to endure the annual haze as an act of nature? As obviously, no. Aside from wind direction, which is predictable though by no means controllable except by adapting to it, spontaneous combustion in dry forests is unheard of. There has to be a spark. That is, the problem is man - made. Plantation companies' large - scale clearing of forests by burning, as well as farmers' slash and burn methods of cultivation, have been the source of the heartburn. This is where desirable solutions – such as banning what is called controlled burning, or making it unnecessary – appear to run into a stonewall of vested interests and cultural habits. Forestry products are Indonesia's second - largest non - oil revenue - earner after textiles. It is conceded that any prohibitions have to be weighed against that sector's importance to the economy. As for farmers, they have for ages been practising slash - and - burn to grow food crops and for habitation, a habit unlikely to be modernised anytime soon in that sprawling archipelago. Another follow - on question: Let things be, then? No!
It should be acknowledged here that recent actions by the Indonesian government make it plain that it is doing something concrete about the scourge. What the results will be is left to be seen. This week, the Forestry Ministry warned plantation companies of legal action if they continue to clear land by burning. Five firms in Riau are being investigated; prosecution may follow. As ministry estimates show that plantation firms account for 80 per cent of forest fires, zeroing in on this sector is the right move. But warnings are one thing, enforcement another. This is where passage by Parliament last month of a Bill increasing penalties for environmental pollution, including forest burning, is noteworthy. The old law prescribes a 10 - year jail sentence and a 100 million rupiah (S$50,000) fine as the maximum. These are now 15 years and 250 million rupiah, respectively.
How Indonesia adjusts its legal censure to the scale of an offence is for it to decide in the light of variable factors. These would include the impact on the economy and labour, relations with neighbouring countries and environmental health (its own and the region's). But it is clear that only the toughest exercise of legal restraint will bring an improvement in the situation. Taking on polluters head - on is getting to the heart of the matter. The authorities deserve to succeed as the implications will extend far beyond the country's borders, extensive though they are. Joint actions with Singapore, Malaysia and Brunei in fighting forest fires – such as via provision of satellite pictures and meteorological data or water - bombing raging fires – can accomplish only so much. A lasting solution lies solely in Indonesia's hands. This time next year, the haze will be back – of that there is not a doubt. One should be cheering if it gets lighter in succeeding years until nobody talks about it any more.
Straits Times - September 3, 1997
Derwin Pereira, Jakarta – The Indonesian government, threatening legal action, has blamed plantation firms for the country's forest fires which have caused haze to envelope the region.
In comments reflecting increasing concern here that carelessness was largely to blame for the forest fires to hit Indonesia's largest provinces, Forestry Minister Syarifudin Baharsyah said such fires were caused by plantations resorting to controlled burning to clear land.
"Plantations caused some 80 per cent of the forest fires," he said, adding that the remaining 20 per cent were caused by traditional farming and slash - and - burn harvesting.
Media Indonesia, an Indonesian - language daily, yesterday quoted Mr Baharsyah as saying that the government had banned the use of controlled burning for land - clearing purposes. "We will resort to using the law to curb those responsible for causing the fires," he warned. Indonesian laws now provide up to 16 years in jail for violators.
He added, however, that the government had yet to take action against any plantation firm.
His comments came after the government accused five large - scale plantation companies in Riau last week of setting forest fires to clear land for new plantations. Local officials are investigating the dossiers of the five firms, before taking their case to the court. Environment ministry officials have stressed repeatedly that carelessness was largely to blame for the spread of forest fires rather than current climatic conditions.
Indonesia is bracing itself for its worst drought in half a century and together with the illegal actions of some plantation firms, the government has warned that the country could face its worst fires in 15 years if measures are not taken to combat them. Mr Baharsyah said the fires in the Indonesian provinces of Sumatra and Kalimantan have so far destroyed 108,700 hectares of forest up to July this year.
But Environment Minister Sarwono Kusumaatmadja noted recently that fires have destroyed nearly 300,000 ha of forests in Sumatra and Kalimantan this year.
He said that fires destroyed 161,000 ha of land in 1994, and about about 3,000 ha in 1995 and last year.
Indonesia experienced its worst forest fires in 1982 when three million hectares of land were destroyed, causing an estimated US$300 million (S$453 million) in damage.
Besides vowing to take strict action against companies responsible for the fires, the Indonesian government is trying to create rain artificially if the current dry season persists until October.
Neighbouring countries like Malaysia and Singapore are not immune from the problem. Haze and smoke have blanketed the region, causing disruption in the air and sea traffic and giving rise to health concerns.
Fires in Central and West Kalimantan have routinely caused haze problems in Malaysia while forest fires in the Sumatran provinces of Riau and Jambi have clouded skies over Singapore.
| Arms/armed forces |
Antara - September 4, 1997
Jakarta – Indonesia has agreed to purchase 12 Sukhoi 30K jetfighters and 8 MI - 17 - IV helicopters from Russia at a total cost of US$ 500 million, while Russia has agreed to purchase from Indonesia 40 kinds of commodities, also worth US$ 500 million, to be paid in cash under a counter - purchase agreement.
The aircraft will be delivered in stages until 2000, State Minister for Development Planning Ginandjar Kartasasmita told newsmen after meeting with President Soeharto at his residence at Jalan Cendana here Thursday.
Kartasasmita said the memorandum of understanding on the purchase of the Russian aircraft was signed last Aug 29 while the purchasing contract will be signed on Oct 29.
He said Indonesia will pay a 20 percent downpayment after the purchasing contract is signed.
Under an agreement reached during Kartasasmita's recent visit to Moscow, Russia will buy from Indonesia various products worth US$ 500 million.
He said the Russians earlier rejected Indonesia's proposal to apply a full counter - purchase scheme but they later agreed after a 24 - hour postponement of the negotiations.
Kartasasmita cited as an example the counter - purchase agreements between Russia and Malaysia and between Russia and the Philippines, under which they agreed to apply a 30 percent counter - purchase scheme with Malaysia and a 60 percent counter - purchase scheme with the Philippines.
On Indonesia's proposal for an offset scheme, Kartasasmita just said, "No. There is no such scheme." Previously, BJ Habibie, president director of the national aircraft industry, PT IPTN, said the aircraft industry wants to have an offset scheme worth 30 percent of the total cost of the Russian aircraft.
Kartasasmita said that by applying the counter - purchase scheme, Indonesian products will not only penetrate the Russian market but also those of other countries grouped in the former Soviet Union.
He said the Russians have also invited the Indonesian Air Force to send a number of officers to be trained as cosmonauts.
Agence France Presse - August 30, 1997
London – Britain will soon approve a range of defence equipment contracts with Indonesia on the understanding they will be used to protect the country's oil and gas industry, a press report said here Saturday.
The Financial Times said the equipment was mainly intended for use in the giant Natuna gasfield, which falls in an area of the South China sea disputed by China but which continues to attract huge Western and Asian investment.
It said the move was expected to involve the approval in the coming weeks of dozens of export licences for military equipment, including air defence systems and artillery.
This was in addition to the controversial sale of 16 Hawk fighters and Scorpion tanks which Britain recently decided not to block.
British officials told the FT they believed it would be possible to defend further sales to Indonesia despite continuing allegations from human rights groups that British defence equipment has been used by the Jakarta regime to suppress political opposition.
Sales of military hardware dominate Britain's exports to Indonesia, totalling 700 million dollars in 1996, or more than half the overall figure of 1.342 billion dollars.
Britain is the second largest investor in the country, behind Japan, although projections for 1997 indicate it will slip to third place behind Taiwan.
British Foreign Secretary Robin Cook, currently on a tour of South East Asia, on Friday announced measures of practical support for human rights in Indonesia and for efforts to seek a settlement in the troubled territory of East Timor.
Cook also told a press conference in Jakarta that London's new criteria for its arms sales, linked to human rights criteria, will be "applied even - handedly to all countries and are not targeted on any one country".
The Foreign Secretary came from Malaysia on Thursday and was due to travel on to Manila and Singapore.
| International relations |
Straits Times - August 30, 1997
Susan Sim, Jakarta – Britain yesterday unveiled a six - point initiative to support human rights in Indonesia, a move welcomed cautiously by Jakarta as more constructive than mere rhetoric and hectoring over East Timor.
"I want to develop a positive agenda for human rights in Indonesia," visiting British Foreign Secretary Robin Cook announced at a press conference.
"No one country should lecture another on its duty. But all members of the UN must work together to ensure that universal standards are observed. It is in that spirit of offering a constructive partnership with Indonesia that I announce today a six - point plan to assist human rights in Indonesia," he added.
The six points covered "practical support" for the work of the National Human Rights Commission, set up by President Suharto in 1993, and other non - government organisations (NGOs) working in the field of human rights, a programme of contacts and training involving British police and other experts, and a new focus on human rights and good governance in British scholarships for Indonesians in Britain.
His Indonesian counterpart, Mr Ali Alatas, noting that some of the proposals had still to be discussed, said: "In general, I can say that efforts in concrete cooperation between two countries, especially on human rights, are welcomed."
Speaking at a separate press conference, he said Jakarta did not expect London to offer funds to illegal groups.
Mr Cook, who arrived here on Thursday, had said that he would also discuss the proposals with the human rights commission and representatives of six NGOs, including some that Jakarta considers illegal.
In his statement, he said while respect for human rights was a major theme of his first visit to Jakarta, he had also discussed the strengthening of commercial ties and cooperation on environmental protection in his meetings with Mr Suharto and Mr Alatas yesterday.
Britain was "by a long chalk" a leading European investor in Indonesia and its exports had increased by 1 - 1/2 times in the last five years. An Indonesia - Britain Business Council would be launched in a month's time to foster economic partnership, he noted.
But with Mr Cook's four - nation tour of South - east Asia billed by Whitehall as proof of the Labour government's determination to pursue a more ethical foreign policy, human rights was the only issue raised at his press conference.
The talks with Indonesian leaders had taken place in "a spirit of cooperation, not confrontation", he said, while indicating that no shift in positions had occured on either side.
On East Timor, he was proposing that the European Union, which Britain would preside over from January, should send a team of ambassadors to visit the troubled province.
He had telephoned East Timor Catholic Bishop and Nobel laureate Carlos Ximenes Felipe Belo on Thursday night and was told that the military presence there was "hardening", he added.
Underlying Britain's full support for the United Nations - sponsored dialogue on the former Portuguese colony, he said resolving the long - lasting conflict was not only of immediate benefit to East Timorese but of value to Indonesia too.
"This country is the fourth - largest in the world and the largest Muslim country. It is entitled to be centre stage in international institutions, such as the UN, but it will always be more difficult for the rest of the world to accord it that role so long as Indonesia is in breach of Security Council resolutions on East Timor," he said.
Six-point proposal
Continuing support for the Indonesian National Human Rights Commission. This includes training and funds for computers so it can develop and maintain its database on individual cases of concern. Support and funds for the Legal Aid Foundation, a non - government organisation, to maintain databases. 20 scholarships each year to students whose areas of study relate to human rights and good governance. Funding for three Indonesians to go to Oxford University to attend a course on International Human Rights Law next year. Lectures by British police experts on modern policing methods to take place in Indonesia.
| Economy and investment |
Reuters - September 5, 1997
Sarah Davison, Hong Kong – Concern is mounting that Indonesian corporations will soon hit a debt wall despite Thursday's rate cut, worsening the outlook for the nation once credited with Southeast Asia's most credible currency policy.
`It's hard to get good information but I think there is a generalised expectation that there is going to be a fair amount of pain in the corporate sector in Indonesia," said Lynn Exton, fixed income analyst at Merrill Lynch.
Indonesia is grabbing more and more attention as a potential debt crisis candidate from among the victims of Southeast Asia's financial markets meltdown.
And, following in Thailand's footsteps, Indonesia's debt crisis was seen as being private, not public, in nature.
Indonesia's vulnerability to Southeast Asia's economic meltdown is ironic given its initial immunity from currency contagion ignited by sudden devaluations in Thailand and the Philippines in early July.
For days, the Indonesian rupiah remained steady, with the central bank widening its trading band and carefully avoiding the havoc spreading through the region. But soon rates were rising and the rupiah falling as the crisis spread throughout Southeast Asia and beyond.
High interest rates to support the rupiah caught Indonesian corporates by surprise, forcing them to hedge foreign denominated liabilities after years of inaction thanks to the government's policy of steady rupiah depreciation.
Indonesia won further recognition for sound economic management on Thursday, when it lifted restrictions on foreign investment in its stock market and cut interest rates to counter persistent market uncertainty.
But the country still remains among the region's most vulnerable to an economic meltdown because its unhedged, foreign denominated debt position is so huge.
Specific information is hard to come by in a region renowned for poor disclosure, but the Indonesian corporates are believed to have borrowed far more in foreign denominated currency than those in the Philippines and Malaysia.
In an odd twist of events, foreign investors appear to feel reasonably confident about the Philippines, once the sick man of Asia but now something of a safe haven thanks to its experience with debt restructuring.
Malaysia does not seem to have that much foreign denominated debt outstanding, said Exton.
And the situation in Thailand, recognised as the most vulnerable Southeast Asian economy and the catalyst for the currency havoc now roiling the entire region, has become much clearer after the International Monetary Fund's involvement.
`I would say Indonesia is in much worse shape because the corporate sector there has probably been generally unhedged in terms of FX (foreign exchange) exposure, and probably has been quite hit by the combination of the devaluation of the currency and very tight liquidity in the financial sector," said Exton.
Timing has now become the issue, with some foreign analysts worrying about another external shock that could send corporates waiting for rates to drop helter - skelter into bankruptcy.
`I think it'll happen soon," said Eric Nickerson, currency analyst at Bank of America. "The worrying thing is the extent to which markets remain volatile, people will not hedge...which means it'll linger. Any other shock to the system, maybe an external one (such as a U.S. rate increase), and they'll get whammoed again."
Reuters - September 3, 1997
K.T. Arasu, Jakarta – Indonesia unveiled a package of measures on Wednesday to prevent the world's fourth most populous country from plunging into financial crisis amid regional currency turbulence.
`To prevent the currency turmoil from leading to an economic crisis, Indonesia needs to take credible pro - active measures that will anticipate future problems," Finance Minister Mar'ie Muhammad told a news conference.
Measures ranged from steps to boost the stock market to a review in state budgets and projects.
Mar'ie scrapped limits on foreign purchases of new shares in a bid to restore life to the stock market, which has dropped 30 percent since early August.
`In order to stimulate the stock market, the 49 percent limitation for foreign investors to buy IPO (initial public offering) shares...will be abolished," he said.
He said tight liquidity in the money market would be eased prudently, over time, with interest rates being reduced gradually.
He said the rupiah currency was still fluctuating because of regional and global pressures.
`However, with God's blessings, market confidence in the rupiah has started to show positive signs," he said.
Unlike other currencies, the depreciation of the Indonesian rupiah did not exhaust national foreign exchange reserves, he said, adding the recent free - float of the currency was aimed at countering speculation against it.
`The main objective is to place the rupiah in solid footing towards its new equilibrium," he said, adding the central bank would intervene in the foreign exchange market if necessary.
He gave no preferred trading range for the rupiah.
The rupiah has depreciated some 30 percent since January following fierce offshore attacks on the currency and a rush by local companies to hedge their foreign borrowings.
Mar'ie said government expenditure would be slashed to compensate for declining revenues due to a slowdown in business, in order to prevent the budget running into the red.
`Government domestic revenue, in particular net tax revenue, will experience a substantial reduction. Government expenditure will have to be adjusted to compensate for declining revenues so that a budget deficit can be avoided.
`As a consequence of a smaller budget, some government projects will have to be postponed or rescheduled," he said, adding that details would be worked out by relevant ministers.
He said the private sector, which had powered the country's steady growth over the past decade, had also to set priorities for its projects and select those which could be postponed.
`Efforts to increase exports should be considered as a first priority," he said, adding the government would take concrete steps to boost exports.
He said the government would continue with its economic deregulation, and import tariff reduction.
Measures would be implemented to eliminate constraints in economic activity and causes of what he called "the high cost economy."
Mar'ie said that in a bid to slow growth of imports, sales taxes on products not considered essential for development or public needs would be raised. He gave no details.
He said all state projects including those which were not part of the current budget would be reviewed, especially those with high import content.
He said the government would assist solvent banks that faced temporary liquidity problems, adding: "Banks that are not solvent will be encouraged to merge with solvent banks or should be acquired by solvent banks."
If this failed to materialise, insolvent banks would be liquidated, he added.
Asiaweek - August 31, 1997
Tim Healy and Keith Loveard, Jakarta – These are perplexing times in Jakarta. First, the currency is safe; then it drops 20% against the U.S. dollar in just a few weeks. President Suharto speaks expansively about building a 95 - km bridge over the Straits of Malacca connecting Sumatra and peninsular Malaysia. But rumors swirl about potential cutbacks in mega - projects such as the Indonesian national car, which is being built in South Korea by the president's son, Hutomo Mandala Putra (Tommy) Suharto. A senior cabinet minister talks about the need to dismantle one of the nation's most visible monopolies – control over wheat imports. Not long after, he admits that fellow ministers and the president himself may not support the idea.
A certain amount of confusion is always present in Indonesia's government – coordinating a burgeoning bureaucracy that serves 200 million people in the middle of a long -- term economic expansion is not easy. But the latest economic difficulties highlight divisions that might otherwise have gone unnoticed. The debates range from narrow to broad: what impact will an inflated overnight lending rate, protection against currency attacks, have on long -- term interest levels? How will an increasing gap between rich and poor affect presidential elections next year?
It was not long ago, as the Indonesian economy steamed ahead, that such questions seemed remote. Even when the Thai baht came under heavy pressure from speculators, Indonesia was seen to be safe. One reason: at 3.6% of GDP, the nation's current - account deficit last year was less than half of Thailand's. That perception began to change in early July. Having successfully beaten down the baht, speculators turned their attention further south. The Indonesian government responded by raising overnight lending rates and widening the band within which the rupiah traded before it would intervene. But by the middle of August, these measures were not enough. On Aug. 14, after spending $1.5 billion defending the rupiah, the government announced it would let its currency float – tantamount to devaluation.
Late evening is not part of Jakarta's normal business day. But on the night the currency was floated, office lights across the city burned into the small hours. Not everyone was thinking clearly. As one consultant put it: "People with degrees in accounting were adding up two and two wrong." By the time the sun came up, overnight money could be borrowed for a cool 100% interest rate, which strangled liquidity. Rates for one - month certificates of deposit from Bank Indonesia, soared from less than 12% to 30%.
In such numbers can the real significance of the nation's crisis be measured. High short - term rates mean Indonesia's many small banks are often paying more for funds than they receive back from borrowers. Last week, Bank Danamon, Indonesia's second - largest private bank, warned that if short - term rates remained at 30%, even larger banks would suffer. Some expect the high rates will be around for six months, though Gemala Group CEO Sofyan Wanandi says he expects they will ease by the end of September.
Mindful that all the uncertainty raises the possibility of bank runs, some banks have requested 24 hours notice for any withdrawals above $25,000 – in some cases, $5,000. And not just banks need to be concerned; 60% of Indonesia's $110 billion in external debt is owed by the private sector. Says one tycoon of businessmen once cocky about their successful overseas borrowing: "Now they're panicking trying to find ways to pay for it."
If nothing else, the currency crisis has focused Indonesian minds on their economic problems. Saleh Afiff, co - ordinating minister for Economics, Finance and Industry and Development Supervision, suggested the government treat the crisis as an opportunity to dismantle powerful monopolies. He said the first to go should be the Bureau of Logistics (Bulog), which controls wheat imports. But the words had barely left his lips before he spoke of potential obstacles: "There are ministers who disagree."
Afiff, normally a quiet presence in cabinet meetings, was following a tried and true tradition in recent Jakarta history: push reform and structural change when the economy is down. After the oil shock of the 1980s and again in the early part of this decade after the economy overheated, Indonesia deregulated. Speculation now is over whether the government will actually slow or cancel Suharto - family projects.
Only days before the rupiah crisis hit, Bank Internasional Indonesia joined a $690 million loan syndication for Tommy Suharto's Timor national car project. "Whether a project is commercially feasible or not is one question," said the bank's president - director, Indra Widjaja. "But you still have to consider the value of national pride." Suharto's second daughter, Siti Hediati Harijadi Prabowo, is expected to play a major role in building the proposed bridge to Malaysia. High - profile projects like Technology Minister B.J. Habibie's 100 - seat jet could be jeopardized by a turn toward fiscal austerity. However, both Habibie and the president's son insist their pet plans are safe. "People are protecting their turf and jockeying for position," says Mohammad Sadli, a former minister and a respected economist.
But don't lose sight of the forest. The currency problem has ramifications for roughly 20 - million middle class Indonesians, many of whom have only begun to realize dreams of a materially better life. Interest rates on home mortgages are now at 30%. "I've been too frightened to add up what it's going to cost me," says a geologist with oil monopoly Pertamina. Her family lives on a monthly budget of less than $1,000 and paid – even before the interest - rate rise – $284 a month for a small cottage on the outskirts of Jakarta. The economics aren't crushing, she admits, but a big interest increase would be an uncomfortable squeeze. "When I was a kid my family was poor but so was everyone else," she says. "Now the rich and poor are very far apart."
Such sentiment resonates loudly – especially considering that critical presidential elections are due in March. "We must make sure that if there have to be victims, they come from all sectors of society," says a government official. Speculators, at least, seem aware of the danger. In fact, it was the perception among traders that Indonesia was politically unstable that may have convinced them to attack the rupiah in the first place. "The positive economic fundamentals [in Indonesia] don't quite compensate for the political risks," says an analyst in Singapore.
Nevertheless, the seeds for a comeback may already be sown. Exporters should eventually benefit from the weaker rupiah, which makes their products more competitive. In the short run, however, SocGen - Crosby Securities economist Neil Saker says the nation is likely to see a slight worsening in its current account next year because of the increased cost of imports. Low - end manufacturers of footwear and textiles are in good competitive situations. On the other hand, high - tech manufacturers who must import newly expensive components from abroad are not likely to see the same benefit.
Two days after the de facto devaluation, just prior to Indonesia's Aug. 17 National Day, Suharto spoke about moderating expectations. That was just days before he said Indonesia would push ahead with plans to build the world's longest cable - span bridge. "Our determination to accelerate development must be accompanied by wisdom," he said. How his own wisdom will balance the costs and benefits of projects like his son's national car are likely to go a long way in determining whether the current currency crisis is remembered as merely a blip, a roadblock or a defining moment that opened the way to significant change.
| Miscellaneous |
South China Morning Post - September 5, 1997
Jenny Grant, Jakarta – A little - known politician has nominated herself as a presidential candidate to run against President Suharto in elections next March.
Berar Fathia, 43, a former member of the Indonesian Democracy Party (PDI), yesterday said she had enough support to run as a candidate.
"I have support to be president and I want to test the national constitution. I will compete with Mr Suharto at the MPR session," she said.
The 1,000 - member Peoples' Consultative Assembly (MPR) meets in March to elect a new president and deputy and formulate state policy for the next five - year period.
Mrs Fathia has named controversial author Wimanjaya Liotohe her running mate for vice - president.
Mr Liotohe's banned works, including First Sin, accuse Mr Suharto of controlling an authoritarian state and the Indonesian military of torturing civilians.
"This is serious, very serious... I am doing this with statesmanship," said Mrs Fathia, who is lobbying political parties, institutions and MPs to support her candidacy.
She also nominated herself as a presidential candidate in 1992 but dropped out of the race without a word.
"In 1992 I nominated myself because I did not agree with the condition of the PDI, but now I have support from other groups and have been nominated," she said.
She is backed by two non - government organisations, one of which she heads. Observers estimate the two groups have no more than 100 supporters.
Outspoken former parliamentarian Sri Bintang Pamungkas nominated himself as a presidential candidate last year.
He is currently serving a 34 - month jail sentence for insulting Mr Suharto while on a speaking tour in Germany. Mr Suharto has been in power for nearly 30 years and most observers believe he will run for another five - year term. His re - election in March is a formality once he has signalled to his key players he will run again.
An aide to opposition politician Megawati Sukarnoputri said yesterday she had not been informed of a decision by foreign correspondents in Singapore to cancel an invitation for a speaking engagement.
Agence France Presse - September 3, 1997
Singapore – The Foreign Correspondents Association (FCA) here said Wednesday it had cancelled a planned forum with Indonesian opposition leader Megawati Sukarnoputri at the request of Singapore authorities.
A high - ranking official of Singapore's ministry of information and the arts (MITA) contacted the FCA and conveyed a formal request that the group withdraw an invitation for Megawati to address the organisation in August.
The FCA executive committee asked for a meeting with the official, who discussed the issue with them.
"The committee subsequently considered the government's request and the various issues involved, and voted not to hold the lecture as originally planned," the committee said in a memorandum to members.
FCA members said Singapore's request may have been prompted by concern that Indonesia would be upset if Singapore became a venue for a forum critical of the Indonesian government.
In previous incidents, Indonesia had complained to the Philippines and Malaysia about conferences held in their capitals on the controversial issue of East Timor, a former Portuguese colony forcibly annexed by Indonesia in the mid - 1970s.
Asked for a reaction to the FCA memorandum, a MITA spokesman confirmed the request was made for the FCA to withdraw the invitation to Megawati.
"The FCA was free to decide if they should withdraw the invitation. The FCA agreed to do so. We respect and appreciate the FCA's decision on this matter."
"We also understand that Megawati has visited Singapore previously on private visits. She is welcome to continue to do so. MITA has nothing further to add to this issue," the spokesman added.
Associated Press - September 3, 1997
Laurinda Keys, Singapore – A foreign correspondent's association confirmed Wednesday that it had canceled a planned speech by an Indonesian opposition leader at the request of Singapore's government.
The move against Megawati Sukarnoputi marked the first time the Singapore government has objected to a guest of the Foreign Correspondents Association, said Darren McDermott of the group's executive committee.
The committee voted 4 - 3 last month to withdraw an invitation to Megawati to speak at an association luncheon, tentatively planned for August, sources told The Associated Press on condition of anonymity.
"The committee... considered the government's request and the various issues involved, and voted not to hold the lecture as originally planned," the press group said in a statement.
Megawati declined to comment when reached by the AP in Indonesia. She is the daughter of the late President Sukarno, who lost power in 1966 when the current president, Suharto, instituted a military - dominated government that sharply restricts opposition political activity.
Asked if the incident would have a chilling effect on the press group's choice of speakers, McDermott said, "No, I don't think so. I think we'll continue to search for interesting and dynamic speakers and deal with any problems that... may arise as they do. But we're not going to censor ourselves from inviting people because of this."
At a meeting with the executive committee, the official was asked "whether there was an implied threat... to our positions here as reporters... and he said, `No,"' said McDermott.
"He said he felt the government saw it as a sensitive issue, and while reporters based in Singapore are free to call her or visit her for an interview, her coming here to give a public speech might be seen as problematic," McDermott added.
Government officials refused comment Wednesday. It is believed that she wanted to speak in Singapore because of the high number of international journalists based here.
The Singapore government, which promotes the city - state as a regional media and communications base, is a member, with Indonesia, of the Association of Southeast Asian Nations, which has a policy of non - interference in members' internal affairs.
Far Eastern Economic Review - September 4, 1997
John McBeth, Jakarta – President Suharto has a host of family concerns riding on Indonesia's first broadcasting law. Between them, the president's eldest daughter, Siti Hardijanti "Tutut" Rukmana, son Bambang Trihatmodjo and Bambang's wife, Halimah, own chunks of four of the country's five private television channels. That's a considerable stake in an industry that now generates $1 billion in advertising revenue annually.
For that reason, it was assumed everything was cut and dried when parliament passed the broadcasting law last December and sent it to Suharto for his signature and promulgation. But, inexplicably, the legislation languished on the president's desk for seven months. And then, in the first such move in Indonesia's half - century of independence, Suharto sent it back for revision.
Parliament was shocked by the president's July move, while legal experts were stunned. "The president is in a very strong position, but in my opinion he can't send back a law which has already been passed by parliament," says constitutional expert Sri Soemantri, rector of Jakarta's August 17 University. The possibility of a constitutional crisis was defused when House Speaker Wahono agreed to reconsider the bill. But the affair was another sign of the two - steps - forward, one - step - back trend that has begun to cloud what many believe are the sunset days of the Suharto presidency.
On August 25, recently installed Information Minister Hartono appeared before parliament to flesh out a July 11 letter Suharto had sent to the house. In the letter, the president had described parts of the new law as "technically difficult to implement." Among the changes the president now wants, and which the private stations had pressed for during seven months of parliamentary hearings, are:
An extension of operating licences from five to 10 years, which executives say is vital for an industry which plans a long way ahead.
The scrapping of a stipulation that limits stations to covering no more than 50% of Indonesia's 200 million population. The restriction was meant to allow for the growth of regional television stations.
The elimination of a provision that would allow state - run TVRI to run public - service advertising. Private channels complain that they already have to pay 12% of their gross revenue to support TVRI's advertising - free programming.
However, family influence clearly has its limits. Suharto suggested no change to a costly stipulation in the new law that all foreign non - English - language programmes must be dubbed into English with Indonesian subtitles.
Nor, apparently, will the administration seek a relaxation of punitive measures, ranging from administrative sanctions to prison terms of up to seven years, for violators of the broadcasting rules. The law's proposal that a government - controlled monitoring body be established was also left untouched, and the industry appears to have failed to win the right to raise capital from foreign sources.
What Hartono did not explain to parliament was why the system of deliberation and consensus which guides the legislative process broke down on this occasion. Suharto's initials were on the draft when it was sent to parliament in March 1996, and legislators say they conferred every step of the way with then Information Minister and ruling Golkar Party Chairman Harmoko.
"We decided it all with the government, that's why it's so puzzling," says H.B. Mabun, vice - chairman of the commission that deliberated the law. "All our discussions were reported to the State Secretariat."
Television executives, who have been operating under temporary government guidelines, are equally baffled by the fate of the bill. "Who in Indonesia knows what Suharto is thinking?" asks one.
When the bill finally made it through parliament last December, Golkar Chairman Harmoko "was very proud of the outcome," recalls Mabun. "He said it was very important to the nation." Now politicians are wondering whether the legislation had anything to do with Harmoko being shunted from the Information Ministry to a newly created "special affairs" portfolio in the wake of the May elections.
Private broadcasters certainly weren't happy with the initial version of the bill. Though they were resigned to the fact that the law had been passed, says the industry executive, "we wanted to see if we could get some flexibility into implementing regulations drawn up by the executive branch." The job of representing the industry went to Televisi Pendidikan Indonesia, or TPI. Its owner, Tutut, is the most trusted of Suharto's children.
Tutut and Bambang have majority shareholdings in TPI and Rajawali Citra Televisi Indonesia, respectively, while Halimah Trihatmodjo and businessman Henry Pribadi each control a 22.5% stake in Surya Citra Televisi. Bambang also has an interest in Indosiar Visual Mandiri, owned by the well - connected Salim Group. The fifth private channel, Andalas - Teve, is part of the Bakrie Group.
Hartono didn't give parliament a deadline for the law's revision, but for constitutional expert Sri Soemantri, that's not the point. "There's no procedure for parliament to reconsider the legislation because it's already a law," he points out. "This is the first time this has happened and I hope it will be the last time."