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ASIET NetNews Number 1 - January 12-18, 1998
East TimorForm a council of political leaders Situation demands... Youth organisations reject Suharto National Dialogue to take place Friday With a new president, the storm will pass Indonesia students march for Megawati
Political/economic crisisSix East Timorese to be tried over bombs East Timorese arrested and tortured Timorese spend night in French Embassy Four Timorese found dead in latest violence Two guerrillas shot dead, say army
Arms/armed forcesSuharto surrenders to IMF Hundreds protest high food Indonesians seize chance to break silence Timber tycoon cuts 1,400 staff Publishers facing close-down Soeharto pledges more reform Megawati's challenge Suharto family will be hit if reforms pushed Amien, Gus Dur back Megawati Rich blamed for hoarding food Megawati bid more symbolic than serious Chinese fear mobs in volatile climate Heat builds on Indonesia's Suharto to quit
Secretary Cohen: IMET will be continued
| Democratic struggle |
I. Background
Bloody Saturday, July 27, 1996, gave us a valuable lesson. This incident leads us to a number of conclusions based on our country's political situation and the direction of its development. If viewed from the "energy" of the resistance shown by the people, it appears that we must again adjust the view which says the Indonesian people are apathetic or apolitical in the face of what is done to them. Actually, under conditions of depoliticisation and repression, the people keep alive a resistance which is large and has a strong spirit in maintaining itself.
We must be just in drawing conclusions when assessing the forms of struggle which have been used by the people, such as riots and other violent actions. Mass spontaneous resistance such as these are the way the people have been forced to defend themselves, after all peaceful methods (formal-legal and political) have failed - and even consumed their own victims. We must try too to understand why this mass resistance is often focussed on the wrong targets, is often easy to break and is so often scattered and divided.
These weaknesses are primarily caused by the lack of a strong political leadership from the opposition - who can show the correct political path to the people.
The riots which have occurred reflect the loss of the people's trust in the government (political development). This was proven after the July 27 incident (which resulted in the jailing of pro-democracy political activists from SBSI, PUDI and the PRD (1) and intensive repression of the pro-democracy movement), when there was repeated explosions of rioting in other places, despite the government repeatedly threatening and acting decisively against the rioters.
We can imagine that at such a time, when the people are resisting on a mass scale if there was a leader who was courageous and prepared to stand together with the people with demands which address the real needs of the people, certainly what occurred and its results would be different, and it would not result in so many [material] losses and victims. Just look at how easily the people riot although it is without the involvement of the democratic opposition groups. But historically, the people's spontaneous resistance has not resulted in meaningful change (although that is what the people really want) aside from anarchy or the people falling away from political consciousness, which in its turn will endanger the aspirations of the people's struggle itself.
For more than 30 years the consciousness of the Indonesian people has been in a process of depoliticisation; harsh economic exploitation, intimidation and political violence. A situation like this will create the conditions for the emergence quasi- consciousness which is very easily manipulated by the wrong demands. So that it is as if issues which have the characteristic of SARA (2) represent the real consciousness of the people. While in reality this is the breaking through of the limits of the people's patience and tolerance in bearing suffering, so that they use any kind of "motion" which is available. Once again this creates the conditions for the need of a political leadership which is prepared to stand up, represent and consistently struggle for the interests of the people.
The level of trust of the people in the ability of the government to improve the quality of the life of the people and protect them has declined dramatically. There is data that shows a 30% leakage of funds along with revelations of cases of large scale corruption and collusion, added to again with discriminative crony business practices, further reveals this crisis of mistrust. Furthermore, Indonesia is now facing a monetary crisis who's impact is being felt strongly with an increase in the level of unemployment which is a result of having to pay to safeguard [the country's] economic life (read the safety of company capital). The total level of unemployment, after counting the hidden unemployment of those who work less than 35 hours per week, reaches 40% of a work force of 90 million. IMF projections on the growth of the Indonesian economy for 1998 are around 2%, while the rate of inflation is estimated to reach between 7.5% to 8% which will result in a real economic growth of minus 6%.
This is a heavy burden which must be shouldered by the people who have yet to enjoy the benefits of development and in fact has become a factor in the comparative superiority to attract investors, by keeping the wage component of the cost of production at only 2%.
All of this is a time bomb because of the errors made from the beginning by the government in regulating Indonesia's economic and political life. Small explosions such occurred in Situbondo, Tasikmalaya, Pontianak, Sanggau Ledo and other places (3) on a smaller scale, are a logical consequence of the workings of the economic and political system. These explosions will become more frequent if [government policy] is not directed toward the political demands and actions of the people.
Intuitively the people can imagine the changes they desire, but because of the factor of political repression and the channels for their aspirations blocked, this causes the people to be blind to the political actions they must take. So that in the end the people have to speak through riots which can explode unexpectedly, because they can be started by any incident, even from a Dangdut [music] arena such as in Sampang, Madura. So that the energy of the people who desire this change is not thrown away uselessly and can result in political reform and an improvement in the social conditions [we] must work on ways to unite them under the umbrella of one national, political leadership, which for the moment we can refer to as the Council for the for Salvation of the People's Sovereignty (Dewan Penyelamat Kedaulatan Rakyat). This umbrella for struggle will be an association of leaders who have the trust of society, who come from a number of political spectrums and who are prepared to stand up and voice the demands of the people and be consistent in struggling for them. All social leaders who are concerned about what has befallen this country must jointly promise to resolve all of the problems which are now faced by the people. Because of this, these leaders must be given public authority to give instructions, gather people together along with making protests when the government acts arbitrarily and forbid the people from taking action if it will later damage the people themselves. This political leadership must have a program which truly addresses the problems faced by the people, so that the people can easily follow their requests. Politically this will mean raising the bargaining position of the people in confronting damaging government policy. This is a test for the moral responsibility of the leaders, the consistency of the people to struggle for their demands and at the same time as a step to save the future of this country.
II. Council for the for Salvation of the People's Sovereignty
Represents leaders from a number of political forces within society, which can be represented by political figures with influence or are leaders of organisations. All of the members of this council have [a responsibility] to uphold the agenda of struggle of all of the network of organisations which join it.
A. Task and functions
B. Program of struggleWork out an economic and political program which is orientated to improving the quality of the life the country and nation which is forward looking; Call for actions to be taken by the people to struggle for change through all channels of communication and means of information distribution possessed by the people's political leaders on a national level; Take the program of struggle and the practical steps to all networks of institutions and organisations which have the same commitment; Organise platforms in the framework of opening the space for political education which is effective and injects political consciousness and raises the political participation of the people. This can be done through the mass media, through a curriculum of training which is in accordance with the need to respond to the development of the objective conditions of social life; Direct the political actions of the people toward an effort to carrying out change, beginning with the smallest steps, by the formation of places for the people's aspirations as a creation of the people's sovereignty to control the implementation of government life.
C. Basic programA succession and democratic mechanisms to elect a new president and vice president; An investigation in to the wealth of government officials and their families; The withdrawal of the five repressive political laws (4); A change in the system of government to make it possible for the political parties to enter the cabinet; Wipe out corruption, collusion and the conglomerates, toward an economic system which is clean and for the people; Reduce the social and political role of the armed forces and the abolition of the Dual Function (5) of the armed forces. The military's social and political role be carried out through a military representative in the MPR (6) in a composition that is just and proportional; A reduction in prices of essential items; Upholding the basic principles of human rights in accordance with the Universal Declaration of Human Rights.
Nur Hikmah - General Secretary KNPDBroaden the participation (support) of [social] figures and demand moral responsibility of leaders/figures to actively join in thinking about and playing an active role in carrying out improvements is all aspects of social life; Campaign openly and broadly for the formation of a national political leadership which can lead the political and economic reform; Launch a petition or support action for the national political leadership and give a full mandate to take actions which are considered to be needed; Put pressure on the government to make policies as worked out by the Council which are supported by the broad united strength of the people and direct it to political levels which are effective to raise the bargaining position of the people; 5. Encourage the people to form coalitions or bodies to independently monitor policies with the task of controlling and organising a social life which is democratic and clean as the creation of a people's sovereignty at the practical level.
Translators notes:
[Translated by James Balowski]SBSI: Serikat Buruh Sejahtra Indonesia, Indonesian Trade Union for Prosperity. PUDI: Partai Uni Demokrasi Indonesia, Indonesian United Democratic Party. PRD: Partai Rakyat Demokratik, Peoples Democratic Party. SARA: Suku, agama, ras dan antar golongan, An acronym meaning ethnic, religious, racial and inter-group conflicts. A loosely defined term with negative connotations, it is frequently used by the regime to describe conflicts which are deemed to threaten "national unity" or "stability" and are at odds with the state ideology of Pancasila and the concept of "unity in diversity". Situbondo, Tasikmalaya, Pontianak and Sanggau Ledo are locations where there was mass rioting in 1996 and 1997. The five repressive political laws were passed in 1985. They allow only three recognised political parties; ban party activity from villages and small towns; allow for the government appointment of 575 non-elected members (75 representing the military) to the People's Consultative Assembly (MPR); impose a single state-defined ideology on all social, political and cultural organisations; and gives the state the right to intervene in the internal affairs of organisations. Dwi Fungsi refers to an official state doctrine that the Armed Forces (ABRI) has a dual function, namely military defence of the nation and a political role in all civilian affairs. MPR: Mejalis Permusyawaratan Rakyat, People's Consultative Assembly. The highest legislative body in the country with 1,000 members, 425 of whom are elected with the remainder being appointed by the president. It meets once every five years (usually around a year after the general elections) to hear an outgoing report from the president, enact the Broad Outlines of State Policy (Garis Besar Haluan Negara, GBHN) and to vote on nominations for the president and vice-president. The next session of the MPR will be held in March 1998.
[The following is a translation of an interview with Nur Hikmah the General Secretary of the National Committee for Democratic Struggle (Komite Nasional Perjuangan Demokrasi, KNPD)]
Not long ago, KNPD held a conference at the offices of the Indonesian Legal Aid Foundation (YLBHI) in Jakarta. The conference was attended by a number of figures such as Sukmawati Soekarnoputri, HJ Princen, Supomo (ex-minister of labour), Dr. Ciptaning (deputy chair of the pro-Megawati Indonesian Democratic Party Tangerang branch) along with Wartono Karyo Utomo, father of People's Democratic Party chair, Budiman Sudjatmiko.
During this conference KNPD called on leaders of social organisations and pro- democracy figures to form a Council for the for Salvation of the People's Sovereignty (Dewan Penyelamat Kedaulatan Rakyat). KNPD also produced 100 thousand leaflets which were given to them which were distributed to gather the support of the people.
What follows is an interview with Nur Hikmah about this initiative.
Question: What is this Council for the Salvation of the People's Sovereignty?
Answer: The name Council for the for Salvation of the People's Sovereignty (DPKR), was suggested by KNPD. Basically, KNPD called on all pro-democratic political leaders and well known figures to sit at the same table to take over from the government in order to handle the economic crisis which is becoming ever more critical. The council will seek solutions to resolve the crisis in Indonesia. Because of this, the council must obtain the people's trust.
Question: You mean that [the people] no longer trust the government?
Answer: The people's trust in the government has already disappeared. This has been proven by the government statements which are no longer heeded by the people. The government asks the people not to panic, but they continue to panic. This means that the people no longer trust the government, yes? This means that their is a crisis of trust. The government has already admitted this, that there is a crisis of trust.
Nah, why did this crisis of trust emerge? Because the government has shown that it cannot handle the situation. A number of steps were taken to increase the value of the Rupiah, but its value continued to fall. Its impact, the economic crisis became even worse, people's lives became even more miserable: many [workers] have been sacked, prices have increased, essential goods have become even more scares, and the like.
Nah, because of this crisis of trust, these political leaders must appear to have the people's trust. If they no longer believe in the government, we must make the people believe in these political leaders. In order to get their trust, these political leaders must be united and take over from the government in handling the crisis. These leaders know, that the pro-democracy movement is rich with figures who are trusted by the people such as Amin Rais, Gus Dur, Megawati, Sukmawati, Sri Bintang, Ali Sadikin, Budiman Sudjatmiko, Muchtar Pakpahan, Gunawan Muhammad, Deliar Noer, Romo Sandyawan (1) and scores of others. Because of this, we call on them to be united, as soon as possible, so that the people can quickly realise that they have something they can rely on. Right now the people are in a state of panic, because they no longer believe in the government but pro-democratic figures remain silent.
Question: Which figures were called on by KNPD to unite?
Answer: 77 names and organisations, including those which I have already mentioned. Although is still open to anyone to suggest others. Yesterday additional names appeared. This is even better. What is clear, is that essentially, these figures and organisations must reflect a representation of the different parts of the nation; covering all religious figures, political parties, social organisations, student organisation, intellectuals, artists, professionals, local leaders and the like.
Question: Is it possible that they can be united at one table? Is it not true that within the [different] pro-democracy groups – we have to admit this – sometimes there are differences?
Answer: What is clear is that this is what the [current] situation demands. The situation is becoming worse and worse, all those who are for democracy must work together to recapture the trust of the people. If there are differences, these must be put aside. The question of democracy is of joint concern, because of this it must be prioritised.
Question: But aren't there those who feel they are more important, feel that they have more supporters, so that it is not natural to work together with small organisations or figures who are less popular, and so on?
Answer: Problems like this are not relevant in a situation like this. In struggling for democracy, all well know figures or their organisations must work together with other groups. It is not possible to struggle alone. History has proved this, that when ever there has been [real] change, it is certain that those it involved many groups and many figures. There is no such thing as a "one man show"!
Question: But we know that among the different pro-democratic groups there are a variety of lines, there are those who are radical and those who are moderate. What about this [problem]?
Answer: I think that those who are moderate and those who are radical have a place for themselves in the struggle. When we have already agreed to sit at the same table, we must jointly [agree to] firmly hold on to the platform that we choose. So those who are radical and those who are moderate may not pressure each other, all will be limited by the platform which we will determine jointly.
Question: Does this have a relationship with the succession?
Answer: Everyone is now already certain, that the succession has already become a necessity. Whether it be Amin Rais or Megawati, they have said openly that the succession must happen. So it is clear, this council's formation is in the framework of facilitating the succession in a democratic manner.
Question: Earlier you said that this council will get the trust of the people, what does this mean?
Answer: It means, this council must get the people to believe [in them]. The people no longer believe in the government, so then who else can people trust? Should we leave them to panic without someone to lead them? Because of this, we must encourage the people to believe in this council.
Question: How will this be done?
Answer: We must communicate with the people, with the least expensive and simplest kind of media. One way is through
leaflets. So the council needs to produce leaflets which contain calls to the people. As well as this it must issue press releases, speeches, hold open discussions and so on. In this way the people can be convinced, that the council is truly concerned with their fortunes. Because of this, an effort must be made so that the membership of the council is as broad and plural as possible. The more serious and plural the membership of the council, the more groups will feel they are represented. It is from this that the trust will emerge.
Question: Isn't this the same as Amin Rais' call that he is ready to sit at one table with Gus Dur and Megawati?
Question: Amin Rais' call that he is ready to work together with Gus Dur and Megawati is a very great step foward. Because of this we must support it so it really does becomes a reality. Amin Rais' call however, has a slight error. Amin Rais should have said he was ready to sit at one table with Gus Dur, with Megawati, and all figures from pro-democracy groups, regardless of whether they are well known or not, regardless of their religious or racial background. Basically, to sit at the same table with anyone.
Question: What is the position of the council toward the suggestion that their is a need for national dialogue with the government?
Answer: What attitude the council, which has the right to make such decisions [takes on this], is up to the members of the council. The formation of the council has only just begun, it has yet to be realised. So I do not have the right to answer the question.
Question: And KNPD's attitude?
Answer: We believe that this kind of dialogue is artificial. There is no concrete action to follow up such a dialogue. The place for such representative dialogue is the MPR (2), but an MPR which is chosen in a manner which is truly democratic and free. Not the MPR which exists at the moment. KNPD does not believe that such a dialogue will be effective and free from pressure and manipulation by the government.
Translators notes:
[Translated by James Balowski]Amin Rais: Head of the Islamic mass organisation Muhammadiyah. Gus Dur: head of the Islamic mass organisation Nahdatul Ulama: Megawati [Sukarnoputri]: Popularly elected chair of the Indonesian Democratic Party (PDI) ousted by the regime in June 1996. Sukmawati: Megawati's younger sister and leader of the Marhaen People's Movement. Sri Bintang [Pamungkas]: Chair of the Indonesian United Democratic Party (PUDI) who is currently being tried for subversion. Ali Sadikin: a leading figure from the dissident group Petition of 50. Budiman Sudjatmiko: chair of the People's Democratic Party (PRD) who was sentenced to 15 years jail for subversion in 1997. Muchtar Pakpahan: chair of the independent trade union Indonesian Trade Union for Prosperity (SBSI) who is currently on trial for subversion. Gunawan Muhammad: previously editor- in-chief of the magazine Tempo which was banned in 1994; in 1996 he was involved in establishing the Independent Election Monitoring Group (KIPP). Deliar Noer: a political analyst and well known opposition figure. Romo Sandyawan: currently on trial for harboring Budiman Sudjatmiko and another PRD activist after the July 27, 1996 crackdown. ibid. "Form a council of political leaders to safeguard the sovereignty of the people!"
A number of youth organisations went to Parliament on Monday, 12 January, to deliver a statement rejecting the nomination of retired General Suharto for president from 1998-2003. The organisations supporting the call including several student organisations, PMII (Islam), GMNI (nationalist), PMKRI (Catholic), IPPNU and FGKMNU (NU youth groups) KMHDI (?), KIPP - the Election Monitoring Committee - two human rights organisations, PUSPIPHAM and PIPHAM, and PIJAR the Reform and Action Network.
Speaking for the whole group, A. Baskara told the press that they wanted Suharto to step down because he is not physically strong and his condition of health is alarming. We believe, he said, that the country needs a healthy and dynamic leader of integrity.
He said they did not have their own candidate to replace Suharto but suggested that the MPR should collect the names of people nominated by various groups in society and sift through the list for the most suitable person. 'We support candidates who are in favour of reforming the political and economic structures.'
The group also told a press conference that Suharto should be called to account politically and juridically for the policies he has carried out since he came to power.
It has been reported that a National Dialogue will take place on Friday, 16 January. According to a report in Suara Pembaruan on 12 January, the meeting will be attended among others by Megawati Sukarnoputri, chair of the PDI, and Amien Rais who chairs the mass Muslim organisation Muhammadyah (both of whom have called recently for Suharto to step down and have stated their intention to make a bid for the presidency.) Others who will attend are the retired general, Rudini, whose last position in government was as Interior Minister in 1988 - 1993 (and who in retirement has made some trenchant criticisms of the situation) and the present Social and Political Affairs Chief of Staff of the armed force, Lt Gen Yunus Yosfiah (He will be remembered by East Timor activists as the man responsible for the Balibo killings. His appointment to the present post was made against the wishes of Suharto so he is clearly not a Suharto loyalist.) The well- known Catholic activist priest, Romo Mangunwijaya, has expressed enthusiasm about the meeting.
The initiator of this National Dialogue is Adi Sasono, at present secretary-general of ICMI, who has survived several attempts by Suharto to have him removed. Sasono is also director of the ICMI think-tank, CIDES, and it is in this capacity that he is convening the meeting on Friday.
Explaining the reasons for holding the event, Sasono said there were no pretentions about replacing the function of Parliament or the MPR (due to meet in March and re- appoint Suharto). However, democratic processes cannot be left to an official body that meets only once in five years. The many riots during 1997 might never have occurred if the official bodies had been functioning properly.
'We need to enhance our sense of solidarity by means of dialogue between leaders which can push forward the constitutional process so as to be able to solve the grave crisis now engulfing the country.'
Those who think we can leave it to Parliament clearly dont realise just how serious the crisis now is, he said. Efforts by the government and Pparliament over the past six months have failed to solve anything; indeed, the situation has only continued to deteriorate.
[This appears to be a serious attempt to break the mould of Indonesia's paralysed political system. It will be interesting to see who else turns up at this meeting - Tapol.]
PIJAR, the Network for Information and Change, has launched a new slogan, Tritura 1998, a Triple People's Demand, which calls for:
The name Tritura (Tru-Tuntutan Rakyat) is taken from the set of demands launched on the streets of Jakarta in 1966, backing Suharto's seizure of power.A reduction in prices and stabilisation of the rupiah A complete overhaul of the Cabinet A new president
In a statement issued on 9 January by PIJAR-Indonesia, the organisation recalls that in 1966, the New Order led by Suharto aimed to solve the economic crisis and set up a new government with a programme of development, oriented towards the outside world. Its political thrust was to back up its development programme with the security approach, ignoring the principles of people's welfare.
Now, thirty-two years on, the new order has become old. History is repeating itself with new actors in place. This government refuses to learn from history. In fact they are trying to write a new page in history no less disastrous than the old. Today's ruling power has become totally personalised and out of control, a recipe for bankruptcy. This is the primary cause for the mounting crisis now engulfing the country.
The monetary crisis is marked by a steep rise in prices and a sharp increase in unemployment which is causing economic stagnation. Nothing has improved despite the rescue plan offered by the IMF. International confidence in Indonesia is weakening. The problem is political as well as economic. It's not the rupiah that Indonesian people have lost confidence in but the government. Therefore, the first thing to be done is to introduce political reforms and arrange for a presidential succession.
The people are entitled to prosperity which means that nepotism, corruption, manipulations and monopolies must end. The struggle for reform has now reached a point at which it is essential to contruct new political structures which are democratic, which respect human rights and people's welfare.
In order to speed up the process and overcome the present political and economic crisis, PIJAR-Indonesia calls upon all the democratic forces to return to our historic roots and fight for TRITURA 1998.
Demonstrations
On 9 January, PIJAR-Indonesia organised a demonstration of several dozen people symbolically located at the base of the TRITURA monument in Jakarta. The demonstration proceeded without trouble although it caused major traffic jams.
The demonstrators shouting slogans calling for a New President and for TRITURA 1998.
The PIJAR statement extracted above was read out.
It was also stressed that the New Order had come into being in the wake of the murder or arrest of more than a million people accused of being communists. This was followed ten years later by the invasion of East Timor leading to hundreds of thousands of deaths, East Timorese as well as Indonesians, as well as massacres of Muslims in Aceh, Lampung, Tanjung Priok, Haur Koneng and Nipah, Madura.
There was no attempt by the security forces to halt the demonstration although dozens of agents in civvies were watching on the sidelines. This suggest either that the security forces were caught unawares or allowed it to proceed unhampered because they agreed with what was happening.
Small as it was, the demonstration was widely reported in the international press and shown on CNN.
Jakarta – Small groups of Indonesian students protested in Jakarta on Tuesday, shouting their support for opposition leader Megawati Sukarnoputri and their anger at an IMF bail-out agreement.
A group of 30 Indonesian students wearing red headbands marched to the national parliament building, yelling "Megawati for president." They carried a large banner which said "Support Megawati, support reform."
Megawati, daughter of Indonesia's founding leader Sukarno, on Saturday called on President Suharto to step aside in March after more than three decades in office. She also said she was ready to be a presidential candidate if called upon by the people.
A handful of police kept a close eye on the students but did not intervene. The students later sang patriotic songs on the steps of the parliament building and sat in its foyer.
Separately, 25 students from the Indonesian Communication Forum of Jakarta Moslem Students protested outside the Finance Ministry in Central Jakarta as visiting U.S. Deputy Treasury Secretary Lawrence Summers met Suharto.
The students carried a banner saying "We love rupiah and reject the IMF" and sold posters saying "The IMF is the agent of capitalist countries."
Indonesia agreed sweeping economic reforms with the International Monetary Fund in October in exchange for a $43 billion dollar bail-out. Summers is one of number of senior U.S. and IMF officials in Jakarta to give support to Indonesia.
Megawati was ousted as head of the Indonesian Democratic Party (PDI) in 1996 by government-backed rivals despite her widespread popularity in a move analysts said was linked to government fears she could rival the ageing Suharto.
Her call for Suharto, 76, to quit came after the rupiah currency plummeted to below 10,000 to the dollar in the wake of a national budget handed down a week ago that analysts ridiculed for its optimistic economic projections. The rupiah was trading around 8,500 rupiah at 0430 GMT on Tuesday.
Megawati's advisors said on Monday she would take no concrete steps to move her candidacy forward and would first wait for reaction from Indonesia's 200 million people.
They said they hoped a member of the 1,000-member People's Consultative Assembly (MPR), which elects Indonesia's president and is packed with handpicked Suharto loyalists, would have the courage to nominate her as a candidate. Suharto is widely expected to stand for a seventh five-year term in March.
| East Timor |
Six East Timorese men will now go to trial for their alleged involvement in the manufacture and possession of home-made bombs. The trials are expected to commence soon.
In Semarang, Joaquim Santana, Ivo Miranda, Fernao Malta Lebre and Domingos Natalino Coelho da Silva face charges under Article 1, Paragraph 1 of Emergency Law No 12 of 1951 for the possession, storage and transport of explosives, for which the maximum penalty is death. It is believed they have also been charged under articles of the Indonesian Criminal Code for arson and failing to report a crime.
Fears are still held for the safety of the four Semarang detainees, in light of the reports from ETHRC sources that they have all been subjected to torture and ill- treatment. According to one report, Fernao Malta Lebre told friends who visited him in late October that he had been subjected to electric shock and burning with cigarettes. The ETHRC is also concerned that the four detainees may not have been allowed ongoing access to their legal representatives. It is believed they were given access to their lawyers for the first time on 5 December but the meeting only lasted thirty minutes.
In Dili, Constancio Chantal dos Santos and Paulo Jorge Pereira were arrested as they arrived in Dili by ship, allegedly carrying a large quantity of home-made bombs, ammunition and bomb-making equipment. The two men will go to trial for subversion and armed rebellion against the state and if convicted, could also face the death penalty. Constancio Chantal dos Santos and Paulo Jorge Pereira have had access to their lawyers but it is not known whether ongoing access during interrogation has been allowed.
On 3 November, another East Timorese man, Gil Paulo da Silva, was taken into police custody in Semarang when he voluntarily presented himself for questioning after receiving a summons to report to the police station. He was detained at Central Java Police Headquarters (POLDA) but charges were never brought against him and he was released on 31 December due to lack of evidence.
ETHRC has received reports that Elizio Pinto Guterres Soares (also known as Mito), 25, an East Timorese man studying in Semarang, Indonesia, was arrested and tortured by members of the Indonesian security forces on 1 January, 1998,
Mito was arrested at approximately 2.30am during a New Year's eve party which the East Timorese students were holding at an auditorium at the University of Diponegoro, Semarang, located opposite the police headquarters. It is believed that at 2.30am, three undercover police agents (who were reportedly drunk), entered the party and began to provoke the students. It is believed that Mito, who was responsible for security at the party, attempted to restore calm. Two of the three police agents left the party and returned shortly with four members of the mobile police brigade unit (BRIMOB) carrying weapons in their hands. It is believed an argument broke out between some students and the police when the police ordered the party to be stopped claiming it was disturbing the Muslims during their fasting month. The students said that they had a permit issued by the police commander to continue the party until 3.00am.
According to an ETHRC source "The police threatened to mobilize the Muslims to attack the Timorese. The situation was chaotic and the students started to fight the police. The police shot several times into the air for warning and some women fainted. The students were finally calmed down and then the police took Mito to be questioned concerning the incident. His colleagues tried to protect him, but then they let the police take him when police threatened them with guns."
Mito was questioned at the police headquarters by the police and soldiers from battalion 401 and released the following day without any charges being brought against him. An ETHRC source reported that during interrogation, Mito was subjected to torture: "An army soldier kicked on his [Mito] side several times until he broke one of his ribs and collapsed". The source also reported that Mito may have been targetted by the police for arrest and torture because of his alleged participation in demonstrations.
Mito was picked up by his friends the next day and taken to Elizabeth Catholic hospital for treatment. He was discharged seven days later.
Jakarta – Five youths from the troubled Indonesian territory of East Timor spent the night in the French embassy here today after jumping the gate and demanding to be allowed to leave for Portugal, sources said.
The French embassy confirmed that "five youths were found in the embassy" but refused to make any comment on the incident, the seventh time in two years that asylum-seekers entered the embassy.
Sources said the youths jumped over the embassy's iron gate at 5am local time today (0900 AEDT).
Following standard procedures, the East Timorese would be able to leave as they have requested for Lisbon although no exact date was fixed for their departure.
It was the first instance of East Timorese entering a foreign mission here this year to seek asylum or demand to leave for Portugal, which does not have diplomatic relations with Indonesia.
East Timor is a former Portuguese colony seized by Indonesia in the mid-1970s amid international condemnation. The United Nations still recognises Portugal as the legitimate administrator of the territory, where Indonesian troops are accused of human rights abuses.
The last batch of East Timorese to break into embassies were six people including two children who entered the Austrian embassy in September.
The six asked to leave for Portugal but were still believed to be at the mission since Jakarta has refused to allow two of them to leave the country, saying they were involved in terrorism.
Since September 1993, more than 130 other East Timorese have sought refuge in various embassies in the Indonesian capital before leaving for Portugal, via the Netherlands.
They are normally taken to Portugal after a few days following procedures under the auspices of the International Committee of the Red Cross.
Lisbon, former colonial master of East Timor, considers the East Timorese as citizens and grants them identity cards and a passport.
Dili – Four East Timorese have been found dead days after they were abducted from their village by a group of unidentified armed men, a local official said.
The four victims from Coilima village, about 60 km west of the territory's capital Dili, were among a group of eight people seized on January 3, Francisco Martins Dias, a local district chief, said.
Dias said the bodies were found floating in a river by villagers yesterday. Two of the victims appeared to have died of gunshot wounds and the other two of injuries caused by sharp objects.
Villagers said one of the other four abducted men had returned safely but the other three were still missing.
They also said they believed the armed group had links with the military, which operates a number of covert counter-insurgency groups against rebels in the former Portuguese colony.
The Indonesian military has recruited a number of local militia groups as part of attempts to control a small band of guerrillas still resisting Indonesian rule more than 22 years after Jakarta invaded East Timor.
East Timor police chief Colonel Atok Rismanto declined to comment on the case, saying he was still waiting for a full report.
The United Nations does not recognise Indonesia's rule over East Timor and still regards Portugal as the administering authority.
In a separate incident, reports over the weekend said Indonesian troops shot dead four rebels in the nearby Ermera regency last Friday.
According to Kompas (12 January 1998), the military authorities claim to have shot dead two members of the armed resistance during an encounter with an armed group of 25 people. The incident occurred on 9 January in Buatete Kampung, Hatolia sub- distrcit. in the district of Ermera. The district chief said that the other members of the group fled.
The military claim to have captured a Kenwood handy-talky, ammunition and two horses. They said the armed resistance have now taken to travelling around the region on horseback. They claim that the horses were 'stolen' from local inhabitants who use horses a lot to get around.
The two men shot dead are named as: Marininho alias Manas and Crispin Masa.
In another part of the territory, the army claims to have arrested two members of the armed resistance, Domingos Babua Lete alias Ameon, and Salestino while out on patrol in the village of Kaboge, sub-district Bobonaro. The two men had medical equipment in their possession, including equipment to measure blood- pressure, a packet containing blood and a roll of film.
| Political/economic crisis |
Louise Williams, Jakarta – Indonesia's President Suharto today sacrificed the business privileges of his children and cronies in a sweeping economic reform agreement with the International Monetary Fund.
He also slashed subsidies in a move that will push up prices for hard-pressed ordinary Indonesians and cut living standards for the tens of millions who live just above the poverty line.
The move to resuscitate the Indonesian economy came after last week's plunge in Indonesia's currency and financial crises that have swept through Asia.
The reforms are expected to contain inflation to 20 per cent in the coming year, with zero growth in the economy. Indonesia has enjoyed decades of single-digit inflation and average seven per cent growth.
The Australian embassy in Jakarta today faxed a warning of possible civil unrest to Australian citizens, schools and companies as Indonesia's armed forces braced for the impact of the announcements.
No demonstrations had been reported by mid-afternoon but an internal memo from one multinational company said the Jakarta Army Command had stepped up security.
The IMF agreement, which follows the failed reform package of last November, includes an immediate end to the exclusive tax and tariff concessions for the "national car" as well as the clove monopoly - both controlled by the President's son, Hutomo Mandela Putra.
Also abolished is the wheat flour monopoly, which will affect the holdings of President Suharto's daughter, Siti "Tutut" Haryanti Rukmana, and subsidies for the expensive "national jet" project, controlled by a close ally, the Technology Minister, Dr Jusuf Habibie.
The package includes price increases in fuel and electricity, which will have an inflationary impact at a time when Indonesians are already burdened by unemployment and a real drop in their standard of living. The agreement suggests that President Suharto, who has faced unprecedented calls for his resignation during the economic chaos of the past few weeks, is gambling his own political survival on the dismantling of the crony business system built during more than 30 years in power.
The Australian Prime Minister, Mr John Howard, last night welcomed the agreement.
"By signing the letter of intent with IMF managing director Mr Camdessus, President Suharto has demonstrated his personal commitment to this economic program," Mr Howard said.
Mr Howard earlier played down the impact of Indonesia's problems on Australia.
"Indonesia, despite her great political importance to Australia, is nowhere near as important a trading partner as, for example, Japan or South Korea," he said.
Last year's IMF agreement, linked to a $US38 billion bail-out fund, did not stop the slide in the rupiah and the sharemarket, partly because international investors did not believe President Suharto had the political will to implement reforms that would erode the business privileges of his family and friends.
Jakarta – Hundreds of Indonesians marched some 100 kilometres in East Java to protest high food prices, damaging a shop and one vehicle, a report said Tuesday.
A crowd gathered at the Kalibaru subdistrict in Banyuwangi district on the eastern tip of East Java province on Monday to protest high food prices and later attacked a shop there, the Kompas daily said.
The growing crowd, yelling slogans demanding that traders lower the high prices of basic foodstuffs, moved on towards the neighbouring Glenmore sub-district and continued through five other sub-districts.
The long and noisy convoy was tightly guarded by the police who limited their operations to preventing destruction of property, the daily said.
Shops along the main road linking the seven sub-districts closed down for fear of violence. One vehicle was damaged by the marchers but there was no further violence reported and the protesters disbanded peacefully in the Gambiran sub-district more than four hours after the protest started.
There were no arrests, Banyuwangi district police chief Lieutenant Colonel Eddy Murdiono was quoted as saying.
Louise Williams – These are terrible times, a taxi driver says openly. "Suharto is all right, but his greedy children are destroying this country." A domestic helper punches her fist in the air and declares her wish to march in a "huge demonstration" against the "father of Indonesia". A poor construction worker, now unemployed because of the economic crisis, asks how to get to the demonstration: he wants to go and shout at the father from the Parliament gates.
"What can I do? I am just an orang kecil (small person)." This is the usual Indonesian expression of helplessness and you hear it everywhere: on the teeming streets of Jakarta, in the humid corridors of the traditional markets, and in the flat paddies of drought-stricken Java.
The issue being discussed is always injustice: the gulf between the elite and the residents of Indonesia's shanties; working conditions in factories; the forest fires that choked millions for months last year; the small, debilitating demands for bribes for every bureaucratic piece of paper required in daily life.
Under Indonesian "democracy", the Government cannot be voted out of power, the military cannot be challenged because they hold the guns, and President Suharto enjoys a status way beyond that of ordinary politicians. But the division between the orang besar, or big people, and ordinary Indonesians is both real and psychological and has existed for centuries.
Behind the country's modernisation, Javanese mysticism remains strong. People believe in the pulung: the supernatural strength of a leader that allows him to emerge above all others, because that is his fate. Thus, President Suharto has become something of a modern Javanese king. For those who do not believe in the pulung there is the law. Nearly any criticism of President Suharto, or any attempt to organise opposition to his regime, risks incurring the charge of sedition, with death as the maximum penalty.
"We are suffering from the `Muhammad Ali syndrome'," said the political commentator Arief Budiman before the economic crisis hit. "People have long believed that they have lost the fight (against the President), even before they have got into the ring."
But in the past few weeks ordinary Indonesians have made a quantum leap in their willingness to criticise and challenge, says one Western diplomat. The same orang kecil are burning down government buildings and throwing rocks at the troops of President Suharto's regime.
Now Javanese mysticism is being used to explain what is happening. The pulung can be lost. For those who believe in its strength, there are signs of its failure. The recent disasters that have struck Indonesia - ethnic riots, earthquakes, fires, droughts, plane crashes and now economic meltdown - may be omens of chaos to come, caused by people who wanted to cheat the natural order and take too much for themselves.
Not only have President Suharto's political opponents broken the taboo of silence and publicly called on him to step down, so too have many well-respected former members of his Government.
Every ordinary Indonesian knows where the power lies. Now they are willing to point the finger. "Look at that toll road, look at those cars, look at this packet of clove cigarettes, look at that luxury hotel, they are all owned by the President's children," said one driver.
Still, the political system remains closed and those shouting for change are on the outside of the gates. Newspapers have already been reprimanded for publicising scenes of panic buying last week, and the desire of the pro-democracy leader Megawati Sukarnoputri to challenge President Suharto for the national leadership.
Without a free press, information about what is happening within the closed political elite and the military leadership remains a series of rumors. When the President fell ill last month he was rumored to have died, suffered a stroke or suffered severe diarrhoea after a visit to a filthy rice market.
Another rumor has it that a caretaker government waits in the wings; another concerns a plan for Indonesia to declare a debt moratorium. The jittery stock and money markets which decide the economic fortunes of this nation, have been trading on the strongest rumor of the day.
Can the new resolve to speak against the Government be translated into real political change? The New Order Government is built on a political system in which all sectors of society are included under one umbrella organisation - the ruling Golkar group. There is no political opposition, nor do critics have the right to organise against the status quo because, theoretically, all Indonesians are under the protection of the umbrella.
So, it is not yet possible to compare Indonesia to the Philippines in 1986, when President Ferdinand Marcos triggered a revolution by allowing Cory Aquino to stand against him in elections then rigged the vote.
Even if the Indonesian people choose Ms Megawati as their figurehead to oppose the regime, the only course they can take is public demonstrations, which the military have pledged to quash.
Still, many observers now say that frustrations run so deep that violence is inevitable. Petty grievances, competition for the dwindling number of jobs and increasingly expensive food supplies are on the rise.
There is no evidence that President Suharto believes the pulung is failing him. He has ruled out a public dialogue with critics and promised only economic, not political, reforms. His Government has warned that those who hoard food in these frightening times may be charged with sedition.
And then there is the ultimate conspiracy theory of Indonesian politics. It goes like this: a man who has played off his enemies against each other with such skill in the past cannot simply be standing by and watching his country slide. Surely he is playing weak so that his enemies will stand up in the trenches and be shot down?
The theory is not implausible. If President Suharto can turn the economy around and maintain his leadership, he is unlikely to tolerate the critics who have used this strange time to make their views public.
Jenny Grant, Jakarta – Almost 1,500 employees of Indonesia's top timber tycoon have taken voluntary retrenchment from six of his plywood companies in east Kalimantan.
About 1,400 staff have taken voluntary redundancy as part of a rationalisation in Mohammad "Bob" Hasan's Kalimanis Group, the Republika daily reported.
General director of the Kalimanis Group, Mohammad Halid, said the company was cutting its workforce because of financial difficulties.
"I think all those who are willing to be laid off are heroes because they have the big heart to save their company," Mr Halid said.
Mr Hasan is a close associate and golfing partner of President Suharto and chairman of the Association of Indonesian Wood Panel Producers.
An ethnic Chinese, he controls two million hectares of forestry concession in Indonesia.
Mr Halid said the six companies had restructured machinery, capital and debts but needed to cut staff to complete its programme.
The companies include Kalimanis Plywood Industries, Santi Murni and Kiani Lestari.
The government last year gave a controversial US$105 million loan from its reforestation funds to Kiani Lestari for a new pulp plant.
Indonesian log prices dropped to $70 a cubic metre in the second half of last year from $92 in the first half. Exports of wood products are expected to fall 25 per cent this year to $6.25 billion.
The declines are blamed on falling demand in the property sectors of Japan, China and Korea due to the Asian financial crisis.
The government has provided 33 billion rupiah (about HK$29.04 million) and launched a series of labour-intensive programmes to soak up the thousands of unskilled workers who have lost their jobs since the crisis clean-up projects are targeted at 30 cities across Java, with employees earning a meagre 7,500 rupiah a day.
In the west Java city of Bandung, 5,076 sacked workers will be re-employed in the labour-intensive schemes, according to Oeron, the head of the district level planning agency. Indonesia's unemployment rate is forecast to swell to 6.7 million people this year from an overall workforce of 90 million.
The government has announced that low-income people and sacked workers will receive a 70 per cent discount on train fares for Indonesians wanting to travel home for the Muslim new year celebrations.
The festival marks the end of the fasting month of Ramadan, which falls around January 30.
Jakarta – Some 70 percent of the 286 newspaper publishers in Indonesia are facing dissolution or cessation of publication, if the increase in price of paper continues. The prices set by the producers are out of reach, while revenue from advertising continues to decline, and subscription prices are difficult to raise.
"Based on business calculations, hundreds of newspaper publishers in Indonesia should already have stopped publishing. If at present they still appear, that is because of their commitment and fighting spirit, " said secretary general of the Newspaper Publishers Association Drs Leo Batubara to Kompas on Tuesday (13/1).
He explained that the numbers were based on the number of newspaper publications in Indonesia at present, where 30 percent are considered sound, and the remaining 70 percent still progressing to that stage. Meaning that around 30 percent are considered to be self-supporting and developing. The other 70 percent are still in the stage of putting their own house in order.
According to Batubara, ever since the producers increased paper prices in November 1997, and then this January 1998, a number of newspaper publications have been complaining. But whereas last year they could still get by, now the situation has already become extremely critical.
He said that to overcome the high price of paper, the publishers take recourse to a variety of ways. By increasing subscription prices, cutting down on the number of pages, cutting down circulation, spacing frequency of publication, and cutting down on news coverage. A leaner work force is also a choice.
All the steps have been tried out while hoping that the conversion rate of the rupiah would soon become stable, so paper prices would return to normal. But reality was not as expected.
Conversion rate
Batubara explained that the increase in paper prices was in step with that of the conversion rate in Indonesia. He said that in July-September 1997 the price was still around Rp 1390/kg or Rp 1530 including sales and income tax. In November 1997 it increased by 44 percent and in December 1997 upped 132 percent to become Rp 3200/kg including taxes.
In January the paper price became Rp 4855 including taxes or an increase of 217 percent compared to July 1997. This is based on the average rate last week of Rp 8740/dollar.
He said that calculating circulation times the paper requirement, and the price differential based on the conversion rate, namely 4855 less 1530 or Rp 3325, the publishers have to add considerable funds.
The association's secretary general estimates that with that increase, a newspaper with a circulation of 10,000 and 12 pages, needs 23,5 tons of paper. The business concerned must add some Rp 78 million/month.
A newspaper with a circulation of 100,000 and 12 pages needs 235 tons of paper, and must add Rp 780 million/month. The same circulation but at 24 pages, needing 470 tons, would have to add Rp 1.7 billion/month. A newspaper putting out 500,000 at 24 pages and needing 2350 tons, would have to add Rp 7.8 billion.
Cause for concern
A number of newspaper publishers, both those with national as well as regional coverage, have mostly stated to be almost unable to face the paper price increase. Some dailies are even now appearing irregularly.
No wonder that several publishers, such as five in Medan, have stated they are ready to close down. They have cut down on number of pages, some have come down to the format of tabloids as the paper stock has depleted.
Chief editor and manager of Suara Karya, Syamsul Basri, put forward he would try to continue his publication, but if circumstances force otherwise, then nothing could be done.
The general manager of Kedaulatan Rakyat Yogyakarta, Dr H Soemadi H Wonohito put forward that the condition of his newspaper was now in the grey zone. Number of pages had been cut down from 20 to 16, and not improbably could become 12 pages in a short while.
On the same note, executive editor of Suara Merdeka Semarang, Amir Machmud NS, said that currently his newspaper was appearing with 16 pages, and to fill requirements was buying paper from any source. He said they would try to hold on even if the price was high, as long as they could provide the public with information. Even with just four pages.
Chairman of the Newspaper Publishers Association (SPS), Tatang Roeswita, said that of the 20 newspapers in East Java, 60 percent with just 15 percent advertising, were in a condition on the verge of no longer publishing. Their paper stock is paper thin, and their choice is between curtailed circulation or coagulation.
Louise Williams, Jakarta – President Soeharto promised a new round of economic reforms during crisis talks with the International Monetary Fund yesterday, in an attempt to turn around Indonesia's ailing economy and hold off a growing challenge to both his leadership and his Government.
Mr Soeharto met the IMF deputy managing director, Mr Stanley Fischer, for more than an hour in negotiations over his Government's implementation of the IMF's $US38 billion ($59.4 billion) rescue package. The meeting preceded the arrival of a team of United States Government officials late last night.
The IMF talks came as Indonesia's leading economist and a former Cabinet member of the Soeharto Government, Professor Sumitro Djojohadikusumo, launched a scathing attack on the political and economic system and called for the immediate replacement of the Soeharto Government.
Professor Sumitro, one of the key architects of Indonesia's economic development and who has close family ties to Mr Soeharto, said Indonesia was not facing a simple economic crisis but a crisis of confidence in the "entire body politic".
"There has long been a gap between macro-economic policies, which are by and large adequate, and micro-economic policies, which are full of distortions and inconsistencies and marred by corruption and excessive protectionism," he told the Jakarta Post. Professor Sumitro, whose son, General Prabowo Subianto, is married to one of Mr Soeharto's daughters, said Indonesia could achieve economic recovery within two to three years, but a failure to implement reforms would plunge the country into a painful and protracted depression. The growing number of senior Indonesian figures prepared to publicly criticise the Government indicates a significant new momentum to oppose a regime which has routinely jailed or silenced its critics.
Professor Sumitro, while saying the Government should be immediately replaced, stopped short of calling for Mr Soeharto to step down.
Indonesia's two most prominent Muslim leaders also publicly criticised the Government and said the declaration by the pro- democracy leader, Ms Megawati Sukarnoputri, that she would challenge Mr Soeharto would have an impact on the political mood.
However, they said that Ms Megawati had little chance of succeeding within the present political system, under which she has been barred from political activity.
The head of the 28 million-strong Muhammadiah organisation, Mr Amien Rais, praised Ms Megawati's daring and joined her call for Mr Soeharto to step down. The head of the 38 million-strong Nahdlatul Ulama, Mr Abdurrahman Wahid, said Parliament should summons the Government and demand an explanation for the economic crisis. Mr Fischer said the IMF talks were "constructive" and he expected Mr Soeharto to announce more reforms over the next few days.
The stockmarket reacted positively to the presence of the IMF crisis team in Jakarta, gaining more than 3 per cent on a day in which there were big losses in Hong Kong and Singapore. But the rupiah, which has suffered a dramatic slide over the past week, failed to rebound and was trading around 8,500 to the US dollar, down from around 5,000 at new year.
Mr Soeharto is due to meet the IMF managing director, Mr Michel Camdessus, on Thursday and to discuss the economic crisis with the US Government delegation.
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It is highly unlikely that the Indonesian Opposition leader, Megawati Sukarnoputri, will unseat President Soeharto when the People's Consultative Assembly (MPR) convenes in March. Despite her background (she is the daughter of Indonesia's independence leader, President Sukarno), her nationwide public profile, and the general endorsement she has received from key Muslim leaders in the country, Ms Megawati does not even legally head a political party - making her ineligible for election by the MPR. Moreover the MPR has been largely handpicked by President Soeharto who, for the time being, also retains the crucial support of the military.
Thus it is unclear whether Ms Megawati's call for President Soeharto to stand down is intended as the curtain-raiser to a serious leadership challenge or merely an attempt to garner further popular support from the current disaffection for her longer-term political ambitions. What is clear is that Ms Megawati's statements will deepen the uncertainty about Indonesia's immediate political future and that this uncertainty will make it more difficult to restore confidence in the country's economic prospects.
Ms Megawati's intervention may have other, even more disturbing, consequences as well. Her support base is predominantly among less well-off Indonesians. These are the people who are feeling the pinch of the currency crisis most acutely as the economy contracts and prices for basic commodities such as rice and cooking oil rise. In years past these kinds of shocks could be absorbed by many poor Indonesians who were able to return to the countryside and tide themselves over by working the land. But even this option has become increasingly unavailable as the drought wreaks havoc on the rural economy. So far there has been no major unrest on the streets or in the marketplaces in the wake of last week's delivery of an austerity Budget. But the situation is obviously extremely volatile.
In this context Ms Megawati's decision to turn up the rhetoric against President Soeharto and his Government seems particularly risky. On Saturday she said that the middle classes and the poor were being asked to bear the burden of a crisis caused by "economic criminals". Ms Megawati then suggested that "striped prison uniforms" be sewn in preparation for a future reckoning with these "criminals". With comments over the weekend by the Governor of Jakarta, Mr Sutiyoso, that price rises were due to the wealthy hoarding goods, these kinds of statements have the potential to bring popular emotions that much closer to boiling point.
Mr Soeharto's belated decision to rethink more than a dozen big-ticket infrastructure projects is a welcome sign that the precariousness of his country's position is finally striking home. This is all the more so given that several of these projects, had they gone ahead, would have lined the pockets of Mr Soeharto's children along with his close friends and supporters.
But the real sign of how seriously Mr Soeharto is committed to reform awaits the outcome of this week's meetings with officials from the US and the International Monetary Fund (IMF). Mr Soeharto is under intense international pressure to demonstrate that the IMF's planned multi-billion dollar rescue package for Indonesia will lead to long overdue structural readjustment in the economy and not be used to further postpone it. If he cannot convince the US and the IMF that they should support his reform efforts, Mr Soeharto will be in a very weak position trying to win the argument with Ms Megawati's supporters in the streets.
Raju Gopalakrishnan, Jakarta – President Suharto has ruled Indonesia with a strong and sometimes ruthless hand for more than 30 years but analysts fear his indulgence of his six children could have undermined crucial economic reforms.
Suharto's three daughters and three sons, and their spouses and kin, have built vast commercial empires, many of which are largely dependent on government patronage, a prominent Indonesian Muslim leader and analysts said Monday.
Now these empires are under threat.
Suharto's apparent unwillingness to fully implement economic reforms agreed with the IMF last October in exchange for a $43 billion bail-out plan may partly be influenced by the fact any restructuring could affect the first family, the analysts said.
"The government is ready to heed (the IMF's) requirements but the president, no, because for the president the IMF requirements will mean dismantling his own economic empire," said prominent Muslim leader Abdurrahman Wahid.
"But now, there is no other choice for him – either he has to stop or lose everything," he said in an interview.
Former cabinet minister and noted economist Sumitro Djojohadikusumo, who is related to Suharto by ties of marriage, was more guarded but nonethless trenchant in his criticism.
"There has long been a wide gap and dichotomoy between macroeconomic policies, which are by and large adequate and appropriate and microeconomic policies which are full of distortions and inconsistencies and marred by corruption and excessive protectionism," he was quoted as saying by the Jakarta Post.
Sumitro's son, Maj.-Gen. Prabowo, is married to Suharto's second daughter, a businesswoman who owns property and banks and was involved in a joint venture to construct a $1.66 billion power project until it was put on hold last week.
Another 14 projects were also delayed or set aside for review, including a power plant in which Suharto's eldest daughter Siti Hardianti Rukmana has a stake.
Last year, the government's first tentative move to follow the IMF reforms by liquidating 16 banks met with stinging criticism from the first family. Second son Bambang Trihatmodjo threatened to sue the finance ministry for closing a bank in which he had a 25 percent stake but he later withdrew the suit. He then took control of another bank and shifted assets from the closed institution.
Bambang's sister Siti Prabowo took a share in the new bank.
A Jakarta court later delayed a closure order served on a bank controlled by Suharto's half-brother Probosutedjo, saying it could only be implemented after a suit against the move was decided.
The business holdings of the first family are so diversified that it would be difficult to pinpoint any one economic reform which would not affect one or more of them, analysts said.
Following is a brief rundown on the siblings and their known business interests, which may be incomplete:
Eldest daughter Rukmana is considered the most politically astute among the children and is one of the seven chairpersons of the ruling Golkar party. She is best- known for her control of toll-road operator Citra Marga but also owns a slice of Bank Central Asia, headed by old family friend and Indonesia's richest man Liem Sioe Liong. Other interests are diverse. She was a partner with Hong Kong's Hopewell Holdings in constructing the $1.77 billion Tanjung Jati "C" coal-fired power plant until it was put up for review Saturday. * Eldest son Sigit Hardjojudanto. A reclusive man, Sigit is best- known for his partnership with Bre-X Minerals Ltd before the Canadian firm's claim of having discovered the world's richest gold deposit this century was proved to be a fraud.
But he also has a 10-percent stake in the Nusamba Group, which is the largest shareholder in the country's biggest automobile manufacturer Astra International and in various other key companies. Nusamba is owned 80 percent by three charities headed by Suharto while timber baron Mohammad "Bob" Hasan, another old family friend, controls the rest.
Second son Bambang Trihatmodjo. Perhaps the most professional entrepreneur among the siblings, Bambang has listed his holding company Bimantara Citra and has diversified from government contracts into television, banking, hotels, petrochemicals, transport and telecommunications.
Second daughter Siti Hediati Prabowo. In the news of late because of her interests in banks and construction, including a plan to build a bridge linking Sumatra island to peninsular Malaysia, which was put on hold because of the economic crisis.
Youngest son Hutomo Mandala Putra. Tommy Suharto, as he is widely known, is manufacturer of the Timor national car, which has provoked outrage from the United States, Japan and the European Union. A national car program gives Tommy's company tax and tariff benefits not given to other manufacturers. He has a monopoly on distribution of cloves, an essential ingredient for Indonesia's hugely-popular kretek cigarettes. Tommy also owns a stake in domestic Sempati airlines and in Italian sports car manufacturer Lamborghini S.p.A.
Other business interest include oil and gas exploration, timber, roads and petrochemical distribution.
Youngest daughter Siti Hutami Adyningsih is the baby of the family. Her only known business venture so far is a share in a land reclamation project on the Jakarta coast.
Jakarta – Two prominent government critics supported yesterday Megawati Soekarnoputri's bid for presidency, lauding the bold move as a boost for democratization.
Moslem scholars Amien Rais and Abdurrahman Wahid, however, tempered their appreciation by expressing doubt that the declaration of the ousted leader of the Indonesian Democratic Party (PDI) would cause more than just a ripple in real politics, given that Megawati was actually residing out of the " system ".
Chairman of the dominant Golkar Harmoko said in Tulungagung, East Java, that everybody could have a bid at presidency, but it should be done through proper mechanisms. He was also quoted by Antara as saying yesterday that people could not just name themselves presidential candidates "out of the blue".
"Megawati has only a slight chance as she fights for the presidency from outside the system, " said Amien Rais, who leads the 28 millionstrong Muhammadiyah Moslem organization and who was recently named a presidential candidate by a branch of the United Development Party (PPP).
"It is almost impossible as the government always refers (the presidential succession) to the People's Consultative Assembly's mechanism," Amien said.
Abdurrahman, better known as Gus Dur, agreed. "It (Megawati's declaration of willingness to be president) will affect political life here, although (the effect) will not be as great as some people would expect," Abdurrahman said.
"(The bid) is almost impossible to materialize as it is not made through the system."
Abdurrahman said millions of people here still depended on the prevailing political system for reform rather than on opposition parties.
Megawati, the eldest daughter of Indonesia's first president Sukarno, declared her readiness to become a presidential candidate Saturday and urged incumbent President Soeharto not to run sincerity and honesty ... I will be ready to lead this country if it is the wish and aspiration of the people," she said at a ceremony commemorating the PDI's 25th anniversary. Amien said Megawati's declaration was a greatly needed breakthrough for Indonesia. Few political figures have dared to step forward and name themselves presidential candidates.
Amien himself, after making countless demands for succession, said he "dared" to become president should he be nominated.
Amien also supported Megawati's call for Soeharto not to seek another term.
"It is time Soeharto stepped down as (this is) a prerequisite to overcome the present multidimensional crisis," he said.
He said it was also time the government encouraged several leading political figures to nominate or be nominated as presidential candidates.
"If the government allows this, at least half a dozen people will come out and (declare their readiness to) replace Soeharto," Amien said.
Megawati cited Saturday names like Vice President Try Sutrisno, Minister of Information R. Hartono, Army Chief of Staff Gen. Wiranto, State Minister of Research and Technology B.J. Habibie, State Minister of National Development Planning Ginandjar Kartasasmita, former vice president Sudharmono and former minister of home affairs Rudini as people who have often been lauded as possible candidates.
Abdurrahman said the country's current political situation was uncertain and subject to social unrest.
"The system of national succession is uncertain ... we do not know how it works," Abdurrahman said, referring to the government's lack of transparency in its efforts to cope with the economic crisis.
"House of Representatives' members should summon the government to explain the crisis, but unfortunately they are not willing to do this. "
He said economic and political reforms were necessary but it would be some time before they can be carried out.
"Something inside our political system must be fixed first," he said.
He warned that people's reach a critical stage in three or four years when they will "take action".
He said people would resort to violence if "the government does not deliver what the people need".
He called on the government to show political maturity in dealing with the mounting public pressure for political and economic reform.
Louise Williams, Jakarta – Indonesia's wealthy, including expatriate staff, faced growing community resentment over the weekend as queuing shoppers blamed the greedy upper and middle classes for buying up stocks of rice, noodles, oil and sugar in the major cities.
Staple goods remained scarce, despite news that an International Monetary Fund team, as well as a separate mission of United States officials, had started arriving in Jakarta to help tackle the economic crisis. Food queues continued into the weekend in most major cities, and the official Antara news agency reported that prices remained unstable. The Soeharto Government announced that a crisis centre had been set up to handle the supply and distribution of basic foods, and assured people there were adequate stocks of staple goods, including rice, to last until March.
The Governor of Jakarta, Mr Sutiyoso, blamed the upper and middle classes for causing the food shortages, which have left shelves empty of staple goods in most supermarkets and created queues at many of Jakarta's traditional markets.
The rush for food, which began when the rupiah suffered a 20 per cent crash on Thursday, has sent prices soaring.
"I strongly urge Jakartans to calm down. Buying up too much food is just a waste," Mr Sutiyoso said. "Lots of people need it. Don't be greedy. The more you buy, the more people will suffer."
Of the wealthy, he said: "It's outrageous. They are hoarding all the food, both fresh and instant. Think of the less fortunate people who can't afford to shop until they drop."
Rising prices at traditional markets threaten to exacerbate the tensions between the rich and the poor, which are fuelled by ethnic differences. Indonesia's minority Chinese, who make up about 3 per cent of the population, play a prominent role in business and trading, and some people openly blamed the Chinese for buying up rice stocks.
A series of riots over the past two years have been triggered by envy of the Chinese minority's business role, and they have become the scapegoats for the grievances of Indonesia's majority Muslim workers.
The Jakarta Post published a front-page photograph on Saturday of Jakarta's poor fighting to buy sugar from the back of a vendor's truck.
Criticism extended to expatriate staff when the conservative Observer newspaper reported that overseas employees were "out in full force buying anything they could stuff into their overpiled trolleys".
The paper said one expatriate was seen "lunging at the last can of Bintang [beer] on the shelf" - a pointed criticism during the current Islamic fasting month when Muslims, who must abstain from alcohol, are unable to drink, eat or smoke during daylight hours.
A prominent Muslim leader said the economic crisis was another form of Western colonialism, arguing that the fortunes of the Indonesian people were being dictated by the rupiah's exchange rate against the US dollar.
The chairman of the Indonesian Ulemas (Muslim leaders) Council, Mr Hasan Basri, said: "Colonisation does not merely mean the entry of a foreign power into a country, but it may take the form of bringing down the value of this country's currency to shatter the economic system." Indonesia's Minister for Manpower, Mr Abdul Latief, has warned that local companies will be unable to continue employing some expatriate workers because their contracts are in US dollars.
Australians make up between 7,000 and 10,000 of the estimated 63,000 expatriate workers in Indonesia. The chairwoman of Indonesian Consumers, Ms Tini Hadad, said of the panic buying: "I fear if this problem is not tackled soon, more widespread upheavals will occur as hungry people become angered with the situation."
Jenny Grant, Jakarta – Opposition figurehead Megawati Sukarnoputri may have nominated herself as a presidential candidate, but she has little chance of success.
What she has done is openly challenge President Suharto and the establishment to address the question of who will succeed him.
In doing so, she has legitimised public discussion of life after Mr Suharto.
The ousted leader of the Indonesian Democracy Party (PDI) announced her intention to run for president in front of 1,000 supporters and the world's media, who packed into her Jakarta home on Saturday.
Juwono Sudarsono, vice-governor of the National Defence Institute, a military think- tank, said: "It's not a serious nomination. It's a good media event rather than a real threat."
But University of Indonesia political analyst Arbi Sanit said: "It has heated up Indonesian politics. She may be playing a political game, but she is certainly challenging the elites to find a new president."
Although frail, Mr Suharto, 76, maintains a firm grip on power.
What he cannot avoid, after reading her nomination splashed across the front pages of the nation's dailies, is that her move will fan public hope of a change at the top that has not been expressed for decades.
"I dreamed last week that Suharto was not President any more. Now I feel brave to talk about that in the daylight," said 28- year-old Fidel.
Ms Megawati is the latest dissident to bite back at a regime that has jailed and silenced its opponents.
Imprisoned former parliamentarian Sri Bintang Pamungkas, ex- PDI member Berar Fathia and popular Muslim leader Amien Rais have all put forward their names for the nation's top post.
Their nominations have been symbolic attacks on Mr Suharto's 32-year-old regime rather than real attempts to dethrone the man who is openly referred to as the "king".
The nomination of Mr Rais is perhaps more significant than that of Ms Megawati, the daughter of Indonesia's first president, Sukarno. Mr Rais is estimated to have 30 million supporters in his Muhammadiyah Muslim group.
Ms Megawati also has nationwide grassroots support, but it is disorganised and disenfranchised.
She has lost her seat in Parliament and lacks any formal channel along which to rise to the presidency.
Perhaps her only avenue is a nationalist-Muslim coalition with Mr Rais. But given their ideological differences, that seems unlikely.
Ms Megawati may have the heart to lead the nation, but if she does not have the mettle to defeat the current regime, her political ambitions might as well be dreams.
Jenny Grant, Jakarta – Chinese Indonesians were yesterday preparing for an eruption of social violence as the economic crisis threatened to widen the gap between the haves and the have-nots.
"The Chinese here are very worried, because if there is any unrest they are always the first target," businessman Eric Lazuardi said.
Ethnic Chinese shoppers at Price Mart bulk discount store said they were stocking up because of concerns about price increases, but also because of possible attacks in the volatile climate.
"Maybe the mobs will destroy all the big stores if they can't buy their rice from the markets," Kartini, an ethnic Chinese shopper, said.
"They might just attack Chinese-owned shops to steal the goods they want."
A wealthy Chinese businessman said he had made arrangements for his children to leave Jakarta and return to college in Australia early.
Another man with children studying in the United States has instructed them to stay away until the political situation cools down.
Mawardi, who owns a computer shop in the north Jakarta electronics area of Glodok, said the community was experiencing a "mass trauma" in the countdown to the presidential elections in March.
"We are all preparing," he said. "Some are sending their money overseas.
"We are all holding US dollars just waiting to see the future."
Some Chinese people said they planned to limit outdoor activities and only travel in their cars during the day.
"Driving on the streets now we have to be more careful to avoid small incidents that could be used by other parties to provoke attacks," said Amir Sidharta, art curator for Museum Universitas Pelita Harapan, part of the giant Lippo Group.
The front line of any violence will be small shop owners who supply basic goods in towns across Indonesia such as rice, salt, mechanical equipment, plastic bags and car oil. Although ethnic Chinese make up between three and five per cent of the population, their wealth is often highly visible.
They are easy targets for the social jealousy of the majority of poor Muslims in the nation of 202 million people.
"Violence against Chinese shopkeepers is likely. Most of the locals blame the shopkeeper for lack of goods or higher prices, rather than the distributor or the Government," historian Ong Hock Ham said.
Chinese shops, Buddhist temples and Christian churches have been attacked in the past 18 months in a series of riots on the islands of Java and Kalimantan.
Last week a riot broke out in the West Java town of Bandung between small stall holders and government officials trying to close their shops.
The stall holders ran amok, throwing stones at dozens of shops, many of them Chinese owned.
While the affluent Chinese have the luxury of leaving the country if the crisis deepens, the majority cannot afford to travel with the rupiah at an all-time low.
"I've postponed my trip to the US with my boyfriend because we can't afford to go right now," bank executive Amy said.
Many Chinese families have infrastructure, factories and property to protect, which could become a more costly business in a time of political uncertainty.
"In order to maintain security at their premises they will have to drop a lot of cash to the military and police for protection," Mr Ong said.
Raju Gopalakrishnan, Jakarta – Pressure mounted on Indonesian President Suharto on Saturday as the country's best-known opposition figure demanded the former general quit at the end of his term in March for leading the nation toward economic chaos.
Megawati Sukarnoputri, daughter of the man Suharto replaced when he took power in Indonesia in 1965, said the 76-year-old president should not be allowed to stand for re- election.
She said she was willing to take the helm.
In the English text of a speech, Megawati told a chanting crowd of 500 people in the garden of her residence on the outskirts of Jakarta: "Suharto's rule as president for 32 years is quite enough."
"I hereby take this opportunity to declare my determination to become the leader of our nation and our people if this is indeed the real consensus of the people," she said as supporters chanted "Long Live Mega."
Earlier on Saturday, shoppers thronged markets to stock up on essentials for the third day running as Indonesia reeled under the twin onslaught of financial turmoil and fears that food would either be in short supply or hit by hyper-inflation.
U.S. and International Monetary Fund (IMF) officials were heading to the country to help defuse the crisis, sparked by perceptions that Suharto's government was backsliding out of commitments made to the IMF in exchange for a $43 billion bail- out plan in October.
But late on Saturday – in an apparent reaction to stinging international criticism – Suharto ordered the postponement or review of 15 major infrastructure projects worth several billion dollars due to the crisis.
State Secretary Murdiono, quoting Suharto, told the official Antara news agency that the projects to be reviewed included a number of power plants and toll-roads.
Megawati said the financial disaster was the work of "economic criminals."
"If the nation ends up having to bear this burden then striped prison uniforms should be sewn for the economic criminals who have destroyed our nation and our economic future," she thundered to loud applause.
What would just be political rhetoric in any other nation carries deep significance in Indonesia. Suharto, a former army general, has ruled the mainly Moslem nation of 200 million people with an iron grip since he took over from founding president Sukarno, Megawati's father, and has brooked little dissent.
Criticising him is a criminal offence.
Megawati, ousted as leader of the minority Indonesian Democratic Party (PDI) by a government-backed faction in June 1996, is considered the only significant opposition figure.
In July that year, Jakarta was hit by its worst riots in more than two decades after supporters of Megawati were evicted from their party headquarters for refusing to give way to her government-backed rival who replaced her as head of the PDI.
At least five people were killed, more than a hundred injured and buildings and cars set ablaze by angry mobs after her supporters were attacked by police and rival partisans.
Suharto is widely expected to seek a seventh five-year term of office in March presidential elections but Megawati said he should not be allowed to do so.
A diplomatic analyst questioned whether Suharto would heed the calls to step down. "Suharto is known to be a fighter," he said.
Suharto's half-brother was quoted in the Kompas daily on Saturday as saying the former general wanted to retire but would only do so when he was assured that any successor could shoulder the responsibilities of leadership.
It was a dramatic end to a day when Indonesia was looking forward to a weekend breather from the punishment its rupiah currency and stock market have been taking.
But the focus shifted to food markets earlier in the day as crowds bought up rice, sugar, flour, cooking oil and milk.
Analysts said the situation was potentially explosive, since any paucity of food had even greater potential than the monetary crisis to trigger social unrest.
They said shortages of essentials in the Islamic holy month of Ramadan and the festival at the end of it could have dangerous implications for social stability.
The government signalled it was aware of the danger.
State news agency Antara said the government had raised short- term rice imports to two million tonnes from 1.5 million and that controlled prices of rice and flour would not be raised.
U.S. President Bill Clinton intervened in the crisis on Friday, telling Suharto that Indonesia had to comply with the IMF reforms and announcing he would send Deputy Treasury Secretary Lawrence Summers to the region this weekend.
Separately, IMF Managing Director Michel Camdessus and First Deputy Managing Director Stanley Fischer are also visiting Jakarta from early next week.
Indonesia has long been a major regional ally of the United States. The sprawling archipelago straddles the equator for some 3,000 miles (5,000 km) and major trade routes from the Far East to the West pass through its waters.
Until last week calls for his removal were unthinkable, but there are now public appeals for a change in government.
But what many analysts fear is the unrest that could accompany such change.
The only political transition since Indonesia gained independence from Dutch colonial rule over half a century ago was when Suharto took power from Sukarno in 1965 after what the government claims was an abortive Communist coup. Some 500,000 people were later killed in anti-Communist pogroms.
| Arms/armed forces |
Following a meeting with General Feisal Tanjung, commander in chief of the armed forces, US Secretary for Defence William said that the IMET programme would be continued. He promised General Tanjung that he would immediately press Congress for the programme to be restored.
In October 1992 (?), the Indonesian government decided to stoptaking part in the programme as the US was linking it with human rights issues.
Cohen said the programme would strengthen the ties between the armed forces of the two countries and the two governments.
Feisal Tanjung said he would be very happy if the programme were continued because most Indonesian officers have had training under IMET. The programme is very important to ABRI. It helps to create close personal ties between young Indonesian officers and the US armed forces, facilitating coordination. 'I am certain that the Pentagon will support the move to restore IMET for Indonesia,' said Tanjung.
Cohen also told the ABRI commander that the US is closely following events in Southeast Asia and hopes that stability will be preserved throughout the region. He said that the presence of US troops is an important part in the efforts to preserve stability. This would involve reinforcing political ties and holding joint exercises. He said that if the US were to turn its back on the region, inter-state rivalries could erupt, such as conflicts over the Spratly Islands, with very harmful consequences.
Cohen, who was accompnaied by ten staff officers from the US and from the US embassy in Jakarta, later paid a visit to the headquarters of the red-beret special forces, Kopassus in Cijantung.