•  Looting, prayers greet departure of troops
•  Amnesty lashes out at UN
•  At least 34 killed in Oekussi, refugees say
•  Another mass grave found in East Timor
•  Timorese farmers forgo coffee crop for corn
•  Militias feel they're being abandoned

•  Sulawesi students torch bus

•  Army massacred unarmed civilians: probe
•  Thousands rally to demand referendum

•  Wahid retreats from angry protesters
•  Question marks over Wahid team
•  A who's who in the National Unity Cabinet
•  In new cabinet, most parties have a place
•  Indonesia to reopen case against Suharto
•  Balancing act will create problems
•  Poll shows strong faith in new government
•  New cabinet heavy on compromise
•  Lineup of National Unity Cabinet
•  Wahid must govern nation torn by problems
•  Support for the militias will cease: Wahid

•  Soldiers' shame at shooting civilians

•  Wahid's task: fix a catatonic economy
•  Market damped by new cabinet, Y2K fears
•  Politics, scandal put the brakes on recovery

Indonesian students return to the streets

Jakarta -- A group of Indonesian students Wednesday held their first street rally since President Abdurrahman Wahid took office to reaffirm their committment to act as a watchdog on the government.

The students, who have used mass street protests to try to push the military out of politics since before the fall of former strongman Suharto last year, called on Wahid to rid the new cabinet of its five military members.

Some 30 students of the Indonesian Students' Network, later joined by 15 colleagues from the University of Indonesia, staged the rally at a busy roundabout in central Jakarta, a favorite location for mass protests in the days leading up to Wahid's election on October 20.

Ari Wibowo, the secretary general of the student body of the University of Indonesia said that students would give the new government 100 days grace to see if the new ministers, including the five military men, could perform well.

"There are still five military personnel sitting in a five civilian ministerial positions. If it is still possible, this cabinet should be reshuffled, or if not, we still have the tolerance to wait for their future actions, by giving them 100 days," Wibowo said.

He said that several issues such as the upholding of the rule of law, including in the graft case against former president Suharto, remained of importance to the students.

Another student leader, Tubagus Ganden from the Bogor Institute of Agriculture, said the students wanted to remind the new government not to forget key reform demands.

These include the scrapping of the military's political role, clean government, prosecution of all those involved in corruption and human rights abuses, including military figures, and respect for the law.
 

East Timor

Looting, prayers greet departure of troops

Dili -- Hundreds of East Timorese Sunday looted the empty barracks of the Indonesian army in Dili several hours after the last occupying troops sailed out of the harbour under the cover of darkness.

People of all ages -- arriving on bicycles, carts, motorbikes, cars, lorries and on foot -- calmly sifted through the waterfront barracks and carried off any scrap or souvenir they could lay their hands on.

Chairs, tables, potted plants, neon light fixtures, cables and even a set of dumb-bells for weight training emerged from the building balanced on bicycles or perched awkwardly on shoulders, an AFP reporter said.

One man carried out a large plaque of an eagle -- the Indonesian national symbol -- with the wings symbolically smashed off while two others struggled to assemble a bedframe on the street.

"There is nothing like a good loot to start off the week," said a watching Australian soldier with the International Force for East Timor (Interfet), which allowed the dawn spree to carry on for several hours before gradually stopping the flow of looters entering the barracks.

The sound of hymns being sung in the open air at a large church across the road from the barracks filled the air as the town geared up to celebrate a Catholic religious feast marking the apparition of the Virgin Mary in the Portuguese town of Fatima in 1917.

"I am very, very happy and give thanks to God for his mercy that he gives us deliverance from evil," said 31-year-old seminarian Armindo Brito of the troop withdrawal, as he decorated a statue of the Virgin Mary.

Brito was to have been ordained on September 24 but he was forced to flee to West Timor as pro-Jakarta militias went on a murderous rampage after the people of East Timor voted nearly four-to-one for independence from Indonesia in an August 30 referendum.

A man named Luis, who was also helping to spruce up the square in front of Nobel laureate Bishop Carlos Belo's compound for an afternoon procession and service, said he had no idea the last Indonesian troops had left.

Asked if he was happy, his face lit up: "Of course, because now we are free from the Indonesian military," he said.

The last soldiers from a 1,000-strong Indonesian garrison in the territory slipped out from Dili harbor aboard the Teluk Banten 516 troop carrier in the early hours of Sunday morning, ending 24 years of often brutal military occupation.

An Australian soldier cast off the last line, and the ship headed into the darkness to the sound of catcalls from three East Timorese men on a motorcycle watching from behind a dockside fence.

On Saturday East Timorese independence leader Xanana Gusmao took part in a low-key ceremony at Dili's Comoro airport with Indonesian top brass to formally recognise the departure.

Gusmao, smiling and relaxed and dressed in military combat fatigues, shook hands with Brigadier General J.D. Sitorus, the commander of the last Indonesian troops, and ambassador Taufik Sudarbo, head of the Indonesian task force.

Interfet commander Major General Peter Cosgrove also attended the simple ceremony along with the acting head of the UN Transitional Authority for East Timor (UNTAET), Ian Martin.

After lowering the Indonesian flag at the main barracks, around 130 troops left by air on two C-130 Hercules planes while the remainder departed on two troop ships.

More than 25,000 Indonesian troops have left East Timor since Interfet peacekeepers arrived on September 20 in response to international outrage over the scorched earth campaign by the militias with the open support of elements of the Indonesian military.

Indonesia invaded the former Portuguese colony on December 7, 1975 and annexed it seven months later in a move never recognised by the United Nations.

Amnesty lashes out at UN

Human rights group Amnesty International lashed out at the UN Thursday for dragging its feet in sending investigators into East Timor as it released a new report detailing alleged atrocities there.

"Many of the atrocities witnessed in East Timor constitute crimes against humanity and war crimes," Amnesty said in a statement. "Every day that the UN delays its international investigation, vital evidence may be lost or destroyed."

United Nations Secretary General Kofi Annan ordered an inquiry into human rights violations in the former Indonesian-controlled territory on October 15.

A five-member panel has been appointed by UN Human Rights Commissioner Mary Robinson to lead the investigation. But it has yet to travel to East Timor and is only expected to arrive in Geneva for training early next month.

Amnesty said a prompt investigation was crucial into the alleged human rights violations there during a three-week rampage by pro-Jakarta militias following an August 30 vote for indepence by the East Timorese.

There was also evidence atrocities were continuing, Amnesty said, particularly in militia-controlled refugee camps in West Timor, where more than 250,000 East Timorese fled last month.

"Until the UN proves that it is serious about investigating the crimes committed in East Timor, such individuals will continue to assume that they can commit violations with impunity," the group said.

"International investigations must commence without any further delay and with the full support of the Indonesian government and the international community."

Amnesty said investigating the alleged atrocities and holding those responsible accountable was essential for East Timors future.

"A shattered society can only be rebuilt on the foundation blocks of justice not impunity," the group said. "Strengthening the rule of law and respect for human rights is an essential step for future peace and reconciliation in East Timor."

At least 34 killed in Oekussi, refugees say

Oekussi -- At least 34 people were believed to have been killed in the East Timorese enclave of Oekussi, victims of militia atrocities, according to a list compiled by returning refugees.

A photocopy of a handwritten list, giving the names and gruesome details of how 34 people were shot or hacked to death, was given to reporters who visited Oekussi for the first time since the enclave was stormed by multinational peacekeepers last Friday.

One of the returning refugees, Joaquin Asqueli, said he had seen three bodies in a rice field about one kilometer from the church, the sole building left standing in town.

"They were macheted and the heads were cut off. I think the bodies had been there for about two weeks," he said. One witness said he knew of three bodies lying at the bottom of a well on the outskirts of the town.

Other witnesses chronicled the systematic killing and looting of the moutainous enclave on the northern edge of Indonesian West Timor. "They shot and killed all the pigs, they shot and killed all the other animals. That is why you don't see them," said school-teacher Atilio da Costa, 36.

When seen from the air by helicopter, the damage in Oekussi is overwhelming. Virtually every building is gutted and roofless and all that remained of thatched huts were charred, blackened circles on the ground.

Only the cathedral, which serves as a focal point for humanitarian aid, remained intact and has attracted increasing numbers as refugees slowly return from hiding in the barren hills surrounding the town.

Many refugees were camped out under blue plastic tarpaulins strung between bamboo poles, most with their only possessions the clothes they were wearing.

The destroyed town market has been converted into a temporary field hospital where most people were being treated for diahhrea, vomiting and acute malaria, doctors said.

On the first day troops of the International Force for East Timor (Interfet) arrived, five people were treated for serious wounds, from gunshots or machetes.

Despite the widespread destruction, the port remains a striking seaside location whose main boulevard is still lined with banks of bright flowers, providing a disturbing contrast to the burned out houses behind them. Oekussi served as the capital of the former Portuguese colony until it was moved to Dili in 1769.

Only a short distance, between a concrete wharf at one end of the beach and a church a few kilometres away, has been secured by Interfet troops who have been unable to widen their area of control because of the harsh mountainous terrain.

Although there have been no recent reports of militia activities within the enclave, Australian Major Andrew Plant said "there are still reports that they are trying to prevent people from returning across the border from West Timor."

About 4,000 people have registered with Interfet since they arrived last week, but the majority of the enclave's 50,000 people remain in hiding in the hills or across the border in West Timor, which completely surrounds the enclave.

On Monday, a UN official said pro-Jakarta militias had committed systematic looting, rape and killing in the Oekussi enclave.

"There has been systematic intimidation, killings, a number of rapes and people being forced over the border," UN humanitarian affairs officer Patrick Burgess said after visiting the enclave.

Burgess said Oekussi town, which was previously home to 11,000 people, was devoid of people, vehicles and even animals.

Another mass grave found in East Timor

Dili -- Civilian and military police have discovered another mass grave holding up to 10 bodies at a site on the outskirts of Dili, officials said Monday, as the Australian-led multi-national peacekeeping force spread into more devastated territory in the East Timorese enclave of Oecussi.

A senior civilian policeman working with the United Nations said relatives of the victims had led investigators to the site outside the capital on Sunday. "A joint investigation will be done between the military and civilian police," he said.

A spokesman for the International Force for East Timor (Interfet), Colonel Mark Kelly, said at the weekend that investigators had examined sites containing a total of 95 bodies since the force deployed on September 20 after weeks of militia violence and destruction in respponse to an overwhelming ote for independence from Indonesia.

Reports so far indicated up to 150 bodies would be found but some investigators refuse to rule out a bigger total when the estimated 250,000 East Timorese refugees return from West Timor and hundreds of thousands of internally displaced people move back to their homes and were able to report other possible atrocities.

The peacekeepers have yet to find any evidence of large-scale atrocities in the 400-square kilometre enclave of Oecussi on the north coast of West Timor since they landed there last Friday.

Timorese farmers forgo coffee crop for corn

Rajiv Chandrasekaran, Ermera -- In a country where most people grow just enough rice and corn to slake their hunger, Jose Madeira Ximenes never consumed any of his crop.

Every September, he would put it in bags and haul it -- about 700 pounds worth -- to this small town in the steep hills of central East Timor, where he would sell it to exporters. Months later, it would appear in American and European gourmet shops and cafes as high-priced, organically grown Arabica coffee beans.

But this year, Ximenes, 23, never had a chance to start his harvest. Pursued by local militia groups because he campaigned for East Timor's independence from Indonesia, Ximenes went into hiding in April, returning only recently to find his plants stripped of beans, presumably stolen by pro-Indonesian militiamen.

Cash-strapped and hungry, Ximenes and many of his neighbors who have suffered similar crop losses are moving back to subsistence farming. They recently planted corn on their coffee plantations, hoping for a first harvest in three to four months. "Now the focus is on corn, not coffee," said Eduardo de Dues Barreto, local leader of the National Council for Timorese Resistance, the political arm of a pro-independence insurgency that fought Indonesian rule for two decades.

That shift highlights the challenges East Timor faces as it seeks to recover from widespread destruction caused by the militia groups after the August 30 independence referendum and become an economically independent nation. Coffee is the biggest export -- valued last year at $30 million in a total economy that generated only $130 million -- but this year, more than half the crop never made it to market. And the subsequent emphasis on other crops could hinder efforts to expand and promote production of Timorese coffee, agricultural specialists say.

Other economic development dreams also have been dashed by the recent militia violence. East Timor has pristine beaches and scenic hillside towns, but plans to promote tourism have been shelved since there is little electrical, water or telephone service and more than 75 percent of commercial buildings have been burned out or demolished.

"It's going to take a long time before people will come to East Timor for a holiday," said a Western diplomat who has surveyed the devastation here.

Another of East Timor's assets is the Timor Gap, a stretch of seabed between here an Australia that is rich in natural gas. But the gas deposits are so deep beneath the ocean floor that analysts question whether extensive drilling in the area is worth the investment.

International development specialists expect that this new country, which will be administered by the United Nations for the next two to three years, will be heavily reliant on foreign aid and loans, particularly to finance reconstruction. When East Timor was a province of Indonesia, local tax revenue covered only 15 percent of the cost of public services; the government in Jakarta paid the rest, according to the World Bank.

"There's not much of an economy to speak of here," said a UN official. "They're going to need help for a long time."

The United Nations plans to appeal to member countries Wednesday to pay for about $180 million in preliminary humanitarian assistance. Later this week, a delegation from the World Bank and the International Monetary Fund are scheduled to arrive in Dili, East Timor's capital, to begin discussions with UN officials and local leaders about financial assistance aimed at longer-term reconstruction projects.

Economists and development experts say the most promising business enterprise here is the production of organic coffee beans, an activity that began accidentally, because the East Timorese were too poor to afford fertilizers and pesticides for their crops. Sales of the beans have boomed recently, growing from 5,000 tons in 1995 to more than 10,000 tons last year.

In Ermera, 20 miles southwest of Dili, the importance of coffee production is not lost on Barreto and other local leaders. But these days, he said, townsfolk have more pressing problems.

"We are just out from a very, very bad time," said Barreto, cradling his head in his hands. "We have lost everything we had -- our homes, our clothes -- and right now, we are starving."

Relief organizations have been delivering rice to the town, but Barreto said that people here want to become self-sufficient before they think about coffee. Barreto, who has commandeered the town's gutted police station as his office, said people will go back to their coffee crops "when we are not starving."

Militias feel they're being abandoned

Dini Sari Djalal, Atambua -- Claudio de Jesus Lai trusts very few people. The East Timorese anti-independence activist mans the gates of Tenubot refugee camp in Atambua, West Timor, sternly interrogating visitors. "Western countries are using Asians to spy on us," he snaps at a visiting reporter. "How do I know you're not one of them?"

Lai, an aide to East Timor's Indonesian-appointed governor, Abilio Soares, is suspicious even of the Indonesian government, despite having worked for it through the territory's chaotic campaign for independence. "Once I considered buying land here in Atambua," he says, "but I didn't, because I thought Indonesia would never give up East Timor."

Tenubot is Lai's fiefdom -- a sprawl of tarpaulin huts crammed with frightened refugees who obediently heed his word. The red- and-white Indonesian flag flaps over the tents. The camp's 600 families, mostly from the western part of East Timor, seem resigned to their languid camp lives. Nonetheless fear hangs over the place. Armed men patrol the alleys. They are the only ones willing to speak, and they share Lai's mood of angry betrayal.

The fate of thousands, perhaps hundreds of thousands, of East Timorese refugees -- and of thousands of pro-Jakarta militiamen -- is slowly beginning to take shape in places like Atambua. Though the United Nations has received the go-ahead to start repatriating refugees to East Timor, tens of thousands have already become part, willingly or otherwise, of Indonesian government programmes that will see them resettled elsewhere. Meanwhile, bitterness is growing among militia members, who worry that the Indonesian armed forces, having supported their brutal campaign to forestall East Timor's independence, may now be abandoning them.

A mood of resignation also seems to have set in at the higher levels of the Indonesian government, now that East Timor's independence has become assured. Armed-forces chief Gen. Wiranto and other senior Indonesian officials, whose role in East Timor has been less than clear, seem to understand that if they don't disarm the militias and ease the refugee crisis they risk further world condemnation and prolonged suspension of vitally needed aid.

Despite recent clashes between the UN-backed forces in East Timor and armed militias, Jakarta maintains that orders were issued in early October for Indonesian soldiers to disarm their militia allies. After visiting the scene of a recent border clash between UN peacekeepers and Indonesian policemen, Wiranto declared nearby Atambua a militia-free zone and ordered militia members back to camps further inside West Timor.

For the militiamen, an armed return to East Timor could be suicidal. The militias claim 53,000 recruits, but Western intelligence sources put the number of potential guerrilla fighters at no more than 7,000, including a 2,000-strong hard- core trained by the Indonesian special forces, or Kopassus.

Meanwhile, UN-backed troops have established a firm hold of the border areas of East Timor, and any insurgency would face serious food-supply problems. In addition, there would be pressure on the Indonesian military not to support them. Says one pro-Jakarta supporter in Atambua: "Why doesn't Wiranto just admit they've given up on us? I tell the militias, why do you continue to believe he will help?"

There are plenty of reasons why Wiranto would be hesitant to support them. UN officials are now saying the death toll in the post-referendum rampage by militiamen and Indonesian soldiers may be less than originally feared. But Indonesia's military leadership is nonetheless known to be deeply worried about the prospect of war-crimes trials. There are other serious concerns, too. In response to the Timor situation, the United States is withholding critical spare parts for Indonesia's 20-plus C-130 transport aircraft -- the ageing workhorses essential for moving troops and equipment around the country in the event of civil unrest or other emergencies.

Militia leaders continue to make threats, and have moved forces back and forth -- up to the East Timorese border and then away. But some members are starting to despair. "Look at what's become of us," says Filomeno Dos Santos, a commander of a militia group called Mahidomi, whose name means Live and Die for Autonomy. "We are fighting with all our might, but we are still here." Dos Santos's followers and their families live in a squalid camp outside Atambua.

Of course, they're better off than most of the many thousands of refugees that the International Committee of the Red Cross says are encamped in West Timor. The UN is sending at least 300 people a day back to East Timor by charter flight, and it plans to start moving up to 5,000 refugees a day by sea. But in the meantime, Jakarta seems intent on pushing ahead with plans to resettle many in other parts of Indonesia. In recent weeks, officials have been distributing registration cards for transmigration -- a people- moving programme long established in Indonesia. Refugee families are promised a house, a hectare of land, rice and financial allowances if they agree to resettle in West Timor or go elsewhere in Indonesia. For many, fearful of the watchful militias, the offer is one they're unable to refuse.

Transmigration Minister Hendropriyono, an active three-star general who has spent much of his career as an intelligence officer in the special forces, has pledged to move the remaining refugees within the next two months, some to distant locations such as the Maluku islands. More than 2,000 East Timorese have already been sent to Irian Jaya. The pace and enthusiasm at which the transmigration plans have proceeded is astonishing. The Public Works Ministry, for example, has speedily erected wooden shacks in some of the camps -- infrastructure that took months to provide in other trouble spots such as West Kalimantan.

Aid organizations say it's difficult to tell who really wants to go. "It's all over already," says one foreign aid worker. "The militia are already in control of the people in the camps." Indeed, men in militia shirts monitor interviews with the refugees. As one farmer says he has signed up for transmigration, his eyes never leave the ground. After neighbours leave the hut, he admits: "I'm doing it because I'm scared."
 

Political/economic crisis

Sulawesi students torch bus

Jakarta -- Students in Makassar, the capital of Indonesia's South Sulawesi province set fire to a bus after a minister described their demand for an independent state as "half-hearted," reports said Saturday.

Regional Autonomy Minister Ryaas Rasyid said on the private televison SCTV Friday that the students' demand for South Sulawesi to break away from Indonesia was not serious because their action had yet to claim any victims, the Media Indonesia newspaper said.

Angered by the minister's statement, students at the Makassar State University ambushed a public bus passing their campus and set it on fire, Media said.

A student leader was quoted as saying that "because of the deliberate instigation, the students wanted to show that the demand is for real."

There were no casualties in the incident. A Makassar police official said one student had been arrested.

Students in the province have staged independence rallies following the failure of former president B.J. Habibie to win a new term on office. Habibie, a native of South Sulawesi, was forced to drop out of the presidential race a day before the October 20 election.

The students have charged Jakarta's political elite, most of them Javanese, with failing to heed the aspirations of people in the eastern part of Indonesia. The protests came less than two months after East Timor voted for independence.
 

Aceh/West Papua

Army massacred unarmed civilians: probe

Jakarta -- Indonesian troops shot dead more than 50 unarmed civilians in Aceh province in July, according to a local government probe rejecting allegations the victims were separatist rebels, reports said Sunday.

"The only shooting was by the TNI [Indonesian army] and there is not enough evidence of resistance," said investigation team member Azhary Basar, quoted by the official Antara news agency.

The government team said the villagers in the Beutong Ateuh area of West Aceh had the opportunity to flee the area after learning of the military's presence four hours before the July 23 attack.

"They [the civilians] could have run away or if they had had weapons they could have consolidated their troops to fight," Basar said, adding that there was no evidence of separatist rebel activity in the area at the time.

The fact-finding team -- composed of government officials, human rights activists and police -- conducted the investigation into the massacre in August and briefed the press in Aceh on its findings on Saturday.

Rights groups have said the villagers were asked to gather for an identity check on a field near an Islamic boarding school run by former political prisoner Tengku Bantaqiah. The villagers were then allegedly lined up and sprayed with bullets, leaving at least 51 people dead including Bantaqiah.

The military insisted the civilians were separatist rebels killed in an armed skirmish and that soldiers were carrying out an operation to find guns allegedly hidden by Bantaqiah and armed followers in mountainous West Aceh.

Thousands rally to demand referendum

Jakarta -- Tens of thousands of people demonstrated in the separatist-plagued Indonesian province of Aceh to demand an East Timor-style referendum on independence, a report said Friday.

The protesters -- who came from all over the province in cars, motorcycles and buses -- gathered Thursday at the Darussalam University in Banda Aceh, the provincial capital, the Aceh-based Serambi daily newspaper said.

Speeches were made for around 90 minutes and shouts of "Long live Referendum" and "Freedom" were yelled by the crowd, said the report.

After the rally the demonstrators formed a huge parade and in a rare move police helped to direct the convoy through the streets to avoid traffic jams and made no attempt to break up the protest.

The Indonesian authorities have in the past often tried to break up such demonstrations by force, sometimes using live ammunition.

Thousands of Banda Aceh residents lined the capital's main streets chanting "God is Great" and "Freedom" as the convoy passed.

In the presence of local MPs, thousands of youths and students then gathered in front of the provincial parliament building and swore they would "fight for the integrity and value of Aceh people until their last drop of blood."

The acting chairman of Aceh's regional house of representatives, Nasir Djamil, told the students in tears their demands were testimony to the dire situation in Aceh.

"If a referendum has become the demand of the Aceh people, we will use all our might to fulfill that demand. We will support a referendum," he told the crowd, according to the paper.

New President Abdurrahman Wahid has insisted he wants to do everything possible to stop the country splitting up, but he has also signalled that he is in favour of devolving more power to the regions with a federal-type system of government.
 

News & issues

Wahid retreats from angry protesters

Jakarta -- Indonesia's new President faced his first security scare from irate protesters yesterday after delivering a tough anti-corruption warning as his cabinet was sworn in.

The cabinet that was announced on Tuesday eliminated the information and social affairs ministries, sparking protests on Thursday and yesterday by civil servants fearful for their jobs.

As the new ministers gathered for their official group photograph in front of the presidential palace, hundreds of ministry employees gathered in a park across the street, shouting: "What will happen to our jobs?"

President Abdurrahman Wahid and Vice-President Megawati Sukarnoputri got into a golf cart and headed to talk to the protesters. But the crowd suddenly surged forward, forcing the head of state to turn around.

"Demonstrations are nothing new for me," Mr Wahid said. "I wanted to go to speak to them. But my security men said it was unsafe."

In a nationally televised address, Mr Wahid -- better known by his nickname Gus Dur -- dismissed criticism of the make-up of his 32-member "national unity" cabinet and said it would serve until 2004. But he added that any minister suspected of taking bribes would be expected to resign.

The cabinet was installed at the start of what many hope will be a new era of democracy after decades of dictatorial rule, capped by two years of political instability, economic crisis and civil unrest.

Mr Wahid has promised his team will be free of the graft that was rampant under the authoritarian rule of Suharto and his successor, Bacharuddin Habibie.

He repeatedly stressed the need for clean government in a speech at the ornate Merdeka Palace. "I hope all of you can live simply, fairly and honestly and be able to perform your duties as expected by the people," Mr Wahid said. "If any among you are brought to court by the Attorney-General, then it is better for you to resign."

As part of their oaths of office, each minister pledged "not to receive any gifts from anybody who I know, or think, will have a hidden interest related to my duty and position".

Mr Wahid warned his new team they faced the tough job of maintaining national unity and fixing the economy. He said they also should push for greater democracy.

Among those sworn in was new armed forces commander Admiral Widodo Adi Sutjipto. Another, Minister of Mines and Energy and former general Susilo Bambang Yudhoyono, said the military would have to relinquish its dominant role in politics.

"The military has to revise its doctrine and mission, moving away from day-to-day politics and concentrating on reforms and security," said Mr Yudhoyono, whom analysts describe as one of the army's top reformists.

Question marks over Wahid team

Barry Porter -- President Abdurrahman Wahid's reformist cabinet ministers have begun the huge task of resolving Indonesia's economic mess and restoring investor confidence.

The new economic team, which got down to work yesterday, has made all the right noises -- promising to work closely with the International Monetary Fund and pledging clean government -- but question marks remain over their ability.

In particular, the Indonesian media and analysts have expressed concern over the appointments of Finance Minister Bambang Sudibyo and Trade and Industry Minister Yusuf Kalla.

Mr Sudibyo stands accused of lacking economic knowledge, while Mr Kalla has been criticised for having too many dodgy friends from the old order and conflicting business interests.

Before announcing his 32-member cabinet Mr Wahid explained there would have to be compromises as he had political favours to repay.

More popular has been the appointment as economics co-ordinating minister of Vice-President Megawati Sukarnoputri's long-time confidant Kwik Kian Gie.

He is a respected ethnic Chinese economist, a well-known columnist, and a vocal critic of corrupt practices during former president Suharto's autocratic 32-year rule.

Yet even Mr Kwik has some convincing to do. His comments during June's general election campaign that he would re-introduce a fixed exchange rate against the US dollar drew a cold response from the IMF and financial markets.

He has since backtracked and yesterday reassured investors that the existing floating rate system was "the most appropriate system now".

Laksono Widodo, research head at ING Barings in Jakarta, said: "Kwik is honest and has integrity, but also known to be quick- tempered. As for the new finance minister, so little is known of him."

Foreign investors are not expected to come racing back in. Fund manager Mark Mobius, who oversees a US$12 billion global investment portfolio at Templeton Asset Management, said: "We are going to be really cautious. Foreign investment will come back, but only if they really show that reforms and rule of law is in place."

Mr Wahid has promised to make rule of law one of the foundations of his government, replacing the previous law of presidential whim. The new president has also pledged to make economic recovery one of his two top priorities, alongside restoring national integrity.

David Chang, research head at Trimegah Securities, said: "His policy speeches seem to be market friendly. He has been saying the right things, like he wants to attract foreign investors and reduce violence in various parts of the country."

However, Chong Yoon Chou, fund manager at Aberdeen Asset Management, said: "The problem with Indonesia is always on the implementation side. We expect there will be bumps along the way. There is no doubt investor interest will come back again, but it is up to the new government to prove its credibility."

Logic would suggest that with such a huge chunk of political uncertainty out the way, the rupiah and Jakarta stock market would strongly rally. Instead, initial market response to Mr Wahid's and Ms Megawati's appointments has been lacklustre for a number of reasons.

Analysts say this is largely due to the Y2K computer bug problem. Most big international houses have implemented policies preventing their money managers from making fresh investments in countries believed to be most prone to the bug.

Indonesia, along with Russia, comes out top in many lists of least-prepared nations. Analysts say that, provided Indonesia comes through the year end without too many disruptions, and the new government can underline its credibility, a market rally is more likely in the new year.

Mr Kwik yesterday predicted the rupiah would rally to 6,000 to the US dollar, but gave no time-frame.

Finance Minister Sudibyo is close to National Mandate Party (PAN) head Amien Rais, one of the key opposition leaders who last year helped bring down Mr Suharto.

PAN did surprisingly poorly in the general election but still managed to wrangle a disproportionately high number of senior government posts.

Mr Amien -- one of the so-called "three musketeers" alongside Mr Wahid and Ms Megawati -- has become speaker of parliament.

Mr Sudibyo is chairman of PAN's economic advisory board and a member of the board of directors of the Centre for Strategy and Policy Studies in the central Javanese city of Yogyakarta.

He is also on the board of the leading Muslim organisation, Muhammadiyah, which Mr Amien headed before entering full-time politics last year.

Mr Sudibyo has spent most of his working life as a teacher and is director of the prestigious Gadjah Mada University business school.

He obtained his doctorate in accounting from Kentucky University, yet his relevant experience is being questioned.

"Apart from not being an economist, Bambang all this while has not given too much attention to the day-to-day economics in Indonesia," Revrisond Baswir, a Gadjah Mada University colleague, was quoted as saying in the Kompas daily.

Mr Sudibyo has said his most immediate task will be to "wash the dirty dishes" left by the past administration. "I count the bank restructuring programme among my most challenging tasks," he said. "The government will honour outstanding agreements with the IMF and other financial institutions."

Trade and Industry Minister Kalla, a prominent businessman, is a member of the former ruling Golkar Party and a close associate of outgoing president B.J. Habibie.

He has business and economics degrees, and is believed to be friendly with a number of former president Suharto's so-called cronies. Political analyst Soedjati Djiwandono said: "I am concerned."

His family are also prominent business people, owning the Hadji Kalla Group and holding a stake in heavy equipment manufacturer and distributor Bukaka Group. Mr Kalla heads two Bukaka subsidiaries, Bukaka Teknik Utama and Bukaka Investindo, posts he will no doubt now have to drop.

The appointment of a top military officer, Lieutenant-General Susilo Yudhoyono, as mines and energy minister has also raised eyebrows. He is not believed to have any relevant experience, whereas his predecessor, Kuntoro Mangkusubroto, had been widely respected, even if his attempts to abolish the state oil and gas firm's monopoly failed.

"I did no manoeuvring for a cabinet post, so the announcement came as a surprise. I will try to learn quickly," he told the Jakarta Post.

Other key appointees to the economic team include former respected banker Laksamana Sukardi, as investment and state enterprises minister, and M. Prakosa as agriculture minister.

A who's who in the National Unity Cabinet

Jakarta -- The so-called National Unity Cabinet, announced on Tuesday, lives up to its name as it groups people from different sociocultural backgrounds, professions and political affiliations.

Some of the new ministers are "nobodies" to the media, compared to their colleagues who often appear on television or in print.

State Minister of Research and Technology Muhammad Athoillah Sohibul Hikam is a noted political analyst and a senior researcher at the state National Institute of Science (LIPI). Unlike pure scientists who adopt a "value-free" stance for the sake of impartiality, Hikam opted to side with the proreform movement and become a government critic.

He repeatedly expressed his support for Indonesian Democratic Party of Struggle chairwoman Megawati Soekarnoputri, and prior to the presidential election earlier this month he joined a group of LIPI researchers in rejecting the nomination of former president B.J. Habibie.

Born in Tuban, East Java, a stronghold of Nahdlatul Ulama, on April 26, 1958, he graduated from the School of Letters at Gadjah Mada University in Yogyakarta in 1981. Six years later he took a master's degree in mass communication at the University of Hawaii, where he also earned his master's and doctorate in politics in 1994 and 1995 respectively.

Hikam lives in a modest housing complex in Karawaci, Tangerang mayoralty in West Java with his wife Pudji Winarni and their only child Halida Putri Widyastuti.

Indonesian Military (TNI) Commander Adm. Widodo AS has perhaps been groomed to take the top post in the armed forces since he was named deputy to Gen. Wiranto in August. Born in Boyolali, Central Java on August 1, 1944, Widodo is the first non-Army soldier to clinch the job.

A graduate of the Navy Academy in 1968, Widodo's star started to rise when he was appointed chief of maritime defense of the western fleet in 1993. He was named the fleet's commander in 1995, before taking office as Navy deputy chief in 1997 and Navy chief in 1998.

In an interview published by a magazine recently, Widodo, the son of a modest teacher, said his chose the Navy Academy for a simple reason. "I wanted to go to school without having to pay the school fee," he said.

For Minister of Defense Juwono Sudarsono, military affairs is not a new field since he served as Deputy Governor of the National Resilience Council, the TNI think-tank. His appointment marked the return of a civilian to the post which used to go to military or retired military officers. Djuanda, an engineer, was the last civilian to hold the portfolio during founding president Sukarno's regime.

Juwono has now held a ministerial post under three different presidents. Before President Abdurrahman Wahid picked him upon the recommendation of Gen. Wiranto, Juwono served as minister of environment under Soeharto for two months and a minister of education and culture in B.J. Habibie's 16- month-old Reform Development.

Born in Ciamis, West Java on March 5, 1942, Juwono spent most of his life in the education arena. After graduating from the University of Indonesia in 1965, he taught politics at his alma mater.

Among the scientific titles under his belt are a diploma in International Law he took in Den Haag, the Netherlands, a master's degree from the University of California, the United States, and Ph.D from the London School of Economics and Political Science. A father of two sons, Juwono was promoted to professor in political science in 1989.

State Minister of Tourism and Arts Hidayat Zaelani has known Abdurrahman Wahid long before the latter was elected the president.

Born in Bandung on June 16, 1937, Hidayat, a graduate of the School of Economics at Padjadjaran University in his hometown, nurtured his career at the state postal company PT Pos Indonesia. He was named the company's finance director in 1994, before being appointed a commissioner earlier this year.

Residents of Jakarta are familiar with Minister of Home Affairs Surjadi Soedirdja, who served as the city's governor between 1992 and 1997.

The career of Surjadi, a retired Army lieutenant general, looked like coming to an end after he relinquished his post as Jakarta governor. Prior to the announcement of the last Cabinet team under Soeharto in 1997, Surjadi was mentioned by many as a strong candidate for the ministerial post he now holds.

Before his appointment to the Cabinet, Surjadi, who was born in Serang, West Java on October 11, 1938, held no position in the bureaucracy.

Surjadi extends the list of former governors who take up the home affairs portfolio after the late Suparjo Roestam of Central Java and Yogie S. Memet of West Java.

State Minister of Environment Sonny Keraf was born in Flores in East Nusa Tenggara on June 1, 1958. A lecturer at Atma Jaya Catholic University since 1988, Sonny headed the ethics development center at the university until earlier this year.

Graduating from Drijarkara School of Philosophy in 1988, Sonny took his doctorate at the Higher Institute of Philosophy Catholieke Universiteit Leuven in Belgium with a thesis on business ethics in the free market in 1995. He also took a master's degree from the same university in 1992.

A father of three children, Sonny worked as an editor for Jakarta-based book publisher Obor between 1985 and 1988 and has attended a number of seminars.

State Minister of Youth Affairs and Sports Mahadi Sinambela follows in the footsteps of his fellow Golkar executives to hold this nonportfolio post after Abdul Gafur, Akbar Tandjung and Agung Laksono.

Born in Tanjungbalai in North Sumatra on August 5, 1947, he graduated from the School of Social and Political Sciences at Gadjah Mada University in Yogyakarta in 1974. He then joined the bureaucracy as an employee of the Ministry of Home Affairs until 1994, when he was elected as a House of Representatives legislator.

He represented the Golkar Party at the General Elections Commission (KPU), before joining the People's Consultative Assembly as the North Sumatra representative.

For Minister of Health Achmad Sujudi, this post will crown his 27-year- long career as a civil servant at the same ministry. His last position was Director General of Contagious Diseases and Settlement Environmental Sanitation, Ministry of Health, from June 1998.

Born in Bondowoso, East Java, on April 11, 1941, he graduated from the School of Medicine, University of Indonesia, 1972. Eight years later he earned a degree in surgery from the same university. He continued his studies with the Master Program of the School of Health Services Management, The New University of New South Wales, Australia. He completed his studies in 1990.

A Muslim, he lives with his family in Bumi Serpong Damai, Tangerang. There is little information about his family.

President Abdurrahman Wahid said he expected Minister of National Education Yahya Muhaimin to arrive soon from Washington, where he is currently serving as an education attache at the Indonesian Embassy in the United States.

Born in Bumiayu, Central Java, on May 17, 19433, Yahya graduated from the School of Social and Political Sciences, Gadjah Mada University in 1971. He earned his Ph.D in political science at the Massachusetts Institute of Technology in the US in 1982.

A close friend of People's Consultative Assembly chairman Amien Rais when they were lecturers at Gadjah Mada, he is married to Choifah and has three daughters and one son.

Minister of Finance Bambang Sudibyo openly acknowledged on Tuesday that his close friend, speaker of the People's Consultative Assembly Amien Rais, played a major role in his appointment to the ministerial post.

Born in Temanggung, Central Java, on October 8, 1952, Bambang spent most of his career at Gadjah Mada University, where he completed his studies in economics in 1977. After taking his MBA from the University of North Carolina in 1980, he obtained his Ph.D from the University of Kentucky five years later.

His current position is that of director of the Magister Management Program at his alma mater. Known as a devout Muslim, he is married to Retno Sunarminingsih, a pharmaceutical doctor, who gave him two sons.

Minister of Transportation Lt. Gen. (ret) Agum Gumelar is known as a general who has strong capabilities in dealing with student demonstrations, such as he proved when he was in charge of Sulawesi security a few years ago.

Born in Tasikmalaya, on December 17, 1945, Agum graduated from the National Military Academy in 1968. He was the commander of the Army's Special Force (Kopassus) from July 1993 to August 1994.

He played an important role in helping Megawati Soekarnoputri win the top position of the Indonesian Democratic Party (PDI) in 1993.

A soccer enthusiast, Agum chairs the Indonesian Football Association (PSSI). A devout Muslim, he is married to Linda Achmad Tahir, daughter of former telecommunications and tourism minister Achmad Tahir, in 1974, who gave him two children.

Coordinator Minister of People's Welfare Hamzah Haz served as state minister for investment, until May, under then President B.J. Habibie.

Hamzah, 59, is the chairman of the Muslim-oriented United Development Party (PPP), and has been a career politician since the 1971 general election when he was a candidate for the then Nahdlatul Ulama (NU) Party. Megawati defeated him in the vice presidential election on Thursday. Born in West Kalimantan, Hamzah is the father of 12 children.

Minister of Manpower Bomer Pasaribu is not a new comer to manpower affairs, because he is currently the chairman of the Indonesian Workers Association (SPSI).

Bomer, a Muslim, was born in South Tapanuli, North Sumatra, on August 22, 1943. He earned his degree from a private university in Medan. He had previously served as member of the House of Representatives' Golkar faction.

Minister of Religious Affairs Tholhah Hasan was born on October 10, 1936 in Tuban, East Java, from an NU family. He has to leave his position of chairman of the foundation which runs the Malang University of Islam (Unisma), and his position as Rois Syuriah, or law making body, of NU.

A graduate of the University of Brawijaya in Malang, Tholhah is also active in the Association of Indonesian Muslim Intellectuals (ICMI). He is married to Sholichah Noor and has three grown-up children.

Attorney General Marzuki Darusman has a nationwide reputation as a human rights protector. He is the chairman of the National Commission on Human Rights and deputy chairman of Golkar.

He was born in Bogor on January 26, 1946. He graduated from the School of Law at the Catholic University of Parahiyangan Bandung, majoring in international law.

Widely known for his criticism of previous governments, Marzuki played a major role in restoring Golkar's image as a political vehicle of the New Order regime. He is married with one child.

Coordinating Minister for Economy, Finance and Industry Kwik Kian Gie is widely known as a columnist. Born on January 11, 1935, in Central Java, Kwik graduated in 1963 from the Nederlandsche Economische Hogeschools in Rotterdam, the Netherlands.

Between 1971 and the late 1980s, Kwik worked for various financial and manufacturing firms before leaving the world of business to lead the Indonesian Business Institute.

Kwik was elected to the People's Consultative Assembly in 1987 as a member of the Indonesian Democratic Party and became deputy chairman of the Indonesian Democratic Party of Struggle (PDI Perjuangan) in 1998. He was elected deputy speaker of the Assembly earlier this month.

Minister of Investment and State Enterprises Laksamana Sukardi is another top official from the Indonesian Democratic Party of Struggle in the National Unity Cabinet.

Born on October 1, 1956, Laksamana, a father of three, graduated from the prestigious Bandung Institute of Technology in 1979. He began his banking career in 1981 at Citibank, before moving to Bank Umum Asia, which was owned by Mochtar Riady, the founder of the Lippo Group.

Laksamana was one of the architects behind the merger of Bank Umum Asia and Bank Lippo BPI in 1988; a merger which resulted in the formation of Lippo Bank.

Laksamana was the managing director of Lippo Bank from 1988 to 1993, when he left the banking industry to lead a consulting firm and enter politics. He is currently vice chairman of PDI Perjuangan.

Minister of Mines and Energy Lt. Gen. Susilo Bambang Yudhoyono was born in Pacitan, East Java, in 1949. He was the Indonesian Military's chief of territorial affairs before his appointment to the Cabinet.

Known as an intellectual, Bambang graduated from the Indonesian Military Academy in 1973 and later earned a master's degree in management from Webster University in the United States. He acted as the chief of military observers in Bosnia and Herzegovina in 1995.

The father of two will oversee the country's oil, gas and mining industries, which are expected to provide a large portion of the state budget's revenue amid the current economic crisis and declining tax revenues.

Minister of Agriculture Mohamad Prakosa, 39, is one of the youngest members of the Cabinet. Born in Yogyakarta, Prakosa, an agricultural expert, is currently the deputy representative of the Food and Agriculture Organization.

A father of three teenagers, Prakosa said on Tuesday he never dreamed of becoming the minister of agriculture. During a recent seminar, Prakosa called for the establishment of an integrated agribusiness system with market-oriented characteristics to enable the agriculture sector to develop.

A member of the Indonesian Democratic Party of Struggle, Prakosa obtained his master's degree from the University of Tennessee in the United States and his doctorate from the University of California at Berkeley.

Minister of Trade and Industry Jusuf Kalla is a noted indigenous businessman who controls the diversified Bukaka Group.

He was born on May 15, 1942, in Makassar, South Sulawesi, the same province which produced former president B.J. Habibie and former state minister of the empowerment of state enterprises Tanri Abeng

Jusuf graduated from Hasanuddin University's School of Economics in his hometown in 1967. He currently chairs the Indonesian Chamber of Commerce and Industry's board of counselors in South Sulawesi.

Minister of Maritime Exploration Sarwono Kusumaatmadja was born on July 24, 1943. He graduated from Bandung Institute of Technology's Civil Technical School in 1974.

A former secretary-general of Golkar, Sarwono served in several of former president Soeharto's Cabinets.

He served as minister of the utilization of state apparatus from 1988 to 1993 and state minister of environment from 1993 to 1998. Minister of Forestry and Plantations Nur Machmudi Ismail, who was born in Kediri, Central Java, is the cofounder and chairman of the Justice Party (PK).

A father of three, Machmudi graduated from the Bogor Agricultural Institute in 1984 and received his doctorate in husbandry from Texas A&M in the United States. His party joined Amien Rais' National Mandate Party (PAN) to form the Reform faction in the People's Consultative Assembly.

State Minister of Cooperatives Zarkasih Nur is a leading figure in the United Development Party (PPP). He headed the party's faction in the House of Representatives before being named to the Cabinet.

Born on April 21, 1940, in Ciputat, South Jakarta, Zarkasih received most of his education in Islamic schools.

He graduated from Jakarta's State Institute for Islamic Studies in 1973 and was an official in the information ministry until 1981, when he left to begin a political career.

Minister of Transmigration and Population Al Hilal Hamdi is a mining engineer who specializes in oil exploration. Graduated from the Bandung Institute of Technology in 1980, Hilal ran his own business before he joined state-owned electricity firm PLN two years ago as an energy consultant.

Born on March 28, 1954 in Cilacap, Central Java, Hilal married Usdiati Endah Purwati, and they have raised three children.

The former student activist joined the National Mandate Party, where he began to nurture ties with the party's chairman Amien Rais. Up to now, Hilal has held the deputy secretary post in the party.

Minister of Public Works Rafiq Boedioro Soetjipto relinquished his post as director general of mining at the Ministry of Mines and Energy to take up his new position.

Born on August 20, 1949 in Karanganyar, Central Java, Rafiq graduated from the Mining School of the Bandung Institute of Technology (ITB) in 1968. He then received a doctorate degree in metallurgy from the Catholieke Universiteit in Leuven, Belgium. He has one child.

State Minister for Women's Affairs Khofifah Indar Parawansa has long been recognized for her outspoken performance since she served a term as a House of Representatives legislator in 1992.

Born in Surabaya on May 15, 1965, she is the youngest member of the Cabinet. Raised in a traditional Muslim society, Khofifah said she could not turn down an offer from President Abdurrahman Wahid, her idol, like she did when the charismatic Muslim leader asked her to join the National Awakening Party (PKB) he founded.

Khofifah attributes her political career to her deep involvement in student activities when she studied at the School of Social and Political Sciences at the Airlangga University in her hometown. She was an executive of the Indonesian Muslim Student Movement until she graduated in 1990.

She is completing her master's degree at the University of Indonesia. Married to Indar Parawansa, a civil servant at the Agency for the Environment Control in Makassar, Khofifah has one daughter and two sons.

Minister of Law and Legal Affairs Yusril Ihza Mahendra is one of only two professors who join Abdurrahman Wahid's Cabinet.

Graduated from the School of Law and School of Letters at the University of Indonesia, Yusril completed a master's degree on law and Islamic knowledge at the same university. He earned his doctorate from the Universities Sains in Penang, Malaysia in 1992.

He played an outstanding role during the recent General Session of the People's Consultative Assembly, not only because of his last minute withdrawal from the presidential race, but his legal advice and opinions that helped the Assembly avoid constitutional flaws.

Following the fall of the New Order in May last year, Yusril founded the Crescent Star Party, which came in sixth in the June polls with 13 House of Representative seats. The Sumatra native, who was born on February 5, 1956, is married to Sukaesih and has a daughter.

Minister of Foreign Affairs Alwi Shihab is known as a moderate Muslim intellectual and is a former professor in Islamic studies at Harvard University.

Born on August 19, 1946 in Rappang, South Sulawesi, he obtained his master's degree in theology from Al Azhar University and a doctorate in Islamic philosophy from the University of Ains Shams, both in Cairo.

Devoted to comparative studies of religion, he is a member of the International Connections Committee and the American Academy of Religion in Atlanta.

Until he was appointed minister, Alwi was deputy chairman of the National Awakening Party (PKB), the political party founded by Abdurrahman Wahid.

Alwi's elder brother, Quraish Shihab, was the minister of religious affairs in former president Soeharto's short-lived Cabinet between March and May last year. Married to Ashraf Shahab, Alwi has two children.

President Abdurrahman Wahid appointed an Aceh human rights activist Hasballah M. Saad the State Minister of Human Rights Affairs after calls increased for him to address decades of abuse in Aceh, which has led to mounting pressure for separation.

Born in Pidie on July 14, 1948, Hasballah, a son of a poor rice farmer, had served as a teacher in an isolated elementary school in Aceh for seven years. He spent 15 active years in human rights watch groups before jumping into politics.

He joined the National Mandate Party (PAN) of leading reformist Amien Rais when it was founded in August 1998, and became its representative in the General Elections Commission. He secured one of 34 House of Representative seats won by PAN in the June elections.

Minister of Regional Autonomy Ryaas Rasyid is another new face in the Cabinet. He was the former director general of the general administrative and regional autonomy section of the home affairs ministry under Lt. Gen. Syarwan Hamid.

Born in December 7, 1949 in Gowa, South Sulawesi, Ryaas is a noted legal expert and former rector of the state Institute for Public Administration.

He began his career in bureaucracy as a subdistrict chief in Melayu, Makassar, the capital of Ujungpandang.

He received his master's degree in politics and public administration at the Northern Illinois University in the United States in 1988, and his PhD from the University of Hawaii.

Coordinating Minister for Politic Affairs and Security Wiranto is one of six Cabinet members with a military background. Born in Yogyakarta on April 4, 1947, Wiranto has now served as a minister in three different Cabinets.

He was a key witness in the transfer of power from Soeharto to his successor B.J. Habibie following a wave of student demonstrations in May last year.

Wiranto surprised everyone when he rejected Habibie's request to run as his vice president, dealing a major blow to the former president's reelection bid.

Amid strong calls for the military to step back from politics, Wiranto gave way to Megawati Soekarnoputri to clinch the vice presidency. Wiranto is married to Rugaiyah and has three children.

State Secretary Ali Rahman was the Deputy to State Employees Administration Chief when President Abdurrahman Wahid recruited him.

The graduate of Bogor Agricultural Institute began his career in the bureaucracy at the National Development Planning Board. He took a doctorate degree in the United States in 1984.

He was born in Menggala-Tulangbawang in Lampung in 1944. Ali, a former student activist, is married to Mirna Ali, who gave him two children.

Minister of Administrative Reforms Rear Admiral Freddy Numberi is the first Irian native to hold a ministerial post in Indonesia's 54 year-old history. He is also one of the only two Navy members who join President Abdurrahman Wahid's cabinet.

Until now Numberi, a former Navy's eastern fleet commander, is Irian Jaya governor, the post he has held since March last year.

Born in a remote island of Serui in Yapen Waropen regency on October 15, 1947, Numberi passed the admission test to the Navy Academy in 1968.

Minister of Housing and Regional Development Erna Witolear is the other female cabinet member under President Abdurrahman Wahid. The wife of former Indonesian ambassador to Russia Rachmat Witoelar is widely recognized as nongovernmental organization activist.

Born in Sengkang, South Sulawesi on February 6, 1947, Erna chaired the Consumers Protection Agency between 1986 and 1989.

In new cabinet, most parties have a place

Keith B. Richburg, Jakarta -- President Abdurrahman Wahid of Indonesia on Tuesday unveiled a new-look cabinet for the country's democratic era, naming an entirely fresh economics team unsullied by corruption scandals and taking steps to bring the powerful armed forces under greater civilian control. With the new lineup, Mr. Wahid appeared to signal a dramatic break from the country's past, discredited regime, although a few old faces remain. Moreover, the cabinet seemed crafted to ensure that virtually all political parties are included, as well as giving more representation to outlying regions and ethnic minority groups that felt disenfranchised from previous governments.

The big loser Tuesday appeared to be the former armed forces commander and defense minister, General Wiranto, who was made the coordinating minister for political affairs and security -- a position that leaves him in the cabinet, but with no troops under his control.

He had previously been a leading contender to become vice president, or even president, if the country's legislative assembly had deadlocked over the other candidates. He has now been effectively sidelined.

Two top advisers to Vice President Megawati Sukarnoputri, familiar to international business and financial officials, were given key economics positions -- Laksamana Sukardi, as minister for capital investment, and Kwik Kian Gie, as coordinating minister in charge of overall economic policy.

Mr. Kwik is ethnic Chinese, and his appointment should help to reassure Indonesia's ethnic Chinese business community, as well as Chinese in the region who have been cautious about investing in Indonesia since anti-Chinese rioting in May 1998.

The new finance minister is a little-known US-trained academic, Bambang Sudibyo. He is close to Amien Rais, who chaired the assembly that elected Mr. Wahid president.

In recent days, diplomats meeting with Mr. Wahid had stressed the importance of his starting the new term with "a clean slate," in the words of one. Fresh faces were seen as crucial for the economics team, as international lenders held up payments on a bailout package of more than $40 billion after a banking scandal began to ensnare top finance officials from the last government.

General Wiranto previously held two jobs. He was replaced as armed forces commander by his deputy, Admiral Widodo Adisutjipto, and as defense chief by Juwono Sudarsono, the respected former education minister.

Both of those new appointments break from tradition. Admiral Widodo is the first naval officer ever to be named armed forces commander, a position that traditionally has gone to the army -- and the navy has never been used in suppressing dissent. Mr. Juwono is Indonesia's first civilian defense minister since the 1950s, suggesting that Mr. Wahid wants to bring the military under more civilian control.

Mr. Juwono, who previously headed the National Defense Institute, is considered an expert on military affairs.

Two other military men who could have been in line to become armed forces commander were moved into cabinet jobs, one in charge of transport, the other in charge of mines and energy.

"Don't think the military is crazy," Mr. Wahid said at one point in English, answering a question from a reporter during the announcement of his cabinet line-up. "They are responsible. They know the whole society is changing."

Salim Said, a political scientist who teaches at the military staff college, said the appointments showed "Abdurrahman Wahid is showing his teeth as someone to be taken seriously." He said, "As we are constructing a national coalition government, the military is still an important political player. How to tame them? That is the question. It's not as easy as turning around the palm of your hand. It takes time."

The new cabinet appears an unlikely hybrid of various factions and interest groups. The foreign minister's position went to a relative unknown, Alwi Shihab, a Muslim scholar and expert on comparative religions who studied in Cairo and at Temple University in Philadelphia. He is a confidant of Mr. Wahid's from the president's National Awakening Party.

"He's very learned, very sophisticated," said Dewi Fortuna Anwar, an academic who was the foreign affairs adviser to former President B.J. Habibie. "I can't think of a better person to show the enlightened face of Islam to the Western world." Miss Anwar said she expected Mr.

Shihab to strike more "balance" in Indonesia's foreign policy -- keeping good relations with the West but also improving ties with the Muslim world, Africa and Asia. Mr. Wahid said he would make his first official visit to China.

The new attorney general is Marzuki Darusman, chairman of the human rights commission and a leader of the reform wing of the former ruling party, Golkar.

The new social welfare minister is Hamzah Haz, leader of the United Development Party, and a defeated candidate for vice president. A new ministry was created for human rights. The job of minister of information was abolished.

With most political parties represented in the cabinet, the only question troubling some analysts was: Who would provide the opposition to government policies?

"I'm afraid the Parliament will not be critical enough," said Said Salim. "If that is so, the role of critic could well be played by the students." Others said the Parliament was likely to see a "functional opposition," meaning different parties might become critics on certain issues.

In remarks to reporters, Mr. Wahid also said he and Mrs. Megawati would like to meet the East Timorese independence leader, Xanana Gusmao, in Jakarta. A meeting with Mr. Gusmao, who is likely to become independent East Timor's first president, would indicate that Mr. Wahid wants to end the past bitterness and have good relations with the breakaway province.

Indonesia to reopen case against Suharto

Amy Chew, Jakarta -- Indonesia's day-old government on Wednesday moved swiftly to bring disgraced former president Suharto to justice, highlighting its new clean image and meeting a key demand from reformists who put it in power. But new President Abdurrahman Wahid, whom some worry may be willing to sacrifice reform for political compromise, said he would prefer not to take the ousted autocrat to court.

"The intention is to reopen the case and have it brought to court," newly appointed Attorney-General Marzuki Darusman told foreign businessmen.

"The political will has to be there because of public pressure. Short of that, there will be great scepticism out there and it will only lead to a secondary crisis if the government is not seen to be serious in ending this case," he said.

Darusman said he would also press ahead with an investigation into a scandal surrounding PT Bank Bali Tbk, a key factor in last week's no-confidence vote against then-president B.J. Habibie which forced him to end his bid for reelection.

"It is crucial that these two issues are resolved properly and transparently so that the message is clear ... we will not tolerate any monkey business any more," Darusman said.

The International Monetary Fund, leading a more than $45-billion rescue package for recession-hit Indonesia, last month cut off loans until the Bank Bali scandal was resolved.

A probe into charities linked to Suharto, who resigned in disgrace in May last year, was closed a few days before his successor and mentor Habibie handed over office to Wahid.

Under Suharto's rule, Indonesia was labelled one of the world's most corrupt countries, a stigma it has been unable to shake off as scandals continue to be unearthed.

But many analysts say bringing Suharto -- who has always denied wrongdoing -- to court could be more trouble than its worth, pointing to the failure of the Philippines to track down much of the money squirreled away during the Marcos regime.

Even some human rights activists say the government would be better investigating Suharto's children and some of his more prominent ministers. They argue that a relentless probe of Suharto, widely admired at home for a lot of his 32-year rule, might be too fraught an experience in a country whose confidence is already shattered by two years of violent crisis.

President Wahid said it would be better if Suharto paid back any money found to have been obtained through corruption and use it to help Indonesia out of its current crisis.

"For me, we investigate. From the result of that investigation, we then decide how much [money] has to be returned by Pak Harto [Suharto] to go towards efforts to improve the economy and overcome the food crisis," he told local editors. "That is better than if we quarrel or go to court," he said, but added it was in the end up to his attorney-general to decide.

The pursuit of the Suharto wealth has been at the forefront of demands by political reform movements. Analysts say it is clear that unless the new government is firm in rooting out graft and pursuing those responsible, foreign and domestic investors will stay away.

New economics tsar Kwik Kian Gie, mindful of the pressure on him to fix Indonesia's appalling finances, pleaded for time to get to grips with the country's economic mess and urged the IMF to resume lending.

"IMF help should be restored, because the routine budget is already [in deficit]," he told reporters. "Give our economic team time to work. We are convinced we can work together." Kwik said he would explain the government's economic policies on Friday after the new cabinet is sworn in.

Market reaction to the new economic team has been mixed and some analysts feared political concerns may have won out over qualifications in appointing the team.

A question mark hung over the new finance minister Bambang Sudibyo, an unknown academic who admitted he needed to study up on some issues.

But to the relief of the markets, Kwik insisted he had no immediate plans to implement a fixed exchange rate system, a proposal he made a few months ago which spooked markets and drew a cold response from the IMF.

Balancing act will create problems

David Jenkins -- Indonesia's new Cabinet doesn't look too bad at first glance, with some impressive names in the list of ministers.

The Minister of Foreign Affairs, Dr Alwi Shihab, is a sophisticated moderate who once taught at Harvard.

The Minister of Defence, Dr Juwono Sudarsono, has a PhD from the London School of Economics, and is a civilian to boot -- Indonesia's first civilian defence minister in 40 years.

The Attorney-General, Marzuki Darusman, is a reform-minded politician who won respect as head of the Indonesian Human Rights Commission. The chief economic minister, Kwik Kian Kie, is a reformer whose name will reassure the markets and the International Monetary Fund.

But the Cabinet is an artifice built on compromise and deal- making, with pay-offs to the modernist Muslims who helped Abdurrahman Wahid, an Islamic conservative, over the line in his late run for the presidency and with necessary plums for the party of the vice-president, Megawati Sukarnoputri.

It remains to be seen whether this disparate group of individuals, who represent such a range of political opinion, can work effectively together as policymakers and administrators, especially given the hands-off style of Wahid and Megawati. "That balancing of power will create substantial problems," one political analyst said.

Many Indonesians will welcome the fact that Wahid has begun to clip the wings of the military (TNI). But they will be aware that the new president has done so in a tentative way. Juwono, a respected professor of political science, thoughtful, measured and highly articulate, is a conservative who believes in step-by-step reform. He also has close links with the TNI.

"The appointment of Juwono is quite a nice piece of political compromise," one analyst said. "It sends a good signal about political reform and about not having active or recently retired military people in that sort of portfolio, and he's someone the TNI can probably live with." The problem is that what Wahid has given with one hand he may have taken away with the other.

The former defence minister/TNI commander, General Wiranto, whose reputation has been tarnished by the events in East Timor, becomes Co-ordinating Minister for Political and Security Affairs, above Juwono. Although Wiranto loses his position as TNI commander, a far more powerful post than that of defence minister, the TNI job goes to an ally, Admiral Widodo. It is not clear what the army, always the dominant service in the TNI, will think of having a man in white as its boss. Nor has Wahid dispensed with the services of other generals. He has no fewer than four, including Wiranto, in his cabinet.

Retired Lieutenant-General Suryadi Sudirja takes over the powerful Home Affairs Ministry. Lieutenant-General Bambang Yudhoyono, a Wiranto rival who might yet have a chance to become TNI commander, has been moved sideways to the powerful -- and lucrative -- Ministry of Mines and Energy. Lieutenant General Agum Gumelar becomes Minister of Communications.

Shihab's appointment would seem to be good news for Australia. He said this week that Canberra and Jakarta needed to put their relationship back on track.

Poll shows strong faith in new government

Jakarta -- Indonesians are confident that new President Abdurrahman Wahid and Vice President Megawati Sukarnoputri can overcome the country's major problems, a poll published Tuesday revealed.

The poll, which canvassed 919 people in Jakarta and the surrounding area on October 22 and 23, was carried out for the Kompas daily.

It showed that the public regards restoration of the country's economy as the new government's top priority.

Close to 85% of those polled said that the two leaders would be able to quickly restore foreign confidence in the country, while 86% believe they will be able to prevent the disintegration of the nation.

Their ability to ensure law and order was endorsed by 83.1% of those polled.

Respectively 76% and 73.9% of the respondents believed the two were capable of protecting human rights and of overcoming the economic crisis.

But there were doubts on two fronts -- corruption and curbing the military's role in politics.

Their ability to deal with the corruption cases against former president Suharto, and their earnestness in scrapping the military's political role scored 48.2% and 46.8% respectively among those surveyed.

The poll also showed that 60.5 of those polled believed that getting the battered economy back in shape was the main task facing the two leaders.

National disintegration, the eradication of corruption, the prevention of social unrest and restoring public faith in government rated much lower in priority. A total of 30.3% of those polled said the main advantage the two new leaders had was the trust of the people, with 10.9% believing they could work together while seven percent said they had the ability to unite the nation.

New cabinet heavy on compromise

Jakarta -- Indonesia's new cabinet announced Tuesday by President Abdurrahman Wahid reflects the new leader's preoccupation with accommodating all factions in the country's politics rather than emphasizing professionalism, analysts said here.

"There is nuance of reconciliation evident here, the wish to be non-inclusive overriding other considerations," said political scientist Kusnanto Anggoro of the private think tank Center for Strategic and International Studies.

Wahid announced the new cabinet lineup six days after he was elected by the national assembly to become the country's fourth president following intense political maneuvering and horse trading.

The 35-member cabinet was a showcase of of the main political parties and faction in the country, Anggoro said. "It is just as the president called it, a 'National Unity cabinet,'" political commentator Kastorius Sinaga said.

"What jumps to the eye is that it proportionately reflects the political powers, including the armed forces ... it is trying to be accommodative in view of achieving instant national reconciliation," Sinaga said.

He pointed out many of the new ministers, while maybe possessing integrity and commitment, had no prior exposure to the fields they were now in charge of. "Are they the right men in the right places?" he asked.

While Anggoro said time should be allowed for the cabinet to prove themselves, Sinaga said time was not on the government's side.

"The ministers will not only need to acquaint themselves with their portfolios, they will also have to get to know each other and to cooperate. Meanwhile, the urgency of the problems faced by the nation is there," Sinaga said.

Faisal Tajuddin, the secretary general of Gempita, a private group concerned on state assets, said that many of the ministers, because of their unfamiliarity with their portfolios, would need to draw on the expertise of people outside their respective ministries.

The ministers also risked "being misled" by their officials, especially in postings where public confidence had thinned drastically, such as at the attorney general's office. Taking the attorney general's post was Marzuki Darusman, a Golkar Party deputy chairman and the chairman of the national commission on human rights. Though a law graduate, he has no previous exposure to the nitty-gritty technicalities of his new office.

Sinaga also said the danger of a cabinet composed of such of variety of party and faction members, was that ministers may have difficulties separating their party interests from the interest of the nation.

"Are they ready to shed their political clothes and become purely assistants to the president?" he said. Anggoro said that for the time being, the cabinet lineup will be able to reconcile the nation's various political factions.

The people, including the students, would also not care too much about the composition for now, as their main concerns were the restoration of the economy, the eradiction of corruption and a halt to the military's political role, he said.

"But we will have to see, in the longer term whether they are capable or not." Tajuddin said the people should at least give the cabinet a three-month honeymoon before it can show that it can actually function.

Lineup of "National Unity Cabinet"

Jakarta -- full list of members of the new Indonesian cabinet as announced by Vice President Megawati Sukarnoputri and President Abdurrahman Wahid on Tuesday:

Coordinating Ministers:

1. Economy and Finance: Kwik Kian Gie, 64 (deputy chairman of the Indonesian Democracy Party-Struggle)
2. Politics and Security Affairs: General Wiranto, 52 (former armed forces chief and defence minister)
3. People's Welfare and Poverty Alleviation: Hamzah Haz, 59 (chairman of the United Development Party)

1. Home Affairs Minister: retired lieutenant general Suryadi Sudirja (former Jakarta governor)
2. Foreign Affairs Minister: Alwi Shihab, 53 (deputy chairman of the National Awakening Party)
3. Defence Minister: Yuwono Sudarsono, 57 (former education and culture minister)
4. Justice and the Laws Minister: Yusril Ihza Mahendra, 43 (chairman of the Crescent and Star Party)
5. Finance Minister: Bambang Sudibyo (academic from state Gajah Mada University)
6. Mining Minister: Lieutnenant General Susilo Bambang Yudhoyono, 50 (military's territorial chief)
10. Trade and Industry Minister: Yusuf Kalla, 57 (businessman, Golkar Party)
11. Agriculture Minister: Muhammad Prakosa, 39 (agriculture expert, member of the Indonesian Democracy Party-Struggle)
12. Forestry and Plantations Minister: Nurmahmudi Ismail, 37 (chairman of the Justice Party)
13. Communications Minister: Lieutenant General Agum Gumelar, 54 (former chairman of the National Resilience Institute)
14. Sea Exploration Minister: Sarwono Kusumaatmaja, 56 (former environment minister)
15. Manpower Minister: Bomer Pasaribu, 52 (former chairman of the All Indonesian Workers' Union)
16. Health Minister: Ahmad Sujudi, 69 (former health minister under Suharto)
17. National Education Minister: Yahya Muhaimin, 56 (academic from state Gajah Mada University)
18. Religious Affairs Minister: M. Tolchah Hasan, 63 (National Awakening Party)
19. Settlement and Regional Development Minister: Erna Witular, 52 (member of the national assembly)
20. State Transmigration and Population Minister: Al Hilal Hamdi
21. State Minister for Investment and Guidance of State Enterprises: Laksamana Sukardi, 43 (treasurer of the Indonesian Democracy Party-Struggle)
22. State Minister for Regional Autonomy: Ryaas Rasyid (Legal expert, former member of the National Election Commission)
23. State Minister for Cooperatives: Zarkasih Nur (Deputy Chairman of the United Development Party)
24. State Minister for Sports and Youth: Mahadi Sinambela, 52 (Member of the National Election Commission)
25. State Minister for the Utilization of State Apparatus: Rear Admiral Freddy Numbery (Governor of Irian Jaya)
26. State Minister for Public Work: Rafik Budiro Sucipto, 56 (director general for general mining)
27. State Minister for Research and Technology: Muhammad A.S. Hikam, 41 (Researcher at the Indonesian Institute of Sciences)
28. State Minister for the Environment: Soni Keraf, 41 (NGO activist, lecturer at Atma Jaya Catholic University)
29. State Minister for Human Rights: Hasbalah M. Saad, 50 (Member of the National Election Commission from the National Mandate Party)
30. State Minister for Women's Role: Khofifah Indah Parawansa, 34 (deputy chairman of the lower house from the National Awakening Party)
31. State Minister of Tourism and Arts: Hidayat Jaelani
32. State Minister for Society Affairs: Anak Agung Gede Agung (Golkar Party)

1. Attorney General: Marzuki Darusman, 53 (Deputy chairman of Golkar Party, chairman of the National Commission on Human Rights)
2. State Secretary: Ali Rahman (Senior official from the National Development Planning Board)
3. Armed Forces Commander: Navy Admiral A.S. Widodo, 55.

Wahid must govern nation torn by problems

Keith B. Richburg, Jakarta -- Some of the first well-wishers to call on Indonesia's new leader, Abdurrahman Wahid, were struck by the casual air he has brought to Indonesia's stately presidential palace.

He chatted amiably, he insisted on being called by his nickname, Gus Dur, and he sometimes propped a bare foot up on the sofa.

The informality is familiar to those who have known Gus Dur -- the honorific title Gus with a diminutive version of his surname -- as the leader of Indonesia's largest Muslim organization. At home, he often greeted visitors barefoot and answered his own telephone. His string of jokes pilloried political players of the day. And just last week, after a hectic morning of appointments, he fell asleep during an interview with a reporter, dozing off in the middle of his own sentence.

Those all-too-human qualities, along with his near-blindness, have made Wahid an endearing, respected and beloved figure here, the kindly if eccentric uncle known as much for his erratic statements as for his intellect, acumen and understated ambition.

But now, after a week of dramatic politics that elevated Wahid to the country's highest office on Wednesday, Indonesians are pausing for breath and quietly asking: Is he really up to pulling this vast and unruly country -- the world's fourth-most populous, with 200 million inhabitants scattered over an archipelago of 13,500 islands -- out of its political and economic crisis?

The problems are manifold. Indonesia is wracked by ethnic and religious violence. East Timor's vote for independence has emboldened separatists in the provinces of Aceh and Irian Jaya. Both Wahid and Vice President Megawati Sukarnoputri, the popular leader he defeated for the presidency, are from Indonesia's main island of Java, and so outlying islands are again feeling disenfranchised. Perhaps most dangerous, the still-powerful military is feeling its influence waning in the new democratic era and must be persuaded to submit to civilian rule.

Economically, the country has not recovered from the meltdown of 1997-98. The budget is $10 billion short and repayment of principle on foreign debt is scheduled to skyrocket to $5 billion next year and $9 billion in 2001. Most banks are bankrupt and foreign support for a re-capitalization plan was suspended because of a banking scandal involving the discredited former government. The urban poor and unemployed who supported the reform movement are growing impatient to see the fruits of change.

Amid all these problems, a sobering reality is dawning on people: The new president is virtually blind; he moves slowly after a stroke last year that put him in a coma and necessitated brain surgery; and he needs to be led around by aides.

His second-oldest daughter usually leads him. But when Wahid went to the stage for his swearing in and later to the lectern to give his inaugural speech, it was two uniformed military aides who escorted him and guided his hand as he signed his name in a book.

The scene raised some troubling questions. Would the military be the power behind a president who needs constant aid? Would the presidential palace become the scene of political intrigue, with advisers plotting to deceive the blind leader? And who would emerge to speak for him? Family members? Military adjutants? Leaders of his political party? Or Muslim scholars from his Java-based Nahdlatul Ulama organization?

Wahid's health problems were the reason few here took his presidential bid seriously at first. It was largely expected he would drop out at the last minute in favor of Megawati, the front-runner by virtue of her party winning June's parliamentary elections. But when the unpopular outgoing president, B.J. Habibie, dropped out just before the vote and Habibie's party, Golkar, threw its support to Wahid to block Megawati, Wahid emerged the surprising winner.

"The choice was between Megawati and Gus Dur," said Golkar deputy chairman Marzuki Darusman, explaining why party members backed the ailing Wahid. "It was not because they were for Gus Dur, but because they were opposed to Megawati."

Marzuki said the party opposed her for several reasons: "gender, capability, her association with the past [as the daughter of founding president, Sukarno], ideology. Perhaps radical economics and the populist movement." If Megawati had been elected, he said, Golkar members saw a strong likelihood of violence from elements vehemently opposed to her.

Marzuki said Golkar was well aware of Wahid's frailty. "The concern was that he would be constricted in his functioning," he said. "But the whole point of electing him was to avoid bloodshed. There was a real possibility of open conflict."

Having a president who is unable to read documents will require an unusual daily office routine. As Wahid forms his government, the format is only now beginning to take shape.

One step, say political insiders, is to reduce the number of documents on the president's desk by forming "advisory councils" of outside experts. These councils, for economic, national security and social policies, would meet regularly to brief Wahid and allow him to decide orally. Implementation would then likely be coordinated by two new chief-of-staff jobs, one under the president, the other under Megawati.

Wahid campaigned extensively for the June elections on behalf of his National Awakening Party and he seems equally eager to travel now.

He plans to go to Bali on Sunday for his first major address as president and to placate disappointed Megawati supporters there. He also has told ambassadors from neighboring Southeast Asian countries that he would like to travel to Manila next month for a regional summit conference.

Aides who have met with Wahid over the past two days have said he plans a slimmed-down administration that balances technocrats with the need to accommodate the myriad political factions in the 700-member People's Consultative Assembly that elected him. A cabinet announcement is planned for October 28, but the broad contours of the government have begun to emerge.

Wahid's party placed a distant fourth in the June elections, but is likely to receive some plum positions, possibly including foreign minister. Megawati's Indonesian Democratic Party of Struggle also looks set to gain several positions, probably including an economic post for Kwik Kian Gie, a respected economist and Megawati aide.

Appointing Kwik, who is of Chinese origin, also would also help assuage Indonesia's ethnic Chinese, who were spooked by last year's anti-Chinese violence.

One who may find his power diminished is the armed forces commander and defense minister, Gen. Wiranto. Wiranto had been nominated for vice president after Wahid was elected, but the new president prevailed on him to step aside in favor of Megawati, sources said. Wiranto did withdraw his nomination, but sources said the military is angry about the Wahid-Megawati tandem and the fact that the armed forces have been left out of this new, elected power equation.

One of Wahid's most difficult early tasks will be to persuade the military, which has been the main power in Indonesia since it became independent in 1945, to stay in the barracks. "The biggest problem is going to be the military," one aide said. "A lot of them are really upset. Wiranto really wanted the [vice president's] job."

Wahid's initial plan was to appoint a civilian defense minister to underline the importance of civilian control. But palace aides and others said that plan has now been scrapped. "They would never accept that," said one insider of the military.

"Support for the militias will cease": Wahid

Tony Jenkins -- Abdurrahman Wahid, better known in his own country as Gus Dur, spoke to the Expresso in the lobby of the Hotel Mandarin at the start of the Popular Consultative Assembly (MPR), the body that has just elected him President of Indonesia.

Expresso: If you were elected President, would you respect East Timor's independence?

Gus Dur: I have said on many occasions that we will respect the plebiscite and obey international law.

Expresso: Would you immediately establish diplomatic relations with Dili?

Gus Dur: We are going to establish diplomatic relations, but only at chargi d'affaires level, because we have to maintain Indonesia's sovereignty and self-esteem.

Expresso: Why should treating Timor Loro Sae as an equal affect your sovereignty and self-esteem?

Gus Dur: I am sure you understand what I mean. East Timor was a very difficult and emotional problem for many Indonesians. It is better not to discuss certain matters.

Expresso: Are the military the problem? Will you be able to convince them to stop supporting the militias in West Timor, and to allow Timor Loro Sae to live in peace?

Gus Dur: Yes, the military are a problem. If necessary, we shall make changes in posts in the TNI (Armed Forces) in order to stop the support for the militias. But we have to be fair to the Armed Forces. Not all of what you in the international media say about the TNI is true. For example, you reported that the militias had killed Xanana Gusmao's father and brother, but now we know that it was not true. Much of what happened in East Timor was the result of a campaign by the integrationists, not by the military.

Many members of the TNI are respectable people. They consider themselves the cornerstone of the building of our country.

Expresso: It appears that the Army is training Timorese militias to embark on guerrilla warfare.

Gus Dur: I can assure you that I shall take that matter in hand. It will not happen. I shall undertake responsibility for that personally, and it is going to stop.

Expresso: But the Army has already shown that it is not prepared to give up its political power and the role it plays in Indonesian civil society.

Gus Dur: We have to maintain the "Double Function" of the Armed Forces for another five years, until the next elections. The "Double function" is related to the personal income levels of military personnel. First, we have to solve that problem. But they are not likely to take part in the next elections, in 2004.

Expresso: Do you think that the Army is going to accept your authority?

Gus Dur: The military accept me as President. I have already told the TNI that we ought to separate the Ministry of Defence from the Cabinet of the Chairman of the Joint Chiefs of Staff. The Minister must be a civilian.

Furthermore, we have to alternate all the branches of the Armed Forces - Army, Navy and Air Force -- so that no particular one is dominant. The Armed Forces are our adversary, not our enemy. We have to change their hearts.

Expresso: What do you think about the investigation into atrocities committed in East Timor? Do you accept the international commission, or will you be insisting on a national investigation process, like President Habibie?

Gus Dur: I do not like these national-level investigations. They cannot guarantee an impartial investigation. I do not believe that the national (human rights) commission will be able to carry out such a task. I am a member of that commission and I know that it will not implement justice. Only an international commission can do justice in this case.

Expresso: Was General Wiranto responsible for what happened in East Timor? What would happen if the international commission were to formally accuse him of war crimes?

Gus Dur: No comment.

Expresso: Pressure from separatists exists in other parts of Indonesia, such as Aceh. How are you going to deal with the problem?

Gus Dur: I want to decentralise power -- a lot of power -- to the regions. I supported the holding of a referendum in Aceh. But we cannot use the world "federation". It is a word with negative connotations in Indonesia because of its association with the Dutch colonial past. They used the federation as a means of dividing and dominating the Indonesian people.

Expresso: Corruption is extremely destabilising. How will you deal with it?

Gus Dur: Suharto ought to be investigated and tried by a court. That would serve as an example. Once he is sentenced, we could then negotiate with him in order to recuperate the country's money. That way, we would not be so dependent on aid from the international community. It would also contribute to restoring our national pride.

Expresso: The most powerful political force in Indonesia is that of the students on the streets. Will you be able to control them?

Gus Dur: There is no student power. What we have are small groups of students, and the men who are behind them are all hooligans. That is why there are hooligans among them. I do not like violence. I am a follower of Mahatma Gandhi. I told the students that we can exert pressure without resorting to violence, and that we can move towards democracy without violence; that way, God will allow it.
 

Arms/Armed forces

Soldiers' shame at shooting civilians

Lindsay Murdoch, Jakarta -- A group of high-ranking officers in Indonesia's armed forces have made unprecedented public criticism of the military's powers, including its role in civilian affairs.

Only days after the demotion in cabinet of the out-going armed forces chief, General Wiranto, 17 officers said the military's "pervasive" power prevented it from improving its professionalism.

Brigadier-General Saurip Kadi, a special investigator at the Ministry of Defence and Security, said that ending the military's dual role, or dwifungsi, was the only way to put an end to the "deviation of commands".

"Our forefathers never taught us to shoot real bullets at our own people," he said. Another of the officers said at the launch of a book in Jakarta that while the military's dual role in civilian affairs as well as the defence of the country was supposed to be temporary when the Dutch left Indonesia in the 1950s "it became institutionalised" and "officers grew to enjoy their positions".

Major-General Agus Wirahadikusumah urged the new armed forces (TNI) commander, Admiral Widodo, to purge the military's leadership of officers unworthy of their positions.

"I've asked Admiral Widodo to immediately reform the military's leadership ... to purge the status quo officers," he said.

The failure to accomplish this would make needed institutional reforms impossible and the military would continue to suffer from "weird" actions by its officers, Major-General Agus was quoted by the Jakarta Post as saying. The 17 officers, all 1973 graduates from the Indonesian military academy, co-authored the book called the New Indonesia and the TNI's Challenge. Australian academic Harold Crouch, an expert on Indonesia's military, was also quoted by the newspaper as describing the officers' views as "extraordinary" but questioned the number and influence of reformist officers.

The credibility of the armed forces, traditionally Indonesia's most powerful institution, has been badly damaged by soldiers' atrocities in East Timor and other troubled regions like Aceh, the strongly Islamic province on the tip of Sumatra.

The military's sponsorship of violence, looting and destruction of property in East Timor will be investigated by the United Nations and Indonesia's National Commission on Human Rights.

The new President, Mr Abdurrahman Wahid, this week moved General Wiranto as head of the armed forces and defence minister to the less powerful job of co-ordinating minister for politics and security.

But swearing in ministers yesterday, Mr Wahid named General Wiranto as one of five architects of the cabinet that includes the first civilian defence minister in decades, Dr Juwono Sudarsono.

General Wiranto suggested appointing Dr Sudarsono, an academic with strong military links, after opposing the appointment of a serving officer at odds with him.

Mr Wahid, a Muslim cleric by background, called on ministers to live simple and honest lives. "On this cabinet lies the hope that democracy will really become a mark of our life in the future," he said. After the ceremony the new chief economics minister, Mr Kwik Kian Gie, said Indonesia would review its reform deal with the International Monetary Fund and focus its economic strategy on ending social and political unrest.

The IMF is leading a $68 billion international bailout package for Indonesia. The IMF and Asian Development Bank suspended new loans pending resolution of a banking scandal linked to Golkar, the former ruling party which had backed the failed candidacy of the previous president, Dr B.J. Habibie.

Some MPs want to call Dr Habibie before a parliamentary commission to question him about his involvement in the siphoning of about $100 million from the nationalised Bank Bali to a company linked to Golkar.
 

Economy and investment

Wahid's task: fix a catatonic economy

David Liebhold -- The Asian financial crisis of 1997 helped bring down Suharto, so President Abdurrahman Wahid had better pay attention to economics if he wants to hold onto power -- and hold Indonesia together. Democracy may have triumphed, but the economy is a mess. Millions of people are out of work, thousands of companies are technically bankrupt and the banking system is choking on bad debt. Unless Wahid can convince investors that it's safe and profitable to return to his troubled archipelago -- and soon -- the vicious cycle of unemployment, poverty and civil unrest is likely to continue, dashing the hopes of 204 million people for a democratic future.

"This is going to be the biggest challenge for the government," says Mari Pangestu, an economist at Jakarta's Center for Strategic and International Studies. "How much can you deliver and how patient will people be? Wahid will need to package policies the right way."

Even if Wahid's new cabinet takes all the right steps, the challenges are formidable. Borrowers have stopped making payments on about 70% of domestic bank loans, and Indonesians collectively owe the rest of the world an estimated $135 billion. The economy shrank nearly 14% last year. The government expects 0%-2% growth in the economy this year, but an expansion of about 6%-7% by 2003-04.

Where that will come from is a mystery. Only about half of industrial capacity is being used, so there's not much incentive for new investment. Because prices are falling for the commodities Indonesia produces, the value of exports excluding oil and gas has stagnated ($41 billion in 1998, compared with $38 billion in 1996) even as volume has jumped. Two years of rioting, rape and arson have scarred Indonesia's image as a tourist destination. Last week violence spread to the vacation island of Bali, one of the country's last big foreign-exchange earners.

It's hard to imagine a significant increase in consumer spending any time soon. Wages are unlikely to rise, and unemployment is sure to remain high. As long as GDP growth stays below 3%, only a minority of the 2 million people who enter the job market each year can expect to find work. Still, there are a few bright spots. The dramatic fall of the rupiah (from 2,450 to the US dollar in mid-1997 to around 7,400 today) has given a competitive edge to manufactured exports like textiles and garments. Although Indonesian workers are not especially productive by world standards, they are cheap (industrial workers earn about $40 a month). Yet the basic problems of corruption, collusion and nepotism did not disappear with the fall of Suharto or the recent defeat of Habibie.

Wahid's most immediate task will be to convince the World Bank and the International Monetary Fund to resume aid payments -- on hold pending a resolution of the Bank Bali scandal, which broke in July when a Standard Chartered Bank investigation revealed that $80 million of the ailing bank's funds had been channeled to Habibie's Golkar party. Looking further ahead, Wahid's ministers must reform Indonesia's deeply corrupt bureaucracy, courts and police. Because civil servants are paid less than they can possibly live on (about $20 a month), corruption is still de facto government policy. Indonesia got its leadership house in order last week, but now it's time to tackle the family finances.

Market damped by new cabinet, Y2K fears

Noel Fung, Jakarta -- Uncertainty over the economic policies of the new cabinet and the fact that many of its ministers lack a track record is set to damp investor interest in Jakarta stocks in the short term, and wipe out the euphoria over the country's dawning democracy, analysts said Tuesday.

Compounding foreign investor wariness is concern over Indonesia's Y2K compliance, which is deterring large institutional investors from entering the Jakarta stock market before the end of the year.

Newly-elected President Abdurrahman Wahid unveiled a market- friendly cabinet Tuesday with widely anticipated political compromises.

While there are a few faces from the old regime, the new cabinet prides itself on being clean and untainted by questionable practices of the past. It includes four ministers who served under either former presidents Suharto or B.J. Habibie, and at least five members of the Golkar Party.

Most analysts aren't convinced that the new cabinet is sufficient to drive the stock market up and lure back foreign investors, most of whom have been sidelined by political uncertainties earlier in the year.

"Until we see some clear sense of economic policies and certainty that there won't be renewed unrest in other parts of the country, foreign investors are likely to take a wait-and-see attitude," said Jardine Fleming head of research Qaisar Hasan.

Clouding investors' minds is the cabinet's palpable lack of experience -- in particular, those ministers who will handle financial matters and the economy.

The appointment of Kwik Kian Gie as senior economics minister is hailed by analysts as a sensible one. An economist by training, Kwik knows the financial markets well, and has pledged to stick to Indonesia's program with the International Monetary Fund.

Finance Minister Bambang Sudibyo, a professor from the Gadjah Mada University in Yogyakarta, is almost unknown in the financial markets.

"But these new people don't have the track record" to instill confidence in the market, said Goei Siauw Hong, head of research at PT Nomura Indonesia.

The JSX Composite Index could head for 650 to 700 points by year-end "depending on what the ministers will do," Goei said. But the climb to the 700-point level hinges largely on whether there will be inflows of foreign portfolio funds.

Fearful of the political instability, foreign investors have remained on the sidelines since the June parliamentary election, refusing to brave the volatile Jakarta market.

Languishing in subdued activity, the market was jolted last week by the election of popular Megawati Sukarnoputri to the vice- presidency. The brief rally last week lifted the index by more than 10% to more than 600 points.

However, the rally stemmed more from frenzied buying by local investors anticipating an inflow of foreign funds, dealers said.

When that didn't materialize, the gains proved unsustainable and the index quickly retreated to below 600-level Monday, reflecting the absence of long-term institutional investors.

Their absence was made more noticeable Tuesday after the announcement of the cabinet. Though the names were well-received, the market fell on the news, ending down 0.5% after the cabinet announcement.

However, even the year-end target of 700 points could be a strenuous climb for the index, given foreign investors' concerns over Indonesia's Y2K compliance.

"Foreigners are still very cautious; because of the Y2K problem, they probably won't be back until the first quarter of next year," said Goei.

Some institutional investors will refrain from investing in Indonesia one month before and one month after the end of the year, said a British brokerage.

In the run-up to the year 2000, there have been concerns that the Y2K or millennium bug could cause noncompliant computers to malfunction if they misinterpret the final 00 digits in the date field, leading these computers to read the year 2000 as 1900. As a result, some computers or machines may fail on New Year's Day or after, disrupting everything from power plant operations to banking systems.

Indonesia was named in a recent American intelligence report as one of the few countries in the world most prone to Y2K-related problems.

But looking beyond the millennium, Hasan from Jardine Fleming forecasts that the index could reach 700 to 750 points by the middle of next year, "assuming that banking recapitalization and reform stays on track."

That's because Jakarta stocks have lagged other Asian markets in terms of valuation, leaving more room for an increase.

Based on earnings before interest, tax and amortization, the Jakarta stock market is trading at a 10% to 20% discount to other Asian markets, such as the Philippines and Thailand, Hasan said.

Local brokerages admit that foreign investors tend to be more risk averse and are slower to return to the market than their local counterparts, although some expect this to change eventually.

"Those investors who view political stability as the primary consideration in investing should return soon because the Gus Dur and Megawati combination will provide stability for the country," said David Chang, head of research at Trimegah Securities. Gus Dur is Wahid's nickname.

Politics, scandal put the brakes on recovery

Jay Solomon -- Indonesia's prospects of a rapid economic recovery have been dashed by the confluence of political uncertainty, financial scandal and the bloodletting in East Timor. Hopes of reversing the trend rest largely on a stable government asserting itself in the wake of the country's most democratic elections in decades.

Through the first half of 1999, signs were emerging that Indonesia was rebounding following the financial crisis that ripped across Asia in 1997. Indonesia's currency, the rupiah, had strengthened to near 6,000 to the dollar, from as weak as 17,000 rupiah per dollar a year earlier. And Indonesia's benchmark interest rate dropped to below 20%, from highs near 70% the previous year. The International Monetary Fund and the World Bank, which are leading a $43 billion bailout package for Indonesia, hailed the nation's financial managers for a prudent monetary policy that allowed Indonesia's inflation rate to stabilize following fears of hyperinflation. And the IMF was projecting Indonesia's economy would see moderate economic growth in the year ending in March, after contracting nearly 14% a year earlier.

Raising optimism, in particular, was June's peaceful parliamentary vote. In the wake of the vote, which many had feared would spawn violence, international investors helped push up the rupiah and Indonesia's stock market on hopes that a transition from former President Suharto's ruling Golkar regime to a democratically elected one would be smooth. And key elements in the nation's economic recovery program, such as debt and bank restructuring, were seen being aided by a calmer political environment.

Guarded optimism

"We've cleared one major obstacle," said Indra Widjaja, a managing director of Indonesia's massive Sinar Mas Group at the time. He and a number of the nation's other ethnic-Chinese tycoons were guardedly optimistic about the return to the rapid economic growth Indonesia had seen for most of the 1990s.

Two major obstacles emerged in the months following the parliamentary vote, however, that have drastically thrown Indonesia's economic recovery off track. The politically charged financial scandal known here as Baligate has run Indonesia's bank-restructuring program aground. And the violence that erupted in the territory of East Timor after a United Nations-sponsored vote on independence has Indonesia running the risk of becoming isolated internationally.

The UN, the US, and the European Union charge that Indonesia's armed forces have "aided and abetted" East Timorese militias that have killed scores of independence supporters in the post- election period.

The IMF and World Bank say they are withholding future loans to Indonesia until the two issues are resolved. Both events "have interrupted, and may even derail, an otherwise steady march toward economic stabilization" in Indonesia, the World Bank wrote in a recent report.

The scandal surrounding PT Bank Bali is seen as particularly damaging to Indonesia's economic hopes, as it is disrupting the desperately needed restructuring of Indonesia's banking sector. Bank Bali is a recently nationalized bank that was found to have diverted 546 billion rupiah ($70.7 million) to a company headed by senior members of President B.J. Habibie's ruling Golkar party. The IMF and foreign investors have been unnerved by the possibility of corruption involving funds overseen by the Indonesian Bank Restructuring Agency, which is leading this bank-restructuring effort.

Senior officials at IBRA already have stated that their efforts to raise nearly 17 trillion rupiah in revenue from the sale of assets is being undermined by the Bank Bali incident.

'Wait-and-see mode'

Indeed, a number of foreign executives who have been trying to buy IBRA-controlled assets in recent months say they are placing their orders on hold as a result of the scandal. Fear that asset quality may have eroded under IBRA's care is one factor, while others say IBRA's management has simply been paralyzed by the scandal. "You can see we're in a wait-and- see mode at the moment," said an executive at a real-estate company who has been looking to buy assets from the agency.

Debt restructuring and overall business also has been impaired by the Bank Bali and East Timor crises. Renewed volatility in the rupiah has halted debt talks in many cases, Jakarta-based bankers say, and businessmen say their business plans have been thrown into confusion. "We don't know at what exchange rate to budget our expenditures anymore," says Richard Hakim, an Indonesian exporter of toiletries to a number of Asian, European and African countries.

He also says that the country's social turmoil has led some of his buyers to suspend orders for fear he won't be able to deliver.

The biggest threat to Indonesia's recovery from the East Timor crisis may simply be that it becomes isolated financially from the rest of the world. The IMF, World Bank, Asian Development Bank and Japanese government have all suspended new loans to the country in the wake of East Timor and the Bank Bali scandals, placing as much as $2.7 billion in financial assistance in jeopardy by the end of the year. Indonesia is heavily dependent on international assistance to finance a budget deficit expected to run at 8.5% of Indonesia's economic output during this fiscal year; economists warn that any prolonged delay in loan disbursements could severely undercut Indonesia's fiscal position.

Tension with Australia

Trade disputes with Indonesia's top trading partners have also emerged as a result of the East Timor crisis. Indonesian wheat buyers, for example, have vowed not to buy Australian wheat, as a result of what they believe is Australia's excessive interference in Indonesia's sovereign affairs: Australia is leading a peacekeeping force to restore order in East Timor. Australian unions, in turn, have refused to unload Indonesian products in Australia as a result, to combat what they charge are human- rights abuses committed by Indonesian troops in East Timor.

This international combination has generated a bunker mentality among many in Indonesia's business community. "If we have to go it alone, we will," says Iman Taufik, a vice chairman of the Indonesian Chamber of Commerce, or Kadin. He says Indonesia may be forced to focus solely on its trade ties with Asian and Middle Eastern countries as a result of the East Timor crisis.

Indonesia's best hopes for economic recovery, businessmen here say, is the formation of a stable government following November's presidential poll. A too-close-to-call race between opposition leader Megawati Sukarnoputri and Mr. Habibie has only been fueling the sense of instability here, unnerving foreign investors and local businessmen alike. And uncertainty over where economic policy making will head in a new government has added another layer of uncertainty.

Still, Indonesia's financial advisers believe that a government with a clear mandate is essential for pushing through the nation's difficult economic program. In a recent letter to Mr. Habibie, the IMF Managing Director Michel Camdessus told the president: "Handing over a stable democracy and a sound economy to the next government would remain a lasting and historic achievement of your presidency and be of the greatest service to the Indonesian people."