• Poll casts doubt on Wahid's leadership

• Maluku clashes killed 1,134 in 1999
• Maluku riots spread, 265 die
• Clashes rage for a third day Ambon
• East Java killing spree continues
• Thugs launch warlock hunt: military
• Six killed as fish stores stormed

• Wahid arrives in Papua for new year
• Troops kill rebel in Aceh

• Makassar students urge Wahid to act
• BI, PLN say no Y2K problems

• Jakarta: world's 3rd best market
• Trade surplus down, exports poor
• CPI still leaves room for rate fall
• Economy to grow by up to 4 percent

TNI denies role in Dutch journalist's murder

Jakarta -- A former battalion commander in East Timor admitted on Thursday that his troops ambushed two foreign journalists in the territory's capital of Dili on September 21.

However, Maj. Jacob Joko Sarosa, who commanded battalion 745 Sampada Yudha Bakti, denied involvement in the murder of Dutch journalist Sannder Thoenes, who was slain two kilometers from where his troops concurrently stopped British reporter Jon Swain and American photographer Chip Hires.

"My men seized two cameras and some 50 rolls of film from those journalists and I was sentenced to seven days' imprisonment for failing to control my subordinates," Jacob said after being questioned by the Commission of Inquiry into Human Rights Violations (KPP HAM) in East Timor.

He said his soldiers were "emotional and frustrated with white- skinned people" due to their belief there were unfair practices during the UN-administered ballot, which resulted in the rejection of an autonomy proposal within Indonesia.

"Tension was also high as my men had already been intercepted many times by Falintil members on their way from Los Palos, so the battalion stopped a taxi to check whether there were any proindependence supporters in it. But they turned out to be journalists."

Jacob said Thoenes, the Jakarta correspondent for London's Financial Times, was murdered when the battalion was passing the East Dili area of Becora on its way from Los Palos to the East Nusa Tenggara capital of Kupang.

He noted that "apart from battalion 745, at that time a number of other TNI units were still in Becora". He did not elaborate.

Thousands of the Indonesian Military (TNI) personnel were pulled from East Timor and dispatched to neighboring East Nusa Tenggara when the International Force for East Timor (Interfet) began to trickle into the territory in September. Thoenes was killed one day after the arrival of the multinational troops and less than two hours after he arrived in the province. His body was found in Becora on September 22 with multiple wounds and a severed ear.

Eyewitnesses said Thoenes was killed after he tried to flee a roadblock manned by a number of armed civilians in the area. Swain and Hires escaped into bushes, made their way to a nearby village and phoned their office in London, who conveyed contacted Interfet in Dili. A rescue operation was mounted involving a light armored vehicle, 100 troops and a number of Black Hawk helicopters.

KPP HAM in its midterm report claimed that, based on a preliminary investigation and witness accounts, TNI was directly or indirectly involved in the violence perpetrated by militias. Former TNI chief Gen. Wiranto and a number of army generals have denied the allegations, saying the violence was an emotional outburst which was neither premeditated nor controllable.

Other Army officers questioned included Maj. Gen. Zacky Anwar Makarim, Maj. Gen. Kiki Syahnakri and former East Timor military commander Col. M. Noer Muis.

KPP HAM members said former foreign affairs minister Ali Alatas was scheduled to be questioned next week.

Fight is out of militias in Timor

Keith B. Richburg, Tuapukan Refugee Camp -- Zelia Soares and her family had decided to go home, to leave this refugee camp in western Timor and take their chances in the newly independent East Timor.

First, they passed a quiet word to a relief worker. Next came an urgent morning call crackling through a walkie-talkie, telling them to get ready. Soon nine people -- an aging grandmother, the children, and the hard-faced family matriarch with betel nut stains on her teeth -- were loaded aboard a battered blue-and- white bus, along with green plastic chairs, rolled straw mats and rice sacks filled with cooking tins. Policemen armed with automatic weapons rode with them for protection.

The stealth and caution of the Soares' departure can be explained by the men in black T-shirts and army fatigues who lord over the refugees here with cold stares and unspoken threats. These are the foot soldiers of the militias who rained terror across the border in East Timor before fleeing to this desolate camp, about 22 miles northeast of Kupang in western Timor.

Their presence can still spark fear among the mostly rural refugees, and concern among relief workers. But the old bravado is gone from their swagger, just as it is from their threats of an armed insurgency in their homeland. They still wear the militia colors, but most don't dare admit their affiliation. They are defeated and leaderless -- abandoned by those who instructed them to kill, cut off from their Indonesian army backers and wondering whether they, too, might one day go home.

The sound of defeat is evident in their voices. "I want to go back to East Timor," says Antoniv da Silva, 41, who says he was a member of the notorious Besi Merah Putih militia, the "Red and White Iron," which was responsible for much of the destruction in Dili, the East Timor capital, after the vote for independence in August. He says he would go back to fight if ordered by his leaders. But with East Timor now officially independent, is there still a fight left?

"I have to admit, it is too late," he says. And where are his leaders? "We haven't seen them at all, since the last clash," His reply brings nervous laughter from those listening in. "The last time we saw them was when we left Dili on a ship. They were in first class. We were in the lowest class."

Formed by the Indonesian armed forces as a counterweight to East Timor's pro-independence guerrillas, the militias became an undisciplined mob that murdered independence leaders, harassed villagers and burned houses, shops and marketplaces. In the end they were defeated by Timorese who defied the terror and voted overwhelmingly for independence from Indonesia after a 24-year occupation. A new Indonesian parliament quickly endorsed the result.

Militia members were chased across the border into western Timor by an Australian-led peacekeeping force, taking along hundreds of thousands of civilians swept up in their retreat. Their leaders are now under subpoena by an Indonesian human rights investigating team, and they face new charges of obstruction of justice for failing to show up for questioning in Jakarta.

In perhaps the biggest blow to the militias, there are signs the Indonesian armed forces, isolated internationally and humiliated by the East Timor debacle, are moving slowly but deliberately to cut ties with their former proteges.

"We want everybody to go home," said Maj. Gen. Sudrajat, the armed forces spokesman in Jakarta. "To tell you the truth, we just want to get rid of the East Timor problem. We are tired." He said the armed forces commander has informed militia leaders in Atambua, the main militia training base: "Be realistic ... It's useless."

The militias are in "a bit of a crisis," said Yusuf Hassan, spokesman for the UN High Commissioner for Refugees (UNHCR) in Kupang. "Indonesia is no longer showing enthusiasm in supporting them. Having said that, there is still some training going on in some of the sites. There are still some elements of the Indonesian military supporting them."

Some militia members in western Timor still talk of waging war over East Timor, but for the most part there has been little action. A few cross-border excursions against the peacekeeping force have left several militiamen dead and two Australian soldiers wounded. Now the militias spend their time doing military drills near Atambua, mostly using sticks in place of rifles.

"The threats have been incessant and unfulfilled," said Australian Maj. Gen. Peter Cosgrove, commander of the intervention force known as Interfet, in an interview in Dili. "We do notice that their level of sponsorship has diminished markedly. Their unity of purpose is in question. Their morale has been significantly damaged. I think their financial position is grim. I think they're homesick.

"The vast majority of them would like to see a formula for reconciliation. But in some ways they are tied into a vicious circle of using the IDPs [internally displaced persons] as a bargaining chip. We know from the overtures we receive that their hearts and minds are not in it."

"They are pretty good at being bullies," said Col. Mark Kelly, chief of staff of the intervention force. "But when they actually faced a well-trained, disciplined force that came in here with a mandate and rules of engagement ... they knew they couldn't get away with what they had been getting away with."

According to the Indonesian government and the UNHCR, there may be 170,000 East Timorese refugees still in western Timor, and tens of thousands may be there against their will, virtual hostages of the militias. A movement to repatriate the refugees brought 118,000 people home to East Timor in recent weeks.

But now that movement has slowed to a trickle, relief workers here say. The number of daily flights has dropped from five to one, if that many. UN refugee officials also complain that they still do not have free access to all the camps.

Not all the refugees stay because of intimidation. In fact, relief workers, diplomats and Indonesian government officials cite a complex series of reasons the refugee return has slowed. Refugees have access to relief supplies in western Timor, while in devastated East Timor there are no jobs and food is scarce. Others here have settled into a new life. At a UNHCR center, one East Timorese man and his wife said they wanted to go home -- but only after July 2000, because they had enrolled their son in a local high school and want him to finish the school year.

Asked how many of the refugees will become permanent residents of western Timor, the Indonesian army commander in Kupang, Col. Jurefar, said, "That's a difficult question. Next month, we'll make a new inventory ... If law and order is maintained in East Timor, I'm sure more refugees will go back. But unfortunately, it is still difficult to meet your daily needs in East Timor."

However, Maj. Gen. Sudrajat, the armed forces' spokesman in Jakarta, acknowledged that intimidation by the militias is an obstacle to the refugees' return. While many of the refugees stay in western Timor for economic reasons, he said, "Of course we should admit that some elements of the militia -- the pro- integration militia -- also discourage them from going home."

Part of the problem, say Indonesian government officials, military officers and foreign relief workers, is that many of those still here are rural people, mostly uneducated, who are waiting for instructions from the village chiefs, family elders and militia leaders who brought them here.

"A large number of people who are uneducated or semi-educated are under the grip of the militia," said Hassan, the UNHCR spokesman. "They don't have access to information. They would go back if they had the right information, and the intimidation was not there." The UNHCR has launched its own information campaign, using fliers and videotapes to counter what it calls the disinformation of the militias.

No one can give an accurate figure, but Hassan estimated that the number of people now being held against their will in western Timor would number "tens of thousands."

Indonesian officials and relief workers say that the ability of the militias to hang on to their weapons in the camps, despite the government's call to disband, reflects pockets of support remaining inside the armed forces.

Marzuki Darusman, Indonesia's attorney general and chairman of the national human rights commission, said, "The question is always why doesn't the armed forces move on it? There are intransigent elements within the armed forces -- that's the only way to explain it."

A Western diplomat in Jakarta said that the Indonesian government knows that allowing the refugees to return home is a necessary condition of resumption of normal relations with the United States and other Western governments. But he also said that given the problems of command-and-control in the armed forces, "They can't just turn it off overnight."

Sudrajat said much the same thing: "There are some militias in the west that are still carrying arms. We cannot arrest them because we do not have enough forces. We cannot search, one-by- one, in the camps. We'd have to declare a military emergency first. Our method is to try to persuade them."

There are some signs that the message may be seeping in. On December 12, one of the most notorious militia leaders, Joao Tavares, held a meeting in the border town of Motaain with Xanana Gusmao, the East Timorese independence leader. The longtime enemies embraced. The next day, Tavares announced that his militia group, the East Timor Fighters Force, was disbanding. Tavares said further fighting was futile, and he urged all his men to turn over their weapons.

Col. Jurefar, who attended the Gusmao-Tavares meeting, said he saw "a new communication" developing that may eventually lead the refugees home. "The atmosphere of that meeting was peaceful," he said. "There was no hatred at all." He said the two sides have agreed to have future meetings at the border.

Xanana sees earlier independence for homeland

Dili -- East Timor's leader Xanana Gusmao said here Friday that he foresaw the territory obtaining full independence in at most two years -- a year less than currently envisaged.

In a year-end speech, Gusmao unveiled a three-stage plan for the first 25 years of the next century prepared by the National Resistance Council of East Timor (CNRT), which he heads. The first stage, which he called "Stage A" consisted of "a one to two year transition to independence," Gusmao said.

The UN Transitional Authority in East Timor (UNTAET) which took over the authority over East Timor from the Indonesian government in October following the ratification by Jakarta of the results of a pro-independence, UN-held ballot, has estimated that independence would come only in two to three years. Gusmao said that the transition to independence will encompass two essential aspects. "The technical training of East timorese with the support of UNTAET and which will commence with the physical reconstruction of basic infrastructure and the process of political maturation of the Timorese society, the responsibility for which rests with the CNRT," he said.

Gusmao, who is the most likely man to lead a free East Timor, said that the second stage of the plan, "Stage B" will last some 10 to 15 years "during which the national development strategy will be implemented. The third and last stage, "Stage C" will be for the consolidation of independence, he said.

Gusmao also pledged that the CNRT would work to establish East Timor as a democratic state. "True development cannot exist in the absence of true democracy," Gusmao said.

Xanana says will not seek presidency

Dili -- East Timor's independence leader Jose Alexandre "Xanana" Gusmao said Friday that East Timor will be the first new independent nation of the new millennium, but not with him as president.

Gusmao has been widely regarded as the main contender for the presidency when East Timor, now under UN administration, becomes independent.

However, the former guerrilla commander said that in other emerging nations those who lead independence struggles often do not make the best leaders in times of peace.

"We read about many other failures, in many other countries, in which heroes of the struggle become the leaders. A new country needs someone of more capability to lead, to govern and to guide," Gusmao said.

But no matter who eventually wins the presidency, East Timor entered the new millennium as a nation on the road to independence.

Crowds gathered to celebrate on the main square along Dili's waterfront. Gusmao unexpectedly appeared during the festivities and greeted the revelers. Nobel laureate Jose Ramos-Horta, who has spent the past 24 years campaigning for independence, said the celebrations reflected the joy of the people.

"It is a dream becoming a reality, a dream that every East Timorese has had for the past 24 years, that I have had for the past 24 years," Ramos-Horta said. "East Timor is basically free now," he said. "Maybe by the year 2001 the flag of East Timor will go up and the flag of the United Nations will go down."

Timorese protest return of Muslims

Dili -- Several dozen Muslims who fled the recent violence in East Timor returned home to a protest by East Timorese who said they are not welcome, a UN official said Friday.

The 63 Muslims who flew back to Dili on Thursday were almost overwhelmingly of Indonesian origin, said Sidney Jones, who heads the humanitarian division of the UN Transitional Administration in East Timor (UNTAET).

"The people were taken to the mosque and there was some protest by the community that more Indonesians shouldn't be allowed to return. It's not clear what the origins of their anger were but there had been some dispute over their activities in the local market," Jones said. She did not know the number of protesters.

International peacekeepers were sent to the mosque along with representatives of the National Council of Timorese Resistance (CNRT), said Major General Peter Cosgrove, who heads the International Force in East Timor (Interfet). "It was a worrying moment or two," Cosgrove said, adding the crowd dispersed without incident.

Jones said the Islamic refugees had no desire to stay in Indonesia. Sergio Vieira de Mello, who heads the UNTAET mission, said the Muslims are entitled to stay in East Timor.

The predominantly Catholic land is moving toward independence under UN administration after Indonesia approved the territory's separation a ballot there that was followed by a pro-Jakarta militia campaign of violence backed by Indonesian armed forces.

The violence followed an August 30 ballot in which East Timorese voted to reject an offer of autonomy with Indonesia, which invaded the former Portuguese colony in 1975.

"As far as I am aware, they are entitled to remain here. They left like others in fear because their houses were destroyed. They wish to remain here and they should be allowed to do so irresepective of their religion," de Mello said.

The incident came near the end of the month-long Islamic fasting month of Ramadan. At the start of Ramadan, members of Dili's largest mosque told AFP that despite some threats from local residents, they wanted to stay here. They said the CNRT president, Xanana Gusmao, had already visited to say they were welcome in East Timor.

Members of the mosque, which has more than 200 members, said Muslims have been in East Timor for about 500 years.

Government/politics

Poll casts doubt on Wahid's leadership

Jakarta -- Just two months after taking over the reins of national leadership, observers and opinion polls are already heaping doubt on the leadership of Abdurrahman Wahid.

A poll conducted by Jayabaya University found that despite the prevailing climate of democracy, urban dwellers had little faith in the government's ability to bring peace and security to the country by resolving regional tension.

Out of 2,000 respondents in Jakarta, Surabaya, Medan and Makassar, 50.75% doubted the government could ensure security in the country.

The survey seems to reflect a general mood in the country in that despite fears of rising tension, an overwhelming 61.85% agreed that the leadership of Abdurrahman and Megawati Soekarnoputri injected a sense of democracy back into politics.

There was also strong recognition of support in the economic field, with almost 51% also feeling that under the new government the economy was showing signs of improvement. The poll was conducted between November 27 to December 20.

Separately, the Justice and National Unity Movement (GKPB) in a year-end media conference evaluating the performance of the new government, criticized Abdurrahman for being overly accommodative and compromising in composing his Cabinet which as a result has not functioned properly.

"He ignored competency and professionalism. Gradually people have been able to see for themselves that such a Cabinet is spending too much time just coordinating among them and not working for their respective departments," Zulvan said.

He added that public trust and real attempts for law enforcement could be indicators of increasing economic development.

Zulvan said that as security became more assured, investment would start to flow and help ease the country's economic turmoil.

He warned that if Abdurrahman did not inject consistency and assertiveness in his presidential leadership people would slowly lose faith in him.

"It is still hard to predict, but I'm afraid he won't be able to survive the full term of his presidency if he is still like this next year," he remarked.

Regional conflicts

Maluku clashes killed 1,134 in 1999

Jakarta -- A year of bloody conflict between Muslims and Christians in Indonesia's Maluku islands has left 1,134 killed, and over 2,300 injured, according to security forces.

More than 8,500 buildings, including more than 122 places of worship, were either damaged or burned as a result of clashes which erupted on January 19, 1999 on the island of Ambon and have known spread to at least five other main islands.

Maluku police chief Brigadier General I Dewa Astika told the Kompas daily that the dead included 17 soldiers.

A total of 15 battalions -- equivalent to some 9,000 troops -- from outside the province have now been deployed in what were formerly known as the Spice Islands.

Tension between the warring sides continued on New Year's eve and shortly after the region entered the new year.

In Ternate, the main town in the newly-established province of North Maluku, the sound of gunshots and the explosions of fuel bombs were heard minutes after the closk struck midnight, the Antara news agency said. Earlier on Friday a convoy of cars noisily toured the city's main streets displaying a severed head. Ternate has seen three days of conflicts opposing troops and supporters of the two neighhouring sultanates of Ternate and Tidore. At least seven people have been killed.

In Ambon, the capital of the Maluku province, a number of shops around the AM Sangaji commercial street were burning shortly before midnight and groups of people were seen gathering at street corners, Antara said.

Mobs carrying knives and machetes as well as Molotov cocktails and firearms, were also seen in at least three areas in downtown Ambon early after midnight on Saturday, sparking warning shots from security forces.

A residential area in Waiheru, on the other side of the Ambon Bay was early Saturday attacked by a mob from Leihitu on the northern coast of Ambon island, Antara said but there were no reports of casualties.

Hundreds of people have been killed in the last week in a round of violence sparked by the burning of a protestant church on Ambon. At least 265 people died in just three days earlier this week in Tobelo, northern Halmahera.

[On January 1, AFP reported that 500 soldiers from the army's Kostrad strategic command in East Java arrived on Morotai island to reinforce local security forces. One company of soldiers from central Java and two companies of police from Borneo were deployed to reinforce local security contingents following the clashes which began late on December 27 - James Balowski.]

Maluku riots spread, 265 die

Jakarta -- At least 265 people have been killed in clashes between Christians and Muslims on Halmahera island in North Maluku over the last three days.

The number of casualties brought the death toll in sporadic communal clashes across the spice islands of Maluku to nearly 330 since the new wave of violence broke out on Sunday, just after a peaceful Christmas.

In its press release, the Indonesian Military (TNI) information service said about 360 buildings, including mosques, churches, were burned down, while nearly 12,000 people sought refuge at the nearest military installations following the violence that rocked the district of Tobelo.

The TNI quoted chief of Tobelo military Capt. Made Tarsi as saying that the conflict broke out at about 9pm on Monday. It affected Blanghalu, Upa, Wari, and Garua villages.

Halmahera's Muslim leader Rustam Bayan told The Jakarta Post the conflict continued in Soatobaru village, some eight kilometers west of Tobelo, on Thursday morning, killing one man and injuring 18 others.

The violence followed similar clashes in Ambon, the capital of Maluku, where at least 63 people were killed and more than 100 were injured this week.

Fighting in Ambon began to abate on Thursday, following the transfer of security authority from the police to the local military command beginning on Wednesday.

The military commander, Brig. Gen. Max Tamaella, announced a curfew beginning on Thursday. It restricts people from leaving their homes from 10pm to 6am.

"In accordance with the Muslim fasting month, residents may leave their homes only for emergency reasons, without having to cross their neighborhood borders," Tamaela said.

He said the security authorities also prohibited any gathering of people which involved more than 10, without acceptable purposes. Gatherings as part of religious practices were exempted, according to Tamaela.

"We will disband any illegal meetings and take harsh measures against any resistance to the law," he said.

Rustam said the fighting in Tobelo pitted supporters of the Sultan of Ternate's family against their opponents on the neighboring island of Tidore. He added that the clashes had claimed the lives of some 90 supporters of the royal family.

Unrest was also reported on Haruku island, west of Ambon, where eight people have been killed in the violence since Wednesday afternoon, the daily Suara Pembaruan reported on Thursday.

The riots in Tobelo ceased when dozens of military troops arrived to restore order there, Rustam said. But tension remained high, with security personnel standing on alert across the town. An electricity blackout was applied last night in areas prone to brawls.

A member of the Ternate Police, Second Sgt. Markus Duan told the Post that the police were unable to stop the bloodshed, as they would be accused of taking sides with one of the embattling groups. "We fired warning shots only if the warring groups turned savage," he said, referring to some fighters who beheaded their captured foe.

Markus said the clashes virtually ended when the two warring camps agreed a truce on Wednesday afternoon at the palace of the Sultan of Ternate.

A sociologist who hails from Ternate, Ahmad Tamrin Tomagola, suspected the latest violence in his homeland was sparked by a power struggle as the territory was bracing for local elections in June.

"Somebody wants to become the governor of the newly created province and used a group of people who have long suffered from oppression to reach his goal," Tamrin said, denying speculations that the conflict on Halmahera was motivated by religious issues. He warned that the fighting could be repeated in 10 or 20 years if the new local government of North Maluku failed to promote the fair distribution of power and wealth. He said he would fly to Ternate on Sunday to mediate reconciliation efforts there.

Meanwhile, House of Representatives Speaker Akbar Tandjung suggested that the government begin to separate the Muslim community from Christians in order to prevent further sectarian conflicts in Maluku.

He also agreed to the use of strict measures to halt the clashes, including a shoot-on-sight policy for rioters.

Clashes rage for a third day Ambon

Jakarta -- Muslim-Christian violence raged for the third day running in the eastern Indonesian city of Ambon on Tuesday, after claiming at least 33 lives the previous day, residents said.

The sound of gunfire and explosions from grenades and home-made bombs has echoed around the city since dawn, the sources said, adding that a number of buildings were in flames.

Few details of any casualties on Tuesday were immediately available. "Clashes have continued unabated since last night," Rahman, a member of the Muslim Al Fatah mosque, told AFP. Christians attacked a Muslim neighborhood in the city's Diponegoro area with hand grenades and home-made bombs, he said. "They use real grenades and standard military guns," Rahman said.

Meanwhile a member of staff at the Ambon chapter of the Indonesian Red Cross said Muslims on Tuesday attacked an area near the Silo Protestant Church which was torched on Monday.

The headquarters of state electricity firm PT. PLN in the area near Silo was also burning, the Red Cross official added. "You have been able to hear a lot of gunfire and bombs since before dawn," he added.

Both Muslims and Christians have accused the Indonesian military of backing the other side, and the Indonesian Communion of Churches (PGI) on Tuesday issued a statement calling for international peacekeepers to be deployed across Maluku province.

PGI said the military and police must be held accountable for the unresolved and escalating conflict in the Spice Islands. "If accountability is not undertaken, then, taking into consideration the continuing violence and heeding the people's strong feelings, it would be best if TNI and police forces were pulled out of Maluku and were replaced with international peacekeepers," the PGI statement said.

Signed by PGI chairman Bishop Sulaso Sopater and secretary general JM Pattiasina, the statement said that if the violence is allowed to continue unchecked the indigenous people of the Maluku islands will be wiped out along with their institutions.

The people of the Malukus are predominantly Melanesian, but many have blamed this year's violence on the arrival of Muslim migrants from the neighbouring provinces of South and Southeast Sulawesi to the west.

The migrants have progressed to dominate the local economy, causing jealousy and disturbing the precarious inter-religious stability which existed previously because of kin ties between the communities.

The latest clashes in Ambon were set off after a car driven by a Christian ran over a child. The Muslims accused the Christians of taking the injured 14-year-old Muslim boy hostage. Rahman said at least 30 Muslims, including a soldier, died in the clashes on Monday. He blamed the troops for the killings.

A man staffing an emergency post at the Marantha church said street battles were taking place in the Jalan Baru area of Ambon, but he refused to give details. Another staff member at Maranatha, who identified herself as Lusi, said later that an estimated 400 Christians had sought refuge at the church.

"Some of them have sought refuge because their homes were burned while others have come out of fear," she said. She said witnesses saw a man shot during clashes on Tuesday afternoon and that the sound of gunfire and military armored cars could be heard from the church.

In addition to clashes in Ambon, where hundreds have died in sectarian violence this year, serious violence has also been reported in other areas of the Malukus in recent days.

Clashes on Buru island which erupted on Wednesday last week had left at least 125 people dead by Sunday, the Media Indonesia daily reported Monday. The report said thousands of people on Buru had fled to the mountains to seek refuge.

The violence on Buru was set off by a scuffle between two workers at a plywood factory and continued unchecked through to Sunday, the Media Indonesia said.

Police in Masohi on the neighboring island of Seram -- which oversees security on Buru -- declined to confirm the death toll when contacted by AFP. Buru could not be reached by telephone.

East Java killing spree continues

Surabaya -- A 65-year-old woman became the latest victim of the two-week-old killing spree in the Malang area, which has so far claimed nine lives. Alimah Saniwar was found dead in the wee hours of Wednesday morning at her home in Sumber Runcing village, Pagak district, Malang, some 90 kilometers south of Surabaya.

Witnesses said she suffered severe slash wounds to her back and her house was also torched by a mob. Her blind daughter Hati, 35, survived the incident with some injuries.

Malang Regional Police chief Col. Aryanto confirmed the murder on Thursday, saying police were investigating the case and gathering information from Alimah's relatives and neighbors.

"The modus operandi in this case is similar to the previous murders as the victim's home was located in a remote area, separated from other houses. It's clear that whoever did this did so in systematic and premeditated way.

"She was living in the middle of a corn field. Her body was found at the back of the house and the killers set her home alight. The neighbors only found out about the incident after they saw the fire," Aryanto explained.

Aryanto further revealed that based on investigations so far there are indications the killing spree is possibly politically motivated.

He did not elaborate further, but stated that most of the 21 murder suspects detained were relatives of members of the banned Indonesian Communist Party (PKI). Aryanto mentioned four factors which he found pertinent to the case.

"First, it's public knowledge that the area south of Blitar and South Malang was a strong PKI base. The area witnessed the fiercest ever battle between the PKI and the Armed Forces, which were supported by GP Ansor, the Nahdlatul Ulama's (NU) task force," Aryanto said.

The second is the fact that the killings were done when the victims were at their most vulnerable, such as when they were praying or asleep.

"The third is the impact of freedom and reform, which makes them tend to take the law into their own hands. The final factor is the lack of security personnel available to cover the area prone to killings and riots," Aryanto said.

Meanwhile chief of the Brawijaya Military Command Maj. Gen. Sudi Silalahi denied the killings were politically motivated, arguing instead that "they were spontaneous actions".

East Java Police chief Maj. Gen. M. Dayat alleged earlier this week the person behind the continuing murder spree was a wanted criminal from Jakarta. Without elaborating, Dayat said the murderers were paid Rp three million by the suspected mastermind from Jakarta.

Prior to the latest killing, eight people have died in four separate attacks in the regency since December 9. The murders occurred in Pagak district, Ampelgading district, Kalipare and Sumbermanjing Wetan in South Malang.

In a bid to stop the murders from escalating, GP Ansor formed an investigation team on Thursday. A similar step was also taken by the East Java Provincial Council, with several legislators departing for Malang to gain firsthand information.

Both teams strongly believe that there may be a connection between the Malang murders and the Banyuwangi killings last year. Over 100 died in the Banyuwangi killings.

"The mobs were sent to kill people and create instability in areas known as NU's strongholds. This time their long-term goal is to shake Abdurrahman Wahid's government," Farhan S., head of East Java's GP Ansor, said.

The killings in Banyuwangi, some 290 kilometers southwest of Surabaya, began in September last year.

At least 150 people were killed in six regencies. The killers, mostly ninja-garbed, initially targeted people allegedly practicing black magic, however, Muslim preachers and teachers later also became victims.

Thugs launch warlock hunt: military

Jakarta -- Jakarta-based thugs are offering large rewards to hunt down and kill suspected black magic warlocks leading to eight horrific deaths so far, security officials alleged in a report Tuesday.

Authorities have discovered three million rupiah (428 dollars) is being offered for each alleged warlock killed, military commander Major General Sudi Silalahi said according to the Media Indonesia daily.

"It is up to you to take these findings about thugs from Jakarta seriously or not. But what is clear is that it is happening," the East Java commander said.

Eight people have died in six incidents in Malang district since November 8 in killings linked to the hunt against suspected warlocks, he added. Some of them were burnt or buried alive, he added.

The campaign is similiar to a mysterious outbreak of terror and killings in the East Java district of Banyuwangi early last year in which 150 people suspected of black magic were killed by masked and black-clad men.

The night-time murders became known as the "ninja" killings and caused widespread terror with people being targetted at random.

"We see that there is a systematic effort by provocateurs to goad the masses to even bigger collective activities," Malang district police chief Colonel Aryanto Sutadi said, according to Media Indonesia.

"They want to imitate the series of slaughters that were blamed on ninjas a year ago," he added. Some 125 people were arrested after the 1998 Banyuwangi murders but they have only been given lenient sentences at trial, and most were only accused of assisting in unplanned murders or possessing weapons. The main provocateurs have never been caught.

A member of the East Java parliament, Haruna Sumitro told the daily he believed the new violence against suspected warlocks had been intentionally rekindled to shift attention away from national issues.

In Banyuwangi prominent local religious members have also been targetted by the attacks and religious leaders have spoken of professionals being sent from Jakarta to either carry out or organise the killings.

Others have also accused the military of involvement in the violence or at least of consenting to the purge.

Sociologists and observers have said although there have been reported attacks on suspected black magic practicioners in East Java since the early 1980s, the number of cases rose in May 1998.

Six killed as fish stores stormed

Jakarta -- Six men were killed when police opened fire on hundreds of angry fishermen who stormed and burned 10 fish warehouses in the North Sumatra port of Belawan on Tuesday, reports reaching here said.

The six victims all died of gunshots fired by members of the Brimob elite police unit who were deployed to disband a mob that attacked the Belawan port near Medan, the capital of North Sumatra, early on Tuesday, the Detikcom online news service said.

The attackers had been angered by the beating up of one fisherman by guards of the warehouse complex after he was caught stealing one fish the previous day.

Fishermen said that they had not been at sea for the past eight days because of bad weather,and some of them were desperate to feed their families, Detikcom reported.

Ten fish warhouses, six cars and two fish trawler boats were burned in the violence, but Detikcom said that by late afternoon, the police had reestablished control of the area.

Aceh/West Papua

Wahid arrives in Papua for new year

Jakarta -- Indonesian President Abdurrahman Wahid has arrived in the remote eastern province of Irian Jaya, were calls for independence have been rising, to watch the first local sunrise of 2000, the state Antara news agency said Friday.

Antara said Wahid arrived at the Sentani airport near Jayapura, the capital of Irian Jaya accompanied by several cabinet ministers and Irian Jaya's governor Freddy Numberi who is also state minister for administrative reforms.

Upon arrival Wahid was greeted by some 500 demonstrators who crowded the airport and put up dozens of placards and the Morning Star flag -- the symbol of the free state of West Papua for which the Free Papua (OPM) separatist movement has been fighting since 1961.

On the president's agenda are talks with local civic, tribal, religious and student leaders later Friday and on the following morning, watching the first sunrise of the year 2000 from a military house on a hill overlooking Jayapura, Antara said. Students from Cendrawasih university are to be enlisted to assist the police and the military in assuring Wahid's security, Antara reported.

Wahid's visit to Irian Jaya is the first part of his promise soon after he was elected that he would visit both Aceh and Irian Jaya to discuss how their grievances can be addressed. Both provinces are rich in natural resources and there is resentment that little of the profits generated from them are ploughed back into local projects.

Wahid has responded to demands for secession in the two regions by promising them extensive autonomy within Indonesia.

Violence in Irian Jaya has been on a lesser scale but separatist sentiment there is also very strong.

A Free Papua state was declared by Irian Jaya leaders while the territory was still under Dutch occupation on December 1, 1961.

Indonesia claimed Dutch New Guinea as its 26th province and renamed it Irian Jaya in 1963 -- a move recognised by the United Nations in 1969.

But the people of the province, which shares a land border with Papua New Guinea, consider themselves closer to the Melanesian people of the South Pacific than the dominant Javanese in Indonesia.

Troops kill rebel in Aceh

Jakarta -- Indonesian security forces killed a suspected separatist rebel and wounded another in the latest armed skirmish in Aceh province, a local newspaper reported on Friday.

The exchange of gunfire between rebels and security forces lasted for 30 minutes on Thursday in the Matangkuli area of North Aceh, the Banda Aceh-based Serambi daily said.

No troops were killed or wounded in the skirmish, North Aceh police chief Lieutenant Colonel Syafei Aksal told the daily.

The shooting broke out as a patrol of 12 soldiers on six motorcycles encountered a van accompanied by eight men on a motorcycles in Matangkuli, some 33 kilometres southeast fo Lhokseumawe, the main town in North Aceh district.

A spokesman for the Free Aceh Movement (GAM), Ismail Syahputra, said that two civilians were killed in the incident but said that no rebels had been killed or injured in the shootout. "Two people became martyrs. But they were not GAM members. They were just ordinary residents," he said.

Aceh, a resource-rich region on the northern tip of Sumatra, has been wracked by clashes between Indonesian troops and guerrillas of GAM, which has been battling for an independent Islamic state since 1976.

More than 300 people have been killed this year, including both civilians and members of the security forces.

News & issues

Makassar students urge Wahid to act

Makassar -- Some 100 protesting students intercepted visiting President Abdurrahman Wahid's entourage on Thursday to demand the government promptly resolve the violence in Ambon.

The students from the Association of Makassar Muslim Students halted the President's entourage, including Indonesian Military Commander Adm. Widodo and Minister of Home Affairs Surjadi Soedirdja, for about five minutes before being dispersed by security officers. The incident took place on Jl. Perintis Kemerdekaan in front of Hasanuddin University.

The President, who had just arrived at the airport, proceeded on to the hall on Jl. Jend. Sudirman, some 10 kilometers from the campus, where a dialog with community representatives was scheduled.

As the President's entourage passed, the demonstrators, mostly students from the university, attempted to follow the motorcade, many asking passing motorists for rides.

Prevented by tight security from entering the hall, the protesters held a free speech forum outside the building.

The situation became tense as a standoff developed between demonstrators and civilian security guards organized by Nahdlatul Ulama. However, cooler heads prevailed and violence was averted.

President Abdurrahman arrived on Thursday for a two-day visit. He is scheduled to open the mass prayer Wirid '99 on Friday.

Adnan Nasution, one of the demonstrators, told The Jakarta Post the action was in response to the government's sluggishness in dealing with violence in Ambon. "We just don't want the President to do nothing and let the problem remain unresolved," Adnan said.

During the dialog with community representatives from Aceh, Irian Jaya, Ternate and Sulawesi, Abdurrahman said was committed to his promise of a referendum in Aceh.

"Just hold the referendum. The central government will act as arranger," he told the Aceh representatives. "But the Acehnese should not keep [the promise for a referendum] as a way of life. Don't just think of revenge. Let's work together to build a new life for the future, don't just look back to the past," the President said.

While the dialog was taking place, hundreds of protesting students from the Islamic Teaching Institute Alauddin Makassar seized 12 non-Muslims of Chinese descent. The demonstrators urged the government to settle the violence in Ambon. The "hostages" were released after negotiations with security personnel.

Inside the hall, the President told the audience he had lobbied the governments of the United Arab Emirates, Kuwait and Brunei to provide aid for the people of Aceh. "The Arab Emirates promised Rp 240 billion per year," he said, adding that the government needed at least US$90 million to address poverty in the province.

He stressed that in the future the government's policies would focus on creating togetherness of spirit and allowing the provinces to develop their own cultures.

"Literally, I see recent outbursts in some provinces as being initiated by unfair treatment by the central government," he said.

The President said building unity was imperative so in the future no province would view itself as maltreated. "If Aceh claims to have been hurt, we should be aware that many other provinces have been hurt too," he said. He said that for almost 15 years he himself was "stirred" by the Soeharto regime.

Discussing the continuing bloody clashes in Ambon, the President said economic motives were behind the violence. "Certain groups want to monopolize natural resources there."

Togetherness grounded in respect for law, freedom of expression and tolerance will be the future of Indonesia, Abdurrahman said.

BI, PLN say no Y2K problems

Jakarta -- Indonesia's central bank, Bank Indonesia, said early Saturday that it passed the year date change -- Y2K -- without any computer glitches.

"We have tested connections with all of our branches all over the country and there wasn't any problem," said Brenda Sutrisno, an official with Bank Indonesia.

Brenda said that all joint venture banks in Jakarta have reported to the central bank they didn't find any problems during the changeover. Reports from local banks and foreign banks are expected later in the day.

Meanwhile, Mines and Energy Minister Susilo Bambang Yudhoyono declared that the state-owned electricity entity passed the year change smoothly.

"PLN passed the critical time [without any problem]," Yudhoyono said. However, he said that PLN is staying alert until it passes another critical date, namely, February 29.

Economy & investment

Jakarta: world's 3rd best market

Jakarta -- Share prices on the Jakarta Stock Exchange (JSX) ended the year with a 70% gain, making the bourse one of the world's best performing markets.

According to data compiled by the Indonesian Capital Market Supervisory Agency (Bapepam), the JSX ranked third among the world's best performing markets in 1999 after South Korea's Seoul and Singapore stock exchanges.

The JSX Composite Index rose 70.06% during 1999 to close at 676.91 points on Thursday -- this year's last trading day. It comes after the Korea Composite Stock Price Index and Singapore's Straits Times index which respectively booked an 82.78% and a 78.83% gain for the year. "The year 1999 is the recovery year for the Indonesian capital market," Bapepam's research bureau said in its year-end report issued on Thursday.

According to the report, The JSX Composite Index jumped to its highest point at 716.46 in mid-June and dipped to the lowest level at 327.31 in mid-March. The composite index closed last year's trading at 398.03 points. Some analysts, however, downplayed the significance of such a gain on the JSX, saying that it was just an adjustment of high inflation rates over the past two years.

Nevertheless, they acknowledged that the gain was also a consequence of the improving political situation following the relatively peaceful general election in June, dubbed the first free and fair democratic election in four decades, and the election of President Abdurrahman Wahid in October.

Following the improvement on the political front and the strengthening of the country's macroeconomic indicators, companies operating in trade and service sectors were quick to respond to such improvements, Bapepam said.

Trade and service companies performed best on the JSX, booking a 241.82% gain during 1999. The most sluggish companies were those in the agriculture sector, which booked a loss of 23.71% during the year.

The report said the average daily trading value stood at Rp 594.2 billion (US$85 million) for this year, compared to Rp 403.6 billion last year. Market capitalization jumped to Rp 443.3 trillion this year from Rp 175.7 trillion last year.

Total shares traded during the year were at 177 billion, compared to 90.6 billion shares last year. And this year's total trading value stood at Rp 147 trillion, compared to Rp 99.7 trillion last year.

Nine companies held initial public offerings (IPOs) of shares this year, compared to only two companies last year, and as many as 29 companies conducted rights issues this year, compared to 18 last year. Six companies issued corporate bonds this year, as compared to only one last year.

Funds collected by companies issuing IPOs, bond issuances and rights issues this year were respectively Rp 371.4 billion, Rp 2.68 trillion and a massive Rp 129.14 trillion. Total funds mobilized through the capital market, therefore, reached Rp 132.2 trillion, compared to only Rp 5.1 trillion last year.

"As of now, Bapepam is evaluating the application of seven companies for IPOs, two for bonds issuances and another two for rights issues," Bapepam said in the report.

It said the number of mutual funds as of this December stood at 81 companies, about the same as last year's. But total funds under their management rose to Rp 4.5 trillion as of this month from Rp 3 trillion at the end of last year.

JSX management also reported on Thursday that it had delisted 20 companies in 1999, as compared to none in the previous year. A lot of listed companies suffered from deteriorating financial conditions due to prolonged economic crisis.

The JSX also said that the volume of trading activities by domestic investors jumped to 65%, from 58% the previous year.

The trading on the JSX will be closed on Friday and Monday on year-end holidays. The trading will resume on Tuesday.

Trade surplus down, exports poor

Jakarta -- Indonesia's trade surplus in November slid 7.8% to $2.35 billion from $2.55 billion in October, raising concerns that it may take some time to revive non-oil exports despite the improved domestic political climate after the October presidential election.

The chairman of the Central Bureau of Statistics, Sugito, said Friday that the "discouraging data show that Indonesia's export- oriented industries were dogged by external factors ... [even as the] domestic political situation improved."

The November trade surplus was lower than the market's average consensus of $2.6 billion.

The bureau said exports fell to $4.4 billion in November from $4.59 billion in October, but was up from $3.87 billion a year ago. Exports were below market expectations of $4.6 billion.

Imports edged up to $2.05 billion from $2.04 billion in October, but fell from $2.36 billion a year ago. Imports were slightly lower than the market's expectation of $2.06 billion.

Sugito said Indonesia's non-oil and gas exports fell to $3.41 billion from $3.54 billion in October. Oil and gas exports declined to $987.7 million from $1.05 billion.

He added non-oil and gas imports rose to $1.71 billion from $1.66 billion in October, as the rupiah's exchange rate stabilized against the dollar.

Oil-and gas imports, however, fell to $342.4 million from $379.3 million in October on a decrease in imports. He said that rising international oil prices discouraged domestic fuel consumption.

CPI still leaves room for rate fall

I Made Sentana, Jakarta -- Indonesia's inflation rate of 2.01% in December was higher than analyst expectations of a 1.62% rate.

However, the December figure isn't raising concerns that price growth will get out of hand again next year like in 1998 when it soared as high as 77.63%.

The higher-than-expected December CPI figure didn't raise concerns that the current downtrend in interest rates will reverse direction in 2000.

Interest rate declines, however, are expected to slow next year as it's seen close to bottoming out, economists said. The benchmark interest rate of Bank Indonesia's one-month notes is currently at 12.19%.

Bank Indonesia Governor Sjahril Sabirin earlier this week told Dow Jones Newswires that he still saw room for interest rate to fall from the current level if 1999 inflation holds below 3%. "But, I don't think it [one-month interest rate] will fall below 10% next year," he added.

Higher-than-expected inflation in December signaled an improvement in Indonesia's consumer demand. The chairman of the Indonesian Central Bureau of Statistics Sugito said Friday that inflation in December was driven by demand instead of decreasing supply of goods and services.

The inflation rate was led by an increase in the price of foodstuffs -- up 3.98% in December from November -- due to Christmas festivities as well as because the Ramadhan fasting month fell early this month, Sugito said.

December's figure marks the third month of inflation following seven consecutive months of price declines, during which analysts raised fears about the economy being stuck in a deflationary trap.

Looking ahead, economists, however, agreed that it will be hard for the government to maintain an inflation rate of 3% again next year as the government plans to increase domestic fuel prices, electricity prices and civil servant salaries after April.

The government has also said it's seeking to increase domestic fuel prices by an average of 20% next year, and electricity costs by 35%. It, however, hasn't indicated by how much it will raise civil servant salaries.

Finance Minister Bambang Sudibyo said recently the government was determining the degree to which it can raise fuel and electricity prices along with civil servant salaries while keeping inflation at bay.

The government has said it's looking to keep inflation below 5% next year. But economists doubt the government can achieve that target.

Even Sugito said Friday he saw the inflation rate moving higher to between 6% and 9% next year. "The inflation rate will be at least 6% next year," Sugito said. "It could even reach 9%."

Economy to grow by up to 4 percent

Jakarta -- Indonesia's economy is predicted to grow by between three and four percent in 2000 in a new expansion phase following two years of political, economic and financial turmoil, an official said Friday.

"Economic growth will reach three to four percent in the year 2000," said the head of the Central Bureau of Statistics (BPS), Suwito Sugito.

He said the estimate was based on the fact that Indonesia's exports and imports "have begun to grow again." "Indonesia's real economic sectors are also growing," Sugito told journalists.

Sugito said the positive response to the new government of President Abdurrahman Wahid also supported the forecast.

However analysts said that a number of domestic problems -- especially violence in restive Maluku and Aceh provinces -- might hamper Wahid's government from reaching the growth target.

Indonesia's economy contracted by nearly 14 percent in 1998 at the peak of the financial crisis that first hit in mid-1997. Authorities have projected a GDP result for 1999 of between a one percent contraction and one percent growth.