• Oil companies reassured on Timor Gap treaty talks - Reuters
• Security a priority, and neighbours play key role - Sydney Morning Herald
• Strapped for funds, wheels of justice grind slowly - Sydney Morning Herald

• No negotiations with Suharto family: attorney general - Agence France-Presse
• August session the breakpoint - Straits Times
• Forcing Gus Dur to shape up or ship out - Straits Times
• Amien accused of plot to topple Gus Dur - Straits Times
• Soeharto followers 'destabilising country' - Sydney Morning Herald
• Wahid must show direction or risk impeachment: advisor - Agence France-Presse
• Our enemies in Jakarta are telling tales - Sydney Morning Hearald
• Brunei Sultan gets sucked into Bulogate - Business Times
• Central bank under the spotlight over past deals - Agence France-Presse
• Axis to be launched - Jakarta Post

• Eight killed in latest Ambon clashes - Straits Times
• Two police, 12 students hurt in clash in Kalimantan - Associated Press
• Weapons smuggling to Poso linked to armed forces - Detikworld
• Plea for help as bloodshed racks town - South China Morning Post
• More people killed in Ambon clash - Jakarta Post

• Governor of Aceh sacked as students protest - Agence France-Presse
• Two named as suspects over separatist congress - Indonesian Observer
• TNI chief warns foreigners against meddling in Papua - Indonesian Observer
• Papuan presidium to meet with Wahid over congress - Jakarta Post
• Militias stalk West Papua - Asiaweek
• West Papua shaping as Howard's next East Timor - Australian Financial Review
• Violence continues despite ceasefire - South China Morning Post
• Team established to probe rights violations in Irian - Jakarta Post

• Labour unrest mars economic outlook - Business Times

• No proof of massacre at Tanjung Priok: Komnas HAM - Jakarta Post
• No one can be above the law in Indonesia - Business Times

• Governor queries FPI raids on nightspots - Jakarta Post
• President, attorney general win `Soeharto awards' - Jakarta Post
• Military police feared likely to stall July 27 probe - Jakarta Post
• Plan to deploy snipers in Jakarta denied - Straits Times
• Traditional miners terrorised - Detikworld
• Police to question Rudini, Mahadi over scam - Jakarta Post
• Eight arrested in plantation fray - Jakarta Post

• Second major shuffle for a weakened military - South China Morning Post
• Divided military holds key to Jakarta stability - Sydney Morning Hearald
• Military grows impatient with Wahid - Stratfor

• Central bank eases regulation to allow more lending - Agence France-Presse
• Jakarta `needs to tackle graft to keep aid coming' - Straits Times
• State power firm seeks 25 percent tariff hike - Agence France-Presse
• Strong chance of stock rebound after MPR session - Business Times

Budiman Sudjatmiko: the quiet revolutionary

Michael Vatikiotis, Jakarta -- In Indonesia, one needn't look far to find a fertile breeding ground for left-wing sympathies: Farmers protesting over the price of rice, workers seizing their factories, students marching daily against corruption. In this atmosphere of instability, the tiny People's Democratic Party, or PRD -- with only 2,000 members, apparently little more than a faint blip on the Indonesian political landscape -- is thriving by helping to organize protests nationwide.

Talking recently at the party's modest Jakarta headquarters, PRD founder and leader Budiman Soedjatmiko quietly predicts that student protests planned for that afternoon outside the house of former President Suharto will result in a violent clash with the security forces. It's a prediction made with an insider's confidence: The PRD has supported the organizing student body's endorsement of violence, his party aides say. Later that day hundreds of students do indeed battle with security forces, and dozens are injured.

Still, Budiman makes it clear that activists are not the root of civil unrest in Indonesia today. "The reform movement failed to achieve its primary target -- to abolish the system and machinery of Suharto's New Order," he says. "That's why the political situation is still unstable."

But where there is mass action, says Budiman, the PRD will take part. "We are actively involved in mobilizing the workers." A party newspaper chronicles party involvement in labour disputes throughout the country. Members are concentrated in Central Java and North Sumatra.

This is not the first time Budiman and the PRD have helped shape Indonesian politics. By siding with Megawati Sukarnoputri's Indonesian Democratic Party of Struggle, or PDI-P, the party's young activists helped bring protesters onto the streets and popularize Megawati's image as a symbol of reform. She went on to win the highest number of votes in the elections a year ago.

While the PDI-P boasts no ideology, the PRD is an avowedly left- wing party with a published manifesto that espouses "democratic socialist" principles. Budiman speaks with deep conviction about the inevitability of labour unrest and a popular backlash to growth -- if growth is based primarily on market principles and regulated by the International Monetary Fund. To support his argument he cites political trends in Latin America, where he says liberal democratic governments have faced a popular backlash and "people have reacted and moved towards centre-left, populist parties."

Whether or not his argument is convincing, he makes sure it is heard. In mid-May he met Jakarta's IMF representative to protest at the fund's support for the government's removal of food and transport subsidies. The fact that Budiman was received at all indicates he is taken seriously.

Budiman is confident that his party's role in Indonesian politics will grow. And in a country where most political leaders don't hit their stride until their 40s, the 30-year-old is not in a hurry. If he is right, continued economic hardship will breed popular dissatisfaction with what he calls President Abdurrahman Wahid's neo-liberal capitalist approach to development, and the PRD or another grassroots organization may become a crucible for popular political action.

"In the near future we will succeed in spreading acceptance and understanding of what it means to be Left," Budiman says, referring to what he says is the precondition for the PRD to become a full-fledged mass party. "Not now, not this year; in the next 10 years, maybe."

Images of Che Guevara and Fidel Castro

Budiman cultivates a revolutionary image. For an interview he wears a clean white T-shirt bearing the image of Bolivian revolutionary Che Guevara; he sits beneath a portrait of Fidel Castro. Growing up in his grandfather's house outside the West Java town of Cilacap, he felt "close to the farmers," he says. In fact, his grandfather was a village headman and local government official, while his father was an assistant factory manager for the American tyre company Goodyear.

Nevertheless, Budiman knows repression. He has been in and out of military custody from the time he began organizing student demonstrations in the late 1980s. He relates the fact with pride, referring to the legendary Indonesian communist leader Tan Malaka, who wrote in 1947: "Whoever wants freedom, must be prepared to go to jail."

Budiman established the PRD in 1994 with a founding membership of 170. "It was the first political organization that declared open opposition to Suharto's New Order," he boasts. The party joined with the labour and student organizations that launched the first protests in the campaign to bring Suharto down.

Despite its popular message, the PRD had some trouble gathering broad support -- its militant approach worried some middle-class intellectuals who opposed the Suharto regime, but wanted to see a peaceful transfer of power. By 1995, Budiman and his colleagues realized that working outside the established framework of politics was not getting them very far. So they hooked up with Megawati's PDI-P -- and that got them into trouble. Budiman and most of the PRD leadership were jailed for helping to organize public protests against the government's rejection of Megawati's party leadership in July 1996.

Once in prison, Budiman worked hard to keep the party together. When anti-Suharto protests began in earnest after May 1998, the PRD was deeply involved in student organizations like Forum Kota, which spearheaded many of the demonstrations. The security forces cracked down on the PRD again. Ten of the party's top cadres disappeared, and were held in underground cells at the Special Forces headquarters outside Jakarta. Six have been returned; three are still missing. Of the 10th, Budiman says: "We found one of them, stabbed to death and tossed in the jungle." Despite the crackdown, the PRD survived. Budiman was offered a government amnesty but refused to accept it, demanding to be declared innocent. From his cell in Jakarta's Cipinang prison he ran a campaign for PRD candidates in last year's parliamentary elections.

The party didn't come in last, but won a paltry 80,000 votes -- in polls at which 90 million people voted for 48 parties. For Budiman, taking part in the election was never about winning votes. "It was an opportunity to use the publicity to make people aware of our party," he says.

The young leader was finally cleared of all charges and released in December. The three-year jail term doesn't seem to have made much of a mark on him, nor has it made him afraid of speaking his mind. He calmly predicts continuing political turmoil. "Gus Dur is the best among the worst," he says, using President Wahid's nickname. Budiman foresees a growing political effort to oust Wahid which, if successful, would bring conservative political forces and the army back to power.

"The army can come back because there is no change to their doctrine, no change in their political status," he says. "We will have to force them out of power."
 

East Timor

Oil companies reassured on Timor Gap treaty talks

Sonali Paul, Melbourne -- Australian, East Timorese and United Nations officials have told oil companies renegotiation of the Timor Gap Treaty would not hurt their oil and gas plans, a Phillips Petroleum Co executive said on Thursday.

Talks to revise the 1989 treaty, governing the existing Elang, Kakatua and Kakatua North oil fields and future output from the large Bayu-Undan project, began on Thursday in Canberra with East Timor seeking a larger share of production royalties.

Companies led by operator Phillips have invested hundreds of millions of dollars in the Timor Gap and are counting on the terms of the treaty to stay the same or at least not hurt the economics of their development projects.

Phillips Darwin area manager Jim Godlove said companies had made clear to Australian, East Timorese and United Nations officials it was essential to keep a legal and administrative regime in place and make sure the tax, cost recovery and production sharing terms for the companies were not worsened.

"A fiscal regime equivalent to the one that we're operating under right now -- no more onerous -- must remain in place," Godlove told Reuters. "We have been assured by all parties that those fundamental factors are a part of this renegotiation effort," he said.

Timorese seek bigger share

Australia's Foreign Affairs and Attorney-General's offices declined to say what terms were under review in the treaty, signed in 1989 by Australia and Indonesia to split petroleum royalties 50-50 from the Zone of Cooperation in the Timor Sea.

The UN Transitional Administration in East Timor, preparing the Timorese for independence in the next two years, took over Indonesia's obligations under the treaty last February.

East Timorese political leader Jose Ramos-Horta said last month the treaty should be revised to give an independent East Timor 90 percent of the petroleum royalty revenue, but sources said Australia is baulking at that prospect.

"All parties are fully aware of the importance of maintaining stability in the Timor Gap treaty arrangements in order to maintain confidence and to continue to provide a framework for the joint development of the substantial petroleum resources in the area," said a spokeswoman for Australian Attorney-General Daryl Williams.

The oil companies in the area, which include Petroz NL. Santos Ltd, Inpex Sahul Ltd, Kerr McGee Corp and British-Borneo Oil & Gas Plc, are not concerned about the royalty revenue split, as long as the tax rate is not raised.

"As long as it's done properly it should remain business as usual for the contractors," Godlove said. "I think so far the UN, the Timorese and Australia have all been very responsible about how they've gone forward with this," he said.

It was not clear how long the treaty renegotiation would take, but the aim is expected to complete it before East Timor becomes independent by mid-2002.

Oil production from the US$1.4 billion first stage of the Bayu- Undan development is expected to begin in late 2003, with the first fabrication contracts for the project due to be awarded soon.

Security a priority, and neighbours play key role

Mark Dodd -- East Timor, a rugged and mountainous half-island territory just 300 nautical miles off Australia's north-west coast, has long played a strategic role in Australia's defence planning.

January 1942: Australian commandos based in Portuguese East Timor are fighting a brutal guerilla insurgency against a Japanese invasion force. The Australians are ably assisted by friendly Tetum and Mambai chiefs in the fight to contain Japan's southward march.

But the Japanese land reinforcements late in 1942 and the commandos are evacuated, leaving the native allies to their fate. Up to 50,000 Timorese die as a consequence but Tojo's hordes stay on the other side of the Timor Sea and Australians breathe a little easier.

Fast forward to 1975. Faced with domestic problems, Portugal, the occupier of East Timor for about 400 years, suddenly decides to leave its poorest possession, creating a power vacuum that paves the way for an Indonesian invasion the same year.

But Jakarta's dreams of a 27th province founder and after last year's vote for independence, East Timor's rulers are booted out after 24 years of "adverse possession". Before leaving, they ransack and torch the capital and most of the main towns.

Moral outrage by Australians against last year's violence in East Timor was the principal motivation in getting a reluctant Prime Minister John Howard to send in an Australian-led peacekeeping force.

Relations with Indonesia plunged to their lowest level since the 1960s confrontation, but at least Interfet (the International Force in East Timor) was proof that morality and diplomacy are not always incompatible bedfellows as far as East Timor is concerned.

With the Indonesians gone, how important is East Timor to Australian strategic thinking? From a military and security viewpoint, the answer is not very important at all. However, a stable and democratic independent East Timor could depend on generous support from Canberra. But if East Timor erupts into civil war or goes down the same road as Fiji and the Solomons, there is zero prospect of another Interfet or Australian peacekeeping force landing to restore order. It is up to the East Timorese to keep their own house in order.

The independence leader and Nobel Peace Prize laureate Mr Jose Ramos Horta, East Timor's spokesman on international affairs, has spelt out his vision of future relations with Australia. Unsurprisingly, security issues are a major concern. He would welcome Australian assistance in training a maritime patrol force to safeguard East Timor's vulnerable sea border.

Police and Customs training are two other areas. He did not mention it publicly, but he would also welcome Australian military training. The Australian Defence Force is highly respected in East Timor for the role played in Interfet and their continuing United Nations-mandated garrison duty along the volatile border with Indonesia.

It is a touchy subject. Jakarta's generals would not take kindly to the sight of Australian Army trainers suddenly arriving in Dili. Canberra would also need to be reassured that the armed independence fighters known by their Portugese acronym, Falintil, remain strictly non-aligned and above party politics.

Assurances from East Timorese independence leaders have been vague on this important issue. Falintil has historically been the armed wing of the biggest independence party, Fretilin, but the independence movement grouped under the aegis of the National Council of Timorese Resistance is anything but unified.

The violence last September and more recent turmoil in the South Pacific has convinced the East Timorese of the need for a small, highly-trained defence force. Canada and Britain have indicated they may be able to assist with training.

However, East Timor's best prospects of security probably lie in close and open relations with its neighbours, a fact recognised by Mr Horta. "Equally or more important than an army, we must develop the closest possible relations with countries in the region, Indonesia included, so no-one feels threatened or uncomfortable," he said.

Strapped for funds, wheels of justice grind slowly

Mark Dodd, Dili -- Do not expect shiny stainless steel tables or a laboratory filled with gleaming new equipment at the United Nations' forensic examination centre in Dili.

When the only forensic pathologist working in East Timor, Dr Raquel Del Rosario Fortun, received a recent batch of human remains for examination, she was forced to use gutter water to clean putrefying flesh from the bones because the laboratory plumbing system was in such disrepair.

In March, when a container of urgently needed equipment arrived in Dili port for the UN-run Dili District Court, UN staff refused to unload or deliver the cargo. In frustration, East Timorese judges drove to the wharf and unpacked it themselves.

In Dili, the Catholic relief agency Caritas provides ill-equipped UN police investigators with video cameras and film, while the UN's head of human rights has had to spend more than $A1,700 of her own money to provide tools and film for war crimes investigators.

This is all a far cry from the promise made by the UN Secretary- General, Mr Kofi Annan, when he visited East Timor earlier this year, that the UN Transitional Administration in East Timor (UNTAET) would take the lead role in criminal investigations into last year's militia violence.

The long wait for trials has forced UNTAET to introduce legislation to allow the continued detention of prisoners after a deadline for their release loomed under the Indonesian criminal code still in force.

East Timorese victims of last year's violence were getting impatient for results, but the earliest date for a militia trial in Dili was August, UN sources said.

There is an added urgency for the trials. Jakarta's investigation into those responsible for last year's bloodshed is running out of steam.

The evidence collected so far by investigators for the Indonesian Attorney-General, Mr Marzuki Darusman, looks too thin to convict and there are serious concerns about loopholes in Indonesia's criminal legislation.

Diplomatic sources say Mr Darusman has been leaning on UNTAET to provide evidence to bolster his case against the Indonesian generals behind the militia violence.

UNTAET's deputy head of legal affairs, Mr Hansj_rg Strohmeyer, said last month that it was important not to rush to trial but to get East Timor's courts and legislation properly organised. "We can only start trials once we have democratic procedures in place. We have to be careful not to give in to pressure," said Mr Strohmeyer, who has since left Dili and returned to UN headquarters in New York.

When Indonesian soldiers and their militia lackeys rampaged through Dili, they destroyed most government buildings, including the courts. "You cannot pretend to have a functioning legal system when the entire legal structure on the logistical side is in ashes," Mr Strohmeyer said.

Funding for the East Timor judiciary and its investigative arm appears to be bogged down in the quagmire of UN bureaucracy. While Civilian Police beg for charity from aid agencies and Dr Fortun has to heave body bags of human remains onto makeshift tables at Dili morgue, her colleagues at Dili District Court are faring only marginally better.

The Dili District Court's president, Mr Domingos Sarmento, complained of a lack of transport for investigating judges to travel into the highlands to gather war crimes evidence, and of a shortage of tape recording equipment and video cameras for taking evidence. Before the court's only photocopier arrived a fortnight ago, staff had to walk to a nearby car hire firm to copy confidential court documents.

Last week UNTAET passed landmark legislation allowing for former pro-Jakarta militia held in East Timor jails to face charges of crimes against humanity. About 43 people are liable to be charged with war crimes, including murder or multiple murder, linked to last year's violence.

Diplomats say a fair trial would be seen as sending a strong message to Indonesia about the UN's seriousness in investigating those responsible for last year's mayhem, in which up to 1,500 independence supporters were killed and property worth tens of millions of dollars was destroyed. But East Timor's senior judge is sceptical about Indonesian justice.

"We East Timorese have 24 years' experience of the Indonesian courts -- they are neither impartial or independent," Mr Sarmento said. East Timor's judges are determined that their judiciary shall be independent, although none has any court experience.

However, in recent weeks there has been increasing concern about the susceptibility of the East Timorese courts to pressure from pro-independence hardliners. Legal sources said Mr Longuinhos Monteiro, the Dili court's vice-president and an investigating judge, had been told in no uncertain terms to back off from any investigations involving Falintil independence fighters.
 

Government/politics

No negotiations with Suharto family: attorney general

Jakarta -- In an apparent about face, Indonesia's top prosecutor said there had been contact but no negotiations between the family of former president Suharto and the government over a possible hand-over of any ill-gotten wealth, newspapers reported Saturday.

"There are no negotiations. Who said there are negotiations?" Attorney General Marzuki Darusman was quoted by the Republika daily as saying. "There's no compromise between the government, in this case the attorney general's office ... and Cendana." Cendana is the street address commonly used to refer to the Suharto family.

Darusman's comments came after both Suharto's lawyers and the named government go-between, Mines and Energy Minister Bambang Yudhoyono, denied that any such talks were under way.

The attorney general also said his office's investigations into Suharto's alleged corruption and power abuse during his 32 years in power were continuing.

He conceded however that there had been some kind of a "contact" between the government and the Suharto family, but said it did not amount to negotiations.

"Stay away from the word negotiation. This implies commercialization of the law," said Darusman, who has pledged to bring Suharto to court before August In a surprise announcement on Wednesday, Darusman himself said talks were underway between the government and the Suharto family over a possible handover of Suharto's alleged billions.

He said Yudhoyono -- like Suharto a former general -- had held several conversations in the past weeks with Suharto's eldest daughter Siti Hardiyanti Rukmana over the issue.

The statement followed a remark by President Abdurrahman Wahid in New York on Tuesday that the former president's family wanted a government pledge of immunity from prosecution in exchange for the handover.

Wahid, speaking to the Indonesian community in Pakistan on Friday, said Yudhoyono had been chosen because he was considered to be "a good negotiator."

Suharto's chief lawyer Juan Felix Tampubolon has denied knowledge of any such negotiations between the Suharto children, all of them wealthy entrepreneurs, and the government.

Darusman reopened the investigation into Suharto, who is suspected of massive corruption during his decades in power, after an earlier probe was halted by the previous government last year.

Suharto, 79, has been under house arrest since May 29 and is barred from leaving the country, in moves prosecutors said were aimed at facilitating his questioning.

His lawyers and doctors have argued that he is unfit for questioning on the corruption charges because of loss of memory and speech problems. They have also said he might have suffered brain damage as a result of the stroke. But until now state prosecutors have insisted on questioning Suharto every Monday in the presence of a government-appointed team of doctors.

The former strongman has been hospitalized twice, once for a mild stroke and once for intestinal bleeding, since he stepped down amid massive student protests and an economic crisis in May 1998. On Saturday the former autocrat underwent a brain scan at a Jakarta hospital, his lawyer Tampubolon said.

"It was an additional check-up prior to a comprehensive examination. It wasn't long, only 45 minutes to one hour," he told AFP. Tampubulon said the scan was the only test carried out at the Harapan Kita cardiac hospital in West Jakarta.

August session the breakpoint

Susan Sim -- The People's Consultative Assembly session in August will be a breakpoint for the major political parties, who will also have to work out an inter-party relationship based on some national platform.

"We need to conceptualise the new politics," Golkar deputy chief Marzuki Darusman told The Straits Times. "We just can't continue with this bandwagon process where everybody is on board."

But because there is a sort of elite aversion to radical change, equating that with mass violence, Gus Dur's government would probably be allowed to limp on till 2004 "with the rest of us holding things together".

How long though are the disgruntled prepared to wait? The savvy politicians like Mr Arifin are probably hoping to rev up the "Impeach Gus Dur" momentum by talking up a bandwagon effect.

The President on his part is hoping to give himself a fillip by getting some of the fabled Suharto billions back. Success on that score, however remote, could go far in reinstating his battered image as the resistance hero who battled Mr Suharto to his knees and gave his money back to the people. Otherwise, the likelihood is that more will start believing he has succumbed to the syndrome of "Petruk dadi ratu" -- the peasant becomes king -- and is out only to gorge on the riches of state.

Forcing Gus Dur to shape up or ship out

Susan Sim, Jakarta -- Mr Djohan Effendi's first thought when his long-time pal asked him to be his third State Secretary in eight months was instant despair.

"What sins have I committed to deserve this?" the Islamic scholar asked President Abdurrahman Wahid, who promptly burst into laughter.

Recalling the moment in a recent interview with The Straits Times, the former director of religious research was not being merely self-effacing.

Barely three weeks into what used to be the most powerful Cabinet job, he was well aware that the administration is popularly perceived to be ineffective and incapable of meeting the high public expectations for change.

Indeed in recent weeks, the opinion-moulders here have gone beyond rebuking their carefree president for creating more problems than he is solving, to engaging in an activity that would in the recent past have been considered seditious jailbait: plotting the removal of the head of state.

In his absence, the knives here continue to be sharpened. A few senior officials of Vice-President Megawati Soekarnoputri's party -- the Indonesian Democratic Party (PDI-P) -- even took the unusual step of briefing the foreign media on Friday of two "scenarios" being hatched to force the President to shape up or ship out.

Legislators had suddenly woken up to the "possibility of a change of government" in recent days as "evidence mounted against the President", the PDI-P's parliamentary whips, faction chief Arifin Panigoro and secretary Heri Akhmadi, claimed.

Still they were careful to assert that Ms Megawati, who effectively controls the largest blocs in Parliament and the People's Consultative Assembly (MPR), was not considering a putsch, just "ready to be President if the position is open".

But she had authorised her whips to hold inter-party talks on the possible options and, maybe, put together a majority coalition for a new government, they said.

Scenario 1 is not preferred, but has to be considered: If Gus Dur will not restructure his Cabinet and share powers with his Vice- President before or soon after the August MPR session, then he might have to be impeached at some point unless there is dramatic improvement in the economy or some other minor miracle happens.

Scenario 2 has face-saving tokens and in better taste: The President should be persuaded to step down on health grounds. Why would Gus Dur, whom even friends like Mr Djohan long ago gave up any thought of trying to influence, agree to either options?

"Because throughout history, our presidents have always known when to go, when not to push too far," said the PDI-P's Heri Akhmadi, noting that Mr Abdurrahman's three predecessors promptly stepped aside when faced with overwhelming opposition.

But there remains a high element of wishful thinking, and fear- induced restraint, in all the plotting. And certainly no critical mass yet for a political tsunami that can engulf the fanaticism of millions of the president's personal followers.

"Arifin's just trying out his lines of action," Golkar deputy chief Marzuki Darusman, who is also Attorney-General, said of the PDI-P whip's scenarios. "Nothing is real as far as Golkar is concerned."

No party is confident of summoning adequate support if it initiated a no-confidence vote against Gus Dur in the MPR. Any winning coalition that also hopes to govern will have to include both the PDI-P and Golkar and at least one of the two Islamic parties controlled by Gus Dur's NU followers -- the Nation Awakening Party (PKB) he founded and has a firm grip over, or the United Development Party (PPP), the third largest party in parliament.

With Gus Dur's benefit of incumbency and amazing ability to cobble together the most unusual coalitions, any vote is likely to be very close. Mr Marzuki for one reckons the current odds are in favour of the President, albeit by a whisker.

Ms Megawati is perhaps still the only magnetic vote-getter who can, with Golkar chief and Parliament Speaker Akbar Tanjung behind her smoothing out the deals, lead the charge of the righteous against Gus Dur.

But nobody here is holding his or her breath that she will soon initiate a move of such historical magnitude, and suffer too the odium of personal betrayal. "She knows she's just not ready to be president yet," said a senior government official who recently declined to be part of a team of experienced advisers she is assembling to guide her.

Cabinet ministers say she is already chairing their weekly meetings, with Gus Dur nodding off after opening remarks. But while she is more assertive, the meetings are no more than discussion sessions since "nothing of substance" comes out; decisions are still made by Gus Dur and the relevant ministers. So at most the realists here hope what will happen come August is a sort of break-point, where some symbolic message is sent that Gus Dur's "interactive" way of governance has to change for a more policy-driven one, even if it means he and he alone chooses Cabinet ministers on merit and does not dole the posts out as party spoils.

Amien accused of plot to topple Gus Dur

Jakarta -- The prominent Speaker of the People's Consultative Assembly (MPR) has been accused of being among those who are conspiring to topple President Abdurrahman Wahid.

Noted cleric of the Nahdlatul Ulama (NU) Said Agil Siradj has alleged that both Speaker of the MPR Amien Rais and legislator of Golkar Party Slamet Effendi Yusuf are conspiring to topple Mr Abdurrahman, Indonesian Observer reported yesterday.

Speaking at the Central Java town of Sukoharjo, Said Agil told NU gathering that Dr Amien, who was chairman of the National Mandate Party, had held a number of meetings both in Indonesia and abroad to try to pave the way for him to become president. "It is actually a secret, but I can no longer tolerate it because they want to rock the country. NU people in East Java have sharpened their machetes," said Said Agil, who is a close friend of Mr Abdurrahman, better known as Gus Dur.

He also accused Dr Amien of using the President's health to his own advantage by agreeing to the establishment of an independent health team which would observe Mr Abdurrahman's health closely up to the end of his presidential term.

"It is the wish of Pak Amien when he established the Central Axis. He persuaded Wahid to become the President. I am very sure that Amien has an ambition to become president," Said Agil was quoted by Detik.Com as saying.

Soeharto followers 'destabilising country'

Lindsay Murdoch, Jakarta -- The Defence Minister, Mr Juwono Sudarsono, says there is a plot to destabilise Indonesia ahead of an August session of parliament at which some MPs are expected to challenge the presidency of Mr Abdurrahman Wahid.

Mr Juwono said groups linked to former president Soeharto had sent men "everywhere" to incite riots in the lead-up to the annual meeting of the People's Consultative Assembly (MPR), the country's highest parliament.

Speaking in Jakarta, Mr Juwono said he believed the campaign of destabilisation was intended to pressure the Government over investigations by the Attorney-General into allegations of corruption by Mr Soeharto during his 32 years in power.

"This is a fact, that most riots are connected with the investigation process concerning ... [Soeharto] or some other cases," he said. When in power Soeharto often used the youth wing of his party, Golkar, to incite riots or attack political opponents.

People close to Mr Wahid, the country's first democratically elected president, have been privately warning for months that Soeharto family and cronies have access to hundreds of millions of dollars that they could use for attempts to destabilise the country.

The Attorney-General, Mr Marzuki Darusman, has said that Soeharto, 79, will be presented with charges by mid-August, about the same time as the MPR is to be convened. Prosecutors are also pursuing scores of allegations of corruption against Soeharto's six children and his cronies.

Some of Mr Wahid's political rivals, including conservative Muslim leaders, want the MPR to pass a vote of no confidence in his leadership, which has failed to revive the economy and has been embroiled in a corruption scandal involving the state food distribution agency, Bulog.

Fears of a destabilisation campaign have intensified following recent violence in Central Sulawesi, where 123 people have been killed and hundreds wounded. Violence continues unabated in the 1,000-island Ambon chain, where Muslim fighters have arrived from other areas to reinforce attacks on Christians. Bloody separatist violence also continues in Aceh province, despite a truce between separatist rebels and Jakarta.

The head of the armed forces, Admiral Widodo, warned on Tuesday that anarchic and destructive acts were on the rise. "The people's dynamism is marked by unrest ... anarchic and destructive actions continue to emerge," he said.

Admiral Widodo said there was no common vision on how to rebuild the nation, and signalled tougher action against separatist movements in Aceh and Papua.

Admiral Widodo said Jakarta's tolerance of Papua's independence movement had been abused. The Government funded a landmark congress on the future of the resource-rich province early this month at which almost 3,000 delegates demanded independence from Jakarta.

Despite Mr Wahid's promise before the congress that Papuan leaders were free to express their political aspirations, two independence leaders have been questioned this week and named as suspects in a police investigation into the separatist movement in the province.

The Indonesian Observer reported that Mr Theys Eluay, the congress chairman, and its secretary-general, Mr Thaha al-Hamid, face treason charges. Fomenting separatism can carry a sentence of life in jail.

Wahid must show direction or risk impeachment: advisor

Jakarta -- Indonesian President Abdurrahman Wahid must show at least some direction in tackling the country's economic and political woes or face the risk of an impeachment move in August, his economic advisor said Tuesday.

Emil Salim, chairman of the National Economic Council, told a business luncheon here that pressure would mount up against Wahid in the run-up to the People's Consultative Assembly (MPR) annual convention in August.

"Things will be tough but not hopeless, because I think the leadership is pressured to solve these problems," said Salim, a respected Suharto-era economist and minister.

"If by August, President Gus Dur [Wahid's popular name] cannot report to the MPR that there has been some improvement, he will be in trouble," Salim said.

Although all indicators suggested that Indonesia's economy was now on the road to recovery, Salim said the rupiah had fallen because of political issues, including what he called the "unnecessary" sacking of two ministers.

He said Wahid, who is now overseas, must take action on five major problems -- ensuring an independent police force, separatism, his own bottom-up style of decision-making, an inexperienced economic team, and problems in the banking sector.

"This August is the test case as to whether Gus Dur will remain or be impeached. He will [have to] fight for his survival," Salim said referring to rumbles by some political party factions that they may call for impeachment.

Though the calls have been muted in the past two weeks, with analysts saying factions would have to show that the president actually broke the law for them to go as far as try for impeachment, a thumbs up from the MPR is considered crucial for Wahid. The MPR elected Wahid as president in October 1999.

Salim suggested that Wahid must at least set out a roadmap to show "in what direction these issues are going to be settled," adding he was burdened with a bureaucracy so unaccustomed to bottom-up democratic government they "had to be reminded" they were the government.

The economist also called on the business community to watch for "positive results" of Jakarta's current talks with the International Monetary Fund -- despite the fact that poor investor confidence could still overshadow the meeting.

Our enemies in Jakarta are telling tales

Lindsay Murdoch, Jakarta -- Key Indonesian agencies are working hard behind the scenes to sabotage attempts to improve relations between Australia and Indonesia.

The anti-Australian sentiment is being fuelled by the invention of Australian transgressions, such as the alleged support for a landmark conference early this month that demanded independence for the Indonesia's far eastern province, Papua.

Australian officials in Jakarta have repeatedly told the Indonesian Government that no Australian non-government organisations attended the conference or operated in the province, formerly called Irian Jaya.

Categorical statements by the Prime Minister, Mr Howard, and Foreign Minister, Mr Downer, that Australia will always support Indonesia's rule of Papua, are ignored. The misinformation campaign has created a widely held belief in Jakarta that Australians are meddling to try to win Papua's independence.

The truth is that Australian activists were refused Indonesian visas to attend the week-long conference in the provincial capital, Jayapura. Despite claims to the contrary, the only Australians present at the conference were journalists.

But the campaign is working. Anti-Australian demonstrations have started again outside our embassy, where protesters routinely burn the Australian flag.

An on-again-off-again visit by Indonesia's President, Mr Abdurrahman Wahid, to Australia is again in doubt. The Indonesian Parliament's Foreign Affairs Committee is demanding he put off the trip until Mr Howard visits Indonesia first.

No Indonesian president has visited Australia since 1975. Shortly before meeting Mr Howard in Tokyo last week Mr Wahid said that "many people in Indonesia now object to my visit because there are Australians who have aided the creation of independence for Papuan people".

Indonesia's Foreign Minister, Mr Alwi Shihab, one of Mr Wahid's closest advisers, was the first to claim that several unnamed Australian non-government organisations were interfering in Papua.

He provided no evidence and did not retract the statement despite Australian assurances. Mr Shihab has made clear in public statements he does not see improving relations with Australia as an immediate priority for his country.

He appears to be among a powerful group in Jakarta that still resents what Australia did last year to stop Indonesian-sponsored bloodshed and destruction in East Timor.

The chairman of the Foreign Affairs Committee, Mr Yasril Ananta Baharuddin, places no significance on the meeting between Mr Howard and Mr Wahid in Tokyo, despite it being portrayed by both as a positive first step in building a relationship between them. "Howard should come to Indonesia first," Mr Yasril was quoted as saying by the Media Indonesia newspaper.

Despite the anti-Australian propaganda, Mr Wahid continues to speak positively about his country's future relations with Australia and says he still wants to make the visit, possibly in late July. The trouble for Australia is that nobody else in Jakarta is publicly supporting him.

Brunei Sultan gets sucked into Bulogate

The attorney-general says the Indonesian president is above board. But the case of the presidential masseur, and 35 billion rupiah (S$7 million) of pension funds that have gone missing with him, has taken a life of its own.

This week, Bulogate, as the scandal is dubbed, took a strange turn when the focus shifted to a US$2 million donation, meant as aid to Aceh, from the Sultan of Brunei to President Abdurrahman Wahid.

A groundswell is building up, clamouring for the president to explain alleged "unethical practices" surrounding the donation -- ironically while he is away in the United States seeking assistance to fight corruption.

Gus Dur raised eyebrows recently when he said that the donations from the Sultan were personal to him, ostensibly to explain why the money was left to a personal friend to manage. Legislators agree that it is not against the law for the president to accept donations or gifts, but they, as well as anti-corruption watchers, think many questions need to be answered.

Such as: Why was the donation treated as personal when it was meant for Aceh? Why was the fund not kept in state coffers if it was indeed to be channelled as humanitarian aid to Aceh? Protests have begun to emerge in the streets against the president and the Indonesian media yesterday even reported some calls for him to step down.

President Gus Dur, however, remains committed to his overseas trip, and Indonesia watchers, noting his penchant for letting off bombshells from abroad, are wondering what he will do in response. But the turn of events must have put a lot of politicians, especially those close to President Gus Dur, on the defensive.

Muhaimin Iskandar, the secretary-general of the PKB party which Gus Dur helped found, said the president has to account for the way the fund is being handled. The Speaker of Parliament, Akbar Tanjung, said the House would no doubt raise the matter with the president.

"Would the Sultan of Brunei have made such a large donation if Gus Dur had not been the president? We do not think so. Gus Dur has to clarify," Mr Akbar said.

Ironically, too, the case would have not surfaced had Gus Dur not been the first to talk about the Sultan's donations. He did so when explaining why he couldn't have asked Suwondo, his personal masseur, to take out 35 billion worth of workers' funds from Bulog, the state logistics agency.

Since the days of former president Suharto, Bulog has always been a source of "off-budget funding" which the government uses for special purposes outside the yearly state Budget.

When Bulogate first blew up, the scandal led to the resignation of a close friend of the president, who was just appointed as acting state secretary. It also implicated the foreign minister -- another member of the inner circle -- as well as the attorney-general, and was threatening to tar the president himself.

As public attention on the scandal mounted, Gus Dur moved to clear his name by conceding that he had checked the availability of Bulog funds for Aceh. But he made clear that he did not go through with it when advised that a presidential decree would be required. As that would have meant a delay in the assistance, he then turned to the Sultan of Brunei for help, he said.

The way things have turned out has been quite unfortunate for the Sultan of Brunei. For he had just reprimanded his brother for misusing state funds, even bringing him to court, before a settlement was finally reached.

But the Indonesian attorney-general, Marzuki Darusman, has said the outcry over the donations was all much ado about nothing. Contrary to allegations that the Brunei donations had not been properly declared, the AG told BT that the money had actually been reported fully to the minister of finance. The channelling of the funds had also been transparent, he said in a recent interview.

Indeed, President Gus Dur has received several other donations from various sources, such as the Middle East, which he had publicly declared, the AG disclosed.

"These are monies that are accountable, and the uses of these are transparent. They are with the State Revenue Office," Mr Marzuki said. Besides, most of the missing funds from Bulog have been recovered, he added.

But does the recovery of the missing funds mean everything will be forgotten? The whole issue has once again drawn public attention to the role of off-budget spending, which has come under heavy criticism for so long, but with little effect. The International Monetary Fund has targeted off-budget spending as a source of corruption which must be reformed.

Mr Marzuki told BT that a new law is in the offing to put things right. Parliament is now insisting that future transactions and pledges of loans would have to be sanctioned by the House, he said.

President Gus Dur and Foreign Minister Alwi Shihab regard the brouhaha as nothing more than a well-coordinated move by their political enemies to unseat the president from power. But is the issue really that simple?

Central bank under the spotlight over past deals

Jakarta -- Indonesian authorities were Monday investigating past liquidity support for banks given by the central Bank Indonesia while its chairman remains embroiled in the Bank Bali controversy.

The Supreme Audit Board (BPK) is investigating 16 banks that received Bank Indonesia liquidity support and is also looking at Bank Indonesia's role as lender, BPK chairman Billy Judono said after meeting Vice President Megawati Sukarnoputri.

Judono said it would be "strange" if Bank Indonesia officials emerged as being totally guilt-free in the controversy involving 89 trillion rupiah (about 10.3 billion dollars) in liquidity support.

During the currency crisis that started in mid-1997, a government guarantee scheme saw Bank Indonesia provide liquidity support to banks in trouble, he said.

However, the government has since not been able to agree with the central bank over the amount issued in liquidity credits. The government does not recognize the 89 trillion rupiah in support claimed by the central bank to have been issued to the banks.

The government, which has to repay the liquidity credits to Bank Indonesia, does not agree with the central bank's policies and criteria used in dispensing the support, saying that some of the banks were clearly not eligible.

Judono said banks or officials who refuse to cooperate in the investigation may face court because their action could be deemed as an attempt to destroy evidence. "We are still analyzing it [Bank Indonesia's responsibility]. I think it will be strange if Bank Indonesia bears no guilt at all," he said. The People's Representative Council (DPR) has tasked the BPK to investigate the central bank's role in the case.

Meanwhile, Bank Indonesia governor Syahril Sabirin denied he was present at a meeting at a hotel in South Jakarta to discuss the disbursement of Bank Bali interbank claims.

"If I attended the meeting, I should have already resigned as pressured by Gus Dur," Sabirin said, referring to President Abdurrahman Wahid's popular name.

Wahid has said that reports from the attorney general indicated that Sabirin was guilty of involvement in the Bank Bali scandal. He said that he had asked Sabirin to resign but the central bank governor has so far refused to comply.

Speaking to reporters prior to a hearing at a People's Representative Council (DPR)'s commission, Sabirin said "I'm the one who knew for sure whether I was present at the meeting or not. I reiterate that I didn't attend the meeting." Former State Enterprise Minister Tanri Abeng said at a hearing in South Jakarta district court that Sabirin attended the meeting at Mulia Hotel in June 1999 to discuss the disbursement of Bank Bali interbank claims.

Abeng gave evidence as a witness in the trial of Djoko Chandra, the president of PT Era Giat Prima (EGP), a private company linked to the former ruling Golkar party.

Chandra is on trial for his role in transactions between PT Bank Bali and EGP. Last year, Bank Bali paid EGP 546 billion rupiah (about 80 million dollars then) to facilitate the recovery of 904 billion rupiah in interbank claims owed by the government to the bank.

However, the commission should not have been necessary as the interbank loans were guaranteed by Bank Indonesia. The issue also led to allegations that close advisors of former president BJ Habibie were also involved in the scheme and that the proceeds were to be used to finance his re-election campaign.

Axis to be launched

Jakarta -- The "Indonesian Axis" (Poros Indonesia) is set to burst onto the political scene, bringing together a cross section of figures from various political backgrounds who want to improve the state of their respective parties.

However, founders of the Indonesian Axis, who are primarily members of the Indonesian Democratic Party of Struggle (PDI Perjuangan), maintain that their grouping is merely a vehicle to facilitate people's empowerment. They stress that they are not a splinter of their respective parties and remain loyal to them.

The grouping is due to be officially launched on Monday evening with PDI Perjuangan's Eros Jarot as chairman. "This is not a political organization. We are going to concentrate on empowering the people in economic, social, cultural and political life," Eros told journalists on Sunday.

He said the grouping was the brainchild of several PDI Perjuangan members, such as Zulvan Lidan, Haryanto Taslam, Mochtar Buchori and Laksamana Sukardi.

In its evolution, however, it has brought together figures from various backgrounds, such as Golkar Party's Ade Komaruddin and Syafri Hutahuruk; National Mandate Party's Bara Hasibuan and Faisal Basri; along with National Awakening Party's Aris Azhari Siagian. Researchers and activists, such as Anggito Abimanyu, Bambang Widjojanto and Muchammad Ikhsan, are also noted as members.

Some have noted the significance of the grouping as comprising individuals who have been sidelined from parties to form a splinter group of major political parties, particularly PDI Perjuangan.

However, Eros maintains that it was born not out of "disappointment" but of a desire to bridge the widening gap between political parties and their grass roots constituents who were neglected after last year's general election.

"We feel political parties need assistance to empower their supporters. We are just a group of people with the consciousness to help realize people's expectations, as promised by political parties during the campaign," Eros remarked.

He further said political parties have become increasingly unstable and remain immature despite their wide support and ascension to power. Eros said a "support group" was needed to enhance these parties' visions and abilities to be more useful to the general public.

Despite Eros' assertions, it is an undeniable fact that the Indonesian Axis came to be only after the March PDI Perjuangan congress which reelected Megawati Soekarnoputri as chairperson.

There were strong efforts to foil any contenders, including Eros. Many noted PDI Perjuangan figures in the past have also been sidelined in the new central board. It has also led to speculation that the Indonesian Axis is a vehicle for Eros and other PDI Perjuangan members to regain their political leverage.

Eros underlined on Sunday that the grouping has no intention of being a new political power and that any politician joining must be committed to removing their respective party attributes during the grouping's work and make it their main priority. "We would like to be Indonesian people first and then be members of political parties," he asserted.

Haryanto Taslam, a former PDI Perjuangan secretary-general, also denied suggestions that the grouping was formed out of bitterness. He claimed that the initial idea to form the organization was conceived before the congress, and that the Indonesian Axis and PDI Perjuangan would never clash head on.

"We work in different fields and we are going to be the interlocutor for political parties to reach the people. We are not in the practical political field," Haryanto asserted.

The group said it is was targeting the middle class as its support base because this remained an extremely potential yet untapped, and often forgotten, public force.

Separately, PDI Perjuangan's faction secretary at the People's Consultative Assembly, Heri Akhmadi, seemed nonplused by the new grouping. He "welcomed" it and expressed hope that it could be complementary and improve the party's human resources.

"We realize our weakness in human resources, so we hope the presence of such a group will educate our supporters," Heri told The Jakarta Post on Sunday. His comment was mild in comparison to a statement made by PDI Perjuangan deputy chairman Theo Syafei several weeks earlier, threatening axis members with possible expulsion.

Indonesian Axis' members said their first endeavor would be to focus on improving the welfare of farmers in five areas selected as pilot projects. "We cannot mention the names of the areas because we want to keep a low profile to anticipate the politization of these projects, but we will report to the public on them later on," Eros said. The axis already boasts to having five branch offices: Central and South Sulawesi, South Kalimantan, Lampung and Jakarta.
 

Regional conflicts

Eight killed in latest Ambon clashes

Jakarta -- Eight people, including two policemen, have been killed and scores injured in the latest clashes between Muslims and Christians in the eastern Indonesian city of Ambon, the military said yesterday.

Mobs of Muslims and Christians in Hative Kecil Atas village in Ambon's Sirimau sub-district clashed on Monday, leaving eight dead and more than 30 homes and a church burnt down, said Captain Sutarno of the Maluku military command.

He said Ambon had been calm yesterday as rain helped to dampen the fighting spirit of the two rival communities. "It's the weirdest war in the world. Rains deter them more than bullets do," he said.

Six of the victims were Muslims and Christians involved in the clashes, while snipers had shot dead two policemen trying to break up the fighting, military officials said.

Tensions within the Maluku islands were heightened recently by the arrival of more than 2,000 hard-line Muslim paramilitaries, who travelled by sea after training in a camp in Java.

The paramilitaries have vowed to wage a jihad, or holy war, although their leaders insist their role is to help Muslims and not to attack Christians.

Elsewhere in the troubled nation, in Aceh province, two people were wounded yesterday during clashes between Indonesian troops and suspected rebels as activists called for the military to pull out of the region.

And soldier was shot during a skirmish with suspected members of the separatist Free Aceh Movement (GAM) in Babah Buloh village, North Aceh, on Monday, a district police spokesman said.

Some 30 soldiers had been lowering three GAM flags in the village when an "unidentified group of armed men" opened fire, police spokesman Captain Ahmad Mustafa Kamal said.

Meanwhile, Indonesian military commander Admiral Widodo warned yesterday that "destructive anarchy" was breaking out in the country. "Unrest ... still plagues the nation's livelihood. What has ... emerged are acts of destructive anarchy," he told parliament during a routine meeting with the military. "The security situation in Maluku is still worrying us. After clashes eased off for some time, fresh violence has reappeared, taking lives."

Admiral Widodo also accused rebel forces in Aceh of launching a campaign of attacks and kidnappings in violation of the recent ceasefire agreement.

He said there was no unified vision on how to return Indonesia to its pre-crisis state, a relatively stable period of 30 years under former president Suharto.

Two police, 12 students hurt in clash in Kalimantan

Jakarta -- Indonesian security forces fired rubber bullets to disperse stone-throwing students protesting in a provincial town in Borneo, injuring at least 14 people, a report said Tuesday.

The students then set ablaze a motorcycle and damaged three cars, all belonging to the security officials, the online service Detik.com reported.

About 800 university students took part in Tuesday's protest outside the local council building in Pontianak, the capital of West Kalimantan, 675 kilometers northeast of Jakarta, Detik.com said.

The students were demanding that Aspar Aswin, the region's governor, to step down. They accused Aspin of failing to bring progress and peace to the province, where a bloody ethnic conflict in 1998 between indigenous people and immigrants from Madura, an island in East Java, left thousands dead.

Detik.com said two policemen and 12 students were injured in the protest that turned into a scuffle as students began to throw rocks at the police.

The students then left the parliament building but launched a sweep against military and police vehicles in a main street. They burned one police motorcycle and smashed two police vehicles and one army car. Contacted by telephone, police confirmed the clash but refused to give further details.

[On June 15 the Jakarta Post reported that a student was killed during a second peaceful protest on June 14. The student, identified as Syarifuddin, 20, collapsed outside the local council building when his fellow protesters started to leave the site. Witnesses said they heard a gunshot. The results of the postmortem have yet to be disclosed. Syarifuddin suffered serious wounds to the head, but doctors declined to confirm that the injuries were caused by a bullet - James Balowski.]

Weapons smuggling to Poso linked to armed forces

Jakarta -- Weapons smuggling to the Poso region in Central Sulawesi is a well orchestrated operation linked to the Indonesian Armed Forces (TNI) according to Andi Matalatta, a member of the Golkar faction of the Peoples' Consultative Assembly. He has urged the government to take serious and immediate action to overcome the violence between Christians and Muslims in the area, lest the situation degenerate further.

Andi Matalatta spoke with Detikworld at the Assembly Building today, Friday, 9/6/2000. He also said the operation had long been known and that it was highly unlikely that it was carried out by independent parties. He claimed the smuggling could be traced to the Armed Forces and that the weapons came from North Maluku before being moved onto South Palopo and Poso.

"First, [check] whether weapons ownership in the Armed Forces and weapons factories are being effectively monitored and are under control," he said. He strongly suggested this matter be tracked immediately and stated that the process would be greatly facilitated by the capture of some of those involved.

"In this case we shoud encourage the House to prompt the army and officers to immediately investigate this illegal use of weapons," reiterated Andi.

Commenting on the perpetual riots in Poso recently, Andi said the main probelm was the multi-ethnic nature of the conflicting groups. He regrets the insufficient attention given to the crisis in Poso, including the inadequate aid (for the refugees) considering that the tragedy in Poso is similar to that which has torn the neighbouring islands of the Maluku archipelago apart in recent months. The capital of Maluku province is Ambon where violence in the past year has claimed more than 2,500 lives. Andy said he has reported the crisis in Poso in the Plenary Meeting of the House. "We urged the government to take immediate and serious action on this case," he said.

Plea for help as bloodshed racks town

Chris McCall, Jakarta -- A top figure in Indonesia's unstable east yesterday called for the Government to crack down hard on religious bloodshed, as the military said at least 123 had been killed in the latest flashpoint area.

The military commander for Sulawesi said the death toll from two weeks of killing in Poso was provisional and represented only corpses actually found. The true figure could be far higher, Major-General Slamet Kirbiantoro said. Police in Poso said they were aware of only 69 deaths. Whatever the death toll, it is the worst violence on the huge island for years.

The killings have gone hand in hand with new attacks in the neighbouring Maluku Islands, where thousands have died in 17 months of sectarian conflict.

Poso community leaders insist the unrest is the work of provocateurs and needs tough and quick action to stop it setting off copycat violence elsewhere in the country.

"It will spread very fast. The Government needs to act very fast," prominent Muslim businessman and political heavyweight Des Alwi said. "It needs to send in more troops and more helicopters. They only respect modern, strong weapons."

Sources in Poso said the town was calm but tense yesterday. Thousands of people have fled the fighting -- carried out, as elsewhere, largely with home-made weapons such as bows and arrows. Like many worst-hit areas in the Malukus, Poso has a roughly equal number of Christians and Muslims. A small coastal town, it was the site of small-scale religious clashes two years ago.

Local people say the tension, as in the Malukus, is due to the gradual influx of Muslims to what had once been a Christian- majority area, and to resentment about which side received government jobs.

Poso is now a virtual ghost town. "There are no people any more in Poso, only the security forces," said Mahenda Papasi, the head of the local Protestant Church synod. He was speaking from the neighbouring town of Tentena, a Christian area to the south now packed with Christian refugees.

Recent bloodshed in the Maluku islands of Ambon and Halmahera has been widely blamed on the arrival of a so-called Muslim "jihad force" whose members have vowed to fight a holy war against Christians. Analysts have been warning that just as the violence gradually spread throughout the Malukus, it could infect Sulawesi.

Mr Alwi, who is from the Banda islands, where all the Christians were forced at knifepoint to leave, said he and a friend had written to President Abdurrahman Wahid a few weeks ago to urge stern measures.

He warned it was now a deeply personal conflict for many of those involved. Many of those now coming to fight in the name of Allah had relatives killed on Halmahera in January, Mr Alwi said, in an attack by Christians in which his own nephew also died. "The families will come back for revenge," he said. "When there is fear, when they don't know if they are going to die or not, people are more mean."

More people killed in Ambon clash

Ambon -- At least eight people, including two Police Mobile Brigade (Brimob) officers, were killed during three, likely related, raids by armed men on Monday.

The attacks began when speedboats sped by shooting at Galala port in Ambon. Soon after an attack occurred at the nearby adjacent villages of Hative Kecil and Galala, just a few kilometers from Ambon.

Sgt. Zeth Palibu of the Ambon Police and Sgt. Marsel Alfres of Police Mobile Brigade's 3rd Battalion in Bogor died from wounds when they tried to stop attackers coming into the village from the Gunung Malintang hills.

Pattimura Military Commander Brig. Gen. Max Tamaela confirmed the incident, saying that the two policemen were shot in the chest and in the head.

"The two villages are only 500 meters away from the hills. The clash broke up at about 7.15am. The attackers started to infiltrate the villages from 4.45am and burned dozens of houses, including a church," Tamaela said.

The secretary-general of the Maluku branch of the Indonesian Ulemas Council (MUI), Malik Selang, said six people, including the two policemen, died in the clash at Galala village. Later at about 11am, another attack occurred at the Poka area, 21 kilometers north of Ambon.

Soldiers rushed to the scene to help stop the violence. Two people were reportedly killed during the unrest in Poka. As of 10pm local time, bomb explosions and gunfire were still being heard.

No less than 33 people were injured in the three attacks. Most of the victims were hit by bullets, shrapnel from bombs, along with arrows. Eighteen are currently being treated at Al Fatah Hospital while the rest were taken to Halong Naval Base Hospital and Dr. Haulussy General Hospital. Hundreds of terrified residents have left the villages seeking refuge in safer areas.

"We detected the presence of outsiders among the attackers, but we managed to block and disperse them," Tamaela added without elaborating.

In a bid to quell further rioting, Tamaela said two Navy battleships entered the waters of North Maluku to attempt to block further sea attacks. "An infantry battalion has also been set to enter Ambon this week. Troops in Tual, North Maluku, and Morotai island also have been redeployed by the Marines from Surabaya," he said.

Local leader Alex Manuputty, however, criticized the handling of riots by certain troops who seemed to be taking sides. "Almost every time there is a problem here, rioters freely pass security posts guarded by Army Strategic Reserves Command's (Kostrad) 303rd battalion. The troops do nothing to stop them," Alex said.

Elsewhere in South Sulawesi, Pare-Pare Military Commander Col. Soeharnanto revealed that two alleged provocateurs of the recent Poso unrest had been detained at Pare-Pare Police Headquarters.

"One alleged provocateur is identified as a German national named Karl Heinz Reiche," Soeharnanto said. "He was arrested in Palopo regency on June 5 after he escaped from Makale, the capital of Toraja," Soeharnanto told Antara from Makale on Monday. The officer claimed Reiche admitted to conducting activities in the towns of Palu, Poso and Tentena, all in Central Sulawesi, just before the riots erupted in Poso on May 23.

The Wirabuana Military commander overseeing Sulawesi, Maj. Gen. Slamet Kirbiantoro, confirmed the arrest later in the day, and said the two, one of them a local resident, were under police investigation. No information could be obtained as to exactly what the two were alleged to have done.
 

Aceh/West Papua

Governor of Aceh sacked as students protest

Banda Aceh -- The governor of Indonesia's rebellious Aceh province has been dismissed by President Abdurrahman Wahid, an official said here yesterday as students took to the streets to protest the sacking.

Mr Syamsuddin Mahmud will be replaced on June 21 by Mr Ramli Ridwan, a senior home affairs ministry official in Jakarta, who will act as caretaker governor, the governor's spokesman Teuku Pribadi said. The presidential decree on Mr Mahmud's replacement was issued on June 7 by President Abdurrahman Wahid, he said.

Mr Mahmud, a Belgian-trained economist and professor at the Syiah Kuala University in Banda Aceh, is expected to be posted to Jakarta as deputy chairman of the National Development Planning Board (Bappenas).

He was elected for a second term as Aceh governor in 1998, and his term was supposed to end in 2003. But in April, 29 legislators in Aceh's parliament upheld a no-confidence motion against Mr Mahmud, saying he lacked a clear vision on how to solve the problems in Aceh and that he had failed to protect the Acehnese people against the conflict.

After hearing news of the sacking, some 100 Aceh students protested at the provincial parliament (DPRD), saying it was done by force and disputing the choice of his successor. They also demanded that the legislature be dissolved.

"There has been no significant contribution from the DRPD in solving the conflict in Aceh," one protestor, Mr Zukhri Adan, said. "The DPRD has been unable to prevent the government's coercive move to replace the governor."

They charged that Mr Mahmud's replacement was a crony of former Aceh governor Ibrahim Hasan, who has been accused of condoning human rights abuses by the military.

Aceh has been torn by violence -- involving the separatist Free Aceh Movement (GAM) seeking independence for the province, and government security forces -- which has left more than 400 dead this year. On June 2, the Indonesian government and GAM entered a truce designed to try to stem the bloodshed.

Two named as suspects over separatist congress

Jakarta -- Police in Irian Jaya (West Papua) have named two separatist leaders as suspects and charged them with treason following a recent congress at which the country's easternmost province was declared an independent state, a report said yesterday.

The first suspect is Theys H. Eluay, chairman of the Presidium Council which organized the May 29-June 3 Papuan People's Congress in the province's capital of Jayapura. The second suspect is the council's secretary general, Thoha Al Hamid.

The congress, which was partly funded by the Indonesian government, was attended by about 3,000 separatists, tribal leaders and some foreigners. It ended with a unanimous declaration of freedom. Al Hamid yesterday complied with a summons for questioning at the Jayapura Police headquarters, after he had defied it on Saturday, Antara reported.

The suspect, who was accompanied by his lawyer Anum Siregar of the province's Legal Advocacy and Human Rights Institute, said he was asked 15 questions about the separatist congress. "The investigation has not yet been directed to other issues, as the questions were focused on the Papua congress," Al Hamid was quoted as saying after the interrogation.

He said he failed to attend the police summons on Saturday because he was at a meeting with visiting Human Rights Minister Hasballah M. Saad.

Local police have also summoned Agus Alua, chairman of the congress' organizing committee, for questioning as a witness in the same case. "So far, there have been only two suspects," Siregar was quoted as saying by Antara.

Talks with Gus Dur Al Hamid said West Papua's rebel leaders will meet with President Abdurrahman Wahid in Jakarta on June 25 or 26 to report on the results of the congress, to which the government had donated Rp3 billion (US$349,000). He said the separatists will tell Wahid the Papuan people wish to secede from Indonesia.

Separately yesterday, Eluay said his council has adopted an agenda to follow up congress' resolutions. Items on the agenda include determining policies to help achieve independence and the formation of a team to conduct political negotiations.

"We have done this because the [Papuan] people have expressed their wish to separate from the unitary state of Indonesia. The central government should be able to understand this political aspiration," said Eluay.

President Wahid said the government did not recognize the congress because it did not represent all people of the province, particularly the pro-Jakarta faction, whereas some foreigners had been present.

The president also vowed to take measures against any concrete activity designed to set up an independent state of Papua. But the government has said military force must not be used to crush the separatist movement, and the congress should not be deemed as an act of treason.

West Papua officially became part of Indonesia in 1969 following a UN-sanctioned act of self-determination carried out in accordance with an agreement signed in New York by the Indonesian and Dutch governments as well as the United Nations. Historians and separatists say the so-called Act of Free Choice was a sham.

Apart from a lone governor in Papua New Guinea, not a single foreign country has publicly supported the independence movement. Russia yesterday joined the US, the Netherlands, Australia and other nations in opposing the declaration of independence, and defended the province as an integral part of Indonesia.

"Our country takes the same stance in relation to efforts by separatists to proclaim independence in West Papua," said a statement from the Russian Embassy in Jakarta.

TNI chief warns foreigners against meddling in Papua

Jakarta -- Chief of the Indonesian Defense Forces (TNI), Adm. Widodo AS warned foreigners yesterday against meddling in Irian Jayan or Papua affairs as the region is a legitimate part of the country, adding that the TNI will deal sternly against foreigners who fail to heed the warning.

"Irian Jaya is an integral part of Indonesia. Irian Jaya is Indonesia's domestic affair. We do not want foreign interests getting involved in it", Widodo told members of the House of Representatives' (DPR) Commission I (defense and information) here.

The TNI Chief said the central government's tolerance displayed toward the recent Papua National Congress had been abused. "For instance, foreigners present at the congress were not just observers, and became involved in the decision making process of the congress", Widodo said.

Commenting on the declaration of independence by the congress, the TNI Chief said he considered it to be a separatist movement.

On the government's decision to reject the results of the Papua People's Congress, the military chief said the government should make efforts to maintain the Unitary State of Indonesia.

The Indonesian military, he said, always ensures that it abides by the government's policies. "Military personnel in Irian Jaya are trying to help the police maintain peace and order in the province and the local administration rebuild the local people's [trust] in Indonesia," he added. The Papua People's Congress ended last June 4 with a declaration that West Papua (Irian Jaya) is no longer part of Indonesia. President Abdurrahman Wahid said the government rejected the congress results.

During the hearing at the parliament building which was open to the public, Adm. Widodo AS observed that unrest continues to mark the security situation in the country. "Unrest continues, while anarchic and destructive activities are now emerging," Widodo told members of the DPR. He said a common vision on how to rebuild the nation had yet to be achieved.

Widodo further said that despite the signing of a cease-fire in restive Aceh province, ambushes and kidnappings continue. The Free Aceh Movement, he said, has even dared to install a member as a village chief and force local ulemas to attend the flag- raising ceremony held in honor of the occasion.

"We have to help Aceh's provincial administration as well as the police to prevent the [cease-fire] agreement from being misused by the group as Indonesia's and the international community's recognition of Aceh's independence," he said. He said the movement has long been intimidating those who do not support it.

Meanwhile on the situation in Maluku province, Widodo said, "It is still our concern because the clashes continue." The military, the provincial administration, the police and the people, he said, will keep on trying to apply the persuasive approach to settle sectarian conflict in the province.

Widodo further disclosed that the situation in Poso district, Central Sulawesi province has further deteriorated. As of June 12, 141 people have died, 99 have been seriously injured and 7,359 houses burned, he said, adding that nine houses of worship and two schools had been damaged in the riots.

Papuan presidium to meet with Wahid over congress

Jayapura -- The presidium of the Papuan People's Congress plans to meet with President Abdurrahman Wahid on June 25 to submit the result of the recent congress which declared their desire to separate from Indonesia.

The presidium's secretary-general, Thoha Al Hamid, said on Tuesday that the delegation would be led by presidium chairman Theys H. Eluay and his deputy, Tom Beanal. Theys will also submit his accountability report on the use of the President's Rp 1 billion (about US$115,000) donation to the congress.

Tom will arrive in Jakarta on Wednesday to arrange the details of the meeting. "During the meeting, the presidium council will convey the Irian people's aspiration, as reflected by the congress resolution," said Thoha.

The Papuan People's Congress issued a statement on June 4 declaring its intention to separate from Indonesia, a move which has been condemned by the central government. The President has expressed his disappointment over the result of the congress.

Police in Jayapura have begun an investigation into possible treason against the state by the congress organizers. On Tuesday morning, police questioned Thoha in his capacity as a suspect in the treason case, along with Theys. Accompanied by his lawyer, Ainum Siregar, Thoha told journalists that police interrogated him about his involvement in the congress, and the entire process of the seven-day event which started on May 29.

The questioning was led by Capt. Asep, who asked him 15 questions during three hours of interrogation. According to Thoha, he was treated well during the questioning and police provided him snacks and drinks.

Ainum said he would also act as Theys' defense lawyer. Without mentioning an exact day, Ainum said Theys was ready to face police questioning. Police will also question the chairman of the congress steering committee, Agus Alua, in his capacity as a witness in the treason case.

Irian Jaya Police chief of detectives Col. Tukarno said Thoha and Theys were named suspects for their alleged involvement in a series of proindependence rallies since late last year, including the hoisting of the Papuan Morning Star flag on December 1. Theys did not turn up at the police office as he had a separate meeting with Trikora Military Commander Maj. Gen. Albert Ingkiriwang.

Separately, Theys said the council had set up several working teams, including a negotiation team to deal with Indonesia and the international community, as a follow up to the congress recommendations.

"As the people have decided to separate from the Republic of Indonesia, the central government is expected to understand this political aspiration," said Theys.

In Jakarta, Irian Jaya Legislative Council (DPRD) speaker T.N. Kaiway said "it's far too late to suppress the Irianese demand for independence." Kaiway was speaking to reporters after a hearing with Commission II of the House of Representatives (DPR) to propose the establishment of four vice governors to cover the province's vast area. "The central government said that the demand for independence is minuscule. However, the facts show that the demand is deeply rooted among the majority of the people," Kaiway said.

Separately, State Minister of Transmigration and Population Al Hilal Hamdi appealed to 334,000 transmigrants, mostly from Java, to remain calm and continue living in the province. The state minister said Theys had assured him that the Papuans would respect the rights of the transmigrants.

He cautioned the transmigrants not to make a hasty decision to leave the province, saying living conditions in Java or in their provinces of origin were even worse than in Irian Jaya. "Unemployment rates are very high in other provinces. So if they want to return home for better lives, it is wrong," the minister told Antara. The transmigration sites in Irian Jaya are concentrated in Timika, Jayapura, Merauke, Fakfak and Manokwari.

Militias stalk West Papua

Alastair McLeod, Jayapura -- Andy Burdam was just sitting down to an evening meal with his family when the police and militiamen arrived. They punched the 45-year-old Papuan elementary school teacher and dragged him away to the local police cells.

From outside the station in West Papua's far-western coastal town of Fak Fak, militiamen threatened the independence supporter and threw large stones at him while the Indonesian police watched. "They did nothing to stop them," Burdam says.

Since East Timor's independence vote, a younger and more defiant generation of Papuans sees their long-held dream of independence as a realistic possibility. Under the leadership of congress president and tribal chief Theuys Eluay, support for a break from Jakarta is gaining strength in West Papua (formerly Irian Jaya). Last week a congress of West Papuan activists and tribal leaders issued a proclamation of sovereignty in the provincial capital, Jayapura.

The independence movement is also sweeping towns outside the capital. And with such enthusiasms have risen East Timor-style militias.

Along with about 50 members of the Free Papua Movement, Burdam fled Fak Fak recently in the face of continued violence and threats from the newly "inspired" Satgas Merahputih -- the red and white militia. "Like their brothers in East Timor, they intimidate and attack us and wear red and white colors of the Indonesian flag," says another Fak Fak refugee. Burdam says he was detained for four days by the police, who continually punched and kicked him. He quickly moved with his wife and four children to a different town.

The link between militias in East Timor and the Indonesian army is well documented; West Papuans believe a similar relationship exists in Fak Fak. Rumors that the army and police have covertly established such groups outside Jayapura have circulated within the independence movement for the past year.

Now, information gathered by a Jayapura-based human rights organization, Elsham, gives credence to the speculation. Fak Fak independence supporters say they infiltrated the militias to gain proof that military finances are involved.

An Elsham coordinator, John Rumbiak, says he has evidence that the Fak Fak militia is supported by the police and army. "But we can't investigate the situation in Fak Fak because we've received threats from the militia that if we go to Fak Fak they will attack our personnel," Rumbiak explains. The appointment of a new governor, Air Marshal Musiran Darmosuwito -- who was vice governor in Dili at the time of East Timor's referendum -- has done little to allay fears.

West Papua shares a history of Dutch colonialism with Indonesia, but, like the Timorese, its indigenous people are Melanesian and mostly Christian.

Separatist leaders first declared independence (from the Netherlands) in 1961, but West Papua was incorporated into Indonesia in 1963. UN recognition of Indonesia's claim to what became Irian Jaya arrived in 1969, when the UN and Jakarta administered the Act of Free Choice. Then, about 1,000 ethnic Papuan delegates voted on behalf of 800,000 Papuans to become a province of Indonesia. It was dubbed the Act Free of Choice by pro-independence leaders, who believe that the vote was a result of corruption and coercion. Activists were forced back into the jungle, from where they have waged a low-level war against Jakarta for nearly four decades.

At last week's congress, convened by the West Papuan Council and comprising Free Papua Movement members and the Forum for Reconciliation (churches, universities, traditional leaders and others), independence chief Eluay said West Papua legally had never been part of Indonesia. About 500 voting members from 2,700 delegates unanimously agreed. In a swift reply, Indonesian President Abdurrahman Wahid said anti-independence voices had been excluded from the seven-day meeting -- about 1 million people in the province are non-Melanesian. And, in any case, independence was not an option. Wahid's government also is mindful of West Papua's lucrative mineral resources, including the world's richest gold deposit at Grasberg. Four workers were killed at the US-operated mine there last month when a waste- storage facility collapsed, triggering new environmental concerns.

According to Elsham, at least four people have been shot dead, 81 detained and tortured, and 165 injured following peaceful demonstrations in the past eight months. It says militias stepped up activities after a meeting of independence delegates in February. Elsham is now compiling a report to the UN

Commission for Human Rights on the events in Wayati, a small village near Fak Fak, in March. It claims a convoy of militia, police and military arrived singing the Indonesian national anthem, then police and militia set about ransacking homes. Witnesses say militiamen, armed with machetes and clubs, urinated on their rice and other foodstuffs. Expect more East Timor-style scenes of ethnic violence in coming months.

West Papua shaping as Howard's next East Timor

Peter Hartcher -- Australia came perilously close to war with Indonesia last year. Australian policy planners know that we could easily veer towards a collision once more. And if you look at the speed with which things have gone badly wrong in our region, you'd be foolish to dismiss the threat.

The last clash centred on East Timor. The new potential clash centres on the Indonesian province of Irian Jaya, recently renamed West Papua. Australia could find itself confronting Indonesia over the fate of the province. It could happen quickly and easily. Some of the prerequisites are already in place.

"Conservative elements within the Jakarta elite remain resentful of Australia's actions in Timor and are convinced that a more sinister conspiracy informs Australia's long-term agenda," reports a team of Australian experts led by Professor Richard Robison, of Murdoch University.

They describe "suspicion, if not paranoia, in influential Indonesian military institutions including intelligence agencies concerning Australian designs on parts of the eastern archipelago".

In short, they think Australia wants to exploit Indonesia's moment of weakness to break up the archipelago and establish sway over some of the pieces as a way of limiting Jakarta's power.

And Jakarta has been rife with speculation that Australia is fomenting the independence movement in West Papua. That suspicion emerged at the highest level this week.

The President, Abdurrahman Wahid, said in Tokyo on his way to his first meeting with John Howard that "many people in Indonesia now object to my visit because there are Australians who have aided the creation of independence for Papuan people".

This seems to be a reference to the fact that there was a handful of Australian activists from non-governmental organisations hanging around last Sunday when the 2,700 delegates at the Papuan People's Congress voted for independence in the provincial capital of Jayapura.

John Howard emphatically denied the allegation that the Australian Government was fomenting separatism in Papua. But many Indonesians will simply not believe him.

Why not? First, Australia has operated covert military reconnaissance flights in Indonesian air space, and the Government has denied that, too. So there is some basis to Indonesian suspicion of covert Australian activity around the archipelago.

Second, if you are paranoid, you are already committed to a delusion. A denial will not move you. Third, it is politically convenient and very popular in Indonesia today to vilify Australia. So suspicion of Australian intentions is firmly entrenched and now legitimised by the Indonesian President himself.

The next prerequisite for trouble is the fact of established political confrontation between Jakarta and the breakaway province. Wahid has said that Indonesia does not recognise the legitimacy of the Papuan People's Congress and is prepared to crack down if necessary.

And the president of the self-appointed Papuan government, Mr Theys Eluay, says that he does not recognise Indonesian rule. "We gained our independence in 1961. We are an independent country, which has been occupied by an invading army."

The third prerequisite is the militias. Fighting between the two militia forces spilled into the capital, Jayapura, for the first time last Tuesday when the pro-Jakarta Red and White Taskforce attacked the pro-independence militia with machetes. One person was hospitalised and five shops destroyed.

The Red and White Taskforce, incidentally, is thought to be financed and supported by the Indonesian armed forces. Starting to sound familiar?

The missing ingredient so far in this new East Timor is the Australian interest. Australians had a long and clear historical attachment to East Timor and a sympathy for their cause. Why would they care about West Papua?

There are two reasons. First is simple human empathy. If the Indonesian armed forces do crack down on the Papuans it could easily bring the so-called CNN effect to bear. If naked villagers with bows and arrows are shown on Australian TV night after night being butchered by Indonesian troops with semi-automatic weapons, how would the Australian public react?

Second, the West Papuans have the support of many of their ethnic brothers next door in Papua New Guinea. Already, the Governor of PNG's Sandaun province has called on Australia to support Papuan independence. Australia guarantees PNG's security under a defence pact. If PNG is drawn into the dispute it could drag Australia into it too.

John Howard's meeting with Wahid this week is a necessary condition for trying to contain the dispute. But it is not a sufficient condition.

Violence continues despite ceasefire

Chris McCall, Jakarta -- Fighting is officially over in Aceh province, but a month after a ceasefire accord it is hard to tell the difference. Fighting has continued unabated since the deal took effect on June 2, with at least two people dead and many more wounded or made refugees.

On Sunday, Harun Ardy became the latest in a series of Acehnese politicians to be murdered. A local legislator, he follows to the grave hundreds of other Acehnese.

Rebel leader Teuku Don Zulfahri was murdered in Malaysia on the eve of the truce, and since then the rebels' chief spokesman has also disappeared, triggering claims of kidnapping.

Sweeping operations in the villages by the police and military go on, hunting for the Free Aceh guerillas they are also talking peace with in the capital, Banda Aceh.

The main changes so far have been bureaucratic. Joint committees set up by the May 12 deal have been formed, although it took much longer than the two weeks originally foreseen. They have not done much work; the committee which should be monitoring the ceasefire has not met.

The rebels are not impressed. Nasruddin Ahmad, head of a five- member rebel delegation to a joint committee on security, said the military and police were being obstructive. "The development is quite difficult. There are many points which cannot be agreed, for example on operations by the military and police," Mr Ahmad said yesterday.

Largely confined to their Banda Aceh hotel, he and his four colleagues fear for their security if they go out. They are now openly identified as rebels, known and recognised by the security forces who control the city and whom they still distrust after more than 10 years of fighting. The war has killed thousands, including many combatants from both sides.

"We seldom leave the hotel because there is no guarantee that we are very confident about," Mr Ahmad said. Security forces were still carrying out sweeping operations, with civilians the main victims. "It's the usual," he said. "They shoot and hit people. There's no change."

Despite the problems there are some encouraging signs, said Saifuddin Bantasyam, executive director of Care Human Rights Forum in Banda Aceh. Land transport has become easier and security in the capital has improved. Ahead of the deal, Banda Aceh was rocked by a series of explosions and arson attacks.

"The general picture is that during these last few days there has been a change -- an atmosphere that is more conducive. This needs time," Mr Bantasyam said. But he added his own word of caution: "There are signs that are better but I don't know for how long. This could easily change in just a few days."

The shooting at point-blank range of Zulfahri on June 1 at a Kuala Lumpur restaurant cast a chill over the accord from the day it took effect, June 2. Rebels blamed the Indonesian military intelligence. Since then the rebel spokesman who made that claim, Ismail Sahputra, has himself gone missing, prompting suggestions he has been kidnapped by the security forces. Rebel delegate Mr Ahmad said his colleague might yet turn up safe and well, but he admitted Mr Sahputra had not been heard from for several days.

Team established to probe rights violations in Irian

Jayapura -- Minister of Human Rights Affairs Hasballah M. Saad announced on Saturday the establishment of a special team to probe humanitarian crimes in Irian Jaya.

Speaking to journalists after meeting with pro-independence advocates and local leaders in Jayapura, Hasballah said as an initial step, he had sent a team of four to the province to gather facts from the people.

The team will fully cooperate with local non-governmental organizations (NGOs) and human rights organizations, like the Institute for Policy Research and Advocacy (Elsam), he claimed.

Its working method will eventually follow the fact-finding teams that probed human rights abuses in Aceh, Sambas, West Kalimantan, Maluku and Tanjung Priok, Jakarta, the minister further noted.

"Many reports of human rights abuses actually are just an expression of social conditions and not legal facts. That is why the cases could not be processed in the court," Hasballah explained.

Citing his experience in handling human rights cases in other provinces, the minister cautioned that it could be a tough task to prove past human rights crimes in Irian Jaya. He also stressed that the investigation could not be concluded overnight.

The minister held a dialog on Saturday with among others local church leader Rev. W. Rumsarwir and Baptist church secretary Sofyan Nyoman at the State Building in Jayapura.

Rumsarwir told the minister to truly resolve human rights cases rather than just making empty promises. Rumsarwir asserted that human rights abuses had begun with the integration of the territory into Indonesia in May 1963.

Sofyan pointed out that the frustration of the Papuans was based on their feeling of being treated with discrimination by the central government for 37-years. "Those are among the factors why people here are demanding separation from Indonesia," Sofyan said.

Following a plebiscite under the aegis of the United Nations and a New York agreement with the former Dutch colonial power, West Irian became part of Indonesia in May 1963. Ten years later, then president Soeharto renamed the province Irian Jaya (Glorious Irian).

Covering an area of some 422,000 square kilometers, the province is three and a half times the size of Java. However statistics in 1995 show that the population was only about two million.

Demands for separation have been increasing and a recently concluded Papuan People's Congress resolved that the province be independent from Indonesia.

During Saturday's dialog, Hasballah refused to touch on independence demands, saying he had no legal capacity to discuss that issue. "I need to listen and gain a better understanding about the real situation and people's sentiment here," said Hasballah.

After the dialog, Filep Karma, a senior leader of the Free Papua Movement (OPM), handed a Morning Star separatist flag to the minister. Papuan Presidium Council's Secretary General Thaha Al Hamid expressed his distrust of the minister's human rights team saying the government had launched several investigations before without any concrete results.

"Several times members of Komnas Ham (National Commission on Human Rights) visited Irian Jaya and gave a dozen recommendations. But the reports were never followed up. So it is simply time wasting, money wasting," added Thaha.

Hasballah, a native Acehnese, whose province is also facing a separatist movement, became the first minister to visit the country's easternmost province since the Papuan People's Congress.

Meanwhile, Papuan Presidium Council Chairman Theys Hiyo Eluay, expressed his ire over a police summons to question him over the congress which demanded independence for the province.

Theys asserted that the Congress was held after receiving approval from President Abdurrahman Wahid, who also is called as Gus Dur. "Even President Gus Dur agreed with the congress," Theys said.

The government did initially help finance the congress under conditions it did not assert Irian Jaya independence. Since then the government has attacked the congress as illegitimate.

In a separate development the National Committee of Youth Organizations (KNPI) has protested the government's decision to allow the separatist Morning Star flag to be flown as long as it was smaller and beneath the Indonesian national flag. They maintain that the decision is an affront to Indonesian nationalism and unity.

KNPI chairman, Adhiyaksa, said that the government should show a persuasive but clear stance against separatism in order to maintain Indonesia's sovereignty over the province.

"Besides employing a persuasive approach, the government should also take strict measures against separatist activities, including the hoisting of the OPM flag," he told journalists at a press conference in Jakarta on Saturday.

Adhiyaksa said the government should advance development programs, especially in the economic and education sectors, to win the hearts of the Papuan people and international support for the province's continued integration.

He said the government should also investigate atrocities in the past and control military operations to create a sense of safety among local people. "The government must guarantee that the Papuan people can conduct their daily activities free from the military's terror and intimidation and make sure that they are 'lords' of their homeland," he said.
 

Labour struggle

Labour unrest mars economic outlook

Todd Callahan -- At a seminar last month in Jakarta, Indonesia's new State Minister of Investment and SOEs Rozy Munir reported that the growing number of foreign and domestic investment approvals was a sign that Indonesia is slowly recovering.

Indeed, on the foreign direct investment front, 412 projects worth US$1.7 billion were booked in the first four months of the year. Of this, US$925 million occurred in April, which seems to suggest that foreigners are returning despite the social unrest and political problems that now colour daily life in Indonesia.

Still, no matter how the numbers stack up, the fact remains that a healthy scepticism prevails among investors, particularly larger ones.

Although investment approvals look encouraging, certainly no big deals are in the making until the business picture brightens in Indonesia. One factor hurting the country's attractiveness is the rising number of labour disputes in Java and other manufacturing centres.

In fact, Mr Munir has acknowledged that labour problems are hindering investor interest. At the same seminar, Luhut Pandjaitan, now minister of trade and industry, also admitted that rising labour unrest is a matter discussed at weekly cabinet meetings because the government recognises that it hurts Indonesia's image abroad.

The reality of the matter is that the mounting number of labour problems in Indonesia is only half the concern. Even more worrying are the sort of demands being made on companies. More and more frequently, Indonesian labourers seem to be pressing companies to meet their demands or face a shutdown. Many view the threat of a strike and embarrassing demonstration as the best negotiating tactic to extract what they want from management.

This new audacity is obviously fuelled by the country's raucous transition to democracy and all the excesses that go with it. The military and police are also no longer in a position to crush labour unrest, an action that was par for the course under former president Suharto.

Unfortunately, the consequences of this new freedom are a procession of unrealistic demands that will only drive away companies and, in the process, hurt labourers' hopes for a better future.

Sony's labour dispute is one of the more visible cases that illustrate what foreign companies are up against in Indonesia. In this case, approximately 900 of PT Sony Electronics' 1500 employees have been on strike since April 26. The provocation, if one can call it that, was a manufacturing change that required line workers to stand, instead of sit down, as they went about their jobs.

The change was necessary so that workers would be flexible and mobile enough to carry out several tasks as a conveyor belt carried television sets and other products down the line for assembly.

Under the old production system in place since 1992, employees could sit down the entire day as they did their work. Workers claimed the new standing system was exhausting. The company countered that competitors have long since adopted this system and, of Sony's 70 factories worldwide producing similar products, Indonesia was the last to still use production processes that permitted workers to sit down.

In the end, the real motivation for the strike was probably money. According to a report in Indonesia's Kompas daily, representatives of the employees asked for a 6,200 rupiah (S$1.24) daily wage rise in recompense for agreeing to the new conditions. Although Sony pays well over the regional minimum wage, the employees apparently felt another concession was in order.

When Sony refused to grant the increase, employee organisers resorted to a campaign of intimidation and embarrassment. Workers, for example, staged a sit-in at the plant's export area to disrupt the flow of overseas-destined orders. Organisers knew that management would be reluctant to throw them out, given the negative press that would accompany such a move. Other workers set up tents and makeshift housing beside the plant and continue to live there today.

In one particularly embarrassing episode in late April, workers organised a protest outside the United Nations building in Jakarta to decry unfavourable working conditions and demand the replacement of Sony's expatriate managers.

At this protest, the resentment of foreign control that often percolates below the surface in Indonesia also reared its unpleasant face. One banner vilified Sony's policies by comparing them to the forced labour that Japan was guilty of imposing during World War II.

On top of the unpleasantness of the strike, the dispute has put a dent in Sony financially. With less than half of the plant's employees working, the company can only produce 1,000 to 1,200 pieces per day.

This represents only 25-30 per cent of the plant's normal daily capacity. As a consequence, the company has had to send orders from foreign distributors to other Sony factories in neighbouring countries such as Malaysia.

Although the exact financial damage is unknown, losses could easily be in the millions of dollars. For this reason, it is not difficult to understand why Sony has warned workers and government authorities that it may consider leaving Indonesia if things do not improve.

Sony's disturbing labour dispute is by no means an isolated incident. Instead of demands for fair salaries and decent working conditions, naked opportunism is the main principle at work at an increasing number of companies.

For example, using the cloak of employee welfare, striking workers at PT Madae Indonesia actually demanded fresh milk and eggs on top of more generic requests such as a hefty wage increase, transportation allowance and daily meal money. However, the demands made by workers of the five-star Imperial Century Hotel near Jakarta definitely take the cake. In this incident, employee demands included a year-end party along with the dismissal of the hotel's expatriate general manager.

It is rather extraordinary that labour problems revolve around these kinds of issues in an economy suffering from massive unemployment. By some estimates, unemployment stands at well over 30 million in Indonesia.

Nevertheless, serious labour strife is likely to continue over the coming years as the country works out its economic and socio-political problems. Prudent investors should bear this in mind before they rush into any new projects.

[The author works as a technical adviser at a consulting and business information company in Jakarta. The views presented are his own.]
 

Human rights/law

No proof of massacre at Tanjung Priok: Komnas HAM

Jakarta -- The National Commission on Human Right (Komnas HAM) announced on Friday that it had found no evidence of intentional mass killings or burials in the 1984 Tanjung Priok bloody shootings in North Jakarta. The commission, led by chairman Djoko Soegianto, reported its final conclusion of the incident to the House of Representatives.

"The shootings were forcibly carried out by the security officers [at the time] after being attacked by the masses," Djoko said. However, the commission concluded that human right violations did occur in the incident, conducted by both the security personnel and the mobs, he said.

The incident claimed the lives of 33 people. As many as 24 people were killed by the security officers, while the remaining nine -- all family members of Tan Kioe Liem -- by the angry masses.

The soldiers, Djoko added, tortured 36 people, who suffered severe injuries. The commission also found several other human right abuses, such as prohibiting people from performing their prays, damaging houses of worship and attacking security officers, he said.

The commission, Djoko explained, recommended that the central government comprehensively solve the September 12, 1984 clash by, among other things, apologizing and giving compensation to the family of the victims.

"We also urge the Indonesian Military [TNI] chief [Adm. Widodo A.S.] to investigate all security officers involved in the incident, especially their commanders," he said without elaborating.

The report of the commission's final conclusion will be submitted to the central government, the TNI chief and the House immediately, saying that Komnas HAM has no legal power to conduct a further investigation.

When asked to comment, House deputy speaker A.M. Fatwa said he was dissatisfied with the report, but insisted that he could understand the authority of the commission. He vowed to help push the government to soon follow up the report.

Komnas HAM set up the Commission of Inquiry into Human Rights violations (KPP HAM) in Tanjung Priok in March to investigate the bloodshed. Several people and former top officers, such as former Armed Forces chief Gen. (ret) L.B. Moerdani and former vice president Gen. (ret) Try Sutrisno, have been questioned by the members of KPP HAM.

The clash between civilians and military personnel erupted following emotionally charged lectures at Tanjung Priok's Rawa Badak Mosque by preachers, who were reportedly criticizing the government.

No one can be above the law in Indonesia

Shoeb Kagda, Jakarta -- Anyone watching the current spat between Indonesian President Abdurrahman Wahid and Bank Indonesia governor Sjahril Sabirin should be forgiven if he said: "Have we not seen all this before?" For it was only a few short months back when Mr Abdurrahman engaged in a battle of wits and verbal sparring with his former military commander and coordinating minister for security and political affairs, General Wiranto, in a bid to oust him from the cabinet.

As in this instance, the newly retired general Wiranto was implicated in an official investigation and was asked by the president to step down voluntarily or face the sack. He was then named in an investigation into the military's blatant abuse of power following the referendum in East Timor.

Mr Sjahril is currently at the heart of another investigation into the central bank's role in the Bank Bali scandal. He has been accused of perjury and complicity by the attorney-general. And now he has been forced into a corner by the president. Mr Sjahril has denied any wrongdoing and has in turn accused the executive wing of the government of interfering in the affairs of the central bank which, under new laws, is independent of the government. He has on his side the law, which stipulates that the central bank governor must be appointed by parliament and not the president and, thus, only parliament has the power to remove him.

At stake in this unfolding drama, is the authority and credibility of Indonesia's still fledgling public institutions. All but annihilated during former president Suharto's New Order regime, the country's political and financial institutions have only been recently revived.

In the case of Mr Wiranto, the once-powerful military's position and role in the country's changing political landscape was at issue. The military had been discredited and stripped of its authority over most matters concerning the nation's political life, and Mr Abdurrahman was attempting to bring it to account for its past abuses of human rights and, more importantly, to subject it to civilian control and the rule of law.

In Mr Sjahril's case, the conflict outlines more clearly the independence of the central bank and the role and responsibility of its governor. But Mr Sjahril is mistaken in saying that the president is interfering in the affairs of the central bank. Mr Abdurrahman has not sought to dictate monetary policies to the governor, although he did ask the central bank to help prop up the rupiah after the currency started to head south.

In fact, what Mr Abdurrahman is attempting to accomplish is to lay down clearly the ground rules of behaviour and accountability for all government officials. Mr Sjahril claims he has not stolen any money but that is not the issue. What is important is that he has been named as a suspect by the attorney-general in a political scandal involving the central bank, and as its head, he cannot deflect the blame from himself. If Bank Indonesia is to regain credibility and the trust of the financial community, which it oversees, its governor cannot be seen to be under any kind of suspicion.

Mr Sjahril is backed by Speaker of the House Akbar Tandjung, whose Golkar party was the principal recipient of the US$80 million that flowed out of Bank Bali last year. Mr Tandjung has even gone as far as undermining the attorney-general's investigation by publicly stating that there was insufficient evidence to remove Mr Sjahril.

What is undeniable, however, is that the current chaotic political and social climate offers the larger political parties ample opportunities to boost their slush funds ahead of the next general election. The top office in Bank Indonesia, with its ability to control and monitor the flow of capital within the country, is a lucrative prize for these political parties.

If Indonesia is to attract foreign investments back to its shores, the nation must apply the rule of law fairly and equitably. No individual, not even the president, must be spared from the harsh light of the law. The right thing for Mr Sjahril to do, therefore, is to hand over his day-to-day duties to his deputies until he can clear his name because without public confidence in the central bank, there can be no international confidence in Indonesia's ability to manage its economy.
 

News & issues

Governor queries FPI raids on nightspots

Jakarta -- Governor Sutiyoso questioned on Friday the effectiveness of the actions by the Islamic Defenders Front (FPI), which recently raided a number of city nightspots.

"They do not have the authority to raid the nightspots. And it's still questionable whether their actions are effective in curbing any vice activities in the city," the governor told reporters at City Hall on Friday. "It's not that they cannot take part in any law enforcement activities. But it's not their part to do the raid," he said.

Sutiyoso also warned such raids could invoke clashes between the FPI activists and operators of the nightspots. "It's possible that the operators will ask the involvement of local residents to defend the nightspots," he said, while adding that the operators would try hard to defend their earnings.

Separately interviewed, Central Jakarta Mayor Andi Subur Abdullah also regretted the alleged vigilante actions taken by the front. "They never informed us before conducting the raid. Such vigilante actions are most regretted," he said.

Thousands of members of the Islamic Defenders Front (FPI) raided several nightspots in the capital on Wednesday night demanding the operators respect the Islamic holiday marking Prophet Muhammad's birthday on Thursday.

The rallying FPI members, dressed in white robes, raided some night clubs and karaoke bars, including those on Jl. Blora in Central Jakarta, Lokasari entertainment center on Jl. Mangga Besar in West Jakarta, and Fashion Cafe on Jl. Sudirman, also in Central Jakarta.

"We've asked the entertainment centers to close their business during the nights of Islamic holidays, but some ignored this," FPI chief of staff Reza Pahlevi told The Jakarta Post. He said the raid almost ended up in a clash between FPI members and some preman [thugs] who guarded some of the entertainment centers. "But there were about 6,000 of us which made them think twice to make a move," Reza said.

At Fashion Cafe, the FPI members demanded the management take down a billboard of a beer brand at their place, while in Mangga Besar, they tore down some movie posters which they considered as 'lustful'.

President, attorney general win `Soeharto awards'

Jakarta -- University of Indonesia students gave President Abdurrahman Wahid and Attorney General Marzuki Darusman "Soeharto Awards" on Wednesday, for their eight-month performance.

SCTV private television station reported that Abdurrahman won two trophies: for failing to eradicate corruption and nepotism, and for maintaining the status quo.

The students also named former chief of the Armed Forces Gen. (ret) L.B. "Benny" Moerdani for human rights violations. Moerdani was once a trusted general of Soeharto before the two conflicted with each other.

Attorney General Marzuki Darusman won his award for his sluggish efforts to bring the former ruler to court.

The awards, named after former autocratic ruler Soeharto, were decided on after hundreds of students from the country's most prestigious university voted on the matter.

Abdurrahman is currently on a 14-day overseas trip and will return on June 21, while Benny Moerdani is receiving intensive treatment after suffering a stroke.

Last year's winners of the awards were former attorney general Andi Ghalib, former information minister Harmoko and former military chief Wiranto.

Military police feared likely to stall July 27 probe

Jakarta -- Legislator Pande Nabanan doubts that the government will be able to solve the July 27, 1996, bloody takeover of the Indonesian Democratic Party (PDI) headquarters.

He, instead, feared that the investigation into the case would meet the same fate as many other unresolved cases after they reach the hands of the Military Police (MP).

"Military Police Headquarters has become a Berlin Wall, which is hard for cases to go through," the legislator from the party which now calls itself the Indonesian Democratic Party of Struggle said on Tuesday.

Speaking at a hearing between members of Commission II for home and legal affairs of the House of Representatives (DPR) and top officers from National Police Headquarters, Pande said that the military's top brass who were widely suspected to have been involved in the case would likely not be prosecuted by the law, although police have already named some civilian suspects in the case which could lead to the alleged roles of military generals.

"The investigation of the Trisakti shooting, for example, stopped at the Military Police," Pande said, referring to a shooting incident of protesting students during a May 1998 antigovernment rally.

So far, investigators from the Military Police have yet to reveal whether they have found the alleged roles of Indonesian Military (TNI) personnel involved in the shooting, which claimed the lives of four student and injured dozens of others.

During Tuesday's hearing, National Police chief Gen. Rusdiharjo told the Commission II legislators that his office had already sent dossiers on the civilian suspects in the July 27, 1996, to the TNI Commander Adm. Widodo A.S. on Wednesday last week and to Military Police Headquarters on Monday.

The dossiers, he said, also contained the results of police investigations and questioning on some of the top brass military and police officers in charge at the time.

Several top officers questioned by police over the four-year-old attack which later ended in riots and burnings, included former Armed Forces commander Gen. Feisal Tanjung, National Police chief Gen. Dibyo Widodo, Jakarta Police chief Maj. Gen. Hamami Nata, Jakarta Military commander Sutiyoso (now governor) and former Indonesian Armed Forces chief of social and political affairs Lt. Gen. Syarwan Hamid.

"The files will be used [by the MP] to investigate further the alleged involvement of top military and (police) officers," Rusdiharjo said.

Separately, National Military Police chief Maj. Gen. Djasrie Marin insisted that his office had yet to receive any dossiers or reports on the July 27 case from Police Headquarters.

"How can we proceed to investigate if we haven't received the files as initial evidence?" Djasri told reporters on the sidelines of a separate hearing at DPR with Commission I for defense, foreign and politics affairs. Meanwhile, Minister of Defense Juwono Sudarsono said he agreed with an idea to hold the trial of the case in a joint civilian-military court, similar to the case of human right abuses in Aceh.

"I agree that the case should be brought to a joint trial similar to Aceh's case," Juwono said on Tuesday. The joint trial in Aceh on the massacre of Tengku Bantaqiah and his students resulted in the sentencing of 24 soldiers and a civilian to six-year to nine-year jail terms. The similarity of the two cases, according to Juwono, is the involvement of both civilians and the military in the attack.

Plan to deploy snipers in Jakarta denied

Jakarta -- Jakarta police have denied a statement by the city's governor that they are planning to deploy snipers at commercial centres in the capital ahead of the next session of the People's Consultative Assembly (MPR) in August. "We aren't going to deploy snipers in the city," said Zainuri Lubis, a police spokesman.

"The deployment of snipers will only reflect that the situation is very bad," he said. He said the police would reinforce their personnel guarding the city's main business centres. "We'll deploy a number of plainclothes detectives to monitor the situation. I don't know the exact number."

Governor Sutiyoso on Friday, two days after a meeting with top officers from the police and military, said that Jakarta police would use sharpshooters at 25 main business centres during the August MPR session.

"City Police Headquarters has agreed to deploy its sharpshooters to protect the business centres from possible outbreaks during the MPR general session," he said.

"But how many personnel will be deployed and where they will be positioned will be up to them to decide." City councillors have strongly opposed the deployment of sharpshooters to control rioters.

Councillor Syarif Zulkarnaen of the United Development Party (PPP) faction said the deployment of snipers was only the last resort to deter rioters. "The police must use other means to break any possible riots because shooting will only cause more problems," he said.

Traditional miners terrorised

Jakarta -- The Indonesian Forum for the Environment (Walhi) and the Mining Advocacy Network (Jatam) have condemned the brutal treatment of traditional miners at the hands of the Indonesian police, military and government officials acting in the interests of, and perhaps in direct coordination with, a mining operation owned by an Australian company. The miners, who have a long- standing land acquisition dispute with the company, were terrorised and their homes destroyed and all justified in the name of recent legislation on illegal mining.

Walhi Deputy Director, Suwiryo Ismail, and Jatam National Coordinator, Chalid Muhammad, held a press conference at Walhi's office in South Jakarta today and outlined the traumatic experiences of the Dayak Siang, Dayak Murung and Dayak Bekumpai communities of Central Kalimantan.

On Wednesday, June 7, the North Barito Police and officers from the Police elite forces (Mobile Brigade) forcefully destroyed and evicted traditional gold miners in the Luit Raya, Tanah Siang and Permata Intan subdistricts, North Barito district. "They launched the action at dawn around 4am when many of the inhibitants were still asleep. At gunpoint, the inhibitants were forced to leave their homes and when emptied, the perpetrators seized all their belongings. Those who resisted were taken away by speedboat to North Barito Police," Suwiryo said in furious tone. Fifteeen community members remain in police detention on unclear charges.

In a press release issued today, the two groups also claimed that community members were forced onto trucks and many dropped in the middle of nowhere while others were left stranded and frightened in nearby villages. The security forces then set about destroying the inhibitant's houses and, in severals locations, they completely levelled encampments, allegedly using equipment belonging to PT Indo Mauro Kencana/Aurora Gold.

The encampments were established after the Dayak communities were forced off their traditional lands in 1987 when PT Indo Mauro Kencana/Aurora Gold first set up operations. Aurora Gold is Australian owned. Walhi and Jatam claim that efforts to resolve past cases of human rights violations and the forced acquisition of the communitie's traditional land have been ignored and the communities have began to reoccupy the mines' territory in defiance of the local government, security forces and Aurora Gold.

The issuance of the new Presidential Decree on illegal mining has, however, provided the necessary pretext for brutal confrontation. Using Presidential Decree No.3/2000, a Joint Team on Illegal Mining Resolution whose coordination resides with the Minister of Mines and Energy, was formed. Acting in the name of this Joint Team, the group, comprised of Barito Police, Mobile Brigade offers, local government officials as well as members of the communities allegedly hired by PT Indo Mauro Kencana/Aurora Gold, terrorised the helpless villagers.

"The Dayak Siang, Dayak Murung and Dayak Bekumpai communities who have became victims are not illegal miners as stated in Presidential Decree No.3/2000. They are traditional miners," Suwiryo argued. The decree actually stipulates that the Joint Team must respect traditional mining rights, which the victimised communities have excercised for many generations.

"In response to this incident, Walhi has urged the Minister of Mining and Energy to take responsibility for the implementation of the decree which has inflicted human rights abuses on the indigenous people of Central Kalimantan. We also urge the National Police Chief and the Minister of Mining and Energy to apologise for their wrongdoings to the community," Suwiryo said firmly. The two groups are also seeking a resolution to the land dispute and human rights abuse cases and for the government to respect the rights of traditional owners.

Police to question Rudini, Mahadi over scam

Jakarta -- Police will question State Minister of Youth Affairs and Sports Mahadi Sinambela and Rudini, the former chairman of the General Election Commission (KPU), over an alleged malfeasance in the purchase of flags for political parties during last year's general election.

"We have sent a letter to President Abdurrahman Wahid [to ask permission] to question Mahadi," director of corruption affairs at the National Police Brig. Gen. Timbul Silaen Timbul told reporters on Monday. Mahadi was a KPU member from Golkar Party at the time.

Timbul said Mahadi and Rudini, a Cabinet minister under former president Soeharto, would be both questioned as witnesses over the case, which has put three KPU personnel -- chief of logistics affairs Achmad Latief and members I Wayan Iyasa and Bambang Mintoko -- in police custody.

"As a chairman, Rudini must have known what really happened in the KPU," officer Timbul said. Mahadi, he said, would also be questioned because he had signed a receipt for the illegal funds, which were allegedly distributed to KPU members.

Police said Latief acknowledged to ordering only 5,000 flags from PT Sass Kencana for every political party from the 20,000 the government had requested KPU to order. Police said he gained more than Rp 5 billion from the fictitious project.

KPU member Clara Sitompul was also declared a suspect after police charged her with being responsible for distributing part of the money to all of the 48 political parties in which each gained Rp 107 million. The flags were expected to be posted at well-known locations during the general election.

Police so far have named five suspects, including another KPU member, Saut Aritonang. It is unclear why Saut and Clara were not put in jail. Timbul said the police would also interrogate all representatives of the 48 political parties in the KPU at the time.

Separately, Clara's lawyer R.O. Tambunan said police had no legal basis to name his client as a suspect in the case. "Clara was only asked by Bambang Mintoko to distribute 30 checks [to other KPU members]," Tambunan said on Monday.

The lawyer quoted Clara, who chaired the Indonesian Christian National Party (Krisna), as saying that there was no corruption taking place in KPU. "From the beginning [KPU members] knew that the contractor would not be able to make 20,000 flags, so all of them decided to distribute the extra money [to KPU members]," Tambunan said, adding that the decision was approved by Rudini.

Another KPU member H.M. Bambang Sulistomo from the Indonesian Democratic Alliance Party (PADI) appeared at the National Police headquarters on Monday for questioning as a suspect in the flag money scandal.

After questioning, he said he had made himself a suspect in the case because he considered the KPU's decision to distribute the extra funds as unlawful.

"I've sent an official letter to the President, the attorney general, the House of Representatives speaker, and the National Police chief to proclaim myself a main suspect," Bambang said, asking the police to release Latief.

"Pak Achmad Latief only carried out what had been decided by a KPU plenary meeting," Bambang said. Latief took no money at all, he said. Bambang said every political party's representative in the KPU received Rp 90 million, which was later used as a campaign fund.

Eight arrested in plantation fray

Bogor -- Police caught eight men on Friday from among some 200 armed locals who were vandalizing the 3,000-square-meter Gunung Mas tea plantation in Blok Panjang at Cibereum village, Cisarua district.

Bogor Regional Police detective chief Capt. Budi Prasetya identified the eight as Dede, Kusmawan, Pepen, Abdul Latif, Jimi, Lobi, Odang and Munawar. "They are allegedly the instigators and were paid by a land broker named Basir. Basir has reportedly fled to Malaysia," Budi said, adding that each man acknowledged to having been paid Rp 1,000 per square meter to vandalize the tea plantation, run by state-owned PT Perkebunan Nusantara (PTPN VIII).

Land brokers have tried to evict tea farmers in order to occupy the land by cultivating it with banana or cassava before selling the property to interested parties who wish to turn the plantations into villas or other buildings. "Based on our investigation, the land buyers are none other than high-ranking officials in the West Java administration and a minister," Budi said.

According to official data, some 402 hectares of a 2,500-hectare plantation run by PTPN VIII were destroyed, causing Rp 9.7 billion in losses. Gunung Mas houses a total of 1,700 hectares of tea plantations located in eight villages, namely Tugu Selatan, Kopo, Citeko, Cikupa, Sukamanah, Sukagalih, Sukaresti and Sukalaya.
 

Arms/armed forces

Second major shuffle for a weakened military

Jakarta -- Indonesia's once all-powerful military yesterday announced the replacement of 122 commanders and staff officers in a reshuffle aimed at modernising the forces.

The reshuffle, the second major one this year, covers 20 posts at military headquarters, 60 in the army, 16 in the air force and 26 in the navy. The documents of transfer were signed on Wednesday by armed forces commander Admiral Widodo Adisucipto, making the new appointments effective immediately.

In the most important change, the key post of commander of the army's special forces, Kopassus, went from Major-General Syahrir to Brigadier-General Amirul Isnaini, previously an assistant to army chief General Tyasno Sudarto. General Syahrir, linked with old hardline military policies, was assigned to the operational assistant position in the army.

The move also saw changes or transfers in five regional military commands, including the commanders of the restive provinces of Maluku and Aceh. Maluku commander Brigadier-General Max Tamaela, who has been criticised by both Muslim and Christian communities in the riot-torn province, was replaced by Colonel I Made Yasa, a Hindu from Bali province.

Major-General Affandi, of the Bukit Barisan military command which oversees separatist-troubled Aceh, was replaced by Major- General I Gede Purnawa, also a Balinese Hindu. The military commanders of Central Java, West Java and the four provinces of Kalimantan on Borneo island were also replaced.

The military's first major reshuffle this year was conducted on February 28 and saw reformist officers taking several key positions, including the vital army strategic reserve command (Kostrad).

Military spokesman Air Rear Marshal Graito Usodo, before releasing copies of the reshuffle documents yesterday, said that the revamp should be seen as a "very ordinary move". Marshal Usodo added the reshuffle was carried out to conform with the military's "organisational needs and personnel development".

Commenting on the reshuffle, the former Indonesian Armed Forces' (TNI) chief of socio-political affairs, Hasnan Habib, told the Jakarta Post that outside elements might have tried to "influence [the changes] by feeding information" to personnel officers.

"But if all members of the TNI promotional council participate in the council's meeting, usually led by the TNI chief, decisions cannot be based merely on that information because participants will use professional considerations in their arguments," he said.

But Indonesian newspapers have reported on an alleged secret meeting between officers and civilian officials before yesterday's reshuffle aimed at promoting certain reform-minded generals. One of those believed to have attended, the army chief's territorial assistant, Major-General Saudi Karip, has been demoted to the army's Kartika Eka Paksi foundation.

General Karip and high-ranking officials are believed to have endorsed a plan at the meeting to expel high-ranking officers linked to disgraced former military chief General Wiranto. Those who backed the move are believed to have included former state secretary Bondan Gunawan, army chief Sudarto and Kostrad chief Lieutenant General Agus Wirahadikusumah. The documented plan was apparently code-named "Bulak Rantai", after the army's residential district where the alleged meeting was held.

General Wiranto was replaced as armed forces chief when President Abdurrahman Wahid formed his new cabinet last October. He was then named co-ordinating minister of defence and security, but was suspended after being named by a national human rights probe as responsible for the military-backed militia violence in East Timor last year.

Divided military holds key to Jakarta stability

Lindsay Murdoch, Jakarta -- A group led by a former Australian foreign minister, Mr Gareth Evans, has warned of the possibility of a coup in the long-term in Indonesia if its enfeebled government fails to meet popular expectations.

The International Crisis Group, based in in Brussels, says that while Indonesia's crisis is chronic rather than acute, Jakarta has not shown the way forward in solving serious political, regional, communal, legal and economic problems and challenges. The group says that although many elements of the military resent the criticisms and sacrifices that accompany its decline in political influence, "there is no possibility of a coup in the present circumstances".

But it says the military, which under former president Soeharto dominated almost every aspect of Indonesian society for 32 years, is divided over its new position and has no strategy to reassert itself.

"The elected [AbdurrahmanWahid] Government continues to enjoy wide legitimacy, which means that any attempt by the military to return to power would almost certainly be met with strong popular opposition," the group says in the first of a series of reports on the country.

"Military officers are aware of the consequences of spiralling disorder on attempts to attract investment in order to revive the economy. And they know that the international reaction to a coup would be extremely negative ... However, in the longer run, circumstances could change, especially if civilian government fails to meet popular expectations. The real test will come later if the civilian government fails to entrench its authority and loses it legitimacy."

The International Crisis Group comprises former national leaders, government officials, corporate executives and civic and humanitarian activists. It rejects international press speculation about the possible "Balkanisation" of Indonesia, pointing out that only two provinces, Aceh and Papua, have separatist movements that could conceivably succeed.

These provinces have a combined population of only 6.4million in a country of 220 million. The group says that unlike the Soeharto government, which had relied heavily on repression, the new government has emphasised the need for dialogue and a political approach in both provinces and hopes to reach compromises on the basis of extensive and special autonomy.

The group recommends that other countries restore the military co-operation with Indonesia that was cut over military-sponsored violence in East Timor last year, but says this should be confined to areas relating primarily to national defence until forces involved in internal security duties have been thoroughly reformed.

Military grows impatient with Wahid

After several months, Indonesia's military is re-emerging from the shadows. On June 13, the head of Indonesia's armed forces (TNI), Admiral Widodo Adisucipto, warned that the country was sliding further into chaos and that the government's first concern was to prevent the nation's disintegration. Widodo's statement typifies the military's concern about Indonesia's territorial integrity and its dissatisfaction with President Abdurrahman Wahid's efforts to solve the problem. The armed forces are still backing Wahid -- he is still the best of a number of bad choices -- but his options are severely constrained if he wants to stay in power.

The military high command appears to be bracing itself in preparation for a conflict with President Wahid. A TNI spokesman told Antara news agency June 9 that a reshuffle of the top echelons was in the works. Considering that Wahid has already inserted his own loyalists into the top ranks, further reshuffling suggests that the military wants to undo the damage. The process has already begun; the Straits Times reported that Lt. Gen. Agus Wirahadikusumah will lose his post as the chief of the army's Strategic Reserve Command (Kostrad). Agus was installed on March 29 and is regarded as a close aide of Wahid and a vocal military reformer.

This reshuffling comes on the heels of a series of very public warnings from the armed forces. Since the middle of May, military figures have continually expressed impatience about resolving the economic turmoil, social instability and rampant separatism that is tearing the archipelago nation apart. Hinting at solutions, the army has begun referring to the People's Consultative Assembly (MPR) as the highest power in the land -- rather than the president.

the Indonesian Defense Force, brought up the idea of continued, and perhaps increased, military representation in the People's Consultative Assembly -- quite startling in light of the fact that recent military reforms mandate the military withdraw from politics by 2004. Most threatening were the General's references to the "democratization failure" in Pakistan, and the military takeover that rectified the problem, according to Agence France Presse.

This rhetoric represents a major shift from statements made as recently as April 20, when military leaders emerged from their annual meeting declaring their desire to stay out of politics. The trigger for this change most likely occurred during the May 12 cease-fire agreement between the government and separatists in the province of Aceh.

The cease-fire was a breakthrough in the decades-long conflict, but it gave the rebels a hint of legitimacy. Most of the military virulently opposes any accommodation of the separatists -- seeing it as encouragement for other separatists and the beginning of the end of Indonesian unity. In fact, some observers blame the military for a recent series of assassinations of the Acehnese leadership.

Another reason for this newfound assertiveness is that the armed forces may have finally organized themselves after being politically routed by Wahid early in his term. Not long after taking office, the president brought in a number of new commanders and reshuffled many of the old. He replaced the head of the armed forces, a position traditionally held by the army, with an admiral and directed resources toward the navy.

This exacerbated tensions between army officers -- mostly those loyal to ex-president Suharto -- and the navy, which maintains an institutional unity and outlook rooted in the populist nationalist agenda of the late president Sukarno. But inter-service rivalries appear to have taken a back seat to greater concerns about the state of the nation.

The armed forces still back Wahid, more by default than by his own virtues. The military has few favorable options. A military takeover could stabilize Indonesia -- after a period of massive bloodshed and anarchy. The military would not only need to suppress communal fighting in the Spice Islands and separatists in Aceh and Irian Jaya, it would have to fight in the heart of Indonesia, as student demonstrators and pro-democracy activists would inevitably take to the streets. This would stretch the army to its limits, with 250,000 regular troops trying to control a country of 200 million. In the meantime, the economy would collapse to near subsistence levels as the last remaining foreign investors fled.

The alternative, however, is to sit and watch as Indonesia tears itself apart. Wahid has been busy, but relatively ineffective in negotiating an end to the violence and in encouraging foreign investment. The rest of the government is consumed with political infighting, which may be Wahid's salvation.

The military is not yet willing to take over the country, and there is no other viable political figure to take Wahid's place. Military intervention will be complete, or not at all. Thus, for the moment, Wahid stays.

The armed forces have repeatedly stated that their first priority is the national unity and territorial integrity of Indonesia.

Wahid's decision to use negotiations, rather than repression, to reel in restive provinces threatens that unity -- especially if that negotiation amounts to de facto independence. The military's patience is wearing thin, but it appears to have given Wahid one last chance to fix the situation.

Wahid, however, is stuck. He cannot negotiate with the provinces without offering them some form of independence or autonomy -- which is unacceptable to the military. Fixing Indonesia's economy will quell some of the violence, but no companies will invest as long as social unrest continues. Wahid made it a point not to send troops against the separatists, but he now has little other choice. Soon Wahid will bow to the military, allowing it to take control of the provinces.
 

Economy & investment

Central bank eases regulation to allow more lending

Jakarta -- Indonesia's central bank on Friday temporarily eased lending limits for banks to encourage them to boost economic activity through increased loans.

Bank Indonesia deputy governor Subarjo Joyosumarto said in a statement rules covering capital adequacy ratio (CAR) limits and divestment of bank equity in heavily-indebted companies would also be relaxed.

He said the calculation of banks' CAR has been revised to include the loan loss reserves under risk-weighted assets. "Banks with a larger amount of non-performing loans will enjoy a higher CAR of up to two to three percent with the new method," he said.

Indonesian banks until now have been reluctant to lend money because it may lower their CAR to below the minimum requirement of four percent, he added.

Joyosumarto, who is shortly scheduled to leave the bank, also said that currently commercial outstanding loans amounted to only 270 trillion rupiah compared to 800 trillion rupiah time deposits in commercial banks.

He said the central bank has extended the time given to banks to settle their legal lending limit problems until May 2001 from previous schedule of October 1999.

For banks which had reached debt restructuring agreements with their debtors through debt to equity swaps, Joyosumarto said they will be allowed to divest their stakes in indebted companies after five years or after these firms book cumulative profits. The statement did not explain how long the temporary relaxation of rules would last.

Indonesia's banking system collapsed under the onslaught of the regional financial crisis in 1997 and 1998, converting the country into a virtual cash economy.

Jakarta `needs to tackle graft to keep aid coming'

Robert Go, Jakarta -- Indonesia needs to have a coherent strategy on economic reforms and make serious efforts in eradicating corruption if it wants international donors to keep funds flowing into the country, urged a top World Bank official yesterday.

Although declining to comment on specific cases, the World Bank's vice-president for East Asia and the Pacific, Mr Jemal-ud-din Kassum, said that good governance should be made a central issue in Indonesia's reform programme. "In order to obtain additional funds, it is important for the government's anti-corruption efforts to be visible," he said at the end of a two-day visit to Jakarta. "The World Bank's focus is to help build institutions that ensure due processes are obeyed," he added.

The most recent scandal to rock Indonesian politics involved the loss of US$4.1 million from the coffers of the Indonesian Logistics Agency (Bulog) and implicated the President's masseur, a chief presidential aide and a Bulog deputy chairman.

President Abdurrahman Wahid has denied any wrongdoing, but the case, dubbed Buloggate, has raised questions about transparency issues within the government and threatens to undermine the legitimacy of the administration.

Evaluating the country's economic progress, Mr Kassum was optimistic, citing increasing foreign reserves and growth figures, adding that he was "encouraged by the economic recovery" during the past eight months.

But he said that there is much more to be done to achieve sustainable economic growth for Indonesia. "The framework for economic stability is well established, but it is important to demonstrate to the market that the planning is beginning to be realised in actual progress," he said.

Although there "continues to be strong international support and considerable goodwill for Indonesia's reform efforts, confirmed results", according to him, are needed to show "the government's commitment and resolve in achieving its objectives" and encourage the inflow of aid.

"If progress is stalled, donors understandably are going to be concerned and insist on further reviews." Indonesia is up for evaluation by the Consultative Group on Indonesia, a multinational grouping of donors, which plans to hold its next meeting in October.

Mr Kassum listed the country's anti-corruption, poverty alleviation, economic decentralisation and legal reform agendas at the head the group's discussion agenda. The World Bank's commitments to Indonesia this fiscal year totalled over US$1.5 billion.

State power firm seeks 25 percent tariff hike

Jakarta -- Indonesia's state electricity company PT Perusahaan Listrik Negara (PLN) said Monday it was seeking a 29.4 percent across the board increase in basic electricity tariffs this year.

The proposal, made by PLN president director Kuntoro Mangkusubroto during a a hearing with the People's Representative Council (DPR), would see the tariff increased to 293 rupiah (3.4 cents) per kilowatt-hour from the current 227 rupiah. Kuntoro said the proposed tariff hike would be applied to all users.

He said PLN so far has incurred losses partly because it had to subsidise large industrial users. Under an economic reform program agreed with the International Monetary Fund (IMF), which is coordinating a 46 billion dollar bailout aid for the country, Indonesia is striving to rid itself of costly state subsidies, including those for power, telecommunications and fuel.

Strong chance of stock rebound after MPR session

By couple of weeks ago, Philip Eng, when replying to questions from reporters on whether he was concerned with the sharp fall in the price of Astra International's shares, noted that country risk rather than corporate failings was driving the stock down.

The group managing director of Cycle and Carriage (CCL), who was speaking after being appointed a member of Astra's board of commissioners, might as well have been speaking for Indonesia's entire stock market.

Since the beginning of the year, when the Jakarta Composite Index was trading at about 700 points, the stock market has plunged more than 30 per cent, closing yesterday at 468.36 points.

By far, it has been the worst performing market in the region. But what has been surprising is that the sharp fall came despite encouraging news from the corporate sector. Over the past five months, a growing number of companies have either restructured their debt or are in serious negotiations to do so. Having learned the painful lessons from the excesses of the past, a large number of Indonesia's corporations have also streamlined their operations, shedding non-productive units and cutting down on staff numbers. Better profit margins: Coupled with this, the consumer-led pick-up in gross domestic product (GDP) growth has also led to higher sales bookings and better profit margins, after two very lean years.

As a result, companies such as auto conglomerate Astra, cigarette maker Gudang Garam, telecommunications service provider Indosat, pharmaceuticals producer Temp Scan and chemicals manufacturer Lautan Luas are looking forward to healthy profits in 2000.

So why then are foreign fund managers avoiding Indonesia totally and local investors dumping their stock holdings and moving instead into fixed income securities? For the answer, we must go back to Mr Eng's comments. Indonesia's country risk is just too high and overshadows the work being done and the gains being made at the corporate level.

Even the recent listing of Bank Central Asia, the country's largest private bank and seen to be a must-hold stock in any fund manager's Indonesian portfolio, failed to rouse the index from its deep slumber.

Related to Indonesia's rising country risk is also the growing uncertainty over the rupiah. In line with the stock market, the currency has fallen more than 17 per cent since its peak in October last year, making it the second-worst performing currency this year.

From a high of 6,800 against the US dollar in October, the rupiah has literally collapsed to its current level of around 8,600, with most market players predicting that it could touch 9,000 within the next two months.

The sharp decline in the value of the rupiah is a major concern, not just because it is a barometer for public confidence in the government, but more crucially, because it has a direct impact on corporate earnings. If, for example, the rupiah remains above the 8,000 level for the rest of the year, corporate earnings growth will be crimped to under 10 per cent for 2000, Eva Muis, director of research at Kim Eng Securities Indonesia, has estimated. But if the rupiah can stabilise at the 7,000 level as assumed in the government's budget, corporate earnings growth could exceed 30 per cent as foreign exchange losses are minimised.

With the country's highest legislative body, the People's Consultative Assembly (MPR), due to convene in early August, political uncertainty and thus the rupiah's volatility, will continue to dampen the market over the next three months.

Should investors, therefore, continue to stay away? Or is Indonesia's corporate world now very different from the pre- crisis days -- in other words, is it a riskier bet now than it was in the final months of 1997? The answer to both questions is no. Unlike 1997 and 1998 when the economic and political crisis caused the Jakarta Composite Index to fall to its historical low of 256 points, what we have now is an infant democracy trying to sort itself out.

Rather than compare the situation to 1997 or 1998, investors should note how the market behaved in May and June of 1999 when Indonesia held its first democratic elections in over three decades.

Following growing uncertainty prior to the general elections, the stock market registered its highest one-day gain immediately after polling day as the feared social unrest failed to materialise.

Barring a political meltdown come August -- a situation that is most unlikely -- there is a good likelihood that both the stock market and the rupiah will post strong gains immediately after the MPR session. It may, however, be a bumpy ride between now and August.