Democratic struggle

Repression on rise as right-wing stages power grab

Green Left Weekly - July 15, 2001

Max Lane -- There are now more political prisoners in Indonesia than there were during the last 12 months of General Suharto's 32-year rule. There are at least seven leaders of the West Papua independence movement in jail, some now on trial for so-called political offences. During the last few weeks, at least 16 members of the civilian wing of the Acehnese independence movement have been arrested. Mohammad Nazar, a spokesperson for the Acehnese Referendum Information Centre, is now serving a 10- month sentence because of his involvement in the November 2000 mass pro-independence demonstrations in Banda Aceh. Kautsar, chairperson of the Acehnese Peoples Resistance Front, is being charged with "spreading hatred against the government", a charge commonly used by the military under Suharto.

At least 19 members of the left-wing People's Democratic Party and the National Front for Workers Struggle (FNPBI) are still being held in police cells in Bandung and Jakarta for leafleting in support of strike actions.

The arrests in Jakarta and Bandung point to a shift back to using the state apparatus for repression rather than the paid thugs who have been used repeatedly over the last several months to attack the leaders and offices of pro-democracy groups.

This shift has been encouraged by the impending demise of the government of President Abdurrahman Wahid. Wahid's government has annoyed the military and other forces associated with the ousted Suharto regime because of his refusal to share power with them.

As tensions between them have intensified, Wahid has introduced legislation, now before the parliament, to make any officials charged with corruption during the Suharto era to be considered guilty until proven innocent, allowing their immediate arrest and even the confiscation of their financial assets.

Wahid has further angered the military commanders by publicly criticising them for using live ammunition in dispersing demonstrations. He has also attacked the recent decision by the military, Golkar and the right-wing Muslim parties in the parliament to vote against establishing a special human rights court to investigate and try military officers involved in the murder of student activists during the May 1998 revolt which forced Suharto to resign the presidency.

The military now openly acknowledges its allegiance to the parliamentary majority, comprising Golkar, the armed forces representatives, the Central Axis bloc of right-wing Muslim parties and Vice-President Megawati Sukarnoputri's Indonesian Democratic Party of Struggle (PDIP). In practice, the military has been deferring to House of Representatives (DPR) chairperson and Golkar boss Akbar Tanjung and People's Consultative Assembly (MPR) chairperson and Central Axis spokesperson Amien Rais, rather than to President Wahid.

In response to Wahid's threat to call a "state of emergency" -- which would legally allow from the dissolution of the parliament and for new parliamentary elections to be held -- on July 31, the reactionary bloc in the DPR has brought forward the planned special session of the MPR to hear impeachment charges against Wahid from August 1 to this week. It has furthers a vote of no confidence in President Wahid.

As Wahid appears to have only limited support within the military and police, his only hope of forcing the parliament to accept dissolution and early elections is to call for mass mobilisations to show support for such moves. However, he has constantly undermined mass mobilisations against the reactionary alliance, even when they have been carried out by his own supporters.

During February and March, hundreds of thousands of peasants from east, central and west Java mobilised to defend Wahid from the moves against him in parliament. However, demoralisation set in among the pro-Wahid peasants when their leaders sent them back to Java without any protest actions.

Wahid continues to insist that he can defeat his opponents by himself. In a televised press conference on July 20, he stated that a compromise must include the MPR giving up on asking him to make a statement of accountability to that body, but noting that the MPR could issue a resolution regarding ongoing accountability.

The most often talked about compromise is an outcome where the MPR majority allows Wahid to remain as a figure-head president but where an MPR resolution passes the constitutional authority of the presidency to Megawati.

Megawati's position as either president, if Wahid is forced out, or de facto prime minister and vice-president, if a face-saving deal is done, will depend on continuing support from Golkar, the military and the Central Axis Muslim parties. There is already talk of whether Akbar Tanjung or the Central Axis MP, Hamzah Haz, should become vice-president if Megawati becomes president.

The vote by Golkar and the Central Axis parties against any human rights trials over the military's May 1998 murder of students points to the fundamental concession the military desires out of the present conflict: a free hand for mass repression of workers, student and peasants.

East Timor

Constituent Assembly election campaign begins

Green Left Weekly - July 15, 2001

Jon Land -- The start of the formal election campaign period for East Timor's new Constituent Assembly began on July 15. Some 16 political parties and a number of independent candidates are contesting 88 seats in the election set for August 30, exactly two years after the historic referendum on independence.

The Independent Electoral Commission established by the United Nations Transitional Administration in East Timor (UNTAET) has confirmed that 968 candidates will contest the national seats and 96 will run for district seats.

The assembly will include one representative from each of East Timor's 13 districts, to be elected on a first-past-the-post basis. The remaining 75 representatives will be elected on a national basis using a proportional representation system of voting.

Fretilin was the first to kick-off the election campaign with a rally on July 15 in Dili which swelled to around 5000 at its peak -- a relatively small turn out given party leaders claim a support base of around 100,000. On the same day, Fretilin's traditional rival, the conservative Timorese Democratic Union (UDT), held a press conference where party head Joao Carrascalao said UDT would "combat" problems like poverty and ignorance which lead to "hate, enmity, disintegration and mutual suspicions".

The UDT has taken out full-page advertisements featuring "caring for the people" slogans in several editions of the Timor Post.

The pre-campaign period was marked by repeated statements by UNTAET head Sergio de Mello and East Timorese leaders Bishop Belo and Xanana Gusmao that violence could threaten to de-rail the election process.

This prompted the creation of the Pact of National Unity, which 14 parties signed, pledging to respect the result of the ballot and use peaceful campaigning methods and activities before and after the vote.

A special investigative team comprising UN and East Timorese personnel made preliminary checks in areas where it was suspected there could be problems -- Aileu, Baucau, Dili, Same and Viqueque -- but these were all found to be calm.

The July 19 Suara Timor Lorosae newspaper reported that police in Baucau are investigating an incident involving shots being fired at a UN landrover.

Signs of distrust and anger at the UN and some of the more established political parties was displayed when UNTAET head Sergio de Mello and representatives of the parties visited rural areas and towns. In Viqueque on July 17, locals abused representatives from the UDT.

By contrast, the Socialist Party of Timor (PST) has had a positive reception at recent meetings it has convened in towns like Liquica, Manatuto and Remexio. "We are carefully explaining to the people what we stand for and what our party program is ... the people want serious answers to their problems", PST secretary general Avelino da Silva told Green Left Weekly.

"If some of our candidates are successful in the elections, we will use pressure from inside and outside the constituent assembly to help the oppressed, to help the farmers and labourers", he added.

Da Silva, a former member of the National Council, was also reported by July 19 Timor Post as saying that he did not want the Constituent Assembly to be like the National Council. "The regulations that were passed in the NC reflected the needs of the administration and not that of the people. These regulations did not take into account actual realities", he said.

While not standing in the elections himself, da Silva will be helping build support in the districts for the PST and its candidates. "I do not want to be in a so-called legislative body where I will be used as a rubber-stamp and cannot perform my duties as a people's representative", he told the Timor Post.

Political parties accuse UNTAET of breaking promise

Suara Timor Lorosae - July 24, 2001

A joint campaign by seven political parties to hit the hustings in Lospalos Monday was called off because transportation promised by UNTAET failed to turn up.

"Since seven in the morning all the political party candidates had been waiting for the promised UNTAET transport at the Dili headquarters. The transport just did not show up," said Clementino Dos Reis Amaral, secretary-general of the Kota Party.

"We don't really know what happened. Is this a tactic to discourage us?" he asked. Clementino said the seven political parties will lodge an official complaint with UN Transitional Administrator Sergio Vieira de Mello.

The President of the Christian Democrat Party (PDC) Antonio Ximenes said UNTAET must not make empty promises. "If promises were not made by UNTAET, we could have arranged the transport ourselves," said Antonio.

Second round of campaign messages broadcast

Lusa - July 24, 2001

East Timor's official television and radio station's have begun broadcasting the second round of campaign messages allotted political parties and independent candidates contesting the August 30 constituent assembly elections.

The so-called "antenna time" broadcasts were recorded with the aid of an independent producer and are part of the political party support initiative overseen by East Timor's UN transition administration (UNTAET).

East Timorese voters will on August 30 elect the 88 members of an assembly whose main duty will be to draw up the future national constitution. The campaign period began on July 15, with 16 political parties registered, along with a number of independent candidates. The second round of campaign messages first went on the air Monday night and will be broadcast daily through next weekend, when the next group will be recorded.

The Social Democratic Party (PSD), which has rejected UNTAET's political party support package, has not made use of its antenna time and has likewise declined to take part in a meeting with journalists at Radio UNTAET, one of the territory's three official media outlets.

Also on Monday, officials of the Political Party Support Center in Dili delivered 13 of the 16 cars earmarked for the parties taking part in the election under terms of the support package. Three parties -- the PSD, Fretilin and Parentil -- have yet to collect the cars assigned to them, along with drivers, for the duration of the campaign period.

Independent candidates do not have the right to cars but have been granted priority access to daily bus links between Dili and the 13 districts of East Timor.

Reduced Timor force must watch for militias: UN

Reuters - July 25, 2001 (slightly abridged)

Irwin Arieff, United Nations -- The United Nations said on Wednesday it would reduce its presence in East Timor after the tiny territory gained its independence, expected early in 2002, but had to stay on alert against militias in neighboring West Timor as long as Indonesia failed to disband them.

"There is concern that some militia elements have adopted a strategy of lying low until independence in the belief that the international military presence will be removed from East Timor," Secretary-General Kofi Annan cautioned in a report to the 15- nation UN Security Council.

The council, which asked Annan in January to weigh whether the full complement of UN troops should remain in East Timor next year, was due to debate the report on Monday.

While the Indonesian armed forces have cut down on the militias' weaponry, the groups "retain easy access to caches of modern weaponry for operations, including hand grenades, semiautomatic and fully automatic small arms," Annan said. "Hard-line elements capable of operational and tactical leadership also remain able to operate from West Timor," he said.

The UN Transitional Administration in East Timor, known as UNTAET, totaled some 7,900 troops, 1,400 police officers and a little over 1,000 civilian staff members in mid-June.

While East Timor would require substantial international support even after its first democratic elections, set for August 30, "it is clear that there will be a substantial reduction in the overall (UN) presence," Annan said. But he left the details for a report due in October.

Asian diplomats are watching the matter closely, fearful that Western nations, including France and the United States, will press for the mission to be shifted to a voluntary funding basis after independence. The mission is now funded from dues paid by the United Nations' 189 member nations.

While some of these militia groups have laid down their arms, others remain active, including some that operate inside West Timorese refugee camps.

Human rights groups have urged Indonesia's new president, Megawati Sukarnoputri, chosen by parliament on Tuesday, to crack down on the militias after taking power.

Annan said it would be necessary to keep a small team of civilian professionals in various fields in East Timor for up to two years after independence, so they could continue training East Timor's new civil servants to run their country.

The UN civilian police force, while reduced, should also maintain "a substantial strength" to carry on the process of training new East Timorese officers, he said.

Peacekeeping troops and military observer units should remain at current strength in the border areas because of the continued threat from militia groups but could be reduced in East Timor's eastern and central sectors, Annan said.

Refugee tide runs back to East Timor

Melbourne Age - July 27, 2001

Mark Dodd, Kupang -- In what will probably be the last refugee repatriation voyage, 179 East Timorese boarded the Patricia Anne Hotung this week homeward bound for Dili and a fresh start.

The former Australian Navy ship turned refugee carrier has plodded up and down the coast for more than 18 months assisting almost 10,000 East Timorese to escape the squalor and oppression of militia-controlled camps in and around Kupang in West Timor.

Perhaps 85,000 East Timorese remain in West Timor. Nobody really knows. Privately, senior officials from the United Nations High Commissioner for Refugees say they believe the real number to be closer to 60,000.

But on one critical issue there is agreement. The East Timor refugee crisis is heading for resolution and the losers will be the militia leaders who helped orchestrate the crisis in the first place.

According to the UNHCR and its partner agency, the International Organisation for Migration, the Indonesian Government will soon offer the East Timorese a choice to go home or resettle on other islands.

The UNHCR and the UN Development Program are already involved in a planning mission with Jakarta to resettle the refugees on Sumba, one of Indonesia's eastern islands.

"The message of the Indonesian Government to the refugees is, `you cannot stay in West Timor. You can be Indonesian and we love you for that, but you cannot stay in West Timor'," said Iain Hall, UNHCR's senior field officer in Dili. He said the local government in West Timor had made clear that it could not absorb the refugees except for about 6000 people.

Indonesian authorities are also getting fed up with the cost of looking after their often ungrateful guests. In an incident in January, refugees resettled at Salamu just outside Kupang began burning down their homes in protest at poor living conditions. According to UNHCR officials, complaints about the East Timorese are common by the Indonesian Government taskforce in charge of refugees.

From the Governor, Piet Tallo, down to senior army and police officers, Indonesians are, in the words of the bishop of Atambua, "getting fed up with the refugees". There is also strong evidence of a change in attitude towards the militias.

High-ranking Indonesian police sources in Kupang have confirmed the arrest of Igidio Mnanek, the leader of the Laksaur militia. They say Mr Mnanek, who kidnapped an East Timorese teenage girl as a war prize in 1999, has been brought to Kupang.

There are other signs that security forces are being more assertive in taking control of the refugee camps. Gone are the militia goons who used to enter the Fatululi refugee transit centre outside Kupang with impunity.

Much of the credit for improved security goes to the new Indonesian commander for the eastern islands, Major-General Willem da Costa, whose father was born in East Timor.

Reconciliation talks between East Timor independence leader Jose "Xanana" Gusmao, and the leader of the Mahidi militia, Cancio Lopes de Carvalho, could result in Mr Carvalho returning next month along with 10,000 supporters, Mr Hall said. However, Mr Carvalho would almost certainly face arrest on war crimes charges for violence committed after the 1999 vote to end Indonesian rule.

With aid supplies drying up, a steady trickle of refugees returning home and resettlement on a remote eastern island as the only reward for carrying the lost cause of Indonesian rule, there appears to be a new willingness by militia leaders to negotiate. "Hard-liners are becoming more moderate and the moderates are now talking about returning," said Mr Hall.

One option to encourage the return of East Timorese could be for donor funds to be allocated specifically for the fast-track development of communities whose residents were in West Timor, he said.

Some of those still in the camps are former civil servants, soldiers and police, waiting for their Indonesian pension pay- outs. So far only 600 out of an estimated 2014 former soldiers have returned home with their pensions paid.

The new nation of East Timor could put to good use the skills of former Indonesian-trained civil servants. But the cost to entice all 20,000 back is likely to be in the vicinity of $20 million if Jakarta continues to stall on their payments.

Farewells at Kupang port are still intense reminders of families split apart and this week's was no different. Clutching their ID papers, a husband and wife checked through the gates, their eyes streaming with tears. "Don't cry mama, we're going home," said one of their children. A police officer gave a tearful hug to departing family members before rejoining his guard post at the port gate.

Captain Camilho, of Battalion 743, spoke soothingly to distressed relatives on board the Patricia Anne Hotung, as he helped them load their luggage. He has been dockside for many of the repatriation trips from Kupang.

The time came for the gangplank to be lifted and he prepared to leave, but not before standing to attention and snapping a crisp salute. His eyes were red and his expression was deeply pained.

Timor Gap Oil companies worried over Dili's tax strategy

Lusa - July 26, 2001

Negotiations between East Timor, Australia and oil companies working Timor Gap offshore fields have bogged down over tax issues, with the companies saying they fear Dili may be seeking to impose higher rates than expected.

Phillips Petroleum official Jim Godlove said Wednesday in Darwin, Australia, where the three-way talks are taking place, that negotiations had stymied. The impasse could delay plans to advance with construction of a USD 500 million natural gas pipeline to the northern Australian city.

"We continue to negotiate with Australia and East Timor about this question, but up to now, there is no clarification of the final position", Godlove said.

Phillips Petroleum was worried, he added, that Dili, which gained tax rights over 90 percent of the Timor Gap fields in a July 5 accord with Australia, would insist on higher taxes than practiced under the previous accord involving Canberra and Indonesia, former occupier of East Timor.

A representative of a second operator, Barry Adams of Woodside Petroleum Ltd., said there were "rumors" that Dili planned to introduce a secondary corporate tax of 44 percent. "Naturally, this issue worries us", Adams said.

Foreign, local election observers registering for vote

Lusa - July 27, 2001

Four groups of international observers and eight East Timorese organizations have already registered with Dili electoral officials to monitor the territory's first free vote on August 30.

According to figures obtained by Lusa Friday, the four foreign organizations, including the Atlanta-based Carter Center, will field 45 observers, while the eight local organizations have almost 400. Among the international teams, the Asian Network for Free Elections includes representatives from 10 countries.

The Carter Center, founded and led by former US President Jimmy Carter, has already deployed eight "long-term observers" to monitor the campaign underway peacefully for the the [sic] August 30 constituent assembly balloting, which is contested by 16 parties and several independents.

In a related development, about 90 differ[e]nt kinds of campaign materials, manufactured in Australia and provided the parties by Dili's UN transition administration, are expected to arrive from Darwin next week. The propaganda materials include banners, flags, posters, leaflets, decals and T-shirts, among other things.

The varied campaign aid, which also encompasses limited transportation, office support and radio broadcast time, is worth about USD 300,000, part of a broader USD 4 million-election package funded by the UN Development Program.

Only one political force, the centrist Social Democratic Party of Mario Carrascalao, a dissident former governor under Indonesian occupation, has refused the UN aid, arguing it was "paternalistic" and aimed "to control" the parties.

East Timor rights and justice not guaranteed: Amnesty

Reuters - July 28, 2001

Sydney -- Justice and human rights in East Timor are still not guaranteed even though a UN administration in the former Indonesian territory will end its mission there in a few months, Amnesty International said.

The international human rights group said in a statement released on Saturday the United Nations was failing in its primary task of ensuring that the protection of human rights was a core issue for a newly independent East Timor.

The UN administration in East Timor is due to begin winding up in January 2002 but law and order is barely maintained, basic human rights are not guaranteed and justice is not being administered effectively, the rights group said.

"Unfortunately the UN is failing in its primary task of ensuring that the new state of East Timor has protection and promotion of human rights at its core," said Amnesty International spokesman Tony O'Connor.

East Timor is set for is first democratic elections on August 30. No date has been set for its full independence but it is expected early next year.

A UN administration known as UNTAET took over the running of the territory in early 2000. It is charged with peacekeeping and the administration of East Timor in the run-up to the elections.

The UN administration was put in place after an Australian-led, UN-mandated peace enforcement mission was sent there to restore order in the wake of an August 1999 vote by East Timorese for independence after 23 years of often brutal Indonesian rule.

Pro-Jakarta militias backed by elements of the Indonesian military went on a bloody rampage in the wake of the vote to cut ties with Indonesia. Scores of East Timorese were killed in the violence and most of the capital Dili was razed.

The United Nations said on Wednesday it would begin reducing its East Timor presence after the tiny territory gained full independence in early 2002 but added it was still concerned by the militia groups across the border in Indonesian West Timor.

Amnesty International said the United Nations had a duty to leave an effective justice system and police force in place. "If the UN pulls out without leaving in place substantial support for the fledgling judicial system and police, its investment over the past two years will be jeopardised," O'Connor said.

Regional powers such as Australia have been training judges and lawyers since the UNTAET administration began and an independent judicial system is slowly being put in place. Policing is still mainly left to UNTAET. Campaigning for East Timor's 88-seat Constituent Assembly began on July 15. Sixteen parties will compete for seats in the parliament, which is to draft a new constitution.

In June 2001, UNTAET numbered some 7,900 troops, 1,400 police officers and more than 1,000 civilian staff.

Belo boost for Fretilin

Sydney Morning Herald - July 24, 2001

Mark Dodd -- The Nobel laureate Bishop Carlos Belo has indicated support for a Fretilin victory at the election for a Constituent Assembly on August 30.

Party faithful, diplomats and United Nations officials who attended a Fretilin congress a fortnight ago were almost unanimous in saying that Bishop Belo's presence amounted to tacit support for the party that led the 24-year struggle to end Indonesian rule.

He told the congress he was not present in an official church capacity or as a member or supporter of Fretilin, but as someone who had been invited twice before to attend a Fretilin congress but had been unable to.

He acknowledged Fretilin's revolutionary credentials, but urged it to become a modern democratic political force. "You must fight against corruption, nepotism, violence and poverty," he said. Analysts believe Fretilin could win up to two-thirds of the vote.

New crops boost Timor harvests

Melbourne Age - July 21, 2001

Mark Dodd, Aileu -- When it came time to harvest new varieties of sweet potato in an agriculture project in Aileu, an East Timor mountain town, the response was overwhelming -- the farmers made off with most of the cuttings.

For Patrick Kapukha, World Vision agriculture manager in East Timor, the theft was the best compliment that could be paid to Seeds for Life, an Australian-funded project that aims to boost local production of staple food crops.

"I suppose it was stealing, but when the local people carried off a lot of vines, this was really an indication of their approval of the quality of the produce," Mr Kapukha said.

The project is a three-year, $1.2 million program funded by the Australian Centre for International Agricultural Research. It aims to help East Timor's impoverished rural community, which comprises about 90 per cent of the country's population, estimated at 812,000.

New crop varieties, selected for their adaption to local conditions, should improve sustainable food production in the long term. Any surplus could be sold, providing farmers with money to buy livestock.

Despite a recent surge in migration to cities, a legacy of the violence after the 1999 vote for independence from Indonesia, most East Timorese depend on subsistence agriculture.

United Nations research shows that most of the population lives in about 442 villages on flat coastal strips or in the remote hinterland. Village populations average 1400 but some are as small as 200.

Violence after the ballot added hardship to the already poor rural community. Loss of food and seed stocks, the destruction of farming equipment, irrigation systems and transport assets compounded problems associated with the displacement of people.

However, according to the ACIAR, much of the seed and plant material provided as emergency aid after the violence was poorly adapted to East Timor's growing conditions.

"When you come into a post-conflict situation, where there has been a lot of displacement of people, one of the most important things you can do is restore the plant material of staple crops for the farmers," Mr Kapukha said.

Seeds of Life aims to boost yields for staples such as cassava, green beans, rice, peanuts and sweet potato, an important crop grown during the dry season. Australian agronomist Colin Piggin, head of Seeds for Life, said a program to introduce new varieties in commercial quantities could take place within two to three years.

The harvest in Aileu resulted in an average yield of 5.3 kilograms per row for the local tuber and up to 27 kilograms for the new varieties. "That's about a six-fold increase," Dr Piggin said.

The final on the new crop verdict came from the farmers themselves. All the introduced varieties passed an on-the-spot tasting session by the local community. Farmer Elsa Ximenes, 50, said: "We are very happy with these new crops. They are much bigger than the old sweet potato. I can already tell they will sell well in the market."

Elite power struggle

Hamzah Haz, a seasoned politician who shuns publicity

Agence France Presse - July 26, 2001

Jakarta -- Hamzah Haz, who became Indonesia's ninth vice president on Thursday, is a seasoned lawmaker and politician and the first in more than three decades to come from a Muslim party.

The 61-year-old vice president is chairman of Indonesia's largest Muslim party and the third largest party in the country, the United Development Party (PPP), which he has headed since 1998.

Despite being the world's largest Muslim-populated nation, Indonesia has since the fall of founding president Sukarno in the 1960s, never had a vice president from a Muslim party.

Haz, who is known to be self-effacing and shuns publicity, has said his appointment to the vice presidency was necessary since the Muslim political forces he represents would complement the nationalist forces represented by President Megawati Sukarnoputri's Indonesian Democracy Party for Struggle (PDIP).

An active group organizer since his high school days in his native province of West Kalimantan on Borneo, Haz has however been untested in his administrative skills, and spent a large part of his adult life as a lawmaker.

He studied economy but did not obtain a decree from the state university he attended in Pontianak, the capital of West Kalimantan. But he holds a bachelors degree in cooperative sciences from a state academy in Yogyakarta, Central Java, where he enrolled together with his copra farmer father.

Haz started his career in the provincial parliament in West Kalimantan in 1968, and after moving to the capital, became an MP in 1971. He first represented the Muslim Nahdlatul Ulama (NU) group and then the PPP following its creation through a merger of Muslim parties in 1973.

He served as minister for investment under former president B.J. Habibie, who replaced strongman Suharto when he stepped down in 1998, but had to resign to lead the PPP in the 1999 elections.

Ousted president Abdurrahman Wahid appointed him as coordinating minister for people's welfare, but he resigned after two months saying he wanted to concentrate on his party. Sources at the palace said Wahid had accused him of graft, collusion and nepotism.

Haz then became a vocal Wahid opponent, but his background in the NU which Wahid led for 15 years until he was elected president in 1999, has made him amenable to compromise. He was among the political party leaders who attempted to broker a last minute compromise between the embattled Wahid and the hostile parliament.

On Thursday, the first visit he made after his election, was to the presidential palace, to bid Wahid farewell who was ousted on Monday by the national assembly and replaced by Megawati.

`Cry for Indonesia,' say Wahid's remaining fans

Agence France Presse - July 26, 2001

G.K. Goh, Jakarta -- Abdurrahman Wahid's farewell to his followers Thursday was much like his 21 months as Indonesian president -- chaotic, confusing and sadly anti-climactic. About 1,500 people attended a rally outside the presidential palace near Jakarta's famous Independence Monument and crowded around a small wooden stage to listen to his parting words.

It was his first appearance outside of the presidential palace since his political foes forced him from office through a parliamentary vote on Monday on charges of incompetence and breaching the constitution.

And although his supporters were clearly devoted -- some carried banners reading "I love you, Gus Dur," addressing the ousted leader by his nickname -- far fewer gathered than the masses he once warned would converge on Jakarta should he be deposed.

The rally threatened at several stages to turn into farce, first when, just as Wahid was about to get on stage, one of the event organisers screamed into a microphone that 100,000 people had gathered.

Then the clinically blind Wahid's minders virtually had to drag the frail 60-year-old on stage as the crowd pushed and shoved his entourage, trying to get close to their fallen hero.

And minutes after Wahid made his 10-minute speech and departed for the airport on his way to the United States, half of the makeshift stage, which looked as if it belonged in a small school fete, collapsed. Perhaps the stage, like Wahid, was never built strongly enough to carry so many people.

But if the ex-president had noticed the lack of supporters and the sense of anti-climax, he didn't show it. "I will return," he said. "And when I return [from the United States] I will continue my struggle for democracy against people armed with knowledge but no heart.

"I will continue to lead the moral struggle." His words drew raucous cheers but within an hour most people had left and the street sweepers were already well on their way to eliminating all traces of the rally.

The few who were left spoke of the sense of injustice Wahid so clearly feels. "He is still the legitimate president according to the constitution," said Gunardi Pangaribuan, 38, from Central Java. "But don't cry for Gus Dur, cry for Indonesia."

Many come to say their farewells to Gus Dur

Straits Times - July 28, 2001

Enrique Soriano and Devi Asmarani -- Deposed and dejected, Mr Abdurrahman is helped down the stairs of the presidential palace on Thursday before catching a flight to the US for medical treatment.

But former Indonesian president Abdurrahman Wahid's last day at the Istana on Thursday was marked instead by heartfelt farewells from supporters and journalists.

He received hundreds of visitors, including members of Nahdlatul Ulama -- the Muslim group he headed for 15 years -- activists, war veterans, old friends, and actors. Some appeared to be in tears after they said goodbye to him and his family.

En route to the airport, Mr Abdurrahman stops briefly to address his supporters. The local and foreign press were also inside the Istana compound, waiting for a chance to get in.

A group of Indonesian journalists walked up to palace security officers and said that they too wanted to pay their respects to Mr Abdurrahman and say good-bye. After some negotiations, the officers agreed. As it turned out, these journalists were not there just for the story. They put aside their cameras and notebooks as they lined up to say their farewells. One kissed Mr Abdurrahman's hand and others hugged him.

Said the ousted leader's second daughter Zanuba "Yenni" Arifah Chafsoh: "I'm very heartened by this. It shows that a lot of people still love Gus Dur." The former president had initially refused to vacate the palace voluntarily, saying his impeachment was illegal.

But on Wednesday night, Ms Yenni told reporters that her father had accepted what had happened as "God's will" although he believed that he was still 'legally and morally' the country's president. She also thanked the nation on behalf of her family and apologised for mistakes that might have been made in his 21 months in office.

En route to the airport, Mr Abdurrahman stopped at the Monas Square in front of the Palace to address 1,500 supporters. The crowds waved banners saying "Gus Dur, I love you", and shouted "Bon Voyage" and "Viva Gus Dur". They also held prayers for the former Muslim cleric. He promised his supporters, who included student activists and NU followers, that he would "continue his struggle to uphold democracy".

Mr Abdurrahman flew to the US where he was scheduled to undergo medical checks at the Johns Hopkins Hospital in Baltimore, Maryland. He was accompanied by 13 people on the trip, including his wife, two daughters, private doctors, assistants and bodyguards. Indonesian military chiefs were among those who saw the family off at the airport.

Will this stop the endless political bickering?

Straits Times - July 28, 2001

Hamzah Haz, leader of Indonesia's largest Muslim political party, was elected Vice-President on Thursday. In its editorial yesterday, The Jakarta Post wondered if he could work amicably with President Megawati Sukarnoputri, known for her nationalist and secular outlook. Below is an extract of the editorial, entitled "An Unlikely Duet".

Sceptics might call it the best of the worst outcomes possible. But then, many Indonesians also consider Thursday's outcome the best that could have been achieved under the country's current political constellation.

To be elected, Mr Hamzah Haz has had to defeat not only Mr Akbar Tandjung, but military candidates Susilo Bambang Yudhoyono and Agum Gumelar, and civilian politician Siswono Yudohusodo.

Many observers believe that to have Mr Akbar in the vice- presidential seat would have encumbered rather than helped President Megawati Sukarnoputri in carrying out her duties, which no one disputes as being colossal. Indeed, many Jakartans believed it wise to prepare themselves for massive demonstrations should Mr Akbar have been elected.

Mr Hamzah, on the other hand, is an experienced politician. But he comes from what observers might describe as a conservative Muslim background, while Ms Megawati's strong nationalist and secular outlook is well known.

It may be recalled how, during the run-up to the 1999 general election, Mr Hamzah, together with several other Muslim groups, promoted the idea that Islam forbids a woman from becoming president. The question that now begs to be asked is whether his present turnaround merely constitutes a political tactic that, in time, will prove to be detrimental to Megawati's presidency.

We certainly hope not. After all, in the past, Muslims and nationalists have worked together fruitfully and effectively for the good of the nation.

To endlessly continue the present bickering among political factions would only mean prolonging the hardships under which 210 million Indonesians must live. It is time that this country's politicians start putting the nation's and the people's interests above their own.

Politicians will dominate

Straits Times - July 28, 2001

Marianne Kearney, Jakarta -- Politicians will dominate the new Indonesian Cabinet. Their empowering will be a form of payback for the support they gave President Megawati Sukarnoputri during the impeachment process against Mr Abdurrahman Wahid.

Despite calls for seasoned professionals to be included among the Cabinet ranks to help resolve Indonesia's myriad problems, legislators and political analysts contacted yesterday believe Cabinet posts will be doled out to politicians, particularly those from Golkar and the coalition of Muslim parties.

Leaders from Ms Megawati's own Indonesian Democratic Party- Struggle (PDI-P) and other politicians say they favour a mix of talent in the Cabinet. "We have to consider political groups but also the aspect of professionalism," PDI-P secretary-general Sutjipto said.

He cited former economics coordinating minister Kwik Gian Gie as someone who had both the political and professional qualifications to serve. "Madame Megawati is drawing up the list herself, with the assistance of one or two people, including myself," he said. Former banker and minister Laksamana Sukardi, another PDI-P executive, is also believed to be involved in the process.

Even so, the mix is likely to favour politicians -- some of whom will have had professional experience -- as Ms Megawati has to ensure that she continues to enjoy support from the major parties which helped her to power.

Golkar, whose leader Akbar Tandjung lost to Mr Hamzah in the vice presidential race, has indicated that it expects to be included in the new government. Indeed, just after Mr Hamzah had been voted in on Thursday, Mr Akbar Tandjung sent an indirect message to President Megawati. "I hope there will be no repeat of mistakes that could result in the holding of another special session and another change of leadership," he told a local television reporter.

But party legislator Syamsul Mu'arif denied that Golkar had demanded a specific number of posts -- although he did suggest that as the second largest party in Parliament it should receive more posts than smaller parties.

Political analysts contacted yesterday said that by including all major parties in the government, Ms Megawati would be creating an awkward Rainbow coalition Cabinet. The danger could be that ministers would end up pushing party policy rather than implementing agreed government policy -- something that characterised Mr Abdurrahman's first Cabinet.

PDI-P and even Golkar legislators nevertheless believe that some key coordinating roles in Cabinet, especially economic posts, could end up in the hands of professionals.

Mr Sutjipto agreed that it was "most important" that such positions be given to professionals and that posts such as Foreign Affairs, and Trade and Industry Minister could be doled out to party members.

Analysts said the new Cabinet needed committed and far-sighted ministers who were willing to make difficult decisions quickly. They will have to stem the economic downturn, reduce rampant corruption and introduce law and order before the expiry of a three-month honeymoon period that investors have given the new government.

But fears remain that the reality of political accommodation in the selection of new Cabinet members could prevent this from happening.

Megawati puts cabinet choices on hold

South China Morning Post - July 28, 2001

Reuters in Jakarta -- New President Megawati Sukarnoputri left Jakarta yesterday for the provinces, putting the critical task of forming a coalition cabinet on hold and reinforcing perceptions that she will not be a hands-on leader.

Since being appointed President on Monday, Ms Megawati has offered little vision for ruling the fractious archipelago and has given no clues on who might form a cabinet that faces the massive task of dragging Indonesia out of crisis.

"The cabinet will be announced next week," Bambang Kesowo, a senior aide to Ms Megawati, said. Officials from Ms Megawati's party also said the Government could be named early next week.

Following the appointment on Thursday of Vice-President Hamzah Haz, a Muslim party leader who brings vital religious support to Ms Megawati, Indonesia's power-hungry political parties are now circling for ministerial seats.

Ms Megawati is attending various functions in West Java and parts of Sulawesi, in the country's east, before returning to Jakarta today. She went to East Java on Wednesday to visit the grave of her father, Indonesia's founding president Sukarno.

Officials from her party were quoted in local media yesterday as saying the cabinet would reflect all parties in Parliament apart from key economic posts, comments that will please financial markets.

"The ministerial posts that relate to the economy will be given to professionals, because economic recovery will be the priority of the Government," the deputy secretary-general of Ms Megawati 's Indonesia Democratic Party-Struggle, Pramono Anung, told the Jakarta Post. The party is Parliament's largest, but lacks a majority.

Having gained power, Ms Megawati faces a crop of headaches ranging from separatist and communal violence in Indonesia's outer reaches to reviving the banking sector and convincing investors that the country is still a good place to make money. "We are already back at square one," Laksamana Sukardi, a strong contender for a top economics post in the cabinet, told local television. "We have been at the bottom of a ravine for such a long time, there is no such word as not succeeding. We have to succeed."

Separatists in Irian Jaya province have welcomed Ms Megawati's appointment, but warned her not to seek a military solution to the remote and resource-rich territory. Ms Megawati has previously made clear the archipelago can only have one political master.

Ms Megawati will also need to tackle a judiciary riddled with corruption and influence-peddling. In a reminder of that mess, a gunman on Thursday shot dead the judge who last year sentenced Hutomo "Tommy" Mandala Putra -- son of former president Suharto -- to jail for graft.

Ms Megawati's accession follows a remarkably peaceful transition that claimed no lives but left the reputation of her sacked predecessor, Abdurrahman Wahid, in tatters.

On Thursday, US President George W. Bush telephoned Ms Megawati and congratulated her on the peaceful transfer of power and stressed US commitment to help Indonesia.

Mr Wahid flew out of Jakarta on Thursday for medical checks in the United States after disputing his dismissal by the top legislative assembly. Analysts have largely welcomed the appointment of a Muslim party leader as Ms Megawati's deputy, saying his religious credentials would underpin her nationalistic, secular views. But the Jakarta Post raised concerns about Mr Hamzah role in helping block Ms Megawati's bid for leadership of the world's most populous Muslim nation in 1999 because she was a woman.

"The question that now begs to be asked is whether his present turn-around merely constitutes a political tactic that, in time, will prove to be detrimental to Megawati's presidency," the newspaper said in an editorial.

Ms Megawati has clearly revelled in becoming Indonesia's fifth president and following in the footsteps of her father. But along that road, she has shown a dislike of the political rough and tumble and maintained her preference for silence on sensitive topics, unlike the garrulous Mr Wahid -- who frequently infuriated politicians with his erratic statements.

To some Indonesians, her style marks a welcome change and could lead to more stable policymaking and the creation of fewer political enemies.

Mr Wahid's departure also brings to an end a Friday institution in Jakarta -- his midday appearance at a mosque to pray with worshippers when he almost always uttered something controversial for the hordes of media squeezed in.

Assembly chooses Muslim leader Haz as Vice-president

Reuters - July 26, 2001

Achmad Sukarsono, Jakarta -- Indonesian legislators on Thursday elected an unlikely deputy for their first female president -- a Muslim politician who has said women are not fit to lead the world's largest Muslim nation.

The choice of United Development Party (PPP) chief Hamzah Haz underlines the potential instability in the fragile alliance that dumped Abdurrahman Wahid and replaced him with the daughter of founding President Sukarno on Monday. But Haz also provides crucial religious support that Megawati Sukarnoputri needs to survive in power -- and only time will tell if he is a friend or foe, analysts say.

Sources said Haz's relationship with Megawati is cool and formal. "Megawati is very nationalistic therefore Hamzah Haz, theoretically, should provide a good mix," Lin Che Wei, head of research at SG securities, told Reuters.

Haz beat parliamentary speaker Akbar Tandjung by winning 340 votes among the 611 members of the top assembly who voted. Both men embraced and kissed after the result as legislators cheered. Haz is expected to be sworn in later on Thursday.

Just hours after sacking the country's first democratically elected leader, the nearly one dozen parties involved began squabbling over the spoils, an early warning Megawati's coalition could become as fractious as Wahid's.

PPP, the third largest party, had threatened it would not join the yet-to-be-announced cabinet if Megawati's old job went to Tandjung, who also heads Golkar, the second-largest party and former political tool of ousted autocrat Suharto.

Megawati's Indonesian Democratic Party-Struggle (PDI-P) is the largest but does not command a majority.

PPP officials said Golkar already had enough power through holding the parliament speakership. Golkar is also still heavily tarnished by its links to Suharto. One MPR source has said a deal had earlier been struck to give Golkar extra ministries in return for Haz becoming vice president.

Key block to Megawati in 1999

After Megawati's party won the most votes in 1999's parliamentary election, Haz helped galvanise a Muslim alliance that crushed her presidential bid because she was a woman, and then lost heavily to her in a run-off for the vice presidency.

However, some analysts say his Islamic credentials could make a good partner to Megawati's more secular, nationalist views. As the supreme People's Consultative Assembly (MPR) was meeting, Wahid prepared to leave the Dutch-built presidential palace where he has remained holed up since being ousted. He will leave for the United States on Thursday for medical checks.

The selection of vice president has a crucial influence on the shape and tone of Megawati's administration because it reflects the forces and alliances she will have to factor in when she creates her cabinet. Haz's election and Wahid's departure may also seal Indonesia's first peaceful transition of power, which would provide a welcome boost to the battered economy.

Stocks and the rupiah rallied on Wahid's sacking, but have since shed some of their gains amid a reassessment of Megawati. After the relief at the lack of violence comes growing concern about her so-far untested abilities.

Politicians and analysts are urging the taciturn Megawati to announce a cabinet quickly and begin the herculean task of dragging the world's fourth most populous nation out of crisis. No precise timeframe has been set for naming the cabinet but it is expected within days.

A new president, as well as an old one, for Indonesians

New York Times - July 23, 2001

Seth Mydans, Jakarta -- In the most peaceful transfer of power in Indonesia's history, Megawati Sukarnoputri was sworn in as president today, moments after the nation's top legislative body voted to cut short the fractious and rudderless tenure of her predecessor.

But in a historical novelty, Indonesia, the world's fourth-most- populous nation, was left with two claimants to the presidency as Abdurrahman Wahid refused to recognize the action to remove him and remained isolated in his official residence.

With his power having vanished literally overnight, his ministers resigning one after another and the crowds of supporters he had counted on failing to materialize, Mr. Wahid, 61, made no public statement today. He appeared for a moment as evening fell, waving forlornly from the palace veranda, dressed in a pair of striped shorts and a white polo shirt.

His aides said he had no intention of making way for Mrs. Megawati, and government officials said there were no immediate plans to force him to leave.

Mrs. Megawati, the daughter of Indonesia's founding president, Sukarno, appears to have felt that it was her destiny eventually to inherit his mantle. But as a politician, she has remained detached from the fray.

Mr. Wahid is the first Indonesian president to cling to office once it became clear that his power was gone. But his stubbornness seemed only a sidelight to the nation's affairs.

Mrs. Megawati's inauguration, 21 months after Mr. Wahid outmaneuvered her in a parliamentary vote for president, was marked by a surge of hope and relief that the political arm- wrestling might be over.

Leaders of opposing parties pledged to give her a chance to restore political order, address separatist and religious conflicts and revive the economy in this battered and unstable nation of 210 million people.

All 592 of the 700 delegates in the People's Consultative Assembly who were present voted to strip Mr. Wahid of the presidency for his failure to account to the legislature for his actions and for his attempt earlier this morning to disband it.

That vote automatically elevated Mrs. Megawati, 54, from the vice presidency to become Indonesia's fifth president -- and its fourth in the last three turbulent years.

Mr. Wahid's party and one other small party boycotted the session of the assembly, which includes the Parliament and representatives of the military and regional and special interest groups and which has the power to elect and remove presidents. The assembly must now elect a vice president, a politically crucial choice. Mrs. Megawati said she would appoint her cabinet later this week.

Regal in a long white jacket and purple sash, Mrs. Megawati paused a moment and tapped the microphone as she rose to take the oath of office. A Muslim clergyman held a copy of the Koran above her head as she promised to uphold the Constitution.

In the brief inaugural speech that followed, she called for unity and cooperation in solving Indonesia's problems as it moves to strengthen its democratic system.

"Democracy demands gracefulness, sincerity and obedience to the rules of the game," she said in a comment that could have been intended in part for Mr. Wahid. "I am calling on all parties to accept this democratic process gracefully."

Mrs. Megawati will return to the presidential palace where she lived as a girl -- once Mr. Wahid moves out. In the meantime, she remains in the vice presidential residence.

When she was 19, in 1966, her father was deposed by Suharto, who ruled Indonesia as a military strongman until he was forced to resign in May 1998. His vice president, B. J. Habibie, replaced him briefly until the election of Mr. Wahid.

All of those transitions were attended by bloodshed. Hundreds of thousands of people died in an anti-Communist purge when Mr. Suharto came to power. He departed during some of the deadliest rioting in Indonesia's history when sections of Jakarta were burned and vandalized. Mr. Wahid took office at a time of continuing violence and tension, his inauguration day marred by more riots and bloodshed.

But apart from a number of trouble spots where separatist, ethnic or religious conflicts continue, Indonesia has been growing slowly calmer after the upheaval of Mr. Suharto's ouster.

Today's transition was not trouble free, however. One person was injured in a bomb explosion, the latest in a string of bombings, most of them at churches, that have injured scores of people in recent days. As with much of the violence that has come and gone around the country, the motives for the bombings remained unclear. There was no way to know whether they were related to the politics of the day.

As Mrs. Megawati took her oath of office this afternoon, piles of congratulatory wreaths grew higher outside her gated residence, a sure sign that power had shifted and that there was a new leader to be courted. In the assembly, as one speaker after another lavished praise on Mrs. Megawati, other delegates heckled them with shouts of "There's another job seeker!"

In the parking lot outside, aides removed from her limousine the bright red license plate reading "Indonesia 2" and replaced it with another bright red license plate, this one reading "Indonesia 1."

Inside the presidential palace, far from the new center of power, a spokesman said Mr. Wahid ate a hearty lunch of soybean cakes and fruit, his usual meal, then took a rest. "At lunch Wahid laughed and joked," said the spokesman, Yahya Staquf. "Lunch was normal." Mr. Yahya said Mr. Wahid planned to stay on at the residence, convinced that he remained the rightful president.

Only hours before, shortly after midnight, Mr. Wahid had issued a decree suspending Parliament and calling for new elections. With no one left to carry out his orders, the decree was ignored.

But his spokesman said Mr. Wahid believed himself to be on a holy mission. "The president considers the decree he issued as a jihad to save the state," he said. It was a notion that seemed to make sense to few people besides Mr. Wahid himself.

Through much of his tenure, Mr. Wahid, a Muslim cleric and scholar, seemed out of step with his nation. As he appeared to lack a clear focus and lurched from one impulsive idea to another, the main impression he created was bewilderment.

At various times he took his country by surprise by suggesting opening diplomatic relations with Israel, legalizing the Communist Party and holding a referendum on separate statehood in the restive province of Aceh. All these ideas touched raw nerves here and all were dropped.

A brilliant intellectual, a committed democrat, a decent and charming man, Mr. Wahid clearly had high ideals for his country. But he appeared to have little capacity for putting them into effect. In the end, he remained as much a puzzle to his country as he was on the day of his election.

Woman in the news: Indonesia's daughter of destiny

New York Times - July 23, 2001

Seth Mydans, Jakarta -- When she was still something of a neophyte six years ago, Megawati Sukarnoputri spoke with wonder about the hard work of politics. The most difficult thing to learn, she said, was patience.

"It's only human that I have ups and downs," she said then. "I've had to train myself to remain clear and detached in the face of problems."

It is a surprising statement to read in retrospect. As every Indonesian now knows, patience is Mrs. Megawati's trademark. Patience, as one ardent follower said, is her shining quality. It is patience, after years of abuse and disdain at the hands of powerful men, that has finally won her the presidency.

Mrs. Megawati, 54, was elected today by Indonesia's Parliament to succeed Abdurrahman Wahid, whom she served as vice president for 21 months and whose offhand insults about the quality of her intelligence she suffered in stoic silence.

The daughter of Indonesia's founding president, Sukarno, she appears to have felt that it was her destiny eventually to inherit his mantle. But she remained detached from the fray, speaking rarely and shunning political gatherings.

Her passivity and sense of entitlement lost her the presidency in October 1999. As the leader of the dominant political party, she disdained compromise and deal making, only to be outmaneuvered by Mr. Wahid. She maintained her low profile as vice president, acting as neither ally nor opponent of Mr. Wahid. As the challenges to him grew sharper, her silences appeared increasingly statesmanlike.

"The political stalemate between groups and elites has reached a level of concern," she said in a rare speech earlier this month. "Everybody seems to use their own logic, while boundaries between democracy and anarchy seem to blur. We have to find ways to manage the current transitional process so it will not be the end of the nation."

Now that the transition has arrived, the question is the extent to which Mrs. Megawati is her own person and how much she is being used as a vehicle for political ambitions of all stripes.

Her presidency has been promoted by roughly the same coalition that blocked it in 1999. For her supporters, some analysts say, she is a convenient vehicle to power; her opponents hope she might be an easy target in advance of the next presidential election in 2004.

Though she is a Muslim, her moderate views and the fact that she is a woman have aroused opposition among some Islamic political parties.

Mrs. Megawati is an almost entirely symbolic leader -- as the bearer of the Sukarno name and as a representative victim of the abuses of former President Suharto, who resigned under pressure three years ago. When Mr. Suharto used violence to engineer her ouster as leader of a weak political party in 1996, he effectively made her a rallying figure for his opponents and set the stage for her presidential campaign.

Though she opposed Mr. Suharto, political analysts say, her beliefs and policies might not represent a radical change from the past. On the contrary, they could spell a weakening of the post-Suharto reforms that Mr. Wahid championed but undermined by his aggressiveness and disorganization. Most analysts expect that her administration will at least bring a degree of calm and stability after the erratic and impulsive tenure of Mr. Wahid.

Members of Parliament vowed to give her an easier ride than they gave her predecessor. But a number of public interest groups, who were among Mr. Wahid's last supporters, fear that her conservatism and her closeness to the military establishment could lead to a tightening of government control and an erosion of liberties.

As Mr. Sukarno's daughter, she seems to have set unity and preservation of the nation he founded as her priorities. She is expected to allow the armed forces to crack down hard on separatist movements, and she has spoken against an emerging policy of regional autonomy.

In a Megawati administration, human rights groups say, the strong current of reform that has freed the press and given free rein to public interest groups could begin to erode.

As a member of the conservative political establishment, she may slow the government's faltering moves to disenfranchise the corrupt elite that flourished under Mr. Suharto. Her administration is not expected to pursue vigorously the minimal steps that have been taken to call the military to account for past abuses, like the ruin of East Timor in 1999.

She appears to have assembled a strong economic team, although some of her advisers hold competing philosophies that still have to be reconciled. In general, her administration is expected to accept the dominance of the International Monetary Fund, which has poured billions of dollars into Indonesia since its economic collapse in 1997 in return for its commitment to establish rigorous economic policies.

With corruption one of the country's hot political issues, doubts have been raised over Mrs. Megawati's husband, Taufiq Kiemas, a wealthy businessman who is a powerful force in her party and who has been accused of shady deals and influence peddling.

Two years ago he played down his influence over his wife, telling an interviewer: "I'm her husband but I can't push her around. If you try to pressure her she fights back." He added, "If she were a political idiot I wouldn't have married her."

Opinions differ on that question. Not long ago, Benedict Anderson, an expert on Indonesia at Cornell University, dismissed her as "Miniwati." In a rare television interview last month, Mrs. Megawati herself addressed the issue. "It appears that I am considered to be a housewife," she said. "I say to those people who belittle housewives: What's wrong with that? It does not mean a housewife does not understand politics."

Mrs. Megawati was born on January 23, 1947, to Fatmawati, one of Mr. Sukarno's several wives, and her full given name is Dyah Permata Megawati Setiawati Sukarnoputri. The name Megawati roughly translates as Woman of the Clouds.

Mr. Kiemas is her third husband. The first, an air force officer, died in a crash. The second was an Egyptian diplomat. She has three children from her first marriage.

She entered politics only in 1993 as a member of Parliament in one of the two ineffectual opposition parties permitted by Mr. Suharto. Power brokers felt that a member of the Sukarno clan would carry political muscle; Mrs. Megawati was the last choice after her brothers and sisters declined the opportunity.

Indonesia's Megawati faces tough cabinet balancing act

Dow Jones Newswires - July 24, 2001

I Made Sentana, Jakarta -- Indonesia's new President Megawati Sukarnoputri faces a tough balancing act between building a workable political coalition and fulfilling hopes among financial market players to appoint economic technocrats, analysts say.

Outgoing president Abdurrahman Wahid, who was forced from power Monday in a vote by the national assembly, failed to get the balance right.

Wahid, who still won't leave the palace, was always either hamstrung by lawmakers refusing to pass his cabinet's policies, or forced into decisions that smacked of favoritism to politically-connected groups.

For the last six months, pressing economic reforms needed to reduce pressures on government coffers have gone on hold while Wahid spent most of his time trying to hang on to power.

Financial markets hope Megawati won't repeat the mistakes of her predecessor, and would instead use her popularity with lawmakers to help make tough economic decisions needed to restore foreign investor confidence, and get the International Monetary Fund to restart lending to the country.

But in a country notorious for its endemic corruption, analysts say pulling this off is going to require consummate political skill. "There are two things she must get. Firstly, national backing to survive and ensure Parliament support for her programs, and professional people to tackle economic matters," said Jusuf Wanandi, a respected political analyst at the Center for Strategic and International Studies.

Although part of Wahid's failure could be pinned on his often erratic decision-making which alienated lawmakers, his task was in some ways made difficult from the start due to the nature of politics in this country. Over three decades of iron rule under former president Suharto, which ended amid pro-democracy protests in May 1998, created a patronage system in which power was based on control of the spoils from corruption.

Now, Megawati faces the challenge of dismantling this system and going after the country's biggest bad debtors, while trying to hold on to the support of a political elite who fear this process will hurt their wealth.

Political factions clamor for cabinet posts

Pressures which Megawati will come under in forming her new cabinet are starting to show only a day after the national assembly voted her to power, ending Wahid's 21-month government. Under Suharto, and to some extent even today, cabinet positions hold huge power as they have the right to bestow political favors.

Political factions that were shut out of Wahid's government are now clamoring for Megawati to increase the number of positions in her cabinet so that no one is left out, local media reported Tuesday. Major parties have suggested Megawati form a cabinet comprising 34 ministers, more than the 25 ministers in the current cabinet, Media Indonesia daily reported.

Fears that patronage rather than proficiency will dominate Megawati's cabinet choices hurt Indonesian markets Tuesday after their strong rally a day earlier. Stocks ended down 2.6%. Some of the euphoria of the previous day's events are also fading for the rupiah, which ended 4% higher at 9,890 rupiah to the dollar, but off intraday highs. Investors are concerned that Megawati, much like Wahid, will bow to pressure from the country's politically- connnected businessmen not to push ahead with debt restructuring.

Rumors that Finance Minister Rizal Ramli -- who is said to be close to Megawati's millionaire husband Taufik Kiemas -- may keep his post in the new cabinet are stoking these concerns. Rizal drew criticism from the IMF among others for pushing through a number of debt restructuring deals seen as favoring powerful debtors, while putting the burden on the Wahid government. Such decisions pushed the fund to suspend its $5 billion lending program to Indonesia in December.

Megawati must stand against such pressures to get the IMF back, and recoup as much money as possible from debtors which the government helped through a massive $50 billion bailout after the 1997 Asian financial crash.

Indonesia's fifth president will also rely on Suharto's former ruling Golkar party for a majority in Parliament, given that her own Indonesian Democratic Party of Struggle, or PDI-P, has only a third of seats. Golkar's association with Suharto's corrupt regime could hurt any attempt by Megawati's government to discard the old politics of corruption, said Arbi Sanit a political lecturer at Universitas Indonesia.

As the first woman president in the world's largest Muslim country, Megawati may also face pressures from the United Development Party, a religious party which holds the third largest number of seats after PDI-P and Golkar, Arbi added.

Despite the pressure to bow to political realities, analysts say Megawati has to put appointing credible people as her top priority. "It won't be easy, but she has to make a choice," said political observer Andi Malaranggeng. "Professionalism is the prerequisite, and she has to pick the best people."

Among names on the markets' wish-list for the cabinet is economics professor Sri Mulyani, former head of the National Development Planning Board Boediono, and Megawati's economic advisor and former Citibank banker Laksamana Sukardi.

End of reforms, army return seen under Indonesia Megawati

Associated Press - July 23, 2001

Jakarta -- Indonesia's first leader, President Sukarno, was ousted from office 35 years ago by right-wing army generals. On Monday, Sukarno's daughter rose to the presidency on a wave of support from the military brass -- still this nation's kingmakers.

Several other groups that were part of the corruption-ridden, 32-year dictatorship of former President Suharto -- the five-star general who brought down Sukarno in 1966 -- also backed Megawati. These include Indonesia's powerful business elite, the state bureaucracy and the judiciary.

"This is very bad news for Indonesia's democratic reforms and for the concept of civilian supremacy over the military," said John Roosa, a historian specializing in Southeast Asia.

The army's support for Megawati in the political struggle to replace Wahid -- strikingly demonstrated when they deployed nearly 100 tanks around the presidential palace Sunday -- may enable them to regain the pre-eminent position they held during the dictatorship.

This isn't the hopeful vision of a new Indonesia that emerged when Suharto fell. In the heady days of June 1999, after huge pro-democracy protests and riots forced Suharto from office, "Reformasi," -- Reforms -- became the rallying cry for Indonesians ecstatic with their new democratic experiment.

The military, seen as Indonesia's most corrupt institution and accused of bloody human rights abuses in East Timor and elsewhere, appeared on the verge of losing legitimacy.

Megawati was in the forefront of the reform movement. Her family pedigree and the fact that Suharto's thugs attacked her party's headquarters in 1996 to remove her as its leader made her a hero and natural candidate for president.

Her Indonesian Democratic Party of Struggle won the largest share of votes -- mainly from poor and working class voters -- in democratic elections in 1999, but failed to achieve a clear majority. Inexplicably, Megawati demonstrated no interest in the electoral college which picks Indonesia's presidents. Her passivity allowed a coalition of other groups, many of them holdovers from the Suharto regime, to sideline her and elect Wahid in October 1999.

The moderate Muslim cleric wasn't expected to deliver significant reforms. But once he became head of state, Wahid angered his backers by moving tentatively to eliminate the corruption that marked Suharto's regime.

The government prosecuted several of Suharto's wealthiest cronies and even attempted to bring charges against the aging dictator himself. Wahid also tried -- but eventually backed off -- to replace the military brass with reformist generals advocating civilian control over the armed forces.

In April last year, the only human rights trial of soldiers in Indonesian history ended in 24 convictions for the massacre of dozens of students at a religious school in Aceh. Although most of Wahid's initiatives fizzled, they earned him the loathing of the military and business oligarchies, which gradually switched their support to Megawati.

In the meantime, the vice president had done little to formulate a cohesive political platform. Her rare public speeches were full of nationalist exhortations and nursery rhymes but short on substance.

She had nothing to do with the running of the government and quietly evaded Wahid's request to mediate in peace talks between warring Christians and Muslims in the Maluku islands. "This is somebody who would normally be considered completely incompetent to be a politician," said Roosa, a postdoctoral fellow at the University of California at Berkley.

Megawati is widely seen as lacking intellectual ability and being heavily influenced by her millionaire husband, Taufik Kiemas, and a coterie of advisers. Kiemas has established an armed party militia commanded by Eurico Guterres, a notorious army-backed paramilitary leader from East Timor wanted by the UN on charges of war crimes.

Megawati's advisers include Arifin Panigoro, an oil baron and former Suharto crony, who as her party's parliamentary chief has worked hard to forge a coalition with the generals and tycoons.

"She thinks it is her birthright to be president and will enjoy the glory associated with it, but others will be running things for her," predicted George Aditjondro, a University of Newcastle professor and a leading expert on corruption in Indonesia.

Aditjondro said Megawati will be a mere figurehead for the military and the oligarchies that benefitted from association with Suharto. "I foresee a pessimistic future. We'll probably see a rotation of short-term presidents, while the military makes sure that there are no serious trials for corruption or human rights abuses."

Ordinary Indonesians the losers as dreams of democracy fade

Sydney Morning Herald- July 23

Louise Williams -- As the torturous "death watch" over the presidency of Abdurrahman Wahid draws to a close his raucous political opponents will be able to claim only the most hollow of short-term victories.

For the people of Indonesia the demise of their first democratically elected president in more than three decades must represent a profound loss. The immediate winners will be the power elite of old, the Machiavellian players who honed their skills under the tutelage of the former authoritarian leader Soeharto.

The losers all those ordinary Indonesians who believed Soeharto's dramatic fall three years ago would represent the dawning of a new era; one in which a democratically elected government would finally deliver the justice, peace and accountability they craved.

Even if a last-minute "face-saving" compromise is found that sees Wahid resign but stay on in some kind of "wise old man" capacity massive damage has already been done.

The euphoria over Soeharto's fall in May 1998 and the optimism of the largely peaceful national polls of the following year have long evaporated. The reality is, the long and complex process to remove Wahid from office that began at the start of this year had political power as its driving force.

Ostensibly, Wahid was to be called to account over corruption claims that would lead to his scheduled impeachment on August 1. However, on May 29, the Attorney-General cleared him of any personal involvement in the two scandals. His political opponents decided to push ahead anyway, accusing him of incompetent and erratic leadership instead.

Many of those pushing for Wahid's impeachment have links to the former Soeharto regime and the military. Others have long opposed Wahid, such as the parliamentary Speaker, Amien Rais, emerging now to claim Wahid will be dragged off in chains if he refuses to leave the presidential palace.

As often happens when a dictator falls, the disparate political groups that formed a powerful bloc in opposition disintegrate into squabbling factions when power is finally up for grabs. At the same time there is never any shortage of rats who fled the ship before it sank, eager to be rehabilitated into the power elite under a new banner.

The Indonesian political quagmire is sinking under the ambitions of too many individuals, with too little regard for the cost of political infighting in a poor, fractured nation. Throughout the slow tightening of the noose around Wahid's neck Indonesia has slid further into paralysis.

From increasing violence in the northern breakaway province of Aceh, where 21 separatists were reported killed this weekend alone, to the unchecked logging of national parks and the nation's few remaining tropical rainforest, the absence of effective Government is taking its toll. The tragedy is not the fate of any individual politician, it is the beggars on the streets, the run-down schools, the lousy health services and the everyday violence over petty insults and crimes of opportunity.

Detractors blame Wahid personally for failing to implement any real policies. But, in truth he has been unable to make headway in crucial areas such as prosecuting military officers over atrocities in East Timor or negotiating peaceful settlements with independence movements in Irian Jaya or Aceh, because powerful forces in the military would not allow him to do so.

Ironically, even Wahid's threat to declare a state of emergency could not succeed because as President he did not have the obedience of the armed forces. His removal will merely shift the political battleground but will not directly address the critical economic and social problems that continue to overwhelm the world's fourth most-populous nation.

Vice-President Megawati Sukarnoputri will inherit a nation beset by economic woes, violent separatist conflicts, rampant environmental destruction, widespread lawlessness, corruption and human-rights abuses. There may be little honeymoon for Megawati when she takes office as political parties begin jockeying for dominance in advance of the next election in 2004.

The problem with Indonesia, says a new group of young ideologues, is that of political power itself. Without a commitment to the common good, the revolving door will keep turning, with many of the same old faces going in and out in the name -- but not the spirit of -- democracy.

Tanks roll out in Jakarta

Agence France Presse - July 23, 2001

Jakarta -- The Indonesian armed forces yesterday staged one of the biggest show of force seen in the capital in years. Another convoy of 40 armoured vehicles of the Jakarta military command also converged on the central square from East Jakarta.

A convoy of tanks and armoured vehicles made its way from the marine headquarters in South Jakarta to the sprawling central square opposite the presidential palace for a roll call organised by the army strategic reserve command, Kostrad.

One officer said the operation was aimed at "safeguarding the special session of the MPR". Twenty of the Kostrad vehicles faced their cannons towards the palace.

A chronology of Wahid's 21 months in power

Agence France Presse - July 23, 2001

Jakarta -- Indonesian MPs Monday opened a special session which could impeach President Abdurrahman Wahid, even though he issued a decree disbanding parliament. Following is a chronology of his 21 months in power:

1999

Oct 20: Wahid, a moderate Muslim scholar, is elected president by the People's Consultative Assembly (MPR), defeating Megawati Sukarnoputri, who is elected vice president the next day

Oct 26: Wahid appoints a 35-member "rainbow" or "unity" cabinet, which later reopens a corruption probe into former president Suharto.

2000 Feb 1: Wahid urges security minister Wiranto to resign over his involvement in East Timor violence, dismissing him 12 days later.

April 24: Wahid orders two of his economic ministers to resign.

July 20: Wahid answers a summons from parliament, but refuses to explain why he fired two ministers in April.

Aug 9: Wahid bows to intense pressure and pledges to hand responsibility for the day-to-day running of the government to Megawati.

Aug 19: The lower house says it will probe two financial scandals dubbed Bulogate and Bruneigate, the latter involving the receipt of a two million dollar gift from the Sultan of Brunei.

Oct 20: Police arrest Wahid's former masseur Alip Agung Suwondo for his alleged role in the Bulogate scandal.

Oct 28: Police clear Wahid of hand in the Bulog scandal.

2001

Jan 30: Parliament committee finds Wahid "may have been" implicated in Bruneigate and Bulogate, but offers no proof. Wahid denies guilt.

Feb 1: Parliament censures Wahid over Bruneigate and Bulogate, gives him three months to reply, or face a second censure.

March 28: Wahid replies to parliament over censure.

April 29: Thousands of Wahid supporters rally in Jakarta and East Java.

April 30: Parliament votes to censure Wahid for a second time.

May 28: Wahid warns of emergency. Attorney general says no evidence against Wahid in two scandals.

May 29: Wahid sends belated censure reply to house. Violent pro- Wahid demonstrations in East Java

May 30: Parliament votes to ask the national assembly to hold an impeachment session. One Wahid loyalist is killed in police shooting in East Java.

May 31: Deputies announce a special impeachment session for August 1 a day after 4,000 of his supporters invade parliament.

June 1: Wahid resuffles cabinet, sacks his top security minister and attorney general and suspends the police chief

June 12: Wahid reshuffles the cabinet, replacing his two most senior economic ministers.

July 3: Attorney General Baharuddin Lopa, the man at the forefront of the battle to save Wahid from impeachment, dies of heart failure

July 6: Wahid again threatens to declare a state of emergency

July 9: Wahid sets a July 20 deadline for compromise after major political parties snub his invitation for talks

July 10: Wahid reshuffles the cabinet for the third time in 40 days.

July 13: Vice President Megawati says impeachment hearing unavoidable. Wahid announces that if no compromise is found, he will declare a state of emergency on July 20, allowing him to dissolve parliament.

July 20: Wahid names a new police chief without parliamentary support and sets a new deadline for ending efforts to impeach him of July 31.

July 21: The MPR summons the president to appear on July 23 to give an account of his 21 months in power.

July 22: Wahid reaffirms that he will not resign and says he considers the MPR session illegal.

July 23: MPs go ahead and open a special impeachment hearing despite a decree from Wahid disbanding parliament.

Jakarta takes crisis in its stride

South China Morning Post - July 23, 2001

Vaudine England, Jakarta -- Despite two bombs in the morning and a gathering of forces for a major political showdown today, it was hard to find signs of concern outside Parliament building yesterday afternoon.

Admittedly, that was before President Abdurrahman Wahid's decree ordering parliament dissolved, and before armed forces staged a show of might with a convoy of tanks and armoured vehicles driving through Jakarta and then gathering opposite the presidential palace.

One officer said the operation was aimed at "safeguarding the special session" in which Parliament was expected to impeach Mr Wahid. Whether the impeachment proceedings will go ahead appears to now rest with the military -- and where there loyalties lie.

Even so, life in the capital prior to the announcement was running pretty much as normal. Notwithstanding the military hardware on the streets and reports of a tension-racked city and fears of violent demonstrations, Jakartans were doing what they usually do on a Sunday -- shopping in the malls, playing soccer or drifting from one food stall to another.

"Sudah Biasa", meaning "already normal", was the reply from drivers, vendors and people who hang out on street corners, when asked about their country's allegedly dire political straits.

In the three years since the fall of former strongman president Suharto, these people have been used to scenes of mass protest and groups of heavily armed police.

"Those politics are not for us, we just wait and see," said a drinks vendor parked in front of Parliament building. He is determined to protect his strategic spot in the front line, sometimes caught between rows of police with tear-gas and hordes of protesters at the gates. He said the periodic convulsions in the nation's leadership were good for business.

Inside the Parliament complex, extra police were practising routines by driving their motorcycles around the compound's large fountain. Workmen were busy tidying the grounds and the sweet smell of freshly cut grass hung over the parked tear-gas trucks and a group of police on horseback exercising their animals.

Even the sight of the Indonesian flag flying at half-mast did not symbolise the death of Mr Wahid's presidency. It was merely a sign of respect for a recently deceased MP.

Next to the Parliament building is the Taman Ria entertainment complex where paddle boats take day-trippers around an artificial lake. Under the nearby flyover, police rested their plastic shields and batons, eating and calling out to passers-by for kicks. The next building is the Convention Centre and here the lack of concern of the middle and upper classes was most evident. Even though a contingent of armed soldiers slept under the eaves of the complex, a steady stream of cars dropped off patrons of the annual Indonesian Automotive Show.

Inside the exhibition, where speakers blasted out "welcome to paradise", it was chaos of a different kind from that predicted by politicians. Disco music blared inside from competing stands where people wondered about buying a new four-wheel drive or a brand new "vintage" Vespa motorcycle.

"This is entertainment, we are here for the fun. We don't care about politics," said a father of three girls who was checking out the Honda saloons with his wife.

Babies tied in sarongs by uniformed maids surrounded another extended family group heading toward the lavish Jaguar stand. They had already ignored the flashing lights and ear-crushing noise of a talk show performance at the stall for Honda and had eyes only for the sleek British limousines which cost around US$110,000.

Staff at the Jaguar stand had run out of brochures for the S-type Jaguars, but sales manager Welly Oka was unconcerned. "The crisis is only for politics, the economy is already good," he said.

The rampant consumerism on display is in stark contrast to the genuine mass involvement in demonstrations which helped bring down Suharto in May 1998. Then, the middle and upper classes donated food and drink to embattled students on the streets and set up second-hand stalls to sell off their own possessions when the economic crisis began to bite.

Now, the hard-won freedom of expression and open politics is taken for granted, almost as part of the passing parade, while the daily priorities of rearing families and having a good time come to the fore.

Human rights/law

Megawati absent as supporters mark anniversary of party tragedy

Agence France Presse - July 27, 2001

Jakarta -- Indonesia's new president Megawati Sukarnoputri stayed away Friday from the commemoration of a 1996 brutal military- backed raid on her party's former headquarters, which left at least five dead and scores missing. Megawati spent her fifth day as president travelling to West Java and Central Sulawesi instead.

But hundreds of veteran supporters of the Indonesian Democratic Party of Struggle (PDIP), formerly the PDI, gathered at the old headquarters in central Jakarta.

They were marking the fifth anniversary of the raid, hailed as the baptism by fire of the country's democracy movement during the last decade of the 32-year-long Suharto dictatorship.

On July 27 1996 thugs and riot police stormed the building after hundreds of Megawati supporters, protesting her government- engineered removal from the leadership of the then chief opposition party, refused to vacate to make way for the government-installed leader, Suryadi.

A government-orchestrated party congress held in June 1996 by a splinter PDI faction ousted Megawati, who had led the PDI since 1993. The raid sparked riots in which five people died and more than 100 were injured. Witnesses claim many more supporters were killed and that over a hundred are still missing.

It also catapulted Megawati into the spotlight as the symbol of opposition to then president Suharto, whose dictatorship was brought down two years later.

"This was the start of the democracy struggle. The collapse of the Suharto regime began here," said Dharmanto, a supporter who survived the raid. "We were all here, making speeches just like today when we were atacked. I watched my friends being stabbed." Megawati was elected president on Monday by the national assembly as it impeached Abdurrahman Wahid.

The move came 21 months after Wahid snatched the presidency from her despite her party's victory in the country's first democratic elections in May Megawati's elevation to the presidency on Monday marked not a victory for the party, but "a victory for the people," Dharmanto said.

He and fellow supporters marking the raid's anniversary said Megawati's absence was "understandable". "Mrs Mega belongs to all Indonesian people now, not just us," Dharmanto said.

Supporters clad in the party's red and black colours laid flowers on the floors of the now-empty building and made speeches, beneath signs demanding the prosecution of the perpetrators of the raid. "Who will take responsibility for solving the 27th of July tragedy?" read one. "Arrest and try the masterminds of July 27," read another.

Wim Tulis, 62, a supporter arrested during the 1996 raid and thrown into jail for over four months, said he had one message for Megawati. "Don't forget the July 27 tragedy. Don't forget the promises she made when we were in jail, that she would never forget us." Thomas Resmol, also jailed after the raid, said prosecution of the case should be Megawati's first priority. "We want to know where all our missing friends are," he said.

"If they are dead and buried, show us where their graves are. If they are still in jail, show us the prisons." Indonesian police last year named 12 military and police officers and 10 civilians as suspects, but there have been no prosecutions.

PDIP secretary general Sucipto said the party had not abandoned the case. "It's still in process in the courts," he told AFP. "We're waiting for the results." Resmol was pessimistic however that any of the military officers named suspects would ever be prosecuted. "Mrs Megawati is part of the government now, she is one of the power-holders. She needs the military. She cannot afford to bring any generals to court."

News & issues

Indonesian journalists don't want Info Ministry reopened

Straits Times - July 28, 2001

Jakarta -- Indonesian journalists are mounting a campaign to dissuade new president Megawati Sukarnoputri from re-opening the Information Ministry, closed by her reformist predecessor Abdurrahman Wahid in 1999, local media reports said on Saturday.

The Jakarta Post said dozens of journalists staged a rally in front of the old information ministry building in central Jakarta on Friday. They decried the rumoured move as an attempt to reimpose controls on the freedom of the press.

Under the 32-year rule of former president Suharto, the information ministry closed down critical newspapers and magazines including the leading national news weekly Tempo. Tempo publisher Fikri Jufri told AFP on Saturday that he thought it was possible that Ms Megawati might change the plan if the opposition among the press was strong enough.

Suspicion rife over judge assassination

South China Morning Post - July 28, 2001

Associated Press in Jakarta -- Police in the Indonesian capital were yesterday questioning 18 witnesses and working with intelligence agencies to determine whether deposed president Suharto's youngest son was involved in the assassination of a prominent judge.

"There is no proof of that. It's only speculation," said Hutomo "Tommy" Mandala Putra's lawyer, Erman Umar, adding he had not seen his client since November.

Thursday's assassination of Supreme Court justice Syaifuddin Kartasasita came just eight months after he sent Hutomo to prison for corruption.

Police spokesman Lieutenant Colonel Anton Barul Alam said detectives were also looking into whether Mohamad "Bob" Hasan, a millionaire businessman and Suharto crony -- whom Syaifuddin sentenced earlier this year to six years in jail on a remote penal island -- was linked to the killing. "As a judge, there were many people who did not like him," Colonel Alam said.

Four men on motorbikes rode up alongside a vehicle driven by Syaifuddin, Indonesia's second-most senior judge, on Thursday, and fired four shots, fatally wounding the 61-year-old.

Most newspapers yesterday described the judge as one of a rare breed among Indonesia's graft-ridden judiciary -- a man who was personally incorruptible. However, the Koran Tempo newspaper reported allegations that the dead judge had taken bribes in an unrelated case.

Syaifuddin was the presiding Supreme Court judge who sentenced Suharto's son last September to 18 months in jail for his part in a multimillion-dollar land scam.

Using legal stalling tactics, the millionaire playboy was not jailed immediately and disappeared in November when an arrest warrant was issued. Since then, Hutomo has been blamed for several outbreaks of violence that have stirred tensions in crisis-ridden Indonesia.

If the judge's killing "is not solved quickly, we are in deep trouble. It sends a clear message that one can get away with attacking law enforcement," said former attorney-general Marzuki Darusman.

Seven senior officers arrested in Indonesian police cleanup

Agence France Presse - July 24, 2001

Jakarta -- Indonesian police authorities have arrested seven of their own senior officers and are hunting down another one in what appeared to be a clean up of the force following Abdurrahman Wahid's sacking, police said Tuesday.

The seven senior commissioners were arrested Monday on charges of trying to incite people, especially police, to obey a decree issued by Wahid in the last hours of his presidency, national police deputy spokesman Senior Commissioner Edward Aritonang told AFP. Another senior commissioner, Alfons Loemau, has been summonsed but has yet to appear, Aritonang said,

The Suara Pembaruan evening daily quoted police spokesman Inspector Generalb Didi Widayadi as saying that Loemau had been declared a fugitive and was being sought by the military police and the police intelligence unit. "It is hoped that he can be arrested this week," Widayadi said.

Aritonang said the arrest order was issued by General Suroyo Bimantoro who has refused to step down as national police chief since he was sacked by Wahid June 2. He identified the seven senior commissioners as Bambang Widodo, Parlin Sinaga, Banjar Nahor, Solikin, Herman Koto, B. Hidir and Nurdin Umar.

Wahid, battling mounting pressure to impeach him, on Monday morning issued a decree, "freezing" the lower and upper house of the parliament, freezing the opposition Golkar Party and calling for snap elections to be held within a year.

The decree also ordered the armed forces and the police to halt a special session of the upper house convened to impeach the president.

But Jakarta Police Commander Inspector General Sofyan Jacoeb immediately issued orders to his troops to disregard the decree, and Bimantoro later Sunday took over operational command of the police from the temporary police chief appointed by Wahid on Saturday.

The military and lawmakers also ignored the decree and continued their session which led to Wahid's sacking and the appointment of vice president Megawati Sukarnoputri to replace him.

Bimantoro was the first guest to meet with President Megawati on her first day in office. He was accompanied by seven other top police generals and carried the police chief's command baton which he had refused to hand over to his deputy.

Wahid, when dismissing Bimantoro on June 2, accused him of trying to create a split between him and Megawati, a charge which the then vice president had denied.

No sign of feared exodus as majority of Chinese stay put

South China Morning Post - July 23, 2001

Vaudine England, Jakarta -- Chinese sports officials have decided to withdraw their badminton team from next week's Indonesian Open Championship, citing the unstable political situation in the capital.

But staff at the international airport's Singapore Airlines counter, where almost hourly flights to Singapore are available, said their passenger load was the same as usual yesterday and there were no signs of panic.

The Indonesia Badminton Association insisted there was no need to fear coming to Jakarta, and guaranteed all participants would be safe.

At the Bendungan Hilir market, dominated by Chinese traders selling electronics and washing machines, the afternoon crowds shopped as usual and extra security, if planned, was not in evidence.

Chinese in Indonesia have good reason to fear political chaos, as they have often been the butt of violence in the past. In 1998, gangs of soldiers and plain-clothes operatives encouraged the looting and destruction of ethnic Chinese businesses across the capital. Scores of Chinese women were raped. For many, the trauma of that time has not gone away.

State news agency Antara reported that most people leaving on flights from the Soekarno-Hatta airport near Jakarta were Indonesian Chinese. They were heading to Singapore, Taiwan, Australia and the United States, or choosing to stay in the country but flying to Bali, Sulawesi or Sumatra.

"It's better to leave town rather than be in Jakarta during the special session. I feel more secure [outside the capital] and at the same time can do some business," 47-year-old Lim Han Juan, an electronics trader at Glodok, central Jakarta, told Antara.

The agency found others who had chosen to bring forward holiday plans because of the special session of the People's Consultative Assembly. Cahyanto Halim, 46, and Santoso, 39, both said they and their families were still traumatised by the bloody riots of mid-May 1998. The pair said they were planning to head to Hong Kong for a break.

But while some residents thought it was time to leave town, many more are clearly confident enough not to bother. Airport officials confirmed there was no rush on flights and the situation at the airport was normal. One official said proudly that flights were always normal, and had stayed on schedule even during the height of the 1998 crisis. "It's different now, no problem," the official said.

Arms/armed forces

US keeping an eye on military in Indonesia

Reuters - July 26, 2001

Hanoi -- The United States is watching the Indonesian military closely after the rise to power of President Megawati Sukarnoputri. Its officials have yet to decide whether to increase limited ties with Jakarta's armed forces, according to a senior US State Department official.

The official told reporters travelling with US Secretary of State Colin Powell to Vietnam yesterday that Indonesia's army was backing Ms Megawati. He said that while the army had been part of major problems in Indonesia, it could also be part of solutions there.

The US had been considering increasing very low-key, military-to-military contacts with the world's fourth most- populous country. The official, who declined to be named, suggested that such a move would depend on how the military behaved.

"It really depends on how the Indonesian military responds on transparency, on accountability for some of the things of the past and on the quality of their crackdowns or lack of same in contentious issues," he said.

Due to restrictions imposed by Congress, the US is permitted only limited contact with the Indonesian military. The White House, under President George W. Bush and former president Bill Clinton, has been very restrictive in allowing such ties. Those ties are limited to humanitarian and disaster relief exercises, such as a recent visit by US Marines who helped to paint a school in Indonesia.

US defence officials are anxious to re-establish solid ties with the Indonesian military, but they want to make sure that the military remains under the command and control of a democratically elected civilian leadership.

"Although the US supports the territorial integrity of Indonesia, we certainly don't support some sort of harsh military crackdown in a place like Aceh or ... Irian Jaya," the senior State Department official told reporters.

International relations

Sparks of warmth and spontaneity as Howard telephones new leader

Sydney Morning Herald - July 28, 2001

Craig Skehan -- The Australian Prime Minister, Mr Howard, said yesterday he was impressed by the "warmth and spontaneity" of an invitation for him to visit Indonesia from the nation's new President, Ms Megawati Sukarnoputri, when he spoke to her by telephone.

Ms Megawati was thought to have harboured resentment over Australia's role in the separation of East Timor from Indonesia. It was Mr Howard who, in the aftermath of the 1998 fall of president Soeharto, suggested an act of self determination in East Timor.

Mr Howard said yesterday that he spoke to Ms Megawati on Thursday evening to congratulate her. They had agreed their respective governments had "worked through" difficulties over East Timor, he said.

Australia has been urging Indonesia to prosecute senior military officers involved in atrocities in East Timor. However, there are serious doubts that Ms Megawati will do so, given her longstanding opposition to East Timor's independence and military backing for her election as president.

Mr Howard said he had "quite an amiable" conversation with Ms Megawati. "She invited me to visit Indonesia at an early date, and I'm going to give consideration to whether that's possible.

"She was obviously very anxious at a personal level to see the relationship between the two of us in the context of the future and not in the context of the past.

"I thought the discussion, both that it took place and the tone of it, and the warmth and spontaneity of the invitation, all of those things boded well for the future."

Will US resume aid? that depends on Jakarta

New York Times - July 24, 2001

In the months leading up to President Abdurrahman Wahid's removal as president yesterday, American State Department officials and the National Security Council developed a contingency plan that calls for the quick resumption of economic aid to Jakarta if his successor, Megawati Sukarnoputri, begins to carry out economic reforms.

"Things have been essentially frozen because of the incompetence of the Wahid government," one senior American official said. "Now the question is whether Megawati can execute promises that Wahid could not."

But the question, American officials say, is complicated by fears that Mrs. Megawati may use force to put down separatist movements. Several American officials have said in recent weeks that they are worried that the new president, to secure her position, will show less restraint when it comes to dealing with challenges to Jakarta's authority.

In recent months, the major International Monetary Fund program in Indonesia, begun during the Asian financial crisis, has essentially been in a state of suspension. Many private investors have fled. One senior IMF. official recently said, "We can't operate there efffectively until there is a government we can communicate with."

Speaking yesterday in Rome, where she was traveling with President Bush, Condoleezza Rice, the national security adviser, said, "It is ours to try now to support the decision of the Indonesian people through their properly elected representatives." But she was not specific about what form that support might take.

She said she would urge the new government "to find peaceful ways to resolve the separatist tentions within Indonesia, to be respectful of human rights in doing so, and to really undertake economic reform in a very aggressive way."

Economy & investment

Indonesian markets cautiously hail vice president

Reuters - July 26, 2001

Jakarta -- The Indonesian rupiah spiked to around 9,800 to the dollar on Thursday and the stock market gained 1.40 percent, welcoming Muslim politician Hamzah Haz as the country's new vice president.

Dealers said the United Development Party (PPP) chief was a safe choice in the predominantly Muslim nation and would be a healthy balance to President Megawati Sukarnoputri's nationalist views.

But former top security minister Susilo Bambang Yudhoyono, one of three candidates for the post, was the preferred choice, they added.

The frail currency strengthened to 9,750 per dollar, anticipating Haz's victory but later cooled to 9,850. By 0735 GMT it was quoted at 9,900/10,000. The composite Jakarta stock index hit a high of 453.839 points in the morning session. By 0735 GMT, it was up 0.06 percent at 447.915 points.

Some enthusiastic dealers were eyeing 500 points as a near-term target. "It's time to buy now -- the market is going to react more positively and I think to break through through the 500 mark won't be difficult," said Suhendra Setiadi, from leading retail brokerage Trimegah Securities. "Hamzah Haz can help Megawati's relations with the Islamic groups," he added.

The country's financial markets have been on an adrenalin rush since Megawati was elected the country's fifth president by the top legislature on Monday.

Her rise is expected to end months of uncertainty under Abdurrahman Wahid whose erratic ways caused constant pain for the markets, still struggling to recover from the economic crisis of the late 1990s.

But the honeymoon period could come to an abrupt end if her cabinet line up does not impress or her leadership falters. "It's [Haz's appointment] positive for the market but I think serious foreign investors will still wait to see what Megawati does next," said Michael Chambers, HSBC Securities' head of sales.

"[But] I'm still optimistic about the market. It is still very cheap in terms of valuation and of course all the gains won't happen in one day." Politicians and analysts are urging the taciturn Megawati to announce a cabinet quickly and begin the mammoth job of dragging the world's fourth most populous nation out of crisis.

World Bank welcomes Megawati's appointment

Agence France Presse - July 26, 2001

Jakarta -- The World Bank yesterday welcomed the appointment of Ms Megawati Sukarnoputri as Indonesia's new president, and urged her to assemble a strong economic team to tackle the country's daunting problems.

"This is a time of great challenge and opportunity for Indonesia," bank president James Wolfensohn said in a statement two days after Ms Megawati's appointment.

"President Megawati's government faces the daunting task of rebuilding the economy, tackling corruption and reducing the poverty facing many Indonesians," said Mr Wolfensohn, who sent a congratulatory letter to the new leader.

He expressed confidence that with persistent effort, Indonesia would prosper under Ms Megawati's leadership, saying the bank looked forward to working closely with her new economic team, which has yet to be announced.

The World Bank's Indonesia manager, Mr Mark Baird, said the peaceful transfer of power "heralds a period of greater political stability" and was good news for the market and investors. "The key now will be to seize this opportunity to push ahead with urgently-needed economic and institutional reforms," he said.

The World Bank is one of Indonesia's largest foreign creditors. The country's overall outstanding overseas debt stood at US$140.2 billion as of January, comprising $74.2 billion in sovereign debt and $66 billion in private- sector debt, according to the central bank.

External factors rule Indonesia's economic destiny

Reuters - July 24, 2001

Hong Kong -- Megawati Sukarnoputri may well put Indonesia on the path to political stability, but even then it may not be smooth enough to tempt back emerging market investors whose sentiment is soured by external volatility.

"The external environment is so difficult for emerging markets it is really imposing limits on what they can deliver on economy," Sean Darby, head of Asian equity strategy at Dresdner Kleinwort Wasserstein in Hong Kong, told Reuters. "Even though there's a change of leader, their destiny probably isn't under their control at the moment," he said.

The hugely popular Megawati was named President of the world's fourth most populous country on Monday, replacing Abdurrahman Wahid after he was sacked for incompetence by Indonesia's top political assembly.

Daughter of the nation's founding father, Sukarno, and head of the biggest party in the Indonesian parliament, Megawati is seen by many among the country's 210 million people as the person best positioned to return stability to the strife-torn country.

But popularity alone is insufficient to steer a steadily improving course for impoverished Indonesia, as global volatility sparked by a financial crisis in Argentina has plunged emerging market assets into their worst turmoil in three years.

This has struck at the same time as economists have pared down their estimates for US economic growth this year and pushed back their forecasts for a recovery further into 2002. "Indonesia still has a big issue with external funding at a time when the sovereign financial markets are very delicate, particularly towards lower rated countries," Darby said.

Indonesia is the worst-rated economy in Asia, downgraded to CCC- plus in May by Standard & Poor's because of its inadequate fiscal adjustment, political instability, institutional weakness and heavy public indebtedness, among other factors. At best, the political instability may be on the brink of resolution, but that leaves plenty for the country's new leader to tackle and a population whose patience is wearing thin.

Core problems remain

"Short term there's probably more upside for currency, but the reality is that the core problems are still there. The outlook for the next three to six months is tough," Nicholas Bibby, regional economist at UBS Warburg in Hong Kong, said.

The enormity of the task ahead was sinking into Indonesian markets on Tuesday after rallying sharply in expectation of a change at the top on Monday.

The Jakarta stock market (JKSE) gave back all the gains it had made the previous day, a 55 basis point rally on bond spreads petered out and the battered rupiah currency gave up the fight at the 9,900 rupiah level to the dollar after gaining about 10 percent as it spurted to four month highs.

The country's dollar bonds are the worst performing in Asia this year as is the currency, excluding Japan's yen, while stocks have seen portfolio inflows evaporate. "The new government is going to have to address the faults of the banking sector, issues of corporate governance and also the disposal of [state controlled] assets," Bibby said.

Those are key factors in rebuilding Indonesia's relationship with the International Monetary Fund, which is vital to Paris Club lenders rolling over the country's debts, which in turn will serve to underpin the confident return of foreign investors.

"A stable political environment is certainly the best thing for an improvement in the economy," Craig Chan, financial markets economist at ING Barings in Hong Kong said. "What we need to see now is the appointment of a vice president and finance minister who can help create the stability that Megawati and Indonesia clearly need," he said.

The reduced political risk premium on Indonesia and the expectation of a resumption of IMF lending should help the central bank ease interest rates which have been on an upward trend.

But even that will not turn Indonesia into Asia's investment outperformer while regional currencies are trending weaker against the US dollar and stock markets sag lower. "The biggest problem is that Indonesia is just not on the radar screens.

Even if we saw a sharp upward movement, it's not the sort of market where people would feel they had missed the boat. It would have to go on a lot longer for that to happen," Dresdner's Darby said.