East Timor

Indonesia to halt humanitarian aid to East Timor refugees

Agence France Presse - October 28,2001 (slightly abridged)

Jakarta -- The Indonesian government has decided to halt humanitarian assitance to East Timorese refugees in West Timor at the end of the year, a senior minister said in remarks published Sunday.

Coordinating Minister for People's Welfare Yusuf Kalla said that from December 31 the government will only provide capital loans to refugees to start up businesses, the Kompas daily said. The loans will have to be paid back by the refugees, who have been in Indonesian West Timor since fleeing post-ballot violence in East Timor in 1999, he added.

"The internationally recognized period [for assistance] is only two years. The East Timorese refugees have been here for over two years and therefore we will halt the assistance packages," Kalla said in Kupang, the main city in West Timor. The Indonesian government has provided rice and small sums of money to East Timorese refugees.

Kalla said East Timorese refugees still on Indonesian territory now faced two options -- to take part in a government resettlement scheme within Indonesia or to return to East Timor.

The cash-strapped Indonesian government has been keen to get the refugees repatriated and close down the camps as soon as possible. But Kalla said there had been no intimidation of refugees or efforts to make them return home. "There is no intimidation or terror actions to force refugees to return home," he said.

Disputes threaten lucrative Timor Gap pipeline

Financial Times - October 24, 2001

Virginia Marsh -- If all had gone to plan, divers would now be laying a pipeline along the seabed linking Darwin to the substantial gasfields off its shores and a decades-old dream would be close to becoming reality.

Instead, the Northern Territory government and several big oil companies are scrambling to prevent the collapse of projects worth up to US$8 billion that would generate -- from a city some said should be abandoned just 25 years ago -- substantial export earnings for years to come.

"Make no mistake, the development of an oil and gas industry here is the most significant opportunity the Top End [Northern Territory] has ever seen," says Clare Martin, the territory's new chief minister.

But if progress is not made in the coming weeks, Methanex, the Canadian chemicals group that hopes to build the world's biggest methanol plant in Darwin, and El Paso, the US energy group that intends to buy up to A$7 billion worth of local gas, have threatened to take their business elsewhere.

The two groups are cornerstone customers for the first two gas fields to be developed in the resource-rich Timor Gap that separates Australia and East Timor. Together, the fields -- Bayu-Undan and Greater Sunrise -- have estimated reserves of 12,600 billion cubic feet with the first gas, from Bayu-Undan, due on shore in 2004.

Two events, however, have blown the long-held plans off course. First, East Timor unexpectedly announced in July plans to raise up to US$500 million in extra taxes from the developments, plans that Australia and the oil companies say go back on earlier commitments.

Bayu-Undan lies wholly within an area operated jointly by the new state and Australia, while about 20 per cent of Sunrise falls in the shared zone. As a result, Phillips Petroleum, the US company that operates Bayu-Undan, put construction of the pipeline on hold.

Second, the partners in Sunrise -- Australia's Woodside Petroleum, Royal Dutch/Shell, Phillips and Osaka Gas of Japan -- are bogged down in a dispute over how best to transport their gas to market. A decision had been due this month but Woodside, the operator, says an agreement remains some way off.

Under the original plans, the Sunrise gas was also to have been piped ashore and processed at a new A$3 billion liquefied natural gas (LNG) plant in Darwin, jointly owned by the venture partners.

But in August, Shell unexpectedly proposed that the gas instead be processed at sea on a floating LNG plant that it alone would own. The technology is untested -- it would be the first such facility in the world but Shell claims it could cut costs by up to 40 per cent.

"The problem with the Shell proposal is that it doesn't include the other partners in the value-added part -- the processing, marketing and selling," says Mike Lane, Woodside's Darwin manager.

For the Northern Territory -- which will not receive royalties from the offshore developments -- it is critical the gas comes onshore. The LNG and methanol plants and pipeline construction would in themselves create hundreds of jobs.

But cheap gas would also mean the energy-strapped territory could at last develop an industrial base, enabling it to justify its existence from an economic point of view for the first time in its history.

In the mid-1970s, after Cyclone Tracy flattened Darwin -- a city as close to Singapore as it is to Sydney -- Canberra considered giving up on the country's costly tropical north. "There was a strong impulse not to rebuild, just to let it go," says Ms Martin.

To this day, some 80 per cent of the territory's funding comes from the federal government. An area three times the size of France, it has just 200,000 inhabitants, nearly half of them in Darwin. "A diversified industrial base would make us viable," says Paul Henderson, the territory's minister for resources. "Gas is the key. Without it, we are fairly stranded in terms of economic or population growth."

But he argues the projects are also of national importance. Within Australia, where demand for gas is set to outstrip supply in the next five years, the developments would be second in size only to the North West Shelf, one of the world's biggest LNG projects.

Although the territory's new Labor government has no formal role in the negotiations with East Timor, it hopes its good relations with the impoverished new state will help produce a compromise. "East Timor will be seeking an outcome sooner rather than later," Mr Henderson says. "Revenues from oil and gas are about the only light on their horizon."

But even if other investors are being lined up to replace those threatening to pull out, time is short. "Keeping El Paso on board is critical," he says. "All of a sudden, we could find ourselves with a world-class resource and no markets."

East Timor formally asks UN for independence May 20

Reuters - October 22, 2001

Evelyn Leopold, United Nations -- East Timor's newly elected constituent assembly asked the United Nations on Monday to grant it independence next May 20, paving the way for a reduction of UN military and civilian forces.

The world body has been administering the territory since 1998 after residents voted overwhelmingly to break from Indonesia, which invaded the former Portuguese colony in 1975.

The president of the East Timor Constituent Assembly, Francisco Guterres, signed a resolution on Monday asking the United Nations to "hand over sovereignty to elected Timorese government institutions on May 20, 2002," UN spokesman Fred Eckhard said. The UN Security Council is expected to approve the date by the end of the month.

In the East Timor capital of Dili, the 88-member assembly, which will form the country's new parliament, selected the date because it is the 28th anniversary of the founding of East Timor's first political party, the Timorese Social Democratic Association. That group gave rise to Fretilin, the guerrilla movement against Indonesian rule and now the territory's largest party. Fretilin won 55 assembly seats elections held on Aug. 30, second anniversary of the independence vote.

In a separate report, UN Secretary-General Kofi Annan said the nearly 9,000 UN peacekeepers would be cut to 5,000 by independence. The 550 international staff and 600 UN volunteers have already been decreased and would be reduced by some 75 percent by next May. But Annan did not say how many soldiers and staff would remain after independence, saying it depended on progress in local institutions.

The United Nations, he said, had identified some "100 core functions for which local expertise does not exist but which are essential to the stability and functioning" of the country's new government.

Under pressure from the United States and France to cut costs, Sergio Vieira de Mello, the UN administrator for East Timor, warned the Security Council last July that any reduction of soldiers had to be gradual or the world body would put in jeopardy "the enormous investment it has been made so far."

After the August 1998 independence election, pro-Jakarta militia, organized by the Indonesian army, went on the rampage, killing, looting and burning buildings to the ground. Australian troops stopped the carnage before UN peacekeepers arrived. Many militia, now in Indonesian West Timor on the other half of the island, could continue to be a security threat.

Labour struggle

Indonesia postpones new labour law

Reuters - October 23, 2001

Jakarta -- Indonesia's parliament, under pressure from powerful labour unions, said on Tuesday it had postponed a plan to pass a draft labour law this week due to fears of fresh unrest in the impoverished country.

Under the proposed law workers would not be allowed to strike during negotiations with employers, prompting worries among unions that their bargaining position would be significantly weakened.

"After getting criticism from labour unions, the parliamentary special committee in charge of the draft bill has decided to postpone passing it," Surya Chandra Surapaty, head of the special committee, told Reuters. Surapaty said lawmakers would hold further discussions with labour unions over the controversial draft bill.

Some labour unions that took part in large protests in the middle of the year over a separate ministerial decree have said they would not rule out massive protests if parliament passed the bill. "There were large worker protests when the ministerial decree was issued therefore we can conclude what will happen if the bill is passed," said Rita Olivia, a labour activist.

The government agreed to postpone implementation of the decree, which had abolished severance pay for retiring and resigning workers, following violent protests across the country.

Labour unrest has been one of the many headaches that have best several administrations trying to drag Indonesia out of crisis since it was savaged by the Asian financial storm of the late 1990s.

Worker rights were largely subordinated to former President Suharto's drive for rapid economic growth during his three-decade iron rule that ended in chaos in 1998. Since then, unions have grown in clout.

Aceh/West Papua

Four more killed in fresh violence in Aceh

Jakarta Post - October 25, 2001

Ibnu Mat Noor, Banda Aceh -- At least four people were shot dead in separate villages in Aceh, three of whom were believed to be members of the Free Aceh Movement (GAM), military and police sources said here on Wednesday, despite GAM's insistence that they were civilians.

Chief of South Aceh Military District Lt. Col. Agus Permana said that government troops encountered a group of GAM members in the village of Pinto Rimba in Trumon district, some 500 kilometers south of Banda Aceh on Tuesday morning. "Two [suspected] GAM members were shot dead, and a handgun was taken from one of them. The other GAM members escaped," Agus said. One of the victims was identified as Yamin, 36, while the other was unidentified. The two bodies were then buried by locals.

Meanwhile, a 20-year-old man accused of killing Police Chief Brig. Nazir in Aceh Besar, was shot dead by police in the village of Pasie Engking, Aceh Besar, on Tuesday. Local police spokesman Adj. Sr. Comr. Agus Dwiyanto said in Banda Aceh that the shooting of Faisal Alif took place during a raid on the village suspected to be supportive of GAM. Police also arrested four men suspected to be GAM members, Nazaruddin, Azhari, Marjal Firmansyah, and Isal Nawawi, Agus said, adding that a pistol was also confiscated.

According to Agus, the five GAM members had been on the police's wanted list, as they were suspected of committing murder and other crimes. GAM spokesman in Aceh Besar Ayah Sofyan said that the man shot by the police and the other four who were arrested were all civilians and not members of GAM.

In a separate incident, residents of Tanah Luas district in North Aceh said on Wednesday they found a dead body with gunshot wounds in the village of Alue Gantoe, some 300 kilometers east of Banda Aceh on Tuesday. Local spokesman for GAM Tengku Jamaika said the dead man was Hendri bin Kasim, 25. Hendri was nabbed by the military on Sunday. The military denied the accusation.

Killings of suspected combatants and civilians continues unabated in the province despite efforts to hold peace talks.

Papua bill endorsed in flurry before recess

Jakarta Post - October 23, 2001

Jakarta -- The House of Representatives rushed to pass the special autonomy bill on Papua (Irian Jaya) into law at midnight Monday after a last-ditch effort to solve the contentious issue of revenue sharing.

The House and the government eventually agreed to grant the Papuans a majority of the revenue from the province, namely 80 percent of revenue from forestry and fishery and 70 percent from oil and gas. Initially, the House demanded that 80 percent of revenue, including tax and royalties, be granted to local administrations, but the government rejected the proposal. The government, nevertheless, wanted 30 percent of the revenue, especially from oil and gas as well as mining.

After heated argument, the House then agreed to let Minister of Home Affairs Hari Sabarno consult with President Megawati Soekarnoputri, who had just arrived from Shanghai where she attended the Asia Pacific Economic Cooperation (APEC) summit. Upon arrival from Shanghai, Megawati immediately convened a special meeting with her ministers at Halim Perdanakusuma Airport to discuss the latest development on the deliberation of the special autonomy bill on Papua.

After the meeting, Minister of Defense Matori Abdul Djalil told reporters that the government could not accept the proposed revenue sharing of up to 80 percent for the province. "The government decided that revenue sharing should be 70 percent for the local administration and 30 percent for the central government," Matori said.

Also attending the airport meeting were Vice President Hamzah Haz, Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono, Minister of Home Affairs Hari Sabarno, Minister of Foreign Affairs Hassan Wirayuda. Hari Sabarno then returned to the House in the evening and discussed the revenue- sharing issue with the House's special committee.

Finally, the House agreed to allocate the province 80 percent of revenue from forestry and fishery and 70 percent of revenue from oil, gas and mining to local people through local administrations. Nevertheless, revenue sharing from oil, gas and mining will be reviewed after 25 years, and during that time, the government will compensate Papuans with an increased budget from the central government for education and health care. In addition, Hari Sabarno said the government was committed to increasing the amount of the general allocation fund, plus the education and health care fund for next year's budget from the initial figure of Rp 3.5 trillion (US$350,000) to Rp 6 trillion. "We hope that the House will also help us find a source of funds to increase funding from Rp 3.5 trillion to Rp 6 trillion," Hari said before attending the plenary session.

While the House was in its plenary session, dozens of Papuans gathered outside the meeting room to demand that the House postpone passing the bill into law until the Papuans were consulted on the bill. Earlier in the day, hundreds of Papuans gathered outside the building to await the House's decision. A band of Papuans played traditional songs and danced to mark the historical moment for Papuans.

All of the House's 10 factions eventually approved the bill to be passed into law, with some factions adding notes. Some hoped that the bill would curb the secessionist movement in the easternmost province.

Other important issues in the Irian Jaya special regional law include allowing the people to have their own flag, anthem and change of the name of the province from Irian Jaya to Papua. The Papuan bill is the first to be endorsed in the House's target of passing seven bills, including the Papua bill, before the House goes into recess on October 24.

The House is slated to pass the anticorruption bill and the oil and gas bill on Tuesday. It is scheduled to debate the budget bill on Tuesday, and is expected to endorse it on Wednesday. Also on Wednesday, the House is scheduled to approve the controversial police bill.

The House is scheduled to go into recess this week to allow enough preparation for the convening of the Annual Session of the People's Consultative Assembly, the members of which two-thirds are also House members. The session is slated to start early November.

Eight killed in Aceh, 17,000 rounds of ammunition seized

Jakarta Post - October 22, 2001

Banda Aceh -- At least eight people, including two Free Aceh Movement (GAM) rebels, were killed in a series of incidents over Friday and Saturday, officials and activists said.

Indonesian Red Cross worker Hanif said on Sunday that the latest six male fatalities were found in Meusala village, some 25 kilometers south of here on Saturday. The bodies, all of which had gunshot wounds, were estimated to have been lying there for between one and two days.

Meanwhile, military personnel shot dead on Friday two GAM rebels carrying a total of 17,807 rounds of bullets for various types of firearms in South Aceh. Three other rebels were wounded but managed to flee the military check point, officials said.

South Aceh District Military chief Lt. Col. Agus Permana said that a joint military unit was searching five men riding four motorcycles near a security post in Sapik village of Kluet Selatan district, some 400 kilometers south of Banda Aceh, on Friday morning when the men resisted the search.

"When the officers wanted to check them, they dropped their motorbikes and ran away. Two of them were shot and killed while the others fled into the jungle," Agus said. The officers immediately searched the motorbikes and found stocks of ammunition totaling 17,807 rounds in bags attached to the motorcycle seats, he said.

South Aceh GAM spokesman Abrar Muda acknowledged that the two dead men were GAM members, identified as Johan, 30 and Fijai, 27, and said that GAM had lost thousands of ammunition rounds. Abrar also claimed that GAM launched a retaliatory attack against the military on Friday.

GAM rebels have been fighting for an independent Islamic state since the mid 1970s. At least 1,200 people have been killed this year in Aceh, mostly civilians.

Papuan Council rejects Special Autonomy Law

Jakarta Post - October 22, 2001

RK Nugroho, Jayapura -- The proindependence Papuan Council Presidium (PDP) asserted on Saturday in Jayapura that it would reject the Special Autonomy Law on Irian Jaya which will come into effect on Tuesday.

Secretary-general Thaha Al Hamid said PDP wanted more than the law because it was not the best or comprehensive way to settle the prolonged Irian Jaya issue. "It is the central government that had the idea of the Special Autonomy Law, not the people of Papua. Special autonomy was granted after the demand for independence had grown stronger," Thaha said.

The rejection of special autonomy was part of the political declaration made by PDP following a three-day plenary session, which ended on Friday, he added. PDP chairman Thyes Hiu Eluay said that the Special Autonomy Law was similar to the 1969 government-engineered referendum. "The solution is a dialog between the government and the people of Papua in which PDP is involved," Thyes said. "As long as there are no talks between the government and the people, the issue will remain unresolved," he said.

To show its rejection of the implementation of the Special Autonomy Law for Irian Jaya, PDP is sending Martinus Warimon from its student panel, and Deki Mlino from its Timika panel to Jakarta. "They will join the Irian Jaya community in Jakarta who will all reject the Special Autonomy Law," said Thaha.

Thyes, Thaha, Don A Flassy, the chairman of the Independent Youth Organization, Rev. Herman Awom and John Mambor, a PDP member, are being tried for allegedly inciting the Irianese to fight for the province's independence. The trial will continue in Irian Jaya on Monday with former president Abdurrahman Wahid scheduled to take the witness stand on behalf of PDP. Abdurrahman is to testify in connection with the Rp 1 billion in aid given to the Papuan People's Congress in Jayapura on Dec. 1 of last year.

PDP has also demanded that the Dutch and US governments and the United Nations be held responsible for their past stance on Irian Jaya and to review its political status of the province.

PDP has also asked the Papua Liberation Front to stop its actions and the National Police and Indonesian Military to discontinue their activity.

The declaration, signed by Thyes, Herman and Thaha, also calls on people to unite and fight against any kind of provocation or propaganda. The Irian Jaya administration is sending some 1,000 people to Jakarta in support of the special regional autonomy.

Anti-war/US

Anti-Western protests causing new crisis

Jakarta Post - October 25, 2001

Bambang Nurbianto, Jakarta -- House Speaker Akbar Tandjung said on Wednesday that protests and threats against Westerners had prompted unprecedented numbers of business travelers and holiday-makers to spend their tourist dollars somewhere other than Indonesia.

Akbar pointed out that a gloomy future in the tourism sector was imminent and that the government's target of 5.4 million visitors this year will not be achieved. The recent waves of anti-Western street protests have forced 30 percent of the tourists who had already formally booked Indonesian trips to cancel their visit, he said.

"As a result, the government will lose about US$2 billion in potential revenues from the tourism sector alone," Akbar said in response to data from tourist agencies which does not consider the number of would-be travelers without reservations.

Anti-Western demonstrations and ethnic "sweeping" threats have subsided over the past week as many leaders including Vice President Hamzah Haz have repeatedly called on hardline Muslim groups to halt their destructive actions and to create a conducive atmosphere for the economy to recover.

Hamzah said that the drop in capital flows to Indonesia and the slowing economic activity in general would definitely impede economic recovery. "The pressure [on the economy] will become even greater because the global economy is also suffering a recession," Akbar said after officially closing the House of Representatives' annual session.

Over the past three months, the House passed four bills into law for Papuan Special Autonomy, the state budget, an oil and gas law and an amendment to the anti-corruption law. In addition, the House also passed its Internal Code of Ethics and Regulations, which is expected to improve its performance and image.

Akbar also raised concerns about the unchecked trafficking of women and children, which he said was a result of the rising rate of unemployment since the economic crisis began in 1997. The thriving flesh trade, Akbar said, was only the tip of the iceberg in the social crisis arising from prolonged economic hardship.

"Our direct observation is that the House needs to push for Indonesia to ratify the 1949 UN Convention on Trafficking of Women and make our own laws banning trafficking of women and children," he said.

Akbar also promised to make a law which provides legal protection for Indonesians working overseas, which has become a national concern. "Many Indonesians working overseas report mistreatment and Indonesia cannot do anything to protect them," he said.

Megawati strives to stay with US

Green Left Weekly - October 24, 2001

Max Lane, Jakarta -- The most right-wing elements among politically organised Islam have sought to use the US "war on terrorism" to seize the political initiative in the world's most populous Muslim nation.

At the same time, Megawati Sukarnoputri has been striving to maintain a position of support for the United States despite the manifestations of opposition to the US from many sectors of Indonesian society apart from fundamentalist Muslim opinion.

The bombing of Afghanistan, especially the reports of bombing of civilian targets such as Red Cross warehouses, has caused an escalation in street mobilisations by right-wing fundamentalist groups, which are now happening almost daily.

The most prominent organisation involved has been the Islamic Defenders Front, the FPI, which has a history of targeting left- wing organisations and "centres of immorality" such as coffee shops, bars and brothels.

The police have acted violently against the FPI demonstrations, on one occasion chasing them back to their head office and then occupying the office. The police have come under heavy criticism from Muslim groups as a result but, far from backing down, have said they will now revive dormant cases against the FPI.

Another strong critic of the US and of the soft line of the Sukarnoputri government has been the fundamentalist Justice Party, the PK, whose weekly magazine Sabili has called for a jihad against the US. The party estimates that 30,000 people will mobilise for its first anti-US demonstration.

The conservative Suharto-appointed Islamic Scholars Council also issued a call for a jihad immediately after Bush announced the planned retaliation, although it later moderated its rhetoric. Numerous other Islamic organisations have issued similar statements.

Popular tabloid dailies, such as Rakyat Merdeka, have also kept up a sustained campaign against the US from day one.

The widespread anti-US sentiment has also increased the opportunity for traditional anti-imperialist Sukarnoists to enter the debate. In particular, the sister of President Megawati Sukarnoputri, Rachmawati, has launched a series of broadsides against her sister for giving in to "NEKOLIM", former president Sukarno's acronym for neo-colonialism.

The Sukarnoist youth organisation, Marhean Youth Movement, has been one of the non-Muslim organisations to mobilise in protest against US policy. There have also been anti-US demonstrations by women's organisations and street children's organisations.

Some non-government organisations have issued statements condemning the US attacks on Afghanistan (as well as the attacks on the World Trade Center in New York).

Despite the protests, the government remains in basic alignment with the US. Under increasing pressure from the Islamic political parties and groups and public sentiment generally, Sukarnoputri softened her support for the US on October 14.

Since then, her officials have continued to sit on the fence, trying to be seen as both supporting and remaining independent of the US.

Megawati's softening of her public support for Washington on October 14 was motivated by a need to ensure that her vice- presidential partner, Hamzah Haz, and his party, the Muslim United Development Party, are constrained in their manoeuvring against her.

However, it has not only been Haz's party that has been scoring points against the president. MPs from the National Awakening Party, the party that backed former president Abdurrahman Wahid, have also attacked her for changing her position too slowly and then only as a means of accommodating some Islamic opinion. The MPs have criticised her for merging with the interests of the US and of capitalism.

Hamzah repeats calls to stop rallies

Jakarta Post - October 23, 2001

Fabiola Desy Unidjaja, Jakarta -- Vice President Hamzah Haz repeated calls on Monday to stop the anti-US rallies in the country and underlined that Indonesia may face an economic collapse should the country fail to guarantee foreign investors' security.

"I am pleading once again for the rallies to stop. As Vice President and being from a Muslim-based party, I understand the feelings of Muslims, but it concerns me when a rally turns violent," Hamzah said during the opening ceremony of an Islamic conference here. "If this rally continues, we are going to face more economic hardship. If we can't get out of this economic crisis, we will all collapse," Hamzah said.

After encouraging anti-US demonstrations and giving Muslims the green light to go to Afghanistan to wage a jihad, Hamzah has been demanding Muslims over the past few days to stop their rallies. "Our economy needs to recover. The gap between the rich and the poor is widening. There have been mass layoffs, the current unemployment figure has increased to 38 million people, we have become a poorer country," he said. "This continuing action [rallies] will hurt the image of Islam and we should show the world that we have a peaceful way to uphold the truth," Hamzah said.

He contended that the government had taken into account the interests of Muslims in the country, and President Megawati Soekarnoputri had conveyed a message to the United States to consider Muslims' voices in the Afghan crisis.

Megawati, in an apparent move to appease Muslims angry at the civilian casualties in Afghanistan, indirectly criticized the attacks, saying that no government had the right to attack another or seek to erase blood with blood. Megawati's strong statement had apparently dissatisfied the United States. Megawati failed to seek a meeting with US President George W. Bush during an Asia Pacific Economic Cooperation (APEC) summit in Shanghai, China, over the weekend.

After the summit, Minister of Foreign Affairs Hassan Wirayuda surprised the United States again, when he called on the latter to end the strikes in Afghanistan before the Muslim holy month of Ramadhan, which begins in mid-November. Otherwise, he warned, it would ignite an explosive reaction in the Muslim world.

Upon arrival from Shanghai, Hassan said in Jakarta that Indonesia would maintain its stance on wanting to see the attacks end before the fasting month. "We expressed our concern to a number of foreign ministers during the APEC meeting that prolonged attacks would further create destabilization among many Muslim countries, such as Indonesia and Malaysia, and will finally hurt the global coalition against terrorism," Hassan said.

Hassan added that he also conveyed Indonesia's concerns to US Secretary of State Colin Powell during their meeting. "I see signs that a solution for the situation in Afghanistan is shifting to a political and diplomatic means," Hassan said. When asked what would be the next stance of Indonesia should the US continue attacking Afghanistan during Ramadhan, Hassan said: "It is still in three weeks time, let's wait and see."

Government & politics

Amien: Quietly cultivating support from Muslims

Straits Times - October 25, 2001

Derwin Pereira, Jakarta -- National Assembly chairman Amien Rais has quietly begun lobbying for the coveted presidential seat in 2004, making regular tours of Indonesian provinces as part of his safari politics to broaden his grassroots appeal.

Over the last two months, sources in his National Mandate Party (PAN) said he had made trips to Surabaya, Malang, Semarang, Yogyakarta, Lampung and Ujung Pandang to meet leaders and supporters of two of the largest Muslim groups in the country -- the Nadhlatul Ulama (NU) and Muhammadiyah. "He is making an effort to improve his reputation especially with the NU," said Mr Sutan Ambia Boestam, a senior PAN legislator.

While he is almost guaranteed the support of the Muhammadiyah, which he once used to head, analysts believe there is little chance of that happening with the 30-million-strong NU, especially after he played a leading role in toppling its leader and former President Abdurrahman Wahid.

But some PAN sources maintain that given the three-year interval to the next election, Dr Amien would be well able to "cultivate the ground" ahead of polls. A political analyst noted: "He is working the ground now without the knowledge of his opponents, most of whom are preoccupied with political problems."

Sources told The Straits Times Dr Amien was also hoping to bring together the leaders of the NU and Muhammadiyah in a forum later this year to boost his credibility and that of his party.

In his visits to the provinces in Java, Sumatra and Sulawesi, he took pains to portray the image of PAN as a party free of internal conflict compared to its rivals -- the Indonesian Democratic Party-Struggle (PDI-P), Golkar and the United Development Party (PPP).

Indeed, after weeding out the more secular elements like Mr Faisal Basri from the party, PAN has projected a united front. It has also appeared more Islamic in orientation to win over the Muslim votes.

The strategy now is to go beyond wooing Indonesia's middle class voters and do better than the fifth position it secured in the 1999 election. Dr Amien himself acknowledged in an interview with The Straits Times several months ago that he saw PAN getting at least 20 per cent of the votes -- more than double the figure it got last year -- in a general election that would give him the "legitimacy" to make a presidential bid.

PAN members said the safari politics of the US-trained academic would also serve him well in the event of a direct presidential poll. "Don't underestimate Amien Rais," said a PAN legislator. "He has shown that he is adept at playing politics. He has brought down three presidents in the last three years ... with some luck and the backing of the Muslims, he could rise to the top."

Parliament at full stretch to beat Ramadan deadline

South China Morning Post - October 23, 2001

Vaudine England, Jakarta -- Parliament is set to pass seven laws this week in a plenary session starting today -- although public disapproval is loud on bills including Irian Jaya autonomy and the role of the police.

An international political observer based in Jakarta said yesterday the House of Representatives wanted "to prove it's doing things, and to give it its due, it has managed to get a lot through the legislative process".

But the pressure is on as anything which Parliament fails to pass this week will not make it on to the agenda until after the Ramadan fasting month and Christmas holidays.

Meanwhile, the higher body, the Peoples' Consultative Assembly, is to hold its regular annual session starting on November 2. In recent years, these sessions have been overtaken by arguments over who should be president but this year it will tackle broader constitutional issues.

The credibility of the House of Representatives has slumped in recent weeks following revelations in local media about the role bribery plays in committee deliberations and the passing of laws. Now is the time, legislators hope, to impress on the public that it can do its job effectively.

So far, the public is unimpressed. The draft oil and gas bill, for example, has been criticised by leading executives of international resource companies who say its vague provisions on tax and contract security will have a direct downward impact on foreign investment in Indonesia. In reply, a parliamentarian said that if the foreigners did not like the law, they could leave.

The draft police bill has angered non-governmental organisations for failing to put service to the public as the top priority for officers. "All factions in the House must consider the aspirations of the people by suspending enactment of the bill until comprehensive revision can be undertaken," said Adnan Pandupraja of Indonesian Police Watch. He added that the bill could be seen as militaristic, and was flawed because of the lack of public participation in its drafting.

In an example of the last-minute nature of the law-making process, negotiations continued until 3am yesterday on major issues relating to the special autonomy Jakarta intends to offer Irian Jaya. "The arguments are about the role of the police and the military in Irian Jaya, the tax system and how to split revenues from the province between Jakarta and the province," said a source.

He said although Parliament had the right to pass laws, it still needed approval from the President, and in practical terms at least some public support in Irian Jaya if the law was to work.

Papua Presidium leader Theys Eluay, facing trial for subversion, likened the draft Special Autonomy Law to the allegedly rigged UN referendum of 1969 which first gave Irian Jaya to Jakarta. "As long as there are no talks between the Government and the people, the issue will remain unresolved," he said.

Corruption/collusion/nepotism

Heat is on House Speaker Akbar over Bulog scandal

Jakarta Post - October 25, 2001

Jakarta -- House of Representatives Speaker Akbar Tandjung met on Tuesday night with Taufik Kiemas, president Megawati Soekarnoputri's husband, to seek support to block a move aimed at establishing a House special committee to investigate a graft case allegedly involving him.

An executive at the Indonesian Democratic Party of Struggle (PDI Perjuangan), Roy BB Janis said the meeting took place at Akbar's residence. "At the meeting, Akbar sought our support that the scam would not be brought to a House special committee," Roy told the media on Wednesday. "We told him that the PDI Perjuangan faction had neither ordered nor banned its members from participating in the establishment of a special committee. It's their right as legislators," Roy said.

Akbar is trying to drum up support to obstruct the move by 50 legislators who had earlier filed a petition with House leaders to establish a committee to probe the scam.

Speaking to the media after presiding over a House plenary meeting, Akbar confirmed that he had met with Taufik Kiemas, but denied he had sought support over the issue. "It was a silaturahmi [brotherhood meeting] because both of us are House members," he said. Akbar said he had asked Taufik to host the meeting, but the latter refused. "So the meeting took place at my residence," he said.

Earlier in the day, a plenary meeting presided over by Deputy House Speaker Tosari Widjaja accepted a proposal from 50 legislators for the creation of a special committee to investigate the alleged misuse of 40 billion rupiah in funds belonging to the State Logistics Agency (Bulog), which allegedly involved Akbar.

Following the acceptance, the plenary meeting then ordered the House's deliberating body to discuss whether the plan should go ahead or not. "We will convey the proposal to the deliberating body. It is the body that will discuss further steps to follow up the proposal," Tosari told The Jakarta Post after the meeting.

Further deliberation of the proposal will be held on November 19 because the House goes into recess on Thursday, in preparation for the Annual Session of the People's Consultative Assembly on November 1.

Separately, State Secretary/Cabinet Secretary Bambang Kesowo said that the government had received a letter from Attorney General M.A. Rachman requesting the President's consent to question House Speaker Akbar Tandjung over his alleged involvement in the Bulog scam. "We received the letter [on Tuesday] evening and the President will respond to the request as soon as possible," Bambang told journalists.

In the meantime, Bulog chief Widjanarko Puspoyo said, after meeting Megawati, that his office would continue with its efforts to recoup the lost funds, including the 40 billion rupiah (US$4 million). "They amounted to around 2 trillion rupiah, but it will not be easy to recover them because many of the funds were disbursed to personal accounts that were related to the many former Bulog chiefs. It would have been easier if they had been disbursed to companies," Widjanarko said. He said that his office would also supply data to the Attorney General's Office for investigation purposes.

Separately, National Awakening Party (PKB) deputy chairman Mahfud M.D. revealed that he had additional evidence relating to the case. "I believe that these corruption allegations are genuine and not merely a political maneuver, like the previous case concerning Bulog. That was a factor that ultimately led to the fall of former president Abdurrahman Wahid," Mahfud, a former minister of defense under Abdurrahman, told reporters at the PKB office in Central Jakarta.

Amien backs committee to probe Akbar

Jakarta Post - October 23, 2001

Bambang Nurbianto, Jakarta -- Speaker of the People's Consultative Assembly (MPR) Amien Rais expressed his support on Monday for several legislators' suggestions to set up a special committee at the House of Representatives to probe the alleged misuse of the State Logistics Agency (Bulog)'s non-budgetary fund.

If it is approved by the House factions, the committee will investigate the irregular use of Bulog's funds, valued at Rp 40 billion, during the time Akbar Tandjung was a state secretary under former president B.J. Habibie in 1998. "If Abdurrahman Wahid fell from presidency in connection with the similar use of Bulog's non-budgetary funds amounting to Rp 35 billion, it should also be that way too in Akbar's case," Amien told the media after meeting with chief editors at the legislative building.

Abdurrahman was toppled from his presidency by the Assembly after the House censured him twice when its special committee found that he played a role in the illegal disbursement of Rp 35 billion in Bulog funds. Legislators from the National Awakening Party have taken the lead in establishing the House special committee, which political analysts consider a retaliation for the unseating of Abdurrahman.

But Amien said the formation of a special committee was up to the 10 factions in the House. "It is up to the factions in the House. If it is established, I agree that it should look fair, but if it is not, the legal process which was started at the Attorney General's Office should not be stopped," he added.

Meanwhile, former Bulog head Rahardi Ramelan said the Bulog non- budgetary funds were disbursed to then state minister/secretary Akbar Tandjung in late February or early March 1998 after it was agreed at a limited Cabinet meeting. The funds were used to finance social safety programs under the coordination of the state minister/secretary.

Rahardi said he did not know how the funds were used as Bulog did not have the authority to monitor them. "My duty finished after the funds were received by the state minister/secretary," Rahardi told SCTV television in an interview on Monday.

Amien said Akbar should not worry about the plan for the establishment of a special committee as he would be safe if he or the Golkar Party did not misuse the funds. "If Akbar did not use a single cent of the funds, he will be safe. It will be proven both by the special committee and the Attorney General's Office."

Amien said the sooner the investigation was conducted the better, and that all the evidence could be gathered. "I only hope that the attorney general will act fairly and transparently and go through the right procedures," said Amien, who is also the chairman of the National Mandate Party.

Previously, Akbar denied misusing the Rp 40 billion in funds, saying that all the money went to the poor under the state- sponsored social safety net program conducted by various ministries through their foundations.

Regional/communal conflicts

Six arrested over fresh clash in Poso

Jakarta Post - October 23, 2001

Badri Jawara, Palu -- Central Sulawesi Provincial Police confirmed on Monday that six people of the 42 detained for questioning were interrogated over Saturday's sectarian clash in Tabalu village, some 20 kilometers north of Poso, in which one police officer was killed.

Spokesman for the Provincial Police Adj. Sr. Comr. Agus Sugianto said in the province's capital of Palu that the other 36 people were still being questioned over the clash between Muslims and Christians. Agus said the Poso Police station was handling the case, assuring the public that charges would be laid against those found guilty of taking part in the clash.

Agus said a member of the National Police's Mobile Brigade from the Central Sulawesi Police Headquarters was killed when trying to stop the two groups on Saturday. "Soon after the clash erupted at about 9pm on Saturday, Brigade and Army members in the Poso regency moved to intercept the two warring groups. Second Brig. Ardiansyah, 22, was shot dead in the clash." Agus did not elaborate any further, but said Ardiansyah had graduated from Police Brigade training nine months ago. He said that he had yet to receive a report on the number of civilians killed in the clash.

Interreligious clashes have been rampant since the 1980s. The number of victims from both sides is uncountable. In the 1990s, hundreds were reportedly killed during the prolonged discord.

The government has apparently found it difficult to deal with religion-based conflict. Minister of Religious Affairs Said Aqil Almunawar said on Sunday in Palu that religious harmony was the top priority on the ministry's agenda. "Religion is the moral and spiritual basis for all individuals and it needs extra attention. Nowadays, many religious followers have spoiled their religion with their misconduct."

"There is a crisis in religious harmony in the country. Therefore, religious leaders should sit down together to discuss the latest developments and what is going on in society," he said. The ministry is establishing a secretariat for religious harmony on Jl. Kramat Raya, Central Jakarta, Said Aqil noted. "Hopefully religious leaders will come regularly to the secretariat to talk over any religious problems in society."

Eight killed as gangs clash in Sulawesi

Straits Times - October 22, 2001

Poso (Sulawesi) -- Clashes between Christian and Muslim gangs, armed with knives and homemade guns, left at least eight people dead, police and witnesses said yesterday.

Police Sergeant Pamrin said nearly 100 Christians attacked a Muslim district on the outskirts of Poso late on Saturday. Security forces opened fire on the attackers, he said. Six unidentified corpses were later brought to the town's hospital, witnesses said.

Soon afterwards, police shot and killed two members of the Muslim paramilitary group Laskar Jihad who had been travelling towards the trouble spot, said an officer. Just before dawn a bomb exploded outside a church in the town, witnesses said. There were no reports of major damage or injuries. In July, at least 28 people were killed in sectarian fighting in villages surrounding Poso, about 1,600 km north-east of Jakarta. In May last year, more than 400 people were killed in the region.

Human rights/law

UN official criticizes Jakarta's snail-pace justice system

Lusa - October 24, 2001

A UN official of East Timor4s transitional administration Wednesday criticized Indonesia for its repeated delays in bring to trial military officers and officials indicted for human rights atrocities committed in the territory in 1999.

Just returned from talks with Indonesian officials in Jakarta, Dennis McNamara told reporters in Dili he wanted to see greater commitment by Indonesia to try those held responsible for the wave of anti-independence violence. "We have many issues to deal with and we need greater active cooperation by Indonesia, if we all want to work for real progress in Timor", McNamara said.

In Jakarta, Attorney General Marzuki Darusman dismissed the criticism, saying a special human rights court established earlier this year would begin functioning in Jakarta on schedule in December. He acknowledged, however, that the government had so far failed to call for hearings many military officers with knowledge of the atrocities.

Twenty-three officers, officials and paramilitary chiefs have been indicted for the scorched-earth campaign that left hundreds of East Timorese dead, transformed some 250,000 into refugees, and destroyed most of the territory4s towns and scarce infrastructure.

News & issues

Wiranto sets up moral movement group

Jakarta Post - October 29, 2001

Jakarta -- Former minister of defense/Indonesian Military (TNI) chief Gen. (ret) Wiranto declared on Sunday the establishment of the Garda Muda Merah Putih (Red-and-White Youth Defenders), a youth group promoting moral movement.

"We hope we will be able to promote youth consciousness for the country's social and political affairs and its unity and integrity through this moral movement. It's also hoped that the movement will warn the political elite to perform its tasks well," Wiranto said as quoted by Antara on the sidelines of the declaration of the group at the Senayan Sports Hall of the Bung Karno Sports Center in Central Jakarta.

The group is chaired by Adhyaksa Dault, who is also chairman of the Indonesian National Youth Committee (KNPI), while Wiranto sits as chairman of the group's board of patrons. Members of the board include Muslim leader Ali Yafie, political observers Ryaas Rasyid and Afan Gaffar, politicians Abdul Madjid and Ahmad Sumargono and former student leader Hariman Siregar.

Asked whether the group would get involved in politics, Wiranto said it would be only a moral movement that attempted to promote a sense of brotherhood so that the state institutions would also function as agents for the promotion of the public's welfare and not merely as a means to obtain or maintain power.

He said the group was expected to help the government establish firm regulations for the prosperity of the public. The former TNI chief warned of political rivalries that might endanger the country's unity. "The political elite should be wiser, more aspirational and consistent in handling the problems of citizens and the state," he said.

Survivors' claims of forced passage denied

South China Morning Post - October 26, 2001

Vaudine England, Jakarta -- Police deny allegations they forced asylum seekers at gunpoint on to a boat that subsequently sank, drowning about 350 people -- but they admit "rogue" officers may take bribes from people-smugglers.

Investigators of the people-smuggling trade, which has taken hold in Indonesia over the past year, say the allegation threatens to take the focus away from widespread police culpability across the archipelago.

Interviews on Tuesday at Bogor, south of Jakarta, with some of the 44 survivors made no mention of police pressure with guns. But several survivors later told Australia's Sydney Morning Herald they would not have boarded the small craft had armed police not forced them to. United Nations officials say the claims must be treated with caution, as many of the survivors are traumatised.

"It is possible that some police are bribed by people-smugglers. The syndicates have a lot of money," said Inspector-General Engkesman Hillep, as he rejected the gunpoint claim. "But it's not the police as an institution, just rogue police officers. It is suspected that some police take money. The syndicates have access to hotels, to transport operations, maybe to the navy, maybe to police -- but bad police, rotten police."

Sources involved with the trade told documentary-maker David O'Shea several months ago that police were regularly paid off by the smugglers. "It's a bidding war. The Australian Government is trying to buy the police's favour, but the smugglers have got more money," O'Shea said.

The Australian Government offers training and has built relationships with police in Lombok, West Java and Kupang in West Timor. But a source said their efforts to reach an understanding in Lampung, South Sumatra, had been less successful.

The boat that sank last weekend had set off from Lampung, and it is the police there who are accused of forcing people on to the unseaworthy craft with guns. "There was nothing like that," police chief General Bimantoro said yesterday, adding that police were "not really convinced" about the survivors' testimonies.

The Sydney Morning Herald quoted survivor Jabar, from Iraq, as saying: "When most of us saw the boat was too dangerous, we wanted to get off and get our money back. "Several police in smaller boats pointed their guns at us. The police were protecting the smugglers."

National police spokesman Saleh Saaf said a team had been set up to investigate. Defence Minister Matori Abdul Djalil said tough action would be taken if police involvement was uncovered. The allegations came one day after President Megawati Sukarnoputri lamented her country's bad image overseas.

Indonesian police accused in death boat saga

Reuters - October 25, 2001

Jakarta -- Indonesian police said on Thursday they were investigating a report that policemen pointed their guns at asylum seekers who wanted to get off an overcrowded boat that sank last week killing 350 people.

"We are still studying the information from the media. We have set up an intelligence team but we do not know the outcome yet," national police spokesman Saleh Saaf told Reuters.

Australia's Sydney Morning Herald quoted a survivor who said more than a dozen police were protecting people smugglers who organised the trip on the overcrowded and leaky boat for the mostly Iraqi immigrants. "When most of us saw the boat was too dangerous we wanted to get off and get our money back," the Herald quoted 25-year-old survivor Kareem Jabar from Iraq as saying. "Several police in smaller boats pointed their guns at us. The police were protecting the smugglers."

The report said many of the asylum seekers thought boarding the boat was too dangerous but an Egyptian smuggler smashed one over the head with the butt of a gun.

The boat was leaving from Indonesia's Sumatra and heading for Australia's remote Christmas Island, a popular landing target for thousands of asylum seekers who use Indonesia as a springboard every year. Only 44 survived last Friday's tragedy, one of Indonesia's worst maritime disasters.

Indonesian Foreign Minister Hassan Wirajuda warned on Wednesday of a bigger wave of asylum seekers following US-led strikes on Afghanistan, launched this month in response to the September 11 attacks on the United States that killed more than 5,000 people.

He said Jakarta would hold a meeting next month with Australia and other Asian countries on the region's refugee crisis but gave no date or more details on what the talks would seek to achieve.

Thousands attempt the treacherous journey from Indonesia every year. The immigrants usually reach Indonesia via Malaysia and wait for years to get on such rickety boats, paying around $1,000 a head to people-smuggling syndicates.

Underscoring the potential for further disaster, police in the West Timor town of Kupang have rounded up around 200 mostly Afghan asylum seekers whose boat ran aground at the weekend on the remote eastern Rote island. Police said they would soon hand over the stranded asylum seekers to the International Organisation for Migration (IOM) in Jakarta for processing.

"Patrolling police found them stranded on the island's beach running out of food and fuel. We have secured the immigrants at the Kupang police school," Kupang police chief Williardi Wizar told Reuters by telephone. "The 200 of them are all healthy. So, we will send them to the IOM in Jakarta soon," he said.

Indonesia has no law which can directly punish the middlemen making huge profits from the trade.

Trafficking of women, sex trade rife in Medan, Batam

Jakarta Post - October 23, 2001

Apriadi Gunawan and Fadly, Medan/Batam -- Five underage women identified as IM, A, FY, E and W had no idea that they would be traded as prostitutes in a red light district in Dumai, Riau, when Romantan Sinaga alias Nico or Onces, and Andi Haryanto offered them a good job with a high salary during a coincidental meeting at the Aksara Medan Plaza in August.

Without considering any possible consequences, the five girls accepted the offer and went with the two brokers to Dumai. Upon their arrival in the Ria Wisata tourist resort in Bukit Kapur Subdistrict, Dumai, the two brokers traded the five girls to their would-be madam, Rina, at a price of Rp 800,000 (US$80) per person.

"The deal was done in front of them [the women]," Ade Akhmad Ilyasak, chairman of the Indonesian Child Protection Institution (PPAI), told The Jakarta Post in Medan recently. Ade, who helped the five women upon their arrival from Dumai recently, said they escaped the red light district after realizing that they were being abused.

He said that, along with a score of others, they were employed as prostitutes with earnings of between Rp 35,000 and Rp 90,000 promised for each client they serviced. "Actually, during their employment as prostitutes they have never been paid," he said, adding that they bought their bus tickets with the tip money given by their clients.

Ade said police had legal complications arresting those employing women as prostitutes because their employees were obliged to make a legal statement that they did the job willingly.

Ade said the trade of underage women had become rife in North Sumatra because authorities have not imposed strict guidelines on venues such as pubs, bars and karaoke centers, which frequently offered prostitutes and call girls. "The rampant prostitution trade has a lot to do with the high rate of unemployment in the province. Junior high school graduates who cannot afford to go to senior high school will seek any job that enables them to survive the economic crisis," he said.

He said that between January and June, 2001, PPIA had detected eleven underage women among trade cases involving 21 women. "Of the 21 women, four were sold to Japan, two to Hong Kong, three to Malaysia and the remaining 14 were traded in this province and Riau," Ade said.

Ade called on local authorities to be more selective when issuing permits for recreation centers and venues. "The trade of women would not be as serious as it is if local authorities banned prostitution at venues, launched a routine operation to crack down on prostitution and imposed stern sanctions against both venues offering prostitutes and on prostitutes themselves," he said.

Ade said he was deeply concerned with the absence of measures against the long presence of red light districts in Bandar Baru, Sibolangit, Deli Serdang Regency, Bukit Maradja in Simalungun Regency and Warung Bebek in Asahan Regency.

In Batam, Riau, bordering with Malaysia and Singapore, prostitution has also been rampant since the island was developed as an industrial zone and tourist destination. Andre, secretary of the Down Mainstream Communication Forum, said prostitution on the island had become a complicated problem over the past decade.

"Many job seekers have worked as prostitutes at night spots, while many workers have done the same to seek additional income," he said, explaining that living costs on the island were double those in the country's other provinces.

Andre agreed, saying that the fast growth of the sex industry on the island had a lot to do with the absence of measures being taken by local authorities. "Many massage and karaoke centers offer girls who are put in aquariums but no action has been taken," he said.

According to data at the local Ministry of Social Affairs office, the number of sex workers on the island has reached 5,000, who are employed in 60 entertainment centers and seven red light districts. At least 75 sex workers on the island have been infected with Acquired Immunodeficiency Syndrome (AIDS).

The people will return me to power, declares confident Wahid

New York Times - October 22, 2001

Seth Mydans, Jakarta -- Less than three months ago Abdurrahman Wahid was swept from Indonesia's presidency on a wave of public exasperation after a truncated tenure that one prominent scholar calls one of the strangest periods in Indonesian history.

For three days -- still grappling with reality, and losing -- he squatted in his palace insisting that he remained the legal president. He has not changed his mind.

In a strange interview recently, Mr Wahid declared that he was not only the legal president but also the people's choice, and he said he could prove it. "I predict that in a short time, maybe at the end of this year, there will be a meeting point of several people. I will lead a junta with me as chairman to affect democratisation."

It was an unexpected assertion from a man who had succeeded in alienating almost everybody by the time the legislature voted him out of office on July 23, after just 21 months of his five-year term.

Almost from the start, Mr Wahid, one of Indonesia's leading Islamic clerics, had seemed out of touch with the realities of his struggling nation. Some people thought the two strokes he had suffered had affected his mind.

His style has not changed, though fewer people listen now as the nation plunges ahead without him into new crises, new political battles. And the workings of his mind remain as puzzling as ever.

During the interview his thoughts seemed to slip from one track to another as though a switch had failed. His answers sometimes seemed to respond to some private inner thought. At times they burst forth with confident assurance before the question had quite been asked. Blind from his strokes, Mr Wahid, 61, stared straight ahead, unmoving. But behind his placid expression his mind was clearly swirling with activity.

The woman he now calls a traitor, his successor, Megawati Sukarnoputri, who served as his vice-president, was floundering, he said, and "I know that she is in need of me". "Whatever I say now, the people listen. The armed forces and the people listen. And Megawati listens as well because she cannot cope with the situation now."

He spoke with satisfaction of his political future. In the next presidential election, in 2004, he said, his party would rock Indonesia back on its heels with 58per cent of the vote. Last time around, in 1999, it won 10per cent. Any time now, he expected to be returned to power by acclaim. The parliament, backed by the military, "would be issuing a communique to return me to the presidency".

But before accepting the job he would demand a reform of the military promotion system and the arrest of five military and police commanders who disobeyed his orders in July to impose a state of emergency that would have kept him in power.

The former president Soeharto, 80, who now lives, sick and secluded, in his home, would be one of the key players in the changes to come, he said. "You know, Soeharto now is very angry," Wahid said. "Why? Because as he views it Megawati is bent on avenging her father." She is the daughter of Sukarno, Indonesia's founding president, whom Soeharto ousted in 1966.

"We can see that he is still wielding very, very great power," Mr Wahid said, adding that Soeharto's anger posed a threat to the country's stability. Mr Wahid's own role was to be the national peacemaker. "My work is to act, quote unquote, as light as possible, not too much damaging the country. If Soeharto and Megawati die together it will be trouble for us, for the whole country." He meant this literally, he said, "because they can, well, you know, the guards of both people can kill each other".

What did he miss most from his days in power? "The presidency was just a task to finish. I regret more the loss of my collection of Beethoven's Ninth Symphony -- 27 CDs and tapes. The boy that was taking care of it ran away with it, and now I think it's for sale in the market."

Informal sector/urban poor

Jakarta clean-up leaves 80,000 people jobless

Straits Times - October 26, 2001

Marianne Kearney, Jakarta -- The government's city clean-up programme has put thousands of street vendors, beggars, becak drivers and traffic wardens out of work, and left many of them homeless.

The Jakarta administration wanted to get rid of people and activities which it felt were clogging its streets and export its poverty to other cities or the countryside, said Ms Wardah Hafidz from the Urban Poor Consortium.

But she said the scheme had caused at least 80,000 of Jakarta's poorest people, who had become becak drivers or hawkers in the wake of the Asian economic crisis, to become unemployed. "Jakarta wants to beautify Jakarta and wants to free Jakarta from the poor because they say they are a liability."

Becak drivers and food vendors here said they have been sent back to their hometowns or the countryside with a warning not to return. Ridding the city of the poor would allow its administration to attract more investors and in turn, have more revenue to run itself under the new decentralisation law, Ms Wardah said.

Local government officials have frequently conducted violent raids on the informal workers and vendors, who must have government permission to ply their trades. Following a series of such raids, the Jakarta Becak Association launched a class action lawsuit against Jakarta Governor Sutiyoso.

Cities such as Cirebon in West Java are already feeling the effects of the crackdown, as becak drivers flood in. Sociologists have warned of an ensuing public unrest. "The limited job opportunities will be like a time bomb unless we all manage to overcome them soon," said Mr Abdullah Ali of the Islamic Studies Institute, who found there were three becak drivers for every becak in Cirebon.

Parliamentarians have criticised the violent clean-up programme and say they will use their power over regional governments to protest against it.

The Jakarta administration had also forcibly evicted several hundred fisherman it claimed were living on its land, as well as at least one thousand people living under railway bridges in the city. Mr Riwuh, a 45-year-old fisherman who claimed the land he used to live on was allocated to the fishing community 35 years ago, had his shanty destroyed earlier this month by two truckloads of police and thugs who arrived in the middle of the night with bulldozers.

Environment

Who really owns West Java forests?

Jakarta Post - October 22, 2001

Yuli Tri Suwarni, Bandung -- Commission B of the West Java legislative Council, along with non-governmental organizations (NGOs), is processing a long-awaited bylaw on forest management and the distribution of forest products.

The local administration's plan, however, has been opposed by locals, who have not been included in forest management for decades.

According to council records, the province has managed more than 1.5 million hectares of forest located in various areas, while 5 percent of the forest has traditionally belonged to indigenous tribes.

Like other forests in Central and East Java, most of the West Java forests has been controlled by state company PT Perhutani, which is under the central government. Provincial administrations and indigenous people's participation in forest management have been denied.

Yudi Widhiana, a member of Commission B at the provincial legislative council, said 80 percent of the West Java forests had been controlled by PT Perhutani. The rest was controlled by the state Natural Resources Conservation Agency and the people, Yudi said.

Industrial and housing estates are believed to have contributed to deforestation. In West Java, 70 percent of the 770,000 hectares of forest have been destroyed. With the vast destruction of forest area, the question that remains is if the indigenous people still own the forest.

"The local administration has never kept reliable records on the forest. The forest's gradual disappearance has never been accurately recorded or made public," said Yudi.

The indigenous people of West Java have started to demand their right to manage the forest. Representatives of indigenous people swarmed the provincial legislature on Wednesday to protest the interference of the legislature and NGOs in forest management. Dressed all in black and wearing green headbands, locals rallied passersby in front of the legislative building.

It was the first time in history that locals from various areas of West Java marched to the legislature to protest the alleged mismanagement of forests.

In a meeting with members of Commission B of the legislative council, the indigenous people demanded their involvement in any forest management decision-making. They said they did not trust NGOs and legislators any longer. "We no longer trust NGOs and legislators who always claim to represent the public. They are all nonsense," Akbar Saputra, a member of the indigenous delegate, said, while pounding the table in the meeting room. Akbar, who is a resident of Kampung Lebak Samene Tanjungsari, Sumedang, burst into tears.

Other indigenous representatives from Kampung Naga Tasikmalaya, Kampung Dukuh Banjar, Ciamis and Gunung Paok, Sumedang, also attended the meeting. They said that they had been gradually pushed out by outsiders, who had created problems with their forest-related policies.

A representative of Kampung Naga and Dukuh said that water had become scarce in their villages following the destruction of forests by outsiders. A representative from Gunung Paok and Sumedang told those gathered at the legislative council that he was arrested and beaten by local policemen for reporting illegal logging in the village. "The police told me to pay Rp 5 million if I wanted to be released. How could I afford that much money?" said the man. "I won't do anything if I see anymore illegal logging in the future."

Legislator Yudi said that the indigenous people were only complaining about deforestation in their areas, which caused an imbalance in the environment. "Traditionally they have their own system of managing the environment. Hopefully, the bylaw will help them with better management of the forest," Yudi said.

Health & education

Book on Indonesian history to be rewritten

Jakarta Post - October 26, 2001

Fitri Wulandari, Jakarta -- The government will write a new book on Indonesian history in a response to the public's rising demand for the truth, an official said on Thursday.

Susanto Zuhdi, the director of history at the Ministry of National Education, said the government would leave the process of rewriting the history book to the public to avoid any accusations that the book is another government version.

He said that during the previous regime, history books were written mainly to serve the interests of rulers by applying only one version of history. "This is dangerous. A state should not restrain the writing of history. We want to encourage people to write their version of history," Susanto Zuhdi told The Jakarta Post after a media briefing on the National History Conference to be held by the Indonesian History Society (MSI) next week.

Susanto said that since the book would be rewritten by the public, there would be different versions of certain historical events. "History is no longer about a justification of the facts. It should generate dialog to allow different interpretations. We want to educate the public that different versions in history are normal," Susanto said.

The current history book of Indonesia, prepared by the Ministry of Education and Culture, was first published in 1974. For decades, the book was the sole reference for history books, including school textbooks.

Susanto reiterated that the new book would not become the sole reference or standard for the writing of other Indonesian history books. He said that the government would assign the historian society, an organization of history experts, teachers and researchers, to prepare the concept and contents of the new book.

Susanto reiterated that the existing national history book had become obsolete because it did not accommodate new findings in history or new realities in society, which are also a part of Indonesian history, such as the communal conflict in the country. "Our history has expanded. Researchers and experts have found out new things. It will enrich our history, so that it will deal not only with ancient kingdoms," Susanto said.

He said that the new book would have many fresh topics, including violence by the state, the history of conflict, the history of culture, exploration of local history and maritime history. Controversial historical events such as the September 30, 1965 aborted coup and East Timor will be presented along with developing versions.

"There is a lot of room that we have to fill in about our history. There are many issues that we haven't explored or have neglected," Susanto said, adding that the process to rewrite the new book could take up to at least two years.

Formula milk 'not against breast-feeding'

Jakarta Post - October 25, 2001

Fitri Wulandari, Jakarta -- Infant formula producers denied allegations on Wednesday that they had exploited breast-feeding experts to promote their products."Instead of taking advantage of these experts to promote our products, we fully support the campaign for exclusive breast-feeding," Cecep Fathoni, the secretary-general of the Association of Baby Food Producers (APMB), said.

Cecep said that if infant formula producers invited experts or prominent figures in the breast-feeding campaign to speak at any seminar, it was part of their efforts to help the campaign succeed.

According to a recommendation from the World Health Organization (WHO), babies should be breast-fed from birth to four months old at least, but Indonesia has yet to adopt the recommendation. Breast-feeding babies in their early months is crucial as it gives them antibodies to fight childhood illness and other common diseases. "Don't interpret the invitation as a form of exploitation because our objective is the same -- supporting the breast-feeding campaign," Cecep told The Jakarta Post on Wednesday.

Cecep made the remarks after consumer protection activists accused the infant formula producers of approaching experts as part of a hidden campaign to promote their products. The accusation was made due to a declining rate in exclusive breast- feeding in Indonesia following aggressive marketing of infant formula products in hospitals and other health care facilities.

This is against the International Code of Marketing Breast Milk Substitute from the World Health Organization and is in violation of government regulations, the activists said.

Indah Suksmaningsih, the chairwoman of the Indonesian Consumers Foundation (YLKI), said the infant formula producers might have run out of ideas for promoting their products. "We suspect that they are initiating a new strategy to promote their products," Indah said at a media briefing at St. Carolus Hospital on Monday.

Indah's comments were made in response to a complaint made by Utami Roesli, a physician at St. Carolus Hospital and an active campaigner of exclusive breast-feeding, about an advertisement in a mother-child health care tabloid which said she was scheduled to appear at a seminar on breast-feeding that was sponsored by an infant formula producer.

As a supporter of the breast-feeding campaign, she refuses to appear at seminars sponsored by infant formula producers. St. Carolus Hospital has also refused to distribute infant formula to new mothers staying at the hospital. "Not one infant formula producer can approach us. The advertisement makes it look as if we have softened our stance and can be bought," Utami said.

Teachers call for law providing legal protection

Jakarta Post - October 25, 2001

Fitri Wulandari, Jakarta -- Teachers, long deploring small pay and being treated as "cash cows" by corrupt officials, are calling for a law that provides legal protection.

They say that although corruption between school administrators and government officials is very well-known, their activities have received inadequate attention from authorities.

Teachers grouped in the Education Advocacy Institute (LAP) and Indonesian Forum for Contract Teachers (FGHI) accompanied by the Indonesian Corruption Watch (ICW) raised their concerns Tuesday with the Jakarta City Administration, the Jakarta Provincial Legislative Council and the Ministry of Education.

LAP chairman Sonny Sumarsono said when meeting with ministry officials that teachers were helpless because the relevant agencies turned a "deaf ear" to their troubles. "They simply do not follow up our reports," Sonny said.

The Indonesian Teachers Association (PGRI), the official organization, has been considered ineffective because most of its executives are also ministry bureaucrats. It has been widely criticized for being "insensitive" to teacher needs, especially their demand for better welfare. Teachers at private schools are subject to arbitrary dismissal and their meager salaries subject to "unexplained deductions," according to Sonny.

Supriyono, FGHI's chairman, pointed out that the condition would never improve unless teachers were provided with legal protection. Contract teachers are the most vulnerable to discrimination in terms of salary, employment status and opportunities to pursue higher education and promotion.

"We teachers live in constant fear. We can lose our job any time. We need a clear rule on the minimum wage level and employment status," Supriyono said.

Heni Yulianto of ICW insisted that a law for teachers was necessary to improve teachers' bargaining position. "Workers have strong backing from international bodies such as the International Labor Organization (ILO) but teachers don't have such support and are always in a difficult position," Heni said.

Ministry officials promised to look into the teachers' complaints. Sunardi Dwidjosoesastro, the ministry's spokesman, said the government was considering a law that would address teacher needs.

But the teachers have little hope that any law protecting them would come about in the near future, because the government is still working on a revision of Law No. 2/1989 on the national education system, which has been submitted to the House of Representatives. "The law on teacher protection will only be considered after the education bill is passed," Sunardi said.

Religion/Islam

Two more non-Muslims assaulted in Makassar

Jakarta Post - October 25, 2001

Jupriadi, Makassar -- Muslim students in Makassar ignored explicit warnings from police, attacking and severely injuring two non-Muslims on Wednesday.

Tedy Hermanto, 21, and Aris Tandililing, 27, were assaulted by dozens of students from the Indonesian Muslim University, in front of their city campus. The assaults stopped after an assistant to the university rector went into the street and dispersed the students.

Similar assaults occurred on Tuesday when four non-Muslims were severely beaten by the university's students, who were upset by the burning of an Osama bin Laden effigy in the predominantly Christian town of Tondano, Minahasa Regency, in North Sulawesi on Sunday. Prior to the incident, local police expressed concern over the attacks on Tuesday, saying that such violent acts of intolerance would never happen in the city again.

South Sulawesi Police chief Insp. Gen. Firman Gani said here on Wednesday that the police would take action against those involved and would not tolerate any similar incidents occurring in the province. "I have ordered Makassar Police chief Sr. Comr. Amin Saleh to take strict but measured actions against those involved in the students' acts of searching for and assaulting non-Muslims, because it has caused unrest among residents in the city," he said.

Firman was making a correction to a previous statement responding to the assaults, in which he said that he would hold a meeting with the students to avoid such incidents in the future. Firman also instructed the local police to closely monitor student activities at other universities to prevent any possible unrest in the city. "The police will step up security on campuses and will take strict, measured actions against those violating the law," he said.

He warned that security personnel would be ordered to use repressive measures if students ignored their warnings. "We have held several discussions with students in campuses in the city to explain what actions the police will take when handling such incidents," he said.

Firman said he had also met with the Forum of Religious Leaders to discuss the attacks and steps that have to be taken to avoid further acts of violence. "I have urged the Indonesian Ulemas Council (MUI) and Muslim leaders to be more proactive in developing communications with Muslim people so that such incidents will never happen again," he said.

Meanwhile, Al Markaz Al Islami Youth Organization chairman Faisal Attamimi condemned the assault of non-Muslims, saying the police must take action against those involved in the incident because it was illegal. "I want to assert here and now that those who assaulted the non-Muslims do not represent Muslim people in the province," he said in a media conference. He added that what the Muslim students had done against the non-Muslims had damaged Islam.

International relations

US understands Megawati's stance, says new envoy

Jakarta Post - October 26, 2001

Jakarta -- The new US Ambassador to Indonesia said on Thursday that Washington fully understood the position which President Megawati Soekarnoputri had taken with regard to the US attacks on Afghanistan.

Ralph L. "Skip" Boyce, during a meeting with senior local journalists, denied suggestions that relations between Indonesia and the United States had cooled over remarks by Megawati that were seen by some as a veiled attack on US policy in Afghanistan.

"We greatly value and welcome Indonesia's willingness to join in international efforts against terrorism. Like all friends, we may occasionally disagree about proper tactics. But, I hope nothing ever undermines our cooperation on our common goal of eradicating terrorism from the world."

Boyce, a career diplomat who presented his credentials to President Megawati in Jakarta on Wednesday, could not have asked for a more challenging task as he began his tenure in Jakarta. Besides facing anti-American protests following the US air strikes in Afghanistan, a statement from Megawati last week in which she said that no country had the right to attack another and that blood must not be paid for with blood, appeared to have irritated Washington.

A travel advisory warning American citizens against traveling to Indonesia remains in place and the US Embassy in Jakarta has sent home some non-essential staff and many staff dependents. Most of them have apparently not returned although the threats against American citizens and interests which were made by a number of radical groups appear to have receded.

Boyce said Megawati's statement had not become a bone of contention in Washington. He also denied that US President George W. Bush had snubbed Megawati when the two leaders failed to meet while in Shanghai for an Asia Pacific summit at the weekend.

While Megawati had personally given Indonesia's unequivocal support to the US campaign against terrorism when she was in Washington last month, Jakarta has insisted that such a campaign must be collective in nature and led by the United Nations.

Indonesia's Minister of Foreign Affairs Hassan Wirayuda had subsequently warned the United States that if the US military campaign continued into the Muslim Ramadhan fasting month, which starts in mid-November, the impact could be destabilizing on predominantly Muslim countries, including Indonesia.

Boyce rejected on Thursday the suggestion by Saudi-born Osama bin Laden, the man Washington blames for the terrorist attacks on the United States last month, that this was a war between the West and Islam. "This is an outrageous fallacy. The United States, which has the highest number of Muslims of any country in the Western Hemisphere, has nothing but the highest regard for Islam," said Boyce, whose early career in the foreign service included stints in Middle Eastern countries.

"In the past 10 years alone, we have repeatedly intervened to assist and protect our Muslim friends in Bosnia, Kuwait, and yes, even in Afghanistan, where we have been the world's largest donor of humanitarian assistance since the early 1990's."

On Washington's attitude to Indonesia, Boyce said the United States remained committed to supporting the current transition to democracy and economic recovery. "We are here to support Indonesia for the long term. But you can also count on us in the short term for help," he said, as he announced a prompt US$25,000 in assistance for Jakarta to help with the victims of the massive flooding in Central Java this week.

Prior to his assignment to Jakarta, Boyce had been deputy assistant secretary for East Asia and Pacific Affairs at the State Department since 1998. Although he has never served in Indonesia before (he had previous postings in Thailand and Singapore), Boyce said Indonesia dominated his agenda when he was deputy assistant because of the importance of Indonesia, considered an emerging democracy, to the United States.

Had the September 11 terrorist attacks on the United States changed Washington's perception of Indonesia? Boyce said Indonesia, with the world's largest Muslim population, had become even more important to Washington, certainly in the State Department's list of priorities.

Bad Canberra-Jakarta ties surface at Apec

Straits Times - October 23, 2001

Marianne Kearney, Jakarta -- Canberra's strained relationship with Jakarta was highlighted at the Apec summit over the weekend when Indonesian President Megawati Sukarnoputri refused to meet Australian Prime Minister John Howard.

Indonesian Foreign Minister Hassan Wirajuda played down the rift, saying Ms Megawati could not schedule a meeting, even though she met leaders from Singapore, Peru, China, New Zealand, South Korea and Canada. "As you know, arrangements for meetings had been made some time before, and President Megawati had a busy schedule while she was here," he told a press conference at the Asia- Pacific Economic Cooperation summit.

Mr Howard received scathing criticism from both the opposition Labor Party and Australian papers for failing to set up a meeting to discuss the tide of illegal immigrants who use Indonesia as a stepping stone on their journey to Australia. "If you want a permanent fix to the problems of penetration of our borders by illegal immigrants, you have to get as part of the solution an agreement with Indonesia," said Labor Party leader Kim Beazley. "It's quite evident that John Howard can't do that." Indonesian papers have speculated that Ms Megawati is annoyed with Mr Howard for his criticism of Indonesia's changing position over the United States-led attacks on Afghanistan. However, commentators said the diplomatic stand-off began when Mr Howard insisted publicly that Indonesia should accept 433 boat people stranded just off Australian waters.

"Personally, she is probably irritated and wouldn't want to meet him and probably doesn't like the man. She's meeting all the people she wants to meet who will be far more beneficial," said Mr Harold Crouch from the International Crisis Group, a consultancy for political issues. Ms Megawati would be far more interested in tying up trade and aid deals than discussing the relatively insignificant problem of stopping a few hundred illegal immigrants, particularly as Indonesia has 1.3 million internal refugees, said Mr Crouch.

But in Australia, preventing the flow of illegal immigrants, many of whom come from Afghanistan, has become a hot political issue. Both Indonesian and Australian editorials have accused Mr Howard of using the illegal immigrants issue to win votes ahead of next month's national elections, while damaging Australia's relationship with Indonesia.

Mr Howard's popularity soared when he turned back 433 stranded refugees last month. "The Howard government is determined to keep the asylum seekers issue offshore, and its determination is clearly driven by domestic political considerations," said an editorial in yesterday's Sydney Morning Herald. "Spending hundreds of millions of dollars on naval patrols and processing centres in the Pacific is clearly unsustainable. Only regional cooperation, based on mutual respect, can produce enduring solutions. This requires committed, long-term diplomacy, starting with a fresh approach to Indonesia."

Meanwhile, the influential Media Indonesia in its editorial called Mr Howard a "childish politician who does not know neighbourhood ethics, and is slightly racist". The paper also accused him of meddling in Indonesia's domestic affairs.

It suggested that Indonesia should ignore the "irritating voice of the country, once the home of criminals from Britain".

Economy & investment

Jakarta must go ahead with privatisation plan: IMF

Business Times - October 24, 2001

Shoeb Kagda, Jakarta -- As emerging market assets lose their shine in the current global environment, Indonesia faces an uphill task in implementing its privatisation programme, but not going ahead with it would prove more detrimental for the country in the long term, said the International Monetary Fund's senior resident representative yesterday.

Speaking to a select group of reporters, David Nellor noted that President Megawati Sukarnoputri's government will have to make tough commercial judgements on whether to sell these assets at a lower price under current depressed market conditions or allow them to "rust" over time.

"It's important that some privatisation moves forward quickly," he said. "Timeliness is crucial and getting the first one done is always difficult." Apart from the long-term economic dividend the country will reap by privatising its state-owned enterprises, such a move will also send a strong signal to investors that the government remained committed to its goals and as such would boost international confidence in Indonesia.

Answering a question on whether the IMF would suspend its aid package to Indonesia if the government failed to meet the target of raising 6.5 trillion rupiah (S$1.17 billion) for this year, Mr Nellor said the IMF would see how the situation played out. "Privatisation is an important element of the IMF's programme and the government's Budget ... but it is not the sole reason for us to suspend the programme," he noted.

Mr Nellor added that while the IMF's recovery programme for Indonesia was not in danger of collapsing if the government did not push ahead with its privatisation programme aggressively, not doing so now would, however, diminish its effectiveness. "I don't think that failure of the privatisation programme means that the IMF programme collapses, but it means that the economy would grow more slowly over time and that would diminish the IMF's programme for Indonesia," said Mr Nellor.

Given that the government needs the receipts from its privatisation programme to reduce its Budget deficit, the government will be forced to cut development spending to balance the Budget if these receipts are not forthcoming, leading to harmful consequences.

As such, the government needs to educate both Parliament and society at large on the long-term benefits of privatisation and display the political will to override vested interest groups, which have up to now blocked some privatisation deals. "The issue is the sale of state assets versus a reduction in development spending," said Mr Nellor. "This is a political judgement that the government will have to make at the end of the day."

Time running out for Indonesia to sell assets: IMF

Straits Times - October 24, 2001

Robert Go, Jakarta -- Potholed roads, crumbling hospitals, torn school books -- that is the bleak picture in store for Indonesia if the government fails to sell immediately some of its assets to investors, warned the top official of the International Monetary Fund (IMF) in Jakarta.

IMF Senior Resident Representative David Nellor said during a press briefing yesterday that the government had to raise some quick cash by selling state-owned companies and assets it took over during the financial crisis.

Otherwise, Jakarta would be forced to redirect money slated for development -- building schools, health clinics, roads or bridges -- to pay its other bills and service its mounting debts. "If the government is unable to secure revenue from privatisation, the choice is to reduce development spending on infrastructure, education, and health care," Mr Nellor said.

Such government action threatens to make life more difficult for around 50 per cent of the population. Analysts said about that many already live below or near the poverty line.

International investors -- already spooked by political instability and sectarian violence in Indonesia and the declining global economy -- could view the asset-sale delays as an indication of Jakarta's lack of commitment to revive its private sector. Said Mr Nellor: "Selling key assets is important, as it signals the government's seriousness towards achieving reforms. It enhances the government's credibility."

Incidentally, the minister in charge of asset sales and privatisation in Indonesia happens to be Mr Laksamana Sukardi, a former banker with a clean reputation and a "tough executive" professional record.

But President Megawati Sukarnoputri's three-month-old government has yet to produce concrete results on privatisation. Bank- restructuring agency Ibra, tasked with managing and selling nationalised assets valued three years ago at more than 650 trillion rupiah (S$123.5 billion), is far short of this year's revenue target of 27 trillion rupiah.

Jakarta has also failed so far to get a single rupiah for the 16 state-owned companies that are slated for sale by December to fetch a total of 6.5 trillion rupiah. Parliament, which does not actually have the right to rule on the government's privatisation efforts, has also blocked several sale plans.

From the IMF's point of view, and that of other international creditors, Indonesia is running out of time. Mr Nellor said: "It's not a question of if, but of when, assets should be sold. The quicker, the better." Given the economic conditions in the region and globally, waiting any longer to sell the assets might actually be detrimental to Indonesia's interests, he added.

House approves long-awaited new oil, gas law

Jakarta Post - October 24, 2001

Jakarta -- The House of Representatives finally approved on Tuesday a long-awaited new oil and gas law, which will end the decades-old lucrative monopoly of state oil and gas firm Pertamina.

During the House plenary session, the small Love the Nation Democratic faction (FPDKB) asked the House to delay until December its approval for the new law so as to give more time to legislators to thoroughly debate the bill.

The request was rejected.

The new law, which replaces the Oil and Gas Law No. 44/1960 and Law No. 8/1971 on Pertamina, is aimed at liberalizing the country's oil and gas sector by abolishing Pertamina's regulatory and contract-approval roles. Under the new law, the government will set up executive and regulatory bodies to take over Pertamina's previous roles.

The executive body will take over Pertamina's role in dealing with foreign oil and gas contractors, while the regulatory body will manage domestic fuel supplies and distribution. The new law stipulates that the two bodies must be established within one year after the enactment of the law, while Pertamina must become a limited liability company within two years. Once the executive body has been established, Pertamina will no longer enjoy retention fees of about Rp 6 trillion (US$600 million) per year.

But after the company becomes a limited liability company it will only have to pay normal corporate tax of around 35 percent, compared to the tax of 60 percent that it must currently pay to the treasury. Pertamina will continue to be obliged to distribute fuel at home for four years after the enactment of the law.

The new law also maintains the current production-sharing contract scheme, but also leaves room for other types of contractual schemes with investors as long as they are beneficial for the country. Under the new law, every contractor is allowed to choose either to pay taxes in accordance with the tax regulations in effect when their contracts were signed, or in accordance with prevailing regulations.

Investors are also obliged to undertake community development work, something which was not provided for under the previous law. The new law also obliges investors to supply gas to the domestic market so as to guarantee supplies.

Meanwhile, 10 legislators rejected the law saying that it was against the Constitution, arguing among other things that the state should not be allowed to directly negotiate with oil and gas contractors. Previously, the Consultative Forum of Oil Producing Regencies and some executives of foreign oil and gas companies also protested the bill for failing to accommodate their interests.

"We have worked very hard to complete it ... we see that the new law is much better than the existing law," legislator Emir Muis of the PDI-Perjuangan faction said in his address to the plenary session. "It is time to end the [Pertamina] monopoly era. We also want Pertamina to compete with other firms so that it can become a world class oil and gas company," Cornelis Tapatab of the Golkar faction said.

House agrees on 30% increase in fuel prices

Jakarta Post - October 23, 2001

Dadan Wijaksana, Jakarta -- The House of Representatives budget committee approved on Monday a government proposal to increase fuel prices by an average 30 percent starting January next year, but delayed once again the completion of a crucial debate on the 2002 draft state budget.

The fuel price increase will reduce the government fuel subsidy and help ease the burden on the state budget. "The 30 percent increase is final. We cannot afford an increase of more than that," committee chairman Benny Pasaribu said during the debate, which was also attended by Minister of Finance Boediono.

Benny also warned that the increase would be introduced gradually to avoid negative reactions from the public.

Fuel price increases have been a politically sensitive issue in the country as it affects almost all sectors in society. The fuel subsidy reduction is part of the cash-strapped government's agreement with the International Monetary Fund, which has pledged a multibillion dollar loan to help the country resolve its economic problems. Government spending on the fuel subsidy for next year is set to decrease from this year's Rp 53.77 trillion (US$5.33 billion).

The House budget committee, however, has yet to decide on the exact amount to be allocated for the fuel subsidy, pending further discussion on the subject. The government previously proposed a Rp 32.92 trillion fuel subsidy.

Monday's session decided that the volume of fuel to be subsidized by the government would total 52.77 million kiloliters, which is below the 55.79 million kiloliters proposed by state oil and gas company Pertamina. Pertamina had argued that its figure was based on the expected real fuel demand next year. But the House decision means that any excess demand would not be subsidized by the government, which would force Pertamina to sell at international prices.

The amount of fuel to be subsidized is 12.91 million kiloliters of premium, 19.97 million kiloliters of automotive diesel fuel, 1.7 million kiloliters of industrial diesel fuel and 6.85 million kiloliters of fuel oil.

During Monday's deliberation, the committee questioned Pertamina's ability to eradicate rampant fuel smuggling and improve the company's efficiency. The massive government fuel subsidy has encouraged rampant fuel smuggling out of the country.

Director General for Oil and Gas Rachmat Sudibyo said that so far, although a special team had been set up to solve the problem, fuel smuggling had remained very difficult to deal with. He cited a low budget as the biggest obstacle.

Elsewhere, Benny ensured that despite the delay the committee would be able to complete the budget debate on Tuesday to allow the House plenary session to approve the proposed state budget on Wednesday, before the House starts its month-long recess. "Hopefully the [plenary] meeting will go ahead as scheduled," he said.

The committee was supposed to complete the debate last week. The delay has raised concerns that the House might have to approve the budget after the recess period in December. This would create various problems, including difficulties for regional administrations to draw up their own budgets, which could in turn lead to fresh social and political unrest in the country. "I hope there won't be any more obstacles [to finishing the job]. We'll complete the debates tomorrow [Tuesday]," Benny said.

The committee had earlier approved the 2002 budget assumptions, which had to be revised amid the looming world economic slump. The assumptions include economic growth of 4 percent (from the original projection of 5 percent), a 9 percent inflation rate (from 8 percent), an exchange rate of 9,000 per US dollar, Bank Indonesia promissory note (SBI) interest rate of 14 percent, oil price of $22 per barrel (unchanged).

The committee had also approved the various components of state revenue including tax revenue of Rp 219.63 trillion, and nontax revenue of Rp 82.25 trillion. Tuesday's debate will focus on nonfuel subsidy issues including the planned subsidy for electricity, another sensitive and difficult issue.

The government has proposed a Rp 14.524 trillion nonfuel subsidy.

History & people

1965: What the US and Britain knew but never revealed

Tapol Buliten - October 2001

[The recent (inadvertent) release of more cables between the US embassy in Jakarta and Washington in late 1965 has supplied more pieces of the jigsaw puzzle mapping Washington's enthusiastic support for the Indonesian army's bloodthirsty crackdown against the Indonesian Communist Party when up to a million people were slaughtered. Also, a new book published in July shows how the British embassy helped to spread misinformation about what was happening in Jakarta.]

Both Washington and London were of the opinion years before these events that President Sukarno should be removed. The communist party was growing fast in a country of strategic and economic importance to both Britain and the US. Sukarno had gone too far in his advocacy of a policy of non-alignment and his friendly links with the Soviet Union and China.

After the CIA's disastrous involvement in the regional rebellions of the late 1950s, Washington changed tack and now saw that its interests lay in building close ties with the Indonesian armed forces under its commander, General A.H. Nasution. In mid 1960, Nasution proved his worth by using special martial law powers to ban the communist party in three provinces, South Sumatra, South Sulawesi and South Kalimantan. (The bans were later rescinded on the president's orders.)

Liquidating Sukarno

While on a visit to Washington in September 1960 for talks with the State and Defence Departments, General Nasution was given an assurance of US support in the event of a showdown between him and Sukarno over the communist issue. Assistant Secretary of State Graham Parsons was given the authority to tell Nasution that "We are aware of and heartened by recent actions which the Army has taken to curb Communist power ... If American help is wanted in the form of military and economic assistance, the United States in such circumstances does its best to be helpful and quickly ... We would like General Nasution to feel that the United States would wish to be helpful to Indonesia too in such circumstances." Five years later, the US had the chance to honour that pledge.

Britain was also in on the act. A CIA memorandum of June 1962 stated that President Kennedy and Prime Minister Harold Macmillan had agreed at a meeting in April that year that it was desirable to "liquidate Sukarno, depending on the situation and available circumstances".(2) Britain's hostility towards Sukarno went back many years and intensified after he launched his konfrontasi policy against the establishment of Malaysia in 1963. There were even British and Australian plans to spread the war being waged along the border between Indonesia's Kalimantan and the northern territories of Borneo to other parts of Indonesia.(3) The animosity towards Sukarno continued after Labour took over from the Tories in 1964.

Supporting the massacre

The action taken by a group of army officers in Jakarta on 1 October 1965, when six generals were kidnapped and killed ostensibly in a move to pre-empt a coup against Sukarno, led within hours to a counter-attack and to a counter-coup by General Suharto. A massacre of unprecedented proportions against the PKI and its millions of supporters was soon underway and Suharto slowly but surely undermined and eventually ousted Sukarno, installing himself as president.

On 5 October 1965, in what was probably his first comment on the events of 1 October, the British ambassador, Andrew Gilchrist said in a letter to the Foreign Office: "I have never concealed from you my belief that a little shooting in Indonesia would be an essential preliminary to effective change in Indonesia, but it makes me sad to think that they have begun with the wrong people." Soon his hopes for "a little shooting" against the "right people" were to be fulfilled, beyond his wildest dreams.

Within days of the murders on 1 October, both the British and US ambassadors were directing their attention to blackening the PKI and destroying the credibility of Sukarno. On 6 October, without waiting for any evidence of the PKI's involvement in the murder of the generals, the British embassy in Jakarta advised British intelligence headquarters in Singapore about the line to be taken regarding events in Jakarta: "...we certainly do not exclude any unattributable propaganda or psywar activities which would contribute to weakening the PKI permanently. Suitable propaganda themes might be: PKI brutality in murdering Generals and Nasution's daughter ... PKI subverting Indonesia as agents of foreign Communists ... But treatment will need to be subtle, e.g (a) all activities should be strictly unattributable, (b) British participation or co-operation should be carefully concealed ... (d) material should preferably appear to originate from Pakistan or Philippines."(5)

Although Britain and Indonesia were still in a state of war, it was in Britain's interests to ensure that the Indonesian army should now concentrate its forces on destroying the PKI. A cable from the Political Adviser (POLAD) to the Commander-in-Chief Far East in Singapore to the Foreign Office in London on 8 October referred to a suggestion of Ambassador Gilchrist in Jakarta "that we should get word to the generals that we will not attack them whilst they are chasing the PKI. The C-in-C thinks this has some merit and might ensure that the Army is not detracted from what we consider to be a necessary task."

On 5 October, the US ambassador, Marshall Green, said in a cable to Washington that events in Jakarta "may embolden army at long last to act effectively against Communists". Weighing up what the US could do to "shape developments to our advantage". Green set out a number of guidelines, Point B of which was: "to overtly indicate clearly to key people in army such as Nasution and Suharto our desire to be of assistance where we can", while Point E was: "spread the story of PKI's guilt, treachery and brutality (this priority effort is perhaps the most needed immediate assistance we can give army if we can find way to do it without identifying it solely or largely as US effort."(6)

On 20 October 1965, Ambassador Green reported to Washington that "the [communist] party has received ... blow to its image ... and some damage to its organisational strength through arrest, harassment and, in some cases, execution of PKI cadres ... Some thousands of PKI cadres have reportedly been arrested in Djakarta area alone and several hundred of them have been executed." While admitting that the PKI organisation may still be largely intact, Green concluded by saying: "the army has nevertheless been working hard at destroying PKI and I, for one, have increasing respect for its determination and organisation in carrying out this crucial assignment."(7)

A memorandum on the Indonesian army circulated within the State Department early in November said the army's relations with the Pentagon ere based on associations developed during training in the US and were "gounded on trust, respect and a network of deep personal friendships". Going on to consider how the US government might support the army, it said: "in the life and death struggle which has finally been joined with the PKI, the Army deserves our support."(8)

The chances of providing that support were soon to present themselves. A senior intelligence officer, Sukendro got in touch with the US embassy in Bangkok in late October to ask Washington for assistance. This included "small arms to arm Moslem and nationalist youths in Central Java for use against the PKI". According to the Bangkok embassy, "Sukendro was obviously pleased with the favourable response to his request on behalf of the Indonesian Army leadership.". Covert arrangements would take the form of the "army's ostensible purchase of medicines and a review of the medical list by Sukendro's doctor."(9) Nothing is yet known about quantity of arms supplied as "Medicines" but they had been requested to arm non-military killers and make the anti-PKI slaughter appear to be a "popular" reaction to the events of 1 October.

A cable from Marshall Green the previous day said: "In Central Java army (RPKAD) is training Moslem youth and supplying them with weapons and will keep them out in front against the PKI. Army will try to avoid as much as it can safely do so direct confrontation with PKI." He added: "smaller fry are being systematically arrested and jailed or executed."

Britain's black propaganda campaign

The points made in the British embassy's note of 6 October led to the opening in Singapore two weeks later of an office of the Foreign Office's Information Research Department (IRD). It was headed by Norman Reddaway, one of the Foreign Office's most experienced propaganda specialists, and chosen by Gilchrist as the best man for the job.

Reddaway's prime target was the BBC's Southeast Asia correspondent, Roland Challis whose book, published earlier this year exposes the methods used by Reddaway and Gilchrist to spread black propaganda about what was happening in Indonesia.(10)

The brief of IRD (set up in 1948 and disbanded in 1977) was to "collect information about communist policy, tactics and propaganda and to promote anti-communist policy via missions and information services abroad". But IRD in Singapore had an extra brief, explained in a note from Reddaway to Challis: "... do anything you can think of to get rid of Sukarno". IRD's strategy was threefold, to target the PKI, to tar Sukarno with the communist brush and to provide documentary support for Suharto's interpretation of the events of 1 October 1965. Foreign journalists relied almost exclusively on information from this single source, since they were not able till mid 1966 to visit Indonesia though, as Challis writes, "MI6 agents came and went at will".

Reddaway's main source of information was top secret telegrams, about four a week, by diplomat pouch from Gilchrist in Jakarta. Besides this of course, information was flowing into the IRD office from other sources, through intercepts, and from US and Australian intelligence sources all of whom knew exactly what was going on but, writes Challis, "Control of information was rigorous. No word of the slaughter came my way." Other British media on the receiving end of the IRD's doctored reports were The Times, Daily Telegraph, Observer and the Daily Mail. A quick perusal of the distortions that appeared in the British press, "civil war", "armed communist gangs" and so on, as the massacres progressed show how successful this black propaganda was. No wonder there was not a murmur of protest in the UK to stay the hand of Suharto's killers.

When Reddaway was asked by Gilchrist many years later to summarise some of the stories re-cycled from the embassy through the IRD, his list included the following: "various sitreps from yourself which were put almost instantly back to Indonesia via the BBC. You may remember complaining that the versions put back were uncomfortably close to those put out by yourself."

What the embassy really knew

Documents released by the Public Records Office in the mid-1990s, in accordance with the 30-year rule, include many cables from the embassy to the Foreign Office in London which show how closely British diplomats were following the slaughter. And they were liaising closely with the Americans and the Australians in a joint effort to "try to keep a score".

In a cable dated 13 January 1966, James Murray, British Charge Affaires wrote: "It is a matter for constant speculation here how many Indonesians have been killed ... since 30 September ... The Americans, with their considerable intelligence resource, try to keep a score and I understood their latest estimate was about 150,000. A report that the Australians have from a police source puts the deaths in Bali alone at 28,000."

On 23 February 1966, Gilchrist wrote a three-page report containing the findings of the Swedish ambassador who had been able to make a tour of Central and East Java in the company of a Swedish engineer who was inspecting telephone exchanges installed by Ericsson. Travelling with his Indonesian wife, the ambassador was able to speak to lower-ranking officials out of earshot of government officials. Here are extracts from his letter:

"The Ambassador and I had discussed the killings before he left and he had found my suggested figure of 400,000 quite incredible. His enquiries have led him to consider it a very serious under- estimate."

"A bank manager in Surabaya with 20 employees said that four had been removed one night and [to his certain knowledge] beheaded. A British expert employed in setting up a spinning factory near Surabaya said that about a third of the factory technicians, being members of a Communist union, had been killed. ... The killings in Bali, according to what the Ambassador could pick up, had been particularly monstrous. In certain areas, it was felt that not enough people had been killed."

The man who had spoken of the need for "a little shooting" four months earlier now appeared to be horrified himself at what was happening. Needless to say, none of this was allowed to leak out to the public.

It was clearly with Western connivance that the true horror of the killings unleashed as Suharto took control of Indonesia were kept secret. No wonder that even today, few commentators or journalists have any notion of Suharto being a genocidal killer and his name is never mentioned when people call for the world's worst criminals against humanity to be called to account.

Endnotes

1. US National Archives, RG 59 Records of DOS, Decimal File 1960-63.The document was cited in Roland Challis, Shadow of a Revolution, 2001, Sutton Publishing Ltd, p 48.
2. James Oliver and Paul Lashmar, Britain's Secret Propaganda War, Sutton Publishing Ltd, 1998, p 4.
3. Ibid, p. 5.
4. Letter from Andrew Gilchrist to E.H. Peck, head of the Southeast Asia Division at the FO, 5 October 1965.
5. British embassy cable to POLAD (Political Adviser) Singapore, No 1835, 6 October 1965.
6. Cable No 868. Ref: Embtel 852, 5 October 1965.
7. Cable No 1090, RG 59, Central Files 1964-66, POL 12 INDON.
8. Memorandum from Office of Southwest Pacific Affairs to Assistant Secretary of State for Fear Eastern Affairs, 3 November.
9. RG 59, Central Files 1964-66, POL, 23-9 INDON, 5 November 1965.
10. Roland Challis, Shadow of a Revolution: Indonesia and the Generals, Sutton Publishing Ltd, 2001.
11. Challis, p 102.