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Indonesia/East Timor News Digest No 5 - February 3-9, 2002

East Timor

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East Timor

UNTAET and government denounce domestic violence

UNTAET Daily Briefing - February 6, 2002

Dili -- Representatives of UNTAET and the Government of East Timor today held a press conference in Dili as part of an ongoing campaign to eradicate domestic violence.

UNTAET's Civilian Police Commissioner Peter Miller, Director of Human Rights Unit Patrick Burgess, and Maria Domingas Fernandes, the Chief Minister's Advisor for the Promotion of Equality all spoke at the event.

"Domestic violence is not a problem for the police alone. As a police service, we must recognize the devastating effect of domestic violence on our communities and we must take steps to address it," the Police Commissioner said.

Miller also quoted Chief Minister Marm Alkatiri, who last December said "Domestic violence is on the increase and lots of people consider beating a wife a private matter not to be discussed publicly...Our women and girls should enjoy their freedom without violence."

Maria Domingas Fernandes said that it would take time to eradicate domestic violence, and called for a spirit of peace to be built beginning in the home. She also stressed the "need to stop all forms of traditional justice and create formal mechanisms based on the law to protect women's rights."

Patrick Burgess stressed that domestic violence is primarily perpetrated by men, therefore "men are the ones who need to change mentalities -- not to be violent, but also not to allow others around them to be violent."

According to the Civilian Police's Vulnerable Persons Unit there were 382 cases of domestic violence reported last year. However, this figure is believed to represent only 15% of the total cases.

Today's press conference, organised by UNTAET's Office of Communication and Public Information, is part of a nationwide campaign using television, radio and other media to disseminate information on domestic violence throughout each of East Timor's 13 districts. The campaign works in concert with the Vulnerable Person's Units in each district.

Xavier do Amaral registers as first presidential candidate

Lusa - February 5, 2002

Francisco Xavier do Amaral, the vice-president of East Timor's Constituent Assembly, has registered formally as the first candidate in the territory's April 14 presidential election, electoral officials said Tuesday.

Amaral, backed by the extra-parliamentary PARENTIL party, formalized his candidacy in Dili Monday, the first day of the 19-day registration period, officials said.

Local analysts said Amaral's initiative brought a sense of relief to election organizers who had worried that veteran independence leader Xanana Gusmao, a virtual shoe in, would be the only candidate.

Bowing to domestic and international pressure, Gusmao announced last year he would stand for the presidency, but has yet to formalize his bid.

Leader of the ASDT party with six assembly seats, Amaral served as president of the short-lived "democratic republic" proclaimed by Fretilin in 1975, on the eve of Indonesia's invasion of East Timor. After the invasion, Amaral was expelled from Fretilin, today East Timor's dominant political force.

It was not immediately clear why Amaral's candidacy was promoted by the tiny PARENTIL party rather than by his own party, the Timorese Social Democrat Association (ASDT).

Timorese fear being sidelined by political elite: survey

Associated Press - February 7, 2002

Dili -- As East Timor prepares for full independence in May, voters lack information about the draft of the country's new constitution, according to a survey released Thursday.

The survey, conducted by the National Democratic Institute for International Affairs, found that many East Timorese were concerned about how the new national charter would impact the interests of ordinary people. It said that although the most people were optimistic about the future, they feared an elite- driven political process that isn't accountable to the people.

"It is not a question of whether the East Timorese are ready for democracy, it is whether they will be given enough opportunity to participate," said Jim Della-Giacoma, country director of the US-funded democracy advocate group.

After voting for independence from Indonesia in 1999, East Timor is currently under the administration of the UN In August last year, an 88-member assembly was elected to draft the country's new constitution. The constitution is expected to be completed in March, ahead of full independence on May 20.

Although the assembly's proceedings are open to the public and broadcast on national radio and television, the majority of East Timorese outside the capital don't have access to information about it.

NDI said a representative group of 85 voters were polled for the survey. Participants were asked their opinion on the constitution, elections, political groups, local government and security. No margin of error was given for the survey.

Villagers protest over East Timor refugees

Jakarta Post - February 8, 2002

Yemris Fointuna, Kupang -- Possible clashes are looming between East Timorese refugees and Indonesian farmers seeking to reclaim land used to accommodate the refugees on the border of West Timor and East Timor.

About 130,000 refugees have refused to choose between returning to East Timor or resettling in Indonesia as part of the government's transmigration program. Food and other aid to the refugees, living in the area for three years, has been stopped since January 1.

They vowed to leave the refugee camps in May after East Timor officially became an independent state. The refugees have broken an earlier promise to return to their homeland last year. Recently, many villagers in the East Nusa Tenggara (NTT) border area have protested, demanding local authorities return land used by the refugees. The protesters, all farmers, complained of a loss of income since the refugee camps were built on their land in 1999. They also raised legal ownership of the land issues.

In a response to the case, Udayana Military Commander Maj. Gen. Williem T da Costa, overseeing security in NTT and Bali, said he agreed that the issues should be resolved soon.

Speaking during a meeting with refugees at Tuapukan and Noelbaki camps on Wednesday, he told them to leave the accommodation centers immediately. The camps would be demolished in May, he said. "They have to decide on their stance whether to return to East Timor or stay with Indonesia by joining transmigration programs."

The refugees, offered resettlement on the islands of Sumatra, Sulawesi or Kalimantan, can also stay within NTT, but they must find land by themselves to build houses or plantations, Williem said.

Only a small number of refugees have bought or rented houses in the NTT capital of Kupang or other towns in the province, while most of the 130,000 still stay at the camps in the Kupang, south and north central Timor and Belu regencies.

Kupang's Wirasakti Military Commander Col. Moeswarno Moesanip said only 50 families had left their camps but their whereabouts was not clear. He said some of the departing refugees were allegedly involved in manipulating aid packages intended for the refugees.

Williem said the refugees could demolish their camps and bring the building materials with them when they were resettled.

Labour struggle

Employees protest planned sale of BCA

Jakarta Post - February 8, 2002

Berni K. Moestafa, Jakarta -- Hundreds of employees from Bank Central Asia (BCA) demonstrated on Thursday against the planned sale of BCA, stirring up familiar concerns of mob politics blocking crucial privatization and asset sales programs. Rallying inside the House of Representatives complex ,the employees demanded the government to cancel the sale of BCA, Antara reported. "We're concerned that once it is sold, there'll be mass layoffs," said Bilal, a spokesman for the bank's labor union. One banner read "don't let BCA fall into foreign hands", another read "we're victims of privatization", "where will BCA privatization proceeds go to?"

Bilal said the protest involved BCA employees from various branch offices here and from East Java. It was not immediately clear whether the employees' protests were entirely aimed against foreign ownership, or whether they preferred the bank to remain under state control.

Bilal added that they also rejected the Salim Group from regaining control of the bank. The Salim group, which founded the bank, was forced out of BCA after mismanagement led to the release of billions of US dollars in bail out funds to save BCA from collapsing in the late 90s.

As a result, the government took over the bank and banned Salim from reclaiming it. Although Salim is not among the four final bidders, some experts have raised suspicions that they are using one of the two local consortiums as a well-disguised front to buy the bank.

To recoup some of the bail out funds, the government plans to sell a 51 percent stake in the bank. In charge of the sale is the Indonesian Bank Restructuring Agency (IBRA), which is now in the final stage.

Four final bidders have emerged, two of them foreign. They are the British-based Standard Chartered Bank Plc and the US investment firm Farallon Management Capital. Both companies have publicly announced that they had no plans for massive layoffs, and that they intended to keep BCA as it was.

The BCA protest is hauntingly reminiscent of last year's failed effort to sell state cement producer PT Semen Gresik to Mexico's Cemex SA de CV. Employees at Semen Gresik and its two units, Semen Padang and Semen Tonasa, successfully blocked a government option to sell a 51 percent stake in the company to Cemex.

Backed by local politicians, they rejected foreign control and threatened to go on strike if the government went ahead with the option. The government still hopes to sell Semen Gresik, but will avoid the issue for the time being due to fears of a backlash from employees. Analysts called this mob politics, suspecting that certain groups instigated such protests to protect their interests in the state-owned enterprises.

It remains to be seen though whether the late protest by BCA employees could gather enough steam to seriously hinder the sale. So far IBRA has set no timetable for the finalization of the sale. Uncertainties linger even after the final bids for BCA have been submitted.

IBRA argued it could not process the bids as Bank Indonesia had yet to finalize its assessment of the bidders. Passing Bank Indonesia's assessment is mandatory for owning BCA, which once was the country's largest privately owned retail bank.

None of the four bidders have submitted the necessary documents for the assessment yet. "I have called on the bidders to quickly submit all required documents," IBRA chairman I Putu Gede Ary Suta said after a meeting with the Business Competition Supervisory Commission.

He said he would decide with the central bank the best timing for a deadline, by which bidders must submit their documents.

Running from Reebok's hypocrisy

Los Angeles Times - February 7, 2002

Alexander Cockburn -- Right till the end of January, Dita Sari was preparing to fly from her home near Jakarta to Salt Lake City to bask today in the admiration of assorted do-gooders and celebrities mustered by Reebok.

The occasion is the 13th annual Human Rights Awards, overseen by a board that includes Jimmy Carter and Kerry Kennedy Cuomo. Make no mistake, the folks who get these awards all have been fine organizers and activists, committed to working for minorities, the disenfranchised, the disabled, the underdogs in our wicked world.

But Dita Sari's plan was to accept the airplane ticket from Reebok, go to Salt Lake City where the world's winter athletes are now assembled and then, when offered the human rights award, reject it.

Now, this annual ceremony isn't up there with the Nobels or the MacArthur grants. Despite the company's best efforts, it's definitely a second-tier event. Nonetheless, it has paid off for Reebok. Says Jeff Ballinger, a anti-sweatshop activist who has organized with shoe workers in Indonesia the past 13 years,

"With this kind of ceremony, Reebok gets its name into respectable company. When they give a prize to someone like Julie Su, a lawyer for immigrant workers in California, people who wouldn't be seen dead in Nikes are impressed."

Dita Sari was picked by Reebok's judges because she defied her government on the issue of independent trade unions. In her own words: "In 1995, I was arrested and tortured by the police, after leading a strike of 5,000 workers ... They demanded an increase of their wages [they were paid only $1 for working eight hours a day] ... This company operated in West Java, and produced shoes for Reebok and Adidas."

She got out of prison in 1999. Since then, she has been building a union of workers in plants across Java. Reebok's flacks can brandish armloads of studies, codes, monitoring re ports, guidelines and kindred matter attesting to the company's dedication to the fair treatment of anyone making consumer items with the name Reebok printed on them.

But nothing has really changed. "We've created a cottage industry of monitors and inspectors and drafters of codes," Ballinger says, "but all these workers ever wanted was to sit down in dignity and negotiate with their bosses, and this has never happened."

Due in large part to the efforts of the workers and Western allies such as Ballinger's Press for Change, the daily wage in Indonesia rose more than 300% between 1990 and 1997, at which point the Asian economic crisis struck. Inflation wiped out those gains. Workers' daily pay is now half what it was before the crisis hit.

These were the points Dita Sari was going to make when she got to Salt Lake City. Then she learned that Reebok intended to schedule her and other recipients for public events before the awards ceremony. Rather than let the company benefit in any way from her presence, Dita Sari pulled the plug and, at last word, is in Jakarta raising money for workers left destitute by the worst flooding in decades.

She has sent the speech she was planning to give in Salt Lake City: "I have taken this award into a very deep consideration. We finally decide not to accept this ... In Indonesia, there are five Reebok companies; 80% of the workers are women. All companies are subcontracted, often by South Korean companies ... Since the workers can only get around $1.50 a day, they then have to live in a slum area, surrounded by poor and unhealthy conditions, especially for their children. At the same time, Reebok collected millions of dollars of profit every year, directly contributed by these workers. The low pay and exploitation of the workers of Indonesia, Mexico and Vietnam are the main reasons why we will not accept this award."

But with its awards, isn't Reebok at least trying to do something decent? The way Dita Sari sees things, the attempt is a phony. All the awards in the world, all the window dressing with celebrities such as Desmond Tutu, Carly Simon, Sting and Robert Redford don't alter the basic fact that workers in the Third World are being paid the minimum to make a very profitable product.

According to Ballinger, the labor cost of a $70 pair of sneakers made in China, Vietnam or Indonesia is $1 or less. Dita Sari sees the world a lot more clearly than the celebrities and activists massed at events such as the one organized by Reebok.

Dita Sari turned down $50,000 from Reebok and will go on organizing against corporate exploitation and government harassment. Do-gooders should study her fine example and stiffen their spines.

Aceh/West Papua

Probe into Theys' death queried

Jakarta Post - February 7, 2002

Tiarma Siboro and Yogita Tahilramani, Jakarta -- Papuans and human rights activists expressed doubt on Wednesday that the National Investigation Commission set up to probe the mysterious death of Papuan independence leader Theys Hiyo Eluay would reveal the truth behind the murder, saying commission members would work to protect the interests of the state.

"The commission members would all work for the current government, and would always protect the government at all costs. Why would they want to reveal the truth behind the murder of a man who was fighting for Papua's independence from the Indonesian government?" Andi Bilimanotai of the Papuan Presidium Council (PDP) told The Jakarta Post on Wednesday.

"The Papuan general public found the team's members "disturbing" because it was clear to them that the team had been formed to uphold the state's interests, not to uphold justice," he added.

President Megawati Soekarnoputri issued a decree on Tuesday setting up an "independent" investigation team to look into the mystery surrounding the murder of Theys in November 2001. Despite strong objection from Papuan leaders and religious leaders there, Megawati appointed a number of military and police personnel as well as government officials to the team.

Theys was found dead one day after he was reportedly kidnapped by unidentified armed men on his way home in Sentani after attending a function organized by a local unit of the Army's Special Force (Kopassus).

Investigations by local police and the Army headquarters concluded that certain elements in the military were behind the killing. TNI headquarters formed its own investigation team, but many believe the move was designed to nip in the bud efforts by any independent team to reveal the killers.

Secretary-general of the National Commission on Human Rights (Komnas HAM) Asmara Nababan questioned the reasons why Megawati had ignored demands by Papuan religious leaders not to include military and police personnel as well as government officials in the team.

"It must struggle to prove that it will conduct a fair and impartial investigation even though some of its members were part of the government system," Asmara told The Post on Wednesday.

Former director of the Foundation of the Indonesian Legal Aid Institute Bambang Widjojanto questioned the credibility of several members, including the National military police chief Djasri Marin, Koesparmono Irsan, Engkesman Hillep, and three local figures.

According to Bambang, the presence of Djasri in the team would merely steer the case to become a criminal matter rather than a human rights violation, or at least protect the mastermind of the killing and put the blame on "a disorganized group of the Army's Special Force [Kopassus] that killed Theys for the sake of their own interest".

Bambang further said that the fate of the team would not be different from the one established in 1999 by then president B.J. Habibie to investigate the riots in May 1998, as the decree "does not regulate if the team must disclose its investigation result to the public, nor is the President obliged to act on it."

Habibie set up a joint team to investigate alleged gross human rights violations in mass riots in May 1998, but the team failed to reach a common conclusion due to conflicts of interest between members coming from the military and police and civilian members.

Military to get new mandate to crush GAM

Jakarta Post - February 8, 2002

Annastashya Emmanuelle and Fabiola Desy Unidjaja, Jakarta -- The government, which has come under strong criticism from human rights activists for reviving the Aceh military command just this week, is now set to give a new mandate to the military to crush the separatist movement in Aceh.

Coordinating Minister for Political, Social and Security Affairs Susilo Bambang Yudhoyono said on Thursday that President Megawati Soekarnoputri would soon issue a Presidential Instruction maintaining the current security approach against the armed wing of the Free Aceh Movement (GAM).

"Any separatist movement must be crushed, and we have the international support to maintain our national territorial integrity," Susilo said after a limited cabinet meeting at the State Secretariat on Thursday.

Susilo's announcement came just days after the Indonesian military revived the Iskandar Muda Military Command in Aceh despite strong protest from human rights activist and Acehnese people for fear of more rights abuse in the province.

It reflects the government's preference to resolve the Aceh question militarily, as opposed to diplomacy, which was pursued by former president Abdurrahman Wahid.

This is also against the military's own pledge to phase out its territorial role, which has long been criticized for having hindered the development of democracy. With its territorial function, the military has been deeply involved in civil affairs, especially during the administration of former president Soeharto, who used military networks down to the village level to silence its critics.

Resolving the Aceh question through military action is expected to worsen human rights abuses in the province, where more than 1,700 people were killed in 2001 and at least 200 people have already died in 2002.

Susilo also expressed the government's reluctance to pursue talks with GAM, saying that the separatist movement remained unclear whether they would accept the autonomy package or not. "Should the dialog continue to proceed in an uncertain manner, while there isn't a sincere indication from GAM to find a peaceful solution to the Aceh question, the government might later decide to stop the dialog," Susilo said.

The government and GAM met in Geneva, Switzerland last week to find a peaceful and comprehensive solution to the armed struggle in Aceh. No substantial agreement was reached in the two-day meeting.

Susilo said President Megawati would sign a Presidential Instruction early next week that would be effective for six months only. The new ruling replaces the current Presidential Instruction No. 7/2001, which was issued by former president Abdurrahman Wahid in April 2001, and is set to expire on February 11.

The Presidential Instruction No.7/2001 has, as its focus, the restoration of law and order in Aceh. The instruction provides necessary legal grounds for military personnel to target armed civilians, particularly GAM members and independence fighters.

"The main pillar of the new Presidential Instruction is the Nanggroe Aceh Darusalam Autonomy Law," said Susilo, adding that the government was trying to introduce a comprehensive solution to the Aceh question. "The comprehensive measures will cover socio-political, legal and economic approaches to the Aceh issue, and will be carried out by the central and provincial governments," he said without elaborating.

According to Susilo, with the implementation of the Autonomy Law, the Aceh governor and his administration would bear the responsibility of taking necessary steps to restore peace and order in the restive province.

"The central government's role is only to provide support, except for functions which were not included in the Autonomy Law, such as foreign relations and defense," he said.

Susilo also dismissed skepticism over the government's policy to adopt a militaristic approach to solve security problems in Aceh, adding that any separatist movement should be crushed.

Probe team formed for Papua separatist leader's murder

Agence France Presse - February 5, 2002

Jakarta -- Indonesia on Tuesday formally set up an inquiry team including an army general to investigate the murder of Papua separatist leader Theys Hiyo Eluay, a crime in which military involvement is suspected.

The 11-man team comprises five government officials -- including one each from the national police and the military -- and six civilians, said Information Minister Syamsul Mu'arif.

Mu'arif, speaking after a ministerial meeting on political and security issues, said President Megawati Sukarnoputri had signed the decree appointing the commission.

The team will be led by Kusparmono Irsan, a retired police general and a member of the National Commission on Human Rights. The five government officials include national military police chief, Major General Jasri Marin, and Inspector General Engkesman Hillep, chief detective in the national civilian police. The other three government members are Papua-born national legislator Simon Patrice Morin, Papua provincial chief legislator John Ibo and I Putu Kusa of the attorney general's office.

Activists in Papua, which was previously known as Irian Jaya, have called for an independent team to be set up to investigate the killing last year.

Top security minister Susilo Bambang Yudhoyono said last week the commission would include a military member to ensure army cooperation, "because there is a TNI [armed forces] unit being investigated in this case." Army chief General Endriartono Sutarto has said that witness testimony has indicated the possible involvement of members of an elite army unit, Kopassus, in the murder last November.

The commission is expected to question all witnesses who have already been interviewed by police.

Many people in Papua, including its police chief, its governor and rights activists, have said there are indications that Kopassus members had a role in the murder. Local police admitted after questioning at least seven Kopassus members that they had hit a dead end in their investigation.

Eluay was found murdered on November 11. He had been abducted the previous evening by an unidentified group as he drove home from a Heroes' Day celebration hosted by the Kopassus unit in the provincial capital Jayapura. Eluay's driver escaped and reported the abduction, which he said was carried out by non-Papuan people. He has since disappeared.

A sporadic low-level armed struggle for independence began after the Dutch ceded control of the territory to Indonesia in 1963. The province was renamed Papua this month under an autonomy law designed to lessen pressure for independence and which also gives it a much greater share of revenues from natural resources.

Aceh rebels to discuss autonomy, deny dropping independence bid

Agence France Presse - February 5, 2002

Jakarta -- Separatist rebels in Indonesia's Aceh province confirmed they would discuss Jakarta's autonomy law in future peace talks but denied they are softening calls for independence.

"We want full independence for Aceh," Sofyan Daud, a spokesman for the Free Aceh Movement (GAM), said Tuesday. "GAM agreed to discuss autonomy as a starting point for talks but it doesn't mean we accept it. If someone suggested that we will accept autonomy, that's a lie," Daud told AFP. Acehnese must be asked whether or not they want autonomy through a referendum, he added.

Two days of talks between the Indonesian government and GAM in Switzerland ended Sunday without any deals but with both sides agreeing to meet again in 30 days. The agreement, a copy of which was received by AFP, said the two sides would "use the NAD [the autonomy law] as a starting point for discussions." They also "agreed to a period of confidence-building in which they will cease hostilities and then move towards democratic elections in Aceh in 2004" and to "respect the desire of the people of Aceh to govern themselves peacefully."

Foreign Minister Hassan Wirayuda on Monday described as "positive" the fact that the rebels are willing to discuss the autonomy law as the basis for future talks.

Daud warned that GAM guerrillas would only respect the agreement if police and troops stopped anti-rebel operations. He said the revival of a separate military command for the energy-rich province amounted to "the first and biggest violation of the agreement."

Army chief General Endriartono Sutarto officially inaugurated the command on Tuesday despite criticism from rights groups. In a brief ceremony in the provincial capital Banda Aceh, Sutarto also appointed the current chief of military operations in Aceh, Brigadier General Djali Yusuf, to head the new command.

After the separate military command was disbanded in 1985, operations had been overseen from Medan in neighbouring North Sumatra. Human rights activists have widely criticised the government move as a misguided attempt to impose a military solution on the separatist struggle.

GAM has been fighting for an independent Islamic state in the province since 1976. Yusuf has led the anti-rebel operations since they were re-launched in April last year.

The inauguration ceremony was held at the former headquarters of the disbanded military command. Traffic and pedestrians were barred from surrounding streets.

Rights groups say the revived command will only exacerbate violence in Aceh where more than 1,700 people were killed last year alone. Close to 200 people have already died this year. The critics also say the move contradicts the military's plans to disband separate commands across the archipelago over the next decade.

Jakarta last year granted Aceh greater self-rule and a larger share of its oil and gas revenues as part of efforts to curb pro-independence sentiment. It also allowed the province to implement Islamic law but insisted that it will not permit independence.

Aceh gets new military command

Straits Tiems - February 6, 2002

Derwin Pereira, Jakarta -- The Indonesian army yesterday tightened the screws on rebels in Aceh and dealt a potential blow to the peace process there with the inauguration of a new military command to specifically handle the restive province.

The carving out of a new strategic zone headed by a one-star general and the deployment of 16,750 soldiers to the province could very well spark renewed clashes between security forces and separatist rebels of the Free Aceh Movement (GAM).

But Indonesian Army chief Endriartono Sutarto has vowed not to repeat the "injustices of the past" and said that the new Aceh command would resolve problems in the area. "We can end the ways of violence and replace the weapon with shovels and tractors to build a better life for the people," he said at a ceremony to inaugurate the command in the capital of Banda Aceh.

His comments resonated among top generals, who insisted that there was nothing sinister in the plan to re-establish the Iskandar Muda command some 17 years after it was decommissioned. A three-star general told The Straits Times that the army had no plans to turn Aceh into a "military command area", the way it did under the Suharto regime in the 80s.

"It is done mainly to improve our operational effectiveness," he said. "Logistically, it makes more sense to have troops stationed permanently in a troubled area rather than having to fly them in often. We think the situation will only improve."

But critics of the army charge that a command will further pave the way for the military to use force to crush pro-independence rebels and retard the peace process.

Former Indonesian Human Rights Minister Hasballah Saad, who was involved in peace negotiations with GAM, said the government's latest move threatened to "intensify problems". "By giving the military free reign, it shows that Jakarta is not serious in negotiating a deal with the rebels," he said.

He also noted that the inauguration of the command could not have come at a worse time because GAM had indicated just days ago that it was prepared to consider a proposal for autonomy in Aceh after weekend talks in Geneva.

Yesterday's development appeared to have hardened the rebels' stance. Reports here quoted GAM spokesman Sofyan Daud as saying that the separatists would discuss Jakarta's autonomy law in peace talks -- but he denied that they were softening demands for independence. "We want full independence for Aceh. If someone suggested that we accept autonomy, that's a lie," he said.

The respected Jakarta-based Control Risks Group said in a report that the recent death of GAM military chief Tengku Abdullah Syafei Syafei was a tactical and symbolic loss but hardly a strategic setback for the rebels. It noted that the group fielded local guerilla bands that had little formal or informal links beyond district lines. The report said: "GAM, in fact, has persevered on and off for nearly three decades with almost no formal military hierarchy ... There is little likelihood of GAM throwing in the towel any decade soon."

Papuans again reject military in Theys case

Jakarta Post - February 4, 2002

Tiarma Siboro, Jakarta -- Religious leaders in the restive province of Papua rejected on Saturday the inclusion of military and police personnel in the planned National Investigation Commission (KPN), arguing that they wanted only independent, professional and trustworthy people to join the team.

"We stand by our position that ... the commission should be endowed with strong legal powers by the President ... and contain independent, professional and trustworthy people in the eyes of the public," the religious leaders said in a letter sent to President Megawati Soekarnoputri on Saturday. The letter was signed by Papua Bishop Mgr. Leo Leba Ladjar.

"This conviction is held not only by religious leaders in Papua but is also shared by the Papua governor, the police chief, members of the Regional House of Representatives (DPRD), scholars, humanitarian volunteers and all who wish that justice be upheld in Indonesia, especially in Papua," they added.

The religious leaders were reacting to a central government plan to include the military and police in KPN to investigate the tragic death of independence leader Dortheys "Theys" Hiyo Eluay in November 2001.

Theys, who was also chairman of the Papua Presidium Council, was found dead in his car in Koya Tengah village, near the provincial capital Jayapura, a day after he and his driver Aristoteles Masoka were kidnapped by unidentified gunmen. Investigations by Papua police and the Army headquarters have concluded that certain military elements were responsible for Theys' murder.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said on Wednesday that President Megawati would soon issue a decree establishing an investigation team, whose members would include military and police personnel, and government officials. Susilo was, however, quick to add, "the team would also have prominent Papuan members, including religious leaders and several human rights activists from the National Commission on Human Rights (Komnas HAM) in Jakarta and Papua."

The religious leaders expressed disappointment over the planned inclusion of military and police in the investigation commission, saying that the move demonstrated that the central government was not listening to the aspirations of its own people living in Papua.

"We are deeply disappointed with the central government's plan to include military and police personnel in KPN," the religious leaders said in the letter, copies of which were also sent to, among others, the Papua governor, Papua military commander, head of Papua DPRD and legislators representing Papua province.

The religious leaders argued that Megawati's insistence on including military and police personnel in the team showed "the central government is again unwilling to open its heart to listen to complaints from its own people, especially those in Papua, who have long wanted a fair, transparent and independent probe into the killing of Theys Hiyo Eluay without involving the military and police."

They also accused the government of not being transparent and even ignoring the people's aspirations in establishing the team as they earlier demanded that the military, police, and government officials be excluded from the team.

Earlier, a group of Papuan religious leaders had proposed two names from Komnas HAM, one from the National Commission on Women's Rights (Komnas Perempuan), one each from the University of Indonesia and Cendrawasih University and four from legal aid institutions.

Aceh separatist rebels pledge to protect press

Agence France Presse - February 4, 2002

Jakarta -- Separatist rebels in Indonesia's restive province of Aceh, in a statement received Monday, urged local and foreign journalists to investigate conditions there and promised them protection.

In the statement issued after two days of peace talks in Switzerland, Sofyan Dawod, the military spokesman of the Free Aceh Movement (GAM), said the press trips are necessary to prove the movement is not violating past agreements with the government as Jakarta has claimed.

"GAM will provide protection to all journalists and similar protection should also be sought from the Indonesian armed forces and national police," the statement said. "GAM strongly rejects the claims of the Republic of Indonesia that the GAM has violated several past agreements such as in the humanitarian pause, the secure zones, the moratorium on violence and peace through dialogue," Dawod said.

Thw rebels accused the army and police of violations, including arrests, murder, intimidation and other acts in the name of restoring law and order. "GAM urges elements within the Republic of Indonesia to dare to allow journalists, domestic or international, to cover and conduct direct field investigations, so that they are not only spoon-fed with distorted information and monotonous denials," the statement said.

Representatives from the Indonesian government and the exiled leadership of the GAM wrapped up peace talks in Switzerland Sunday without reaching a deal but agreeing to further talks. Zaini Abdullah, a GAM representative, said another meeting would be convened "in 30 to 45 days."

GAM has been fighting for an independent state since 1976 and a estimated 10,000 people have been killed since then. Human rights groups accuse both security forces and rebels of widespread rights violations. Last year Jakarta granted Aceh greater self- rule and a larger share of the revenue from its substantial oil and gas reserves but ruled out independence.

Amnesty officials expelled from Papua

Jakarta Post - February 5, 2002

R.K. Nugroho and Fabiola Desy Unidjaja, Jayapura/Jakarta -- The government has expelled two members of human rights organization Amnesty International from Irian Jaya for illegally investigating the mysterious death of Papuan separatist leader Theys Hiyo Eluay.

The government argued the two-member team violated their visa which was intended for "socio-cultural travel" to Indonesia.

Ministry of Foreign Affairs acting spokesman Wahid Supriyadi said the Indonesian government never aimed to deport the team, but since it breached immigration regulations it must leave Irian Jaya.

"The Amnesty International team came to Indonesia by applying for a socio-cultural visa and on the application form they stated that the trip was limited to Java and Sumatra," he told The Jakarta Post on Monday. "But, the team went to Irian Jaya and furthermore conducted a probe into the death of Theys. Our office has simply notified them [Amnesty] about the mistake and they decided to withdraw the team from the province," Wahid added.

He said any international organization must comply with Indonesia's immigration laws should it want to make a visit to the troubled areas such as Irian Jaya and Aceh. "They [Amnesty] should have sent a proposal to us for a special visa for the investigation. I believe every country will do exactly the same thing against anybody found violating the visa regulations."

The team's two members -- Lucia Withers and Signe Poulsen -- had left Irian Jaya on January 29, 10 days after their arrival. They were scheduled to leave on January 5. It was not clear whether the team was still in Indonesia or not.

Jhon Rumbiak, leader of the Irian Jaya-based Ell-Sham legal aid and advocacy body that facilitated the team's visit, confirmed the pair had to cut short the 15-day visit at the orders of the foreign affairs ministry. "The repatriation of the two delegates was due to a misunderstanding on their working visit," Rumbiak said.

Local sources said that during the visit, the team investigated the murder of Theys and other human rights abuses that took place in Jayapura, Wamena and Manokwari.

The team once attended the trial of three leaders of the rebel Papua Council Presidium (PDP) charged with subversion. Prosecutors have demanded that they be each sentenced to 30 months in prison. In their trial on Monday, a team of 22 lawyers acting for the three defendants told the Jayapura District Court to acquit them of all charges, arguing the prosecutors' demands were irrational.

"The demanded sentences should have been differentiated according to the alleged crime committed by each of the defendants," Anton Raharusun, one of the lawyers, told the Post. He said the prosecutors, led by Syamsu Alam, were not serious in dealing with the case because under the criminal code the subversion charge carried a maximum death penalty or 20 years in jail. "The demand for lenient sentences shows that subversion charges against the defendants are legally and convincingly not proven," Anton added.

Meanwhile, a 12-member team from the Indonesian Military arrived in Jayapura on Monday to begin its inquiry into the murder of Theys, which allegedly involved soldiers. The team led by Military Police Commander Maj. Gen. Djasri Marin immediately held meetings with local military and police leaders.

Marin said his team would question all troops suspected of involvement in the alleged killing of the top PDP leader on November 11. "We will summon them one by one," he told the press in Jayapura.

He declined to reveal which military force the suspected troops belong to. Many officials and people have alleged that members of the Army's elite force Kopassus had a role in the murder. Army Chief Gen. Endriartono Sutarto has said that witness testimony has indicated the possible involvement of members of Kopassus in the murder of Theys. The team is expected to also question all witnesses who have already been interviewed by local police. The government has decided to set up an independent team to investigate the murder following mounting pressure from pro- independence activists. But its establishment remains unclear.

Theys was abducted prior to his death by an unidentified group as he drove home from a Heroes' Day celebrations hosted by the Kopassus on Nov. 9 in Jayapura.

His driver escaped and reported the abduction, which he said was carried out by non-Papuan people. He has since disappeared.

Ten people killed in strife-torn Aceh

Jakarta Post - February 5, 2002

Ibnu Mat Noor, Banda Aceh -- Despite two days of dialog between the Indonesian government and the Free Aceh Movement (GAM) in Geneva on Saturday and Sunday, violence continued unabated in the war-torn province, claiming at least 10 lives, including those of two servicemen.

Maj. Zaenal Mutaqin, spokesman for the military operation in Aceh, said that security personnel shot dead two GAM members in East Aceh on Sunday and recovered a firearm and 22 rounds of ammunition from the bodies of the victims. The security forces also recovered a body in west Glumpang subdistrict, although it had yet to be identified, he added.

Mutaqin also said the GAM had killed a civilian, identified as Mansur, 45, in North Aceh on Sunday. So far, GAM has yet to confirm the killing.

Separately, Tengku Jamaika, spokesman for GAM in North Aceh Regency, said on Monday that during the weekend the TNI had conducted a major military operation in villages near Lhokseumawe and Nisam subdistricts. He alleged that as part of the operation, Army soldiers had arrested five civilians on Saturday, and two of them, identified as Rahman Ismail, 19 and Muslim, 27, were later found dead with their bodies riddled with bullets.

Mutaqin slammed the GAM accusation as being baseless, saying the operation was being conducted to protect the people from being intimidated by rebels, and that the military had never shot civilians during the military operation.

Another victim of the unrest in Aceh was identified as Jamaluddin, 43. He was shot dead by two motorists in Pasi Mali market on Sunday. The Indonesian Red Cross (PMI) removed his body to his home in Suak Geudeubang village, West Aceh.

The Red Cross also removed the bodies of two civilians, who were believed to have died from severe wounds, from Suak Raya village to Meulaboh Hospital, said Rasmuddin, a local staffer of the Red Cross in the town.

The body of last of the weekend's victims, who was identified as Usman Husin, 50, was recovered from his house in Krueng Rieng village in Pidie. He was shot dead by unidentified gunmen on Saturday night.

Both sides' delegates who met in Geneva agreed to continue their meetings. A new date, however, has yet to be set.

'War on terror'

US envoy urges Indonesia to take firm action against terrorists

Agence France Presse - February 2, 2002

Jakarta -- Indonesia should follow the lead of Singapore and Malaysia in taking firmer action against suspected terrorists, US Ambassador Frank Lavin said here.

Lavin said Saturday it was "disturbing" to read reports that some of the suspected terrorists who had planned to attack American targets in Singapore, including the US embassy, had fled to Indonesia.

The envoy, speaking before diplomats, academics and businessmen, said there was a need for greater border controls in Southeast Asia to reduce the ease with which suspected terrorists move to evade security forces. He said Washington has asked Singapore to tighten controls at its main port to curb any attempts by terrorists to use the world's busiest harbour to smuggle contraband, and was assured of the passage of legislation for that puRupiahose when parliament convenes next month.

"I think it's a little unclear what the nature of the challenge is in Indonesia," Lavin told the United Nations Association of Singapore. "We saw a substantial number of arrests in Singapore, we saw equally aggressive ... moves in Malaysia, [but] we have not seen that kind of response yet in Indonesia and it is a matter of concern," he said.

As the head of the embassy that was reported to be a key target in the attacks, Lavin said: "It is very disturbing to read the news reports that these planners are now in Indonesia and we do expect the Indonesian government .... to take action." Singapore, which last month detained 13 suspected Islamic militants for plotting to bomb US targets here, has named an Indonesian Muslim cleric -- Ustad Abu Bakar Ba'asyir -- as the leader of the Jemaah Islamiyah group which has been linked to Osama bin Laden's al- Qaeda network. Indonesian police questioned the 64-year-old Ba'asyir last month but did not arrest him. The cleric denied he was associated with al-Qaeda but hailed bin Laden as "a true Muslim fighter."

The Jemaah group had allegedy plotted to blow up a busload of American sailors and planned to use truck bombs to attack the US, Australian, British and Israeli embassies in Singapore.

Malaysia and the Philippines have also rounded up several suspected members of Jemaah operating in their countries, including a few Indonesians, but Jakarta has yet to launch a similar crackdown. Analysts have described Indonesia, the world's biggest Muslim nation, as a weak link in the fight against terrorism in the region.

In his speech, Lavin said that "the easy, rapid and frequent movements of terrorists within the region, again tells us that a better job needs to be done with border controls. "Some of this is police work and some of this is reexamining visa requirements."

Fathur Rohman al-Ghozi, an Indonesian accused of being the explosives expert for Jemaah and who was arrested in the Philippines, was found to have several passports with fake immigration documents.

Lavin also said the presence of US troops in the Philippines to train their counteRupiaharts in counter-terrorism would boost the Filipino military's capabilities against the Abu Sayyaf, a kidnap group which has been linked to al-Qaeda.

"Terrorist activity in the Philippines is a matter of concern," he said. "The Philippines military is being reinvigorated, and from now on the Abu Sayyaf Group will need to spend more time worrying about its own survival and its own desertions, and less time planning kidnappings and assaults," he said.

Government & politics

Golkar weeds out problematic members

Jakarta Post - February 8, 2002

A'an Suryana, Jakarta -- As the beleaguered Golkar Party seeks to remove the thorn in its flesh, a party top official warned on Thursday of tough measures against staunch critic and senior party member Achmad Arnold Baramuli.

Golkar deputy chairman Agung Laksono told reporters on the sideline of the party's leadership congress at Jakarta's Century Park Hotel that the possibility of suspending or dismissing Baramuli "remained wide open". "It is up to the participants whether they will propose a suspension or dismissal of Baramuli during the plenary meeting," Agung said.

Baramuli, who has not turned up for the three-day meeting which opened on Wednesday, is a senior member who now serves as one of the party's patrons. He called for an extraordinary congress to demand embattled party chairman Akbar Tandjung, a suspect in the misuse of billions or rupiah intended for the poor, account for himself.

The bitter relationship between Baramuli and Akbar surfaced after Golkar failed to get B.J. Habibie elected president during the 1999 elections. Baramuli gained momentum to oust Akbar after the latter was implicated in a financial scam involving the State Logistics Agency (Bulog).

"According to party rules, the board of executives has the right to suspend or dismiss either party members or patrons," Agung said. Golkar had earlier decided to suspend deputy secretary general Muchyar Yara, also for his repeated calls for Akbar's resignation.

Muchyar is the lawyer and a close confidant of Ginandjar Kartasasmita, a Golkar patron and People's Consultative Assembly deputy speaker.

Agung also announced on Thursday a plan to weed out 20 problematic cadres and party members who serve in the government. Agung refused to name names, but said the suspension had long been planned in line with a recommendation given by party leaders during their previous annual meeting in 2000.

"The party needs acts of refreshing. Those members will be suspended on the grounds of negligence, indiscipline," Agung said. The suspension will be officially announced on Friday at the latest, Agung said. "The previous leadership meeting gave mandate to the party's chairman to suspend the cadres," Agung said.

Another Golkar member Priyo Budi Santoso said all the names of suspended party members were "in Akbar's pocket". Rumors have been circulating that the suspended members include Ekki Syahrudin, the Indonesian Ambassador to Canada, and Abdullah Puteh, the governor of Aceh Nangroe Darussalam. Other names were Farida Samsi Chadariah and journalist Ansel Da Lopez who will both be suspended as they had never attended party meetings.

According to Agung, the suspension was subject to change at the party congress in 2004. "The congress is the highest forum to decide the fate of the party members. Therefore, should the suspended members be able to make amends for their mistakes in the future, they will be rehabilitated as party members," he said.

Corruption/collusion/nepotism

Tommy denies bribing Gus Dur

Jakarta Post - February 7, 2002

Jakarta -- Hutomo "Tommy" Mandala Putra denied on Wednesday that he had bribed former president Abdurrahman "Gus Dur" Wahid in his attempt to secure a pardon in 2000 in relation to a case of alleged graft.

"How can you say that I bribed him [Abdurrahman]. I was forced to give him the money," said the youngest son of former president Soeharto as quoted by Antara prior to undergoing questioning at the Jakarta Police Headquarters.

Police are investigating a complaint filed by Tommy over an alleged Rp 20 billion (US$2 million) fraud, involving two associates of the former president, Dodi Sumadi and Abdullah Siddik Muin. Tommy, Dodi and Siddik were questioned together on Wednesday.

Meanwhile, Dodi stuck by his previous statement that he was a victim of a conspiracy between two powerful parties. "The meetings between Tommy and Gus Dur at the Borobudur Hotel on October 5, 2000 and at the Regent Hotel on October 6, 2000 were not ordinary meetings, but had a hidden agenda," he told reporters after the questioning, without elaborating. He said that he had minutes from both meetings and would use them as a "trump card" in the trial.

Separately, Siddik admitted to having received Rp 15 billion from Tommy. "Besides me, the money also went to Dodi [Sumadi], Thaleb Abdullah and Wiwi, both associates of Tommy, and KH Noer Iskandar SQ," Siddik said as quoted by SCTV television.

Earlier, Tommy's lawyer Elza Syarif said his client had a recording of the meetings between him and Gus Dur. "And Tommy is thinking of providing the cassette of the conversations to investigators," Elza said.

Tommy was acquitted of all charges surrounding a 1995 graft case last October. By that time, Abdurrahman was no longer president after being removed in July last year over his alleged failure to carry out the mandate imposed by the People'sConsultative Assembly (MPR) when he came to power in October 1999.

Skepticism overshadows Akbar's questioning

Jakarta Post - February 5, 2002

Viva Goldner and Tertiani ZB Simandjuntak, Jakarta -- As House of Representatives (DPR) Speaker Akbar Tandjung today (Tuesday) is questioned by the Attorney General's Office (AGO) over the highly-politicized State Logistics Agency (Bulog) scandal, observers have slammed the legal process, claiming corruption will prevent justice being done.

Despite calls for a special House committee to investigate the Rupiah 54.6 billion corruption allegation, the AGO will instead question the three suspects, including Akbar, Raudlatul Jannah foundation chairman Dadang Sukandar, and businessman Winfred Simatupang.

Johnson Pandjaitan of the Legal Aid and Human Rights Association (PBHI) said on Monday that Akbar's questioning by the Office was politically engineered to rescue the Golkar chairman and his party. Golkar is the second-largest faction in the House of Representatives (DPR) and played a key role in bringing the Megawati administration to power in July, 2001.

Following questioning of his involvement late last year, Akbar's status in the graft case was changed from witness to suspect, a move Johnson said was used to prevent the speaker from facing a House inquiry, similar to the one instrumental in the downfall of former president Abdurrahman Wahid.

Under pressure from leaders of the ruling Indonesian Democratic Party of Struggle (PDI-P) to allow the due legal process to run its course, PDI-P legislators eased earlier calls for Akbar's full investigation by the House.

Instead of a multi-party committee with wide-ranging powers to uncover the truth, the case would instead be handled by the country's judiciary, an institution Johnson said was marred by political interference and was far from transparent.

The decision to delay consideration of the appointment of a House inquiry team followed a meeting between Akbar and Megawati, where Akbar reportedly threatened to withdraw Golkar's support for her government. The threat came as Megawati remained uncertain of her standing with Muslim-based parties in particular, who have recently pushed for the implementation of syariah, or Islamic law.

By sending the Bulog case to the courts, Johnson said Megawati was ensuring Akbar's political future, as endemic corruption in the judicial system would make a conviction unlikely. For example, Johnson said prosecution lawyers could make use of loopholes in the dossiers to clear Akbar of his status as a suspect, rendering his investigation by a House special committee remote. Moreover, rules of legally admissible evidence would prevent thorough probing of the case by the attorney general, whose political links with Akbar date to Soeharto's rule.

University of Indonesia Student Council Executive chief Wisnu Sunandar said students across Jakarta demanded the establishment of a House special committee. He said the case brought the Indonesian government's commitment to ending entrenched collusion, corruption and nepotism (KKN) under fire once again.

"I think Akbar will be discharged because the AGO is still full of the past regime's manpower. In immediate response to the condition, we plan to call on people to rally in the street," Wisnu said.

With the House now stalling discussions on whether to establish a special committee until March 7, Akbar may yet see the light at the end of the AGO's tunnel.

Regional/communal conflicts

Parts of Batam deserted after riots, killing

Jakarta Post - February 7, 2002

Fadli, Batam -- The situation in certain strategic areas in Batam is still tense following three ethnic riots that rocked the island over the weekend.

Nagoya, a large shopping center, and the Sekupang Seaport, two crowded public areas, were deserted, with no signs of public transportation, ojek (motorcycle taxis) or hoodlums while dozens of security personnel were on alert at the two locations.

Many locals were reluctant to go out on the streets or to go to the shopping center for fear of fresh riots following the three brawls among several ethnic groups on the island on Friday and Saturday last week.

Tensions mounted on Tuesday when scores of youths using military uniforms ransacked the population control office to protest the local administration's policy of barring people from other parts of the country from migrating to the island. At least 56 protesters, all members of the Panca Marga Youth Organization (PPM) were detained by local police for further questioning.

Last Friday, some 700 Javanese people ran amok to protest the extortion by hoodlums of ojek drivers in the Nagoya shopping center. Sugeng, a protester, said the angry mob was seeking hoodlums who routinely extort money from ojek drivers, who are mostly Javanese.

"We could not longer tolerate the rife extortion of Javanese people who earn their living from such a profession [ojek drivers]. Patience has its limits," he said in an emotional tone. Sugeng said the ojek drivers ran amok because a hut where they usually stay while waiting for passengers was ransacked by hoodlums.

The rioters also ransacked a small house where the hoodlums usually gather. The angry mob dispersed after dozens of security personnel were deployed to bring the situation under control.

On the same day, a group of Flores people assaulted a number of Batak hoodlums in Sekupang Seaport, leaving one dead and two others seriously injured. A Flores youth, whose wallet was stolen by a Batak hoodlum when he was disembarking from a ship the Kelud, anchored off the island en route from Jakarta to Belawan, Medan, came back with his Flores friends to exact revenge against the thief. A violent clash ensued. Saido, 25, was killed instantly while Rudianto, 26, and Muhammad Suryani, 26, suffered serious head injuries.

On Saturday night, a violent clash also occurred between mostly Minangkabau taxi drivers, and drivers of unlicensed passenger minivans near the Bida Ayu housing compound, located near the Batamindo industrial zone. No fatalities were reported but a minivan was torched in the incident.

Sr. Comr. Suhartono, chief of the Barelang Police precinct, said the four incidents were regrettable, saying the island was quite prone to ethnic riots because of the presence of various ethnic groupings and organizations. "People of different ethnic backgrounds have their own group or organization and any problem faced by one of their members is usually handled by the organization," he said citing that many such incidents of ethnic violence have occurred in the past.

In June, 1999, more than 10 people were killed in a bloody riot between Flores and Batak people and between Minangkabau and Batak people. Last year, a clash also occurred between Batak and Malay people.

Many people of different ethnic and religious backgrounds have migrated to Batam since the government developed the island bordering Singapore and Malaysia into an industrial area and tourist destination.

The 5,000 plus local and foreign companies on the island employ more than 400,000 workers who come from numerous provinces. Of the 750,000 residents on the island, 95 percent are from different ethnic groups across the country. Suhartono warned that the ethnic issue was a time bomb that could explode unless properly handled. "The local police will continue to take strict measures in accordance with the law in handling such cases," he said.

Batam Mayor Nyat Kadir said he was lobbying ethnic figures on the island to help solve ethnic problems and to take preventive actions to avoid such problems in the future. "We won't allow such ethnic problems to disturb the inflow of foreign investment to Batam," he said.

He admitted the current ethnic violence had raised serious concerns among foreign businessmen who have investments on the island. Kadir said that besides controlling the inflow of migrants, local authorities would be stricter in enforcing the law on those involved in ethnic riots or violence.

Two senior ministers greeted by anti-peace demonstration

Jakarta Post - February 6, 2002

Jupriadi, Makassar -- A high-powered ministerial delegation checking preparations for reconciliation talks between warring religious factions in Maluku, were greeted in South Sulawesi Tuesday by more than 30 Muslim students opposed to the talks.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono and Coordinating Minister for People's Welfare Jusuf Kalla passed the students gathered at the Mandala Monument, as they drove from the airport to the governor's office.

The students from Maluku, who reject the government-sponsored talks, held a banner stating: Indonesia has its own laws and is not a reconciliation country; crimes committed by the South Maluku People separatist movement (RMS) and Maluku Sovereignty Forum (FKM) must be solved in accordance with the law not with reconciliation talks. The students said the groups were Christian-based separatist organizations responsible for killing Muslims.

So far, the sectarian conflict that has lasted for three years has claimed more than 6,000 human lives.

The ministers' visit was to check on preparations for the reconciliation meeting scheduled for the middle of this month in Malino, 70 kilometers northeast of the provincial capital Makassar.

The ministers and other high-ranking officials, including from the Military and National Police, visited Maluku last month and met with both warring factions. Delegates of both factions held a preliminary meeting in the city last week and agreed to the reconciliation meeting. They had returned home to promote the planned meeting.

Demonstration coordinator Chaeruddin Moto said: "We reject the reconciliation. What the Maluku people needs now is not reconciliation but law enforcement." He said the main issue in Maluku was not sectarian conflict but a separatist movement launched by the RMS and FKM which provoked ethnic and religious sensitivities.

"We want the government to quell the separatist movements and take strict action against all those violating the law," he said. He warned that the reconciliation meeting, the twenty-first such meeting, would not be effective in ending the conflict unless the government quelled the separatist movements.

He said the Maluku Muslim students would not support the meeting because they believed the factions were forced to go to the negotiating table. "We will be ready to go to the negotiating table only if the government investigates the systematic massive killing committed by RMS supporters on Jan 19, 1999, and bring to court all those violating the law over the last three years," he said.

The Christian-based groups believe the conflict is being fueled by Muslim-based organizations from Java who are supplying men and weapons to kill Christians.

Human rights/law

Government adopts secrecy in prosecutor selection

Jakarta Post - February 5, 2002

Tertiani ZB Simanjuntak, Jakarta -- Despite the public demands for a transparent screening process to pick prosecutors for the ad hoc human rights trials, the Attorney General's Office has opted to keep the names of the appointees secret until they are inducted on Friday.

The Attorney General's Office spokesman, Barman Zahir, confirmed on Monday that the office had named 26 prosecutors, two of them with military backgrounds, to prosecute crimes against humanity in East Timor in 1999.

Barman said the selection had been kept from the public in a bid to avoid polemics. "The prosecutors will be sworn in on Friday ... no names will be revealed until that day," he said.

Barman insisted that it was not necessary to disclose the names as it would only evoke a public response to their credibility and impartiality. "Only us, the insiders, know well whether they are credible or not," Barman claimed. "Moreover, is there any rule that obliges us to invite advice from the public?"

The appointees, some of whom are retired, will prosecute 12 cases of rights abuses that took place before and after the UN- sponsored East Timor popular consultation in August 1999.

For the same reason, Supreme Court Justice Benyamin Mangkoedilaga, who heads the team screening the judges for the ad hoc human rights tribunal, preferred to prevent the selection process from being open to public assessment. Benyamin said that to let the public participate in the selection of the judges would only cause a delay in the whole process. The rights tribunal, the first in Indonesia's history, has come under extreme international scrutiny.

Human rights activists have long urged the government to make known to the public, the names of the candidates beforehand in a bid to allay fears of an engineered trial. Especially for a trial with such delicate issues and very high stakes.

None of the lines in Law No. 26/2000 on a Human Rights Tribunal stipulates the involvement of the public or the House of Representatives in the assessment of candidates for judges and prosecutors.

Article 23 of the Law states that the prosecution of gross violations against human rights is to be carried out by the Attorney General, who, consistent with his or her authority, can install prosecutors comprising government officers and/or the public for the ad hoc trial.

Line 4 of the Article specifically requires the prosecutors to be between 40 and 65 years of age, to have studied law and have experience as general prosecutors. They must also have some knowledge and concern about human rights issues.

Timor tribunal faces big odds

Washington Times - February 4, 2002

Ian Timberlake, Jakarta -- A deadline plagued by delays has finally been met, but there are doubts that members of the Indonesian military, who might soon face trial for crimes in East Timor at a new human rights courthouse, will be brought to justice.

More than two years after the last Indonesian forces ended their 24-year occupation of the territory with an orgy of arson, looting and murder, a human rights tribunal promised by the government was only sworn in Thursday.

The tribunal focuses fresh attention on President Megawati Sukarnoputri's close relationship with the military, which backed her rise to power in July. It also has longer-term implications for US military ties with the world's largest Muslim nation -- ties that were essentially suspended in late 1999 because of the violence in East Timor.

"The military is still powerful here, so it's difficult for the government to take the military to court. I think that is the political problem in Indonesia," said Hendardi, who chairs the Indonesian Legal Aid and Human Rights Association in Jakarta. "They've already been buying time for two years." Hendardi, who has only one name, and other observers are glad the tribunal has seen the light of day, but doubt whether it will truly achieve justice. "The only reason for them having it is to meet the demands made by the international community. So it's more like a show trial," said Hilmar Farid, 34, a human rights activist who has worked extensively in East Timor. "It's not a question of bringing justice, but of who to blame."

The attorney general's office has named 19 suspects including police, military and civilian militia members. The highest- ranking suspect is Maj. Gen. Adam Damiri, former head of the regional military command that included East Timor. Other senior military suspects include Col. Tono Suratman, who was the top soldier in East Timor, and Col. Timbul Silaen, who headed the East Timor police. Both Col. Suratman and Col. Silaen were promoted to brigadier general after the ravaging of East Timor.

One Western diplomat, who doesn't want to be identified, doubts these senior officers will actually be called to account. "I personally don't believe they will be tried," he said. "I hope I am wrong."

When The Washington Times called Col. Suratman's office at the military headquarters one recent morning, he was said to be playing tennis. "They'll bring them to court, but only the ones from the lower level," said Hendardi, who sees signs of a tradeoff in the government's decision last month to permit the military to set up a separate command for Aceh province, where dozens have already died this year in continuing violence between the military and armed separatists.

Human rights groups say a special military command for Aceh would strengthen the role of the armed forces, who have a history of abusing civilians there.

Albert Hasibuan, who headed a 1999 investigation into the East Timor atrocities, agrees there is "a little bit of compromise going on" between Mrs. Megawati, the military and the attorney general's office.

"This political compromise has to be stopped," Mr. Hasibuan told The Times. His report for the National Commission on Human Rights accused the military, and particularly its Kopassus special forces, of setting up and arming most of the militias that terrorized East Timor throughout 1999. The militias tried but failed to stop the East Timorese from supporting independence in the August 30, 1999 referendum.

The human rights team further accused the military, police and militias of "mass killings," widespread arson, forced displacement of the population and "genocide."

UN officials, who are administering the territory until independence, which has been set for May 20 this year, have estimated that at least 1,000 East Timorese died during the 1999 violence. More than 200,000 others were forced at gunpoint to Indonesian-controlled West Timor after the referendum. Even now, tens of thousands of the refugees have not been able to return home.

After Mr. Hasibuan's team ruled that military officers in Jakarta should be held responsible, then-President Abdurrahman Wahid dismissed Armed Forces Commander Gen. Wiranto. But Gen. Wiranto is not among the 19 persons who are to appear before the human rights court -- an omission Mr. Hendardi sees as further evidence of a compromise.

Scheduled to begin work on January 15, the court operations were indefinitely postponed because Mrs. Megawati waited until January 12 to approve a list of special judges who will hear the cases. Senior court officials predicted last year that the human rights tribunal could start in September or October. Those dates came and went.

Even if all the suspects show up and the cases proceed, the scope of the tribunal is limited by a decree that Mrs. Megawati issued shortly after she took office. It restricts the court's jurisdiction to actions that took place in April and September 1999 in the three districts of Dili, Liquica, and Suai.

Under the Leahy amendment passed by Congress in 1999 in reaction to the East Timor violence, US military sales and training assistance to Indonesia are suspended until certain conditions are met. The first of those is that Indonesia must take effective measures to bring to justice members of the armed forces and militia groups suspected of human rights abuses. "If these generals are brought to justice, it means ending the chain of impunity," Mr. Farid said.

News & issues

Masterplan revision reduces green areas

Jakarta Post - February 7, 2002

Bambang Nurbianto, Jakarta -- When the tollroad to Soekarno-Hatta Airport flooded, many blamed Pantai Indah Kapuk (PIK) luxury housing estate, which is built on protected mangrove forest along coastal areas of Kapuk Muara in North Jakarta.

But housing estates are not the only projects built on locations that were protected as green areas. Pondok Indah Hospital and Hotel Mulia in South Jakarta, and Taman Anggrek condominium and shopping center in West Jakarta have also contributed to the capital's dwindling water catchment areas.

The development of those projects were made possible with the issuance of the 1995-2010 Jakarta Masterplan, which is a revision of the 1985-2005 Jakarta Masterplan. Marco Kusumawijaya, a city planning expert, told The Jakarta Post on Tuesday that the 1995- 2010 Jakarta Masterplan was enforced after the development of Pantai Indah Kapuk.

In the revised land-use masterplan, many green areas, including those in Kapuk Muara, Tomang, and Sunter have disappeared. Marco warned that the current masterplan of Jakarta is already a violation of sound environmental principles. Worse, there have been many violations of the masterplan approved by corrupt officials.

Marco said that such officials at the city administration should be replaced in order to stop such violations. "We have frequently heard about violations against the masterplan, which has resulted in dwindling water catchment areas, therefore, it is time for all parties to rethink their past mistakes," he added.

He said that the city administration should stop issuing license permits for physical development projects, particularly those that require vast plots of land, as the remaining space should be maintained as green areas. "The ongoing floods are causing misery to hundreds of thousands of Jakartans. This experience should be a good lesson for bureaucrats who always think of their own interests," he said.

Sharing Marco's idea, Joe Fernandez of the Institute for Policy and Community Development Studies (IPCOS), said that license permits should only be issued for the development of apartments. "If the city administration considers that residential areas are still needed, they should be in the form of apartments, which could accommodate a lot of people without requiring a lot of space," he said. Fernandez pointed out another problem as to why the city administration was not able to resolve the flood problems: That the governors only focused on short-term programs that could be completed within their terms of office. "A development is a continuing process. If certain projects are not finished by a governor, the process should be continued by his successor," he said. According to Fernandez, there are still many other projects constructed on preserved land along river banks and green belts.

Meanwhile, Marco also stressed that public participation is the key to any policy's success, including the effort to resolve the annual flood-related problems through public campaigns. It would be successful if the public realized that building houses close to riverbanks and throwing garbage into rivers only worsens problems related to flooding, said Marco, adding that strong leadership was needed to encourage greater public participation.

How did this happen to Jakarta?

Straits Times - February 7, 2002

Robert Go, Jakarta -- Stop blaming Mother Nature, say activists rejecting claims by officials that heavy rain and low ground were behind the week-long floods that paralysed Jakarta.

Instead, they fault poor city planning and corruption that led green spaces to be used up for development; poor drainage; and refuse-choked drains. "As usual, the government blames everyone else," said Ms Wardah Hafidz of the Urban Poor Consortium, a vocal advocate for the poor.

But Mr Lukman Mokoginta, head of the Institute for Society, Environment and the City, pointed out that Mother Nature and man-made factors had combined to plunge Jakarta into its worst flooding problem in years. "Flooding in Jakarta is not just caused by the rain, but is an accumulation of different factors, including poor city planning and neglect by officials," he said.

Jakarta Governor Sutiyoso was correct in pointing out that heavy rain last week contributed to the severity of the flood. Meteorology and Geophysics Agency official Budiono said that more than 500 mm of rain has fallen on Jakarta in the week since last Tuesday. "That's extremely heavy rain compared to previous years," he said, adding that normal average rainfall in the region is only between 200 mm and 300 mm per month.

Another factor is the rise of shantytowns in many parts of Jakarta, a by-product of the country's economic crisis and the failure of the government's poverty-alleviation programmes. Having nowhere else to build, hundreds of thousands of poor residents and newcomers to Jakarta have put up shacks on any vacant swathes of land they could find after clearing away the undergrowth. As a result these areas do not absorb much water. And Jakarta, where as many as 13 major rivers -- including the Ciliwung and Cisadane -- merge before emptying into the sea, is at sea level and therefore is vulnerable to flooding during the monsoons.

But as cleanup and relief efforts progress, it is becoming clear that the administration was caught totally unprepared, despite the fact that filthy water swamps Jakarta on a yearly basis. The suffering of millions would have been less severe if the administration was more able and efficient, critics said.

Last year, Jakarta's government spent only 40 per cent of its US$25-million flood-prevention budget, and activists are asking where the rest of the money went. A canal to help drain East Jakarta, which got hit badly by this year's flood, has been talked about since 1973, but nothing has been done.

The canals and floodgates that control water flow date back to the Dutch colonial period; many have not received substantial improvements over the last three decades.

Jakarta's 600 garbage trucks are breaking down and can't deal with the 25,000 cubic metres of trash generated daily by residents. Leftover waste gets burned, or dumped in the rivers and canals.

The problem got worse last month when Jakarta's major dump in Bekasi, West Java, decided to stop taking any more of the capital's garbage. Ms Wardah, who is leading a fight to file a class-action suit against the government over the flooding, said: "The actions of Governor Sutiyoso and the rest of the city administrators are unforgivable. Now people die and suffer because of them."

Opposition grows against Autonomy Law review

Jakarta Post - February 6, 2002

Ainur A. Sophiaan, Surabaya -- The incomplete implementation of regional autonomy and the widespread misunderstanding about the autonomy law have begun to raise new conflicts between the central government and provincial and regional governments.

While the central government was deliberating the proposed amendment of the regional autonomy law with the House of Representatives on Monday, the East Java Provincial Legislative Council also agreed to oppose the government's proposed amendment.

The provincial legislature leadership in their meeting in Surabaya on Monday ruled out the proposed amendment as an attempt by the central government to retrieve the power it gave to provinces, regencies and municipalities under the law since January 1, 2001.

They were of the same opinion that all matters proposed to be amended in the law were aimed at pushing the nation back to the old-fashioned centralized administration system that has proven ineffective in improving the people's welfare and developing democracy.

The crucial issue that has raised confusion among the legislature leadership was Article 38 of the proposed bill on elections of governors, regents and mayors that will be conducted by an independent commission whose members would be recruited from the General Election Commission (KPU) and local community leaders, instead of provincial and regency legislatures.

"With the proposed amendment to the article, the central government is trying to reduce the legislatures' authority and, therefore, to kill democracy in the regions," Fathor Rasjid, chairman of the National Awakening Party (PKB) faction, said in the meeting. He warned that the provincial and regency legislatures represented the people in the regions.

Minister of Home Affairs Hari Sabarno insisted that the amendment of the two laws on regional autonomy and on fiscal balance were aimed at preventing the unitary state from developing into federal states.

He said only conflicting and confusing articles would be amended. He cited Article 7 of the regional autonomy law because it stipulates that regencies and mayoralties have authority in all fields with the exception of defense, foreign affairs, monetary and court affairs.

Hari also said the central government was reviewing hundreds of local bylaws which were in contradiction to the two laws. "Such bylaws have been made by the regions because of misinterpretation of the laws," he said. Besides causing misinterpretations, the implementation of regional autonomy has also raised a number of territorial disputes between the regions and the central government and among provinces and regencies.

Surabaya Mayor Sunarto Sumaprawiro's dismissal on January 16, 2002 has raised strong controversy with the central government ruling against it. Masjkur Hasyim, chairman of the joint faction, said many regions have misinterpreted the laws because the central government had not yet issued other related laws and numerous regulations to implement regional autonomy.

"The minister should not blame the regions for the misinterpretations but its own department that has failed to make more regulations to enforce the two laws," he said, adding that so far, the central government has issued only around 40 of more than 110 government regulations needed to implement the autonomy.

Hasyim warned that the Association of Regency and City Legislatures (Adeksi) was lobbying all its members to oppose the proposed amendments to the two laws.

Victims neglected, diarrhea hits 18,000

Jakarta Post - February 6, 2002

Muninggar Sri Saraswati and Rendi A. Witular, Jakarta -- Without even the most basic assistance from the government, people here have been left completely on their own in the aftermath of floods which have paralyzed the city, and ravaged their belongings since last Monday.

Most of floodwaters that surged across the city had receded by Tuesday. As many the evacuees returned to their homes, however, they realized that their problems were far from over: along with the damaged possessions inside their flooded houses lurked the potential for serious diseases.

Days after the floods hit the city, many people in affected areas fell ill with a variety of sicknesses. But unfortunately, not all of them were lucky enough to get the free medical treatment the city administration had announced earlier.

Jakarta Health Agency Chief A. Challik Masulili estimated that some 18,000 people were suffering from diarrhea and that, as of Monday, two children had died of the disease in North Jakarta.

Last week, the administration announced that all flood victims would be eligible to receive medical treatment for free in any hospital here. The condition for this care? A reference letter from each patient signed by a doctor on duty at a health post in their area.

However, the administration had staffed only 70 official health posts in the 263 shelters accommodating displaced people. Only 265 doctors, therefore, have been available to serve them.

Most evacuees in Cipinang Besar area, East Jakarta, chose to go to a hospital at their own expense, even though a health post was available there. "My son needs medical treatment soon, but we haven't met with the doctor at the post -- while I went there, there were only a few nurses and officers from the city health agency," said Sitorus.

His son was swept away by the flooding on Friday night, but was eventually rescued, despite suffering a broken leg. Sitorus said that he had to pay over Rp 1 million for the medical treatment. "An officer at the post told me that I couldn't get reimbursement for the money I've spent for my son's medical treatment. He said that they were only authorized to issue a reference letter -- which is not easy to get," he said despairingly.

A group of evacuees among the hundreds of people at a shelter in Halim, East Jakarta, admitted that they had to go to a nearby private clinic to get treatment; the medical assistance at the shelter, they said, was just not adequate to help everyone there.

A non-governmental organization and the Red Cross provided the medicine, most of which was meant for general diseases, such as antibiotics. "I went to a clinic yesterday to treat my five-year-old daughter. I don't have a penny, but a volunteer gave us some money," said Rojikin, adding that his daughter suffered from asthma. Ibu Kasmawati, a flood victim from Bukit Duri subdistrict, South Jakarta, complained about the absence of professional doctors; the camp for evacuees where she was staying was only equipped with a limited supply medicine and was staffed by volunteered medical students with varying degrees of experience.

"My one-year-old daughter has been suffering with a fever for three days now -- I've brought her to the medical post at the camp, but until now, I see no sign of her getting better. I need a real doctor -- not just a medical student doing a residency," she said, worriedly.

Kasmawati had taken shelter at the Attahiriyah Muslim University evacuee camp in South Jakarta. The camp, accommodating about 6,000 people, was extremely squalid, with a mountainous heap of garbage out front, threatening the health of its residents.

According to Safta, the field coordinator of student volunteers for the Association of Muslim Students (HMI), since the opening of the camp on January 28, not a single doctor has come to inspect the evacuees. "We cannot rely on professional doctors, as none of the ones we've asked for have come here," he said.

The field coordinator of medical team for flood victims, Dr. Aryono Juned Pusponegoro, said that medical teams could not cover all the flood victims. "We are having difficulties covering all of the areas that have been hit by the floods because we only have so many ambulances," he said. "We used to have 15," he continued, "but now we are down to 14 -- one of them was trapped by floodwaters in West Jakarta."

Flood of criticism

Straits Tiems - February 6, 2002

Marianne Kearney, Jakarta -- Politicians such as People's Consultative Assembly Speaker Amien Rais as well as newspapers which were formerly supportive of President Megawati Sukarnoputri's government have lashed out at the central government's slow and uncoordinated response to the floods in the capital.

Yesterday, the central government came under further fire as the Coordinating Minister for People's Welfare, Mr Jusuf Kalla, pointed out that despite a nationwide death toll of at least 65, the Cabinet had decided that the flooding was not a "national disaster" but just a "common disaster".

Dr Amien criticised the government for failing to declare a national emergency, as this would release more funds and make the coordination of aid between different arms of both national and regional governments easier. "What the government has done so far is far from enough. There are a lot of complaints from the public. I hear them every day on radio, television and newspapers," he said.

Meteorologists predicted more rain over the coming week in the water-logged capital and across Indonesia even as Jakarta yesterday began the daunting task of cleaning and rebuilding the city. About 80 per cent of the 330,000 Jakarta residents displaced over the past week have returned home, officials said. Dozens of trucks have also been deployed to clean up the tonnes of garbage left behind by the floods.

When President Megawati visited some of the flooded neighbourhoods in a dinghy on Friday, she was greeted with signs erected by angry people declaring: "We don't need your visit, we need food." Another sign said: "We have been inundated by floods, while the government is inundated with money." It expressed popular frustration with the corruption within the local parliament following reports that only a small amount of money allocated for flood prevention had been spent last year.

Previously strong Indonesian Democratic Party-Struggle (PDI-P) supporters are disillusioned with Ms Megawati's slow response to the disaster and her government's lack of any kind of emergency procedures to deal with them, say residents and political commentators.

A central Jakarta resident said all her neighbours who had previously been strong PDI-P supporters were openly critical of Ms Megawati. An expatriate resident agreed the mood had turned against her government. "People are really pissed off with the corruption."

Commentators are warning that public perception of Ms Megawati as a sympathetic and honest leader working under difficult political constraints has been damaged. One newspaper article with the headline, "Megawati and Hamzah fall short of expectations", asked why Ms Megawati had waited for Cabinet approval to console flood victims.

And even the normally restrained Kompas newspaper called the floods "Fruits of the nation's stupidity". It said Jakarta's Dutch colonisers who devised the city's original canal system would laugh at the stupidity of a nation that is flooded not because of a shortage of funds but because the money ended up in individuals' pockets.

A number of newspapers have called for Jakarta governor Sutiyoso's resignation, with The Jakarta Post describing the Jakarta government as "an administration that is not only ineffective and incompetent in preventing a disaster, even when it had plenty of forewarning, but one that was totally impotent when the disaster did strike".

Yesterday, 24 non-government groups also met the Jakarta parliament and demanded the resignation of Mr Sutiyoso.

Pilger supporters punished

Green Left Weekly - January 30, 2002

Max Lane -- The Australia Indonesia Institute (AII) is advertised as a body promoting people-to-people relations between Australia and Indonesia. Its real role in defending the political status quo in Indonesia and Australia has been revealed by a recent funding decision.

The AII rejected a $16,000 funding application from Curtin University to bring several Indonesians to an academic conference being held at the university on February 2-4. The funding was rejected because journalist and writer John Pilger has also been invited to speak at a plenary session on February 4.

AII chairperson Philip Flood was quoted in the January 19 Age saying: "We don't have a problem with them inviting John Pilger, we don't have a problem with him expressing his views -- we just didn't think we should pay for him".

Flood's comments are dishonest and cover-up the real character of the institute's decision. Curtin University did not ask for money to pay any of the costs for John Pilger's participation in the conference.

There can be only one way to view the decision: it was punishment for inviting Pilger, a known critic of Australian foreign policy and of the kind of economic development promoted by key members of the AII board.

This decision, setting a precedent for government bodies refusing funding as punishment for involving critics of government policy, should sound warning bells to academics and cultural workers everywhere.

Philip Flood, like previous AII chairperson Richard Wollcott, was an ambassador to Indonesia when General Suharto was president and defended the Suharto regime from its Australian critics. Flood was criticised by Pilger for his role in covering up the horrors that took place in East Timor under Indonesian military occupation.

In the January 17 West Australian, AII board member and business tycoon Harold Clough claimed that he led the charge arguing against funding the conference. Clough's company in Indonesia, Petrosea, made huge profits during the Suharto period. Among its projects was building roads for the notorious Freeport mining company in West Papua.

Flood and Clough's push to punish Curtin University for inviting Pilger should be rejected by the academic, journalist and Indonesianist community in Australia. The academics and journalists who are members of the AII board should resign in protest.

Pilger will also be speaking at a March 1 Sydney public meeting organised by Green Left Weekly.

Aid for flood victims 'highly politicized'

Jakarta Post - February 4, 2002

Kurniawan Hari, Jakarta -- The next general election in 2004 is still a long way off, but political parties have been seen politicizing the severe floods in the capital city as clearly displayed during the hand-over of humanitarian aid by party' leaders to flood victims.

Their actions are designed to enable them to succeed in the general election, political analysts have said. "That is not only a premature campaign, but also a political conspiracy for the interests of the party," said J. Kristiadi of the Centre for Strategic and International Studies (CSIS) here on Sunday.

He said that the practice exemplified the failure of the political parties in performing their main task of voicing the people's aspirations and of maintaining the growth of democracy in the country.

Fellow analyst Chusnul Mar'iyah from the University of Indonesia (UI) noticed that a lack of experience of democracy had led politicians to use whatever means they can for political gain. "Rather than just trying to survive in the 2004 general election, I think they should find more ethical means to achieve that goal," Chusnul told The Jakarta Post.

Instead of offering the humanitarian aid personally, Chusnul suggested that the government, which constituted a coalition of several political parties, should establish a collective command post, involving representatives of all ruling parties to help flood victims.

The two analysts made the remarks following visits by several political leaders to areas severely hit by floods to give local residents humanitarian aid. Their social welfare activities were mostly performed under the banner of their own political parties. Several political leaders distributed aid on Thursday after the fourth day of flooding.

People's Consultative Assembly (MPR) speaker Amien Rais, who is also chairman of the National Mandate Party (PAN), wore a T-shirt and cap with the logo of his party. At that occasion, Amien strongly criticized President Megawati Soekarnoputri, who is chairwoman of the Indonesian Democratic Party of Struggle (PDI Perjuangan), for her slowness in addressing the flood problems. The criticism was quickly countered by chairman of PDI Perjuangan faction Roy B. Janis, saying that his party had taken the lead in providing donations.

Former secretary-general of the National Awakening Party (PKB) Muhaimin Iskandar, who is House deputy speaker, also joined in the polemic, saying that the PDI Perjuangan donations were merely an apology for its lack of a sense of crisis.

In a more regretful incident, a source said that a Golkar leader had claimed a donation was given by his party despite the fact that the donations were collected by legislators from various parties.

Kristiadi emphasized it would be inappropriate for any state official to give aid under the banner of their own political party. "From the time political leaders are sworn in to take a position within the state administration, they must not act under the banner of their political party," he said.

Kristiadi added the nation needed to develop norms and ethics to determine which actions could and could not be carried out by political leaders. "The political leaders should remember that they don't give donations to their constituents, but to the people as a whole. Therefore, they must not display attributes [logos] of their political party," he said.

According to Kristiadi, the phenomenon reveals that the nation's political stage is marked by political struggle among its leaders. The political elite do not fight for the people's interests, but use the name of the people to achieve political goals. "This is extremely regretful," he said.

Chusnul hoped that political leaders would not try to seek political gains in return for donations. She feared the people may be terrorized by political parties to give support to a certain party in the election. She suggested that political groups in the government should join hands in coordination with the President to set up a crisis center for the people who have suffered during the floods. "It would be an easy thing for the government," she added.

Jakarta floods leave the question: Who's to blame?

Jakarta Post - February 4, 2002

Jakarta -- It is impossible to stop the rain. But it is possible to minimize floods, or at least be prepared them. Unfortunately, what happened in Jakarta was just the opposite.

It had long been predicted that major flooding would hit the city. In 1996, it was severely affected, and then, there was a warning such a disaster could happen once every five years. But the city administration took it lightly. Flood control projects were not carried out properly and city planning was very poor.

Even after floods swamped Jakarta last week and left at least 380,000 people homeless, the administration still failed to address the problems seriously. The provision of health care for flood victims was a cumbersome, complicated process which included a requirement to have a reference from a doctor from a health post. But doctors were rarely present in affected area.

The food supply was also not as smooth as promised. Hundreds of evacuees along the railway in Kedoya Utara, West Jakarta, received assistance from individuals, companies and NGOs. "As far as I know, we never received aid from the city administration and we have been here for a week," Subekti, head of a neighborhood unit, told The Jakarta Post.

An evacuee at the Al Islam mosque in Petamburan, Central Jakarta, said that many people could not eat the food they received from the administration as it was stale. "We received the food from the [flood monitoring] post, but I could not eat it," said Saudah, a mother with six children.

Governor Sutiyoso announced on Sunday that 176 public kitchens had been established in 301 temporary shelters. The administration had also provided 232 tons of rice, 3,720 packets of noodles, 1,000 boxes of cookies, 5,400 cans of sardines, 25,000 lunch packs and 115,000 ready-to-eat food packages. Other assistance included 2,200 mats, 2,500 blankets, 750 pieces of clothes for adults and 600 pieces of children's clothes. Even though the floods had receded, he called upon the public to stay alert because the rain, as predicted by the Meteorology and Geophysics Agency, would continue to fall for the next few days.

The floods obviously caused tremendous economic losses, which would be calculated later after the disaster was over. To restore the loss caused by the floods, the city administration plans to use the Rupiah 550 billion which was not spent in the 2001 budget. Sutiyoso said that he had sent a letter to the City Council to ask for their approval about the plan. He also said that he would discuss with the central government about the continuation of the East Flood Canal project.

The council has repeatedly called for the city administration to use the unspent 2001 money to finance flood control projects, but the idea has been ignored. In fact, the city's fiscal policy certainly raises questions as many projects failed to be completed. Last year, it only used 40 percent of the total of Rupiah 249 billion that was allocated for flood control projects.

As for the idea to build the East Flood Canal, it was not new at all. The design was first produced in 1973, but had been on and off since then. The canal is to run for 23 kilometers from Jl. D.I. Panjaitan, Cipinang, Buaran, Pondok Kopi and Cakung areas -- all in East Jakarta -- to Marunda beach in North Jakarta. The East Canal, along with the West Canal, which was built by the Dutch colonial government, would drain all of the city's 13 rivers.

Sutiyoso had emphasized that floods were unavoidable because 40 percent of the city is located in the lowlands. He also blamed Mother Nature and squatters living along the riverbanks.

Under the pressure of public criticism, Sutiyoso said on Thursday he was ready to resign, but then said he would only leave if it was "in accordance with the procedures". But activists urged Sutiyoso on Sunday to resign voluntarily. "Sutiyoso should resign. The sooner, the better," head of the research development division of the Urban Poor Consortium (UPC) M. Berkah told The Jakarta Post.

Berkah said a voluntarily resignation should be demanded since city councillors, who receive many perks from Sutiyoso, would be hesitant to oust the governor. He called on flood victims to hold rallies demanding Sutiyoso's resignation.

According to the procedure, it is the city council who could decide whether or not he should resign. But many doubt that the council would do that because the councillors do not have a history of criticizing the governor. Sutiyoso's five-year term will end in October. But he has reportedly lobbied political parties, including the largest one, the Indonesian Democratic Party of Struggle, to be reelected, even though he repeatedly claimed that he has no ambition to be reelected.

Chairman of the Jakarta Residents Forum (Fakta) Azas Tigor Nainggolan urged the council not to reelect Sutiyoso for his failure in flood management and other city problems. He said that the governor did nothing to help the flood victims.

Yogyakarta tense after clashes

Jakarta Post - February 4, 2002

Tarko Sudiarno, Yogyakarta -- Tension engulfed the tourist city of Yogyakarta on Sunday as hundreds of supporters of the United Development Party (PPP) clashed here with groups of local people, leaving several people seriously wounded and several vehicles burned or damaged.

Security authorities closed several main streets including Jl. Malioboro and Jl. Solo to motorists following the violence that also involved supporters of the Indonesian Democratic Party of Struggle (PDI Perjuangan). Security forces were on guard at the entrance of the two important locations, which are the heart of the city's trading center. A number of businesses were shut down due to fear of being targeted by attackers.

The clashes broke out in several parts of Yogyakarta, where convoys of PPP supporters marched across the city in motorcades after attending a party rally that marked its 28th anniversary in the town's north square. Witnesses said the violence began when the rally marchers were banging their motorcycles and jeering at different groups of passersby on the same streets. Local residents including PDI Perjuangan supporters were angry with what they considered to be the arrogant attitude of PPP marchers.

Physical clashes were unavoidable in several locations such as on Jl. Kusumanegara (Muja-Muju), Jl. Urip Sumoharjo (Jl. Solo), Jl. Suprapto (Ngampilan) and Jl. Parangtritis (Prawirotaman). Brawls also erupted on Jl. Mataram, Jl. H.O.S. Cokroaminoto (Kuncen), Jl. Wahid Hasyim (Notoprajan), and Jl. Gandekan (Sosrowijayan).

Many troops and police personnel stood guard across the city to prevent further violence from breaking out as rivals were rumored to launch retaliatory attacks. Up until Sunday night, tight security was provided at the site of the brawls.

Several cars and motorcycles were set ablaze or damaged during the clashes that also seriously wounded several people. Mujiono, a resident from Ngadiwinatan, was among those severely injured in a clash on Jl. Solo. His motorcycle was burned by rivals. Another victim Aji Setiaji, a resident from Cokrokusuman Jetis, is undergoing intensive treatment at the Bethesda General Hospital in Yogyakarta for serious injuries. It was not clear whether the injured people were members of PPP or not.

The violence had been anticipated by security task forces belonging to both PPP and PDI Perjuangan several days before Sunday's anniversary rally was held. There was no explanation why local leaders of the political parties were powerless to control their respective supporters during the rally.

Environment

Only 15 million hectares of forest area left in Sumatra

Tempo Magazine - February 7, 2002

Bambang Soed, Medan -- The World Bank predicts that Sumatra will no longer have dense forest areas by 2004. This dire prediction is based on the high 2.5 percent level of destruction taking place on that island.

Executive Director of International Conservation in Indonesia, Jatna Supriatna, said that the World Bank had announced this in 2000. "As predicted, there are only 15 million hectares of forest left in Sumatra due to extensive deforestation.

Meanwhile in Java, there may be less than one million hectares of forest areas left. And those areas may well be damaged," Jatna said in a discussion held at Novotel Soechi Hotel, Medan, today.

Jatna revealed that the destruction of the forest areas is one factor causing the recent flash flood in Medan and other cities in North Sumatra. For the same reason, some areas in Java were also inundated by flood. "Because the forest areas are destroyed, there are no longer water catchment areas. This means the hydrologic function of the forests is not working," Jatna said. Jatna cited the example of the flooding which Jakarta recently because of the overflow of the Citarum and Cisadane rivers, which originate from the Gunung Gede, Pangrango, and Halimun National Parks in the mountainous Puncak area. But these areas, which should have been water catchment areas, are now destroyed by the construction of hundreds villas. "About 5000 villas are illegally built in those areas. Only 1000 villas are legal," he said.

Logging could wipe out Tesso Nilo, WWF warns

Jakarta Post - February 6, 2002

Jakarta -- The Worldwide Fund for Nature (WWF) warned on Tuesday that one of Sumatra's rainforests could disappear within four years if logging is not stopped.

A recent survey conducted by WWF scientists showed that the 1,800 square-kilometer Tesso Nilo forest in the province of Riau harbors the world's highest level of lowland forest biodiversity, with up to 218 plant species per 200 square meters.

But the conservation organization said heavy logging for timber and pulp could produce "devastating effects on both plant and animal life". The forest is also home to a wide range of wild animals such as elephants, tigers, gibbons and tapirs. "This forest could be lost in less than four years if the current rate of logging continues," the WWF said, in a press statement obtained on Tuesday.

It said illegal logging involves communities, bureaucrats, military personnel and global market interests, and persists unchecked in Riau. "The logging that threatens Tesso Nilo is part of a pattern across Indonesia, where large financially troubled corporations, often with foreign ownership, sell forests for a tiny fraction of their true economic potential and without regard for their biological value."

WWF Executive Director Agus Purnomo asked the government to protect the world's richest forest and said his organization is ready to facilitate all parties to play a role in preventing damage to it. "We urge the Indonesian government to act now and set aside Tesso Nilo forest as a protected area for the good of future generations," he said, as quoted in the press statement.

The forestry ministry and Riau Governor Saleh Djasit have pledged to crack down on illegal logging. "This heritage should be safeguarded. I welcome anyone to come to Riau to learn to appreciate the rich local bio-diversity. I am prepared to support any party that is involved in coming up with agreeable solutions," Djasit said. The WWF, headquartered in Gland, Switzerland, also urged consumer countries, particularly the G-8 group of industrialized nations, to stop the international trade in illegal timber.

The organization's survey discovered that Tesso Nilo is much higher than other humid, tropical lowland forests in 19 other countries including Brazil, Cameroon and Peru.

Forest with rare species threatend by logging: WWF

Agence France Presse - February 4, 2002

Gland, Switzerland -- Wildlife conservation experts raised the alarm on Monday about an Indonesian forest where a record number of plant species are under threat from logging.

WWF International called for the tropical forest of Tesso Nilo, one of Sumatra island's single largest remaining areas of lowland forest, to be designated a protected area.

According to a field survey by the organisation, the forest harbours the "highest level of lowland forest plant biodiversity known to science". However, WWF warned it could be lost in less than four years.

The 1,800 square kilometre forest was found to have nearly twice as many species of vascular plants, visible plants with stems and leaves, than elsewhere in Sumatra. It is also home to elephants, tigers and gibbons among other wildlife.

Logging in Tesso Nilo is part of a pattern across Indonesia where companies are removing forests for a small fraction of their economic potential and without regard to their biological value, WWF said.

Illegal, small-scale logging is also going on, and the Indonesian authorities have pledged a crack down on the trend, WWF pointed out. Illegal logging is a complex issue, involving a number of parties, including communities, bureaucrats, military personnel and global market interests, it added,

"Indonesia has a rare opportunity to make an invaluable contribution to conservation, which the global community would certainly welcome," Claude Martin, WWF's director-general, said in the statement.

Health & education

HIV-AIDS spreads along Asia's drug routes

Reuters - February 7, 2002 (abridged)

Michael Perry, Sydney -- Increasing drug use in Asia is accelerating the spread of HIV-AIDS along drug trafficking routes from the so-called Golden Triangle to nations like Indonesia and governments are doing too little to combat it, a report says.

The report on 22 Asian countries, as well as Hong Kong and Macau, said Asian governments were working against the sexual transmission of HIV but they were not doing enough to prevent the virus spreading among injecting drug users.

"Without such action, Asia will continue to be home to what threatens to be amongst the worst regional AIDS epidemics on Earth," said the report by The Centre For Harm Reduction, one of Asia's foremost health and medical research bodies.

Seven million people in Asia live with AIDS or HIV (human immunodeficiency virus), which causes the disease.

The report said Asia had few HIV-AIDS prevention programmes for drug users, such as needle exchanges, and that many drug users shared needles cleaned simply by cold water, not the recommended boiling water or bleach.

"Drug use has become one of the major accelerants of the HIV epidemic in the Asian region," said the report available at the centre's Web site. The centre first issued an Asian HIV-AIDS report in 1997.

"Populations of drug users develop rapidly along trafficking routes, creating new drug markets and HIV threat in host countries," it said.

The report said Indonesia was one of the most at risk with HIV infection due to drug injections rising to 19 percent of the total number of people infected from less than one percent before 2000.

It said by September 2001, there were 2,313 cases of HIV in Indonesia, of which 449 were injecting drug users, adding there were some two million drug users, half of which injected. The report found injecting drug users made up 70 percent of HIV infections in China in 2001 compared with 66 percent in 1997.

Armed Forces/Police

Seven soldiers discharged for animal theft

Jakarta Post - February 8, 2002

Yemris Fointuna, Kupang -- The Indonesian Military (TNI) has dishonorably discharged seven of its personnel arrested for stealing six cows belonging to residents of Sulamu village in East Nusa Tenggara province, local TNI commanders said on Wednesday.

Udayana Military Commander Maj. Gen. William T. da Costa, who is responsible for security in NTT and Bali, said the seven soldiers were dismissed from the Army due to their involvement in the armed theft. The official order for their discharge would soon be issued, he said. The suspects are First Lt. A.H., the commander of the Naibonat military unit, and six of his subordinates.

William said A.H.'s unnamed superior would also be punished for allegedly allowing his subordinates to carry weapons without permits. However, the form of the punishment had not been decided upon yet, he added.

William further said the accused soldiers had tarnished the TNI's reputation amid its efforts to boost its image, already reeling from accusations of human rights abuses and other crimes across the country.

The local Military Police have completed their investigation of the seven suspects, and their files were handed over to military prosecutors on Thursday. Their trials are expected to be held soon in a military court, spokesman for Kupang's Wirasakti Military Command, Capt. Longginus Lelo, said.

He said the accused soldiers had "offended" military leaders in the province, adding that they had committed a big blunder as they used firearms to violate the law.

Wirasakti Military Commander Col. Moeswarno Moesanip had recommended that the seven soldiers be discharged from the TNI following the approval of the Udayana Military Commander.

The solder were caught red-handed last Sunday, along with seven civilian suspects, by Kupang Police. The arrests followed a complaint from local residents. The military suspects shot the six cows dead before putting them on a truck to Naibonat. A group of villagers, claiming to be the cows' owners, stopped the truck in Sulamu and police officers then arrived to arrest the suspects.

Moesanip said the military had paid the owners a total of Rp 15 million in compensation for their stolen cattle.

International relations

Howard, Megawati in joint move against terror

Melbourne Age - February 7, 2002

Lindsay Murdoch and Louise Dodson, Jakarta -- Australia and Indonesia last night vowed to strike an agreement to join forces to help counter the threat of terrorism in the region following a meeting between Prime Minister John Howard and President Megawati Sukarnoputri.

Australia also announced that it would provide Indonesia with five police patrol boats to help it break up people-smuggling networks.

After their meeting at the presidential palace, Mr Howard and Mrs Megawati both spoke of building a relationship between the two countries based on "realism and rationalism".

Mr Howard said that although "we are near neighbours, there were areas in which we will not always agree". But he emphasised that Australia strongly supported the territorial integrity and unity of Indonesia, a reference to criticisms from senior Indonesian politicians that Australia supported independence for Papua.

Mr Howard said that Indonesia had proposed a memorandum of understanding between the nations to counter terrorism. This was being worked on by government officials and he hoped it would be signed before he returned to Australia at the end of the week.

In addition, Mr Howard told Mrs Megawati that Australia would provide $1 million in special aid to Indonesia to help Jakarta recover from serious flooding. This is in addition to the $121 million aid Australia provides annually.

Earlier yesterday, Mr Howard was forced to cancel a scheduled visit to Indonesia's parliament this morning after a high-level snub of his visit widened to include the party of Mrs Megawati.

MPs from all of Indonesia's 10 major political parties had expressed opposition to Mr Howard's three-day visit by the time he arrived in Jakarta last night. The speaker of the lower parliament, Akbar Tanjung, said the political parties would ask Mrs Megawati to explain why she invited Mr Howard to the country.

Mr Tanjung joined Dr Amien Rais, head of the supreme parliament, in cancelling a meeting with Mr Howard. Dr Rais said Indonesia had not forgiven Australia for many past conflicts, including its policy towards Papua and disagreement over the handling of asylum seekers.

After angrily hitting back at Dr Rais on Tuesday, Mr Howard last night played down the snub, saying it was due to Indonesian domestic politics.

Several leading politicians and Jakarta newspapers have launched scathing attacks on Mr Howard ahead of his second visit to Jakarta in six months. Roy Janis, the parliamentary head of Mrs Megawati's Indonesian Democratic Party of Struggle, said Mr Howard's visit was not "largely welcomed by our party ... Australia has this dualistic approach when it comes to Papua".

Relations were strained last year over the asylum-seeker issue and have not fully recovered from Australia's involvement in East Timor in 1999.

Indonesian Foreign Minister Hassan Wirajuda tried to play down the MPs' boycott, saying it was not the official stance. "Some of the members did raise their concerns, but not all," he told the Jakarta Post.

Dr Rais said he still intended to attend a state banquet in Mr Howard's honour, scheduled for last night. He also admitted there was no hard evidence that Australia supported independence for Papua.

The Media Indonesia newspaper said in an editorial that unlike former prime minister Paul Keating, Mr Howard was temperamental and "likes to make unfriendly and racist" statements.

The newspaper accused Mr Howard of supporting the independence movement in Papua, but gave no evidence. It said Australia was the first country to support independence for East Timor. "For what he has done, Howard should experience the cyclone because he earlier created the wind," the newspaper said.

The Kompas newspaper said that despite efforts to improve relations, "the problem is with Howard's personality and performance, which in the Indonesian perception tends to disturb the state of the relationship".

The English-language Jakarta Post condemned the MPs' refusal to meet Mr Howard.

Indonesians are simply playing politics

Sydney Morning Herald - February 8, 2002

Michelle Grattan -- When Amien Rais arrived at the state banquet that President Megawati Sukarnoputri hosted for the Howards on Wednesday night, there was a distinct whiff of cynicism among the Australian travelling party. Only a day earlier Rais, one of the Indonesian Parliament's two speakers, had immensely complicated John Howard's visit by cancelling his proposed meeting with the Prime Minister.

Now here he was first in line among the dignitaries shaking Howard's hand. "He said 'Welcome back! Good to see you again'," Howard recounted yesterday. It was very Javanese. Rais had said he wouldn't meet Howard because the parliamentarians were critical of Australia's alleged interference in Indonesia's affairs. But he also wouldn't decline a presidential invitation.

At least that appears to have been the message given to the Australians. Rais's snub to Howard -- reinforced when the Parliament's second speaker, Akbar Tandjung, also pulled out of a meeting -- was substantially about domestic Indonesian politics. That's certainly how the Australians want it seen. Rais is an opponent of Megawati, and the Parliament was asserting itself against the executive.

But it also had a deeper message. And it affected how Howard has played his time in Indonesia. Despite the diplomatic messiness, the PM issued a tough rebuttal of Rais's claims even before he arrived in Jakarta. In his first day in Indonesia, Howard was still countering the Rais attack. One of Rais's allegations -- that Australia had accused Indonesia of being complicit in people smuggling -- might have been arguable, though Howard denied it. The other -- that Australia was encouraging the independence movement in West Papua -- was just not true.

Hugh White, director of the newly established Australian Strategic Policy Institute and a former adviser to Labor and Liberal governments, says: "The key thing that the incident demonstrates is that the big issue between Australia and Indonesia is not boat people -- it's the continual erosion of trust in the relationship flowing from East Timor and spilling into the Papua issue. People in Indonesia believe -- wrongly but deeply -- it was Australia's objective to take East Timor off Indonesia and that it's the objective to do the same with West Papua."

Indonesia's Co-ordinating Minister for Political and Security Affairs, Susilo Bambang Yudhoyno, told Howard straight out why the Parliament snubbed him and then told journalists there were "three particular perceptions" that many Indonesians held. One was that Australia had improperly involved itself in the "East Timor commotion". The second that "some elements of people" -- not the Government -- in Australia had given support to the Papua independence movement. The third, there was a perception that on illegal migrants Australia had "pushed Indonesia to the corner by always blaming Indonesia for not taking adequate steps to handle the matter".

The fears held -- despite Australian denials -- by many Indonesians about West Papua are understandable. After all, it's only several years ago that Australia said -- and certainly believed -- that East Timor should remain part of Indonesia. International circumstances and Australian opinion changed. Some Indonesians no doubt believe the same metamorphose of opinion may happen with West Papua.

In his talks with Megawati and his speech to the state banquet, Howard went to great lengths to reaffirm Australia's position. "I told the President that Australia strongly supported the territorial integrity and the unity of the Indonesian nation and we understand the challenges of a vast country," he said after their meeting.

Aware that his visit had become more high risk, Howard also seemed especially careful not to push Megawati beyond her comfort zone on people smuggling. So instead of pushing for firm progress on bilateral aspects, he put the greatest stress publicly on this month's regional conference on people smuggling, hosted by Indonesia and Australia in Bali.

Indonesia has always argued this is an international, rather than a bilateral, matter. However, it has accepted from Howard five police runabout boats to enhance its capability to deal with the people traffickers.

The Opposition's foreign affairs spokesman, Kevin Rudd, says the problem of having the bilateral people smuggling talks result in a "non outcome is not so much damaging in itself but damaging because it doesn't create momentum". Howard has a lot invested in this three-day visit, which winds up today after a visit to Yogyakarta, a key cultural centre of the country.

Relations between Howard and Megawati, fraught during the Tampa crisis, have significantly improved since November 10. Howard's aim this week is to consolidate that. Big hiccups notwithstanding, he has done so.

But his uneasy demeanour at yesterday's news conference suggested it has been a rough visit for him. As he headed off to Yogyakarta, there were reports that some regional parliamentarians there said they would not attend events put on for him.

Howard is very aware of how the pictures on these trips look back home, but the Indonesian leg is producing bad images -- summed up in a testy exchange between Howard and Channel 7 reporter Glenn Milne, who asked at yesterday's press conference: "Do you ever tire of coming up here with offers of assistance, aid and goodwill and being humiliated?" A tetchy Howard shot back: "Do you ever tire of excessively negative interpretations?".

On this visit, the public language between the leaders has been frank, even blunt. After their relatively short meeting, Megawati said: "We are convinced that the relations between Indonesia and Australia should be more realistic and rational in the future." In her banquet speech she was generous about Australia but also referred to the "ups and downs of relations" between the two countries over the years. Howard also did not gild the lily.

At the tangible level, the memorandum of understanding agreed on to counter terrorism marks a step up in the relationship. It's nothing like the security agreement of the Keating days. In retrospect that wasn't a very good idea, and neither side of Australian politics -- let alone the Indonesians -- would ever try such a thing again.

The anti-terrorism memorandum is useful politically and practically. The proposal came from the Indonesians, indicating they were engaged with Australia and with the issue. The Americans and some regional countries have been critical of Indonesia for not taking a strong enough stance against terrorism, and this will improve Indonesia's credentials.

The memorandum will provide a worthwhile exchange of information between Australian and Indonesian agencies on a range of law- enforcement and related issues. But its scope is limited. Howard was anxious to stress yesterday that none of the information exchanged would see Australia meddling in Indonesia's internal affairs. He had been asked whether Australia might share intelligence on Indonesian trouble spots such as Papua and Aceh.

The memorandum was the achievement of the visit. The failure to make bilateral progress on people smuggling was the limitation of it.

The openly expressed angst from Rais and other critics was an embarrassment and a restraint on the Howard trip. But it also contains a useful wider message for the relationship, which could be absorbed without significant damage because Megawati was as determined as Howard that their encounter should be positive.

Australia vows to address trade imbalance with Indonesia

Agence France Presse - February 7, 2002

Jakarta -- Visiting Australian Prime Minister John Howard said Thursday he would address a trade imbalance favouring his country after Indonesian officials raised the issue during talks.

"We have committed ourselves to ensure that there are no unnecessary impediments to trade and investment between our two economies," he told a lunch hosted by the Indonesia-Australia Business Council on the second day of a three-day visit.

Howard said last year saw steady growth in trade between the two neighbours. Citing Australia's own economic success, which had shown "one of the fastest" growth rates among industrialised countries, Howard said good corporate governance and clarity in the legal system were important to growth and would benefit trade and investment in Indonesia.

Indonesia exported 1.5 billion dollars worth of products and services to Australia in 2000 and imported 1.7 billion dollars, according to latest available figures from the Central Bureau of Statistics in Jakarta.

Figures from the Australian Bureau of Statistics for the first nine months of last year show the trend reversing, with Australian exports to Indonesia standing at 1.65 billion dollars and imports from Indonesia worth 1.85 billion dollars at current exchange rates. In remarks published this week, Australian ambassador Rick Smith said total trade last year was worth some 3.87 billion dollars -- back to the level before the regional economic crisis which began in 1997.

Howard said one of the main aims of his visit was to "to stress the critical importance of growing business relations and economic links between Australia and Indonesia to the bilateral relationship between our two countries."

Howard admitted the relationship had suffered some political strains in recent years but said people-to-people links and business relations had sustained it.

"Sustained by very strong person-to-person links in so many areas... we know that the basic infrastructure of our relationship has remained very strong," he said.

The fact the two countries were neighbours meant that their societies "are together forever" and each had the obligation to contribute to the strengthening of the relationship. The business world of both countries could play a large role, Howard said.

As he spoke at a upscale hotel, some 10 students from the state University of Indonesia protested outside. In posters and shouted comments they accused Howard of being a "racist," a "bootlicker" and a "capitalist".

Legislators had called for the Howard visit to be postponed. They took umbrage when Canberra last year complained Indonesia was doing too little to curb people-smuggling. There are also allegations, strongly denied by Howard, that Australia backs independence supporters in Papua province.

PM furious at snub by Indonesian kingmaker

Sydney Morning Herald - February 6, 2002

Lindsay Murdoch in Jakarta and Michelle Grattan in Singapore -- One of Indonesia's most powerful politicians enraged John Howard last night when he cancelled a meeting with the Prime Minister just hours before he was due to arrive in Jakarta.

Amien Rais, the Speaker of the People's Consultative Assembly, said Indonesia had not forgiven Australia for many past conflicts, especially disagreement over the handling of asylum seekers.

"We were considered as a country that pretends not to know anything about people smuggling activity," he said. "That's just too much, because it's impossible that our Government is involved in such activity." He also warned Australia not to support independence for the province of Papua, formerly Irian Jaya, and called on Mr Howard to make a clear declaration of support for Indonesia's territorial integrity.

In Singapore, the Prime Minister immediately hit back at Dr Rais's claims, saying they were "totally untrue". In a toughly worded written statement, he said the Australian Government "had never accused the Indonesian Government of being responsible for the illegal trafficking of people".

He also said it was "categorically untrue that we are supporting the independence of Papua". "The Australian Government unequivocally supports the territorial integrity of Indonesia," he said.

Mr Howard said he was "disappointed" at the Speaker's decision -- and suggested he had played fast and loose with the reasons given for the cancellation. "The appointment with the Speaker had been scheduled for some time, and had been proposed by the Indonesian Government as part of the standard format for official visits. "In fact, when he indicated his unavailability earlier today he gave as the reason his preoccupation with the current flood situation."

Australian sources last night also expressed doubts over Mr Howard's meeting with the Speaker of the House of Representatives, Akbar Tandjung, saying they were uncertain about whether this meeting, too, might fall over. Asked whether he would meet Mr Howard, Mr Tandjung told the Herald he would first consult other MPs.

The shock cancellation of the Rais meeting makes more difficult a visit in which the Prime Minister was already going to be treading on diplomatic eggshells.

The Australian Government is determined that people smuggling needs to be a central item on the agenda but the Indonesians have been loath to do other than brush over it during the coming talks between Mr Howard and the Indonesian President, Megawati Sukarnoputri.

The Indonesian Ambassador to Australia, Sudjadnan Parnohadiningrat, reiterated this week that from the start Jakarta's view was that the issue of illegal migrants "is an international issue". "Of course, if Prime Minister Howard would wish to touch upon the issue then of course Indonesia would be willing to discuss [it] in a kind of broad terms."

The formal rebuttal of Dr Rais's claims is a highly unusual move on the eve of such a delicate visit. Before the Speaker's allegations, Mr Howard said of Mrs Megawati: "It's difficult times for the Indonesian President with the very bad floods but both of us are keen at this stage that the visit should go ahead and I'm looking forward very much to being there."

Visit to a troubled neighbour may not be all gloom

Sydney Morning Herald - February 5, 2002

Lindsay Murdoch -- When Australian Prime Minister John Howard visited Jakarta six months ago, Indonesians held high hopes that their just-installed President, Megawati Sukarnoputri, would quickly oversee urgent reform of her country's economy, military and legal and political systems.

People were fed up with months of street protests and political instability under the rule of the erratic Muslim cleric Abdurrahman Wahid.

But if floodwaters that have inundated Jakarta ease in time to allow Mr Howard to make a scheduled three-day visit to the country starting today, he will find that Mrs Megawati has made little headway in implementing the hoped-for reforms.

"I don't see much happening at all," said Harold Crouch, an Australian academic who heads the Jakarta office of the Brussels-based International Crisis Group. "We no longer see street demonstrations. Nobody is trying to bring down the President, because there is no obvious successor. But what we are seeing is a basic holding operation."

To be fair, analysts say, Mrs Megawati faces daunting problems not of her making. Indonesia's economic crisis -- now in its fifth year -- has left her administration with dramatically scaled back resources. Servicing a national debt that is nearly 100 per cent of GDP leaves little money to implement government policy.

But Mrs Megawati has remained largely silent and appears increasingly disengaged as costs rise, exports drop, investment plummets and unemployment soars. She refuses journalists' requests for interviews and protocol dictates she cannot be questioned in public.

The country is having trouble serving its $US140 billion in foreign debt, restructuring banks, auctioning debtors assets and privatising state companies. Mrs Megawati's administration has disappointed many observers because of its failure to start to tackle problems that continue to scare away foreign investors, especially the country's weak legal system and endemic corruption.

Only a handful of the family and cronies of the corrupt former president Soeharto have been brought to justice. Despite the promises, no-one has yet been prosecuted in Indonesia for the rampage in East Timor in 1999. A special court to hear Timor cases has only just been appointed.

In Aceh, security forces are continuing a brutal crackdown on dissent similar to past campaigns that made the Acehnese even more hostile towards Jakarta's rule.

Military reforms that Mr Wahid tried to implement have stalled. In Papua (formerly Irian Jaya), the Government has still to form an independent investigation into the murder last November of the independence leader Theys Eluay, further alienating the indigenous population at a time that Jakarta has put a generous autonomy package on the table.

Worse, Mrs Megawati's administration is being increasingly seen by the rest of the world as the weak link in the war on terror in South-East Asia, despite protests by Indonesian officials that people cannot be arrested without hard evidence.

In other words, Mr Howard's visit comes at a time Mrs Megawati is coming under growing criticism at home and abroad. Observers expect him to publicly back her during the visit.

Indonesian officials have made it clear that talks between the leaders will not be dominated by the problem of asylum seekers. Mrs Megawati's Government insists the problem must be dealt with at an international level.

A meeting of 35 nations to be hosted by Australia and Indonesia this month is expected to discuss a regional approach to the asylum seekers crisis. Observers say the meeting, scheduled to be held in Bali, could become a watershed in the Howard Government's often-troubled relationship with Indonesia.

A workable action plan to stem the flow of asylum seekers and help the Megawati administration cope with the several thousand who are stranded in Indonesia could rebut criticism that Australia and Indonesia cannot work closely together for mutual benefit, observers say.

And unlike past years, East Timor has largely been removed as an issue that dogged relations between the two countries. The Indonesian Army has stopped incursions by militiamen in West Timor into East Timor, where Australian troops remain dug in along the border. Genuine efforts are being made to clear the West Timor camps of East Timorese refugees. And later this month the first meeting of its kind between Australia, Indonesia and East Timor will discuss ways to improve co-operation between the three neighbours.

Economy & investment

Indonesian financial position remains fragile: Moody's

Agence France Presse - February 7, 2002

Jakarta -- Moody's Investors Service said Thursday that Indonesia's B3 country rating and stable outlook reflected the continued fragility of its access to foreign loans.

This was due to political uncertainty, unstable relations with foreign creditors, high public sector debt, continued weakness in the banking sector and a lack of investor confidence, Moody's said in its latest annual report.

The government of President Megawati Sukarnoputri, who came to power in August, "appears to have added some stability and made modest progress in reforms," Moody's vice president Steven Hess said in a statement accompanying the report. He added Indonesia had also met its budget deficit target and managed to sell the Indonesian Bank Restructuring Agency (IBRA).

But the report said the government's "ambitious" budget and asset sales targets for the coming years would be more difficult to achieve with the "mounting political pressures leading up to the 2004 parliamentary and presidential elections."

It also said the country's political challenges remained "formidable" and Megawati's ability to implement strong policies and win parliamentary approval, had yet to be demonstrated.

Support from foreign creditors, Moody's said, would hinge on the country's ability to improve and maintain good relations with creditors and on the pace of reform, which it said was still slow. "Net international reserves have risen, improving external liquidity, but the latter is still weak," Hess said, adding Indonesia still needed the support of foreign official creditors to maintain its external payments.

The government's total foreign and domestic debts had soared to 132 billion dollars by last year and the government is currently seeking a debt rescheduling from its main official donor group, the Paris Club.

BCA bidders: When things are not as they seem

Jakarta Post - February 4, 2002

Berni K. Moestafa, Jakarta -- The final bidders have been announced, the financial markets are calm, the International Monetary Fund (IMF) is satisfied, so what worries analysts behind one of the country's most controversial divestment efforts: the sale of Bank Central Asia (BCA)?

For one, it is the bidders, said Mirza Adityaswara and Lin Che Wei, two banking analysts who have followed the BCA sale process from scratch. "The key for the country is not only how to get a prudent investor, but also to get a good price," Mirza said in a report of the Business Reform and Reconstruction CoRupiah. (BRRC) last week.

His statement seems to summarize everyone's hopes for an investor who can revitalize BCA -- a bank big enough to help accelerate the recovery of the entire banking sector. BCA was once the country's largest private retail bank. The government nationalized BCA after its former owner, the Salim Group, mismanaged the bank, requiring billions of US dollars in state- funded bailout funds to save it from collapse.

Nearly two years of efforts to return BCA to private hands is coming to an end, with the Indonesian Bank Restructuring Agency (IBRA) announcing the four final bidders last week. The reaction has been positive thus far, including from the financial markets and the IMF, which has made the BCA sale part of its loan requirement.

Yet a closer look at the four final bidders may revoke old fears of deception marring the sale process. All bidders have entered the final stage as consortia, each including at least one local investor.

Mirza said the composition of a consortium had much to do with the criteria IBRA imposed in the first round of tests to filter out a winning buyer for BCA. One is that a financial institution must lead the consortium, another that no investor may have any ties to Salim, whom the government has banned from reentering BCA.

In this respect, the Bank Mega consortium passes the first criterion, but may stumble on the second one. "The Bank Mega consortium does not want to disclose members of its consortium, and we do not think it would pass this test," Mirza said.

Despite the lack of transparency to date, a clearer picture may emerge once Bank Indonesia, which examines bidders' identities, finalizes its fit-and-proper test on Bank Mega. Che Wei also questioned the capabilities of Bank Mega, which he described as "a small fish trying to eat the big one (BCA)".

Next comes the GKBI consortium, which Mirza said was likely being led by Jamsostek, a state-owned social security company. Given its blotchy record, he said many believed Jamsostek had trouble managing itself, let alone a bank the size of BCA.

Che Wei added that the other three bidders in the GKBI consortium did not look convincing either. They are GKBI Investment, PT Saratoga Investment Sedaya and PT Rifan Financindo Asset Management -- names that ring no bells among the banking community.

While the local bidders somewhat lack credibility, the foreign ones appear to have compromised theirs. They are the US investment firm Farallon Capital, and the British-based Standard Chartered Bank Plc. Farallon teamed up with up Farindo Holdings Ltd. and Alaerka Investment Ltd, a company owned by shareholders of cigarette producer PT Djarum. Sources say Djarum already owns a 14 percent stake in BCA through an undisclosed ownership in the stock market.

The Capital Market Supervisory Agency (Bapepam) did question the unknown investors of BCA's 14 percent stake, but fell short of exposing them. Thus far, there is no established link between the shareholders of Djarum and Salim.

Salim owns another 7 percent in BCA through IBRA under collateral, which for unknown reasons has not been sold yet. On Farallon, Che Wei said it might be a reputable investment firm, but as such its main interest was in making a profit out of reselling BCA later on.

Farallon reportedly wanting to turn the strong retail BCA into a coRupiahorate bank might also get the bidder into trouble. The bidder must outline its business plan for BCA to Bank Indonesia first and IBRA next must approve of the plan. Standard Chartered joined the final bid with the government of Singapore Investment Group Pte, Ltd., insurance firm Prudential Plc. and PT Berca Indonesia. Berca may be the weakest link in this consortium, which just a month ago consisted only of Standard Chartered. The British bank reportedly had to find a bidding partner as purchasing a controlling stake in BCA would affect its rating.

Drumming up Singapore Investment Group and Prudential should have make a solid enough consortium to risk an investment in BCA. Che Wei then questioned why Standard Chartered had teamed up with Berca, which before was a competing consortium for BCA.

Berca is controlled by Murdaya Po, who was said to have had close ties with former president Soeharto. Last month, Standard Chartered denied reports that the still influential Soeharto family had lobbied the bank for a stake in BCA.

Both Che Wei and Mirza agreed that the inclusion of local investors in the two foreign consortia was to secure some level of political support. This might be to avert a political backlash from anti-foreign sentiment.

But the questions surrounding their local partners reinforce fear that Salim might still be able to regain control of its once most precious asset.

2001 exports record biggest fall in 12 years

Jakarta Post - February 2, 2002

Dadan Wijaksana, Jakarta -- Total exports fell by 9.8 percent to US$56.03 billion last year, the biggest percentage decline in 12 years, the Central Bureau of Statistics (BPS) said on Friday.

BPS chief Soedarti Surbakti said that the decline in both oil and gas, and non-oil and gas exports, was primarily due to the global economic slowdown. "Percentage-wise, the 2001 exports decline is the biggest fall in the past 12 years, although in terms of value it is still higher than in 1997," she told a press conference.

But she added that the country still recorded a trade suRupiahlus of $15.24 billion last year due to slower imports which fell by 8.14 percent to $30.79 billion.

The decline in exports had been anticipated as the country's major export destinations including the US, Japan, and Singapore were headed toward recession.

Although exports had been the main contributor to the record economic growth of around 4.8 percent in 2000, the slower exports in 2001 did not cause a significant blow to the economy last year, which still grew impressively by 3.5 percent due to strong domestic consumption.

The government still expects this year's economic growth, projected at 4 percent, to be driven by domestic consumption as exports were likely to remain weak amid the global economic uncertainty.

Soedarti, however, said that Indonesia had managed to keep the US and Japan as its main export destinations by improving its export performance in the closing months of 2001.

The total value of exports in December rose by 4.13 percent to $3.99 billion, compared to $3.83 billion in November. Of the total, exports to the US in 2001 reached $7.23 billion, or an increase of $74 million over 2000, followed by Japan with $6.62 billion.

Elsewhere, BPS also reported that inflation jumped by 1.99 percent in January, and 14.42 percent year-on-year, particularly due to higher fuel prices and electricity hikes.

The government raised fuel prices by an average of 22 percent in the middle of last month as a consequence of a cut in fuel subsidies to help ease pressure on the state budget. The government had earlier raised the electricity tariff.

Soedarti said that the fuel price hike, which would increase transportation and manufacturing costs, triggered higher prices of basic commodities, notably rice, which was up by 12 percent.

The higher fuel prices would continue to affect prices in February, she said. She added that inflation would likely remain high in February because of the current floods, saying, "It will pose a potential threat to the sustainability of the goods and services distribution."

Torrential rains over the past week has caused debilitating floods in Jakarta which has hurt productivity in many sectors.

The government is targeting an inflation rate of between 9-10 percent. High inflation could undermine the central bank's efforts to push interest rates lower. Bank Indonesia has allowed its benchmark interest rate to decline for four consecutive weeks. It now stands at around 16.9 percent. Businesses and the government have long urged the central bank to ease down the high interest rates.

Several analysts have predicted that inflation this year would likely be in the range of 12 percent to 13 percent following the fuel price hike.


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