Aceh/West Papua

Suspicion surrounds bid for peace in Aceh

New Zealand Herald - December 5, 2002

John Martinkus -- In a swamp in North Aceh usually home only to snakes, leeches, and the large biting iguanas the locals call Biawak, the Indonesian military has deployed roughly 3000 combat troops from five battalions backed up with armoured vehicles, three attack helicopters and light artillery.

The troops in the past few weeks have surrounded an 8km-long, 2km-wide area of the swamp. Local journalists who toured the site in November say a squad of seven men had camped out every 50m around the entire perimeter. Rocket attacks from helicopters have taken place and frequent bursts of fire from truck-mounted heavy machine guns have been poured into the area by the Indonesian military.

Inside were the leaders of the local Free Aceh Movement guerrillas, GAM, 200 of their men and a number of civilians, who fled into the area when the Indonesian military began its latest assault. The encircled area is 24km from Aceh's second largest city, Lhokseumahwe, and only 10km from the Exxon-Mobil Arun gas processing plant -- the Indonesian state's second largest foreign currency earner.

It has always been an area of high military activity. A unilateral ceasefire was announced by GAM for the Muslim fasting month of Ramadan. Rebels and the Indonesian Government are set to sign an accord in Geneva on Monday to end two decades of violence in which thousands have been killed. International aid donors gathered in Tokyo this week to discuss aid for the province. The meeting sponsored by Japan, the United States, the European Union and the World Bank was intended to offer an incentive to peace negotiators to reach a final agreement.

The peace agreement is being negotiated by the Geneva-based non- governmental organisation the Henry Dunant Centre for humanitarian dialogue. The agreement outlines provisions for the cantonment and eventual disarmament of GAM and the cessation of hostilities against them by the Indonesian military.

The Free Aceh guerrillas' major objection is that the agreement does not reduce the role of the estimated 27,000 Indonesian police stationed in Aceh whose Brimob units act in a combat role similar to that of the military and are fully armed. The guerrilla organisation does not believe that the police will not be used to attack them once they have signed. "This is the main problem we face," says Teuku Kamarazzaman, the main guerrilla negotiator for the peace deal. "The police themselves, they use their weapons to attack GAM."

Teuku says the Indonesian military have used the Free Aceh guerrillas' peace offer to resume operations. "They use the chance of a ceasefire to attack the GAM base ... on our part we want peace, then they start attacking us. It is a double standard, two-faced."

GAM claims military helicopters began strafing villages in the area on October 31 and villagers who tried to flee were detained by the military. The guerrillas say four armoured personnel carriers and six tanks attacked the village of Blang-Jrok, in the area of Nisam, and ransacked 17 houses and burned down two looking for GAM on November 2.

Local women were strip searched and seven were sexually assaulted by regular Army Battalion 401 troops and Kopassus special forces who act in an intelligence gathering role for the Army, as they did in East Timor. Human rights workers and the Indonesian Red Cross are, like all civilians, denied access to the encircled area.

One British and one United States citizen are paying the price for the Indonesian authorities' desire to keep the details of the Aceh conflict quiet.

Lesley McCulloch, a Scottish-born academic doing research on the Acehnese conflict, and American nurse Joy Lee Sadler, who was working with refugees in Aceh, were put on trial last week in the capital Banda Aceh. The pair were arrested on September 11 as they travelled away from an area of South Aceh where there is a high concentration of guerrillas. They were charged with violating their tourist visas, a charge that normally results in immediate deportation at worst. The trial has been adjourned to December 19. The women have been told by their lawyers that they face up to five years in jail.

In a note smuggled from Banda Aceh's police headquarters, Lesley McCulloch told of being confined to a small, airless office with no window, living mainly on rice. Constant sexual harassment prevents her from leaving the room for exercise. Sadler is suffering from a serious illness and her condition is deteriorating. Many NGO and human rights workers in Aceh believe the pair are being punished for their attempts to make public violations carried out by Indonesian authorities in the state, and that their treatment has nothing to do with their visa violation.

McCulloch has written in the Australian and Asian press on the conflict. Military operations continue in the area of South Aceh, where the two women pair were arrested. GAM says the military held and questioned 300 people in an elementary school in the town of Sawory between November 1 and 10. Two hundred people fled to forest around the village of Cluet Utara after the military moved into that area.

A recent report from the Indonesian NGO that documents political killings and disappearances, Kontras, puts the figure of internally displaced people in all of Aceh at 62,000 out of a population of four million in the North Sumatran province at the eastern tip of Indonesia.

GAM information for the whole of the province of Aceh records 27 deaths in first 10 days of November 1 to 10 and attributes 120 deaths in October to the military. GAM says 95 per cent of the casualties in the conflict raging between the guerrillas and the Indonesian military since 1976, are civilians. About 1700 people have been killed this year.

The Henry Dunant Centre, which for three years has tried to broker a ceasefire in Aceh from its office in Banda Aceh, says that the arrival within weeks of the first six foreign monitors to the peace agreement paves the way for a full monitoring team of 150 foreign monitors once the agreement is signed. "We are asking the two sides to refrain from violence so we can build confidence and trust ... " says Dave Gorman, director of the centre's team. Negotiators are confident the agreement will allow foreign monitors, under the umbrella of the centre, into Aceh for the first time.

Much pounding in the marsh as phantoms hoodwink army

Sydney Morning Herald - December 7, 2002

William Nessen, Cot Trieng, Aceh -- Inside a 20-kilometre circle of marsh and shoulder-high grass dotted by thick patches of rattan and palm trees, Indonesia's military, the TNI, has aimed to end the nation's most persistent rebellion.

In its most concentrated attack against independence guerillas in years, the TNI has sent tanks, helicopters, rockets and warplanes to bombard a desolate swamp in the northern part of Aceh province.

Soldiers said they had repeatedly used up the local stock of mortar shells and deployed thousands of men to surround military leaders and rank-and-file fighters of the Free Aceh Movement (GAM) during the past month near the village of Cot Trieng.

Indonesian newspapers cover the drama daily, repeating the military's claims to have trapped GAM leaders at a guerilla headquarters or at least ensnared dozens of fighters.

However, the guerillas are probably long gone. Last week a local TNI commander quietly told journalists he suspected there were no guerillas there, but asked them not to say anything.

Like the siege, the apparent progress towards a political solution in talks in Geneva overlooks why GAM will not surrender its guns.

"We have absolutely no trust of the Indonesians," said Nasir Djamin, 32, an MP who wants a referendum for the province. "We will be at their mercy."

As if to punctuate these sentiments, a human rights activist, Musliadi, 26, and an assistant lecturer at the local university, Nasri, 27, were kidnapped by armed Indonesian men this week. The security forces said they knew nothing about it. Musliadi's body was found floating in the river on Tuesday.

Meanwhile, GAM's intelligence chief, Teungku Hanadeuh, this week claimed that he and GAM's military leader, Muzakhir Manaf, had tricked the Indonesians at Cot Trieng.

He said he wanted the story told because he feared the TNI would withdraw soon, without admitting they had been deceived, and claim to be supporting the peaceful spirit of the Geneva talks.

The swamp drama began as part of a broad TNI operation in northern Aceh aimed at catching Manaf. As the TNI approached Cot Trieng village on October 29 guerillas attacked. But with hundreds of troops bearing down on them, the rebels withdrew into the swamp.

Soldiers arrested two men, who told them dozens of male civilians had fled with the guerillas. With rumours of top GAM men in the area and the discovery of the mobile phone of the local GAM commander, Syaridin, at the edge of the swamp, the TNI's number two man in the area, Brigadier-General Bambang Darmono, said he decided to bring in moremen. "Normally, we'll chase them for a few days and then pull out, and GAM knows it. This time I wasn't going to let them get away."

On October 31 GAM declared a ceasefire for the holy fasting month of Ramadan in the hope that Indonesia would follow suit. Instead, the military and media took it as further evidence that GAM leaders were surrounded.

Syaridin and his men were in the swamp, but only for three days, he said. On the night of November 3 the last fighters crawled to safety through stands of sharp water rattan that ripped and bloodied the men and took them within an arm's length of Indonesian soldiers.

It was at that point, he said, that he called Manaf to suggest a bit of old Acehnese trickery.

Pretending the guerillas were surrounded in the swamp, a GAM radio operator began broadcasting an SOS. A second radioman answered immediately. Other GAM units would try to help; be careful and remain calm.

The night he escaped, Syaridin called his own phone and pretended to be in the swamp. A TNI commander told him to surrender, that he and the GAM fighters would be treated as POWs, rather than criminals.

"You are our brothers," a TNI commander told them, according to accounts of both sides.

Syaridin responded: "We don't have the word 'surrender' in our vocabulary. Come on in and fight us." Within 10 minutes of his call, about 11.30pm, the TNI began firing mortars into the area. On and off during the next 2 days the shelling continued, residents in the area said.

Brigadier-General Bambang said the TNI had not launched a final attack because he feared civilian casualties. Rather than fleeing willingly with the guerillas, the civilians were forced to act as shields, the general said.

Despite the assertion of Indonesian authorities that the tens of thousands of troops had made significant military inroads at serious cost to GAM, the guerillas maintained that they remained confident about their ability to fight, and, as they claimed at Cot Trieng, to hoodwink their adversaries sometimes.

After 26 years, Aceh takes shaky steps towards peace

Sydney Morning Herald - December 7, 2002

Matthew Moore, Jakarta -- With as many as 12,000 people killed in Indonesia's Aceh province over the past 26 years, a ceasefire agreement due for signing on Monday is long overdue.

Despite the years of bloodshed, it is hard to be confident that the Indonesian Government and the Free Aceh Movement, or GAM, will both turn up in Geneva and put their names on the line.

And if they do, it is harder still to believe any agreement will stick, that the guns will be put down, and that life in this remote province on Sumatra's northern tip will move towards a peace that many of the 4.4 million inhabitants have never known.

That there is a document to be signed and a date for doing so is remarkable enough, given the antipathy between GAM and the Indonesian security forces.

The past few days give a fair insight into the distrust that has been built up over years of attempts by the security forces to crush GAM.

On Monday one of GAM's military commanders named Amirullah and his companion were arrested by the notorious Brimob police, who shot them both dead, claiming they had attempted to escape.

GAM's military field commander, Amri Adbul Wahab, rejected the police version of events, insisting the two had been executed. He then promised GAM would pursue the police and get square, a threat history says should be taken seriously.

Two days later, on the 26th anniversary of GAM's fight for independence, Indonesian soldiers were shinning up flagpoles and tearing down banned GAM flags, which they burnt in front of television cameras. At one flagpole though, GAM's booby trap worked. It killed a policeman and injured an army officer.

It has been going on like this for years in Aceh, except that many of those killed, abused and tortured are Acehnese civilians caught up in the bitter struggle between GAM's guerilla army and a security force that has swelled to nearly 30,000.

Trying to mediate in this environment has been a Swiss-based humanitarian group called the Henry Dunant Centre. Over several years it has managed to bring the parties closer together, although not so close that they actually talk to each other.

Rather, the framework agreement due to be signed on Monday has been put together in a type of shuttle diplomacy where drafts have been taken to each side for modification and approval.

Just what the document now says is not publicly known, but important points agreed include:

• Establishment of a free and fair election process; _Cessation of acts of violence and intimidation, destruction of belongings, illegal arrests, attacks and raids;
• Establishment of a Joint Security Committee to monitor security, investigate violations and act as a point of reference for all complaints related to police functions;
• Establishment of a Joint Demilitarising Committee to disarm both sides; and _Both parties to immediately order their forces to cease hostilities once the truce documents are signed.

These are all important points, and there are plenty more like them, but numerous issues not yet finalised make the road ahead look very difficult. They include the highly sensitive issue of how and when both sides will be disarmed.

Without its weapons, GAM has no ability to bargain and it is extremely dubious about surrendering its guns. Its leaders have suggested a six-month moratorium before handing in weapons at agreed storage points but the military says the guns must be handed in immediately.

There is also a fundamental point of difference between GAM and the Indonesian Government which is not addressed.

GAM wants an independent Aceh, in the same way East Timor is now independent, and does not accept that a ceasefire extinguishes that option. Although former president Abdurrahman Wahid talked of allowing a referendum on this question, he was forced to back down in the face of a major backlash. There are now virtually no prospects of Indonesia's Government again changing its position.

With the Indonesian Government insistent no political party in Aceh will be allowed to campaign on an independence platform, GAM has no way of substituting a political campaign for the military one it's supposed to abandon.

And while GAM and the Indonesian Government are critical players in this dispute, the Acehnese people are not represented. Some representatives have been to Geneva during the negotiations, but they do not yet have the voice they need.

Army forces GAM split

Laksamana.Net - December 5, 2002

The Indonesian military's (TNI) assault on armed elements of the Free Aceh Movement (GAM) is bringing splits in the rebel movement to the fore, with one moderate leader accusing another leader of being a TNI agent.

GAM celebrated the anniversary of its foundation Wednesday quietly, with reports from the region that a call for Acehnese to stop their activities was widely observed.

Meanwhile the moderate GAM leader, who requested anonymity, told Laksamana.Net that GAM spokesman Sofyan Dawod, regarded as a hardliner, was an Indonesian military plant inside the organization.

"He adopts a hard line so that the military will have an excuse to attack our people," the leader said. "I admit I am a moderate. Why should we act in ways that will only bring suffering on our own people."

GAM has long been known to be riddled with factionalism. There are three main factions: that led by Hasan Tiro from Sweden, another group based in Austria, and a third in Malaysia. There are also a number of groups which are little more than brigands who use GAM's name as a cover for criminal activities.

Hopes are still high for a resolution to the conflict, which dates back to 1976 and has killed over 1,200 people this year alone, when negotiators meet again in Switzerland on December 9.

"I'm 97% sure the peace plan will be accepted, although there are issues that still need to be ironed out," said a Western diplomat involved in the negotiations, the Associated Press reported.

Defense minister Matori Abdul Jalil said last week the Army would launch a major offensive to crush GAM if the separatists backed out.

Troops were maintaining a 34-day siege of a suspected rebel hideout in a marshy area of North Aceh district.

Many GAM elements held ceremonies to mark the anniversary of the movement a day earlier than the actual anniversary, and rebel leaders, including Dawod, called for restraint.

He said GAM should not attempt to raise the rebel flag in civilian areas in order to reduce the risk of military action, and GAM checkpoints should be pulled off major roads to allow the population to celebrate the coming Idul Fitri.

Despite Dawod's instruction, at least one flag-raising occurred on the actual anniversary, according to Reuters, which added that some elements were continuing to state they would not participate in any peace process.

"If Aceh wants to be prosperous, the Acehnese people must be independent from Indonesian colonisation," GAM regional commander Darwis Jeunieb told his camouflage-clad troops in a field near the town of Bireun, the Reuters report stated. The agency also quoted Hasan Tiro as stating in Sweden that GAM would not accept a peace deal.

Meanwhile international aid donors were meeting in Tokyo to discuss aid for the province in a move to offer incentives for a peace deal.

Aceh rebels vow to keep fighting for independence

Reuters - December 4, 2002

Bireun -- Separatists in Indonesia's Aceh province commemorated the 26th anniversary of their fight on Wednesday with at least one military flag-raising ceremony and vows to keep fighting Jakarta's rule.

Security forces had said they would take tough action if Free Aceh Movement (GAM) rebels defied a ban on celebrations, stirring fears a crackdown would threaten a fledgling peace process.

The Indonesian government and the rebels are expected to sign a landmark peace treaty in Geneva on Monday.

But with no major incident by nightfall, the day proved calm by the standards of the restive province, where thousands have died over the decades of fighting.

Earlier, about 300 rebels from GAM's military wing ignored the ban on celebrations and pledged to fight until they had won an independent Aceh state on the northern tip of Sumatra island. Their ceremony ended without any disturbances.

"If Aceh wants to be prosperous, the Acehnese people must be independent from Indonesian colonisation," GAM regional commander Darwis Jeunieb told his camouflage-clad troops in a field near the town of Bireun, 150 km from the provincial capital Banda Aceh.

Jeunieb read a message from GAM leader Hasan Tiro, who, from exile in Stockholm criticised Indonesia for "killing 2,000 innocent people this year ... 10 a day". Tiro said the talks between GAM and Indonesia, which have run for more than two years in Switzerland, had been disappointing.

"This effort has disappointed us because of Indonesia's attitude which can't be trusted ... [they] have always cheatingly destroyed agreed pacts," Tiro said. "We are not afraid of the colonialists ... if needed, we will carry on this war until our independence dreams are fulfilled."

While other elements of GAM are more conciliatory and the group's official negotiators are expected to sign the treaty on Monday, Tiro's comments illustrated the possible difficulty in implementing it.

International aid donors met in Tokyo on Tuesday to discuss aid for the province. The meeting sponsored by Japan, the United States, the European Union and the World Bank was intended to offer an incentive to negotiators to reach a final peace deal.

Calm in capital

Many of Aceh's four million people want independence, but most appear to yearn for peace and an accounting of abuses under the harsh rule of former President Suharto, which ended in 1998.

Past peace agreements have failed but analysts say the Geneva deal has a better chance because of strong international backing and the desire of President Megawati Sukarnoputri's government to show progress toward stability.

In Banda Aceh, 1,700 km northwest of Jakarta, witnesses said the city was calm and shops that closed in the morning because of fear of trouble were reopening.

Bomb squads patrolling the streets earlier have disappeared and no separatist flags were visible, although one GAM flag -- a white crescent and star and black stripes on a red background -- was raised in a village about five km from the city centre.

Police said they confiscated GAM flags in 28 places but there was no major incident.

"There was a ceremony deep in the woods but it was among themselves and no incident came out from that. This is a good sign before the agreement because earlier threats on security were not proven," said police spokesman Taufik Sugiyono.

The position of the police has tended to be more conciliatory than that of the military. On Tuesday, Aceh military commander Djali Yusuf said any celebration would be met with force.

"No ceremonies. No flags. We will attack if we catch them. We're searching their positions wherever they are," Yusuf said.

The only known casualty on Tuesday was a member of the elite police Brimob unit who was killed by a booby trap when he tried to take a GAM flag down from a tree in northern Aceh.

On previous anniversaries, GAM flags have fluttered from houses and electricity poles and GAM troops have marked the day with military ceremonies around the province.

Banda Aceh quiet as GAM celebrates anniversary

Jakarta Post - December 5, 2002

Ibnu Mat Noor and Nani Farida, Kuala Simpang/Bireuen -- Banda Aceh was largely deserted on Wednesday, with most public transport off the streets, as the Free Aceh Movement (GAM) celebrated its 26th independence anniversary.

The situation in the capital, home to about 370,000 people, was generally quiet, with many shops closed. Only a small number of people were seen at traditional markets and shopping centers.

Banda Aceh's inter-city bus terminal was also deserted Wednesday. Police personnel offered help by operating dozens of buses for the public. Soldiers and police patrolled the outskirts of the city in trucks.

Sigli and most other towns in Pidie district and Lhokseumawe in North Aceh were also reportedly near-deserted on Wednesday morning.

GAM, which has been fighting for an independent Aceh, celebrated its 26th independence anniversary on Wednesday, despite warnings and attack threats by the Indonesian military (TNI) and police.

Government and GAM representatives are due to meet in Geneva next Monday to sign a deal to end the bloody war. International mediators from the Henry Dunant Centre say they are confident the signing will go ahead.

At least 28 GAM flags were hoisted in Aceh Besar regency Tuesday night, but security forces quickly lowered and burned them on Wednesday morning.

In Tamiang, East Aceh, GAM fighters held a flag-raising ceremony at 8 a.m. under tight security. Around one thousand GAM fighters were deployed to secure the location.

Tamiang GAM commander Tengku Syamsuddin bin Mahmud Saleh said the tight security was normal. "Just to make sure that December 4 is not a bloodshed day, but a day of commemoration of Aceh's independence. We have been commemorating that day since 1976," Syamsuddin told The Jakarta Post here.

A speech by self-exiled GAM leader Tengku Muhammad Hasan di Tiro was read out by GAM spokesman Tengku Fauzillah during the ceremony.

In his speech, Tiro urged the people of Aceh to ignore all threats from TNI and Jakarta. "We have fought this war for 26 years today. If needed, we will go on fighting until our noble goal is achieved," Tiro said.

Soon after the commemoration, a gunfight between TNI and GAM rebels broke out. There were no reports of casualties in the encounter.

GAM fighters in Bireuen regency, North Aceh, commemorated the movement's anniversary on Tuesday, apparently to avoid armed contact with TNI. Some 300 rebels in full battle gear attended the ceremony.

GAM field commander Muzakkir Manaf was conspicuously absent from the celebrations without explanations. "Muzakkir Manaf is unable to attend [the ceremony]," said GAM spokesman Sofyan Dawood who led the ceremony. Sofyan denied speculation that Muzakkir's absence related to the military siege at Cot Trieng, North Aceh.

Meanwhile, two explosions rocked locations in east Banda Aceh on Tuesday night causing tension among local people.

Earlier, a police Mobile Brigade barracks in Jeulingke, 4 kilometers east of Banda Aceh, was destroyed by fire. No casualties were reported.

Aceh activist found dead

Jakarta Post - December 5, 2002

Banda Aceh -- A number of student activists and several family members identified on Wednesday a body found under Senapit Bridge in the city, as Musliadi, coordinator of the Coalition for West Aceh Students Movement (Kagempar).

Musliadi was kidnapped by unidentified men last week.

Indonesian Red Cross (PMI) workers found Musliadi's body in Lembah Seulawah subdistrict, Aceh Besar district, on Tuesday and took it to Zainoel Abidin General Hospital. The body was covered in bruises, thought to be caused by sharp weapons and a blunt object.

According to his relatives, Muliadi, a graduate of Syiah Kuala University, was abducted by six unidentified men from his house, which had long functioned as the secretariat of a non- governmental organization.

The body of the 26 year old was buried in Sibreh village in Aceh Besar district.

Aceh NGO activist found dead after being kidnapped

Jakarta Post - December 5, 2002

Jakarta -- The 26-year-old coordinator of the Coalition for West Aceh Students Movements (Kagempar) was found dead in the Senapit area in Lembah Seulawah subdistrict, Aceh Besar district on Tuesday, Antara reported.

Musliadi, a graduate of the school of economics ofthe Syiah Kuala University here, had earlier been "fetched" by six unidentified persons from his home in the Lampriet area in Banda Aceh. The house also serves as the headquarters of Kagempar.

Volunteers from the Indonesian Red Cross found the body and took it to the "Zainoel Abidin" public hospital in Banda Aceh, where it was identified.

The body reportedly showed injuries caused by blunt objects and sharp weapons. He was buried at the Sibreh village in Aceh Besar district.

GAM accuses military of executing its Sabang leader

Jakarta Post - December 4, 2002

Ibnu Mat Noor, Banda Aceh -- The commander of the military wing of the Free Aceh Movement (GAM) in Sabang was arrested and then executed by Indonesian security authorities in Aceh on Monday, GAM claimed Tuesday.

The killing, just a day before GAM's 26th anniversary of its fight for independence, may have ruined chances of an end to the conflict, with a truce scheduled to be signed by both parties in Switzerland on December 9.

GAM military field commander Amri Adbul Wahab condemned the killing of Amirullah (alias Tengku Puteh), 35, by police in Lampuja village, Kuta Baro district, 10 kilometers east of Banda Aceh, the capital of Naggroe Aceh Darussalam.

Amri said GAM would take vengeance against local police for the execution of Amirullah and Ibnu, 30. Police have rejected the claim, saying elite Mobile Brigade (Brimob) officers shot the pair as they attempted to escape.

Amri said Amirullah and Ibnu were arrested on Sunday and executed on Monday in Lampuja at 10 p.m. Villagers who heard the gunshots called the Indonesian Red Cross who later evacuated the bodies.

"If that is the way the police uphold the law, it will affect the peace agreement scheduled for December 9 in Geneva," Amri warned. Despite a government ban and the local military's posturing, GAM says it will go ahead with plans to celebrate its anniversary and the declaration of Aceh's independence in remote areas in the province on Wednesday.

Acehnese figures called on the government to close its eyes to the celebrations to save the planned peace talks, but added Acehnese people should not be involved in the celebrations.

Meanwhile, Police spokesman in Banda Aceh, Maj. Taufiq Sugiono, said a Brimob officer from Regiment III in Jakarta, Jufri, was killed by a booby trap as he lowered a GAM flag in Buloh Blang Ara village, Kuta Makmur district, North Aceh. A military officer was also wounded in the blast.

On Monday, ten Army soldiers were injured, some seriously, when a truck carrying them to Bireuen, Pidie regency crashed in a village near the town on Monday.

Local Indonesian defense force (TNI) spokesman Maj. Eddi Fernandi said the truck, in a convoy from North Aceh, was due to driver error and slippery roads.

Those injured in the accident were Pvt. Sinaga, Pvt. Supardi, Pvt. Gunawan, 2nd. Sgt. Ukari, 2nd. Sgt. Manalu, Pvt. Sapulete, Pvt. Victor, Pvt. Ali. Pvt. Wilyan, and Pvt. Siwendra. The seriously wounded were taken to Medan for treatment.

Acehnese want peace and fair trials for rights abuses

Jakarta Post - December 4, 2002

Ibnu Mat Noor, Banda Aceh -- Having lived for years in violence, Acehnese are demanding that representatives of Jakarta and the Free Aceh Movement (GAM) separatist rebels support all attempts that could pave the way for peace during their meeting in Geneva on December 9.

Acehnese need peace the most, therefore the warring factions should focus on this, an activist said.

Yusuf Ismail Pase, who chairs the Institute for Environmental and Human Rights Protection (LPL-HA) suggested on Tuesday that Jakarta refrain from any moves that could jeopardize the peace process.

"I've heard that GAM is ready to sign the agreement should Indonesia show its support for peace by not attacking GAM," Yusuf told The Jakarta Post here.

He said the government should give GAM a chance to commemorate its 26th anniversary in order to let the group reconsider its position. "With goodwill from the government, who knows, GAM may sign the peace deal on December 9," Yusuf added.

He emphasized that a peace deal between Jakarta and GAM would be acceptable and popular among Acehnese people if it accommodated their basic demands.

First, the Acehnese people demand fair trials for perpetrators of past atrocities and human rights violations.

Second, the irony of Aceh, home to rich natural resources but with 60 percent of its 4.2 million population living in poverty, needed to be addressed soon through human resources empowerment programs.

Third, the government should recognize the Acehnese people's right to self-determination through a fair and democratic election.

Jakarta has repeatedly rejected the demand for a referendum to decide the fate of Aceh, saying that any settlement of the conflict in the province would have to be within the framework of the Unitary Republic of Indonesia.

As part of the effort to win the hearts of the Acehnese, Indonesia enacted a law on special autonomy for Aceh last year, which gives the province extra powers and a lucrative share of the revenues from the exploitation of natural resources.

Meanwhile, a GAM military commander, Amri Abdul Wahab, said that if the Indonesian Military (TNI) continued to pile on the pressure and disturb the 26th anniversary commemoration, GAM would withdraw from the peace talks.

Amri said that he had made preparations for the commemoration of GAM's 26th anniversary on December 4, including the deployment of guerrillas to safeguard the ceremony.

From Brussels, GAM's second-in-command Zaini Abdullah told Antara that the main differences between the rebels originated from the inclusion of political issues -- including GAM's acceptance of special autonomy for Aceh -- in the peace accord, which the Aceh separatist movement essentially considered a "Cessation of Hostilities Agreement" or a cease-fire.

Separately, spokesman for the Iskandar Muda Military Command Lt. Col. Firdaus Komarno said security troops would foil efforts to commemorate the GAM anniversary.

"The Iskandar Muda Military Command is only following the orders of the government, which has banned the commemoration of the GAM anniversary on December 4. Since it is banned, the TNI must make sure it is not commemorated," Firdaus told the Post.

He confirmed that the number of combat troops deployed in Aceh had reached 22,000, double the number in other regional military commands.

Besides preventing any commemoration of GAM's anniversary, he said, the troops were also assigned to protect civilians from GAM terror.

Separately, state news agency Antara reported that GAM negotiators were expected to depart for Geneva, Switzerland, on December 7. Teuku Kamaruzzaman confirmed on Tuesday that he had been invited by the Henry Dunant Center to attend the Geneva meeting.

At the meeting, GAM will send four negotiators. The four, Kamaruzzaman, Amni bin Marzuki, Amdi bin Hamdani, and Teungku Muhammad Lampoh Awee, will depart on December 7.

The final say on their departure, however, will depend on the concept and idea of the peace agreement from the perspectives of both the government and GAM. The concept of the peace agreement that is to be signed by both sides has yet to be finished. Kamaruzzaman added that apart from the GAM negotiators, civilian leaders from Aceh would also attend the talks in Geneva.

Aceh rebels go ahead with celebration despite warning

Agence France Presse - December 4, 2002

Separatist rebels in Indonesia's Aceh province celebrated the anniversary Wednesday of their 1976 declaration of independence, despite warnings from the central government and the armed forces.

"The celebration of our 26th anniversary is being held at all 17 [command areas] and dozens of other areas across Aceh," said Amri bin Abdul Wahab, a field commander of the Free Aceh Movement (GAM).

Wahab said all rebel forces were on high alert for possible army attacks. He said he hoped the government would not interfere in the ceremonies "because it could disturb plans for the signing of the peace agreement on December 9."

GAM and government representatives are due to meet in Geneva next Monday to sign a deal ending the bloody separatist war. International mediators from the Henry Dunant Centre say they are confident the signing will go ahead.

Wahab said ceremonies would only be held at isolated rebel bases and there was no reason for troops to intervene. Unlike in some previous years, civilians are not being forced to attend the ceremonies or fly the separatist flag due to concern that they might face military attack.

Two blasts followed by a volley of shots were heard on the outskirts of the provincial capital Banda Aceh around midnight on Tuesday. There was no immediate report of casualties or damage.

Despite warnings from the military, the GAM flag was flown in several places on the outskirts of the town Tuesday night.

Wahab said ceremonies would depend on conditions in each command area. "But what is certain is that all GAM troops should take part in the flying of the sacred Aceh flag," he told AFP.

Some rebels marked the anniversary early. About 400 fighters observed the occasion in a ceremony in the Tamiang area in East Aceh on Monday, witnesses said.

In North Aceh, where guerrillas are very active, the ceremony was held on Tuesday. Four hundred rebel fighters and scores of local villagers attended a ceremony in a field.

A witness said Sofyan Dawod, the GAM military spokesman and North Aceh commander, presided over the proceedings. Dawod was earlier believed to be among a group of rebels which has been under siege by the army for more than three weeks in the marshy area of Cot Trieng in North Aceh.

Dawod said the siege had many loopholes, adding he expected to lead another ceremony Wednesday at the GAM's main base at Tiro in Pidie district. He said the top rebel commander, Muzakkir Manaf, could not be present because of difficulties in travelling.

GAM has been fighting for independence since 1976. More than 10,000 people have been killed since then, some 1,200 this year alone.

Free Lesley McCulloch and Joy-Lee Sadler!

Editorial: Green Left Weekly - December 4, 2002

On November 25, the trials of Australian-based, British-born academic Lesley McCulloch and US nurse Joy-Lee Sadler began in Aceh. They are being tried for visa violations, after the prosecution failed to make espionage charges stick. McCulloch is a leading expert on Aceh and has documented human rights abuses in the province by the Indonesian military (TNI).

The women have been held in a tiny, windowless cell since September 10. Sadler is seriously ill, due to her HIV-positive condition, and McCulloch requires back surgery. Despite this, on November 27, the trial was adjourned for three weeks at the insistence of the prosecutor. The women fear the trial could drag into next year. The Australian, British and US governments have done little to defend the women.

In desperation, Sadler has begun a hunger strike.

The prosecution's cat-and-mouse game is payback for McCulloch's exposure of the TNI's crimes. As Sadler told the British Guardian on November 25, "The level of pure hate towards Lesley has been so great. I was really honest to God afraid they would take her out. I've never seen such hate".

The TNI has learnt the lessons of East Timor: keep the international spotlight off its repressive rule, especially in Aceh and West Papua. That is why the Indonesian government has tried to frame these two women, why it is cruelly mistreating them. Ironically, international attention on the women's custody has helped highlight the Aceh conflict.

International pressure has also contributed to the present dialogue between the TNI and the pro-independence Free Aceh Movement (GAM). However, the TNI is using this dialogue as cover for an escalation of military operations. Some 21,000 extra troops have been mobilised this month to carry out a series of major offensives. As a result, the number of displaced people has tripled to 62,000. Tanks, helicopter gunships and more than 1000 troops are holding the north Aceh village of Cot Trieng under siege.

Despite this, Prime Minister John Howard's government has begun to rebuild cooperation with the murderous TNI thugs. Defence minister Robert Hill stated in parliament on October 16 that the resumption of military ties will aid "counter-terrorism".

What a lie! The TNI regularly carries out acts of terror in Aceh, West Papua and in other parts of Indonesia -- just as it did in East Timor. It is involved in extensive criminal activities, including illegal logging and fishing, protection rackets, prostitution and drug-dealing. The most recent example was the killings at the Freeport mine in West Papua, which were committed by the local military to force the mine to resume its protection pay-offs.

The TNI has ties with extremist religious groups, such as Jemaah Islamiyah (JI) and Laskar Jihad. A December 2001 report by the Belgium-based think-tank, the International Crisis Group, suggests that JI was created in the 1970s by the head of Indonesia's military intelligence.

Past US and Australian training programs have not reformed the "culture" of the TNI -- even former Australian foreign minister Gareth Evans admitted in the July 24, 2001, International Herald Tribune that this "training" has "helped only to produce more professional human rights abusers".

A resumption of military ties will give political legitimacy to Indonesia's state-sponsored terrorists and gives the military a freer hand to commit political violence throughout the Indonesia.

Australia must overhaul its entire policy towards Indonesia. This should begin with ending all ties with the discredited military. Canberra must immediately intervene to secure McCulloch's and Sadler's speedy release.

Canberra's foreign policy towards Jakarta is based on collusion with Indonesia's corrupt ruling elites. The Australian people must demand that the federal government's policies toward Indonesia are socially just and aimed at assisting the people and organisations that the TNI deems to be the "enemy": the movements for independence in Aceh and West Papua, and those campaigning for genuine democracy and economic justice for the majority of Indonesians.

Violence claims at least six more killed in Aceh

Jakarta Post - December 2, 2002

Jakarta -- At least six people, including two soldiers and a member of the Free Aceh Movement (GAM), were killed in the latest violence to hit Aceh, AFP reported.

Three civilians were shot dead by soldiers searching for members of GAM in Manyang Baroh, in the North Aceh district, early on Sunday, the local GAM spokesman Teungku Jamaica said.

Jamaica said that the three victims, who were arrested at their respective home and shot dead in front of the village mosque, were "civilians who hadnothing to do with the GAM." An Aceh military spokesman, Col. Firdaus Komarno said that he has not received report of such incident.

He said one soldier and one rebel were killed during a shootout in Seulimun, in the Aceh Besar district, on Saturday. The local GAM spokesman Teungku Mukhsalmina confirmed that one rebel was killed in the incident.

The violence took place a few days before the 26th anniversary of the GAM on December 4 and a scheduled signing of a peace pact between government andrebel representatives to end the long conflict on December 9.

Firdaus said that some 1,400 soldiers on Sunday entered their 33rd day of siege of a marshy area in Cot Trieng, North Aceh district, where several GAMleaders and troops were believed to be holding out. The siege has been tightened and the rebels are now confined to a two square kilometers area.

Decky Murib: 'Captain Markus invited me'

Tempo Magazine -- November 21-December 2, 2002

On August 31, 2002, unidentified assailants opened fire on an International School bus carrying innocent civilians. American nationals Ted Burcon and Ricky Spear and Indonesian national F.X. Bambang Riwanto were killed.

Suspect Decky Murib, a resident of Harapan Village in Kwamki Lama, Papua, admitted his involvement in the incident to Papuan regional police a week later. According to his identity card, Decky Murib is a farmer, though he claims he's been an informer for the Indonesian Military's Special Forces Command (Kopassus) in Papua for over 10 years.

Last September 18, Murib told Deputy Chief of Police in Papua, Brigadier General Raziman Tarigan, that Kopassus troops were responsible for the Timika bloodshed. Also present when Murib made this confession were Indonesian intelligence officer, Commissioner Narji, Timika priest, John Jongga, Elsham director, Yohanis G. Bonay, and several other Papua police officers. The following are excerpts from an interview conducted by Tarigan with Decky Murib:

Intelligence Officer (IO): What do you know about the August 31 incident?

Decky Murib (DM): I was involved by association with Pak Tom (Beanal). At that time, I was a member of Operational Assistance Personnel.

Tarigon: You were a member of whose Operational Assistance Personnel-District Military Command?

DM: The Military's Special Forces Command, Kopassus. I have been a member of Timika's Military Special Forces Command Operational Assistance Personnel for a long time. On Saturday, August 31 between 7am and 8am, I was eating breakfast at the Serayu Hotel in Timika when Captain Markus approached me and asked me to join him, to go to Tembagapura. There was a white Freeport car parked in front of the hotel, with 10 people inside. I sat in the back. Captain Markus sat in front next to the driver, who was a Kopassus officer.

Tarigon: Who is Captain Markus?

DM: Captain Markus is the captain of the Military's Special Forces Command.

Tarigon: Do you remember the number on the flank of the car?

DM: 609

IO: Do you usually join such operations?

DM: On Saturday and Sunday, we usually fetch sugar or coffee from Tembagapura. I thought that was what the trip was about.

IO: Did you know any of the 10 people in the car?

DM: I had seen several of them at police or military functions. They were tall and had straight hair.

IO: What were they wearing?

DM: They were all wearing civilian clothing, plain T-shirts with black vests. They were all carrying weapons.

Tarigon: What kind of weapons were they carrying? Can you draw them?

DM: I can identify AK47s and M-16s. I have also seen a Steuer gun. But I had never seen weapons like those before. Even when I accompanied General Prabowo at Mapenduma, I never saw weapons like those. They were very short, black, contained a telescopic sight and a slightly curved magazine underneath.

Police Officer: Possibly they were MP-5's, Sir.

IO: What time did you actually leave the hotel?

DM: We left for Tembagapura at 8am. Everyone was silent during the trip-no one spoke at all. We passed a guard's inspection post at kilometer 50.

IO: Were you stopped at the post?

DM: No. We continued past the district command base and then stopped at about kilometer 58. They dropped me off with four officers. Captain Markus and the other five officers continued on to Tembagapura. After being dropped off, I was given five bottles of beer. I drank only two bottles but became drunk. To me it didn't taste like ordinary beer. The other officers didn't drink anything at all. Then they took my identity card. Suddenly, I heard a gunshot and two more gunshots soon after. I asked the officers whether the shots were from the commander's group. They told me, "No". They said the shots could have come from Operational Assistance Personnel. The car returned very soon after that.

IO: Who was inside the car?

DM: The captain's men. He ordered us to get in and head back to Timika.

IO: Where did you go after that?

DM: We drove to the kilometer 50 guard's inspection post and then returned to the place of the incident, at kilometer 62, where four foreign nationals were killed. Many military and police officers had already gathered there.

IO: Where did the other 10 officers go?

DM: They joined the gathering of officers and checked out the bodies. Then they ordered me to climb the hill to check for Operational Assistance Personnel. I told them I was drunk and refused. After that we returned to Timika.

Tarigon: How long have you known Markus?

DM: About one year.

Tarigon: Was Markus from the Tribuana Task Force Command or the Cendrawasih Task Force Command?

DM: He was from the Tribuana Task Force Command. Tarigon: If I showed you some photos of Tribuana Special Forces officers, would you recognize them?

DM: Yes. (When showed photos of Kopassus officers, Murib identified First Lieutenant Wawan Suwandi and Officer Jufri Uswanas, two of the officers who participated in the operation.)

Seven arrested in Papua flag-raising ceremony

Jakarta Post - December 2, 2002

Nethy Dharma Somba, Jayapura -- Defying President Megawati's instructions, some 500 Papuans gathered outside the residence of former Papuan Presidium Council (PDP) chairman Theys Hiyo Eluay on Sunday to commemorate what they called the independence day of the country's easternmost province.

And, despite a ban by local police authorities, they hoisted the Morning Star independence flag alongside the national red-and- white flag. During the commemoration, police detained seven people suspected of attempting to incite violence and to attack government offices.

The flag-hoisting ceremony was followed by prayers and a political address by PDP deputy chairman Thom Beanal.

The situation became tense during the flag-hoisting ceremony when people refused to salute the Indonesian flag and instead tried to lower it but were prevented from doing so by security personnel.

After listening to the political address, many people returned home, but others joined in a tribal celebration. A pig was slaughtered and its body cut into 41 pieces, depicting the 41st anniversary of Papua.

In general, the celebration proceeded peacefully as most people gathered outside Theys' residence in Sentani, some 45 kilometers from the provincial capital of Jayapura. Others gathered around his grave located nearby.

Beanal, in a speech read out by DPP moderator Rev. Herman Awom, said that the main agenda of the Papuan people next year would be to focus on reconciliation, consolidation and peace diplomacy.

An earlier consensus between PDP and local authorities reached on November 9 allowed PDP to organize a flag-raising ceremony but it was later revised.

Papua Police chief Insp. Gen. Budi Utomo said on Sunday that the existence of the Morning Star flag would be regulated further by a bylaw to be introduced by the local government.

Budi also revealed that PDP secretary-general Thaha Al Hamid had apologized for a flag-hoisting ceremony on November 29.

He said that Thaha had admitted that raising the flag was in violation of an earlier consensus agreed upon that a ceremony must not take place outside the compound of Theys' home. "Pak Thaha has been questioned and he apologized. He said he was unaware of any such activity," Budi told the press.

Budi emphasized that the government had not banned the celebration of Papua's 41st anniversary but flag-raising ceremonies and rallies. "If you celebrate your birthday, it is not banned. That's only a celebration," he added.

President Megawati, however, appealed to Papuans not to celebrate what in the past few years has been called the independence day of Papua.

Papua independence leaders have claimed that the territory declared independence on December 1, 1961 from its Dutch colonizer, and therefore demand that the Indonesian government recognize it.

The government, which officially gained control of the then western part of Papua New Guinea island in 1969 through a United Nations-sponsored vote, does not recognize the independence claim.

Meanwhile, security personnel arrested seven people for carrying knives and documents detailing a plan to create disorder.

Papua Police spokesman Adj. Sr. Comr. Daud Sihombing said that the confiscated documents revealed a plan to stage huge rallies, to attack government offices and to occupy vital assets such as the Freeport compound, the LNG Tangguh field in Bintuni and Santa Fe in Sorong. The seven suspects could be charged under Law No. 12/1951 on knives and explosives.

He confirmed that the Papua Police had deployed three companies of security forces taken from Jayapura, Sentani and the Police Mobile Brigade.

'War on terrorism'

Explosion which killed three at McDonald's was a bomb

Agence France Presse - December 6, 2002

The explosion which killed three people at a McDonald's restaurant in the Indonesian city of Makassar was caused by a bomb, according to national police chief Da'i Bachtiar.

He told reporters a bomb was also the cause of a second explosion Thursday evening in the city in South Sulawesi province.

In terms of loss of life it was the worst blast since a terrorist attack in Bali island killed more than 190 people on October 12. That attack was widely blamed on the Jemaah Islamiyah regional terror group.

Bachtiar said he has sent the national detective chief Erwin Mappaseng to Makassar to head an investigation.

"Despite what we have uncovered about recent terrorist actions such an incident still occurs," he said. He did not say whether he believes the Makassar bombs are connected to the Bali attack.

"There are still people and perhaps groups who are trying to cause disturbances and perhaps create fear among the public with bombs," Bachtiar said.

The police chief said 11 people were injured in the blast in a kitchen at the McDonald's in the city's Ratu Indah shopping mall.

Later Thursday evening an explosion damaged at least four cars at a Toyota vehicle showroom in the same city. No injuries were reported there.

A police source said the showroom was owned by top welfare minister Yusuf Kalla, a native of Makassar. Kalla negotiated an agreement last December to end Muslim-Christian battles in Central Sulawesi, and also a deal in February to end sectarian fighting in the Maluku islands.

The explosions occurred on the first evening of the Eid al-Fitr festival marking the end of the Muslim fasting month of Ramadan.

Government & politics

Indonesia's 'elite politik' plots to control elections

Green Left Weekly - December 4, 2002

Max Lane, Jakarta -- Any analysis of Indonesian politics during the last year three years, especially since the downfall of President Abdurrahman Wahid, has to take account of the steady rise in the masses' alienation from the Indonesian political elite.

The "elite politik", as it is called in the media and on the streets, is a very concrete grouping for the Indonesian masses, not just a sociological category. It comprises all the major political parties in the Indonesian parliament and the cabinet. The pinnacle representatives of this "elite politik" are President Megawati Sukarnoputri, House of Representatives chairperson Akbar Tanjung and Peoples Consultative Assembly chairperson Amien Rais.

This elite's collapse of legitimacy was reflected last week in a poll published by Jakarta's leading mainstream newspaper, Kompas. The poll identified Megawati as the most popular political figure from among the elite -- although she polled just 10%. All the other figures received much lower poll results. The combined vote for seven of the most prominent members of the political elite was barely above 20%.

Throughout Indonesia, the parliament and the government are held in contempt. Even one of the more genuine personalities in the parliament, Aberson Sillalahi, a member of the Indonesian Democratic Party of Struggle (PDIP) and one of the most outspoken PDIP critics of Suharto during the dictatorship, called on November 28 for the parliament's dissolution.

He referred, in particular, to the several cases when parliament had not reached quorums when deciding on key legislation. Recently, the parliament was unable to pass new legislation required for the holding of general elections. Only after increased public pressure, reflected through the media, did the parliament finally pass new laws on political parties.

With increased concern about whether the parliament will be able to prepare legislation in time, some PDIP members of parliament have openly raised the possibility of postponing the 2004 elections. They have suggested that it might be sufficient to simply hold a referendum to extend the current government and parliamentary term.

This discussion is still in its early stages. However, more obvious methods to consolidate the major political parties' dominance are embodied in the new legislation.

New conditions for parties with no current parliamentary representation are so severe, that it is possible that only the seven major parties may be able to participate in the elections. All such parties need to prove they have branches in more than 50% of Indonesia's provinces, membership in 50% of all administrative districts in these provinces and, further, that they have members in 50% of all sub-district administrative areas of all districts where a party claims to have members.

At the moment only the PDIP, Golkar, the United Development Party (PPP), the National Awakening Party, the National Mandate Party (PAN), the Star and Crescent Party (PBB) and, perhaps, the Justice Party (PK), can be assured of meeting the new conditions. Such a spectrum would restrict representation permanently to the current "elite politik". Apart from Megawati's increasingly conservative PDIP, there will remain a heavy bias towards former Suharto era parties (Golkar, PPP) and rightist parties operating under the Islamic banner (PAN, PBB and PK, but also including the PPP).

Another party that may be able to meet the conditions is the Peoples Democratic Party (PRD), especially if it was supported by the radical mass organisations such as the Indonesian National Front for Labour Struggles and various locally based mass organisations. The fact that the PRD was registered for the 1999 elections now counts for nothing. All parties must re-register under the new conditions.

The legislation defines political parties as organisations established to participate in elections. So human rights and democracy activists are concerned that a party's failure to achieve electoral registration will amount to a de facto ban on it. They are worried that parties that do not meet the conditions for electoral registration may not be allowed to engage in other political activities as political parties. There is also some concern that these provisions may be aimed at active radical parties, in particular the PRD. There are at least another 250 parties registered with the Department of Law and Human Rights.

The new law also formalises the ban on Marxist and communist parties. In addition, it bans parties from adopting policies that conflict with government policies aimed at preserving the "unitary state of the Republic of Indonesia". This may be used to suppress parties arguing for a federal structure or supporting self-determination for Aceh and West Papua.

Parliamentarians have been appearing on television almost daily during the last weeks defending the legislation as providing for "stability" and "good government", and arguing against the current plethora of parties. Media comment joins street opinion, however, in echoing a common theme that the new legislation is meant to do no more than consolidate the elite politik position.

This sentiment was further reinforced on November 28, when the parliament passed a new law regulating television and radio broadcasting. Despite strong protests from democracy activists, journalists and television stations, the parliament overwhelming supported the new bill. It provides for a broadcasting commission directly responsible to the president, with broad but vaguely defined powers to regulate TV and radio content. Thousands of journalists and activists demonstrated outside the parliament on November 28.

The gap between the major parties, with their 20% support, and mass sentiment is growing daily. The parliament is preparing for an election where the overall sentiment will be that the elections offer no choice. A debate is starting to emerge within the democratic movement over how to deal with this phenomenon. Should there be a call for immediate dissolution of the parliament and new elections under existing more democratic laws? Should there be a boycott campaign? And how can the democratic sector of society be united and mobilised to provide an alternative to the parties of the elite politik?

sRegional/communal conflicts

Two bombs explode as Ambon Muslims prepare for Idul Fitri

Jakarta Post - December 7, 2002

Jakarta -- Two home-made bombs were detonated at a vacated behind a hotal in Ambon, Maluku, on Thursday night as Muslims in the area were preparing to celebrate Idul Fitri, the end of the Ramadhan fasting month. There were no fatalities as the area, near the Batumerah-Mardika bridge behind Hotel Wijaya II, happened to be empty at the time.

The explosions also pass almost unnoticed amid the firecrackers that were set off by Muslims to celebrate Idul Fitri.

Ambon is the scene of some of the worst civil conflicts between Christians against Muslims these last three years. The conflict started on Idul Fitri Day in January 1999.

Sulawesi strife due to government failure: rights group

Agence France Presse - December 4, 2002

The sectarian bloodshed in the Indonesian province of Central Sulawesi is the direct result of Jakarta's failure to punish violence when it broke out four years ago, Human Rights Watch said.

An estimated 1,000 people have died and more than 100,000 have been displaced since violence between Christians and Muslims erupted in the province's Poso region in December 1998.

In a 48-page report, the New York-based rights watchdog accused the security forces of turning a blind eye to violence committed by both sides, and said shootings, bombings and attacks continued with impunity.

"Some Western governments want to strengthen ties with the Indonesian military in the fight against terrorism, but the army cannot even control conflict in many parts of the country," said Brad Adams, executive director of the Asia division at Human Rights Watch.

"This problem cannot be fixed by more weapons and training. The focus should be on reform," Adams said.

When the communal violence began in Central Sulawesi, the security forces not only failed to stop the attacks but often exacerbated the situation by firing into crowds and committing human rights abuses, the report said.

Many of the worst crimes went unpunished, and several subsequent outbreaks were tied to the lack of arrests for prior violence, it added. The few trials that did take place produced inconsistent sentences and took place in a "circus-like atmosphere" that inflamed tensions further.

Human Rights Watch called for an investigation by Indonesia's Human Rights Commission into the failure to contain violence in Poso, and urged that internationally supported training programs build the capacity of police in the province.

Indonesia said Tuesday it would keep 2,600 police and 900 soldiers in Poso for six more months in case of fresh Muslim- Christian clashes.

"There will be no reduction of troops until next June," said police Senior Commissioner Imam Sujarwo, who heads the "security restoration operation." The operation, agreed following a peace pact between Christian and Muslim representatives last December, had been due to expire at the end of the year.

Blast in Indonesia's restive Poso district

Radio Australia - December 2, 2002

An explosion shook a government building in the main town of Indonesia's restive Poso district on Sulawesi island, but police say no one was hurt.

Local police say the blast, believed to have been caused by a home-made bomb, slightly damaged the office of a state social welfare group in Poso town.

They say the blast shattered several windows and part of the ceiling.

There has been intermittent violence between Muslims and Christians in the Poso district for more than two years.

Between 500 and one-thousand people were killed and tens of thousands made homeless before a peace deal went into force last December.

Local & community issues

Angry residents attack company

Jakarta Post - December 4, 2002

Hundreds of Amarek village residents in Cikupa district, Tangerang, ran amok on Monday afternoon and damaged the office of PT Bintang Abadi at Jl. Raya Serang km.18.

Suryaman, the village chief, told The Jakarta Post on Tuesday that the attack was sparked by the company's unwillingness to meet residents' request for Rp 6 million to repair the drainage system around the company's factory, which borders with the residents' houses.

Besides damaging the factory's doors, they also attacked two staff members, Gufron and Kurniawan, inflicting facial injuries.

Suryaman said that residents earlier requested the company contribute Rp 6 million to pay for the repair of drains around the factory but its management claimed it was only able to donate Rp 3 million.

"Residents could not believe that such a big leather company was only able to contribute Rp 3 million and they felt neglected. They went to its office and vented their anger," he said.

According to Inding, a security officer at the company, the company was willing to contribute the amount of money requested by local residents, but it would be handed out in two phases.

"The company had promised to pay half of the amount requested but residents continued to insist on the total of Rp 6 million," he said.

Several police officers who were deployed to the factory from Tangerang Police Headquarters managed to calm down the residents and safeguarded the site to prevent another attack.

Human rights/law

War against terrorism deals a blow to rights campaign

Jakarta Post - December 3, 2002

Tiarma Siboro, Jakarta -- Observers have said the US-led war against terrorism had caused a setback in the promotion of human rights, which was demonstrated in the continuing impunity among security officers charged with atrocities in East Timor.

Rights activist Todung Mulya Lubis said on Monday that a number of countries that had initially talked tough on crime against humanity in East Timor three years ago had failed to put pressure on Indonesia to continue upholding human rights, after the war against terrorism became the common concern among the world's nations.

"The war against terrorism as the current hottest issue is prone to the violation of one's rights, including in Indonesia. The anti-terrorism campaign has paved the way for the omnipresence of intelligence bodies, which reach the regional level. "These, of course, will hurt people's freedom as their basic right," Todung told The Jakarta Post.

Meanwhile, Hikmahanto Juwono, a senior lecturer at the University of Indonesia, warned the Indonesian Military (TNI) to restrain itself from supporting foreign countries' anti-terrorism policies at the expense of human rights.

"Once they finish with the human rights issue, they [foreign countries] will just leave us on our own to face worldwide condemnation," he said. Hikmahanto was referring to the US, which had initially supported the TNI to annex the former country's province of East Timor in 1976.

Later on, the administration of former president Bill Clinton made human rights issues a top priority, bringing about various consequences, including international pressure for the establishment of the Human Rights Tribunal in Indonesia as well as the trial against security officers charged with perpetrating gross human rights violations in the former Indonesian province.

"Now we can see that upholding human rights was not the main goal of the US. Human rights was just a political toy for certain governments [in the US]," Hikmahanto said.

On Friday, the ad hoc human rights tribunal acquitted four military and police officers being tried for crimes against humanity, bringing the number of officers found not guilty in the case to nine.

So far only two civilians of East Timorese origin -- former East Timor governor Abilio Jose Osorio Soares and former militia leader Eurico Guterres -- were found guilty of human rights violations in East Timor.

So far, the US, Australia and other human rights campaigners have been apathetic in their responses to the verdict.

In the wake of the war against terrorism, the US had planned to restore the International Military Education and Training (IMET) program for TNI officers, which had been suspended following a series of rights violations blamed on the military in East Timor.

Many believe that the US insists on reviving military ties with Indonesia at any cost, including the neglect of human rights issues on the grounds that "it needs local military partners to fight terrorism".

Rights activist Daniel Panjaitan of the Legal Aid Institute (LBH) who is in charge of monitoring the human rights trial, said that the recent human rights court's verdict would set a bad precedent for other rights cases in the country, which include the Tanjung Priok bloodshed in 1984.

"The Americans apparently realize that only TNI has the ability to assist them in combating terrorism. It is also supported by a government regulation in lieu of law on antiterrorism issued in October, which is prone to rights abuse. This has reopened the way for the military to be involved in the investigation process, which originally came under the police's auspices," Daniel said.

News & issues

Bob Hassan, Tommy Soeharto get sentence reduction

Jakarta Post - December 7, 2002

Jakarta -- Timber tycoon Mohammad "Bob" Hassan and Hutomo Mandala Putra, the son of former president Soeharto, received a one month cut in their jail terms as Idul Fitri from the state.

Bob, Soeharto's golfing buddy, and Tommy are among the 32,666 convicts throughout the country who received remissions in connection with the big Muslim holiday. Both men are currently serving time in the high security Nusa Kambangan island penitentiary off the southern coast of Central Java. Minister of Justice and Human Rights Yusril Ihza Mahendra announced the granting of remissions after the Idul Fitri prayers on Friday.

Bob is currently serving a six-year jail term for corruption. He was allowed to spend Idul Fitri with his family in Jakarta.

Tommy is serving a 15-year jail term for plotting the murder of a senior judge and for corruption. He spent Idul Fitri in the penitentiary island.

Both Tommy and Bob also saw their jail terms cut in August in connection with the nation's independence day.

The two men lead a comfort if not luxury lifestyle inside their cells, which are adjacent, according to recent visitors to the penitentiary.

Environment

West Kalimantan to become a desert, researchers warn

Sydney Morning Herald - December 2 2002

Indonesia's West Kalimantan province has lost an estimated 300,000 hectares to illegal logging over the past two years and will become a desert by 2040, reports said today.

Research recently compiled by the University of Tanjungpura, in West Kalimantan, shows that the province has lost 165,631 hectares of forest per year in 2000 and 2001, said The Jakarta Post.

If that rate of deforestation continued, the province's remaining 6.3 million hectares of forest would be completely wiped out within 38 years, the research concluded. "The main problem is illegal logging by both locals and holders of forest concessions, and the forest fires during the annual dry season," said lead researcher Gusti Hardiansyah.

The high rate of unemployment in the province has provided a large and willing labour force for the illegal logging business, the researcher said.

Nearly 80 per cent of the illegally cut logs are smuggled abroad to China, Japan, Malaysia, Singapore and Taiwan, Hardiansyah said.

"About half of the hotel occupants in Ketapang [West Kalimantan] are usually timber businessmen from Malaysia, who come here to purchase illegal logs and timber," the researcher said.

According to the university's research, there are 433,250 sawmills in the province, most of which are operating without permission but with the open collusion of the Indonesian police and military forces.

Religion/Islam

Radical Muslims not welcome: Yogyakarta

Straits Times - December 5, 2002

Devi Asmarani, Yogyakarta -- The authorities in this cultural hub of Indonesia have declared war on militant Muslim groups whose presence in the city has given rise to a negative image of it being a "breeding ground for religious radicals".

Leading the charge is Yogyakarta Governor Sultan Hamengkubuwono X, who is working closely with community leaders to weed out Islamic radicals who are blamed for driving away foreign tourists.

The city, ranked as a special province, wants the world to know that radicals are not welcome here, and it is encouraging residents not to tolerate groups and individuals who preach hatred and militancy in their communities.

Sultan Hamengkubuwono said in an interview: "We are trying to invoke the people's awareness to fight radicalism, in addition to regular crimes in their neighbourhoods. Over the last 12 months, in close cooperation with the police and community leaders, we have successfully isolated this extremist element of individuals and organisations and they have moved outside the boundaries of the province."

The Sultan, a revered cultural figure who is also an administrator, said the radical groups had a tiny presence in Yogyakarta with most of their followers coming from other provinces. But their impact had been grave on the province, one of the country's top tourist destinations.

Some international media, he said, had wrongly and carelessly referred to the province as a "nest of extremism" and a "fundamentalist Islamic state".

And since the Bali blasts in October, many countries had imposed travel warnings on Indonesia, delivering a further blow to the province with the number of foreign visitors plunging drastically.

In reality, the Sultan said, most people in Yogyakarta were opposed to these groups and their teachings. "The vast majority of Indonesian Muslims are historically moderate by nature. So the introduction of radical Islamic thoughts by external influences has caused a growing concern at all levels of our community," he said.

The now disbanded Laskar Jihad, whose armed members fought in the sectarian conflicts in Maluku, was one of the radical organisations often identified with Yogyakarta. The group dissolved itself a week after the Bali blasts.

"Laskar Jihad never actually operated here, but some of their leaders rented some homes and lived here," the Sultan said. But residents in the Sleman regency, where they lived, had pressured the government to force them out of their neighbourhood.

Earlier this year, the radicals moved to Sukoharjo, 60 km north of here. "They have largely tainted our city, and the fact that they have moved to Sukoharjo has hardly changed people's perceptions of us," he said.

Yogyakarta is also the home of Majelis Mujahidin Indonesia, the conservative organisation led by detained militant cleric Abu Bakar Bashir that has been campaigning for the imposition of Islamic laws in the country.

But even the province's chapter of the Indonesian Council of Ulemas, the country's highest religious body, said the organisation was not welcome here, he said.

When Bashir, who is in police custody for alleged involvement in terror attacks, was detained in his home town in Solo in Central Java, his supporters held a demonstration in Yogyakarta. The proximity of Solo has left Yogyakarta stuck with the image that it is besieged by radicals.

The Sultan said he wanted to continue pushing radicalism out of his territory, even if there was no proof linking the groups to terror acts. This included reviving civilian security surveillance groups and telling community leaders to intensify identity checks of visitors in their neighbourhoods.

Residents were also obliged to report any suspicious activity to the authorities, he said. His administration is also fostering dialogue between religions to encourage tolerance.

Economy & investment

Sony pullout plan rocks Indonesia

Asia Times - December 7, 2002

Bill Guerin -- In the past three years Japanese electronics giant Sony has shut down 16 plants across the globe and laid off thousands of its workers. Sony said last month it would stop making audio-visual products at its Indonesian subsidiary, PT Sony Electronics Indonesia, as part of its "overall, global restructuring effort".

Indonesian Manpower Minister Jacob Nuwa Wea, however, has publicly threatened to lead a campaign for a boycott of Sony products unless it "explains" the proposed closure of its Indonesian factory.

The closure, down for next March, will result in the loss of about 1,000 jobs, though Sony will keep its local sales division, PT Sony Indonesia. The Indonesian plant, in Cibitung, Bekasi, 60 kilometers west of Jakarta, brings in some 15 billion yen (US$122 million) a year in sales revenue and has operated since March 1992.

Sony also manufactures televisions and video compact disc (VCD) players in Indonesia, mainly for export.

Sony cites a need for increased efficiency as the main reason behind the planned closure, but the catalyst may have surfaced about two years ago in a dispute at the plant when Sony was accused of "serious human and labor rights violations" in Indonesia.

In July 2000, about 1,000 Sony workers went on strike when the company announced the dismissal of 1,007 workers out of its then total workforce of 1,300. The dispute began when a new work policy was introduced with no prior consultation. Sony changed the working conditions for its workers, 80 percent of them women, ordering them to stand up rather than sit down at the production line. Sony management said the method was not detrimental to workers' health.

The Indonesian Metalworkers Union, supported by the Geneva-based International Metalworkers Federation (IMF), intervened and eventually succeeded in bringing the parties to the negotiating table. Finally, an agreement was reached on September 1, 2000, to reinstate all workers from the PT Sony Employees Union and compensate those workers who did not wish to continue working for the electronics giant.

IMF, which claims a membership of 23 million worldwide, threatened in a letter to the Sony Corp chairman in Japan that it would start a public campaign "to taint the image" of Sony for its "serious human and labor rights violations" in Indonesia.

The federation also slammed Indonesia for violating the convention guaranteeing the right to strike and providing protection against dismissal during disputes. In a letter, federation general secretary Marcello Malentacchi said the decision to dismiss the 928 striking workers "appears to be based on laws adopted while president Suharto was in power" and "in no way diminishes Indonesia's responsibility to uphold the international conventions it is a party to".

Yet two years later, Trade and Industry Minister Rini Suwandi is on record as saying Indonesia's employment laws allow workers too much freedom to hold demonstrations and protests. "Industry people agree that we have to promote labor welfare but they also want clear labor legislation so that the employees do not put excessive demands on the company," she was quoted as saying.

Sony's restructuring of plant operations may have been spurred on by tighter global competition, but the reconsolidation is likely to be aimed also at getting ready for the Southeast Asia regional trade-liberalization programs.

One aspect likely to rankle with Indonesia is the transfer of production lines to Malaysia, with whom Indonesia has been at odds over a new Malaysian immigration law that caused the expulsion of thousands of Indonesian migrant workers. Sony has said it would transfer the Indonesian production capacity to a Malaysian plant and elsewhere.

Industry experts say that since 2000 Sony has been progressively transferring its product lines to Malaysia after the loss of millions of dollars in the protracted dispute when it had to cut production down to two lines from 12. Saburo Izumi of the Japan External Trade Organization (JETRO) was quoted in the Indonesian media as saying the main reasons for the Sony closure are continuing problems with labor disputes, unfavorable government regulations and customs policies, as well as rampant smuggling. In spite of the recent imposition of a luxury tax of between 10 and 75 percent on electronic products, smuggled electronic goods dominate the Indonesian market and are sold much cheaper as they are free of such taxes.

A 30 percent hike in minimum wages in the past two years has also had a negative impact, making it difficult for manufacturers to compete with countries where labor is cheaper, such as China.

Japanese companies rank among Indonesia's biggest investors, with widespread enterprises in manufacturing and service industries as well as the infrastructure sector.

Lee Kang Hyun, chairman of the Indonesian Electronics Producers Association (GABEL), confirms the scale of the problems. He said recently that several other electronics producers had also begun to shift their production to plants abroad as they see the Indonesian electronics industry becoming unfavorable due to high luxury taxes, rampant smuggling, labor strife, and an influx of cheaper goods from China. "I don't think they want to keep their investment here where there is no benefit for producers and investors," he said.

Lee is well qualified to comment on the current situation, as he is also general manager of PT Samsung Indonesia. Lower taxes, Lee says, are the key to preventing smuggling, as this would enable local producers to cut their prices to compete with smuggled products.

The government appears to disagree on this, with the director general of taxation at the Ministry of Finance, Hadi Purnomo, claiming that the tax policy in Indonesia is more competitive than in many other countries. "I think our tax policy is competitive compared to other countries, either in terms of rate or incentive facilities for foreign investors," Hadi said.

Soy Pardede, executive director of the influential Indonesian Chamber of Commerce and Industry (Kadin), also warned that investors would prefer to invest their money in countries that have low production costs, good labor relations and sound financial systems. "The investment map is changing. There are better markets than Indonesia now, particularly China," Soy pointed out.

A day after the Sony announcement, the Jakarta Japan Club (JJC) that includes the Japan International Cooperating Agency (JICA) and JETRO met with senior government officials. There was no public comment on the deliberations other than a statement from Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti that said Indonesia's investment climate could be improved through seeking solutions together to the "technical problems" that investors often encounter.

The next day, the chairman of the Investment Coordinating Board (BKPM), Theo F Toemion, announced the establishment of a special committee or "National Investment Team" that will include all cabinet members with President Megawati Sukarnoputri as chairperson.

Theo, promising that the team would work to expedite the handling of all problems faced by foreign investors, said, "Our top priority now is to maintain the existing investors. We will hear all their complaints and provide solutions as fast as possible."

Manpower Minister Wea's confrontational stance hardly squares with this new initiative and seems likely to achieve little except exacerbating the problems for a government that desperately needs to prevent other multinational corporations from pulling out of the country. In the wake of the October 12 bomb blasts in Bali, which killed almost 200, most of them foreigners, the government is hard pressed to revive even some degree of confidence on the security issue alone.

The government has been accused of not appreciating the serious dimensions of the problem. Aburizal Bakrie, one of the country's leading businessmen, joined those urging the government to restore the investment climate in Indonesia quickly to prevent a mass exodus of foreign investors. "The government should not downplay decisions by labor-intensive companies to close their factories here and move abroad. We need them here to absorb our huge number of unemployed," he said.

Trade Minister Rini Suwandi said the government was still trying to find out why Sony's Indonesian operation was on the list of Sony subsidiaries to be axed and said she had met with Sony management to get a detailed explanation on the closure plan. However, she played down the impact of the closure on investment in Indonesia, saying: "This will not affect investment in Indonesia as Sony's operations here are not big and the closure is part of its global plan."

Vice President Hamzah Haz, however, said that if the Sony closure goes ahead, "it will be a bad advertisement for Indonesia". Haz said the pullout would hurt the economy, which has been hit hard by record unemployment figures.

"It is already hard now. We have 40 million people unemployed, so we hope that the closure won't take place. But, off course, they have made their own calculations and analysis regarding their business," Haz said in an appeal to Sony bosses.

IMF approves $365 million Indonesia loan payment

Reuters - December 5, 2002

Mark Egan, Washington -- The International Monetary Fund on Thursday approved a $365 million loan payment to Indonesia under the nation's $4.8 billion loan and urged the nation to undertake further economic reforms.

The latest payment was initially set for September, but was delayed by slow government progress on meeting some economic reform targets. Since then, bomb attacks in Bali on October 12 killed at least 184 people and raised questions about security and political stability that could affect investment. The bombing is also expected to damage the nation's vital tourism industry for some time to come.

"Indonesia has made continued progress in program implementation since the last review. Macroeconomic developments in 2002 have been favorable, with steady economic growth, moderating inflation and a strengthening balance of payments," IMF First Deputy Managing Director Anne Krueger said in a statement. "However, the economic outlook has deteriorated as a result of the recent terrorist attack in Bali. The attack poses new challenges, which must be met, on the economic front, through the continued firm implementation of the government's reform program," she added.

Krueger said that the recently approved 2003 budget struck the right balance between the need for further fiscal consolidation to reduce the public debt and providing support for the economy in the aftermath of the Bali attack. "The prudent conduct of monetary policy has contributed to a further decline in inflation, which is expected to reach single digits by the end of the year," Krueger said.

The IMF's No. 2 official added that, "A continued cautious monetary stance will be important to ensure that the program's inflation objectives are met." Krueger said it was important that the Indonesia Bank Restructuring Agency press ahead with the sale of remaining assets and to collect payment from cooperating debtors.

The powerful agency, set up in the aftermath of the economic crisis that hit in the late 1990s, is in charge of selling assets worth some 600 trillion rupiah when taken over from debtors, although many of the values have plunged. Krueger also called for a sustained effort on the government's privatization program.

She also said that faster progress in implementing legal and judicial reforms and establishing the rule of law is critical to stamp out corruption and improve the investment climate, which continues to suffer from the widespread perception of judicial corruption.

"Establishment of the Anti-Corruption Commission, ongoing reform of the commercial court and revisions to the bankruptcy law will be important milestones in this effort," she said.

Rising wages and active labour put investors off Jakarta

Straits Times - December 4, 2002

Robert Go, Jakarta -- Rising wages, coupled with a hyperactive labour force, are turning off foreign investors, some of whom are packing up and abandoning the country.

To bring back investors, Jakarta needs to better control workers and the rate of pay hikes. Indonesia has simply gotten too expensive.

The investment bleeding is getting worse. Earlier this year, Reebok and Nike announced they would cut orders from Indonesian producers, and lay off between 5,000 and 10,000 workers.

Last week, Sony became the latest major investor to jump ship. It is dismissing 1,000 workers from its West Java factory and will make television and audio sets in Malaysia and elsewhere by next March.

Why is this happening? Some foreign executives say they cannot work with Indonesia's pervasive corruption and weak legal system. Others latched onto security problems to explain the growing allergy investors have to the country.

These are valid observations. To say that Indonesia is corrupt is to understate the problem.

Something as simple as getting parking space in a shopping mall often requires greasing a few palms. Local courts are also notorious for issuing dodgy judgments. And yes, the men in uniforms don't inspire the full confidence of foreigners looking to put down long-term bets, especially in resource-rich outer provinces.

But most foreigners don't talk openly of what is probably the most important reason why they don't like Indonesia anymore: Rising wages and politically-empowered workers.

Admitting that higher payouts mean less profitability and that active unions give executives nightmares are not exactly noble pursuits.

So investors point fingers at corruption and poor security, and argue they are merely maximising efficiency, as they look for greener pastures.

Several alternatives come to mind. China and Vietnam have lower minimum-wage requirements than Indonesia's US$60 per month. Workers in these countries also get muzzled quickly if they act up.

Bangladesh, where the poverty is even deeper and labourers come cheaper -- as low as US$20 per month -- also stands to gain from Indonesia's woes.

Ironically, democratisation has put Jakarta between a rock and a hard place. And the realisation is beginning to dawn on officials that maybe, the way to bring investors back requires an almost impossible act: Rolling back reforms, slashing wages and cracking down on workers.

Indonesia's shadow economy

Straits Times - December 2, 2002

Robert Go, Jakarta -- After the private bank that Ms Sri Astuti worked for folded in 1998, she sought a clerical job at other offices. When no suitable offer came after three months, the mother of two used most of her savings to open a warung, or foodstall, near her home.

Instead of counting bank notes and serving customers queuing up for their cash, she now refers to family recipes and dishes out nasi campur to hungry pedestrians. She no longer has a regular salary, health insurance, transport or education allowances.

Her family's welfare depends on factors as diverse as the weather -- more people take shelter, and eat or drink at her stall when it rains -- or the price of rice.

"I work longer hours. My income is up and down. But at least I have a sumber kehidupan -- a source of livelihood. That's better than many others," she said.

She lives within the underground economy, which according to analysts, now provides shelter for between 65 per cent and 70 per cent of Indonesia's 100 million workers. That estimate is a hefty rise from pre-crisis figures of around 55 per cent in 1996, when the country enjoyed 8 per cent annual economic growth.

Those in the underground share some characteristics: they pay no taxes, follow few government regulations, and are not registered with government offices. Many have no distinct or long-term places of business.

The underground economy's "anything-goes" nature makes it a difficult subject matter to pin down precisely. But estimates are that its value could reach as much as US$150 billion, the equivalent of Indonesia's formal GDP.

Labour economist Asep Suryahadi from the Smeru Research Institute said: "The numbers are difficult to gauge. But it is clear that as Indonesia fails to attract investments and generate jobs, more people are forced to go underground."

Notwithstanding its huge size, the underground economy is also very fluid. People shift jobs, depending on availability, profitability and need. Informal-sector workers also adjust to shifting markets by moving locations or altering working hours to where and when their services are more in demand.

Mr Wicaksono Sarosa of the Urban and Regional Development Institute described the underground economy as Indonesia's "most important social safety net".

"The sector gives incomes to people who would otherwise be unemployed. There is no barrier. Anyone willing to work can get jobs," he said. "Without such a system, Indonesia's unemployment crisis would have translated into much more serious social problems, including crime, a long time ago."

The economist was referring to about eight million people, who sit around twiddling their thumbs all day, and an additional 30 million who work part-time jobs.

Each year, experts say, that population grows by two to three million as newcomers hit the job market but cannot find formal- sector work. With Indonesia showing only 3 to 4 per cent growth in recent years, these young people have no choice but to enter the informal sector.

Mr Raden Pardede, economist for state-owned securities firm Danareksa, said: "The entire country can fall asleep and do nothing, and the economy will grow by 3 per cent. This growth adds no new jobs to the market."

That is why the underground economy, with its ability to absorb the unemployed and give them sources of livelihood, is very important to Indonesia right now. The system, however, is not without limits and dilemmas.

Mr Didik Rachbini of Institute for Development of Economics and Finance listed low productivity as a key characteristic and problem. "People are rarely organised. Incomes are low as they are directly related to the efforts and resources put into the process. That's not the way to improve welfare."

Others noted that difficulty in attaining credit -- to be used to expand businesses -- from financial institutions is another big problem.

People involved in the informal sector are also susceptible to ups and downs in the formal economy, as well as emergencies and natural disasters like floods and fires. During last year's flooding in Jakarta, Ms Astuti had to close her kiosk for over a week.

The biggest worry, however, is the fact that the underground economy keeps on growing, at the expense of formal economic activities.

The government only collects tax revenues from the formal sector, which right now is shrinking. Analysts declined to estimate how much this lost income is worth.

Mr Didik, who described the underground sector as "the thing that has kept Indonesia together so far", warned that its size shows "dangerous abnormalities at work within the economy".

So what has the government done? Social activists like Urban Poor Consortium's Wardah Hafidz said government policies continue to neglect, if not harm, the neediest.

An example is Jakarta Governor Sutiyoso's plan last year to get rid of shantytown areas that have cropped up. He ordered security forces to evict squatters and then bulldoze the land. Another programme involved clearing the streets of vendors and rickshaw- like becaks.

Ms Wardah said: "These are precisely the people who should be receiving help. But instead, the government takes away their homes and means of making a living."

Bali's broken economy: As fragile as an eggshell

New York Times - December 2, 2002

Jane Perlez, Denpasar -- His fingers clasp a long brush and with the finest of strokes, Nyoman Kantor paints the figures of a Balinese myth onto eggshell. Luscious reds, greens and yellows sparkle on the egg, a memento popular with tourists who come to Mr. Kantor's outdoor studio and salesroom. Roughly speaking, these $10 eggs are Bali's answer to Fabergi's jeweled versions of a century ago.

But these days, business is about as slow as it has ever been. Bali's tourism collapsed after the terrorist attack on a disco in October, and the return of the foreign visitors is only slowly starting again.

In the weeks after the attack, Mr. Kantor, 48, said he did not sell any of his goose eggs. They take two days to paint, and he makes about a $5 profit on each one. "I haven't been to the hotels to sell because there are so few customers," he said.

About half of Bali's economy is based on tourism, according to the World Bank, a heavy reliance for a society accustomed to some of the highest standards of living in Indonesia. In the last decade, rice fields have been eaten up by hotel developments in the southern half of the island, and increasing numbers of Balinese have moved from agricultural livelihoods to work in tourism.

Hoteliers say each room generates 25 jobs: receptionists, cooks, gardeners, money-changers, guides, dancers for nighttime entertainment, even lifeguards for protection at the beach.

Indications of an early recovery are not encouraging, economists say. Many upmarket hotels are reporting occupancy rates of less than 20 percent. Some low-rent hotels have closed temporarily. Taxi drivers complain they have few passengers. Some stores are offering sizable discounts for their carved wood furniture and trendy clothes.

The World Bank says about 1.7 million people work in Bali, and according to the direst estimates, as many as half could become unemployed if the tourism continues to slump.

But the worst may not happen. Much depends on how fast the investigation into the terrorist attack proceeds, economists say. If the inquiry proceeds quickly and suspects continue to be arrested, foreign governments will consider removing the travel warnings that are discouraging tourists, Western officials predict.

Japan, Singapore and other Asian countries do not have travel warnings on Indonesia, and their citizens are traveling again to Bali. The United States, Australia and Britain have not significantly modified the travel warnings they issued after the terrorist attack. Security has been visibly improved at the airport at Denpasar and the major hotels now have policemen patrolling their grounds.

While Bali waits for the foreigners to return, the Bali Tourism Board has begun a campaign to stimulate the domestic market. The idea was to fill vacant hotel rooms with Indonesians, who often take time off after Ramadan. The response has been good, said the minister of trade, Rini Mariani Soewandi.

"We have to get Garuda to restore the flights they have cut," she said, referring to the national airline. One of the biggest problems facing the Balinese is how to maintain their standard of living.

"All the social indicators in Bali are above average," said K. Sarwar Lateef, the senior adviser to the World Bank in Indonesia. "There are strong traditions of schooling." The World Bank is working on a plan to ensure that parents who become unemployed can still pay their children's school fees, he said.

Another challenge is how to help the Balinese who have loans to pay back. Mr. Kantor's 23-year-old son, I Made Muliana, who is also an egg painter, recently bought a motorbike. "The bike is good for going to the hotels to sell," said Mr. Muliana. He owes the bank $30 a month for the next three years, he said. How was he going to pay the installments? Mr. Muliana shrugged.

At the Oberoi Hotel, a five-star resort on the ocean, many employees have taken loans, said the general manager, Kamal K. Kaul. About 75 percent of staff salaries came from service charges placed on customers' bills, he said.

"For two decades staff incomes have been going up," Mr. Kaul said. "This attack is something they never dreamed would happen. These realities of modern life the Balinese will have to learn to cope with." Like most people involved with Bali, Mr. Kaul was relatively upbeat. On the commercial side, Christmas bookings were holding, he said.

The Hindu religious leaders have appealed to the Balinese to stay calm. "For the Balinese, life is all about seeking balance," Mr. Kaul said. "Many are reverting to prayer." In a signal of long- term confidence, Starbucks still plans to open in Bali, said Anthony Cottan, the country general manager.

A Starbucks store was planned not far from the Sari Club, the target of the attack that killed more than 180 people, Mr. Cottan said. "Our plan was to open in the first quarter next year. We feel that there might be only a six-month delay," he said. "We're still very enthusiastic."