Democratic struggle

Police release 20 protesters

Jakarta Post - January 24, 2003

Jakarta -- Jakarta Police released on Friday 20 protesters who staged a rally in front of the residence of President Megawati Soekarnoputri on Wednesday, El Shinta radio station reported.

The protesters, mostly studets, were arrested late on Thursday for allegedly violating "law of freedom of expression before public", said Jakarta Police spokesman Sr. Comr. Prasetyo.

They ignored the police's order to stop the demonstration because Law No. 9/1998 on freedom of speech before public prohibited anybody to stage a rally at night or in a housing complex, he said.

Police has taken strict measures against anti-government demonstrations since Megawati complained that she couldn't accept the demonstrators' acts, which often burnt her effigies or damaged her pictures.

Protests call for ousting of Megawati

Green Left Weekly - January 22, 2003

Max Lane, Jakarta -- On the evening of January 15, senior Indonesian cabinet ministers announced the postponement of a proposed 22% increase in telephone charges and the postponement and review of proposed increases to electricity and petrol prices. The announcement followed two weeks of street protests and other expressions of opposition to the prices rises which had been announced on new year's day.

The plan to effect substantial price rises on telephone calls, electricity and petrol came at the end of a year in which President Megawati Sukarnoputri's government had implemented or presided over a host of unpopular decisions. These include, among many others, the continuing sackings of manufacturing workers and the deterioration in the market prices and distribution of agricultural commodities such as sugar and tobacco (imperiling the livelihoods of sugar and tobacco farmers and labourers) as well as price instability for rice.

There was also the outrageous case of presidential silence on the deportation from Malaysia of more than 200,000 Indonesian migrant workers and the absence of provision of basic amenities for these workers as they flooded back into overcrowded border towns.

Almost all opinion polls now show around 80% of respondents expressing some form of rejection of the government and the major political parties.

Protests target Megawati

While the protests and demonstrations of the last two weeks have not been large -- peaking at about 15,000 on one or two occasions -- they have manifested a number of features which mark the beginning of a qualitative change in the political situation.

First, the protests have taken place in almost all major cities from Medan in north Sumatra to Biak in West Papua.

Second, they have involved the broadest political support of any wave of demonstrations since 1997-98. Newspaper and TV reports show the presence in the protest actions of members of almost all political groups. However, the main Islamic fundamentalist groups, such as the Justice Party (PK), the Islamic Students Action Front (KAMMI), Hizbaz Tahir, Muslim Women in Solidarity with the Poor, provided the majority of the protesters in a majority of the major cities.

People organised by or associated with the revolutionary left People's Democratic Party (PRD), sometimes organised through coalitions called the Poor People's Front (FPRM), were the second consistent force mobilised in the recent protest actions. Also present were the full range of student groups, including coalitions of a new generation of campus activists.

On many occasions, several different trade unions and urban poor associations participated in the protests. Employer associations, especially of middle-sized companies, backed some demonstrations. Organisations of professionals, NGOs and former student activists also organised protest actions, or issued statements supporting the protests.

In East Java and the city of Palembang, at least, an important development has been the appearance of sizable contingents from the National Bung Karno Party (PNBK), which was formed in 2002 as a split from Megawati's Indonesian Democratic Party of Struggle (PDIP).

The PNBK has tried to gather together discontented rank-and-file members of the PDIP, especially those members outraged by Megawati's refusal to take any action against those involved in the July 1996 attack on the PDI offices.

Even the opportunist parties of the elit politik (political elite) in the parliament "joined" the movement, calling on the government to "listen to the aspirations" of the people. These parties have, however, confined their specific suggestions to deferring the price rises. This was the concession made by the government on January 15.

A third feature of the demonstrations was that a majority of the protests have specifically targeted the Megawati government. Many of the protest groups adopted the PRD tactic of burning or disfiguring pictures of Megawati and her vice-president, Hamzah Haz. Despite complaints by Megawati that protesters were disfiguring "symbols of the nation" and some initial detentions of protesters, the practice has now spread far and wide. The police just looked on smiling.

There have been several clashes with the police as protesters have rocked the gates of the national parliament or occupied regional parliament buildings, other government buildings or regional radio or TV stations. In the central Sulawesi city of Palu, anti-government demonstrators burned down the local PDIP office after a small group of PDIP militia physically attacked some of the protesters.

Most of the protests have demanded the overthrow, or at least the resignation, of the Megawati-Hamzah Haz government. There have been equally as many calls for the whole parliament to resign along with the government.

Up until early January, the slogan "overthrow the Megawati-Hamzah Haz government" had been espoused only by the PRD. The sense of rejection of the government is now so obviously widespread that Megawati's rivals within the elite, such as People's Consultative Assembly chairperson Amien Rais, has even offered public support for a regime change involving extra-parliamentary action.

At a press conference on January 12, attended by employer and union leaders, radical labour leader and PRD member Dita Sari challenged Rais to indicate his attitude toward the extra- parliamentary movement demanding the ousting of the government. In front of a packed press conference, Rais manoeuvred to appear on side with the street movement.

It is also clear that the Islamic student groups with a fundamentalist or quasi-fundamentalist orientation have also opted to openly call for the overthrow of the government and the formation of a new government. These organisations have not only protested against the price rises, but also carried placards calling for the defeat of imperialism and the overthrow of capitalism. The same placards call for the implementation of Islamic law as the solution to the country's social and economic crisis.

Presidium

As the call for Megawati's resignation, or for her overthrow, has spread, so has discussion of what forces could replace the current government. There has been talk of the need for the formation of a "presidium" that can take over the government through extra-parliamentary mass action. The idea of a "presidium" first arose in 1998 in student circles.

At that time it was envisaged to comprise figures such as Megawati, Amien Rais, Abdurahman Wahid and other elite opposition figures to General Suharto's regime. Today, however, most of those raising the "presidium" idea are looking to opposition groups outside the leaders of the parliamentary parties to form such an alternative government.

On January 10, the chairperson of the PNBK, Eros Jarot, hosted a meeting of opposition groups and figures from outside the elit politik to discuss a strategy for replacing the Megawati government. Significant NGO figures, student activists, trade unionists and representatives of radical political groups attended or were invited to attend.

A manifesto for a "presidium" or new national opposition is currently being drafted and is expected to include a platform opposing subservience to the International Monetary Fund (which currently vets all major government budgetary decisions) and also advocating militant action against the remnants of Suharto's New Order regime, including the still untouched business conglomerates of the Suharto family and its cronies.

The broad composition of the protests has also highlighted the reality that a wide-ranging and substantial spectrum of organisations, action groups and individuals stand outside the influence of the elit politik and their parliamentary parties and may be willing to support such an anti-imperialist, democratic manifesto.

The call for the overthrow or, at least, the resignation of the Megawati-Hamzah Haz government has achieved a legitimate place on the political agenda. The main obstacle to the current wave of relatively small protests growing into a powerful mass movement able to challenge for state power is the absence of a credible, mass-based alternative pole of leadership with clear pro-worker, pro-peasant solutions to Indonesia's deepening economic crisis.

Whatever the specific outcome of the January 10 initiative, the idea of an alternative leadership based primarily on forces standing outside the existing pro-capitalist political elite is also now firmly on the political agenda.

With these developments, it is now increasingly uncertain whether the Megawati government will last until the 2004 elections or, if it does, whether Megawati will be in a position to stand again for the presidency. The embryo of an authoritative anti- imperialist, pro-democracy coalition is already taking shape in Indonesia. Once it is formed, it is likely that Indonesia will head directly into a state of mass rebellion against the Megawati government and the rest of the elit politik, whether channelled through elections or taking extra-parliamentary, "people's power" form.

Students, workers to continue protests

Jakarta Post - January 21, 2003

Students, workers and employers vowed on Monday to continue their street rallies to force the government to make radical changes to economic policies aimed at bailing the country out of its multidimensional crisis.

"We will not stop demonstrating until the economic policy is totally revoked, because there is no guarantee that after the street rallies stop the government will not hike the utility prices again," said Rico Marbun, chairman of the University of Indonesia's Student Executive Council.

"Rolling back fuel prices and electricity and telephone rates will not solve the root cause of our economic problems, which is corruption," he said Gregorius Budi Wardoyo, chief of the education department for the National Front for Indonesian Workers' Struggle, said workers would continue to demonstrate because the cut in utility rates was inadequate to improve the economic situation.

"We are still in a crisis. Decreasing utility rates will not bring us out of the crisis. The problem is in the IMF-dictated economic reform policy," he said.

The workers, therefore, will continue to urge the government to revoke its IMF-dictated economic policy and adopt a new package, he said.

However, Djimanto, deputy chairman of the Indonesian Employers Association, said the government's decision to lower utility rates might avert the risk of massive layoffs.

Yet, employers will maintain pressure on the government to cut the high-cost economy caused by corruption, as this is the only way to survive competition in the region, he said.

"We have three quarters to eliminate the high costs, otherwise businesses will collapse and massive unemployment will be inevitable," he warned.

Fuel price rises face scrapheap as protesters fight on

Sydney Morning Herald - January 21, 2003

Mathew Moore, Jakarta -- Despite certain criticism from its international financial backers, Indonesia's Government is set to abandon a series of fuel price rises introduced on January 1 as small but persistent protests around the country enter their third week.

Indonesia's cabinet was meeting late yesterday to decide how to undo its decision to eliminate subsidies which led to price increases of between 2 and 22 per cent at the start of the year.

The move to restore fuel subsidies comes just days after the Government scrapped 15 per cent rises in telephone charges, which were intended to help finance an expansion of the phone system, which reaches only 3 per cent of households.

Electricity price rises of 6 per cent a quarter remain in place for now, although they also look vulnerable as demonstrators are demanding they be scrapped.

The backdowns have alarmed Western diplomats and are certain to be discussed at a meeting today in Bali in which donor countries and the International Monetary Fund are scheduled to decide how much money they will lend Indonesia over the next year to help meet its budget deficit.

The meeting, chaired by the World Bank, will be concerned that scrapping the price rises will undermine the integrity of the Indonesian budget, which is based on revenue the price increases were supposed to raise. The IMF has been pressuring the Indonesian Government to scrap the subsidies to help balance its budget.

When Indonesia's parliament approved the decision to wind back subsidies last year, it ensured subsidies were retained for kerosene, used by most Indonesians for cooking, as well as electricity for households that only use only tiny amounts of power.

Despite these attempts to target the price rises at the country's wealthy, demonstrators have included farmers, workers and other poorer Indonesians who should not be hurt by the increases.

But many poorer Indonesians say they, too, have been affected by the rises because there is no ready access to subsidised kerosene. The only kerosene they can get now costs up to 50 per cent more than it did three weeks ago.

The protesters have vowed to keep rallying until the Government agrees to scrap the rises.

Activists pledge more price-hike protests

Straits Times - January 20, 2003

Jakarta -- Indonesian activists vowed yesterday to hold more protests against recent price rises despite government promises to delay some increases and review others.

The protests, which erupted this month and have sometimes been violent, may worry donors and investors and affect fund flows to the world's fourth most populous nation.

However, they seem unlikely so far to threaten President Megawati Sukarnoputri's hold on office.

"We will have a protest on Monday in front of the presidential palace," Ms Dita Indah Sari, head of the Indonesian National Labour Struggle Front, said.

The protests started at the beginning of this month when the government announced increases in telephone, fuel and power prices aimed at reducing state subsidies in line with economic reforms agreed with the International Monetary Fund.

Promising more protest activity also is Mr Richo Marbun, head of the BEM (Student Executive Body) at the University of Indonesia, who said the demonstrations would get bigger. "In the days ahead, the movement will escalate," he said.

A week ago, the President defended the policies as necessary to wean Indonesia from foreign debt, saying: "I chose an unpopular but constructive policy for the long run rather than opting for a populist step that may trouble us further."

But a few days later, as thousands continued protests in cities around the country, the government said it was delaying phone charge increases and would re-examine the other hikes. However, the moves cut little ice with the protest leaders, whose demands have gone beyond unwinding the price hikes and now centre on Ms Megawati's leadership and economic policy in general.

Mr Marbun said: "The government delayed the phone charges hike indefinitely, but that is not the solution that we want ... the objection from the students is no longer to the policy but more to Megawati now."

While some of the protests have involved tens of thousands in more than a dozen cities, the numbers have often fallen short of forecasts and threats of civil disobedience have failed to materialise.

In 1998, price increases triggered widespread protests, a factor in unrest leading to the downfall of then president Suharto. But many analysts doubt anything similar will happen this time.

Ms Dita said: "Even if the government revises its decision on fuel, it still has not resolved other economic problems. What we want ... is not only the annulment of the fuel price rise, but the entire economic reform package, such as asset sales, foreign debts, trade liberalisation, etc."

She was referring to policies some foreign donors and investors say Indonesia needs but which many in the country oppose for their real and feared impact on inflation, unemployment and existing social structures.

Labour issues

Workers moonlight as prostitutes

Jakarta Post - January 20, 2003

Multa Fidrus, The Jakarta Post, Tangerang As the sun sets, some factory workers rush to their boarding houses to refresh themselves. They take off their uniforms and replace them with miniskirts. Heavy makeup is smeared on their faces.

Those young women are not going to a party. They work at nightspots in the Lippo Pinangsia office complex in Karawaci.

Despite mayor M. Thamrin's ban on the presence of nightspots in Tangerang municipality, the office complex has turned into a night entertainment center with karaoke lounges, massage and sauna parlors, discotheques and sex.

The women claim they need the income because their salary at the factory is far from enough.

Most workers in Tangerang receive the minimum wage of less than Rp 600,000. This year, they expect to receive a 7 percent increase, like their colleagues in Jakarta.

Dozens of women, aged between 15 and 25 years, work at nightspots to entertain and accompany the guests. Most of them have average looks. But their makeup and sexy dresses at least help hide their shortcomings under the dim lights. The nightspot management call them "guides".

At the karaoke lounges, the women prepare the songs ordered by the customers, pouring drinks into their glass, accompanying them and dancing with them. They may also extend the service outside the building if required.

Basically, the guides are obliged to make the guests feel good. They must be able to act as good partners for the guests, and chat with them so that the guests stay longer, spend more money and are willing to come back.

Many of the guides are available for extra services, including sex, outside the nightspots.

One of them, Chyntia, who works at a garment factory during the day told The Jakarta Post that a "night date" was an effective way to make money within a short time without having to work hard.

"If I am willing to accompany a guest for a night, I can bring home at least Rp 300,000," she said. On a Saturday night, she said she could even earn up to Rp 1 million since most of her customers were foreigners who worked and lived in Tangerang.

There are more than 400 foreigners who work in Tangerang, one third of them are from South Korea. The others are mostly from Taiwan, Japan and China.

Some of the guides said that sometimes they could attract the foreign "bosses" or even became their mistress.

One of them is Tuti, who works at a textile factory. She said that her meeting with a Korean called "Mr. Kim" at the karaoke lounge had changed her life. The man provided her with a small but nice house in Lippo Karawaci housing estate, and a monthly allowance which was transferred to her bank account.

"But, I certainly have to pay for it with my body. I have to be ready to serve him anytime he wants me," she told the Post. She added that despite her frequent remorse, she admitted that her life was more enjoyable now than before she met him.

"My salary is only Rp 500,000 per month, it is far from enough to fulfill my daily needs ... I could not afford to buy proper food before," she said. But such a relationship might end at any time.

Like in the case of Ayu, who the Post met at a discotheque in Taman Cibodas subdistrict.

She said she used to work in a garment factory, but the wage was low and worse, there was some reduction in the salary. In November 2001, when she came to her boss' office to protest, the man gave her a glass of water. After she drank it, she felt dizzy and passed out. She said she had been raped. But she said she could not do anything and left after the boss gave her Rp 2 million and told her not to tell anyone about what had happened between them.

After the incident, her boss often asked her to go out together but they ended up in a hotel room. Three months later, her boss promoted her to supervisor and they became closer to each other.

"My life changed but it was not long. My boss dated my fellow worker who was prettier than me. I was angry and when I protested, he dismissed me," she said.

She then got a job as a blue collar worker at a food factory. But at night, she works at a discotheque as a "public relations officer" whose job is accompanying the guest to drink and get relaxed. But she is also available for sex.

She said she did it because her monthly salary at the food factory was not sufficient. "And also because I am no longer clean".

Aceh

Weapon-free zone to open in Aceh amid violations

Reuters - January 26, 2003

Jakarta -- The first weapon-free zone will open in Indonesia's Aceh province this week to help cement a peace deal that both sides have violated less than two months after signing it, mediators said on Sunday.

The peace zones would help keep the truce between the government and rebels of the Free Aceh Movement (GAM) intact and were a step toward eventual demilitarisation, they said.

"The peace zones are meant to be weapon-free areas ... neither GAM nor the military are allowed to carry weapons there," said Steve Daly, a spokesman for the Henry Dunant Centre that brokered the agreement signed on December 9.

The first peace zone will lie south of the provincial capital, Banda Aceh, some 1,700 km northwest of Jakarta. Daly said the aim was to establish a total of eight peace zones in the next two weeks.

A joint monitoring committee said in a statement on Friday that GAM committed two "very serious" violations of the pact in mid- January, in which one Indonesian soldier was killed and two were injured.

The statement said the military had commited a "minor" violation in mid-January in which a GAM member was intimidated.

"This is the first time that either GAM or Indonesia has ever publicly admitted any wrongdoing by any of their people," Daly told Reuters. "They recognise that they need to discipline their people so at this point we will see what happens," he added.

Aceh is one of several flashpoints where separatist, communal or religious violence threatens to undermine the government's efforts to maintain stability in the world's fourth most populous country and bring investors back.

Among other complaints, the separatists say Jakarta has siphoned off too large a share of the income from Aceh's energy and other resources. The government has moved toward satisfying such concerns but says it would never allow full independence for the province in the northern tip of Sumatra island.

In the two years leading up to the pact, an estimated 4,000 people -- civilians, government troops and rebels, were killed in the conflict.

Indonesia, GAM rapped for truce violations

Agence France Presse - January 25, 2003

A committee monitoring a ceasefire in Aceh province has for the first time criticised both the Free Aceh Movement (GAM) separatist group and the Indonesian government for truce violations.

The Joint Security Committee (JSC) of the government, GAM and foreign representatives monitoring the December 9 ceasefire delivered the rebuke after the two sides publicly admitted wrongdoing.

Under the agreement to end 26 years of fighting in Aceh, paramilitary police are forbidden from taking offensive action against GAM members who abide by the ceasefire.

The JSC is in charge of investigating violations and at least 32 alleged violations have already been probed.

"Both sides came together to agree that the conduct by members of their respective sides in the field is unacceptable and violates the peace agreement," said JSC senior envoy General Tanongsuk Tuvinun of Thailand.

"This not only shows faith in the process, it's also a huge symbolic step toward making Aceh a safe and peaceful place to live," Tuvinun said in a statement released Friday night.

One reprimand was for a January 14 attack by GAM members against eight Indonesian soldiers travelling on motorcycles in the Lokop area of East Aceh which killed one soldier and injured another.

Indonesia was rebuked for intimidating a member of the GAM peace monitoring team and a driver while they were witnessing a confrontation in Bireuen between demonstrators and police on January 14.

Another criticism of GAM was for a January 16 incident in Lamno, West Aceh, in which a soldier was shot in the shoulder.

The JSC verification committee was also investigating an alleged GAM attack on soldiers on December 22 in South Aceh.

"It is now up to each party to discipline the violators," Tuvinun said. "This is about recognizing the problems, taking steps to fix them and making the process accountable to the people of Aceh." A crowd of civilians and JSC representatives and some 5,000 civilians packed a football stadium in the town of Indrapuri in Aceh Besar district meanwhile to witness the formal introduction of a "peace zone" by the JSC.

A banner reading "Welcome to the peace zone" and others urging the public to live in peace were seen on the streets Saturday in Indrapuri, 24 kilometers east of Banda Aceh.

Tuvinun said the "peace zone" -- which bars anyone from carrying weapons except regular police -- marked "the beginning of concrete steps toward achieving peace for all Acehnese." "Today the JSC proudly chooses Indrapuri as our first peace zone of Aceh and I intend to witness the real peace happening here.

"From this day on, the world will be watching every move we make in the peace zone of Indrapuri and it is up to all of us to prove that we have started to embrace peace as a solution to a long- standing conflict in this part of the world," the Thai general told the crowd.

The peace agreement aims to end a 26-year conflict in Aceh that has claimed an estimated 10,000 lives. An average 87 civilians were killed in Aceh every month in most of 2002.

New year brings a novel gift to Aceh

Washington Post - January 22, 2003

Alan Sipress, Banda Aceh -- On New Year's Eve, city streets once emptied by fear swelled with revelers, despite persistent drizzle. Soldiers shed their uniforms, put aside their guns and waded into a crowd that included many people who sympathize with local separatist rebels, residents recalled, while cars, motorbikes and motorized rickshaws choked the streets surrounding the magnificent black-domed mosque in this provincial capital.

"This was the first time in many, many years for us to go out on New Year's Eve. Everyone used to be afraid," recounted one shopkeeper, Murizal Hanafiah, 29, shaking his head in delighted disbelief. "It was a big shock to us. It was amazing." Then, at midnight, something else unexpected happened: There was no sound of gunfire. Unlike in the past, when rebels and government soldiers marked the turning of the year by emptying their rifles into the sky, the night was filled only with the sound of honking car horns and the tooting of countless noisemakers.

A month after President Megawati Sukarnoputri's government signed a peace deal with rebels battling for their own homeland in Aceh (pronounced AH-chay), Indonesia's westernmost province has experienced a dramatic reduction in violence and a newfound hope that one of the longest-running insurgencies in Asia may be coming to an end.

Previous initiatives to settle this 26-year-old conflict have failed. And this new effort, which for the first time involves international monitors to police the cease-fire, has not been able to completely stanch the bloodletting. Since the December 9 "cessation of hostilities," 22 people have been killed in clashes, including 13 civilians, according to the Geneva-based Henry Dunant Center, which mediated the agreement. But that compares with an average of 87 civilian deaths per month during the nine months leading up to the accord and a total of 4,000 deaths of civilians and combatants in the past two years, the center reported.

Both government forces and the Free Aceh Movement, known by its Indonesian language initials, GAM, have ordered their fighters to halt offensive actions, said David Gorman, the Henry Dunant Center's chief representative in Aceh. "There's such a difference after the signing," he said. "I'm not saying the sides love each other but they did it in a very functional way, immediately." The peace process faces a crucial test in early February, when rebel fighters are required to begin turning over their weapons to cantonment areas subject to international inspection and Indonesian forces must begin a partial pullback. Even more challenging will be upcoming discussions over the political future of Aceh, which the Jakarta government insists must remain a part of Indonesia despite the rebels' continuing demand for independence.

The road connecting Banda Aceh with Lhokseumawe, an industrial city about 170 miles to the east, provides ample reminders about the hazard of sliding back into war. Winding through lush banana groves and glistening green rice paddies, the two-lane road passes the brick and stone ruins of a police headquarters bombed by rebels and the gutted remains of a row of shops that local villagers say was burned down by police last year in retaliation for the killing of one of their officers. Soldiers remain ensconced behind sandbags at the gates to their posts, and abandoned wood-plank homes have yet to be reclaimed by villagers who fled the fighting.

But there are also notable signs of change. Many of the military checkpoints have been removed from the road, and private cars, once almost unknown on the road, are now a common sight. "In the past, you'd think a thousand times before you'd travel from the villages to the city," said human rights activist Saifuddin Bantasyam. "You could be killed at any minute." Villagers long came to the metal girder bridge at Seunapat looking for bodies that they said were regularly dumped in the ravine below. Now, the bridge is frequented only by monkeys. Indonesian and international human rights organizations have accused both sides of committing numerous atrocities, but have blamed the bulk of the violations on the Indonesian forces.

Since the December accord, farmers such as Masmi, 38, have returned to their fields. Wearing a straw hat with a tattered brim, barefoot and carrying a machete, Masmi paused beside his rice paddy and admitted he was still afraid. Then, he yanked his ratty shirt over his head and displayed about a dozen scars on his back. He said Indonesian police had grabbed him after a suspected rebel bombing two years ago and beat him hard with their fists and rifle butts, looking for information about rebels.

"I'm still traumatized. I feel nervous whenever I see soldiers pass by," he said. "Now, I feel less terrified than before." In the markets of Banda Aceh, peace is already paying economic dividends. Eggs, vegetables and other commodities were once often in short supply because trucks could not reach the capital from the villages or Medan, the main port in Sumatra, according to traders. Now, merchants hawk huge heaps of onions, lettuce and two-foot-high mountains of red chili peppers.

The change is most noticeable at night. Shops that were once shuttered not long after sunset now remain open. And deep into the night, peddlers in Banda Aceh and Lhokseumawe do a brisk business in durian fruit, the spiky-skinned, foul-smelling but delectable specialty of Southeast Asia.

In Lhokseumawe, Yanti, 25, remembered when the threat of sudden clashes made it impossible to play in the city's main public park, a sandy stretch along one of the main boulevards. She was 11 then.

On a recent Saturday evening, she accompanied her 5-year-old nephew Alforkan to that same park, as she does most days now, and marveled at the packs of children gathered around the brightly colored swings and slides, in front of the peddlers selling soda, ice cream and bags of popcorn. "We never thought we'd see it crowded like this," she said.

Despite this widespread relief, the animosity between the government forces and rebels has shown only a few signs of abating.

Sofyan Dawood, a rebel general in northern Aceh, accused the Indonesian military and police of exploiting the cease-fire to establish more than 30 new posts since December 9. "Hopefully, in the next one to two months, we can see people become more satisfied with the real implementation of the agreement," Dawood said in an interview in a safe house on the edge of the jungle.

In the past, reporters and other guests often had to venture at least five miles along dirt roads deep into the jungle to visit Dawood. Now, he is willing to speak within a mile of the main North Aceh road. Though Dawood has not lost his sour demeanor and still keeps a handgun tucked into the waist of his jeans, he was relaxed as he spoke on the veranda of a once-gracious home that was gutted by fire.

"From the GAM side, we are committed not to attack them anymore," he said, adding that rebel commanders had called a meeting in the jungle with several thousand fighters earlier this month to underline this message.

But Maj. Gen. M. Djali Yusuf, the Indonesian military commander in Aceh, and other officers in the security forces, allege continuing violations by the rebels, including shootings, kidnappings, extortion and the convening of political meetings to press their campaign for independence.

"I've asked my soldiers not to be provoked so that the people whose lives have changed 180 degrees won't be disturbed," Yusuf said in an interview. He paused, and continued: "If they want to solve this softly, we'll do it softly. If they challenge us to do it hard, we'll do it hard."

With the guns largely stilled, the most vexing problem for many Acenese is the continuing practice of extortion. The number of complaints received by the Henry Dunant Center is up sharply and Maj. Gen. Tanongsuk Tuvinun, the Thai officer who heads the international monitoring team, said both sides are guilty.

Senior Indonesian military and police officials say the rebels have taken advantage of the cease-fire to step up extortion of local shop owners, teachers and villagers. The guerrillas regularly demand the equivalent of 50 cents a month from each household and a 10 percent kickback on contracts to build schools and roads, according to a researcher familiar with their practices.

Meanwhile, the military and police continue to shake down trucks for what the officers call "coffee money." According to a World Bank report released last month, trucks traveling the 375-mile road between Medan and Banda Aceh had to pass through 60 official checkpoints and many more unofficial ones, paying $5-$200 at each, depending on the cargo's value.

While many checkpoints are gone, the extortion continues. On a recent morning, trucks were stopped at an average of more than one a minute at a police checkpoint set up beside a busy road junction outside Lhokseumawe. Like clockwork, the drivers or their assistants hopped down from the cabs and passed cash to the police officers sitting in the shade of a mango tree.

The spike in complaints about extortion may be one of the best indications that life is returning to normal. It is not that the practice is on the rise, according to human rights activists, but that people are more willing to blow the whistle.

"With shootings and ambushes declining, the people now report this instead," said Tanongsuk, the Thai general. "And the peace process has given people more comfort that it is safe to come out and make these reports."

Minister warns Aceh truce might be broken

Jakarta Post - January 21, 2003

Tiarma Siboro, The Jakarta Post, Jakarta The top security minister warned on Monday that Indonesia could withdraw from the peace agreement with the separatist Free Aceh Movement (GAM) if the international monitoring team failed to take "serious action" to stop violence in the restive province.

"We [the Indonesian government] have yet to decide whether or not to withdraw from the peace agreement," Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said on Monday after giving a clarification about his Rp 3.5 billion (US$388,890) wealth.

"We urge the Joint Security Commission [JSC] to be more professional and take tough action against escalating violence that has continued to occur there. "We all agree with this [agreement] to stop problems in the province ... Therefore, I give this warning before the agreement is broken."

Representatives from the Indonesian government and GAM signed the cessation of hostilities agreement in Geneva on December 9, hailed by many as a breakthrough to end the decades-long armed conflict in Aceh that had claimed more than 10,000 lives.

The police recorded more than 50 violations of the agreement, committed both by Indonesian security forces and rebels, only a week after it was signed. Such violations, however, included alleged extortion by security forces of truck drivers plying routes within the troubled province.

The latest recorded violation occurred late last week when a group of unidentified people, believed to be rebels, shot Chief Pvt. Hadi at Krueng Teunom village, Lammo district, West Aceh. GAM, however, has yet to declare responsibility for these violations.

JSC, with members representing the government, GAM and international monitors, regretted the continuing violations and promised to investigate all incidents thoroughly and impose penalties on truce violators.

Should any party -- whether it be Indonesia or GAM -- violate the agreement or feel unsatisfied with the sanction or decision taken by JSC, it would be allowed to appeal to the Joint Council as the supreme institution.

"If JSC has no intention of holding an investigation into the violations, I will file a protest so that the Joint Council -- which is superior to JSC -- can hold a meeting prior to the end of the first period of cessation of hostilities.

In charge in the council are Susilo, Malik Machmud, representing GAM and Martin Griffiths of the Henry Dunant Centre, which mediated the peace talks.

According to the peace agreement, the two parties agreed to cease hostilities within the first two months ending February 9, followed by demilitarization over the subsequent seven months. The two parties, however, have not yet agreed on a demilitarization mechanism for Aceh.

Three bodies found in one grave in Aceh

Jakarta Post - January 21, 2003

Jakarta -- Three male bodies have been unearthedfrom one grave in Aceh province despite the ceasefire in the separatist war, AFP reported.

The bodies were dug up Monday at a palm oil plantation at Kuta Makmur in North Aceh district, said a witness.

He said they bore gunshot wounds and torture marks. They were identified as local residents Muhammad Kasem, 41, Fauzan, 25, and Abubakar, 28. A local spokesman for the Free Aceh Movement (GAM), Teungku Jamaica, said the dead were GAM rebels.

"They were GAM police who were arrested by the military but were killed despite the peace agreement," Jamaica said.

The army denied it was to blame. "It was not the work of the military. It'san attempt to discredit the military," spokesman Major Eddi Fernandi said Tuesday.

GAM and the government signed a peace pact in Geneva on December 9. Security condition in the province continues to improve following the truce, but it may harmed by several conflicts between two parties.

West Papua

Judges say trial into murder of Papuan leader must go on

Jakarta Post - January 25, 2003

Ainur Sophiaan, Surabaya -- The panel of judges trying seven of the Army Special Forces (Kopassus) personnel charged with killing Papuan proindependence leader Theys Hiyo Eluay rejected on Friday a demand by the defendants' lawyers to drop the case.

Presiding judge Col. E.M. Yamini and members of the panel Col. Amirudin Rahim and Col. Suryono concluded that the charges leveled against the defendants were legally acceptable and therefore the trial would continue. The defense lawyers, who include Ruhut Sitompul and Tomy Sihotang, had objected to the charges, which they said were unclear and confusing.

In his response, Yamini said the prosecutors had built their case thoroughly and comprehensively so as to convince the judges that the crime took place. "Regarding the defense lawyers' question about reports that Theys was left in an incapacitated state [after being suffocated] by the defendants on the rear seat but was then found dead on the middle seat would be one of the main subjects of their argument," Yamini said.

The judges will also hear the defense claim of the possibility of another person or persons killing Theys because according to the defense lawyers the Papuan Presidium Council chairman was still breathing when the defendants admitted to leaving him in the car, albeit near death.

According to the charges the defendants had been in Theys' car and had restricted his breathing and physically restrained him. However, the defense is now arguing that someone else must have killed him in the end.

Theys was found dead in his Kijang van one day after he attended a dinner party organized by a local unit of Kopassus in celebration of National Heroes' Day on November 10, 2001, in Jayapura. Theys' driver, Aristoteles remains missing, presumed dead but no charges have been leveled against anyone.

The session to hear the judges' opinion lasted only one hour. The trial was adjourned until next week to hear testimony from witnesses. Chief prosecutor Col. Haryanto will bring in 17 witnesses who would testify against the defendants. They include three military soldiers and a police officer. Most of the witnesses to be presented by the prosecutors come from Papua.

The soldiers charged in the high-profile murder case are Jayapura's Tribuana Kopassus task force chief Lt. Col. Hartomo, Capt. Leonardo, First Sgt. Asrial, Chief Pvt. Achmad Zulfahmi, Maj. Donny Hutabarat, First Lt. Agus Suprianto and First Sgt. Lorensius.

Papua rebels say Jakarta aided Muslim militants

Kabar-Irian News - January 22, 2003

Anna Peltola, Malmo, Sweden -- A Christian rebel group in Indonesia accused Jakarta on Wednesday of helping Islamic militants set up bases in the country's resource-rich Papua province.

The Free Papua Organisation has waged a protracted, low-level guerrilla war for independence in remote Papua, one of several trouble spots in the world's most populous Muslim country.

The group's spokesman said the Indonesian military had armed and funded Islamic groups such as Laskar Jihad in the largely Christian province, which has oil reserves and the world's biggest gold and copper mine, owned by US-based Freeport-McMoran Copper and Gold Inc.

"Now there are a lot of terrorist bases in Papua. We're Christian people, we're not Muslims, so everyone understands that it's not our doing," Joseph Prai told Reuters in an interview. "There is Laskar Jihad and Satgas Merah Putih," he said.

Laskar Jihad was Indonesia's best known militant Muslim group until it was disbanded soon after the bombings on Bali in October. The group sent several thousand fighters to the Moluccas islands in mid-2000, adding to Christian- Muslim tension there.

"After the Bali bombing ... they [Laskar Jihad] transported 2,000 forces to West Papua from Aceh," Prai said, referring to Indonesia's westernmost province, on Sumatra island, where Muslim rebels have been seeking a separate state for years.

Satgas Merah Putih, or the "red and white task force," is a less well known group supporting Jakarta. "Red and white" is a reference to the Indonesian flag and is nationalist rallying cry.

Prai said this information was based mainly on evidence collected by Elsham, Papua's most prominent human rights group. "We're still finding hard evidence. But we know they exist there because there have been OPM members who have been fighting against Laskar Jihad forces. They [Jakarta] know there are terrorists in the country ... The Indonesian army knows this and they take advantage of this. They [the militants] were funded in the beginning by the Indonesian army and armed by them."

There was no immediate reaction from Jakarta, which initially drew criticism for being less visibly active in the US-led war on terrorism than other countries in the region.

Prai's father, rebel leader Jakob Prai, has directed the guerrilla war for more than 20 years from exile in Sweden but his son is gradually taking over responsibility.

Real Situation

Since the attacks on the resort island of Bali that killed at least 193 people, Indonesia has put anti-terrorism regulations into force and made scores of arrests, many of people with a militant Islamic background. Prai said the West would be sympathetic to his group's demands if it knew the real situation in Papua, Indonesia's easternmost province that was formerly known as Irian Jaya.

No country officially supports the Papuan separatists but many in the West have criticised Indonesia's heavy-handed approach to the conflict. In December, Jakarta warned Western nations against any support for the Papuans.

The guerrillas operate mainly in the remote highlands of the rainforest-covered region and do not have modern weapons. The province was incorporated into Indonesia in 1963 and Papuans voted for Indonesian rule six years later in a UN plebiscite that was widely criticised as unfair.

Indonesia recently granted Papuans special autonomy but Prai said his group wanted the United Nations to take up their case again. "We have to let the people decide who should lead the country, let them vote. Our main strategy now is just independence for West Papua," he said.

The tiny Pacific island nation Vanuatu may take up the Papuans case with the United Nations, Prai said. The rebels plan to open an office in Vanuatu next May which could make it the first country to have links with the Free Papua Organisation.

Troops await orders to act against OPM

PNG Post Courier - January 23, 2003

Policemen and soldiers deployed on border duties have yet to receive their operational orders from superiors. With only seven days to go before the deadline set for the Operassi Papua Merdeka (OPM) fighters to move out of Papua New Guinean soil, PNG troops stationed in Vanimo are still unsure of what they are supposed to do.

A mobile squad from Lae has been in Vanimo since troubles flared on the border last month. There is also an army unit permanently stationed in Vanimo consisting of about 100 men to carry out routine border monitoring patrols.

These men believe they would have to carry out the exercise to force the rebels out of their camps if they did not voluntarily leave by the January 29, deadline, which is next Wednesday. But so far, they have not been given their operational orders.

They still have not got funding to support any operation against OPM camps along the PNG/Indonesia border as well as a number of "refugee camps", where it is believed many of the OPM members were residing.

Sources from Vanimo who are part of the deployment, said yesterday they were in a state of uncertainty. "The boys are having a game of rugby out there on the field. We are not doing any preparations because we have not got our operational orders yet," onesource said.

He said they were especially concerned after PNG Defence Force Commander Brigadier-General Peter Ilau came out in the media with the order for the rebels to clear out of PNG soil by January 29. "Most of the refugee camps and known OPM camps are not easily accessible by road, which means we have to use helicopters. And for those accessible by road, we will need to find transport," the source said.

He also said Foreign Affairs officers would need to be on site, as it would be their responsibility to decide what to do with rebels who refuse to leave. "We need to know what the modus operandi is when we find out that there are elements of OPM who refuse to go. Do we arrest them and take them to court? Do we deport them? These are questions that have to be dealt with by Foreign Affairs, or must be stated in the operational orders."

Meanwhile, the Bishop of Catholic Diocese of Vanimo Cesare Bonivento has urged that any decisions on the future of the West Papua border crossers must be based on "justice, love for peace and respect for human rights". Bishop Bonivento called on PNG citizens to pray for the PNG authoritiestasked with making the decisions on the border crisis so that their decisions are good for everyone.

"Any decision that neglects these basic human values will not be helpful to anybody and will be counterproductive like a boomerang, despite the intentions and the expectations of those who put them in place," he said. "Let us pray that our PNg authorities will be able to protect the people living along the border and those staying in Vanimo, giving them confidence, freedom of movement and serenity."

US FBI tries to uncover truth on Freeport killings

Radio Australia - January 22, 2003

In Indonesia's Papua Province, human rights groups have warned the presence of American investigators will do little to bring the perpetrators of last year's Freeport mine killings to justice. The US FBI has sent a high-level team to help determine who launched the attack at the mine last August, when two Americans and an Indonesian were killed. Local human rights group claim the Indonesian military was behind the attack and say they fear the strategic importance of Indonesia to the US, may cloud the investigation.

Presenter/Interviewer: Sen Lam

Speakers: John Rumbiak, Co-ordinator Indonesian Papua's human rights group, ELSHAM.

Rumbiak: The FBI investigated this case from the very beginning. They came to investigate this case when this incident happened on the 31st August. They flew to Townsville, Cairns, in Australia to interview the survivors of the attack. Until now we believe the FBI already concluded which party was behind the attack on the 31st of August, but thre is no announcement yet. They went back and forth Papua -- DC and back and forth and they should have announced that."

Lam: So what is their brief this time around in Papua what have they gone there specifically to achieve?

Rumbiak: "I'm sceptical about the investigation to Papua, especially about the joint inquiry commission. I see this as a way of compromising the evidence on the ground. "In my view the police again, the police Papua already revealed in their investigation clearly, which I have read a report that the Indonesian military were behind or responsible for that attack on the 31st of August. "I see this as a Jakarta-Washington kind of investigation if FBI really revealed the evidence of that 31st August attack, this is very damaging evidence to the diplomatic relationship between Jakarta and Washington DC. As you know very well the US Government is trying to resume the military relationship with Indonesia."

Lam: Indeed I understand that President George W Bush has made renewing full Indonesian US military ties dependent on the solving of the Freeport crime. So surely the FBI will reveal everything that it can find?

Rumbiak: "Well what I see now is that there is a compromise at the political level, internationally between these leaders. In the eyes of America, Indonesia is a very strategic country in South East Asia and the interests of the country itself."

Lam: So what is the point of the senior FBI officials going to Papua now? Are they trying to work out some kind of face saving measure in terms of the Jakarta authorities in coming out of this whole mystery of the Freeport killings?

Rumbiak: "They want to go to Freeport Mine and show the Indonesian military officers that they know what is what. That they know what was really going on. That's number one.

"Secondly however because Indonesia is so important in terms of the eyes of the American Government they would make a lot of compromises with Jakarta.

"What I'm talking about here is a kind of high level diplomacy between Washington DC and Jakarta to ease this situation down and make sure that Freeport and McMoRan, the US multi-national investing in Indonesia is going very well. The whole inquiry established by the Indonesian Government is only to wipe out the evidence.

Lam: So in the end if indeed the military was responsible they will not be brought to justice?

Rumbiak: "No."

Neo-liberal globalisation

Police fire warning shots, beat anti-CGI protesters

Jakarta Post - January 20, 2003

Sri Wahyuni, Yogyakarta -- Police fired warning shots and beat hundreds of anti-CGI protesters with batons, while representatives of Indonesia's traditional foreign donor countries and institutions held a closed-door meeting with government officials here on Sunday.

The incident took place only two days before the donors, under the Consultative Group on Indonesia (CGI), decide on fresh loans for the country. Dozens of protesters suffered minor injuries and at least five people were arrested by the police.

Three different groups were involved in the demonstration: the People's Coalition for Anti-Globalization, the People's Front for Anti-Imperialism and a student group from Gadjah Mada University.

Carrying anti-CGI banners and chanting slogans criticizing the International Monetary Fund and the World Bank, the protesters demanded the foreign lenders erase Indonesia's debts and called on the government to reject new debts, to stop the privatization of state-owned enterprises and to nationalize foreign assets.

The first clash between protesters and the police occurred when officers tried to disperse demonstrators blocking the road to the Gedung Agung Yogyakarta State Palace, where the donors and government officials were to hold a discussion on administrative reforms and regional autonomy. The police fired warning shots to clear the road so the delegates could pass.

A little later, another group of protesters attempted to approach the State Palace. Again, the police fired warning shots. A third incident occurred when a protester gave a speech condemning the police, calling them the "dogs of the capitalists". Officers arrested the man.

Over the past several weeks, the nation has seen a number of protests against several government policies deemed harmful to the interests of the people.

There have been daily rallies against the utility price hikes the government unveiled earlier this month. The government postponed a telephone rate increase indefinitely in response to protests, and is also reviewing the fuel price increase and electricity rate hike.

At some of these actions demonstrators have turned their anger toward the administration, demanding that both President Megawati Soekarnoputri and Vice President Hamzah Haz step down.

The meeting in Yogyakarta was held to allow provincial and district officials to brief donors about the progress of foreign-funded governance reform programs in their respective areas.

Local administrations have had autonomy to manage their economic and social affairs since 1999. However, many foreign companies operating in the regions have complained about the poor implementation of regional autonomy.

The meeting on Sunday was attended by a number of ambassadors representing donor countries, officials of international lending institutions, Yogyakarta Governor Sultan Hamengkubuwono X, several other provincial governors, regents and mayors, Coordinating Minister for the Economy Dorodjatun Kuntjoro-Tjakti and other officials.

The final CGI meeting will be held on the resort island of Bali on Tuesday and Wednesday. The donors are expected to provide Indonesia with between US$2.4 billion and $2.8 billion in fresh loans to help plug the 2003 state budget deficit.

The World Bank, which is the coordinator of the CGI, earlier criticized the government for its reform efforts and its progress in maintaining macroeconomic policy. It also expressed concern over Indonesia's protectionism in the trade sector, particularly its plans to impose import tariffs on rice, a move seen by the bank as hurting the poor and local farmers.

'War on terrorism'

FBI report pointed to Bali bombing

Melbourne Age - January 23 2003

Marian Wilkinson, Washington -- A confidential FBI report revealing that a key member of the extremist group Jemaah Islamiah planned to bomb Westerners in bars and nightclubs from Thailand to Indonesia is believed to have been distributed to America's allies almost two months before last year's Bali bombing.

The report, obtained by The Age, was based on the confession of a top JI recruit, Mohammed Mansour Jabarah, who is in custody in the US awaiting trial.

Jabarah's confession confirms in detail that a meeting held by JI's operations chief, Hambali, in Thailand in January, 2002, decided to hit so-called "soft targets" throughout South-East Asia.

At the meeting, according to the FBI report, "Hambali discussed carrying out attacks with his group. His plan was to conduct small bombings in bars, cafes or nightclubs frequented by Westerners in Thailand, Malaysia, Singapore, Philippines and Indonesia".

Hambali, whose full name is Riduan Isamuddin, has been named by one of the Bali bombing suspects as the man who conceived and planned the attack on October 12 that killed nearly 200, including 88 Australians.

Jabarah told the FBI that al Qaeda used specific code words in Asia, including the phrase, "white meat" to describe American interests.

The FBI report was first revealed in detail over the weekend by the Canadian newspaper The National Post. It charted how Jabarah, a Kuwaiti-born Canadian citizen, had been sent to the region by one of al Qaeda's most senior figures, the architect of the World Trade Centre attacks, Khalid Sheikh Mohammad, and worked with Hambali. He was captured in March last year in Oman and deported to Canada. His confessions, first to Canadian intelligence and then to the FBI, provide a disturbing insight into al Qaeda's strength in South-East Asia at the time of the September 11 attacks in America, long before last year's Bali bombing.

The FBI report carries a note indicating it was distributed to other agencies soon after it was written on August 21 last year.

Although there has been no official confirmation that Australia received the report, defence and intelligence experts are convinced that the material would have been forwarded as a matter of course.

Leading terrorism expert Clive Williams, of the Australian National University's Strategic and Defence Studies Centre said yesterday: "There is absolutely no question we would have received it under our intelligence-sharing agreement with the US, UK and Canada." The report was significant because it revealed plans to attack soft targets, when previous intelligence leaks had only identified Hambali's call for terrorist attacks at the meeting in Thailand, Mr Williams said.

A spokeswoman for federal Attorney-General Daryl Williams refused to confirm whether the report was received.

She said the government was aware of a potential threat in the region and made a number of public statements to this effect before the Bali bombings.

"We issued warnings about travel in the region, including specifically around the anniversary of September 11," she said.

A government-commissioned inquiry late last year found that no information had been received warning specifically of the Bali attack.

The spokeswoman added: " "Also, both the US and the UK -- independently -- have publicly confirmed that they had no prior intelligence in respect of the Bali attack." However, following the FBI report, and other intelligence gathering, the US embassy in Jakarta began issuing warnings in September to its nationals to avoids bars and night clubs frequented by Westerners in Indonesia.

By the time the FBI produced its report, Jabarah had been in US custody since May. He was considered a big catch.

Although only 19, Jabarah is believed to have travelled to Afghanistan in July, 200, where he came to the attention of Osama bin Laden's top cadre. From there he was sent to Karachi in Pakistan where he met Khalid who had long set the September 11 attacks in motion.

According to a report in Tuesday's Wall Street Journal, Jabarah met bin Laden four times before he was sent to South-East Asia by Khalid. He was specifically asked to plan attacks on Western embassies.

Jabarah was put in contact with Hambali, who was then the most senior operational commander of JI.

In a chilling disclosure, the FBI report revealed that Jabarah was ordered to South-East Asia to work with JI only days before the New York and Pentagon attacks. He went on to Malaysia, according to the FBI report, and met JI operatives who were already planning to bomb the US and Israeli embassies in Manila. According to his FBI confession, Jabarah, "was in charge of financing for the operation".

The Manila embassies proved too difficult to attack and led Jabarah and his JI colleagues to shift their attention to Western embassies in Singapore in October.

Singaporean authorities have revealed those targets included the Australian High Commission.

Throughout the FBI report it is clear that Hambali, who had links to both JI and al Qaeda, was directing Jabarah and other JI operatives.

Videotapes taken by Jabarah and his group were later discovered in the deserted house of one of bin Laden's military chiefs in Afghanistan who died in the US bombing.

Soon after that discovery, in early December, Hambali shut down the Singapore operation, advising Jabarah that they should instead "move the target back to the US and Israel embassies in the Philippines".

But after Singapore began rounding up JI operatives, based on the US intelligence from Afghanistan, Jabarah fled Malaysia.

In January, 2001, according to the FBI, Jabarah, Hambali and other JI operatives met in Thailand to discuss bombing Western civilians in the bars and nightclubs of South-East Asia.

But by now, Western intelligence agents were in pursuit of Jabarah. He fled to Oman and was attempting to link up with al Qaeda leaders in Pakistan when he was arrested in March.

Hambali had also left South-East Asia around this time, apparently handing over day-to-day operations to the Malaysian JI boss, Mukhlas, who is now in custody in Indonesia over the Bali bombing.

In August last year, according Indonesia police, senior JI operatives met in central Java and decided on Bali as their target. This was just as the FBI report on Jabarah's confession was being distributed.

Jabarah is now reportedly attempting to negotiate a plea bargain with the US Justice Department in exchange for his confessions.

[with reporting from Mark Forbes]

Evidence destroys conspiracy theories

Sydney Morning Herald - January 21, 2003

Matthew Moore -- In a nation where conspiracy theories and rice are two of life's staples, Indonesians appear to be changing their habits. You can still get rice with your Kentucky Fried, but conspiracy theories are suddenly harder to find, at least as far as the Bali bombing is concerned.

In the days and weeks after the bombing, the CIA, the Indonesian armed forces (TNI) and unidentified foreigners were accused of planning and executing the attacks. While Western governments immediately blamed Muslim extremists, many Indonesians were deeply sceptical of that view.

"The CIA did it," was always the favoured alternative view. For a while it was everywhere, on the streets, peppered through the media, heavy in the tabloid press and in the pro-Muslim Jakarta broadsheet Republika.

On Monday, October 14, barely a day after the blasts, popular tabloid Rakyat Merdeka ran a page-one headline: "Scenario, America behind Bali attack".

A front-page story from Republika on the same day quoted a man portrayed as an intelligence expert, A. C. Manullang, explaining why the US had to be involved. "In the World Trade Centre no Jew died. In Bali, no American died."

Less offensive, but no less wrong, he continued his argument: "It's simply impossible for Indonesians to make such a big plan. Only a superpower country is capable of making such a plan."

Even Vice-President Hamzah Haz assured his countrymen: "The Bali bomb blast I'm sure was not an act of Muslims ..."

America was always the stand-out suspect of the conspiracy theorists, who reasoned that the US had been frustrated with its inability to prove its claims that Indonesia was harbouring terrorists. By blowing up Bali nightclubs it would be proved right and thereby help ensure a crackdown on Indonesian Islamic groups while also building support for its war on terror.

With no tangible evidence, even airing such long-bow theories might seem absurd to the West. But in a country that has long held a deep suspicion of the US, and especially the CIA's involvement in Suharto's coup of 1965, people have learnt that it usually pays to distrust official versions of events.

In the 30 years of Suharto's dictatorship, Indonesians also learnt the wisdom of suspecting the military when blood was spilt.

Within days of the bombings an air force officer became the first person accused. After his innocence was quickly established there was a new flurry of excitement when it was revealed that two army generals had been in Bali suspiciously close to the time the bombs went off.

And then there was the main bomb itself. It has been analysed obsessively, with numerous Indonesian experts concluding that locals could not have made it because it was either too big or too complex. Indonesian police confused things further with their doubtful finding that the bomb was made of RDX, an explosive they said was "usually used by foreign military".

When police arrested their first suspect, Amrozi, and accused him of the bombings, the scepticism seemed to grow. How could a normally bungling police force catch a bomber so soon? Why would he confess so quickly? Why would he have returned to his home town in Java if he was a suspect?

And then, within weeks, the alleged organiser of the mission, Imam Samudra, was arrested on a bus to Sumatra. When he appeared in chains, stared hard at the cameras, and cried "Allahu akbar" [God is great], he blew a good hole in the conspiracy theory balloon.

It has been losing altitude ever since as more and more alleged bombers have been picked up across the country. As each one has been arrested, local and international media have descended on their towns, talked to relatives and friends and pieced together their lives.

A large amount of detailed evidence has been published since Amrozi's arrest. Overwhelmingly, the stories told by those who know the suspects have reinforced the police version of events.

The crushing weight of this evidence has silenced the Indonesian sceptics -- too many people have given too many common accounts for them now to be seriously questioned.

Supporters of Muslim cleric Abu Bakar Bashir, the alleged spiritual leader of Jemaah Islamiah, have retreated from the public eye. With them have gone the fears of many ordinary Indonesians that Abu Bakar's arrest and detention could lead to a surge in support for hardline Muslim groups.

A hundred days after Bali, Indonesian attitudes appear to have shifted markedly. The signs all suggest that most Indonesians now accept what in October was unthinkable for so many -- that the bombings were planned and executed by a group of extremist, mainly Indonesian Muslims, not by the CIA, the TNI or nameless foreigners.

Government & politics

House slows down talk on Akbar's dismissal

Jakarta Post - January 24, 2003

Kurniawan Hari, Jakarta -- Complicated procedures have put an early damper on moves to show House of Representatives Speaker Akbar Tandjung the door as the steering committee (Bamus) that was scheduled to discuss the issue on Thursday failed to reach a quorum.

Of the 76 steering committee members, only 22 turned up for the much-awaited meeting, which would have decided whether to proceed with a motion signed by a group of legislators to dismiss Akbar over his conviction in a Rp 40 billion graft case.

The motion topped the agenda of the meeting, according to House deputy speaker Tosari Widjaja, but due to the unfulfilled quorum the meeting was rescheduled for next week.

"I regret this delay because it will affect other agendas of the House, including the deliberation of numerous bills," Tosari told the media after closing the meeting.

The meeting opened an hour later than scheduled, at 1:30 p.m., as only 11 legislators arrived for the gathering on time. Chairman of the Reform faction Ahmad Farhan Hamid expressed disappointment with fellow legislators who skipped the important meeting for no clear reason.

The Reform faction, consisting of the National Mandate Party (PAN) and the Justice Party (PK), has been campaigning for Akbar's dismissal for reasons of morality. "The motion to dismiss Akbar should be brought to a plenary meeting," Ahmad said.

Meanwhile, United Development Party (PPP) faction chairman Barlianta Harahap said the meeting was supposed to decide on whether the motion to unseat Akbar would be brought to a plenary meeting or not. Although a meeting of House leaders last November concluded that there was no regulation to dismiss the speaker, the conclusion was not accepted by legislators.

Barlianta suggested that the issue should be discussed in a plenary meeting to reach a definite decision.

"A plenary meeting is the highest forum in the House to make a decision. The steering committee meeting is lower than a plenary session in status but is higher than a House leaders meeting," he said.

Tari Siwi Utami, an initiator of the motion to unseat Akbar, expressed concern over the inability of the steering committee to reach a quorum. According to her, this trend would worsen the already-tainted image of the House.

"With the delay, our demand for the establishment of a disciplinary council becomes more relevant," said Tari of the National Awakening Party (PKB).

She added she had signed a motion calling for the establishment of a disciplinary committee circulated by Dwi Ria Latifa, a member of the Indonesian Democratic Party of Struggle (PDI Perjuangan).

Ria Latifa claimed on Thursday the motion had the support of 20 legislators from various factions, seven of them women legislators.

She said on Wednesday the call for the establishment of a disciplinary council would be led by women legislators as male legislators lacked the courage to do so.

Internal House rules require legislators to collect at least 10 signatories from different factions in support of any proposal.

Wiranto denies trying to seize power

Agence France Presse - January 25, 2003

Jakarta -- Indonesia's former armed forces chief, General Wiranto, denied yesterday that he has tried to seize power from President Megawati Sukarnoputri.

"I definitely will not allow myself to be trapped in such a game," the retired general told reporters.

Local press reports have alleged that Gen Wiranto is one of a handful of prominent political figures who is trying to take advantage of recent demonstrations against price rises to topple the government. Gen Wiranto denied he had links to the demonstrators.

Since early January hundreds of students, women's groups, workers and others have launched almost daily protests against rises in fuel, electricity and telephone rates.

Confronted with the most widespread public opposition to Ms Megawati's 18-month administration, the government said this week it would reduce the steep fuel price rise after earlier postponing the telephone rate increase.

Top security minister Susilo Bambang Yudhoyono has said that political opponents were using the protests as a pretext to overthrow the government.

Without naming Gen Wiranto, the current military commander General Endriartono Sutarto this week appealed to retired military officers "to put national interests above personal ambition".

Gen Wiranto complained of "attempts to carry out character assassination" against him. "Until now I don't even have a political party and have never joined any party," he said

Political parties still back Mega's government, says Akbar

Straits Times - January 25, 2003

Derwin Pereira, Jakarta -- One of Indonesia's most senior politicians, Parliamentary Speaker Akbar Tandjung, yesterday declared that three of the largest political parties in the country still backed President Megawati Sukarnoputri as he brushed aside speculation that there will be a new regime before elections in 2004.

In the first public comments on the stability of the Megawati government, Mr Akbar said that the 56-year-old leader had the "constitutional right to hold on to power".

He told The Straits Times in an interview: "Ibu Mega is on strong ground. It is unconstitutional to overthrow the President if there is no valid reason. Trying to replace her now is not the right solution for Indonesia. It will only invite more problems."

The Indonesian Democratic Party-Struggle (PDI-P), Golkar and the United Development Party (PPP) that make up 70 per cent of the country's legislature, he said, would not allow an emerging coalition of forces to replace her.

Ms Megawati, he noted, had also clearly signalled that she would not cave in to pressures after she challenged her opponents to fight her at the ballot box next year.

His backing for Ms Megawati follows Jakarta's move to backtrack on fuel and utility hikes in the country after weeks of mounting protests. But simmering resentment remains as groups that engineered the demonstrations continued to harbour hopes of toppling her.

The anti-Mega front comprised an ad hoc coalition of forces. They included at least five legislators from the Reform Faction, Golkar, the Nation Awakening Party and even the PDI-P that fell under the banner of the National Rescue Caucus.

Also on the list were small socialist parties, Islamic student groups, labour movements and senior political figures like former military strongman Wiranto, financier Fuad Bawazier, ex-president Abdurrahman Wahid and former activists Hariman Siregar and Adnan Buyung Nasution.

Mr Akbar's rationale for backing the President, while based on "putting the country"s interest first', is also predicated on his own political survival.

Mr Akbar, who held several ministerial posts in the Suharto government, has been convicted of corruption -- the most senior Indonesian official to be done so.

The 57-year-old Golkar chief needs the support of Ms Megawati and the PDI-P to ward off attempts to throw him out of Parliament and his own party. He faces a three-year jail term for allegedly 'misusing' 40 billion rupiah in state funds intended for food aid.

It is not clear what had happened to the money though it is widely believed to have been used to help finance Golkar's election campaign in 1999.

His comments yesterday gave a glimpse of broad political alliances shaping up in the run-up to polls. Analysts believe that Golkar and PDI-P members -- with the exception of a few -- will team up given their nationalist ideological link.

The Muslim-based PPP was a potential ally. Given that its leader, Mr Hamzah Haz, is the Vice-President, the party saw little interest in challenging the status quo. But observers said that key questions remained over the PPP's political orientation with splits within the party.

That does not seem to be the case for the Reform Faction (PAN), the Nation Awakening Party (PKB) and other smaller Islamic parties. PAN's leader, Dr Amien Rais, who is also the national assembly chairman, said that he was ready to challenge Ms Megawati in the election after the President dared her rivals to a fight.

Mr Abdurrahman also indicated that he would join the fray in 2004.

Indonesians will directly vote for a president and vice-president for the first time in the elections after the supreme legislature last year decided to hand to the public the power to choose the country's two top jobs.

Analysts believe that Golkar and the PDI-P each stand to garner more votes than any other party in the parliamentary polls, though some believe that they will see a drop in percentage points compared to 1999.

But the outcome of the presidential election would be "less predictable" after a runoff vote.

In politics: No true friends

"In politics, you know who your real friends are when you are in serious trouble. Some of the people who I thought are my friends are now keeping their distance. They no longer visit me or call me to say hello. It is right when people say that in politics, there are no permanent friends, only permanent interests. I have found out that in good and bad times, your family is always your best friend."

Mr Akbar Tandjung on his disappointment with some politicians he thought were his friends for not standing by him after he was accused of corruption.

Fight me at ballot box, Mega tells rivals

Straits Times - January 23, 2003

Derwin Pereira, Jakarta -- President Megawati Sukarnoputri fired the opening salvo in her campaign for next year's election by challenging her rivals to 'fight' her at the ballot box.

In her first public comments on her intention to contest the presidential polls, the 55-year-old leader underlined just how seriously she took threats to topple her 18-month administration, when she raised the political ante against her opponents.

"Those who want to riot, who want violence, who are trying to provoke the situation, I want to challenge them," she told hundreds of supporters of her Indonesian Democratic Party- Struggle (PDI-P) on Tuesday night.

"Are they brave enough ... to face me directly in the forthcoming elections?' Her challenge came against a backdrop of her government's roll-back of fuel and utility price hikes after nationwide demonstrations.

Sources said the government caved in after receiving an intelligence brief which warned of groups plotting to overthrow the government.

The anti-Mega front comprised forces grouped under the banner of the National Rescue Caucus. They included at least five legislators from the Reform Faction, the former ruling Golkar party, the Nation Awakening Party and even her own PDI-P.

Also on the list, according to the weekly Tempo magazine, were small socialist parties, Islamic student groups, labour unions and senior political figures like former military strongman Wiranto, ex-president Abdurrahman Wahid and former activists Hariman Siregar and Adnan Buyung Nasution.

Reflecting the concerns of those in the coalition over the price hikes this month, Mr Abdurrahman was quoted as saying recently: "The upper levels have already got back on their feet, but at the bottom all they are concerned about is what they are going to eat." PDI-P officials said her comments on Tuesday underscored a determination to ensure that her administration would not face any "unconstitutional challenge".

Said party official Amris Fuad Hasan: "If the opposition wants to remove her, they will have to do it through the ballot box. Any other means will be deemed unconstitutional and throw this country further back. That was the broad message she was trying to deliver."

Observers believe that while Ms Megawati's opponents could ride on the momentum of public anger against the price hikes to dent her image, they were not in a position to topple her given the continued backing of the military and the broad support she still has in Parliament.

Analysts said her decision to openly declare she will contest the 2004 election would inject confidence in Indonesia where rumours have swirled about plans to topple her.

Said a Jakarta diplomat: "By coming out openly about her ambitions, she has managed to assuage fears at home and abroad that she might be stepping down or be forced out because of the price hikes.

"What she has also done is to show her opponents that she is not what they think she is -- a meek housewife. She has raised the stakes of the game.' Indonesians will vote directly for a president and vice-president for the first time in 2004 election.

Analysts say a direct election could inject greater uncertainty about the outcome but most neutrals believe she has a stronger chance of winning given the "glaring absence of a better alternative".

Corruption/collusion/nepotism

Women legislators lead charge against Akbar

Jakarta Post - January 23, 2003

Kurniawan Hari, Jakarta -- A group of women legislators have taken the lead in the movement to force out House of Representatives Speaker Akbar Tandjung over his conviction in a Rp 40 billion corruption case.

Dwi Ria Latifa of the Indonesian Democratic Party of Struggle (PDI Perjuangan) and Ida Fauziah of the National Awakening Party (PKB) have circulated a motion calling for the establishment of a disciplinary committee to determine whether Akbar should be allowed to serve out his term as House Speaker until 2004. The motion has been signed by women legislators from a number of parties, including the Golkar Party, which Akbar chairs.

Ria said the proposal has received the backing of at least three other women legislators: Eka Komariah Kuncoro of Golkar, Nurdiati Akma of the Reform Faction and Tari Siwi Utami of PKB.

Ria, Ida and Marwah Daud Ibrahim, an outspoken critic of Akbar in the Golkar Party, have fiercely opposed Akbar's leadership in the legislative body, but have received no support from the majority of legislators. "We are upset by the lack of courage on the part of the male legislators to take the initiate to propose such a motion," said Dwi, accompanied by Ida, at her office in the House here on Wednesday.

According to the House's internal rulings, at least 10 legislators must sign the motion before it can be processed by the steering committee (Bamus). Then it can be brought to a plenary session where a decision can be made on whether to accept or reject the motion.

Legislators, mostly from the PKB and minor parties, have introduced similar motions in the past, but they failed to gain the necessary support to force Bamus to bring them to a plenary session.

A district court sentenced Akbar to three years in prison for misusing Rp 40 billion of State Logistics Agency (Bulog) funds. The Jakarta High Court upheld the sentence last week and Akbar has filed a final appeal with the Supreme Court.

Akbar has declined to step down, saying the case occurred in 1999 when he was minister/state secretary, making it a past offense that is not regulated by the House's internal rulings.

Akbar's case is the latest blow to its image that the House has suffered over the last three years.

Among its other public relations disasters were high absenteeism among legislators, a bribery case implicating House Commission IX for financial affairs and a financial scandal involving PT QSAR and House Deputy Speaker Tosary Widjaya.

However, not all of the news coming from the House is bad. Ria and Ida, for their part, have vowed to continue to seek the necessary support to bring their proposal to a House plenary session.

Tanjung stalemate drags on

Laksamana.Net - January 23, 2003

The insistence of House Speaker Akbar Tanjung on retaining his position in Golkar and in the House is likely to provoke post- power syndrome groups to continue to radicalize the anti Megawati-Hamzah movement.

Maneuvers to sideline Tanjung are in high gear again following the High Court decision to uphold the Central Jakarta District Court's September 2002 decision to sentence Tanjung to three years in prison for corruption.

Instead of getting law enforcement back on track, the verdict -- and Tanjung's refusal to step down until the Supreme Court rules on a new appeal -- has created more legal confusion and strengthened the process of polarization in Golkar party as well as in the parliament.

Deputy House Speaker Muhaimin Iskandar, from the National Awakening Party (PKB), admitted there was no legal reason to force Tanjung to stand down. "There is no ruling that can force Akbar to stay out of office except the will of the majority in the House."

Tanjung was elected House Speaker by a majority vote at the 1999 general session of the National Assembly, with the support of Golkar and the Islamic-based parties grouped under the Central Axis.

Megawati's party, the Indonesian Democratic Party of Struggle (PDI-P), PKB and some small Muslim parties threw their weight behind PDI-P veteran Sutardjo Surjoguritno in the race.

The political map has now changed. Megawati as President and chairwoman of PDI-P is believed to want Tanjung to retain his position in Golkar and the parliament. The Muslim-based parties united under the Reform Faction, consisting of Amien Rais' National Mandate Party (PAN) and the Justice Party (PK) are urging Tanjung to step down.

The small Nationhood Faction led by Sutradara Gintings, which has voted with PDI-P throughout the term of the current parliament, has also closed ranks with the anti-Tanjung faction in the House.

This is inadequate to throw Tanjung out, or force him into suspension. There is no unity among PDI-P members on the Tanjung issue.

The most outspoken PDI-P legislators who openly support the removal Tanjung are Dwi Latifa, Haryanto Taslam and Julius Usman, but they are a relatively lonely group. At this stage there is little chance that Tanjung would not survive another vote from the floor. In the first test, PDI-P officially abstained. PKB was left to spearhead what turned into a forlorn protest.

The internal friction within Golkar is apparently more crucial to Tanjung's survival, as his insistence on retaining his chairmanship can be read as bad news for the Suharto and Habibie cronies who want to revive Golkar as a vehicle for their return to power.

Political 'provocateurs' stir emotions

A government source told Laksamana.Net that in the cabinet meeting Monday, at least three former government officials were mentioned as those allegedly masterminding the anti-Megawati demonstrations.

They are former Armed Forces Commander Wiranto, Former Finance Minister Fuad Bawazier and former Cooperatives Minister Adi Sasono.

In terms of the political constellation in Golkar, all three have a common interest in controlling Golkar as their vehicle in the 2004 general election. Akbar Tanjung is seen as an obstruction to their political agenda.

Soon after the original court decision to sentence Akbar to three years in jail, Fuad Bawazier tried to launch a political guerilla action by trying to enlist pro-Tanjung groups from the alumni of the Muslim Student Association (HMI) faction in Golkar to take sides with Amien Rais and support the overthrow of Tanjung.

Adi Sasono's approach was different. His rivalry with the Tanjung faction in Golkar dates back to 1999, just a few months prior to the general election. When Sasono realized that the pro-Habibie faction in Golkar was less powerful than Tanjung's, and had failed to articulate his own agenda through Golkar, he quit from Golkar and built his own party, the People Democratic Party (PDR).

PDR fronted the poll as a party of the poor, but proved to have no political base. Some analysts believe his alleged role in masterminding the demonstrating students against the incumbent government is an act of revenge.

But Tjahyadi Budiman, an activist from the Indonesian National Student Movement (GMNI), told Laksamana.Net that Adi Sasono and his political operators have been consolidating their forces in Bandung, especially among his supporters at the Bandung Institute of Technology (ITB).

Wiranto's role in the 1999 poll was to support Tanjung against his superior, former Armed Forces Commander and Defense Minister Gen. Edi Sudrajat.

In doing so, he was seen as continuing to align himself with B.J. Habibie, and fell from grace along with the former President and lost his grip on Golkar. Still confident that he can become president, it has also been in his interests to boost the level of political tension.

Politics not law drives corruption cases: analysts

Jakarta Post - January 20, 2003

Berni K. Moestafa, Jakarta -- Corruption charges against politicians and state officials abound, but analysts say they probably have more to do with attacking political foes rather than with eradicating corruption.

House of Representative Speaker and Golkar Party chairman, Akbar Tandjung, was sentenced last week to three years imprisonment over graft charges by the Jakarta High Court in a verdict that has surprised legal experts for its independence.

Whatever the verdict might have been, analysts said it was difficult not to see the political setting surrounding it.

"We seem to be mixing efforts to uphold the law with those to attack political enemies," political analyst Riswandha Imawan of the Gadjah Mada University (UGM) told The Jakarta Post on Sunday.

Only a year away from the first ever direct presidential elections, the high court verdict has damaged Akbar's chances of winning the race.

It has also put to test the loose coalition between Golkar and the country's biggest party, the Indonesian Democratic Party of Struggle (PDI-Perjuangan) which President Megawati Soekarnoputri chairs.

Megawati is relying on Golkar to fend off smaller but vocal opposition parties at the legislative branch. Her party has so far refrained from putting pressure on Akbar over the graft scandal, but priorities may have changed with the upcoming election.

Riswandha added the risk of political interference was also high in the work of the Public Servants' Wealth Audit Commission (KPKPN).

The state-founded yet independent commission has embarrassed high-ranking officials like Attorney General M. A. Rachman and the three judges who declared bankrupt the Canadian-based insurance firm Manulife, by uncovering their concealed wealth.

Now it plans to summon another 31 state officials over their questionable wealth reports. Among them are Chief Justice Bagir Manan, Golkar chairman Akbar, and Ginandjar Kartasasmita, a Golkar figure and also a deputy chairman of the People's Consultative Assembly.

Also on KPKPN's list is Roy B. B. Janis, chairman of the PDI Perjuangan faction in the legislative body, State Minister of State Enterprises Laksamana Sukardi and former finance minister turned government critic at the People's Assembly, Fuad Bawazier.

But, targeting such names a year ahead of the general election could call into question the commission's independence. "KPKPN should beware of becoming a political tool," said Riswandha.

The commission deputy chairman Abdullah Hehamahua said that KPKPN had operating procedures to minimize chances of outside interference.

So far no political party seems to be benefiting from KPKPN's cases, indicating it may still be acting on its own, said Daniel Sparinga, a political expert of Airlangga University in Surabaya, East Java.

"KPKPN doesn't seem to be benefiting anyone probably because most people aren't clean to begin with, and they fear it might be used against them too," he explained.

Just over three years old KPKPN is already facing liquidation after legislators agreed to replace it with an anticorruption commission that lacks KPKPN's powers.

Riswandha said that legislators had actually more leeway in hurling corruption charges through the commission due to their immunity status. The privilege protects legislators against arrests without the president's permission. He added that blowing up corruption cases could become effective in ending one's political career.

The issue was central in the 1998 students reform movement which toppled President Soeharto's three-decade rule.

Still little progress have been made in combating corruption and a 2002 year-end report by the Indonesian Corruption Watch (ICW) said the malady had become worse under President Megawati.

It said that any efforts to eradicate corruption "almost never come from above [the government and the House]."

Akbar urged to heed virtue and quit post as speaker

Jakarta Post - January 20, 2003

Nana Rukmana and Kurniawan Hari, Cirebon/Jakarta -- The move to clip House of Representatives Speaker Akbar Tandjung's wings has taken a new turn following a Jakarta High Court verdict against him with at least 75 legislators demanding his suspension.

Deputy House Speaker Muhaimin Iskandar said over the weekend more legislators looked like following suit and the effort to sideline Akbar would depend solely on how significant was the vote of no- confidence against Akbar.

"There is no ruling that can force Akbar to stay out of office except the will of the majority in the House," Muhaimin said on the sidelines of an anniversary celebration of his National Awakening Party in Cirebon, West Java.

Akbar was elected House speaker by a majority vote in 1999 and survived the post despite mounting pressure dating back to early last year when the Attorney General's Office named him a suspect in a graft case involving a State Logistics Agency fund.

The Central Jakarta District Court found him guilty and sentenced him to three years in prison last September. The Jakarta High Court upheld the verdict on Friday, but, like the lower court, failed to order Golkar Party chairman Akbar to serve his prison term. Analysts predicted the higher court verdict would prevent him from running for president in 2004.

Calls have been mounting for Akbar to relinquish his position in an effort to restore the tainted image of the legislature. Legislators say Akbar's resignation from the House would benefit both the legislative body and Akbar himself.

Meanwhile, the verdict has worsened friction among leaders of the Golkar Party, the nation's second largest party after the Indonesian Democratic Party of Struggle (PDI Perjuangan) under President Megawati Soekarnoputri.

Many Golkar leaders have urged Akbar to give up his posts as Golkar chairman and House Speaker, but Akbar's supporters jumped to the defense of their leader.

Ahmad Farhan Hamid and Sutradara Gintings who chair the Reform faction and Indonesian Nationhood faction respectively at the House suggested on Saturday that Akbar step down.

"The district court and the high court have found Akbar guilty. It is Pak Akbar's moral responsibility to quit," Farhan told The Jakarta Post on Saturday. He added that if Akbar kept his position, it would shatter the already-tainted image of the House.

Sutradara meanwhile offered another solution, suggesting that Akbar suspend his official duties while focusing on the legal process.

He criticized many legislators who rejected a proposal to form a committee of inquiry into Akbar's case, saying that the rejection had hampered the House from making a recommendation on Akbar's fate.

Satjipto Rahardjo, a legal expert at Diponegoro University in Semarang suggested that the House take action to revise Akbar's position as House Speaker.

He acknowledged that his request was based on moral virtue rather than legal principle. "If we still have moral principles, we would not accept that the prestigious legislative body is headed by a convict," Satjipto added.

Separately, Golkar's cochairman Fahmi Idris revealed that friction had worsened among party's leaders.

One group is of the opinion that the verdict by the High Court is not the end of the legal process, therefore Akbar's position as chairman of the party and House speaker must not be questioned.

Another group say that the decision is final and urge the dismissal of Akbar. "We will discuss that issue at a leadership meeting scheduled for February," said Fahmi who admitted that he was among those demanding that Akbar resign.

Fahmi added that during the leadership meeting in February his group would call for a party congress to discuss, among other things, revisions to the party's platform and agenda, as well as the replacement of Akbar.

Regional/communal conflicts

Poisoning the peace in the Spice Islands

Asia Times - January 24, 2003

Bill Guerin -- A key Indonesian Christian leader working for an end to the violence in the Spice Islands (Malukus) is reported to have been poisoned while in police custody in Palu, the capital of his native province of Central Sulawesi.

Reverend Rinaldy Damanik, 43, head of the Crisis Center of Central Sulawesi and leader of the Poso region Christian Synod, was stopped by police last August 1 in Peleru, Sulawesi. Police reportedly found 14 home-made guns and ammunition in the car Damanik was traveling in.

Christian Solidarity Worldwide (CSW) this week cited medical reports that indicate an attempt was made to kill Damanik with insect poison in his food on December 26, three days after police moved him to Palu without telling his lawyers or family. Amid increasing concerns for his safety, he has now been moved to the custody of the Central Sulawesi High Court.

Damanik has disputed the police version of the event last August, saying that when they allegedly found the weapons, he was some 50 meters away and had only read about the weapons in press reports quoting police. Damanik suggested that the police planted weapons in his car so they could detain him because of his past criticism of police conduct in the province.

Nonetheless, the pastor was eventually arrested and detained on August 22, though three attempts to get him before judges in the local High Court have failed, as police have not produced sufficient evidence to substantiate their allegations.

Damanik has been a key supporter of the reconciliation process between Christians and Muslims and has

Lasting peace in the Malukus, where some 9,000 people have perished and three years of bloody combat has spawned more than half a million refugees, is crucial to rebuilding the shattered islands and to strengthening religious tolerance in the rest of the country.

Asia Times Online Wars and enemies of the state (Aug 24, '02) been an outspoken critic of the police and government's perceived lack of commitment to stop the violence in the region. His supporters see the arrest as a bid to silence him and appease Poso extremists, who, with influential supporters in both the government and the military, are thought to be intent on sabotaging the fragile peace process.

The Crisis Center of the Churches in North and Central Sulawesi says there is evidence that witness testimony against Damanik was obtained using torture. His lawyers have been refused access to the case evidence, unusual even in Indonesia, and he has been refused bail because of dubious prosecution allegations of witness tampering.

Damanik was charged with violating an emergency law that prohibits owning or controlling weapons or ammunition without permission. If found guilty he could face up to 12 years in prison or even the death penalty, though no date for a trial has been set.

Two other Indonesian pastors are languishing in a Sulawesi prison. In 1998 Reverend Robert Martinus, then 42, and Reverend Yanwardi Koto, 36, were sentenced to six years and seven years respectively on charges of kidnapping, rape and forced conversion of a Muslim girl.

Damanik is a different breed altogether. He was a signatory of the state-sponsored agreement in December 2001, the Malino Peace Accord that ended more than two years of intermittent clashes between Muslims and Christians in the Poso area. Some 500-1,000 people have been killed and tens of thousands left homeless as a result of clashes between Muslims and Christians in Poso.

After this pact Damanik was one of those tasked with informing the international community of attacks and human-rights violations in the area.

When he was stopped by the police in August he had been coming to the aid of Christians who had been attacked by what he claimed was an estimated 60 Islamic militants who used automatic weapons. The attack came just hours after delegates from Poso concluded a second round of government-sponsored peace talks in Palu.

These were part of a series that followed the Malino pact. Several months of calm had ensued and there were genuine hopes of a lasting settlement.

Unfortunately the militant Laskar Jihad, which unilaterally disbanded shortly after the Bali bombings last October 12, rejected the peace pact.

Last April, violence flared up in Ambon with Laskar Jihad storm troopers waging mini-wars on the Christian community, and in July further attacks on villages threatened to destabilize the situation seriously.

An Italian tourist, Lorenzo Taddei, 34, was killed when unidentified gunmen opened fire on the bus he was traveling on. Four Indonesian passengers were also hurt in the incident.

Finally, in August, came the attack that killed five villagers in Poso district and which resulted in the pastor coming under police investigation. Five churches were burned and hundreds of houses destroyed in the violence that sparked immediate fears of a further escalation of the violence that has plagued Poso since religious hostilities erupted in December 1998.

The wave of incidents came in the wake of a seemingly odd statement from Jakarta that a small group of the army's Special Forces (Kopassus) had been sent to the area to search for alleged foreign forces reportedly sighted by local residents.

In the course of the Bali investigation it was found that some foreigners had indeed been training at Islamic "terror" camps in Sulawesi. Though there was no suggestion that they had ever attacked local Christians, it was noted that al-Qaeda had established a training camp in Indonesia and was assisting jihad fighters in Maluku and Central Sulawesi. Even Christians were said to have run training camps in Sulawesi.

To suggestions that the militant Laskar Jihad had been responsible for the latest round of violence, Coordinating Minister for People's Welfare Jusuf Kalla, who has been an earnest and genuine player in the path to peace, simply said at the time: "It is not their style."

Kalla, who chaired the peace talks, spoke with some authority as a native of the region, but nonetheless, his dismissal of militants' involvement flew in the face of established fact.

On April 26, the Laskar Jihad commander Jaffar Umar Thalib told several thousand worshippers at the Alfatah Mosque in Ambon, "Our ... focus now must be preparing for war."

Thirty-six hours later, 13 people, including two babies, lay dead in nearby Soya village where some 30 Christian homes were razed to the ground and the Protestant church left in ruins. Survivors of the Soya attack recounted hearing the assailants, who wore face masks, speaking in Javanese and shouting "Allah Akbar" (God is Great).

A week later Thalib, in a radio broadcast, told Muslims to "write out their wills ... get out all your weapons ... [and] fight against them [the Christians] to the last drop of blood". He was arrested a day later and charged on suspicion of sowing religious hatred but later released to await trial.

During his subsequent trial in Jakarta last month, prosecutors recommended only a one-year sentence on charges of inciting violence.

Church and aid groups believe the Sulawesi peace process remains balanced on a knife-edge and Damanik's case will be pivotal in charting the eventual path to peace.

The Crisis Center says that by comparison with the Thalib case, the decision to proceed with Damanik's trial is a travesty of justice and they are pressing the international community to urge Jakarta to intervene before tensions in the area escalate. Mona Saroinsong, the Crisis Center coordinator, warns that "if Muslims and Christians at the grassroots see injustice done, it will seriously damage the peace process and the government's credibility".

On the other hand, she adds: "If the national government ensures that the case is run fairly, it will restore both communities' faith in the government's commitment to the peace process."

Mona Saroinsong says the police have tried to get Damanik to name names and may use his case as an excuse to arrest other Christians whom they will harass to try to implicate Damanik, as they have no real evidence.

The Crisis Center is calling on the international community to urge Jakarta to investigate the actions of "corrupt and irresponsible regional authorities" and to ensure the trial is run fairly and justly according to the law with no pressure on the court to find Damanik guilty.

Another pastor, Reverend Jacky Manuputty, who has been a witness to earlier attacks and was one of the delegates in the Malino peace talks, sums up what is at stake and why Jakarta needs to act.

Saying that most Muslims and Christians in the Malukus know the violence must stop so they can provide a future for the next generation, Manuputty concludes, "We have to believe that the Malino agreement is still holding because we have no choice. It has to succeed, otherwise the Malukus are finished. We are begging the government to do their job and to implement the law- enforcement and security provisions which they agreed to."

Human rights/law

Human rights commission compromised?

Radio Australia - January 22, 2003

The former head of Indonesia's national human rights commission says the agency's independence is under threat because of recent legislative changes. Asmara Nababan was a founding member of the commission and served as its General Secretary from 1999 until last year. He resigned after the parliament passed new laws which fundamentally changed the operation of the commission and its relationship to government.

Presenter/Interviewer: Peter Mares

Speakers: Asmara Nababan, ex-General Secretary Indonesia's Human Rights Commission

Mares: In 1993, when the dictator Suharto set up Indonesia's national human rights commission, few observers expected it to be anything other than a paper tiger. Yet the commission proved to be rather more than that. Despite its limited powers in relation to the government and the military, and despite the failure of Indonesia's courts to pursue the cases it raised, the Human Rights Commission was at least able to bring human rights abuses to light, and put the details on the public record.

Since the fall of Suharto in 1998, the Commission has helped to ensure that human rights is very much part of public debate, according to its former General Secretary, Asmara Nababan.

Asmara Nababan: It's more open .... arguments anymore. meaning that the people become aware of their rights, the fundamental rights.

Mares: Despite this much improved climate, and Indonesia's transition to democracy, Asmara Nababan, fears for the future independence of the Human Rights Commission. Earlier this month President Megawati met with new members of the commission appointed last year -- but according to Asmara Nababan the real test of government's attitude to the Commission will come when it deals with cases that implicate the military.

Asmara Nababan: If the government support the work of the commission ... did not really support the commission .... personnels or generals.

Mares: Asmara Nababan resigned from the Human Rights Commission in October last year. He says part of his reason for stepping down was that new regulations came into force that would have required him, or anyone else in the post of General Secretary, to become a civil servant, directly employed by the Indonesian government.

Asmara Nababan: There is a lot of new arrangements which I believe can affect the independence of these commissions.

Mares: As well as making the General Secretary a civil servant, the new regulations also meant that all staff members employed by the Commission also became government employees. In the past, the commission employed its own staff, outside of government ranks, with their own salary structure. Asmara Nababan fears that poorly paid public servants will be much more open to corruption, and to intimidation by senior government officials.

Asmara Nababan: All the staff, which actually do the job the wors of the commission must be civil servants.

Mares: All the investigators and staff, that sort of thing?

Nababan : Thats right. The commission only makes the policy, controlling and evaluation, but the staff do the jobs works investigations research and so on, they are not independent, because as civil servants they have to obey the government regulations, they have to see their career, they don't want to make trouble with the government. Otherwise they will jeopardise their positions.

Mares: Asmara Nababan is also concerned by the size of Indonesia's national human rights commission -- orginally there were twenty five commissioners, now there are 35 -- he thinks somewhere between five and eight commissioners would be much more efficient.

Asmara Nababan: It's too big. It's difficult to get decisions. It takes time to discuss a simple matter to be agreed by all of the members. It makes the commission slow and work and response to the needs of the people.

Mares: Asmara Nababan says current commissioners are again pushing for a change to the legislation governing its operation -- otherwise he says, its independence will be compromised.

Asmara Nababan: If they don't deliver something they will loose the trust of the peoples. The commission needs the trust of the peoples.

Focus on Jakarta

Pro-Saddam T-shirts to hit streets of Jakarta

Jakarta Post - January 24, 2003

Jakarta -- With war looming in Iraq, Quds Production garment workshop owner Syahrul Arief mass produces tee-shirts supporting Iraqi dictator Saddam Hussein.

Should war break out, sales of the shirts bearing the Iraqi leader's face and the words "Ready for War" and "We Support You", could take off, Arief hoped.

Workers finished the first batch of 50 on Thursday, and a few orders have begun coming in.

Indeed, the buildup to a possible war in Iraq is increasingly worrying moderate Muslim leaders and foreign security experts in Indonesia who fear it would radicalize Muslim opinion and raise the chance of fresh attacks on Western targets.

"I'm responding to Saddam Hussein's fight as his country and people are being attacked by an unjust power," said Arief, as several veiled women hunched over sowing machines nearby.

He claimed his were the first T-shirts of Saddam for sale in Indonesia.

While not everyone supports Saddam in Indonesia, there is genuine concern for the Iraqi people and a perception the United States will attack Baghdad with or without UN backing over allegations the country has weapons of mass destruction.

Diplomats and moderate Muslims expect large-scale protests in the event of any US-led attack on Iraq. Even UN backing for a raid would go down poorly on the streets, they have said.

News & issues

Hamzah Haz revives commie bogeyman

Laksamana.Net - January 25, 2003

After fervently voicing support for alleged terrorists last year in the name of Islamic brotherhood, Vice President Hamzah Haz has ventured onto safer ground by braying about the dangers of communism.

Forget the big problems facing Indonesia, such as corruption, terrorism, religious extremism, poor law enforcement and human rights abuses.

As political altercations intensify ahead of next year's direct presidential election, the vice president is playing it safe by digging up one of the favorite scapegoats of ex-president Suharto's regime.

"If a communist movement still exists in the country, let's crush them together," Haz was quoted as saying by state news agency Antara.

He was speaking Friday in his home province of West Kalimantan at the opening of a conference on a national economy based on Islamic Syariah law, organized by the Indonesian Muslim Intellectuals Association (ICMI).

Haz said Indonesia has no room for communists because it is a country of religious adherents. But the attitude of some Indonesians often runs opposite to religious tenets, he added.

In the past, such warnings about the scepter of communism were used to stifle freedom of expression, particularly criticism of the government and military.

Communism, Marxism and Leninism were banned by the Suharto regime in 1966 and remain illegal. Former president Abdurrahman Wahid did his best to revoke the ban but was thwarted by Muslim hardliners and moderates, as well as remnants of the Suharto era.

Incumbent President Megawati Sukarnoputri has shown no desire to lift the ban, even though some of her staunchest supporters from her days as an opposition figurehead were radical left-wingers.

Communism was the favorite bogeyman of the Suharto regime, which came to power in 1965-66 by crushing the Indonesian Communist Party (PKI) and slaughtering an estimated 500,000 people ? mostly leftists and their alleged supporters or sympathizers.

Throughout the Suharto era, pro-democracy activists and other opponents of the regime were often labeled communists, tried for subversion and thrown in jail.

Following the fall of Suharto in 1998, book titles featuring Marx, Engels and other communist figures began appearing at many campus bookstores across the country.

But Che Guevara T-shirts and dog-eared copies of Das Kapital didn't quite manage to become de rigueur among Indonesian students -- except supporters of the tiny People's Democratic Party (PRD) -- mainly because of the stigma still attached to communism.

Major Indonesian publishing houses in 2001 stopped printing books on communism and many titles were pulled off the shelves following threats of violence by anti-communist groups affiliated to remnants of the Suharto regime. At least one university suspended students suspected of being communists.

Protests Hamzah Haz's warning about communism comes after weeks of mass demonstrations and growing government criticism that forced Megawati's administration to roll back prices of public utilities.

The policy reversal came too late to stop the emergence of a loose coalition of nationalists, socialists, Muslim leaders, student groups, trade unionists and disgruntled politicians aiming to force the president to resign.

In response to the coalition, the nation's top political parties and the military have stood united behind Megawati, warning that it would be unconstitutional to overthrow her.

This bonding among the big parties and the military lends credence to the "elite pact" theory that Indonesia's top politicians and officials will look out for each other, as long as it serves their mutual interests to certain extents, nevermind if that means reneging on pledges to eradicate corruption.

Although Haz stopped short of saying those who want to overthrow the government are communists, observers say he has tried to revive the old fear of communism to discourage radical public expressions of discontent.

Scholars warn of imminent upheaval if injustices persist

Jakarta Post - January 23, 2003

Moch. N. Kurniawan, Jakarta -- Noted scholars warned the government on Wednesday of social upheaval that could explode at any time as people were fed up to the teeth with rampant injustices.

They said the recent increase in utility prices and the amnesties offered to notorious business tycoons were the most conspicuous examples of government policies that had hurt the public sense of justice.

Th. Sumartana of the Indonesian Interfaith Dialog Institute (Interfidei), Masykuri Abdillah of the Syarif Hidayatullah State Islamic University (UIN), and Franz Magnis Suseno of the Driyarkara Institute of Philosophy were among those speaking out.

"Brutal action as a result of frustration over injustices is like a genie waiting to emerge from the bottle," Sumartana, the director of Interfidei, told a seminar on religion, democracy and minority groups on Wednesday.

He said that the people expressed their disappointment through street rallies as the legal institutions were unable to uphold justice and no political institution was able to offer a solution to the current crisis.

"The ongoing antigovernment rallies could signal such frustration and this could lead to social upheaval," he told the Jakarta Post.

Masykuri and Sumartana called for a continuous dialog between religious leaders and politicians to draw up the necessary national agendas to resolve the current problems.

"Communication is the key to resolving the nation's problems," Masykuri told the Post.

Sumartana said the government must also be able to uphold justice and the supremacy of law by reforming the country's legal system.

Magnis called on the government to declare a war on corruption and severely punish those guilty of corruption. "If they do this, I think a lot of the sense of frustration will dissipate," he said.

The wave of antigovernment protests, which has been ongoing for almost three weeks now, continued on Wednesday as some 700 students staged a rally near the residence of President Megawati Sukarnoputri. The protesters urged her to resign for failing to stamp out corruption.

The students, who claimed to represent the University of Indonesia's Student Executive Board (BEM-UI), attempted to reach Megawati's residence in the upmarket Menteng area, but to no avail due to a security cordon imposed by hundreds of riot police armed with rifles and backed up by water cannons, AFP reported, "Reject the government of Megawati and [vice president] Hamzah Haz!" they shouted.

"Today Indonesia's debt is growing even bigger and the people will have to bear the burden while corruptors have been given amnesties," the protesters said in a written statement.

International donors grouped under the Consultative Group on Indonesia agreed Wednesday to extend US$2.7 billion in aid to Indonesia this year to help it meet its budget deficit.

Megawati has been criticized for issuing a decree which rules out criminal charges against former bank owners who have finally settled their huge debts to the state.

There have been daily street protests against Megawati's 18-month administration following the government's New Year decision to raise fuel prices and utility charges.

The government has reduced the steep rises in electricity and fuel prices and delayed a hike in phone charges, but the protesters said the move would not deter them from seeking Megawati's resignation.

The protesters also called for the cancellation of the privatization drive, and for the prosecution of corrupt officials and businessmen.

Megawati, in a speech addressed to her party supporters late Tuesday, challenged her political opponents to compete fairly in the 2004 presidential election instead of seeking her resignation now.

Environment

Decrees issued on illegal logging, activists unimpressed

Jakarta Post - January 24, 2003

Jakarta -- In another effort to curb illegal logging, the government has issued a joint ministerial decree on the transportation of logs and a minister of trade decree on the exports of logs.

But the noted green organization, the Indonesian Forum for the Environment (Walhi), has expressed its skepticism over the effectiveness of the new decrees, saying that past decrees proved to be worthless against the illegal loggers, often backed by the security forces.

Minister of Trade and Industry Rini MS Soewandi, Minister of Forestry M. Prakosa, and Minister of Transportation Agum Gumelar signed the joint ministerial decree here on Wednesday evening, witnessed by Indonesian Military chief Gen. Endriartono Sutarto and police chief Gen. Da'i Bachtiar.

The joint ministerial decree stipulates that the interisland transportation of logs must be carried out by locally-registered vessels.

"Timber transportation must use an Indonesian-flagged vessel that is operated by a local shipping company, or a naval ship," Rini said, as quoted by Antara.

It is not clear, however, what the precise objective of the decree is, although Rini noted that it would allow easier monitoring of log trafficking.

On the same day, Rini signed a ministerial decree to require log exports to be sent by registered exporters.

These registered exporters, which could also be timber companies themselves, have to regularly report to the Ministry of Trade and Industry and the Ministry of Forestry on their planned annual timber production and exports as well as their actual production and exports.

"Therefore, it will be easier for us to track down where the timber products are from," Rini said.

Sudar SA, director general of international trade at the Ministry of Trade and Industry, said that registered exporters had to obtain letters of recommendation from the Forest Industry Revitalization Body (BRIK) for their export plans.

This new mechanism, he said, was aimed at limiting the exportation of illegal logs as all logs would have to go through the registered companies. Now, all traders and exporters can export their logs.

Walhi executive director Longgena Ginting, however, expressed his pessimism over the effectiveness of the new decrees. He noted that the decrees would not be effective in halting illegal logging as long as the government failed to restructure timber- based companies.

"The decrees don't touch the root of the problem. It will be fruitless unless the government takes action to restructure the timber industry," Longgena told The Jakarta Post.

Longgena said the demand for timber products reached some 63 million cubic meters in 2002, far higher than the official national supply of 12 million cubic meters. This meant that there were some 51 million cubic meters of illegal logs used last year.

According to Minister of Forestry M. Prakosa, over 10 million cubic meters of timber was smuggled abroad in 2001 alone.

Many of the smugglers were arrested and brought before the court, but most escaped serious punishment. Many of them were allegedly backed by security officers.

Endriartono acknowledged that a number of TNI officers were involved in illegal logging, but he promised to stop them.

"If there are TNI members protecting log smugglers, I will not hesitate to shoot them. I will also shoot the businessmen who get the TNI members involved in the smuggling." Gen. Da'i also gave a similar promise, saying that he would sack any local police chiefs who turned a blind eye to illegal logging.

Letting Indonesia's forests 'breathe'

Asia Times - January 22, 2003

Bill Guerin -- International aid donors led by the World Bank may, just may, put more pressure on Indonesia to reform its forestry policy. Management of Indonesia's remaining forests is among the topics on the agenda of the 12th meeting of the 30- member Consultative Group on Indonesia (CGI) in Bali this week.

Most donor countries, though themselves large-scale importers of timber products, have consistently slammed Indonesia's environmental stance on sustainable resources.

Although the Indonesian archipelago comprises little over 1 percent of the Earth's land surface, it holds a disproportionately high share of its biodiversity, is host to a wealth of natural riches and contains 11 percent of the world's plant species, 10 percent of its mammal species, and 16 percent of its bird species.

Indonesia also has the world's second-largest reserves of natural forest. These are among the most diverse and biologically rich in the world. They are Asia's largest and the world's third-largest contiguous areas of remaining tropical forests.

Industry experts say these forests have been exploited with little regard for their sustainability as a valuable resource. Corruption in the bureaucracy, military and police have fueled a frenzy of illegal logging, so much so that 5,000 hectares of forest is destroyed every day.

This rampant pillaging of the nation's natural resources is characterized by exploitation for political ends and personal gain and the unprecedented annual loss of nearly 2 million hectares of forest every year, double the rate of the 1980s, spawned by the political and economic instability of the past five years.

With other economic needs taking priority, illegal logging has reached unprecedented levels in post-Suharto Indonesia, and up to 56.6 million cubic meters of logs are felled without permits each year. Rampant corruption in the local and national bureaucracy, weak or non-existent monitoring, and the support of the military have combined to ensure the perpetuation of a top-down laissez- faire approach.

The loss of forest also destroys wildlife habitat. Time is running out for many of Sumatra's remaining natural forests and national parks, which provide a haven for a host of critically endangered species. Thousands of species of mammal, including the Sumatran tiger, Sumatran elephant, Sumatran rhinoceros, orangutan and clouded leopard and sun bear live in the same Sumatran natural habitat.

Pressure on aid donors to look at the deforestation issue in economic terms increased when the Center for International Forestry Research (CIFOR), funded by more than 50 international donors, including the World Bank, called for the government to halt the sale of US$2 billion worth of loans owed by Indonesian pulp and paper firms and plywood factories.

Huge conglomerates such as Bob "Mr Jungle" Hasan's Kalimanis Group and Burhan Uray's Djajanti Group owe almost half of this. Though Hasan, a Suharto crony, is still in jail over forestry- related crimes that caused $75.5 million in state losses, his Kalimanis, with timber holdings spanning nearly 20,000 square kilometers in Kalimantan, has been slammed as "one of the most voracious, barbaric conglomerates in the world".

CIFOR wants to see many of these companies pushed into bankruptcy, in order to reduce the demands on forestry resources. This is by no means a new initiative, though similar pressure in 2001 from the CGI saw little action by Jakarta.

The environmentalists, local and foreign, want Jakarta to commit to a national plan, which would reclaim the vast tracts of land that currently lie idle and properly conserve the primary forest that remains. Government policy, on the other hand, has been to convert forests into palm-oil or rubber plantations, which, of course, further drives deforestation.

Nearly 9 million hectares of land, much of it natural forest and allocated for industrial timber plantations, has been cleared in the past five years, but only 2 million hectares has been replanted. Some 7 million hectares of forest has been approved for planting palm or rubber trees but forestry sources say only 4 million hectares has been planted.

The frenzy of logging that has gripped Indonesia over the past three decades has been ratcheted up by regional autonomy. The shifting of authority from Jakarta to the provinces and thence down to local districts has resulted in even more exploitation of forest resources as the easy path to riches and short-term revenue.

The illegal logs come mainly from Aceh, North Sumatra, Riau, Jambi, West Kalimantan, Central Kalimantan, East Kalimantan, Central Sulawesi and Papua.

Autonomy gave district heads (bupatis) the right to issue small forest exploitation permits (IPPK). Hundreds of logging permits have been issued in forest-rich areas such as East Kalimantan, ostensibly to local community initiatives, which are usually controlled by firms backed by powerful business interests.

Bupatis are limited to issuing permits of up to 50,000 hectares, and governors up to 100,000 hectares. Governors are responsible for any concessions that cover one or more districts and the central government retains control over concessions that overlap more than one province. Some local authorities now often question the status of ministerial decrees.

The heady expansion of the plywood, pulp and paper industries over the past two decades means that demand for wood fiber now exceeds legal supply by some 40 million cubic meters a year, with illegally cut wood accounting for as much as 65 percent of the supply in 2000.

Forestry experts calculate that the widespread illegal logging costs the country an estimated annual loss of Rp30.42 trillion ($3.42 billion) and say 50.7 million cubic meters of timber a year is sold illegally.

Some estimates put the revenue from timber exports at a healthy $10 billion per year but many of the major industry players are among Indonesia's biggest debtors, who owe big bucks to the Indonesian Bank Restructuring Agency (IBRA).

Both the World Bank and the International Monetary Fund (IMF) are said to be ready to support a halt in IBRA's sale of loans and assets belonging to these debtors in advance of a total restructuring of the sector and a review of license holders authorized to fell logs.

According to Ministry of Trade and Industry data on wood-based industries in Indonesia, the needs of the pulp and paper industry together with the plywood and furniture sector's raw material needs amount to some 63 million cubic meters of wood per year. On the other hand, the Forestry Ministry says only 12 million cubic meters were legally felled in 2002. The shortfall confirms estimates that up to 80 percent of timber felled in Indonesia is illegal. This costs the state an estimated $5 billion a year and some $609 million annually in environmental destruction throughout the country.

The wild card is the Indonesian military. The Indonesian Forum for the Environment (WALHI) says most illegal timber is first shipped to Singapore or Malaysia, and then to its final markets in Japan, Taiwan and South Korea. Most shipments carry documentation that, with the connivance of the police, customs and navy, is accepted to be legal.

TNI (Indonesian armed forces) chief General Endriartono Sutarto acknowledged last week that military personnel were behind many illegal logging operations in the country and promised to crack down on them. Sutarto promised a new cooperation between the military and the Forestry Ministry and local administrations to arrest those involved in the illegal logging.

"They must be severely punished. Their illicit activities have not only inflicted financial losses on the state, but they are also destroying the sustainability of out forests," he told a news conference after meeting with Forestry Minister Muhammad Prakosa.

Though this willingness by TNI to be seen to cooperate in combating illegal logging was lauded as a milestone, it fell short of an admission that the military as an institution was partly to blame for protecting those involved in illegal logging.

The donors in Bali would have noted the general's candid and timely public words, but a few days earlier a report from the Environmental Investigation Agency, a non-profit group based in London and Washington and funded by Indonesia's major donors, blew the whistle.

The EIA report, "Above the Law: Corruption, Collusion, Nepotism and the Fate of Indonesia's Forests", said that the military, through its private businesses, has logged illegally and operated sawmills to cover the daily needs of troops. EIA wants donors to consider linking future financial aid to proof that Jakarta is cracking down on illegal logging and they condemn the police and the courts for failing to prosecute illegal loggers, even when other agencies, including the Ministry of Forestry and navy, intervened.

Indonesian legislator and timber baron Abdul Rasyid was cited as the main player in the rape of Kalimantan's forests. Kalimantan province, the Indonesian part of the island of Borneo, has been hit worst by the illegal logging. Rasyid's company, Tanjung Lingga, has consistently looted timber from Kalimantan's Tanjung Puting National Park, says the report, prepared with the help of local activists, adding that Rasyid and those who work for him have used violence and intimidation, attacked researchers and tried to kill an Indonesian reporter.

The issue of illegal logging and the trade in illegal timber commands center-stage attention worldwide. Much of the spleen has been vented on Indonesia as one of the world's leading timber- producing (and -destroying) nations, though Malaysia's demand for cheap raw materials has helped drive this destruction.

Malaysia has a lot to answer for. It is the biggest exporter of tropical timber in the world and also a major exporter of wood furniture. In 2000 the value of Malaysia's exports of tropical logs, sawn, ply and veneer was in excess of $2.4 billion, and wood-furniture exports were valued above $1 billion.

Malaysia's own log production has reduced dramatically in recent years, to about 22 million cubic meters, but, like Indonesia, installed capacity of the country's wood-processing industry outstrips production and is estimated to need more than 40 million cubic meters a year.

Illegally logged timber from Indonesia makes up the shortfall and highlights the role of Malaysia in undermining international efforts to control the problem. An estimated 3 million cubic meters of illegally felled Indonesian timber enters Malaysia every year -- a trade worth more than half a billion dollars.

In 2000 environmental organizations from the Asia-Pacific region met in Kuala Lumpur, at a convention known as Ring of Fire, and announced publicly that the most exploited region was the Malaysian state of Sarawak. Malaysia did not attend.

A year later, in September 2001, Southeast Asian countries together with Japan, China, the United Kingdom, the United States and the European Union met in Bali for a ministerial-level forest law-enforcement conference. They all signed up to the Bali Declaration, a far-reaching agreement to work together to tackle the problem within the region. Again, Malaysia was notable by its absence. Jakarta is expected to get some $3.2 billion in fresh loans from the CGI to promote equitable growth, investment and poverty reduction. There is unlikely to be much reduction in poverty for local community's affected by the continued deforestation.

Sustainable development is little more than a textbook theory. The government has long deprived local communities' participation in the management of the surrounding forests that succor and sustain the livelihoods of millions of forest-dwelling or forest-dependent Indonesians.

Everything, as so often in Indonesia, revolves around money, not principles or ethics. Far from benefiting the rural poor, forest management has been subverted to serve the interests of the ruling elite. Logging concessions are dished out to powerful players, who can pay the most. Even today only 10 companies control 45 percent of the total logging concessions in the country.

President Megawati Sukarnoputri, addressing an International Tropical Timber Organization (ITTO) meeting in Bali last year, called for a logging moratorium in order to stop forest destruction and loss, citing the need to let the forests "breathe". As always, the good lady can be relied on for looking at issues in the simplest of dimensions.

The problem, however, is immense and can only be properly tackled by a complete overhaul of forest management in Indonesia boosted by international pressure and sanctions on buyers and traders.

Last June Prakosa kicked off the government's slow-moving attempts to redress the balance. A permanent ban was imposed on log exports and wood chips. The forestry minister also plans big cuts in the permitted annual quota for timber felling, to move more in line with sustainable levels and match the capacity of the sawmills closer to the volumes of timber cut down legally.

Searching and unannounced audits of some of the largest wood- processing mills are also in the cards and the government will allow logging companies to produce only 6.8 million cubic meters this year, down about 50 percent from 12 million to 15 million cubic meters last year.

Internationally, the UK was first to stop the rot through a ground-breaking agreement with Jakarta to work to stop illegal logging and the trade in stolen timber, amid pressure for all timber sold on the European mainland to be clearly marked as having come from sustainable forests. Greenpeace has also put pressure on Western wholesalers and retailers to prove that timber they sell is legal.

A concerted, donor-led campaign to instigate and enforce bans on shipments of illegally cut timber and accept responsibility, with Jakarta, for the management of Indonesia's forests, would have much more impact than the annual soapbox speeches.

China and Japan have the biggest appetite for Indonesian wood, and unlike major Western timber importers, so far, at least, have had no qualms about the environmental and conservancy issues posed.

After all, as Environment Minister Nabiel Makari points out, illegal logging only succeeds because of those who want to keep on buying its products. Just as in the international drug trade, he says.

Islam/religion

Religious leaders condemn attempts to legalize abortion

Jakarta Post - January 23, 2003

M. Taufiqurrahman, Jakarta -- A group of religious leaders publicly condemned abortion on Wednesday, saying it was against the teaching of all religions and against human values.

In a joint statement, representatives from five religions denounced abortion in the country and all attempts to legalize the practice through an amendment to the 1992 Health Law.

Calling on the public to preserve life from conception, they said that it was the duty of the community to prevent unwanted pregnancy and uphold family values.

"Under no circumstances is abortion condoned by any religion. It is prohibited by all religions, as it can be categorized as murder," said Umar Syihab of the Indonesian Ulemas Council (MUI).

Umar added that abortion was morally unjustifiable unless it was in order to save the life of the mother.

Another leader, I.N. Suwandha from the Hindu Community Association, said that regardless of the method applied, abortion was sinful.

Abortion is widespread in Indonesia as proven by a report that estimates that the number of abortions reaches 2.5 million annually. Of this, 1.5 million of the abortions are preformed on young girls who fall pregnant out of wedlock.

The religious groups also appealed the public to support a campaign against abortion spearheaded by the National Commission for Love Life (Komnas GSK). The campaign was launched to counter a drive to legalize abortion through an amendment to the Health Law.

"There are groups of people in society who want to revise the Health Law so that it provides legal grounds for abortion," said Angela Abidin, head of Komnas GSK, citing a law that disallows abortion except under life-threatening conditions.

Prevailing Law No. 23/1992 clearly prohibits abortion. The law states that professional medical workers may perform an abortion only after the consent of the biological parents is gained, providing that the woman's life would be endangered by going through with the pregnancy.

"The Ministry of Health has submitted a bill to amend the prevailing Health Law that gives more leniency for abortion," said Marius Widjajarta from the commission.

The draft proposes that to undergo an abortion, a woman does not need the consent of the baby's father as long as she can give a compelling reason why carrying a baby to full-term would endanger her life.

"If the draft is approved by the House of Representatives, abortion will become a legal issue, without taking morality into consideration," Marius said. "We urge the government not to revise the law as it will become legal grounds for doctors to help abort unwanted pregnancies, especially among teenagers," Marius said.

He added that the Health Law had been poorly implemented, so that revising it would be useless.

"For medical workers, the full implementation of the law is still a dream. How can the government revise a dream that hasn't come true?" Marius said.

International solidarity

Solidarity campaign wins activists' release

Green Left Weekly - January 22, 2003

Pip Hinman -- When Indonesian judge Asril Marwan on December 30 sentenced Joy-Lee Sadler to four months' jail and Lesley McCulloch to five months, he declared that McCulloch should have received a harsher sentence because her actions "could have threatened national security and the territorial integrity of the Republic of Indonesia". The women could have been sentenced to five years in jail.

The prosecution unsuccessfully tried to make charges relating to the possession of military secrets stick.

A four-month jail sentence for the "crime" of misusing a visa sounds pretty grim, especially if that jail is in Aceh. However, the sentences took into account the time that Sadler and McCulloch have already spent in jail.

Sadler was released on January 10 after being on hunger strike for three months. She became quite ill, in part due to not being able to receive treatment for her HIV-related illness. The previous week, Sadler had been so ill she was allowed out of jail to seek medical treatment. However, she was refused treatment at three different clinics because of the stigma associated with her illness. She said: "I felt so sick I thought I would die. And just briefly, I felt it would be a welcome relief." Sadler has vowed to return to Aceh and initiate an education program on HIV and related illness in Aceh.

McCulloch is due to be released in early February. Her January 2 message from Aceh is typical of the courage and determination she has shown throughout her ordeal: "We both have a dream for the coming year; that those who have campaigned so tirelessly for us will now turn their attention to the broader issues of injustice in Aceh ... Our solidarity with the Acehnese working for peace and justice will make a difference." The Indonesian judge's decision to impose short sentences reflected the amount of pressure that the international solidarity movement has applied on Jakarta over the cases of the two women.

Sadler and McCulloch were picked up at a military check-point in south Aceh on September 10. They were beaten, sexually harassed, dumped in jail and were refused access to lawyers for weeks. A campaign for their release was immediately launched by solidarity groups in Britain, Scotland, Australia and the US, with some high-profile politicians taking an interest.

Scores of academics and others signed protest letters and messages, which inundated various Indonesian ministers' offices. In the US and Australia, pickets and rallies were also organised, and sections of the mass media reported the cases.

While these were the first such sentences to be handed down to foreigners in Indonesian legal history, Damien Kingsbury, a senior lecturer at Deakin University in Victoria, said the punishments appear to have been a compromise.

"There is little doubt that the TNI [Indonesian military] was angry with McCulloch and wanted to punish her personally", Kingsbury commented in an article in the January 1 Melbourne Age. The treatment the two women received from the TNI sends a clear signal to researchers and academics that it will not tolerate "foreign interference in domestic issues", especially "those who continue to expose the TNI's uglier side".

Military ties

Activists caution US over military training

Jakarta Post - January 25, 2003

Moch. N. Kurniawan and Tiarma Siboro, Jakarta -- US senators voted down on Thursday an attempt to limit US military training for Indonesian soldiers, a move that Indonesian activists said would further dampen efforts to promote human rights in the country.

According to Agence France-Presse, the Senate voted 61-36 to reject an amendment by Senator Russ Feingold to omnibus spending bills that would have restricted a program for Indonesian military officers to come to the United States for training and education.

Budget bills for 2003 still making their way through the US Congress would restore the program over the objections of legislators and rights campaigners who say Jakarta must act first to punish past human rights abuses.

Military cooperation between the two countries was sharply cut in 1999 when Congress passed the so-called Leahy Amendment following Indonesian-backed violence in East Timor.

All military aid was suspended until certain conditions were met, including effective measures to bring to justice members of the armed forces and militia groups suspected of rights abuses.

Members of the Indonesian Military (TNI) were implicated in rights abuses when pro-Jakarta militias went on the rampage after East Timor voted for independence in 1999.

Indonesian rights activist Ori Rahman from the Commission for Missing Persons and Victims of Violence regretted the US decision, saying any aid to TNI would only encourage its members to commit more human rights violations. "They should give the assistance only after TNI reforms itself, including its budget accountability," he said.

Another rights activist, Hendardi of the Indonesian Legal Aid and Human Right Association, said the US assistance was politically motivated to help Indonesia crack down on suspected terrorists. "The US government once stopped the assistance due to its concern over human rights violations. Now they have resumed the aid to pave the way for the war against terrorism," he said.

Military analyst Kusnanto Anggoro from the Centre for Strategic and International Studies said the vote in the US Senate would surely benefit TNI through the resumption of the International Military Education and Training (IMET) program.

Kusnanto said any US-provided military training should be focused on human rights, supremacy of the law and good military governance.

He added that the US Senate's decision signaled that the US government had become more tolerant of human rights abuses committed by TNI officers and the disappointing results of human rights trials, in which a number of military and police officers were found not guilty of rights violations in East Timor.

TNI spokesman Maj. Gen. Sjafrie Sjamsoeddin gave a cautious response to the vote, saying that TNI would take into account public concerns about rights issues.

"Until now, this country and the international community are still unsatisfied with the results of the ad-hoc [human rights] trial, even though the legal process against those military and police officers accused of responsibility for the abuses was transparent.

"Critics also say that we [the military] are reluctant to acknowledge concerns over rights issues," Sjafrie said, adding that TNI would only participate in the IMET program if "it is aimed at restoring a military-to-military relationship as well as improving TNI's professionalism".

Senate votes down restrictions on military training

ETAN Press Release - January 23, 2003

"Today's Senate floor vote against an amendment offered by Senator Russ Feingold (D-WI) to restrict International Military Education and Training (IMET) for Indonesia is an outrage which jeopardizes the rights of Indonesians, East Timorese and Americans living in Indonesia," said Karen Orenstein, Washington Coordinator of the East Timor Action Network (ETAN).

"The Indonesian military has sabotaged international efforts to attain justice for crimes against humanity committed in East Timor, exonerated itself of the strong implication that its elite Special Forces recently murdered two US teachers, and beat a US nurse-yet the Senate voted to give the military a level of support not seen in more than a decade.

Why is the Senate rewarding this behavior?" asked Kurt Biddle, Coordinator of the Indonesia Human Rights Network (IHRN). "These Senators could not have sent a more ill-timed message. Never before has the Indonesian military displayed such boldness in attacking US citizens as it did in 2002.

It's not difficult to imagine how the TNI treats Indonesian citizens," said Orenstein. "The Senators who voted against the amendment have effectively given US backing to continued gross human rights violations."

Indonesian police and non-governmental organization investigations point to TNI responsibility for the murder of two US citizens and one Indonesian, and the wounding of eight other US citizens, including a six-year-old child, in the Indonesian province of West Papua in an ambush in the mining operations area of the Louisiana-headquartered Freeport-McMoRan.

Patsy Spier, who was wounded and whose husband was killed in the ambush said, "Thank you to all the Senators who voted for Senator Feingold's amendment. The eight American survivors of the West Papua, Indonesia, ambush of August 31, 2002, continue to strive for justice."

The TNI has successfully evaded accountability for crimes against humanity it committed in East Timor in 1999 and the previous 23 years of illegal occupation. Indonesia's ad hoc Human Rights Court on East Timor has been internationally acknowledged as a sham. Thus far, the court has acquitted eleven Indonesian defendants. The architects of the scorched-earth campaign in East Timor remain free, often wielding significant power within the government and security forces.

Joy Lee Sadler is a US nurse who traveled to Aceh, Indonesia, to treat the sick and injured in refugee camps. She was recently released from four months in Indonesian jails for minor visa violations. Sadler was physically assaulted, threatened and held incommunicado for six days by Indonesian security officers. "The Bush administration and some in Congress have pushed for resumption of military ties with Indonesia in the name of fighting the 'War on Terror.

But the TNI continues to terrorize Indonesian civilians, including the torture and murder of human rights defenders and political opposition figures," said Biddle. "Further, the TNI itself has conspired with and supported Islamic fundamentalist militant groups such as the Laskar Jihad."

"Regardless of what terms Congress or the administration uses to phrase IMET resumption, the message heard by the TNI will be the same. The restoration of prestigious US military training will undoubtedly be seen as an endorsement of business as usual," said Orenstein.

"This is a major setback for military reform and democracy in Indonesia. It gives a green light for the Indonesian military to continue its use of brutal tactics against civilians, especially in Aceh and Papua," said Biddle.

ETAN and IHRN thank Senator Feingold, along with amendment co- sponsors Senators Barbara Boxer (D-CA), Richard Durbin (D-IL), Patrick Leahy (D-VT), and Ron Wyden (D-OR), as well as other Senators who voted for the amendment. Thirty-six Senators voted in favor of the amendment, and 61 against.

Rights group blast US vote on military ties with Indonesia

Associated Press - January 24, 2003

Jakarta -- Human rights groups reacted angrily Friday to a US Senate decision not to block military ties with Indonesia over reports that army troops killed two American schoolteachers in Papua province.

"The problem is that the Republicans don't care about human rights," said Asmara Nababan, a leading Indonesian rights activist.

On Thursday, the Senate voted 61-36 against an amendment offered by Wisconsin Democrat Sen. Russ Feingold to freeze US military ties with Jakarta amid moves by the Bush administration to expand contacts. In the amendment, which was co-sponsored by five other Democrats, Feingold demanded an investigation into the deaths of the two Americans.

Indonesian police have indicated that the country's military was responsible for the August 31 ambush on a convoy of buses in which an Indonesian teacher also died and eight other Americans were wounded. At least three American FBI agents are in Indonesia to help investigate the case.

In a separate killing in Papua, Indonesia's easternmost region, seven special forces soldiers are standing trial on charges of assassinating Theys Eluay, the province's leading politician and independence leader.

"The senators who voted against the (Feingold) amendment have effectively given US backing to continued gross human rights violations," Karen Orenstein, coordinator of the East Timor Action Network, said in a statement.

Washington cut all military ties with Jakarta in 1999, after Indonesian troops razed the province of East Timor following its pro-independence vote in a UN-sponsored referendum. At the time, Congress passed a bill requiring the president to certify that Indonesia's armed forces had cleaned up their human rights record before ties could be resumed.

However, the Bush administration believes that the cooperation of Indonesia -- the world's most populous Muslim nation -- is essential in the global war on terrorism. During a visit to Jakarta last year, US Secretary of State Colin Powell announced plans to spend US$50 million over three years to assist Indonesia in the anti-terrorism struggle.

Most of the money is earmarked for training and other assistance to the police. But US$400,000 would be spent on training Indonesian army officers under a Pentagon program known as International Military Education and Training.

"The Bush administration and some in Congress have pushed for resumption of military ties with Indonesia in the name of fighting the 'War on Terror.' But the [army] continues to terrorize Indonesian civilians, including the torture and murder of human rights defenders and political opposition figures," said Kurt Biddle, an analyst with the Washington-based Indonesia Human Rights Network. "This is a major setback for military reform and democracy in Indonesia," said Biddle.

US Senate votes down bid to restrict military training

Agence France Presse - January 24, 2003

US senators voted down an attempt to limit US military training for Indonesia, triggering outrage from campaigners striving to bring East Timor war crimes suspects to justice.

The Senate voted 61-36 to reject an amendment to omnibus spending bills that would have restricted a program for Indonesian military officers to come to the United States for training and education.

Budget bills for 2003 still making their way through Congress would restore the program over the objections of legislators and rights campaigners who say Jakarta must act first on war crimes trials.

Military cooperation was sharply cut in 1999 when Congress passed the so-called Leahy Amendment following Indonesian-backed violence in East Timor.

All military aid was suspended until certain conditions are met, including effective measures to bring to justice members of the armed forces and militia groups suspected of rights abuses.

Members of the Indonesia armed forces were implicated in rights abuses when pro-Jakarta militias went on the rampage after East Timor voted for independence in 1999.

"Today's Senate floor vote against an amendment offered by Senator Russ Feingold to restrict [the training] for Indonesia is an outrage which jeopardizes the rights of Indonesians, East Timorese and Americans living in Indonesia," said Karen Orenstein, Washington Coordinator of the East Timor Action Network.

"The Indonesian military has sabotaged international efforts to attain justice for crimes against humanity committed in East Timor. The senators who voted against the amendment have effectively given US backing to continued gross human rights violations."

Members of the Bush administration have argued the United States must resume training Jakarta's armed forces to help them crack down on Islamic militias with alleged links to al-Qaeda following the September 11, 2001, attacks on the United States.

Congress first voted to restrict the program after the November 1991 Santa Cruz massacre of more than 270 civilians in East Timor. All military ties were severed in September 1999 after the militia rampage.

Economy & investment

Indonesia says wants end to IMF funds this year

Reuters - January 21, 2003

Joanne Collins, Bali -- Indonesia's government said on Tuesday it wanted an end to IMF funding this year, seeking to break a financial lifeline in place since the Asian financial crisis savaged the country five years ago.

"Our course remains, with your support, to restore financial normalcy and end the IMF programme at the end of this year," chief economics minister Dorodjatun Kuntjoro-Jakti told an annual meeting of donors on the resort island of Bali.

A $5 billion loan pact with the International Monetary Fund expires at the end of the year, and there has been confusion over whether Indonesia would seek another agreement, which allows for periodic disbursements in exchange for economic reforms.

Dorodjatun's comments came one day after the government caved in to nationwide protests and rolled back its most recent price increases on key utilities such as fuel and electricity -- a key plank of economic reforms agreed with the IMF.

Asked at an evening news conference if Indonesia did not want another programme, Dorodjatun would only say Jakarta wanted no more IMF loans when the current pact expired.

He said a task force would be set up soon to study the implications of foregoing additional IMF funds from 2004. "We would really like to be forthright with the remaining letter of intent [pact] this year in the hope we will end IMF funding by the end of 2003," Dorodjatun said at the end of the first day of talks with donors, including senior IMF officials.

The IMF hinted Jakarta would need to knuckle down and accelerate economic reforms first.

Indonesia ready for IMF exit?

Market players, however, said Indonesia's improving foreign exchange reserves, more stable currency and rosier budget deficit position might have given the government the confidence to consider breaking away from IMF assistance.

Japan, Indonesia's single biggest creditor nation, also said it would not be too concerned if Jakarta left the IMF programme.

"What we really hope is that they carry out economic reforms as much as possible and as smoothly as possible at this moment, so they can create an economic situation which enables them to graduate from the IMF programme," Hiroshi Ogushi, a senior official at the Japanese embassy in Jakarta, told reporters.

Despite the price backdown, Jakarta's donors under the Consultative Group on Indonesia (CGI) signaled they would give the nation the $2.65 billion aid it wanted for 2003.

The protests had threatened Indonesia's economic progress, Finance Minister Boediono said in a speech.

Donors are expected to announce the aid pledges, which will help plug this year's government budget deficit, on Wednesday.

The IMF programme prescribes tough fiscal austerity measures and critics say it hurts millions of poor.

Daniel Citrin, IMF senior adviser Asia and Pacific Department, said the Fund shared Jakarta's wish that Indonesia complete its economic recovery soon.

"But this will require that Indonesia redouble its efforts in the implementation of the reform agenda," he said.

In 1998, widespread riots over price rises, which also came after separate IMF-prescribed measures, were one of the key factors that led to the downfall of Indonesian strongman Suharto.

The country's highest legislative body -- packed with politicians critical of the IMF and jostling for position ahead of general elections in 2004 -- issued a non-binding decree last year requiring the government not to extend the IMF pact.

Debt rescheduling critical

One key issue for Indonesia in weighing future IMF support is debt rescheduling via the Paris Club of official creditors.

Without an IMF pact, Jakarta could still be eligible for debt rescheduling from the Paris Club of official creditors, which in April last year agreed to roll over some $5.4 billion of sovereign debt. But any rescheduling would depend on a Paris Club economic assessment. Indonesia has some $70 billion in public foreign debt.

Michael Spencer, chief Asia economist at Deutsche Bank in Hong Kong, said Indonesia's standby loans could rally if no IMF programme meant no further debt restructurings.

"It would be marginally negative for Indonesia not to have an IMF programme as the market may see a risk of the government slipping on policy implementation," Spencer added.

Aside from the question of whether Indonesia is moving fast enough on economic and other reforms the donor meeting will focus on rebuilding strife-torn Aceh province and supporting Bali following the bombings in which at least 193 people were killed.

Graft forces Indonesia to 'beg' for aid-minister

Reuters - January 22, 2003

Joanne Collins, Bali -- Indonesia would not need to "beg" for money from the international community if it tackled the corruption costing the cash-strapped country some $28.4 billion a year, an outspoken minister said.

In typically blunt comments, Planning Minister Kwik Kian Gie told donors meeting in Bali that among the losses to the state from graft, Indonesia was losing around $9 billion from stolen or smuggled logs, fish and sand and $8 billion from tax leakages. "We are disregarding such funds of $28.4 billion but today we are begging you gentlemen for an amount of around $3 billion," Kwik said in a statement obtained on Wednesday. His comments were delivered to donors under the Consultative Group on Indonesia during closed-door meetings on Tuesday.

Donors have signalled they would grant Jakarta's request for $2.65 billion aid to help fund this year's budget deficit and are scheduled to announce an exact figure later in the day.

At the last annual meeting of donors at the end of 2001, Kwik said he was embarrassed to be begging for loans and warned some of the money might get pilfered.

Donors meeting in Bali, to the surprise of some analysts, have been sympathetic to Jakarta's decision to roll-back recent utility price rises in response to nationwide protests.

They also appeared unfazed by government comments on Tuesday that Jakarta wanted a stop to IMF loans by the year-end. The International Monetary Fund has guided much-needed economic reforms since Indonesia stumbled during the Asian financial crisis of the late 1990s.

Indonesia has already scored points from the 30-plus bilateral and multinational donors for its progress in fighting militants, especially after last October's deadly Bali bombings, and for striking a landmark peace deal in troubled Aceh province.

Kwik, a former chief economics minister, has been the key opponent within government to the IMF's $5 billion loan pact, saying it was only adding to the country's mountain of debt.

Despite his opposition to the IMF and other economic policies of the government, Kwik has not faced the threat of dismissal, partly due to his closeness to President Megawati Sukarnoputri and her desire to avoid the revolving-door cabinets of previous administrations, political analysts have said.

On corruption, Kwik said Indonesia's salary structure was not linked to merit or ability and needed to be overhauled and the country's massive bureaucracy reformed. But he said corruption was not just limited to low-paid workers.

Jakarta to get $4.7 billion despite worries over reforms

Straits Times - January 23, 2003

Robert Go, Nusa Dua -- International donors have pledged US$2.7 billion in fresh aid to cash-strapped Indonesia this year, despite ongoing concerns about its inability to implement crucial economic reforms.

To be fair, the donors in the Consultative Group on Indonesia (CGI) who ended a two-day meeting here praised some achievements of President Megawati Sukarnoputri's government.

Mr Jemalud-din Kassum, the World Bank's vice-president for East Asia and Pacific, said: "Indonesia's need is diminishing as its fiscal deficit is falling steadily." Mr Daniel Citrin, who led the International Monetary Fund (IMF) team, said "significant" achievements last year laid "a solid foundation for Indonesia's economic recovery from the crisis".

Lenders lauded Jakarta's faster asset-disposal schedule, its success in keeping a tight state budget and in establishing macroeconomic stability.

CGI members also singled out the ceasefire agreement with Aceh separatist rebels and Jakarta's efforts to manage the effects of last October's Bali blasts.

But there was underlying frustration and disappointment among donors with the pace of reforms, particularly in dealing with issues like corruption, forestry problems and the legal system.

Mr Joseph Eichenberger, vice-president of the Asian Development Bank, another major lender, said: "While some positive steps have been taken, major and fundamental concerns have only deepened." He pointed to issues such as Indonesia's legal system and the fact that the country's banks were still not lending capital to Indonesian businesses. "The centrality of these issues for Indonesia's future, and the urgency for clear public-sector actions and leadership, cannot be overemphasised," he said.

CGI members also closely scrutinised Indonesia's track record in reforming its courts, but they said progress has been slow and inadequate.

"The continuing weakness of the legal and judicial system undermined efforts to deal with systemic corruption, to encourage investments, and to ensure the basic rights of Indonesians," they said in a statement.

As an illustration of the extent of the problems here, it was learnt that only US$1.8 billion of the US$3.1 billion pledged by donors last year actually got disbursed. This was due, in part, to the country's failure to meet conditions attached to the aid money.

A World Bank source told The Straits Times: "The government said they didn't need some of that money, but some projects never got off the ground due to corruption concerns and other issues." The World Bank also said it is no longer supporting any forestry programmes in Indonesia after the government showed continued inability to reduce corruption in the sector and to stop illegal logging activities.

An additional worry, some donor representatives said, was the raucous political system and how political considerations have the potential to derail key economic reforms.

With leading politicians already jockeying for position ahead of the 2004 election, such concerns could further reduce the government's ability to push through unpopular economic measures, such as price hikes for fuel and utilities.

Jakarta already cancelled a hike in telephone rates and rolled back fuel and electricity price increases after sustained demonstrations, and criticism from Ms Megawati's political rivals.

Asked why donors continued to grant and lend money to Indonesia despite the lack of fundamental changes in the country, a Western diplomat said it was because there was no choice but to continue the flow of aid. "Without this aid, Indonesia will be in a dangerous position, and we all know this," he said.

Donors happy with Indonesia but price stance may nag

Reuters - January 19, 2003

Joanne Collins, Jakarta -- Happy with Indonesia's fight against terror and its efforts for peace in Aceh, international donors look set this week to pledge the $2.8 billion in aid that the country is seeking.

The World Bank, which chairs a donor body called the Consultative Group on Indonesia (CGI), has already said the amount is "doable", although some donors say they are concerned about signs of government softening in one key reform area.

"The country has done its best to try and bring peace to Aceh and in arresting perpetrators of last year's Bali bombings, without a backlash from Islamic groups. So on those things alone, donors should be happy," said Jakarta-based Standard Chartered economist Fauzi Ichsan.

But the issue of price increases, the main trigger of nationwide protests in the past two weeks, could threaten to unravel some of Indonesia's hard-fought successes.

Donors, at the Tuesday and Wednesday meeting of the CGI's 30-plus bilateral donors and multilateral institutions, could decide the government is making too many concessions to the demonstrators, sacrificing much-needed economic reform in the process.

President Megawati Sukarnoputri's government has come under mounting pressure to roll back price rises in fuel, electricity and phone tariffs introduced at the beginning of the year to reduce costly subsidies that are a huge drain on the budget.

In response, the government has proposed to delay the phone charge hike and review its policy on fuel and power. But one Western diplomat said that had been enough to raise doubts over Jakarta's commitment to reform.

"Indonesia has kind of blown it with the fuel price issue. It has really shaken donors," the diplomat said.

Indonesia has been winding back subsidies, introduced by former President Suharto, since the late 1990s as part of International Monetary Fund-led reforms. Subsidy cuts were one reason Jakarta posted a sharply lower-than-expected budget deficit last year.

Asked at a news conference last week about the government's plan to review price increases, the World Bank declined to comment directly but made clear its support for the rises.

"We very much support the way the government has sought to clarify why such increases are necessary," said the World Bank's country director for Indonesia, Andrew Steer. "If one is spending a lot of government money subsidising people who are lucky enough to have electricity or lucky enough to drive cars, then there will be less money available to pay the teachers, develop the curriculum and so on," he added.

Focus on Bali, Aceh

Aside from the question of whether Indonesia is moving fast enough on economic and other reforms -- such as improving the justice system and environmental policy -- the meeting will focus on rebuilding strife-torn Aceh and the resort island of Bali following the bombings in which at least 193 people were killed.

Donors' support for the province of Aceh in Indonesia's far northwest corner follows a landmark peace deal signed last month between separatist rebels and Jakarta to end more than two decades of violence in which thousands were killed.

Analysts say donors will also reward Indonesia for cracking down on terrorists after the October 12 Bali bombings and for taking measures to minimise their impact on the country's fragile economy.

Police in the world's most populous Muslim nation have detained scores of people suspected of having links to the blasts and have co-operated with international investigators.

In a report released in the lead-up to the CGI meeting, to be held in Bali, the World Bank said: "The Bali bombing threatened to sink hopes for higher growth, but that risk has been mitigated thanks to the remarkable resolve the government has shown in the aftermath of the tragedy".

Asking for less

The $2.4 to $2.8 billion in aid that Indonesia is seeking from donors is considerably less than what it asked for last year and around half of what it sought two years ago. Analysts say this reflects the government's resolve to wean itself from foreign aid.

"My sense is that the government doesn't actually want to ask for a very high amount because they are becoming more realistic and are trying to depend less and less on the CGI," said Jakarta- based Citibank economist Anton Gunawan. The World's Bank's Steer also said it was a sign of good macroeconomic management.

But there is a considerable gap between pledges and actual disbursements, some of which are pegged to specific reforms. In recent years, Indonesia has received about half of the aid, which is dominated by soft loans, it has asked for.

"I imagine Indonesia will get the pledges; pledges are pain free," the diplomat said. "It's a major international meeting. Indonesia's biggest trade and development partners will be there and it's a confidence-building thing for the government and for donors who will decide whether they want to pump more money into this country."

IMF says fuel price moves understandable

Reuters - January 21, 2003

Bali -- Indonesia's moves to reduce earlier announced rises in fuel prices were very understandable and would not compromise its goals of keeping its budget deficit under control, an IMF official said on Tuesday.

A World Bank official said separately he thought there was an understanding spirit among donors at the Consultative Group on Indonesia meeting here.

"Given we are at a time where world oil prices are temporarily very high ... it's very understandable the government would decide to smooth the adjustment of domestic prices," Daniel Citrin, IMF Senior Adviser Asia and Pacific Department, told reporters on the meeting sidelines.

"I would note that the government's decision will not compromise the budget deficit," he added.

World Bank Indonesian country director Andrew Steer, asked how he thought donors would respond to the prices roll-back, told reporters: "I think there's a very understanding spirit here in general."