Democratic struggle

Left-wing opposition coalition formed

Green Left Weekly - January 29, 2003

Max Lane, Jakarta -- On January 22, more than 300 journalists and other observers crammed into a room in the Struggle Museum to hear representatives of several political and social movement organisations announce the formation of a new opposition coalition, called the Koalisi Nasional (National Coalition -- KN).

Negotiations to form the KN had begun only a few days earlier in response to the mounting evidence of widespread public disaffection not only with the government of President Megawati Sukarnoputri, but with the elit politik -- the existing parliamentary parties, their extra-parliamentary front organisations and their intellectual hangers-on.

Protests against the government's plans to increase fuel and electricity prices have continued. There have also been several demonstrations opposing the government's decision to request another US$2.7 billion loan from the Consultative Group on Indonesia (CGI), the association of Western governments, the International Monetary Fund (IMF) and the World Bank that supervises the economic and financial policies of the Indonesian government.

Almost all of these demonstrations have called for the removal of the Megawati government. Many also call for the resignation of the parliament and the appointment of a "presidium" as an interim government to hold early elections.

However, the demonstrations have not taken on mass proportions since they began in early January. Despite opinion polls showing that the vast majority of Indonesians are increasingly dissatisfied with the elit politik and its policies, the unorganised masses of workers and small farmers do not see any credible alternative political leadership.

The KN is the first serious attempt to unite forces outside the political elite into such an alternative political leadership. It has an impressive initial membership of 40 organisations, including student campaign organisations, trade unions, democratic rights groups as well as political parties. Almost all of the initial member organisations are activist oriented, or at least have some substantial record of extra-parliamentary protest action.

Key activist student groups which are members of KN include the Indonesian Islamic Students Movement, a large left-liberal Muslim student group; the National Democratic Front, an alliance of left-oriented activists groups; the National Students League for Democracy (LMND), the student organisation led by members of the radical left People's Democratic Party (PRD).

Labour organisations include the Indonesian Front for Labour Struggles (FNPBI) and the Indonesian Workers Prosperity Union (SBSI). Democratic rights and community groups include the Committee for Vigilance Against the New Order, the University of Indonesia Almuni Association and the National Small Business Association.

Among the political parties supporting the NK are the PRD; the National Bung Karno Party (PNBK), which is a left-populist split off from Megawati's Indonesian Democratic Party of Struggle (PDIP) led by Eros Jarot; the Social Democratic Labour Party (PSDB), which was established by labour movement figure Mochtar Pakpahan; and the People's Struggle Party (PPR), a small party made up of older people who were active in the pre-1965 left.

The PNBK has tried to develop its support on the basis of a left-wing interpretation of political ideas of Sukarno, Indonesia's founding president. Since its breakaway from the PDIP in 2002, it has not been clear how strong its membership base has been. However, during the current round of demonstrations in some cities there have been significant PNBK contingents.

In addition to the PNBK, other organisations based on the radical democratic currents in the PDIP membership have joined the NK. These include the July 27 1996 Youth Movement and the Nationalist Youth League. The official youth wing of the PDIP, the Democratic Youth (PD), has also affiliated to the NK. A recent PD congress elected well-known leftist and author of the recently banned book I am proud to be a PKI child, Dr Rifka Ciptaning, as its secretary-general.

Another NK affiliate is the Vanguard Party (PP), led by Rachmawati Sukarnoputri, Megawati's elder sister. Rachmawati has been a virulent critic of Megawati's compromises with the Suhartoist Golkar party and her government's collaboration with Washington's "war on terror". So far, however, there has been no visible campaigning activities of PP with which to assess its membership strength.

This combination of parties, including the activist based PRD, comprises the core of the pro-democracy and anti-imperialist political parties in Indonesia.

The KN argues that the Megawati government has failed and that there needs to be a struggle to replace it with a new government "based on the demands of the people's movement" -- for the withdrawal of the planned price increases on petrol, electricity and telephone usage; an end to interference in the Indonesian economy by the IMF and the World Bank; rejection of privatisation and defence of majority state ownership of all vital economic assets; and trial of all political and economic criminals and human rights violators during and since the New Order, both individuals and political institutions.

The KN's political platform calls for an end to the military hierarchy's interference in politics and demands a complete purging of the state apparatus of individuals involved in repression or corruption during the New Order era. It also demands the full political rehabilitation of the victims of political repression during and since the New Order.

The KN's economic platform emphasises the need for a sovereign national economy and demands the cancellation of all debts flowing from agreements between the New Order regime with the World Bank, IMF and Asian Development Bank.

The NK platform calls for the "development of a system of control and access to control all means of production, distribution and capital in all sectors of enterprise that impact on the dignity and livelihood of the majority of the people", and for an immediate 100% increase in wages for workers, civil servants, and the salaries of all officers, non-commissioned officers and the ranks of the armed forces and police. It also calls for the reinstitution of subsidies for agriculture, especially to provide technology and capital to small farmers, as well as a rejection of trade liberalisation in the food sector.

Students/youth

Any movement must be conveyed effectively

Jakarta Post - January 28, 2003

Max Lane -- In the Jakarta Post, on January 27, Juwono Sudarsono is quoted as stating that there was too much political party involvement in the wave of recent student demonstrations. "The rallies represent the goals of different political parties, as they become the tool to express the rivalry among the political elite." The involvement of political parties is seen as part of the explanation as to why the demonstrations over the last few weeks have remained relatively small.

The Jakarta Post article also quotes student leaders, mainly from the Student Executive Bodies (BEM), who reaffirmed that they were interested in replacing the government but that they were at the same time an independent force, with their own source of funding.

There is a myth in Indonesian politics that the student movement has been a powerful factor because it has acted as a moral force and stayed away from politics. Nothing more could be further from the truth. All the most powerful student movements in Indonesia have been directly associated with supporting an alternative power center that was itself seeking state power.

The largest student movement in the 1960s, before 1965, was the Indonesian Student Movement Center (CGMI), associated with the Communist Party of Indonesia. During 1965-1966, the Indonesian Student Action Front (KAMI) became a powerful force. KAMI, although it spoke of being a moral force, was directly backing the Indonesian Armed Forces and the coalition of anti-communist parties in their seizure of power.

During 1972 and 1973, under the leadership of Arief Budiman -- now a senior academic -- and the poet W.S. Rendra, there was, briefly, a student movement that genuinely refused to get involved in the struggle for state power. It remained weak and was soon eclipsed. By 1973-1974, a new movement emerged, under the leadership of University of Indonesia student, Hariman Siregar, that became very powerful.

Its power came from the fact that it combined articulating genuine aspirations among the poor and the middle classes with a de facto alliance with an alternative power pole, then centered around Gen. Sumitro who was advocating a new "pattern of leadership". That movement was crushed by Soeharto and Hariman Siregar, the economist Syahrir and the Yogyakarta student leader, Aini Chalid were all put on trial. Almost 100 others were gaoled for a year without trial.

In 1978 another wave of student protest flourished briefly. Its brevity was partly due to the fact that it had no real allies in the broader political movement. It was quickly crushed with many students being gaoled and several put on trial.

The student movement of the 1990s, which began with protests against the Kedung Ombo Dam in Central Java, also reached its peak of power as it developed an outlook actually aimed at concretely changing the political situation. In late 1997 and early 1998, the student movement's perspective became that of overthrowing Soeharto.

Although the students remained organizationally independent they too developed a de facto alliance with an alternative state power, namely the three key elite opposition figures of Megawati Soekarnoputri, Amien Rais and Abdurrahman Wahid (Gus Dur), In November 1998, when the student movement was still able to mobilize tens of thousands of people, the students actually went to the extent of forcing these three people (plus the Sultan of Yogyakarta) to meet to discuss how power could be transferred from the Habibie government to a new government comprising these figures.

It was precisely when these four refused to adopt the student's strategy of forcing a transfer of power from Habibie to an emergency government of some kind and opted for electoral change, that the student movement went into decline. The student movement has been in relative decline since November 1998 because it has no strategy for change, including no vision of who and what can replace the state power it is now criticizing and opposing.

The students call is more and more "down with the Megawati-Hamzah Haz" regime. All the opinion polls also indicate that President Megawati Soekarnoputri has lost most of her popular support.

The problem at the moment is that neither the populace at large nor most of the student movement can explain who might make up an alternative government and what might their program be.

The student movement needs more politics, not less. Of course, there are some political parties that are involved in the present protests. The Peoples Democratic Party (PRD), the small radical social democratic party, is openly involved. The student organization, KAMMI, is considered to be very close to the Islamic Justice Party (Partai Keadilan), which appears to be still supporting Amien Rais as an alternative presidential candidate.

The PRD, by itself, does not, at least not yet, represent a sizable enough force to present itself as an alternative government, although it can present a comprehensive economic and political program. KAMMI's politics, while reflecting democratic demands on immediate and pressing issues, does not have a credible comprehensive alternative program.

The most interesting development in recent days has been the formation of the National Coalition. This involves several prominent student organizations, such as PMII and FAMRED as well as campus based organizations and the key active independent trade unions. Human rights and democracy groups, such as Government Watch and The Committee for Vigilance against the New Order are also participating. These student, labor and human rights groups have openly joined with political parties around an openly declared economic, social and political program to present themselves as an alternative to the current government. The political parties involve are the Nationalist Bung Karno Party (Partai Nasionalis Bung Karno), headed by Eros Jarot; the PRD; the Pioneer Party (Partai Pelopor) headed by Rachmawati Soekarnoputri, the Social Democratic Labor Party (Partai Buruh Sosial Demokrat) headed by Mochtar Pakpahan and the Peoples Struggle Party (Partai Perjuangan Rakyat) lead by Gustav Dupe.

This is a positive development in that it is attempting to put unity around an openly declared alternative program at the center of politics. The calls for the Megawati government be replaced will be perceived as empty by the public while those advocating a change cannot explain both who and what new policies will replace the old government.

Whether the Koalisi Nasional, or any other programmed based coalition, can truly develop as a popular alternative to the Megawati government or any other combination of parties coming from the current parliament will depend on whether this new program can be explained to the public effectively and rapidly.

If the student movement wants to revive it too must be part of this process.

[Max Lane is a Visiting Fellow, Center for Asia Pacific Social Transformation Studies, University of Wollongong, New South Wales, Australia.]

Political interests undermine student movement: Experts

Jakarta Post - January 27, 2003

Fabiola Desy Unidjaja and Zakki Hakim, Jakarta -- Despite staging street rallies almost every day, the current student protests against the government are insignificant mainly due to the different political interests they represent, experts say.

Former minister of education Juwono Sudarsono told The Jakarta Post on Saturday that too many different political groups were financing student rallies, making it almost impossible for them to unite.

"The rallies represent the goals of different political groups, as they become the tool to express the rivalry among the political elite," Juwono said. He, however, admitted that it was difficult to pinpoint the political parties financing the student rallies.

University students have staged street rallies almost every day since the government announced on January 1 increases in electricity and telephone rates as well as fuel prices. What started as utility price hike protests developed into antigovernment rallies demanding the resignation of both President Megawati Soekarnoputri and Vice President Hamzah Haz.

The government, apparently incensed by daily protests, accused certain parties of co-opting the students to advance their own political agenda.

While acknowleging that they were seeking a change in government, student activists denied that they were being used by any political parties, and insisted that they were fighting for the welfare of the people at large.

"BEM (Student Executive Council) is an independent organization," Gadjah Mada University BEM chairman Arief Fibri told the Post on Saturday. He said his organization earned money by organizing certain activities, aside from receiving a subsidy from the university.

"Anyone can see the number of students participating in the rallies. We are the voice of the people, but we still need people to participate to make the government meet our demands," said Rico Marbun from the University of Indonesia in Jakarta.

Compared to the student protests of 1998, which led to the downfall of dictator Soeharto, who ruled the country for more than three decades, this year's student protests are relatively small and sporadic.

Public support for protesting students also fell after the government bowed to public pressure and rolled back the prices of electricity, telephone calls and fuel.

Juwono warned that competition among political parties ahead of the 2004 general election would further undermine student rallies. The absence of a common enemy has also weakened rallies, he said.

The former minister also said that another big difference of the present student rallies was that the Indonesian Military (TNI) and police no longer played any role in the protests.

Another analyst, Arbi Sanit, concurred with Juwono, saying that the time had come for the students to distance themselves from the political interests of certain groups.

Arbi Sanit said that utility price hikes could have served as momentum to revive the student movement. However, he said that it would take time for students to become independent once again.

Aceh

After Aceh peace deal: Learning from past mistakes

Opinion and Editorial - January 31, 2003

Kiki Syahnakri, Jakarta -- All the parties involved in the recent signing of the peace deal between the Indonesian government and the Free Aceh Movement (GAM) deserve sincere appreciation, especially given the protracted conflict in Aceh and the vast loss of life and material damage there.

The question of Aceh has eroded the nation's reputation and tarnished the image of its military (TNI) and police, the forces assigned to maintain security, law and order to ensure national integrity and act as the vanguard of the state's sovereignty.

Yet we must also criticize the policies and process toward the signing of the treaty. Prior to the signing of the peace deal preconditions that would suit the government's terms were needed, and there were principles in terms of security, politics and diplomacy that we had to continue to uphold.

We cannot leave the framework of the unitary state of the republic, which includes Aceh; and there must be assurances that GAM also has good intentions and agrees that the solution to the issue must be made within this framework.

Dozens of times AGAM, GAM's military wing, has violated the peace deal by intercepting members of our military/police or undertaking other forms of military action against them. Credible sources have revealed that GAM held a secret meeting between January 3 and January 5 in Nisam district, North Aceh.

Among the decisions reached were that GAM would lay down its arms only after the military had done likewise under the supervision of the United Nations; and that GAM would immediately set up a civilian government in Aceh to replace the Indonesian government at the village and district levels.

GAM also decided it would recruit young people from all parts of Aceh to reinforce its troops. It would also intensify tax collection and replace personnel considered to have not lived up to expectations. Then, GAM members who had surrendered and NGO members who were not in favor of GAM must be kidnapped. Finally, it was decided that GAM's administrative structure must be improved.

The meeting, also attended by a number of leading ulema, voiced the resolve that once the peace deal could remain in force, "the republic's personnel" would be wiped out from Aceh. If this information is fully or partly correct, authorities are right to say that the peace deal needs reviewing, and that Indonesia would even withdraw from the deal if necessary.

In East Timor, back in 1985, then independence leader Xanana Gusmao diverted the focus of his struggle from an armed front to political diplomacy -- he moved from jungle to city.

The independence movement Fretilin/CNRT adopted a clandestine method to develop resistance in the towns across East Timor and even beyond. Despite heavy pressure from the TNI and the police, this method worked well and Xanana -- regardless of the complexity of the problem as a result of Indonesia's failed approaches and policies and the presence of an international conspiracy -- successfully turned East Timor into a new state.

East Timor was able to gain independence through clandestine methods even under strong pressure from Indonesia, so how could GAM be given the golden opportunity to carry out its actions openly and freely right in front of us?

A senior Indonesian diplomat has proudly claimed that we have successfully made GAM shift from armed resistance to diplomacy. But this is exactly what GAM desires. It would be much easier for GAM to consolidate itself and mobilize support, establish communications and so forth in the present situation.

In this post-peace deal situation GAM will likely open up three fronts -- the armed front, the political front and the diplomatic front -- to increase support from the Acehnese and the world. By then, GAM will enjoy wider access to the Acehnese and the international community. The access enjoyed by the TNI and police would, on the other hand, be narrower.

Also, GAM would likely mobilize popular power through appeals and intimidation so that people would join rallies, instigate rioting in opposition to the government and drive out of Aceh the locally stationed and dispatched security apparatus of the TNI and police.

Then the measures planned by the Joint Security Committee -- confidence building steps, the demilitarization of GAM, rehabilitation/economic assistance and so forth -- would never be realized and peace would not be achieved.

What is GAM and how must we cope with it? This is the same as questioning the problem of Aceh itself. The question of Aceh may be construed as an armed rebellion likely to reoccur. Aceh has become a national issue placing the state (the people and government, including TNI) in confrontation with GAM as an armed separatist group.

From the view of international humanitarian law, GAM is an armed grouped undertaking an armed rebellion. It is organized militarily and takes up arms to resist the authorities and terrorize the people. It may thus be categorized as a combatant.

The question of Aceh is the fruit of the government's failure to implement development in an integrated manner. Hence Aceh has not seen the fruits of welfare, justice and democracy. This has led to disobedience, insurgency and armed rebellion, with wide, primoridal-based support. In this process, foreign intervention cannot be avoided.

The only way an armed rebellion with a guerrilla pattern can be dealt with is by combining diplomacy and military operations, plus integrated rehabilitation measures to "win the hearts and minds of the people". An armed movement will fail or be weakened if the people take sides with authorities.

So, the combined results of cooperation and coordination between the regional and central government, the TNI and the police, non-governmental organizations and the local community is a must. Mere diplomatic negotiations will not last or will even be doomed to failure; meaning our interests cannot be accommodated if military activities or security operations are not employed to strengthen our bargaining position at the negotiating table.

Yet if we only adopt the security approach, we will never arrive at a final settlement and new problems will crop up.

Even if the plan drawn up by the JSC can be put into practice to achieve lasting peace in Aceh within the unitary republic, this does not mean an immediate end to the problem.

The aspiration nurtured by GAM for independence will gain strength again if the government fails to bring prosperity, justice and democracy to the region.

Let's learn from East Timor. Indonesia's funds were largely spent on building infrastructure, many of which locals did not need. Schools were built without prior survey so that in some places there are schools with very few or no students at all.

Given Aceh's potential, sectors directly linked with the improvement of the standard of living such as agriculture, plantations and cattle breeding, can be developed.

If the funds of over Rp 6 trillion allocated for Aceh in the 2002 budget year is used well, it would be very effective in supporting efforts to solve the problem. This budget would not fund military operations but regional development.

Another lesson from East Timor is that we must work to reduce and avoid issues that can be exploited and exposed by GAM and its sympathizers as violations of Acehnese human rights.

A truly professional military and police will thus be needed. They must master the law and be proficient in applying it. They must know exactly who they must shoot, arrest or kill.

Aceh's situation following the signing of the peace pact is a test for this country to see whether we can properly manage conflicts and retain our integrity -- or whether our conflict management will be a bad precedent that threatens the existence of our nation state.

[Kiki Syahnakri is the former Army Deputy Chief-of-staff.]

Military threatens to use force if rebels fail to disarm

Agence France Presse - January 30, 2003

The Indonesian military has threatened to use force against Aceh separatist rebels if they fail to disarm starting February 9 as required by a December peace agreement.

The warning underscores the fragile state of the ceasefire agreement which was signed by the Indonesian government and the Free Aceh Movement (GAM) in Geneva on December 9 in an effort to end 26 years of conflict.

"If they violate the agreement, there's no other option for us but to use force and take emergency action," Aceh military commander Major General Djali Yusuf said.

"GAM has spread many lies to the public. If they don't want [to abide by the agreement] just say so. February 9 will be the benchmark," he said, referring to the date on which GAM is required to start laying down their guns at designated sites.

There has been a sharp decrease in violence since the signing of the truce but the military and GAM have accused each other of violating the peace pact. On Friday the rebels also accused the military of bad faith.

"We ... feel that the Indonesian side is still not sincere in carrying out the clauses of the agreement. They are still intensely seeking any loophole to be used and abused for their advantage to the maximum," said GAM spokesman Sofyan Daud Friday.

"The TNA [Aceh national army] is still having to send condolences to families of victims of killings and other atrocities perpetrated by the Indonesian side," Daud said in a statement obtained by AFP.

Since the signing of the deal at least 19 civilians, three rebels and five members of the security forces have been killed.

An average of 87 civilians were killed every month in most of 2002, according to the Henry Dunant Centre (HDC), which has mediated the peace talks between Jakarta and GAM since 2000.

Each side has accused the other of extorting money from the population.

The Joint Security Committee (JSC) charged with monitoring the ceasefire has received reports of 499 violations since the JSC's formation on December 20, Major General Tanongsuk Tuvinun, of Thailand, told reporters late Thursday. Tanongsuk, senior JSC envoy for the HDC, said that of those 499 allegations, his monitoring teams have investigated 35.

The JSC last week criticised for the first time both GAM and the Indonesian government for truce violations. The committee of the government, GAM and foreign representatives monitoring the ceasefire delivered the rebuke after the two sides publicly admitted wrongdoing.

The Aceh conflict has claimed an estimated 10,000 lives since 1976.

Susilo warns GAM against militarism

Jakarta Post - January 29, 2003

Jakarta -- Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono expressed his deep concern over the ongoing meeting of Free Aceh Movement (GAM) figures in Aceh, saying it constituted military consolidation aimed at strengthening the separatist movement.

Speaking to reporters after a meeting on political and security issues, Susilo warned that the GAM meeting was harming the peace process as GAM was continuing its attempts to strengthen its military force.

"I don't mind if they [GAM] reorganize their structure. But I warn them against militarizing the people and for this to be shown to the public ... I have informed the Joint Security Committee (JSC) of this and asked for it to be recorded as a violation," he said.

The JSC recently cited GAM for two serious violations of the cessation of hostilities agreement. It is still investigating more than 24 other serious violations committed both by GAM and Indonesian security personnel.

Students demonstrate against violence in Aceh

Radio Australia - January 29, 2003

About 200 students have urged monitors overseeing a peace pact between the Indonesian government and Aceh separatist rebels to investigate the shooting of two brothers.

Unidentified gunmen shot the two brothers who were riding a motorcycle in Aceh Besar district on Saturday, killing one of them and critically wounding the other.

Students picketed the office of the Joint Security Committee in the provincial capital Banda Aceh to vent their anger. They urged the committee to find the perpetrators of the attack.

The committee was set up following the signing of a ceasefire agreement between Jakarta and the separatist Free Aceh Movement on December 9.

Activists urge war on drug trafficking in Aceh

Jakarta Post - January 27, 2003

Apriadi Gunawan, Medan -- North Sumatra Police must go all out to stop drug trafficking from the war-torn province of Aceh following last week's arrest of three Acehnese women here with 1.5 tons of marijuana, antidrug campaigners say.

Secretary-general of the Indonesian Anti-Narcotics Movement (GAN) Zulkarnaen Lubis said the flow of drugs from Aceh had reached an alarming level.

He said the cases of drugs trafficking from Aceh, uncovered by police in North Sumatra, rose by over 100 percent, from 1,096 cases in 2001 to 2,264 last year.

"North Sumatra, being a neighbor of Aceh, is very vulnerable to drug trafficking," Zulkarnaen said last Friday.

Marijuana grows in Aceh and drug dealers have taken advantage of the 26-year separatist fighting there to turn Aceh into a drug production base for neighboring regions, including Java and even part of the country's eastern region.

Security forces and separatist rebels have allegedly received kickbacks from the illegal business, making it difficult to put an end to it. Around 1.5 tons of marijuana went missing from a police station in the North Sumatra town of Binjai last year, after soldiers stormed it during a shoot-out with police. The clash killed two civilians, five police officers and one soldier.

Last Wednesday, police in North Sumatra caught three Acehnese women with 1.5 tons of marijuana, a crime Zulkarnaen said deserved the death sentence.

"If they are found guilty of possessing the marijuana, then based on Narcotics Law No. 22/1997, the three suspects could face the death penalty," he said. "To deter others, the police and legal authorities must have the courage to sentence criminals to death," Zulkarnaen added.

Langkat Police chief Adj. Sr. Comr. Arman Depari in North Sumatra agreed that the three women should receive capital punishment if they were proven to be drug dealers. There were two cases in which defendants were given the death sentence in North Sumatra last year, but neither has been executed so far.

According to Zulkarnaen, the delay sent wrong signals to drug dealers as they would think the court was not serious. "It's no wonder drug dealers never learn from their mistakes, the death penalty is in fact only on paper," he said.

Another bad example was the court verdict against Asiong who was convicted of carrying 50 kilograms of crystal amphetamine locally known as shabu-shabu. His sentence of four years and four months was reduced to 13 months by a court official who falsified a court document.

Arman further said the police were still investigating the possibility of a third party using the three women to bring the marijuana from Aceh to North Sumatra.

"For now, we are assuming that the three suspects were not acting on their own. There could just be couriers. We are hunting down the main player in the case," Arman said.

He admitted that Langkat is prone to drug trafficking from Aceh, and said that the local police were determined to uproot the network of drug dealers there.

GAM will comply with Aceh peace accord: Commander

Jakarta Post - January 27, 2003

Nani Farida, Banda Aceh -- The highest-ranking commander of the military wing of the separatist Free Aceh Movement (GAM) has publicly announced his support for the agreement with the government, although he also emphasized that GAM would continue with its much-criticized practices, including the collection of funds from the public.

Speaking to a small group of journalists at a GAM military camp in remote Teupin Raya, Pidie regency, about 128 kilometers southeast of Banda Aceh, GAM military chief Teungku Muzakir Manaf said his troops would fully observe the cease-fire order from GAM leader in exile Hasan Tiro upon implementation of the December 9 peace accord.

Muzakir denied Indonesian Military (TNI) allegations that GAM had continued to attack government targets, including military posts, despite the truce.

"We will not violate the peace accord. However, if we are attacked we have to defend ourselves," said Muzakir after inaugurating Sarjani Abdullah as Pidie military commander on Saturday afternoon.

The swearing-in ceremony was also attended by several GAM top officials, including GAM self-claimed finance minister Muhammad Usman and other senior military officers.

Journalists were invited to the place on Friday and asked to stay there overnight before Muzakir's media briefing on Saturday. Students of a state elementary school in the village were unable to attend school that day because their building was used as the venue.

In his meeting with journalists, the rebel chief repeatedly blamed TNI for military clashes between the two opposing parties because, he said, Indonesian troops aggressively attacked GAM- controlled areas. He also added that he had stopped the recruitment of new soldiers after the peace accord. "We are only acting in self-defense, and that is not prohibited at all," the rebel commander said.

Commenting on concerns voiced by the Joint Security Committee (JSC) that extortion had sharply increased in Aceh after a marked decrease in violence in the province, Muzakir confirmed that his troops had collected money from the public but emphasized that GAM was only exercising its right to ask for state taxes from large corporations and rich people.

"This is not extortion. GAM is only collecting Nanggroe [state] tax from businessmen, who are asked to pay voluntarily," Muzakir said.

He did not comment on JSC cricticism against GAM for stated gross peace violations as well as TNI for light violations. He only hinted that his troops had not committed any wrongdoings.

Hassan, who now resides in Stockholm, appointed Muzakir, 40, as GAM military chief in January last year, to replace Abdullah Syafii, who was killed by TNI troops in Pidie on January 22 last year. In contrast to the outspoken Syafii, Muzakir very rarely talks to the media, usually asking his spokesman, Sofyan Dawood, to do it instead.

Muzakir, however, is regarded as more capable in the field, having undergone military training in Libya. The self-proclaimed four-star general oversees 17 regional military commands across Aceh.

Meanwhile, the spokesman of JSC, which comprises representatives of the Indonesian government, GAM and third parties from neighboring countries Thailand and the Philippines, acknowledged there were still no concrete sanctions against violations by both GAM and TNI. "We will announce the form of concrete sanctions next week," spokesman Steve Daily said.

JSC senior envoy Maj. Gen. Tanongsuk Tuvinon disclosed the committee was currently investigating 24 violations in Aceh, after dealing with 27 cases last week.

In the meantime, one GAM soldier was shot dead by police on Saturday in Ulee Kareng, about 4 kilometers from Banda Aceh. Police hinted they had to shoot 26-year-old Saiful because he had attempted to flee when asked to stop in order to check his vehicle documents. "We also discovered he had a revolver on him," Aceh Police spokesman Taufik said.

West Papua

Indonesia threatens to end diplomatic ties with Vanuatu

Jakarta Post - January 29, 2003

Jakarta -- The government threatened on Wednesday to end diplomatic ties with the Republic of Vanuatu if the country continued to support the Free Papua Organization (OPM) in its struggle to separate from Indonesia, Antara reported.

Indonesia acting ambassador for Australia Imron Cotan told Vanuatu Prime Minister Edward Nipake Natapai last week about the government's policy following reports on the opening of the OPM representative office in Vanuatu.

"We're mandated to deliver Indonesia's position over the plan to open what they say is the first Papua embassy in the world," he said. He argued that Papua's case was different than that of East Timor because Papua had been a part of Indonesia's territory since the republic was established.

"Since the Dutch colony era, Indonesia has defended Papua's territory in every way, including war. Now, we are ready for war again to defend Papua," Imron said.

Indonesia has complained that Vanuatu had broken the Pacific Asia Forum agreement, which states its support of Indonesia's ownership of Papua. Indonesia is a partner country of the forum, which accommodates Pacific countries.

Indonesia has developed diplomatic ties with Vanuatu since July 1995. Vanuatu is reportedly supporting the OPM by accommodating its leaders and pledging to allow the OPM to develop the first Papua embassy in the world, which is expected to be inaugurated in the middle of the week or in March at the latest.

PNG expels OPM members

Jakarta Post - January 31, 2003

Jakarta -- Papua New Guinea (PNG) has reportedly expelled members of the separatist Free Papua Movement (OPM) from its territory after setting a January 19 deadline to do so, Antara has reported.

The deputy commissioner of the PNG Police, Raphael Huafolo, announced in Port Moresby that all OPM separatists, who illegally entered PNG, had been forced to return to Indonesia's Papua.

He admitted that the border area with Indonesia was vulnerable to infiltration by OPM members and that it must be overseen carefully by both countries.

PNG has deployed some 30 policemen in Wutung, thelast PNG village near the border between the country's Sandaun province and Papua. Another police unit is expected to arrive next week.

PNG foreign minister Rabbie Namaliu earlier vowed that no area in his country would become an OPM base from where the OPM could launch attacks on Indonesian territory.

Namaliu made the promise to Indonesian Ambassador to PNG John Djopari during a meeting early this month.

US links Indonesian troops to deaths of two Americans

New York Times - January 29, 2003

Raymond Bonner -- Bush administration officials have determined that Indonesian soldiers carried out a deadly ambush that killed two American teachers returning from a picnic in a remote area of Indonesia last August, senior administration officials say.

The conclusion, which follows a preliminary investigation by the Federal Bureau of Investigation, is likely to muddy relations between Washington and Jakarta. Indonesia is the world's most populous Muslim nation, and the Bush administration has been trying to persuade its president, Megawati Sukarnoputri, to take a more aggressive stand against terrorism and to support Washington's policy on Iraq.

Last month, in a reflection of the administration's concern about the killings, President Bush secretly dispatched an influential emissary to tell President Megawati that the Indonesians must mount a serious investigation -- with FBI participation. The official, Karen Brooks, is the National Security Council's senior Asian specialist; she also has a deep personal and professional relationship with President Megawati.

Indonesian leaders tend to bristle at outside interference, and especially as the United States prepares for a possible war with Iraq, which the vast majority of Indonesians oppose. Even so, Ms. Brooks's mission seems to have been successful, at least in part. Two FBI agents arrived in Indonesia last week to help in the investigation.

The Indonesian military has denied any involvement in the ambush, which also killed an Indonesian teacher and wounded eight Americans. But a report by the country's police force last year suggested that the military was behind the killings.

The two FBI agents now in Indonesia are gathering evidence for the Justice Department in Washington, American and other Western officials in the region said. "There is no question there was military involvement," said a senior administration official. "There is no question it was premeditated."

The administration official and diplomats from other countries said there was still a mystery about who ordered the killings and why. They said the most likely explanation was that soldiers were trying to send a message to the teachers' employer, an American company that operates one of the world's largest copper and gold mines in the area. The company, Freeport-McMoRan Copper & Gold, had reduced payments and other benefits to soldiers, the officials said. "Extortion, pure and simple," said a Western intelligence analyst, explaining what he believed was behind the attack.

Freeport has declined to answer any questions about the killings or about payments to the police and the military. "This is a police matter, and we cannot comment on the ongoing investigation," said a company spokesman, Siddharta Moersjid. "Freeport hopes the perpetrators, whoever they are, will be brought to justice."

The victims, who taught at Freeport's international school, were ambushed last August 31, as they traveled a twisting mountain road between two military posts near Tembagapura, a mile-high company town on the equator in Irian Jaya, an eastern province also known as Papua. The party -- the school's new principal, his teachers and their families -- had cut its Saturday picnic short when fog and mist rolled in. At a bend in the road back to town, with a steep gorge on the right and a small hill on the left, several men sprayed the group's two Toyota Land Cruisers with automatic weapons fire. The Americans slain in the ambush were the principal, Edwin Burgon, 71, a former smoke jumper in Idaho who had taught around the world, and Ricky Lynn Spier, 44, a fourth-grade teacher from Colorado. The school's Indonesian teacher, Bambang Riwanto, was also killed.

Immediately, Indonesian and Freeport officials blamed a separatist group, the Free Papua Movement, which has been fighting a low-level guerrilla war for independence, or at least more autonomy for Papuans, for several decades. Many Papuans harbor deep animosity toward Freeport; along with some international human rights groups, they say the company has destroyed sacred lands, ravaged the environment and failed to share mineral wealth with local communities.

Soon after the ambush, a team from the American Embassy, including an FBI agent from Singapore, went to Irian Jaya to investigate; the FBI also interviewed survivors, who had been flown to a hospital in Australia. Suspicion quickly turned away from the separatists, though.

In the course of that early investigation, the Australian government gave the United States a telephone intercept between Indonesian military commanders. The conversation, which took place after the incident, leaves no doubt of military involvement in the killings, said a Western official, but he added that it did not implicate senior army commanders.

Indonesian police investigators also exonerated the rebels. For one thing, the police report says, the group "does not have the quantity of bullets" used in the attack, and the organization "never kills white people." The report, dated last September 28, concluded that "there is a strong possibility" that the killings were perpetrated by members of the Indonesian Army.

But that was pretty much the end of the police investigation. "The police don't have any right to investigate the army," said Brig. Gen. Raziman Tarigan, who was deputy police chief in Irian Jaya until he was abruptly removed this month and assigned to a desk job in Jakarta.

Still, the police report does raise the possibility that money from Freeport may have been the motivation. A soldier's pay is roughly $15 a month, the report says, adding that soldiers have a "a high expectation" when they get assigned to the Freeport area. But they had been disappointed by what they received, and some "perks" had been reduced.

General Tarigan said Freeport regularly gave policemen and soldiers money and other benefits, like airline tickets to Jakarta. A general received a first- or business-class ticket, while colonels and others received economy tickets, he said. In addition, former Freeport employees said the company had a $10,000 monthly "slush fund" for government security personnel.

The Indonesian military receives less than one-third of its budget from the government. To make up the difference, it relies on its own business activities as well as supplements from foreign businesses, especially natural-resource companies. Freeport had begun to reduce these payments, on the advice of company lawyers who said they would have to be disclosed under new American corporate-responsibility laws, Western officials and people close to the company said.

They also said the military wanted a portion of payments -- 1 percent of profits -- that Freeport makes for community projects, part of its effort to improve local relations. That pressure was apparently on the increase: investigators say they have been told that, in the weeks before the attack, Freeport had received threats of retaliation from the military if more money was not forthcoming.

Indonesian troops killed two teachers: FBI

Straits Times - January 31, 2003

Washington -- Indonesian soldiers were the ones who carried out a deadly ambush that killed two American teachers returning from a picnic last summer, senior Bush administration officials told the New York Times.

"There is no question there was military involvement," said a senior administration official. "There is no question it was premeditated." The conclusion follows an investigation by the Federal Bureau of Investigation (FBI), the Times reported from Jakarta in yesterday's edition.

Last month, United States President George W. Bush dispatched an influential emissary secretly to tell Indonesian President Megawati Sukarnoputri that the country must mount a serious probe with FBI participation, the newspaper said.

The emissary, Ms Karen Brooks, who is the National Security Council's senior Asian specialist, also has a personal and professional relationship with Ms Megawati, according to the Times. Two FBI agents arrived in Indonesia last week to help in the investigation, the newspaper reported.

The Indonesian military has denied any involvement in the ambush, which also killed an Indonesian teacher and wounded eight Americans. But a report by the country's police force last year suggested that the military was behind the killings, the Times said.

"The administration official and diplomats from other countries said there was still a mystery about who ordered the killings and why," the officials told the Times.

"They said the most likely explanation was that soldiers were trying to send a message to the teachers" employer, an American company that operates one of the world's largest copper and gold mines in the area.

"The company, Freeport-McMoRan Copper & Gold, had reduced payments and other benefits to soldiers." Freeport has declined to answer any questions about the killings or about payments to the police and the military.

"This is a police matter, and we cannot comment on the ongoing investigation," company spokesman Siddharta Moersjid told the newspaper. "Freeport hopes the perpetrators, whoever they are, will be brought to justice."

The victims, who taught at Freeport's international school, were ambushed last August near Tembagapura, a town in eastern Irian Jaya province, also known as Papua.

Gunmen who shot at the school vehicles with automatic weapons killed principal Edwin Burgon, 71, and Mr Ricky Lynn Spier, 44, a fourth-grade teacher from Colorado, along with Indonesian teacher Bambang Riwanto.

Some Indonesian army officials have blamed the ambush on a poorly armed group of separatist rebels who have been waging a long- running but sporadic guerilla campaign in Papua.

Reports of military involvement could seriously undermine US efforts to resume with Indonesia full military ties which have been restricted since 1999 because of the military-backed violence in Timor Leste, then known as East Timor.

FBI dispatched to deal with Freeport murders

World Socialist Web Site - January 24, 2003

John Roberts -- After inconclusive Indonesian investigations into an ambush near the Freeport mine in West Papua last year, a team of US FBI investigators is due to arrive this week to take part in a joint inquiry. Two American teachers and an Indonesian died in the attack and 12 others were injured. The evidence so far points to the involvement of officers of the Indonesian armed forces (TNI) in West Papua and possibly at higher levels in Jakarta.

President George Bush phoned his Indonesian counterpart, Megawati Sukarnoputri, last month to insist that Indonesian authorities bring those responsible for the Freeport attack to justice and to formally request a joint investigation. Bush reportedly told Megawati that any resumption of ties between the Pentagon and the TNI was contingent on the FBI probe.

Bush's direct involvement indicates that far more is at stake than the tracking down of the Freeport killers. The unresolved murder of two US citizens and open questions about the TNI's role threaten to become a festering sore that will undermine broader US interests. In particular, the Bush administration has been pushing for the lifting of a Congressional ban imposed on contact between the US and Indonesian military, following TNI-organised militia violence on East Timor in 1999.

The first test of the ban is an appropriations bill for $400,000 to fund training for the Indonesian military under the International Military Education and Training Program, which Congress is due to vote on before the end of January. In arguing for the ban to be lifted, the Bush administration will no doubt point to the outcome of trials in Jakarta, which, even though a transparent whitewash, have resulted in a handful of convictions over the East Timor violence.

The dispatch of a FBI team to West Papua is to quiet Congressional concerns over the Freeport murders. The move is not without its political risks if the investigation comes to be seen as an obvious cover-up. Former US State Department official Ed McWilliams is reported by Asia Times Online as warning that if the White House agrees to a "face-saving" ploy by blaming rogue army officers then "we're essentially conspiring in a cover-up to prevent full accountability by people responsible for the murder of US citizens." The ambush took place on an isolated road near the Freeport mine on August 31. While the military blamed local separatist guerrillas for the attack, the character of the attack involving the use of automatic weapons immediately cast suspicion on the TNI. The Free Papua Movement (OPM) rarely has access to sophisticated weapons and has never carried out an attack on foreign workers in West Papua. The army, on the other hand, is notorious for its protection rackets and other illegal activities in the province.

For four months, two separate inquiries by the TNI and the national police have failed to produce a single suspect. The police claim that their inquiry has bogged down because they have been prevented from interviewing TNI officers suspected of involvement. FBI officials have visited Papua twice to check on the progress of the investigation and are preparing their own initial report.

Already, the police have evidence that implicates the TNI's Kopassus special forces in the murders.

• The TNI at first claimed to have shot dead a Papuan, Danianus Waker, who was said to have been involved in the Freeport ambush. An autopsy showed that Waker died 24 hours prior to the attack and, in any case, had a medical condition that would have prevented him walking into the area.
• Shortly afterward, police interviewed another Papuan who had been a member of the Kopassus-operated Tenaga Bantuan Operasi militia. He said he had accompanied nine Kopassus soldiers to near the scene of the shooting. He remained with four of them while the remainder moved off toward the area of the ambush. The informant heard shooting over a mobile phone during communication between the two groups of soldiers. He told police he was sure the Kopassus soldiers had ambushed the Freeport convoy. - In early November, the Washington Post and Sydney Morning Herald published separate articles, citing intelligence sources who claimed that the top levels of the military in Jakarta had prior knowledge of an operation against the Freeport mine. TNI chief General Endriartono Sutarto, who was among those named, denied the allegation and took legal action against the Washington Post.
• In late December, deputy Papuan police chief Brigadier-General Raziman Tarigan told the media that forensic tests on ammunition used in the mine ambush had come from an M-16, an SS-1 rifle and a Mauser rifle. While not claiming that the TNI's Kostrad strategic reserve division was involved, he said: "What is clear is that these weapons are used by Kostrad in the area." There are also indications that the army may be involved in trying to intimidate witnesses and others with information about the Freeport ambush. On December 28, the day after Jakarta first foreshadowed direct FBI involvement in the inquiry, two women were seriously wounded in a gun attack on a mini-bus carrying eight people in Wutung, 50 kilometers from the border with Papua New Guinea.

One of those shot was Elsye Rumbiak Bonai, wife of the head of the Institute for Human Rights Study and Advocacy (IHRSA), Johannes Bonai. His group has been prominent in accusing the TNI of carrying out the Freeport ambush. Its own investigation produced the former Tenaga Bantuan Operasi witness who saw military officers in the Freeport area at the time of the August 31 attack.

Local military commander Colonel Agus Mulyadi blamed the Wutung shooting on separatist rebels. However, IHRSA deputy head, Aloysius Renwarin, said IHRSA members had received threatening phone calls and were being targetted because of its investigations into the military. Like the ambush at the Freeport mine, the Wutung attack occurred only a short distance from a military post. Over 40 rounds were fired, indicating that the attackers were well armed.

The military has a long history of dirty work in Papua. Earlier this month, seven Kopassus soldiers charged with murdering Papuan Council Presidium chairman Theys Eluay in November 2001 went on trial. According to the military prosecutor, Eluay was killed on the orders of Lieutenant-Colonel Hartomo after the Papuan politician denounced as inadequate government proposals for limited autonomy for Papua.

The TNI has a number of motives for the Freeport attack. In Papua itself, local commanders have been involved in business operations, both legal and illegal. The military receives a reported $11 million a year from the operators of the Freeport mine in return for protection. The attack may simply have been a timely reminder to the company to continue its payments.

It is also possible, however, that plans at the local level dovetailed with the scheming of those further up the chain of command, who were looking for a means of branding the OPM as a "terrorist organisation" and enlisting the US in suppressing separatist activity in the resource-rich province. If the OPM could be tarred with the murder of American citizens, it would provide a means, albeit a highly risky one, for achieving that end.

The FBI now enters this political minefield as part of a joint investigation. Its mission statement is clear: lay the murders to rest, without implicating the military top brass and thus complicating the reestablishment of close US-Indonesian military ties. Whether it is capable of carrying out the task, without the cover-up being too blatant, remains to be seen.

'Witnesses' offer confusing testimony in Theys' trial

Jakarta Post - January 28, 2003

Ainur R. Sophiaan, Surabaya -- Five witnesses testified in court here on Monday that they had never seen any of seven soldiers charged with murdering Papuan separatist leader Theys Hiyo Eluay two years ago.

The five said could not identify any of the defendants from the Army's Special Force (Kopassus) as the killers of Theys, leader of the separatist Papua Presidium Council (DPP).

Speaking at the military tribunal in the East Java capital of Surabaya, the "witnesses" -- all from Papua -- however, admitted that they only knew about the details of the murder from the print and electronic media.

Theys was found dead in his car on the outskirts of the Papua provincial capital, Jayapura, on November 11, 2001, one day after having been kidnapped as he returned home from a dinner hosted by the local regiment of Kopassus. The dinner was part of the celebrations of the National Heroes Day. The whereabouts of Theys' driver remains unknown.

Tabitha Latuperissa, one of the five witnesses, said she saw Theys leaving the Kopassus compound in his Kijang van accompanied by an unnamed man. She said Theys was escorted by other people who got into a separate red Kijang, but she could not identify the other people, however.

Lt. Col. Hartomo, the highest ranking defendant who is the local Kopassus chief, dismissed Tabitha's testimony. "I was one of those who accompanied Pak Theys out of the Kopassus office to his car. I did not see another man with him as claimed by Tabitha," he said.

Another witness Yustinus Hariyadi Wahyudianto admitted he saw two men who had "pushed something" inside the kijang when he was traveling by an ojek (motorcycle taxi) from Jayapura to Abepura on November 10, 2001. Asked further whether the two men in question were among the defendants, Yustinus said he was not sure.

Prosecutors charge that Theys and his missing driver had shouted "thief ... thief" when the car was carrying him home from the Kopassus compound. At the time, Theys' mouth was bound and gagged by Second Pvt. Achmad Zulfahmi, one of the seven defendants, and the separatist leader was later left "incapacitated", they added.

Meanwhile, the wife of Theys was unable to testify on Monday at the murder trial because she had not received funds to finance the trip, according to her son, identified only as Boy. But prosecutors claimed that they had wired money to Yaneke Eluay Ohee for her trip from Jayapura to Surabaya.

"Yaneke could not appear today [Monday] to testify because the situation is not safe," chief prosecutor Col. Haryanto later said. Theys led a peaceful campaign for an independence referendum in the resource-rich province. His murder has increased the distrust felt by Papuans toward the security forces in the province.

The seven defendants could be sentenced to a maximum of 15 years in prison if found guilty of premeditated murder.

Anti-war movement

Indonesian Muslims stage anti-US rally over war

Reuters - January 26, 2003

Jakarta -- About 1,000 Muslims chanted anti-American slogans outside the US embassy in Jakarta on Sunday saying any war against Iraq would be an attack on the entire Islamic world.

While there have been only minor protests in the world's most populous Muslim country over a possible attack on Iraq, the prospect of war is increasingly worrying religious leaders who fear it could spark a backlash by Muslims.

"We are against America's plans to attack Iraq -- an attack in one Muslim country means an attack on all Muslims," said Muhammad Rahmad, a rally organiser.

The protesters gathered outside the embassy under heavy police security then marched in the rain down the capital's main thoroughfare toward the city's central roundabout.

In another sign of growing anti-American sentiment, T-shirts bearing Iraqi President Saddam Hussein's face and the words "Ready for War" and "We Support You" went on sale across the capital last week.

While not everyone supports the Iraqi leader 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.

Washington has threatened to attack Iraq if it does not meet UN disarmament terms. Iraq denies it has any banned weapons and says it is cooperating with UN weapons inspectors.

Former rock star leads three-thousand protesters in rally

Radio Australia - January 27, 2003

A former rock star has led three-thousand Indonesian protesters in a rally outside the British embassy to condemn a possible war on Iraq.

Women wearing white headscarves hoisted signs in downtown Jakarta proclaiming their opposition to American and British plans to invade Iraq.

Rock star turned preacher, Harry Mukti, said while the protestors were no fans of Iraqi leader, Saddan Hussein, the Iraqi people need to be defended.

Indonesia, the world's most populous Muslim nation, has said it considers any unilateral action against Iraq unacceptable though it supports the presence of UN weapons inspectors in Iraq.

'War on terrorism'

JI behind all bombings in Indonesia: Police

Asia Pulse - January 28, 2003

Denpasar -- The chief of Indonesia's National Terrorism Desk, Police Inspector General Ansaad Bay, expressed his belief yesterday that Jemaah Islamiyah (JI) was behind all the bombing incidents in the country, including those in Bali.

"JI has been behind them all," he said after attending a coordination meeting with officials concerned with anti-terrorism efforts.

Ansaad said the evidence and information collected so far showed that the terrorist network had been behind the actions. "The fact is clear that JI was behind the terror actions in the country so far," he said.

The Bali bombing investigation team's spokesman, Senior Commissioner Zaenuri Lubis, said JI's involvement in the bombing incident in Bali on October 12 was mere information or intelligence data.

Legally, JI has not been recorded as an organization directly involved in the incident that left more than 190 people dead, he said.

Zaenuri said the investigation so far had been focussed on persons instead of organizations. "So it is the person, not the organization, that is declared legally wrong. This is what we call a legal fact," he said.

He admitted that there had indeed been intelligence data showing that JI had masterminded the Bali bombings but the data were not needed yet for the legal process of the suspects held so far. He said the evidence found so far was strong enough to try the suspects.

Government & politics

'Open-list' elections approved

Jakarta Post - January 29, 2003

Kurniawan Hari and Fabiola Desy Unidjaja, Jakarta -- Each faction in the House of Representatives (DPR) agreed to adopt an "open- list" election system for the 2004 elections, paving the way for voters to directly choose individual legislative candidates to represent their aspirations at the House.

The Indonesian Democratic Party of Struggle (PDI Perjuangan), the biggest faction in the House with 153 members, announced on Tuesday that it had agreed to endorse the open-list election system, making it the last party to accept.

Under the open-list system, voters would choose legislative candidates by name and face, not political parties, as it is currently done. Each party then appoints whomever it sees fit in the current system.

With the new system, all factions shared the same view that political parties running in any future elections should provide the names and pictures of legislative candidates on election day.

PDI Perjuangan legislator Agustin Teras Narang, who is also chairman of a House Special Commission deliberating on the election bill, said that his faction had accepted the combination of a proportional system with an open-list of candidates.

Teras Narang's statement, however, came just minutes after PDI Perjuangan Secretary General Soetjipto stressed that his party would stick to the current, choose-the-party-only system, arguing that the voters were more accustomed to it and not ready for anything new.

"Let's be realistic. Even in a direct system, voters will only look at the party symbol, not its legislative candidates," Soetjipto opined after a weekly meeting with Chairwoman Megawati Soekarnoputri at the party's headquarters on Tuesday.

But according to Teras Narang, the faction's acceptance of the direct elections was made after a series of internal discussions and then approval from Megawati later on Tuesday.

Golkar, the second biggest faction at the House with 120 members, had already accepted the open-list system last week. Previously, the two parties were the main opponents of the new system, which was initiated by the home affairs ministry.

PDI Perjuangan deputy secretary general Pramono Anung said that his party would like to ensure the public's awareness about the new system and its advantages for them.

"So long as the people understand and are fully aware of their choice of legislators to represent them in the House, our party is ready to comply with the system," he said.

Baharuddin Aritonang of Golkar, Ali Masykur Musa of the National Awakening Party (PKB), and Sayuti Rahawarin of the Daulatul Ummah Unity (PDU) all expressed appreciation about PDI Perjuangan's acceptance of the system, saying it would speed up the deliberation of the much-awaited election bill.

All nine factions in the House continued lobbying on other crucial issues of the bill, including the electoral threshold and the campaigning by state officials.

Although PDI Perjuangan had agreed with the new system, Teras Narang said his faction would propose some revisions to the system. "We agree with the system proposed by the government, but we will submit corrections and technicalities [to enable the people to better understand the system]," he said without elaborating.

The House is currently discussing the general election bill as part of four political regulations needed ahead of the 2004 election, when Indonesia will hold its first ever direct presidential election.

The House has passed the political party bill, while the government has submitted bills on direct presidential election, and the composition of People's Consultative Assembly.

Mega reacts emotionally to stomping protesters

Jakarta Post - January 29, 2003

Jakarta -- Speaking again before supporters of the Indonesian Democratic Party of Struggle (PDI Perjuangan) at her private residence in Kebagusan, South Jakarta on Tuesday, President Megawati Soekarnoputri expressed her disappointment over recent antigovernment demonstrations in which protesters stomped on her pictures.

"When I look at my pictures -- and I actually look pretty there -- and see people stomping on them, I feel like I want to throw up ... like a volcano about to explode," she said in an emotional tone.

She added she felt like going after the protesters, warning in Javanese, "I'll remember that face." Before a similar forum at the same place last Tuesday, the President criticized the press which she said were unfair in their coverage of the anti- government demonstration. The informal speech drew cynical reactions from her critics who said she only dared to speak out in front of her supporters, instead of in formal and respected fora.

Police have been cracking down on protesters who allegedly insulted the President in various ways during the rallies. Police have summoned five students in Solo, Central Java, after they allegedly burned the pictures of her and Vice President Hamzah Haz.

Earlier this month, a 20-year-old Acehnese woman activist Raihana Diani was sentenced to six months in prison for insulting Megawati and Hamzah. She painted a red X on the pictures of the two leaders. Raihana said it was a personal expression but prosecutors were not amused and demanded she be jailed for eight months.

Two demonstrators were sentenced to one year in prison in October last year after they were caught stomping on the official portraits of Megawati and Hamzah.

All have been charged with violating Article 134 of the Criminal Code on the deliberate intent to insult the president or vice president. The crime carries a maximum penalty of six years in prison.

Right activists have raised concerns over the government's increased use of the article. Known as a "rubber" article, the clause was often used under President Soeharto's regime to suppress critics.

Former president B.J. Habibie and his successor Abdurrahman Wahid drew many anti-government demonstrations but neither invoked the article to act against their protesters.

"There are ethics in criticizing," Megawati told her cheering supporters, and questioned why students burned tires or the national flag when they demonstrated.

But political analyst Hermawan Sulistyo said the government was responding to harsh sanctions over recent protests against increases in fuel prices, electricity and telephone charges. According to him, the government had become sensitive because the protests were also targeting Megawati.

University of Indonesia's legal expert Harkristuti Harkrisnowo added that the ambiguous criteria over what constitutes an insult to the president gave the government leeway to go after protesters.

"It is up to the police to determine whether someone has insulted the president and should therefore be prosecuted" she said but added that the final decision rested with court judges.

Controversial Wiranto may enliven election race

Jakarta Post - January 27, 2003

Imanuddin, Jakarta -- The general elections is still a year ahead, but prospective candidates for the next presidency, who have their roots in the top ten political parties, have either secretly or publicly launched their pre-election campaigns by visiting their constituents across the country.

Some others, who have yet to join or become affiliated with certain political parties, have been tipped as candidates for the country's number-one position by smaller parties. One of these is former Indonesian Military (TNI) chief Gen. (ret.) Wiranto, who was recently nominated by the Indonesian Workers' Congress Party (PKPI) as its candidate for next year's elections.

PKPI constituents are members of the All-Indonesia Labor Unions (SPSI), the only government-sanctioned union under the rule of president Soeharto.

Though Wiranto has yet to choose his representative political party, PKPI's decision to race in the 2004 elections and nominate him as its candidate will provide the Indonesian people with a different alternative for the country's top post.

Wiranto has had a skyrocketing career in the military, as the top student at the Army's Staff and Command School (Seskoad) and at the military's think tank, the National Resilience Institute (Lemhannas), and being appointed the country's military chief in February 1998 when he was only 51.

His decision to join the presidential race, if he does, however, will not be free from controversy.

The National Commission on Human Rights has stated that he was among those officials responsible for the human rights abuses that occurred before and after the referendum of August 30, 1999 which led to East Timor's independence. Yet, he was not among the 18 defendants tried in the rights case.

Wiranto, along with former Army Strategic Reserves Commander (Kostrad) Let. Gen. Djadja Suparman, Brawijaya Military Commander overseeing East Java Maj. Gen. Sudi Silalahi, and former TNI chief of general affairs Lt. Gen. Suaidi Marasabessy, was also accused by sociologist Thamrin Amal Tomagola of being the "provocateurs" and masterminds behind the sectarian clashes in Ambon and elsewhere in Maluku.

The latest accusation against Wiranto was his alleged involvement in the attempt to topple President Megawati Soekarnoputri by funding the recent antigovernment protests. The allegation is yet to be proven, but it has worsened his image.

Nevertheless, Wiranto's military background could indeed be an auspicious factor for his candidacy.

As a military officer, he has been involved in the handling of major armed conflicts and is familiar with the characteristics and behaviors of people in most parts of the country, an advantage that not many Indonesian leaders have. Yet, the reform movement which snowballed following the May 1998 downfall of Soeharto, who also had a military background, has led Indonesians to place their political faith in civilian leaders.

Soeharto's successor B.J. Habibie was a civilian, likewise Habibie's successor Abdurrahman Wahid, and the incumbent President Megawati.

However, none of the three civilian presidents have been able to bring Indonesia out of the political and economic crisis, which has been plaguing the country since mid-1997.

Habibie, whose accountability speech was rejected by the People's Consultative Assembly (MPR) on October 19, 1999 after 17 months in power, failed to continue with his recovery programs after his defeat in the legislative body.

Abdurrahman was ousted from his seat in July 2001 after nine months in power over a corruption scandal.

Meanwhile, Megawati's administration has been at the center of criticism over its controversial policies, including the sale of state-owned international phone operator PT Indosat's 41.9 percent stake to a Singaporean firm, and the acquittal of a number of former bank owners of past banking crimes.

In a state of little progress over the years after Soeharto's downfall, many might consider a candidate with a military background running for the presidency next year, despite the fact that people still clearly remember the repressive approach of a president with a military background -- in the name of political and economic stability, Soeharto crushed many of his critics and opponents.

Indeed, many have expressed a wish to return to a time which they say was better under the "iron fist" of Soeharto.

In regards his chances, Wiranto's military background would benefit him as he will at least win the support of the Association of Retired Military Officers (Pepabri), an umbrella organization for retired military and police officers.

Further, although he is already retired, his past attachment with the Army's Strategic Reserves Command (Kostrad), which has the largest number of highly-skilled troops, will help him win the support of a part of the still active Army officers.

The incumbent TNI chief Gen. Endriartono Sutarto was assistant to the armed forces chief for general affairs, when Wiranto was the ABRI (now TNI) chief. Endriartono has also spent two-thirds of his career in Kostrad. Wiranto, a former adjutant of Soeharto, is also likely to win the support of his former boss, who still wields strong influence in the TNI.

No matter which presidential election system is applied to next year's election, if his name appears on the MPR's list of presidential candidates, everything will be possible for Wiranto.

At least he could win the support of Akbar Tandjung, chairman of the second-largest party, the Golkar Party. People still remember that it was with the help of Wiranto, who was then the ABRI chief, that Akbar secured votes from the chairmen of several Golkar provincial chapters to win the party's chairmanship in July 1998.

Wiranto could also win the support of the eastern Indonesia faction in Golkar, due to his closeness with Habibie, whose father was from Gorontalo and his mother, from Yogyakarta. Wiranto was the ABRI chief when Habibie was in office, and coincidentally, Wiranto's wife also hails from Gorontalo.

Although debatable, his being a Javanese, in this case a Yogyakarta native, boosts his attractiveness as a candidate.

Among the grassroots, Wiranto also has significant support in the Muslim community, because of his close relationships with some Muslim leaders in Jakarta, Banten and East Java.

With these pros and cons of both military and civilian candidates, it will still rest on the Indonesian people to decide upon the most suitable candidate for the president of this country.

Corruption/collusion/nepotism

Akbar's fate to be decided at plenary House session

Jakarta Post - January 31, 2003

Kurniawan Hari, Jakarta -- After a series of debates and delays, the steering committee of the House of Representatives agreed on Thursday to bring a no-confidence motion against Speaker Akbar Tandjung back to the House Plenary meeting on February 27.

However, the hopes for Akbar, who was sentenced to three years in jail for corruption by both the Central Jakarta district court and Jakarta High Court, to be removed from his seat is slim as most legislators have seemingly lost interest in Akbar's crimes.

But, even if the legislators agreed to bring Akbar's case back to the House plenary meeting, they still have different opinions on how the nine factions would deal with the motion.

Deputy House speaker Soetardjo Soerjogoeritno, who presided over the steering committee meeting, said that the meeting had agreed to bring up the issue again on Akbar's dismissal at the plenary meeting. He added that all factions would be given an opportunity to present their stance on the issue.

Legislators Imam Munjiat and Tahir Saimima, from the Indonesian Democratic Party of Struggle (PDI Perjuangan) and United Development Party (PPP) respectively, said that each faction would be given an opportunity to present their stance on the issue before they voted on whether or not to suspend Akbar, who is also chairman of Golkar, the second biggest faction in the House.

"The whole process -- the debates and delays -- will be reported at the plenary meeting, which will then decide [whether to continue the case or kill it]," Imam said after the steering committee's meeting. Tahir added that the plenary meeting would have authority to make any decision.

But Golkar legislators Marzuki Achmad and Yahya Zaini said that the plenary meeting would only hear a recommendation from House leaders that there was no legal basis to proceed with the motion.

The petition was submitted to the House in October last year after the Central Jakarta district court declared Akbar guilty of corruption and sentenced him to three years in jail for his role in a Rp 40 billion financial scandal involving the State Logistics Agency (Bulog).

Although it won the support of 68 inter-faction legislators, a House plenary meeting failed to reach an agreement on the issue and decided to send it back to the steering committee to decide.

The steering committee could not reach an agreement on the petition and referred the case to House leaders. A meeting of the House leaders made the recommendation not to continue the proposal, claiming that there were no specific regulations to unseat a convicted corruptor who is also a House leader.

None of the nine factions in the House have ever officially called on Akbar to resign.

The House failed last year to form a committee of inquiry into Akbar's involvement in the graft case, apparently because of political deal among PDI Perjuangan, Golkar and PKB.

Legislator Ria Latifa, the main proponent of the motion, had expressed pessimism over the move and had started collecting signatories in support of the establishment of an honorary council to determine whether or not Akbar was still eligible to lead the House. Her second maneuver has so far won the support of 70 legislators.

ICW exposes corruption in judiciary

Jakarta Post - January 29, 2003

Moch. N. Kurniawan, Jakarta -- The Indonesian Corruption Watch (ICW) disclosed on Tuesday widespread corruption in the country's judicial system, involving a wide range of players, from justices of the Supreme Court to parking attendants at a district court.

When launching a book titled Menyingkap Tabir Mafia Peradilan (Opening the Curtains on the Court Mafia), ICW said that corruption in the judiciary involved all law enforcers -- policemen, prosecutors, judges and supreme court justices amid the haphazard reform movement. "It is right to say that the judiciary is the true winner in the corruption competition in the country," it said.

ICW said corruption started when, in a criminal case, the police requested "registration fees" from a victim who reported his case to the police. Without the fee, which varies from Rp 50,000 (US$5.5) to Rp 3 million, the case will not be processed or submitted to the prosecutor's office. For suspects, they could also bribe the police to stop the case.

When a criminal case reaches the prosecutors' office, prosecutors or their men would blackmail the suspects, or promise a letter ordering a termination of the investigation (SP3), or return the suspects' files again and again to the police until the case disappears.

When the case finally reaches the court, lawyers could choose favorable judges and make a deal with them to ensure that the verdict would be in their clients' favor.

Even when after being convicted and sent to a penitentiary, the convict could still bribe prison wardens to provide an exclusive room. "Hutomo 'Tommy' Mandala Putra is the perfect example of such a case with his cell fully refurnished, equipped with air- conditioning and a meeting table," it said.

In a civil case at the district court or commercial court, or even in the Supreme Court, the patterns of corruption are similar to those in the legal process of a criminal case.

ICW then gave seven suggestions to eradicate systemic corruption in the country's judiciary.

It recommended the country's courts conduct tight internal monitoring of judges to evaluate their performance.

The license for lawyers or advocates that is now issued by corrupted high courts and the Ministry of Justice and Human Rights, must also be issued in conjunction with bar associations and their licenses must be revoked if they misuse them, it said.

The government must also amend the Criminal Procedures Code (KUHAP) for an article that does not impose any punishment on individuals who allow bail for a suspect but then the suspect flees.

There must also be a fit and proper test for all chiefs of judiciary institutions at all levels, ICW said.

ICW also demanded the court give the public easier access to verdict documents, by which the public could monitor the court.

It noted that registration fees for any case must also be announced publicly to prevent corruption from the outset.

And lastly, the Supreme Court must reform itself, recruit clean justices and adopt a jury system with experts as members of the jury in particular cases.

'Evidence usually resold by police'

Jakarta Post - January 28, 2003

Leo Wahyudi S -- The antidrug campaign seems to be getting more intensive support from the police as drug abuse problems become more serious. There are now an estimated four million drug addicts nationwide and some Rp 800 billion is spent daily just on drugs. The Jakarta Post talked to several city residents about the issue and their response to the police attempts.

Syifa, 21, is a student at a private university in South Jakarta, majoring in tourism. She lives in Tebet, South Jakarta, with her family: I reckon that in my campus, there used to be a lot of drug users and traffickers who operated freely. They carried out their transactions openly.

I wonder why there are only a few of them left now in my campus. They probably operate less openly these days because I rarely see them around the campus.

I used to take drugs too, but was not addicted to them -- no way! But honestly, many of my relatives still take drugs. One even died from an overdose.

I guess the alarming drug problems are getting more acute here. We have to be careful when socializing with friends -- choosing the wrong people might put you in trouble for good.

I agree with the intensive crackdown by the police. I just hope it's genuine. At least the police seem to be intent on fighting drug dealers and abusers.

But I don't agree that traffickers should be sentenced to death. It's better to give them a maximum jail term. Matters of life and death are in God's hands, right?

Ale (not his real name), 29, works for a private company in West Jakarta. He lives in Srengseng, West Jakarta, with his wife and son: I'm not sure an intensive crackdown on drug problems will succeed because the confiscated evidence is usually resold by the police.

I have a friend whose father was a high-ranking police officer and he used to be a drug addict. I used to ask him [the friend] for marijuana for myself.

He gave me a big box of marijuana and frankly told me it was confiscated crime evidence. Based on this, I think it's quite normal for me to doubt police commitment to combat the alarming drug problem, particularly in Jakarta.

I used to be addicted to marijuana, too. From the time that I was in senior high school until university I used a lot of marijuana. I used it a lot when preparing for final exams. I liked using it because I was able to pass several tests with B grades.

But that was all about three years ago. Now I've quit drugs. Thank God I never used any other drugs but marijuana.

Tri [not his real name], 56, is retired from the Navy and lives at Patal Senayan, Central Jakarta, with his wife and five children: I think drug problems have been so alarming that all elements of society should work hand in hand with the police to combat them. Unfortunately, law enforcers disappoint many times the people who hope for justice. We can see how law enforcers are involved in unscrupulous deals to release drug dealers from detention or prison.

I reckon that many drug transactions go on around here. I wouldn't deny either that there must be some addicts here too.

Every day I see plainclothes policemen hanging around here monitoring their targets. I know them from the way they behave. But all this is to no avail without serious measures and a good attitude from them.

I once drove them away from here because I was sick of seeing corrupt police who received bribes from such unlawful business.

But after that, I tried to approach abusers and traffickers to warn them not to operate here. Up until now, the personal approach has worked better than an oppressive one. I'm not saying that there are no more drug abusers here, but, at least, it seems to have worked. Traffickers no longer operate near here. I also try to persuade abusers to kick such a bad habit.

Human rights/law

Human rights probe into 1965 killings

Radio Australia -- January 31, 2003

Investigators in Indonesia have begun the first formal probe into mass killings that took place more than three decades ago. The massacres occurred in late 1965 and early 1966 in a period of political upheaval that accompanied the rise to power of former dictator Suharto.

Much of the killing was actively supported by the Indonesian armed forces and it is estimated that as many as half a million people died. Investigators are determined to find out the truth about the massacres, despite receiving death threats.

Presenter/Interviewer: Peter Mares

Speakers: Ita Nadia, coordinator of the Human Rights Commission investigation into the 1965 massacres in Indonesia. Gustav Dupe, chairman of the National Committee of the Human Tragedy of 1965

Mares: On the night of September 30, 1965, there was an attempted coup in Jakarta. Six top Generals were murdered by more junior officers, who went on to declare a revolutionary council. But their coup was short-lived -- 44 year old major-general Suharto, commander of the Strategic Reserve, mustered loyal troops to his side and quickly crushed the rebellion.

Suharto then gradually sidelined, and eventually replaced, Indonesia's founding President Sukarno.

The coup of September 30 was blamed on the Indonesian communist party, the PKI -- and a ruthless military-backed crackdown on the party and its sympathisers followed. Hundreds of thousands of people were killed; hundreds of thousands more were arrested and many were not released for more than ten years.

Under Suharto, any public discussion of the killings was taboo. But now Indonesia's National Human Rights Commission has launched a formal investigation into gross human rights violations of his New Order regime, and the 1965 tragedy is one of four events under investigation.

Ita Nadia is a human rights activist and a member of the national commission on violence against women. She has been appointed as coordinator of the team investigating the 65 massacres. It could be a dangerous job.

Nadia: After the National Commission of Human Rights set up those teams, about two days after that I have received two calls, that terrorised me, that this is very, very dangerous for you to be involved in this team. And this man who called me, he didn't say his name, but he really try to make me frightened.

Mares: Despite the threats, Ita Nadia is determined to continue with the investigation.

Nadia: I'm working for the human rights. To open the history of the violations of human rights and breaking the silence and it will give a detail on how the people have been violated, have been humilitated, by Suharto.

Mares: Gustav Dupe is chairman of the National Committee of the Human Tragedy of 1965, an umbrella organisation linking many non-government groups that has been lobbying for justice for the victims of the massacres, former poitical prisoners and their families. He welcomes the formal investigation by Indonesia's National Human Rights Commission -- KOMNAS-HAM -- even though he knows the commission's powers are limited:

Dupe: This is a very positive development I would say by the Komnas, but the fact is that the status quo is still powerful. So in this regard, when coming to this KOMNAS-HAM investigation, well on the one hand again it is very positive, but on the other hand we know that it will face a political wall, yeh, a very strong political wall.

Mares: What do you hope may come out of this investigation by KOMNAS-HAM.

Dupe: Actually we know very well the limits of ... even politically powerless yes. But they have a certain authority, a certain authorisation to do this investigation. So although since the beginning we know that the result of the team, could be just put into the drawer or the 'karacang sampa'.

Mares: You mean the wastepaper basket?

Dupe: But anyway this decision, we must appreciate highly.

Mares: From 1965 onwards, the threat of communism was used to justify the dominant role of the armed forces into Indonesian society and politics and even after the fall of Suharto in 1998, families of victims of the 1965 killings, and former political prisoners continued to face discrimination. When former President Abdurrahman Wahid tried to lift the ban on communism in Indonesia he ran into such opposition from the military and Islamic groups that he had to back down.

Ita Nadia says it will be difficult if not impossible to get hold of official documents from 1965 because they remain locked in military archives -- and she does not expect much cooperation from the Indonesian armed forces:

Nadia: I don't think so no. Because especially for the 1965 it is still crucial. Why still crucial? Because as you know the issue of 1965, it's still using by the military to terrorise or to frightening for the people and how the terror is still happening from 1965 until now. So 1965 is a very crucial time for us to investigate or to break the silence and we have to learn from the history.

Mares: So you believe that the military is concerned that if you do uncover this information, if it is opened up, if the silence is broken, this will actually undermine the military's control and influence in Indonesian society.

Nadia: Yes, yes. And it will undermine the military to control the community or control the society because until now they are still using the issue of the communists and 1965 to control the community so we are aware of that, we realise about that very very strongly.

Human rights team begins probe of abuses under Suharto

Agence France Presse - January 28, 2003

Indonesian state human rights investigators have begun a wide- ranging probe of violations committed during the long dictatorship of former president Suharto.

Chief investigator M.M. Billah said the team would research a series of incidents starting with the murder of hundreds of thousands of alleged communists as Suharto rose to power from 1965-66 -- the first time a government agency has properly studied the killings.

Although the Indonesian National Commission on Human Rights (Komnas HAM) created by Suharto in 1993 has examined individual cases of abuse during the former general's rule, this is the first time it has examined his entire 32 years in office.

"It's true we have a heavy task and maybe we will face some tough obstacles also," Billah told AFP in a recent interview. "There has been a distortion of history and this can influence the way Indonesian people look at themselves," Billah said. Correcting the historical record could be a way to prevent similar abuses in the future, he added.

Billah credited a change in Komnas HAM's membership last year for the agency's decision to study Suharto-era abuses almost five years after the former president resigned.

Komnas HAM is now led by the founder of a respected local human rights group, while Billah himself is a long-time human rights activist as well as a University of Indonesia sociology lecturer. His 15-member team includes a law professor and a historian as well as representatives from the Chinese and Papuan communities.

He said many survivors of the 1965 tragedy, which remains a sensitive topic for Indonesians, have expressed willingness to be interviewed by the human rights team. The team will also rely on press clippings, books, government and military records as well as information from experts. "We have started gathering data and information related to various incidents," said Billah.

The team is also to review the mysterious shootings of criminals in the 1980s; the 1984 murders of 24 people by security forces at Tanjung Priok in Jakarta; military operations in separatist- leaning Aceh and Papua provinces; and the deadly 1996 raid on party headquarters of Megawati Sukarnoputri by military-backed thugs.

The disappearance of political activists, allegedly at the hands of special forces soldiers in the dying days of Suharto's regime, as well as the events in May 1998 that eventually forced his resignation, will also be investigated.

Security forces shot dead four university students before riots targeting ethnic Chinese killed more than 1,000 people and brought an end to his 32-year dictatorship. The study, which Billah hopes will be finished within five months, will seek to show whether gross human rights violations took place, whether state policies provided a basis for rights violations and whether Suharto was directly involved. "This is the preliminary step," he said.

The team's recommendations will be forwarded to a full session of Komnas HAM's members, who will then decide whether to form a follow-up investigative committee to possibly submit findings to state prosecutors.

More than two years ago the attorney general's office accused Suharto of embezzling 571 million dollars in state funds. Lawyers have argued he is too ill to be tried and the Supreme Court ruled he cannot be brought to court until his health improves. Suharto, 81, rarely leaves his home in a plush central Jakarta neighborhood.

Environment

Loggers told to cut capcity, not trees

Jakarta Post - January 31, 2003

Rendi A. Witular, Jakarta -- The country's forestry-related industry should cut its installed capacity by more than 70 percent in order to protect the country's forests from continued overexploitation, the Ministry of Forestry has said.

Ministry spokesman Tachrir Fathony told The Jakarta Post on Thursday that, based on the ministry's analysis, the processing capacity of the country's forestry industry should be curtailed to 20 million cubic meters per year from 63 million cubic meters at present.

Otherwise, he said, the country's forests would remain under threat of being overexploited.

"We wanted the capacity to be cut to the level of timber supply this year. However, we have seen that it would be impossible for the industry to do so. Thus, we think that 20 million [cubic meters] would be fine," said Tachrir.

Tachrir added, however, the ministry had to discuss the figure with industry players and the Ministry of Industry and Trade.

Analysts have said efforts by the government to curb the rapid pace of deforestation would never pay off unless the country's forestry-related industry is restructured to cut down its processing capacity.

The ministry's data says the installed capacity lies between 60 and 70 million cubic meters per year, despite the fact the existing running capacity now reaches only 30 million cubic meters per year.

The remaining capacity remain unutilized as many companies were forced to stop operations due to the economic crisis.

On the other hand, the ministry set the annual timber supply quota for the industry at around 12 million cubic meters last year and 6.89 million this year.

The incredibly huge gap between supply and demand is considered by many analysts as the main factor behind widespread illegal logging. The industry takes illegally felled timber to feed its production facilities.

Tachrir said should the ministry cut down the capacity to 20 million cubic meters per year, the ministry would not change the supply quota of 6.89 million cubic meters. Thereby, the industry would have to import logs to fully supply its plants.

Commenting on Tachrir's statement, chairman of the Indonesian Wood Panel Association (APKINDO) Martias said the reduction of both log supplies and the industry's capacity would cause prices for timber-based products to increase by at least 30 percent.

He said under the existing capacity, the plywood industry had already forecast that the plywood price on the export market would rise to US$350 per cubic meter this year from $270 last year, thanks to the strong demand.

Should the government order plywood suppliers to cut their capacity, the price would inevitably soar, he said. The installed capacity of the country's plywood industry now reaches 10 billion cubic meters. The industry managed to contribute $2 billion to the country's foreign exchange earnings last year.

Indonesia weighs mining in protected forests

Reuters - January 28, 2003

Jakarta -- Indonesia is considering issuing a decree to allow mining firms to operate in areas protected by the country's forestry law, Mines and Energy Minister Purnomo Yusgiantoro said on Tuesday.

Purnomo said the 1999 law, which bans open pit mining in areas covered under the regulation, had hampered investment.

"We are still carefully evaluating this to make sure this is the right step. We need investment in the mining sector," Purnomo told reporters without elaborating. Another ministry official said the decree could override the forestry law.

Mining analysts have said the forestry law was so broad that should it be enforced fully it could apply to virtually all mining operations in Indonesia, a country rich in minerals.

While the forestry statute has generally not been enforced, industry sources say concern about it has caused several prospective foreign mining companies to withdraw from Indonesia or hold back their development plans.

Indonesia has said there are at least 50 firms with current mining contracts that would require parliamentary action to allow them to continue operating legally. The firms are made up of foreign and local companies.

Thousands protest pulp plant 'operations' in Porsea

Jakarta Post - January 28, 2003

Arpiadi Gunawan, Medan -- Thousands of residents including activists from various non-governmental organizations, clergymen and ulemas again staged a protest on Monday against the reopening of a suspended pulp plant in Toba Samosir regency, North Sumatra.

A minor clash erupted during the rally when the protesters and security officers pushed each other as the police tried to bar the crowd from blocking the road leading to PT Toba Pulp Lestari.

At least one activist identified as Ewa was injured and two women fainted as police officers beat the protesters with billy clubs to quell the protest.

The protesters, mostly women, blocked the road in Sirait Uruk village in the subdistrict of Porsea, where trucks carrying logs pass to supply PT Toba Pulp Lestari. "We will stay here all night to prevent the entry of Toba Pulp's trucks and until the plant stops its operation," Rev. N. Silaen said during the protest.

The central government issued the green light recently for the company to resume producing pulp but did not say when it could do so, pending the required clarification of its community development program.

However, residents said the pulp plant had resumed operations covertly two weeks ago. "It is clearly a violation because the government has yet to determine when the company could resume operations," Tatang Yuda, a protest leader, told The Jakarta Post.

The demonstration, the biggest after a series of earlier protests staged recently, involved villagers from the subdistricts of Lumbanjulu, Porsea, Huluan and Laguboti, including dozens of Catholic nuns, priests, church ministers and Muslim figures.

Activists from at least 42 non-governmental organizations affiliated with the Crisis Center at the North Sumatra office of the leading Indonesian Forum for Environment (Walhi) were among the protesters.

Minister of Trade and Industry Rini Soewandi, who visited Medan, North Sumatra recently, said the government would hold a meeting with the Toba Pulp management in the near future to hear its explanations of the community development scheme required by the government to appease the locals.

"In principle, the government can approve the company's activity resumption only after receiving the clarification of its community development plans so as not to harm the interests of local people," she said.

Locals have rejected the reopening of PT Toba Pulp Lestari, citing it could damage the environment in Porsea.

Dedi Sutanto, a Toba Pulp Lestari commissioner, denied the protesters' claim that his plant was operating again and said what was happening now was part of the company's maintenance of idle machines. "We are prepared to operate as soon as the government allows us to do so," he told the Post.

But Tatang said Toba Pulp's activities would be noticed as trucks trying to supply logs and smoke billowing from the plant were sure signs of an active operation.

As of late afternoon on Monday, the demonstrators managed to control the road leading to the company as police were powerless to stop them.

Deforestation accelerated as regions issue concession

Jakarta Post - January 27, 2003

Rendi A. Witular, Jakarta -- Deforestation of the country's already much-depleted natural forests has accelerated as local administrations are currently in a race to give businesspeople hundreds of timber concession licenses in order to help fill the regions' coffers.

The Ministry of Forestry estimated that the "illegal" licenses granted by the regencies over the past two years covered thus far an estimated area of 2 million hectares (m ha).

Director of forest exploitation at the Ministry of Forestry Lumisu Mangiwa said the problem had become the subject of dispute between the ministry and local administrations as the latter refused to comply, claiming their right over the use of forests.

"Issuance of the licenses has become uncontrollable. Due to the autonomy law, local administrations now reject all orders and regulations made by the central government," Lumisu told The Jakarta Post last week.

The ministry, said Lumisu, had declared that any timber resulting from such concessions was illegal.

According to Lumisu, the Ministry of Forestry had banned the issuance of forest concession licenses since 1999 in order to rehabilitate destroyed natural forests, as deforestation had affected 40.26 m ha of the country's 120 m ha of natural forest.

Lumisu's statement has further highlighted the tough challenge faced by Indonesia, both the government and its citizens, in its struggle to protect its forests and the complexity of the causes behind rapid deforestation.

The statement came just days after donor countries from the Consultative Group on Indonesia (CGI) criticized Indonesia's failure to protect its forests.

The CGI working group on forestry, in its statement issued during the CGI meeting early last week in Bali, attributed the failure to the lack of integrated efforts by related government agencies to deal with the problem.

Prior to the CGI meeting, a string of reports had been released by a number of international agencies about rapid deforestation in Indonesia, including an embarrassing report by the London- based Environmental Investigation Agency (IEA), which warned about the surge of illegal logging in Indonesia and accused the military and police of involvement in the illegal practice.

Illegal timber was exported to Malaysia, China, Vietnam and India at a rate of 10 million cubic meters per year, resulting in Rp 7.2 trillion-worth of annual losses to the country, according to the report. Apart from illegal loggers, Lumisu said, forest concession-holders were the main culprits behind deforestation. Some 43 percent of the country's forest concession areas were either in a critical state or no longer productive.

Lumisu said the ministry was powerless to deal with the regions's forest authorities that issued forest concession licenses as they were not subordinate to the ministry.

He said the ministry had sent its officials several times to stop logging by businesses that had gained licenses from the regencies. However, they were forced to flee by hoodlums hired by the regents.

The ministry has, several times, asked the National Police and the Attorney General's Office to curb the illegal practice, but the measures taken by both agencies, if any, have thus far borne no results.

Animal smuggling racket exposed in Indonesia

Radio Australia - January 27, 2003

Reports from Jakarta say large numbers of rare and protected animals are being smuggled out of Indonesia with the complicity of officials.

The Kompas newspaper, citing its own investigation, claims people from countries such as Japan, Kuwait, Pakistan, Malaysia and Iran visit Indonesia regularly to buy wildlife at two main animal markets in Jakarta.

The newspaper says police occasionally raid the markets but return empty-handed because the sellers hide the rare and protected species at homes nearby. The smuggled species include tigers, bears, monkeys, birds and snakes.

Indonesian authorities recently arrested three Kuwaitis at Jakarta's international airport for failing to produce quarantine documents for nearly 250 birds or animals. They also arrested a Japanese man for smuggling 85 rare animals or birds.

Health & education

Jakarta sees huge hike in drug cases

Straits Times - January 27, 2003

Jakarta -- Drug trafficking and abuse in Jakarta are increasing at an alarming rate due to big supplies and easy access to it in the market, an expert said.

The police revealed that the number of drug cases shot up 44 per cent last year. The authorities are also seeing a drop in the number of drug addicts seeking treatment at drug rehabilitation centres which, ironically, is bad news.

"That's extremely alarming as it implies there is abundant supply of drugs in the market," said Mr Dadang Hawari Idries, a professor of psychiatry at the University of Indonesia. So long as the addicts have access to drugs and do not suffer withdrawals, they will not seek help at rehabilitation centres or hospitals, he added.

Jakarta Hospital for drug addicts reported declining trends in drug addicts seeking treatment from it between 1999 and 2001. Patient numbers were down from 9,714 to 4,108. Based on that data, Mr Dadang asserted, the number of drug abusers in Jakarta could stand at 10 times the reported cases.

In its year-end report, the police revealed that the number of drug cases had jumped significantly, up 44 per cent from 2001 to 2,642 cases last year.

"You can imagine that if every drug addict consumes one gram of heroin priced at Rp 100,000 [US$11] per day. What a massive amount of money was taken out from the economy," Mr Dadang remarked.

He blamed the abundant supplies of drugs on the market and the corrupt law enforcers. "It is an open secret that law enforcers, including police and judges, are not serious in quashing drug trafficking, they are even behind the drug trafficking.

"In some cases, we have witnessed that they too consume drugs," Mr Dadang said, referring to the recent death of a police officer from a drug overdose on New Year's Eve.

In a related development, two other officers were dismissed for being suspected of involvement in a "drug party" at the Athena discotheque on Jalan Kali Besar, West Jakarta, during New Year's Eve celebrations.

"No charges have been made against those officers so far. They must also be sent to court. Otherwise, they could roam freely to protect drug trafficking," said Mr Dadang.

Last year, four police were dismissed for their involvement in drug related cases, insignificant when compared to 63 other officers who were dismissed for other cases like polygamy and desertion.

Mr Dadang said law enforcers must first purge themselves of drugs if they are to fight drug trafficking.

Activist Veronica Colondam of foundation Yayasan Cinta Anak Bangsa said the war against drug abuse must involve everyone.

"No social strata of society is untouchable when it comes to drug abuse," she said.

International relations

Indonesia's largest Islamic group rejects US invitation

Sydney Morning Herald - January 29 2003

The head of Indonesia's largest Islamic organisation has rejected a breakfast invitation from the US Congress, blaming the possible war against Iraq and new US immigration rules.

"God willing I won't go," Hasyim Muzadi, chairman of the moderate Nahdlatul Ulama said, as quoted by the official news agency Antara today.

Muzadi said his counterpart in Muhammadiyah, the second-largest Muslim organisation, would also not be attending the February 4-7 event, Antara reported.

Neither Muzadi nor Muhammadiyah's national chairman, Syafii Maarif, could be reached for confirmation.

Antara quoted Muzadi as saying the National Prayer Breakfast has no more relevance because of the possible US attack on Iraq.

He also said he and Maarif would reject the invitation because of Washington's decision last month to add Indonesia to a list of countries whose nationals in the US must register with the Immigration and Naturalisation Service.

US officials adopted the rules to help them track potential terrorists following the September 11, 2001, attacks.

The government of Indonesia, the world's largest Muslim country, has called the rules discriminatory.

Yesterday, Vice President Hamzah Haz said the US and its allies should let the United Nations deal with Iraq because any unilateral action would destabilise the world. "We are still against the plans of the US and its allies to attack Iraq," Haz said.

Fallout likely after troop deployment: Professor

Radio Australia - January 27, 2003

There are warnings today about a negative fallout in the region from the Howard Government's decision to deploy forces to the gulf before any United Nations decision on war against Iraq.

Transcript:

Eleanor Hall: Well, there are also warnings today about a negative fallout in the region, from the Howard Government's decision to deploy forces to the Gulf before any United Nations decision on war against Iraq.

Of particular concern is the world's most populous Muslim nation, and one of our nearest neighbours, Indonesia. Profesor Jamie Mackie has been an Indonesian specialist for the last 45 years, working at universities around Australia and in Indonesia.

He's now Professor Emeritus at the Australian National University's School for Pacific and Asian Studies, and he joins us now from Canberra.

Professor Mackie, thanks for joining us. How do you think today's very public deployment of forces to the Gulf will be perceived by our neighbours in the region?

Jamie Mackie: I can't gauge in detail whether the actions yesterday and today are going to create an immediate backlash, but what concerns me is that we get into an involvement, assuming we are going to get involved in a war with Iraq, we put at risk, or we put at a lower priority what I think should be our top priority, which is the war on terrorism.

Now, we've got to balance the war on Iraq, which perhaps is our insurance policy with the Americans to keep ANZUS in place, against the war on terrorism, which since the Bali bombing has come very close to home because we now know with much greater certainty than before that there are networks through South East Asia with links back to Al Qaeda and Osama bin Laden, and they could have a big influence on Muslim communities in Indonesia and Malaysia and elsewhere in South East Asia.

Eleanor Hall: So are you saying that you think Australia's actions in Iraq could potentially fuel the extremism that we've become only too aware of?

Jamie Mackie: I'm sure that it will give a lot of ammunition to the extremists in those countries, and it will put the more moderate Muslim people in those countries, including the supporters of Megawati's Government in Indonesia who are the least extreme, shall we put it that way, the people down the other end of the spectrum, the more tolerant and moderate group -- they're going to find themselves in a very embarrassing position.

Eleanor Hall: Well, Indonesia is facing elections next year. I mean, what sort of pressure does this move by the Australian Government put on Indonesia's Government in the run-up to that election?

Jamie Mackie: I wouldn't go, at this stage, beyond saying it won't make life any easier for them. I think it could make life quite a lot more difficult. The important point to make is this: that in the name of Muslim brotherhood, they will be under pressure to dissociate themselves from us just at a time when they have been associating themselves with us through the investigations into the Bali bombing through the Federal Police, and that's been an enormously successful operation. We're putting all that at risk.

The Indonesians might well say to hell with you, get right out of that operation, which I think would be a terribly costly outcome for Australia. So that we're putting at risk the chances of being able to work with the moderate groups in Indonesia against the extremists, and more importantly, I want to put the emphasis this way; relations between Indonesia and us could get quite difficult.

I don't think that's as important as the fact that the war on Iraq is going to put the moderates in these countries into a very difficult position, because they won't be able to just stand up to the extremists without to some extent, leaning in their direction.

Eleanor Hall: To some extent, is there a possibility then, that the war in Iraq or any potential war in Iraq could help put extremist Muslims in power in Indonesia?

Jamie Mackie: No, no, there are too few of them, and there are big well-organised Muslim parties which are not going to be displaced by the small handful of extremists. But what is going to happen is that the rhetoric will be ratcheted up in the direction of the extremists, and the mainstream people are going to find it very hard to reply to that rhetoric.

Eleanor Hall: Just very briefly, Mr Mackie, are you saying that this action could in fact put Australians in more danger in the region, in terms of the fight against terrorism?

Jamie Mackie: I don't want to put it in those terms. I don't think we're in any great danger. I think we can tolerate some deterioration in the bilateral relationship without huge losses of either security or economic opportunities, but what worries me much more is that we are putting at risk our basic strategic interests in fighting the war on terrorism. The war on terrorism must be won by the moderate Muslims in Indonesia and Malaysia and the rest of the region.

Eleanor Hall: Professor Jamie Mackie from the Australian National University, thanks very much for joining us.

Military ties

Funding for military expected to resume

Radio Australia - January 28, 2003

The United States is expected to bypass Congressional restrictions on funding the Indonesian military or TNI as early as this week. During the East Timor crisis, Congress passed the Leahy provisions which stopped funding to the TNI until it demonstrated clear improvements in human rights and accountability. But critics of the TNI say that a section of the multi-facted Budget bills about to pass the House, will supercede that Leahy bill.

Presenter/Interviewer: Di Martin

Speakers: Ed McWilliams, former political counsel at the US Embassy in Jakarta

Martin: When Indonesian military-backed militia razed East Timor in September 1999, Congress cut all ties with the TNI. Later that year the Leahy provisions were passed in Congress putting strict conditions on any resumption of US military funding to Indonesia.

But America's focus on global terrorism, and Indonesia's status as the world's most populous Muslim nation, is a combination resulting in a profound shift in that previously hardline US funding position.

It started to change mid last year with the Defence Department committing four million dollars worth of counter-terrorism training to the TNI. Now, as part of the huge budget set of bills about to get the nod, Congress is expected to approve inclusion of the TNI in the US International Military Education and Training program or IMET.

Indonesia's involvement in the Hawaii-based program is only worth about half a million dollars, but those who are trying to prevent the sidelining of the Leahy provisions see the IMET invitation as a dangerous development in direct military assistance.

Ed McWilliams is a former political counsellor with the US Embassy in Jakarta.

McWilliams: This is important because although it's only 400,000 dollars, it is symbolically a very important opportunity for the TNI to begin to receive funds, which had been denied the TNI because of its abuses of human rights and other problems domestically.

Martin: And this move doesn't contradict the Leahy amendments that were passed a couple of years ago?

McWilliams: This development supercedes the Leahy provisions that had been essentially constraining all military assistance provided at least through the State Department channels of funding for the TNI. We do still have the Leahy provisions impacting to some extent our assistance to the TNI insofar as restrictions continue on foreign military assistance sales and issuance of licenses for purchases of US made weaponry by the TNI.

Martin: Ed McWilliams says the change in US Congressional attitudes has less to do with Republican dominance in both the House and the Senate, than with America's obsession with dealing with global terrorism in the post September 11 environment.

McWilliams: I think it's not so much the fact that the Republicans now control the Senate; of course they had control of the House of Representatives for some time. What has really changed is that the administration's arguments that it needs to have the cooperation of foreign militaries to fight terrorism in its rubric has had great sway on the Hill. There is no one prepared now or very few people prepared on the Hill to say no to the administration on the terrorism issue. So that when it comes to the Congress and says we need to make the TNI a partner in our fight against terrorism in Indonesia for example, very few people are prepared to stand up against that. What is interesting we still have some Republicans and of course quite a few Democrats who are prepared to contest that, but nowhere near the numbers that we've seen in the past.

Martin: Do you think that faith in the TNI, in fighting terrorism is credible considering your experience in Jakarta?

McWilliams: No, no certainly not, I mean the point we have tried to make to friends in the Congress is that the TNI itself has been a partner in terrorism. I mean it sponsors terrorist organisations, such as Laskar Jihad, cooperates with them, so that we are making ourselves a partner of an institution which is itself a terrorist organisation, an organisation which conspires with terrorists.

Martin: And within that context explain the Feingold Bill, which was lost last week in the Senate?

McWilliams: This was in the form of amendment offered by Senator Feingold, which very specifically would have limited IMET assistance, IMET opportunity for the TNI to what we call expanded IMET, which is a very limited program.

Martin: Which only deals with human rights rather than, say, gun trading or whatever?

McWilliams: Exactly, non-lethal aspects of military training. This amendment to essentially give TNI only the smallest weakest element of IMET was defeated in a largely party line vote, 61-36. We did find a number of Republicans crossing the aisle as we say to support the Finegold amendment, but in the final analysis nowhere near enough.

Martin: So in other words your argument that TNI has been a sponsor of terrorism failed in the Congress?

McWilliams: That was but one of the arguments that were employed. We also argued that in as much as we have now apparently seen the TNI culpable for the murder of two American citizens and the wounding of eight American citizens in the Timika incident, an attack on some schoolteachers back in August.

Martin: This was in West Papua?

McWilliams: In West Papua, it was our assumption that this would carry quite a bit of weight with the American Congressman and Senators, and it did indeed but not sufficient to overcome the administration argument that no, they needed TNI as a partner in the war on terrorism.

US paves way for new Indonesia military ties

Asia Times - January 27, 2003

Jim Lobe, Washington -- The administration of US President George W Bush has moved a major step closer to normalizing military ties with the Indonesian military (TNI), which it hopes will be a key ally in its war against terrorism in Southeast Asia.

The Senate voted 61-36 on Thursday to defeat an amendment that would have barred funding for enrolling Indonesians in Washington's International Military Education and Training (IMET) program until it cooperates fully in an investigation into the killing of two US teachers in West Papua last summer.

The administration's eagerness to restore military aid and training to Indonesia -- first restricted in 1991 after a well- publicized massacre in East Timor, and then cut off entirely in 1999 when TNI-backed militias ransacked the former Portuguese colony -- has made it a top foreign-policy priority since the September 11, 2001, terrorist attacks against New York and the Pentagon.

The administration has claimed that Indonesia, the most populous nominally Muslim country, remains a key recruiting ground and possible safe haven for al-Qaeda and its sympathizers, a notion that was bolstered by last October's terrorist attack on a nightclub in Bali and the subsequent investigation.

The blast killed 187 people, mostly Australian tourists, and police investigators have so far put together a strong case implicating Islamist radicals.

But there has been substantial opposition to renewing military ties with the TNI, which is widely considered by international human-rights groups as one of the world's most abusive and corrupt national military institutions. Since even before the military coup d'etat by former president Suharto in 1964, the armed forces have dominated the state apparatus.

While the amount of money at stake in Thursday's vote -- only US$400,000 in training funds, according to Congressional staff -- was paltry, the symbolic significance of renewed IMET eligibility for Indonesian military officers is hard to overstate, according to Indonesia analysts here and in Indonesia. In effect, it represents a return to respectability on the part of the TNI after its ostracism in 1999.

In October, eight major Indonesian human-rights groups wrote to members of Congress expressing "great alarm" at the administration's efforts to lift restrictions on US aid, including training, for the TNI.

"Irreparable damage will be done to our efforts at reform," the groups warned. "Any further attempts by the TNI to change old practices will almost certainly end" if Congress provides IMET training or other forms of military aid, the letter said.

Rights groups here, such as Human Rights Watch, also opposed renewing IMET funding, and expressed outrage at Thursday's vote.

"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," said Kurt Biddle, Washington coordinator of the Indonesia Human Rights Network (IHRN). "Why is the Senate rewarding this behavior?"

"Human-rights groups understand perfectly well that if there is to be any real reform in Indonesia, you've got to get the army out of politics, and renewing ties now is not going to help that," said Dan Lev, an Indonesia expert at the University of Washington in Seattle. "On the contrary, it's going to boost the army's political clout."

In support of renewing the aid, administration officials did not claim that the TNI has made major reforms, although they argue that the army no longer has the clout that it enjoyed under Suharto, who was ousted from power in 1998. Instead, the officials, principally Pentagon chief Donald Rumsfeld and his top deputy, Paul Wolfowitz, who served as US ambassador to Jakarta for three years in the 1980s, contended that the TNI's cooperation was crucial to the success of anti-terrorist efforts.

They also argued that Washington's decision to cut military training in 1992 might actually have had the perverse effect of making TNI officers less sensitive to human rights concerns, which are supposed to have been an integrated part of the IMET curriculum.

As Wolfowitz argued last November, "more contact with the West and with the United States and moving them in a positive direction is important both to support democracy and to support the fight against terrorism".

Last month, the RAND Corp, a think-tank close to the Pentagon, released a report that argued strongly for renewing close ties. "Since military training for Indonesia was effectively terminated in 1992, there has been a "lost generation" of Indonesian officers -- officers who have no experience with the United States or who have no understanding of the importance that the United States military attaches to civilian leadership, democracy, and respect for human rights," it said.

But many veteran Indonesia observers, who note that Jakarta sent scores of officers for IMET and related training before and during the Suharto era, strongly disagree with this argument.

"The case that's being made is that training helps Indonesian army officers understand human rights and not violate them," Lev said. "But, after nearly 40 years of experience, we have to conclude that, if anything, they got better at abusing human rights."

Activists had believed that the killing of the two US teachers and an Indonesian colleague in an ambush near the giant FreeportMcMoRan gold mine in West Papua last September -- as well as the prolonged detention of a US nurse volunteering in Aceh and the failure of the Indonesian justice system to convict high- ranking military officers for the 1999 East Timor rampages -- would persuade Congress to hold off on renewing ties.

Indonesian police, who were joined this month by agents of the US Federal Bureau of Investigation, have pointed to Indonesian Special Forces as the most likely culprits in what may have been an attempt to "punish" Freeport for failing to pay enough for security.

But the October Bali bombing changed the political dynamic in Washington, persuading many lawmakers who had been skeptical about the threat of radical Islamist groups in Indonesia to go along with the administration.

Widow lobbies against military aid

Far Eastern Economic Review - January 30, 2003

The widow of one of two American teachers shot dead in Indonesia's rugged Papua province last year has been lobbying the United States administration and congressmen to halt the recently resumed training of Indonesian military officers.

Nancy Spier, who was in Washington on January 16-17, tells the Review that she wants Congress to cut funding for the officer training until an investigation into the killing of her husband, Rich Spier, has been completed. Spier claims there is evidence that the Indonesian military was behind the August 31 ambush, which also left another American teacher and an Indonesian dead.

"It's unbelievable that we'd give them [training] now. It would be a green light to continue their abuses," says Spier, who was wounded in the attack. But she adds that officials told her it was "virtually impossible" to drop the military training from an aid budget earmarked for Indonesia over the coming year.

Washington has been pressing Jakarta to wrap up its investigation of the ambush, which took place near a massive gold-and-copper mine run by US firm Freeport McMoRan. Some intelligence reports received by US investigators indicate that senior Indonesian military officials had discussed using the attack to discredit a local separatist group.

Economy & investment

Pertamina: A question of confidence

Asia Times - January 29, 2003

Tony Sitathan, Jakarta -- A retired stockbroker who once assisted Indah Kiat Paper and Pulp -- considered the darling of the paper and pulp industry at one time before being swallowed up in a sea of debt -- to go public says the best way to see the upside in any downside is for a company to go public. He may be right, but not when it comes to Indonesia's giant state-owned oil and gas company, Pertamina.

There were intentions for Pertamina to list its three subsidiaries on the Jakarta Stock Exchange (JSX) through an initial price offering (IPO) some time last year. The three subsidiaries are PT Apexindo, PT Medco Antareja and PT Exspan Petrogas Indonesia. Now Pertamina has opted for listing these subsidiaries either this year or next, saying that more time is needed to take into account the socio-economic factors of a public listing in Indonesia. It is also waiting for a complete audit on all its diverse holding companies and subsidiaries, attempting to prove that it has a clean bill of health, before any listing is done.

Iwan Yoniton, a senior broker in Bahana Securities, the state- owned securities firm, said the Pertamina subsidiaries are well established in the oil-exploration business and their shares are expected to be snapped up by the public despite the overall flatness in the JSX. "Pertamina has decided to delay its intended IPO due to several internal factors as well as external market conditions. What is more essential is for Pertamina to improve the way it manages its subsidiaries as well as core businesses," he said.

In fact, time is needed to put Pertamina's house in order. Mismanagement and decades of corruption in the various hierarchies of Pertamina have made it slow to adapt to changes, especially since Indonesia's House of Representatives approved a new oil and gas law, which came into effect almost two years ago.

The state-owned monopolies that regulate the Indonesian oil industry and its contract-fixing roles with independent oil majors will be surrendered to the central government. The new law will replace Oil and Gas Law No 44/1960 and Law No 8/1971 such that executive and regulatory bodies will be formed by the government to take over Pertamina's roles. For instance, the executive body will take over Pertamina's role in dealing with foreign oil and gas contractors, while the regulatory body will manage domestic fuel supplies and distribution.

Hence Pertamina will be transformed into a limited-liability company after two years. "On paper this move by the Ministry of Mines and Mineral Resources looks commendable, but the law did not take into effect the sweeping changes that has to be implemented in order for Pertamina to be transformed into a limited-liability entity," remarked Ted Subianto, a leading lawyer in Jakarta who has an active interest in oil and gas investments in Indonesia. "Also the ASEAN Free Trade Agreement [AFTA] which comes into effect this year has deep bearing on the oil and gas sector in Indonesia, where foreign companies like Petronas from Malaysia are keen to participate in the downstream sector of the oil and gas industry in Indonesia."

But is Pertamina prepared to go the extra mile in its quest to be publicly listed? Yes, according to its chief executive and president director, Baihaki Hakim. He has the unenviable task of restructuring Pertamina and transforming it from an inefficient state-run organization into something resembling a modern corporation with high standards of corporate accountability and social responsibility. He has been given a free hand by former president Abdurrahman Wahid as well as the current president, Megawati Sukarnoputri, to stamp out rampant corruption and inefficiencies that costs the country millions of dollars in foreign currency.

According to an audit conducted by PriceWaterhouseCoopers almost two years ago when Baihaki took the helm of Pertamina, the company had wasted an estimated US$2 billion since the mid-1970s. Most of that was monies that were siphoned off because of kickbacks, insurance-premium scandals, overpricing of supplies and rigging of import quotas, tenders and awards to foreign oil traders.

One of Baihaki's first tasks was to replace and reduce the board of directors and cut the company's workforce by 30 percent. He had to retrench almost 20,000 employees. "It was a painful exercise where even those in senior positions were given the option of early retirement or face an unknown future. And even foreign-based offices in the US and Hong Kong were later closed down," said Daniel Purba, the marketing manager of Pertamina Energy Services, based in Singapore.

This massive streamlining exercise was saved as a blueprint for other national companies to look at in the future. The restructuring exercise, which is still ongoing, Pertamina closed down unprofitable offices and businesses that were unrelated to its core oil and gas services and outsourced to companies that were more qualified to run these services. "Also there were new methods of arranging trade financing as well as curtailing the use of the bank guarantees as collateral ever since a law was passed that prohibited Pertamina from applying for overseas trade or credit loans, [which] was so easily done under the former regimes of presidents Suharto and [B J] Habibie," maintained Dicky Turner, a former director of Pertamina's finance and treasury division.

The Ministry of Mines and Natural Resources also felt that the introduction of competition would help eradicate these competitive inefficiencies, and would lower costs and help prepare Indonesia to meet the challenges set out by its neighbors when AFTA becomes a reality. "This in turn would invite more foreign players active in the oil and gas industries to invest further in Indonesia, long known to have tapped only 20 percent of its vast oil and gas reserves," said a ministry official.

Does this mean more foreign investors and foreign investments are finding their way into Indonesia? In fact, the opposite has happened. "There had been an overall drop in oil exploration investments by at least ... 11 percent as compared to 2001," remarked Agus Wicaksano, a consultant and assistant geologist with PT Multi Harapan, a mining company based in South Kalimantan.

According to the Investment Coordinating Board (BKPM), foreign direct investment (FDI) approvals in Indonesia plummeted by 35 percent to $9.7 billion last year from $15.06 billion in 2001. Although BKPM did not reveal the reasons for the drop, analysts have outlined that legal uncertainties, lingering labor conflicts, security problems and the lack of regulations governing regional autonomy are among the factors that discourage foreign investment in Indonesia.

Who then is to blamed for Pertamina not achieving its target of listing its subsidiaries? Can it ever hope to cross the public- accountability threshold and achieve its goal of being a listed and self-funded corporate company? Right now the new law arguably falls short of the expectations all parties involved in or impacted by the oil and gas industry, but one thing is certain: changes to the old laws governing the industry were required, Drs Hadi Sutanto and Rekan revealed in a report released last year by PriceWaterhouseCoopers.

"Without change in the Indonesian oil and gas industry, Pertamina may have been doomed, foreign investment may have become stagnant or declined, badly needed downstream infrastructure development may not have occurred in a timely manner and many other negative economic events may have occurred," said the report. "Now that change has occurred, whether welcomed or not, the question arises as to how to deal with this change."

For Pertamina now, a more important question is how it can evolve from its status as a corporate juggernaut, given its $10 billion in reported assets, to that of a socially responsible company more concerned with eliminating corporate abuses and eventually winning the confidence of the public. For without public confidence, there can be no public listing in the first place.