Aceh

Five civilians killed in Indonesia's Aceh

Agence France Presse - April 19, 2003

Five civilians have been killed in Indonesia's rebellious Aceh province, police and the military said.

The latest killings brought the death toll during an upsurge of violence over the past two weeks to 40, further straining a four-month old ceasefire agreement between the government and separatist rebels.

Three civilians, including an infant, were killed following the a gunfight between troops and rebels of the Free Aceh Movement (GAM) at Blang Gapu on Friday, said Aceh military spokesman Lieutenant Colonel Firdaus Komarno.

Kormano said the civilians might have been killed by strayed bullets. But a spokesman for GAM, Anwar Hussein, calimed that soldiers killed seven civilians and arrested 17 others during that incident.

On Friday an elementary school headmaster was shot dead by an unidentified man in the town of Langsa in East Aceh, local police chief Gaguk Sumartono said.

In a separate incident, rebels gunned down a motorcycle taxi driver in Pidie district, Komarno said, adding that guerillas also kidnapped a former village chief and a farmer.

Indonesia has sought a meeting with separatist rebels in a bid to salvage the December 9 peace agreement and avert a war that Jakarta has threatened to wage if it falls apart. On Thursday the government said Jakarta and GAM were nearing agreement to hold the talks in Tokyo next Friday.

Each side accuses the other of truce violations. The government also says GAM is spreading lies that the peace pact provides for eventual independence. In another blow to the accord, peace monitors have been withdrawn from field offices following intimidation by pro-government mobs.

The 26-year insurgency has killed an estimated 10,000 people, mainly civilians.

Indonesia troops, rebels trade blame for violence

Reuters - April 19, 2003

Banda Aceh -- Indonesia's military and separatist rebels in Aceh have traded charges over reports of six killings in the province ahead of expected talks next week aimed at saving a floundering peace agreement.

The military accused Free Aceh Movement (GAM) rebels of shooting and killing three civilians, including a five-year-old child, on Friday in the resource-rich province 1,700 km northwest of Jakarta. GAM spokesman Tgk Anwar Husein denied the accusation. "The civilians were killed by the Indonesian troops who where trying to chase us," he told Reuters.

Separately military spokesman Edi Fernandi said government forces had killed three GAM members when they attacked Indonesian positions. GAM claimed the military started the fighting. "The troops suddenly fired on us, and we returned fire in self defence," Husein said.

Both the government and GAM have agreed in principle to meet next week, probably on April 25, to try to rescue a peace deal reached in December designed to end the simmering rebellion in the province that has taken thousands of lives, mostly civilian.

The agreement initially sharply reduced the level of violence, but in recent weeks has looked increasingly shaky.

Komnas Perempuan opposes military operation in Aceh

Jakarta Post - April 19, 2003

Jakarta -- The National Commission on Anti-Violence Against Women (Komnas Perempuan) has expressed its concern over the possibility of the Indonesian government resorting to military force to resolve the Aceh conflict.

"We are concerned about the threat made by the Indonesian government to launch another military operation to solve the Aceh conflict," the commission's secretary-general KamalaChandrakirana was quoted by Antara as saying on Friday.

The commission earlier wrote to President Megawati Soekarnoputri and Coordinating Minister for Political and Security Affairs Soesilo Bambang Yudhoyono on its concerns and asked Megawati to seek a peaceful solution in Aceh.

The letter was also distributed to the House of Representatives (DPR) leadership and representatives of foreign countries and multilateral agencies in Jakarta.

The commission said both the government and the separatist Free Aceh Movement (GAM) should keep open the option of creating peace in Aceh. It said the people of Aceh, particularly Acehnese women, longed for a lasting peace and no longer wanted to fall victim toany form of violence.

"It is the right of the Acehnese civilians, both men and women, to take an active part in all processes of peace negotiations," the commission said.

Jakarta wins backing for action on Aceh

Straits Times - April 18, 2003

Devi Asmarani, Jakarta -- The Indonesian government has won critical support for "firm action on Aceh" that will likely include a military operation.

The go-ahead will be given only after a final attempt to salvage the four-month old peace pact is made, through a last round of talks with the rebel groups later this month.

The Parliament's green light will help the government push forward with its "contingency plan" to crack down on rebel group Free Aceh Movement (GAM), which has been fighting for independence in the province in three decades, if the peace process falls apart.

In a consultation meeting between key security and economic ministers and parliamentarian leaders yesterday, both parties agreed to wait for the outcome of a meeting between the government and GAM representatives, slated to be held on April 25 in Tokyo.

The Henry Dunant Centre, the mediator of the Cessation of Hostility accord signed by the Jakarta and GAM representatives in December, will facilitate the meeting.

Parliamentary Speaker Akbar Tandjung told a press briefing yesterday: "If all the peaceful efforts to resolve the conflicts have been exhausted, if GAM insists on demanding independence from Indonesia, then we give full trust to the government to take any firm action needed to resolve this problem."

He said a consultation forum for Parliament and government would be formed following the upcoming joint council meeting to monitor the situation in Aceh and talk of what course of action the government would take.

Talks of launching a military operation in Aceh has resurfaced after indications that the peace pact had yielded little progress.

According to the peace pact, GAM was to be disarmed and the Indonesian military was to withdraw from the province gradually. But neither side seemed to be honouring the pact and instead were trading accusations of violating the agreement.

GAM claimed that Indonesian authorities continued to hunt its members, despite the ceasefire and demilitarisation zones, while Jakarta pointed to GAM's apparent reluctance to disarm itself.

But Coordinating Minister for Politics and Security Susilo Bambang Yudhoyono reiterated yesterday that military operation would be a last resort in dealing with Aceh.

"If there are no conclusive results within the time frame that we have -- which is that GAM accepts our final offer of special autonomy within our territory -- and if by the scheduled date of July 9 they have not fully disarmed and continue to extort money from civilians, then we conclude there is no room for peace in Aceh."

He said a military operation in Aceh would be legally justified, based on the 1945 Constitution, the Law on National Defence, the Law on State of Emergency and the Criminal Law.

SIRA chairman stands trial over sedition charges

Jakarta Post - April 19, 2003

Nani Farida, Banda Aceh -- The trial of Muhammad Nazar, leader of the Aceh Referendum Information Center (SIRA) who stands charged with sowing hatred against the government, began on Thursday at Banda Aceh District Court.

"The defendant incited the public to carry out actions that violated the law," chief prosecutor Muhammad Masril told the hearing.

If convicted, Nazar could face a maximum sentence of seven years in jail. He has been in police custody since February.

Several SIRA activists attended the first hearing, which was presided over by Judge Sabirin Jannah and tightly guarded by security personnel.

The prosecutors said Nazar had given inciting speeches before a crowd of at least 1,500 people in Panton Labu and Tanah Luas districts, both in northern Aceh, in January.

In the indictment, prosecutors quoted Nazar from his speeches as stating: "Acehnese have to unite to support GAM", "If the Joint Security Committee passes by, we should yell out 'Freedom' to them", "No Acehnese women should establish relations with the Indonesian Military or police", "Village chiefs should have no contact with the RI government."

The indictment, which was read out by prosecutor Muhammad, concluded that Nazar's speeches incited hatred toward the government and as a consequence Nazar should be sent to prison. The trial was adjourned until April 21 to allow Nazar's lawyers to present their defense.

Nazar's lawyers have submitted a written protest to the detention procedure of Nazar, who is being detained at Banda Aceh Police Headquarters.

"After being detained at the prosecutor's office, he should have been sent to Keudah Penitentiary in Banda Aceh," said Abdurrahman Yacob, one of Nazar's lawyers.

"The rules at the police jail and those at Keudah Penitentiary are different. At the police jail, my client has been denied any contact with the outside world," he continued.

Abdurrahman also questioned the motives behind Nazar's arrest. "I think there is a political motive behind it because initially when he was arrested, he was accused of violating Law No.9/1998 on staging rallies without a police permit. But later, he was charged under Article 154 and 160 of the Criminal Code. It is questionable," he said.

Muhammad Nazar was arrested on February 12 at his house in Kuta Alam, Banda Aceh, after giving several speeches on request. In March 2001, Nazar was jailed for 10 months for sedition after seeking a vote on self-rule. He had been arrested in November 2000 after his information center organized pro-referendum rallies in Jakarta.

SIRA has campaigned peacefully for a referendum on independence for the province, located on the tip of Sumatra island. The group also organized a peaceful rally that attracted hundreds of thousands of people in the provincial capital Banda Aceh in 1999.

Aceh rebels to fresh talks with with government

Radio Australia - April 16, 2003

In a final bid to salvage Aceh's shaky peace pact, separatist rebels have agreed to meet with the Indonesian Government in Geneva next week. The decision by the separatist Free Aceh Movement or GAM comes after Jakarta called for a final meeting to iron out growing differences over the six month old peace pact. The December deal is on the verge of collapse following an upsurge in violence, which has seen at least 25 people killed in the past week and international peace monitors withdrawn from the capital. Jakarta has now threatened all-out war if the Geneva meeting proves fruitless.

Presenter/Interviewer: Linda LoPresti Speakers: Bakhtiar Abdullah, spokesman for the GAM leadership in exile.

Abdullah: Well of course the Indonesians are always threatening us at all times, but it doesn't mean that we are bowing to them because of their attacks. But simply because that we stick on to the road maps in the agreement that was signed on the 9th of December last year.

Lopresti: So will GAM be restating its insistence on independence?

Abdullah: We are not talking about independence or autonomy or anything else. We just want the agreement that was signed to be implemented on the field, and whatever problems that might arise in the process we should try to find a solution for it.

Lopresti: Can you just explain the details of that agreement?

Abdullah: Well among other things that we have agreed to is to cease all violence on the field and that I believe that has worked out tremendously for the last two or three months after that COH (Cessation of Hostilities) agreement was signed. But then lately the violence in the field has escalated, and there is some problem there that has to be resolved.

Lopresti: And it's obviously escalated to a point where there is talk that the peace deal is on the verge of collapse. And you've got the Indonesian government threatening military action?

Abdullah: Yes, there are some hardliners in the military on the Indonesian side who doesn't want to give peace a chance in Aceh, whereas we always sticking on to the part of our deal.

Lopresti: Is it not possible that this recent violence could have been avoided if the sticking point, that is the issue of autonomy versus independence was properly sorted out in the first place last December?

Abdullah: Well I would dare say that when we signed this agreement we have already maintained our stand that the question of independence is the main goal of the struggle of GAM. But at the same time we leave it to the people to decide, because they have also a say for their own future ... to determine themeselves. And this would be possible in the all-inclusive dialogue and in the later stages leading to an election and such things that we have to give them a chance to determine their own future.

Lopresti: So are you confident that next week's meeting will see some kind of breakthrough?

Abdullah: Yes, we're optimistic about it but we are also prepared for the worst also.

Lopresti: And the worst possible scenario would be?

Abdullah: Well if they still want to talk about military fix means then we have no choice but we still as I've said this now, we still want to maintain our stand to carry on with the Cessation of Hostilities agreement.

Lopresti: If the government continues to threaten military action, the violence will not stop in Aceh?

Abdullah: Definitely because if they keep on talking about war, then peace will not have a chance to take place in Aceh. Would it?

Jakarta gears up for military action to crush Aceh rebels

Straits Times - April 17, 2003

Devi Asmarani, Jakarta -- The Indonesian government has begun preparations to launch a military operation in Aceh, ending a peace pact that has been shredded in recent days by escalating violence.

But Jakarta said it would wait for the outcome of a meeting with rebel group representatives later this month before deciding on its next course of action in the separatist province.

Late on Tuesday, President Megawati Sukarnoputri held a closed- door meeting with Vice-President Hamzah Haz and her top security aides, including Home Affairs Minister Hari Sabarno, Foreign Minister Hassan Wirayudha and Defence Minister Matori Abdul Djalil. Indonesian military commander Endriartono Sutarto, navy chief Bernard Kent Sondakh, air force chief Chappy Hakim and national police chief Da'i Bachtiar were also present.

While details of the meeting were not revealed to the press, there were indications that a plan to crush the separatist rebels was discussed. General Endriartono had said earlier that he would brief the President about the planned military action, and in a limited Cabinet meeting last week, Ms Megawati ordered the military to prepare for an operation in Aceh, the Jakarta Post reported.

Tellingly, Mr Hamzah said before the meeting: "The military operation will not claim lives among the civilian population and will be implemented to make sure the Acehnese can live in peace." He insisted that the use of force would be a last resort.

While Jakarta has emphasised its commitment to an existing peace deal with the Free Aceh Movement (GAM), a contingency plan has been the focus of talks among key security officials this week. Military leaders have signalled their readiness to beef up troops in the province, saying the four-month-old Cessation of Hostility pact was a mistake to begin with.

Brokered by the Geneva-based Henry Dunant Centre for Humanitarian Dialogue (HDC), the pact was signed by Indonesian representatives and GAM leaders in December to end 26 years of bloody clashes in the province. It calls for a ceasefire, requiring GAM to disarm and the Indonesian military to withdraw gradually from Aceh.

But violence has escalated in the last few weeks, causing the HDC to recall its local and foreign monitors from remote posts in Aceh. The Indonesian authorities and GAM have accused each other of violating the peace pact, and analysts say neither side has the goodwill to honour the pact.

In the latest act of violence, the military claimed yesterday that the rebels had fired on two military helicopters, forcing the pilots to do an emergency landing. On Monday, marines killed three suspected rebel gun-runners in a conflict at sea off East Aceh, the military said. In the past nine days, at least 31 people have been killed.

Experts fear the violence will worsen and more civilian lives will be endangered with the military operation. Acehnese human rights activist Syarifah Rahmatillah told The Straits Times: "We should have learnt from past mistakes to let civilians, not the warring parties, decide on matters that have the most impact on their lives."

All hopes now rest on a meeting scheduled for later this month, but on the official side, patience seems to be wearing thin. National Assembly speaker Amien Rais said yesterday: "If the government is already firm on one decision, then go ahead, I support it. This problem has dragged on for a long time, and we have been going around in circles."

Aceh independence activist on trial for sedition

Jakarta Post - April 17, 2003

Banda Aceh -- Muhammad Nazar, 27, chairman of the Information Center for an Aceh Referendum (SIRA), went on trial here on Thursday for sedition, his second brush with the law in two years, AFP reported.

Prosecutors accused of having "publicly expressed enmity, hatred or insults" towards the Indonesian government. "The defendant had incited the public to carry out actions that violate the law," chief prosecutor Muhammad Masril told the hearing.

The offence carries a maximum sentence of seven years' imprisonment. Nazar has been in police detention since February. "He had insulted the government at two separate rallies in January in North Aceh district," Masril said.

"Nazar had told the crowd that Acehnese must unite to support the Free Aceh Movement (GAM) armed separatist group," Masril said, adding that the pro-independent activist also told the crowd that "very soon we will be able to achieve our dream, which is a free Aceh." The trial is scheduled to resume on Monday.

In March 2001, Nazar was jailed for 10 months for sedition after seeking a vote on self-rule. He had been arrested in November 2000 after SIRA organised pro-referendum mass rallies in Jakarta.

SIRA has campaigned peacefully for a referendum on independence for the province located on the tip of Sumatra island. The group also organised a peaceful rally attracting hundreds of thousands of people here in 1999.

Three rebels killed in sea battle

Jakarta Post - April 16, 2003

Banda Aceh -- Marines killed three suspected separatist rebels in a gunfight at sea off East Aceh, Aceh military spokesman Firdaus Komarno said here on Tuesday. "The marines fired on the rebels' boat after the guerrillas responded to warning shots by opening fire," Komarno said, as quoted by AFP, adding that 12 Kalashnikov assault rifles and thousands of bullets were found on the rebel boat.

The government accuses the separatist Free Aceh Movement (GAM) of numerous truce violations and last Thursday threatened to go back to war within five days unless there was progress towards settling disputes.

The 26-year separatist insurgency has killed an estimated 10,000 people, mainly civilians.

Hopes rise for peace in Aceh

Jakarta Post - April 15, 2003

Tiarna Siboro, Jakarta -- Hopes for salvaging the Aceh peace agreement rose again on Monday after both the government and the Free Aceh Movement (GAM) agreed to sit down at the negotiating table to discuss various alleged violations of the accord signed last year.

They have yet to agree, however, on a time and a place as both parties are insisting on dates and venues of their own choosing.

Henry Dunant Centre (HDC) representative Budimir Lonoar, who was also one of the "wise men" involved in the talks between the government and GAM, met with Coordinating Minister of Political and Security Affairs Susilo Bambang Yudhoyono on Monday to convey GAM's readiness to attend a Joint Council meeting, four days after the government gave a five-day deadline for the secessionist movement to change its position.

Lonoar, according to Lt. Gen. Sudi Silalahi, an assistant to the Minister Susilo Bambang Yudhoyono, said that GAM wanted to hold the meeting on April 24 in Geneva.

The government, according to Sudi, was still insisting that the meeting be held as soon as possible either in Indonesia or one of what the government claimed were three neutral countries -- Malaysia, Brunei Darussalam or Thailand. It was not immediately clear if GAM had accepted Indonesia's proposal that the meeting be held in one of the three countries as Lonoar refused to talk to the press before or after the meeting.

GAM, which has been fighting for independence for the resource- rich province since 1976, had previously sent a letter stating its decision not to attend a Joint Council meeting requested by the government to resolve the alleged violations of the truce. GAM's decision not to attend the meeting angered the government, which took the view that the refusal was the secessionist movement's way of quitting the agreement.

President Megawati Soekarnoputri had instructed the Indonesian Military (TNI) and National Police to prepare for a "security operation" in Aceh should the peace deal fall apart. TNI chief Gen. Endriartono Sutarto said on Monday he would brief Megawati on the preparations for s massive military operation against GAM during a limited Cabinet meeting to be held on Wednesday or Thursday.

Under the peace accord signed in December, both the government and GAM agreed to cease all hostilities. GAM also accepted the special autonomy arrangement for Aceh as the sole basis for future negotiation and agreed to lay down its arms in stages until July 2004. The government, for its part, agreed to stop all military operations in the troubled province and reposition its troops from offensive to defensive positions.

Both parties, however, have failed to fully abide by the agreement. GAM continues to campaign for independence and refuses to lay down their arms, while the government has failed to withdraw its troops to defensive positions. This has led to a deterioration in the security situation in the province where bloody clashes between government troops and GAM have killed more than 10,000 people, mostly innocent civilians. The members of the Joint Security Committee, who are tasked with monitoring the implementation of the peace accord, have all been withdrawn to Banda Aceh due to increasing security threats.

According to Sudi, the planned Joint Council meeting would evaluate the implementation of the peace accord and amend the substance of the deal. He refused to go into detail. "For us [the government], the sooner we hold the meeting the better," Sudi told the press after the meeting.

National Police chief Gen. Da'i Bachtiar said in Denpasar, Bali, on Monday that the government had repeatedly warned GAM that resolute action would be taken if the COHA collapsed. "Therefore, our future efforts will be focused on preventing the secession of Aceh from the Republic of Indonesia," Da'i said, claiming that the intensity of the violations committed by GAM had increased with shootings, kidnappings and murders became more frequent.

In Banda Aceh, international mediators said Monday they were confident the Indonesian Military would not launch an all-out attack on GAM this week despite earlier threats.

HDC representative David Gorman said the meeting would probably be held next week but the date and location were still being negotiated. "I can guarantee there will be no military operation before the Joint Council meeting and I believe that in the Joint Council meeting, like in the past, all the problems can be solved," he told AFP.

Gorman said retired US General Anthony Zinni -- a US Middle East peace envoy and one of the "wise men" who helped broker the Aceh pact reached in December -- would attend the Joint Council meeting.

Aceh: Chess game with military hardliners

Laksamana.Net - April 13, 2003

In the weeks to come, President Megawati Sukarnoputri will face a crucial decision whether she will surrender to pressure from the military hardliners trying to force her to take military action in putting down the separatism group the Free Aceh Movement (GAM).

Growing public and international pressure is also mounting for Megawati to cancel plans to launch a new military operation.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said last Monday that the President had already ordered the military and police to be ready for operations in Aceh.

This gave the impression that the government will reverse its position on the cessation of hostilities agreement (COHA) with GAM and undermine the peace process under the pretext of the increasing tension in Aceh.

The pressure from the military hardliners was voiced clearly by Army Chief of Staff Ryamizard Ryacudu. "No country would recognize rebels, let alone negotiate with them. We're all too lenient," he said.

In an effort to show the infectiveness of the Geneva peace agreement signed on December 9 last year, Ryacudu quoted an intelligence report that stated that during the ceasefire, GAM had recruited new members, increasing its strength to 5,000. It also increased its stock of weapons. While previously, they had only 1,500 rifles, they now have 2,100.

Unlike his superior, Armed Forces Commander Endriartono Sutarto, who is more moderate and less confrontational to the government's attempt to negotiate peace, the army chief appears to side with the reactionary group in the army. This group wants to cancel the Geneva Peace Agreement and undermine the process of demilitarization and disarmament established by COHA, a process supposed to be completed by July.

When Ryacudu visited the Pidie military district command last month, hundreds turned out to warmly welcome the general, calling for the military to set up more posts and for the dissolution of the Joint Security Committee (JSC) established to oversee the COHA process and to act as the referee between the government and GAM. The demonstration showed that Ryacudu is generating pressure for an end to JSC.

The military hardliners in Jakarta are quite aware that should GAM finally agreed to lay down its arms and to store all its weapons by July 9, the military would have lost its justification to put down the rebellion through military operations. The military hardliners are also aware that the logical consequence would be to halt all military operations in the province, with redeployment of troops from offensive to defensive positions.

Under such circumstances, the military hardliners in Jakarta would have lost the chance of creating a condition in which Megawati would remain dependent on the military.

In facing such pressure from the military, Megawati has tried to neutralize the military moves. By ordering the military and the police to prepare for armed operations to put down GAM, analysts believe Megawati's aim has been to crystallize vocal resistance to such a move from various sectors of society in Jakarta and Aceh and in the international community.

If the statement was meant to send the message to the anti- military side to raise its game, it achieved its effect. Growing criticism has come from party politicians, academics, NGOs activists, public figures and ordinary people in Aceh.

Ibrahim Ambong, chairman of House Commission 1 overseeing Foreign Affairs, signaled Friday that the parliament may summon Yudhoyono and Armed Forces Commander Sutarto to clarify the government's plan to take military action in Aceh.

The ineffectiveness of the military approach to Aceh was also voiced by former President Abdurrahman Wahid on the same day. Wahid warned that if the government insists on attacking GAM, both the moderate and the extreme wings of GAM will unite in taking up arms against Jakarta.

Megawati witnessed during her childhood the difficulty faced by her father, founding President Sukarno, when he was forced to depend on General Abdul Haris Nasution to put down rebellions in Sumatera and Sulawesi in the late 1950s.

The success of Nasution and the army in undermining the position of the rebellious colonels in the outer islands brought with the high price of a stronger bargaining position for the generals in Jakarta. This in turn prompted Sukarno to strengthen the role of the Indonesian Communist Party (PKI) as a countervailing force against the army led by Nasution and later by Achmad Yani.

After Sukarno's downfall in 1966, several of his ardent supporters said that by building the triangle of Sukarno, the army and the PKI in an effort to create a balance of power among the political elites, Sukarno in reality was trapped in his own game and closed the door to popular support in neutralizing the military's drive to dominate the political scene.

Under strong pressure from Nasution, Sukarno issued the presidential decree known as the decree of July 5, 1959. The essence of this decree was to provide an outlet for the military to play politics independently of the president. At the same time, the decree crippled the function of the political parties.

The situation facing Megawati is quite different, as the system of checks and balances between the executuve and the legislature are functioning well. The parliament is more aggressive than the government.

In a situation where pressure from the general public as well as the parliament is quite strong, the military faces difficulty in dictating to Megawati.

The failure of National Intelligence (BIN) Chief A.M. Hendropriyono to push through the anti-terrorism bill which gives BIN the authority to detain terrorism suspects, has proved the effectiveness of public pressure and the parliament in blocking the hidden agenda of the military.

Sofyan Daud: 'We shall face them with guerilla tactics'

Tempo - April 20, 2003

The armed conflict between the Indonesian armed forces, TNI, and the Free Acheh Movement, GAM, is hotting up again and victims have started to fall also.

This condition was spearheaded by the torching of the office of the Joint Security Committee (JSC), the peacemaker of the conflict.

The offer of the Indonesian government for another negotiation at the Joint Council level was rejected by GAM. This deadlock has entailed with the threat by Jakarta to launch a military operation.

The Free Acheh Movement that is determined to free Acheh does not seem to be frightened by this threat. They have prepared a special strategy to block the TNI's assault through what they call an improvised guerilla tactic. "We have predicted this from the beginning," said the spokesman of GAM who is also it's Commander for Pash Region, Sofyan Dawod.

This 35 year-old man in fact has forecasted that the TNI would carried out all sorts of provocations to derail the Cessation of Hostilities Agreement (CoHA). So what's GAM's reaction?

Tempo correspondent Zainal Bakri interviewed Sofyan through an exchange of electronic mails last week. Here are some excepts:

How is GAM's preparation in facing the TNI's planned attack?

The Acheh National Armed Forces (TNA) has predicted this from the beginning. The Indonesian Army chief of Staff Ryamizard Ryacudu factor has made us to take the wait-and-see position from the beginning of the peace process. We have calculated that the TNI AD (Indonesian Army) would be launching all sorts of provocative actions in order to derail the CoHA in order to create an excuse for the relaunching of a military operation. If indeed finally Jakarta launch such an operation, there will be no other way for TNA but to open up our battle fields also.

What have you prepared to face the TNI?

There is no need for any special preparation. We are still going to face them with improvised guerilla tactics. We shall determine when and where to fight.

Why did GAM increase its personnel as well as armement capacities during the peace process?

We did no such thing. It is true though that just before the signing of the CoHA, the TNA received 7 pieces of the SS-1 weapons from our TNI friends who were being pulled out to Central Java. We have more than enough fighters. After the signing of the CoHA, many Achehnese youths asked to be trained and inducted into the TNA, but we rejected all, because not only that accepting them would be against the CoHA, but it would also create logistical problems for us.

Your troops have been accused of extorting money from the people of Acheh.

That's a ridiculous allegation. GAM does indeed collect taxes from businessmen. Many of them have in fact realized it [paying taxes to GAM] as a responsibility and many others have refused. Taxation is never a voluntary donation. Paying taxes is an obligation [in any country]. GAM does not collect taxes from the poor, we in fact give to them, at least once a year, during the Islamic Id celebration. The use of the tax money by GAM is very accountable and transparent. Indeed, it is the taxes collected by the Indonesian Government that is muddled and constituting an irony for the the people of Acheh.

How does GAM see the rejection of the Peace Zones and the increase of TNI troops?

It is clearly visible that the anti-JSC demonstrations and the rejection of the Zone of Peace demands were orchestrated by the TNI AD. Participants of the demonstrations were mostly Javanese militias, paid thugs and members of the TNI/POLRI (police) in civilian cloths. The strangest thing is that such demonstrations, although carried out in anarchy, were let to take place without hindrance by the Indonesian security apparata. But the genuin popular demonstration calling for democracy and in support of the Peace Zones have been banned and dispersed by force.

What is the worse possibility for the people of Acheh if Jakarta launched this military assault?

The worse effect will be its impact on the civilians. It has always been the experience for the Achehnese that the TNI and POLRI do not hesitate at all to point their weapons at the non- combattants.

Girl aged 10 is latest victim of Aceh's long war

Agence France Presse - April 13, 2003

A 10-year-old girl has become the latest victim of violence in Aceh, where a four-month-old peace pact between the Indonesian government and separatist rebels is close to breaking down.

Ina Rahmati was shot dead by a stray bullet while her friend Fitriana, 12, was critically wounded in an exchange of gunfire between the Free Aceh Movement (GAM) and police Saturday, the state Antara news agency said Sunday. The children were helping their families pick cucumbers at Cot Uno in Bireuen district.

Aceh police spokesman Sayed Hoesainy said the firefight followed an ambush by separatist rebels on police who were trying to haul their truck out of a ditch. "They [the children] were shot by the GAM rebels who fired their guns blindly," he said. The local GAM spokesman could not immediately be reached for comment.

The province on Sumatra island saw an upsurge in violence last week with almost 20 people killed since Tuesday. International and local peace monitors have been withdrawn from field offices to the provincial capital after attacks and intimidation by pro- government crowds. The government accuses the GAM of numerous violations of the peace pact.

Last Thursday it told troops to be ready to go back to war within five days if necessary, unless disputes over the pact could be settled at a meeting of a Joint Council -- the final arbiter.

Separatist rebels said they would refuse to attend any meeting inside Indonesia and proposed Geneva. Mediators from the Henry Dunant Centre were frantically trying to get an agreement between the two sides on a date and venue.

Of the estimated 10,000 deaths in the war since 1976, most have been civilians.

Old fears return to haunt restive Aceh

Reuters - April 14, 2003

Banda Aceh -- Ginger farmer Sulaiman looks pensively across his fertile field in Indonesia's restive Aceh province, afraid fresh military operations could soon shatter the calm ushered in by a landmark peace pact.

Leaning against his plough, Sulaiman, 46, wonders how much longer he will be able to work his one-hectare plot without fear. The 100 or so peace monitors in Aceh have withdrawn to the provincial capital for their own safety and the military have threatened a full-scale attack on the Free Aceh Movement (GAM).

"The monitors stabilised Aceh. They had introduced a new flowering to Aceh life, which until then was in chaos," Sulaiman said, speaking on the outskirts of the local capital, Banda Aceh.

Indonesia's government and the rebels signed the peace agreement four months ago and, until recent weeks, the deal had dramatically reduced the level of violence in Aceh. For the first time in years, the fog of fear had lifted from the Acehnese.

At least 10,000 people, many of them civilians, were killed in more than two decades of fighting leading up to the pact.

Now, from farmers to students, shop vendors to businessmen in this resource-rich region on the northern tip of Sumatra, fears of gunfire, bomb blasts and intimidation have returned.

Renewed clashes between government troops and rebels, and attacks on the facilities of peace monitors, have put the peace pact in jeopardy. Indonesia has proposed a high-level meeting to try to sort out these problems but has not set any date.

"The situation is just like before the agreement was signed. I am now afraid to go out at night," said Anita, 37, shopping at a Banda Aceh market.

Indonesia said on Sunday the peace process could be put back on track if separatists agreed to attend an emergency meeting. Those comments came just days after the government said it could resume full combat missions in Aceh, 1,700 km northwest of Jakarta.

Many Acehnese are haunted by the military. "All the traumatic memories from military operations have returned since the Indonesian military said it might renew that option," Ahmad, a resident in north Aceh, told a local newspaper.

"We really fear for our lives because the joint security members have left their office in Lhoksemawe," he said, referring to one GAM stronghold where the peace monitors had been based.

Rusdi, a 24-year-old student eating at an open-air night market in central Banda Aceh, told Reuters: "The two sides can't control themselves. Indonesia and GAM forces on the ground aren't serious about sticking to the deal." Both sides have traded accusations over who is to blame.

The government and the military have become especially incensed at what they say is GAM's campaign to use the peace process to drum up support for independence.

The issue of autonomy versus independence for Aceh is one some analysts say was not addressed properly in the peace agreement. This left GAM room for manoeuvre on the issue despite foreign support for the view that Aceh is part of Indonesia.

Some analysts have also accused the military of trying to sideline the peace monitors and said protests against them appeared to have been carried out by pro-government people.

One resident who showed no faith in anyone, not even the monitors, was Ismail, a coconut drink vendor in Banda Aceh. "The peace pact has no meaning to the people, what we see is another disaster for us Acehnese who are sandwiched between the scams of Indonesia and GAM," Ismail, 34, said dismissively.

Fear reigns in troubled Aceh

Jakarta Post - April 14, 2003

Nani Farida and Arya Abhiseka, Banda Aceh -- As fear was once again on the rise here, Acehnese leaders warned the government against launching a military operation in Aceh, saying that it had been proven in the past, that such an approach would certainly not resolve the conflict.

Imam Su'ja, chairman of the Acehnese chapter of the second largest Muslim organization, Muhammadiyah called on the two warring sides to listen to the Acehnese people's plea for dialog, emphasizing that war was not the answer.

"Both sides should have stuck to the deal and maintained it. Didn't we share the happiness when the deal was signed," he said. He implied that both sides were lacking commitment in establishing peace in the resource-rich province.

Meanwhile, several Acehnese figures expressed their fresh fears of the renewed military operation and called on the two warring parties to pursue dialog to salvage the peace agreement.

The people in northern Aceh who had enjoyed days and nights without any terror, intimidation and gun shots over the past four months, now are fearful again.

"All the traumatic memories from the military operation have returned since the Indonesian Military (TNI) said it might renew that option," Ahmad, a resident of North Aceh told The Jakarta Post on Sunday.

"We really fear for our lives, because the the Joint Security Committee [JSC] members have left their office in Lhoksemawe. People are frightened since the recent assassination of rebels and the gunfights between the two sides," he said.

Thamrin Ananda, a student activist from the Aceh People's Democratic Fighters Front (FPDRA), said that a military operation would certainly bring another problem for the Acehnese. "The history has shown that a military approach only creates more fighting against the government instead of solving the problem," he said. There should be an extra effort from all sides to stop the TNI from further aggression in Aceh, he added.

Acehnese councillor Nasir Djamil said that the government should have concentrated on providing assistance for the Acehnese and upholding justice. "We have to optimize the peace deal, which in the past four-months successfully decreased the number of casualties and both sides had to maintain the peace spirit," he said.

The government launched a decade-long military operation between 1989 and 1999 in an attempt to quell the Free Aceh Movement (GAM), but as a result, the conflict was far from settled, while thousands of innocent people were killed. There have been other attempts to solve the issue, but all have failed to a certain degree.

Influential leaders Syafii Maarif, chairman of Muhammadiyah, Deputy Chairman of the National Commission of Human Rights Solahuddin Wahid and Muslim intellectual Nurcholish Madjid have also called on security authorities to leave the Aceh problem to civilians.

Nurcholish called for the appointment of Coordinating Minister for People's Welfare Yusuf Kalla to handle deals with GAM and the Henry Dunant Centre (HDC) and replace all military and police personnel in the JSC.

Chairman of the Nahdlatul Ulama (NU) Hasyim Muzadi said, however, that he disagreed with the role the government had given to the Switzerland-based human rights organization, the HDC to broker the peace process.

He claimed that the HDC did not have enough knowledge or experience in Aceh to settle the conflict between the TNI and GAM, in addition to its very limited authority to enforce the peace pact. "HDC does not really understand the situation in Aceh and has no information on the background of each side," Hasyim alleged.

West Papua

Papuan in army detention dies after grave maltreatment

Elsham News Report - April 15, 2003

Wamena -- According to a report from ELSHAM's contact post in Wamena, a detainee named Yapenas Murib, from Ilekma who was arrested a few days ago died in military custody at the military command, Kodim 1702 on Tuesday, 5am.

He died as the result of very grave torture inflicted by his military captors. The day before he died, Yapenas Murip together with Kanius Murip were dragged along the street for three kilometers, in the direction of Ilekma, three kilometers south of Wamena town.

Kanius was handcuffed and two ropes were tied round Yapenas' neck, like a cow. Soldiers then pulled the ropes in opposite directions, one from the front and one from behind. When he fell to the ground, soldiers kicked him and ordered him to stand up and run. When he did so, the soldier holding the rope from behind pulled it very hard and when he fell again, the soldier holding the rope in front pulled him forward as hard as he could.

This appalling violence against the detainee was repeated a number of times and was witnessed by members of the public along the road from Sinakma to Ilekma. A witness said that when he arrived in Ilekma at 6pm, Yapenas was able to eat supper but the following morning he was found dead. He was due to be buried today, Tuesday. No one has been allowed to see the body and doctors and personnel at the hospital have been ordered to say nothing.

Doctor Nugroho who conducted an autopsy refused to say anything when ELSHAM phoned to ask him about his findings. As soon as he realised who was making the call, he put the phone down. ELSHAM tried to contact him three times, but he refused to take the calls.

Nothing is yet known about what Yapenas is alleged to have done and why he was arrested with such horrific consequences. Some sources say that Yapenes and Kanius handed in three weapons (stolen from the army post) to a military mediator. ELSHAM has not been able to establish how these weapons came to be in the hands of the two men. A soldier on guard duty at the military command, who took the phone when ELSHAM called, would only say that the commander was away attending a meeting at army headquarters in Jakarta.

The police in Wamena confirmed that Yapenas Murip was dead. ELSHAM has also been informed that another detainee whose name is not known has been hospitalised in the Wamena General Hospital. This detainee is understood to have been tortured; his chest and waist have been slashed with a knife. Personnel at the hospital said that they were only permitted to treat the detainee with iodine.

Suspected arms thief dies in custody of military

Jakarta Post - April 16, 2003

Nethy Dharma Somba, Jayapura -- Yapenas Murib, 35, one of four civilians suspected of involvement in the theft of arms at the a military district headquarters in Wamena on March 4, died on Tuesday.

Yapenas's death caused confusion as he had supposedly no health problems moments before when he reconstructed how he and other suspects helped rebels break into the Army arsenal. Dr. Setyo Nugroho, who examined Yapenas' body, said the suspect died of a respiratory problem.

Maj. Gen. Nurdin Zainal, chief of the Trikora Military Command overseeing security in the province, confirmed that the suspect died on his way to the general hospital in Wamena at 6:05 p.m. local time on Tuesday.

"Yapenas' body has been handed over to his family for burial, but the investigation into the case will continue," he said, adding that the suspect had developed breathing problems moments after eating lunch after the reconstruction of the crime.

Yapenas, along with three other civilians, was arrested last Wednesday after being implicated in the fatal attack on two on- duty soldiers and the theft of 29 rifles and thousands of rounds of ammunition from the military district's arsenal in the small town. Two soldiers and a rebel were killed in the attack. Nineteen of the stolen rifles have been recovered.

No information has been released regarding the identities of the three other suspects, nor of the rebels who reportedly stole the arms. The military is also questioning 20 soldiers on suspicion of an insider job.

The Army has deployed 144 soldiers from the Army's Special Forces (Kopassus) and the Strategic Reserves Command (Kostrad) to help the local military track down and arrest at least 15 rebels who stole the arms.

During military interrogation, Yapenas and three other suspects confessed playing a part in the attack and the arms theft.

Yohanis G. Bonay, coordinator of the coalition of local non- governmental organizations monitoring the Wamena case, said he would send colleagues to Wamena to investigate Yapenas' death. "I cannot comment at the present, but let us investigate the death to make sure that the suspect was not murdered," he said.

Amnesty investigates reports that military tortured Papuans

Jakarta Post - April 15, 2003

Jakarta -- Amnesty International said on Tuesday that Indonesian troops had reportedly tortured villagers and torched homes during a hunt for separatist rebels in Papua province.

The rights group said in a statement that a human rights activist who was briefly detained at Jayawijaya Military District Command in the town of Wamena on April 12 reported seeing at least 20 people in detention.

"Many of the detainees were reportedly injured as a result of being tortured," the London-based group said as quoted by AFP.

It said two of the group were arrested in the nearby village of Ilekma earlier that day during an army search for suspected members of the Free Papua Movement (OPM) seperatist group.

"A number of other people were beaten, houses broken into and possessions stolen. Nine houses were also burnt down," Amnesty said. "According to local human rights monitors, Ilekma was targeted on the basis of information extracted under torture from detainees in [the district military command]."

Amnesty urged supporters to write to Indonesian military chiefs and embassies expressing concern for the safety of the detainees and appealing for an end to torture.

Minister increases Papua confusion

Jakarta Post - April 14, 2003

Nethy Dharma Somba, Jayapura -- Home affairs minister Hari Sabarno has added to the confusion surrounding the partition of the autonomous province of Papua into three provinces -- Papua, Central Irian Jaya, and West Irian Jaya.

While emphasizing that the government would need one full year to prepare for the partition of the country's easternmost province, Minister Hari said in Jayapura, Papua, on Saturday that Abraham O. Atururi was the legitimate governor of West Irian Jaya province. Yet, Hari, who visited Papua last Saturday to swear in 11 new regents in Papua, also said that there was only one governor in the province, namely the incumbent J.P. Salossa.

The confusion started early this year when President Megawati Soekarnoputri issued Decree No. 1 of 2003, which accelerated the division of Papua province, whose size is triple that of Java island.

The decree, however, immediately drew strong protests from most Papuans, who argued that the move violated Law No. 25 of 2001, which granted the province special autonomy.

Under the special autonomy arrangement, any move to partition the province would need to be endorsed by the Papuan People's Assembly (MRP), the highest legislative body in autonomous Papua.

As this assembly has not been established yet, Papuans and most analysts in Jakarta suspect that the partition is designed to weaken the low-level, poorly organized secessionist campaign mounted by the Free Papua Movement (OPM).

Minister Hari said on Saturday that the government needed one year to complete the technical preparations for the establishment of the new provinces, implying that the division had not yet taken place.

He said Presidential Decree No. 1/2003 did not stipulate the exact time for the establishment of the new provinces, but nevertheless condoned Abraham's move to inaugurate the province of West Irian Jaya in Manokwari in February.

The move, he said, was completely acceptable based on Law No. 45/1999, which split the province into three and appointed Abraham as the governor of West Irian Jaya province.

Bowing to pressure from Papuans, former president Abdurrahman Wahid issued a decree indefinitely delaying the implementation of the law. Law No. 25, 2001 on special autonomy for Papua makes no reference to Law No. 45, 1999.

"It is completely legitimate if he [Abraham] claims to be the West Irian Jaya governor," said Hari, adding that Abraham's duties were to prepare the necessary infrastructure for the new province.

"Abraham is not allowed to administer the territory of West," said Hari, adding that Governor Salossa was still in charge of all of Papua. "There will be a new presidential decree issued on West Irian Jaya province," Hari said without saying when it would be promulgated.

Abraham told The Jakarta Post earlier that he had still lacked staff and an office. "I only manage the preparations, such as preparing for the establishment of the provincial council to elect a definitive governor and deputy governor," he said.

The Brussels-based International Crisis Group (ICG) has said that the division of Papua has major political ramifications as the 2004 elections nears.

The former ruling party, Golkar, still dominates the provincial government and legislature while supporters of its main rival, Megawati's Indonesian Democratic Party of Struggle (PDI Perjuangan), have accused the governor of using special autonomy revenues to beef up Golkar's 2004 war chest.

Golkar members suggest that the division into three provinces would benefit the rival party and enable the new governors to divert funds to the local PDI Perjuangan campaigns.

"The overriding motivation behind the decree appears to have been the weakening of the Papuan independence movement, but far from lessening the possibility of conflict, the decree may actually increase its rich province to be a single territorial unit," the ICG said in its report.

War in Iraq

Indonesian muslims rally for Iraq

Radio Australia - April 14, 2003

In Indonesia, about 5,000 Muslims have staged a rally near the city of Yogyakarta to pray for the people of Iraq.

Members of Islamic boarding schools in and around Yogyakarta in Central Java gathered after midday prayers outside a mosque for the rally. Police said no incidents were reported.

In Jakarta, divers at Sea World marine park staged an underwater demonstration, unfurling a three-meter-long banner reading "Stop war, stop violence" inside the aquarium.

'War on terrorism'

Bashir 'ordered Mega killed but JI member said no'

Agence France Presse - April 17, 2003

Jakarta -- Indonesian cleric Abu Bakar Bashir, accused of leading the Jemaah Islamiah (JI) terror network, had ordered the assassination of President Megawati Sukarnoputri when she was still vice-president, according to a copy of his indictment obtained yesterday.

But another leading JI member had refused the order from Bashir on the grounds that it was not feasible, the indictment alleged.

It said Bashir had ordered a man called Mukhlas -- a key suspect in the Bali bombings -- to plan the assassination of Ms Megawati in 2000 because she supported the Christians.

Mukhlas, when told of Bashir's order by a fellow JI member, was quoted in the indictment as saying: "We have no capability for that. The refusal is not against the oath, because our oath says a leader's order should be carried out according to the assignee's ability."

The 25-page indictment said Mukhlas was appointed in 2001 as the head of JI's Region One, which covers Malaysia and Singapore. It said he replaced Hambali, who is wanted for a series of bomb attacks in Indonesia.

Ms Megawati became President in July 2001. Meanwhile, court spokesman Andi Samsan Nganro said Bashir would go on trial next Wednesday. The detained Muslim radical is charged with treason for waging a JI campaign to overthrow the government and set up an Islamic state. Under Indonesian law, an act of treason is punishable by death if it causes loss of life.

JI is blamed for the Bali blasts last October which killed 202 people, and for a series of other bombings or attempted bombings in the region.

Mr Nganro said the trial by five judges would be held at a function hall owned by the state meteorological agency in Central Jakarta and would be open to the public.

"Our main concern is the security aspect of the trial, not to mention that the regular court building is inadequate to be used for this trial," he said. Jakarta police will "provide adequate security", a spokesman said without elaborating.

Bashir, 64, is not charged with the Bali blasts. The indictment alleged that he gave his blessing to the Christmas Eve bombings of churches and priests in 2000 which killed 19 people in Indonesia. It said the cleric "also approved planning to bomb American interests in Singapore" -- a plot which was foiled with the first round of arrests in December 2001.

Bashir charged with bomb plots in Indonesia, Singapore

Agence France Presse - April 14, 2003

Prosecutors accused Muslim cleric Abu Bakar Bashir of plotting terror bombings in Indonesia and Singapore as part of a campaign to topple the Indonesian government and set up an Islamic state.

An indictment filed in court describes the Muslim cleric as "emir" or leader of the Jemaah Islamiyah (JI) regional terror network which is blamed for a series of bombings or attempted bombings in the region. Bashir is formally charged with treason, which is punishable with a 20-year jail term, and three immigration offences.

He is accused of conspiring to commit treason with Abdullah Sungkar, Hambali, Zulkarnaen, Imam Samudra and Mukhlas. Hambali, as the suspected former operations chief of JI, is Asia's most wanted man. Samudra and Mukhlas are awiting trial for the Bali bombings last October which killed 202 people.

The 25-page charge sheet does not accuse Bashir, 64, of direct involvement in the Bali bombings. But it says he gave his blessing to the Christmas Eve bombings of churches and priests in 2000 which killed 19 people in Indonesia.

Bashir "also approved the planning to bomb American interests in Singapore known as programme C," it says. Singapore foiled that bombing plot with the arrest of a large number of JI suspects.

The charges, along with thousands of pages of evidence, were handed over in preparation for a trial. A court official said it could take part in Jakarta "within weeks." "The defendant is the leader and organiser of treason with the intention of topple the government and fulfilling his intention of setting up the Islamic State of Indonesia," the charge reads.

It says Bashir and Abdullah Sungkar, who has since died of natural causes, set up JI in the 1990s with Sungkar as leader and Bashir as his deputy.

The three immigration charges accuse Bashir of making false documents to show he is a resident of the Java town of Ngruki, where he set up an Islamic boarding school. Bashir is also accused of making a false affidavit about his whereabouts from 1985 to 1999 and with failing to carry out his obligations as a foreigner in Indonesia.

Bashir fled to Malaysia in 1985 after serving a three-year jail term for subversion but never notified the Indonesian embassy there of his presence -- a necessary requirement if he wished to retain his Indonesian citizenship. He returned to Indonesia after the fall of dictator Suharto in 1998.

Bashir, who was detained last October, was not present in court. He denies any links to terrorism but has described al-Qaeda leader Osama bin Laden as "a true Muslim fighter."

Government & politics

Megawati anticipates worst case scenario

Laksamana.Net - April 20, 2003

As a confirmed candidate in the 2004 direct presidential election, President Megawati Sukarnoputri and her ruling Indonesian Democratic Party of Struggle (PDI-P) seem well aware that the choice of a running mate will be as vital as building solid and stable party coalitions.

Two PDI-P functionaries, chairman of the national executive board Roy B.B. Janis and deputy secretary general Pramono Anung, admitted lasy week that to win the presidential race, Megawati and her running mate must gain more than 50% of the vote.

"In reaching that target, PDI-P needs coalitions with several political parties. Ideally, it must be a two party coalition but a multi-party coalition will be much better for national stability," said Pramono Anung at the party headquarters.

PDI-P from the outset has tried to anticipate the worst scenario, in which Megawati's running mate would withdraw from the political coalition, or take sides with another party that offers more promise.

Janis, who is also leader of the PDI-P faction in the House, added that the party will decide on its presidential and vice presidential candidate as one packet when the general election for the House of Representatives is over, providing a clear picture of the composition of support of the parties.

"it is realistic because in an general election we are talking about real support of political parties. Thus it is quite logical if the nomination of presidential and vice presidential candidates will be conducted after the election of legislators," he said.

This gives the impression that Megawati, already nominated by her party as the undisputed presidential candidate, will seek a strong and grass roots-based party proven at the polls to provide her running mate.

Should a chosen party for a coalition withdraw, PDI-P points to article 45 paragraph of the draft Presidential Electoral Law: "In a situation when a political party withdraws its candidate as presidential candidate and/or the candidate resigns after nomination as a candidate, the candidate and the political party that propose the candidate concerned, cannot be allowed to take part in the election." If this article can be adopted, there will be no turning back, forcing parties to make political calculations as accurately as possible.

A member of the special committee on the bill, PDI-P member Firman Jaya Deli, told reporters that the section is aimed at conditioning the parties to adopt consistency and enabling the creation of long-lasting political coalitions.

The section also stipulates that, in a situation where a vice presidential candidate is withdrawn by the political party that proposed the candidate, or the candidate resigns at least three days before the general election, the political party that propose the candidate can nominate another candidate.

Paragraph f of the same article stipulates that in a situation where a vice presidential candidate cannot meet the requirements of the law, the presidential candidate can nominate a substitute from the same party as the original candidate, again as long as the action is taken at least three days before the election.

Amien Rais, chairman of the National Mandate Party (PAN) and Speaker of the People's Consultative Assembly, has a different suggestion.

"The coalition built after the legislative election would not be genuinely based on the result of that election, but would be absolutely pragmatic. In accordance with the revised 1945 constitution," added Rais, "the presidential system should not be related to the vote percentage within the House of Representatives."

"Thus, give the freedom to the people to choose their favorite presidential candidate without having to be connected with their political parties, thus it will be more objective."

Rai's idea is not unprecedented. Presidential elections in the United States do not always coincide with the vote in Congress.

The debate comes as analysts predict that PDI-P has no hope of repeating its success in gaining 34% of votes in 1999, now being seen as a corrupt party.

The image of Megawati herself is different, since she retains the aura of her father, Sukarno, and her firm stand on the nationalist platform continue to provide strong support.

Thus in the eyes of moderate nationalists as well as moderate Muslim groups, Megawati is seen as the best among the worst. And, add the analaysts, she has also impressed as a symbol of stability and firmness.

This again suggests that at the direct presidential election, Megawati's political prospects are more promising than PDI-P hope of gaining support from across the range of society.

Muslim parties merge to take part in 2004 elections

Agence France Presse - April 20, 2003

The Justice Party (PK), a small but vocal Islamic political party officially merged into another Islamic party, the Prosperous Justice Party (PKS) in a move that would enable its candidates to take part in the 2004 general elections.

The merger into the PKS was announced by PK Chairman Hidayat Nurwahid during a rally of about 5,000 members and supporters of both parties in Jakarta's National Monument Square.

"We cannot just stop because of a mere electoral treshold ... we should continue to step forward," Nurwahid told the crowd, explaining the reasons for the merger. "We do not feel that we have made a bad choice ... they are our continuity, they are our younger generation," Nurwahid said, adding that both PK and PKS shared the same committment regarding "Islam, Humanitarianism and justice."

PK is one of the many small Indonesian political parties that would not be able to take part in the 2004 elections under a new law on political parties, which set eligibility at two percent of the votes in the previous elections. PK obtained 1,436,565 votes, or 1.36 percent of the total but has six seats at the 500-seat parliament following a vote-sharing accord with eight other parties in the last elections. PKS is a new party created last year.

Both parties have been behind many of the anti-US and anti-war protests that have taken place almost daily in several cities across Indonesia since the US-led invasion of Iraq.

'All parties must stand equal chance'

Jakarta Post - April 16, 2003

Kurniawan Hari, Jakarta -- More politicians and observers have demanded that all political parties, be they big or small, be afforded equal chances of nominating their own presidential and vice presidential candidates.

Therefore, the argue, the restrictions limiting the size of the presidential election field must be dropped.

Article 5 (4) of the presidential elections bill allows only political parties or coalitions that garnered 20 percent of the seats in the House of Representatives (DPR) to nominate a presidential candidate.

"The limitation will only facilitate the big parties in maintaining their positions. There will be no new faces contesting the presidential election," said Muslim cleric Solahuddin Wahid of Nahdlatul Ulama (NU) at a discussion here on Tuesday.

Indonesia is scheduled to hold its first ever direct presidential election between June and August 2004. In the last election in 1999, only the Indonesian Democratic Party of Struggle (PDI Perjuangan) and Golkar won more than 20 percent of the vote.

Sulastomo, coordinator of the Straight Path Movement, concurred with Solahuddin, saying that such a restriction would prevent figures from new parties from contesting the election.

All factions in the House, except the PDI Perjuangan, Golkar, and the military/police factions have rejected the restriction. They constitute more than half of the votes in the House.

Minister of Home Affairs Hari Sabarno said earlier that the limitation was designed to ensure that presidential candidates were nominated by big parties with enough support as reflected by the number of seats they held in the House.

According to Hari, this scheme would create an effective government in which the president could count on significant support from the House. This explanation has been rejected by many politicians.

The chairpersons of three political parties, the New Indonesia Alliance Party (PIB), the Banteng Kemerdekaan Nationalist Party (PNBK), and the National Democratic Party (PDK), issued a joint statement on Tuesday rejecting the limitation.

Sjahrir of the PIB, Eros Djarot of the PNBK, and Ryaas Rasyid of the PDK said that the restriction was unconstitutional and was not in line with the principles underlaying the presidential system. Article 6 A (2) of the Constitution states that presidential and vice presidential candidates are nominated by political parties or coalitions prior to the elections.

There is no stipulation that restricts smaller parties from nominating presidential candidates.

They said the limitation was simply a ploy by the powerholders to retain power. The 1945 Constitution does not make any connection between presidential candidature and the number of seats a political party gains in the general election.

Separately, Amien Rais, the chairman of the National Mandate Party (PAN), the country's fifth largest party, said on Tuesday that the presidential elections must not be linked to the election of members of the legislature.

He said that if the a presidential candidature was based on the number of seats in the legislature, then Indonesia would have a parliamentary system. He stressed that the country had adopted the presidential system.

Amien, who is also the speaker of the People's Consultative Assembly (MPR), said the freedom of the people to elect their president would be restricted should the limitation be endorsed. "Please give the people the freedom to elect the candidate of their choice without restriction," Amien said.

Moreover, Amien suggested that the presidential and vice presidential candidates nominated by political parties or coalitions should be announced before the legislative elections.

Coalitions would simply be based on short-term interests should the candidates be announced after the legislative elections, he said.

Campaign countdown to start next March: KPU

Jakarta Post - April 16, 2003

Arya Abhiseka, Jakarta -- The General Elections Commission (KPU) announced on Tuesday the campaign period ahead of the upcoming legislative election would take place between March 11 and April 1, 2004.

The KPU is also mandated to ensure that the election campaign runs in a peaceful, educative and well-organized manner and that clashes involving racial or religious issues are avoided.

"We will look into cooperating with the police force to provide security during the campaign," KPU deputy chairman Ramlan Surbakti said here.

The KPU will announce the parties qualifying for the 2004 legislative election on December 8 this year. The announcement will follow party verification by the Ministry of Justice and Human Rights, which the KPU says will finish on Oct. 27.

During the campaign period, all eligible parties will be allowed to hold campaign rallies. The KPU will organize the schedule for each party to campaign.

"We are also looking into cooperation with regional governments and the media to monitor campaign equipment and political advertisements in the media," he said.

The country's first-ever direct elections will begin nationwide on April 5 next year for the legislative election to be followed by a presidential election in which some 130 million voters are expected to participate.

On a separate note, KPU plans to send more voter registration forms to several regions that have complained of a shortage of forms.

"We have printed the additional registration forms to be sent to about 22 regions. We will allocate about Rp 950 million [US$106,741] from our current budget," Ramlan said, however he declined to reveal from where he would obtain the money.

The lack of registration forms is among several problems facing the voter registration process as earlier the commission's partner, the Central Statistics Agency (BPS) had signaled a delay in its deadline of April 30.

Previously, the BPS revealed that unofficial field officers were conducting voter registration, creating confusion among the BPS and the public. The BPS predicted that the voter registration process would be delayed by about two weeks due to the duplicate entries by the trained and untrained officers.

The KPU is still convinced that the election will run according to plan. "Everything is subject to changes and adjustments. However, the election will proceed within its planned time frame," Ramlan said.

KPU Timetable for the Legislative Elections, April 5, 2004

1. Party verification process July 9-October 9, 2003
2. Aggregation process for parliamentary seats July 8-July 28, 2003
3. Announcement and draw of eligible parties ballot numbers December 8, 2003
4. Political campaign period March 11-April 1, 2004
5. Cooling-off period April 2-April 4, 2004
6. Legislative election day (8am until 2pm) April 5, 2004
7. Announcement of the election result April 21-April 30, 2004
8. Inauguration of new members of the House of Representatives
   • Regental House members July 2004
   • Provincial House members August 2004
   • House of Representatives members and Regional Representatives Council September 2004
   • national holiday

[Source: KPU]

Corruption/collusion/nepotism

Texmaco gets special treatment (again)

Laksamana.Net - April 15, 2003

When engineering and textiles giant Texmaco announced the first of what promises to be a series of defaults on credit last week, the country got an abrupt reminder of the disgraceful price it is still paying for bailing out near-defunct crony conglomerates.

The Indonesian Bank Restructuring Agency (IBRA), established to manage assets nationalized after the financial crisis of the late 1990s, was apparently unprepared to deal with Texmaco's inability to honor a letter of credit due in the first week of April -- but all signs point to more trouble ahead.

Texmaco is the single biggest debtor to the government after it injected over Rp28 trillion to keep the company afloat at the height of the crisis. Few believe the company is really worth the price the government paid.

Only last week IBRA admitted that the recovery rate on a selection of collateral assets surrendered by indebted former bank owners was less than 10% of the book value reported when the assets were proffered as collateral on government loans.

Head of IBRA's asset management investment division Edi Sinaga said the assets handed over by four conglomerates had a book value of over Rp107 trillion but added that IBRA would only recover around Rp10.5 trillion when it sells them before July this year.

These conglomerates at least surrendered assets -- albeit at heinously marked-up prices -- but not Texmaco.

Texmaco signed an agreement with IBRA during the administration of former president Abdurrahman Wahid in May 2001. Under the deal, the company pledged to hand over all its assets to a new holding company under IBRA, but Texmaco boss Marimutu Sinivasan retained effective control.

Amid widespread suspicion of massive collusion with government officials, IBRA "watchdogs" were only represented at the holding company level and not within the conglomerate's units.

A source of Singapore's Business Times confirmed that IBRA did not review transactions until after they had been carried out -- a system apparently favored by both sides thus far.

Long absence

Texmaco and Sinivasan have been noticeably absent from the headlines in recent months. This changed on Monday last week, when Sinivasan made a rare statement to the press in which he -- promised -- to pay 30% of the Rp1.137 trillion channeled into his now defunct Bank Putera Multikarsa by the end of the month.

Under the so-called Shareholders Obligation Resolution scheme (PKPS), obliging debtors may escape criminal prosecution for misuse of the funds provided but this hasn't stopped Sinivasan and numerous other debtor-tycoons from virtually ignoring it.

Sinivasan said an account containing Rp260 billion at Bank Central Asia (BCA) would be used but the account had already been blocked by the central bank, reported detikcom.

Bank Indonesia director of bank monitoring Anton Sabar Torihoran said the block was being studied by BI and IBRA officials but he was unwilling to comment further.

Perhaps something was afoot at the highest level of government and banking circles?

Alarms ring out

When Texmaco announced that it was unable to honor a Letter of Credit (LC) facility from Bank BNI, few were surprised that the country's largest ever corporate debt workout could be in danger of collapse.

The real cause for alarm was that the company had defaulted on such a piddling amount -- just $29 million that BNI lent to the holding company with IBRA's guarantee.

Bank BNI has $99 million in LCs tied up at Texmaco and its public push for IBRA support in the default matter raised eyebrows, as the state-run bank was assured of IBRA's guarantee.

Worse still, IBRA chairman Syafruddin Temenggung admitted on Tuesday last week when the alarm bells were ringing loudest that the LC had been taken out by Texmaco's textile unit PT Polysindo Perkasa but the funds had been diverted into its equally troublesome engineering unit.

The company and IBRA spokespersons argued that Texmaco was suffering a cash-flow crunch due to the rising costs of raw materials and the recent lull in the global economy.

IBRA's asset management credit division head Mohammad Syahrial admitted the textile unit was running at a loss, reported detikcom

He also let it slip to the press that Texmaco had obligations in excess of $70 million falling due in the near future -- although he did not specify the timeframe or the measures proposed to meet payment deadlines.

IBRA steps in

On the Tuesday, IBRA spokespersons said they were concentrating on how Texmaco could restructure its $29 million LC.

Temenggung said IBRA would "request" that Sinivasan provide his own funds to support the working capital of the engineering unit, while the textile unit would likely receive $20-30 million from the banking sector, although he declined to elaborate.

There were also assurances that IBRA would separate the textile and engineering units and assume greater control over both, while Temenggung estimated that IBRA would place around seven financial controllers within Texmaco.

By Thursday after a meeting of IBRA, BNI, Texmaco and Finance Sector Policy Committee (KKSK) representatives, Temenggung announced that IBRA would pay the outstanding $29 million to BNI if Sinivasan was unable to pay immediately. But, he added, the tycoon would have to provide collateral of an equal value, reported detikcom.

When quizzed on why Texmaco was receiving special treatment, IBRA's Syahrial outright denied that Texmaco benefited from any "particular facility" backed by the government or that the state would suffer losses due to the default.

Interestingly, the minister in charge of IBRA, State-owned Enterprises Minister Laksamana Sukardi, apparently did not share Temenggung and Syahrial's enthusiasm for the bailout.

He told reporters Thursday that the risks should be born by the banks involved because their function was to develop strategic and successful businesses.

"So, hand the problem of covering the risk over to the bankers. Every kind of loan involves risks and the ones who take on the risks are the banks," he said. Nevertheless, he added that his Ministry was studying the Texmaco case and the bank's ability to cover the risk in terms of its current cashflow.

The agreement reached on Thursday also involved the placement of independent financial supervisors of PT Sucofindo in all Texmaco subsidiaries, reported Asia Pulse.

The KKSK directive issued on the matter also stated that Texmaco's textile and non-textile units are to have separate escrow accounts to better control management and prevent further deviations in funding. The programs contained in the KKSK directive would be reviewed every month, Temenggung said.

The KKSK directive also reportedly obliged Sinivasan to inject $25 million into Newco Texmaco by August at the latest, Syahrial confirmed Friday. The deal was contained in the formal agreement to be signed by IBRA, BNI and Texmaco that very afternoon, he said.

Further news has been scarce but Syahrial said, if Sinivasan is unable to honor its obligations, he would not rule out the possibility of IBRA taking over ownership of Texmaco.

The Indonesian public must only wonder what this dubious "threat" to take Texmaco from Sinivasan will actually entail. No doubt, many already suspect that the state will once again protect the interests of the elite few who continue to burden the country's nascent recovery from the devastation of the late 1990s.

Long arm of law can't reach the rich

Straits Times - April 15, 2003

Robert Go, Jakarta -- Indonesia is in the midst of a crackdown. Between 1997 and 1999, the government lent US$14 billion to ailing banks to keep them from going under.

But audits since then have shown "improprieties" involving as much as 95 per cent of that money, and the bulk of this money appears to have simply disappeared.

Two weeks ago, the courts sentenced three former senior directors of Bank Indonesia (BI), the country's central bank, to jail. More verdicts are expected.

The scandal might even rope in -- and the attorney-general might question -- Finance Minister Boediono and former central bank governor Sudradjad Djiwandono.

Justice at last? Well, not exactly, if what the folks here are saying is any indication. People are talking about bank owners, those who had assumed direct control over the cash after it left BI. They are rich, and perhaps above the law.

Anti-corruption experts share the same sentiment. The signs are not encouraging. The clean-up campaign may be netting some small fry but the big ones are getting away, they say.

Some examples: Bank owner Samadikun Hartono. Accused of embezzling 1.69 trillion rupiah during his tenure as president of the Modern Bank, he got off scot-free in August last year.

Bank owner Kaharudin Ongko. Accused of swindling the state out of 6.7 trillion rupiah, he was cleared of all charges in January.

Bank owner David Nusa Wijaya. Declared guilty of illegally taking 1.27 trillion rupiah, he has gone missing, whereabouts unknown, the authorities claim.

Other prominent members of the Indonesian business circles have made various deals with the government and handed over assets to cover what they owed. So, how does it work? These people return money they allegedly stole and so they do not face corruption charges? Experts are disgusted by what they are seeing and think there is no way the government can catch the rich. A convicted BI official said the courts seemed interested only in coming up with scapegoats. The conviction track record backs up that assertion.

The credibility of Indonesia and its courts is at one of its lowest points ever. Tough judgments against rich tycoons might be one way to fix that bad image. Unfortunately, many who are familiar with how things work here are saying: "Don't hold your breath."

Media/press freedom

'Tempo' attackers charged with minor offenses

Jakarta Post - April 17, 2003

M. Taufiqurrahman and Muninggar Sri Saraswati, Jakarta -- Marked by the presence of hundreds of people alleged to be those taking part in storming the weekly's office, the trial of the Tempo attack began on Wednesday at the Central Jakarta District Court, with prosecutors accusing the defendants of only committing a minor offense.

The defendants David Tjioe, alias A Miauw, and Hidayat Lukman alias Teddy Uban, minions of tycoon Tomy Winata were both indicted for violating Article 335 of the Criminal Code on encouraging others to perpetrate acts of violence, which carries a maximum punishment of one year in prison.

The first indictment for David, read by chief prosecutor, Ramdhanu Dwiyantoro, said that the defendants committed an act of violence against Tempo chief editor Bambang Harymurti, who declined to reveal the source of an article which he said harmed the business interests of Tomy Winata. As for Teddy Uban who was tried separately, prosecutor M. Manik said that the defendant verbally and physically harassed journalist Achmad Taufik. He was accused of violating the same article.

Teddy and David -- who were placed under city arrest from April 1 to April 20 -- were among a group of people who stormed the weekly's office in early March, demanding a retraction of article insinuating that Artha Graha Group's Tomy Winata was responsible for a fire that devastated the Tanah Abang market in mid- February.

The indictment, however, made no mention of three other people -- Yosef, Septi and Abdul Haris Sumbi -- who had previously been named as suspects. Police earlier said that dossiers for the three had to be completed before they could be brought to court, but sources revealed that they would be presented merely as witnesses.

Prosecutors, in the indictment, only stated four names -- David, Haris, Habib Hamid and Guntur -- without any clarification regarding their status in the case.

After prosecutors read the indictment, presiding judge Sunaryo concluded the hearing, announcing that a follow-up hearing was scheduled for April 22.

Farhat Abbas, one of the defendants' lawyers, said that considering that his clients were indicted only for a minor offense, the advocates would not submit a defense statement and would instead submit a plea. He, however, played down the possibility of presenting Tomy as a witness in the next hearing.

In the course of the hearing, hundreds of people alleged to be the security guards of Tomy were seen inside the court building. They were easily recognizable from their uniforms.

Separately, as many as 30 people under the organization Solidarity for Press Freedom visited the Jakarta Police Headquarters in a bid to complain to the police for not charging David and Teddy, the alleged attackers of Tempo under Law No. 40/199 on the media. Under the law, persons can be charged for obstructing journalists from reporting.

Among the protesters were Leo Batubara, the chairman of SPS print media publisher group, senior journalist Fikri Jufri and noted economist Faisal Basri.

The protesters met police spokesman Adj. Sr. Comr. Prasetyo as Jakarta Police chief Insp. Gen. Makbul Padmanagara was not available. "Why didn't the police charge them under the law?" said Bimo Nugroho, one of the protesters.

Bimo also questioned the police's move to name Bambang Harymurti and Ahmad Taufik as suspects in a defamation suit filed by Tomy. The protesters warned that the police's move may threaten press freedom in the country.

Regional/communal conflicts

200,000 people remain displaced throughout archipelago

Jakarta Post - April 19, 2003

Jakarta (Antara) -- About 200,000 Indonesians are still taking refuge in a number of areas across the country due to social conflicts, a minister said on Friday.

"Actually, the government has prepared to resettle the refugees of certain areas and Rp 750,000 in cash for each refugee family," Minister of Social Affairs Bachtiar Chamsyah was quoted by Antara as saying.

Hopefully, no citizens would be claiming refuge by August this year, when all 200,000 refugees would be returned to their homes or were resettled in predetermined locations, he said.

The social affairs ministry spent Rp 1.5 trillion in returning 1.2 million refugees to their hometowns last year.

He said the refugees, particularly those from the conflict-torn areas of Poso and Ambon, had wanted to return to their hometowns, because the warring camps had agreed to end their conflict.

RMS supporters warned of subversion

Jakarta Post - April 17, 2003

Azis Tunny, Ambon -- Maluku authorities renewed their warning against the South Maluku Republic (RMS) separatist movement, saying strong measures would be taken against those supporting for RMS and its affiliate, the Maluku Sovereignty Forum (FKM), in observance of the separatist movement's 54th anniversary on April 24.

"We will take immediate harsh action against any organizations or individuals providing political and financial support to either RMS and FKM, if the current persuasive approach is found to be ineffective," said Maj. Gen. Agustadi, commander of the operation to restore security and order in the province, on Wednesday.

Agustadi was responding to the incident on Tuesday, when an RMS flag was raised in front of an elementary school in Kudamati, a stronghold of the RMS, in the Maluku province's capital of Ambon, despite a recent ban by acting governor Herman Sinyo Sarundayang.

He said the police would investigate the incident, after a man was arrested and questioned in connection to the case. "So far, no group or individual has claimed responsibility for raising the flag; so the police will continue to investigate," he said.

Agustadi, who is also chief of the Pattimura Military Command overseeing security in Maluku and North Maluku, said that security authorities had disseminated circulars in RMS strongholds in the province via helicopter, calling on the people not to celebrate the secessionist movement's anniversary because it was against the law.

"Those breaching the rule will face subversion charges," he added, and said that a team of security personnel had already been deployed to increase security in RMS strongholds, in anticipation of a possible anniversary celebration.

Last year, dozens of FKM supporters, including FKM chairman Alex Manuputty, were arrested for raising the RMS flag in celebrating the movement's 53rd anniversary. The South Jakarta District Court sentenced Manuputty to three years imprisonment for subversion; Manuputty is filing an appeal with the Jakarta High Court.

The revival of the RMS over the last three years has been an obstacle to the restoration of security and order and the implementation of the Malino peace agreement, which was drawn up to end the sectarian conflict that broke out on January 19, 1999. More than 6,000 people have been killed and around 750,000 others have been displaced during the conflict.

The extreme group Laskar Jihad has defended the presence of its militiamen in the province to repel the separatist movement, which is reported to have won the support of the Christian faction in Maluku.

So far, the civilian state of emergency imposed in July 2001 has yet to be lifted because of the sporadic violence in the province. The central government has also delayed the gubernatorial election in Maluku for the same reason.

The next two years will be a crucial period for the province, particularly in regards its planned gubernatorial election and the 2004 Indonesian general elections.

Human rights/law

Court retains 'the best of the worst' in big reshuffle

Jakarta Post - April 19, 2003

Muninggar Sri Saraswati, Jakarta -- The Supreme Court shifted 64 mid- and low-level division heads from their posts on Thursday, the biggest reshuffling to occur in the country's judicial history, in an effort to boost its poor performance and repair the corrupt judiciary.

As many as nine officials of the Echelon 3 were dismissed from their positions as division heads for brokering appeal cases submitted to the Supreme Court.

Supreme Court Secretary-General Gunanto Sunaryo told reporters that the reorganization was part of the court's reform agenda to repair its badly tarnished image. "If you want to kill a snake, you have to strike at its head," he said, referring to senior administrative officials and senior legal clerks in the mid- and low-level division units.

Earlier this month, the court removed 12 of its upper-level division heads and replaced them with 12 new legal clerks. The Supreme Court currently employs more than 1,000 officers.

Gunanto, who admitted that some of the court's senior officials "are not clean", claimed to be satisfied with the Court's move to revamp itself. "They are the best of the worst," he commented, when asked why the court kept some of the officials.

Gunanto said that the reform agenda, which was planned last year, had won the full support of the top Supreme Court officials. The decisions of the shuffle, he said, were based on reports from the division heads' supervisors, judges, lawyers and ordinary citizens. He added that he had frequently received letters of complaint regarding several officials who had boasted about themselves and their skills.

Gunanto, who leads the Court secretary-general division that handles court administrative matters and personnel, warned all officials against abusing their power, since the court was the final and highest institution the people came to in search of justice.

"It's we who judge your performance, not you ... All this time, you have contributed to the Supreme Court's negative image. If I hear similar things [in future], I will not hesitate to dismiss you," Gunanto warned in his speech during the ceremony marking the reorganization.

He promised he would regularly monitor and evaluate the newly appointed officials. "If your performance declines, or if you don't do your jobs correctly, or if I hear people say that you use your positions to make money, I won't hesitate to dismiss you," he added.

Legal observers have said that corruption at court not only involved the judges, but also administrative officers in the middle and lower tiers, who reportedly have the power to either accelerate or to delay a hearing.

Last year, a mid-level official at the Supreme Court was reported to the police for allegedly forging a justice's signature on a verdict.

The Indonesian Corruption Watch (ICW) has included court administrators as part of the widespread systemic court mafia in the country.

"No matter how small the power of a court clerk, it has the potential of becoming a commodity of corruption," the ICW said in its latest report. "Court mafia involves all actors ... from the police, court administrators, lawyers and prosecutors, to judges and prison guards," it said.

At the Supreme Court, corruption occurs particularly in those divisions that handle the flow of appeals, such as the Appeal Registration Division. Court administrators are also believed to play a role as brokers in appeal cases.

News & issues

Government shooting itself in foot with new visa policy

Jakarta Post - April 16, 2003

Stefan Reisner, Bali -- Anger, confusion and disbelief -- that is the reaction of the tourist industry and the expatriate community following the drastic change in immigration regulations.

The government recently revoked the visa-free-entry for tourists from 48 countries. The decree means new fees and new red tape -- who would believe that an ailing tourism industry that employs and feeds hundreds of thousands of people could be supported by making it more difficult and unpleasant to visit the country? In Thailand, arriving guests are offered candy at the airport immigration counter, which they pass through within three minutes.

These new regulations would deeply affect tourism and related businesses -- especially small-scale tourism, which serves regions beyond the main destinations of Bali and Java. These regions also attract younger guests -- budget travelers who tend to stay longer (and they have to, due to traffic conditions). These visitors have traveled from far away, interested in discovering the riches of Indonesia's culture and nature.

In explaining the new visa policy the government cites national security, national pride and equality between nations. Well, it seems that what endangers peace and justice in this country is entirely of the making of its own people: Extremism, communalism, lawlessness and insecurity are all homemade. No foreign power nor foreign individual is threatening Indonesia's integrity. Drug dealing and illegal businesses such as smuggling and logging are police matters and should be handled by law enforcement. No drug smuggler would care about higher visa fees, but the family of four who plans a holiday in Indonesia will reconsider: US$50 per head for a visa, an amount which in other countries can be spent for additional days of accommodation and fun.

It is said that Indonesian nationals are discriminated against by high visa fees and bureaucratic screening. Well, so far it has been understood that it is also in the nation's best interest to regulate its labor export and to avoid the embarrassment of a large economic migration.

When it comes to reciprocity, the government has to decide what is more important: Mere theoretical principle or the economic, cultural and political interests of the whole country. There is no doubt that Indonesia benefits more from foreign visitors than is burdened by them.

Thousands of illegal Indonesian immigrants to the United States have been treated leniently, and given grace periods and possibilities to legalize their status -- and this occurred after Indonesia's diplomatic intervention. So what do US tourists get in return from Indonesia -- if they still care to come?

Malaysia, however, has expelled thousands of Indonesian migrant workers in a very inhumane manner -- but has not lost its immigration privilege.

Indonesia is also trying to limit the travel of its own population by raising exit taxes, which hurt the middle class and the young. Developed countries are greatly contributing their taxpayers' money to support the Indonesian economy. Chauvinists here tend to forget easily that the money the country receives and spends from the International Monetary Fund, the World Bank and other agencies and governments, is money collected from taxpayers.

My own country, Germany, has granted not only debt relief, but also supports various projects throughout Indonesia. Most countries of the European Union are doing the same. So it seems the foreign money is welcome, but the foreigners are not. It has not gone unnoticed that Indonesia would need much less foreign aid if only it would be willing to reclaim the stolen state funds from its fraudulent bankers.

We all know how terribly the hotel industry has been hurt by political and criminal incidents in the last two years. There were many promises, not much money and no compassion at all from the government to help it to recover. In Bali, most hotels are empty and many families have found themselves out of work. Small entrepreneurs cannot afford to maintain and repair their hotels and restaurants anymore.

As a result, there has been a drastic drop in quality -- more and more of the very few guests who stay at such establishments have complaints. There has been no improvement in service, beaches are not cleaned properly and even in the holiest of temples, there are more and more hawkers and crooks to harass visitors.

Ironically, the government has no better idea than to propose an entrance fee of $50 for tourists. There is also talk of making health certificates mandatory, which are not issued for free and which costs are not covered by insurance policies.

Expatriates from neighboring countries who loved to come to Bali for extended weekends will surely look for other destinations now. In Bali, we see visitors who stay for an extended period, such as buyers from Europe and the US They come to buy containers of handicraft and furniture in the winter months when business in their countries is low, and they stay for longer than 30 days. With the new visa restriction, they will most likely complete their purchases faster and shorten their leisure time, and thus spend less.

And what about conventions and conferences? These days every dollar counts nowadays for event organizers. Interestingly, participants of the Pacific Asia Travel Association conference in Bali have been reassured that they might be exempted from the new regulation. Will this make the tour operators and travel agents turn a blind eye to the effects of the new visa policy?

There is a lot the government could do: Zoning hotel developments, for instance, as there are far too many hotels already. Instead, even more hotels are being constructed. Also crucial are quality control by independent surveyors, and educational and training programs.

Environmental programs are needed to help protect and save historic sites and the natural environment. But now, whenever a new effort is announced and money granted (mostly via donations from foreign countries) the enthusiasm fades when the TV crews have packed up -- and the money disappears like salt in the ocean.

The immigration officials are reportedly still working on the fine print for the new regulations. I hope there will be enough public interest to enforce a reasonable procedure. Don't stop at issuing visas on arrival, make them extendible (for a moderate fee). Offer special arrangements for visitors who want to stay long time, arrangements which are not as ridiculously complicated as the existing retirement visas.

Simplify the business visa regulations by ending the use of sponsors and middlemen. The existing practice only supports corruption and forces businesspeople to act against the moral principles and the laws of their home countries, such as in the US and the EU, which forbids active corruption.

Indonesia needs to open up their doors to lure more visitors, who should be treated as welcome guests. And if there is a problem of abuse or crime, than it should be a problem for the police, not for immigration. And government officials should study the example of Thailand: This country manages its tourism with excellence.

[The writer is the former foreign editor of the German magazine Stern.]

Visa curbs 'will hurt Jakarta'

Straits Times - April 17, 2003

Robert Go, Jakarta -- Indonesia's recent decision to revoke free visa-on-arrival facilities for tourists from nearly 40 countries has come under fire for dealing another blow to the tourist industry and jeopardising thousands of jobs in the country.

Tourism experts said that at a time when arrival numbers are down and the industry is hit hard by the lingering effects of the Bali blasts, the Iraq war and now Sars, the country should be relaxing regulations to invite as many tourists as possible.

Instead, they complained, the government is making it more difficult and, by imposing a levy, making it more expensive for foreigners to visit Indonesia.

Last year, the country received 4.8 million visitors and earned only about US$3.4 billion -- both figures a quarter lower than the levels in previous years. This year, given the global economic situation, experts were expecting arrivals to be under four million, but with the new rules, they are cutting their estimates further.

Mr Stefan Reisner, owner of the Puri Asri hotel in Ubud, Bali, told The Straits Times: "The problem is pretty severe already. Higher costs and more difficult visa arrangements are going to turn people off the idea of visiting Indonesia even more."

Explaining how bad the situation is, he said hotels in his area, known to be an arts haven and cultural centre in Bali, have an occupancy rate of only about 10 to 15 per cent. He added: "At a time like this, the government should be helping the industry, and not enact policies that harm it."

Similar voices echoed from across the country. Jakarta-based Ms Yanti Sukamdani, president of the Indonesian Hotel and Restaurant Association, said that an industry worth about US$5 billion a year before the Bali blasts could be irrevocably damaged by the new policy.

Till last month, tourists from 48 countries were entitled to automatic 60-day visas free of charge at any of the Indonesian ports of entry, but now that list has been whittled down to only 11. Travellers from the United States, Australia and anywhere in Europe, among other destinations, are now excluded from this list.

Citizens of the excluded countries would each have to pay around US$50 for a visa, and might have to deal with the hassle of applying for it before starting their trips.

Justice Minister Yusril Ihza Mahendra defended the policy, saying it would ensure tighter security, and Tourism Minister I Gede Ardika said the country would benefit from the inflows because of the visas.

There is, however, still some confusion about how the process will actually work. Although President Megawati Sukarnoputri signed the decree on visas on March 31, her subordinates have yet to fully work out the details of the new policy.

For instance, it is unclear whether travellers from the excluded countries can get their visas renewed after expiry or they have to leave and then re-enter Indonesia.

New visa policy is vital for security: Justice Minister

Jakarta Post - April 16, 2003

Jakarta -- Justice Minister Yusril Ihza Mahendra on Tuesday defended a much-criticised decree forcing more tourists to obtain visas, saying the policy was vital to protect internal security.

The decision to abolish visa-free entry for short visits for citizens of 38 countries was based on "considerations on internal security aspects," Yusril said.

"We have found some cases which involved political activities that support the separatist movement in Indonesia," the minister was quoted as saying by AFP.

A British academic and an American nurse who visited a separatist rebel base in Aceh province were jailed last December for violating their tourist visas.

Indonesia now intends to offer visa-free visits to people from just 11 countries or territories -- those which offer Indonesians similar facilities. They are Thailand, Malaysia, Singapore, the Philippines, Brunei, Hong Kong, Macau, Turkey, Peru, Chile and Morocco.

"Of course we need tourists to come to this country but we need them to pay to come to this country as well," Yusril said.

He noted that Australia and the US impose visa fees. "Australia and the US are rich countries. Why do they have to make money from a poor country like us?" Yusril said people who had lost the visa-free privilege would either have to apply for one at an Indonesian embassy or buy one upon arrival. The government would discuss implementation of the policy among related ministries, Yusril said, adding that the projected visa fee was between 40-45 dollars.

The policy would not apply to planned package tours and international conference delegates for the next six months.

Environment

Three more arrested for protest of pulp factory

Jakarta Post - April 16, 2003

Apriadi Gunawan, Medan -- The police in Tarutung, North Tapanuli, North Sumatra, arrested on Tuesday three people for preventing log trucks from supplying raw materials to a pulp mill belonging to PT Toba Pulp Lestari (TPL), in Porsea, some 170 kilometers south of Medan.

The spokesman for the North Sumatra Police, Sr. Comr. Amrin Karim, confirmed here on Tuesday that the three, including a student from Nomensen University in the city, were arrested for blocking the road with used cars on a highway in Sirait Uruk leading to the factory site.

"The arrest was conducted in line with the law. The three identified as Tulus Sirait, Rahman Butar-butar and Binsar Silitonga, were put in the police detention facility in Tarutung, for further investigation," he said.

The three protesters were part of more than 200 people who came to the factory site to protest the reopening of the pulp mill.

The police previously arrested 16 protesters, including two church ministers, for ransacking the office of the Porsea district chief in their protest of the pulp mill's reopening.

The government allowed TPL to resume operations earlier this year after it shut down in October 2000 for environment violations. The reopening was on the condition that TPL would comply with all environmental laws and carry out a social community development program to empower local residents.

The pulp mill, widely believed to be a major polluter of the Asahan River and world-famous Lake Toba, was also accused of damaging road networks in the Toba-Samosir regency. The damage done by the plant sparked strong opposition following the collapse of former president Suharto's repressive regime in 1998. TPL's rayon mill has already been relocated to China.

The pulp mill, which was previously owned entirely by the Radja Garuda Mas (RGM) Group, has resumed operations with an injection of fresh money from two consortia, one from Hong Kong and another from Boston in the US The group is also running another pulp mill PT Riau Andalan Pulp and Paper (RAPP) in Pelalawan, Riau.

Herwin Nasution, executive director of the Medan Environment Forum (Walhi), lambasted police for the recent arrests, saying the three were not involved in the blockade. He also said the police should not intimidate local residents opposed to the pulp mill's reopening.

"The people staged the demonstration to protest the government's policy as well as the intimidation by the local police against citizens opposing the pulp mill's reopening," he said.

He said he had received many reports that the local police in Porsea have frequently shot their guns at night as a way to intimidate the people. He called on security authorities to facilitate a dialog between the management and locals and not to use a repressive security approach as it would not solve the problem.

TPL Deputy Manager Wi Lim said despite the continued protest, the management would continue trial operations until the factory was able to operate at full capacity.

"We will continue the operation because such a protest is normal in democracy but protesters should comply with the law in airing their aspirations," he said, explaining that during the trial period, the mill would continue to operate with a capacity of between 200 tons and 300 tons per day.

The company has supplied its raw materials from forests in several locations in the province and purchased other logs from local loggers. House Deputy Speaker Soetarjo Soerjogoeritno, in his visit to the pulp plant last week, said he was happy about the company's reopening because it would contribute money to the local administration, and indirectly support dozens of small companies in the area that employed some 15,000 workers.

He also called on the local administration to actively disseminate information on why the government had allowed the pulp mill to resume operations.

Health & education

Bill reduces education to religious matters

Jakarta Post - April 17, 2003

Moch. N. Kurniawan, Jakarta -- Despite strong criticism and opposition from numerous parties, the government and the House of Representatives looked set to go ahead with the controversial education system bill, which would reduce national education to religious matters.

The bill, with a minor change in its latest version, fell short of identifying the agents of education and defining the intelligence, as opposed to the behavioral, factor as the main goal of national education, and instead stipulated that the main goal of national education was to create faithful and devoted citizens.

Education is a vast field, but in its various aspects, it can be divided into formal and informal education. Formal education aims at increasing the knowledge and skills of educational recipients and is provided by educational institutions, while informal education, including ethics and morality, falls within the responsibility of society.

One thing the bill fails to cover, and which omission sparked strong criticism from education experts and professionals, is the important role families and religious institutions play in encouraging learning.

According to education experts, families and religious institutions should play an active role as agents of education, because they are part of students' daily environment, and therefore, religious education should not be entrusted to educational institutions.

"The thesis is that moral decadence should not be blamed on educational institutions, but on families and religious institutions which assume responsibility in religious education. The prevalent corrupt, collusive and nepotistic practices should not be blamed on formal education institutions, which have been accused of failing to educate their graduates to behave well," education expert Mochtar Buchori said recently.

Article 13 of the bill focuses on students' right to religious education, and requires schools to recruit special teachers to provide religious instruction for their students. Critics say this stipulation is erroneous, because this responsibility should fall on families and religious institutions, including mosques, churches and temples.

Rev. I. Ismartono of the Bishop Conference of Indonesia (KWI) concurred and said that the government and the House should hastily endorse the bill to avoid causing friction in society. "It's regretful that the bill reduces national education to religious matters," he said.

The House was schedule to endorse the bill on May 2 to mark National Education Day.

The bill also stipulates that the principle of equality in the national education system had indeed retained the discriminative practice of allowing religious organizations to run their own educational institutions.

The problem as to why Muslim students go to Christian schools, or vice versa, should not be solved through the contentious Article 13, because it went against religion-based school missions.

The ruling should prevail for state-run schools and universities. A minor change has been already made but it does not solve the problem. With the minor change, the recruitment of special teachers for religious instructions is mandatory for schools with ten students or more. "It will, for example, force Catholic schools to admit less than 10 Muslim students to avoid the obligation," said Ismartono.

Such issues in the education bill has sparked a number of religious leaders and education experts to call for a delay of the planned endorsement of the bill in May.

The bill also requires citizens between the ages of seven and 15 to undertake religious education according to their faith, but it does not determine who should assume this responsibility.

Infant mortality rate rises amid economic crisis

Jakarta Post - April 17, 2003

Moch. N. Kurniawan, Jakarta -- The government has expressed concern over the rising infant mortality rate, which has increased from 47 babies per 1,000 births in 1997 to 51 babies in 2001 amid the lingering economic crisis.

"We predict the infant mortality rate will be about 50 per 1,000 births in 2004," S. Soemantri of the Research and Development Unit at the Ministry of Health said on Wednesday at a round table discussion held by the National Family Planning Board (BKKBN).

The government also said that the post-natal maternal mortality rate had increased from 325 mothers per 100,000 births in 1995 to 396 mothers in 2001. Some experts even said the maternal mortality rate could be as high as 594 per 100,000 births.

"The economic crisis has increased the number of people without access to health services. Thus the mortality rate for babies and mothers has been increasing. We're the second worst in Southeast Asia after Myanmar." Siswanto A. Wilopo, BKKBN deputy chairman for family planning and reproductive health, told reporters.

According to Siswanto, with an infant mortality rate of over 47 babies per 1,000 births, this meant that over 140,000 babies aged less than one week died per year, or 2,690 per week.

For mothers, Siswanto said, given the present maternal mortality rate, over 300 mothers died every week after giving birth, almost the same as the total passenger complement of a full Airbus plane.

Soemantri went on to say that the government must give more attention to providing health services for babies and mothers in light of the findings. "The increase in the infant and maternal mortality rate over the past few years is not something we expected," he said.

According to Soemantri, with such a high infant mortality rate, Indonesia would only be able to reduce the figure to less than 20 per 1,000 births after 2025.

Sri Hariati Hatmadji, a researcher at the University of Indonesia, agreed with Soemantri, saying that 18 provinces in the country still had infant mortality rates of over 50 per 1,000 births.

According to Sri, the main killers of babies was premature birth and being underweight at birth, followed by respiratory infections and diarrhea. For mothers, bleeding after birth and anemia were two of the main causes of deaths, she said.

Siswanto further said that the high mortality rates for babies and mothers, and their tendency to increase, should encourage the government to pay more attention to family planning.

"We must ensure that our family planning program continues as it can control pregnancies thus reducing the possibilities of death. We are going to increase our coverage from about 25 million couples -- or about 57 percent of total couples -- to 70 percent," he said.

Bill on education is like a time bomb, critics say

Jakarta Post - April 14, 2003

Moch. N. Kurniawan, Jakarta -- Public demands for a revision of the education bill have been increasing with a call for the House of Representatives to delay its endorsement in order to avert a major rift in society.

Rev. I. Ismartono, spokesman of the Bishops Conference of Indonesia (KWI), Solahuddin Wahid of the largest Muslim organization Nadhlatul Ulama, education observer Muchtar Buchori agreed that the current bill on education had too many flaws.

"It's a time bomb [for the country] that could explode some time in the future," Muchtar said on Sunday. The bill's substance had focused too much on religious matters in a bid to curb increasing immorality in the country, he said, while adding that such a move was wrong, as the current immorality was a result of the country's bad political system.

He said that morality education would be fruitful if four factors were met -- knowing what moral values are, understanding them, having commitment and implementing them in our lives. "But, if even one of these factors is omitted, we will create a seed of hypocrisy," he said.

Muchtar, also a legislator from the Indonesian Democratic Party of Struggle (PDI Perjuangan), called on all parties to sit together to talk about the ideal guidelines for the education system to develop the nation rather than politicizing education.

The most controversial issue in the bill is Article 13, which stipulates that all students have the right to take religious classes from their own religion regardless if a particular school is Christian, Buddhist, Hindu or Muslim. All religion-based schools therefore would have to hire special teachers to give religious instruction to students who were, for example Buddhists at a private Hindu school, and also to provide special places of worship for each religion represented within its student body. The bill specifies that a school would be required to provide religious teachers if students from one religion numbered more than ten.

Meanwhile, Ismartono said if the House pressed ahead with the endorsement of the education bill in May, the bill would reflect an arbitrary process of dominant political parties. "This bill has put the future of our children at risk and could disrupt the nation's unity. It would not be proper if it were endorsed," he said.

He also said the bill would force private schools to discriminate against students based on their religion. For example, if the bill is passed, many Catholic schools, which often have many Muslim students, would be forced to limit the number of Muslim students to below ten to avoid the obligation of providing Muslim teachers and special facilities, Ismartono said. "It's better if the schools and parents talk about how to provide religious teaching rather than to make such a contentious law," he said.

Solahuddin said that the House should listen to the many voices who say that the bill had lost its focus on education and given more attention to religious education. "The friction in society has been very high because of the education bill. So the House should not force it through. Why should we endorse the bill if it is not applicable?" he asked.

Armed forces/police

Analysts back move to cut dependence on US weaponry

Jakarta Post - April 19, 2003

Fabiola Desy Unidjaja, Jakarta -- Defense analysts have thrown their support behind government moves to look for other arms suppliers in a bid to cut its dependence on the United States, which has imposed a military embargo on the country since 1991.

"It will be easier to procure arms from Russia, than to woo the US Congress to allow us to repair our F-16 planes," Juwono Sudarsono told The Jakarta Post on Thursday.

Some of Indonesia's US-made fighter planes have been grounded because of difficulties in purchasing spare parts incurred by the military embargo. The embargo was placed on Indonesia following the Santa Cruz incident in 1991, in which Indonesian troops opened fire on a group of East Timorese protesters, killing dozens of civilians.

Although bilateral relations between the two countries have improved since Indonesia joined the US-led global war against terrorism, especially after the police demonstrated their strong resolve in investigating the Bali terrorist attacks of October 12, 2002, there have been no indications that the US would ease its military embargo against Indonesia.

According to Yuwono, who was formerly minister of defense, there would be a slight difficulty in the maintenance and repairing of the new arms from Russia, as the country's military had been dependent on US arms for almost three decades. "However, it can be taken care of, because many western companies are now familiar with Russian weaponry," Juwono said.

President Megawati Soekarnoputri left for Romania on Thursday evening on the first leg of her three-nation tour, which would also take her to Russia and Poland.

In Russia, Megawati, who is traveling with Indonesian Military (TNI) Chief Gen. Endriartono Sutarto, is expected to sign a number of memoranda of understanding, including one on the purchase of four warplanes -- two Sukhoi 27 and two Sukhoi 30.

Endriartono said on Thursday that the presidential entourage would look into the possibility of purchasing the Sukhoi 27 jet fighter and Mi-35 technical helicopter. "The jet fighter will be for the Air Force, while the helicopter will be for the Army," Endriartono said.

He admitted that it would take some time to shift from using US- made weapons to Russian-made arms. However, he stressed that it had to be done because of the immediate need for the military to improve its capabilities. "Of course, it [the shift in weaponry] will be made gradually, because we cannot afford to change everything at the same time," Endriartono remarked.

Juwono said he suspected TNI has contacted the Malaysian Air Force, which currently uses the Sukhoi jet fighters, to know more on the maintenance of the planes. "However, with the current budget constraint, it is still questionable whether Russia could agree with the purchase," he said. "I suspect that there will be a counter trade, maybe with the oil agreement that the two countries might also sign," Juwono said.

Megawati will arrive in Russia on Sunday, and is expected to sign a contract in Moscow for four Russian Sukhoi fighter planes, the Vedomosti business daily reported. The contract, for four SU-27 jets, is worth between US$100 million to US$120 million, and will be signed during the visit, the newspaper quoted an industry source as saying.

According to a source at the Russian military-industrial complex as quoted by Interfax news agency, Indonesia will place an order for two Sukhoi-27 and two Sukhoi-30. During her trip to Russia, Megawati will also visit a Sukhoi testing base outside Moscow, Interfax added.

International relations

Making sense of Megawati's Moscow trip

Straits Times - April 19, 2003

Graham Gerard Ong -- It may pale in comparison to reports about the postwar reconstruction of Iraq, but the recent public announcement of Indonesian President Megawati Sukarnoputri's official visit to Moscow and her meeting with Russian President Vladimir Putin next Monday deserves to be taken seriously.

The four-day diplomatic trip, announced by Indonesian Foreign Minister Hassan Wirayuda, not only underlines Indonesia's opposition to the United States-led campaign in Iraq, but is also a signal that it will not have its national interests dictated to by Washington or anyone else.

However, the nuances of the message require some reflection. Indonesia's Foreign Ministry and other diplomatic sources say there are two aims behind the trip. First, it will touch on the Iraq crisis. Second, this common ground will bring the two countries closer together on "bottom-line issues" such as trade -- Russia's long-held interest in Indonesia's oil and gas sector, and arms sales.

Though Mr Wirayuda has said the first part of the discussion will focus on the rebuilding of postwar Iraq, the theme will definitely be their shared frustrations with the US. Moscow and Jakarta stand almost shoulder to shoulder on their opposition to the war. Russia, a permanent member of the United Nations Security Council, has maintained that the military incursion was illegal.

The most populous Muslim country in the world, the Indonesian consensus against the war has been strong and immense. The view was held in official statements by the country's leaders, in proclamations of influential moderate Islamic groups such as the Muhammadiyah, and in the actions of small radical groups such as the Islamic Defenders Front, which had Indonesian recruits volunteering to fight on the side of Iraqi troops.

Yet, both countries failed to stop the war, a shared frustration that will be the basis for an alliance. Mr Wirayuda noted that with "no power to match the US", other countries had a duty to "put stress upon multilateralism to correct this situation".]

Equally interesting was his concluding remark that strengthened ties with Russia was a "strategic" move. He did not say "decisive" or "necessary", which would have conveyed the immediacy of Indo-Russian bilateralism as a check to American dominance in the handling of Iraq. Those descriptions would also have made the intentions behind the secondary discussions on trade and arms sales clear.

American and British companies have long monopolised Indonesia's oil and gas sector. Speeding up Russia's entry into the market could indicate an economy trying to free itself from dependency on Anglo-American foreign direct investment.

Symbol of protest?

It also smacks of protest, in the same way that Indonesia encouraged its citizens to boycott American products prior to the war. As a country still struggling with the same defence concerns since the Cold War, Indonesia is tired of the restrictions caused by a 12-year-old arms sales ban imposed on it by the US, which it feels has no right to dictate on matters of sovereignty, rights and justice.

As an act of defiance and desperation, Indonesia recently purchased from the Russians 10,000 Kalashnikov assault rifles, a squadron of naval Mil-2 helicopters, a dozen amphibious carriers, as well as several premier Sukhoi Su-27 fighter aircraft. It will close more deals at the upcoming meeting.

But the use of the word "strategic" implies the Indonesians, if not also the Russians, have a broader scheme in mind. It raises two questions about Indonesia's current national interests, which are domestic rather than international. Is there an immediate purpose to Indonesia's military upgrading other than to rectify a decade-long security deficit? What else do the two countries have in common?

The answer may lie in their backyards. Just as Russia has to deal with an age-old Chechen insurgency, Indonesia has on its hands a 26-year-old separatist war in Aceh. Both conflicts have claimed thousands of lives and bogged down both governments at home and abroad.

Russian and Indonesian military and political officials have much to gain in sharing their experiences. It is becoming increasingly uncertain whether the fragile peace deal signed between Ms Megawati's government and the rebels of the Free Aceh Movement (GAM) in December last year will hold, after peace monitors were attacked again last week.

Indonesia's military leadership has confirmed that it is ready to go back to war with GAM. Security Minister Susilo Bambang Yudhoyono said there was no other choice. Indonesia may have 21,000 troops in the province against GAM's 5,000 members, but history suggests that future conflict would be protracted. That is, unless Ms Megawati decides to employ massive firepower against the separatists in the way Mr Putin did with Chechen rebels the last few years.

Mr Putin's dramatic handling of a hostage crisis in a Moscow theatre seized by Chechen rebels in September last year will be a useful lesson for a Jakarta bracing itself for similar violence requiring effective counter-force and international support.

US President George W. Bush defended Mr Putin's handling of the hostage crisis. Perhaps Jakarta hopes for the same should it need to put down GAM using decisive force.

Russia could also do with a Muslim Asian ally in its campaign against the US. It would help allay concerns that it is siding only with "old Europe'. For now, Russia holds veto power in the Security Council and that could be good enough for Indonesia.

[The writer is a research associate at the Institute of South- east Asian Studies.]

Economy & investment

Texmaco, IBRA and the battle over debt

Asia Times - April 19, 2003

Bill Guerin, Jakarta -- Textile and engineering giant Texmaco announced last week that it had defaulted on a US$25 million letter of credit facility from Bank BNI 46. The move prompted the Indonesian Bank Restructuring Agency (IBRA) quickly to announce plans to take tighter financial control of the group's diverse enterprises, raising speculation that Indonesia's largest-ever corporate-debt restructuring deal could collapse.

Texmaco employs 150,000 people and has five factories across Java in its core businesses of textiles, synthetic fibers, garments, textile machinery and machine tools. Some legislators have even called the group a national asset, and its flagship, Polysindo Eka Perkasa, is the world's leading polyester producer and the 12th-largest company in Indonesia.

Marimutu Sinivasan, the 65-year-old founder of the Texmaco Group, though born in 1937 in Medan, North Sumatra, is of Tamil-Indian descent, and, like so many of Indonesia's conglomerate builders, began business as a trader, selling batik from Indonesia and importing cotton from southern India. By the early 1980s his textile business had grown into a manufacturer of small-scale machinery used in the industry and Texmaco was poised to benefit from the low labor costs, subsidized energy and low customs tariffs of the era.

By the mid-1990s Texmaco was selling textiles to 55 countries and Polysindo, among the world's largest producers of polyester, saw revenues almost triple from Rp581.6 billion to Rp1.4 trillion in the four years to 1996.

Sinivasan may now risk losing control over his corporate empire, still buried under more than $3.8 billion in debt, but the man once described as a "symbol of impunity" because of his political clout with former presidents Suharto, B J Habibie and Abdurrahman Wahid still has more cards to play.

IBRA said it still wants to maintain Texmaco's current production process so as not to jeopardize the $2.7 billion debt workout it signed with the conglomerate in May 2001. Under that agreement, Texmaco pledged to hand over all its assets to a new holding company controlled by IBRA until the entire debt was repaid over 12 years. But the government allowed Sinivasan to continue to run the company, unlike other agreements with debt-strapped conglomerates.

IBRA chairman Syafruddin Temenggung admitted that although the recent letter of credit had been taken out by Polysindo, the funds had been diverted into the loss-making heavy-engineering and auto-making division, Texmaco Perkasa Engineering BV. This division was supposed to be the catalyst for a high-technology drive whereby Texmaco would become a regional force in the production of heavy trucks and sophisticated machinery.

Financing expansion in the late 1990s ran up debts of Rp942 billion to government banks. These and the other bad loans were later transferred to IBRA.

Texmaco has three other divisions -- textiles, polyester, and steelmaking -- which resulted from a reorganization following the IBRA deal.

Texmaco's ability to service its massive debt in the light of the default is plainly in question, but insiders at IBRA point out that the agency was always aware that Texmaco needed working capital to carry on with its operations.

"Due to higher raw-material costs, they [Texmaco] are finding it difficult to increase production," one source said. "But they are confident that if they can secure support from LCs [letters of credit], they can repay their debt." This implies that IBRA will bail the company out in one form or another.

Mirza Adityaswara, head of Research at Bahana Securities, expressed surprise at the default on such a relatively small amount and said: "Texmaco has been facing problems for some time, but this is the first time that BNI is barking."

This week, as if to prove the engineering group was not in the dire straits described by analysts, the group announced a completed export sale of 100 Perkasa buses to Saudi Arabia. The presence of Manpower Minister Jacob Nuwa Wea and Golkar Party leader Theo L Sambuaga at the handing-over ceremony in Subang speaks volumes. Not only is Sambuaga a commissioner of one of Texmaco's holding companies, he was manpower minister in Suharto's last cabinet.

Market analysts see the significance of this as being a precursor to Sinivasan playing the nationalist card again. Abdurrahman Wahid, president at the time of the restructuring deal, frequently defended Sinivasan and other indebted tycoons as exporters with valuable national assets that must be kept running for the benefit of the country.

Megawati Sukarnoputri's election to the presidency in July 2001 should have heralded doom for Sinivasan inasmuch as one of her closest advisors, Laksamana Sukardi, as state minister for state enterprises and IBRA chief, was widely expected to go after Sinivasan. On November 29, 1999, Sukardi, then Wahid's minister of state enterprises and investment, testified to the Indonesian parliament (DPR) that former president Suharto and Texmaco had engaged in "high-level collusion and conspiracy" to have a state bank extend credit to the conglomerate. Sukardi was referring to Texmaco's receipt of $276 million from Bank Negara Indonesia (BNI) under a government-approved export-assistance program aimed at increasing Indonesia's non-oil-and-gas export earnings. Bank Indonesia, the central bank, dished out pre-shipment facilities -- credit for purchasing materials and to arrange financing for exports -- instead of the standard post-shipment bridging loans.

In December 1997, a month after receiving the BNI credit, Texmaco, threatened with default on some of its foreign debt, asked for another $100 million to be deposited in BNI's Cayman Islands branch. Finally on December 29, Sinivasan asked Suharto for a 100 percent pre-shipment facility, saying the central-bank limit of 50 percent would cost the country jobs, and Suharto released a note of approval.

Sukardi tried his best and Sinivasan was even named as a suspect in the case, but pressure from politicians saw the case gradually disappear from the headlines.

An earlier order for 1,000 trucks by the Indonesian military had motivated Texmaco to finish off its main steelmaking and automobile plant in Subang, West Java, which it began building just before the 1997 Asian financial crisis battered the economy. The military had been offered trucks from South Korea but chose Texmaco's.

Under the deal signed with IBRA in May 2001, Texmaco pledged to hand over all its assets to a new holding company controlled by IBRA until the entire debt was repaid over 12 years. Significantly, unlike other agreements with debt-strapped conglomerates, the government allowed Sinivasan to continue to run the company.

The deal was slammed not only for leaving Sinivasan in control but also for allowing Texmaco too much time to pay back its debts. There was also criticism of the secrecy surrounding IBRA dealings with Texmaco. There were widespread allegations of collusion with government officials, and it was soon made public that IBRA watchdogs were only represented at the holding company level and held no sway within the conglomerate's units.

The IBRA deal with Texmaco remains outside of guidelines on debt restructuring drawn up in consultation with the World Bank and International Monetary Fund. The guidelines specifically forbid original shareholders in indebted companies under IBRA from playing a management role in the restructured company unless they are "cooperative and have sound integrity".

IBRA defends the non-adherence by saying the guidelines had not been followed by a decree.

IBRA has the leeway to liquidate Texmaco if it fails to keep up payments, but the group's greatly deteriorated asset base means that a selloff would not realize anywhere near enough to repay the debt. This is a dilemma that has faced IBRA for years -- sell assets at a loss, or risk waiting for their value to rise.

Officials at IBRA have insisted for two years that Texmaco's debt accord isn't a bailout and that the memorandum of understanding signed with Texmaco gives them the power to liquidate unprofitable units.

Texmaco owes an additional $1.7 billion from debts in its operational units owed to mainly foreign bondholders that has yet to be restructured. About $700 million of that debt is secured against Texmaco's profitable polyester assets.

IBRA, for the government, is between a rock and a hard place. The dilemma of whether to pump more money into Texmaco in the hope of recovering most of its debts or opt for liquidation and face a big writedown is unlikely to be met by the latter choice.

This time around IBRA promises it will review transactions before they are made rather than the reverse, and Temenggung said IBRA would request that Sinivasan provide his own funds to support the working capital of the engineering unit.

There were also assurances that IBRA would separate the textile and engineering units and assume greater control over both, while Temenggung estimated that IBRA would place around seven financial controllers within Texmaco.

However, after a meeting of IBRA, BNI, Texmaco and the powerful Finance Sector Policy Committee (KKSK), the IBRA chief was forced to admit that his agency would pay the outstanding $29 million to BNI if Sinivasan was unable to pay immediately, though quickly adding that Sinivasan would have to provide collateral to an equal value.

IBRA's largest single debtor is a near certainty to outlive its major creditor. The agency is being terminated next year.

Privatization blues in Indonesia

Asia Times - April 19, 2003

Tony Sitathan, Jakarta -- The Indonesian government has officially announced that its privatization exercise for several state-owned enterprises (SOEs) will be delayed until the end of the Iraq crisis. However, several analysts and economists argue that the privatization exercise conducted by the government so far could be delayed even further. So far it has met some resistance and foot-dragging by legislators and certain segments of the business community.

"With the world's attention turning to the events unfolding in Iraq [and] the epidemic caused by the SARS [severe acute respiratory syndrome] virus sweeping across Asia, the delay in privatizing state-owned enterprises is indeed timely if not beneficial to them in the mid- to long term," maintained Febby Andraini, an investment analyst with a state-owned bank in Indonesia. She also indicated that market sentiments are weak, so delaying privatization of SOEs does have its economic merits.

However, she also added that there was a growing awareness among business leaders who are wanting a greater voice in deciding which company falls under the privatization hammer and what is the economic benefit of privatizing state-run companies that are considered national assets. "Some have begun to question the rationale for privatization while others want greater transparency in the privatization process," she said.

Indonesia is not the only country in Asia that is grappling with the privatization issue. Malaysia and Singapore are also courting privatization for some of their nationally owned companies and are reducing their government's stake in these companies. "Singapore has started to realize that there are more pros than cons in privatizing state run companies and under Temasek Holdings, the government's investment arm, they have taken an active role in their divestments and at the same time to make them go regional and international. Singapore Telecoms and the Port of Singapore Authorities are two good examples," said S Ganesan, a regional investment analyst with an international offshore firm based in Singapore.

But can Indonesia follow the example of its neighbors? Indonesia, with 13,500 islands and a population of 230 million, is a different country altogether with its own unique set of reasons for privatization. Already the delay in its privatization exercise is raising eyebrows with the international investment community.

The Ministry of State Enterprises has intentions to raise Rp8 trillion (US$880 million) in order to make up its shortfall in the 2003 state budget. Whether it achieves its target is another question, maintained Ivan Lee, a senior economic consultant with Axiom Consulting based in Hong Kong. "We are seeing a budget- deficit situation already slowing down public expenditure and hitting at consumer-confidence indexes. There have been sudden increases in water rates and public transportation charges that would inevitably influence other consumer prices down the line. Also there is some negative spin to foreign investors taking a larger than preferred share of state-run companies. We are already seeing some political fallout to the Singapore Technologies Telemedia acquisition of PT Indosat," he remarked.

Although the deputy head of the office of the minister of state enterprises, Mahmuddin Yasin, had earlier reported that the war in Iraq had temporarily stalled the privatization plans of the government, he did not comment about the negative impact of foreign investors and their investments on SOEs.

Several legislators, including former president Abdurrahman Wahid, and prominent businessmen are vehemently opposed to foreigners taking a majority stake in such industries as telecommunications, broadcasting, finance and defense-related industries. They have made recent efforts to annul the 40 percent divestment of PT Indosat's shares to Singapore owned ST Telemedia. They have intentions to discredit the selloff and plan to launch a public lawsuit challenging the divestment directive by the Ministry of State Enterprises.

With several other state-owned entities such as Bank Mandiri and pharmaceutical firm PT Indofarma slated for privatization some time this year, and later Garuda Airlines and even certain downstream companies owned by Pertamina, there are some concerns that nationalistic mood swings similar to those surrounding the sale of PT Indosat might be detrimental to the overall mission of the Ministry of State Enterprises and the SOEs it represents.

According to an official from the Ministry of State Enterprises, what was being planned and done was in accordance to what was approved in the General Assembly and even under the former administration of president Suharto. "The responsibilities of the ministry has since been mooted, discussed and approved in parliament almost two years ago and can even be traced back to the time of the former minister of state enterprises Tanri Abeng who served briefly during the time of president Suharto. So why the sudden overreaction from those that say we are selling away our national assets to raise money? We have to open our highly regulated industries and embrace globalization, and compete with our counterparts in Asia failing which we would be left behind," he said.

"We are not just divesting their shares but are gaining foreign talent, expertise as well as technology in making us competitive in the long run. It also tells foreign investors that we welcome them in Indonesia. We need to look outwards instead of looking inwards," he added.

Whether right or wrong, there are certain high-ranking officials in the Ministry of National Development Planning, which is assisting the Ministry of Finance in fine-tuning its economic- development policies, who have their reservations. In the past Kwik Kian Gee, the state minister for national development planning, has argued that Indonesia should opt out of the International Monetary Fund (IMF) and not consider renewing the agreement for IMF assistance when it expires this year. He felt strongly that economically Indonesia should be able to chart its own destiny without any interference from the IMF, which has stipulated that for Indonesia to qualify for IMF loan packages, one of its prerequisites was to privatize state-run companies.

There have also been questions about the transparency of these sales of SOEs to foreign investors as well as the repatriation of funds back to the government's coffers.

Tommy Usman, a former banker from Bank Dagang Nasional Indonesia (BDNI), which like several others has been absorbed by the central bank, Bank National Indonesia (BNI), felt that these reservations by certain elements of the government are indeed legitimate concerns. "There have been allegations that several powerful individuals profiteered during the sale of Bank Central Asia (BCA) to Farallon Capital that was a front for Farindo Investment with links to Farindo Holdings based in Mauritius. Similarly, the sale of PT Indosat after the due-diligence process and the closed tender was thought to be more the work of powerful lobby groups that wanted the Singapore party to win. It's hard to say how much canvassing money was involved 'outside' the sale of the telecom company and whether all proceeds of the sale actually accounted for by the government," he revealed.

Should the government be more transparent in its bidding process as well as be more selective in choosing the right partners for SOEs? The call for greater transparency in the government inner circle that makes these divestment decisions would certainly be welcome news for even the investor, especially for the foreign investor who is unsure of the sense of corporate accountability among those SOEs that have a reputation for inefficiency despite a recent string of audits conducted on several of them.

Five of the SOEs reported that they saved as much as Rp7.4 trillion (US$810 million) in operational expenses. They are the toll road operator PT Jasa Marga; port operator PT Pelabuhan Indonesia II (Pelindo); national carrier PT Garuda Indonesia; telecommunications firm PT Telkom and oil plantation firm PT Perkebunan Nusantara IV (PTPN IV). The audit report was conducted by heavyweights in the accounting field with the likes of PricewaterhouseCoopers (PwC) and Hadi Sutanto & Co, Arthur Andersen and Prasetio Utomo & Co, and RSM International and Amir Abadi Jusuf & Co. PT Telkom topped the list of SOEs that managed to save Rp5.2 trillion in operational costs from November 2001 to December 2002.

Perhaps this is a small step in the right direction for SOEs wanting to privatize. As the Indonesian government grapples with the issues of divestment and privatization of SOEs while balancing the call for nationalism and protectionism, doing up its books and offering greater transparency certainly helps in the privatization crusade.

Jakarta takes ownership of ailing TVRI

Straits Times - April 16, 2003

Devi Asmarani, Jakarta -- Indonesia's state-run television station, TVRI, yesterday officially became a state-owned company, a status that will give it more commercial freedom and help it stay viable in competition with private stations.

The change of status from a social service corporation into a limited liability company will likely bring in the much needed cash for the ailing station, as TVRI will now be allowed to air advertisements along with its competitors.

This will also dispel speculation in the past few weeks that the country's oldest station, which has functioned as the government's main communication channel with the population, would fold.

Last year, TVRI struggled to stay afloat after the government cut subsidies. The station had no other sources of revenue as it was only allowed to run limited advertising.

The change of status was made during the signing of two ministerial decrees yesterday by Deputy Minister of State Enterprises Roes Aryawijaya.

Mr Roes said the change of status would help the station be more competitive with the existing nine private TV stations in the country. A new board of directors was also announced to replace the old one, which has been torn by infighting.

The station's president, Sumita Tobing, who was behind the push to commercialise, was replaced by Hari Sulistoyono, who previously headed the now defunct news Internet portal Lippostar. Among the new directors is prominent banker Enny Hardjanto, who was named director for news and programming.

TVRI's 23 regional stations across the country have struggled, including those in North Sumatra, Aceh and Lampung which went off air because of high operational costs and mounting debts. The TVRI station in Medan, North Sumatra, last week went back on air after a cash injection by the provincial government.

The required independent audit the station had to go through to complete the process of status conversion had been blocked by some executives, who accused their boss Sumita Tobing, a veteran TV producer for several private stations here, of running a one- woman show.

Ms Sumita and four of her directors, who had been suspended in the past few months, publicly exchanged accusations of corruption and wooed politicians to take their sides.

Media observers said saving the station would benefit the government, as the station has the widest reach in the country, with its large network of transmitters and relay stations.