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Indonesia News Digest No 28 - July 14-20, 2003
Financial Times - July 20, 2003
Shawn Donnan, Lhokseumawe -- Major General Bambang Darmono
believes his mobile telephone proves the popularity of
Indonesia's military operation against the separatists in Aceh
province.
In the telephone's memory are 630 text messages. The vast
majority, he claims, have been admiring comments. "Look," he
says, "this just came in." "Bambang," he reads out. "I am
expecting a baby soon. Because you are a man I admire, could you
please name my child?" The normally gruff general sits back and
chortles. "I have a lot of support from the people," he says.
Two months after President Megawati Sukarnoputri imposed martial
law on Aceh and launched Indonesia's largest military operation
since its 1975 invasion of East Timor, there are signs the
operation is winning popular support almost everywhere in the
country -- except Aceh. General Darmono -- and his telephone --
have become famous and Mrs Megawati is enjoying the benefits of a
resurgent nationalism.
But Aceh, which sits at the northern tip of Sumatra and has been
home to a separatist conflict since 1976, is paying an increasing
toll in terms of casualties. The military campaign is also
cutting it off from the rest of Indonesia and the outside world.
From the beginning, Indonesian non-governmental organisations and
journalists have been put under intense pressure to toe the line
in Aceh. But in recent weeks Jakarta has imposed stringent travel
restrictions on foreigners.
The government insists it is not trying to ban foreigners. But
the strict limitations on travel, as well as the bureaucracy
involved, have raised fears Jakarta is putting a paperwork
curtain around the province. International humanitarian
organisations fear they are being pushed out and visits by
foreign diplomats and journalists are becoming rare.
In a five-day visit, the Financial Times was the first foreign
news organisation allowed into Aceh since the implementation of
the new rules. But to do so the FT had to accede to severe
restrictions on reporting.
The clampdown on information, analysts say, is the harshest since
the fall of General Suharto in 1998 and has raised big question
marks about the brutality of the operation.
"There is some information coming out but it is extremely
difficult and everyone who tries to get information out is by
definition putting themselves at risk," says Sidney Jones, head
of the Jakarta office of the Brussels-based International Crisis
Group.
Local people in Aceh say the human rights situation has worsened
markedly since the introduction of martial law. Dozens of cases
of rape, kidnapping and beatings have been reported, they say.
There are clear indications of extra-judicial killings. Many of
the dead were civilians.
Ms Jones says there are signs the military is employing some of
the same tactics it used in East Timor before the former
Portuguese colony won its freedom from Indonesia in 1999. There
is evidence, that the military has backed militias in Aceh.
The military denies this. It has even disarmed self-protection
groups formed by civilians sympathetic to Jakarta, General
Darmono says, although he admits helping to train them in "self
defence".
According to its figures, the military has killed almost 500
members of the GAM separatist movement in the two months of the
operation while about 1,000 have either been detained or
surrendered. Only about 200 weapons have been seized during that
time, however.
General Darmono argues the low number of weapons seized is due to
the fact that GAM has only an estimated 2,000 weapons for its
5,000-6,000 active members or that most of the people killed in
the operation so far have been unarmed "GAM spies" rather than
civilians.
"If we kill civilians then it destroys the good of winning the
hearts of the people," he says.
However, as part of its campaign against GAM, the military has
been herding villagers into government-run camps to clear the
battlefield. More than 1,400 villagers are now living in a camp
in Sigli. They say they were forced to leave their homes in the
Tiro district by soldiers. "We are just farmers. I don't even
know what GAM is," says one woman.
Kompas - July 19, 2003
Jakarta -- The military operation in Aceh to incapacitate Free
Aceh Movement (GAM) forces will result in prolonged trauma in
children. After they have become adults, their minds will be
filled with sadness, revenge and they will tend towards violence.
"The experience during the period of childhood has a big
influence on the mentality and behaviour of people when they
become adults", said child psychologist Seto Mulyadi, who is also
the chairperson of the National Commission for the Protection of
Children (Komnas Anak), following a National Children's Day press
briefing on Friday.
According to Seto, the mentality and imagination of these
children is already filled with thoughts of violence. Because of
this, the Komnas Anak team is presently carrying out intensive
observations on the condition of Acehnese children and will soon
setup a crisis centre in Aceh. To date, humanitarian intervention
in the integrated operation [the term used by the government/TNI
for the present operation in Aceh] has been limited to fulfilling
physical needs only, and this is still at an absolute minimum.
"The government has a responsibility to provide psychological
rehabilitation for [these children]", he said.
Separately, another member of Komnas Anak, Achmad Marzuki, said
that they have verified that two children have so far been killed
since the military emergency began, aged 12 and 13 respectively.
"Both of them were shot dead by the TNI [Indonesian military] in
May during a hunt for members of GAM", said Achmad, who has twice
[been to Aceh to] make direct observations in a number of target
areas of the military operation.
These two children were from the village of Cot Rabotunong in the
Peusangan sub-district of Bireuen regency. Both children were
shot early in the day when they were guarding a fish pond owned
by an uncle of one of the two children. One of them was only a
child construction laborer.
"Mentally, the minds of children, particularly in the rural
areas, exhibit a great deal of fear. If they play, their games
are mock warfare", said Marzuki.
Seto said that these kind symptoms always appear in children in
areas of armed conflict. If they are asked to draw something
spontaneously, they draw pictures of firearms, scenes of gun
fights, or other scenes of violence. "Moreover, it is very
difficult for them to laugh out loud", he said.
Both Seto and Marzuki said that this experience of violence will
leave a strong imprint in the minds of children which will be
carried through to adulthood.
"The majority of young members of GAM at the moment are those
who's families fell victim [to the violence] during DOM (Military
Operation Zone)(1). They admit to wanting revenge and to get back
[at those who hurt them]", said Marzuki.
Not garnering sympathy
Meanwhile, the chairperson of the [recently formed] Commission to
Form a United Opposition Party (KPPO), Dita Indah Sari, expressed
the view that the military operation was clear evidence that the
government of President Megawati Sukarnoputri and Vice-president
Hamzah Haz will never be able to win the sympathy of the Acehnese
people.
"The government will never be able to convince the people of Aceh
to remain united [with Indonesia]", said Dita, accompanied by the
chairperson (sic) of the People's Democratic Party, Yusuf
Lakaseng(2). If GAM wishes to grow, though its strategy of
guerrilla [warfare], this will not be possible if they cannot
obtain the sympathy and support and increase the number of
volunteers which join their [armed] struggle.
Dita likewise said that the inability of the Acehnese people to
hold government positions which has forced TNI [officers] to
replace district heads is also evidence of the inability of the
government to win the hearts and minds of the Acehnese people(3).
(B14/OSD)
Notes:
1. Between 1989 to 1998, Aceh was designated a special military
operations area.
2. Lakaseng is in fact the head of the military affairs
department of the PRD]
3. Particularly at the sub-district and village level, in many
areas of Aceh the government administration has partly or wholly
ceased to function as a result of the conflict or because local
Acehnese people have resigned citing pressure from GAM and/or
TNI.
[Translated by James Balowski.]
West Papua
Democratic struggle
Labour issues
'War on terrorism'
2004 elections
Corruption/collusion/nepotism
Human rights/law
Aid & development
Health & education
Armed forces/police
Military ties
Economy & investment
Aceh
Casualties mount in Aceh clampdown
Military operation causing children trauma and resentment
Nessen to go on trial next week over immigration offenses
Associated Press - July 19, 2003
Jakarta -- An American reporter detained after hiding out with rebels in Aceh has been charged with immigration violations and is expected to go on trial next week, prosecutors said Friday.
William Nessen, who was working as a freelance reporter, was arrested June 24 when he turned himself in to the Indonesian military in northern Aceh.
"We have lodged his case with the District Court, and expect his trial will start next week," said prosecutor Tengku Lutfi in the provincial capital, Banda Aceh. Under Indonesian law, filing a case to court is akin to a suspect being formally charged.
Nessen is charged on two counts of violating the 1992 Immigration Law, Lutfi said. He could face a maximum of six years in jail if convicted on both counts.
It now appears unlikely that Nessen will be charged with supporting the rebels. Police had earlier said they were looking into allegations that Nessen was an independence activist himself.
Jakarta Post - July 19, 2003
Tertiani ZB Simanjuntak, Lhokseumawe -- The number of refugees in war-torn Aceh keeps changing, but their misery remains due to poor sanitation at refugee camps.
As of Friday, there were 40,854 people staying in refugee camps across the province, with the most crowded shelters found in South Aceh, North Aceh and East Aceh. Spokesman for the Aceh provincial social affairs agency Burhanuddin said the remaining 690 people in Cot Gapo field in Bireuen regency had returned to their homes on Thursday afternoon after a one-month stay in tents.
Officials said most of refugees were suffering from acute respiratory infections and diarrhea, while doctors complained of a shortage in medical supplies.
Fakhrul Rizal, one of 15 doctors assigned at the Keuniree shelter in Pidie, warned of a possible outbreak of diarrhea due to poor hygiene and unclean water consumed by some 1,200 refugees, mostly women and children.
He said medical workers were anticipating a possible outbreak of smallpox as four children in the last batch of refugees were suffering from the illness. "We have medicine, but it won't last long. We are running out syrup to treat diarrhea in children, while we are short of antibiotics such as amoxicilin to treat infections," he said.
The shelter in Keuniree is located in an open area, where tents could not protect the refugees from the heat. Dust makes it difficult to breathe.
An elementary school teacher recounted the days she stayed at Cot Gapo shelter in Bireuen, which she likened to a jail. "The shelter was like a prison for me. I have a lot of things to do at home, but I will be back to work on Monday," Jamilah, 50, who teaches in state elementary school SDN 5 in Bireuen, said, wiping away her tears.
Unlike their counterparts in the rest of the country, Acehnese students will start their new academic year on Monday, as many school buildings are still under construction following arson attacks.
Another refugee, Nurhayati, said she lost her belongings when she was in the shelter. "My telephone, CD player and refrigerator have gone. I haven't had the chance to check the other things in the house," she told the Post.
Rights groups have criticized the use of force by security authorities in moving people to refugee camps, which the military said it was needed to separate civilians from Free Aceh Movement (GAM) rebels.
Spokesman for the martial law administrator Col. Ditya Soedarsono said in Banda Aceh on Friday the authorities would follow up people's complaints of looting which took place when they were at the refugee camps.
"We will not turn a deaf ear to the reports. We will take action against soldiers who are found stealing goods from houses left vacant by people seeking refuge as we did against troops who committed crimes recently," he said, referring to the court martial of soldiers charged with beating and raping civilians.
The military said on Friday it had killed 11 more separatist rebels in two days of clashes in Aceh province while alleging that guerrillas shot dead three civilians. Six rebels were killed in a clash with troops at mountainous Cot Keueung in Aceh Besar district on Thursday. Troops seized four AK-47 rifles, five other firearms and hundreds of bullets.
The latest deaths brought the number of rebels shot dead to 492 and 210 firearms seized since the start of the massive offensive on May 19. Authorities say 992 rebels have been captured or surrendered and 43 military and police officers have died in clashes with rebels.
Jakarta Post - July 18, 2003
Jakarta -- Security personnel shot dead at least 25 rebels in two of the bloodiest days of the military offensive against the Free Aceh Movement (GAM), the Indonesian Military (TNI) said on Thursday.
Meanwhile, the military has deployed its medical personnel to provide health aid for Acehnese people taking refuge in many districts in the province.
Three rebels were shot dead in a midday gunfight in Aceh Besar district on Thursday, a military officer was quoted by AFP as saying. Separately, a Mobile Brigade squad commander said his troops shot dead a suspected rebel who tried to flee after his arrest in the regency.
The deaths came in addition to 21 other rebels reportedly killed during eleven gunfights over the last two days, said spokesman for the martial law administration Col. (Navy) Ditya Soedarsono.
According to military figures issued before the latest deaths were recorded, 481 rebels have been killed and 210 firearms seized since the launching of the military operation on May 19. Authorities say 992 rebels have been captured or surrendered, with the loss of 43 military and police officers.
GAM has claimed that many of those killed by the military are civilians. Independent confirmation of reports by either side is difficult after restrictions were imposed on the movement of reporters and non-government organizations in Aceh.
Ditya also said that as of Thursday, the Aceh Police had filed dossiers on 120 of 154 suspected GAM members with the government prosecutor's office as part of law enforcement operations in the province. So far, the police had detained 277 suspected members of the separatist movement, he added. The local court has given its verdict on only three alleged GAM members.
Ditya also said that at least 1,400 Acehnese refugees in a number of districts in Aceh province were receiving health services every day. Most were children or the elderly suffering from dermatitis, coughs and respiratory problems, he said.
If medical equipment were considered inadequate to serve the needs of patients at refuge camps, patients were taken to the nearest hospital, he said, adding that, so far, 65 refugees had been hospitalized.
Ditya warned that the number of displaced people would likely continue to increase in the coming days, given the military's attempt to sterilize villages that were GAM bases.
Amid the military offensive, thousands of Indonesian flags have already been raised in the provincial capital of Banda Aceh in observance of the 58th anniversary of Indonesia's independence, which falls on August 17. Residents of the city have raised the Indonesian flag, as they were ordered by the martial law administration to do.
Aceh Police chief Insp. Gen. Bachrumsyah Kasman claimed that GAM members had scattered following the intensive offensive. "If there is robbery, arson or shooting at people, it means that GAM members are suffering from hunger and panic," he said.
The New York-based Committee to Protect Journalists (CPJ), in a report issued Thursday, said US-inspired press restrictions and controls on foreigners in the province had made it almost impossible to learn "anything of substance" about the conflict.
"Despite a generally free press since the ouster of former dictator Soeharto in 1998, the Indonesian Military's implementation of US-inspired policies has turned Aceh into one of the most restrictive places in the world for the press," the report said.
Jakarta Post - July 17, 2003
Fabiola Desy Unidjaja, Jakarta -- Lawyers have raised concern over the government's failure to provide defense lawyers for members of the Free Aceh Movement (GAM) who are facing trial, saying the government is bound by law to make sure that all defendants are assisted by defense lawyers regardless of their crime.
"We are concerned with the government's failure to provide defense lawyers for the separatists since most of them have been convicted or are facing conviction for crimes that carry a prison term of more than five years," chairman of the Association of Indonesian Lawyers (IPHI) Indra Sahnun Lubis said after a meeting with Vice President Hamzah Haz and Minister of Justice and Human Rights Yusril Ihza here on Wednesday.
Yusril admitted that his office had not allocated funds to pay for defense lawyers to assist arrested GAM members. "The fund should come from the joint operation budget, as it is impossible for my office to provide the money," Yusril told reporters after the meeting.
However, he did not explain whether the Aceh joint operation budget also covered the government's obligation to provide defense lawyers for detained separatists. Indra said the Criminal Code stipulated that all defendants charged with a minimum imprisonment of five years should be assisted by a defense lawyer.
In most cases, the government does not provide defense lawyers for separatists on trial, forcing most of them to represent themselves in court.
Currently there are 185 suspected rebels who are being questioned by the police or military without the presence of lawyers and 71 of them will go to trial in the near future. Another 299 suspected rebels who are under military detention are also likely to be kept away from lawyers, although most of them are facing charges of treason that carries more than a five-year sentence.
Indra noted that the number of suspected rebels scheduled to undergo trial would increase in the next few months and urged the government to pay attention to the problem.
Yusril admitted that it was difficult to establish a proper court in the province due to security conditions. "It is very difficult for us to set up a court in such conditions, but we will send 19 more judges to the province to conduct trials in Banda Aceh and Sabang," the minister said.
Regarding the possibility of amnesty for the suspected rebels, Yusril said that the government would not grant any amnesty in the near future. "We may offer amnesty only when GAM no longer exists in the province," the minister said.
He said that the government under former president Sukarno offered full amnesty to members of the People's Struggle (Permesta) rebellion in West Sumatra in the 1950s. "If we offer amnesty to GAM members now, there is a possibility that after they are free they will join the separatist movement again," Yusril remarked.
He stressed that amnesty would be offered once the government was sure that the organization no longer existed in the country.
Jakarta Post - July 17, 2003
Jakarta/Lhokseumawe -- Responding to widespread allegations of rights abuses in Aceh, the National Commission on Human Rights (Komnas HAM) is planning to set up posts in Bireuen and Lhokseumawe regencies to receive reports of rights abuses from local people.
Ruswiati, a member of the Komnas HAM ad hoc committee in charge of Aceh, said here on Wednesday that the commission also planned to assign one Komnas HAM member in Banda Aceh to monitor the situation in the province.
"Next Thursday, we will open posts for local people to file a complaints over violence they have encountered since the operation was launched on May 19. "And in order to ascertain whether the information on alleged rights violations is correct, we will also send a member of Komnas HAM to (the capital of) Banda Aceh to directly monitor the situation in the field," Ruswiati said on Wednesday.
"Lhokseumawe is a regency where the Aceh Military Operation headquarters is located, while Bireuen is a regency the military has categorized as a stronghold of the Free Aceh Movement," Ruswiati said.
According to Ruswiati, the decision was made because the Komnas HAM had identified various rights abuses in Aceh but "found difficulties in determining whether the reports were accurate".
Relations between Komnas HAM and military authorities had been strained following reports of mass graves in Nissam, in North Aceh. any believe the Indonesian Military was responsible for the alleged violence. The military was also upset by allegations that it has trained civilian militia groups in Takengon, Central Aceh -- adopting East Timor's operation strategy.
Ruswiati said that the presence of Komnas HAM's posts in Aceh was not merely to monitor possible rights abuses, but also to monitor whether the government's humanitarian assistance reached those in need.
"We will also be in charge of refugee camps in Aceh to find out whether their have enough food and other basic needs," Ruswiati said.
Meanwhile, martial law administrator spokesman Navy Col. Ditya Soedarsono said on Wednesday that all activities that concerned the residents in the province required prior approval from the martial law administration, including the plan of the National Commission on Human Rights (Komnas HAM) to open monitoring posts in several areas.
Ditya argued that although Komnas HAM was sanctioned by the government, it should be clarified whether the posts would be run by others aside from members of the commission.
"Activities conducted by non-governmental organizations as well as the media in the province require prior approval from the martial law administration. At least, Komnas HAM can say kulo nuwun (excuse me) to us," he told The Jakarta Post. "If the activities are for the sake of the Acehnese people, the administration would not reject them," Ditya added.
During the first two months of martial law, the Komnas HAM- sanctioned ad hoc monitoring team received many reports on alleged human rights violations, including on the existence of mass graves of civilians.
Meanwhile, two middle-ranking military officers and three non- commissioned policemen are likely to be discharged for disobedience.
Aceh Police spokesman Sr. Comr. Sayeed Husainy told reporters on Wednesday that the police disciplinary council found that the five had violated the force's code of ethics.
"They had often breached our internal regulations, such as leaving their workplace without permission," he said. Sayeed said currently dozens of policemen in Aceh are facing charges for marijuana possession, rape, and other crimes.
Agence France Presse - July 17, 2003
Indonesian troops waging war on separatist rebels in Aceh province have shot dead at least 15 guerrillas in one of the bloodiest days of their two-month offensive, the military said.
Spokesman Ahmad Yani Basuki said three members of the Free Aceh Movement (GAM) were killed in raids and 12 more in six firefights on Wednesday but no soldiers were hurt.
Basuki said five of the rebels were killed in one clash at Jeumpa in Bireuen district. He said an unidentified body was also found and rebels shot dead a civilian in Aceh Besar, for a total death toll on Wednesday of 17.
According to military figures issued Wednesday, 457 rebels have been killed and 203 firearms seized since the start of the offensive on May 19. It was not clear whether the figure included the latest death toll. The military says 366 rebels have been captured and another 340 have surrendered, for the loss of 43 military and police officers.
GAM has said many of those killed by the military are civilians. Independent confirmation of reports by either side is difficult after restrictions were imposed on the movement of reporters and non-government organisations in Aceh.
The New York-based Committee to Protect Journalists (CPJ), in a report issued Thursday, said US-inspired press restrictions and controls on foreigners in the province have made it almost impossible to learn "anything of substance" about the conflict. "Despite a generally free press since the ouster of former dictator Suharto in 1998, the Indonesian military's implementation of US-inspired policies has turned Aceh into one of the most restrictive places in the world for the press," the report said.
Since May 19 the armed forces have introduced progressively tougher press restrictions that keep local reporters hemmed in and effectively bar foreign journalists from the scene of conflict, CPJ said. Indonesia has "embedded" some local reporters with its forces and has warned others not to quote rebel spokesmen.
"At stake, some believe, is Indonesia's world image ... The more that public scrutiny can be kept away from the battlefield -- and away from potential human rights abuses -- the less chance there is for widespread international condemnation of the current offensive," the CPJ report said. It said lessons learned during the 1999 East Timor crisis appear also to be applied in some ways in Aceh.
Troops used pro-Jakarta militias to attack and harass the press especially after the August 1999 vote by East Timorese to separate from Indonesia. "Once the press, both foreign and local, was essentially driven out of East Timor, a scorched-earth policy went into effect," CPJ said.
In Aceh journalists are increasingly caught between both sides and are at great risk of attack or worse, it said. GAM is still holding a television reporter and cameraman and three civilians who were kidnapped on June 29.
In Indonesia's biggest military operation for a quarter-century an estimated 30,000 troops and 10,000 police are battling a guerrilla force whose strength was originally put by the military at around 5,000. Another 425 soldiers arrived along with more 24 tanks in North Aceh on Thursday, SCTV television reported.
GAM has been fighting for independence since 1976. An estimated 10,000 people, mostly civilians, have been killed since then in the province on Sumatra island.
| West Papua |
Jakarta Post - July 19, 2003
Jakarta/Wamena -- At least two of nine soldiers, charged with involvement in April's deadly raid on the Wamena military district arsenal in the troubled province of Papua, are threatened with the death penalty.
Papua's Trikora Military Police commander Col. R. Heri Pramono said on Friday the two faced the death penalty because they were engaged in espionage activities and assisted the procurement of weapons for enemies of the state.
"The case files of the two are still being processed in more detail," he was quoted by Antara as saying, while accompanying Army Chief of Staff Gen. Ryamizard Ryacudu, who visited Papua on Friday. Pramono declined to name the two soldiers.
The dossiers of seven other suspects were also submitted to the province's military court. Pramono said the trials for the nine charged soldiers would begin after Indonesian Military chief Gen. Endriartono Sutarto issued the endorsement for the tribunal.
Seven of the suspects would only be charged with disciplinary offenses that led to the raid on the Wamena District Military Command's arsenal, Pramono said. They could face at least four years in prison, and all nine could be discharged from service.
Police believe the raid on the Wamena arsenal on April 4 was the work of Free Papua Movement (OPM) separatists. They also suspect it was an inside job, citing the ease with which it was carried out. The raid killed two soldiers and one suspected OPM member. The attackers stole dozens of rifles and thousands of rounds of ammunition.
The first four suspects are First Maj. Karel Itlay, First Sgt. Pilemon Pawiko, Chief Corp. Paus Kogoya and First Pvt. Eduardus Kimirop, whom prosecutors said had failed in their duty. Two other soldiers, First Sgt. Yarima Mable and Second Corp. Muhidim Liwan Johari, are charged with deserting their posts at the time of the attack. Police also arrested seven alleged OPM members, including one whom they believe was the mastermind behind the attack.
OPM is fighting a low-level war for independence in the vast, but sparsely populated province, where poverty is high despite its rich natural resources. During the visit to Wamena on Friday, Ryamizard received support from local tribal leaders to crack down on separatists in Papua.
They asked the Army chief to send more troops to the regency to protect local residents from attacks by armed rebels. "We want our region made safe from troublemaker groups campaigning for independence. To maintain security in Wamena, we need reinforcements of regular troops from Papua," said Kubilut Hubi, a local tribal leader. In a dialog with Ryamizard, the tribespeople vowed to support the integrity of the unitary state of Indonesia.
Reuters - July 18, 2003
Dean Yates, Jakarta -- FBI agents have taken evidence from last year's killing of two American schoolteachers in Indonesia's rebellious Papua province back to the United States, just as US lawmakers turn up the heat over the murders.
Police spokesman Zainuri Lubis told Reuters on Friday the FBI team, put at five by police, visited Papua during more than two weeks in Indonesia. He said the FBI would do forensic tests on the evidence, although he did not know what was taken.
The United States has warned Jakarta over the ramifications should it fail to cooperate in resolving what political analysts say has become the most sensitive issue in US-Indonesian ties.
On Wednesday, the House of Representatives moved to block Jakarta from receiving military training assistance funds, known as IMET, complaining it had conducted a lax investigation of the August 2002 attack in Papua that also killed an Indonesian.
Analysts have said Indonesia's cooperation with the FBI, partly by allowing enough evidence to be taken out, could be critical to determining what next steps might be taken. "They took evidence needed from the field. They have taken the evidence back to the US for forensic tests," Lubis said.
The FBI team, on its second visit, left two or three days ago. The US embassy in Jakarta confirmed the agents had gone, but said it could not comment on an ongoing investigation.
Plenty is at stake over the ambush, when gunmen sprayed a convoy of mainly American schoolteachers and their families with gunfire near a giant mine operated by US-based Freeport-McMoRan Copper and Gold Inc. No one has been charged over the killings.
According to US Congressional documents seen by Reuters on Friday, the incident "appears likely to have been perpetrated at least in part by members of the Indonesian military".
The military, which provides the main security for the mine, has blamed Papuan rebels and repeatedly denied any role. "Our investigation shows that up to now there was no involvement of TNI members," military chief Endriartono Sutarto told reporters on Friday, referring to the Indonesian military. He brushed off the blocked IMET officer training.
Indonesian police have previously said some weapons used were of the same type as those carried by troops stationed nearby, but that it was too early to point fingers at the military.
Some Papuan human rights groups say military elements could have staged the ambush to discredit the rebels or get higher payment for their security role at Freeport. The teachers worked at a school serving Freeport expats.
The US House vote blocks less than $1 million from the International Military Education and Training program for fiscal 2004. Some $400,000 for IMET has been passed for 2003 but not been disbursed. Analysts said that could now also be held up. Although small, human rights groups say reinstating IMET would be seen as an endorsement of the Indonesian military.
Fiscal 2003 IMET would be the first since it was cut in the early 1990s over violence in East Timor. Overall military ties were largely severed in 1999 after East Timor's bloody vote to break from Indonesian rule in that year. The chill in military ties following East Timor had only begun to improve through cooperation in the war on terrorism.
Jakarta Post - July 16, 2003
Nethy Dharma Somba, Jayapura -- Hundreds of people staged a rally in the Papua capital of Jayapura on Tuesday to protest the annual progress report presented by Governor Jaap Salossa, citing alleged fraud and irregularities in the report.
The protest by members of the Papuan Youth Front and two other non-governmental organizations, Gerak Mamta and Papua Watch, came as factions in the provincial legislative council gave their final responses to the report. The demonstrators arrived by bus, truck and motorcycle at the council's building at 10.30am local time. They carried banners and pamphlets opposing the governor's report.
"The annual progress report is a public deception," read one pamphlet, as it did not detail huge funds allocated by the central government to support the implementation of special autonomy status for the troubled province. The Papuan protesters demanded that the governor account for the use of the special autonomy funds transparently. "The special autonomy status funds are very large, but the Papuan people have not enjoyed them. Many new cars belonging to executive and legislative members have started to appear in the streets," one protester said. This proved that the Papua administration and council did not protect those on low incomes in their development policies, the demonstrators said.
Inside the council building where a plenary session was under way, nine factions accepted the governor's progress report and two others -- the Indonesian Democratic Party of Struggle (PDI Perjuangan) and the Crescent Star Party (PBB) -- had yet to declare their stance. The Love the Nation Democratic Party (PDKB) faction did not present its response during the session as some of its members rejected the report.
Governor Salossa played down the demonstration against him on Tuesday, saying it was normal in a democracy as the report was related to political issues. "There has been politicking behind the demonstration to strengthen the opposition against the progress report, and that is normal. However, most councillors have accepted my report," he said.
The protesters dispersed at 3.30pm local time after none of the councillors was prepared to receive them. On Monday, a similar protest was also held to reject the progress report. The protesters urged that a joint team of military and police officials, as well as independent auditors, investigate the possible misuse of state funds by the Papua administration.
Jakarta Post - July 15, 2003
Nethy Dharma Somba, Jayapura -- The central government moved closer to creating a West Irian Jaya province in Papua on Monday, despite lingering controversies over the plan to split the troubled region into three -- Papua, West Irian Jaya and Central Irian Jaya.
Ministry of Home Affairs secretary-general Siti Nurbaya visited Papua on Monday to hand over a fund of Rp 2.7 billion to acting West Irian Jaya governor Abraham O Atururi. The fund, generated from Nurbaya's office, will be used to renovate the governor's office building on Jl. Siliwangi, Manokwari district that will probably serve as the West Irian Jaya capital city. After being renovated, the gubernatorial office is expected to begin administrative activities aimed at providing services to Papuans under its jurisdiction.
Present at a ceremony to hand over the fund included Papua administration secretary Decky Asmuruf who chairs the assistance team for West Irian Jaya's establishment, Manokwari Regent D. Mandacan and local chief councillor D. Mandowen. Nurbaya was representing Minister of Home Affairs Hari Sabarno as chairman of the central government's team to speed up the establishment of West and Central Irian Jaya provinces.
The separation of Papua into three provinces is justified under Law No. 45/1999 that recommends the creation of two new provinces of West and Central Irian Jaya. But, the planned split has drawn controversy among Papuans and analysts, since the government granted a special autonomy status in early 2001 to the resource- rich province. Under the autonomy law, the establishment of new provinces in Papua must be endorsed by a Papuan People's Council (MRP) that has not yet been set up for unexplained reasons.
However, in her speech to Monday's ceremony, Nurbaya brushed aside the controversies and claimed that Papua's split was in accordance with existing regulations. "There is nothing wrong with the establishment of a West Irian Jaya province because the central government did not scrap a decree on the appointment of Abraham O Atururi as acting governor, nor did it revoke Law No. 45/1999," she said. Nurbaya said Atururi had been tasked with preparing administration staff until the West Irian Jaya province was set up.
| Democratic struggle |
Jawa Pos - July 15, 2003
Rony Panengah, Jakarta -- If there are no obstacles, another political party will soon be born. What's interesting is that this political party represents opposition forces which to date have chosen to take there struggle into the streets.
Opposition groups which will definitely join [the new political party] are the Indonesian National Front for Labour Struggle (FNBI), the People's Democratic Party (PRD), the National Student League for Democracy (LMND), the People's Cultural Network (Jaker), the National Farmers Union (STN) and 16 other opposition groups. One of the figures behind the establishment of this opposition party is Dita Indah Sari, the general chairperson of FNPBI.
According to Dita, they are taking this step to respond to the need for unity within the opposition [movement]. "Because without unity, it is very difficult to struggle against the existing authorities", she said yesterday at the Juang Building in Menteng, Central Jakarta.
Dita said that at present, the political elite who hold power do not side with ordinary people. Because of this, it is hoped that the birth of this opposition party will provide an alternative for people in the 2004 general elections.
In fact it is not at all suppressing that Dita is pioneering a new party of this kind, since for some time she has often defended the interests of workers. For example, when [she was involved in] organising demonstrations rejecting the legislation of the [draft] laws on labour not long ago.
"So we are hoping that this party will become a political vehicle for people outside of the parties which are in power at present", she said.
Dita first became involved in the world of politics when she joined Student Solidarity for Indonesian Democracy (Solidaritas Mahasiswa Indonesia untuk Demokrasi, SMID). Later, she was also involved in the formation of the PRD.
Dita's name started to become well known when she lead an action by around 20 thousand workers in Surabaya, East Java in 1996. At that time, she was tortured by security forces and then jailed for three years.
During the period that followed, Dita was increasingly busy defending the rights of workers although the risk of being jailed always awaited her. With regard to the new party, she explained that at the moment they are in the process of preparing things. As part of this yesterday, the Committee for the Formation of a United Opposition Party (Komite Pembentukan Partai Persatuan Oposisi, KPPPO) was [publicly] launched.
With regard to the name of the new party, there are three alternatives. That is the United People's Opposition Party (Partai Oposisi Rakyat Bersatu, PORB), the United People's Democratic Party (Partai Persatuan Rakyat Demokratik, PPRD) and the Peoples United Opposition Party (Partai Persatuan Oposisi Rakyat, Popor).
Dita herself [said she] felt optimistic about the future of the new party because there are already a number of programs which have been put into place to attract people's support.
For example, the most pressing program which will be implimented by the party will be to reduce the price of basic goods and services. "How, though subsidies on people's basic needs", she asserted convincingly.
Another issue -- according to Dita -- which will benefit society will be increasing salaries or wages by 100 per cent. Including the wages of house keepers, low-ranking soldiers and non- commissioned officers. Aside from this, there are a number of other important agenda items [in the new party's program].
In order to increase the level of support, the party will also link up with organisations which have a large mass base. For example with labour organisations, farmers' groups, non- government organisations and so on. And, for this initial stage, the regional infrastructure is in the process of being put into place.
[Translated by James Balowski.]
| Labour issues |
Jakarta Post - July 18, 2003
Rendi A. Witular, Jakarta -- The Indonesian Employers Association (Apindo), an influential business lobby, and the country's labor unions have agreed to set up a bipartite secretariat that would play a key role in settling disputes between businesses and workers, a move which some said reflected growing disappointment over the government's poor handling of labor conflicts.
Apindo chairman Sofjan Wanandi told The Jakarta Post on Thursday that the establishment of the joint secretariat should help improve the country's business climate, which has suffered, partly, due to protracted labor conflicts.
"Businessmen want labor peace. Through the secretariat we hope to be able to build mutual trust with the unions so that we can avoid labor strikes and demonstrations," Sofjan said.
The secretariat is the first of its kind in the country. It was formed during a meeting on Wednesday between Apindo and representatives of 75 labor unions.
During the meeting both parties agreed that any dispute should be settled through the secretariat and that the resulting settlement would be binding. Apindo and labor unions also agreed they would meet at least once a month to discuss various labor problems. The two sides would meet in the first week of August to discuss how the joint secretariat would be run, and to discuss the mechanism to settle labor disputes.
Sofjan explained that labor problems along with illegal levies and legal uncertainties had become disastrous factors discouraging new investments in the country. He said that employers were often worried about labor strikes and demonstrations as they could be conducted at anytime and anyplace, threatening to disrupt the production process.
The lingering labor conflict in the country has also been blamed as one of the main factors triggering the relocation of some foreign companies to other neighboring counties offering better investment climates, like China and Vietnam. The conflict has also negatively affected exports as foreign buyers fear that labor strikes could eventually delay delivery of products.
Experts have said that luring more investments is key to increasing the country's economic growth to around 6 percent per year, from a meager growth rate of 3 percent to 4 percent posted during the past couple of years. The higher economic growth is needed to help resolve the pressing unemployment problems in the country.
Meanwhile, National Front for the Struggle of Indonesian Workers (FNPBI) chairwoman Dita Indah Sari said the setting up of the joint secretariat was a sign of growing distrust in the government's ability to settle labor conflicts. She said the involvement of the government and lawmakers in resolving labor problems had only made things worse as they turned the cases to serve their political interests.
"The unions and Apindo have agreed to join forces in protesting any government policies that are unfavorable for businesses." Dita praised the initiative of Apindo to form the secretariat, saying that it would help mend the deteriorating relationships between unions and businesses. "This is a positive sign to [improve] the relationship between labor unions and businessmen," Dita said, adding that she doubted if the secretariat could fully ensure labor peace.
Labor unions mushroomed in Indonesia after the downfall of former dictator president Soeharto in 1998. Since then hundreds of labor unions have prevailed but have placed the country in a dilemma since most of them run their unions in a militant way by organizing strikes and mass demonstrations, and burning factories, scaring away investors.
| 'War on terrorism' |
Jakarta Post - July 17, 2003
Tiarma Siboro, Jakarta -- The government appealed to the public to stay calm but vigilant in the face of renewed terror attacks targeting Indonesia, while ordering security to be tightened at key installations across the country.
Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said people were asked to conduct their routine daily activities but were asked to immediately report to security officers whenever they noted anything suspicious.
"We ask people to remain calm and keep an eye out for anything suspicious that may lead to acts of terror," Susilo told a press briefing.
"I must underline this because security authorities in Southeast Asia have informed us that acts of terror are likely to continue in the future and are targeting countries, including Indonesia." Susilo said he had called for heightened security at all government buildings and public facilities and ordered that all these premises be guarded by professional security officers.
"[The measures] also include tighter security at government institutions that keep weapons, ammunition and explosives," he said. He further asked the country's intelligence, immigration and customs and tax officials to improve coordination.
Security measures will be intensified at seaports and airports across the country, particularly in Greater Jakarta and Central Java, where police captured nine suspected members of the Jamaah Islamiyah terrorist group, said Susilo.
JI, a regional terrorist group that has been linked to al-Qaeda, is said to be responsible for last year's Bali bombings which killed 202 people, mostly foreign tourists.
Before the Bali blasts, senior government officials -- including Susilo and Vice president Hamzah Haz -- routinely denied that terrorists were targeting the world's most populous Muslim nation.
The government's move on Wednesday came on the heels of a fresh bomb blast that rocked the House of Representatives compound on Monday, while a suspected JI leader Fathur Rohman al-Ghozi escaped from Cramp Crame prison in the Philippines. The two events took place only days after the police announced that they had arrested nine JI members led by a man identified as Mustofa and seized more than 1,000 detonators and other explosives, assault rifles and ammunition after a nationwide crackdown on terrorist cells in 11 cities in Java between July 4 and July 11.
Around 30 suspected JI members are facing charges of terrorism at district courts in Denpasar, the South Sulawesi capital of Makassar and the East Java town of Lamomgan. Susilo asserted that the trial had made Indonesia more vulnerable to terrorist attacks compared to its Southeast Asian neighbors.
Some of the defendants are also being charged with masterminding a series of blasts in Jakarta and other places in 2000 and 2001, including alleged JI leader Abu Bakar Ba'asyir.
A series of blasts had taken place in Jakarta and the North Sumatra capital of Medan before the explosion in the House compound.
The police have yet to name any suspects in the House blast, which caused no injuries. "In October, Indonesia will also host the ASEAN Summit in Denpasar, and of course, many parties may use this event to create terror," Susilo said. Indonesia will also hold the annual convention of the People's Consultative Assembly between August 1 and August 10.
Susilo said the government offensive against Free Aceh Movement (GAM) rebels may spark acts of terror perpetrated by the separatists to draw both national and international attention.
But when asked whether JI or GAM were responsible for the recent blast in the House compound, Susilo said: "It could be any group. We don't know yet. Let's just wait for the results of the police investigation."
Straits Times - July 17, 2003
Robert Go, Jakarta -- Indonesia's chief security minister yesterday warned that the country, and South-east Asia in general, faced more terror attacks not only from the Jemaah Islamiah (JI) but also Aceh's guerilla groups.
Mr Susilo Bambang Yudhoyono told reporters after a meeting with the country's top security officials: "We cannot say terrorism in Indonesia and South-east Asia has been reduced. It's very possible that Jemaah Islamiah, whose elements are spread throughout South-east Asia, will carry out fresh criminal actions."
He also cited the threat from Aceh's separatist rebels, against whom the Indonesian forces launched a military offensive two months ago. Both groups, he noted, have been backed into a corner by security forces and could be plotting revenge.
Earlier this month, Indonesian police announced the arrests of nine JI members and the seizure of a large cache of arms and explosives. Top JI agents are also on trial for last October's Bali attacks, and cleric Abu Bakar Bashir, the JI's alleged leader, faces charges of treason. The Aceh rebels, the minister argued, had realised they could soon be wiped out and were resorting to using terror tactics in Jakarta and other major cities. The authorities already suspected the separatist guerillas were behind the explosion at the Parliament complex earlier this week.
Mr Susilo said terrorists could focus on several important dates and events for Indonesia in their terror planning -- for instance, a meeting of the top legislative assembly early next month and the Aug 17 Independence Day celebration. In preparation, more domestic security measures had been taken and Jakarta's intelligence officers had been told to step up cooperation with their peers from other Asean countries.
Government offices, transportation hubs like airports and soft targets such as entertainment areas and shopping centres needed to remain vigilant, the minister said.
While analysts agreed that more terror attacks were likely and supported the anti-terror initiatives, some suspect Indonesia's security forces of using the terror threat to justify demands for more funds and greater influence.
Mr Arbi Sanit, an analyst at the University of Indonesia, warned that the power of the military and police was growing while civilian control over them has declined. "The police and military may have good reasons to warn about terror attacks. But we need to realise the authorities may be talking about fears of terrorists to strengthen their own positions within society," he said.
Mr Arbi and others noted that since the Bali blasts, both the military and police have been given more freedom of movement and funds by the government.
| 2004 elections |
Jakarta Post - July 18, 2003
A'an Suryana, Jakarta -- Nine political parties have passed the screening by the Ministry of Justice and Human Rights, paving the way for their participation in the general elections in 2004, when the country will hold its first ever direct presidential election.
"The nine political parties have met the requirements stipulated in the political party law," justice and human rights minister Yusril Ihza Mahendra said here on Thursday.
Political Party Law No. 31/2002 stipulates that a party must have offices in more than half of the nation's provinces, and in more than half of the regencies or municipalities of those provinces, and more than half of the districts in those regencies or municipalities.
The 2004 Election Law stipulates that the Ministry of Justice and Human Rights has the authority to decide whether or not a political party meets the requirements.
Political parties that pass the ministry's screening will have to undergo further screening by the General Elections Commission (KPU) to determine whether or not they are eligible to join the elections in 2004. The parties are the first batch eligible to be screened by the KPU. The ministry is now screening another batch of political parties.
Yusril said 61 political parties had registered with the ministry and were waiting to be screened. Political parties have to register with the ministry by August 31 at the latest in order to be screened. Screening ends on September 27.
Indonesia will have its first ever direct presidential election between June and August 2004, which would be preceded by the legislative election on April 5, 2004.
Parties that have passed the screening: 1. Justice Party of Prosperity (PK Sejahtera) 2. Democratic Catholic Party (PKD) 3. Indonesian Union Party (PSI) 4. Justice and Unity Party of Indonesia (PKP Indonesia) 5. Crescent Star Party (PBB) 6. Crescent Party of Reform (PBR) 7. Love the Nation Democratic Party (PDKB) 8. National Concern Party (PKPB) 9. Love the Nation Peace Promoter Party (PPDKB).
Laksamana.Net - July 15, 2003
The General Election Commission (KPU) has determined the total number of seats in the People's Regional Council (DPRD) at the provincial as well as regency level, giving legislative candidates a clear picture of how to act in the election next April.
DPRD at the provincial level, with a total of 30 provinces, will have 1770 seats, while DPRD at the regency level (a total of 410 regencies or municipalities), will have 13,525 seats.
Speaking to reporters on Monday, Deputy Head of the KPU Ramlan Surbakti said the decision was taken on the basis of General Election Bill No 12/2003. Article 49 of the legislation regulates the provision of total seats in the DPRD, while article 50 regulates provision of seats at the regency or municipality level.
In Aceh and Papua, the number of seats was determined in accordance with the law on special autonomy, providing an additional 25% of seats. Thus Aceh will have 14 additional seats and Papua 11 seats.
Surbakti stressed that population gains or losses accounted for increases or decreases in the number of seats in each province. "The cities which are becoming increasingly densely populated will automatically get additional seats in the DPRD at the provincial, regency or municipality level," he said.
Following the open-list system adopted through the new general election bill No. 12/2003, the national executive boards of political parties are no longer the only authorized agents in determining who candidates. Provincial chapters and branches also have the authority to propose candidates to the party central boards in Jakarta.
Money politics
Article 2 of the revised 1945 constitution stipulates that the peak People's Consultative Assembly (MPR), in addition to members of parliament elected through a general election, will also include local, un-elected representatives of the regions. These representatives are known as Dewan Perwakilan Daerah (DPD). Registration for candidacy opened on 8 July.
Unlike members of the House and the regional legislatures, recruitment of DPD members is not conducted by political parties or organizations, but on an individual basis. Party members, in fact, are not allowed to nominate.
Article 63 of the General Election Bill states that candidates must not be party functionaries. The aim of the DPD is to represent locals aspiration, leaving the House of Representatives (DPR) to represent the interests of parties and vested interest groups.
Before the revisions to the 1945 constitution, the local representatives were manipulated by the Suharto regime to support his power through the MPR. As appointed members, the local representatives were the political apparatus of Suharto rather than acting as the voice of local people.
In the 2004 general election, the DPD members will not have an easy task. In the new version of the constitution, local representatives must have strong roots in their respective regions. Thus, in order to be able to take part, candidates must have the support of many thousands of people.
DPD members from provinces with one million in population must be supported by at least one thousand voters. In provinces with populations between one and five million, candidate must be supported by 2,000 voters, and in provinces which have between five and 10 million people, candidates must gain 3,000 votes. For those with 10 to 15 million people, candidates must be supported by 4,000 and, in provinces with more than 15 million, candidates must be supported by 5,000 electors.
Article 11 (2) of the election bill stipulates that supporters of DPD members must be spread across at least 25% of the total number of regencies and municipalities.
For example, in the province of Jakarta, with 7.5 million people, a DPD member must gain 3,000 votes, and these must come from at least two of the five municipalities The declaration of support from voters must be written together with the signature and identity card number.
DPD candidates are likely to face a bumpy road in their struggle to gain the necessary votes. Voters are likely to ask for a "reward" in return for their support. Thus, DPD candidates will need independent wealth or the backing of big business.
Candidates who have strong financial resources could take a short cut by approaching the leaders of political parties and mass organizations. Once more, money politics seems to be likely to be the key to success.
Details of the 1770 seats in the DPRD are as follows:
Associated Press - July 16, 2003
Jakarta -- Indonesia's former military chief Gen. Wiranto, who is accused of war crimes in East Timor, has been nominated by a small nationalist youth group as a candidate in the country's first direct presidential elections next year.
The group -- the Red and White Youth Guard -- nominated Wiranto as a candidate for Golkar, Indonesia's second largest party and the political vehicle of former dictator Gen. Suharto, who was ousted after 32 years in power amid riots and pro-democracy protests in 1998.
Wiranto could not be reached for comment, though in the past he has said he was willing to run for president. Because of his controversial background, Golkar may well decide to reject a Wiranto candidacy, analysts say.
Still, the early appearance of Wiranto, a onetime Suharto protege, shows the influence the old regime still wields in the runup to the polls, seen as a vital test of the country's fledgling democracy.
Wiranto enjoys considerable popularity among Indonesia's 210 million people, many of whom are either unaware or unconcerned about allegations about his human rights record.
Golkar Party officials, contacted Wednesday, confirmed they had received the Youth Guard's nomination of the 56-year-old former military chief on Tuesday.
Under Golkar party rules, prospective candidates have to be nominated by at least 500 people or a "legally recognized organization" to be eligible to run. It was not immediately clear if the Youth Guard nomination would meet that standard. Golkar will hold a congress in February to decide on its candidate.
Wiranto was armed forces chief when Indonesian troops and their militia proxies went on the rampage in East Timor after it voted to break free from Indonesian rule in 1999. At least 1,500 people were killed. In February, East Timorese prosecutors indicted Wiranto for war crimes over the killings. An earlier UN inquiry also named him as a suspect in the bloodshed.
Golkar says the accusations have not been proven, and he is eligible to run for the nation's top job. "We are trying to be as open as possible," said Golkar official Rully Chairul Azwar.
| Corruption/collusion/nepotism |
Jakarta Post - July 19, 2003
Leo Wahyudi S. -- The unemployed struggle to find vacancies as figures show that nine million are jobless nationwide. Desperation to find work is leading to an increase in collusion and nepotism. Jakartans share their experiences of the job market with The Jakarta Post.
Lyla, 29, is an employee of a private company in Radio Dalam, South Jakarta. She lives in Tangerang with her family: Finding a job is an unpredictable business and sometimes it is just a matter of luck.
The employer has many factors to consider and intelligence alone is not a guarantee of a position. I applied many times to various companies. I even reached the final stage of recruitment but in the end I failed and it was unclear why. I agree that collusion and nepotism are going to help the unemployed find jobs and I don't see that as a negative thing.
People say that collusion is a negative process and leads to the recruitment of unqualified candidates. Even worse, they get better positions than other candidates and high levels of remuneration.
Collusion could be acceptable if the candidate is qualified for the job. I have one experience of this and the outcome was okay. However, I prefer that the person who is recommending me is not a relation. If I don't perform well It might ruin my family's name.
I don't like applying for jobs through agencies either. They will take a cut of our salary, often almost half of it. That's not fair.
I plan to apply for a new job as my colleague is recommending me for the position. That's often a better way to get a job rather than searching in the newspaper or going to a job fair.
I'm skeptical about job fairs. It seems that they make a big profit and don't necessarily have the ability to match you up with a job.
Suharyanto, 41, is part of the management at a supermarket in West Jakarta. He lives in Tangerang with his wife and son: Frankly, I prefer to have someone with a good knowledge of me helping me to get a suitable job. Since my first job, I have always been recommended by someone I know.
I tried several times to apply for advertised positions but with no results. I never had a chance.
I guess I believe that getting a job by collusion is more efficient.
I hate to admit it but in reality I have less power to compete in the job market due to my educational background. I only have a senior high school diploma. That's the most crucial reason I rely on collusion rather than on open competition.
Recently I started to worry as I will be soon be laid off due to the closure of the company where I work.
I was just lucky that I got another job offer, regardless of my education. The company considered my experience and reputation first.
Diah Massardi, 40, is a director of a private company in South Jakarta. She lives in Bekasi with her husband and three children: I have had an easy time getting jobs. I always seem to find the right opportunity when I need it. When I had to switch companies someone usually recommended me for the position.
That does not mean I didn't compete with other applicants. The process was fair, my advantage was only small. I think collusion and nepotism are good, in a way. This can be a positive process. It wouldn't be a problem if all the recommended candidates had the right quality and personality for the position. The employer has the ability to make collusion operate in a positive sense. Personal competency is the main consideration.
I think many job seekers are just show offs. Often they are freshly graduated with inadequate experience and then they demand a remuneration that is too high.
I don't like candidates who try to buy time when we invite them for an interview or test.
I don't recruit candidates who don't have bargaining power and take it for granted that they are going to wind up with the position.
Jakarta Post - July 19, 2003
A'an Suryana, Jakarta -- The Development Finance Comptroller (BPKP) has found 1,435 financial irregularities worth more than Rp 1.008 trillion (about US$120 million) in government operations in the first three months of 2003 alone.
Rp 1.008 trillion is equivalent to five months salary for more than 300,000 workers earning Jakarta's minimum wage of Rp 631,000 per month.
State Minister of Administrative Reforms Feisal Tamin said Friday that the internal audit agency had discovered 61 financial irregularities worth Rp 967 billion in the Oil and Gas Implementing Body (BP Migas).
The body, which took over the traditional role of state-owned oil and gas company Pertamina overseeing the upstream oil and gas industry, was established last year.
Faisal, however, failed to spell out the type of irregularities found at BP Migas, which is directly under the control of the president.
BP Migas head Rachmat Sudibyo could not be reached for comment on Friday. The second highest number of discrepancies were found in regional governments with 494 cases involving Rp 17.9 billion, followed by the State Ministry for State Enterprises with 175 cases involving Rp 6.4 billion.
BPKP discovered 2,508 irregularities worth Rp 2.2 trillion in the first semester of 2001.
Feisal said authorities had followed up 261 cases or 18.19 percent of the total, with potential losses of Rp 958 billion in state funds.
Following up means that the agency (BPKP) hands over its findings to either the institution in question for further action or the Attorney General's Office for legal proceedings.
"The findings in the first three months of this year do not automatically mean that there were abuses. Both institutions concerned and the Attorney General's Office are now investigating. Whether or not corruption is involved will be determined when the investigations are completed," Feisal told journalists and dozens of participants at a working meeting between his agency and all related government organizations at his office.
BPKP, which is in charge of auditing development funds allocated in the state budget, investigated 31 government offices, including ministries and state agencies. Most of the organizations were represented at the meeting.
Faisal, who was accompanied by BPKP chairman Arie Soelendro, said he also invited representatives from the Attorney General's Office, but they did not attend for unknown reasons.
Faisal said that of the 1,435 irregularities, 24 cases involving Rp 32.77 trillion had been handed over to the prosecution office.
Faisal said that of the 24 cases, the Ministry of Cooperatives and Small and Medium Enterprises topped the list with 11 cases worth more than Rp 20 billion.
Other cases already submitted to the prosecution office included, among others, the Ministry of State Enterprises with three cases worth more than Rp 4.2 billion, the Ministry of National Education with four cases involving Rp 2.8 billion, and the ministry of manpower and transmigration with two cases worth Rp 2.6 billion.
10 biggest irregularities
| Human rights/law |
Radio Australia - July 18, 2003
A victim of Indonesia's anti-communist purge of the 1960s has finally cleared her name after almost three decades.
The Jakarta Post has reported Nani Nurani, who was jailed without trial between 1968 and 1976 because she once danced at a communist party social function, has won the right to a permanent identification card at the age of 62.
A Jakarta court has ordered officials in the city to give Nurani the card and has ruled that she has no affiliation to the Indonesian Communist Party, which remains a banned organisation.
Three years after an attempted coup in 1965 which was blamed on the communist party, Nurani was jailed without trial. She was freed in 1976 but was forced to carry an ID card which identified her as a former political prisoner. After the fall of President Suharto in 1998, Indonesia abolished ID cards.
| Aid & development |
Jakarta Post - July 19, 2003
Fabiola Desy Unidjaja, Jakarta -- The United States Agency for International Development (USAID) renewed its commitment on Thursday to support the democratization process in Indonesia, especially ahead of the 2004 elections.
The USAID assistant administrator of the Bureau for Asia and the Near East, Wendy J. Chamberlin, said the democratization process remained a priority for the agency "It is quite natural that we work together in the area of counterterrorism, but we are just as committed in strengthening democracy in Indonesia," Chamberlin told The Jakarta Post here on Thursday.
"The way for you to counter terrorism is by building a strong and transparent government and democratic society," she said.
Several non-governmental organizations here had complained about receiving less financial aid from USAID following the terrorist attacks in New York and Washington on September 11, 2001. They accused the United States of paying too much attention to the antiterrorism drive and forgetting about democracy in Indonesia. Chamberlin, however, refuted the claim, saying democracy had taken root in Indonesia slowly.
Earlier this week, Chamberlin signed an assistance agreement worth US$24 million for the 2004 elections, a slight decrease from the $30 million for the 1999 elections. The funds were part of $162 million provided yearly for Indonesia, which, according to Chamberlin, was the largest amount given to countries in Southeast Asia. The aid will be used to support capacity building for political parties, the General Elections Commission (KPU) and the House of Representative.
USAID mission director in Indonesia William M. Frej said the decreased assistance was due to the fact that Indonesia had shown great improvement in dealing with elections. "The real reason is the capacity of Indonesians has dramatically increased; Indonesia is now capable of organizing a free and fair election," Frej said. "We continue to provide the support because it is a much larger election and many persons will be involved in the procedures," he remarked.
Frej noted that in 1999, the US provided a larger amount because the election was a substantial move for the country, after the reform movement kicked off in 1998. "Now, Indonesians firmly believe they have a stronger position in moving along with the 2004 election," Frej stressed.
The agency will also focus on supporting independent monitoring teams to ensure a free and fair election in 2004. Frej said there would be thousands of Indonesians involved in monitoring the elections.
| Health & education |
Straits Times - July 17, 2003
Robert Go, Jakarta -- At the beginning of his career, an Indonesian teacher can expect a salary of just S$170 per month -- a reflection of the low priority given to education.
Depending on where he works, he may have to single-handedly deal with overcrowded classrooms housing between 40 and 50 students each.
PGRI, the country's teachers' association, said the government would need to hire another half a million teachers immediately if it wants students to be properly educated.
Last year, state auditors found 75 cases of fraud within the Education Ministry and the school system, and the loss of millions of dollars meant for improving schools.
Media reports last September described how students in West Java had to sit on the floor during classes as furniture in the province's 1,500 schools had rotted away or broken down due to age and poor maintenance.
Indonesia is facing an education crisis, a fact highlighted by numerous international and local studies of the country's school system and students.
Unesco, the latest agency to publish such information, last week ranked Indonesian students near the bottom of the list when it comes to basic skills, compared to children in 42 other countries.
Ranking: Bottom of the list
Unesco has ranked Indonesian students near the bottom of the list when it comes to basic skills, compared to children in 42 other countries. Teachers' low salaries and qualifications and corrupt officials are blamed for the poor education system. The rural communities bear the brunt because few qualified teachers want to work in these areas.
Experts said low salaries and qualifications for teachers, corruption among officials, poor education infrastructure and a lack of government funding all contributed to the woes.
Dr Mohammad Surya, PGRI's president, noted that before the economic crisis in the late 1990s, the government had spent 70 Singapore cents on the education of a child each year. That average has dropped significantly since, he said, and the government's education budget this year of around S$2.8 billion is not enough to build more schools, increase teachers' salaries and buy books for students.
Most of the nation's 2.2 million teachers have received university education but few have secured advanced degrees and too many have only a high school diploma. Rural regions, in particular, suffer as few qualified teachers want to work in such areas, given the low pay and lack of prestige.
Dr Surya said: "Our national leaders talk about improving education. But in truth, we have seen few reforms since this government came into office. We need to spend more on education if we want to improve the system." Such additional funds, he and other education experts said, would help schools attract more qualified and better-educated teachers and improve their facilities.
Education Minister Abdul Malik Fajar has similarly campaigned for more cash for schools, but also assessed Indonesia's school curriculum as another area that needs changes. He said last week that the general programme taught by schools "lacked imagination" and was often "out of touch with everyday life".
And yes, corruption rears its ugly head again when it comes to education funds. Indonesian non-governmental organisations and corruption-watchers have documented numerous graft cases over the last few years involving education officials.
According to the Education Care Foundation, the most common scams involve the mark-up of books and school equipment purchased by the government, with both officials and suppliers of such goods playing the game.
Since 2000, for instance, the government has bought millions of textbooks at about 47 rupiah (one Singapore cent) per page from publishers, even though the current going rate on the market for such items is less than half that figure, or between 18 and 22 rupiah per page.
Dr Surya said Indonesia's education system would continue to lag behind and students would continue to be less competitive than those of other countries unless the government made education a priority. He said: "Politicians just promise to improve education but never deliver. As a consequence, our next generation will be poorly prepared."
| Armed forces/police |
Sunday Times (London) - July 20, 2003
Eben Kirksey and Jack Grimston -- Britain's biggest company, BP, has angered human rights groups by becoming involved with Indonesia's brutal security forces in an attempt to protect a 1 billion Pound gas production scheme.
The company is using officers from the country's feared Mobile Police Brigade (Brimob) -- which has been accused of numerous human rights abuses -- to guard explosives at the Tangguh project in the province of West Papua, which is due to begin production in 2007. Earlier this month the company also held a seminar in Jakarta with army and police commanders to discuss the level of protection that they would give the project.
Indonesian security forces have been condemned by Amnesty International for torture, extra-judicial executions and "disappearances" in West Papua. Thousands of people have been killed in the conflict over the past 40 years. The company claims that a new "community-based" security policy will help it to gain the trust of local inhabitants, minimising the chance of violence breaking out and provoking full-scale intervention by the military.
Human rights groups, however, believe the policy has little chance of working in West Papua. Lucia Withers, Indonesia researcher for Amnesty, said: "Can BP really provide security? The situation is fundamentally unstable and you have a wild card in the form of a very powerful and almost totally unaccountable military."
The allegations over Tangguh threaten BP with similar embarrassment to that caused by its investment in Colombia, when it was criticised for links to an army accused of collaborating with paramilitary death squads.
In its 100 million Pound relaunch in 2000, BP used the slogan "beyond petroleum" to re-brand itself as an ethically and environmentally responsible company. Its policy states: "We must work to ensure that our actions do not negatively impact human rights."
BP's activities in Indonesia may also cause political problems in Britain, where the company has close links with new Labour. It employs several former aides of Tony Blair, including Anji Hunter, a former special adviser. Lord Browne, BP's chief executive, is a Labour peer.
West Papua is the size of France but has a population of only 1.7 million. It contains the world's second largest rainforest and has vast mineral resources, including gold, as well as gas reserves. In contrast to well-armed guerrillas in other parts of the world, many of West Papua's rebels wield only bows and arrows.
The security forces have been accused of using nationalist movements all over Indonesia as a pretext for obtaining "protection" money from companies. Some 80% of the army's revenue is believed to come from these sources. BP's community policy aims to avoid this by relying largely on locally recruited security guards -- 65 have already been trained -- to keep the army presence to a minimum.
But human rights groups believe the temptation of Tangguh, likely to become one of Indonesia's biggest foreign currency earners, may be too difficult for the army to resist. The company training the new guards, however, is run by Harianto, a former brigadier general in the Indonesian marines.
Some critics believe the army may have already staged violent incidents as a pretext for intervention. One occurred in 2001, when five police officers were killed. After the shootings, Brimob launched an operation, called Sweep and Crush, in which they executed or tortured to death at least eight people. However, Barnabas Mawen, a pseudonym for one of the group which killed the policemen, told The Sunday Times that Indonesian military agents had supplied him with bullets, food and money before the attack.
BP said its security policy was designed to minimise the likelihood of military involvement. "BP's goal is to create a security system based on understanding and consent where responsibilities are clearly defined," said a spokesman. "The Indonesian security forces will have a very constructive role. exactly what size and presence of the Indonesian security forces will be involved will be for them to determine."
| Military ties |
OneWold US - July 15, 2003
Jim Lobe, Washington -- Reports that the Bush administration will release funds train Indonesian military officers -- despite a recent vote by a key Senate committee that calls for training to be suspended until the army's responsibility for the killing of two US teachers is clarified -- have drawn strong expressions of concern by human rights groups here.
A Pentagon spokesman said Monday he could not confirm that a decision has in fact been made, but non-government organizations (NGOs) that monitor Indonesia said they understand that senior Defense officials, including Deputy Defense Secretary Paul Wolfowitz, a former US ambassador to Indonesia, have decided to go ahead.
Wolfowitz has long argued that US military re-engagement with the Indonesian military (TNI) should be an urgent priority in the US-led war on terrorism, and that it can help improve the armed forces' human rights performance, a contention with which human rights groups and many Indonesia analysts strongly disagree.
"For over three decades, the US and Indonesian militaries were extremely close and we saw no move to reform," said Ed McWilliams, a former State Department officer who served as political counselor in the US Embassy in Jakarta from 1996 to 1999. That year military relations were suspended after TNI- organized militias went on a rampage in East Timor.
The violence, in which more than 1,000 Timorese were killed and tens of thousands more displaced, prompted the intervention of an Australian-led multinational force and led eventually to East Timor's independence from Indonesia. "The TNI's worst abuses took place when we were most engaged," McWilliams pointed out.
While the amount of funds for Indonesia's participation in the International Military Education and Training (IMET) program comes to a mere $400,000, activists argue that resuming training now would be seen in Indonesia as a strong endorsement of the TNI at a critical moment.
Indonesia's armed forces are currently engaged in the largest counter-insurgency operation against secessionist rebels in Aceh since the invasion of East Timor in 1975. Reports out of the gas-rich province of northern Sumatra since the operation's launch in mid-May have spurred growing concerns about serious abuses against the civilian population.
On Monday the World Organization Against Torture, based in Geneva, became the latest international human rights group to voice "deep concern" about the situation there, particularly in light of the failure of the global media to follow developments in Aceh. It said that as many as 1,000 civilians have been killed and 40,000 more forced to flee their homes. "The latest reports indicate that human rights defenders are being subjected to harassment, arrest, torture and execution for pursuing their activities," it said. Foreign journalists and humanitarian organizations have been prevented from entering the province.
Amnesty International and Human Rights Watch have also voiced strong concerns about the counter-insurgency campaign and its impact on civilians in recent weeks. Even Wolfowitz complained on a recent trip to Jakarta that no military solution in Aceh was possible and said the government should return to the negotiating table to seek a political settlement.
The TNI has been criticized for similar abuses in West Papua, where two US teachers and one Indonesian were killed and another eight US and three Indonesian citizens wounded in an ambush near the mining operations of Louisiana-based Freeport-McMoRan Cooper and Gold, Inc. last August 31 under circumstances that, according to both Indonesian police and the Federal Bureau of Investigation (FBI), implicated the TNI. After two planned FBI trips were blocked by the TNI, Jakarta recently allowed the FBI to return and continue its own investigation.
After a major Pentagon lobbying effort to persuade Congress to renew IMET training for Indonesia following the September 11, 2001, terrorist attacks, Congress finally authorized $400,000 for IMET training for Indonesia for fiscal year 2003, and it is that money which is now at stake.
In light of the McMoRan ambush, however, the Senate Foreign Relations Committee voted in May to condition all IMET aid for Indonesia in fiscal year 2004 (which begins October 1) on Jakarta's "taking effective measures" to fully investigate and criminally prosecute those response for the killings.
"The release of the IMET funds now would only cause people to question America's commitment to its own citizens' safety," Patricia Lynn Spier, who was seriously wounded and whose husband was killed in the ambush, said on Monday. "The FBI must be allowed to complete its investigation of the attack on me and others at the Freeport mine. No military assistance should be provided unless the Indonesian military is deemed innocent."
The Pentagon, however, is particularly eager to renew ties with Indonesian military officers as part of the war on terrorism in which Washington hopes the TNI will play a key role. Indonesia has the world's largest Muslim population, and last year's bombing of a nightclub in Bali apparently persuaded both President Megawati Sukarnoputra and other senior government officials that radical Islamists represented a serious threat to the country.
On Monday, a bomb was exploded at Indonesia's parliament in what the police called a "terror" attack in which the explosives used were similar to those found in the possession of alleged Islamist militants arrested in Jakarta last week.
The Pentagon persuaded Congress to permit it to provide the TNI with some $4 million in counter-terrorism training and non-lethal equipment last year, but has made no secret of its desire to provide more assistance to the Indonesian military, particularly its officer corps.
"I believe exposure of Indonesia officers to US [military personnel] has been a way to promote reform efforts in the military, not to set them back," Wolfowitz said earlier this year.
But other analysts strongly disagree, noting not only the brutal record of the TNI when it was most closely engaged with the US during the 30-some years of former dictator Suharto rule, but also the concern that the military will use renewed IMET funding to trumpet its return to international respectability when, in fact, it has done nothing to deserve it.
"Rather than teach democratic values, the Indonesian military will see IMET as a US endorsement of business as usual," said Kurt Biddle, coordinator of the Indonesia Human Rights Network (IHRN). "Since the administration has actively sought to restore military assistance, the Indonesian military has sabotaged international efforts to attain justice for crimes against humanity committed in East Timor, exonerated itself of last year's murder of two US teachers, and undermined a US-backed ceasefire in Aceh."
Rights groups are particularly outraged at the treatment accorded Major. Gen. Adam Damiri, who is leading the counter-insurgency campaign in Aceh. Damiri has been charged with crimes against humanity in connection with the havoc in East Timor in 1999, but missed several days of his trial in May in order to help prepare the TNI for its assault on Aceh. "There has been no meaningful progress towards reform of the military or the ending of impunity [since the East Timor violence]," according to a statement signed last month by some 90 human rights, peace, and church groups around the world who called for an international military embargo against Jakarta.
After the mayhem in East Timor, the US Congress conditioned the resumption of military-to-military relations with the TNI by insisting that Indonesia punish the military officers responsible and take other steps to secure civilian control over the military and end its impunity. But Congress relaxed those conditions as a result of Pentagon pressure after the September 11 attacks.
Straits Times - July 18, 2003
Roger Mitton, Washington -- There are tremors of apprehension in the United States about a serious downturn in its relationship with Indonesia.
Matters came to a head on Wednesday when the US House of Representatives voted down funds for military education and training to Indonesia until the murder of two Americans in Papua last year is investigated properly. Congressmen believe Indonesian military elements were involved in the Papua atrocity and want the guilty parties punished.
They are standing firm on this matter, despite the desire of President George W. Bush's administration to restore the funding, which was cut off after the involvement of the Indonesian army in massacres in the former East Timor. The amount involved, about US$400,000, is relatively small, but Jakarta views it as symbolic of America's commitment to friendly relations.
As a result of the military funding impasse and other contentious issues, ties have hit a rocky patch despite efforts by the State Department to keep things on an even keel, with aid continuing in areas such as health and education.
"I would say it is pretty bad," said Mr Donald Emmerson, a senior fellow at the Institute for International Studies at Stanford University, who is regarded as the doyen of America's experts on Indonesia. "There are a number of on-going points of tension and potential flashpoints."
Mr Dana Dillon, a senior policy analyst at Washington's Heritage Foundation, agreed, listing the US problems with the Indonesians. "They don't support the war in Iraq. They did not support the invasion of Afghanistan. Their government has only taken half- hearted economic measures. There is the murder of two Americans in Papua. There is Indonesia's half-hearted support for the fight on terrorism -- there is a whole lot of things," he said.
The US now regards Indonesia's belated entry into the fight against terrorism as having tapered off, without Jakarta robustly following through against Jemaah Islamiah and other such groups. But it is the apparent involvement of the Indonesian military in the killings of the two American teachers from an international school in West Papua last August that is currently the major irritant between the two nations.
A campaign by the widow of one of the victims has made a big impact on congressmen, who have let Mr Bush know that they will not approve military-related funding for Jakarta until this case is resolved properly.
As if that were not bad enough, the Indonesian military's massive crackdown on Aceh separatists is also upsetting the US. Most galling to the Americans has been the way Indonesia has openly modelled its Aceh strategy on the "shock and awe" technique used by the US in Iraq, even to the extent of using embedded journalists.
Although Washington has repeatedly made clear that it supports Indonesia's territorial integrity, it has not condemned the Aceh separatist group GAM in the way Jakarta would like. "The Indonesians would love the US to declare GAM a terrorist organisation, like the Abu Sayyaf, but the US has not done this," said Mr Emmerson. Not only that, but many in the US view the Indonesian military as being as bad as GAM.
Last week's furore over the intrusions of US F-18 jets into Indonesian airspace indicates how, given the current tense state of relations, a small incident may cause ties to plummet further.
The taut situation is expected to cause apprehension across South-east Asia. No one in Asean wants a crisis to develop between its largest member and the US.
"Asean would love to have much better US-Indonesia relations," said Mr Dillon. Unfortunately, it is not happening. Basically, he said: "Americans don't understand Indonesia and the Indonesians really don't understand the US."
Associated Press - July 16, 2003
Washington -- The House voted Wednesday to deny military aid to Indonesia until that country fully investigates an ambush last year that killed two Americans.
Rep. Joel Hefley, R-Colo., who sponsored the measure, said the Indonesian government has dragged its feet on investigating the ambush that preliminary reports indicated may have been carried out by Indonesian soldiers.
In August 2002, teachers from the Tembagapura International School were headed to a picnic in Papua, Indonesia , when two vehicles carrying passengers were ambushed.
Rick Spier of Littleton, Colo., and Ted Burgon of Sunriver, Ore., both teachers, were killed in the attack. Eight others were wounded, including a 6-year-old child. Spier's widow, Patsy, who was shot in the back and foot, sought Hefley's support in pushing for a full investigation.
"The victims of this attack and their families deserve a thorough investigation by the Indonesian and US governments," said Hefley. "It is not too much to demand answers about who orchestrated and carried out this ambush and see the perpetrators brought to justice."
Hefley said that after initial reports that the military may have been involved, the Indonesian police have been removed from the case and responsibility has been assigned to the military, which has exonerated itself.
If enacted, the provision would withhold military education and training funds until a thorough investigation is complete. The amendment was added to the Foreign Relations Authorization Act and approved by the House on Wednesday. A similar effort is being led by Sen. Russell Feingold, D-Wisc., in the Senate.
| Economy & investment |
Asia Times - July 17, 2003
Bill Guerin, Jakarta -- The closure of Indonesia's state-owned aircraft manufacturer PT Digantara Indonesia (DTI), which has laid off all of its workers in an attempt to avoid bankruptcy, appears to put in mortal danger a startling and unlikely dream: to make a Third World tropical nation into a technological powerhouse.
DTI closed Sunday for six months after a decree from its board of directors, who are now trying to figure out a way to save the company. In the meantime, employees are barred from entering and the premises are guarded around the clock by the air force's elite Paskhas unit. Thus yet another emerging nation has demonstrated the wisdom of English economist David Ricardo's theory of competitive advantage, which holds that economies are wisest to stick to what they do best.
The government on Wednesday was considering a complicated deal to rescue the stricken company, with the Indonesian Bank Restructuring Agency (IBRA) mulling converting DTI's outstanding debts, totaling Rp1.7 trillion, into equity. But IBRA said it would only do so if government also converts subordinated loans totaling Rp1.2 trillion to the company. The agency's outstanding loans to DTI amount to Rp3.17 trillion There are still orders on DTI's books, including for four CASA CN-235s for the Pakistani air force, two for Malaysia's Royal Air Force, one for the Indonesian air force and a CN-212 transport (CASA C-212 Aviocar) for the Indonesian navy, and some wings for the Airbus 380. DTI assembles Spain's CASA (Construcciones Aeronauticas SA) aircraft and several European-made helicopters as well as producing parts for international aircraft makers such as Aerospatiale, the French aircraft factory.
Funds earmarked for project funding have had to be used to cover operational costs and pay the salaries of workers, company president Edwin Sudarmo said. He promised that the move is "temporary in nature ... We are not making any dismissals, or cutting wages," Sudarmo pointed out.
Nonetheless, the whole enterprise has in fact been temporary in nature since 1997. The doomed Suharto government, under extreme pressure from the International Monetary Fund (IMF), caved in to demands to stop funding companies that were seen as pet projects or as little more than showpieces. After Suharto's fall, successive new Indonesian governments declined to top up the lavish funding that the aerospace industry had previously enjoyed.
The aircraft industry was the unlikely dream of B J Habibie, Suharto's research and technology minister, and later Indonesian president himself. Habibie, a German-educated technocrat and confidant of Suharto who in his heyday in the 1980s controlled 10 strategic industries, was obsessed with aircraft. He cajoled Suharto into spending hundreds of millions of dollars on the new venture, originally known as IPTN, set up in 1986 with an initial capital of Rp1.6 trillion. There were times when his dream began to resemble the plot of the famed movie Fitzarraldo, directed by the German Werner Hertzog, in which an Irishman dreams of creating an opera house in the middle of the Brazilian jungle in which Italian tenor Enrique Caruso can sing.
The dream of both Habibie and Suharto was to create an Indonesian high-tech aerospace industry that would kick off by producing passenger aircraft such as the Spanish-designed CASA CN-235 fixed-wing aircraft and assembling Puma and Bolco helicopters. The Indonesian government did its best to prop up the industry, obliging state-owned airlines to buy the trademark CN-235s. Some were bartered with Thailand and Malaysia for rice and cotton in 1995. There was also an attempt to foster intra-ASEAN (Association of Southeast Asian Nations) trade for the Proton Saga, Malaysia's national car, which, like Indonesia's airplane, was a heavily subsidized dream on the part of Prime Minister Mahathir Mohamad, and which also lost vast amounts of money.
By the early 1990s, operational costs were being met out of the state budget. In 1994 Habibie even took an "interest-free loan" of Rp400 billion, at Suharto's request, from reforestation funds to help bail out the company. The 50-seat N-250 made its maiden flight in 1995, prompting Habibie to declare grandly that this was the "national awakening" of Indonesia's technology industry. Only two prototypes were built, and they have not flown since 1997.
In February 1996 Suharto came up with a brainwave. To pay for the design and development of Indonesia's first flying machine, the N-2130 (N for Nusantara, two engines, 130 seats), he set up a private company, PT DSTP (Dua Satu Tiga Puluh), chaired by himself and acting in his own personal capacity. The total target needed for getting the new kite in the air was to be US$2 billion.
DSTP shareholders pressed into service included 20 top conglomerate owners, among them Prajogo Pangestu, Henry Pribadi, Eka Tjipta Widjaya, and Sudwikatmono. These well-heeled investors promptly bought up some $400 million worth of shares. Two ex-vice presidents were appointed to the board of commissioners -- Sudharmono and Umar Wirahadikusumah. In a meeting with governors at the end of March, Suharto turned the screws, telling them of the "national importance" of the aircraft.
Pressure was put on several state-owned enterprises to contribute to Indonesia's future in the aerospace industry. In May, six struggling government companies under the Forestry Ministry, responsible for managing Indonesian forests, coughed up $15 million for shares in DSTP. The money was taken from rainforest- preservation funds.
A month later 21 other state-owned companies under the Ministry of Industry and Trade agreed to buy Rp70 billion ($35 million) worth of shares. Then, on June 13, came the bombshell. Suharto, citing the need for gotong royong (mutual self-help), called on all regents across the country to collect Rp5,000 from every member of the population, a down payment on an estimated $10 from every Indonesian.
By 1997 the management was forced to set about restructuring the vastly inefficient white elephant. The 16,000 workforce was slashed to little more than 9,000. A series of crippling strikes ensued as the company's workers rejected the action outright, saying chronic financial problems were not reason enough to take the decision without their consent. They called for the investigation of corruption charges of Rp4 billion at the company's aircraft service division in 1999 and the disappearance of 18 CN-212 aircraft engines worth $400,000 in 1998.
Union leaders demanded that the government replace members of the management, whom they accused of corruption, collusion, nepotism and incompetence, to solve the company's chronic problems. They also demanded that the government appoint a caretaker management to run the company.
In October 2001 some 2,000 workers protested at the provincial legislative council building in Bandung, where the plant is based. As well as slamming the failure of company management to eradicate corruption, collusion and nepotistic practices in the firm, they also demanded a pay raise.
A month before, the workers had rallied at the House of Representatives in Jakarta to make the same complaints, prompting the company's chief commissioner, air force chief Admiral Hanafie Asnan, to compare the incident to a coup d'etat. "In the military, this kind of [labor] action is considered a coup that must be quelled immediately," he said.
Unfortunately, the problems for the company were deeper than just corruption or labor strife. The N-2130 faced stiff competition from similar Chinese-built models, the MD-59 and the F-100. Stiff competition forced Fokker, the maker of the latter, to go bankrupt as well in the late 1990s.
The dream, however, still lives on for Hababie. The ex-president, who now lives in Germany, told Indonesian TV station SCTV this month that he was ready to leap to the rescue and come back to make his brainchild viable. The proviso was that he be given 5 percent of any company stakes that could not be sold, in order to "provide legitimacy for my position in the company".
Strangely enough, State Enterprises Minister Laksamana Sukardi did not reject this out of hand. "If he wants to have 5 percent golden shares, we will study the concept and what he will do with the debts," Sukardi said on Monday.
"We could have another round of talks. If necessary, we could have the manpower minister act as a mediator," Hanafie said.
Hanafie is still chief commissioner and observers expect DTI to come down hard on protesters during the current layoff. However, Manpower Minister Jacob Nuwa Wea has sent a team to the plant to intervene in the dispute. Wea says the company's decision breaches a clause in the recent Employment Act, Law No 13/2003, which requires bipartite discussions before any layoffs are made.
The current state minister for research and technology, M Hatta Radjasa, believes the company should be "salvaged". Though offering no magic wand, the minister said on Tuesday that DTI was part of a strategic industry that needed to be developed and kept in the country.
Union officials have promised a long fight to protect their future.