Aceh

Reporter accuses soldier of brutality

Jakarta Post - December 27, 2003

Nani Farida, Banda Aceh -- A local reporter working for SCTV private television station, Muhammad Nasier, filed a complaint on Friday with the Aceh Military Operation Command in Lhokseumawe, North Aceh, after a soldier slapped him across the face the previous day.

In his complaint, Nasier said he was slapped when he argued with the soldier during a routine inspection. Nasier said the incident began when he was on his way to his home on Jl. Mawar in Cot Trieng, North Aceh.

Three soldiers stopped him when he was traveling along a street in Blang Pulo subdistrict in Lhokseumawe. He parked his motorcycle behind a Daihatsu jeep belonging to an employee of PT Aceh ASEAN Fertilizer. The Daihatsu had also been stopped and the soldiers were checking the driver's ID.

Minutes after the soldiers checked Nasir's ID card, one of the soldiers shouted at him and told him to move his motorbike from the asphalt road to the side, reasoning that military trucks would pass the road. Nasier immediately moved his motorbike, but grumbled that it was the Daihatsu vehicle blocking the road, not his motorbike.

One of the soldiers abruptly approached Nasier and slapped his face and said: "What did you say? Think twice before you argue." Nasier, who was shocked by the alleged assault, immediately challenged the soldier, telling him not to be emotional and not to slap someone without strong grounds.

After lodging his report of the incident the next day, he demanded that the military investigate the matter. Nasier's case is the second assault to be officially reported to the military in Aceh. In July, the management of the 68H news radio lodged a strong protest with the martial law administration over an alleged assault on one of its journalists, Alif Imam Herlambang, in Panton Luas, South Aceh.

Jakarta sends crack troops to Aceh

Straits Times - December 27, 2003

Robert Go, Jakarta -- The Indonesian military (TNI) has escalated its security crackdown on rebels of the Free Aceh Movement with the dispatch on Christmas of three battalions of the newly-formed elite Raiders Unit to the troubled province.

The crack troops -- each Raider is touted to be equivalent to three normal soldiers because of the improved training and weaponry -- will be tasked with hunting down leaders of the separatist movement who have waged an insurrection against Jakarta rule for the last three decades.

The three battalions comprise some 2,300 soldiers who have received special counter-insurgency and 'crisis-situation' training over the last year.

Indonesia's seven other Raiders battalions would be deployed 'as needed' to Aceh next year, said army chief of staff Ryamizard Ryacudu.

He predicted that "security conditions in Aceh will vastly improve" after the arrival of the crack troops. "They will be very effective in Aceh. They're well equipped to deal with the problems there," said the general.

During a ceremony to commemorate the 58th anniversary of the Indonesian army on Monday, Lieutenant-General Bibit Waluyo, head of the Kostrad special forces, told the Raiders battalions: "You must complete your missions as you have been given the means, tactics and methods that would be needed during your training. It has been said that one of you is the same as three normal soldiers. You must prove this."

The beefing up of the army's presence in Aceh, Indonesia's northernmost province on the tip of Sumatra Island, takes place seven months after Jakarta declared martial law in May.

It is the second phase of the military operation announced by TNI chief Endriartono Sutarto last month after Jakarta extended its initial martial law declaration by six months, putting Aceh under military control when Indonesians are scheduled to vote next April.

Gen Sutarto said the second phase of its operation would involve "new personnel and improved weaponry and strategy". He also announced the appointment of a commander of the new Aceh Military Operation, Brigadier-General George Toisutta.

With the elections fast approaching next year, the government and the military are desperate to show signs that troops have been able to stay in control of the province.

The military said that of the estimated 5,000 rebels, more than 2,000 had been captured or had surrendered, and 1,200 had been shot dead in the last seven months.

Rebels have no address to be obliterated

Jakarta Post - December 26, 2003

Kanis Dursin, Jakarta -- Foreign Affairs Minister Hassan Wirayuda unleashed the first-ever scathing criticism by any Indonesian official on the invasion and occupation of Iraq in early December, almost nine months after allied forces, led by the world's lone superpower, the United States, dropped their first bombs at selected targets across Iraq in March.

"Terrorists have no fixed addresses that can be obliterated once and for all with a surgical military strike," the Cabinet minister told the Council for Security Cooperation in the Asia Pacific (CSCAP) conference here on December 8.

He continued, "if those weapons [of mass destruction] have not been found because they do not exist, then an entire country has been leveled to the ground for no good reason."

Isn't the government doing just that in Aceh against its own people and in its own territory? Didn't the Cabinet minister realize that Indonesia too, the world's largest Muslim country, has been engaged in a lopsided war against an outnumbered, poorly trained, ill-equipped separatist Free Aceh Movement (GAM)? In a desperate attempt to crack down on the secessionist movement, President Megawati Soekarnoputri placed the country's westernmost province of Aceh under a state of emergency with the declaration of martial law on May 19, paving the way for a power-hungry military to take the reins in the resource-rich province.

A massive military offensive ensued, with the government mobilizing some 35,000 combat troops and 14,000 police personnel, mostly from the much-feared paramilitary Mobile Brigade (Brimob). Tanks and warplanes were also moved overnight to support the country's largest-ever military deployment. Since then, Aceh has become a real-life battleground, with the military pounding and raiding suspected GAM strongholds and hideouts, day in, day out.

But seven months into the operation, GAM rebels are still very much around and their leaders are still in full command of the secessionist movement. Indeed, government troops have regained territories previously controlled by GAM but the insurgency still poses a great security threat to both civilians and the military. Its mission not accomplished, the government extended martial law in mid-November for another six months.

In the meantime, over 300 innocent civilians have lost their lives in a war they never waged. And to borrow the words of Minister Hassan, these people have died "for no good reason." It is for no good reason because their deaths do not and will not change for the better the situation in Aceh and certainly will not make Acehnese rebels give up their struggle for independence.

On the contrary, the war has dashed any hopes of a peaceful settlement to the Aceh question. As government troops intensify military operations and GAM rebels harden their demands for independence, more casualties, including innocent civilians, are likely to be sustained. That means the Acehnese will have to suffer even more. Already, at the onset of operations, tens of thousands of students in Aceh had to face the full brunt of the so-called integrated operation as government troops failed to anticipate the rebels' scorched-earth tactics in torching hundreds of schools in the province.

If the ultimate goal of the current military offensive in Aceh was to wipe out the decades-long secessionist movement by arresting or killing all GAM rebels and their commanders, then the government has little to brag about. Government troops and police personnel have so far managed to kill just over 1,000 rebels and arrest almost 2,000 others. None of those arrested or killed were senior members or leaders of the separatist movement.

Jakarta has indeed restored some local administrations by installing former and active military personnel as regents and district heads, but these newly restored local administrations cannot function effectively without the support of the military and police. Peace and order in those areas also remain volatile, with local residents living in perpetual fear of being caught in cross fire between government troops and rebels. Needless to say, tens of thousands of Acehnese have opted to stay in makeshift refugee camps and have to put up with miserable conditions in those squalid camps just to spare themselves from stray bullets.

The Aceh war came after the failure of a last-ditch attempt to save a peace agreement signed in December 2002. Under the agreement, known as the Cessation of Hostilities Agreement (COHA), both the government and GAM rebels vowed to end all hostilities across the province. The government pledged, among other things, to move its troops from offensive to defensive positions and confine the function of Brimob police to maintaining peace and order. The rebels, for their part, agreed to store their weapons and abandon independence aspirations by accepting the special autonomy status introduced in 2001. To lend more credibility to the landmark deal, both parties agreed to invite observers from two neighboring countries, the Philippines and Thailand, to monitor its implementation. The peace agreement was then hailed as the dawn of peace in Aceh.

Peace proved to be short-lived as the government and rebels soon realized that they were strange bedfellows rather than soulmates. They began to recant their respective vows and slowly drifted apart, only to confront each other at deadly armed encounters.

Government troops were never withdrawn to defensive positions and Brimob never changed into territorial police in charge of peace and order, while GAM members refused to collect their weapons and continued to campaign for independence. Moreover, neither the government nor the rebels admitted that they were violating the peace agreement, which was sponsored by the Switzerland-based Henry Dunant Centre. Instead of apologizing for breaching the agreement, both sides busily pointed fingers at each other.

In a move that could be seen more as an attempt to justify its impending military operation than a sincere search for peace, the government invited GAM rebels to a last-minute meeting, but with a string attached: The rebels had to accept unconditionally the territorial integrity of the country, which included Aceh. It was easy to guess that GAM members would turn down the invitation. Thus the military operation went ahead.

The operation, which saw the deployment of some of the country's sophisticated weaponry, including warplanes and tanks, has so far failed to bring Acehnese rebels to their knees. The secessionist movement remains intact and rebel leaders move around the province undisturbed, with some readily accessible for press interviews. Defiant as ever, virtually all GAM leaders have eluded massive searches and have been spared from relentless air bombardment.

If the Aceh war has produced any lessons to be learned, it should be these: First, rebels too, just like terrorists, have no fixed address for government troops to blow up; thus, marching dozens of thousands of troops and police personnel against ill-equipped, poorly trained Acehnese rebels is extremely disproportionate. Second, ideology, including independence ideology, cannot be defeated by military might. This holds true in Northern Ireland, Mindanao in the Southern Philippines and even now in Iraq. This should also be true for Aceh and Papua, where the government has been engaging a low-level, poorly organized rebel group, the Free Papua Movement (OPM).

It does not mean, however, that an ideology cannot be defeated. Of course it can -- but only by another ideology.

The secessionist movement in Aceh started only in 1976, almost two decades after Acehnese leaders had voluntarily pooled their personal money to buy a commercial airplane. Money earned by operating the plane was used to finance struggles for recognition of the country's independence. This clearly suggests that Acehnese have from the very birth of the country shared the ideology of the Unitary Republic of Indonesia.

So, what went wrong? Looking back, Jakarta has failed Aceh and has largely ignored the aspirations of Acehnese people. The central government promised to grant Aceh special status in terms of religion, culture, and education, but as of now has not yet honored its words. Instead, Jakarta plundered Aceh's resources, returning only a tiny fraction of the abundant wealth to the Acehnese. Even demands by Acehnese people to prosecute those responsible for gross human rights violations in Aceh, including military officers, have fallen on deaf ears. What do we expect from people whom we have failed, plundered, and whose rights we have violated? Loyalty is certainly not one of them.

It is worth noting that the ongoing operation has failed to draw Acehnese people to the government side. While Acehnese have not displayed their support for GAM rebels publicly, they have shown little interest in divulging information about the whereabouts of GAM members and their leaders, making it difficult for troops to track them down. This "indifference," however, should not be taken to mean that they support the secessionist movement. It simply demonstrates that for the Acehnese a military operation is simply not the way to resolve the Aceh question once and for all.

The government took the right path when it introduced in 2001 special autonomy status for Aceh, under which the province would largely manage its own government and retain almost 70 percent of its revenues. The province would also be free to implement sharia (Islamic law) and establish a sharia court. The government, however, has yet to implement the law.

Since Jakarta has long failed Aceh and violated the rights of its people, don't expect the Acehnese, especially GAM rebels, to patch up their differences with the government quickly and abandon their independence aspirations. The government has to go the extra mile, proving to and convincing the Acehnese and the rebels that it is now serious about addressing their grievances. It is the government, not GAM rebels, that has to prove that it is sincere in its peaceful undertaking.

Acehnese rebels are likely to bend on engaging the government in endless bloody conflict in order to advance their independence aspiration and would torpedo any peace initiative in the future. In this case, the government, especially its troops on the ground, has to exercise patience and self-restraint.

Jakarta needs Aceh more than Aceh needs Jakarta. Aceh can do without Jakarta, but Jakarta cannot do without Aceh. An independent Aceh would likely spark more rebellions in other parts of the world's largest archipelagic country. "The war against terrorism is a struggle for the hearts and minds of populations. That struggle calls for wise policies, not smart bombs," said Minister Hassan. Indeed, the same principle applies to rebellions like GAM in Aceh and OPM in Papua.

TNI vs. GAM in the ongoing war in Aceh

Personnel TNI: Around 47,000, comprising 34,679 soldiers from all of the three forces -- Army, Navy and Air Force, along with around 12,000 police.

GAM: Earlier was reportedly between 5,000 to 8,000 fighters. After more than six months of military offensive, offensive, TNI claimed to have killed over 1,000 GAM rebels and arrested 2,000 others.

Arsenal TNI: 13 Scorpion tanks, 23 Navy amphibious tanks, 12 Navy tanks, two F-16 jet fighters, 4 Hawk-200, six Hercules carriers, one Superpuma, five Twinpack, helicopters, six OV-10 Bronco military aircraft, one Hawk MK-53 fighter and two F-5 jet fighters.

GAM: 8,000 weapons, including SS-1, AK-47, AK-54 rifles and homemade bombs.

Six rebels killed, eight civilians abducted: Military

Agence France Presse - December 26, 2003

Banda Aceh -- The Indonesian military on Friday accused separatist rebels in Aceh province of kidnapping eight civilians, including three village chiefs.

Free Aceh Movement (GAM) members seized the three chiefs at Pante Bidari in East Aceh on Thursday, said provincial military spokesman Ahmad Yani Basuki.

Guerrillas also abducted three workers at Bakongan in South Aceh on Thursday, Basuki said. On Wednesday two lighthouse workers were abducted on Bunda Sabang island, the spokesman said.

Basuki said troops killed five rebels in separate clashes in four districts on Thursday and seized a Kalashnikov rifle, a home-made grenade launcher and dozens of rounds of ammunition.

The body of a suspected rebel was found at Kuala Batee in Southwest Aceh on Thursday. GAM could not be reached for comment.

Media slammed for sidelining in Aceh issue

Jakarta Post - December 26, 2003

Jakarta/Lhokseumawe/Medan -- Indonesian media have failed to help resolve the Aceh conflict, as their coverage of the impact of martial law in the war-torn province has been inconsistent, a watchdog says.

The Information Flow Study Institute (ISAI) said the media here has no clear agenda on the Aceh issue, let alone helping to find a settlement to the war.

Data from ISAI revealed that the media flooded their columns and air time with news about Aceh during the early days when Aceh was placed under martial law in May 2003.

However, during the final days of the first six months of the military operation, there were only a few news items about the issue, said Agus Sudibyo, who heads ISAI's evaluation team, on Tuesday. He criticized the media for easily ignoring Aceh and instead focusing on other issues considered to be more interesting.

"The media has the right to say that it must present something its readers or viewers want, but there is no reason for the media not to keep questioning the implementation of martial law in Aceh," he said.

The media, he said, had apparently left the public with the impression that war was the only realistic option to resolve the Aceh conflict.

"There is no room left to question the policy and its negative impact," Agus said, pointing out that most publications only quoted military officials in their reports on Aceh.

Agus was announcing the results of his team's quantitative analysis on 10 national publications -- Kompas, Republika, Media Indonesia, Pos Kota, Koran Tempo, Rakyat Merdeka, Indo Pos, Warta Kota, Harian Terbit and Suara Pembaruan -- and five television stations, Metro TV, SCTV, ANTV, TV7 and RCTI.

The team monitored news on Aceh from the media in three phases: prior to martial law from May 1 to May 19, the initial phase of operations from June 1 to June 19, and the final days of the first six-month operation, from Oct. 1 to Oct. 19.

Military analyst J. Kristiadi said that many issues could have been raised following the military operations.

"The issues are ongoing. For example, the media could ask about the cost of the operations and budgeting transparency or the effectiveness of the government's decision to engage in war," he said.

Meanwhile, the newly trained Raider Unit, a combat unit under the authority of the Indonesian Military (TNI), will be installed in Aceh early January next year, Brig. Gen. Safzen Nurdin, the deputy commander of the Aceh Military Operation Command (Koops), says.

The one-star general said that the combat unit was tasked to hunt down Free Aceh Movement (GAM) rebels and safeguard security in the area, prior to and after next year's general election.

The unit will join the existing 45,000 security personnel in the troubled province, who have been stationed there since the government launched a full-scale military offensive to crush the separatist movement in May this year.

The Raider Unit comprises of 10 battalions of raider combat troops, consisting of 8,000 personnel. They have undergone training since several months ago in various parts of Indonesia and are now ready to be deployed.

At least 14 people, including a military marine, have been killed in Indonesia's restive province of Aceh since Tuesday, the armed forces said on Thursday.

Six rebels and one marine were killed during a clash in the marshy area of Bireuen district on Wednesday, Aceh military spokesman Lt. Col. Ahmad Yani Basuki said, quoted as saying by AFP.

Sweden to send prosecutors to interview GAM figures

Antara - December 23, 2003

Jakarta -- Minister of Foreign Affairs Hassan Wirayuda said on Wednesday the Swedish government will send a team of prosecutors and police officers to Indonesia to interview a number of separatist Free Aceh Movement (GAM) figures.

"They haven't set the exact date," Wirayuda said after a meeting with President Megawati Soekarnoputri at the State Palace.

He said the Swedish prosecutors and police officers would visit Indonesia to follow up the Indonesian team's visit to Sweden recently.

Hassan said that if Sweden decided to arrest the leaders, including GAM founder Hassan di Tiro, they would be brought to justice there and not extradited to Indonesia.

Government reopens door for foreigners in Aceh

Jakarta Post - December 24, 2003

Muninggar Sri Saraswati, Jakarta -- The government has eased its restrictions against foreigners in Nanggroe Aceh Darussalam by allowing five international organizations to resume their humanitarian activities in the war-ravaged province.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono said on Tuesday that the selected groups were the United Nations Development Programme (UNDP), the World Food Programme (WFP), the United Nations Education, Social and Cultural Organization (UNESCO) and the United Nations Children's Fund (UNICEF).

Susilo emphasized that the new policy was part of "the government's intention to boost transparency and accountability" during the "integrated operations", which have been in place in Aceh for over seven months to quell three decades of armed rebellion. The government had also allowed the International Committee of the Red Cross (ICRC) to resume its operation in Aceh.

"We have given room to these five international organizations. We will consider allowing [other foreign institutions] to resume their operations in line with the improvement in security conditions in Aceh," he publicly announced after leading a security meeting at his office here.

The meeting was attended by, among others, Coordinating Minister for People's Welfare Jusuf Kalla, Minister of Foreign Affairs Hassan Wirayuda, Minister of National Education Abdul Malik Fajar, Indonesian Military (TNI) Commander Gen. Endriartono Sutarto, Attorney General M.A. Rachman and Commander of Military operations in Aceh Maj. Gen. Endang Suwarya.

Weeks after the May 19 martial law was declared, the government issued tough regulations to curb the presence of foreigners, including journalists and organizations in Aceh, virtually closing the province to independent scrutiny.

The restrictions came after two German tourists were shot by the military, one of them dead, two weeks after Jakarta imposed martial law.

Indonesia has come under persistent pressure from international rights groups for banning foreign observers from Aceh, which has turned the major offensive against rebels into a secret war.

UNICEF spokesperson here, Kendartanti, said the organization would continue their activities in Aceh, which had been postponed due to the restrictions. "We are focusing on education and health. We have provided tents for emergency schools, medicines and school equipment," she said.

When the government banned foreigners from Aceh, UNICEF foreign officers abandoned the conflict-torn province. However, the organization maintained its Indonesian representatives there.

The old policy allowed foreign aid workers to stay in the province for 14 days and a maximum extension of 30 days depending on the approval of the martial law administration.

Susilo said that the government had considered an improvement in the extended period of martial law in Aceh, but needed to "sharpen" it. He said the government would set up special teams to monitor the ongoing integrated operation in Aceh to ensure that it met its target, particularly on budget spending.

"Many students and NGOs there have complained about misuse of government funds," he said, saying that teams would be posted in the central government and in the provincial government.

The teams, to consist of government and independent persons, would have no authority but to advise either the government or the military administration on possible moves to tackle misuse of funds during the operations.

Susilo added that the government is also considering whether to allow international election monitors to work in Aceh for the upcoming elections, as required by the General Elections Commission (KPU).

"We have to be careful about which NGOs are allowed to monitor the elections in Aceh. We must be sure that they are there only to monitor the elections and not to do other things that provoke Acehnese to demand a referendum, which is considered a crime against the state," he warned.

Susilo claimed that the military administration in Aceh would not disrupt the free elections in the province, despite concerns from several observers. "The military is neutral, the military chief has repeatedly said that," he said.

Troops kill six Aceh rebels, arrest nine including women

Agence France Presse - December 23, 2003

Indonesian troops have killed six separatist rebels and captured nine including three young women in Aceh province, the military and police said.

Soldiers shot dead two members of the Free Aceh Movement (GAM) at Indrapuri in Aceh Besar district on Monday, said provincial military spokesman Ahmad Yani Basuki on Tuesday. Four others were killed in separate clashes in Pidie, Bireuen, Aceh Jaya and East Aceh the same day, he added.

Two suspected GAM members were captured during a raid in Bireuen district on Monday. Police said they arrested seven insurgents including three women in separate raids at Lam Asan in Aceh Besar late Sunday and early Monday.

The four men were held at a roadside coffee shop and the three female guerrillas were seized following information from the men.

The women, each aged 20, said they had undergone a three-month military course at a rebel camp in Pidie district and were tasked with recruiting new members in their home village. Eight rebels surrendered separately across Aceh on Monday, Basuki said.

He said a civilian who had been abducted by suspected rebels from his home at Muara Batu in North Aceh on Sunday was found dead the following day.

The military on May 19 imposed martial law and launched an intensive campaign to crush the guerrillas after a five-month ceasefire broke down.

It says more than 2,000 suspected rebels have been arrested or have surrendered and around 1,200 others have been shot dead since then. It says some 300 civilians have also been killed but blames this on GAM.

Troops kill 128 Aceh rebels in one month

Agence France Presse - December 23, 2003

Banda Aceh -- Indonesia's military said yesterday it had killed 128 Aceh separatist rebels in the month since martial law over the province was controversially extended.

The Free Aceh Movement (GAM) members were killed between November 20 and December 21, said provincial military spokesman Ahmad Yani Basuki.

Another 135 suspected rebels were captured in the same period while 52 surrendered. Basuki said 86 firearms of various types were confiscated.

In the latest killings three guerrillas were shot dead during a clash at Lamno in Aceh Jaya district on Friday, he said. A GAM rebel company head, a GAM "tax collector" and a rebel intelligence operative were captured the same day, he said.

The military on May 19 launched an intensive campaign to crush the guerrillas after the breakdown of a five month ceasefire.

It imposed martial law for six months and in November extended the status for another six months, despite pleas from rights groups for an end to the operation.

The military says more than 2,000 suspected rebels have been arrested or have surrendered and around 1,200 others have been shot dead since May. It says 300 civilians have also been killed but blames this on GAM.

Human Rights Watch, in a report last week, accused the military of pursuing a campaign of killings, kidnappings and beatings of civilians in Aceh. Jakarta says the report is baseless.

Five more people killed in Aceh

Agence France Presse - December 22, 2003

Banda Aceh -- Four suspected separatist guerrillas and one civilian became the latest casualties of fighting between rebels and government forces in the Indonesian province of Aceh, the military said yesterday.

Troops clashed with rebels in Pasi Raja, South Aceh, Friday and shot dead two rebels, Lieutenant Colonel Ahmad Yani Basuki said.

They also seized an automatic rifle, a two-way radio and a separatist Free Aceh Movement (GAM) flag from the dead rebels, the Aceh military spokesman said.

Troops shot dead another two rebels in two separate clashes in East Aceh and West Aceh district on the same day, he said.

Meanwhile, the head of Kebun Teupen village in East Aceh was shot dead in his home late on Friday by two suspected GAM rebels, Basuki said.

Troops also captured three men suspected of being GAM members yesterday while eight others surrendered, he said. One of the eight said he was the GAM governor of the Aceh Tamiang district.

GAM officials could not be immediately reached for comment.

The military on May 19 launched an intensive campaign to crush the guerrillas after the breakdown of a five-month ceasefire.

It says more than 2,000 suspected rebels have been arrested or have surrendered and more than 1,100 others have been shot dead since the start of the campaign.

West Papua

Protests delay relocation of inmates

Jakarta Post - December 23, 2003

Jayapura -- The relocation of 13 inmates -- convicted of involvement in the 2000 riot in Papua, in which at least 26 people were killed -- from their prison in Wamena town, to a prison in East Java has been delayed due to security reasons.

Papua justice and human rights office head Aronggear confirmed on Monday that the prisoners would not be moved until after Christmas. Should the 13 prisoners be relocated, the local people could protest, risking the destabilization of Papua, he added. "We will also give them a chance to celebrate Christmas with their families," Aronggear said.

He said several lawyers from the Jayapura Legal Aid Institute, the El-Sham human rights group and the Papua Presidium Council (PDP) had met with him earlier to question why the planned relocation was necessary.

Protests also came from the families of the prisoners and local Church leader Socrates Sofyan Yoman, who feared for the prisoner's safety if they were imprisoned outside Papua.

The 13 inmates were sentenced to between one and four years in prison for their roles in the October 6, 2000 incident that erupted following the forcible removal of the Kejora (morning star) flag by police and soldiers in Wamena, Jayawijaya regency. The riot turned into an ethnic conflict, in which indigenous Papuans attacked and killed migrants and destroyed their belongings.

Army 'cleared of killing American teachers in Papua'

Straits Times - December 24, 2003

Jakarta -- The Indonesian authorities said yesterday that the FBI had cleared the army of being involved in the killing of two Americans in Papua last year. However, the American Embassy declined to confirm the claim by military police chief A.B. Sulaiman.

The latter, quoted by Koran Tempo newspaper, said a visiting FBI team told him of its conclusions in a meeting last week. "The conclusion was the result of investigations by the FBI in the field and the ballistic tests on bullet casings found at the scene," he said.

Unidentified gunmen opened fire on a convoy carrying employees of the US-owned Freeport copper and gold mine in Timika district in August last year. Two US teachers and their Indonesian colleague were killed and 12 others were wounded.

The US Embassy indicated that the investigations were not over yet. "The team is working well and is looking forward to continuing cooperation with the Indonesian police," said spokesman Stanley Harsha.

According to police in Papua, a witness had linked Indonesian special forces soldiers to the killings. The military blamed separatist rebels.

FBI agents made their first visit to Papua in January but expressed concern that they were not given full access to witnesses or evidence. They paid another visit early this month.

The US administration, which suspended military ties in 1999 over the bloodshed in the former East Timor, has been seeking closer defence ties with Indonesia as part of its war on terror.

But it says it cannot resume most of the links without a full accounting for military abuses and an inquiry into the Timika killings. In an earlier report, Papua Police Chief Inspector General Timbul Silaen was quoted by the Jakarta Post as saying that the FBI had questioned a number of people but "none of those witnesses were military".

Guterres says Papuan force ready to fight

Melbourne Age - December 22 , 2003

Matthew Moore, Jakarta -- The former leader of the most notorious of East Timor's militias, Eurico Guterres, claims he now heads an organisation with 18,000 members and funds to fight separatists in Indonesia's Papua province.

Mr Guterres brushed aside Papuan and human rights criticisms of his plan to open an office of the Red and White Defenders Front (FPMP) in Timika in Papua (formerly Irian Jaya). He said his new group was registered with the Indonesian Government and had the right to open offices wherever it chose. He said Papuans had requested he open a branch of the FPMP to fight separatists, although a Timika-based member of the Papuan Presidium Council, Tom Beanal, said the Guterres plan was driven by people in Jakarta who wanted to cause instability in Papua.

"Guterres should actually realise that he is not superman, he was a human rights abuser in East Timor. If he comes to Papua, he will create unrest," he said. "My view is Jakarta always tries to move unrest from one location to another." Free on appeal against a 10-year jail sentence for human rights crimes in East Timor, Mr Guterres looked prosperous when he met The Age. He said he made a good living working as a debt collector and settling land disputes.

He denied his new organisation received money or assistance from the Indonesian military as did his Aitarak militia in East Timor, which was at the centre of many of the attacks on East Timorese who supported independence in 1999. "That's really not true, we are an independent organisation," he said. But he refused to say where FPMP got the money for the 28 branches he said had been established or for shirts designed like the Indonesian flag that he said were given to members.

Mr Guterres has asked his brother-in-law, Kahar Rasyid, to set up the organisation's Timika branch. He said he was keen to meet Mr Beanal to find out where he stood on Papua's future. "I want to see Tom Beanal, I want to know his position. If he wants Papua to separate, he's my enemy. If he says no, we can sit down together." Mr Guterres said no matter what Mr Beanal said, his men would not take up arms to fight supporters of separatism but would try a different approach to the violence they wreaked in Timor. Despite his long history of dealings with senior Indonesian military members, Mr Guterres said that was all in the past.

Democratic struggle

200 Acehnese and Papuans demonstrate in Yogyakarta

Detik.com - December 10, 2003

Bagus Kurniawan, Yogyakarta -- As well as Jakarta, lively actions to commemorate world human rights day were also held in other parts of the country.

Around 200 West Papuans and Acehnese held an action at the state palace in Yogyakarta, Central Java. The action which was joined by demonstrators from People's Solidarity for Papua and Aceh (Solidaritas Rakyat untuk Papua dan Aceh, SRuPA) began at 10.30am. The demonstrators gathered at the intersection of the Yogyakarta Monument then held a long-march through Jalan Mangkubumi and Jalan Malioboro towards the state palace.

As with most actions, the demonstrated unfuled a number of banners and held speeches. The banners read "Stop War Aceh or Papua","We Love Piis (Peace)" and "End the Spilling of Blood on the Soil of Aceh and Papua".

Meanwhile, the coordinator of the action, Teuku Kemal Fasya, said that the action aimed to pressure the government to end the violence in Aceh and West Papua. "We call for an immediate end to the miltiary operation in Aceh.

The government must immediately try the perpertrators of human rights, both civilians and military", said Fasya.

[Translated by Katarina Puji Astuti.]

Thousands demand investigation of human rights cases

Detik.com - December 10, 2003

Suwarjono, Jakarta - Around 1000 demonstrators held a demonstration commemorating world human rights day at the Presidential Palace on Jalan Merdeka Utara on Wednesday December 10. Although the palace was empty -- President Megawati Sukarnoputri is currently visiting Japan -- it did not diminish the spirit of the human rights activists.

During their action the demonstrators called for the government to resolve cases of past human rights violations and bring [the perpetrators] before a human rights court. They demanded that the humanitarian tragedy during the period of the New Order [regime of former President Suharto] and up until now be fully investigated.

The cases which they demanded be investigated included the Tanjung Priok tragedy(1), the Lampung tragedy(2), cases which occurred when Aceh was declared a military operations zone(3), the abduction of activists(4), the Trisakti and the Semanggi I and II cases(5) and human rights violations in Aceh during the military emergency(6).

The demonstrators who came from a number of different groups including the National Human Rights Commission, the Commission on Missing Persons and Victims of Violence (Kontras), the Association of Families of Missing Persons in Indonesia (Ikohi), the Trisakti Student Executive Council, the Tambang Network, the Bung Karno University, the National Student League for Democracy (LMND), National Institute of Science and Technology and the Jayabaya University, began their action at the Hotel Indonesia roundabout. They then moved off to Bank Indonesia to protest a meeting of the Consultative Groups on Indonesia (IGC), then the offices of the coordinating minister for politics and security and finally to the Presidential Palace.

During the action the demonstrators took up various issued including rejecting donor institutions such as the International Monetary Fund, the CGI, World Band, the Asia Development Bank and developed countries. This was because they consider them to be a new model of colonialism which must be opposed and that the debts owed to them have burdened the ordinary people.

As well as being joined by activists, the action was also joined by fisherpeople from a number of locations including Bogor, Karawang and Banten. The action began at around 2.45pm and was still continuing as of going to print. (gtp)

Notes:

1. Tanjung Priok - On 12 September 1984, dozens of people were killed and injured when troops fired on Muslim demonstrators in the port district of Tanjung Priok, North Jakarta.

2. Lampung: On February 7, 1989, as many as 100 people were killed when troops surrounded a village in Lampung, South Sumatra, opened fire and set fire to homes. The government claimed the villagers were members of a "deviant" Muslim sect and that troops were "defending themselves".

3. Daerah Operasi Militer/Military Operations Zone: From 1989 to 1998, Aceh was designated a special military operations area (DOM). During this period thousands of people, mostly civilians, died as a result of clashes, torture and acts of vengeance.

4. Abduction of activists: Between 1997 and 1998 as many as fourteen pro-democracy activists were abducted by members of the elite special forces Kopassus. After extended periods of detention- in many cases the victims were severely tortured- most were released although four remain missing and are presumed dead. Former Kopassus chief Lieutenant General Prabowo Subianto who was at the time President Suharto's son-in-law is alleged to have ordered the abductions. In April 1999, 11 low-ranking Kopassus officers were tried by a military court for the kidnappings and given sentences of between a year and 22 months in prison, although six of them were allowed to remain in the army.

5. Trisakti/Semanggi: In May 1998, security personnel shot into a crowd of student protesters from the Trisakti University near their campus in West Jakarta, killing four students and injuring several. This proved to be the spark which set-off three days of mass demonstrations and rioting in Jakarta which eventually lead to the overthrow of former President Suharto. The Semanggi I and II cases involved the fatal shooting of dozens of student demonstrators in Jakarta in November 1998 and September 1999 respectively.

6. Following the breakdown of peace negotiations between the Free Aceh Movement (GAM) and the Indonesian government, on May 19, 2003, President Megawati Sukarnoputri declared Aceh to be under a state of military emergency (marshal law) for six months. The government immediately launched what it euphemistically referred to asan"integrated" operation to restore security (read destroy GAM), law enforcement, the functioning of government and a "humanitarian" operation. In November the operation was extended by a further six months. During this period hundreds of civilians have been killed, wounded and disappeared, hundreds of schools burnt down and thousands forced to evacuate their homes.

[Translated by James Balowski.]

Demonstrators commemorate world human rights day

Kompas - December 11, 2003

Jakarta -- On Wednesday December 10, hundreds of students, youths and non-government organisation activists, victims of land evictions and farmers came out into the streets to commemorate world human rights day. They condemned the lack of commitment by the government and the political elite in dealing with cases of human rights violations in Indonesia and demanded that the generals who have violated human rights be brought before the Ad Hoc Human Rights Court.

The action -- which was held in conjunction with an anti- imperialist and anti-neoliberal action -- was held to coincide with a meeting of the Consultative Group on Indonesia (CGI). Similar actions occurred in a other parts of the country such as Semarang, Palembang and Samarinda.

In Jakarta, two students from the Mercu Buana University, Eko and Nurhadi, were arrested by police in front of the Presidential Palace. They were arrested because they were alleged to have held an action without informing the authorised body [police] about the plan.

A number of NGOs who are active in human rights advocacy such as the Commission for Missing Persons and Victims of Violence (Kontras), the Association of Families of Missing Persons in Indonesia (Ikohi), Indonesian Human Rights Watch (Imparsial) and the Jakarta Legal Aid Foundation (LBH) participated in the action.

Student elements such as those from the Trisakti University, the Jayabaya University and the Mercu Buana University as well as non-campus based groups such as the Indonesian Youth Front for Struggle (FPPI) and City Front also joined yesterday's action.

This year actions were held at various points simultaneously, in the area of Semanggi, at the Hotel Indonesia roundabout, the United Nations building, the national parliament building, the Bank Indonesia building and the Presidential Palace.

In its statement, FPPI demanded that ex-President Suharto be tried for his economic, political and human rights crimes during the period he was in power. FPPI also demanded an end to land evictions and the use of the military to resolve conflicts. The Anti-Imperialist and Violations of Human Rights Front demanded an end to the military operations in Aceh, West Papua and Maluku islands.

In particular they also condemned the land evictions by the Jakarta provincial government which they considered to be a violation against the economic and social rights of the people.

Kontras coordinator, Usman Hamid, told journalists that the commemoration of human rights day was held as a call to the state to investigate past human rights violations. According Usman, society views the old political parties and even the new ones which participated in the 1999 elections as having being proven not to have a commitment to investigate cases of human rights violations.

If in the 2004 elections there are no political parties which have an agenda to investigate human rights cases, there is no political party therefore which is suitable to be elected. "If truly there is not political party which is suitable, the people not only have the right to vote, but also have the right not tosman emphatically.

Struggling for themselves

LBH Jakarta, which held the human rights day commemoration together with a number of victims of human rights violations, stated that because the government cannot be expected to struggle for human rights, the people should be called on to struggle for their rights which have been violated.

"If social groups are not capable of struggling for their own rights, then there are a number of non-government organisations, such as the Jakarta Legal Aid Foundation which are ready to assist this process of struggle", said LBH Jakarta director Uli Parulian Sihombing.

During the commemoration the Jakarta Human Rights Charter was read out which was drafted by a number of trade unions, pro- democracy groups, women's and human rights activists, ex- political prisoners and victims of land evictions. Within the charter it referred to all victims of human rights violations has having the right to have their cases resolved fairly though an open and transparent legal process and to obtain fair compensation and the rehabilitation of their good name.

According to Uli, the theme of this year's human rights day was the respect for the right to a place to live. This theme he said, was extremely appropriated given the conditions in Jakarta at the moment where there have been numerous land evictions in a number of places.

During the commemoration, the LBH Jakarta Commendation was awarded to the people East Ancol Fisherpeople Society who have struggled for their settlement from which they were evicted in 2001. This commendation was given to them because they were viewed as having consistently struggled for the right to a place to live though legal channels without the use of violence.

On the same day, the Indonesian Legal Aid Foundation (YLBHI) held a press conference and stated that the state had failed to block the power of the New Order [regime of former President Suharto] which was behind a number of gross human rights violations.

"One of the important elements in evaluating the protection of human rights is though viewing the process of the restructuring the political order. This has not yet been done by the present government", said YLBHI chairperson Munarman.

Actions and speeches

In Samarinda, East Kalimantan, a commemoration of human rights day was organised by a number of social elements with a demonstration and long-march in a number of streets in the city. The action ended at the offices of the East Kalimantan governor.

Prior to this, they held an action at the offices of the Samarinda State Prosecutor. The falling rain did not prevent scores of activist from the Islamic Students Association (HMI), the National Student League for Democracy (LMND), the Mulawarman University Student Executive Council and Pokja 30 from joining together under the banner of the East Kalimantan People's Movement for Human Rights from continuing their action.

In her speech, Brigitta Edna from the Forum on Violence Against Women emphasised the minimal attention the government has given to the issue of violence against women.

In Palembang, South Sumatra, a number of NGOs from the People's Committee for Human Rights held a rally from the Monument of the People's Struggle to the offices of the South Sumatra governor.

"In Palembang there have been at least seven cases of beatings and threats against demonstrators by police and unidentified groups which have been ignored by the police", the internal director of LBH Palembang Anggiat stressed.

In Semarang, the commemoration of human rights day was held by scores of activists from the Poor People's Front for Struggle (FPRM) with a demonstration at thecity's Waterfall Roundabout on Jalan Pahlawan. (WIS/WIN/DOT/RAY/K09/WHO)

[Translated by James Balowski.]

Labour issues

Slavery continues to plague migrant workers

Jakarta Post - December 26, 2003

Ridwan Max Sijabat, Jakarta -- How tragic and terrible has been the violence against a great number of Indonesian women employed overseas this year! Not only were they harassed, physically abused or even raped but were also sent home without proper payment or traded from one employer to another.

Many women workers who had just arrived home from Saudi Arabia, Kuwait, Malaysia and Singapore said how they were insulted and beaten if they made mistakes in performing their daily tasks, how they had to work overtime without extra pay, how they were sexually harassed or raped by their male employers or their relatives and how they were physically attacked by their female employers after they had been forced to have sex with their male employers.

Behind "the success story" of most migrant workers, many have to endure brutality and undergo a form of slavery to gain 600 riyal per month in Saudi Arabia, or 300 ringgit in Malaysia.

The Association of Indonesian Migrant Workers (Kopbumi) in Jakarta recorded 76 workers who died or were killed during their employment between January and September 2003, while the Pancakarsa Foundation, a non-governmental organization handling troubled migrant workers in West Nusa Tenggara, put the figure at 135. Both also made an inventory and provided legal advocacy for hundreds of other workers who were physically abused, raped or not paid during their employment.

The figures are relatively small when compared with the total 1.5 million Indonesians employed overseas, but from a human rights and multilateral perspective, the physical abuse and rapes were really serious crimes that merit being brought before the International Court of Justice.

The increase in physical abuse and rape has, in addition, both affected Indonesia's bargaining power in the labor market and tarnished its image abroad.

Foreign countries where Indonesian workers are employed have ignored the increasing protests at abuses of workers, saying that the cases would not affect their bilateral ties with Indonesia. The Saudi Arabian government has turned a blind eye to the increasing abuse of Indonesian workers in that country and, instead, placed stronger emphasis on the bilateral ties between two predominantly Muslim countries. Malaysia, which has been flooded with illegal workers from Indonesia, has been reluctant to sign the three proposed memorandums of understanding to provide protection for Indonesian workers. The Malaysian government's reluctance, it seems, has something to do with the fact that despite harsher immigration legislation, Indonesians will continue to enter Malaysia because of the explosion in unemployment within Indonesia.

Despite frequent violations, Hong Kong and Singapore are the only two countries to have implemented regulations on employment of foreign workers in the informal sector. Other countries employing Indonesian workers in this sector are the United Arab Emirates, Qatar, Jordan, Oman and Egypt.

But, of course, it looks unfair to blame foreign countries for the grievances of Indonesian migrant workers, as the workers are often mistreated before their departure overseas and again upon their arrival home.

Many workers have had to sell assets or have borrowed money at high interest from loan sharks to finance their trip overseas, as well as their recruitment and training fees and passport, via labor agencies. Many workers are fleeced when applying for immigration documents and have been subject to inhumane treatment when undergoing training, while others are trafficked to Batam and Tanjungpinang in Riau and employed as sex workers before being sent to the Malaysian peninsula.

Unlike Philippine migrant workers who are given red-carpet treatment upon their arrival home, Indonesian workers are trapped by a transportation syndicate at Terminal 3 at Soekarno-Hatta International Airport at the end of their Saudi, Malaysian or Garuda flights. Workers have been known to pay Rp 250,000 for a one-way trip to Cianjur, West Java, and Rp 1.5 million to West Nusa Tenggara. Others are forced to change their riyal, ringgit, or Malaysian dollars into Indonesian rupiah by bus drivers at artificially low conversion rates, with those refusing to change their foreign currency being abandoned on their way home.

Who should be blamed for the rampant extortion, abuse and rape of migrant workers? Many blame the government for failing to deal with abuse of workers properly, while others blame the workers themselves, as they are unable to deal with problems of their own making while traveling overseas and during their employment.

Minister of Manpower and Transmigration Jacob Nuwa Wea has blamed labor export agencies, foreign diplomats, the police, immigration officers, transportation companies and regional administrations, which, he said, frequently imposed illegal charges on migrant workers.

"Not only the manpower ministry but many other government departments and agencies are involved in exporting workers," he said, adding that he could not even take action against local manpower and transmigration officers who abused the powers they had under regional autonomy with regard to migrant workers.

The minister has revoked scores of licenses of labor export companies found over the last four months to have violated Ministerial Decree No. 144A/2000 on labor exports.

He said that although procedures for migrant workers had been tightened, many workers would continue to enter foreign countries illegally because of scarce job opportunities at home and higher wage levels overseas.

According to data at the manpower ministry, unemployment has reached more than 40 million.

Foreign diplomats have said they cannot focus on monitoring migrant workers because that is just a small element of their daily task in carrying out their diplomatic mission overseas.

In trying to create good governance, ministers and government agencies can no longer blame one another for the government's failure to regulate and manage the migrant worker issue because that does not address the problem. Relevant authorities should cooperate better to provide improved services and incentives to workers in running the migrant worker program.

In its function as regulator, the government should produce legislation instead of a ministerial decree, to regulate the sending of workers overseas and provide legal protection for migrant workers, as has been demanded by activists, so that all relevant authorities and concerned parties can be asked to show their commitment to strong law enforcement. "It is bizarre to demand that foreign countries treat our workers humanely while we fail to do it first ourselves," social commentator Halomoan Hutapea said recently.

According to Halomoan, the most basic and important thing the government must do is to make sure that all workers sent abroad can at least speak English so that they can communicate with people should problems develop, either on their way overseas or during their employment.

"Second, workers must be skilled in doing their jobs, even though they may be employed as domestic helpers, baby sitters or shop attendants overseas," he said, adding that most instances of labor abuse occurred because the workers involved were unskilled.

He added that most Indonesian workers employed in the informal sector were elementary school graduates or dropouts, and most were sent overseas without undergoing proper training beforehand.

Discrimination in workplace must be ended

Jakarta Post - December 24, 2003

Samarinda -- Dozens of disabled persons in East Kalimantan staged a protest on Tuesday, demanding the government to end discrimination against them in the work place.

During the protest, which coincided with the Disabled Persons International Day, they also demanded the local government to implement central government regulations to punish the companies that barred them from entering private and government-owned firms.

In the protest, held in front of East Kalimantan's Social Affairs agency office, the protesters lashed out at the local government for failing to implement regulations, which specifically ruled that the companies must not discriminate against disabled persons. They also demanded a specific bylaw, wherein the local government would have to ensure employment for disabled persons.

They said that they "are given attention by the government, only when there is a social project in the Social Office." Meanwhile, Syafrudin, the deputy chairman of East Kalimantan Social Affairs agency, said that the local government could not produce a bylaw that ensured employment for disabled persons.

"The issues have been adequately covered by the central government regulations," he said. There are approximately 1,000 disabled persons in registered in East Kalimantan.

Rural issues

Farmers take swipe at sugar producers

Jakarta Post - December 27, 2003

Eva C. Komandjaja, Jakarta -- Growers have blamed the high cost of locally-produced sugar on the old and inefficient manufacturing facilities of producers, and accused them of deliberately organizing damaging and misleading campaigns designed to put the blame on growers in order to obtain profitable import licenses.

Indonesian Association of Sugarcane Growers (APTRI) chairman Arum Sabil told The Jakarta Post on Friday that the sugar producers, which are mostly state-owned plantations, had deliberately manipulated the results of the tests on sugarcane produced by growers to blame the growers, rather than themselves, for being primarily responsible for the high cost of local sugar.

"Tests by our producers always show that the sugarcane produced by the growers has a low sucrose content of 6 percent. However, laboratory tests outside the country show a higher sucrose content of between 9 and 10 percent," he said.

State plantation firms PT Perkebunan Nusantara IX, X and XI and PT Rajawali Nusantara Indonesia (RNI), the country's main sugar manufacturers, said in a recent hearing with the House of Representatives that the decline in the country's sugar production was due to the low productivity of the growers. These firms are among the few allowed by the government to import sugar.

From being the world's second largest sugar producer in the Dutch colonial era, Indonesia has move backwards to become the world's second largest sugar importer after Russia. Last year, Indonesia produced 1.8 million tons of sugar, while demand reached 3.2 million tons. Arum said that by blaming farmers for being unable to produce enough sugar to meet local demand, local producers were seeking to justify their claims that Indonesia needed to import sugar.

As a matter of fact, Arum said, the producers preferred importing sugar to refining it as the first option was cheaper, thus generating higher profits for them. They needed to pay between Rp 2,000 (24 US cents) and Rp 2,800 for a kilogram of imported sugar, while they had to spend at least Rp 3,410 to produce a kilogram of sugar.

The main reason for the high cost of local sugar was the machinery owned by local producers, which Arum said was mostly old and inefficient.

"Rather than replanting sugarcane plantations, the government needs to revitalize the sugar factories by replacing old and manually-operated equipment and letting inefficient human resources go," said Arum.

He was referring to the government's plan to replant sugarcane plantations in Java, which was announced by Minister of Agriculture Bungaran Saragih in September this year.

The government has allocated Rp 68 billion for the program, which is designed to ensure sugar self-sufficiency for Indonesia by 2007.

However, Arum said that the plan was doomed to fail given the numerous irregularities that had been detected in the disbursement of the funds.

He claimed that some of the money was being dished out to people who were not sugarcane growers.

"We have found many cases in Central Java, West Java and East Java where the funds were disbursed to people who are not growers, but are connected to state-owned plantations or plantation agencies," he said.

Rather than receiving money to replant their fields, the country's growers needed protection from the government against cheap imported sugar, especially from Thailand, according to Arum.

"Local growers can still buy sugarcane seeds on their own. What they need is protection against the influx of imported sugar because other countries do the same thing," he said. For example, he said, Thailand protected its sugarcane growers by applying high tariffs on imported sugar to stabilize local sugar prices, providing them with soft loans and strictly enforcing the law on sugar smuggling.

"The biggest problem comes from smuggled sugar. It badly hurts our sugarcane growers as it is sold as cheaply as Rp 1,200 per kilogram because no import duties and taxes are applied to the commodity," he said.

He said most of the illegal sugar came from Malaysia, India and Thailand, where sugar production costs could be half of the production cost in Indonesia due to hefty subsidies provided by those countries' governments for agriculture producers.

Neo-liberal globalisation

Tribespeople marginalized by water bill: Experts

Jakarta Post - December 23, 2003

Muninggar Sri Saraswati, Jakarta -- The bill on water resources, which has been widely criticized for regarding water as a commodity, does not guarantee the rights of ethnic minority groups and poor people to access to clean and affordable water, experts say.

Agus Maryono, a lecturer at the school of technology of Yogyakarta-based Gadjah Mada University, raised his concerns on Monday over the issue during a discussion.

"The bill has failed to guarantee the rights of indigenous tribes for access to water. As minority groups, they will suffer the most if the bill is endorsed," he said.

The bill on water resources recognizes the existence of ethnic minority groups, but articles in the bill fail to protect them, said Agus, pointing to Paragraphs 2 and 3 of Article 6.

Paragraph 2 stipulates that the central government and local administration must consider the ancestral rights of indigenous tribes in exploiting water resources, as long as the consideration of tribal interests does not contradict national interest or the law.

However, Paragraph 3 states that the government and local administration need only consider those ancestral rights that were recorded in local regulations.

"The articles are awkward. I am afraid there will be problems in its implementation ... Most indigenous tribes have yet to register with local administrations," Agus said.

There are some 300 officially recognized indigenous tribes, which comprise some 12 million of the nation's population. The figure does not reflect the total number of indigenous tribes in Indonesia, because some tribes live in forests or other remote areas and do not have direct contact with the modern world.

Fellow lecturer Budi Wignyosukarto concurred with Agus, saying that the bill had sidelined the rights of indigenous tribes.

"This is not fair. Some of them have managed their water resources for hundreds of years, but they would not be able to do this if investors exploit their springs," he said.

Desiana V. of Mercubuana University criticized the bill for failing to cover wells, which has been considered groundwater.

She pointed out that the wells of some poor Jakartans had dried out because their wealthy neighbors dug wells hundreds of meters deep, thus diverting all the water from the underground source.

"There should be regulations over the issue, particularly on how deep people can dig their wells," she said.

The experts also said these issues all stemmed from the bill's basic assumption that water was an economic commodity, rather than social commodity.

"This is the root of the problem. They consider water as an economic commodity instead of a fixed asset," Budi stressed, urging the revision of the bill.

Soegijapranata Catholic University economist Wiyanto Hadipuro said he strongly opposed the bill, as it opened the door for authorities to apply a market-based mechanism to water.

"There should be limitations and requirements for water investment," he said.

Gatot Irianto, water specialist at the Bogor Institute of Agriculture, said the bill would only provide greater benefits to the private sector and not the public, let alone indigenous people.

"The investors know that water will be scarce in the future. They might have land with springs today, but they don't touch it until water becomes scarce and then, they step in," he said.

Gatot expressed his fears of a possible monopoly of water resources by the private sector. "This is likely to happen, but do people know about it?"

Earlier in the day, legislator M. Rosyid Hidayat of the Reform Faction said the bill might still be revised because the House of Representatives Commission IV on infrastructure and telecommunications affairs had postponed the deliberation until January. The Commission believed that the bill needed to be promoted more among government institutions and the people.

However, legislators from the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction said the delay would not change the bill.

The bill has caused much controversy, not only among the public but also among government ministries, mainly because it considers water as an economic, not a social, commodity.

The government has admitted that the bill's endorsement was connected to the last disbursement of a US$300 million loan under the 1999 World Bank-sponsored Water Resources Sector Adjustment Loan (Watsal).

'War on terrorism'

Nation marks Xmas in peace

Jakarta Post - December 26, 2003

Jakarta -- Christmas celebrations across the country proceeded peacefully on Wednesday and Thursday amid the heightened presence of police.

Security conditions in Poso, Central Sulawesi, and Ambon, Maluku -- two areas plagued by sectarian conflicts between Christians and Muslims over the past five years -- were calm, and Christians in those areas marked the Lord Jesus' birth freely.

In Tentena, Poso, where dozens of innocent people were killed in renewed violence in mid-October, Christians thronged to heavily guarded churches on Wednesday evening and Thursday morning for Christmas Mass.

A low explosive went off in Poso on Tuesday, but no casualties were reported and the situation remained calm.

Local authorities also increased police personnel at each security post from 10 to 15, especially in coastal areas where Christians live alongside their Muslim neighbors.

Over 2,000 innocent people have died since 2000, when Poso plunged into bloody religious conflicts. In Ambon, Maluku, where over 5,000 people have died since the first sectarian conflict broke out in January 1999, the situation was also peaceful, with no reports of renewed conflicts.

Christmas in Jakarta also passed without incident, with churches filled to bursting on Christmas Eve and Christmas Day.

Addressing some 3,000 Catholics at Jakarta Cathedral, Cardinal Darmaatmadja called on all Christians on Thursday to stand united and develop a culture of unconditional love for each other and a sense of solidarity.

"The principal creed of Christianity is love, and it is mankind's duty to bring love to every occasion, be it happiness or sorrow," said Darmaatmadja, who is also chairman of the Bishops Council of Indonesia (KWI).

He said many people nowadays used their abundant blessings and prominent ability to frustrate, instead of helping, others. "Everything in this world is God's, and it's given to all of us. This is what we often forget, that we keep many things for ourselves without sharing.

"We're living in a sick nation today, where we view people according to returns and benefits. We lack a true love, so that we are suspicious when people do good things for us, wondering if there are any strings attached," he said. Cardinal Darmaatmadja also said paying more attention to the poor and destitute was noteworthy.

"They're the ones who usually cannot pay back whatever is given to them. It shows an unconditional love that asks for nothing in return," he said.

"We'll fall apart if we put our individual interests first; but if we fight for our collective interest, we'll also receive individual benefits, although probably on a much smaller scale." Christians in Medan, North Sumatra, also had a safe Christmas, with church services and mass proceeding undisturbed.

Some congregation members, however, said they were worried about possible terrorist attacks similar to the 2000 Christmas Eve bombings.

A police officer in charge of guarding a church on Jl. Sudirman concurred: "The majority of congregation members are still worried about possible bomb explosions like the 2000 bombings, so we have to tighten security."

Bomb explosions rocked dozens of churches across the country on Christmas Eve 2000, killing dozens of innocent lives. Police blamed the coordinated attacks on regional terrorist network Jamaah Islamiyah (JI), the same group believed to be behind the October 12, 2002 Bali bombings and the August 5, 2003 JW Marriott Hotel attack. Over 200 people were killed in the two incidents combined.

Around 1,600 security personnel ensured a peaceful Christmas in Makassar, South Sulawesi, guarding churches and public facilities.

In Semarang, Central Sulawesi, police tightened security at 161 churches, closely monitoring all who came.

Earlier, National Police deputy chief of public relations Brig. Gen. Soenarko said police would tighten security in churches nationwide -- with a special focus on conflict areas -- from Christmas until after the new year by deploying of two-thirds of the national force, backed up by the Indonesian Military (TNI).

Thousands of police on alert as churches gear up for Christmas

Agence France Presse - December 24, 2003

Thousands of Indonesian police went on alert as Christians in the world's largest Muslim-populated nation prepared to celebrate Christmas under the shadow of a continuing terror threat.

Almost 166,000 officers, or two-thirds of the entire force, will be deployed nationwide to safeguard the Christmas and New Year festivities -- more than 22,000 of them in the capital alone.

Already this Christmas Eve, a bomb exploded in the religiously divided Poso district in Central Sulawesi.

A passenger spotted the bomb under a bus seat in the town of Poso in Central Sulawesi. The driver moved it to a field at Lembomawo village on the town's outskirts but it exploded on Tuesday before a police bomb squad arrived.

A policeman on duty in the town said there were no injuries and a nearby office building suffered only slight damage. "The bomb was aimed at provoking a riot in Poso," local police chief Abdi Dharma was quoted by the Jakarta Post as saying.

Jakarta police and the US embassy have warned of a high risk of seasonal terror attacks from the al Qaeda-linked Jemaah Islamiyah (JI). Several top JI operatives are still on the run and believed to be planning further attacks. On Christmas Eve three years ago JI launched coordinated bomb attacks on churches and priests nationwide, killing 19 people.

In a series of attacks since then, the network's targets have included more churches; two Bali nightclubs in October 2002 with the loss of 202 lives; and a Jakarta hotel where 12 people were killed in August.

"We cannot ignore the warnings or rumours and it is, anyway, always better to anticipate problems," said Thomas Bambang Mukamto, who is in charge of security for Christmas services at the 19th-century Jakarta Cathedral.

"This will be the third year and we are improving some aspects of the security here," Mukamto said, speaking in front of two metal detector portals and pointing to the single entrance gate and single exit gate.

A bomb exploded outside the cathedral on Christmas Eve 2000.

Around 200 church staff and volunteers will provide security inside the cathedral grounds. Jakarta police have promised 200 men to secure the surrounding area. Volunteers will be deployed every five meters inside to watch for any suspicious behaviour among worshippers.

At the Emanuel Protestant Church some 500 meters away, the message around midday still appeared to be "peace on earth." A lone guard was the only security measure at the domed 167 year- old church, which was festively garlanded for Christmas.

"For me and my congregation, we all trust in Him. Why should we be worried or even afraid?" said the Reverend T.H. Siahaan, in his spartan office. However he said police would be posted at the front gate and outside and would "sterilize" the church and its surroundings just two hours before services were due to begin.

At the Canisius Roman Catholic church, only cars with stickers will be allowed to park inside the compound. Worshippers will be checked with metal detectors.

Jakarta police chief, Inspector General Makbul Padmanegara, personally inspected security at the cathedral.

"Based on intelligence information that we have received, the prominent issue that needs to be addressed is bombings," he said last week, pledging to station officers at 243 churches across Jakarta and its suburbs.

An estimated 87 percent of the country 212 million people are Muslim and just under 10 percent are Christians. But Islam is not the official religion and the country has a history of religious tolerance, despite outbreaks of sectarian bloodshed in recent years.

According to press reports, Muslim youth organisations in various towns in East Java and at Medan in North Sumatra have offered to help guard churches in their areas.

Indonesian churches and cops beef up security

Straits Times - December 23, 2003

Robert Go, Jakarta -- Around 150,000 police officers, about two- thirds of the total force, will be deployed in Indonesia to thwart possible terrorist strikes against churches during the Christmas season.

At the same time, Christian communities from around the country are stepping up their own vigilance following warnings of possible attacks by Al-Qaeda and its Muslim militant associates during the year-end festive season.

Indonesia's top policeman, General Da'i Bachtiar, said Operation Candle would "focus on anticipating all kinds of threats to security". Bomb squads would be placed on "especially high alert", said senior police officials.

Generally, police would be patrolling and manning posts outside churches, shopping centres and other strategic locations during the festive season.

In hotspots such as Palu in Central Sulawesi, where sectarian conflicts have taken place recently, a joint force made up of police and soldiers will secure Christmas services.

But churches and Christian communities are taking their own initiatives in preparing for the coming holidays.

Some, like Jakarta's 184-year-old All Saints Anglican Church, the oldest foreign- denomination congregation in the capital, say parking will not be allowed near its compound. Worshippers are told to attend services "only if they are feeling comfortable".

Vicar Andrew Lake of All Saints said: "From our perspective, we have had to deal with security issues since 1998. We are a community with a fairly high degree of anxiety and have had to live at a high level of vigilance." There will be bag checks at the door and the police, he said, had been "very cooperative".

Other Christian communities are going further. In the East Java capital of Surabaya, for instance, the Bethany Church will work together with youth wings of Muslim organisations to help boost arrangements already made by the police.

A senior member of that congregation said that Nahdlatul Ulama, the country's largest Muslim organisation, has agreed to assign members of its youth wing to help secure "worship sessions".

As many as 10,000 people are expected to attend Bethany's big Mass on Christmas Day, and the source said cooperation with Muslim groups is a key part of security.

He said: "It's not that we think the police won't do a good job. The idea is to engage with local groups, including Muslim ones, to project that security during this period is a common concern, not just one for the authorities or for Christians."

There is a high degree of wariness in Indonesia about the potential for attacks in the next few weeks. People remember the carnage of the Christmas 2000 bombings, which killed 19 in various parts of the country.

The United States Embassy also warned earlier this month of "particularly high" potential for attacks and the "increased volatility" during the holiday season.

Court jails Makassar bomb suspect for 18 years

Agence France Presse - December 22, 2003

An Indonesian court imposed an 18-year jail sentence on a man who supplied Islamic militants with the explosives used in a McDonald's restaurant bombing.

Arman, alias Galaxi, was found guilty on Monday of assisting the bombing at Makassar in South Sulawesi on December 5, 2002 and of illegal possession of firearms.

The Makassar district court found that Arman had brought the explosives from the restive Poso district in neighbouring Central Sulawesi and had helped to survey prospective targets, prosecutor Arifin Hamid told AFP by phone.

Prosecutors had recommended a 20-year jail sentence for Arman. Arman is appealing the verdict and sentence, the heaviest so far in a series of Makassar bombing trials.

Three people including the attacker were killed in the Makassar bombing of the McDonald's. Another blast damaged a car showroom shortly afterwards but caused no casualties. Several men have been jailed for their role but key suspect Agung Abdul Hamid is still at large.

Police have said some suspects in the Makassar bombings knew those behind the Bali blasts on October 12 last year which killed 202 people. Investigators have blamed the Bali attack on Jemaah Islamiyah, an al Qaeda-linked regional terror network.

Government & politics

No progress in the performance of state institutions

Kompas - December 23, 2003

Jakarta - There has been almost no meaningful progress in the functioning or political performance of the executive, legislative and judicial institutions in 2003, either at the national or local level. The tendency of politicians and officials to institutionalise vested private and group interests is more evident compared to a commitment to create a political system which is fair and democratic and maintaining clean government.

[This was the conclusion drawn by] Indonesian Institute of Sciences (LIPI) researcher Ikrar Nusa Bhakti in a seminar titled "2003 End of Year Reflections" held by LIPI's Department of Social and Humanitarian Sciences in Jakarta on Monday December 22.

As a result of this tendency, the deliberations on [recently promulgated] political laws (the laws on the elections, political parties, the election of the president and the composition of parliament) which represent the basis for the organisation of the 2004 general elections have been tainted by the politics of factionalism and "horse trading" by the political parties. The process has tended to be manipulative and maintain a political system which is authoritarian, corrupt, elitist and anti- democratic.

Corruption and money politics are becoming more widespread and systematic. The irony is that there has been almost no serious effort by the executive, legislative and judicial institutions to protect the state and the nation from ruin as a consequence of this corruption. Although a law on the eradication of corruption has been promulgated and an anti-corruption body formed (KPK, Komisi Pemberantasan Korupsi, Commission for the Eradication of Corruption) in reality there has been no serious political commitment from the government and the People's Consultative Assembly to truly eradicate corruption. Instead of eradicating corruption and money politics, it is precisely those parties which are to participate in the 2004 elections which are institutionalising "the tradition of corruption" through the mechanism for nominating legislative members where the principal prerequisite is the ability of legislative candidates to "deposit" money. This not only neglects the quality of legislative candidates but also becomes a pretext for those who will be elected to get their "deposit" back through corruption.

No platform

In the midst of public disappointment as a result of the failure of the national leadership which was a product of the 1999 elections [to resolve the economic and political crisis], there is almost no platform being offered or alternative program being put forward by the existing presidential candidates. They are trapped in personal arrogance as "important figures" and as if they were just elected by the people because of their "greatness" and popularity. Once again the public is facing a fait accompli which will give a "blank cheque" to the presidential candidates because they have to elect candidates who do no more than "sell names"(1) rather than put forward a clear political vision or program.

In the lead up to the 2004 elections, there has been almost no effort by the forces which support reform to improve cooperation and consolidation among themselves. Those who are considered to be reform figures are still caught up in their competing ambitions.

The 2004 elections will be a absolutely critical phase for the Indonesian nation because of the failure of a number of elements of the reform movement to tighten their ranks and consolidate themselves. Because of this, the 2004 election may represent the last hope for the reform movement if it does not want to fall back into the hands of the "accomplices" of the New Order [regime of former President Suharto]. (LOK)

Notes

1. A significant trend in the selection of legislative and presidential candidates, particularly by the larger political parties such as President Megawati Sukarnoputri's Indonesian Democratic Party of Struggle (PDI-P) and former President Suharto's state ruling party Golkar, has been to try to woo well know or popular political figures such as the highly respected Muslim scholar Nurcholish "Cak Nur" Madjid or Yogyakarta Sultan Hamengku Buwono X (Golkar). In other cases these parties have been nominating well known celebrities such as singer Franky Sahilatua or actors such as Rieke Dyah Pitaloka and Ayu Azhari (PDI-P) or Nurul Arifin (Golkar).

[Translated by James Balowski.]

2004 elections

Nowhere to Go for Nurcholish Madjid

Laksamana.Net - December 27, 2003

After withdrawing as a presidential contender for Golkar Party, Muslim intellectual Nurcholish Madjid seems to have run out of room to move in his efforts to seek a strong political party as a vehicle.

Several political parties have yet to give him a positive sign as their candidate. Among them is the Indonesian Justice and Unity Party (PKPI), a splinter group of Golkar led by former Defense Minister and Armed Forces Commander Edi Sudrajat, which has only named him as one of five possible candidates.

PKPI, a grouping of former Golkar figures opposed to Akbar Tanjung's leadership of Suharto's former political machine, has also named Siswono Yudohusodo, Agum Gumelar, Susilo Bambang Yudhoyono and Meutia Hatta, the oldest daughter of founding Vice President Mohammad Hatta. Madjid also has yet to receive any positive signals from the Muslim-based parties. At a Halal bil Halal on December 18, he met the top leaders of the Crescent Star Party (PBB), the Muslim-based party which is ideologically committed to the establishment of an Islamic state and the ideological offspring of the old Masyumi Party.

PBB seems keener to nominate its general chairman, Yusril Ihza Mahendra, currently Minister of Justice and Human Rights, who is more respected and trusted than Madjid as the torch-bearer of the principles of Masyumi.

Just two and half hours after meeting PBB's central executive board, Madjid visited the Marhaenis Indonesian National Party (PNI Marhaenism), the party which led by Sukmawati, the youngest sister of incumbent President Megawati Sukarnoputri.

This suggested that Madjid is trying to win sympathy from the secular nationalist camp and the Sukarno family in particular. This, most analysts accept, will be difficult to achieve because of Madjid's former collaboration with the New Order regime under Suharto, even though he is seen as untainted by corruption, collusion and nepotism.

Madjid's move to become Golkar;s candidate alienated the pro democracy movement and independent intellectuals, and led him to be seen as an opportunistic. This trait reminded many of his behavior during the early years of the New Order.

In 1968, Madjid, as general chairman of the Muslim Student Association (HMI), was considered a conservative modernist Muslim ideologically close to Masyumi patron Muhammad Natsir.

The theme of an essay by Madjid written in 1968, "Modernization is Rationalization not Westernization," brought Madjid to the attention of conservative modernist Muslim circles.

As this group gained confidence in Madjid, he was increasingly referred to as "young Natsir", and it was hoped that he could lead a new generation of Muslim activists to victory in the political realm. Natsir himself regarded Madjid as his apprentice.

But the views of the conservative modernists toward Madjid changed drastically after January 3, 1970.

In another essay, "The Necessity to innovate Islamic Thought and Integrative Matters of the Community", he suggested the need for the Islamic community to implement secularization as a form of liberalization and to release themselves from established erroneous views.

Madjid asked why the Muslim community was not attracted to Islamic parties or organizations at a time when the community was experiencing rapid progress. The problem, he said, lay in the "absolutely fossilized" ideas of Islamic thought.

He argued that innovation must begin with two closely related steps, to free oneself from traditional values and to find values oriented towards the future. Further, he wrote, a process of liberalization was needed in Islamic teachings and views, with secularization presenting the opportunity for the liberation of thought and attitude.

In justifying his paradigm shift, Madjid wrote: "Secularization implies every form of liberating development. [A] liberating process is needed because the Muslim community can no longer distinguish values that are perceived as Islamic; which ones are transcendental and which are temporal."

Due to the lack of fresh ideas, Muslims had lost their psychological cutting edge because of the lack of a liberal institution that could focus its attention on urgent demands of developing social conditions.

The political implication of his new Islamic ideas disturbed the conservative modernist Muslims. They saw his popular slogan "Islam yes, Islamic party no" as a political justification for the Suharto regime, which at the time had been moving to emasculate all opposition political parties, including the Muslim parties.

Madjid himself later admitted the damage to his reputation among the Muslim community as soon as his paper was published by daily newspapers. "I became a big question mark in the Muslim community, which became very suspicious of me and my friends."

"It was rumored," he added, "that I was part of a conspiracy against the Muslim community, a conspiracy organized by PSI [Socialist Party of Indonesia] which had always been considered an advocate of westernization and secularization," (See Nurcholish Madjid, The Issue of Modernization Among Muslims in Indonesia: A Participant's Point of View).

The critics were aided by the fact that the paper was first published by Indonesia Raya, the newspaper of socialist journalist Mochtar Lubis. Despite this, Madjid's perceived leaning to PSI was less significant than his view of the relationship between HMI and its elder patrons in Masyumi.

Seen from his reports of his activities during the Suharto era and his own writing, Madjid seems to have used the widening gap between the Muslim older generation of Masyumi and the younger generation of HMI as justification for abandoning the conservative modernist Muslim camp.

Madjid tried to give the impression that his ideological shift from his patrons in Masyumi was merely part of his effort to preserve the independence of HMI from Masyumi party.

But the political setting in the early 1970s was effectively under the control of the military regime which tended to be authoritarian and nationalist in nature.

The hidden agenda of the Suharto regime was to cripple opposition forces, be they right-wing religious groups or leftist Marxist ones. Parties using Islamic slogans were considered as more threatening to the sustainability of the Suharto regime.

The left-wing forces became insignificant following the collapse of the Indonesian Communist Party (PKI) in September 1965.

In the light of this political setting, Madjid's provocative ideas were considered as the birth of innovative Islamic thought, and in terms of political practices, as part of a process of disconnecting political institutions such as political parties or mass organizations from the Muslim base.

This political situation created a climate in which Islamic organizations including Muslim parties became elitist and isolated from Muslim constituents like the modernist Muhammadiyah and traditionalist Nahdlatul Ulama (NU).

The political setting of the New Order regime gave little room for maneuver by the political parties, and co-opted social and political organizations like HMI and its alumni KAHMI, became more effective as channels of expression for the interests of Muslim politicians.

The KAHMI alumni succeeded in penetrating and dominating the bureaucracy at the highest levels of all strategic departments and of Golkar itself.

As a result, organizations like HMI became accountable to high- ranking government officials at the palace or ministries rather than to their grass-root supporters.

Madjid as the godfather of KAHMI, whether deliberately or not, gave moral blessing to the efforts of members of the group to gain access to the locus of power centering on Suharto's inner circle in the presidential palace.

Madjid necessarily finds it difficult to transform himself from a creature of top-down rule to a situation where everything must be determined from below.

Ironically, as a source close to Muslim circles told Laksamana.Net, in his effort to be nominated as a presidential candidate on behalf of Muslim parties, Madjid is now dependent on Muslim parties like PBB and the Justice Welfare Party (PKS) and militant Muslim organizations that he had attacked in the past, describing them as inflexible and dogmatic.

In the coming 2004 general elections where a strategic alliance between secular nationalists and the Muslim camp is urgently needed to create stable government, Masyumi-inspired modernist Muslim politicians have become as important as NU-inspired traditional Muslims.

The conservative modernist Muslim movement is essentially urban- based, with access to middle class Muslims like merchants, professionals, intellectuals and university students. NU, on the other hand, wins most support from rural Muslim clerics, farmers, small merchants and fishermen.

In such a situation, each Muslim party now has to display its Muslim credentials rather than hiding them, as they were forced to do under Suharto.

Muslim politicians from Muslim-based parties and from mainly nationalist parties such as the Indonesian Democratic Party of Struggle (PDI-P) and Golkar, are dominated by militant Muslim activists who suffered from oppression under the Suharto regime.

Madjid's track record is considered as out of touch with mainstream Muslim constituents and, as such, few are likely to want to combine with him as a presidential candidate.

Ryamizard: Indications that the elections will be disrupted

Liputan6 - December 25, 2003

Jakarta -- In Jakarta on Thursday December 25, army chief of staff General Ryamizard Ryacudu, explained that army intelligence has obtained indications that the 2004 elections will be tainted by disturbances. He gave the example of the 60,000 foreign agents from large foreign countries which are in Indonesia at the moment. According to Ryacudu this may disrupt the coming elections.

According to Ryacudu, in carrying out their duties the TNI (armed forces) always sees a worst case scenario in order to predict future situations. In order to safeguard the elections, the TNI is ready to be deployed if the festival of democracy is tainted with conflicts.

President Megawati Sukarnoputri has rejected the assessment by number of people who have said that the elections will be tainted by conflicts. "I [just] laughed, [about] the issue of a conflict, violence, [of it turning] bloody", said the president when meeting with governors from across Indonesia at the state palace on Tuesday.

According to the president, the People's Representative Assembly has already given maximum effort to organising the political system. This includes amending the 1945 Constitution in order that the people can directly elect the president and vice- president. "This is no joke. What's lacking in the Constitution which has now been amended four time", she exclaimed. (YYT/Dewvina Oktora dan Adi Iskarpandi)

[Translated by James Balowski.]

Split among Nationalists

Laksamana.Net - December 25, 2003

The candidacy of three daughters of founding President Sukarno in the upcoming 2004 general elections has opened up new potential for a test of the loyalty of nationalist voters and possible scenarios concerning the ability of President Megawati Sukarnoputri and her Indonesian Democratic Party of Struggle (PDI-P) to retain power.

The success of two other of Sukarno's daughters in winning the right to participate in the general elections has apparently upset some nationalist elements within PDI-P.

These elements are not so concerned that Megawati might fail to be elected for a second term, but that she might regain the presidency with a new range of supporters.

In theory, the Pioneer Party (Partai Pelopor) led by Megawati's sister Rachmawati and the Marhaenisme Indonesian Nationalist Party (PNI Marhaenisme) led by her third sister, Sukmawati, are potential contenders for Megawati, especially in dividing PDI-P grassroots support in its traditional heartland, especially Java and Bali.

Here, the reputation of Sukarno and his family is still popular in the hearts and minds of the population. Groups dissatisfied with PDI-P but who remain loyal to the Sukarno name can be expected to throw their support behind the two new parties that carry on the father's nationalist legacy.

The worst case scenario for Megawati would be to see the nationalist vote split in such a way that PDI-P would fail to gain the 20% necessary to nominate a presidential candidate in its own right. This would require PDI-P to seek a coalition to put her name forward once more.

Cornelis Lay, a member of Megawati's "think tank" and close to her husband, Taufik Kiemas, says a coalition would depend on a union of "groups that are now divided by their perception of Sukarno's teachings, ranging from the conservative as represented by Rachmawati's party to the less radical supporters represented by the PDI-P."

This is not a situation that Cornelis Lay and others who have little grassroots support among the nationalist camp would be happy with, since it would challenge their positions of power.

Seen from another perspective, the division of the nationalist supporters represented by the new parties led by Sukarno's daughters and the Freedom Bull National Party (Partai Nasional Banteng Kemerdekaan/PNBK) led by former Megawati aide Eros Djarot represents an opportunity for reformist elements within PDI-P to significantly reduce the power of Taufik Kiemas and Theo Syafei within the party.

These pro-reform elements within PDI-P, such as deputy secretary general Pramono Anung and businessman Arifin Panigoro, who have no traditional and emotional ties to the party as it exists today, would see a coalition of nationalist parties as a political breakthrough.

A coalition could be used as the momentum for re-directing the party towards attention to the aspirations of the middle class and lower income groups. This natural constituency of the party has largely been neglected since PDI-P came to power.

The requirement for a coalition to put Megawati forward once more as a candidate also presents the opportunity for the creation of a long-term political alliance beyond the conventional political streams of nationalism and Islam.

In such a scenario, a coalition could bridge the traditional Islam-Nationalist divide and center on reformists versus pro- status quo groups.

Recent polls have underlined that Megawati, as the daughter of Sukarno, remains a popular figure in a number of rural areas and regions, but that this popularity is not shared by PDI-P.

This could mean that PDI-P would become a small party in parliament but that Megawati, through a coalition, could still win the presidency.

If, on the other hand, PDI-P does relatively well in the polls, winning over 20% of the vote, she would not require a coalition to be nominated, ironically leaving the present set of backers in power within the party and crushing the hopes of the pro-reform groups. This would make Megawati the prisoner of her own success.

Given Megawati's failure to forge a coalition in the 1999 presidential election at the People's Consultative Assembly (MPR), it remains possible that PDI-P could fail to win the 20% required to nominate her and that she would retire in a fit of pique and refuse to consider a coalition. This would allow new political forces to come to power, potentially Suharto-era groupings determined to restate a tough hand on government.

In the coming months, supporters of the new nationalist parties will need to prove themselves as legitimate contenders to Megawati and PDI-P in representing the nationalist cause.

Both Rachmawati and Sukmawati can depend on a certain level of support as members of Sukarno's family, but it is unlikely that they will be able to compete strongly against their older sister, who after all defied Suharto openly while they say quietly in the wings.

Neither of the two younger sisters has much political experience, and are not believed to be adept at creating coalitions, particularly outside of the nationalist camp.

Both tend to be exclusivist, preferring interact only with people from the nationalist camps, and this is expected to make it difficult for both to even open communication with non- nationalist parties, let alone form coalitions with them.

At the PNBK, Eros Djarot is a far more skilled political operator. He has a wide network of relationships from his own world of the arts and within the media and is expected to be a far more fluid player in opening lines of communication with other parties such as the National Mandate Party (PAN) of Amien Rais, the National Awakening Party (PKB) of Abdurrahman Wahid or the Justice Welfare Party (PKS) of Hidayat Nur Wahid.

Djarot's PNBK, however, is very much a party of urban intellectuals, and it is likely to have little appeal to the lower classes, especially in rural areas.

Overall, Megawati remains the candidate to beat, but, as in 1999, the conclusion has to be that the election is not only hers to win, but also to lose if she fails to play her cards right.

Army chief slammed over poll statement

Jakarta Post - December 26, 2003

Urip Hudiono, Jakarta -- The Indonesian Legal Aid Foundation (YLBHI) has slammed the Army chief's statement that he would deploy troops if the 2004 elections turn into bloody chaos, saying such a remark was politically unethical and could pose a serious threat to the nation's newly born democracy.

The statement clearly showed that the military wants to make a political comeback in the near future, the non-governmental organization said on Wednesday.

"The statement is clearly out of place. Issues regarding the political situation and national security are the authority of the President and related ministers, not of operational military officers such as the army chief," said YLBHI director Munarman.

During the Army's anniversary celebrations on Monday, Army chief-of-staff Gen. Ryamizard Ryacudu said he would mobilize troops should next year's elections spark violence and threaten national unity.

The military would also react to any foreign attempts to disrupt the nation's unity and weaken the military, he added.

The YLBHI said Ryacudu's statement was part of an attempt to intimidate the political parties contesting the 2004 general election. "With the statement made during the Army's full-show-of-force, political parties would likely think twice before saying their candidates were against the military," Munarman said.

In the anniversary, the Army showed-off its weapons and personnel, including 8,000 personnel from its 10 newly established battalions under the Raider Unit.

Munarman urged all elements of the nation, particularly the military itself, to remember and to stay committed to the previously reached consensus -- that the military must quit its socio-political role, and instead focus on its security function.

Nor should the people be trapped by any of the military's stratagems in the upcoming elections, by voting for candidates who are committed to reform and democracy and have the courage to keep the military out of politics, he added.

Commenting on Ryacudu's statement that there were attempts by other countries to disturb the country's sovereignty and weaken the military, Munarman said that this was the Army's attempt to get public support to build up its forces.

"If there was indeed a need to strengthen the military for the sake of the nation's sovereignty, then it should be the Navy and the Air Force that are strengthened, not the Army," he argued.

Military ups the stake ahead of elections

Jakarta Post - December 26, 2003

Tiarma Siboro, Jakarta -- Down but not out, is perhaps the idiom that fits the Indonesian Military (TNI) the most after the reform movement in 1998 put an end to three decades of undemocratic rule, placing much on security for the sake of economic growth.

The last five years has seen TNI lying low. It has become the punching bag of politicians and the public alike for its blind loyalty to the past regime. The conviction this year of several high-ranking officers for their role in the East Timor debacle in 1999, and the ongoing trial of some other top brass, in connection with the Tanjung Priok massacre in 1984, are just a few examples of reform's fruits at the expense of the military.

Episodes of demilitarization should have climaxed in 2000 when the People's Consultative Assembly scrapped TNI's representation in the legislative bodies -- its formal access to politics.

But a reversal of fate, and the art of survival of TNI, began to unfold when the nation witnessed the third change of national leadership within three years in 2001.

The year 2003 confirmed that TNI was marching on the right track and ready to gain from the pains it had experienced. The first landmark of TNI's return to fame was undoubtedly the government's decision in May of this year to impose martial law on Aceh, where the Free Aceh Movement (GAM) rebels have been fighting for independence for almost the last three decades.

It canceled out all efforts to settle the separatism issue through a dialog, which dated back to 2000, when the administration of former president Abdurrahman Wahid accepted mediation from the Henry Dunant Centre. There had been examples, since the government of founding president Sukarno, when civilian politicians allowed the military to take the lead in dealing with conflict.

The policy also defied pressure from international donors, who had not only facilitated peace talks but pledged a huge post-war reconstruction fund for Aceh, and human rights watchdogs across the world who had expressed their worry about the recurrence of rights abuses.

Territorial integrity, the nationalistic jargon that ties both the military and the government of President Megawati Soekarnoputri, was the justification of the major offensive to quell rebellion in Aceh. No less than Rp 1.7 trillion (US$200 million) was allocated by the government from emergency funds to finance the six-month operation to restore security in the resource-rich province, which involved 35,000 troops, the biggest deployment ever in the country's history.

The government decided in November to extend the imposition of the martial law and spend another Rp 1 trillion to finance the operation.

The case of Aceh gave new meaning to security, which according to the Assembly decree No. 7/2000 is the domain of the National Police. The decree, which formally separated the police from the armed forces, tasks the military with the job of defense.

It was Army chief of staff Gen. Ryamizard Ryacudu who insisted that security affairs could not override the TNI's role.

Through a call on civilians, to let the military handle armed- struggle in conflict-ridden provinces, such as Aceh and Papua, Ryamizard asserted that even though conflicts were localized "they should be considered threats to the state's defense".

Ryamizard voiced his remarks while peace talks between the government and the GAM rebels were underway.

The statement coincided with the original content of the military bill, which sparked controversy as it allowed the military to deploy troops to certain conflict areas without prior approval from the President, who is the TNI's supreme commander.

The government eventually revised the controversial content, which was spelled out in Article 19, but Ryamizard's straightforward opinion reflected the intention among the military to regain ground, after five years of being sidelined from the political arena.

The second apparent change in the military's role, since the reform movement, can be seen in the defense white paper, which specifically defines the nation's threats as coming from inside instead of external powers.

While recommending a build-up of military strength, the defense white paper maintains the military's territorial role, arguing that "it is still relevant in order to develop the country's defense", although it allows the government to strictly monitor the implementation of TNI's territorial function in order to prevent abuses.

In a surprising move, however, the military disclosed a plan to withdraw troops who are currently being deployed to guard several vital installations across the country, including the US-run gold and copper mining company PT Freeport MacMoran in Papua. Like Aceh, Papua is a home to separatist rebels although to a lesser degree.

TNI Commander Gen. Endriartono Sutarto said the decision came as a response to allegations that the military also served as mercenaries. But some observers read between the lines, and saw the statement as an attempt to test people's awareness of security ahead of the 2004 elections.

TNI will no longer be represented in both the House of Representatives and the Assembly as a result of the democratic reform that reinstated civilian supremacy in the country.

It is oversimplification, however, to assume that TNI will just stay away from the arena as a good spectator, or provide a security cover for parties contesting the elections.

Like civilian politicians, the military is aware of the critical moment next year that will determine its future.

An analyst said the elections could help the military further improve its bargaining position because "they can provide security and order before, during and after the polls".

In a hearing with the House in November, Endriartono warned of security threats during the election process, ranging from conflicts between supporters of rival parties to legal moves to foil the elections.

In the wake of insurgency and terrorism as a global threat, security has become the military's trump card -- which civilians cannot deny -- and it is not a coincidence if the present government shares the same view.

To some extent it confirms the major role the military is playing, albeit from the back stage.

Indonesia's Mr Reliable

Straits Times - December 24, 2003

Devi Asmarani, Jakarta -- High-profile minister Susilo Bambang Yudhoyono is a dark horse likely to steal the spotlight from incumbent President Megawati Sukarnoputri as she strives for re- election next year.

While public disappointment has been vented at the Megawati administration and her perceived insipid leadership, Mr Yudhoyono, the Coordinating Minister for Politics and Security, has emerged in a positive light.

While the President has earned criticism for agonising silences and indifference on key issues, the minister has appeared the voice of reason and authority.

Where she was loath to communicate her policies to the public, he took centrestage, headlining the news on terrorism, Aceh and refugees.

Commonly referred to as SBY, the 53-year-old retired general is regarded as a reliable commander. His reputation as a "thinking" general untainted by graft allegations makes him an asset for political parties vying for next year's election.

Others to watch

Akbar Tandjung -- The Golkar party chairman is still awaiting a Supreme Court ruling on a graft conviction, but that has not diminished his presidential ambition. He is still in the running with six other contenders vying for the presidency on the Golkar ticket.

Analysts said Mr Akbar's chance of winning the presidency might be slim. If he wins the Golkar convention in April, he would likely join Ms Megawati as her running mate.

Hasyim Muzadi -- The chairman of the 40 million-strong Islamic grouping, the Nahdlatul Ulama, has been tipped as potential running mate for some of the presidential contenders such as incumbent president Megawati Sukarnoputri or National Assembly Speaker Amien Rais. However, he has not indicated clearly to whom he will lend his support.

General Wiranto -- The former military commander is an early front runner against the six other presidential hopefuls for Golkar. He still wields strong influence within the defence force. Sources said he could team up with former president Suharto's daughter Siti Hardijanti Rukmana if he lost in the Golkar convention.

Lieutenant-General Djoko Santoso -- The 51-year-old is one of the army's fastest rising stars and has been tipped as the likely replacement of Army Chief of Staff Ryamizard Ryacudu when the latter moves up to become the Indonesian Military (TNI) Chief. He was named army deputy chief in October, seven months after he was appointed Jakarta military chief.

Some polls have tracked his rising popularity over the past year and predicted that he would be one of the favourites in the 2004 presidential race. Yet, analysts doubt he can win, mostly because of his lack of political constituency.

So far, only the tiny and newly-formed Democrat Party has formally named him as its candidate. Other small parties could throw their support behind him but Mr Yudhoyono's biggest support is likely to come from the Nation Awakening Party (PKB), founded and controlled by former president Abdurrahman Wahid.

Mr Yudhoyono was the coordinating minister for politics and security in the Abdurrahman government before he was sacked near the end of Mr Abdurrahman's 18-month presidency over policy disagreement. But Mr Abdurrahman has hinted he wants Mr Yudhoyono to run for the presidency on the PKB ticket. Like Mr Abdurrahman, Mr Yudhoyono hails from East Java. He was also raised in a Nahdlatul Ulama (NU) family, which could win him legitimacy among millions of its grassroots supporters.

The NU is a 40-million-strong Islamic group founded by Mr Abdurrahman's grandfather. The PKB, a nationalist party whose constituents comprise NU followers, suits Mr Yudhoyono's Muslim nationalist leaning.

To educated voters, he is a leader with integrity and capability who can bring dignity back into the government. But there are doubts that he can beat candidates endorsed by the two largest parties -- Ms Megawati's Indonesian Democratic Party-Struggle and Golkar.

The PKB came in fourth in the 1999 election. Since Mr Abdurrahman's impeachment in 2001, the party has been rocked by internal splits and the emergence of new Islamic-based parties targeting NU constituents.

Mr Yudhoyono himself has kept mum about his presidential ambition, preferring to focus on his job as the security czar. Analysts said this approach works best for his image and his political hopes.

Political-risk consultant Budiman Moerdijat said: "SBY will announce his presidential candidacy fairly late in the game. He wants to keep his cards close to his chest to save face."

Right now, there is no guarantee the Democrat Party can meet the electoral threshold in April to nominate a presidential candidate for the July race. A party must win at least 5 per cent of the national votes in the general election in April or secure 3 per cent of parliamentary seats to endorse a presidential candidate.

"He wants to save face, in case the Democrat Party doesn't meet the threshold or in case parties like PKB change their mind about plans to nominate him," said Mr Budiman.

If nothing else, Mr Yudhoyono's approach has distinguished him from the host of presidential hopefuls like National Assembly Speaker Amien Rais and General Wiranto, the former military commander who is vying to run on Golkar's ticket.

Observers say Mr Yudhoyono's lack of mass-base support could be the biggest obstacle to his presidential ambition. At best, they say, he might be heading for the No. 2 job.

Political analyst Sukardi Rinakit, of the Centre for Political Studies, said: "Based on a series of our polling, people like SBY or Cabinet Minister Yusuf Kalla always ranked high in approval for the vice-presidency post. I think this reinforces the idea that some people are designed to be president, while others, no matter how great they are, can only be No. 2."

Elections commission asks people not to boycott elections

Antara - December 24, 2003

Jakarta -- Indonesia's General Elections Commission (KPU) Chairman Nazaruddin Sjamsuddin expressed hope that people in the provinces of Maluku, North Sulawesi and Papua would not boycott the 2004 general elections.

"We hope the elections would run well and people in Maluku, North Sulawesi and Papua could accept the reality," he said on Wednesday.

He was responding to a statement by the Maluku Regional Elections Commission (KPUD) which had threatened to boycott the elections by not submitting its list of legislative candidates following the government's and the House of Representatives (DPR)'s failure to amend the elections law particularly clauses on the number of seats in the parliament.

Campaign kicks off to ditch unscrupulous politicians

Jakarta Post - December 24, 2003

Kurniawan Hari, Jakarta -- Government critics, students, and non-governmental organization activists on Tuesday launched a nationwide drive aimed at urging the people not to elect "dirty rotten politicians" in the 2004 elections.

The campaign, according to the proponents, was part of their efforts to free the country from corrupt state officials. They, however, were still undecided on whether they would publish the list of unscrupulous politicians or simply provide the people with some indicators.

The movement came just one day after the Indonesian Survey Institute (LSI) announced its latest finding that 68 percent or 1,469 of 2,160 respondents from 372 villages and cities wanted economic recovery and job opportunities as well as cheap basic commodities to be the main priorities after the elections.

Indonesia will hold the legislative election on April 5 and the presidential election on July 5. Twenty-four parties have been declared eligible for the elections.

Economist Faisal Basri said the movement had prepared lawyers in anticipation of defamation suits filed by politicians. "The most difficult thing is to identify the bad politicians from the good ones," he said at a press briefing here on Tuesday.

Also at the press briefing were political analyst J. Kristiadi from the Centre of Strategic and International Studies (CSIS), rights activist Asmara Nababan, secretary of Transparency International (TI) Indonesia Emmy Hafild, and former legislator Indira Damayanti Soegondo.

The group would use four crucial issues as a guide to differentiate bad politicians from good ones. The four issues are corruption, environmental destruction, human rights abuses, and domestic violence/extramarital affairs.

Human rights activist Munir, who also joined the campaign, said he would identify the eligibility of politicians based on their human rights track records.

"I think all current legislators are ineligible for reelection because they refuse to declare the Trisakti incident as a case of gross human rights abuses," he said, referring to the killing of four Trisakti students that triggered massive riots across the country in 1998.

Separately, Indonesian Corruption Watch (ICW) coordinator Teten Masduki acknowledged that fellow activists were still debating on whether they would publish a list of unscrupulous politicians or only provide the people with criterion for the eligibility of politicians.

"There is no decision yet. We hope this campaign will become a warning for political parties not to take the nomination of their cadres lightly," he told The Jakarta Post by phone from Denpasar, Bali, where he was to launch the same campaign.

The activists are to jointly declare the campaign on December 29 in several cities nationwide.

Director of the Center for Electoral Reform (CETRO) Smita Notosusanto, meanwhile, doubted the movement would be effective. Law No. 12/2003 on elections, she said, did not instruct the General Elections Commission (KPU) to issue a temporary list of legislative candidates for people's scrutiny.

"This means there is no opportunity to scrutinize the legislative candidates. I am afraid this movement will not be effective," she said. Smita, however, urged political parties to publish their temporary lists of legislative candidates for public scrutiny.

Political parties have to submit their legislative candidates to the KPU by December 29 at the latest. Faisal emphasized that the campaign would be a difficult process. "If the campaign fails, I am afraid we will have a president whose backers are thugs. We don't want that to happen, do we?" he said.

Army 'to step in if polls in Jakarta turn bloody'

Straits Times - December 24, 2003

Robert Go, Jakarta -- Indonesian soldiers will be mobilised to take control of the situation should next year's elections "turn bloody", the army's top officer has warned.

The remarks by the Army Chief of Staff, General Ryamizard Ryacudu, has rekindled talk about the military seeking to reassert itself in domestic politics.

Speaking on the sidelines of a ceremony to commemorate the army's 58th anniversary on Monday, he said: "The elections are a party for democracy, and the people themselves have the responsibility of safeguarding that process. But we don't want to see this party turn bloody, or the nation's children to clash for the sake of the ambitions of certain groups. If that happens, soldiers will have to take matters into their own hands."

The general did not elaborate about which "certain groups" he was referring to, or specify what kinds of circumstances would spark the army's mobilisation.

He dismissed reporters' questions about a potential coup d'etat by the military, saying: "The army has no such desires. Only people who want to insult our soldiers would think the army wants to take over."

Gen Ryamizard's comments raised questions about the army's understanding of its role in national security after the formal separation of the police from the military two years ago.

Indonesia's laws stipulate that the police, not soldiers, have jurisdiction over domestic security. Troops are to be kept in reserve status and would be allowed to act only through a presidential decree or at the request of the police leadership.

Political analyst Arbi Sanit said Gen Ryamizard's comments reflected a "worst-case scenario". "That's the military's habit -- to presume the worst," he said.

But other observers noted that such statements reflected the "eagerness" of the military to project the image of being the ultimate arbiter of security matters in Indonesia.

Mr Arbi said: "Times have changed. The military is very important to the defence of the nation, but gun-toting soldiers have no place any more in our city streets. Military officials say they understand this, but at times, their comments and actions suggest they still think they should be in charge."

Mr Umar Juoro of the Centre for Information and Development Studies said that the relationship between soldiers and police officers had been deteriorating since the latter became an independent body, and comments like Gen Ryamizard's might make things worse.

He said: "Just look at the conflicts between soldiers and policemen. They're growing, and not improving." There have been several clashes between the two camps. The latest, a shoot-out at a police station in Pontianak, West Kalimantan, last week, left a soldier dead and two policemen wounded. The cause of the shoot- out was a minor traffic accident in which a member of the local army corps was the victim.

"There is serious competition -- for resources, prestige and power -- between the two groups. This is not good for the civilian leadership," Mr Umar added.

Someone want's to thwart the elections, then don't just beat around the bush - Megawati

Kompas - December 24, 2003

Jakarta -- President Megawati Sukarnoputri has questioned the motives behind the assumptions which have been made about the organisation of the 2004 general elections which claim they will be susceptible to turmoil and disturbances.

"If there are indeed [people who] want to [create] a disturbance, who are they exactly, these [people] who want to make a disturbance, are they the ordinary people who will participate in the elections, or are there [other parties] who want to upset the people. Why is [the possibility of] unrest [happening] the only thing being talked about", she said before participants at a 2003 Governor's Working Meeting at the state palace on Tuesday December 23.

Megawati's assessment was that if disturbances occur during the 2004 elections, it is certain that the source will not be the political parties which are participating in the elections. This is because the political parties have a strong interest in holding elections which are safe and which run smoothly as a precondition for the establishment of democracy.

"Of the 24 political parties which have passed [the verification process] to [participate] in the 2004 elections, six are political parties which have passed the electoral threshold [by gaining enough parliamentary seats in the 1999 elections]. Is it these six who want to create a disturbance? Or the 18 other new [political parties]? I think this isn't possible because of course the new parties want [to promote a] good image [of themselves]. Then who and what [groups] are actually going [to cause these disturbances]", asked Megawati.

She explained that the changes to the electoral system represent the wishes of the people and are demonstrated through six amendments to the 1945 Constitution. Because of this, there is no reason for the people not to ensure that the 2004 elections run safely and smoothly. The people are ready to participate in the elections. "If [there are groups who] want to create a disturbance, don't just beat around the bush. Go ahead and take them all [into custody]", she said.

"Essentially, in a country which has been independent for 58 years, the business of leadership is never [completely] finished. If measured in terms of human age, [the country] is already a grandmother, a grandfather. After all, [the nations leaders] were chosen by the people, "whoever", that was the people's choice", added Megawati.

Megawati, who is also the general chairperson of the central leadership board of the Indonesian Democratic Party of Struggle, said that since the very first elections in 1955 up until the 1999 elections, there has never been any disturbances which have meant that the elections failed.

"The 1999 elections, the preparations for which were only [conducted over a period of] two years, were a success. So what then is the [alleged] deficiency in the [organisation of the] 2004 elections, which have run according to schedule and with adequate preparation", she said.

Megawati also acknowledged that the organisation of the 2004 elections will be different from previous elections. However these differences are not dramatic. "There is nothing very new. Before [people voted for] the People's Consultative Assembly (MPR), the People's Representative Assembly (DPR) and the Regional Representative Assembly (DPD). Before there was only one stage, now there are two. Before the MPR elected the president and vice-president, now [they will be elected] directly by the people" she said.

As well as expressing her conviction that the 2004 elections will run smoothly, Megawati also asked the governors to take a neutral position and safeguard the neutrality of their staff. "I reminded the governors to faithfully ensure and [sincerely] maintain the neutrality of state officials. I truly hope this [will happen]", she said.

Worst case scenario

Armed forces (TNI) chief General Endriartono Sutarto, said that in preparing for the worst case scenario, that the 2004 elections will be racked with conflict and turn bloody, the TNI is ready to take action if in the end this cannot be avoided.

Following a politics and security working meeting yesterday, Sutarto revealed, "It needs to be understood, in making predictions, the TNI always prepares for the worst case scenario. That is the way we think. If it does occur, then the TNI is ready. If it turns bloody, we will prevent it getting out of hand and as quickly as possible (the problem) will be dealt with", he said.

Ermaya Suradinata, the governor of the State Security Institute (Lemhannas), said that it is not easy to prevent the 2004 elections from turning bloody. "To prevent this, all of the political parties must collaborate. Without collaboration, there will be friction which will create negative sentiments", he said.

Sutarto and Suradinata were responding to a statement by army chief General Ryamizard Ryacudu that troops will be deployed if the 2004 elections turn bloody.

According to Lemhannas, the possibility of friction between political parties could arise because of dissatisfaction over the organisation and results of the elections. The dissatisfaction of these political parties will have a broad impact on public life. "Of late, the people have been used by particular groups. It may be that there are clandestine groups who will take advantage of this dissatisfaction", said Suradinata.

Army chief creating unease

A number of people have indeed expressed regret over Ryacudu's statement. "This statement will create public unrest and gives the impression of denigrating the efforts which have been made by the political parties to hold peaceful elections in 2004", said Todung Mulya Lubis from the Centre of Electoral Reform (Cetro) on Tuesday in Surabaya, East Java.

According to Lubis, the statement implies that the TNI are not sincere in wanting to leave the political stage and are making preparations for a return to politics. "If there is really an intelligence report on [potential] disturbances during the elections, it doesn't need to be revealed publicly. Just take steps to anticipate it", said Lubis who is of the opinion that Ryacudu's statement is as if [the TNI] is reconsidering the Sutarto's statement on the TNI remaining neutral during the 2004 elections.

Military observer Andi Widjajanto from the University of Indonesia and retired General Hasnan Habib also expressed regret over Ryacudu's statement. According to Widjajanto, statements of this kind simply cannot be issued by the chief of the army or the TNI. "Such statements can only be made by the authorities who were elected by the people, such as the president or a governor", he said.

Habib said that the statement arises from a way of thinking which is like the New Order [regime of former President Suharto] and is not appropriate in a climate of democracy. This is because the military does not represent a political force, but rather are an instrument of government. "This statement is unwise and indicates a form of thinking which is like the New Order", said Habib in a discussion on aspects of security in the 2004 elections by the organisation Propatria in Jakarta on Tuesday.

Habib acknowledged however that the TNI cannot possibly just ignore a state of disorder. The 2004 elections represent the first attempt to see if the civilian leadership can be trusted. On the other had, the political parties tend to be engaging in polemics.

Nevertheless, Habib was of the view that extreme statements in the midst of preparing for and holding the general elections are unnecessary. "Perhaps there will be one or two drops of blood, but if [you go around] saying that the elections will turn bloody to the point of [stating you will] deploy thousands of elite troops, that's going too far", said Habib.

Certainly the government needs to take steps to prepare a contingency plan in the face of a worst case scenario occurring. But such preparations are needed precisely in the framework of ensuring that a political decision to deal with an state of emergency is made by the authorities who were elected by the people, not the military, and to prioritise non-violent means of resolving such problems.

According to Widjajanto, the legal instruments regulating a state of emergency during an election are Law Number 2/2002 on the National Police Force, Law Number 3/2002 on National Defense and Law Number 23/1959 on a State of Emergency.

In relation to crisis control, Widjajanto also raised the question of the need for the National Election Commission (KPU) to immediately issue detailed regulations in order to prevent administrative and political complications which could arise as a result to the many pit-falls and legal loop-holes in the [regulations on] organising the elections.

Separately, the vice-chairperson of the DPR's reform fraction, Samuel Koto, warned the public to be careful in interpreting Ryamizard's statement. "I remind the public not to accept Ryamizar's statement without thinking it through first", he said.

"During the New Order period, the issue of [something turning] bloody had two causes. Firstly, it turns bloody because there is political manipulation which of course involves the military. Secondly, it turns bloody because there are actually technical problems, such as neglect on the part of political parties during the campaign and in the mobilisation of the masses, or neglect on the part of the KPU in regulating the campaign schedule", said Koto. (ely/inu/IDR/win/wis)

[Translated by James Balowski.]

KPU sticks to registration plan

Jakarta Post - December 23, 2003

Moch. N. Kurniawan, Jakarta -- The General Elections Commission (KPU) dismissed on Monday a demand from a number of new political parties to delay the December 29 deadline for the submission of the names of legislative candidates.

KPU member Hamid Awaluddin told reporters on Monday that any changes to the schedule would cause a domino effect, with the possibility of the election eventually being delayed.

"There is no acceptable reason to delay the registration deadline. The political parties should realize that if we postpone the registration, this will affect the whole preparations for the elections," Hamid said.

Separately, KPU deputy chairman Ramlan Surbakti admitted there were some parties that faced difficulties in recruiting legislative aspirants.

However, he said a delay to the registration period would make it difficult for the KPU to distribute the ballot papers, which was scheduled to take place between January 30 and March 10, 2004.

The KPU started the registration process on Monday, but none of the parties turned up to have their legislative candidates officially listed.

Ramlan predicted that most parties would register their legislative candidates near the closing date on December 29.

After the registration, KPU would verify that all candidates have satisfied the requirements between December 23 and January 5, 2004, and announce the verification results to the respective parties between December 27, 2003, and January 12, 2004. Between December 29, 2003, and January 19, 2004, the candidates will be given the last chance to complete/correct the required documents.

The KPU will meet again on January 27 next year to determine the fate of the legislative candidates and the list on the following two days.

A number of parties, including the New Indonesia Alliance Party (Partai PIB), the Reform Star Party (PBR), the Freedom Party and the United Democratic Nationhood Party (PPDK), have filed complaints with the KPU over the difficulties facing their legislative candidates in fulfilling the KPU's requirements, particularly as regards the need for certificates of good heath and good conduct.

Separately, the KPU and the Elections Supervisory Committee (Panwaslu) agreed on Monday to allow political parties to hoist their flags before the March 11-April 1 election campaign period at their offices, local election commission (KPUD) offices, and certain locations that would be decided by the KPUD and the local administration.

Meanwhile, Supervisory Commission member Topo Santoso said the commission would investigate reports from 14 parties that attributed their failures to be approved to contest next year's election to unfair practices on the part of the KPUD.

"We will carry out a fact-finding process, and meet with the KPUD to clarify the reports. Afterward we will hold a plenary session, and submit our findings to the KPU. The KPU will have the final say on our findings," he said.

But he said parties were free to challenge the KPU's decisions in court. Among the 14 political parties that filed reports with the Supervisory Commission are the Nation Unity Party (PPB), the Marhaenisme National Party (PNM), the Indonesian Nationalist Unity Party (PPNI), the Reform Party, the Unity Democratic Party, the Republic of Indonesia Unitary Party (PKRI), and the Indonesian Islam Party (PII).

The KPU declared only 24 parties, including six old faces, eligible to contest the elections.

Polls to disappoint reformists

Jakarta Post - December 23, 2003

Moch. N. Kurniawan, Jakarta -- According to a new survey, next year's elections are likely to produce unscrupulous politicians who have no commitment to fighting corruption and enforcing the law, and more and more people are becoming disillusioned with the so-called reform movement.

The survey, conducted by the Indonesian Survey Institute (LSI) and released on Monday, revealed that 68 percent, or 1,469 of 2,160 respondents from 372 villages and cities, wanted economic recovery and job opportunities as well as cheap basic commodities to be the main priorities after the elections, while only 5 percent of respondents saw corruption eradication as being important.

The survey was conducted through direct interviews in all 32 provinces, and contains a margin of error of 2.5 percent.

It also revealed that some 60.3 percent, or 1,361 respondents, said that former dictator Soeharto's New Order political system was much better than the current one. Only 25.2 percent of respondents said the current system was better than the New Order regime.

"With such psychological conditions and perception, things are not looking good for the 2004 elections. It is difficult to imagine that the voters will critically choose leaders based on sound platforms," the survey said.

A total of 24 political parties have been declared eligible to contest next year's legislative election scheduled for April 5. Following this, a direct presidential election will be held on July 5. According to the survey, the public are disappointed with the economic crisis that hit the country in tandem with the emergence of demands for reform.

"Over-obsession with the improvement of the economic situation and a desire on the part of New Order politicians to make a comeback will make the voters easily manipulated by unscrupulous politicians who cleverly raise economic issues even though they will lead the country into further corruption and weak law enforcement," it added.

The results of the survey were announced by LSI executives Denny J. A. and Mohammad Qodary during a press conference.

The survey suggested that 61.5 percent of the respondents who deemed the New Order era better than the Reform Era came from cities instead of villages.

At least 30.1 percent of those disappointed with the Reform Era preferred Golkar to lead the next government, 10.4 percent the Indonesian Democratic Party for Struggle (PDI Perjuangan), 8.1 percent the National Awakening Party (PKB), 7 percent United Development Party (PPP), and 6.4 percent the National Mandate Party (PAN).

Most respondents (12.1 percent) disappointed with the Reform Era picked Golkar chairman Akbar Tandjung as their preferred choice for the next president, followed by 11.5 percent for Megawati Soekarnoputri, and 8.4 percent for Sri Sultan Hamengkubuwono X.

Among respondents satisfied with the Reform Era, 25.8 percent preferred the PDI Perjuangan, followed by Golkar on 13.7 percent, PKB on 9 percent, and PAN on 7.4 percent.

Some 27.9 percent of the pro-reform respondents would vote for Megawati as the next president, followed by Amien Rais on 10.1 percent and Abdurrahman Wahid on 7.9 percent.

The LSI recommended that voter education be intensified to help voters realize that corruption, law enforcement and terrorism were the main issues facing the country. The institute said that it would be impossible for the country to develop into a prosperous and stable state if corruption was allowed to continue.

Voters also needed to be warned not to trust politicians' promises to restore the economy, but instead be educated about the need to scrutinize politicians' records on law enforcement and corruption, the LSI said. "Otherwise, the 2004 elections will become a means for unscrupulous politicians to take control of the reins of power again," the survey said.

Early this month, another survey, this time conducted by Charney Research of New York and AC Nielsen Indonesia and commissioned by The Asia Foundation, found that the majority of people eligible to vote in next year's general election were politically alienated, intolerant and hoped for the return of a strong leader like Soeharto.

At least 65 percent of adults surveyed between June and August 2003 said that they did not like politics at all because of widespread political corruption and poor political education.

It also found that 53 percent of voters preferred a strong leader like former president Soeharto, even if this meant that rights and freedoms would be reduced.

About 58 percent of those who supported a stronger government at the expense of rights and freedom had an educational background of high school or more, the survey said.

Chaotic elections will dampen investment hopes

Antara - December 22, 2003

Palembang -- Indonesia will fail to attract any foreign direct investment (FDI) next year if chaos occurs in the general elections, prominent businessman Sofyan Wanandi said.

Foreign investors would then think that saving their money in banks was better than investing it, he told a seminar on creating harmonious industrial relations.

According to Wanandi, foreign investors would come back to Indonesia after all national agendas had been accomplished.

If economic growth in 2004 proved to be higher than this year, it would not be because of foreign investment but because of the 24 political parties that would participate in the elections, he said.

The parties would need goods like new cars and banners to be used in their campaigns.

Meanwhile, chairman of the South Sumatra chapter of the Indonesian Plantation Companies Association, Syamsir Syahbana, said the lack of foreign direct investment in the country might also have been caused by the absence of legal certainty.

Another factor was extra costs the businessmen must pay illegally in provinces, he said, adding that 14 regional government regulations in South Sumatra had created problems for investors.

13 parties mull forging coalition

Jakarta Post - December 22, 2003

Kurniawan Hari, Jakarta -- A group of 13 political parties, mostly Muslim-based, have agreed to form a coalition immediately after the legislative election on April 5 next year, one party leader confirmed.

However, political analyst Daniel Sparringa of Airlangga University in Surabaya expressed skepticism about such a coalition, saying the claim was merely a political ploy by the smaller parties to get attention.

Reform Star Party (PBR) chairman Zainuddin M.Z. said on Saturday that the coalition was established in a bid to prepare for the first direct presidential election scheduled for July 5, which requires parties to win at least 5 percent of the votes in order to field a candidate.

The 13 parties -- there are 24 eligible to run next year -- included the New Indonesia Alliance Party (PIB), the Freedom Bull National Party (PNBK), the Marhaenism Indonesian National Party (PNI Marhaenisme), the Pioneer Party (PP), the National Democracy Unity Party (PDK), the National Mandate Party (PAN), the United Development Party (PPP) and PBR.

PPP and PAN were involved in the 1999 election and gained 58 and 34 House of Representative seats respectively. All the other parties are newcomers.

Zainuddin said the agreement was reached during a post-Idul Fitri gathering a few days ago in Jakarta, in which the leaders of those 13 parties were all present.

He, however, acknowledged that the coalition would unavoidably confront the two largest parties, the Indonesian Democratic Party of Struggle (PDI Perjuangan) and the Golkar Party, which represent the nationalist forces.

PDI Perjuangan and Golkar secured 153 and 120 seats respectively of the 500 House seats in the 1999 election.

Separately, PPP chairman and the nation's Vice President Hamzah Haz said that a political coalition must not be aimed at blocking the candidacy of certain leaders.

"The most important thing in a coalition is to create similar visions, not to block certain leaders," he said after opening the 1st national meeting of the Islamic Defender's Front (FPI) here on Sunday.

Meanwhile, Daniel expressed doubt that such a coalition would really become a real alliance. According to him, the claim by Zainuddin and his small party was just political banter. "That is a ploy by the small parties to show their existence. It is simply political rhetoric," he told The Jakarta Post on Sunday.

Daniel said any discussions about a coalition would only be meaningful after the April 5 election. "Because each party will have a real idea of its political strength and that of its partners," he said.

A poll by the Indonesian Survey Institute (LSI) found that Muslim voters in Indonesia tend to favor moderate, pluralistic and democratic parties rather than those parties fighting for sharia law or an Islamic state.

Another survey found that the majority of voters would not take ideology into consideration when they choose their preferred political parties or presidential candidate next year.

The survey, conducted by Soegeng Sarjadi Syndicated (SSS), found that candidates with a "nationalist" orientation and "Islamic" candidates stood an equal chance of winning.

1732 civil servants still members of political parties

Kompas - December 27, 2003

Jakarta -- At least 1732 state civil servants from a number of departments are still members or heads of political parties. This violates Government Regulation Number 13/1999 on State Civil Servants which is an enhancement of Government Regulation Number 5/1999. According to the regulation, civil servants who become members or heads of political parties must resign as civil servants.

This [problem] was aired by the head of the Department of State Civil Servants, Hardijanto, in Jakarta on Tuesday December 23 after elaborating on the results of the re-registration of civil servants. Earlier, the State Minister for the Empowerment of State Bodies, Feisal Tamin, had requested that the Department of State Civil Servants dismiss civil servants in a number of departments who have become members or heads of political parties.

However when conformation on the matter was sought from Hardijanto, he admitted that up until this time not one civil servant who had joined a political party had been dismissed. "We do not have the authority to dismiss them. The party which has the right to dismiss civil servants is the official who promoted them, such as a governor or the home affairs minister, except where we get delegated [the authority] based on a presidential decree or there is legislation which regulates the matter", he said.

Hardijanto added that up until this time, the Department of State Civil Servants has only been reprimanding civil servants who have become members of political parties. "In the end we reminded all civil service bodies [that they must] dismiss their subordinates if they become members or leaders of political parties, [that was] on December 5. However, until now there has been no response", he said. (K10)

[Translated by James Balowski.]

Special rules needed to avoid complications in Aceh elections

Kompas - December 27, 2003

Jakarta -- There is concern that the organisation of the general elections in Aceh will face a number of serious complications because there are a number of contradictory legal stipulations which cannot be resolved in terms of laws which regulate a military emergency and those which regulate elections.

Didik Supriyanto, a member of the General Elections Monitoring Committee (Panwas), has urged the government and the People's Representative Assembly (DPR) to issue special legislation to regulate the organisation of elections in Aceh."A presidential decree is just not enough", he said.

Supriyanto said that the organisation of elections in Aceh under a military emergency was contradictory. On the one hand the military emergency in Aceh has gradually returned the situation to "normal" and made it possible for elections to be held. It would be almost impossible for elections to go ahead in Aceh if the military emergency was revoked. But [on the other hand] said Supriyanto, if the elections are held under a military emergency there are a number of stipulations on the organisation of elections which could be overridden by the emergency military commander.

In accordance with Law Number 23/1959 on a State of Emergency, the emergency military commander, has supreme authority. All civilian bodies and civil servants are obliged to obey the military commander. The emergency military commander has the right to limit the printing, distribution and authoring of pictures and writing, prohibit the movement of people and a number of other prohibitions which can hinder the implementation of an election campaign and voting.

Andi Widjajanto, a military observer from the University of Indonesia, admits that the authority of the national and regional emergency military commander is almost unlimited. With the stipulation that all government bodies and civil servants must obey the president [this probably erroneous and should read emergency military commander - JB], it will therefore be difficult for the General Elections Commission (KPU) and Panwas to work independently.

Unlike Supriyanto however, Widjajanto was of the view that it is enough to issue a presidential degree to exempt the KPU and Panwas at the national and local level from these stipulations so that they can still run the general elections in an independent manner.

"The elections and the election campaign can just be monitored by the emergency military commander", said Widjajanto.

Joint commitment

The secretary general of Path to Peace, Boedi Wilardjo, has proposed that the legal stipulations to regulate the organisation of elections in Aceh do not need to be in the form of legislation. What is most important said Wilardjo, is that there needs to be a joint commitment between the government, the KPU and other concerned parties to find a solution to the these contradictions in the legislation and technical regulations on the organisation of the elections in Aceh. "This commitment can be made and witnessed by members of the DPR", he said.

The elections in Aceh, continued Wilardjo, could become a political commodity. If less than 50 per cent of people vote this fact could become the basis for a campaign by the Free Aceh Movement to demonstrate the low level of people's support for the Indonesian government.

On the other hand, pro-democracy groups are also worried that the situation will compel the government to forcibly mobilise the Acehnese people to participate in the campaign and vote on the day of the elections.

Conflict resolution activist, Ichsan Malik, who has been involved in a number of workshops on organising elections in conflict areas, says that there is already a commitment from the military emergency commander to take an independent position and not intervene in the organisation of the elections in Aceh. But in reality, a number of mass organisation and election monitoring organisations who clearly support holding an election in Aceh are still experiencing difficulties obtaining permission from the military emergency commander to organise meetings.

According to Malik, a concern that has emerged among those involved in the elections is that the emergency situation will be used by specific political parties to assert their closeness with the military. (wis)

[Translated by James Balowski.]

Army will step in if the elections turn bloody

Kompas - December 23, 2003

Jakarta -- The TNI-AD (the army) sincerely hopes that the 2004 elections will proceed safely, smoothly and orderly. TNI-AD has no wish for the festival of democracy, which will be crucial in determining the course of the nation for at least the next five years, to turn bloody as a result of conflict between the children of the nation for the sake of the ambitions of certain groups. If this happens, TNI-AD will step in to prevent the disintegration of the nation as a result of disputes and loss of blood between the nation's people.

This was elaborated by TNI-AD chief of staff General Ryamizard Ryacudu in his speech as the ceremonial inspector on Juang Kartika day which was commemorated on a large scale in Jakarta on Monday December 22.

Speaking to journalists after the ceremony which involved around 15,000 troops- including 10 raider battalions which have just been inaugurated- he reiterated his statement on the deployment of TNI-AD if the 2004 elections turn bloody.

"The elections are a festival of democracy and it will be safeguarded by the people themselves. If [however] it tends towards a disruption to security and public order, the police will be deployed and we will assist the police. But if there is an intent to divide the nation, if there are human rights violations and killing, the military must also be deployed. The military does not want this country to become divided and [people] to start killing each other", said Ryacudu.

When asked if the involvement and deployment of the army if the 2004 election turn bloody also includes the possibility of seizing power (a coup d'eta), Ryacudu explained that it would not. "Itwon't go that far. It's not like that. TNI-AD has no [such] aspirations. What's all this about a take over. That's just the talk of people who want to bring down the military. There's nothing like that going on", said Ryacudu in a shrill voice.

In relation to the elections, in his speech Ryacudu reminded all army officers to maintain their neutrality."We do not want the festival of democracy to turn bloody where there is a clash between the nation's children for the sake of the ambitions of certain groups. I remind all TNI-AD officers to stay neutral. Don't stain TNI-AD's [image] by not being neutral in the elections", he said.

Responding to Ryacudu's statement, political observer Edy Prasetyono from the Centre for Strategic and International Studies (CSIS) said that there are two things which could be meant by the army chief's statement, which he referred to as that political statement. Firstly, the substance of the statement. Secondly, the connotation of the political statement.

"In terms of its substance, the concern that the 2004 elections will turn bloody cannot be ignored even though the possibly of this [happening] is extremely small. We must understand thenderstand this statement", said Prasetyono who was contacted overnight.

Possibility of coup d'eta small

Because the small possibility that the 2004 elections will tern bloody as disclosed by Ryacudu, Prasetyono is absolutely certain that the military will not carry out a coup d'eta or seize power because the cost would be too high.

"Moreover the military cannot ignore international pressure if a coupd'eta is carried out. The public are also still traumatised by the past when the military dominated [the country]. The possibility [of this happening] is extremely small because of this two pressures", he said.

Prasetyono said that although in terms of its substance the statement is quite proper, he questioned the connotations of the political statement issued by Ryacudu.

"This statement could create confusion within the TNI [armed forces] itself, which as a state institution is not permitted to enter into political territory. Should then political statements [such as this] be issued by an institution which according to legislation is not permitted to enter into political territory? Political statements of this kind should be issued by the political authority which makes use of the military as [one of] its institutions, not by the military [itself]", explained Prasetyono.

During the ceremony to commemorate Juang Kartika day which represents the founding and the birth of the TNI, TNI chief General Endriartono Sutarto failed to attend. National police chief General Da'I Bachtiar who was invited to the commemoration also did not attend.

Those who did attend were navy chief of staff Laksamana Bernard Kent Sondakh, airforce chief of staff Marsekal Chappy Hakim and almost all of the retired army chiefs of staff. This ceremony appears to have become a big event for TNI-AD to demonstrate its growing strength.

During the ceremony, the largest in the TNI's history, with great pride Ryacudu elaborated on the heroic event Palagan Ambarawa, which occurred on December 15, 1945, which is now commemorated as Juang Kartika day.

"At that time, the [founding president of Indonesia] Sukarno was in jail, the government was paralysed, and [the former colonial power] Holland and its military threatened to return to power in Indonesia. The TNI, under the leadership of General Soedirman demonstrated its existence heroically. With elementary weaponry, the TNI together with ordinary people were able to resist the attack and maintain the integrity of the nation and state", he explained.

Learning from the Palangan Ambarawa incident, Ryacudu explained that there is no longer any need for a dichotomy between the public and the military. What exists is a unity of the TNI and the people which must be conserved forever. "There is an imperative to build the unity of the TNI and the people. That is the spirit of TNI-AD . Separating TNI-AD from the people is an effort to bring down the nation and the state", he said.

Ten raider battalions

On this occasion, Ryacudu also officiated the formation of 10 raider battalions which are going to be deployed at a number of regional military commands (Kodam). The formation of the 10 raider battalions, who have three times the capacity of an infantry battalion, represents the implementation and desire on the part of TNI-AD to build up its forces. According to Ryacudu, the policy to form these battalions which are being prepared to confront a protracted war represents a mandate [of the nation].

"This country must maintain its existence. I [want to] explain that the formation of these 10 raider battalions represents an urgent need to take preventative measures and actions against the country's enemies. The raider battalions have been readied to conduct a protracted war against aggressor states. [Furthermore,] TNI-AD is capable of funding the formation of these special troops itself, with out assistance from other states", he said.

The formation of these special troops on such a large scale represents a strategy by TNI-AD to overcome the weakness of the modern armaments which TNI-AD currently has."These represent the largest [single formation] of special troops in the world. Of course it [may seem to be] too many, but they are needed to compensate for our armed forces which have been left behind by the militaries of foreign states", he elaborated.

For their first assignment, three raider battalions will be immediately sent to Aceh to participate in the military operation. According to plans, these three battalions will depart for Aceh next week to replace troops which have already finished there tour of duty in Aceh.

The ten raider battalions which have been formed are Infantry Battalion (Yonif) Kodam I Bukit Barisan (100 troops), Yonif Kodam II Sriwijaya (200 troops), Yonif Kodam III Siliwangi (300 troops), Yonif Kodam IV Diponegoro (400 troops), Yonif Kodam V Brawijaya (500 troops), Yonif Kodam VI Tanjungpura (600 troops), Yonif Kodam VII Wirabuana (700 troops), Yonif Kodam IX Udayana (900 troops), Yonif 13/1/Kostrad (323 troops) and Yonif 6/2/Kostrad (412 troops). (INU)

[Translated by James Balowski]

Corruption/collusion/nepotism

Megawati approves establishments of KPK, KPI

Jakarta Post - December 27, 2003

Fabiola Desy Unidjaja and Muninggar Sri Saraswati, Jakarta -- President Megawati Soekarnoputri signed on Friday two decrees, one on the Corruption Eradication Commission (KPK) and another on the Indonesian Broadcasting Commission (KPI), allowing the new institutions to commence their work.

"The president signed the decrees today," Erman Radjagukguk, deputy secretary of the Cabinet Secretary, told The Jakarta Post on Friday.

Through the Presidential Decree on KPK, Megawati installed five commission members recently elected by the House of Representatives. The five -- Taufiequrachman Ruki, Amien Sunaryadi, Sjahruddin Rasul, Tumpak Hatorangan Panggabean and Erry Riyana Hardjapamekas -- will serve a four-year term from 2003 to 2007.

At the same time, the President endorsed the nine elected members of the KPI -- Victor Menayang, Sasa Djuarsa Sendjaja, Andrik Purwasito, Ilya R. Sunarwinadi, Ade Armando, Amelia Hezkasari Day, S. Sinansari Ecip, Bimo Nugroho Sekundatmo and Dedi Iskandar Muda.

They will be in their posts for three years from 2003 to 2006. Under the existing law, the KPI plays an important role in monitoring and maintaining the quality standard of broadcasting.

Law No. 30/2002 on KPK required the commission to be established by December 27, one year after its enactment. However, Megawati is not scheduled to swear in the five members of the KPK on Saturday.

Normally, such official institutions are inaugurated by the President immediately after the issuance of its decree. Erry, a KPK member, confirmed that he and his four colleagues had received no invitations for an official ceremony to mark the establishment of their commission. "But such a ceremony is not important to us," he said.

Asep Rahmat Fajar of the Judiciary Observer Coalition, a non- governmental organization, commented that the president should install the KPK members to inform the public about the legal existence of the commission, tasked with combating the nation's rampant corruption. "It might be only a ceremony, but it is very important to let the public know about the government's seriousness about fighting corruption," he said.

Public skepticism grew over the future KPK's function and efficiency after House Commission II for legal and home affairs voted against several preferred candidates, including Marsillam Simanjuntak and Bambang Widjojanto. Doubts increased after the House elected Ruki, a retired police officer, to head the commission.

Analysts have also questioned why Commission II had elected Panggabean as a KPK member, as he had failed the integrity test conducted by the same team for a Supreme Court justice slot early this year.

Ruki asked the people not to underestimate his selection and vowed not to hesitate in investigating and prosecuting high- ranking state officials, including police and prosecutors, accused of graft.

The KPK is dubbed a "super body", as it is vested with the authority to charge and prosecute suspected corrupters, powers currently held by the National Police and state prosecutors.

The commission is also empowered to take over corruption cases from police and prosecutors. Only those corruption cases involving at least Rp 1 billion (US$117,647) in financial losses come under the jurisdiction of the KPK.

Corruption has become widespread among all levels of government -- central and regional, as well as throughout the civil service corps -- during the reform era following the fall of authoritarian leader Soeharto in 1998. Many have taken this to be a sign that the reform movement had failed, saying that at least under Soeharto, corruption was restricted to the uppermost echelon.

Indonesia was recently ranked a low 60 out of a total 102 countries surveyed by the World Economic Forum in terms of business competitiveness. According to the forum, rampant corruption and ineffective bureaucracy were the two decisive factors behind the country's low business competitiveness index.

The survey by Berlin-based Transparency International (TI) also ranked Indonesia as the sixth most corrupt country in the world with a Corruption Perception Index of 1.9, with the highest -- or cleanest -- score being 10.

Parties yet to report source of their funds

Jakarta Post - December 24, 2003

Moch. N. Kurniawan, Jakarta -- The commitment of political parties that will contest next year's elections to transparency is in doubt as they remain reluctant to disclose the source of their initial campaign funds to the General Elections Commission (KPU), a week after the deadline.

KPU deputy chairman Ramlan Surbakti said all the 24 parties had submitted the bank accounts where they keep their campaign funds, but only eight had informed the KPU of the initial amount of the funds.

Ramlan identified the parties that had informed the KPU of the initial campaign funds in their accounts as follows: The Marhaenisme Indonesian National Party (PNI Marhaenisme), the Socialists Democratic Labor Party (PBSD), Crescent Star Party (PBB), the United Development Party (PPP), the United Democratic Nationhood Party (PPDK), the Democratic Party, the Indonesian Democratic Vanguard Party (PPDI) and the Indonesian Nahdlatul Community Party (PPNUI).

Two parties, the Prosperous Justice Party (PKS) and the Reform Star Party (PBR) that had submitted more than one account must decide to use only one account.

Based on the Election Law, a party must separate the party's account and its campaign fund account.

Ramlan said the KPU would send letters to those parties to remind the parties of their responsibility to disclose the source of their campaign funds as mandated by law.

"That information is important to detect the flow of the campaign funds of a party, which is subject to audit by public accountants," he said. But he admitted the KPU could not do anything about the parties' refusal to reveal the source of campaign funds as according to the Election Law the request is not binding. Observers have criticized the law for not encouraging transparency and accountability.

Separately, chairman of the Maluku Regional Elections Commission (KPUD) Tatuhey Jusuf Idrus said six major political parties had threatened not to submit their lists of candidates for the provincial legislature following the House of Representatives' failure to amend the Election Law.

Chairman of Papua KPUD Ferry Kareth said major parties in Papua were also disappointed but dismissed any move to disrupt the election schedule.

KPU has allocated Maluku, Papua and North Sulawesi fewer seats in the 2004 elections than in 1999 as they have to share their seats with the new provinces that used to be part of them.

Maluku will have four House seats at stake, down from six in 1999, Papua 10 from 13 and North Sulawesi six from seven.

Parties account balance

1. Marhaenisme Indonesian National Party (PNI Marhaenisme) Rp 1.5 million

2. Socialists' Democratic Labor Party (PBSD) Rp 1 million

3. Crescent Star Party (PBB) Rp 5 million

4. Freedom Party no report

5. United Development Party (PPP) Rp 1 million

6. United Democratic Nationhood Party (PPDK) Rp 2 million

7. New Indonesia Alliance Party (PPIB) no report

8. Freedom Bull National Party (PNBK) no report

9. Democratic Party Rp 5 million

10. Indonesian Justice and Unity Party (PKP Indonesia) no report

11. Indonesian Democratic Vanguard Party (PPDI) Rp 1 million

12. Indonesian Nahdlatul Community Party (PPNUI) Rp 2 million

13. National Mandate Party (PAN) no report

14. Concern for the Nation Functional Party (PKPB) no report

15. National Awakening Party (PKB) no report 16. Prosperous Justice Party (PKS) no report

17. Reform Star Party (PBR) no report

18. Indonesian Democratic Party of Struggle (PDI-P)no report

19. Prosperous Peace Party (PDS) no report

20. Golkar Party no report

21. Pancasila Patriots' Party Rp 2 million

22. Indonesian Unity Party (PSI) no report

23. Regional United Party (PPD) no report

24. Pioneers' Party no report

New scandal worth 200 billion rupiah hits BRI

Jakarta Post - December 24, 2003

Abdul Khalik, Jakarta -- The National Police announced on Tuesday another financial scandal at Bank Rakyat Indonesia (BRI) involving Rp 200 billion (US$23.5 million) from the workers insurance fund, PT Jamsostek.

The alleged fraud emerged as investigations into another fraud case involving Rp 294 billion at the same bank by the Jakarta prosecutor's office entered its third month.

"There were transfers of Rp 200 billion from a PT Jamsostek account at the BRI Sudirman branch to an account at the Bank Mandiri's Prapatan branch. The police have found convincing evidence that this transfer was based on fake documents," said the Deputy Chief of Public Relations Division Brig. Gen. Soenarko.

Soenarko declined to name the owner of the Mandiri account but revealed that it had belonged to a third party, not BRI or PT Jamsostek.

Police questioned BRI President Director Rudjito on Tuesday to figure out who was responsible for the authorization to transfer the funds. "We are questioning Rudjito as a witness regarding the necessary documents needed in such a process as well as who would have had the authority to make such a transfer," said Soenarko.

He added that the police had already scheduled to question nine other people from both BRI and PT Jamsostek.

An investigator from the National Police Corruption crime division, Sr. Coms. N. Wardhana, said that the investigation was based on a complaint from the public, filed on October 30. He added that the police had questioned eight people from BRI and PT Jamsostek since then.

"We have asked Rudjito dozens of questions in the last four hours. Including him, we have questioned eight people. Tomorrow we will question one more witness from BRI. However, we can't examine the account in Mandiri before until we get permission from Bank Indonesia," said Wardhana.

"We have to wait for the BI permission to be able to know the total amount of money in Bank Mandiri. Having access to the account, we can determine the state's loss in the scandal," said Wardhana.

Rudjito deliberately avoided the press while leaving the police station and hurriedly went to the his car after the questioning. BRI corporate secretary Yadi Prayitno said that he would represent Rudjito to answer reporters' questions.

"This interrogation has nothing to do with the Senen branch fraud. Rudjito has been questioned about what authority he had over the Sudirman branch in the transfer," said Yadi.

The Jakarta prosecutor's office is currently investigating a financial scam worth Rp 294 billion involving BRI's three branches -- Senen, Tanah Abang and Bogor.

The two cases have a similarity in that both involved a third party and fake documents to reap money from the bank. Both also involved PT Jamsostek funds.

Marwan Effendy, the assistant to the Jakarta Prosecutor's Office chief for special crimes, said on Tuesday that they had questioned the president director of PT Jamsostek over the loss of the company's funds in the scandal, but did not elaborate.

The prosecutor's office has declared three officials from BRI branches and two businessmen as suspects as well as questioned over 20 witnesses and frozen more than 30 accounts. They have also recovered Rp 60 billion in state money.

The prosecutors had also found Rp 2 billion of the fraud funds at Citibank, and planned to place those funds in the same account as the Rp 60 billion at the BRI Senen branch.

Local & community issues

Hundreds of traditional fishermen in Barus lose livelihood

Antara - December 28, 2003

Barus -- Starvation has begun to threaten some 140 traditional fishermen in Pasar Tarandam village, Barus subdistrict, Tapteng district, North Sumatra, because of the presence of Thai trawlers in their district's sea.

"We, local fishermen, can no longer catch big fishes as Thai trawlers operating in the waters off our district often shoot at us. Consequently, we cannot catch any fish unless we venture into the ocean far from the coast," T. Pohan, a local fisherman, said here on Saturday. Pohan said he and his friends had recently been to sea for one whole week but they failed to catch any fish and felt disappointed.

Human rights/law

Political party interests stifle bill debates

Jakarta Post - December 26, 2003

Kurniawan Hari, Jakarta -- Despite their pledge to fight for the aspirations of the public at large, legislators in the House of Representatives continue to display a willingness to betray their constituents in order to further their own interests.

During a commission meeting to discuss the presidential election bill in May, for example, Ahmad Hafiz Zawawi from Golkar insisted that presidential candidates must possess strong intellectual capabilities measured through educational diplomas. "If the candidates only have high school education diplomas, they should be disqualified," Ahmad said.

Although he did not mention any names, it was easy to guess that the Golkar legislator was trying to erect a legal barrier for incumbent President Megawati Soekarnoputri, who holds a high school diploma only.

Surveys and polls conducted so far all say that Megawati, despite her falling popularity and lackluster performance, remains the strongest presidential candidate for the 2004 election, ahead of Golkar chairman Akbar Tandjung.

It was not at all surprising, therefore, that Ahmad's suggestion drew strong objections from legislators from Megawati's Indonesian Democratic Party of Struggle (PDI-P), who argued that a university diploma was not everything.

"We all know that university diplomas have become a commodity. It will be better if we demand morality and intellectuality rather than certificates," PDI-P legislator J.E. Sahetapi said.

Some PDI-P legislators retaliated by insisting that anyone convicted of any crime cannot run for president.

Akbar, who is also Speaker of the House of Representatives (DPR), has been sentenced to three years in jail for his role in a Rp 40 billion financial scandal involving the State Logistics Agency (Bulog). He remains free pending an appeal to the Supreme Court.

As for small parties, their main concern was how they could field presidential candidates without necessarily fulfilling the requirement on minimum votes gained in the legislative election.

The original draft of the bill stated that only political parties or coalitions of parties with at least 20 percent of the vote (or 15 percent of the seats in the House) would be allowed to nominate presidential candidates.

It was easy, therefore, to predict the outcome of the deliberation. When the House endorsed the final draft, which later became the presidential election law, the bill allowed high school graduates and convicted criminals with jail sentences less than five years to run for the country's highest post.

Small parties also got what they wanted. The new law stipulates that parties that garner at least 3 percent of the vote in the legislative election may nominate a presidential candidate. For parties that do not meet the electoral threshold, they could form a coalition that accounts for at least 5 percent of the total vote in order to field a candidate.

In the end, Megawati, who did not finish her university studies, and Akbar, who was sentenced to a three-year jail term, may contest Indonesia's first ever direct presidential election in 2004.

Megawati, with her PDI-P, and Akbar, with his Golkar, were clearly the winners of the bill deliberation, while the people, who had hoped the bill would lay the foundations for the birth of strong and clean national leaders, were left out in the cold.

Concerning campaign funds, factions in the House also agreed not to limit the maximum amount of campaign funds of presidential candidates, making it impossible for auditors to monitor the spending of each candidates.

According to political analyst J. Kristiadi of the Center for Strategic and International Studies (CSIS), crucial laws are often built on negotiations among political parties. As such, the laws cater to the needs and interests of political parties and the elite, not the people at large.

Big parties like PDI-P, the United Development Party (PPP), the National Awakening Party (PKB), the National Mandate Party (PAN) and Golkar play pivotal roles in the negotiations. The fact that some groups in society have already demanded the Constitutional Court review some laws shortly after they were endorsed proves that the House and the government fail to accommodate the aspirations of the vast majority.

The Indonesian Television Journalists Association (IJTI), for example, has requested the Constitutional Court review the broadcasting law, which was endorsed at the end of 2002.

The move was taken after the House insisted on endorsing the bill despite rejection from elements in society. Up until now, President Megawati has not enacted the bill. Nevertheless, the bill automatically became a law 30 days after it was endorsed.

The newly established Constitutional Court is now in the process of reviewing at least 32 laws, which the people consider to have flaws and do not accommodate the people's interests.

Currently under review are, among others, laws on regional autonomy, elections, commission for corruption eradication, electricity and manpower.

A survey conducted recently by the Center for the Study of Development and Democracy (CESDA) shows that most respondents did not trust politicians. They are of the opinion that the politicians often put their own interests above those of their constituents.

The comprehensive survey also revealed that most respondents were disappointed with the performance of the House. CESDA senior researcher Imam Ahmad said the survey was further proof the House was not performing.

The survey also revealed that the public think lawmakers had failed to address strategic problems faced by the people such as cheap education, health service, food supply and unemployment and had given little attention to cases of corruption and human rights abuses.

People's perception of the House

1. House fights for people's interest - 13 percent

2. House prioritizes political interest - 50 percent

3. Lawmakers fight for personal interest 33 percent

4. No opinion 4 percent

Source: CESDA

Laws favor capital owners, ignor public: LBH

Jakarta Post - December 24, 2003

Urip Hudiono, Jakarta -- The Jakarta Legal Aid Institute (LBH Jakarta) criticized the House of Representatives for producing legislation that served the interests of capital owners more than the general public.

"We are particularly concerned about the legislation on workers' rights and the privatization of natural resources," the LBH Jakarta's director Uli Parulian Sihombing told a year-end conference.

Four laws highlighted by the institute in its review were Law No. 13/2003 on manpower, Law No. 19/2003 on state-owned enterprises, Law No. 25/2003 on money laundering and Laws No. 15/2003 and 16/2003 on terrorism.

The institute's research coordinator Asfinawati said the contents of Law No. 13/2003 on manpower, which was passed on March 25, could prevent workers from demanding their reasonable rights from employers.

A strike, for example, which represents an effort by workers to put pressure on the company to start negotiations, can now only be organized after negotiations fail, according to the law.

The regulations on outsourcing and subcontracting are also seen as weakening the position of workers, as the jobs which are to be outsourced and subcontracted are determined solely by a company.

Asfinawati also criticized Law No. 19/2003 on state-owned enterprises, which was endorsed on June 19, for justifying the pursuit of profits by state-owned enterprises, including through their privatization, but neglecting what Asfinawati claimed was their main duty, namely, providing public services.

The institution said Law No. 25/2003 on money laundering and the two antiterrorism laws reflected Indonesia's powerlessness as these laws were drafted and passed as the result of global pressure, which the institution claimed could threaten civil rights.

The LBH Jakarta also warned of prejudice to the interests of the general public if the House passed the bills on water resources, plantations and fishing. The three bills, the institute said, open up the possibility of privatization of natural resources, further isolating people from their land and disrupting traditional industries.

The LBH Jakarta also lashed out at Law No.18/2003 on the advocates profession, which requires all practicing advocates to obtain a license issued by the Indonesian Advocates Working Committee (KKAI) if they wished to provide legal services.

"The law will only make it more difficult for the poor to obtain legal aid," said the institute's deputy director for general affairs, Erna Ratnaningsih, referring to the fact that many legal aid foundation staff, who usually provided free legal assistance, did not possess practicing lawyers' licenses.

Though the law stipulates licensed advocates will have to dedicate part of their time to pro bono work, the LBH Jakarta doubted this would work, and further criticized the KKAI for imposing a costly "verification fee" on those who wanted to obtain a license.

The LBH Jakarta currently has only six licensed advocates, while its three other staff members and many of its volunteers are only paralegals.

Rights violation cannot be separated from military control

Kompas - December 23, 2003

Jakarta - Human rights violations perpetrated in 2003 cannot be separated from military control, particularly the army. The government of President Megawati Sukarnoputri has not worked as hard as its predecessors, like [former presidents] B.J. Habibie and Abdurrahman Wahid to control the TNI [Indonesian armed forces].

This was the essence of the 2003 human rights report by the Indonesian Legal Aid and Human Rights Association (PBHI) which was presented by its chairperson, Hendardi, on Monday December 22.

PBHI made the assessment that the Megawati regime indeed appears to be controlled by the power of the TNI. For example, in bring into force the status of a military emergency in Aceh, reducing the function of the civil authorities in the Maluku islands, raising the level of conflict in West Papua and the conflict in Poso in Central Sulawasi, the promulgation of the anti-terrorism law and it revisions to increase the role of the military, the draft law on the TNI which provides an opportunity for the mobilisation of troops [without prior approval of the president], the draft law on intelligence which threatens the rights of suspects along with an increase in political discourse which is dominated by elements of the military.

According to Hendardi, the ad hoc trials for East Timor also failed to convict those who were responsible for crimes against humanity(1). A [successful] result by the Human Rights Investigation Commission on the Trisakti-Semanggi(2) was also discouraged by the People's Representative Assembly because it was "considered" not to be a gross human rights violation.

PBHI explained that the government of Megawati and Vice-President Hamzah Haz had truly failed to fulfill the obligation to respect, protect and uphold human rights in Indonesia. Throughout 2003, there was a series of incidents which violated and negated human rights.

Meanwhile the Jakarta Legal Aid Foundation (LBH) end of year report noted that the products and practices of law in Indonesia are increasingly serving the forces of neoliberalism.

"This is marked by the expansion of a number of cases of unilateral and arbitrary dismissals along with an increase in land evictions of the urban poor throughout 2003", said LBH Jakarta vice-chairperson Mulyadi Goce.

Mulyadi said that the state is increasingly powerless in confronting neoliberal forces. Moreover, though its political elite, the state has begun to serve the forces of multinational capital. (VIN/wis)

Notes

1. Pro-Jakarta militias organised and backed by the Indonesian armed forces launched a massive campaign of terror and intimidation before the vote on August 30, 1999, and a revenge campaign after East Timorese voted overwhelmingly to split from Indonesia. At least 1000 East Timorese are estimated to have died, 90 per cent of the country's infrastructure was destroyed and some 250,000 people were forced to abandon their homes and become refugees in West Timor.

2. Trisakti/Semanggi - In May 1998, security personnel shot into a crowd of student protesters from the Trisakti University near their campus in West Jakarta, killing four students and injuring several. This proved to be the spark which set-off three days of mass demonstrations and rioting in Jakarta which eventually lead to the overthrow of former President Suharto. The Semanggi I and II cases involved the fatal shooting of dozens of student demonstrators in Jakarta in November 1998 and September 1999 respectively.

[Translated by James Balowski.]

Focus on Jakarta

Evictions to carry over into 2004

Jakarta Post - December 27, 2003

Evi Mariani, Jakarta -- More than 2,500 families will be evicted from their houses along Jl. Tanah Merah, Rawa Badak subdistrict, North Jakarta, and Pinang Ranti subdistrict, East Jakarta, in January.

Taheri Noor, deputy chairman of the monitoring sub-commission at the National Commission of Human Rights (Komnas HAM), said on Wednesday that prior to the eviction, Komnas HAM and related institutions had had meetings to discuss ways to prevent any gross violations of human rights in the process of the evictions.

"We will have more meetings on December 29 to discuss the eviction plans in both areas," he said.

The land on Jl. Tanah Merah is owned by state oil company PT Pertamina. During the economic crisis that hit the country in mid 1997, Pertamina allowed people in the neighborhood to grow vegetables on the land. With time, the farmland gradually changed into squatter housing.

"We have to discuss the eviction process very carefully because the area, occupied by the squatters, is within Pertamina's Plumpang fuel depot," Taheri said. "Security is of paramount concerns here." Around 2,400 families will have to leave the land.

Taheri said that Pertamina wanted to clear the land to secure the fuel supply in the capital. Jakarta receives fuel from Balongan refinery, West Java, through container ships berthed in a special harbor in Tanjung Priok, North Jakarta. The fuel is later kept in the Plumpang fuel depot. Any conflict occurring near the depot could cause a halt in the fuel supply throughout the city.

Komnas HAM has invited officials from Pertamina, the Office of the Coordinating Minister for Political and Security Affairs, the Office of the Coordinating Minister for People's Welfare, the National Land Agency (BPN) and the Ministry of Settlement and Regional Infrastructure to attend the December 29 meeting.

The land in Pinang Ranti is said to be owned by the Jakarta Military District Command. A total of 111 families currently occupy the land. "There is a plan to build a hospital on the land to replace a hospital in Kramat area which has to move," Taheri said.

Komnas HAM has invited the squatters' lawyers, officials from the Jakarta Military District Command and the BPN to a meeting to discuss the eviction. "Komnas HAM will be mediating in the meeting to help the negotiation between the various parties," he said. Komnas HAM had held three meetings before on the eviction plan.

The meetings were the result of last month's meeting between Komnas HAM and Governor Sutiyoso to discuss the concept of "more humane evictions". The city administration has been slammed for its intensive evictions this year, which have left more than 5,000 families homeless.

Water rate hike in January despite protests

Jakarta Post - December 27, 2003

Bambang Nurbianto, Jakarta -- After much debate and public criticism since November over a 30 percent tap water rate hike proposed by the city administration, councillors have decided that Jakartans will kick off the new year with an increased water bill.

"I have been informed by an official at the administration that City Council has approved the proposal for the tap water rate hike," Achmad Lanti, chairman of the City Water Regulatory Body, told The Jakarta Post on Friday. He said, however, that he had not yet received a copy of the council's letter of approval.

Achmad reaffirmed a statement made on Wednesday by City Council speaker Agung Imam Sumanto that the council had approved the proposal submitted by the administration on November 10.

Agung stressed that his staff had sent the letter of approval to Governor Sutiyoso, but could not provide details on the new rate.

Earlier, chairman of the council's Commission D for development affairs, Koeswadi Soesilohardjo, had said the new rate would meet the demands of the city administration.

Sutiyoso's proposal for the 30 percent hike was made in an effort to meet the demands of city tap water operator PD PAM Jaya and its two foreign partners: PT Thames PAM Jaya (TPJ) and PT PAM Lyonnaise Jaya (Palyja).

The proposal explains that 17 percent of the increase would be used to pay off PD PAM Jaya's Rp 900 billion (US$105.88 million) debt to the partners and the remaining 13 percent to cover inflation and the two foreign firms' operational costs.

The debt is a cumulative result of the commutative difference between water fees paid by customers and water charges paid by PD PAM Jaya to its foreign partners since 1998.

With the approved hike, PD PAM Jaya will repay 24 percent of its debt, or Rp 237.59 billion, to TPJ and Palyja next year.

PD PAM Jaya has already raised the water rate by 18 percent in February 1998, by 35 percent in April 2001 and by 40 percent in April 2003.

The hike has been strongly opposed by consumers, consumer protection activists and a number of councillors.

Two factions in City Council -- the National Mandate Party (PAN) and the Justice Party -- have openly opposed the decision, which was taken by the council's leaders.

The factions argued that the water operators had failed to improve services and efficiency, with frequently disrupted supply, poor water quality and a 45 percent water leakage rate.

When the hike takes effect in 2004, poor customers will be the first to be affected, even though it is proposed that the rate for poor customers be increased from Rp 375 per cubic meter to Rp 500 or Rp 650 per cubic meter.

Such an increase will still affect an individual like Sumadi, 40, a street vendor at Palmerah market, whose daily income is between Rp 25,000 and Rp 50,000. He pays around Rp 25,000 monthly for water.

"Of course, it will be an added burden if I have to pay more for water next year," said Sumadi, who lives in a rented house with his wife and two children in Grogol Utara, South Jakarta.

New three-in-one policy to go on trial today

Jakarta Post - December 24, 2003

Tony Hotland, Jakarta -- The tryout of the new extended three-in-one traffic policy to support the Jakarta busway project is set to start on Wednesday despite strong objections from Jakartans, who say the new policy is unlikely to work any better than the old policy.

The new policy requires private cars to carry at least three passengers when traveling along the busway corridor from Blok M, South Jakarta, to Kota, West Jakarta, from 7 a.m. to 10 a.m. and from 4 p.m. to 7 p.m. "There's no way that we can satisfy everyone. It will take sacrifice, especially from private car owners, for the sake of the public interest. People will get used to it," Governor Sutiyoso said on Tuesday when making the announcement.

Previously, he said he wanted to see the three-in-one policy extended even longer -- from 6:30 a.m to 8 p.m.

The three-in-one policy was first introduced in 1993 to ease traffic congestion, but efforts were quickly made to circumvent it, including the emergence of the joki phenomenon (people offering to ride as passengers for a small fee).

The policy has been applied to date from 6:30 a.m to 10 a.m. along Jl. Jend. Sudirman, Jl. M.H. Thamrin and Jl. Jend. Gatot Subroto. These streets are also covered by the new policy.

The new three-in-one tryout period will last for 30 days starting Wednesday but no law enforcement measures will be taken as the Jakarta administration says it wants to familiarize the public with the new policy first.

"We'll deploy more police officers to observe how it is being complied with. We'll also fix facilities such as traffic signs, and distribute leaflets on the new policy," said the chief of the Jakarta Police's traffic division, Sr. Comr. Sulistyo Ishak.

He said that motorists would still be allowed to drive alone after 10 a.m. during the tryout period, although this would also depend on traffic conditions.

"If the traffic is severely congested, drivers violating the policy during the tryout period will be rerouted. But there will be no legal action taken against them," he told The Jakarta Post.

The policy does not apply to motorcycles and public transportation vehicles, or on public holidays and weekends.

Many Jakartans fear that the new policy will end up producing more traffic jams and joki, instead of improving traffic flows.

They claim that the new policy will only shift the congestion to other areas as motorists will have four alternative routes to avoid the three-in-one zone.

Sulistyo said that he would clear the joki and vendors from the streets, and take action against pedestrians who boarded buses or crossed the street at unauthorized places.

Governor Sutiyoso also reiterated that his administration would launch the busway project on Jan. 15, unless unexpected problems arose or the facilities were not ready on time.

"This [busway] is a part of a long-term project. We're going to revolutionize the public transportation system here. Let's accept the traffic congestion as a sacrifice we have to put up with so as to bring about meaningful improvements.

"I myself will even take the busway if I get trapped in a traffic jam somewhere. There's no room for pride here," he promised.

He rejected the idea of barring cars with certain license plate numbers from entering the city center on certain days, saying that it would take at least six months to make the necessary preparations.

News & issues

Haz warns people not to idealize life under New Order

Antara - December 28, 2003

Jepara -- Vice President Hamzah Haz has called on the people not to be carried away by the notion that the New Order era was a much better time because, he said, the regime's mistakes in development had plunged the country into the present prolonged crisis.

"Never long for a return to the seemingly better life under the New Order when it was easier to get a job or money. Our present misery is a consquence of the past regime's mistakes in development," he said at a function to mark the anniversary of the Nahdlatul Ulema (NU) here on Saturday.

He added the ongoing crisis in the country was the result of the mistakes made by the New Order era during its 32-year long rule.

Power crisis getting worse, darker than ever

Jakarta Post - December 27, 2003

Fitri Wulandari, Jakarta -- The power crisis, which started several years ago, became worse this year and the problem is likely to continue haunting the nation in upcoming years.

If, in recent years, rotating blackouts mostly occurred on the remote islands outside of the Java-Bali grid, where electricity has always been scarce, this year the blackouts became a reality for those living on Java and Bali as well, the country's most densely populated islands and the centers of business, tourism and government.

In May, power shortages hit the Java-Bali grid when four large power plants had to stop operations for overdue maintenance. State-owned power firm PT Perusahaan Listrik Negara (PLN) had to start doing rotating blackouts on the two islands as the maintenance work reduced the capacity of the system by 700 megawatts (MW).

A particularly long dry season and drought exacerbated the problem as hydropower plants on the islands could only work at around half of their capacity for several months as reservoirs and rivers dropped to unprecedented levels. At the peak of the drought, power supply was reduced by between 900 to 1,000 MW.

Power problems started to hit the capital city of Jakarta as well. Many fear that a major power outage such as the one that occurred on the North American east coast in August this year could hit the capital at any time.

The crisis forced the government to put on hold overhauls of power plants, buy captive power from private companies and launch an energy-saving campaign.

The World Bank warned that if the power crisis continued, it would undermine the country's modest economic growth rate.

"If Indonesia's growth were to take off in earnest again, it would quickly run into major bottlenecks in infrastructure, notably power," the bank said in its report released 11 months ago.

It would affect all parts of the economy, particularly small businesses, as, unlike the large ones, they would not be able to afford to build their own power reserves, the Bank said.

The power crisis did not come without a warning. Following the government's decision to cancel and/or postpone most major power projects in the wake of the financial crisis in 1997, many warned that the nation would have to deal with a major power crisis once it started to recover from the economic crisis and power demand increased.

The prediction came true as several areas started experiencing power shortages as early as 2001.

PLN data shows that in the first quarter of 2003, power demand grew by 6.3 percent or nearly double the country's growth of gross domestic product (GDP) and higher than PLN's own projection of 4.17 percent.

While the demand is increasing rapidly, supply remains stagnant.

The nation's total installed capacity at present stands at 22,000 MW. The Java-Bali grid takes the largest bite of that with installed capacity of 18,661 MW or around 80 percent of the total installed capacity for some 60 percent of the country's population. The remaining 3,339 MW capacity is distributed across the thousands of other islands across the archipelago.

Of the 18,661 MW installed capacity in Java-Bali system, PLN can only supply between 13,305 to 15,254 MW as the remaining capacity is used for PLN's own operations or must undergo routine, rotating maintenance. As the peak load ranges between 12,000 MW an 13,250 MW, it leaves a minimum operational reserve of between 143 to 1,427 MW.

Ideally, the system needs a minimum reserve of over 615 MW or as high as one large power plant to be adequately prepared for any disruption at one power plant.

PLN acknowledged that the Java-Bali power grid now operates with an overly thin reserve.

"Our reserve has been depleted. Consequently, if we can't meet the minimum standby reserve, we will go into alert mode," PLN's President Eddie Widiono said.

Making up for the shortfall is unlikely to happen in the near future.

The newest power plant project that will go on stream is the Muara Tawar power plant in Bekasi, West Java which is expected to generate an additional 700 MW. The project is due to be completed in June 2004.

However, in 2003, the government managed to renegotiate power purchase agreements with 26 independent power producers (IPP) who own a combined 10,000 MW power projects worth US$15.1 billion. The projects were suspended after the economic crisis in 1997 and caused lengthy disputes between PLN and the power producers.

Most of the projects have been relaunched but none of them is expected to become operation any time soon. Among the projects which immediately started construction after being relaunched by the government is the 1,329-MW Tanjung Jati B power plant in Central Java. The power plant's first unit is set be operational some time in 2006.

PLN has repeatedly said that in order to provide enough power supply to support GDP growth, PLN needs some $5 billion of new investment for the period between 2002 to 2006 and another $28.5 for the 10 years after that.

PLN can only expect funds from external sources to cover the investment as it is still struggling to recover from financial problems caused by the financial crisis. The sharp rise in the dollar dealt a heavy blow to the firm as it sells its electricity in rupiah, while it pays 70 percent of its expenses in US dollars.

Since 1998, the company has remained in the red except in 2001 when it made a relatively small net profit of Rp 180 billion. But in 2002, the company was in the red again, posting a net loss of Rp 6.06 trillion.

The lack of financing is cited as the reason for PLN's increase power rates that it passes on to customers. The government permitted the firm to increase prices on quarterly basis starting in early 2002 until 2005 when the average rate is expected to reach 7 US cents (about Rp 600) per kilowatt-hour (KwH) and allowed the power firm to reap a profit. However, in October of this year, the government nixed its regular power rate increase in order to prevent massive social unrest ahead of next year's general election.

Power rates, at present, are Rp 574 per KwH or 6.79 US cents based on the exchanging rate of Rp 8,500 per the US dollar.

The company said the current rate was still too low to attract foreign investors, who might otherwise be interested in building power plants in the country. Especially, since pre-1997 rates were already at 7 cents per kWh.

However, the increase in the power rates sparked protests from the public. Most people have blamed PLN's losses on the firm's inefficiency and corruption.

Non-government organizations (NGOs) that deal with corruption issues said that the power crisis could have been completely averted if the company ran their facilities and managed the peak in an efficient, honest manner.

They also blamed PLN's high costs on its failed fuel management. The firm uses fuel oil instead of natural gas in many of its power plants. Not only is fuel oil more expensive than natural gas, it also cuts a power plants' lifespan.

PLN spends Rp 15 trillion annually to buy fuel oil and Rp 5 trillion for natural gas.

PLN has acknowledged that by using natural gas, the company could save between Rp 8 trillion to Rp 10 trillion (nearly $1.2 billion) in overall expenses each year.

While there is no immediate plan to prevent a major nationwide power calamity, the government has gone ahead with the liberalization of the power sector in accordance with the Electricity Law No. 20/2002. The spin-off of various business units of PLN in late November was an initial step to start that process.

If the liberalization goes as planned, the Java-Bali power grid will be open for competition for any company, foreign or domestic, to invest in various power projects from power transmission and generation to sales.

While supporters of liberalization say the natural economic competition will promote transparency and lead to lower power rates, opponents warn that the end-user prices will soar after liberalization.

60,000 foreign agents enter Indonesia to weaken TNI - Ryacudu

Detik.com - December 25, 2003

M. Rizal Maslan, Jakarta -- Army chief Ryamizard Ryacudu has again said that at least 60,000 foreign agents have entered Indonesia. According to Ryacudu, these foreign agents are linked with a modern war plan to weaken the role of the TNI (armed forces) and to play people off against each other.

This was revealed by Ryacudu to journalists at the Military Seaborne Command in Tanjung Priok, North Jakarta, on Thursday December 25, after seeing off three Raider Battalions which will leave for Aceh.

"This [infiltration of foreign parties -- ed] is already significant. You know this don't you? Sixty thousand foreign agents are already here", said Ryacudu when asked about the suspicion that there are large foreign countries which according to Ryacudu are threatening the existence of Indonesia.

The army chief's statement has been thrown up several times and on a number of occasions, the latest being when he was inspecting troops at the army's commemoration of Kartika Struggle Day in Kemayoran, Central Jakarta, on Monday December 22 and at the graduation ceremony of 67 retiring army officers in Magelang, Central Java.

According to Ryacudu, the presence of foreign agents in Indonesia is a modern war which is being carried out by aggressor countries. Unfortunately, Ryacudu did not want to mention which countries were meant by this.

When asked about the source of the information on the foreign agents, Ryacudu explained that the information was obtained from intelligence reports which he has. As a result he said he certainly knows more about it than anyone else because of the strength of the intelligence data.

"There is not need to talk about where it came from. It is an intelligence report", he explained while refusing to mention who [the agents are] or which countries he meant.

At this opportunity, Ryacudu also explained the number of foreign agents which have inflated [the country] was calculated from the total number [of foreigners] who are in Indonesia. And he added, they also used various methods to enter Indonesia. "But the context is clear, it represents a form of modern warfare", he said.

He explained that the colonialism which is being carried out by large countries at the moment no longer priorities armed force. The concept which is being implemented at the moment is through the concept of pragmatic colonialism, forming resistance cells, along with playing people off against each other to cause dissent. He therefore asked all elements of the nation to be united. (zal)

[Translated by James Balowski.]

Issue of foreign agents an effort to create tension - Munir

Detik.com - December 26, 2003

Rizal Maslan, Jakarta -- Indonesian Human Rights Watch director, Munir, has said that the statement by army chief General Ryamizard Ryacudu that 60,000 foreign agents have entered Indonesia in order to weaken the military represents an endeavour to create new tensions. This could also damage foreign diplomatic relations.

"I believe this represents and endeavour to create tension by introducing a situation or dramatising the situation. First there was the issue of the elections which [he said may] turn bloody, that the elections will be thwarted [by unspecified groups], now [Ryacudu has] added [to this by claiming that] there are 60 thousand foreign agents [who have infiltrated Indonesia to play people off against each other and create dissent]. This is represents [an effort to] create tension in society", explained Munir to Detik.com on Friday December 26.

According to Munir, Ryacudu's statement may have a hidden agenda, that is the goal of creating new institutions by means of legitimising the need new institutions under the control of the army. Munir gave the example of the plan to rebuild the territorial commands, the issue of the [military's] budget, including efforts at political bargaining [by the military to be given more power].

"This will indeed complicate the issue, even more so by saying that 60 thousand foreign intelligence agents have entered Indonesia. How has [he] identified them. If [he] knows [about their presence] why have they not been deported", said the former coordinator of the Commission for Missing Persons and Victims of Violence.

Indeed with statements like this added Munir, it will only complicate Indonesia's foreign relations. This issue must be clarified in a clear and open manner. If there are really foreign agents who have entered Indonesia, moreover if this has reached the tens of thousands, how are they going to be caught.

In fact, a majority of foreign embassies and certainly Indonesia itself naturally place agents or foreigners to make reports. This according to Munir is natural in diplomatic relations.

"Now, this must be straightened out, such as what are the activities of these foreign agents who were referred to by the army chief", said Munir.

Munir himself hoped that the political actors in Indonesia would not be influenced by statements like this. Indeed the civilian political elite must correct Ryacudu's statement.

"Indeed, this kind of statement gives the impression that the armed forces want to reenter politics or that there is a desire to extend marshal law to other areas [in addition to Aceh] and certainly there is the motive of [reasserting the military's] power. The political actors [in Indonesia] must criticize this issue", explained Munir (zal).

[Translated by James Balowski.]

Researcher warns of possiblility of revolution in 2004

Antara - December 23, 2003

Jakarta -- A researcher said here on Monday that a revolution could break out if conflicts occur between anti-democracy and reform forces in next year's general elections.

"A revolution could happen because the gap between reality and public expectations is too wide," Ikrar Nusabakti from the Indonesian Institute of Sciences (LIPI) said at a seminar to make year-end reflections.

He said the presence of old figures considered anti-reform could increase the possibility of a revolution.

Army blast from past: Beware 'foreign parties'

Jakarta Post - December 23, 2003

Muninggar Sri Saraswati, Jakarta -- Army chief Gen. Ryamizard Ryacudu called on the people on Monday not to promote a civilian-military dichotomy, arguing that such a division was part of a foreign scenario to destroy the country.

"No more civilian-military dichotomy, as it will weaken the military whose strength rests on cooperation with the people. The military and the people are one," Ryamizard said in his speech marking the Army's anniversary on Monday.

The celebration was attended by Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono, Navy chief Adm. Bernard Kent Sondakh, Air Force chief Marshall Chappy Hakim, military spokesman Maj. Gen. Sjafrie Sjamsoeddin and several former Army chiefs such as Agum Gumelar, Raden Hartono, Try Sutrisno and Edy Sudrajat.

Ryamizard argued that "foreign parties" expected to weaken the performance of the military of several developing countries, including Indonesia. He declined to name the "foreign parties". He said Indonesia's strategic location and its abundant natural resources were the main reasons "foreign parties" would invade Indonesia.

"The military is the backbone of the country's defense. If the military is separated from the people, it will be powerless. That's what they want," Ryamizard said.

He believed that the growing discourses on the civilian-military dichotomy was a "foreign infiltration" tactic of modern war.

"A modern war does not deploy military forces in its initial stages. The military forces enter if the condition [of the targeted country] is chaotic," Ryamizard said, adding that the Indonesian Military would not let such a thing happen.

Therefore, he said, the Army proudly announced the establishment of 10 companies of the Raider special battalion in a bid to increase its performance. "We have insufficient weaponry, but we have quality troops. We are on a par now [with foreign countries whose military forces are equipped with modern weaponry]," he remarked.

The Raider units were inaugurated on Monday, and comprise 8,000 troops equipped with SS1-VI guns -- a new and modified model of Pindad-made SS1 guns specially designed for the Raiders. Pindad is the acronym for the national Army Industrial Affairs Center, which also manufactures military-issue weaponry.

Ryamizard explained that the Raider battalion was set up to be a mobile unit of the Army able to carry out antiterrorist campaigns and active combat in wars.

Despite Ryamizard's speech, which highlighted the Army's concerns about a possible foreign invasion, the first assignment for the Raiders was the war in Aceh, where the Free Aceh Movement (GAM) has been fighting for independence since 1976. Over 10,000 people have been killed in the decades since then.

The Army's anniversary is called Juang Kartika day, and falls on December 15, and traditionally marks the December 1945 war between the Gen. Soedirman's People's Security Army (TKR) against the Dutch-British coalition troops in Ambarawa, Central Java.

The TKR expelled the coalition troops from Ambarawa during the three-day war from December 12 to December 15, 1945, even though the TKR was poorly equipped against the foreign forces. The TKR is considered the origin of the Indonesian Army.

Chinese-Indonesians want discrimination abolished

Jakarta Post - December 22, 2003

Urip Hudiono, Jakarta -- With the elections fast approaching, Indonesians of Chinese origin have set conditions for legislative and presidential candidates to win their support, namely the ending of all discriminatory policies and regulations.

"We will support candidates who work to abolish the excessive number of permits and licenses imposed on us," said Agus Susanto, the caretaker of a Confucian temple in Glodok, West Jakarta, over the weekend.

Indonesia will hold a legislative election in April 2004, and direct presidential election in July 2004. A total of 24 political parties have been declared eligible to contest the legislative election.

Agus was referring to the controversial Certificate of Citizenship (SBKRI) required of Indonesians of ethnic Chinese origin.

Although the SBKRI has been officially abolished, it is still required of Indonesians of ethnic Chinese origin if they want to obtain identity cards, passports, and registration forms to enter state-owned universities.

Aside from ensnaring people in complex bureaucracy, the SBKRI also imposes a financial burden for Indonesians of ethnic Chinese origin due to the high prices, sometimes millions of rupiah, they have to pay to obtain the certificate.

Chinese-Indonesians are also required to state ethnicity in their birth certificates, something that other ethnic groups are not required to do.

Since Confucianism, the traditional religion for many Indonesians of ethnic Chinese origin, has not been recognized by the state, there have also been cases of Chinese-Indonesian marriages not being registered by the Civil Registration Office, with children from these marriages simply considered to have been born out of wedlock.

"We were born here, work here, live here and blend in well with other ethnics here. So why are we still treated differently? I really hope the next government sincerely addresses this issue," said Rina Komala, a doctor living in Kota.

Skepticism over the commitment of candidates to fulfilling their promises, however, remains high among Chinese-Indonesians.

"That's politics. Politicians say one thing and then forget about it. What can we do?" Agus said exasperatedly.

Meanwhile, political apathy was shown by Irwan Kurnia, an electronics vendor in Glodok, though he said that he would still cast his vote in the upcoming elections.

"I don't really know about politics. I just hope the elections will run smoothly and things will get better afterwards," said Irwan Kurnia.

During a discussion organized by the Tionghoa Indonesian Association (Inti) on Friday, many Chinese Indonesians attending the event enthusiastically asked panelists Bara Hasibuan, Faisol Reza and Benny Susetyo whether they should support candidates with a military background, since they were seen as being more capable in ensuring security and stability in the country.

Responding to the question, Bara Hasibuan, a former National Mandate Party (PAN) activist now active in the Preparatory Committee for the Indonesian Movement (KPPI), pointed to the May 1998 mayhem had targeted Chinese Indonesians.

"Where was the military then? They were too busy with their own power struggles that they forgot their responsibility to ensuring the security of the nation, and, in this particular case, the security of Chinese-Indonesians," he said.

Faisol Reza, former leader of the Democratic People's Party (PRD), warned that though military figures portrayed themselves as being capable of ensuring security and stability in the country, "the military is still the military with all its authoritarian traits, which if given access to the nation's sociopolitical scene will pose a threat to democracy in the country."

Benny Susetyo from the Indonesian Bishops Conference (KWI) Crisis Center, meanwhile, proposed that the public closely scrutinize all legislative and presidential candidates, and black list those with bad track records. "Any candidate who appears to have been involved in corruption and human rights violations must be kept out and not voted for," he said.

Chinese-Indonesians account for around 3 percent of the country's 215 million population but control a big percentage of the country's economy.

The threat to women: When decision makers play deaf

Jakarta Post - December 22, 2003

Jacqueline Mackenzie, Jakarta -- Gadis Arivia is the Executive Director of Yayasan Jurnal Perempuan (YJP, Women's Journal Foundation), which initiated the Suara Ibu Peduli (Voice of Concerned Mothers), among the crucial movements capitalizing on the early days of the economic crisis to raise people's political awareness. Gadis is stepping down at the end of this month after eight years on the job. Following is an excerpt from an interview, published in conjunction with the country's commemoration of Women's Day, which falls on December 22.

Question: In your eight years as Executive Director, what do you count among YJP's biggest achievements?

Answer: One was publishing the first feminist journal in Indonesia, Jurnal Perempuan, in 1996. This journal opened up a whole new horizon for women's issues in Indonesia.

The journal gave space for women to express their opinions on a variety of topics. The bimonthly journal covers lots of issues -- violence against women, women and health, women and politics, trafficking in women, women in conflict areas and much more. We started with only 200 copies, but circulation now is around 5,000 copies.

Because YJP believes information empowers women, we also started a radio program in 1999. It's a weekly 15-minute women's program now aired on 160 radio stations across Indonesia, from Aceh to Papua, and covers news, features and interviews on women's issues. Radio Jurnal Perempuan has more than 3 million loyal listeners.

More recently, YJP started making video documentaries. Our latest production is Women and Children for Sale. The film was aired on almost all national TV stations. We try to capture the public's attention through every media -- print, audio and video.

How has the status of women in Indonesia changed so far?

A lot has changed since the New Order ended. Before 1997, there were only a few women's organizations. The discourse was restricted, women's organizations were only permitted to do charity work and the emphasis was more on shaping women in domestic issues, to be responsible only in the private sphere.

Women were not widely involved in politics. Many women's organizations back then did not dare to voice any political issues about women that might upset the government. Then, in February 1998, YJP organized the Suara Ibu Peduli demonstration on political, domestic issues like "down with the price of milk".

The aim of the rally was to bring down the regime. It attracted public attention and was able to "break the silence" on women's issues. Now there are over 200 women's organizations in Indonesia, all forging onward with different women's issues.

What are the greatest threats to the health and happiness of Indonesian women now?

The greatest threat is when all ears in the legislature and government go deaf, when all doors for debate are closed. Women's lives are, of course, affected by the government's decisions, but they seem to have few rights to participate in the debate or the decision-making process.

For instance, for many years now the NGOs have been fighting for a domestic violence law, trafficking law, a revised marriage law. These draft laws reached the legislature ages ago, but decisions still have not been made. Some say that laws are passed by the House only if they are "nutritious" -- meaning money politics. I cannot believe that it is so. If it is, then I am very sad. They have no idea how, every day, women and children are suffering because they are not protected by the law.

How do you see those issues developing?

Women are still behind because of the crisis, the patriarchy prevalent in Indonesia, the lack of law enforcement and the lack of political will. Women are behind in education, girls' enrollment in higher education has dropped, violence against women has increased by 25 percent, many migrant women workers are being exploited and raped, and maternal mortality is still the highest in the region.

When and if real improvements are made, will they come from the Indonesian government, or from international pressure or aid?

Real improvements can only be made through international pressure and aid. To be frank, most NGOs do a fantastic job in the field, but only because of international aid. I cannot imagine that YJP could do what it has been doing for eight years without international aid.

YJP made a big effort this year to get the government to do something about the issue of trafficking in women and children.

Have you been pleased with the response?

The response has been disappointing. The issue was considered a hot issue with the government for a while. Many projects were launched, mostly advocacy, but I think they were mostly to show the international aid community that it had spent their money well. The projects have not been effective; there have been no significant results.

This is mainly due of a lack of real understanding on the issue. But it's also due to the absence of law enforcement against those authorities -- not for the victims -- who give out false permits, fabricate documents and so on. Combating trafficking is about being brave in combating corruption ... it is about having the courage to face their own government officials, the bureaucrats who abuse their power.

How will women's issues feature in the upcoming elections?

I don't think women's issues will feature at all. Women will feature only as celebrities, as the "flowers" of the election. Instead of real debate, we'll most likely hear celebrity gossip about these women -- how they look or dress.

Men don't take women seriously in political parties because they don't really consider them partners in their work, sharing a mission and vision. They just take women to use them, to display their female body on the podium, not their feminist thinking.

How can Indonesia's women best help themselves in the immediate future?

Indonesian women are courageous, remarkable women. In every domain they are defeated, they have suffered, they are the poorest, the most uneducated and the lowest wage earners. But they are surviving.

They have been the ones at the forefront. During the economic crisis, they took low-paying jobs to keep their children fed and in school. In conflict areas, they are the ones trying to build reconciliation and peace. Under terrorism, they suffer for the long term, too. Women of Indonesia have contributed immensely to development, all the while helping themselves to rise above the status quo.

I hope that, eventually, providing solid information on these issues will -- as it must at some point -- lead to better policies that will lead to better results. If this comes about, then I will feel I have made a contribution.

Foreign agents in Indonesia more than 60,000: Juanda

Tempo Interactive - December 27, 2003

Jakarta -- The total number of foreign intelligence agents in Indonesia is far greater than the estimation given by the army chief of staff General Ryamizard Ryacudu who said that there are 60,000 people. This is because foreign agents come from those who have been recruited directly from foreign intelligence agencies and those recruited indirectly who but support the agenda of foreign countries.

"Ryacudu's estimate is a moderate one", said intelligence expert Juanda in Jakarta on Saturday December 27. According to Juanda, these foreign intelligence agents are recruited from overseas schools, non-government organisations and the foreign media. Of course these agents are conducting a number of activities, from defense and security, industrial interests to penetration of ideology and domination of culture. "The essential goal is to influence decision making and forms of thinking", said Juanda.

Juanda said that there is no need to worry about the presence of foreign agents in Indonesia who are recruited directly and indirectly from local people, consciously or unconsciously,"As long as they don't want to damage Indonesia".

[Translated by James Balowski.]

Environment

Orangutans in East Kalimantan on brink of extinction

Antara - December 25, 2003

Samarinda -- The orangutans (Pongo pygmaues) in East Kalimantan province are now on the brink of extinction, because rampant and expanding illegal logging in the province.

"The people's efforts in rescuing of orangutans and preserving the forests and their environment are facing many obstacles," coordinator of the East Kalimantan chapter of the Indonesian environmental forum, Syaifuddin said here Wednesday.

According to Syaifuddin, the condition of the forests in the province has been deteriorating, because the barren land caused by illegal logging has increased to 200,000 hectares each year, and the condition has brought the orangutans on the brink of extinction.

Officers protect, rare animal trade continues

Jakarta Post - December 24, 2003

A. Junaidi, Jakarta -- Many officers from the Indonesian Military (TNI) and police, as well as politicians and government officials are involved in the rare animal trade in the country, allowing the illicit practice to flourish, activists claim.

Speaking at a year-end press conference on Tuesday, Chairul Saleh of the Word Wildlife Fund for Nature (WWF) Indonesia and Harry Alexander of Wildlife Conservation Society (WCS) Indonesia Program called on the leaders of the TNI and police to reprimand officers found backing the trade in protected animals.

"Next year, we will meet leaders from the TNI and police to discuss this matter," said Chairul, the head of WWF's Policy and Trade division here.

Besides backing the trade in endangered animals, he said, lots of military and police officers had a habit of absconding with protected animals as souvenirs or pets after their tours of duty in certain areas of the country.

Chairul said that hundreds of protected birds from North Maluku and Papua had been taken by Javanese officers before they returned home this year.

Harry Alexander agreed with Chairul and added that middle- and high-ranking officers often received rare animals as gifts when they got promoted to certain positions.

"We recently received a report that a military district chief in Kerinci regency, Jambi was given a baby bear when he was appointed this year. But when we went to check the following day, the bear had allegedly gone missing," said Harry, who is also coordinator of the Wildlife Crime Unit (WCU).

WCU is a coalition of several non-governmental organizations, including WCS Indonesia Program, Alas Indonesia and the Independent Journalist Alliance, as well as the Forestry Ministry's Natural Resource and Conservation Board.

Harry also said that WCU discovered this year that a local Golkar politician and member of the Bengkulu legislature, was involved in the protected animal trade. "The legislative member was arrested for selling the skin of a Sumatran Tiger. But we heard that the police are going to release him," Harry said.

He also said that WCU had noticed that a new method had developed for those into the selling of protected animals. He said businessmen often used old women as couriers to transport protected animals from Lampung to Jakarta by using state-run Damri bus company. "Cooperating with the police, we earlier arrested nine old women and seized hundreds of protected animals. But we finally released them since we took pity on them," he said.

He said that the women sold the protected animals, usually various primates and birds, to buyers in Jakarta for between Rp 50,000 (US$5.8) and Rp 150,000.

"If one woman transports 60 animals a week, the nine women can deliver 25,920 protected animals, taken from many areas in Sumatra, to Jakarta in a year and the total amount of the transactions can exceed Rp 2.5 billion," he says.

NGOs urge Australian firm to stop mining in Halmahera

Jakarta Post - December 24, 2003

Urip Hudiono, Jakarta -- The Coalition Against Forests for Mining and representatives of about 5,000 Kao and Malifut tribespeople of Halmahera island in North Maluku are demanding Australian company PT Nusa Halmahera Minerals (NHM) to immediately stop its open-pit mining in the protected forest of Toguraci.

The coalition, which includes environmental NGOs such as the Mining Advocacy Network (Jatam), the Indonesian Environmental Forum (Walhi) and the Indonesian Center for Environmental Law (ICEL), also demanded that PT NHM restore the 52 hectares of already destroyed forest area in Toguraci, and its now-depleted 32-hectare Gosowong site.

"The company's mining operations violates not only Law No. 41/2003 on forestry which bans mining in protected forest areas, but also the ancestral rights of local tribespeople," Jatam's national coordinator Siti Maimunah said on Tuesday.

As revealed by Jhon Djinimangele, a representative of the tribespeople, many locals have been intimidated and denied access to forest areas located near PT NHM's self-claimed site by soldiers and policemen hired by the company.

"We can no longer make a living by collecting fish and shrimp from the forest's rivers, as we now fear that they have been polluted by the company's waste," Jhon said, adding that he knew of one local who was still suffering from burns after bathing in one of the rivers, that they suspect has been polluted.

The lack of benefits of the company's presence for local community development was also denounced by Ikono Djambak, another representative who once worked for PT NHM. Ikono complained that the company had done virtually nothing in the way of providing facilities such as schools or health clinics.

Surprisingly, the reasoning used to get a special operating permit on May 9 from the Ministry of Forestry was to prevent lay-offs, so they could continue and even expand mining operations in the protected forest of Toguraci, as its Gosowong site which was opened in 1992 has been depleted.

The Toguraci site is estimated to contain 360,000 ounces of gold reserves. The permit, signed by Minister of Forestry M. Prakosa, was even augmented by a similar permit issued by the Ministry of Energy and Mineral Resources, dated May 22 and signed by the ministry's secretary general Djoko Darmono.

PT NHM, however, has continued its mining operations even to this day. State-owned mining company PT Aneka Tambang owns 17.5 percent of the PT NHM's shares.

Law enforcement weak, forest destruction worsens: WWF

Jakarta Post - December 23, 2003

A. Junaidi, Jakarta -- Heightened illegal logging activities and poor law enforcement worsened forest destruction across the country in 2003, a noted non-governmental organization said in its year-end review on Monday.

"Forest destruction has worsened if we compare it with last year," World Wide Fund for Nature (WWF) Indonesia senior policy advisor Agus Setyarso announced at a press conference.

Due to rampant illegal logging and ineffective legal action, Agus said, Sumatra has no more pristine forests, while Kalimantan and Papua will encounter a similar experience in the next three to four years.

"Among hundreds of forestry crimes reported to police this year, less than 50 cases were considered worth investigating. We predict less than 50 cases will be brought to court," he said.

According to Agus, a former lecturer at Gadjah Mada University's School of Forestry, forest destruction reaches 3.6 million hectares annually.

As of 2002, at least 23 million hectares of the country's 140 million hectares of forests had been destroyed.

He also said that local law enforcers and administration officials were under the control of businessmen involved in illegal logging, making it impossible for authorities to deal firmly with illegal loggers.

Besides involving state officials such as regents, police and prosecutors, Agus said, illegal loggers, locally called cukong, also hire local people to give the impression that their business benefits local people.

"Based on our latest study, the people become poorer. They change their job from a land manager to just a worker for illegal logging," Agus said.

Agus revealed that local people who in the past could find logs three kilometers from their homes now had to walk about 10 kilometers.

He said that in many areas, businessmen engaged in illegal logging created new social problems despite the fact that they provided basic needs for their workers. One such problem is the appearance of brothels.

"Nature has reacted to this severe situation with several disasters such as massive flooding and landslides. Flooding has occurred in places that never saw floods in the past," Agus said.

To wage war against illegal logging, Agus suggested a cooperation between environmental non-governmental organizations and the government to strengthen law enforcement.

He demanded the government take firm and fair legal action against administration elements found protecting illegal logging, to prevent more damage in the years to come.

WWF Indonesia's Global Development Alliance Manager Anwar supported the importance of cooperation among various institutions to fight illegal logging.

Anwar claimed that his organization had set up an alliance with international buyers and local producers to avoid the use of illegal logs.

"Last year, we delisted about 200 buyers among 800 buyers who were found buying products that used illegal logs. We hope in the future, the number of buyers and producers using legal logs will increase," he said. Last month, the Office of the State Minister of the Environment released a report titled The Indonesia State of Environment Report 2002 which shows the continuous damage to the environment.

The report, which was financed by the United Nations Environmental Program (UNEP), reveals, among other things, the increasing area of critical land as a result of the swelling population, rampant forest fires and illegal logging which cannot be addressed properly because of the complexity of the problem stemming from the extensive number of involved parties.

Islam/religion

Jakarta minister takes heat for haj bungle

Straits Times - December 26, 2003

Robert Go, Jakarta -- Indonesia's Religious Affairs Minister Said Agil Al Munawar is under fire after the government admitted errors and cancelled bookings for 30,000 Muslims who had registered to undertake the haj next month.

In September, Mr Munawar had announced that Saudi Arabia would take additional pilgrims from Indonesia, above the country's 205,000 existing allotment. It emerged later the number of approved pilgrims had not been changed. Several major Muslim organisations including the influential Indonesian Muslim Students Association (HMI) have held demonstrations in the past two weeks criticising Mr Munawar.

Some have demanded his resignation, a move the minister has flatly rejected. Watchdog and consumer groups have also entered the fray, with demands for the revamping of the entire system for the annual pilgrimage, a process which at this point is largely monopolised by Mr Munawar's ministry.

The announcement in September was great news for people like Mr Bustam Zahri, a 50-year-old trader from Central Java, who rushed to put down a full payment of $5,500 for the trip. He started making preparations.

But Mr Bustam and many others like him have become victims of bureaucratic bungling. Although public announcements about the cancellation for the 30,000 extra pilgrims started appearing in mid-December, he still has not officially and directly heard from the ministry.

'I paid money and got my hopes up. I told relatives I would be going. This is a big deal. But the minister was uncaring enough to tell us through a public broadcast that I can't go. He should resign from his job,' he said.

And it remains unclear whether he and the other would-be pilgrims would get their cash back, or whether the government will simply keep the money and assign them priority placements for the 2005 haj season.

Government officials told The Straits Times that Jakarta was still lobbying to get Saudi Arabia to take more pilgrims, and that was why no decision had been made on compensating the disappointed candidates.

Vice-President Hamzah Haz, himself a leader of a large Muslim- based party, has come out in Mr Munawar's defence, saying it is not the minister's fault that Saudi Arabia is 'being stubborn' about its quota to Indonesia.

But Parliamentary Speaker Akbar Tandjung said last weekend that Mr Munawar should have gotten confirmation from the Saudis before telling Indonesians that more of them could go to the haj.

But Mr Zaim Ukhrowi of the haj watchdog group Maslahat Haji, said Mr Munawar's ministry should not act as a travel agent for the Indonesians who go on the haj.

'If we privatise the process, costs would go down, and pilgrims would get much better flights and accommodation and other arrangements,' he said.

Indonesia has progressed in religious freedom: US

Jakarta Post - December 22, 2003

Jakarta -- Indonesia made progress in promoting respect for religious freedom, but in a number of cases the government failed to punish extremists responsible for murder and other crimes.

This was the view expressed in a yearend report on Indonesia issued by the United States, part of the International Religious Freedom Report 2003 released on Thursday. Covering the period of July 1 2002 to June 30 this year, it was compiled by the Bureau of Democracy, Human Rights and Labor under the Department of State.

"The government made considerable progress in some areas, such as reducing interreligious violence in the Maluku islands and Central Sulawesi, and arresting and prosecuting terrorists and religious extremists for carrying out religiously motivated attacks," the report said. "However, in several cases the government failed to hold religious extremists responsible for murder and other crimes."

The report was compiled in line with the US 1998 International Religious Freedom Act, which instructs the Secretary of State to submit such a report to Congress. The report's summary states that religious freedom is a "central tenet of US foreign policy." The Indoenesia report said that while the death toll fell particularly in the Maluku islands, localized incidents of interreligious violence continued in Maluku and Central Sulawesi.

In the promotion of religious freedom the progress cited was the "cracking down on terrorists and other extremists who carried out attacks in the name of religion".

"After members of Jamaah Islamiyah ["Islamic Community" or JI], a terrorist organization committed to the goal of creating an Islamic super-state in Southeast Asia, bombed two nightclubs in Bali on Oct. 12, 2002 ... the government aggressively tracked down and arrested at least 32 individuals." However there were "some setbacks for respect for religious freedom".

"The government did not prosecute Laskar Jihad members who had killed and terrorized Christians in the Malukus and Central Sulawesi, and allowed them to return to their homes, mostly in Java, without legal recriminations," the report said.

It cited the arrest of Laskar Jihad's chief, Jafar Umar Thalib, who was charged with inciting religious violence and two other relatively minor offenses. On January 30 he was acquitted.

The report noted that the government generally respects the provisions cited in the Constitution that provides "all persons the right to worship according to his or her own religion or belief". Yet there are "some restrictions on certain types of religious activity and on unrecognized religions," it said, citing difficulties in gaining identity cards among minorities.

On "notable advances in interreligious tolerance and cooperation" the report cited that "In the first half of 2003 many Muslims and Christians in Maluku and Central Sulawesi worked together to repair mosques and churches".

However, "Increasingly, hard-line religious groups used pressure, intimidation, or violence to silence those whose message they found offensive".

It cited that in August 2002, Majelis Mujahiddin Indonesia prompted a private television network to stop airing a commercial that featured the phrase "Colorful Islam," aimed at promoting tolerance and diversity. The group said the ad insulted Islam.

The report also pointed out that "Islamic hard-liners sometimes criticized, threatened, or attacked other Muslims who held a more moderate view of the faith".

There were "strong indications" that many attacks on entertainment sites such as nightclubs "were linked to extortion and kickback schemes, rather than to religious motives".

The report also noted efforts by some political parties to amend the Constitution to adopt sharia nationwide.

The proposal was voted down. However the approval by the People's Consultative Assembly to change the Constitution to include a mandate that the government increase "faith and piety" in education set the scene for a controversial education bill that was passed in June, the report said.

Armed forces/police

Army eyeing political comeback, says human rights group

Straits Times - December 27, 2003

Jakarta -- A warning by the Indonesian army's chief of staff that troops would be deployed if next year's general election turned into bloody chaos shows that the military wants to make a political comeback, says a human rights organisation.

General Ryamizard Ryacudu's comment, made during the army's anniversary celebration on Monday, was also part of an attempt to intimidate political parties contesting the election, Indonesian Legal Aid Foundation chief Munarman said.

"With the statement made during the army's full show of force, political parties would likely think twice before saying their candidates were against the military," he said.

During the event, the army showed off weapons and troops, including 8,000 soldiers from its newly-established battalions under the Raiders Unit.

"The statement is clearly out of place. Issues regarding the political situation and national security are the authority of the president and related ministers, not of operational military officers such as the army chief," said Mr Munarman.

He urged all national bodies, particularly the military, to remember and to stay committed to the consensus that the military must quit its socio-political role and focus on its security function.

Nor should the people be trapped by the military's stratagems in the elections, he said. They should vote for candidates who are committed to reform and democracy and have the courage to keep the military out of politics, he added.

Police reform: Of hermaphrodites and transvestites

Jakarta Post - December 26, 2003

Abdul Khalik, Jakarta -- A middle-aged lady carrying a stack of papers rushes into the National Police Headquarters' detective building, mumbling almost hysterically as bystanders try to understand.

After a while, the lady, introducing herself as Christina, 54, leaves the building murmuring even louder, saying that she does not know where else to go if the police ignore her complaint.

"My neighbor has been attacking my house for years. I have filed complaints since 1996 to the sub-district, district and city police but nothing has been done so far," she says with confused eyes looking around.

She then asks people around what she must do to protect herself from her neighbor.

"I can't stand it anymore. Today, my neighbor demolished the wall separating our houses," she says while showing copies of complaint letters she had filed to the police.

"Has anybody died? Have you given the police any 'financial incentive' when making the complaints?" one of the reporters seated in front of the building asks her. Christina looks to the reporter with a naive face, trying to understand the question.

Christina's case exemplifies the sluggish response by police, who often brag about being the servant and vanguard of the people, with regard to complaints filed by the public at large.

"Our surveys reveal that there is an increase in criminal cases but a decrease in the rate of cases completed this year compared to last year," Police Watch chairman Rashid H. Lubis tells The Jakarta Post.

The Surabaya police in East Java, for example, solve only one or two cases out of 30 cases reported every week, according to the survey. In Surakarta, with fewer cases reported, police can solve only one case on average each week.

This performance is reflected also in corruption cases at the national level. The State Audit Body (BPK) has reported 50 cases to the police but so far only 3 cases have gone to court this year.

Lubis also complains that crimes committed by police personnel have increased over the past year. According to the Police Watch survey, there were 200 cases per month, on average, in the first three months of 2003 compared to only 174 cases per month in 2002.

"The saddest thing is that there is an increase in crimes being committed by police officers in many areas across the country. For example, Jakarta police personnel have reportedly committed 234 criminal acts through the first 11 months of this year, an increase from 206 in all of last year," Lubis says.

The public's perception of the police, however, has tended to improve, thanks to their success in investigating the Bali bombings on October 12, 2002 and the JW Marriott Hotel attacks in Jakarta on August 5, 2003.

A poll by Kompas newspaper in June showed that the number of people who hold a good image about the police in terms of their behavior as professionals and the ability to handle cases increased to 41.2 percent in 2003 from 26.6 percent in 2002, while people who have a bad image of the institution decreased to 47.4 percent from 62.9 percent in 2002.

"We must acknowledge that the police have successfully solved several cases, especially high-profile terrorism cases in Bali and at the Marriott," says Lubis.

Police have arrested over 50 suspects in the two incidents, which have been blamed on the regional terrorist network Jamaah Islamiyah (JI). Police have so far arrested over 50 people for their alleged roles in the blasts that killed more 200 people and injured over 250,000 others. Three of the 30 suspects in the Bali bombing have been sentenced to death.

With their successful investigation into the Bali and Marriott attacks, public opinion on the professionalism of police also has moved to a favorable outlook to 39 percent from 19.3 percent last year.

Unfortunately, people's perception about the ability of police to handle corruption cases remains very low, with only 6 percent saying that police can resolve the cases properly down from over 10 percent last year.

Adrianus Meliala, a noted criminologist from the University of Indonesia, however, questioned the success of the police in tracking down members of JI terrorist network in the country, saying that police should be more concerned with crime prevention than crime solving.

"They should prevent crimes from taking place because this is more important than solving existing cases. Failing to do so leads to recurrences of many crimes," Adrianus says.

He stresses that terrorism cases and other unusual cases distract police from their regular task of serving and protecting the public as well as handling day-to-day complaints.

"Their successes have been achieved at the expense of their regular duty because with the existing personnel, funds and equipment police can't do their regular tasks properly," says Adrianus, who is also an advisor to National Police chief Gen. Da'i Bachtiar.

Adrianus, however, acknowledges that it is not realistic to put high expectations on the police force with the current limited funding.

"Only 30 percent of the police budget is provided by the State Budget. The remaining 70 percent have to be covered by other sources," he says.

According to Adrianus, budget constraints have pushed police to engage in illegal activities such as extortion, blackmail and sponsoring illicit activities. "Forget about a good police force if we can't solve the current problem of funding," Adrianus stresses.

Lubis suggests that local administrations allocate a certain amount of their budgets for police in their respective regencies. "The Depok city council has provided extra funding for the Depok police for two years now. Therefore, the council can ask police to secure areas based on people's need and they will respond," said Lubis.

He, however, warns that such cooperation -- in this country -- could lead to possible collusion between the police and the local government officials.

Funding is not the only problem the police have. A lack of external control and professionalism, including the old mentality and culture and inadequate capability, have been pinpointed as some of major problems faced by the country's police force.

"Most police personnel live with their old culture such as the habit to be served rather than serving and the rigid bottom-up style. These chronic habits die hard because they enjoy the habits," says Adrianus.

Meanwhile, Lubis stresses the importance of police personnel's expertise in doing their every day work, saying that the nine- month police training course is inadequate to produce qualified personnel.

"We can't expect to have ready-to-use personnel in nine months. In fact, they will interact with more educated members of the society. In addition, the current practice of giving only three bullets for each personnel to practice shooting is far from enough. Not surprisingly, many police personnel misfire or shoot innocent bystanders when an actual crime is taking place," says Lubis.

Successfully carrying out their daily duties is one thing, while controlling their other activities and preventing the law enforcers from breaking the law is another thing. As a result of that dilemma, Adrianus and Lubis agree that greater external control should be imposed on the police institution.

"The police are currently like hermaphrodites, in the sense that they do all the functions themselves, like planning, budgeting, executing and controlling their activities. Almost no public access and control of the institution is done by external agencies," says Adrianus.

He also says that the national government institutions like the President's office or the House are not able monitor the police effectively because they have insufficient data or knowledge about how the police work. According to Adrianus, other controlling parties such as non-governmental organizations and the press can only put a limited amount of pressure on them, but do not have any real power to affect the police's performance.

Adrianus stresses the importance of real reform within the police force to address the problems. He adds that the existing reform path currently underway by the police is far from adequate since there is no timeframe and no benchmarks to measure or assess the progress of such reforms. He also says that six years after the reformasi movement began, the police are still muddling through a slow transition.

"Reforms should deal with the structure and culture of the police as well as laws that regulate the police. Structural and regulatory reforms have been done quite well so far. They (police) should now focus on the cultural reform," says Adrianus.

Lubis and Adrianus, however, have different views on how to address the lack of external control of the police. Lubis is optimistic about the effectiveness of the planned Police Commission -- an independent body to supervise the police -- while Adrianus doubts it will be effective.

"Compared to other supervisory bodies such as the Anticorruption and Ombudsman Commissions, the planned Police Commission is a "transvestite" body because, in the end, it is just a dressed up advisory body that reports to the President," Adrianus argues.

Crimes committed by police by region in 2003

1. Jakarta 35 cases

2. North Sumatra 24 cases

3. East Java 13 cases

4. South Sumatra 12 cases

5. Central Java 11 cases

6. West Java 9 cases

7. Lampung 7 cases

8. South lawesi ses

9. South Kalimantan 6 cases

10. Central Sulawesi 6 cases

11. Bali 5 cases

12. Central Kalimantan 5 cases

13. West Nusa Tenggara 4 cases

14. West Sumatra 3 cases

15. Aceh 2 cases

16. East Nusa Tenggara 1 case

17. Southeast Sulawesi 1 case

18. Jambi 1 case

Total 151 cases

Crimes committed by category

1. Ligth assault 26 cases

2. Power abuse 20 cases

3. Heavy assault 18 cases

4. Crimes leading to death 14 cases

5. Drugs 13 cases

6. Crimes causing injuries 13 cases

7. Blackmailing 9 cases

8. Roberry 6 cases

9. Kidnapping 5 cases

10. Smuggling 5 cases

11. Damaging property 5 cases

12. Fraud 4 cases

13. Rape 3 cases

14. Bribery 3 cases

15. Undecency 3 cases

16. Gambling 2 cases

17. Guns 1 case

18. Others 19 cases

Source: Police Watch

Army told to improve accountability, skill

Jakarta Post - December 22, 2003

A'an Suryana, Jakarta -- The Army, which is the most dominant service within the ranks of the Indonesian Military (TNI), has been praised for keeping its distance from politics and better respecting human rights.

However, those virtues alone are not enough to improve the Army's tainted image, according to a military analyst. "In order to win the people's hearts, the corps has to improve its financial transparency and technical professionalism," Kusnanto Anggoro, a military analyst with the Center for Strategic and International Studies (CSIS), told The Jakarta Post on Sunday.

Kusnanto was interviewed to mark the Army's anniversary, which fell on December 15 but will be celebrated on Monday.

The lack of financial transparency, according to Kusnanto, is evident in the Army's budgetary procedures. The publicly released budget figures often do not reflect actual military expenditure, since extrabudgetary funds contribute significantly to military expenditure, he said.

Data obtained by the Post reveals that extrabudgetary funds were used, for example, to purchase a squadron of A-4 combat aircraft and four landing ship tanks (LSTs) in the late 1970s.

Some of the extrabudgetary funds are obtained from legitimate businesses, including hotels and airlines, run by seven foundations belonging to the Army. The businesses -- some 50 military-owned in all -- generate revenue and provide extra funds for the military to finance its operations and altogether improve the welfare of personnel, notably generals.

"But the problem is that there is no transparency in the use of the funds," said Kusnanto, who feared that the lack of transparency in the fund use could lead to corruption.

Besides the lack of financial transparency, low technical competence is another problem the Army has to deal with. Technical competence refers to the modern war machines the Army possesses as well as the ability of soldiers to win a war, Kusnanto said without going into detail.

Army Chief of Staff Gen. Ryamizard Ryacudu has expressed concern that the fatalities among his soldiers in the military operation in Nanggroe Aceh Darussalam were largely due to the low combat ability of his personnel.

In order to develop the combat ability of its personnel, the Army recently formed and trained 10 battalions of Raider combat troops, comprising 8,000 soldiers, who will be inducted on Monday.

Separately, former Army deputy chief Lt. Gen. (ret) Kiki Syahnakri acknowledged that the Army had not been financially transparent in the past, especially in regards to the running of its foundations, but he said that it had been rectified.

In order to minimize the possibility of the misuse of power and corruption, for example, the Army has prohibited the Army chief of staff from heading the foundations, with the position of leading the foundations being given to retired servicemen instead.

He said it would be very difficult to close the foundations' businesses, unless the government provided enough money for the Army to improve the welfare of its soldiers and cover its expenses for military operations.

He said the Army was in a transitional period. "At least the Army has promised in a white paper publicly released recently that one day it will refrain from business activities," he told the Post.

TNI's handling of internal security to be reexamined

Kompas - December 27, 2003

Kompas -- A reexamination, evaluation and refinement of People's Representative Assembly (MPR) Decree Number VI/MPR/1999 and MPR Decree Number VII/MPR/1999 is being carried out by the department of defense and members of the People's Representative Assembly (DPR). The division of duties which has created a dichotomy where the police force is responsible for internal security and the armed forces (TNI) confront external enemies is viewed as being inappropriate and erroneous. Coming out of this reexamination, in the future the TNI will be given the duty of handling internal problems in coordination with the police.

This issue was taken up by Major General Sudrajat, the Director General of the Strategic Defense from the Department of Defense, after transferring the post of Director General for Defense Potential from Laksamana Muda Bambang Murgianto to Marsekal Pertama Darmawan in Jakarta on Wednesday December 24.

"The issue of national security can no longer be classified [simply] as internal and external threats. The issue of national security must be handled jointly by the TNI and police. So, the dichotomy of the TNI having the duty of confronting external enemies and the police having the duty of safeguarding internal security is wrong. The issue of national security over the next 10 years will weigh [heavily on the side of] domestic security", said Sudrajat.

Socialisation

According to Sudrajat, the plan to give the duty of handling internal security to the TNI has already been socialised among a number of DPR members. With regard to this plan, according to Sudrajat a number of DPR members have the same view with regard to the need to evaluate the use of the security forces, both the TNI and the police.

"The dichotomy which has emerged on the division of internal and external security, flows from MPR Decree Number VI/MPR/1999 and MPR Decree Number VII/MPR/1999, Law Number 2/3003 on the National Police and Law Number 3/2001 on National Defense, [and] must be straightened out. We hope there will a synchronisation of the relationship between the TNI and police", he said by way of explanation.

When asked if the reexamination of this legislation will also touch on the possibility of again merging the police and the TNI(1), Sudrajat said that this was not yet known for certain. "Possibly not. But, we must have clarity on the function, position and jurisdiction of the duties of the TNI and the police", he said. (inu)

Notes

1. In August 2000, the government passed a series of laws formally separating the police from the military and giving the police the job of maintaining internal security and restricting the military (Tentara Nasional Indonesia, Indonesian National Armed Forces, TNI) to national defense. Prior to this, the police were part of the Indonesian Armed Forces (Angkatan Bersenjata Republic Indonesia, ABRI), which was made up of four wings: the army, navy, air-force and police.

[Translated by James Balowski.]

Economy & investment

Banking sector picks up, flaws remain

Jakarta Post - December 27, 2003

Dadan Wijaksana, Jakarta -- It has been six years since the banking sector started its restructuring efforts. Still, while improvement in its financial health is undeniable, certain flaws remain -- indicating that the recovery process is still a long way off.

On a year-to-year basis, key indicators to gauge the sector's financial health are improving and on par, or even better in some cases, than those posted by banks in other countries that were also hit by the economic crisis in the late 1990s.

At the same time, however, the discovery of two massive fraud cases at two state-owned banks is yet another blow to the sector, which is still struggling to get back on its feet.

Lending fraud cases in state-owned Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI), the nation's fourth and second largest banks respectively, have exposed weak internal controls in each bank, and a poor supervisory mechanism of Bank Indonesia -- two of the foremost reasons behind the sector's fall during the 1997-98 financial catastrophe.

Many say that it is only the government's blanket guarantee program that has prevented the sector -- or at least the two banks -- from being hit by a massive rush. Under this program, the government will cover all banks' public funds and other liabilities when they go bust.

The BNI case revolves around the disbursement of about Rp 1.7 trillion (about US$200 million) last year, in what was claimed to be export credit facilities to some exporters backed by fictitious letters of credit from foreign banks, which are not even BNI's foreign bank correspondents. As for BRI, which has earlier successfully launched its initial public offering, the case centered on irregular banking transactions involving Rp 300 billion.

The alleged scams only confirmed that Indonesia had so far learned little from the last banking crisis. As such is worrying, as it could mean that the sector is back to square one despite more than Rp 600 trillion worth of public funds injected by the government.

Of equal significance is that the fraudulent practices could weaken investor confidence in the sector, putting at risk the government's drive to sell its stake in a number of banks. In months to come, the majority stake in Bank Permata will be on sale while the auction of the controlling block in Bank Lippo has recently been relaunched.

Even if investors are not second-guessing their investment plans in Indonesia just because of the scams, they might try to take advantage of it by lowering their bidding prices, according to experts, thus hurting the cash-strapped state coffers.

Another major concern overshadowing the banking sector's performance this year was the slow growth in lending to the corporate sector, albeit aggressive moves by Bank Indonesia to reduce its benchmark interest rate.

According to the central bank's latest assessment, banks loans to corporations have been so far growing by less than 2 percent from last year, insufficient for the sector to play a significant part in generating higher economic growth.

"Banks loans need to grow at between 20 percent to 22 percent per annum to be able to push the economic growth to around 5 percent," Burhanuddin Abdullah, the central bank governor, said recently, citing various economic surveys.

In their defense, bankers have said the country's corporate sector remained risky, amid slow progress in the restructuring of corporate debts. Most banks are consequently focussing their loans more on consumers, which includes credits for individuals and small and medium-sized enterprises (SMEs), rather than on the real sector.

The slow lending activities were in contrast if compared to other indicators to measure a bank's financial health. Among other things, the sector has managed this year to improve its capital adequacy ratio (CAR) and non-performing loans (NPLs).

Loans are categorized as non-performing if the interest payments failed to be repaid in 90 days. CAR meanwhile measures a a comparison between a banks capital against risk-weighted assets, such as loans.

As of September, the average CAR level was around 23 percent -- higher than some 21 percent posted last year and way above the central bank's minimum requirement of 8 percent. Meanwhile, the average NPL ratio stood at 7 percent as compared to 12 percent in the same period last year.

According to data from the World Bank, CAR and NPL ratios of Indonesia's banking sector were no less impressive than banks in other crisis-hit nations such as Malaysia, Thailand, the Philippines and even South Korea.

Such improvement has partly contributed in attracting the interest of foreign investors on local banks, which resulted in a series of fairly successful sales in both the majority and minority stake in local banks.

This year, the sales of a controlling stake in Bank Danamon, Bank Niaga and Bank Internasional Indonesia (BII) have all been a success story. That adds to the more remarkable showing in the sales of minority stakes (through the initial public offering mechanism) in Bank Mandiri and BRI.

To this point, indeed progress has been made. It is up to the authority now whether or not the momentum would be maintained. To be sure, if the sector does not want to lose the interest of investors, steps are needed to ensure that banking scams similar to that of BRI and BNI would no longer occur.

Improving the corporate governance, intensifying surveillance systems, providing tougher screening process for bankers, are part of a must-do list of actions Bank Indonesia needs to undertake to speed up efforts and create a sound banking system.

There are also attempts by the central bank to help knock the banking sector into better financial shape, especially in the form of banks' prudential regulations. It plans to introduce a wider range of the Basel Accord II principles to help it help meet the international standard of best banking practices.

The success of such efforts would be crucial to maintain the momentum, accelerate the banking reform and thus restore confidence in the sector. It will also make the sector better equipped to enter yet another year of restructuring process and could probably end it on a high note.

Banking Indicators (trillion rupiah)

Indicator 2000 2001 2002 2003 (September)

Total assets: 1,030 1,098 1,112 1,130

Third party funds: 699.1 794.4 835.8 863.5

New loans: -- 56.8 51.7 43.9

NPLs (%): 18.8 12.1 10.5 7.9

Source: Bank Indonesia

Oil and gas investment expected to improve in 2004

Jakarta Post - December 26, 2003

Fitri Wulandari, Jakarta -- The government expects investment in oil and gas, as well as power sectors, to improve next year on the back of attractive oil and gas resources and the liberalization programs in the power sector.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government expects to sign 15 new oil and gas contracts next year.

"We are now in the process of offering ten new oil and gas acreages as well as processing the direct offering of five new oil and gas blocks," Purnomo said after installing new senior officials at the ministry on Wednesday.

This year, the government has awarded 16 contracts to oil and gas production sharing contractors, who pledged a total investment of around US$300 million.

Director general of oil and gas at the ministry Iin Arifin Takhyan said the country's oil and gas sector was still attractive because the country had huge resources which remained unexplored.

He said of the 60 hydrocarbon basins in the country, only 38 have been explored.

In the power sector, Purnomo said investment was expected to come from independent power producers in line with liberalization in the power sector in 2006.

Private participation in the power sector is expected to help increase power supplies to meet the rising demand. The country is struggling to tackle the looming power crisis caused by the rapid growth of power demand and the lack of new investment in power plants since the economic crisis in 1997.

Demand for electricity now grows at 7 percent annually, higher than the nation's gross domestic product (GDP) growth of about 4 percent.

Total installed capacity is around 21,000 megawatts (MW) with some 18,600 MW located in Java and Bali islands. State power firm PT PLN can only supply between 13,305 to 15,254 of the total capacity after its own use and maintenance, while the peak load could reach between 12,000 MW to 13,250 MW.

This leaves PLN with minimum operating reserves of 143 MW. Ideally, it should have minimum reserves of one big power plant with a capacity of about 600 MW. Herman Darnel Ibrahim, PLN's director of transmission and distribution, said that next year, the company would focus on upgrading its transmission network to improve power distribution to subscribers. PLN will spend Rp 2.8 trillion for the upgrading of transmission and Rp 3.1 trillion for the improvement of distribution.

"It aims to establish a secure power-supply system before Tanjung Jati B power plant commences operations in 2006," he said.

He was referring to the 1,300 megawatt power plant in Jepara, Central Java which will be rebuilt in the near future, after being abandoned for years due to the economic crisis.

PLN plans to have 1.5 million new subscribers in 2004, Herman said.

Purnomo added next year, the government would set up a regulatory body for the power market that would oversees power sales as stipulated by Electricity Law No. 20/2002.

"It aims to separate players and referee," Purnomo remarked.

The law promotes the liberalization of the power sector by scrapping PLN's monopoly and allowing private companies to invest in the sector.

Starting 2006, under the law, private companies will be allowed to generate power and sell their power directly to the public.

They will also be allowed to set up their own distribution and transmission networks in cooperation with the government or use the state-owned network now operated by PLN to supply their power.

Economy forecast to grow 4.2 percent in 2004

Antara - December 24, 2003

Jakarta -- Indonesia's economic growth rate in 2004 will increase to between 4.2 and 4.4 per cent despite the possibility of heightened tensions at home during the general and presidential elections, an economic research organization said.

"Although the economy will heat up next year, it will escape people's attention as it will be absorbed by political issues. But there will be a slight increase in economic growth compared to 2003," Imam Sugema, director of the Institute for Economic and Financial Development (Indef), said in a discussion on Indonesia's economic outlook in 2004.

The growth rate would be lower than the government's target of 4.5 per cent as key factors such as investment climate and export performance would still be far from satisfactory.

"The economic growth prediction of 4.4 per cent can be reached if the investment climate is improved. If not, growth may only reach 4.2 per cent," Imam said. But Indef also predicted a gloomy situation in the real sector in 2004.

The declining interest rate on BI certificates (SBI) which would be followed by declining bank interest rate had yet to prop up the sector.

"One factor that causes stagnation in the real sector is that banks' intermediary function has yet to recover," Imam said.

Banks would tend to extend loan to the consumption sector such as property and automotive rather than for investment and working capital, he added. On the rupiah's exchange rate, Imam said, it is expected to fluctuate slightly in a range below 9,000 level against the US dollar.

During 2003, the rupiah's exchange rate remained stable at 8,500 against the greenback.

"The rupiah's movements are much affected by (the movement of) three international currencies, namely the US dollar, Euro and Yen," Imam said.

Furthermore, Indef predicted that the most crucial problem for the government in 2004 would be the increasing unemployment rate due to industry's low capacity to absorb labor.

Imam said Indonesia would need seven per cent of economic growth to accommodate the number of workers which was increasing by two million people every year.

However, despite the unemployment problem, the country was expected to have reduced the number of poor people to below 18 per cent.

"But the number of poor people in 2004 is expected to reach 38.9 million, compared to 38.4 million in 2002," Imam said.

Meanwhile, an observer from Indef, Drajat H Wibowo, said Indonesia's economy in the next few years will depend on production sectors that had comparative advantages in the international market such as electronics, manufactures, and heavy metal products.

Drajat said the highest growth would be seen in the transport and telecommunication sectors, namely 7.8 per cent, followed by the utilities sector including electricity, water and gas at 6.7 per cent.

The trade sector during the period is expected to grow at 5.7 per cent, the financial sector 5.6 per cent, the processing industry 4.9 per cent, construction 4.4 per cent, services 2.2 per cent, agriculture 2.1 per cent and mining 1.5 per cent.

"The low growth in the mining sector will be due to the difficulties to get a license in addition to conflicts in some areas," Drajat said.

IBRA's recovery high, but risk remains

Jakarta Post - December 26, 2003

Dadan Wijaksana, Jakarta -- The Indonesian Bank Restructuring Agency (IBRA) has so far handed over Rp 26.1 trillion (about US$3.1 billion) to the state coffers from its assets sale programs this year, slightly exceeding the target of Rp 26 trillion.

Of the amount, Rp 22.4 trillion was in the form of cash, while bonds made up the remainder, IBRA chairman Syafruddin Temenggung said here on Wednesday. The figures mean that the agency, which will complete its five-and-a-half-year mandate to improve the country's banking sector at the end of February next year, has so far raked in Rp 163.2 trillion, from selling banks and distressed assets under its supervision.

IBRA was set up in 1998 and tasked to clean up the country's messy banking sector, which was saddled with massive bad debts following the 1997 financial crisis. In total, the agency took over Rp 600 trillion worth of assets from bankrupt or ailing banks.

The agency is mandated to restructure and sell the assets -- in the form of bank non-performing loans and fixed assets surrendered by indebted former bank owners -- to raise funds to help finance the state budget, which is heavily burdened by the huge costs of bailing out troubled banks.

However, the task of contributing funds to the annual budget has limited the agency's ability to fully restructure the assets, forcing it, in many cases, to sell them without a proper restructuring process, according to analysts.

Not only has this led to IBRA'S lower recovery rates, but the sale of assets which have not yet been restructured to banks would risk creating bad debts in the country's banking sector in the future.

In its defense, Syafruddin repeatedly said the agency had done its best to execute its mandated tasks, after posting a recovery rate of 28 percent for its asset sale, which he claimed "fairly respectable", compared to the achievement by similar agencies in other countries.

A similar agency in China recorded a recovery rate of 8 percent, while those in Thailand and South Korea booked a recovery rate of about 25 percent, according to him.

The rate excludes the current remaining assets that are yet to be sold, worth more than Rp 40 trillion.

Part of the Rp 40 trillion assets will be transferred to new companies to be established under the Office of State Minister of State Enterprises before IBRA's mandate expires on February 27. The transfer process is expected to be completed by mid-January.

The new companies however, according to Syafruddin, would not be burdened by the government to contribute to the government's budget so they could focus only on restructuring the remaining assets.

As for the Rp 5 trillion asset sale target for next year, as stated in the 2004 state budget, Syafrudin said the target would be fulfilled by IBRA and not by the new companies.

The agency expects to obtain the targeted proceeds from the sale of the majority stake in Bank Lippo and Bank Permata, and from the on-going sale program of assets formerly belonging to huge debtors such as Texmaco Group.

The government has also planned to set up a special unit under the Ministry of Finance to take over the role of IBRA in implementing the blanket-guarantee program on bank deposits.

The unit will operate on a temporary basis -- pending the establishment of a deposit-guarantee agency (LPS), which requires a law as the legal basis. The drafting process is still underway.

Indef, LIPI see moderate growth for next year

Jakarta Post - December 24, 2003

Fitri Wulandari, Jakarta -- The country's economic growth is projected to remain at a moderate level of around 4 percent next year as uncertainty during the seven-month voting and campaigning periods will cause investment to remain weak.

The Institute for Development of Economics and Finance (Indef) predicted the economy to grow by between 4.2 and 4.4 percent in 2004, which is lower than the government's projection of 4.8 percent.

Meanwhile, the state-sponsored Indonesian Science Institute (LIPI) said that if the general election process was not smooth, the economy would only grow by 4 percent, which is the same level estimated for this year.

Indef economist Drajad Wibowo said in a press conference on Tuesday that domestic consumption would continue to be the main engine of next year's economic growth, as investment and exports would remain weak.

Indef predicts political parties could spend around Rp 15 trillion next year on campaigning and other activities. This large amount of money will eventually mean a boost in domestic consumption.

He said that investment may only start to enter the country in the second half of next year, assuming that the election process goes well. "Indonesia [economy] would grow by 3.9 percent if there is no investment coming in next year," Drajad said.

He added that export would also remain weak as local businesses would tend to focus on trading goods in the domestic market instead producing goods for the export market as competition from China and Vietnam becomes tougher. This is despite the expected recovery in the global economy, which should increase demands for export products.

For the past couple of years, the country's economy has been mainly driven by domestic consumption due to the weak performance of the investment and export sectors. Investors have been generally reluctant to pour in fresh money into the country due to a host of problems at home such as corruption, poor infrastructure, lingering labor conflicts and lack of faith in the judiciary. During the first nine months of this year, capital formation (a measure of investment) was 25 percent lower than the level prior to the 1997 economic crisis.

But LIPI's economist Wijaya Adi said that there was also a possibility for the economy to grow by 5.4 percent next year particularly if the elections go very well.

He said that under such a scenario, the current trend of increasing stability in macro-economic indicators would push households and businesses to become more optimistic about the economy, thus triggering higher investment. On the external front, the expected recovery in the economies of developed nations (export destinations for many local products) will also bode well for exports.

In the worst case scenario, if the election disappoints the people and there is social unrest, the economy will slow way down, while inflation will increase and the rupiah will weaken.

During the past year, the country's macroeconomic indicators have improved as evidenced by the low inflation, stronger rupiah against the US dollar and declining interest rates.

Both Indef and LIPI warned of the possible worsening unemployment problem next year, particularly if the economy grows too slow.

LIPI predicted that full unemployment this year would be 10.3 million people, a 14 percent increase from last year's 9.1 million. Next year the number could grow to 10.75 million jobless.

IBRA to transfer all unsold assets to state-owned firms

Jakarta Post - December 22, 2003

Jakarta -- The Indonesian Bank Restructuring Agency (IBRA) said that it would transfer all remaining unsold assets to new companies operating under the Office of State Minister of State Enterprises.

Previously, it was planned that the assets would be taken over by a holding company under the Ministry of Finance, after IBRA's termination on Feburary 27, 2004.

"Those new institutions will become state-owned enterprises [SOEs], or subsidiaries of them, in the form of limited liability companies," IBRA chairman Syafruddin Temenggung said late on Friday.

He was speaking to reporters after attending a meeting on the issue with the Financial Sector Policy Committee -- an agency which oversees IBRA and consists of senior economic ministers in the Cabinet.

IBRA's mandate will expire after over five years of huge tasks restructuring and selling assets that it took over from the insolvent banking sector, which was the hardest hit by the devastating 1997-1998 financial crisis.

In total, the agency took over some US$60 billion worth of assets from ailing banks or their former owners. It was given a mandate to sell the assets to raise cash and thus help finance the state budget, which has continued to be heavily burdened by the huge cost of bailing out troubled banks.

While it has sold most of the assets -- namely non-performing loans, fixed-assets, and shares in banks -- there are also some assets that have yet to be sold so far.

Syafruddin said that the agency would inject capital into the planned companies (two or three) before eventually handing them over to the Office of the State Minister of State Enterprises in January next year.

"We will move fast. We expect the handing over process will be completed by mid January," he said, adding that the Ministry of Finance would filter out property assets that could be used for the government's purposes.

"The selection was to see whether there are assets, say office complexes, that the government could use," Syafruddin added. Elsewhere, with IBRA's terms expired, the government has also planned to set up a special unit under the Ministry of Finance that will take over the role of IBRA in implementing the government's blanket guarantee program on bank deposits.

The unit, to be called the banking guarantee implementation unit (UP3), would operate on a temporary basis -- pending the planned establishment of a deposit guarantee agency (LPS), which needs more time to be set up as the government has yet to finish drafting the law as the legal basis for the agency.

The forming of the UP3 only requires a ministerial decree as its legal basis.

List of IBRA's unsold assets

1. Minority share ownerships in BCA, Bank Danamon, BII, Niaga and other banks.

2. About Rp 43 trillion worth of bad loan assets, the majority of which come from five companies -- textile giant Texmaco (Rp 27 trillion), aircraft maker Dirgantara Indonesia (Rp 2 trillion), Bali Nirwana Resort (Rp 2 trillion), Tirtamas Group (Rp 3 trillion), Dipasena (Rp 4 trillion) -- are still unsold.

3. Trillions of rupiah worth of smaller properties.

Indonesia faces obstacles after IMF exit

Jakarta Post - December 22, 2003

Jakarta -- The International Monetary Fund has concluded its high-profile role in designing the country's economic reform program over six years with the announcement late last week of its last loan tranche.

Graduating from the IMF program leaves the country with enormous challenges ahead, notably due to pressure from nationalist and populist politicians, which could put at risk the sustainability of the government's economic reform agenda.

Even when the IMF program -- with its strict economic targets and tough measures -- was in force, the government had to sometimes bow to the pressure, with delays in reducing the costly fuel subsidy and slow progress in the privatization program as examples.

The risk of a slowdown in the reform drive will be even greater next year, particularly with the general and presidential elections, a protracted seven-month process. The continuity of the reform agenda is crucial to help revive investor confidence.

"Judging from the [election] participants, it's hard to say that there will be a single majority winner. And if that's the case, more compromises are likely to prevail," Pande Radja Silalahi of the Centre for Strategic and International Studies (CSIS) said.

The IMF approved on Friday the final US$505 million tranche for Indonesia, the final portion of a $5.3 billion lending program, which was an extension of a previous similar program requested by the government in the wake of the 1997-1998 regional financial crisis.

Without the presence of an IMF-sponsored reform program, the country would have no longer been eligible for the Paris Club debt rescheduling facility, posing a greater burden on the state budget.

Indonesia's relations with the IMF have not been smooth. Four governments had to deal with strong public opposition to the reform program prescribed by the fund. In fact, the country's former authoritarian leader Soeharto had to step down after 32 years in power after he raised fuel prices and closed down banks as recommended by the IMF.

The country is now set to enter the first year of a dialog program designed for those newly graduated from the IMF lending program, called the post-program monitoring (PPM).

The government has drawn up economic action targets in the white paper, to support its decision not to extend the IMF's special program. It covers three main goals; to retain and continue pursuing macroeconomic and fiscal consolidation; continue the finance sector reform drive; increase investment, export and employment opportunities -- all are drawn up into certain policies and targets to be met by until the end of next year.

Experts have said that all the targets will remain just that if the country fails to manage the elections in a democratic and peaceful manner.

While the elections will be closely watched to help measure investor confidence, of more importance, however, is the economic direction the next government will take.

"Whoever wins, what's important is how to consistently pursue the reform program -- with or without the IMF program. So, it is important for the government not to make too many compromises.

"Admittedly, that will be very difficult, but it should at least be at a minimum," Pande said.

Meanwhile, Chatib Basri of the Institute for Economics and Financial Research, School of Economics, University of Indonesia (LPEM-UI), highlighted the importance of strong leadership on the part of the next government.

"It's very important to have strong coordination within the government, which would send positive signals to investors," he said.

Equally important, Chatib added, was clear-cut, time-bound economic policies as well as a clear measure to gauge the government's discipline in meeting the targets.

Major events during IMF program

1. October 1997: The government invites the International Monetary Fund (IMF) to help it cushion the economic impacts of the massive depreciation of the rupiah.

2. November 1997: The government closes down 16 troubled banks as part of the IMF's recipe to help cure the country's ailing economy. The move leads to massive runs on other banks as people rush to cash in their savings and deposits.

3. March 1998: The government increases fuel prices after reducing the fuel subsidy, which fuels public anger.

4. May 1998: President Soeharto steps down after 32 years in power, as security and the political uncertainty intensifies following the country's bloodiest riot. Vice president BJ Habibie takes over the presidency. 5. August 1999: Disclosure of the Bank Bali scandal, which ruins the chances of president BJ Habibie being reelected. Some US$70 million had been transferred from the bank to a private company controlled by a senior ruling Golkar Party official.

6. October 1999: Muslim cleric Abdurrahman "Gus Dur" Wahid is sworn in as the country's fourth president, replacing outgoing BJ Habibie.

7. February 2000: The IMF suspends a US$400 million loan disbursement, which further strains the relationship of the lending agency with the Gus Dur-led administration.

8. August 2002: Megawati Soekarnoputri replaces Gus Dur as the president, the fifth in the country.

9. July 2003: The Cabinet decides not to extend the IMF special program when it expires at the end of this year.