Aceh

US expresses concern over Indonesian arrests

Reuters - March 6, 2004

Washington -- The United States expressed deep concern on Friday over the recent arrests of non-violent activists in Indonesia's rebellious region of Aceh and the treatment of a leading activist.

"This is the latest in a series of actions apparently intended to intimidate independent observers who would be in a position to monitor and report on serious human rights abuses in Aceh," the US State Department said in a statement.

Last year Indonesia rejected accusations it had clamped down on freedom of expression and the foreign media in the province of Aceh.

The State Department said it was also concerned about reports that police beat Muhammad Nazar, head of the Aceh Referendum Information Center, during a February 19 interrogation.

His wife and his lawyer have not been allowed to see Nazar, the State Department said.

"We continue to believe that the Aceh conflict is not amenable to solution by use of military force, including the imposition of martial law," the State Department said.

"We urge the Indonesian government to handle cases involving civil society activists with the utmost respect for their legal rights," it said.

Aceh: Abducted activists 'at grave risk of torture'

Green Left Weekly - March 3, 2004

James Balowski, Jakarta -- In a statement issued on February 23, Amnesty International said that the five human rights activists and one other person who were detained by the Indonesian police between February 19 and February 23 in Indonesia's northern-most province of Aceh are "at grave risk of torture and ill- treatment".

Amnesty reported that on February 19 the Police Mobile Brigade (Brimob) arrested a man named Masrizal on suspicion of being a member of the Free Aceh Movement (GAM) guerrilla movement. Three days later, human rights worker Iwan Irama Putra, an acquaintance of Masrizal, was detained by Brimob and "has not been seen since".

On February 22, Brimob police made a series of raids on the homes of members of the Acehnese Democratic Women's Organisation (ORPAD), arresting three members of the human rights organisation -- Harlina, Nova Rahayu and Nursida. Later that day, the police arrested another man named Syafruddin, an activist with the human rights organisation Student Solidarity for the People (SMUR).

Indonesian human rights and Aceh solidarity organisations have reacted angrily to the arrests.

At a press conference in Jakarta on February 24, the Commission for Missing Persons and Victims of Violence (Kontras), Aceh Papua Solidarity (SAP), the Mardhika Women's Working Group (KKPM) and ORPAD condemned the arrests.

The coordinator of Kontras' working body, Mufti Makarim, said the arrests are part of the present drive by the Indonesian authorities to stifle the political freedoms of the Acehnese people. "These actions clearly threaten civil freedoms, in particular those who have a critical position towards the government's policies", he said.

Dita Sari, representing the KKPM, said that the five activists were neither members or sympathisers of GAM, but were from human rights organisations. "Their whereabouts are still unclear after police asserted that they had not detained any activists or students, whereas according to eyewitnesses, the six were taken by Brimob personnel from their homes in Banda Aceh", Sari said.

"They just staged rallies demanding that the government lift martial law. The women activists had said that martial law and the military operation had brought suffering to the people, especially women, and had not restored security and order in the resource-rich province", she added.

ORPAD chairperson Raihana Diani said that she believes the abductions are linked to a recent statement she made that was carried widely by the print media.

On February 19, the Jakarta daily Kompas carried a report titled "Military accused of flirting with political parties in Aceh" in which it quoted Diani as saying that on a number of occasions ORPAD members had witnessed Democratic Party card holders receiving preferential treatment during ID sweeps from by security forces. "This could become a form of coercion by the emergency military command to [get people to] vote for political parties which have the blessing of the military", she was quoted as saying.

In the same Kompas report, the spokesperson for Media Aceh Election Watch, Munarman, and Jusuf Lakaseng from SAP conveyed similar concerns. "The position of [coordinating minister for politics and security and Democratic Party presidential candidate] Susilo Bambang Yudhoyono as the person who overseas the central emergency military command is being exploited by the Democratic Party for their own interests", said Lakaseng.

The director of the Centre for Electoral Reform (Cetro), Smita Notosusanto, told Kompas that Cetro had also been receiving similar reports. "Moreover, it is not just the Democratic Party, but also the Functional Party of National Concern [that has received such treatment]. Cetro will be re-checking these complaints on the ground", she said.

Both the military and the Democratic Party have denied the allegations.

"Grave human rights violations, including extra-judicial executions of both adults and children", have been reported since the latest offensive was launched last May, the February 23 Amnesty statement said. "Anyone detained by the police and military in [Aceh] is at risk of torture, ill-treatment and other human rights violations", it added.

Aceh has been under a state of martial law since May 19 when the Indonesian government launched its so-call "integrated operation" to destroy GAM and "restore law and order". Since then, more than 1000 alleged GAM members have been killed or arrested.

The military operation has resulted in the deaths and disappearance of hundreds of innocent civilians. Thousands more have been forced from their homes during military sweeps, and are now languishing in disease-ridden camps. The activities of human rights and non-government organisations (NGOs) have effectively been shut down as activists have been forced to flee to Jakarta in fear of their lives.

In the lead up to the April 5 Indonesian general elections, a number of human rights and Aceh solidarity organisations have begun to express growing concern that free and fair elections will be impossible in Aceh given the military's terror campaign.

The military has already said that it will tightly control the dissemination of information and campaigns by political parties in order to ensure that the elections are not "disrupted by irresponsible parties for their own interests".

The Aceh military emergency command initially denied the abducting the five human rights activists, but has now admitted that they are being "questioned" by the military in Lhokseumawe in northern Aceh. Their exact whereabouts, however, remain unknown.

Military spokesperson Colonel Ditya Sudarsono was reported by the February 25 Kompas as claiming that the activists "are not being questioned because they are non-government organisation activists, but because there are indications that the are involved with GAM or at the very least are GAM sympathisers".

Sudarsono said the police and the military will go after NGO activists in Aceh, claiming that many of them are accomplices of GAM. "What is certain is that the activists arrested [by security officers] are involved in the separatist movement", he told the February 26 Jakarta Post, adding: "We don't consider them activists, but people who either sympathise with GAM or openly help the rebels."

He also admitted that many NGO activists in Aceh had fled to Jakarta and other provinces, and that the military would seek to arrest them wherever they were. "Outside Aceh they are shouting that the military has committed abuses in Aceh ... Clearly their actions hurt national interests. They have to be arrested and questioned."

GAM rebel caught in Bandung

Jakarta Post - March 3, 2004

Bandung -- An Acehnese student, identified as Mohammad bin Mohammad Toyib, has been arrested for allegedly serving as an adjutant to the Free Aceh Movement (GAM) finance minister.

Police nabbed Mohammad, a student of Banda Aceh-based state Ar- Raniry Islamic Institute, at the Aceh student dormitory on Jl. Cicendo, Bandung, on Monday.

West Bandung Police chief Adj. Sr. Comr. Edi Mulyono said on Tuesday the arrest followed an intelligence report that put Toyib, who is an activist with the Aceh Referendum Information Center (SIRA), on the police wanted list.

"We watched over him for days before the arrest," Mulyono said. Police had earlier arrested Teungku Muhammad Lampoh Awe, who claimed to be the GAM finance minister.

Toyib told police investigators he left the Aceh capital, Banda Aceh, on October 20, 2003, for Jakarta to escape the military and police hunt. He moved to Bandung on February 12, 2004, for safety reasons.

The arrest of Toyib has raised fear among other Acehnese students in the dormitory as plainclothes police officers and intelligence officers were often seen hanging around in front of the dormitory.

Police claim to arrest aide to an Aceh rebel

Melbourne Age - March 3, 2004

Indonesian police said yesterday they had arrested a man believed to be a senior aide in the self-styled government proclaimed by separatist rebels in Aceh province.

Mohammad bin Mohammad Thoyib, 26, was arrested yesterday at a dormitory for Acehnese students in the city of Bandung in West Java, said the local police chief, Eddy Mulyono.

Mulyono said the arrest of the suspected Free Aceh Movement (GAM) official followed a tip-off from people in the dormitory.

"Information from his very own environment said that there was a GAM member there ... the information even said he was the adjutant to the finance minister," Mulyono told ElShinta radio. He said the information had been checked with Aceh police.

The suspect is a resident of Banda Aceh, the capital of Aceh province, and is registered as a student at the Ar-Raniry Institute of Islamic Studies there.

Officers from national police headquarters were later to take the suspect to Jakarta before he is handed over to Aceh police.

A lawyer from an NGO called the Team of People's Defenders, Habiburahman, told reporters at West Bandung police station that Thoyib was not a GAM member.

Habiburahman, quoted by Detikcom online news service, described him as an activist and urged police not to hastily tag people as rebels.

The military in May last year launched an intensive military campaign to crush the rebel movement. Rights groups say human rights defenders and political campaigners are among those who have been arrested as alleged rebel sympathisers.

'GAM finance minister's aide' transferred

Detik.com - March 4, 2004

M. Munab Islah Ahyani, Bandung -- An activist from Aceh Papua Solidarity (Solidaritas Aceh Papua, SAP) who was arrested and detained in Bandung (West Java) and who is suspected of being linked with the Free Aceh Movement (GAM), is now being processed by the national police headquarters. National police are working in coordination with the Acehnese police to continue to process the case, including investigating if there is link between GAM and activities of the activist.

This was related to journalist by the head of the West Java police, Inspector General Dadang Garnida, in relation questions on the developments in the case of a SAP activist who was arrested on suspicions that he is the aide to the GAM minister of finance. Garnida was questioned by journalists following a joint prayer meeting for peaceful elections at Gasibu Square in Bandung on Thursday March 4.

As has been reported, M Toyib (26), alias De Muhamad alias Tengku Morad, a student of the Ar-Raniry State Institute of Islamic Studies in Banda Aceh, was arrested by officers from the West Bandung police on Monday March 1. The arrest was said to have taken place based on a report received by police from the administrator of the Aceh Students Family Boarding House in Bandung located on Jalan Cicendo. However the manager of the boarding house later denied making a report to police regarding the whereabouts of Toyib.

Responding to this, police explained that the actions taken by police were a pro-active step to safeguard security and order. "Because there was a report by [a member of] the public, we have secured and are investigation the person in question. Because his case touches on other areas, we have handed him over to the national police. From there the national and Acehnese police will follow up the case", he explained.

He said that the actions by police do not mean that they are restricting the rights of Acehnese citizens who visit other parts of the country. "Don't put it in those terms. The pro-active actions by police were to safeguard security [and were taken] in accordance with procedures and the legal stipulations which are in force", he reiterated.

He also made it clear that the West Java local police greatly appreciate the attitude of citizens who take a pro-active position and are wary of suspicious people who are in their neighborhood. Furthermore, he said we are already approaching the general elections so the "political temperature" is expected to rise and become susceptible to disturbances.

In order to safeguard the 2004 general elections themselves, the West Java police have a force of around 22,000 personnel, two thirds of which will be mobilised for this momentous task. "The police have also obtained assistance from TNI [armed forces] personnel and operational units at the district level. That doesn't include civilian groups and the political parties themselves. Don't forget, that in West Java there are also around 80,000 motorcycle taxi drivers who have declared their commitment to safeguard security in the province. God willing, it will be safe in West Java", he reiterated.

Political not legal

Meanwhile, when contacted by Detik.com, SAP spokesperson Lusiana explained that the arrest of one of their activists was not because they had broken the law. "The arrest of our colleague is clearly political, and has been doctored up to appear to be legal matter", she said.

Because of this, in addition to preparing a number of lawyers to assist in Toyib's legal case, SAP will continue to take political steps to obtain his release. However she did not explain the precise form this would take.

Lusiana also said that they had obtain news that their colleague has now been transferred to Aceh. "Certainly, it will be more harder and more difficult [for the campaign] if he has already been transferred to Aceh. But we will continue to struggle [for his release]", she reiterated.

One thing she hoped would not be done anymore is the stigmatisation of activists who carry out such activities. "At the moment, some [pro-democracy activist] are being directly accused of being members of GAM which means they can be arrested. This is exactly the same as suppressing the [very] democracy which [we are] struggling for at the moment", she said. (mmi,nrl)

[Translated by James Balowski.]

Parliament asks military to restrict foreign observers

Detik.com - March 5 2004

Anton Aliabbas, Jakarta -- The People's Representative Assembly (DPR) has asked the Aceh emergency military command (PDMD) to restrict the movement of foreign election observers in Aceh. This request was submitted in order to better monior the work of foreign observers.

"[This request is] in so that they only observe the organisation of the elections. And if their activities go beyond this it will be a violation. So, there needs to be clear rules on the activities which are carried out by foreign observers".

This was revealed to journalists at the parliament by the deputy chairperson of the DPR, Soetardjo Soerjogoeritno, on Friday March 5.

Furthermore he said, the DPR supports providing insurance to all electoral officers who are working in Serambi Mekah [the Gateway of Mecca, Aceh]. "We support providing insurance to electoral officers in Aceh bearing in mind the risks that are faced under a state of martial law as is the case at the moment", he explained.

According to Soerjogoeritno, between February 18-20, the DPR sent a team to Aceh headed by the deputy chairperson of Commission I, Franklin William Kayhatu. The team met with relevant government officials such as local councils and the PDMD.

Soerjogoeritno said that the National Election Committee must immediately formulate a contingency plan because there are still many areas which have yet to receive election materials such as the regencies of South and West Aceh. "If by March 10 they still have not received them, we suggest there be a contingency plan to make ballot boxes from wood and it would be best if [local governments] provide polling stations with voting booths", he said.

He added that coordination between electoral offices and respective local governments must be improved. "Because clearly there is still no coordination between electoral officers and local government. For example the regent and deputy regent of South Aceh have not yet been registered as voters while the Voter Registration Committee has declared that all perspective voters [in the regency] have been registered and reported to the central [government]", said Soerjogoeritno. (jon)

[Translated by James Balowski.]

Acehnese pro-democracy activist arrested in Bandung

Detik.com - March 2, 2004

Ahmad Fikri, Jakarta -- West Bandung (West Java) police have arrested Mohammad bin Toyib (26) who they say is the adjutant of the Free Aceh Movement (GAM) finance minister.

This was revealed to journalists by the head of the West Bandung police, Eddy Mulyono, at the Bandung police headquarters on Tuesday March 2.

"We arrested the [person] concerned on Monday (1/3/2004) at the Aceh students canteen on Jalan Cicendo No. 9 in Bandung at around 6pm after the Aceh police confirmed that Mohammad was the adjutant of the GAM finance minister", said Mulyono.

Mulyono added that when he was arrested Mohammad did not offer any resistance. Mohammad is now under intense investigation. The police, said Mulyono, are seeking information concerning his activities and anyone who has met with Mohammad in Bandung.

"We are continuing to coordinate with the Aceh police. The Aceh police themselves have asked for Mohammad to be brought to Aceh. However based on orders from the Bandung police chief, Mohammad will be taken to Police headquarters [in Jakarta first]. Only then he will he be taken to Aceh", explained Mulyono.

According to Mulyono, Mohammad has frequently visited Bandung and even has a Bandung identity card in the name of D. Ahmad for the Cicendo political district.

Not a member of GAM

Habiburahman, from the People's Defence Team however, explained that Mohammad is an activist from the Solidarity Movement for the People of Aceh (Solidaritas Gerakan Untuk Aceh, SEGERA). He called on police to stop issuing statements accusing Mohammad of being a member of GAM.

"This will stigmatize his family. Not just that, worse still this [kind of] stigma will also have to be borne by other Acehnese people living outside of Aceh", explained Habiburahman.

Meanwhile, Zahri, a former administrator of the Aceh student canteen in Bandung said that Mohammad is a student of the Araniri State Academy of Islamic Studies in Banda Aceh. Mohammad is registered there as a year 2000 student in the religious studies faculty. "[What is happening] at the moment is that every single Acehnese activists is being accused of being members of GAM. Since February 19, 17 activists have been arrested on these charges", he revealed. (djo)

[Translated by James Balowski.]

Protests against arrest of pro-democracy activists

Java Post - March 3, 2004

Jakarta -- Aceh has almost become the "forgotten" war. Because of this, Acehnese students believe that is necessary to hold demonstrations in Jakarta to remind people of the issue. Yesterday, at the Hotel Indonesia roundabout, scores of Acehnese activists demonstrated over the fate of several recently arrested colleagues.

The activists said that no less than 10 Acehnese activists had experienced a series of violent incidents, from arrests to beatings and abductions. The physical torture they endured was not in relation to criminal activities but because the activists have been vocal in speaking out about human rights violations which have occurred in Aceh.

It is not just Acehnese activists in Aceh who have become the targets of this repression, but also those who are living outside of Aceh. "The case of Muhammad MTA [Muhammad bin Toyib, 26] is an example. [Muhammad], an activist from the Student Association Against the Military [Himpunan Mahasiswa Antimiliter, HANTAM] and the Solidarity Movement for the People of Aceh [Solidaritas Gerakan untuk Rakyat Aceh, SEGERA) was arrested in Bandung, yesterday afternoon", explained Ari Ariyanto, spokesperson for the Aceh People's Association (Ikatan Rakyat Aceh, Ikara). According to Ariyanto, Muhammad was arrested on charges of separatism and is now being held in Bandung (West Java).

To highlight their protests, the Ikara activists, most of whom are students, covered their mouths with black scarves. They also carried scores of banners, one of which read "Don't slander activists as separatists".

Aside from Muhammad, which other activists who have also been arrested? "Amrizal and Anwar, both activists from SMUR [Student Solidarity for the People, Solidaritas Mahasiswa Untuk Rakyat]. They were arrested by Mobile Brigade [officers] in Lhokseumawe [North Aceh] on February 27", answered Ariyanto. Likewise, Muklis and Zulfikar. Bother are students from the Ar-Raniry State Institute of Islamic Studies who were arrested in Bireuen, North Aceh. Their whereabouts however are still unknown. "They were both arrested by the Joint Intelligence Task Force (SGI). However, the arrest of the two has still not been admitted to by SGI", explained Ariyanto.

They are therefore urging the head of the national police to release the Acehnese activists who are still being held and to end the slander against Acehnese activists by calling them separatists. "We also urge Mega-Hamzah [President Megawati Sukarnoputri and Vice-president Hamzah Haz] to end martial law in Aceh", added Ariyanto.

When Radar Bandung (Java Post Group) sought conformation on the arrest of Muhammad in Bandung, the head of the West Bandung police, Edi Mulyono, confirmed that Muhammad had been arrested on charges of being the aide to the finance minister of the Free Aceh Movement (GAM).

"Although this has been refuted by the suspect, we have evidence", explained Mulyono. Last night, according to plans, Muhammad was to be transferred to police headquarters [in Jakarta].

From Aceh meanwhile, it was reported that the Aceh emergency military command (PDMD) has said that 1,841 members of GAM are being processed by the Aceh police. On Tuesday, PDMD spokesperson Colonel Ditya Soedarsono, told reporters in Banda Aceh that of these, the cases of as many as 1,414 separatists have already been submitted to the attorney general.

He explained that 1,228 GAM members are currently being processed and their cases are ready to be submitted to the courts. Soedarsono said that the courts had handed down verdicts on as many as 1,012 GAM members who have been tried and proven guilty.

"Leave it up to the will of Hasan(1) n to return to the lap of mother earth to develop Aceh in the fold of NKRI(2), for the sake of a Serambi Mekah(3) which is just, prosperous and blessed by almighty God", said Soedarsono. (naz/ant) '

Notes

1. Hasan, a grandson of Muh. martyred in religious war. Hasan and his brother Husain's deaths are commemorated on Asyura, the 10th day of Muharram, the Day of Atonement.

2. Negara Kesatuan Republik Indonesia, the Unitary State of the Republic of Indonesia. A term which often used in the context of nationalism and the desire to maintain the integrity of the Indonesian nation.

3. The Gateway of Mecca, Aceh

[Slightly abridged translation by James Balowski.]

120 officers convicted for crimes since martial law declared

Sarambi Indonesia - March 2, 2004

Banda Aceh -- Since martial law came into force in Aceh on May 19, 2003, the Banda Aceh Military Court I/01 has handed down verdicts on 90 legal cases involving 120 TNI (armed forces) officers. Those who have been punished are not just officers from the Iskandar Muda territorial military command (Kodam), but also from military operational units at the district level (Korem).

Following a ceremony to mark the 52nd anniversary of the army's legal corps on Monday March 1, the head of the Banda Aceh I/01 Military Prosecuting Attorney's office, Major Yonavia, explained to journalists that nearly all of these 90 cases represented common crimes committed by officer such as theft, violence, rape and the collection of illegal taxes.

The Banda Aceh I/01 Military Court organises hearings at two locations, Lhokseumawe (North Aceh) and Banda Aceh. The court hearings of officers from Korem 0011/Lilawangsa are held in Lhokseumawe he explained, while the hearings of those from Korem 012/Teuku Umar are held in Banda Aceh.

Yonavia said that of the 90 cases in which verdicts have been handed down and which have involved 120 officers, the heaviest sentence was 3.6 years in jail and dismissal from their post in a case of rape. Meanwhile, the lightest sentence was 45 days in jail in a case of gambling.

This represents an effort by the TNI to enforce the law. "There are no reasons for the TNI not to enforce the law, even under a state of emergency", he said. Furthermore added Yonavia, the presence of the TNI is Aceh is not to hurt the Acehnese people but to restore security and to wipe out the Free Aceh Movement.

"If there are officers who behave wantonly we will continue to take action [against them], right there, there is the evidence [of our commitment to enforce the law], we have already convicted 120 officers through the legal authority of verdicts by the military courts. Which in the end [is where] the enforcement of the law is upheld", he explained.

Meanwhile, the ceremony to mark the anniversary of the legal corps which was attended scores of officers and troops from the Banda Aceh Military Tribunal proceeded somberly. Acting as the master of ceremonies, the head of the Iskandar Muda Kodam Legal Group, Lieutenants Colonel M. Simamora, said that the legal corps played a role in legal enforcement by improving professionalism in the legal field.

As part of ceremony, the Banda Aceh I/01 Military Court burnt material evidence in the form of 4.25kg of marijuana in the grounds in front the offices of the military court. (su)

[Translated by James Balowski.]

Foreign election observers yet to arrive in Aceh

Tempo Interactive - March 6, 2004

Zainal Bakri, Lhokseumawe -- The National Elections Commission (KPU) in Aceh has stated that as of Saturday afternoon, March 6, no foreign election observers -- either organisations or individuals -- have arrived in Aceh. This is despite the fact that the election campaign will begin on March 11. "There is not a single election observer who has informed [us] that they have entered Aceh", said Ridwan Ishak, a member of the Aceh KPU.

As is already known, a number of parties have expressed doubt that the elections in Aceh will run smoothly and without intervention by certain parties. This "abnormality" is because Aceh is under a state of marshal law.

In order to overcome the problem, the central government and the Aceh emergency military commander (PDMD), Major General Endang Suwarya, said they are providing leeway to foreign election monitoring teams who wish to enter Aceh, as long as they first have permission from the PDMD.

Acehnese citizens and social figures support the presents of these foreign monitoring teams. "Foreign observer will been given an opportunity to see a genuine and fair democratic [process in Aceh]. But we hope that they will not come to Aceh to worsen a situation which has [now] begun to improve", said Yusuf Ismail Pase, a regional legislative candidate originating from North Aceh.

[Translated by James Balowski.]

West Papua

Indonesian army ordered deadly ambush

Associated Press - March 6, 2004

Slobodan Lekic, Jakarta -- US officials believe local army commanders ordered an ambush that killed two American teachers near a gold mine in a case that has held up resumption of normal US-Indonesia military ties, two American officials told The Associated Press.

Elements of the military have long been suspected in the 2002 attack, but a much-criticized joint Indonesia police-military investigation proved inconclusive. US authorities said their probe continues with FBI agents now in Indonesia, making their fifth visit to the ambush site.

"It's no longer a question of who did it," a senior US official familiar with the investigation, told AP. "It's only a question of how high up this went within the chain of command," said the official, who spoke on condition of anonymity.

FBI officials and the US Embassy in Jakarta have refused to discuss any evidence.

"The FBI has reached no conclusion regarding any party's guilt or innocence. The investigation is ongoing and cooperation with the Indonesian authorities is continuing," said an embassy statement released Thursday.

Privately, US officials say little doubt remains about who was responsible for the attack on vehicles driving down a road to a gold mine operated by New Orleans-based Freeport-McMoRan Copper & Gold.

Any US finding against the military, however, could jeopardize the Bush administration's desire to restore US-Indonesian military ties, which were suspended after army atrocities in East Timor in 1999.

The Bush administration regards Indonesia -- the world's most populous Muslim nation -- as its key Southeast Asian ally in the war on terror.

The Republican-controlled Congress initially backed an initiative to restore military ties, voting in 2002 to approve a resumption of the International Military Education and Training program.

But renewed doubts set in after the ambush. And in January, lawmakers reinstated the ban until the State Department determines the Indonesian government is helping with the FBI probe.

The State Department's annual human rights report, released last week, criticized as "ineffectual" the joint Indonesia police- military investigation, saying police and soldiers failed to cooperate.

Immediately after the attack, local police commander Brig. Gen. Raziman Tarigan blamed special forces soldiers. The military brass denied the accusation, and assumed control of the investigation.

Indonesian officials have since blamed rebels, although they are armed only with bows and arrows and antiquated bolt-action rifles. Sophisticated automatic weapons were used in the ambush.

Now and in 2002, army checkpoints control the remote mountain road ambush site, which is not accessible to civilians.

Maj. Gen. Sulaiman Ahmad Basir, chief of the military police, refused comment on the FBI investigation. Freeport-McMoRan officials in Indonesia also won't talk about the case.

On August 31, 2002, armed assailants staged the ambush near the world's largest gold mine at Timika in Papua province on the island of New Guinea. Two teachers were killed -- Rick Spier of Littleton, Colo., and Ted Burgon of Sunriver, Ore. -- and eight other people were wounded.

FBI investigators believe local army commanders were trying to extort protection payments from Freeport after the company reduced its regular contributions to them, US officials told AP. The attackers likely were unaware the convoy carried Americans, the officials said.

Spier's widow, Patsy, suffered multiple gunshot and shrapnel wounds in the attack. She's pressing lawmakers for justice.

"Why would we want to improve ties with Indonesia and re- establish ties with the military if the police have accused them of being behind the killing of Americans?" she told AP. "The people who carried out that ambush were arrogant enough to think they could get away with it because they've gotten away with so many crimes in the past."

Indonesia's army has a history of human rights abuses, during and after ex-leader Suharto's military-backed dictatorship that ended in 1998. In 1999, the army led the destruction in East Timor following the UN-organized independence referendum.

In 2001, a special forces squad assassinated Theys Eluay, West Papua's leading politician. Other units have been involved in attacks on civilians in the province, where a pro-independence rebel movement has operated since the 1960s. The latest State Department report cites numerous extrajudicial killings by security forces in West Papua's central highlands, which include the Timika mine.

"The entire case of Timika reinforces the view that getting close to a violent, unreformed military is a very risky prospect," said Jeffrey Winters, an Indonesia expert at Northwestern University in Chicago.

The United States and Indonesia have had a seesaw relationship since Indonesia gained independence from the Netherlands in 1949.

In the mid-1960s, Washington forged close ties with Suharto, whose government slaughtered left-wingers and in 1974 invaded the former Portuguese colony of East Timor. But in the 1990s, ties worsened amid accusations of human rights abuses.

In 1999, the Clinton administration placed strict curbs on military-to-military relations in response to army atrocities in East Timor. A law banned contacts until the military is held accountable for those crimes.

But as President Bush took over the White House, an effort spearheaded by Deputy Defense Secretary Paul Wolfowitz -- a former ambassador to Jakarta and unabashed Suharto supporter -- was launched to improve relations with Indonesia.

This was justified by the need to build up Indonesia into a bulwark against al-Qaida infiltration into Southeast Asia.

Labour Issues

Substandard conditions keep plantation workers in poverty

Jakarta Post - March 2, 2004

Apriadi Gunawan and Ridwan Max Sijabat, Medan -- The government has not yet tended to poor labor conditions at state-owned oil palm plantations in North Sumatra, leaving the majority of workers underpaid and uninsured.

The situation is lamentable, as most people working at oil palm plantations live in poverty while the plantations -- almost as large as the Malay peninsula -- comprise one of the greatest sources of non-oil and gas revenues for the provincial and central governments.

Thousands of workers employed at state-owned plantation PT Nusantara II in Limau Mukur, Tanjung Morawa subdistrict, are paid a mere Rp 315,000 (US$37) monthly.

A majority of plantation workers are permanent employees and have worked for the company between 15 to 25 years, but they are underpaid, with a minority of workers receiving pay on a daily basis but far below the minimum wage of the province.

Company shuttles to and from the workplace are provided, but most workers have been allotted substandard company housing.

"The strangest thing is that no career advancement has been made available to low-ranking workers, as professional development schemes are implemented only for middle- and high-ranking employees. This system has only served to keep the lives of low- ranking workers and their families in dire poverty," Soetarto, a labor union activist at the plantation, told The Jakarta Post.

Soetarto said the management did not acknowledge him nor dozens of other workers who had been at the plantation since its establishment at its 25th anniversary in 2003.

The workers also said most had yet to be insured under the national social security scheme. Each time they requested the compulsory insurance, the management rebuffed them with many reasons as to why they could not meet the demand.

"Only a few workers know about the social security program, and while the company has provided medical services for sick workers and their families at nearby provincial health clinics, workers entering retirement are only given severance pay, but no pensions," he said.

Aufa Azis Chan, head of the North Sumatra branch office of state-owned workers insurance firm PT Jamsostek, confirmed that a majority of low-ranking workers at state-owned rubber and oil palm plantations were not yet members of its social security program. "There are three big state-owned oil palm plantations in the province -- PTP Nusantara IV in Simalungun regency, PTP Nusantara II in Tanjung Morawa regency and PTP Nusantara III in Langkat regency -- employing more than 10,000 workers together, but most are not members of the obligatory basic insurance plan," he said.

He said Jamsostek had taken a persuasive approach to the managements of the plantations to insure their workers.

"If a persuasive approach fails, we will ask the appropriate authorities for assistance in enforcing Law No. 3/1992 on social security," he said.

He said weak enforcement of the law had contributed to the large number of workers who were not registered with Jamsostek.

However, he conceded that many plantations in the province had been facing financial problems following the rampant poaching of oil palm fruits and unchecked illegal occupation of plantation land during the transitional reform period in 1998. Still, he added, this was no excuse for the state companies to provide workers social security, as the companies had booked high annual profits in the years before the reform era.

Deputy Chairman of the North Sumatra provincial legislature Serta Ginting called on the central government to use its authority to demand that the plantations improve the poor labor conditions, because the provincial administration had no power to do so.

"The state-owned plantations, which fall under the forestry ministry and the office of the state minister for state enterprises, should rectify the poor labor condition before it gets worse," he said.

Ginting, who also chairs the Nusantara Plantation Labor Union Federation, said 31,000 of 80,000 workers at state-owned oil palm plantations in the province were underpaid and lived in inhumane company housing.

If the plantations were unable to pay their workers at least the provincial minimum wage, he suggested the central government to divest the plantations to foreign companies.

'War on terrorism'

Last defendant in Bali bombing trials jailed for nine years

Agence France Presse - March 4, 2004

An Islamic militant who shielded a key member of the Bali bombings plot has been jailed for nine years, the last in a series of trials arising from the atrocities that left 202 people dead.

Judges at Denpasar district court on the holiday island said Achmad Roichan was "guilty of the crime of intentionally providing facilities to a terrorism suspect by hiding information on the suspect." Prosecutors had sought a 20-year sentence for Roichan, who hid a man called Mukhlas while he was on the run after the nightclub blasts in October 2002 which killed mostly western tourists.

The court has jailed more than 30 people for their roles in the worst terror attack since September 11, 2001 in the United States.

Mukhlas, Imam Samudra and Amrozi are appealing against death sentences. Four others were given life sentences and the remainder received jail terms ranging from 16 years to three years.

A man called Idris who was also allegedly involved in the Bali blasts will face trial in Jakarta, a court official said. This is because Idris was also allegedly involved in the Marriott bombing in the capital last August which killed 12 people.

The al Qaeda-linked Jemaah Islamiyah is blamed for the Bali and Marriott attacks along with a series of other bombings in recent years.

Several key Bali suspects are still being hunted, including Malaysian explosives experts Noordin Mohammad Top and Azahari Husin.

Government & politics

Only 50 legislators bother to attend plenary meeting

Jakarta Post - March 6, 2004

Kurniawan Hari, Jakarta -- The House of Representatives (DPR) wound up its seven-week long session on Friday with only about 50 legislators showing up at the plenary meeting to hear the closing speech of House Speaker Akbar Tandjung.

The legislators will now enjoy a six-week recess, which many of them will use to campaign for their reelection in the upcoming legislative election scheduled for April 5.

Signs that the closing meeting was going to be poorly attended were apparent from early in the morning when the plenary meeting discussed a proposal to probe the sale of state telecommunications firm PT Indosat.

Although 251 legislators signed the attendance list, only 187 of 500 House members were actually present in the chamber.

The number of legislators attending the meeting had dropped significantly by the time Akbar, whom the Supreme Court acquitted recently of corruption, reopened the plenary meeting after the Muslim Friday prayers.

Golkar legislator Baharuddin Aritonang dismissed speculation that the poor attendance was a slap in the face to Akbar, who is also the chairman of Golkar.

"The poor attendance has nothing to do with Akbar's leadership but simply shows the legislators' lack of responsibility. House members often skip meetings, but always draw their salaries. This is embarrassing," he added.

During the plenary meeting, Akbar was accompanied by House deputy speakers Soetardjo Soerjogoeritno of the Indonesian Democratic Party of Struggle (PDI-P), Muhaimin Iskandar of the National Awakening Party (PKB), and Tosari Widjaja of the United Development Party (PPP).

Soetardjo also expressed concern over the poor level of attendance, but made no suggestions as to how attendance could be improved.

In his speech, Akbar said the legislators had endorsed only four out of the targeted 54 bills. The four bills included water resources bill, the revision of the public courts law, and the revision of the administrative court law.

He said that the pending bills would be deliberated in the next session.

The legislators, he added, would have two other sessions -- in April and September respectively. Akbar also called on legislators to draw up a priority list for the bills to be deliberated given that there was not enough time to discuss all the bills.

He added that the legislators elected during the April 5 election would start deliberating the pending bills right from the very beginning of the new House term.

The government-sponsored water resources bill was submitted to the House in November 2002. It took more than a year for the House and the government to discuss it before finally endorsing it last month.

"We hope the government will give the public information about the substance of the controversial bill," Akbar said.

Concerning the revisions of the laws on the public courts and administrative court, Akbar said he hoped the revisions would improve judicial independence.

Attendance list prior to closing speech

No.	Faction	Members	Attendance	Percentage
1.	PDI-P	153	71	46%
2.	Golkar	120	33	27%
3.	PPP	58	10	17%
4.	PKB	51	8	15%
5.	Reform	41	20	48%
6.	Military	38	33	86%
7.	PBB	12	4	33%
8.	KKI	11	6	54%
9.	PDU	10	2	20%

Security minister acting like a child, says Taufik

Agence France Presse - March 3, 2004

Jakarta -- The husband of Indonesian President Megawati Sukarnoputri yesterday accused the security minister of behaving like a child for complaining about being shut out of Cabinet meetings.

"Mr Susilo should come to Madam President and ask why he hasn't been invited, rather than speak in the newspaper. That's the act of a child," Ms Megawati's husband, Mr Taufik Kiemas, was quoted by Detikcom online news service as saying.

Mr Taufik is an official of Ms Megawati's Indonesian Democratic Party -- Struggle. "It's inconceivable a four-star general is afraid of the President," he said.

The security minister, Mr Susilo Bambang Yudhoyono, hinted on Monday that Ms Megawati had shut him out since he announced his intention to run for the presidency this year.

Mr Bambang did not deny a report in Republika newspaper that he was not involved in recent Cabinet meetings.

Republika's headline was "Yudhoyono begins to be shunted aside". It said he had not been invited to take part in several Cabinet meetings this year and had not been consulted on matters under his jurisdiction, including the military operation against separatist rebels in Aceh province.

Republika said the President was now taking security into her own hands.

The Democratic Party, a small party which Mr Bambang helped found in September 2001, has said it would back his candidacy.

Indonesians will for the first time directly elect their president and vice-president on July 5. A second round will be held on Sept 20 if no one secures more than 50 per cent of the votes in the first round.

Elections to the legislature will be held next month and the Indonesian Election Commission is racing to complete the preparations.

It said yesterday that it had asked the army to help distribute ballot papers to parts of the huge archipelago.

'We have officially sought the help of the Indonesian armed forces to deliver ballot papers to several regions so that they can reach the polling stations on schedule by March 25,' said commission deputy secretary-general Sussongko Suharjo.

The April 5 polls present daunting logistical challenges. Up to 147 million voters are due to flock to more than half a million polling stations to punch four different ballot papers.

They will elect members of the 550-seat national parliament, the provincial and regional legislatures and a new institution called the Regional Representatives' Council.

Newspapers have reported delays in printing the 660 million ballot papers required and problems with contracts to manufacture thousands of aluminium ballot boxes.

But Election Commission chairman Nazaruddin Syamsuddin said the polls would go ahead as scheduled. The commission 'has completed most of the preparations for the election process', he told a seminar.

2004 elections

Suharto's old party to battle Megawati as campaign begins

Agence France Presse - March 7, 2004

Campaigning starts this week for Indonesia's general election, with a resurgent Golkar party that backed former dictator Suharto hoping to capitalize on disenchantment with President Megawati Sukarnoputri's administration.

Even a senior official of Megawati's Indonesian Democratic Party of Struggle (PDI-P) says it has little to offer voters when campaigning begins Thursday for the April 5 ballot.

Roy Janis, PDI-P's executive board chairman, says his party's lack of spirit has opened the way for a Golkar resurgence. "It will be good enough if we can hold on to what we had before," Janis said.

In 1999, the country's first free election in four decades, PDI-P won 34 percent of the vote with widespread support from the "wong cilik" (little people) and from those seeking a change after 32 years of repression under Suharto.

This year's elections for the House of Representatives, regional legislatures and a new chamber representing the provinces will precede the first ever direct presidential vote on July 5.

"Mrs Mega hasn't succeeded yet, hasn't yet been seen to side with the people. Party of the little people, they call it, but in practice we haven't done much," said Janis, 46, a longtime Megawati associate.

He says she believes in reform but has an ineffective cabinet and has not had enough time to resolve the country's problems since being elected by parliament in July 2001.

Golkar predicts it will increase its vote to 30 percent from 22 percent in 1999 when it faced widespread public disgust at its "corruption, collusion and nepotism." The party is set for a comeback after PDI-P failed to implement reform, overcome a six- year-old economic crisis or tackle problems like corruption, said Fahmi Idris, a Golkar deputy chairman.

"In the 2004 election Golkar has a very good chance to be the winner," Idris, 60, said. Recent opinion polls put Golkar first among 24 parties contesting the poll, with PDI-P second.

But many of the country's more than 147 million voters remain undecided. A survey by the International Foundation for Electoral Systems in December and January found 49 percent of Indonesians have not settled on a party.

Many Jakarta residents have told AFP they won't bother voting because politicians care only about themselves, not the people.

"They see that the election will not provide them with a way out of their everyday problems," said Adian Napitupulu, 32, who has been fighting for political change through the City Forum activist group since 1998 when a mass student movement helped topple Suharto.

Napitupulu said Megawati has not spoken out on issues affecting the poor. "So what wong cilik is Megawati struggling for? She isn't." Napitupulu predicts Golkar will win the general elections because of the weakness of the pro-democracy movement, but that Megawati will be re-elected president.

Arbi Sanit, a political science lecturer at the University of Indonesia, said that although there is widespread disappointment with Megawati, it will not translate into the loss of enough seats to cost PDI-P the general election.

He thinks Golkar will lose even more votes, partly because of public dissatisfaction after the Supreme Court cleared Golkar chairman Akbar Tanjung of misappropriating 40 billion rupiah (4.7 million dollars) in state funds.

Frans Hendra Winata, a human rights lawyer, said that despite her failures Megawati will retain the presidency and PDI-P will win the general election simply because of her name.

Megawati is the daughter of Sukarno, the country's revered and charismatic first president forced from power by Suharto in 1966. "The name 'Sukarno' is still selling in this country," Winata said. "That is something deep-rooted in the minds of the peasant farmers, labourers, fishermen and so on."

53% of potential voters don't know election date

Jakarta Post - March 6, 2004

Moch. N. Kurniawan and Bambang Nurbianto, Jakarta -- Just 30 days ahead of the April 5 legislative election, only 47 percent of the country's population is actually aware of that date, according to a survey by the International Foundation for Election System (IFES) and the Polling Center.

The survey, published on Friday, revealed that of the 53 percent who did not know the date, 28 percent had no idea, 14 percent gave the wrong answer and 11 percent knew there would be an election but did not know when.

The survey polled people from all 32 provinces with 1,000 respondents interviewed from January 26 to February 1 and 1,000 others from February 1 to February 6.

"That survey, however, has yet to consider the impact of the new advertisements, with info about the dates for both legislative and presidential elections. The ad was launched in mid-February," explained General Elections Commission (KPU) member Valina Singka Subekti.

The survey, presented by Polling Center Managing Director Yanti B. Sugarda, said that 60 percent of respondents simply punched their favorite political parties and only 19 percent punched both the party and the individual candidates in the legislative election.

It also said 45 percent of respondents already knew about the Regional Representative Council (DPD).

Public ignorance was also reflected in the 20 simulations held in Jakarta since January 13. Evaluations from those simulations, focusing on poorly educated voters, showed that 20 percent of the voters failed to cast the votes properly.

Member of the Jakarta General Election Commission (KPUD), Juri Ardiantoro, said would-be voters were still confused with the ballot paper's new forms, which were completely different from the old ones.

The size of the ballot papers are much larger as now they carry symbols of 24 parties and photographs of all legislative candidates. In the 1999 election, the ballot papers only had the symbols of 48 participating political parties.

"We always explain to the people how to vote properly before simulations, but they still make mistakes," he said.

Most of the mistakes were because people only punched legislative candidates photographs or they punched political party symbols and then candidates from different parties. Some of them did not punch anything on their ballot papers.

The general elections law stipulates that voting will be valid only if a voter punches a party symbol or both the party and its legislative candidate's photograph.

Juri said KPUD also organized simulations in the city's 262 subdistricts since February 21 and the result showed that the mistake level was only 5 percent. However, he admitted that the simulations in subdistrict offices would reflect a readiness of the election organizers instead of the voters understanding on the voting procedures.

Poll monitor lacks power to act against violators

Jakarta Post - March 6, 2004

Tiarma Siboro, Jakarta -- The Electoral Supervisory Committee (Panwaslu) said misuse of state facilities by government officials for party interests might be widespread ahead of the general election, but sadly it had no power to take action against it.

Panwaslu member Didik Supriyanto said on Friday the committee required witnesses to file complaints against alleged violations committed by state officials during their visits to particular regions.

"Based on the elections law, Panwaslu may only take measures against violations that occur during the official campaigning period. We can do nothing against state officials who visit regions and meet their supporters, even if they use state facilities," Didik told The Jakarta Post on Friday.

After visiting victims of the earthquake in the remote Papuan regency of Nabire on Thursday, President Megawati Soekarnoputri flew to the provincial capital, Jayapura, to inaugurate the Papua branch office of her Indonesian Democratic Party of Struggle (PDI-P).

The Papua trip came just a week before the campaign period for the general election kicks off on March 11. Polling day will fall on April 5.

Didik said almost all state officials whose parties would contest the general election abused state facilities for their political interests.

"We cannot forbid them because the law allows them to do so. That's why Panwaslu can only call on them to behave ethically," Didik said.

Other state officials who lead political parties include Vice President Hamzah Haz, of the United Development Party (PPP); House of Representatives Speaker Akbar Tandjung, of the Golkar Party; People's Consultative Assembly Speaker Amien Rais, of the National Mandate Party (PAN) and Minister of Justice and Human Rights Yusril Ihza Mahendra, of the Crescent Star Party (PBB).

Another Panwaslu member, Topo Santoso, warned of more rampant misuse of state facilities during the campaign period as state officials would campaign for their respective parties.

He urged members of regional Panwaslu to take tough action against officials who violated the rules, and suspend their parties from the electoral campaign.

"Using state facilities during campaigning is a violation and parties that breach the regulation are liable to disqualification," Topo, also a lecturer from the University of Indonesia, said while briefing members of East Java Panwaslu in Surabaya. He predicted vote buying and unauthorized campaigning would dominate elections law violations during the campaigning period.

BIN chief stirs poll row over conflict of interest

Straits Times - March 6, 2004

Jakarta -- Indonesia's intelligence chief Hendropriyono has sparked off a controversy by allowing himself to be listed as a national campaigner for the ruling Indonesian Democratic Party of Struggle (PDI-P) in the coming election.

Mr Didik Supriyanto, a member of the Election Supervisory Committee, has raised objections to this, warning that Mr Hendropriyono could misuse intelligence reports for the benefit of PDI-P and its leader, President Megawati Sukarnoputri.

He has urged the intelligence chief who heads the National Intelligence Agency (BIN) to forgo his plans. BIN is the coordinating agency for all intelligence activities in the country.

"If Megawati is a true state leader, she must not allow Hendropriyono to campaign for any political party," Mr Didik said.

Mr Hendropriyono officially joined the country's largest party in 2001 and is currently a member of the party's consultative board. "BIN must remain neutral and its chief should be banned from campaigning," Mr Didik said.

Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono also joined in the debate and said BIN reports belonged to the state. "BIN intelligence information must not be used for personal interests, let alone a political party," he said.

Voicing a similar concern, Vice-President Hamzah Haz said that it would be difficult for Mr Hendropriyono to maintain his credibility as intelligence chief if he served one political party. "Although other state officials may serve as campaigners, the BIN chief has to show his neutrality," Mr Hamzah said on Thursday.

Another voice of dissent came from a senior PDI-P member, Mr Soetardjo Soerjogoeritno, who is also a House deputy speaker. Mr Soetardjo said BIN, like the Indonesian Military (TNI) and National Police, should not side with any party. "I think it is better for him [Mr Hendropriyono] to stay neutral in the elections," Mr Soetardjo said.

In the absence of a regulation on the intelligence chief's political rights, PDI-P listed Mr Hendropriyono as one of its national campaigners on Wednesday. PDI-P deputy secretary-general Pramono Anung said Ms Megawati had told all party members in the Cabinet to campaign, but "Hendropriyono may be exempted".

Chinese Indonesians seek political representation

Radio Australia - March 2, 2004

Indonesia goes to the polls in next month, with President Megawati Sukarnoputri expected to retain power. But this time around, the president's campaign is doing little to influence a small group of once-loyal supporters.

Chinese Indonesians, who have traditionally shunned politics to focus on business, are now showing a new willingness to get politically active.

Presenter/Interviewer: Marion MacGregor Speakers: Eddie Lembong, Chairman, the Chinese-Indonesian Association; Arief Budiman, Professor of Indonesian, Melbourne University

MacGregor: Most opinion polls are showing Megawati Sukarnoputri and her PDIP party sitting on a comfortable lead. But the daughter of Indonesia's founding father Sukarno could be facing a new challenge, with the possible loss of a small but influential group of traditional supporters. This year, Chinese Indonesians, who comprise about 4 per cent of the country's population, have become actively involved in campaigning for a number of political parties, and several have been nominated as parliamentary candidates. Eddie Lembong is the Chair of the Chinese-Indonesian Association.

Eddie Lembong: We have openly stated ... we appeal that Chinese Indonesians will support all the honest and qualified Chinese Indonesian candidates. The last straw breaks the back of the camel. That is to say, we can be very decisive when we participate.

MacGregor: In the past ethnic Chinese in Indonesia have mostly supported parties that have expressed a commitment to outlawing discrimination, which continues to be a serious problem. Resentment over disproportionate wealth among Chinese is still present. In 1998 it led to anti-Chinese riots, killing hundreds of people and prompting thousands to flee to neighbouring countries. Many of those who remained in Indonesia have been reluctant to play an overt role in the country's development. This is why the political mobilisation of Chinese Indonesians is being seen as particularly significant, and especially the formation of ethnic Chinese political parties. The Chinese parties say they want to end isolation and discrimination. But some are wary of race-based politics. Harry Tjan Silalahi is a founder of the Centre for Strategic and International Studies in Jakarta, and a former General Secretary of the Catholic Party of Indonesia.

Harry Tjan Silalahi: It depends on how they act if they overdo their participation it will create jealousies. As you know Indonesia are comprised of so many minorities, they envy each other basically, and so if a Chinese grouping as a group, exclusive group comes up faster and richer and so on, it may create unnecessary attractions or envies or jealousy from the other groups, yes.

MacGregor: This year, no Chinese Indonesian party succeeded in attracting the membership required to take part in elections. So Chinese Indonesians will be represented only as candidates for other political parties. And Harry Tjan Silalahi believes, they're better off that way.

Harry Tjan Silalahi: It seems so and they realise that and they did so ... so for instance even in PKB, the party of Gus Dur, there are lots of them, so they are very much scattered into these mainstream parties and it is a good sign you know.

MacGregor: Among Chinese Indonesians themselves, there's little agreement over whether to go it alone or opt for assimilation, according to Arief Budiman, Professor of Indonesian at the University of Melbourne.

Arief Budiman: Well there are two views now in Indonesia, and both have strong supporters. One is saying that it's better for the Chinese to come out from the closet and fight as Chinese Indonesians and make a party a Chinese Indonesian party something like that, like what happened in Malaysia. But some people said that in the old days under Sukarno and Suharto, those Chinese parties, under Sukarno there was a Chinese party, and then they worked together closely with the Communist Party, that was in 1965, when the military came to power and destroyed the communist party, the Chinese were also being destroyed by the military. And that's a very bad experience, traumatic as a matter of fact for the Chinese. So many Chinese say don't make a party based on ethnicity, it's better for the Chinese to become Indonesians to be absorbed to the Indonesian community.

MacGregor: While Chinese Indonesians feel they need better political representation, they won't necessarily vote for Chinese candidates who push ethnic issues, says Arief Budiman.

Arief Budiman: I think many Chinese they look at the candidate that fights for democracy and economic development. They don't consider themselves Chinese any more but as Indonesians ... so there is no so-called Chinese interests.usiness.

Mr Moerdono, 26, a driver for a tourist agency, is concerned that any upheaval during the upcoming election will damage his livelihood.

"If troubles erupt during the elections, I will be the first to be affected. Tourists will stop coming. How do I feed my children?" said the father of two young boys.

If political leaders keep their word, Mr Moerdono need not worry as Haji M. Sudarno, the local leader of Golkar, agreed: "Our economy will be affected as tourism is our primary source of revenue."

His view is shared by leaders of two major political parties -- the Indonesian Democratic Party -- Struggle (PDI-P) and the United Development Party (PPP). They fear a troubled Yogyakarta during the election will keep away not just tourists but potential investors as well.

Indeed, as part of a continuing effort to encourage tourists and businessmen to visit Yogyakarta, Indonesia's national airline Garuda now flies direct to Kuala Lumpur.

PDI-P leader Haji Juwanto talked about developing cottage industries such as making leather jackets in religious schools for export.

Mr Muslih Elyas, the local secretary of the Islamic PPP, hopes to see more investments from Singapore.

Golkar's Haji M. Sudarno is confident that the election will be smooth as the security authorities are now better placed to handle incidents, especially with a clear demarcation of responsibilities between the army and police.

But should the duty to ensure a safe and sound election be the responsibility of the security authorities only? Academic A. Kardiyat Wiharyanto, in a local newspaper article, said political leaders have a key role by ensuring party members and sympathisers do not create trouble.

Another group that could cause trouble, said Mr Agus Triyatno, a member of an independent monitoring body comprising individuals from various sectors, is the security arm of political parties.

He said some of these groups have split loyalties, migrating from one party to another -- often the new and smaller parties.

One solution, said Mr Kardiyat, is for the political parties to abandon their own security arms.

"In fact, in previous elections these security personnel were also involved in the clashes between different groups to protect their own party members and sympathisers," he said.

He suggested that in this election, any party which breaks the law should be sanctioned and prohibited from campaigning. In the meantime, tourism worker Moerdono is hoping for the best.

Abandoned by Golkar, youth affiliate seeks new image

Jakarta Post - March 3, 2004

Rais Hidayat, Jakarta -- Several youth organizations were closely tied with the ruling Golkar party under New Order regime. They were its right arm, ready to guard any of its events and to mobilize support. They gained considerable influence, even if some of it was out of fear or resentment. Its activists gained economic access as well as political benefits like guaranteed seats in the legislature. Among such organizations was the Pancasila Youth (Pemuda Pancasila) with its well known leader Yapto Soelistio Soerjosoemarno, its chairman from 1996 to 2001.

Set up on October 28 1959 the organization was initially affiliated to the Independence Vanguard Party (IPKI) contesting the 1955 and 1971 elections with poor results. The party, founded by leading generals AH Nasution, Subroto, and Aziz Saleh in 1954, secured only four seats in 1955 and didn't even gain one seat in 1971.

In 1973 IPKI was merged into the Indonesian Democratic Party (PDI) with other nationalist and Christian parties, but the previous supporters increasingly identified themselves with Golkar, including those from Pancasila Youth. The organization started to totally support Golkar since the 1982 election.

However starting in the late 1990s it felt rather disturbed with the strong accommodation of the Association of Indonesian Muslim Intellectuals (ICMI) within the secular, nationalist party.

But at least until May 1998 in which Soeharto quit the presidency, the organization still joined other youth organizations closely tied to Golkar to defend the president, who also led Golkar's board. They were in direct confrontation with masses of students who wanted to bring Soeharto down.

Eventually though, the Pancasila Youth seemed to begin to feel unhappy with Golkar -- who, as the "New Golkar Party", needed to widen its support base at the cost of old loyalists. "Golkar Baru" no longer needed association with its former loyalists, who were associated closely with the New Order's style of stepping over others.

The Pancasila Youth must have felt it was sacrificed -- it had contributed millions of voters, it claims, to Golkar who won all four general elections. In 1999 the organization declared it was independent from Golkar, however hard it would be to wash off the association in the public eye.

This was followed by the declaration of the Pancasila Patriots Party on June 1, 2001, at the Proclamation Monument, Jakarta. Founder Yapto was then elected a year later as the president of the new party.

The declaration also meant it was independent from its previous parent party IPKI, a revival of the 1971 party, which in 1999 secured only one seat in the legislature.

The party's Secretary General, Sophar Maru Hutagalung, said that now only a few Golkar's legislative candidates are from the organization, while ahead of elections the organization usually contributes some 500 cadres.

Hutagalung says the reason to set up the party is not mere dissapointment with Golkar. The founders see that "globalism, separatism, federalism, and fundamentalism threaten the very existence of the country," and that the state ideology Pancasila is the only glue to the nation.

The party is optimistic to gain three percent of the House seats with the confidence that most of its claimed six million members will vote for it. Some of its executives, however, such as Yorris Raweyai are still with Golkar.

What about outside supporters? That would depend on how fast, in the short time possible, the party can free the youth organizations' image as one of thugs.

The image is still there, says Sophar, although the party now accommodates businessmen and intellectuals, and is more focused on building cooperatives in the regions.

Yapto is also a former deputy chairman of the Young Generation for Indonesian Renewal (AMPI) for 1984-1989 period and deputy chairman for the Communication Forum of Indonesian Veterans' Children (FKPPI) for the 1991-1995 period. Both were affiliated to Golkar.

But whether and to what extent these two organizations will provide support to Golkar is not clear. There are other parties led by former Golkar and military men that will compete for the support, those including the Justice and Unity Party led by Gen.(ret) Edy Sudrajat and the Concern for the Nation Functional Party (PKPB) led by Gen.(ret) Hartono.

Some regions are considered its potentials, namely Nanggroe Aceh Darussalam, North Sumatra, Lampung, South Sumatra, Central Sulawesi, West Nusa Tenggara, dan East Nusa Tenggara.

Ansor rejects possible Gus Dur candidacy

Jakarta Post - March 3, 2004

Kurniawan Hari and Muninggar Sri Saraswati, Jakarta -- Ansor, a youth group of Nahdlatul Ulama (NU), the country's largest Muslim organization, has announced that it will not support the possible presidential candidacy of former NU chairman Abdurrahman "Gus Dur" Wahid.

Instead, the group said it would search for a "more suitable position" for Gus Dur, who was president from October 1999 to July 2001 before being impeached.

"We all respect Gus Dur and we will find a more suitable position for him. We will support a candidate who has never been president," Ansor acting chairman Zuhdi Muhdlor said here on Tuesday.

Ansor had been chaired by Gus Dur relative Syaifullah Yusuf, who resigned the post recently after being appointed secretary- general of the National Awakening Party (PKB), which has close ties with the NU. Syaifullah is known to be an opponent of Gus Dur, PKB's patron and cofounder.

Zuhdi acknowledged that according to organizational hierarchy, Ansor would fall in step with the NU, which is chaired by Hasyim Muzadi, when it came time to back a presidential candidate.

Hasyim is likely to play some role in the presidential election on July 5. He could either be nominated by the PKB or by the Indonesian Democratic Party of Struggle (PDI-P) as Megawati Soekarnoputri's vice presidential running mate.

Zuhdi refused to reveal Ansor's preference for presidential candidate, saying there were numerous NU members in different organizations and political parties. "There are so many NU members, including Gus Dur, Hasyim Muzadi, Jusuf Kalla and Solahuddin Wahid," he said.

Separately, Gus Dur, who hopes to make a run for the presidency, met with Gen. (ret) Wiranto, a presidential hopeful from Golkar Party, on Tuesday. Gus Dur also met with Yogyakarta Governor Sultan Hamengkubuwono X, who earlier withdrew from Golkar's series of conventions to pick the party's presidential candidate.

The conventions, which began in August last year and will last until this April, are aimed at selecting the strongest presidential and vice presidential candidates from the party. There are now six potential candidates, down from 10 in August.

In the morning, Gus Dur, who hopes to win the PKB's presidential nomination, held a closed-door meeting with the Sultan, who said the two discussed the legislative and presidential elections. "There was no talk about political support," the Sultan said.

Hamengkubuwono withdrew from the Golkar conventions in protest over the acquittal by the Supreme Court of Golkar Party leader and House of Representatives Speaker Akbar Tandjung over a graft case.

Gus Dur also visited the Al Asy'ariyah Islamic boarding school in the Central Java town of Wonosobo, about a two-hour drive northwest of Yogyakarta.

The boarding school, led by NU figure Kyai Munthohar, was hosting a gathering of Koran readers from across Java and Madura. Akbar, who also has his eyes on the presidency, and Siti Hardiyanti "Tutut" Rukmana, a presidential hopeful from the Concern for the Nation Functional Party (PKPB), visited the boarding school earlier in the day.

Gus Dur's visit to the school coincided with a visit by Wiranto. Asked whether the meeting was aimed at the possibility of using the PKB as his political vehicle for the presidency, Wiranto said: "Politically speaking, it probably was. It depends on how you see it." He added that he would not accept a nomination as a vice presidential candidate. Wiranto, who was dismissed as coordinating minister for political and security affairs by Gus Dur in 2000, met with Gus Dur last month during the wedding of the daughter of a noted NU ulema in East Java.

Susilo lays low by Megawati's side

Jakarta Post - March 2, 2004

Jakarta -- As the election draws close, political parties are now openly touting their possible presidential and vice presidential candidates in the hope of drumming up enough support to grab power.

The ruling Indonesian Democratic Party of Struggle (PDI-P) added on Monday senior Muhammadiyah leader Malik Fadjar to its list of possible running mates of party standard-bearer Megawati Soekarnoputri.

Meanwhile, Crescent Star Party (PBB) chairman Yusril Ihza Mahendra revealed for the first time on Monday that he had approached Coordinating Minister for Political and Security Affairs Susilo Bambang Yudhoyono as his running mate in the upcoming election.

"Don't ever discount the presence of Malik Fadjar; he is also among those tipped as a vice presidential candidate," senior PDI-P leader Taufik Kiemas said.

Earlier, Taufik had mentioned Nahdlatul Ulama (NU) chairman Hasyim Muzadi, Golkar chairman Akbar Tandjung and United Development Party (PPP) chairman Hamzah Haz as potential running mates of Megawati.

"The most important thing is that these people share a common platform with PDI-P that is nationalist," said Taufik, who is also the husband of the incumbent, President Megawati.

Megawati, who took over the national leadership in July 2001, is seeking a new, full five-year mandate in the country's first-ever direct presidential election on July 5. Her lackluster performance, especially in fighting the country's endemic corruption, has raised concern over whether the party will win the upcoming election.

The naming of Malik Fadjar, who serves as minister of national education, as a vice presidential candidate, is likely to divide the country's second-largest Muslim organization Muhammadiyah, which has thrown its support behind former chairman Amien Rais.

Should Megawati pick Hasyim as her running mate, the country's largest Muslim organization, Nadhlatul Ulama, is likely be torn between its chairman and former president Abdurrahman Wahid, who has been nominated by the National Awakening Party (PKB) as its presidential candidate. NU set up PKB ahead of the elections in 1999.

Taufik claimed that these names had been discussed by the PDI-P leadership and they are calculating which could boost the vote for Megawati.

While the naming of Malik Fadjar was clear, Yusril did not say outright that he wanted Susilo, who is his boss in Megawati's Gotong Royong cabinet, as his vice presidential candidate.

Yusril has been nominated as presidential candidate by PBB, while Susilo by the newly established Democratic Party (PD).

Yusril said preliminary talks had not determined who would be the presidential candidate.

"Yes, there have been some talks between PBB and him (Susilo) and his close aides. We will announce it to the public soon," he told the media after attending a House plenary meeting here.

His statement came just a day after PBB deputy secretary-general Abdul Kadir Lamanele said that the party would ask Susilo to be the vice presidential running mate of PBB leader Yusril in the presidential election scheduled for July 5.

Golkar, the country's second-largest party, is also in the process of selecting its presidential and vice presidential candidates.

Small parties aiming to make big gains

Straits Times - March 2, 2004

Lee Kim Chew -- Indonesia's biggest political parties expect to hang on to the votes they won in the 1999 polls, but two emerging Islamic parties are confident of making gains in April's parliamentary elections.

Lawmaker Jakob Tobing of the Indonesian Democratic Party of Struggle (PDI-P), which is led by President Megawati Sukarnoputri, believes his party can garner 35 per cent of the vote because it has consolidated its support in the rural areas.

Golkar's deputy chairman Fahmi Idris is optimistic about improving on the ruling party's results in the last elections, when it won 22 per cent of the vote.

"Our target is 33.9 per cent this time," he told a seminar organised by the Institute of Defence and Strategic Studies at the Mandarin Hotel in Singapore yesterday.

He was equally confident that the opposition parties would be institutionalised in Indonesia's political system after the polls, regardless of the outcome, unlike the old days of one- party rule.

The deputy chairman of the National Awakening Party (PKB), Dr Muhammad Hikam, said the lack of reforms under Ms Megawati gave his party a chance to make new inroads in the elections.

"We expect to increase our share of the vote from 12 per cent to 22 to 25 per cent," he said. "The next elections should result in fundamental change, not just regime change."

The vice-president of the Justice Party (PKS), Mr Almuzammil Yusuf, sees it as a new force in the political firmament. As a moderate Islamic party, it had growing support from university students and intellectuals with its campaign for reforms, he said.

The PKS, which has six MPs in parliament, expects to win 30 seats in April. It is counting on support from voters under 25 years old, who comprise one-third of its supporters. "We are still a small party, but one which is growing. We still need to struggle very much," said Mr Almuzammil.

Retired general Wiranto, another presidential aspirant who spoke at the seminar, said he still had a lot of support within Golkar to be its candidate. Questions had arisen about his candidacy after Golkar chief Akbar Tandjung, who is also planning to run for president, was acquitted of corruption charges.

Said Gen Wiranto: "I hope the party will choose its presidential candidate in a fair manner." But he has not ruled out joining other parties which have asked him to be their presidential candidate. "Which party I go with is a question of strategy which I cannot make public now," he said.

Rifts may hurt Islamic groups

Straits Times - March 1, 2004

Mafoot Simon -- All was quiet in the Islamic religious school on the outskirts of this city at the weekend, as students and workers went about their business, in stark contrast to a fortnight ago.

Then, a convoy of cars heralded the arrival of presidential hopeful Siti Hardiyanti Rukmana and an entourage of VIPs out to woo the heartlander vote.

Better known as Mbak Tutut, the eldest daughter of former president Suharto, had pulled into town to tap a yearning for the good old days of her father's rule.

"There were so many important figures, and so many cars," said one resident who declined to be named.

The visit, and another by heads of religious schools, known as pesantren, to Mr Suharto's house in Jakarta a few days later, caused anguish within the 40-million-strong Nahdlatul Ulama (NU), Indonesia's biggest Islamic organisation.

Some observers say the prospects of the Nation Awakening Party (PKB) -- the party that draws most of its backing from the NU -- could be affected in next month's legislative election.

In 1999, East Java yielded the PKB just one seat more than incumbent President Megawati Sukarnoputri's Indonesian Democratic Party (Struggle) (PDI-P). This time, 100 seats in the regional parliament are up for grabs.

NU leaders have said that the religious school heads who called on Mr Suharto were not from the NU hierarchy.

The irrepressible NU founder and former Indonesian president Abdurrahman Wahid, known as Gus Dur, was more graphic. He described them as 'peanuts' and leaders with only a handful of followers.

There have also been denials of any party ties. "We want to make it clear that Pesantren Sidogiri has no affiliation with any political party," declared the manager of the 257-year-old pesantren, Haji Bahruddin Thoyyib, when The Straits Times went to visit.

It had issued a press statement denying that its leader, K. H. Nawawi Abdul Djalil, was aware that Mbak Tutut would be present at the Feb 19 event, which was meant to be the official opening of the year-old Pesantren Cangaan II -- part of a network of pesantren run by the Nawawi family.

It also denied that its leader was among the pesantren heads who visited Pak Harto at Cendana, on Feb 23.

The furore over the visit is but the latest in a series of public spats among leaders of the NU and the PKB as election fever rises.

During the past few months, several pesantren leaders have jumped ship and joined the Islamic United Development Party (PPP). Prominent among them was a pesantren head from Situbondo, K.H. Fawaid As'ad, who once said: 'Why should I be loyal to PKB? What do I get from Gus Dur?' Academic Daniel Sparringa remembered that during the 1999 election, K.H. Fawaid was instrumental in bringing his followers into the fold of the PKB from the PPP. And now, he has urged votes for the latter also.

And when NU leader Hashim Muzadi hinted that its members should support the PKB in the legislative election, it raised complaints from other NU members in rival political parties. Meanwhile, Mr Abdurrahman has said he wants to stand as a candidate in the presidential election in July.

Not long after, Ms Megawati, leader of the PKB's rival in East Java, visited Mr Hashim with an offer to be her running mate.

The developments caused much hand-wringing within the NU. "I have not seen something like this the last five years," said Dr Sparringa.

And although the PKB tried to downplay the move by some pesantren heads to the PPP, it is important because one, led by Kiai Haji Fawaid, has a big following all over Madura and the region known as the Horse Shoe.

The number of the alumni is not immediately available but the students now studying in the pesantren number more than 20,000, he said.

"Kiai Fawaid has already asked his alumni to follow in his footsteps to leave PKB and join PPP," he said. (Kiai is a form of address like Mr.) Journalist Faisol Taselan, of Media Indonesia, said the move by Kiai Fawaid recently was the worst that could have happened to the PKB. He is certain it would have a negative impact on the party's chances at the election.

"Mbak Tutut may woo the breakaway group from PKB to support her but the real beneficiary will be PPP," he said.

But Dr Sparinga cautioned that the big question is whether Kiai Fawaid's departure from the PKB will benefit the PPP substantially. "Although symbolically it is very important, it doesn't mean automatically it would affect the votes for PKB in the election." One NU leader clearly disappointed with recent developments within the organisation is its regional leader, Mr Ali Maschan Moesa, who laments the trend of too many NU leaders spending more time on politics than religious works.

He said that was why, in 1973, the NU stopped being a political party after 21 years. "The basis of politics is conflicts," he said in his modest house in central Surabaya. He insisted that the PKB, set up for the 1999 election, was not the political arm of the NU. The NU was merely "facilitating the birth of PKB during the euphoric years of the late 90s".

"Politics is about power but power is limited while those who yearn for power are many. That"s why the conflicts,' he said. He admitted rivalry soon appeared between the NU and PKB leadership.

Academic Abdul Salam Nawawi, of the Institut Agama Islam Negeri (Iain), said that although the relationship among some NU leaders and the PKB was "less harmonious" now, the NU is still strong in East Java. He was confident that the differences of opinion within the NU leadership would not split the party.

Unlike Mr Ali, Mr Abdul Salam saw no harm in religious leaders taking part in politics. "Ulama will not be effective if they try to fight corruption only through sermons. They must have the political strength to carry out their plans to fight corruption. Also, not everyone is corrupt. The important thing is to find ways and means to increase the number of this group of people," he said.

PKB candidate Mohammad Saeri was not concerned about NU leaders or pesantren heads who switch parties -- NU leaders Hasyim Muzadi and Alwi Shihab were still icons in the eyes of NU members. He described the movements as "zig-zagging" in the interests of their own pesantren. But Pasuruan is infamous as a trouble spot during elections because "our people are easily provoked", said Mr Saeri.

It remains to be seen whether the internal conflicts within NU and the "zig-zagging" of some pesantren heads will allow a peaceful poll process in East Java.

Suharto's daughter causing ripples

Straits Times - March 1, 2004

Pasuruan -- Her father was known as the Smiling General and some have already dubbed her party the Smiling Party. But Suharto's daughter, Siti Hardiyanti Rukmana, is leaving furrowed brows around Java.

Her tour of some pesantren here, followed by a visit by religious leaders to the former president in Jakarta, has rocked Nahdlatul Ulama (NU), the biggest Muslim organisation in Indonesia.

Better known as Mbak Tutut, the presidential candidate for Partai Karya Peduli Bangsa (PKPB) is also creating apprehension among some political parties with her recent manoeuvrings. In Yogyakarta, for instance, she is said to have met a former leader of the Indonesian Democratic Party of Struggle (PDI-P), who was recently "retired" by the party.

Mbak Tutut is always photographed smiling and prompted one respondent in an SMS poll conducted by a local paper in Java to hope she would win the presidential elections. "At least we'll have a pretty president." But what are her chances of becoming president? Not this time, some analysts and political leaders told The Straits Times.

They gave two reasons: One, she may be known as Suharto's daughter but ordinary people do not know her as a presidential candidate for the new party. They don't even know much about the party.

Second, she is not the head of the party, unlike Ms Megawati Sukarnoputri, the Indonesian President who is the leader of the Indonesian Democratic Party of Struggle (PDI-P).

"She should wait another five years perhaps," said Mr Faisol Taselan, a journalist with Media Indonesia in Surabaya.

Parties keep things calm in Central Java

Straits Times - March 1, 2004

By Mafoot Simon THE story goes that motorists worried about accidents during Indonesian elections carry the colours of all contesting parties -- it's their ticket to a safe passage.

But that was in the past.

Now, the mood here seems to be one of making sure that the two- stage elections -- to choose members of the legislature as well as a new president of the country -- proceed smoothly without wrecking business.

Mr Moerdono, 26, a driver for a tourist agency, is concerned that any upheaval during the upcoming election will damage his livelihood.

"If troubles erupt during the elections, I will be the first to be affected. Tourists will stop coming. How do I feed my children?" said the father of two young boys.

If political leaders keep their word, Mr Moerdono need not worry as Haji M. Sudarno, the local leader of Golkar, agreed: "Our economy will be affected as tourism is our primary source of revenue."

His view is shared by leaders of two major political parties -- the Indonesian Democratic Party -- Struggle (PDI-P) and the United Development Party (PPP). They fear a troubled Yogyakarta during the election will keep away not just tourists but potential investors as well.

Indeed, as part of a continuing effort to encourage tourists and businessmen to visit Yogyakarta, Indonesia's national airline Garuda now flies direct to Kuala Lumpur.

PDI-P leader Haji Juwanto talked about developing cottage industries such as making leather jackets in religious schools for export.

Mr Muslih Elyas, the local secretary of the Islamic PPP, hopes to see more investments from Singapore.

Golkar's Haji M. Sudarno is confident that the election will be smooth as the security authorities are now better placed to handle incidents, especially with a clear demarcation of responsibilities between the army and police.

But should the duty to ensure a safe and sound election be the responsibility of the security authorities only? Academic A. Kardiyat Wiharyanto, in a local newspaper article, said political leaders have a key role by ensuring party members and sympathisers do not create trouble.

Another group that could cause trouble, said Mr Agus Triyatno, a member of an independent monitoring body comprising individuals from various sectors, is the security arm of political parties.

He said some of these groups have split loyalties, migrating from one party to another -- often the new and smaller parties.

One solution, said Mr Kardiyat, is for the political parties to abandon their own security arms.

"In fact, in previous elections these security personnel were also involved in the clashes between different groups to protect their own party members and sympathisers," he said.

He suggested that in this election, any party which breaks the law should be sanctioned and prohibited from campaigning. In the meantime, tourism worker Moerdono is hoping for the best.

Mega loyalist who does not bow to pressure

Straits Times - March 1, 2004

Mafoot Simon -- The sense of anxiety is palpable as six men try to stay calm. After all, they are in their party leader's house to complain about another party official.

For almost three hours, they try to convince Mr Haji Juwanto, head of the Indonesian Democratic Party-Struggle (PDI-P) here, that the party should take action.

Holding the official complaint letter, Mr Haji, 51, tells them he will raise the matter at a higher level but then proceeds to lecture them on national politics.

Every nomination, he says, is decided by the PDI-P's national boss, President Megawati Sukarnoputri -- framed in a picture with her father, first president Sukarno, on the wall.

There is a bigger consideration at the national level and all should have faith in that decision, the local leader says, recounting how his branch nominated him to stand for the national parliament but the party's central committee decided he should contest the regional parliament.

Next month's legislative polls will elect members of the national parliament, the regional parliament for city and regency and the regional parliament for the provinces from among 24 political parties.

Members of the Regional Representatives Council, comprising non- partisan individuals in the constituencies, also will be chosen.

Mr Haji's loyalty to Ms Megawati is absolute. He proudly displays several pictures of the President and Mr Sukarno in his house.

Only once during the meeting does he hint that enough is enough when he tells of how another party leader threatened to quit and join a rival party. "'Go ahead', I told him," he said.

Later, Mr Haji, whose house in this village just outside Yogyakarta is only slightly bigger than a five-room flat, tells The Straits Times why he did not give in to the demand -- the complaint was one man's, the leader of the visiting party.

And he was not an ordinary disgruntled party cadre. The party had nominated him for the election scheduled for April 5 but put him third on the ticket, explains Mr Haji.

"He should actually be thankful," said Mr Haji, a veteran of grassroots politics who was an activist during his student days.

"Legislative candidates should have a macro view of politics and the need to adapt strategy to changing political situations." At least the legislative candidate who lodged his complaint with Mr Haji decided to do it personally. Many others refer their complaints to the Panwaslu, an independent watchdog comprising individuals from various sectors, including the media, which ensures that election rules are not breached.

Some are not happy because the nominated candidates are outsiders with no grassroots work in the area.

"We consider these complaints as internal party matter and refer such complaints to the parties," said Panwaslu member Agus Triyatno, 36.

Late ballot paper printing threatens poll

Jakarta Post - March 2, 2004

Moch. N. Kurniawan, Jakarta -- The printing of ballot papers may be moved further back as film printing firms have still not finished the templates for the ballots, which will greatly delay the delivery of the election materials to all the polling stations.

KPU member Mulyana W. Kusumah, who chaired the ballot paper tender committee, said on Monday the companies would be delayed at least until Thursday to finish all 211 templates for the election of provincial legislative (DPRD I) members and 1,744 templates for the election of regency/municipality councillors (DPRD II).

KPU has named State Printing Firm (PNRI) and Grafitecindo to produce the templates for the elections.

Mulyana, however, played down the impending delay. "So far, the situation is still under control," he told reporters. The delays have forced the KPU to revise the schedule of ballot paper printing by four weeks to March 1 and their arrival to polling stations by five days to March 30 after agreeing on a condition that the printing jobs get done at extra speed.

Earlier the commission set a March 25 deadline for all election materials to arrive at polling stations across the country.

The KPU selected 18 companies to print the 660 million ballot papers for the April 5 legislative election.

Separately, CV Riski Grafis, a member of a company led by Dharma Anugerah said they would complete the printing of 27.1 million ballots in 10 days at full operational capacity.

"But we haven't received all the materials yet for 23.4 million papers Regional Representative Council (DPD) members. If we are forced to speed up the printing work, we might have to subcontract some of it out," Ari Gania, senior executive of Riski Grafis said.

He complained about the size of the template too, as it was larger than standard office paper, making it difficult to print the first 3.7 million ballot papers.

Riski Grafis is responsible for ballot papers for the DPR candidates in East Java electoral district IX, for DPD in West Java electoral districts III to X.

Temprina Media Grafika group, which won the contract to print 48.4 million ballot papers, promised to finish the job in three to four days.

Temprina, which includes Newspaper Publishers Union (SPS) members PT Temprint, PT Gramedia and PT Sinar Agape, will print ballot papers for the election of House members in South Sulawesi electoral district I, II, Lampung II, East Java II, III, IV, V, VII, X, East Java I, East Nusa Tenggara I, II, Papua, West Kalimantan and for the DPD in East Java I, VI, VIII, West Kalimantan, West Nusa Tenggara and East Kalimantan.

Using a simple calculation of the maximum 10-day period to print ballot papers and adding the time for delivery of polling materials to the capital cities of Papua, Maluku and Gorontalo (it took eight days in past elections), some provinces will only receive the ballot papers for the election of House and DPD members by March 20. It will take longer to reach the regencies in those provinces and more time to reach each village polling station.

If the printing of the ballot papers for the election of DPRD I and DPRD II start on March 4 or 5, it could be very tight.

Racing against time, KPU plans to ask the Air Force to help speed up the delivery of ballot papers in some regions, including Papua, West Irian Jaya, Maluku, Kalimantan, Aceh, East Nusa Tenggara and the Riau Islands.

The Air Force will help deliver the ballots to airports, and the Regional Military Command (Kodam) will send the ballots to regencies/municipalities, KPU deputy secretary general Sussongko Suhardjo said.

No guarantee that elections will run smoothly: TNI chief

Kompas - March 3, 2004

Jakarta -- Although optimistic, the chief of the Indonesian armed forces (TNI), General Endriartono Sutarto, has said that there is no guarantee that the 2004 general elections will proceed without security disturbances. In order to anticipate such disturbances, Sutarto has asked the Indonesian police to involve TNI personnel, who have years of experience in elections, before the event.

"Is there a guarantee that there will be no disruption to the elections? No! But I am not being pessimistic. A few disruptions are normal. Even in a soccer match there are fights", said Sutarto in a workshop titled "State security and anticipating terrorist threats in the lead up to the 2004 elections" which was held on Tuesday March 2.

Sutarto explained that there is a possibility that disturbances will arise during the period of campaigning by the political parties which involve thousands of people. In order to minimise disturbances, Sutarto has explicitly asked the national police to take legal actions against those who violate the electoral laws. To date, his assessment is that the police on the ground have not been capable of doing anything when they encounter such violations.

"I have come across groups of youths riding on the roofs of buses on public streets. There are police there in the street but they just do nothing", he said. Understanding the limitations of the police, Sutarto has made an offer for TNI personal to be involved in the organisations of the elections from the start. "Don't go asking for the TNI's help after the situation has already turned difficult", he said.

Sutarto again spoke about the possibility of disruptions to the elections though a judicial review of the election laws. "This must be anticipated. Don't leave it until a judicial review becomes a means to foil the elections", he said. Sutarto acknowledged that he had already warned the Constitutional Court to this effect. "A judicial review is a legal motion, but can be used to foil the elections. Because of this, the Constitutional Court needs to be more selective in responding to judicial reviews".

Demonstrations

Meanwhile, the Islamic Youth Movement (GPI) demonstrated at the Constitutional Court yesterday, rejecting the decision to abolish the prohibition against ex-members of the Indonesian Communist Party (PKI) becoming legislative candidates. The youths were met by the head of the Constitutional Court, Jimly Asshiddiqie. They said that the PKI was a historical deformity, anti-democratic and anti-God.

According to Erik, one of the members of the Jakarta branch of the GPI, the majority of the victims of the PKI massacres were from the Islamic community. Therefore it was difficult for the Islamic community to forget what was done by the PKI. "We regret the statements by the Pak Hasyim and Syafii Maarif(1) who did not make an issue of the Constitutional Court's decision. The Constitutional Court's decision could [result in] a reemergence of communist ideology", said Erik.

In response to these calls, Asshiddiqie explained that truth and justice do not always side with the majority. Truth and justice can also side with the minority. "Democracy, as well as adhering to the principle of the people's sovereignty, also adheres to the sovereignty of the law. The people's sovereignty must be controlled by the law, and the highest law is the constitution", he said.

The public must be able to classify the PKI in terms of being an organisation, its communist/Leninist teaching, and the adherence to communist views. "The PKI, based on MPRS Decree Number XXV/1996 has already been disbanded and cannot be brought back to life. However in reference to individual people [they] must be seen [in terms of their] involvement [in what actually happened]. Now, these people have already been punished but without going through the courts", said Asshiddiqie. (VIN/INU)

Notes:

1. Hasyim Muzadi, chairperson of the Islamic mass organisation Nahdlatul Ulama. Syafii Maarif, chairperson of the Islamic mass organisation Muhammadiyah.

[Translated by James Balowski.]

Corruption/collusion/nepotism

World Bank refutes corruption allegation

Jakarta Post - March 3, 2004

Jakarta -- A consultant with the World Bank in Central Sulawesi rejected on Tuesday a statement that a bank-funded project in Donggala regency in 2002 was marred by corruption.

"The statement is not true. Every project in the World Bank is supervised tightly," said Yuliana, a consultant employed by the World Bank in Donggala regency, a few dozen kilometers northwest of Palu, the capital of Central Sulawesi. Yuliana was commenting on the statement by Iskandar Sukirman, the chief of the Donggala prosecutor's office, who was quoted by Antara news agency on Sunday as saying that a project manager in the World Bank program named ZC had been declared a suspect in a Rp 700 million (US$82,350) graft investigation.

Yuliana said that she and other World Bank consultants had checked out the statement and discovered that ZC was not the manager of a World Bank program but rather a government official in the Donggala administration's Community Empowerment Board.

Yuliana said that ZC was also a project manager in the Subdistrict Development Funds scheme, a program run by the Donggala administration to help alleviate poverty in the regency.

"The suspect was in charge of the various projects. He [allegedly] embezzled money from a project funded out of the Donggala regency budget. The project has nothing to do with World Bank projects," she said.

Similar comments were voiced by Lily, an officer employed by the World Bank's National Management Consultant for District Development Programs (PPK) in Jakarta.

She said that the World Bank had nothing to do with the programs headed by ZC. "Probably, the money involved was provided by other institutions -- certainly not the World Bank," she told Antara.

Separately, an investigation by Antara in Donggala administration indicates that ZC has embezzled some Rp 700 million out of a total of Rp 3 billion in Subdistrict Development Funds provided by the Donggala administration -- not by the World Bank.

"He should have channeled funds to all subdistricts in Donggala that were targeted by the program, but he failed to do so. He reported to the Donggala regent and other Donggala government officials that he had paid out all the money, but when we checked with local people, many of them said that they had yet to receive the funds," said a source in the Donggala administration.

The investigation by the Donggala prosecutor's office has produced indications that ZC embezzled Rp 700 million out of a total of Rp 3 billion. The source said that there could well be other suspects in the case, but added that this would ultimately be up to the Donggala prosecutor's office.

Separately, Iskandar Sukirman acknowledged that he had made a mistake. He confirmed that the money allegedly embezzled by suspect ZC was not provided by the World Bank, but by the Donggala administration.

"He embezzled the money from a poverty alleviation project run by the Donggala administration -- not by the World Bank," he told Antara.

He added that his office was preparing charges in the case, and once these were finalized, ZC would be brought to trial.

The World Bank disbursed a grant in 2002 worth Rp 6.75 billion to finance district development programs (PPK) in seven districts in Donggala regency.

The money was used to provide soft loans to small and medium enterprises, funding for infrastructural development and scholarships for school dropouts. The program benefited 46, mostly poor, subdistricts in the regency. The program has been underway since 1999.

More condemn corrupt politicians

Jakarta Post - March 3, 2004

Urip Hudiono, Jakarta -- Prominent religious leaders, businesspeople and activists have agreed to step up efforts against corruption by not supporting candidates in the election that have shown an unwillingness to stop corruption.

They publicly announced the agreement during a one-day conference entitled "Building a Union Against Graft" here on Tuesday.

The conference was organized by the Private Sector Taskforce Against Graft (PSTAG), whose members include Transparency International (TI), the Indonesian Chamber of Commerce and Industry (Kadin), Indonesia Business Links and the Forum for Corporate Governance in Indonesia (FCGI).

Businessman Sofjan Wanandi, who is also executive chairman of Kadin's National Economic Recovery Committee (KPEN) and chairman of the Employer's Association of Indonesia, said that the private sector wanted the next government to be free from corruption.

"There is a growing tendency now among businesspeople not to give campaign contributions or support in any other way the legislative and presidential candidates who have no commitment to eradicating corruption," he said.

Sofjan also said that the judicial system should be at the forefront of the anti-corruption effort, as the public was getting sick of seeing unscrupulous businesspeople being let off the legal hook, and further worsening the perception that the country's business sector was a hornet's nest of corruptors.

Solahudin Wahid, vice chairman of the country's largest Islamic organization Nadhlatul Ulama (NU), expressed a similar opinion, adding that the foot soldiers in the battle against corruption should be the officials in the judicial system as well as political leaders.

"We therefore need to choose future leaders who are acceptable in terms of their integrity, their commitment and their ability to fight corruption," Solahudin. Lawyer Todung Mulya Lubis, who is also chairman of TI Indonesia and PSTAG's steering committee, said PSTAG would soon embark on a roadshow to 21 cities across the country, where it would hold seminars to strengthen collaboration among the public in combating corruption.

Todung particularly urged businesspeople to also take the lead and be an example by refusing to participate in graft, including bribery, marked up commissions and courtesy "gifts" to grease the wheels of business negotiations.

"Graft practices will eventually create a high-cost, unhealthy economy, which is unattractive for investors and for the proper running of businesses," he said. "Such practices also create short-term benefits only for a few at the expense of the greater public in the long run." Also speaking at the conference was A. Syafii Maarif, chairman of the second largest Islamic association here, Muhammadiyah, who said that the fight against corruption, which was destroying the nation, also needed participation and dedication from all sectors of society.

"What is therefore needed now is to work toward further fostering this effort against corruption and collaborate with one another in eradicating it, or else we will face a bleaker future," he said.

Indonesia tops business corruption table again

Reuters - March 2, 2004

Hong Kong -- Indonesia is seen as the most corrupt country in Asia for the third year running, followed by India and Vietnam, a survey of foreign businessmen showed on Tuesday.

Singapore was seen as the least corrupt among 12 countries and territories in the region, the study by Hong Kong-based Political & Economic Risk Consultancy Ltd says.

Perceptions of corruption improved in eight of the 12 Asian areas covered last year, the survey report said.

"Some of the biggest improvements have been registered in countries like China and Thailand, which have long had particularly poor reputations," the report said.

Perceptions in the three worst rated countries for corruption -- Vietnam, India and Indonesia -- were slightly better this year than last, it said.

The latest survey polled more than 1,000 expatriate businessmen working in Asia in Janaury and February. They were asked to provide ratings on a scale from zero to 10, with the latter being the most corrupt.

Bangladesh, which has been rated the world's most corrupt country for three years in a row by Transparency International, was not included in the survey.

Perceived corruption in Asia in 2004 (on a scale of zero to 10)

Country	Grade
Indonesia	9.25
India	8.9
Vietnam	8.67
Philippines	8.33
Thailand, Malaysia, China	7.33
South Korea	6.67
Taiwan	6.1
Hong Kong	3.6
Japan	3.5
Singapore	0.5

Rizal Ramli: Akbar's verdict planned long ago

Koran Tempo - February 26, 2004

Jakarta -- Rizal Ramli, the former head of the National Logistics Agency (Bulog) during the era of former President Abdurrahman Wahid, has said the Supreme Court's decision to free Akbar Tanjung from charges of misusing Bulog non-budgetary funds two weeks ago is part of a grand plot which was hatched long ago. "This plot put together when Gus Dur was still the president", said Ramli in an open discussion organised by the Indonesian Legal Aid Foundation in South Jakarta yesterday.

This plot, according to Ramli, was first put together when Wahid's position as president was under threat by the first and second memorandum from the special committee on the Bulog corruption case which was formed by the parliament in mid-2000. At that time he said, Tanjung pressured Wahid to confirm Bagir Manan as the head of the Supreme Court. "In a direct way, this put Bagir Manan in Akbar's debt", said the former coordinating economics minister.

This debt, said Ramli, has been reciprocated two times. First when the head of the Supreme Court annulled Wahid's presidential decree to disband the Golkar Party in July 2001. Second, during the nomination and selection of the Supreme Court by the People's Representative Assembly. "Following this, the composition of the judges who would try Akbar's case in the Supreme Court could already be predicted", repeated Ramli.

The plot to rescue Tanjung from the charges of corruption on the pretext that he was only carrying out the orders of a superior, according to Ramli, had indeed been planned since the case first opened. "From the beginning, all of this was engineered", he said calmly. Tanjung, said Ramli, also brought in a senior advocate who was known to be clean and who was offered US$1 million to handle his case. "After speaking with me, the advocate rejected Akbar's offer", said Ramli.

Using very sharp language, Ramli harshly criticised the Supreme Court's decision to free Tanjung. "This is truly an insult against common sense", he said, "I am nauseated, this country's legal system depraved", said the former student activist.

According to Ramli, it is as if the Supreme Court is unaware of the legal and jurisdiction implications which will following the decision to free Tanjung. "With this verdict, the Supreme Court has given the go ahead to government officials to commit [act of] corruption [knowing that they can claim they did it] on the grounds of carrying out the orders of a superior", he said shaking his head.

Speaking at the same forum, the former head of the Attorney General's Jakarta office, Lukman Bachmid, corroborated Ramli's statement. "As a former prosecutor, I can prove that there was a plot in Tanjung's case, it is enough just to read the copy of the Supreme Court's decision", he said.

The harsh statements by the two speakers seemed to provoke a reaction from Tanjung's legal council, Amir Syamsuddin, who was also present at the forum. The atmosphere became tense when Syamsuddin challenged Ramli to prove his statement. "The public has the right to know. Stop the rhetoric, instead show [us] your evidence, if indeed you know what really happened", said Syamsuddin.

Meanwhile, in Denpasar yesterday, Supreme Court judge M.A. Rachman admitted that he had already appointed special crimes deputy attorney general Sudhono Iswahyudi to lead a special team to study the decision to free Tanjung. This team will be made up of four members from outside of the Attorney General's office. The recommendations of the special team said Rachman, will determine the what legal steps can be taken next by the Attorney General.

Contacted separately, the spokesperson for the Attorney General's office, Kemas Yahya Rahman, explained that the special team started work one week ago, when a copy of the verdict to free Tanjung was received. "They haven't been given a specific time limit, but the Attorney General has asked that the investigation to be completed as soon as possible", said Rahman.

Rahman also emphasised that the team will be endeavoring to find a juridical basis to support the legal steps the Attorney General can take next in this case. "The copy of this decision is being studied right now, to discover if there are grounds to submit a review of the case", he said. (sunariah/rachmad/wahyu)

[Translated by James Balowski.]

Campaign against rotten politicians

Makassar students protest against rotten politicians

Detik.com - March 4, 2004

Gunawan Mashar, Makassar -- Actions protesting rotten politicians and political parties are still happening. In Makassar, at least 500 students warned of the dangers posed by rotten politicians and political parties.

The demonstrators, who came from the Makassar Student Forum, held the demonstration in front of the South Sulawesi regional parliament on Jalan Urip Sumohardjo on Thursday March 4.

In their action, they called on the people not to support rotten political parties and politicians. They said that it is these rotten political parties and politicians who are the reason that there has been no progress in country. "This country is getting even worse", said a student in a speech.

The students then noted a number of criteria on rotten politicians. These included involvement in corruption, collusion and nepotism, having been part of the New Order regime [of former President Suharto] and being involved with drug use.

From the South Sulawesi parliament, the students moved off the to the offices of the South Sulawesi National Elections Commission. The heavy rain which was falling did not deter the students and the action, which was closely guarded by scores of police, caused a traffic jam. (djo)

[Translated by James Balowski.]

Rotten politicians campaign not enough: Dr Rahardjo

Kompas - March 2, 2004

Semarang -- The campaign against rotten politicians which is being promoted by a number of non-government organisation (NGO) activists should be supported. However just campaigning against rotten politicians is not enough to bring about improvements. There also needs to be a movement to put intelligent people into these posts.

"Clean but stupid and not understanding their duties and obligations, it's the same thing, it will not bring about any improvement", said Satjipto Rahardjo, an expert in sociological law form the Diponegoro University in Semarang (Central Java), to journalists on Monday March 1.

The rotten politician campaign which is frequently being promoted by students and NGOs and continues to spread to other parts of the country is asking voters to vote for politicians who are clean and trustworthy.

They must fulfill a number of criteria, including not being a corrupter or a person who has acted to enrich themselves, not having violated basic human rights, politicians who have harmed the environment or who have taken away or abrogated environmental rights or the people's source of livelihood, politicians who are perpetrators of violence against women or have committed acts of sexual and economic violence, or are involved the trade of women and children. Clean politicians are those who have not committed crimes related to drugs, whether they are drug users or dealers, either having protected such practice or invested in the drug business.

Empathetic politicians

According to Rahardjo however, in the future Indonesia doesn't just need to have trustworthy politicians. In the future Indonesia also needs politicians who have an empathy with the people, who are concerned and prepared to assist in the difficulties which are being faced by their people. Therefore the public needs to be able to be shrewd in voting for legislative candidates who will later represent them in the national and regional parliaments.

Legislative members who are trustworthy and have empathy can be expected to be able to struggle for the welfare of the those who voted for them. "Don't let things continue has they have up until now, during the elections the people's [aspirations] are embraced, but afterwards they are simply abandoned. Not just by the legislators, but also by the rest of the political elite, including the bureaucrats. Because of this, it is important to put people into office, the bureaucrats who have control of matters [of importance], who have an empathy with the people", explained Rahardjo.

Reform of the bureaucracy

According to Rahardjo, the 2004 general elections represent the right time to produce legislative members and bureaucrats, or members of the executive, who have an empathy with the people. Under the current Indonesian political system, the leaders of the political parties will become local and national leaders, thus the elections are strategic in forming a better administration.

"If necessary, we will reform the bureaucracy, not just legal reform, because modern law rests strongly on the bureaucracy. Furthermore, by putting people in into office who are intelligent, reform can become more effective. Like in America were there was reform of the police, the higher the level of education of police [officers] the lower the [levels of police] violence and the greater their efforts to protect the people", explained Rahardjo.

According to Rahardjo, the people's welfare is greatly dependent on the character or structure of the state, whether it be authoritarian or democratic. And this is absolutely dependent on the elite bureaucrats or the political elite. If the elite tends to represent its own interests rather than to think about the welfare of the people, then the government will become authoritarian. The converse is also the case.

"It is not be people who must think about the political elite, but they who must think about the people. The political elite's moral [character] must be to think about the welfare of the people", asserted Rahardjo. (IKA)

[Translated by James Balowski.]

Militarism/New Order

Students burn effigies of Suharto and Tanjung

Laksamana.Net - March 2, 2004

Student protesters on Monday burned effigies of former president Suharto and parliament speaker/Golkar Party chairman Akbar Tanjung.

Students from the University of Indonesia (UI) and members of the Indonesian Muslim Students Action Front (KAMMI) rallied in Jakarta to warn the public against the possibility of Suharto's notoriously corrupt New Order regime making at comeback at this year's elections, state news agency Antara reported.

The UI students set fire to effigies of Suharto and Tanjung as symbols of the New Order regime.

Tanjung, who loyally served Suharto in several cabinets, is vying to become Indonesia's next president or vice president. In September 2002, he was convicted of corruption for embezzling Rp40 billion ($4.7 million) in state funds that were supposed to have been used to buy food for the poor. But the Supreme Court last month overturned the conviction, paving the way for Tanjung to run for office. Analysts claimed the ruling was a clear indication of the rampant corruption within the Indonesian judiciary.

Indonesians will go to the polls on April 5 to elect national, provincial, regional and district legislators. Several of the 24 political parties qualified to contest the election have been linked to the Suharto regime.

KAMMI urged the public not to vote for such parties. They also said the current political status quo must be rejected because it is dominated by remnants of the Suharto regime. The students also said the nation's incumbent political leaders had failed to improve the well-being of the public.

Tutut Denies Suharto Is Faking Illness Suharto's eldest daughter Siti Hardiyanti 'Tutut' Rukmana on Sunday strongly denied her father was faking his alleged poor health in order to evade trial for corruption. She made the denial in Bali before attending a seminar on issues facing the resort island's tourism industry.

Tutut said that based on medical examinations conducted by dozens of specialists, Suharto is genuinely ill. She said her father's difficulty in speaking also proves he is in poor health.

Suharto (82) ruled Indonesia for 32 years before being forced to resign in May 1998 after deadly riots, pro-democracy protests and economic collapse.

Since his resignation, he has been admitted to hospital several times because of various ailments, including three strokes, arteriosclerosis and unstable blood pressure. He has also had a pacemaker fitted and his appendix removed.

South Jakarta District Court, which has been described as handing down the best verdicts that money can buy, in September 2000 suspended a $571 million corruption case against the former president after doctors claimed he was permanently mentally and physically unfit to face trial.

But Suharto has been spotted in apparently good health on several occasions over recent years, prompting speculation his lawyers, family and doctors have exaggerated the extent of his health problems.

Questions were also raised last year, when it was revealed Suharto had ordered the formation of a new political party, the Concern for the Nation Functional Party (PKPB),which has nominated Tutut for the presidency.

Former Malaysian prime minister Mahathir Mohamad visited Suharto earlier this year and said he was well, although suffering from impaired speech caused by his three strokes.

The Supreme Court has ruled that Suharto must stand trial if his health improves.

Yogyakarta students reject Mega, Akbar, Wiranto and Tutut

Tempo Interactive - March 5, 2004 Syaiful Amin, Yogyakarta -- On Friday March 5, at least 100 students from a number of schools of higher education held an action warning against the reemergence of the New Order [regime of former President Suharto].

The alliance of Greater Yogyakarta Student Executive Councils declared that [Golkar chairperson] Akbar Tanjung, [President] Megawati, [former armed forces chief] Wiranto and [Suharto's eldest daughter] Siti "Tutut" Hardiyati Rukmana are representatives of the forces behind the future reemergence of the New Order. The students stated that if after the elections Indonesia is lead by these people, the future of the nation will become even more gloomy.

The alliance, which is made up of BEMs from the University of Gadjah Mada (UGM), the University of Ahmad Dahlan, the Yogyakarta State University and the Yogyakarta Muhammadiyah University, began the action at the UGM Boulevard. They then moved off to the Monument intersection then went on to the intersection in front of the Yogyakarta central post office where the action ended.

During the action, they also brought banners and posters with the writing "Beware of the danger of the New Order entering the state", "Akbar-Mega-Tutut-Wiranto must not become president, the end of the world", "Beware of the danger of Golkar's yellow shorts"(1) and "The New Order, exploiter of the people".

During their speeches, a number BEM members warned the public not to be easily deceived by the promises of politician. They said that the indications of a future reemergence of the New Order are very visible. They said that the New Order, although it has already been brought down, is endeavoring to change its spots and is now starting to enter a number of areas [of political life in the form of new political parties].

"So far the Megawati leadership has provided fertile ground for the reemergence of the New Order. Ineffective law enforcement, the increasing spread of corruption, collusion and nepotism, these are the hallmarks of the New Order which are growing ever more fertile", said action coordinator Deni.

The new political parties which have emerged he said, are in reality a variant of the New Order forces and must be carefully watched because at some point they could become a significant force. He said that the birth of the Functional Party of National Concern which has put forward Siti Hardiyati Rukmana as a presidential candidate and the release of Akbar Tanjung [on charges of corruption by the Supreme Court on February 12] is evidence which further strengthens the indications of the reemergence of the forces of Suharto's cronies.

Notes:

1. "Kolor Kuning Golkar", "Golkar's yellow shorts" is a play on words which is derived from a series of rapes and attacks on women which occurred in Jakarta in January 2004 which were allegedly carried out by a man or creature wearing green under- shorts. The term was also used in some political commentaries to refer to the reemergence of or political manipulations by the military.

[Translated by James Balowski.]

Media/press freedom

Witness testifies Tomy used threats of violence

Jakarta Post - March 2, 2004

M. Taufiqurrahman, Jakarta -- A former business associate of well-connected businessman Tomy Winata told the Central Jakarta District Court on Monday that his Artha Graha company security guards' threats of violence had always been a fixture of how Tomy did business.

In his testimony in the trial against Tempo magazine journalists, Hartono Setiawan, a former corporate client of Artha Graha Bank, said that the bank security guards occupied and tried to seize his newly constructed hotel in Bali in 2000. The mob accused Hartono of defaulting on his 1996 loan.

"Without prior notification of the amount of my debt or my default on said loan, Tomy's men just occupied Planet Bali Hotel, sealed it off and screened those entering and exiting the hotel," he said, referring to his hotel and entertainment spot in Bali.

Hartono said that his debt to Tomy had reached Rp 64 billion (US$7.62 million) in 2000, after soaring from the original figure of Rp 8.5 billion in 1996 before the economic crisis hit.

"Tomy or the bank officials never informed me of the amount of my debt. When I had difficulties repaying, Tomy forced me to immediately hand over all my property and other assets in Batam, Jakarta, Surabaya and Bali," he told the court.

Hartono appeared after being summoned by Tempo defense lawyers to testify about Tomy's image amongst his competitors in the business world and whether there could have been any further tarnishing by the article run in the magazine.

Tempo's office on Jl. Proklamasi, Central Jakarta, was attacked by hundreds of Tomy's supporters from the Artha Graha group in March 2003, following the issue that contained the article 'Is there Tomy in Tenabang?'. The article insinuated that the businessman had a hand in the Tanah Abang market fire to benefit from the subsequent rebuilding contract.

Before Hartono testified, prosecutors and the panel of judges seemed reluctant to allow him on the stand and questioned the relevance of having a businessman testify.

Prosecutors then grilled Hartono, noted for being the owner of brothels and having a criminal record, hoping the judges would say he was not credible to testify.

Presiding Judge Andriani Nurdin gave Hartono the go-ahead to testify only after the defense team convinced her that the witness would not delve into Tomy's personal life.

"If the prosecutors are allowed to question the witness on his credibility, we also have the right to ask questions about Tomy's credibility," lawyer Todung Mulya Lubis said.

Earlier in the trial, Tempo journalist Abdul Manan testified that he was assaulted by one of Tomy's head security men David Tjioe, alias A Miauw, while policemen, who were present inside the Tempo office building on March 8, 2003, looked on but did nothing. David was acquitted of those assault charges in July.

Tempo chief editor Bambang Harymurti, journalists Ahmad Taufik and T. Iskandar Ali have been charged with violating Article 14(1) of the Criminal Code for publishing a report that could provoke unrest. If found guilty, they could face a maximum of 10 years in a state penitentiary.

The judge adjourned the trial until March 8, to hear testimonies from other witnesses including Central Jakarta Mayor Hosea Petra Lumbun and former underworld leader Anton Medan.

Local & community issues

Kampar teachers set deadline for regent's ouster

Jakarta Post - March 6, 2004

Jakarta -- A group of teachers representing schools in Kampar regency threatened to return to the streets on Monday unless Home Minister Hari Sabarno approved the proposed dismissal of regent Jefri Noer and his deputy A. Zakir by, at the latest, Saturday.

The teachers expressed their demand in a meeting with Riau deputy governor Wan Abu Bakar and other local officials at the gubernatorial office in Pekanbaru on Friday.

M. Idris, who led the group of teachers, said all school activities would be called to a halt on Monday. He said teachers and students would also hold a massive rally. "The rally will be bigger than previous demonstrations but it will involve only teaching staff and students," he said.

Despite the regental legislative council's recent decision to dismiss the regent, some have rejected the decision as invalid, saying that it was the result of political engineering.

Hari has barred the regent and his deputy from making decisions on important matters while a team from the home ministry investigates the case.

The regental legislative council agreed in a plenary meeting on February 21, 2003 to dismiss the regent after a series of rallies triggered by the expulsion from a meeting of a senior high school principal who questioned the low education budget for the 2004 fiscal year. The regent's action was considered an insult to the teaching profession.

According to Law No. 22/1999 on regional autonomy, only the home minister representing the President has the authority to swear in regional heads and dismiss them.

Idris said that it was not necessary for the home minister to suspend issuing a decree on the dismissal. He said that besides political uncertainty in the regency, the people had already taken steps to replace the regent.

"If the central government is committed to restoring political stability in the regency, it should issue the decree on Saturday," he said.

He said several government offices in the town of Bangkinang in the regency, including local education and health offices, had protested Jefri's leadership by refusing to serve the public.

Deputy governor Abu Bakar, called on teachers and students to suspend the planned rally. He said it would serve no purpose and would only worsen the political situation there.

"Rest assured, the home minister will take the people's side. But it is impossible for a response to be issued tomorrow for a proposal that is submitted today. For comprehensive reasoning, maturity in decision making is needed," he said.

On Thursday, more than 100 people claiming to be religious and community leaders from Kampar met with the House of Representatives' Commission II on home affairs to protest the dismissal and warn that the issue could spark further conflicts in the regency.

Reconciliation & justice

AGO slammed for its view on May 1998 riots

Jakarta Post - March 6, 2004

Muninggar Sri Saraswati, Jakarta -- The Institute for Policy Research and Advocacy (Elsam) slammed the Attorney General's Office on Friday for declaring that there were no serious human rights violations in the 1998 May riots.

"The AGO actually does not have the authority to conclude whether a case is a common crime or crime against humanity. Only the ad hoc human rights tribunal can make such a decision. The state prosecutors' duty is to investigate and prosecute the suspects," Ifdhal Kasim of Elsam said.

During a hearing with the House of Representatives' Commission II on legal and domestic affairs on Thursday, the AGO's human rights task force head B.R. Pangaribuan said there was no evidence of human rights violations in the May 1998 bloodbath.

He also claimed that the case could not be put before an ad hoc human rights tribunal because several low-ranking military officers had already been tried in a military tribunal over the case.

However, Ifhal insisted that the prosecutors should present their findings to the human rights tribunal and let the latter decide whether to proceed with the prosecution.

"The office has once again disappointed the families of the victims and indeed the whole nation. If they do not have enough evidence, then they must officially halt the investigation," he said.

The Attorney General's Office has sent back the case reports to the National Commission on Human Rights (Komnas HAM), which has already concluded that there was ample evidence of major state- sponsored human rights violations on May 13 and May 14, 1998.

Solahuddin Wahid, the rights body's deputy chief who led the inquiry into the carnage, which mostly victimized pro-democracy activists and Chinese-Indonesian women, questioned on Friday the AGO's conclusion, saying the prosecutors had only asked for more evidence.

"They have returned our documents, not because they dropped the case, but because they want more evidence. And, we have been officially given one more month to complete the documents," he explained.

Solahuddin also made it clear that the AGO had no authority to determine whether the case was a rights violation or not.

"It is the House who is supposed to decide. We will fulfill their demand to gather more evidence because it is our obligation," he said. Komnas HAM has concluded that the riots met the major criteria for a crime against humanity, because they were widespread and systematic, with at least 20 high-ranking military officers implicated.

The AGO is supposed to set up a team to build the prosecution's case, based on the Komnas HAM report, according to the country's human rights law.

Instead of following the proper legal procedures, the state's rosecutors have merely been satisfied to go along with the recommendation issued by a House committee, which concluded in 2000 that no human rights violations occurred. However, legislator Panda Nababan of the Indonesia Democratic Party for Struggle (PDI-P) said on Friday that that 2000 recommendation was only based on informal sources as legislators had never properly investigated the case. "We shouldn't read too much into that recommendation," he said.

Hundreds of shops, shopping centers and homes were looted and set ablaze during the riots that followed the fatal shooting of four Trisakti University students who took part in a rally demanding the resignation of Soeharto in Jakarta.

State security officers did nothing to prevent the riots that swept through Jakarta and other cities. The upheaval and chaos soon turned into a Chinese-Indonesian pogrom that included mass rape, and when it was all over 1,217 people were dead, according to several non-governmental organizations.

No serious action has ever been taken against the perpetrators, despite the fact that the country has since seen three different administrations since Soeharto.

Try appears again in rights tribunal

Jakarta Post - March 2, 2004

Jakarta -- Former vice president Gen. (ret.) Try Sutrisno defended on Monday a decision by the military to open fire on a crowd during the Tanjung Priok incident in 1984.

"Circumstances left them with no choice but to open fire as they dealt with protesters who could endanger important state facilities," Try said in his testimony in the trial of Capt. Sutrisno Maschung, a military officer charged with crimes against humanity for his alleged role in the incident.

Try said that had the protesters demonstrated peacefully, the incident would not have occurred.

The National Commission on Human Rights (Komnas HAM) has put the death toll at 33, but military authorities said only nine people were killed. Families of the victims, however, claim that almost 400 Muslim protesters were killed during the incident.

A number of high-ranking military personnel were tried for gross violation of human rights; however, Try and former Armed Forces commander Gen. L.B. Murdani were not on the list of suspects. Try was Jakarta Military commander at the time of the incident.

The trial was adjourned to March 8 to hear other testimonies.

PAN open to ex-PKI members joining party

Kompas - March 3, 2004

Cirebon -- The National Mandate Party (PAN) is open to and will allow the ex-members of the Indonesian Communist Party (PKI) to join the party. The precondition being that ex-PKI members - who's political rights were recently rehabilitated by the Constitutional Court - are not allowed to resurrect the ideology of communism.

This was affirmed by PAN general chairperson Amien Rais during a break in his visit to the Nuurusshiddiq Muslim boarding school in Cirebon, West Java, on Tuesday March 2.

According to Rais, any ex-PKI member will be allowed to become a member of PAN. But they must accept the party's constitution and rules of association as well as the platform of PAN's struggle. "And it is hoped that (the ex-PKI members) will not look back to the past, not look back to communism", he said.

Responding to concerns that accepting ex-PKI members into the party or even as legislative and presidential candidates will create new problems, Rais guaranteed this will not be a problem, as long as all those concerned understand and tightly guard against [the reemergence of communist ideas].

"Please, let them become legislative candidates, after all, if their ideology is not [in accordance with the state ideology of] Pancasila it will be easy to recognise and we will dismiss them", he said.

Rais also hoped that now that their political rights have been restored by the Constitutional Court, ex-party members who were outlawed and oppressed for 38 years will find a new orientation and ideology of struggle. "Allowing ex-PKI [members] to become legislative candidates or be involved in politics represents a good thing and does not need to made an issue out of any more. Now all that is left is the need for each of us guard against our ideology going astray again", he said.

Moral teachings

Rais explained that the Constitutional Court's decision was correct and in accordance with the moral teachings of region which obliges people to understand and forgive each other. Nevertheless, he admitted that there is still a controversy among the public about the restoration of the political rights of ex- PKI members.

"It is time for all of this to end and they be accepted, such that it is, because they represents the second generation and the possibility of resurrecting (communist) ideas [again] is small", he said. (dhf)

[Translated by James Balowski.]

Focus on Jakarta

Controversial busway followed by road widening

Jakarta Post - March 6, 2004

Damar Harsanto, Jakarta -- Playing down public criticism and without the knowledge of its partner in the project, the Jakarta Public Works Agency will start widening sections of Jl. Sudirman and Jl. Thamrin, Central Jakarta, early next month to allow more space for private cars.

"The public works agency and park agency will jointly carry out the project after the completion of the Environmental Impact Analysis [Amdal] by an independent research team from the University of Indonesia," said public works agency head Fodly Misbach on Friday.

The team is expected to finish the analysis in a month. The Rp 26.7 billion (US$3.18 million) project is scheduled for completion in four months. "The public works agency has allocated Rp 17.2 billion while the park agency has allocated Rp 9.5 billion," Fodly said.

Stretching along a 6.4-kilometer corridor from the Pemuda Statue (better known as the pizza man statue) traffic circle to the Arjuna Wijaya Statue traffic circle, between two and 2.5 meters of the median strip dividing the fast and slow lanes will be removed for the project.

Sixteen trees will be cut down while 128 street illumination poles will be relocated. Fodly said that a city bylaw stipulates that each cut tree must be replaced with 10 seedlings, he expected that the park agency would comply.

Park agency head Sarwo Handhayani strongly denied Fodly's claim. "The road widening project remains a discourse. We are still waiting for input from the public. I don't think it will be implemented immediately," she told The Jakarta Post by phone.

Sarwo said that the project would conflict with the reasoning behind the busway project, which was launched on January 15. The busway is expected to encourage private car owners to switch to public transportation.

"We need at least a year to evaluate the busway operation before we can come up with other plans, including the plan to widen the main thoroughfares." Urban observers and urban planning experts have criticized the city administration's plan to widen Jl. Sudirman and Jl. Thamrin since the policy is inconsistent with its previous policy on the busway.

The administration has repeatedly campaigned that the busway and the extension of the hours of the three-in-one traffic policy are aimed at overcoming traffic congestion. "I don't think that busway is successful in encourage private car owners to use public transport, particularly regarding the absence of feeder services and parking lots at bus terminals. That's the reason [why we should] improve our service, not only for public transport passengers but also for private car owners," Fodly said.

He assured that traffic flow would be unhampered by the roadwork, which would be restricted to the hours between 10 p.m. and 5 a.m., including during the campaign period for the general election.

Car jockeys help Indonesian traffic out of a jam

Stuff - March 2, 2004

Jakarta -- Efforts in Indonesia to ease chronic traffic jams in the teeming capital Jakarta are boosting one of the city's more curious professions -- car jockeys.

But don't think horses and high stakes. Eni and her two-year-old son spend six hours a day riding in strangers' cars, playing a daily game of cat and mouse with traffic wardens.

Thousands of Jakarta's poor have become paid passengers helping their wealthier countrymen beat government car-pooling regulations. Their typical dash is only a few hundred yards, for which they might earn 4000 rupiah (70 cents).

In the world's fourth-most populous country, where 40 million people out of the 210 million population are unemployed or underemployed, any job is a good one and traffic has become an industry.

In the early 1990s, Jakarta authorities closed some of the city's busiest roads to cars carrying less than three people for four hours during the peak morning period, giving birth to the jockey, a term now firmly entrenched in Jakarta slang.

Grappling with worsening traffic as the economy recovers from the Asian economic meltdown of the late 1990s, a new multimillion dollar bus service was introduced in January. To encourage users, the car pool policy was extended to cover three hours in the evening along its route.

Every day at 7am and again at 4pm, Roni takes up a position on a road just off one of the city's busiest traffic circles where he rents himself out to motorists.

Along a short stretch of road, more than a dozen like him stand for hours waving at passing cars. Some strum guitars, some read comics, while others keep an eye out for the police.

"I jump into people's cars and run back after being dropped off," explains the 13-year-old, wearing filthy jeans and a torn yellow T-shirt.

Roni says he can make the equivalent of $NZ6 to $7 a day, sometimes more. He says it's a good job, despite the risk of arrest, incarceration and rehabilitation at a series of social centers dotted around the city where many jockeys remain locked up until relatives show up and pay for their release.

City officials say dozens of jockeys are detained every day. "In the first day of the new bus service we arrested 40 jockeys. We bring them to a social center to re-educate and give them understanding, because we perceive this as a social problem not criminal," says Muhayat, a spokesman for the city.

"But in reality there are regulations on this kind of offense, which could carry a maximum penalty of five million rupiah ($NZ865) of fines or three months in prison."

Baby bargain

Eni and her son stake out a patch close to the plush Sogo department store, its basement parking lot swallowing and spewing out a constant stream of luxury cars into the traffic.

"It's good for me because they have to pay something for the baby, and they get two people in one go. But it makes it harder to run away when the wardens come," she says. Eni says she brings along the child most days, but she'll lend it to other female jockeys wanting to earn a little more.

Whole communities in this tropical capital of 10 million eke out a living from the traffic. Apart from thousands of poorly paid police officers manning lucrative choke points on roads and doling out fines, paid on-the-spot in cash, a drive through any central city residential area reveals the extent to which traffic has become a business.

Side streets are congested with cars pushed off the main thoroughfares for much of the day by car-pooling and the new busway, which has taken over one lane from roads on its route.

At sweltering intersections, up to a dozen people wander between cars selling everything from chilled water and snacks to cigarettes and newspapers.

For small change, thousands of boys lurk at traffic lights around the city entertaining drivers with rough renditions of Western and local pop songs while strumming broken guitars.

And with nothing to offer, still others help drivers do U-turns, front for countless charities or simply hold out empty soft-drink cups and beg.

News & issues

Twelve feared dead in Indonesian mine fire

Agence France Presse - March 4, 2004

Smoke was hampering rescue efforts after a blaze at an Indonesian gold mine in which at least 12 people, mostly illegal miners, are feared to have died, an official said.

Four people are confirmed to have suffocated while eight more who are still trapped in the shafts are also believed dead, said Dohar Siregar, corporate secretary of state mining firm Aneka Tambang (Antam). The firm denied reports in several newspapers which said the victims were asphyxiated by fumes from old tyres, which were allegedly set ablaze by mining company officials to flush out the illegal workers.

Siregar said rescuers had not yet been able to reach the spot where the eight illegal miners are believed to be. He added that there was little hope they had survived in the shafts after being trapped for such a long time.

"There's still smoke and there may be poisonous gas. We don't want to add more fatalities," he said.

One of the four people confirmed dead in the fire is an Antam worker.

He said an inquiry into the cause of the blaze was under way and denied press reports that Antam staff had started it deliberately. "We wouldn't have set a fire that will hurt our own people," Siregar said.

Illegal mining is rampant in resource-rich Indonesia and fatalities are common. The Jakarta Post said 66 miners had been killed at Mount Pongkor alone since 1997. The gold mine is 45 kilometers west of Bogor, a town just south of Jakarta.

Bogor's district police chief, M. Taufik, was quoted by Detikcom online news service as saying that only nine other people had been working inside the shafts at the time of the blaze.

Antam extracts about four or five tons of gold annually from Mount Pongkor, which Siregar said had enough deposits to last another 12 to 15 years.

In January one person was killed and four were injured when police opened fire to disperse illegal miners occupying a gold mine operated by Australian firm Newcrest, on the eastern island of Halmahera.

Illegal mining is one of many problems plaguing foreign firms in the mining sector. Exploration has come to a virtual halt across the vast Indonesian archipelago because of security and legal concerns.

An annual industry survey published last November said Indonesia could become a world-class mining country but new investors were steering clear because of legal uncertainties and red tape. It cited illegal mining as one of the problems preventing them from investing.

Environment

Activists file police complaint against road plan

Agence France Presse - March 4, 2004

Jakarta -- Indonesian environmental activists filed a police complaint against plans to build a road network through a huge conservation area in Sumatra island.

Indro Tjahyono, coordinator of the Network for Forestry Conservation, said he filed the complaint in Jakarta against Infrastructure Minister Sunarno and the governor of Aceh province, Abdullah Puteh.

The environmentalists called the road project an "environmental crime" which would violate environmental protection laws and Indonesia's international commitments.

They said it would increase illegal logging, cause erosion and landslides and damage the water supply from the area in north Sumatra known as the Leuser Ecosystem.

The European Union Environment Commissioner Margot Wallstrom last month visited the EU-funded conservation project and expressed alarm that the road network could spell disaster for it.

Indonesia's environment and forestry ministries also oppose the road plan. Work has already started on the Ladia Galaska network, which would link the west and east coasts of Aceh province and would cut through the heart of the Leuser Ecosystem.

The EU has spent 31 million euros (37.2 million dollars) on the conservation area since 1996, parts of which are a national park. The Indonesian government has contributed six million euros.

It covers 2.6 million hectares (6.4 million acres), almost the size of Belgium, and is the habitat of Sumatran rhinos, orangutans, tigers and elephants.

The 1.5 trillion rupiah (179 million dollar) road project was launched by Aceh governor Puteh, who says it will end the isolation of remote settlements.

Conservationists have put forward alternative routes which avoid the conservation area.

Police arrest 30 illegal loggers

Jakarta Post - March 3, 2004

Tony Hotland, Jakarta -- Police have arrested another 30 suspected illegal loggers in Kalimantan, an island adjacent to Malaysia, and seized almost 30,000 cubic meters of logs during an operation conducted from February 19 to February 28.

National Police deputy spokesman Brig. Gen. Soenarko said on Tuesday that police had also confiscated 18 live bullets, 10 guns, 12 speedboats, and six chainsaws.

"We've been working together with the West Kalimantan police and forest rangers to curb illegal logging that is rampant in the area," he said.

The operation, the first phase of the Wanalaga I Operation for this year, included raids of several locations, such as Mount Palung, the Sambas river, the Bayas river, Melano bay, and Pontianak, all in West Kalimantan.

"With so many locations to observe, police will conduct more operations and mobilize forest rangers, helicopters, and speedboats," Soenarko said.

He added that the police would form a joint team, comprising of around 300 task force personnel with local police and forest rangers in Kalimantan.

Soenarko said that the seized logs -- 11,616 logs amounting to 29,686,03 cubic meters in total -- would likely be taken to several areas across the country, including Jakarta, Cirebon in West Java, and Semarang in Central Java.

"Nevertheless, this doesn't rule out the possibility that the logs were also to be smuggled into Malaysia," he asserted.

Indonesia and Malaysia have been shifting blame for the logs allegedly smuggled into Malaysia. Indonesia has been pressing Malaysia to take firm action against the traders of illegal logs there.

The police arrested 15 Malaysians for illegal logging in Papua last January, and confiscated more than 10,000 merbau logs. Also in January, naval officers intercepted two Indonesian ships carrying 1,268 illegal logs.

Concerning the allegation that police officers were taking part in illegal logging, Soenarko said that the police had not found any evidence of that.

"But we do affirm that in handling such a transnational crime, should there be proof of police involvement the police will not tolerate it," he said.

Illegal logging has been rampant in the country, taking place on huge islands such as Sumatra, Kalimantan, and Papua.

According to the Ministry of Forestry, illegal logging cost the country some Rp 355.8 billion (US$41.8 million) in 2002 and 2003. It also contributes to the annual deforestation of some 40 million cubic meters.

Aid & development

Government launches infrastructure projects nationwide

Jakarta Post - March 2, 2004

Abdul Khalik, Jakarta -- The government announced on Monday its plan to develop several infrastructure projects worth more than Rp 200 trillion (US$23.5 billion) over five years in the telecommunications and transportation sectors, as well as in the gas pipeline sector.

In telecommunications, the government is to continue existing projects to install Universal Service Obligation (USO) telephone lines in 43,000 remote villages across the country.

"We installed telecommunication lines in 3,010 villages in 2003. We hope we can install lines in 17,000 villages in 2004, and continue in the remaining villages until 2009," said Director of Telecommunications Tulus Rahardjo at the Ministry of Communications.

The fixed-line telephone density in Indonesia is only about 6 percent of the country's 220 million population. The International Telecommunications Union (ITU) and Asia Pacific Telecommunications (APT) have made a formal call on each member country, including Indonesia, to provide all of their citizens with access to basic telecommunication services, such as telephone, fax and telegram services, by 2005.

In the transportation sector, the government plans to start building 1,486 kilometers (km) of toll roads worth Rp 77.3 trillion (US$9.1 billion) on Java, Cemetery Island and Sulawesi soon.

"We will begin building those 17 toll roads within the next two months and expect to finish them in 2009. Several problems, such as land purchases and permits, emerged in several areas, but we can begin the project at the end of the year in those areas," said Director General of Regional Infrastructure Hendrianto Notosoegondo.

He added that funding for the projects would come mainly from private investors. The private sector is also to build a gas pipeline network from Sumatra and Kalimantan to Java and to several importing countries, such as Singapore and Malaysia.

"The project will cost Rp 178 trillion and take five to 10 years to complete," said Director of Exploration Novian M Thalib at the Ministry of Energy and Mineral Resources.

Suyono Dikun from the National Development Planning Board (Bappenas) said Indonesia would need an estimated Rp 613.2 trillion in investment to maintain, rehabilitate and develop its infrastructure facilities through 2009. Developments include expanding the 93,700 km network of public roads, generating 21,900 megawatts of electricity, installing 11 million fixed-line telephones, providing drinking water to 30.5 million people and providing sanitation systems for 46.9 million people.

He added that the government could invest only $40.8 billion, leaving a financing gap of $31.34 billion. The gap must be filled by private investors at an average of $6 billion per annum over the next five years.

Health & education

Students, teachers urged to calm down

Jakarta Post - March 2, 2004

Sri Wahyuni and Slamet Susanto, Yogyakarta -- Sleman Regent Ibnu Subiyanto reassured teachers and students here on Monday that state-run Ambarrukmo Elementary School would not be demolished until a replacement building was provided.

"Students, teachers and parents should not worry about the plan," Ibnu told journalists at his office.

The regent was responding to the growing anxiety among Ambarrukmo's teachers and students over a possibility that the school would be leveled to the ground soon, due to a plan to replace the school with a shopping mall.

Yogyakarta Palace, the owner of the land, is planning to build a shopping mall on the site to the west of four-star Ambarrukmo Palace Hotel Yogyakarta, which also belongs to the palace.

Ibnu confirmed that his administration had received a letter regarding the plan from Kanjeng Gusti Pangeran Haryo (KGPH) Hadiwinoto, the brother of Yogyakarta Sultan-cum-Governor Hamengkubuwono X.

In the letter, the palace expressed its wish to demolish the school and replace it with the shopping mall. "We are discussing the letter and listing alternatives for the solution," Ibnu said.

Among the alternatives, he said, included building a new school nearby or merging the school with a nearby elementary school. "We have a commitment from the investors to provide us with the funds needed to build the new school," the regent said.

Speaking separately, KGPH Hadiwinoto acknowledged that the palace would go ahead with its plan to demolish the school. He said, however, that the palace would not put the schoolchildren's education in limbo.

He said the palace had prepared a spare plot near the current site of the Ambarrukmo Elementary School, if the Sleman administration decided to build a new school.

"The palace still has a plot of land somewhere to the north of the hotel and adjacent to it. I'm sure the relocation will not disturb the teaching and learning process," Hadiwinoto said.

He defended the plan to build a shopping mall, saying that it would attract tourists and boost business in Yogyakarta. "We want to empower the palace's land so that it will be beneficial both for the palace and the community," he said. The construction of the Rp 200 billion five-story shopping mall is to break ground in April on a two hectare plot.

A similar dispute is also raging at a state junior high school in Jakarta, which is to be leveled to make way for commercial purposes. Students and teachers of the school expressed their concern over the plan to demolish the school, saying that the private sector was sacrificing education for commercial purposes.

Almost a third of primary schools need repair

Agence France Presse - March 2, 2004

Almost a third of Indonesia's state primary school buildings need repairs and some are so decrepit they threaten children's safety, a senior education ministry official said.

"I estimate that about 30 percent of our primary schools are suffering from various degrees of damage and decay," said Indra Jati Sidi, director general for elementary education.

"But most of these facilities can still be used, although the safety of the pupils is at stake," he told AFP. "We are currently working on gradually repairing them through our annual state budget allocations." Sidi, quoted by the Jakarta Post, said some buildings were falling apart due to old age. Others had been damaged because they were in conflict zones like Aceh, Sulawesi and Maluku.

"If the nation is committed to improving the quality of education in general in the future, we need to do something," the Post quoted him as saying.

The United Nations Children's Fund said in a December report that millions of Indonesian children were missing out on schooling, in a blow to efforts to fight poverty and disease.

It said education's share of government spending had dropped substantially over the past decade, from about nine percent to less than seven percent, and was now the lowest in East Asia and the Pacific.

Red tape lethal than dengue fever

Jakarta Post - March 2, 2004

Eva C. Komandjaja and Damar Harsanto, Jakarta -- The City Council urged the Jakarta Administration on Monday to cut down on the bureaucratic red tape on disbursements for impoverished dengue fever victims, who are unable to get timely or professional medical treatment without the money.

"In such a state of emergency, the Jakarta Health Agency must bypass all its normal, and unnecessary, paperwork so it can speed up the procedures for medical bill reimbursement [paid to city- run hospitals from the agency over medical costs for poor patients]," councillor Syamsidar Siregar of the National Mandate Party (PAN) said in a hearing between with the council's Commission E overseeing people's welfare and health.

The commission recommended that the administration use the Rp 800 billion (US$95.2 million) emergency fund to help cover all costs needed to curb the dengue outbreak. The city must get the council's approval to use the emergency fund.

Long bureaucratic procedures have forced city-run hospitals to provide just the bare minimum of treatment for patients without money.

Unlike public health centers that each received Rp 150 million in cash for their operational costs to combat the outbreak, hospitals must cover the patients' costs first, then deal with the time-consuming mountain of red tape to get reimbursed from the city health agency. The reimbursement fund is taken from the city budget for poor families' health needs and amounts to Rp 40 billion.

Deputy Director of Service of the city-run Tarakan Hospital, Sutirto Basuki, said that his hospital had to lower their standard of treatment for dengue fever victims who could not pay as a result of the backlog of reimbursement requests that they were still waiting for.

"We don't have enough money to even do blood tests. We have to use our own [operational] budget to pay for the tests and still limit them," he said.

Basuki said that instead of conducting a standard blood test for a dengue fever patient every two hours, the hospital extended the period for each test to a minimum of six hours for the sickest patients.

Widianingsih, a resident of Kebon Jeruk, West Jakarta, confirmed that the nurse took the blood samples from her son Ali every six hours. The Ministry of Health has instructed doctors to conduct blood tests on dengue fever patients every two hours for three consecutive days. If a patient's condition improves, the blood test can be done every 12 hours.

Another city-run hospital Budhi Asih in Cawang, East Jakarta, also had to use its other parts of its budge for poor dengue fever patients.

"We are still in the process of trying to get reimbursed from the health agency. We are using the hospital's funds to cover the costs," said Srihati Sinulingga, an official of the hospital.

Since the dengue fever outbreak hit Jakarta earlier this year, the death toll has reached at least 58, while there were 7,366 known reported cases as of Monday.

Councillor Ahmad Heryawan of the Justice Party urged the agency not to use the Rp 40 billion allocated for poor families on dengue victims, but to save it for later.

"If that fund is used for the poor dengue fever patients, we are afraid that the allotment for poor families to get subsidies for other medical treatment will be reduced," he argued.

Hundreds die as dengue fever sweeps Jakarta

Melbourne Age - March 2, 2004

Matthew Moore, Jakarta -- One of Indonesia's worst outbreaks of dengue fever for years has struck more than 19,000 people, killing at least 336 and prompting a flurry of Government promises to fight it.

Hospitals are full throughout the worst-hit areas of Jakarta and for weeks many of them have been turning away patients or putting them in corridors as the mosquito-borne outbreak spreads.

Official figures say the number killed by the disease jumped by 67 between Thursday aznd Saturday, though the figures understate the real position as they cover public hospital patients only.

The aedes aegypti mosquito, which transmits the disease from one infected person to another, has been indiscriminate in its targets, affecting residents of even the most expensive areas of Jakarta. But in the thousands of unsewered makeshift villages throughout the city, the chances of catching the disease are much higher.

Dengue, also known as break-bone fever because of the discomfort it can cause, attacks many parts of the body and can cause spontaneous hemorrhaging leading to a sudden and sometimes fatal collapse in blood pressure. Although it was first identified in Indonesia more than 200 years ago, there is no vaccine and the preferred treatment is to control the fever and provide liquid infusion via a drip.

With half of Indonesia's 220 million people living on less than 20,000 rupiah ($A3) a day, many cannot afford hospital care and have to let the disease run its course at home.

When she publicly acknowledged the problem last week and classified it as an "extraordinary event", President Megawati Soekarnoputri called on hospitals to treat impoverished dengue fever sufferers without charge, though she offered no reimbursement to hospitals.

The head of the South-east Sulawesi Hospital told the Jakarta Post that his hospital had to turn a profit and had not changed its fee-for-service policy.

The World Health Organisation's technical representative office in Jakarta, Steven Bjorge, said the disease was worse in Jakarta because it flourished in such heavily populated urban environments.

Despite the suffering, next year would be better as the levels of immunity would be higher in the people who had the disease this year, he said.

But in four or five years, when there were enough new children and many new arrivals had come to Jakarta, another outbreak would strike.

After warning last year that this wet season would bring a big increase in dengue, the Government response this year has been patchy and unconvincing. An early announcement to employ thousands of puddle inspectors to find places where the mosquitoes breed had been supplemented with a 900 billion rupiah promise to recruit and train 70,000 nurses.

Local governments favour spraying insecticide mixed with diesel fuel inside and outside houses in a practice called "fogging" that kills live mosquitoes but not their larvae. The lack of awareness of its toxic contents means children have adopted the spraying as a game, one of the few chances they get to play hide and seek in a mist so rare in tropical countries.

Armed forces/police

Army blamed for chopper saga

Jakarta Post - March 3, 2004

Jakarta -- Indonesian Military (TNI) Commander Gen. Endriartono Sutarto pointed to the Army leadership as the party responsible for the controversy over the purchase of four Russian-made MI-17 helicopters.

Speaking on the sidelines of a seminar on security and threats ahead of the general election, Endriartono said, "the one who appointed the lender company should be held responsible for the current problems".

"There is a procedure to procure military equipment, which allows the three chiefs of staff to propose their needs in detail to related ministries, the defense and finance ministries," Endriartono said.

He added the chiefs of staff had the authority to appoint the lender company.

"Should the company become the problem with regard to delivery of the helicopters, then blame it on the Army leadership," Endriartono said.

The Ministry of Finance released some $2.6million as a down payment for the helicopters, but the lender company failed to provide a bank guarantee to Russia's Rosoboronexport, causing a delay in the delivery.

Endriartono and the defense ministry's secretary-general Vice Marshall Suprihadi met with President Megawati Soekarnoputri on Monday. The President said the US$21.6 million purchase had to go ahead.

Military ties

TNI, SAF to continue cooperation

Jakarta Post - March 6, 2004

Jakarta -- Indonesia Military (TNI) chief Gen. Endriartono Sutarto and Singapore Armed Forces (SAF) chief Maj. Gen. Ng Yat Chun ended on Friday their two-day talks on defense cooperation between the two neighbors.

Both parties concluded that their cooperation during the course of last year, including antipiracy operations in the Malacca Straits and intelligence information exchanges, had met its target. The two armed forces decided to continue the cooperation this year, the TNI information service said in a release made available to The Jakarta Post on Friday.

During the meetings, which were held in Singapore, Endriartono proposed joint efforts to deal with transnational crimes.

Endriartono was accompanied by other TNI top brass, including outgoing TNI chief for general affairs Lt. Gen. Djamari Chaniago and TNI spokesman Maj. Gen. Sjafrie Sjamsoeddin.

Apart from military training, the TNI and SAF also agreed to boost education cooperation. This year, six mid-ranking TNI officers are being invited to pursue their masters degrees in Singapore. The SAF is also offering English training programs to a number of TNI officers.

In exchange, the SAF will send some officers to Indonesia to learn Bahasa Indonesia.

Business & investment

IBRA's end leaves one fewer scapegoat

Asia Times - March 5, 2004

Gary LaMoshi, Denpasar -- President Megawati Sukarnoputri herself closed the book on the Indonesian Bank Restructuring Agency last Friday, thanking IBRA officials for their work. According to most observers and by virtually every measure, it was not a job well done.

Founded in 1998, the agency received assets from troubled banks and indebted bankers valued at Rp650 trillion (US$77 billion), earmarked for sale to recover the cost of the government's banking bailout. Through asset sales, IBRA raised just Rp168 trillion; it characterized the massive writeoff -- nearly US$20 billion -- as "the cost of the crisis" and has been roundly criticized for it. In fact, IBRA has been blamed for just about everything wrong in Indonesia except traffic in Jakarta and bird flu.

From a strictly financial viewpoint, IBRA's asset-sales performance was lousy, managing a recovery rate of just over 25 percent. Some collection agencies boast returns nearly that high on unsecured loans or seized assets from bankrupt debtors. In the latter case, the creditor is scooping up whatever it can find and hoping it will sell. IBRA gathered its assets more selectively, through negotiation with debtors facing potential imprisonment.

In theory, IBRA should have been able to drive harder bargains to receive properties that would fetch prices closer to what the government was owed. But it didn't. That indicates incompetence in valuation, in sales, in interim management of assets, or in all three areas. Legislators have investigated IBRA for and accused its officials of being overpaid (top IBRA executive salaries were four times lawmakers' pay) but not incompetent. The agency is also undergoing an audit.

Too fast

Price wasn't the sole complaint about IBRA asset sales. Some accused the agency of selling banks and other companies too fast, more concerned with plugging the government's budget deficit than getting the best prices or finding the right investors. In some cases, debtors reportedly managed to regain control of the assets they'd pledged to IBRA at bargain prices. In other words, a tycoon who gave property to IBRA to pay off $2 million in debt allegedly was able to buy it back from the agency, through third parties, for $1 million or less.

Sales of banks to overseas investors also drew fire. Nationalists complained about the financial system falling to the clutches of foreign interests. They failed to acknowledge it was Indonesian bankers, not foreigners, who looted the government's banking- support funds to the tune of $17 billion. They also never explained where IBRA might find clean, independent domestic investors (bankers who sank the system were rightly barred from buying back in) with the funds to play in this league.

Others, most notably former economics minister Rizal Ramli, criticized IBRA for seeking strategic investors to exercise dominant influence over newly privatized banks. Ramli fears that this controlling/majority shareholder ownership model could set the stage for the same kinds of poor governance and business practices that led the banks to bankruptcy. He favors the US model of more diverse ownership that presumably pressures management to satisfy a variety of constituencies and interests instead of just one. It's an interesting theoretical point. Unfortunately, United States corporate scandals undermine that case. Even without those black marks, Ramli's prescription ignores the desperately needed management expertise and global best practices that so-called strategic investors bring to the sector.

Too slow

Critics also charged that IBRA didn't sell assets fast enough. The offering of Bank Central Asia, the leading retail bank, began in 2000 and unfolded as a two-year drama before a controlling stake was sold to a US investment-fund consortium for $540 million. The agency closed its doors with Rp15.1 trillion in unsold assets (book value Rp174 trillion), including Bank Permata, formed by the merger of five banks.

The Bank Permata sale was complicated by a spat with the attorney general's office over Rp456.5 billion recovered from the Bank Bali scandal (see Indonesia: IBRA prepares to bow out, January 16). That dispute touches the heart of IBRA's biggest failure: its name to the contrary, IBRA has left the banking industry largely unrestructured. Although some genuine changes have taken place, the system remains unreformed and still subject to abuses by corrupt employees and politicians who show even a whiff of imagination.

Those charges are undoubtedly true. (It's worth noting, though, that banks still under state control, not those privatized by IBRA, were involved in the latest scandals.) Blaming IBRA, however, misses the point.

Too soon

From its birth in 1998 under pressure from the World Bank and the International Monetary Fund, IBRA was a stepchild of Indonesia's governing class. A revolving door for three chairmen during its first year underscored the idea that IBRA was not to be taken seriously.

Since then, IBRA has provided politicians with a convenient scapegoat for all that's been wrong with the banking system, debt collection from corrupt bankers and sales of seized assets, and a distraction from genuine reform to eliminate political and economic corruption that converged in the sector. Not a drop of political will has been expended to solve those problems, and banks still largely don't fulfill their critical role in aiding economic growth.

Six years later, the pressure for reform has passed -- in Indonesia, that pressure still comes only from outside the political system, from either grassroots protesters or foreign institutions -- and the corruption continues. Ironically, Mohammed "Bob" Hassan, the only tycoon sentenced to jail for corruption, was released from prison a few days before IBRA closed. It's time to declare victory and end the war. As was the case with US President George W Bush's flight-suit speech in front of the "Mission Accomplished" banner, the war for banking reform in Indonesia is far from over. Expect casualties to continue.

Government ups security to attract investors

Jakarta Post - March 1, 2004

Ridwan Max Sijabat, Jakarta -- Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the government would increase security at all vital projects and assets across the country, in a move hoped to help attract new foreign investment in the oil and gas sector.

Purnomo said a presidential decree on the application of a multilayered security system at these projects soon would be issued.

"This new measure is urgent to show the government's strong commitment to assuring foreign oil investors of their security in investing in the country, especially in conflict-torn regions, and to make Indonesia's oil industry more attractive and competitive," he told The Jakarta Post following a political discussion here on Saturday.

The government is struggling to attract new investment in the oil and gas sector as the country's existing oil fields dry up.

Purnomo said the security authorities, investors and the public should all work together in maintaining security.

He said the presidential decree would regulate that the security of all vital assets, including oil fields, refineries and mining companies' headquarters, would be provided by a first ring of internal security guards, a second layer of local residents and a third ring of military and police personnel.

Somewhat different from the existing security system, he said, mining companies would be required to carry out community development programs to empower residents.

"Many mining companies have developed trouble in their areas of operation because they forget to empower local communities or the funds they have disbursed through third parties for community development do not reach the local communities," he said. "We should learn from the security disturbances threatening foreign investment in Aceh, North Sumatra, Riau and Papua."

The minister said the government had asked the military to continue maintaining security as the "third ring" around vital assets over the next year or two, as the police carry out internal consolidations that will eventually allow them to take over the task of security.

"President Megawati Soekarnoputri has agreed to keep the military in the third ring during this transition period," he said.

He said that if this three-layer security system was implemented, major mining companies such as Caltex, Beyond Petroleum and ConocoPhilips would be more willing to invest in the future exploration of new oil fields.

"They have been reluctant to carry out exploration because of the security uncertainties," he said.

Energy investors back to Indonesia

Jakarta Post - March 6, 2004

Fitri Wulandari, Jakarta -- After being considered a pariah nation for years by power investors, Indonesia has started to regain investor confidence, largely due to the successful resolution of disputes with independent power producers (IPPs), a senior official said on Friday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro told a discussion at The Jakarta Post that proposals from IPPs to set up new power projects had been on the increase.

The government, which until recently was gripped by worry over a possible power crisis in the future, has become more optimistic that such a crisis will not materialize.

"The investment climate [within the power sector] has been improving," Purnomo said. He did not elaborate on the number of power project proposals the government had received but said Sumatra, Kalimantan and Java were the regions that had attracted most investors.

Indonesia was embroiled in disputes with dozens of leading global power investors for years after the economic crisis, following the government's decision to suspend most of the power projects, and state electricity firm PT PLN's refusal to honor the contracts.

After years of negotiation, the government managed last year to settle disputes with all 27 IPPs, apart from American firm PT Karaha Bodas Company, which is still pursuing legal redress in the US to win compensation for its suspended project. The firm has a geothermal power project in Garut, West Java.

Of the 26 project owners, 14 agreed to continue projects and reduce the price of the electricity they generate, seven agreed to terminate their projects and five agreed to transfer their projects to state oil firm PT Pertamina and PLN.

Purnomo is optimistic the dispute with Karaha Bodas can also be settled out of court.

Given the protracted dispute and suspension of the projects, most analysts had previously predicted that Indonesia would face a serious power crisis in the near future.

Purnomo, however, dismissed such fears, saying more power plants were due to come onstream this year and in subsequent years to meet the growing demand for power.

Approximately 3,500 MW of additional power supplies will enter the market from 2004 to 2006 with the completion of the Cilegon, Muara Tawar, Cilacap and Tanjung Jati B power projects.

In June this year, completion of the repowering project for the Muara Tawar power plant in Bekasi, West Java, will bring an additional 800 MW into the Java-Bali power grid, while the Cilacap and Cilegon power plants, which are expected to come onstream next year, will add 600 MW and 750 MW respectively to the existing supply. Cilegon is located in Banten, and Cilacap in Central Java.

Another 1,329 MW of capacity will come onstream in 2006 with completion of the giant Tanjung Jati B power plant in Central Java. "Thus, in the short run, we can cope with additional power demand," the minister said.

Purnomo said although no new factories had been built over the past few years due to lack of investment, demand for electricity from domestic customers had kept growing. Power demand has been growing at an average of 7 percent annually over the past few years -- higher than the country's economic growth of about 4 percent.

The national power supply now stands at 21,000 MW, with the Java-Bali grid accounting for 18,600 MW of this.

IMF hails rising confidence but seeks further reform

Jakarta Post - March 6, 2004

Dadan Wijaksana, Jakarta -- The International Monetary Fund (IMF) said on Friday that the government had succeeded in retaining market confidence three months after the expiration of the Fund- backed special lending program.

But the IMF also urged the government to press ahead with key reform programs, particularly in the areas of taxation, labor legislation and the legal system so as to further improve the business and investment climate in the country.

The Fund cited the current macroeconomic stability and the successful launching of the government's US$1 billion international bond on Wednesday as evidence of improving market confidence in the economy.

"The successful sovereign bond issue just concluded is testimony to Indonesia's successful fiscal performance over the past couple of years," the IMF said in a statement issued after the completion of its first review on the country's economy since the expiration of the IMF lending program late last year.

A special team led by visiting IMF Senior Advisor for Asia Pacific Department Daniel Citrin has been conducting a 10-day review and consultation with the government, under a post-program monitoring (PPM) arrangement, a mandatory requirement for a member country having just graduated from an IMF loan program.

Despite its non-binding nature, the review and assessment by the team is of major importance for the country as it represents a crucial indicator for measuring market sentiment on Indonesia's economy.

Meanwhile, Citrin told a press conference that going forward the government should push ahead with various reform programs, particularly in the areas of tax, law reform and labor law.

"Policy efforts should concentrate on these areas ... which are important for improving the business climate and laying the foundation for sustainable growth at a level that would reduce unemployment.

"Because Indonesia's GDP growth and export performance as compared with other nations in the region have lagged behind," Citrin told journalists.

During the visit, Citrin said the team discussed a wide range of economic issues with government officials and civil society organizations including labor unions, business people and academics.

Lack of investment has been the main factor stalling the country's economic growth, which has only managed to grow at a modest level of around 4 percent -- insufficient to absorb the some 2.5 million fresh job-seekers coming on the market every year. The government is targeting economic growth this year of 4.8 percent.

Citrin cited the first of three priorities, namely tax administration and enforcement, as the main area of uncertainty to business people. "This covers everything from tax arbitration, the system and procedures, to inefficiency in the refund mechanism on VAT. There are many complaints over these."

As for labor legislation, Citrin emphasized that it must be a balance between protecting labor and providing flexibility for employers. He did not elaborate on whether this meant the government should revise the existing labor law, which was enacted last year. The IMF said in a statement that at present the country's total outstanding debt to the Fund amounted to $10 billion. The current PPM program will expire when Indonesia's outstanding debt falls below $3 billion -- the lending quota for an IMF member country.

Indonesia asked the IMF to bail it out in 1999 after the country was rocked by the regional financial crisis.

Going mobile: Calling Indonesia

Asia Times - March 4, 2004

Bill Guerin, Jakarta -- The collapse of the rupiah in 1998 left Indonesian telecommunication companies barely able to pay their dollar-denominated debts, let alone fund new investment. As neighbors across Asia signed up subscribers by the cart load, six of the total nine Indonesian cellular operators collapsed and AT&T Wireless Services and the Netherlands' KPN bailed out and left.

Now, despite the halting progress of the privatization program and a permanently cash-strapped government, the sector is showing very strong growth.

China outpaced the United States as the world's largest market for mobile phones two years ago, but the growth in Indonesia has been equally remarkable. Almost 20 million Indonesians now use mobile phones, equivalent to some 8 percent of the country's 220 million population. And the best is yet to come.

The country still has one of the lowest penetration rates in the Asia-Pacific region, the world's largest telecommunication market, with neighboring Malaysia, for example, having 36 percent and Thailand about 32 percent. As recently as 2001, only 1.7 percent of Indonesians had cellular phones, compared with 6 percent of Thais.

The market is expected to grow rapidly and even last year's growth of 2 percent was, pro rata, the largest in the region.

Currently there are 1.3 billion users worldwide, and most of the growth in the industry is expected to come from basic voice communications in emerging markets, including India, Indonesia, Brazil and Russia, Nokia chief Jorma Ollila said last month. About 4 billion people, half of the planet's total population, will be using mobile phones by 2015, according to Ollila.

Indonesia has just three mobile-phone operators, Telkomsel, Satelindo and Excelcomindo Pratama, unlike India, for example, with similarly low mobile penetration rates but plenty of competition.

The unlisted Excelcomindo, the third-largest operator in Indonesia, and Satelit Palapa Indonesia, or Satelindo, the second-largest, have for some time been eyed up as attractive targets for Asian telecommunications companies looking for growth and expansion opportunities.

Excelcomindo is planning an initial public offering this year, but last week it was reported that Telstra, Australia's giant telecommunications company, was talking turkey with the company over a potential buyout for US$2.3 billion.

Telstra is thought to be bidding against Telekom Malaysia and China Telecom for Excelcomindo Pratama, which, with some 2.7 million subscribers, has some 16 percent of the estimated 17 million network subscribers nationwide. The company expects subscribers to top 4 million by the end of this year. Excelcomindo is controlled by PT Telekomindo Primabhakti with a 60 percent stake. The rest is split up between Nynex Indocel Holding Sdu with 23.1 percent of shares, Asia Infrastructure Fund Ltd (12.7 percent) and Japan's Mitsui & Co (4.2 percent).

Both Telstar and Excelcomindo are keeping mum about the negotiations but media speculation last week caused Telstra shares to fall to $4.67, their lowest since last August. This is no reflection on the wisdom of bidding for such a chance for regional expansion, but more a reflection of analysts concerns that, as Telstra looks west, rivals are taking its share of the Australian market.

Whoever wins control of Excelcomindo will have to contend with Singaporean players who were first to enter Indonesia to capitalize on its fast-growing mobile-services market.

Infrastructure investment in mobile telecoms is cheap relative to investment in a fixed-line network. This, together with the limited availability of fixed-line services in the country, explains why the top two telecommunication companies -- PT Telekomunikasi Indonesia Tbk (Telkom) and Indonesian Satellite Corp Tbk (Indosat) -- are increasingly reliant on their cellular operations.

Singapore Technologies Telemedia (ST Telemedia), controlled by the Singaporean government, now has a 42-percent stake in Indosat, once the state-owned monopoly international carrier. The $634 million purchase last year was the biggest foreign payout for an Indonesian company since the regional financial crisis kicked in.

Indosat, however, has been steadily losing ground to Telkom, Indonesia's dominant telecoms company, in the mobile-phone sector and was saddled with the high debt load of its mobile subsidiaries, PT IM3 and PT Satelit Palapa Indonesia (Satelindo). Last year it restructured its debt and merged the subsidiaries to create a single national brand, IM3.

Though the combined 4.3 million subscribers of the two subsidiaries, before the merger, represented an increase of 81 percent year-on-year they were dwarfed by the might of Telekomunikasi Selular Indonesia, or Telkomsel, the country's largest cell-phone company with 7 million subscribers and 65 percent of the market share. The latter is 35 percent owned by Singapore Telecommunications Ltd, (Singtel), which is almost 70 percent owned by the government. Singtel paid a tad over $1 billion for a 35-percent stake in Telkomsel.

Admittedly, the attractiveness of Indonesia's booming mobile- phone sector for cash-rich Singaporean firms seeking to expand beyond the tiny republic is clear enough. But the flagship status of both Telkom and Indosat and the presence of the Singaporean government, one of the biggest investors in Asia, sent a loud and clear message that amid the security concerns and the political uncertainty, business as usual was the order of the day in Indonesia.

Mobile-phone manufacturers with the foresight to enter the large Indonesian market ring up the profits as they sell more handsets to supply the growing demand. The makers have yet another reason to be happy, given the limited number of cell-phone brands currently available to Indonesians who, a recent survey suggests, are simply mad about their beloved hand phones.

The survey, published last month by Siemens, covering 335 respondents from two different age groups -16-29 and 30-60 -- showed that 65 percent of respondents said their phones were so important to them that they were a "technological extension" of their personalities.

The happy Indonesian mobile-phone owners can afford to buy handsets on easy payment terms offered by distributors, suppliers and banks.

Nokia, which makes about two out of every five branded name handsets worldwide, also dominates the Indonesian handset market, and sold more than 50 percent of the total 3.65 million units bought in 2003. Samsung is in second place, with Siemens and Sony Ericsson bringing up the rear.

Nokia's core business strategy is to provide the Indonesian market with low price products for the middle-to-low-income market segments. About 65 percent of its sales last year were low-end types that cost about Rp1 million ($120) apiece. Samsung, on the other hand, sets its stall out with products attractive to the middle-to-high-income segment. Samsung also targets younger consumer groups with unique and appealing designs.

Nokia predicts that wireless communications will overtake fixed- line communications in terms of the volume of voice call traffic in developed countries, where the proportion of the population using mobile phones is already high. This has already happened in Italy, the Czech Republic and Portugal.

It may not be far off in Indonesia either. Fixed-wireless services work much like cellular but offer cheaper rates, as unlike GSM (global system for mobile communications) operators, they do not have to pay frequency charges to the government.

Two months ago, PT Mobile-8 Telecom (Mobile-8) launched the country's first fully wireless code division multiple access (CDMA) mobile-phone service. The company bought out three failed mobile-phone service operators, PT Komselindo, Metrosel and Telesera, which, still using the ancient analog Advanced Mobile Phone System (AMPS), lost out to the GSM operators.

CDMA gives clearer sound, wider coverage, smoother transmission and multimedia facilities but, more important in a country renowned for very poor Internet access speeds, can deliver a high-speed data-access capability of 80 kilobytes per second (kbps). Samsung is also likely to be a winner with its prescience to be first to develop all singing and dancing handsets for the Indonesian market with CDMA capability.

The country's largest mobile-phone operators, PT Telkomsel and PT Satelindo, still rely on GSM, which gives data access at only 20-30 kbps.

Mobile-8 president BT Lim, explaining why he was "very confident" of the growth prospects for data communications, pointed out that when mobile operators launched SMS (short message services) as recently as three years ago, it brought in only 3 percent of their revenue but now accounts for some 20 percent.

Mobile-8 is 70.52 percent controlled by publicly listed PT Bimantara Citra, previously owned and controlled by former president Suharto's son Bambang Trihatmodjo. The remaining shares are divvied up among Bimantara subsidiary PT Centralindo Panca Sakti, with 9.54 percent, Asialink (8.5 percent), and a consortium of Qualcomm Inc and Samsung Electronics of South Korea.

Mobile-8 hopes for a million subscribers by the end of 2004, according to Bimantara president Hary Tanoesoedibjo, who adds that the company will provide up to 2 million lines by the end of next year in a bid to become the third-largest player in the cellular-phone sector by 2007 with its Fren brand wireless phone service.

Telecom researcher Gartner Inc predicts that by then Indonesia will likely have 42 million cellular subscribers. But the downside is the very high mobile tariffs compared with the rest of the region. Though this gives the companies more profit, it restricts the potential for a better penetration rate.

The cellular industry has an unsophisticated pricing system. Postpaid card charges are usually Rp65,000 ($7.50) a month as a standing charge for the service alone, not including call charges. For the much more common prepaid cards, the usual minimum price for a refill voucher is Rp100,000 ($11.50).

One cloud on the horizon is the government's threat to lift controls on prices, currently capped at Rp500 rupiah (7 cents) a minute for local peak-hour calls. Though legislators have come out strongly against the planned hikes, and a decision is pending for the time being, in the run-up to the elections, the issue has created uncertainty.

However, cellular-phone makers are still on a winner with the predicted boost in demand from the legislative and presidential elections this year.

Prices down by 0.22 percent in February

Jakarta Post - March 2, 2004

Fitri Wulandari, Jakarta -- The consumer price index (CPI) fell 0.02 percent in February from the previous month as the rice harvest and a stronger rupiah resulted in lower prices for foodstuffs and lower education and recreation costs. The Central Statistics Agency (BPS) also reported on Monday that year-on-year inflation during the month was 4.6 percent, the lowest in four years. The CPI is an index of the prices of consumer goods.

"There is a possibility that deflation will occur again in March, especially if the quality of the rice harvest is not good because of the rain. This will result in lower prices," said BPS deputy chief Slamet Mukeno during a press conference. The rice harvest started in the latter part of January.

Standard Chartered Bank economist Fauzi Ichsan said that the lower prices were not surprising given the fact that the rupiah had been strengthening for quite some time.

"The stronger rupiah has made imported goods cheaper," Fauzi told The Jakarta Post. The country's production system is heavily dependent on imported raw materials.

He said that this situation should also provide room for the central bank to further cut its benchmark interest rate.

"The lower inflationary environment should convince the central bank to lower the interest rate. There is still room for a lower SBI, although not much," he said, referring to the interest rate on one-month Bank Indonesia SBI promissory notes.

The one-month SBI rate hit an all-time low last week when it fell to 7.48 percent from 7.66 percent earlier.

Aside from the stabilizing rupiah and lower inflation, Fauzi said surplus funds in the banking would also encourage the central bank to lower the benchmark rate.

According to Fauzi, the banks have daily surplus funds of between Rp 25 trillion to Rp 30 trillion.

"The central bank should push the banks to increase lending to the corporate sector ... so they should lower the SBI rate," Fauzi said.

But Raden Pardede of the Danareksa Research Institute said that any reduction in the SBI rate would be limited as inflation would likely increase in the run-up to the general elections over the coming months due to rising consumption.

"Sales of foodstuffs, and telecommunications, electronic and transportation equipment will pick up again for campaign purposes," he said.

Elsewhere, the BPS said February's deflation was caused by a 1.44 percent drop in the prices of foodstuffs, and a 0.22 percent decline in the cost of education and health.

But other prices increased, like those of processed food and beverages, and tobacco, which were up by 0.7 percent, housing, utilities and fuel up by 0.64 percent, clothing up by 0.03 percent, and transportation and communications up by 0.12 percent.

The agency also said that cumulative inflation during the first two months of this year was 0.55 percent. The government's full- year inflation target is 6.5 percent.

January export raises optimism over Indonesia's growth

Jakarta Post - March 2, 2004

Rendi A. Witular, Jakarta -- A rise in non-oil and gas exports drove the overall export figure in January slightly higher by 0.74 percent compared to the same period last year, raising hopes that export could help accelerate economic growth to 4.8 percent this year.

The Central Statistics Agency (BPS) reported on Monday that export during January stood at US$5.03 billion against the $4.99 billion posted in January 2003, due to a 0.99 percent rise in non-oil and gas export to $3.83 billion.

"At the start of 2004, Indonesia's export in January once again surpassed the $5 billion figure," the agency said.

Indonesia, Southeast Asia's largest economy, is counting on exports and consumer spending to achieve its 4.8 percent growth target this year, as investment remains in the doldrums.

Last year, net exports contributed slightly above 20 percent of the 4.1 percent growth, as various problems at home and the weak global economy hampered export performance.

The government has estimated non-oil and gas export this year to grow by 7 percent from $47.38 billion in 2003 to $50.7 billion on the backs of expected recovery in the global economy and rising demand from China's fast-expanding economy.

Elsewhere, the agency said that wood and wood-based products topped the list of the major non-oil and gas export commodities in January, followed by animal and vegetable fats and oil, then paper and cardboard.

Export of wood and wood-based products increased to $299 million in January, from $265 million in the same period last year, while animal and vegetable fats and oils rose to $247 million from $244 million, and paper and cardboard to $213 million from $166 million.

Other top non-oil and gas export commodities include footwear, which surged to $136 million from $96.7 million, and synthetic filament, which rose to $95.5 million from $94.1 million.

"Japan was Indonesia's largest export destination in January with a non-oil and gas export value of $594 million," the BPS said, adding that the United States and Singapore were the second and third largest export destinations, respectively.

As for oil and gas exports, the country recorded $1.19 billion throughout January, down slightly by 0.03 percent from last year, mostly due to a 27 percent drop in the oil export volume.

The BPS said imports in January increased slightly by 0.24 percent to $2.75 billion, but was 2.76 percent lower compared to December's figure.

Import figures can be an indicator of investment activities, as the country's production sector is heavily dependent on imported raw materials.

Meanwhile, the trade surplus in January was slightly higher at $2.28 billion, against $2.26 billion in the same month of 2003.